Minnesota Legislature
HF 2437
2nd Engrossment - 94th Legislature (2025 - 2026) Posted on 05/13/2025 12:55pm
Bill Text Versions
| Engrossments | ||
|---|---|---|
| Introduction | Posted on 03/17/2025 | |
| 1st Engrossment | Posted on 05/07/2025 | |
| 2nd Engrossment | Posted on 05/09/2025 |
Current Version - 2nd Engrossment
2.17 2.18
2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 2.35
2.36
3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 4.1 4.2
4.3 4.4
4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 5.1 5.2 5.3 5.4 5.5 5.6 5.7
5.8 5.9
5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16
7.17 7.18
7.19 7.20 7.21 7.22 7.23 7.24 7.25 7.26 7.27 7.28 7.29 7.30 7.31 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 8.11
8.12
8.13 8.14 8.15 8.16
8.17 8.18
8.19 8.20 8.21 8.22 8.23 8.24 8.25 8.26 8.27 8.28 8.29 9.1 9.2
9.3 9.4
9.5 9.6 9.7 9.8 9.9 9.10 9.11 9.12 9.13 9.14 9.15 9.16 9.17 9.18 9.19 9.20 9.21 9.22 9.23 9.24 9.25 9.26 9.27 9.28 9.29 9.30 9.31 10.1 10.2 10.3 10.4 10.5 10.6 10.7 10.8 10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23 10.24 10.25 10.26 10.27 10.28 10.29 10.30 10.31
11.1 11.2
11.3 11.4 11.5 11.6 11.7 11.8 11.9 11.10
11.11 11.12
11.13 11.14 11.15 11.16 11.17 11.18 11.19 11.20 11.21 11.22 11.23 11.24 11.25 11.26 11.27 11.28 11.29 11.30
12.1 12.2
12.3 12.4 12.5 12.6 12.7 12.8 12.9 12.10 12.11 12.12 12.13 12.14 12.15 12.16 12.17 12.18 12.19 12.20 12.21 12.22 12.23 12.24 12.25 12.26 12.27 12.28 12.29 12.30 12.31 12.32 12.33
13.1 13.2
13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 13.11 13.12 13.13 13.14 13.15 13.16 13.17 13.18 13.19 13.20 13.21 13.22 13.23 13.24 13.25 13.26 13.27 13.28 13.29 13.30 13.31 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9 14.10 14.11 14.12 14.13 14.14 14.15 14.16 14.17 14.18 14.19 14.20 14.21 14.22 14.23 14.24 14.25 14.26 14.27 14.28 14.29 14.30 14.31 15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10 15.11 15.12 15.13 15.14 15.15 15.16 15.17 15.18 15.19 15.20 15.21 15.22 15.23 15.24
15.25 15.26
15.27 15.28 15.29 15.30 16.1 16.2 16.3 16.4 16.5 16.6
16.7 16.8 16.9 16.10 16.11 16.12 16.13 16.14 16.15 16.16 16.17 16.18
16.19 16.20 16.21 16.22 16.23 16.24 16.25 16.26 16.27 16.28 16.29 16.30 16.31 17.1 17.2 17.3 17.4 17.5 17.6 17.7 17.8 17.9 17.10 17.11 17.12 17.13 17.14 17.15 17.16 17.17 17.18 17.19 17.20 17.21 17.22 17.23 17.24 17.25 17.26 17.27 17.28 17.29 17.30 17.31 17.32 18.1 18.2 18.3 18.4 18.5
18.6 18.7 18.8 18.9 18.10 18.11 18.12 18.13 18.14 18.15 18.16 18.17 18.18 18.19 18.20 18.21 18.22 18.23 18.24 18.25 18.26 18.27
19.1 19.2 19.3 19.4 19.5 19.6 19.7 19.8 19.9
19.10 19.11
19.12 19.13 19.14 19.15 19.16 19.17 19.18 19.19 19.20 19.21 19.22 19.23 19.24 19.25 19.26 19.27 19.28 19.29 19.30 19.31 19.32 20.1 20.2 20.3 20.4 20.5 20.6 20.7 20.8
20.9
20.10 20.11
20.12
20.13 20.14
20.15 20.16 20.17 20.18 20.19 20.20 20.21 20.22 20.23 20.24 20.25 20.26 20.27 20.28 20.29 20.30 21.1 21.2 21.3
21.4
21.5 21.6 21.7 21.8 21.9 21.10 21.11 21.12 21.13 21.14 21.15 21.16 21.17 21.18 21.19 21.20 21.21 21.22 21.23 21.24 21.25 21.26 21.27 21.28 21.29 21.30 21.31 22.1 22.2 22.3 22.4 22.5 22.6 22.7 22.8 22.9 22.10 22.11 22.12 22.13 22.14 22.15 22.16 22.17 22.18 22.19
22.20 22.21
22.22 22.23 22.24 22.25 22.26 22.27 22.28 22.29 22.30 22.31 23.1 23.2 23.3 23.4 23.5 23.6 23.7 23.8 23.9 23.10
23.11 23.12
23.13 23.14 23.15 23.16 23.17 23.18 23.19 23.20
23.21 23.22
23.23 23.24 23.25 23.26
23.27 23.28
23.29 23.30 24.1 24.2 24.3 24.4 24.5 24.6 24.7 24.8 24.9 24.10 24.11 24.12 24.13 24.14 24.15 24.16 24.17 24.18 24.19 24.20 24.21 24.22 24.23 24.24 24.25
24.26 24.27
24.28 24.29 24.30 24.31 24.32 25.1 25.2 25.3 25.4 25.5 25.6
25.7
25.8 25.9 25.10 25.11 25.12
25.13
25.14 25.15 25.16 25.17 25.18 25.19 25.20 25.21 25.22 25.23 25.24 25.25 25.26 25.27 25.28 25.29 26.1 26.2 26.3 26.4 26.5 26.6
26.7
26.8 26.9 26.10 26.11 26.12 26.13 26.14 26.15 26.16 26.17 26.18 26.19 26.20 26.21 26.22 26.23 26.24 26.25 26.26 26.27 26.28 26.29 27.1 27.2 27.3 27.4 27.5 27.6 27.7 27.8 27.9 27.10 27.11 27.12 27.13 27.14 27.15 27.16 27.17 27.18 27.19 27.20 27.21 27.22 27.23
27.24
27.25 27.26 27.27 27.28 27.29 27.30 27.31 27.32 28.1 28.2 28.3 28.4 28.5 28.6 28.7 28.8 28.9 28.10 28.11 28.12 28.13 28.14 28.15 28.16 28.17 28.18
28.19 28.20
28.21 28.22 28.23 28.24 28.25 28.26 28.27 28.28 28.29 28.30 28.31 29.1 29.2 29.3 29.4 29.5 29.6 29.7 29.8 29.9 29.10 29.11 29.12 29.13 29.14 29.15 29.16 29.17 29.18 29.19 29.20 29.21 29.22 29.23 29.24 29.25 29.26 29.27 29.28 29.29 29.30
29.31 29.32
30.1 30.2 30.3 30.4 30.5 30.6 30.7 30.8 30.9 30.10 30.11 30.12 30.13 30.14 30.15 30.16 30.17 30.18 30.19 30.20 30.21 30.22 30.23 30.24 30.25 30.26
30.27
30.28 30.29 30.30 30.31 30.32 31.1 31.2 31.3 31.4 31.5 31.6 31.7 31.8 31.9 31.10 31.11 31.12 31.13 31.14 31.15 31.16 31.17 31.18 31.19 31.20 31.21
31.22
31.23 31.24 31.25 31.26 31.27 31.28 31.29 31.30 31.31 31.32 31.33 32.1 32.2 32.3 32.4 32.5 32.6 32.7 32.8 32.9 32.10 32.11 32.12 32.13 32.14 32.15 32.16 32.17 32.18 32.19 32.20
32.21
32.22 32.23 32.24 32.25 32.26 32.27 32.28 32.29 32.30 32.31 32.32 32.33 32.34 33.1 33.2
33.3 33.4
33.5 33.6 33.7 33.8 33.9 33.10 33.11 33.12 33.13 33.14 33.15 33.16 33.17 33.18 33.19 33.20 33.21 33.22 33.23 33.24 33.25 33.26 33.27 33.28 33.29 34.1 34.2 34.3 34.4 34.5 34.6 34.7 34.8 34.9 34.10 34.11 34.12 34.13 34.14 34.15 34.16 34.17 34.18 34.19 34.20 34.21 34.22 34.23 34.24 34.25 34.26 34.27 34.28 34.29 34.30 34.31 35.1 35.2
35.3 35.4
35.5 35.6 35.7 35.8 35.9 35.10 35.11 35.12 35.13 35.14 35.15 35.16 35.17 35.18 35.19 35.20 35.21 35.22 35.23 35.24 35.25 35.26 35.27 35.28 35.29 35.30 35.31 36.1 36.2 36.3 36.4 36.5 36.6 36.7 36.8 36.9 36.10 36.11 36.12 36.13 36.14 36.15 36.16 36.17 36.18 36.19 36.20 36.21 36.22 36.23 36.24 36.25 36.26 36.27 36.28 36.29 36.30 36.31 36.32 36.33 37.1 37.2 37.3 37.4 37.5
37.6 37.7
37.8 37.9 37.10 37.11 37.12 37.13 37.14 37.15 37.16 37.17 37.18 37.19 37.20 37.21 37.22 37.23 37.24 37.25 37.26 37.27 37.28 37.29 37.30 37.31 38.1 38.2 38.3 38.4 38.5 38.6 38.7 38.8 38.9 38.10 38.11 38.12 38.13 38.14 38.15 38.16 38.17 38.18 38.19
38.20 38.21
38.22 38.23 38.24 38.25 38.26
38.27
38.28 38.29 38.30 39.1 39.2 39.3 39.4 39.5 39.6 39.7 39.8 39.9 39.10 39.11 39.12 39.13 39.14
39.15
39.16 39.17 39.18 39.19 39.20 39.21 39.22 39.23 39.24 39.25 39.26 39.27 39.28
39.29
40.1 40.2 40.3 40.4 40.5 40.6 40.7 40.8 40.9 40.10 40.11 40.12
40.13
40.14 40.15 40.16 40.17 40.18 40.19 40.20 40.21 40.22 40.23 40.24 40.25 40.26 40.27 40.28 40.29 40.30 41.1 41.2 41.3 41.4 41.5 41.6 41.7 41.8 41.9 41.10 41.11 41.12 41.13 41.14 41.15 41.16 41.17 41.18 41.19 41.20 41.21 41.22 41.23 41.24 41.25 41.26 41.27 41.28 41.29 41.30 41.31 41.32 41.33 42.1 42.2 42.3 42.4 42.5 42.6 42.7 42.8 42.9 42.10 42.11 42.12 42.13 42.14 42.15 42.16 42.17 42.18 42.19 42.20 42.21 42.22 42.23 42.24 42.25 42.26 42.27 42.28 42.29 42.30 42.31 42.32 42.33 42.34 43.1 43.2 43.3 43.4 43.5 43.6 43.7 43.8 43.9 43.10 43.11 43.12 43.13 43.14 43.15 43.16 43.17 43.18 43.19 43.20 43.21 43.22 43.23 43.24 43.25 43.26 43.27 43.28 43.29 43.30 43.31 43.32 43.33 44.1 44.2 44.3 44.4 44.5 44.6 44.7 44.8 44.9 44.10 44.11 44.12 44.13 44.14 44.15 44.16 44.17 44.18 44.19 44.20 44.21 44.22 44.23 44.24 44.25 44.26 44.27 44.28 44.29 44.30 44.31 45.1 45.2 45.3 45.4 45.5 45.6 45.7 45.8 45.9 45.10 45.11 45.12 45.13 45.14 45.15 45.16 45.17 45.18 45.19 45.20 45.21 45.22 45.23 45.24 45.25 45.26 45.27 45.28 45.29 45.30 45.31 45.32 45.33 45.34 46.1 46.2 46.3 46.4 46.5 46.6 46.7 46.8 46.9 46.10 46.11 46.12 46.13 46.14 46.15 46.16 46.17 46.18 46.19 46.20 46.21 46.22 46.23 46.24 46.25 46.26 46.27 46.28 46.29 46.30 46.31 46.32 46.33 46.34 46.35 47.1 47.2 47.3 47.4 47.5
47.6
47.7 47.8 47.9 47.10 47.11 47.12 47.13 47.14 47.15 47.16 47.17 47.18 47.19 47.20 47.21 47.22 47.23 47.24 47.25 47.26 47.27 47.28 47.29 47.30 47.31 47.32 48.1 48.2 48.3 48.4 48.5 48.6 48.7 48.8 48.9 48.10 48.11 48.12 48.13 48.14 48.15 48.16 48.17 48.18 48.19 48.20 48.21 48.22 48.23 48.24 48.25 48.26 48.27 48.28 48.29 48.30 48.31 48.32 49.1 49.2 49.3 49.4 49.5 49.6 49.7 49.8 49.9 49.10 49.11 49.12 49.13 49.14 49.15 49.16 49.17 49.18 49.19 49.20 49.21 49.22 49.23 49.24 49.25 49.26 49.27 49.28 49.29 49.30 49.31
50.1
50.2 50.3 50.4 50.5 50.6 50.7 50.8 50.9
50.10
50.11 50.12 50.13 50.14 50.15 50.16 50.17 50.18 50.19 50.20 50.21 50.22 50.23 50.24 50.25
50.26
50.27 50.28 50.29 50.30 50.31 51.1 51.2 51.3 51.4 51.5 51.6 51.7 51.8 51.9 51.10 51.11 51.12 51.13 51.14 51.15 51.16 51.17 51.18
51.19 51.20
51.21 51.22 51.23 51.24 51.25 51.26 51.27 51.28 51.29
51.30 51.31
52.1 52.2 52.3 52.4 52.5 52.6 52.7 52.8 52.9 52.10 52.11
52.12 52.13
52.14 52.15 52.16 52.17 52.18 52.19 52.20 52.21 52.22 52.23 52.24 52.25 52.26 52.27 52.28 52.29 52.30
52.31 52.32
53.1 53.2 53.3 53.4 53.5 53.6 53.7 53.8 53.9 53.10 53.11 53.12
53.13
53.14 53.15 53.16 53.17 53.18 53.19 53.20 53.21 53.22 53.23 53.24 53.25 53.26 53.27 53.28 53.29 54.1 54.2 54.3 54.4 54.5 54.6 54.7 54.8 54.9 54.10
54.11
54.12 54.13 54.14 54.15 54.16 54.17 54.18 54.19 54.20 54.21 54.22 54.23 54.24 54.25 54.26 54.27 54.28 54.29 54.30 54.31 54.32 54.33 55.1 55.2 55.3 55.4 55.5
55.6 55.7
55.8 55.9 55.10 55.11 55.12 55.13 55.14 55.15 55.16 55.17 55.18 55.19
55.20
55.21 55.22 55.23 55.24 55.25 55.26 55.27 55.28 55.29
55.30 55.31 55.32
56.1 56.2 56.3 56.4 56.5 56.6 56.7 56.8 56.9 56.10 56.11 56.12 56.13
56.14
56.15 56.16 56.17 56.18 56.19 56.20 56.21 56.22 56.23 56.24 56.25
56.26 56.27
56.28 56.29 56.30 56.31 57.1 57.2 57.3 57.4 57.5
57.6
57.7 57.8 57.9 57.10
57.11
57.12 57.13 57.14 57.15 57.16 57.17 57.18 57.19 57.20 57.21
57.22
57.23 57.24 57.25 57.26 57.27 57.28 57.29 57.30 57.31
58.1
58.2 58.3 58.4 58.5 58.6 58.7 58.8 58.9 58.10 58.11
58.12
58.13 58.14
58.15 58.16 58.17 58.18 58.19 58.20 58.21 58.22 58.23 58.24 58.25 58.26 58.27 58.28 58.29 58.30 59.1 59.2 59.3 59.4 59.5 59.6 59.7 59.8 59.9 59.10 59.11 59.12 59.13 59.14 59.15 59.16 59.17 59.18 59.19 59.20 59.21 59.22 59.23 59.24 59.25 59.26 59.27 59.28 59.29 59.30 59.31 59.32 59.33 59.34 60.1 60.2 60.3 60.4 60.5 60.6 60.7 60.8 60.9 60.10 60.11 60.12 60.13 60.14 60.15 60.16 60.17 60.18 60.19 60.20
60.21 60.22
60.23 60.24 60.25 60.26 60.27 60.28 60.29 60.30 60.31 60.32 60.33 61.1 61.2 61.3 61.4 61.5 61.6 61.7 61.8 61.9 61.10 61.11 61.12 61.13 61.14 61.15 61.16 61.17 61.18 61.19 61.20 61.21 61.22 61.23 61.24 61.25 61.26 61.27 61.28 61.29 61.30 61.31 61.32 62.1 62.2 62.3 62.4 62.5 62.6 62.7 62.8 62.9 62.10 62.11 62.12 62.13 62.14 62.15 62.16 62.17 62.18 62.19 62.20 62.21 62.22 62.23 62.24 62.25 62.26 62.27 62.28 62.29 62.30 62.31 62.32 63.1 63.2 63.3 63.4 63.5 63.6
63.7 63.8
63.9 63.10 63.11 63.12 63.13 63.14 63.15 63.16 63.17 63.18 63.19 63.20 63.21 63.22 63.23 63.24 63.25 63.26 63.27 63.28 63.29 63.30 63.31 63.32 63.33 64.1 64.2 64.3 64.4 64.5 64.6 64.7 64.8 64.9 64.10 64.11 64.12 64.13 64.14 64.15 64.16 64.17 64.18 64.19 64.20 64.21 64.22 64.23 64.24
64.25
64.26 64.27 64.28 64.29 64.30 64.31 64.32 65.1 65.2 65.3 65.4 65.5 65.6 65.7 65.8 65.9 65.10 65.11 65.12
65.13 65.14
65.15 65.16 65.17 65.18 65.19
65.20 65.21 65.22 65.23 65.24 65.25 65.26 65.27 65.28 65.29 65.30 65.31 65.32 66.1 66.2 66.3 66.4 66.5 66.6 66.7 66.8 66.9 66.10 66.11 66.12 66.13 66.14 66.15 66.16 66.17 66.18 66.19 66.20 66.21 66.22 66.23 66.24 66.25 66.26 66.27 66.28 66.29 66.30 66.31 67.1 67.2 67.3 67.4 67.5 67.6 67.7 67.8 67.9 67.10 67.11 67.12 67.13 67.14 67.15 67.16 67.17 67.18 67.19 67.20 67.21 67.22 67.23 67.24 67.25
67.26
67.27 67.28 67.29 67.30 67.31 67.32 68.1 68.2 68.3 68.4 68.5 68.6 68.7 68.8 68.9 68.10 68.11 68.12 68.13 68.14 68.15 68.16 68.17 68.18 68.19 68.20 68.21 68.22 68.23 68.24 68.25 68.26 68.27 68.28 68.29 68.30 68.31
68.32 68.33
69.1 69.2 69.3 69.4 69.5 69.6 69.7 69.8 69.9 69.10 69.11 69.12 69.13 69.14 69.15 69.16 69.17 69.18 69.19 69.20 69.21 69.22 69.23 69.24 69.25 69.26 69.27 69.28 69.29 69.30 69.31 69.32 69.33 70.1 70.2 70.3 70.4 70.5 70.6 70.7 70.8 70.9 70.10 70.11 70.12 70.13 70.14 70.15 70.16 70.17 70.18 70.19 70.20 70.21 70.22 70.23 70.24 70.25 70.26 70.27 70.28 70.29 70.30 70.31 70.32 70.33 71.1 71.2 71.3 71.4 71.5 71.6 71.7 71.8 71.9 71.10 71.11 71.12 71.13 71.14 71.15 71.16 71.17 71.18 71.19 71.20 71.21 71.22
71.23 71.24
71.25 71.26 71.27 71.28 71.29 71.30 71.31 71.32 71.33 72.1 72.2 72.3 72.4 72.5
72.6
72.7 72.8 72.9 72.10 72.11 72.12 72.13 72.14 72.15 72.16 72.17 72.18 72.19 72.20 72.21 72.22 72.23 72.24 72.25 72.26 72.27 72.28 72.29 72.30 72.31 72.32 72.33 72.34 73.1 73.2 73.3 73.4 73.5 73.6 73.7 73.8 73.9 73.10 73.11 73.12 73.13 73.14 73.15 73.16 73.17 73.18 73.19 73.20 73.21 73.22 73.23 73.24 73.25 73.26 73.27 73.28 73.29 73.30 73.31 73.32 73.33 73.34 74.1 74.2 74.3 74.4 74.5 74.6 74.7 74.8 74.9 74.10 74.11 74.12 74.13 74.14 74.15 74.16 74.17
74.18 74.19
74.20 74.21 74.22 74.23 74.24 74.25 74.26 74.27 74.28 74.29 74.30 74.31 74.32 75.1 75.2 75.3 75.4 75.5 75.6 75.7 75.8 75.9 75.10 75.11 75.12 75.13 75.14 75.15 75.16 75.17 75.18 75.19 75.20 75.21 75.22 75.23 75.24 75.25 75.26 75.27 75.28
75.29 75.30 75.31
76.1 76.2 76.3 76.4 76.5 76.6 76.7 76.8 76.9 76.10 76.11 76.12 76.13 76.14 76.15 76.16 76.17 76.18 76.19 76.20 76.21 76.22 76.23 76.24 76.25 76.26 76.27 76.28 76.29 76.30 76.31 76.32 77.1 77.2
77.3 77.4 77.5
77.6 77.7 77.8 77.9 77.10 77.11 77.12 77.13 77.14 77.15 77.16 77.17 77.18 77.19 77.20 77.21 77.22 77.23 77.24 77.25 77.26 77.27 77.28 77.29 77.30 77.31 77.32 77.33 78.1 78.2 78.3 78.4 78.5 78.6 78.7 78.8 78.9 78.10 78.11 78.12 78.13 78.14 78.15 78.16 78.17 78.18 78.19 78.20 78.21 78.22 78.23 78.24 78.25 78.26 78.27 78.28 78.29 78.30 78.31 78.32 78.33 79.1 79.2 79.3 79.4 79.5 79.6 79.7 79.8 79.9 79.10 79.11 79.12 79.13 79.14 79.15 79.16 79.17 79.18 79.19 79.20 79.21 79.22 79.23 79.24 79.25 79.26 79.27 79.28 79.29 79.30 79.31 80.1 80.2 80.3 80.4 80.5 80.6 80.7 80.8 80.9 80.10 80.11 80.12 80.13 80.14 80.15 80.16 80.17
80.18 80.19 80.20 80.21 80.22 80.23 80.24
80.25 80.26 80.27 80.28 80.29 80.30 81.1 81.2 81.3 81.4 81.5 81.6 81.7 81.8 81.9 81.10 81.11 81.12
81.13 81.14 81.15
81.16 81.17 81.18 81.19 81.20 81.21 81.22 81.23 81.24 81.25 81.26 81.27 81.28 81.29 81.30 81.31 81.32 81.33
82.1 82.2 82.3
82.4 82.5 82.6 82.7 82.8 82.9 82.10 82.11 82.12 82.13 82.14 82.15 82.16 82.17 82.18 82.19 82.20 82.21 82.22 82.23 82.24 82.25 82.26 82.27 82.28 82.29 82.30 82.31 82.32 82.33 82.34 82.35 82.36 83.1 83.2 83.3 83.4 83.5 83.6 83.7 83.8 83.10 83.9 83.11 83.12 83.13 83.14 83.15 83.16 83.17
83.18 83.19 83.20
83.21 83.22 83.23 83.24 83.25 83.26 83.27 83.28 83.29 83.30 83.31 83.32 83.33 83.34 84.1 84.2 84.3 84.4 84.5
84.6 84.7 84.8
84.9 84.10 84.11 84.12 84.13 84.14 84.15 84.16 84.17 84.18 84.19 84.20 84.21 84.22 84.23 84.24 84.25 84.26 84.27 84.28 84.29 84.30 84.31 84.32 84.33 84.34 85.1 85.2 85.3 85.4 85.5 85.6 85.7 85.8 85.9 85.10 85.11 85.12 85.13 85.14 85.15 85.16 85.17
85.18 85.19 85.20
85.21 85.22 85.23 85.24 85.25 85.26 85.27 85.28 85.29 85.30 85.31 85.32 86.1 86.2
86.3 86.4 86.5
86.6 86.7 86.8 86.9 86.10 86.11 86.12 86.13 86.14
86.15 86.16 86.17 86.18 86.19
86.20 86.21 86.22 86.23 86.24 86.25 86.26 86.27 86.28
86.29 86.30 86.31 87.1 87.2
87.3 87.4 87.5 87.6 87.7 87.8 87.9 87.10 87.11 87.12 87.13 87.14 87.15 87.16 87.17 87.18
87.19 87.20 87.21
87.22 87.23 87.24 87.25 87.26 87.27 87.28 87.29
87.30 87.31 87.32
88.1 88.2 88.3 88.4 88.5 88.6
88.7 88.8 88.9
88.10 88.11 88.12 88.13 88.14 88.15 88.16 88.17 88.18 88.19 88.20 88.21 88.22 88.23 88.24
88.25 88.26 88.27
88.28 88.29 88.30 88.31 88.32 89.1 89.2 89.3 89.4 89.5 89.6 89.7 89.8 89.9 89.10 89.11 89.12 89.13 89.14
89.15 89.16 89.17
89.18 89.19 89.20 89.21 89.22 89.23 89.24 89.25 89.26 89.27 89.28 89.29 89.30 89.31 89.32 90.1 90.2 90.3 90.4 90.5 90.6 90.7 90.8 90.9 90.10 90.11 90.12 90.13
90.14 90.15 90.16
90.17 90.18 90.19 90.20 90.21 90.22 90.23 90.24
90.25 90.26 90.27
91.1 91.2
91.3 91.4 91.5 91.6 91.7 91.8 91.9 91.10 91.11 91.12 91.13 91.14 91.15 91.16 91.17 91.18 91.19 91.20 91.21 91.22 91.23
91.24 91.25 91.26 91.27 91.28 91.29 91.30 91.31 92.1 92.2 92.3 92.4 92.5 92.6 92.7 92.8 92.9 92.10 92.11 92.12 92.13 92.14 92.15 92.16 92.17 92.18 92.19 92.20 92.21 92.22
92.23 92.24 92.25 92.26 92.27 92.28 92.29 92.30 93.1 93.2 93.3 93.4 93.5 93.6 93.7 93.8 93.9 93.10 93.11 93.12 93.13
93.14 93.15 93.16 93.17 93.18 93.19 93.20 93.21 93.22 93.23 93.24 93.25 93.26 93.27 93.28 93.29 93.30 93.31 93.32 93.33 94.1 94.2 94.3 94.4 94.5 94.6 94.7 94.8 94.9 94.10
94.11 94.12 94.13 94.14 94.15
94.16 94.17 94.18 94.19 94.20 94.21 94.22 94.23 94.24 94.25 94.26 94.27 94.28 94.29 94.30 94.31 94.32 95.1 95.2
95.3 95.4 95.5 95.6 95.7 95.8 95.9 95.10 95.11 95.12 95.13 95.14 95.15 95.16 95.17 95.18 95.19 95.20 95.21 95.22 95.23 95.24 95.25 95.26 95.27 95.28 95.29 95.30 95.31 95.32
96.1 96.2 96.3 96.4 96.5 96.6 96.7 96.8 96.9 96.10 96.11 96.12 96.13 96.14 96.15 96.16 96.17 96.18 96.19 96.20 96.21 96.22 96.23 96.24 96.25 96.26 96.27 96.28 96.29 96.30 96.31 96.32 96.33
97.1 97.2 97.3 97.4 97.5 97.6 97.7 97.8 97.9 97.10 97.11 97.12 97.13 97.14 97.15 97.16 97.17 97.18 97.19 97.20 97.21 97.22
97.23 97.24 97.25 97.26 97.27 97.28 97.29 97.30 97.31 97.32
98.1 98.2
98.3 98.4 98.5 98.6 98.7 98.8 98.9 98.10 98.11 98.12 98.13 98.14 98.15
98.16 98.17
98.18 98.19 98.20 98.21 98.22
98.23
98.24 98.25 98.26 98.27 98.28 99.1 99.2 99.3 99.4 99.5 99.6 99.7 99.8 99.9
99.10
99.11 99.12 99.13 99.14 99.15 99.16 99.17 99.18 99.19 99.20 99.21 99.22 99.23 99.24 99.25 99.26 99.27 99.28
99.29
100.1 100.2 100.3 100.4 100.5 100.6 100.7 100.8 100.9 100.10 100.11 100.12 100.13 100.14 100.15 100.16 100.17 100.18 100.19 100.20 100.21 100.22
100.23
100.24 100.25 100.26 100.27 100.28 100.29 100.30 101.1 101.2 101.3 101.4 101.5 101.6 101.7
101.8
101.9 101.10 101.11 101.12 101.13 101.14 101.15 101.16 101.17 101.18
101.19
101.20 101.21 101.22 101.23 101.24 101.25 101.26 101.27 101.28 101.29 101.30
101.31
102.1 102.2 102.3 102.4 102.5 102.6 102.7 102.8 102.9 102.10 102.11 102.12 102.13 102.14 102.15 102.16
102.17
102.18 102.19 102.20 102.21 102.22 102.23 102.24 102.25 102.26 102.27 102.28 102.29 102.30 103.1 103.2 103.3 103.4 103.5 103.6
103.7
103.8 103.9 103.10 103.11 103.12 103.13 103.14 103.15 103.16 103.17 103.18 103.19 103.20 103.21 103.22 103.23 103.24 103.25 103.26 103.27 103.28 103.29 103.30 103.31 103.32 103.33 103.34
104.1
104.2 104.3 104.4 104.5 104.6 104.7 104.8 104.9 104.10 104.11 104.12 104.13 104.14 104.15 104.16 104.17 104.18 104.19 104.20 104.21 104.22 104.23 104.24 104.25 104.26 104.27 104.28 104.29
104.30
105.1 105.2 105.3 105.4 105.5 105.6 105.7 105.8 105.9 105.10 105.11 105.12 105.13 105.14 105.15 105.16 105.17 105.18 105.19 105.20 105.21 105.22 105.23 105.24 105.25 105.26 105.27 105.28 105.29 105.30 105.31 105.32 105.33 105.34 106.1 106.2 106.3 106.4 106.5 106.6 106.7 106.8 106.9 106.10
106.11
106.12 106.13 106.14 106.15 106.16 106.17 106.18 106.19 106.20 106.21 106.22 106.23 106.24 106.25 106.26 106.27 106.28 106.29 106.30 106.31 107.1 107.2 107.3 107.4 107.5 107.6 107.7 107.8 107.9 107.10 107.11 107.12 107.13 107.14 107.15 107.16 107.17 107.18 107.19 107.20 107.21 107.22 107.23 107.24 107.25
107.26
107.27 107.28 107.29 107.30 107.31 107.32 107.33 108.1 108.2 108.3 108.4 108.5 108.6 108.7 108.8 108.9 108.10 108.11 108.12 108.13 108.14 108.15 108.16 108.17 108.18 108.19 108.20 108.21 108.22 108.23 108.24 108.25 108.26
108.27 108.28
108.29 108.30 108.31 108.32 109.1 109.2 109.3
109.4 109.5
109.6 109.7 109.8 109.9 109.10 109.11 109.12 109.13 109.14 109.15 109.16 109.17 109.18 109.19 109.20 109.21
109.22
109.23 109.24 109.25 109.26 109.27 109.28 109.29 109.30 110.1 110.2 110.3 110.4 110.5 110.6 110.7
110.8
110.9 110.10 110.11 110.12 110.13 110.14 110.15 110.16 110.17 110.18 110.19
110.20 110.21
110.22 110.23 110.24 110.25 110.26 110.27 110.28 110.29 110.30 111.1 111.2 111.3 111.4 111.5 111.6 111.7 111.8 111.9 111.10 111.11 111.12 111.13 111.14 111.15 111.16 111.17 111.18 111.19 111.20 111.21 111.22 111.23 111.24
111.25 111.26
111.27 111.28 111.29 111.30 111.31 111.32 112.1 112.2 112.3 112.4
112.5 112.6
112.7 112.8 112.9 112.10 112.11 112.12 112.13 112.14 112.15 112.16 112.17 112.18 112.19 112.20 112.21 112.22 112.23 112.24 112.25
112.26 112.27
112.28 112.29 112.30 112.31 112.32
113.1 113.2
113.3 113.4 113.5 113.6 113.7 113.8 113.9 113.10 113.11 113.12 113.13 113.14 113.15 113.16 113.17 113.18 113.19 113.20
113.21
113.22 113.23 113.24
113.25 113.26 113.27 113.28
113.29
114.1 114.2 114.3 114.4 114.5 114.6 114.7 114.8
114.9 114.10 114.11 114.12 114.13 114.14 114.15 114.16 114.17 114.18
114.19
114.20 114.21 114.22 114.23 114.24 114.25 114.26 114.27 114.28 114.29 114.30 114.31 115.1 115.2 115.3 115.4 115.5 115.6 115.7 115.8 115.9 115.10 115.11 115.12 115.13 115.14 115.15 115.16 115.17 115.18 115.19 115.20 115.21 115.22 115.23 115.24 115.25 115.26 115.27 115.28 115.29 115.30 115.31 115.32 116.1 116.2
116.3 116.4 116.5 116.6 116.7
116.8 116.9
116.10 116.11 116.12
116.13 116.14 116.15 116.16 116.17
116.18 116.19
116.20 116.21 116.22 116.23 116.24 116.25 116.26 116.27 116.28 116.29 116.30 116.31 117.1 117.2 117.3 117.4 117.5 117.6 117.7 117.8 117.9 117.10 117.11 117.12 117.13 117.14 117.15 117.16 117.17 117.18 117.19 117.20 117.21 117.22 117.23 117.24 117.25 117.26 117.27 117.28 117.29 117.30 117.31 117.32 117.33 118.1 118.2 118.3 118.4 118.5 118.6 118.7 118.8
118.9 118.10
118.11 118.12 118.13 118.14 118.15 118.16 118.17 118.18 118.19 118.20 118.21 118.22 118.23 118.24 118.25 118.26 118.27 118.28 118.29 118.30 118.31 118.32 119.1 119.2 119.3 119.4 119.5 119.6 119.7 119.8 119.9 119.10 119.11 119.12 119.13 119.14 119.15 119.16
119.17 119.18
119.19 119.20 119.21 119.22 119.23 119.24 119.25 119.26 119.27 119.28 119.29 119.30 120.1 120.2 120.3 120.4 120.5 120.6 120.7 120.8 120.9 120.10 120.11 120.12 120.13 120.14 120.15 120.16 120.17 120.18 120.19 120.20 120.21
120.22
120.23 120.24 120.25 120.26 120.27 120.28 120.29 120.30 120.31 120.32 121.1 121.2 121.3 121.4 121.5 121.6
121.7 121.8
121.9 121.10 121.11 121.12 121.13 121.14 121.15 121.16 121.17 121.18 121.19 121.20 121.21 121.22 121.23 121.24 121.25 121.26 121.27 121.28 121.29 121.30 121.31 122.1 122.2 122.3 122.4 122.5 122.6 122.7 122.8 122.9 122.10 122.11 122.12 122.13 122.14 122.15
122.16 122.17
122.18 122.19 122.20 122.21 122.22 122.23 122.24 122.25 122.26 122.27 122.28 122.29 122.30 122.31 122.32 123.1 123.2 123.3 123.4 123.5 123.6 123.7 123.8
123.9 123.10
123.11 123.12 123.13 123.14 123.15 123.16 123.17 123.18
123.19 123.20
123.21 123.22 123.23 123.24 123.25 123.26 123.27 123.28 123.29 123.30 123.31 124.1 124.2 124.3 124.4 124.5 124.6 124.7 124.8 124.9 124.10 124.11 124.12 124.13
124.14 124.15
124.16 124.17 124.18 124.19 124.20 124.21 124.22 124.23 124.24 124.25 124.26 124.27 124.28 124.29 125.1 125.2 125.3 125.4 125.5 125.6 125.7 125.8 125.9 125.10 125.11 125.12 125.13 125.14 125.15 125.16 125.17 125.18 125.19 125.20 125.21 125.22 125.23 125.24 125.25 125.26 125.27 125.28 125.29 125.30 125.31 125.32 126.1 126.2 126.3 126.4 126.5 126.6 126.7 126.8 126.9
126.10 126.11
126.12 126.13
126.14 126.15 126.16 126.17 126.18 126.19 126.20 126.21 126.22 126.23 126.24 126.25 126.26 126.27 126.28 126.29 126.30
126.31
127.1 127.2 127.3 127.4 127.5 127.6 127.7 127.8 127.9 127.10 127.11 127.12 127.13 127.14 127.15 127.16 127.17 127.18 127.19 127.20 127.21 127.22 127.23 127.24 127.25 127.26 127.27 127.28 127.29 128.1 128.2 128.3 128.4 128.5 128.6 128.7 128.8 128.9 128.10 128.11 128.12 128.13
128.14
128.15 128.16 128.17 128.18 128.19 128.20 128.21 128.22 128.23 128.24 128.25 128.26 128.27 128.28 128.29 128.30 129.1 129.2 129.3 129.4
129.5
129.6 129.7 129.8 129.9 129.10 129.11 129.12 129.13 129.14 129.15
129.16
129.17 129.18 129.19 129.20 129.21 129.22 129.23 129.24 129.25 129.26 129.27 129.28 129.29 129.30 129.31 130.1 130.2 130.3 130.4 130.5 130.6 130.7 130.8 130.9 130.10 130.11 130.12 130.13 130.14 130.15 130.16 130.17 130.18 130.19 130.20 130.21 130.22 130.23 130.24 130.25 130.26 130.27 130.28 130.29 130.30 130.31 130.32 131.1 131.2 131.3 131.4 131.5 131.6 131.7 131.8 131.9 131.10 131.11 131.12 131.13 131.14 131.15 131.16 131.17 131.18 131.19 131.20 131.21 131.22 131.23 131.24 131.25 131.26 131.27 131.28 131.29 131.30 131.31 131.32 132.1 132.2 132.3 132.4 132.5 132.6 132.7 132.8 132.9 132.10 132.11 132.12 132.13 132.14 132.15 132.16 132.17 132.18 132.19 132.20 132.21 132.22 132.23 132.24 132.25 132.26 132.27 132.28 132.29 132.30 132.31 132.32 132.33 132.34 133.1 133.2 133.3 133.4 133.5 133.6 133.7 133.8 133.9 133.10 133.11
133.12
133.13 133.14 133.15 133.16 133.17 133.18 133.19 133.20 133.21 133.22 133.23 133.24 133.25 133.26 133.27 133.28 133.29 133.30 133.31 134.1 134.2 134.3
134.4 134.5
134.6 134.7 134.8 134.9 134.10 134.11 134.12 134.13 134.14 134.15 134.16 134.17
134.18 134.19
134.20 134.21 134.22 134.23 134.24 134.25 134.26 134.27 134.28 134.29 134.30 134.31 134.32 135.1 135.2 135.3 135.4 135.5 135.6 135.7 135.8 135.9 135.10 135.11 135.12 135.13 135.14 135.15 135.16 135.17 135.18 135.19 135.20 135.21 135.22
135.23 135.24
135.25 135.26
135.27 135.28 135.29 135.30 135.31 135.32 136.1 136.2 136.3 136.4 136.5 136.6 136.7 136.8 136.9 136.10 136.11 136.12 136.13 136.14 136.15 136.16 136.17 136.18 136.19 136.20 136.21 136.22 136.23 136.24 136.25 136.26 136.27 136.28 136.29 136.30 136.31 137.1 137.2 137.3 137.4 137.5 137.6 137.7 137.8 137.9 137.10 137.11 137.12 137.13 137.14 137.15 137.16 137.17 137.18 137.19 137.20 137.21 137.22 137.23 137.24 137.25 137.26 137.27 137.28 137.29 138.1 138.2 138.3
138.4 138.5
138.6 138.7 138.8 138.9 138.10 138.11 138.12 138.13 138.14 138.15 138.16 138.17 138.18 138.19 138.20 138.21 138.22 138.23 138.24 138.25 138.26 138.27 138.28 138.29 138.30 138.31 138.32 138.33 139.1 139.2 139.3 139.4 139.5 139.6 139.7 139.8 139.9 139.10 139.11 139.12 139.13 139.14 139.15 139.16 139.17 139.18 139.19 139.20 139.21 139.22 139.23 139.24 139.25 139.26 139.27 139.28 139.29 139.30 139.31 139.32 139.33 139.34 140.1 140.2 140.3 140.4 140.5 140.6 140.7 140.8 140.9 140.10 140.11 140.12 140.13 140.14 140.15 140.16 140.17 140.18 140.19
140.20 140.21
140.22 140.23 140.24 140.25 140.26 140.27 140.28 140.29 140.30 140.31 140.32 141.1 141.2 141.3 141.4 141.5 141.6 141.7 141.8 141.9 141.10 141.11 141.12 141.13 141.14 141.15 141.16 141.17 141.18 141.19 141.20 141.21 141.22 141.23 141.24 141.25 141.26 141.27 141.28 141.29 141.30 141.31 141.32 141.33 141.34 142.1 142.2 142.3 142.4 142.5 142.6 142.7 142.8 142.9 142.10 142.11 142.12 142.13 142.14 142.15 142.16 142.17 142.18 142.19 142.20 142.21 142.22 142.23 142.24 142.25 142.26 142.27 142.28 142.29 142.30 142.31 142.32 142.33 142.34 142.35 143.1 143.2 143.3 143.4 143.5 143.6 143.7 143.8 143.9 143.10
143.11 143.12
143.13 143.14 143.15 143.16 143.17 143.18 143.19
143.20
143.21 143.22 143.23 143.24 143.25 143.26 143.27 143.28 143.29 143.30 143.31 143.32 144.1 144.2 144.3 144.4 144.5 144.6 144.7 144.8 144.9 144.10 144.11 144.12 144.13 144.14 144.15 144.16 144.17
144.18
144.19 144.20 144.21 144.22 144.23 144.24 144.25 144.26 144.27 144.28 144.29 144.30
144.31
145.1 145.2 145.3 145.4 145.5 145.6 145.7 145.8 145.9 145.10 145.11
145.12 145.13
A bill for an act
relating to taxation; modifying individual income taxes, corporate franchise taxes,
sales and use taxes, excise taxes, local sales and use taxes, property taxes, local
government aids, tax increment financing, and other miscellaneous taxes and
tax-related provisions; modifying the political contribution refund; modifying
subtractions; providing for direct free filing; modifying credits, assignments, and
transfers; modifying and providing for sales and use tax exemptions; modifying
excise taxes for sales of premium cigars outside of Minnesota; providing for license
endorsements for premium cigars; modifying accelerated payments for liquor
excise and tobacco excise taxes; modifying and providing for property tax
exemptions; modifying property tax classifications; providing for land bank
organizations; providing local government aid penalty forgiveness; modifying
aids; providing for special tax increment financing; modifying tax increment
financing provisions; modifying provisions related to public finance; modifying
provisions related to the Tax Expenditure Review Commission; increasing debt
issue limits; modifying penalties relating to property tax refunds and certificates
of rent paid; modifying payments for the Sustainable Forest Incentive Act;
modifying gross revenues and gross receipts taxes; modifying solid waste
management tax dedications and definitions; providing for land-value taxation
districts; repealing the tax on illegal cannabis and controlled substances; creating
a legislative task force on local sales and use taxes; providing transfers of money;
appropriating money; amending Minnesota Statutes 2024, sections 3.192; 3.8855,
subdivisions 2, 3, 4, 5, 7, 8; 10A.02, subdivision 11b; 10A.322, subdivision 4;
37.31, subdivision 1; 41B.0391, subdivision 4; 116U.27, subdivision 2; 270C.11,
subdivision 4; 270C.15; 270C.445, subdivisions 3, 6; 272.01, subdivision 2; 272.02,
subdivisions 7, 19, by adding subdivisions; 273.13, subdivisions 22, 25, 34; 273.38;
273.41; 289A.12, subdivision 18; 289A.20, subdivision 4; 289A.60, subdivision
12; 290.01, subdivision 19; 290.0132, subdivisions 26, 34, by adding subdivisions;
290.0134, subdivision 20; 290.06, subdivision 23; 290.0661, by adding a
subdivision; 290.0693, subdivisions 1, 4, 6, 8; 290.0695, subdivisions 1, 2, 3;
290A.03, subdivision 3; 290A.19; 290B.03, subdivision 1; 290B.04, subdivisions
3, 4; 290B.05, subdivision 1; 290C.07; 295.53, subdivision 4a; 295.54, subdivision
2; 295.81, subdivision 10; 297A.68, subdivisions 3, 40; 297A.71, subdivision 54;
297A.75, subdivisions 1, 2, 3; 297A.77, subdivision 3; 297A.94; 297A.99,
subdivisions 3a, 10; 297A.995, subdivisions 2, 10; 297E.06, subdivision 4; 297F.01,
by adding a subdivision; 297F.03, by adding a subdivision; 297F.04; 297F.06, by
adding a subdivision; 297F.09, subdivisions 2, 10; 297G.09, subdivisions 9, 10;
297H.01, subdivision 8; 297H.13, subdivision 2; 297I.20, subdivision 4; 373.40,
subdivision 2; 446A.086, subdivisions 1, 2; 462A.39, subdivision 5; 462A.40,
subdivisions 2, 3; 462C.04, subdivision 2; 469.104; 469.154, subdivision 4;
469.174, subdivision 10; 469.175, subdivision 3; 469.176, subdivision 4n; 469.1761,
subdivisions 1, 3; 469.1763, subdivisions 2, 3, 4, by adding a subdivision; 469.177,
subdivision 1; 469.1812, by adding a subdivision; 469.1813, subdivisions 1, 6, by
adding a subdivision; 474A.091, subdivisions 2, 2a; 475.521, subdivision 2;
609.902, subdivision 4; 641.23; Laws 2010, chapter 389, article 7, section 22, as
amended; Laws 2013, chapter 143, article 9, section 21; Laws 2014, chapter 308,
article 6, section 9, as amended; Laws 2017, First Special Session chapter 1, article
6, section 22; Laws 2023, chapter 1, sections 22; 28; Laws 2023, chapter 64, article
15, section 24; proposing coding for new law in Minnesota Statutes, chapters
289A; 297A; 428A; repealing Minnesota Statutes 2024, sections 13.4967,
subdivisions 2a, 5; 290.0679; 297D.01; 297D.02; 297D.03; 297D.04; 297D.05;
297D.06; 297D.07; 297D.08; 297D.085; 297D.09, subdivisions 1, 1a, 2; 297D.10;
297D.11; 297D.12; 297D.13; 477A.32.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
INDIVIDUAL INCOME AND CORPORATE FRANCHISE TAXES
Section 1.
Minnesota Statutes 2024, section 10A.02, subdivision 11b, is amended to read:
Subd. 11b.
Data privacy related to electronic reporting system.
new text begin (a) new text end The board may
develop and maintain systems to enable treasurers to enter and store electronic records
online for the purpose of complying with this chapter. Data entered into such systems by
treasurers or their authorized agents is not government data under chapter 13 and may not
be accessed or used by the board for any purpose without the treasurer's written consent.
Data from such systems that has been submitted to the board as a filed report is government
data under chapter 13.
new text begin
(b) For purposes of administering the refund under section 290.06, subdivision 23, the
board may access or use the following data entered and stored in an electronic reporting
system and share the data with the commissioner of revenue: (1) the amount of the
contribution; (2) the name and address of the person requesting the refund; (3) any unique
identifier for the contribution; (4) the name and campaign identification number of the party
or candidate that received the contribution; and (5) the date on which the contribution was
received. Data accessed, used, or maintained by the board under this paragraph are classified
as nonpublic data, as defined in section 13.02, subdivision 9, and private data on individuals,
as defined in section 13.02, subdivision 12.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2027.
new text end
Sec. 2.
Minnesota Statutes 2024, section 10A.322, subdivision 4, is amended to read:
Subd. 4.
Refund deleted text begin receipt formsdeleted text end new text begin receiptsnew text end ; penalty.
(a) The board must make available
to a political party on request and to any candidate for whom an agreement under this section
is effective, deleted text begin a supply ofdeleted text end official new text begin electronic new text end refund deleted text begin receipt formsdeleted text end new text begin receiptsnew text end that state in boldface
type that:
(1) a contributor who is given a receipt deleted text begin formdeleted text end is eligible to claim a refund as provided in
section 290.06, subdivision 23; and
(2) if the contribution is to a candidate, that the candidate has signed an agreement to
limit campaign expenditures as provided in this section.
deleted text begin
The forms must provide duplicate copies of the receipt to be attached to the contributor's
claim.
deleted text end
new text begin
An electronic receipt must only be issued for a contribution of $10 or more. Each
receipt must include a unique receipt validation number that allows the commissioner of
revenue to verify the information on the receipt with the Campaign Finance Board. A
political party or candidate may provide a printed copy of the electronic receipt to the
contributor.
new text end
new text begin
(b) At least once a week, the board must provide the commissioner of revenue a receipt
validation report. For each contribution reported to the board during the week, the report
must include:
new text end
new text begin
(1) the date and amount of the contribution;
new text end
new text begin
(2) the name and address of the contributor;
new text end
new text begin
(3) the name and campaign identification number of the party or candidate that received
the contribution; and
new text end
new text begin
(4) the receipt validation number assigned to the contribution.
new text end
deleted text begin (b)deleted text end new text begin (c)new text end The willful issuance of an official refund receipt deleted text begin form or a facsimile of onedeleted text end to
any of the candidate's contributors by a candidate or treasurer of a candidate who did not
sign an agreement under this section is subject to a civil penalty of up to $3,000 imposed
by the board.
deleted text begin (c)deleted text end new text begin (d)new text end The willful issuance of an official refund receipt deleted text begin form or a facsimiledeleted text end to an
individual not eligible to claim a refund under section 290.06, subdivision 23, is subject to
a civil penalty of up to $3,000 imposed by the board.
deleted text begin (d)deleted text end new text begin (e)new text end A violation of paragraph deleted text begin (b)deleted text end new text begin (c)new text end or deleted text begin (c)deleted text end new text begin (d)new text end is a misdemeanor.
new text begin
(f) A receipt validation report and a receipt validation number prepared pursuant to this
section are private data on individuals, as defined in section 13.02, subdivision 12.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for contributions made after December
31, 2026.
new text end
Sec. 3.
Minnesota Statutes 2024, section 41B.0391, subdivision 4, is amended to read:
Subd. 4.
Authority duties.
(a) The authority shall:
(1) approve and certify or recertify beginning farmers as eligible for the program under
this section;
(2) approve and certify or recertify owners of agricultural assets as eligible for the tax
credit under subdivision 2 subject to the allocation limits in paragraph (c);
(3) provide necessary and reasonable assistance and support to beginning farmers for
qualification and participation in financial management programs approved by the authority;
(4) refer beginning farmers to agencies and organizations that may provide additional
pertinent information and assistance; and
(5) notwithstanding section 41B.211, the Rural Finance Authority must share information
with the commissioner of revenue to the extent necessary to administer provisions under
this subdivision and section 290.06, subdivisions 37 and 38. The Rural Finance Authority
must annually notify the commissioner of revenue of approval and certification or
recertification of beginning farmers and owners of agricultural assets under this section.
For credits under subdivision 2, the notification must include the amount of credit approved
by the authority and stated on the credit certificate.
(b) The certification of a beginning farmer or an owner of agricultural assets under this
section is valid for the year of the certification and the two following years, after which
time the beginning farmer or owner of agricultural assets must apply to the authority for
recertification.
(c) For credits for owners of agricultural assets allowed under subdivision 2, the authority
must not allocate more than deleted text begin $6,500,000 for taxable years beginning after December 31,
2022, and before January 1, 2024, anddeleted text end $4,000,000 deleted text begin fordeleted text end new text begin each new text end taxable deleted text begin years beginning after
December 31, 2023deleted text end new text begin yearnew text end . The authority must allocate credits on a first-come, first-served
basis beginning on January 1 of each year, except that recertifications for the second and
third years of credits under subdivision 2, paragraph (a), clauses (1) and (2), have first
priority. deleted text begin Any amount authorized but not allocated for taxable years ending before January
1, 2023, is canceled and is not allocated for future taxable years. For taxable years beginning
after December 31, 2022,deleted text end Any amount authorized but not allocated in any taxable year does
not cancel and is added to the allocation for the next taxable year. For each taxable year,
50 percent of newly allocated credits must be allocated to emerging farmers. Any portion
of a taxable year's newly allocated credits that is reserved for emerging farmers that is not
allocated by deleted text begin September 30deleted text end new text begin May 31new text end of the taxable year is available for allocation to other
credit allocations beginning on deleted text begin Octoberdeleted text end new text begin Junenew text end 1.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2024.
new text end
Sec. 4.
Minnesota Statutes 2024, section 270C.445, subdivision 3, is amended to read:
Subd. 3.
Standards of conduct.
No tax preparer shall:
(1) without good cause fail to promptly, diligently, and without unreasonable delay
complete a client's return;
(2) obtain the signature of a client to a return or authorizing document that contains
blank spaces to be filled in after it has been signed;
(3) fail to sign a client's return when compensation for services rendered has been made;
(4) fail to provide on a client's return the preparer tax identification number when required
under section 6109(a)(4) of the Internal Revenue Code or section 289A.60, subdivision 28;
(5) fail or refuse to give a client a copy of any document requiring the client's signature
within a reasonable time after the client signs the document;
(6) fail to retain for at least four years a copy of a client's returns;
(7) fail to maintain a confidential relationship with clients or former clients;
(8) fail to take commercially reasonable measures to safeguard a client's nonpublic
personal information;
(9) make, authorize, publish, disseminate, circulate, or cause to make, either directly or
indirectly, any false, deceptive, or misleading statement or representation relating to or in
connection with the offering or provision of tax preparation services;
(10) require a client to enter into a loan arrangement in order to complete a client's return;
(11) claim credits or deductions on a client's return for which the tax preparer knows or
reasonably should know the client does not qualify;
(12) report a household income on a client's claim filed under chapter 290A that the tax
preparer knows or reasonably should know is not accurate;
(13) engage in any conduct that is subject to a penalty under section 289A.60, subdivision
13, 20, 20a, 26, or 28;
(14) whether or not acting as a taxpayer representative, fail to conform to the standards
of conduct required by Minnesota Rules, part 8052.0300, subpart 4;
(15) whether or not acting as a taxpayer representative, engage in any conduct that is
incompetent conduct under Minnesota Rules, part 8052.0300, subpart 5;
(16) whether or not acting as a taxpayer representative, engage in any conduct that is
disreputable conduct under Minnesota Rules, part 8052.0300, subpart 6;
(17) charge, offer to accept, or accept a fee based upon a percentage of an anticipated
refund for tax preparation services;
(18) under any circumstances, withhold or fail to return to a client a document provided
by the client for use in preparing the client's return;
(19) take control or ownership of a client's refund by any means, including:
(i) directly or indirectly endorsing or otherwise negotiating a check or other refund
instrument, including an electronic version of a check;
(ii) directing an electronic or direct deposit of the refund into an account unless the
client's name is on the account; and
(iii) establishing or using an account in the preparer's name to receive a client's refund
through a direct deposit or any other instrument unless the client's name is also on the
accountdeleted text begin , except that a taxpayer may assign the portion of a refund representing the Minnesota
education credit available under section 290.0674 to a bank account without the client's
name, as provided under section 290.0679deleted text end ;
(20) fail to act in the best interests of the client;
(21) fail to safeguard and account for any money handled for the client;
(22) fail to disclose all material facts of which the preparer has knowledge which might
reasonably affect the client's rights and interests;
(23) violate any provision of section 332.37;
(24) include any of the following in any document provided or signed in connection
with the provision of tax preparation services:
(i) a hold harmless clause;
(ii) a confession of judgment or a power of attorney to confess judgment against the
client or appear as the client in any judicial proceeding;
(iii) a waiver of the right to a jury trial, if applicable, in any action brought by or against
a debtor;
(iv) an assignment of or an order for payment of wages or other compensation for
services;
(v) a provision in which the client agrees not to assert any claim or defense otherwise
available;
(vi) a waiver of any provision of this section or a release of any obligation required to
be performed on the part of the tax preparer; or
(vii) a waiver of the right to injunctive, declaratory, or other equitable relief or relief on
a class basis; or
(25) if making, providing, or facilitating a refund anticipation loan, fail to provide all
disclosures required by the federal Truth in Lending Act, United States Code, title 15, in a
form that may be retained by the client.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2025.
new text end
Sec. 5.
new text begin
[289A.081] DIRECT FREE FILING OF INDIVIDUAL RETURNS.
new text end
new text begin Subdivision 1. new text end
new text begin Department of Revenue to establish direct file system. new text end
new text begin
(a) The
commissioner must establish an electronic filing system through which taxpayers may
directly file an electronic individual income tax return free of charge. The commissioner
may contract with a software vendor to develop the filing system required under this section,
but the vendor must not offer paid tax preparation services for Minnesota individual income
taxpayers for tax years that the system is active, and the filing system must be made available
on the Department of Revenue website.
new text end
new text begin
(b) To the extent feasible, the commissioner must coordinate the state filing system
under this section with any direct file systems established for filing federal tax returns.
new text end
new text begin
(c) The commissioner must make the system required under this section available for
taxable years beginning after December 31, 2025, and at a minimum must allow taxpayers
to claim:
new text end
new text begin
(1) the marriage penalty credit under section 290.0675;
new text end
new text begin
(2) the education credit under section 290.0674;
new text end
new text begin
(3) the child and working family credits under sections 290.0661 and 290.0671;
new text end
new text begin
(4) the dependent care credit under section 290.067;
new text end
new text begin
(5) the student loan credit under section 290.0682; and
new text end
new text begin
(6) the renter's credit under section 290.0693.
new text end
new text begin Subd. 2. new text end
new text begin Transfer; fiscal year 2028. new text end
new text begin
(a) $2,397,000 in fiscal year 2028 is transferred
from the general fund to the tax filing modernization account in the special revenue fund
for the free filing system under this section. This is a onetime transfer and the amount to be
transferred in fiscal year 2029 and later is $0.
new text end
new text begin
(b) This subdivision expires July 1, 2028.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 6.
Minnesota Statutes 2024, section 290.0132, is amended by adding a subdivision
to read:
new text begin Subd. 36. new text end
new text begin Discharges of indebtedness; coerced debt. new text end
new text begin
The amount of discharge of
indebtedness awarded to a claimant under section 332.74, subdivision 3, is a subtraction.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2024.
new text end
Sec. 7.
Minnesota Statutes 2024, section 290.0132, is amended by adding a subdivision
to read:
new text begin Subd. 37. new text end
new text begin Student loan education assistance paid by critical access dental clinics. new text end
new text begin
(a)
The amount of student loan educational assistance payments that is received from a critical
access dental clinic is a subtraction.
new text end
new text begin
(b) For the purposes of this subdivision, the following terms have the meanings given.
new text end
new text begin
(c) "Critical access dental clinic" means a dentist or dental clinic that is designated as a
critical access dental provider under section 256B.76, subdivision 4.
new text end
new text begin
(d) "Student loan educational assistance payments" means payments by an employer on
the education loan of an employee that are included in the definition of educational assistance
under section 127(c)(1)(B) of the Internal Revenue Code, disregarding the expiration of
that clause. Student loan educational assistance payments are limited to amounts not excluded
from gross income under section 127(a)(2) of the Internal Revenue Code.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2025.
new text end
Sec. 8.
Minnesota Statutes 2024, section 290.06, subdivision 23, is amended to read:
Subd. 23.
Refund of contributions to political parties and candidates.
(a) A taxpayer
may claim a refund equal to the amount of the taxpayer's contributions made in the calendar
year to candidates and to a political party. The maximumnew text begin totalnew text end refund new text begin per calendar year new text end for
an individual must not exceed $75 and for a married couple, filing jointly, must not exceed
$150. new text begin The commissioner must not issue a refund, whether in one payment or in aggregate,
to a taxpayer that exceeds the maximum refund amounts specified in this subdivision. new text end A
refund of a contribution is allowed only if the taxpayer filesnew text begin :
new text end
new text begin (1)new text end a form required by the commissioner and attaches to the form deleted text begin a copy ofdeleted text end an official
refund receipt deleted text begin formdeleted text end issued by the candidate or party and signed by the candidate, the treasurer
of the candidate's principal campaign committee, or the chair or treasurer of the party unit,
after the contribution was receiveddeleted text begin . The receipt forms must be numbered, and the data on
the receipt that are not public must be made available to the campaign finance and public
disclosure board upon its requestdeleted text end new text begin ; or
new text end
new text begin (2) a claim using the electronic filing system authorized in paragraph (i)new text end .
new text begin
The form or claim must include one or more unique receipt validation numbers from receipts
issued pursuant to section 10A.322, subdivision 4.
new text end
new text begin (b)new text end A claim must be filed with the commissioner no sooner than January 1 of the calendar
year in which the contribution was made and no later than April 15 of the calendar year
following the calendar year in which the contribution was made. deleted text begin A taxpayer may file only
one claim per calendar year.deleted text end new text begin A claim must be for a minimum of $10.new text end Amounts paid by the
commissioner after June 15 of the calendar year following the calendar year in which the
contribution was made must include interest at the rate specified in section 270C.405.
deleted text begin (b)deleted text end new text begin (c)new text end No refund is allowed under this subdivision for a contribution to a candidate
unless the candidate:
(1) has signed an agreement to limit campaign expenditures as provided in section
10A.322;
(2) is seeking an office for which voluntary spending limits are specified in section
10A.25; and
(3) has designated a principal campaign committee.
This subdivision does not limit the campaign expenditures of a candidate who does not
sign an agreement but accepts a contribution for which the contributor improperly claims
a refund.
deleted text begin (c)deleted text end new text begin (d)new text end For purposes of this subdivision, "political party" means a major political party
as defined in section 200.02, subdivision 7, or a minor political party qualifying for inclusion
on the income tax or property tax refund form under section 10A.31, subdivision 3a.
A "major party" or "minor party" includes the aggregate of that party's organization
within each house of the legislature, the state party organization, and the party organization
within congressional districts, counties, legislative districts, municipalities, and precincts.
"Candidate" means a candidate as defined in section 10A.01, subdivision 10, except a
candidate for judicial office.
"Contribution" means a gift of money.
deleted text begin (d)deleted text end new text begin (e)new text end The commissioner shall make copies of the form available to the public and
candidates upon request.
deleted text begin (e)deleted text end new text begin (f)new text end The following data collected or maintained by the commissioner under this
subdivision are private: the identities of individuals claiming a refund, the identities of
candidates to whom those individuals have made contributions, and the amount of each
contribution.
deleted text begin (f)deleted text end new text begin (g)new text end The commissioner shall report to the campaign finance and public disclosure
board by each August 1 a summary showing the total number and aggregate amount of
political contribution refunds made on behalf of each candidate and each political party.
These data are public.
deleted text begin (g)deleted text end new text begin (h)new text end The amount necessary to pay claims for the refund provided in this section is
appropriated from the general fund to the commissioner of revenue.
deleted text begin (h) For a taxpayer who files a claim for refund via the Internet or other electronic means,
the commissioner may accept the number on the official receipt as documentation that a
contribution was made rather than the actual receipt as required by paragraph (a)deleted text end new text begin (i) The
commissioner must establish an electronic filing system by which refunds are claimednew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for contributions made after December
31, 2026.
new text end
Sec. 9.
Minnesota Statutes 2024, section 290.0661, is amended by adding a subdivision
to read:
new text begin Subd. 3a. new text end
new text begin Baby bonus. new text end
new text begin
(a) The credit amount under subdivision 3 is increased by $100
for each qualifying child of the taxpayer that was born during the taxable year.
new text end
new text begin
(b) The commissioner must disregard credit amounts under this subdivision for the
purposes of determining a taxpayer's minimum credit amount under subdivision 9.
new text end
new text begin
(c) The commissioner may establish a process to allow a taxpayer to request an advance
payment of the additional amount under this subdivision.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2027.
new text end
Sec. 10.
Minnesota Statutes 2024, section 290.0695, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
(a) For deleted text begin purposedeleted text end new text begin purposesnew text end of this section, the following terms
have the meanings given them.
new text begin
(b) "Credit certificate" means the certificate issued by the commissioner of transportation
under subdivision 3, paragraph (a).
new text end
deleted text begin (b)deleted text end new text begin (c)new text end "Eligible taxpayer" means any railroad that is classified by the United States
Surface Transportation Board as a Class II or Class III railroad.
deleted text begin (c)deleted text end new text begin (d)new text end "Eligible transferee" means any taxpayer subject to tax under this chapter or
chapter 297I.
deleted text begin (d)deleted text end new text begin (e)new text end "Qualified railroad reconstruction or replacement expenditures" means gross
expenditures in the taxable year for maintenance, reconstruction, or replacement of railroad
infrastructure, including track, roadbed, bridges, industrial leads and sidings, and track-related
structures owned or leased by a Class II or Class III railroad in Minnesota as of January 1,
2021. Qualified railroad reconstruction or replacement expenditures also includes new
construction of industrial leads, switches, spurs and sidings and extensions of existing sidings
in Minnesota by a Class II or Class III railroad.
new text begin
(f) "Transfer credit certificate" means the certificate issued to a transferee by the
commissioner under subdivision 3, paragraph (d).
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2024.
new text end
Sec. 11.
Minnesota Statutes 2024, section 290.0695, subdivision 3, is amended to read:
Subd. 3.
deleted text begin Transferabilitydeleted text end new text begin Credit certificatesnew text end ; written agreement required; deleted text begin credit
certificatedeleted text end new text begin transferabilitynew text end .
(a) new text begin To qualify for a credit under this section, an eligible taxpayer
must apply to the commissioner of transportation for a credit certificate. The application
for the credit certificate must be in the form and manner prescribed by the commissioner
of transportation, in consultation with the commissioner. If the application is approved, the
commissioner of transportation must issue the credit certificate to the eligible taxpayer
within 30 days of receipt of the application. The credit certificate must state the number of
miles of qualified railroad reconstruction or replacement expenditures in the taxable year
and the total amount of credit calculated under subdivision 2, paragraph (a). The
commissioner of transportation must provide a copy of the credit certificate to the
commissioner of revenue. The commissioner of transportation must not issue more than
one credit certificate to an eligible taxpayer in a taxable year.
new text end
new text begin (b) By written agreement, new text end an eligible taxpayer may transfer the credit allowed under
this section deleted text begin by written agreementdeleted text end to an eligible transfereedeleted text begin . The amount of the transferred
credit is limited to the unused, remaining portion of the credit.deleted text end new text begin as follows:
new text end
new text begin
(1) any amount of the credit allowed that is stated in the credit certificate before any of
the credit is claimed; or
new text end
new text begin
(2) the entire amount of the credit carryover in each of the five succeeding taxable years.
new text end
deleted text begin (b)deleted text end new text begin (c)new text end The eligible taxpayer and the eligible transferee must jointly file a copy of the
written transfer agreement with the commissioner within 30 days of the transfer. The written
agreement must contain the name, address, and taxpayer identification number of the parties
to the transfer; the taxable year the eligible taxpayer incurred the qualified expenditures;
the amount of credit being transferred; and the taxable year or years for which the transferred
credit may be claimed.
deleted text begin (c)deleted text end new text begin (d)new text end The commissioner must issue anew text begin transfernew text end credit certificate to the transferee within
30 days of the joint filing of a copy of the written transfer agreement with the commissioner.
deleted text begin
(d) In the case of an audit or assessment, the transferee is liable for repayment of credits
claimed in excess of the allowed amount.
deleted text end
new text begin
(e) An eligible taxpayer must not transfer a credit to an eligible transferee more than
once in a taxable year.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2024.
new text end
Sec. 12.
Minnesota Statutes 2024, section 290A.03, subdivision 3, is amended to read:
Subd. 3.
Income.
(a) "Income" means the sum of the following:
(1) federal adjusted gross income as defined in the Internal Revenue Code; and
(2) the sum of the following amounts to the extent not included in clause (1):
(i) all nontaxable income;
(ii) the amount of a passive activity loss that is not disallowed as a result of section 469,
paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss
carryover allowed under section 469(b) of the Internal Revenue Code;
(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a
solvent individual excluded from gross income under section 108(g) of the Internal Revenue
Code;
(iv) cash public assistance and relief;
(v) any pension or annuity (including railroad retirement benefits, all payments received
under the federal Social Security Act, Supplemental Security Income, and veterans benefits),
which was not exclusively funded by the claimant or spouse, or which was funded exclusively
by the claimant or spouse and which funding payments were excluded from federal adjusted
gross income in the years when the payments were made;
(vi) interest received from the federal or a state government or any instrumentality or
political subdivision thereof;
(vii) workers' compensation;
(viii) nontaxable strike benefits;
(ix) the gross amounts of payments received in the nature of disability income or sick
pay as a result of accident, sickness, or other disability, whether funded through insurance
or otherwise;
(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
1986, as amended through December 31, 1995;
(xi) contributions made by the claimant to an individual retirement account, including
a qualified voluntary employee contribution; simplified employee pension plan;
self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of
the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal
Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for
the claimant and spouse;
(xii) to the extent not included in federal adjusted gross income, distributions received
by the claimant or spouse from a traditional or Roth style retirement account or plan;
(xiii) nontaxable scholarship or fellowship grants;
(xiv) alimony received to the extent not included in the recipient's income;
(xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue
Code;
(xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue
Code; and
(xvii) the amount deducted for certain expenses of elementary and secondary school
teachers under section 62(a)(2)(D) of the Internal Revenue Code.
In the case of an individual who files an income tax return on a fiscal year basis, the
term "federal adjusted gross income" shall mean federal adjusted gross income reflected in
the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced
by the amount of a net operating loss carryback or carryforward or a capital loss carryback
or carryforward allowed for the year.
(b) "Income" does not include:
(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
(2) amounts of any pension or annuity which was exclusively funded by the claimant
or spouse and which funding payments were not excluded from federal adjusted gross
income in the years when the payments were made;
(3) to the extent included in federal adjusted gross income, amounts contributed by the
claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed
the retirement base amount reduced by the amount of contributions excluded from federal
adjusted gross income, but not less than zero;
(4) surplus food or other relief in kind supplied by a governmental agency;
(5) relief granted under this chapter;
(6) child support payments received under a temporary or final decree of dissolution or
legal separation;
(7) restitution payments received by eligible individuals and excludable interest as
defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001,
Public Law 107-16;
(8) alimony paid; deleted text begin or
deleted text end
(9) veterans disability compensation paid under title 38 of the United States Codenew text begin ; or
new text end
new text begin (10) to the extent included in federal adjusted gross income, the amount of discharge of
indebtedness awarded to the claimant under section 332.74, subdivision 3new text end .
(c) The sum of the following amounts may be subtracted from income:
(1) for the claimant's first dependent, the exemption amount multiplied by 1.4;
(2) for the claimant's second dependent, the exemption amount multiplied by 1.3;
(3) for the claimant's third dependent, the exemption amount multiplied by 1.2;
(4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
(5) for the claimant's fifth dependent, the exemption amount; and
(6) if the claimant or claimant's spouse had a disability or attained the age of 65 on or
before December 31 of the year for which the taxes were levied, the exemption amount.
(d) For purposes of this subdivision, the following terms have the meanings given:
(1) "exemption amount" means the exemption amount under section 290.0121,
subdivision 1, paragraph (b), for the taxable year for which the income is reported;
(2) "retirement base amount" means the deductible amount for the taxable year for the
claimant and spouse under section 219(b)(5)(A) of the Internal Revenue Code, adjusted for
inflation as provided in section 219(b)(5)(C) of the Internal Revenue Code, without regard
to whether the claimant or spouse claimed a deduction; and
(3) "traditional or Roth style retirement account or plan" means retirement plans under
sections 401, 403, 408, 408A, and 457 of the Internal Revenue Code.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with property taxes payable
in 2026.
new text end
Sec. 13.
Minnesota Statutes 2024, section 462A.39, subdivision 5, is amended to read:
Subd. 5.
Allocation.
The amount of a grant or deferred loans may not exceed 50 percent
of the rental housing development project cost. The commissioner shall not award a grant
or deferred loans to an eligible project area without certification by the eligible project area
that the amount of the grant or deferred loans shall be matched by a local unit of government,
business, nonprofit organization, or federally recognized Tribe, with $1 for every $2 provided
in grant or deferred loans funds.new text begin If an eligible project area is selected for an award of a grant
or loan under section 462A.40 and the award is funded by contributions to the Minnesota
housing tax credit account that are intended for a specific project in the eligible project area,
the amount of the award may count toward the matching requirement of this subdivision.
new text end
Sec. 14.
Minnesota Statutes 2024, section 462A.40, subdivision 2, is amended to read:
Subd. 2.
Use of funds; grant and loan program.
(a) The agency may award grants and
loans to be used new text begin for workforce housing and new text end for multifamily and single family developments
for persons and families of low and moderate income. Allowable use of the funds include:
gap financing, as defined in section 462A.33, subdivision 1; new construction; acquisition;
rehabilitation; demolition or removal of existing structures; construction financing; permanent
financing; interest rate reduction;new text begin services enumerated in section 462A.37, subdivision 1,
paragraph (k), in existing supportive housing as defined in that paragraph;new text end and refinancing.
(b) The agency may give preference for grants and loans to comparable proposals that
include regulatory changes or waivers that result in identifiable cost avoidance or cost
reductions, including but not limited to increased density, flexibility in site development
standards, or zoning code requirements.
Sec. 15.
Minnesota Statutes 2024, section 462A.40, subdivision 3, is amended to read:
Subd. 3.
Eligible recipients; definitions; restrictions; use of funds.
(a) The agency
may award a grant or a loan to any recipient that qualifies under subdivision 2. The agency
must not award a grant or a loan to a disqualified individual or disqualified business.
(b) For the purposes of this subdivision disqualified individual means:
(1) an individual who or an individual whose immediate family member made a
contribution to the account in the current or prior taxable year and received a credit certificate;
(2) an individual who or an individual whose immediate family member owns the housing
for which the grant or loan will be used;
(3) an individual who meets the following criteria:
(i) the individual is an officer or principal of a business entity; and
(ii) that business entity made a contribution to the account in the current or previous
taxable year and received a credit certificate; or
(4) an individual who meets the following criteria:
(i) the individual directly owns, controls, or holds the power to vote 20 percent or more
of the outstanding securities of a business entity; and
(ii) that business entity made a contribution to the account in the current or previous
taxable year and received a credit certificate.
(c) For the purposes of this subdivision disqualified business means a business entity
that:
(1) made a contribution to the account in the current or prior taxable year and received
a credit certificate;
(2) has an officer or principal who is an individual who made a contribution to the
account in the current or previous taxable year and received a credit certificate; or
(3) meets the following criteria:
(i) the business entity is directly owned, controlled, or is subject to the power to vote 20
percent or more of the outstanding securities by an individual or business entity; and
(ii) that controlling individual or business entity made a contribution to the account in
the current or previous taxable year and received a credit certificate.
(d) For purposes of this subdivision, "immediate family" means the taxpayer's spouse,
parent or parent's spouse, sibling or sibling's spouse, or child or child's spouse. For a married
couple filing a joint return, the limitations in this subdivision apply collectively to the
taxpayer and spouse.
new text begin
(e) For purposes of this subdivision, "officer or principal" excludes an individual serving
as a volunteer board member of a nonprofit organization governed by chapter 317A.
new text end
deleted text begin (e)deleted text end new text begin (f)new text end Before applying for a grant or loan, all recipients must sign a disclosure that the
disqualifications under this subdivision do not apply. The Minnesota Housing Finance
Agency must prescribe the form of the disclosure. The Minnesota Housing Finance Agency
may rely on the disclosure to determine the eligibility of recipients under paragraph (a).
deleted text begin (f)deleted text end new text begin (g)new text end The agency may award grants or loans to a city as defined in section 462A.03,
subdivision 21; a federally recognized American Indian tribe or subdivision located in
Minnesota; a tribal housing corporation; a private developer; a nonprofit organization; a
housing and redevelopment authority under sections 469.001 to 469.047; a public housing
authority or agency authorized by law to exercise any of the powers granted by sections
469.001 to 469.047; or the owner of the housing. The provisions of subdivision 2, and
paragraphs (a) to deleted text begin (e)deleted text end new text begin (f)new text end and deleted text begin (g)deleted text end new text begin (h)new text end of this subdivision, regarding the use of funds and eligible
recipients apply to grants and loans awarded under this paragraph.
deleted text begin (g)deleted text end new text begin (h) new text end Eligible recipients must use the funds to serve households that meet the income
limits as provided in section 462A.33, subdivision 5. new text begin This requirement does not apply to a
project meeting the requirements of section 462A.39, subdivision 4, paragraph (a).
new text end
Sec. 16.
Laws 2023, chapter 64, article 15, section 24, is amended to read:
Sec. 24. TAX FILING MODERNIZATION.
Subdivision 1.
Account established; appropriation.
A tax filing modernization account
is established in the special revenue fund. All funds in the tax filing modernization account
are appropriated to the commissioner of revenue for the purposes specified in subdivision
3.
Subd. 2.
Transfer.
$5,000,000 in fiscal year 2024 is transferred to the tax filing
modernization account from the general fund. This is a onetime transfer.
Subd. 3.
Eligible uses.
deleted text begin (a)deleted text end The commissioner of revenue may use funds in the tax filing
modernization account deleted text begin to modernize the state process for filing individual income tax returns,
including:
deleted text end
deleted text begin
(1) updating and reviewing changes to individual income tax forms resulting from this
act;
deleted text end
deleted text begin
(2) coordinating the process for filing state individual income tax returns with free filing
options for the federal income tax; and
deleted text end
deleted text begin (3)deleted text end new text begin fornew text end development and implementation of state free filing options for the individual
income taxnew text begin , consistent with Minnesota Statutes, section 289A.081new text end .
deleted text begin
(b) Beginning July 1, 2026, the commissioner of revenue may use any unspent funds in
the tax filing modernization account to make taxpayer assistance grants to eligible
organizations qualifying under section 7526A(e)(2)(B) of the Internal Revenue Code.
deleted text end
Subd. 4.
Unspent funds.
Any unspent funds in the tax filing modernization account
cancel to the general fund on June 30, deleted text begin 2027deleted text end new text begin 2029new text end .
Sec. 17. new text begin CORRECTION OF ERRORS; CERTAIN RETIREMENT
CONTRIBUTIONS.
new text end
new text begin
An annuity contract provider that receives a contribution from an individual to an
individual retirement plan on an annuity contract no later than the time prescribed by law
under section 219(f)(3) of the Internal Revenue Code, must treat the contribution as having
been made on account of the preceding taxable year. This section applies only if the annuity
contract provider receives notification from the individual indicating the tax year designation
for the contribution within three years from the original due date for filing the return for
that taxable year.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for contributions made in
calendar year 2023 and designated to apply to the tax year 2022 contribution limitation.
new text end
Sec. 18. new text begin STIPEND PAYMENTS TO SEIU HEALTHCARE MINNESOTA & IOWA
BARGAINING UNIT MEMBERS.
new text end
new text begin
(a) The commissioner of human services shall issue stipend payments to collective
bargaining unit members as required by the labor agreement between the state of Minnesota
and the Service Employees International Union (SEIU) Healthcare Minnesota & Iowa.
new text end
new text begin
(b) The definitions in Minnesota Statutes, section 290.01, apply to this section.
new text end
new text begin
(c) For the purposes of this section, "subtraction" has the meaning given in Minnesota
Statutes, section 290.0132, subdivision 1, and the rules in that subdivision apply to this
section.
new text end
new text begin
(d) The amount of stipend payments received by SEIU Healthcare Minnesota & Iowa
collective bargaining unit members under this section is a subtraction.
new text end
new text begin
(e) The amount of stipend payments received by SEIU Healthcare Minnesota & Iowa
collective bargaining unit members under this section is excluded from income as defined
in Minnesota Statutes, sections 290.0693, subdivision 1, paragraph (i), and 290A.03,
subdivision 3.
new text end
new text begin
(f) Notwithstanding any law to the contrary, stipend payments under this section must
not be considered income, assets, or personal property for purposes of determining or
recertifying eligibility for:
new text end
new text begin
(1) child care assistance programs under Minnesota Statutes, chapter 142E;
new text end
new text begin
(2) general assistance, Minnesota supplemental aid, and food support under Minnesota
Statutes, chapter 256D;
new text end
new text begin
(3) housing support under Minnesota Statutes, chapter 256I;
new text end
new text begin
(4) the Minnesota family investment program under Minnesota Statutes, chapter 142G;
and
new text end
new text begin
(5) economic assistance programs under Minnesota Statutes, chapter 256P.
new text end
new text begin
(g) The commissioner of human services must not consider stipend payments under this
section as income or assets under Minnesota Statutes, section 256B.056, subdivision 1a,
paragraph (a); 3; or 3c, or for persons with eligibility determined under Minnesota Statutes,
section 256B.057, subdivision 3, 3a, or 3b.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 19. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2024, sections 13.4967, subdivision 2a; and 290.0679,
new text end
new text begin
are repealed.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assignments after December 31, 2025.
new text end
ARTICLE 2
SALES AND USE TAXES; EXCISE TAXES; LOCAL SALES TAXES
Section 1.
Minnesota Statutes 2024, section 270C.15, is amended to read:
270C.15 REVENUE DEPARTMENT SERVICE AND RECOVERY SPECIAL
REVENUE FUND.
new text begin Subdivision 1. new text end
new text begin Fund established; money appropriated. new text end
A Revenue Department service
and recovery special revenue fund is created for the purpose of recovering the costs of
furnishing government data and related services or products, as well as recovering costs
associated with collecting local taxes on sales and the retail delivery fee established under
chapter 168E. All money collected under this section is deposited in the Revenue Department
service and recovery special revenue fund. Money in the fund is appropriated to the
commissioner to reimburse the department for the costs incurred in administering the tax
law or providing the data, service, or product. Any money paid to the department as a
criminal fine for a violation of state revenue law that is designated by the court to fund
enforcement of state revenue law is appropriated to this fund.
new text begin Subd. 2. new text end
new text begin Special rules for fiscal years 2028 and 2029. new text end
new text begin
(a) Of the amount in the fund
in subdivision 1 that represents costs associated with collecting local taxes on sales,
$3,000,000 in fiscal year 2028 and $3,000,000 in fiscal year 2029 are transferred to the
general fund. These are onetime transfers and the amount to be transferred in fiscal year
2030 and later is $0.
new text end
new text begin
(b) This subdivision expires July 1, 2029.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2024, section 289A.20, subdivision 4, is amended to read:
Subd. 4.
Sales and use tax.
(a) The taxes imposed by chapter 297A are due and payable
to the commissioner monthly on or before the 20th day of the month following the month
in which the taxable event occurred, or following another reporting period as the
commissioner prescribes or as allowed under section 289A.18, subdivision 4, paragraph (f)
or (g), except that use taxes due on an annual use tax return as provided under section
289A.11, subdivision 1, are payable by April 15 following the close of the calendar year.
deleted text begin
(b) A vendor having a liability of $250,000 or more during a fiscal year ending June 30,
except a vendor of construction materials as defined in paragraph (e), must remit the June
liability for the next year in the following manner:
deleted text end
deleted text begin
(1) Two business days before June 30 of calendar year 2020 and 2021, the vendor must
remit 87.5 percent of the estimated June liability to the commissioner. Two business days
before June 30 of calendar year 2022 and thereafter, the vendor must remit 84.5 percent, or
a reduced percentage as certified by the commissioner under section 16A.152, subdivision
2, paragraph (a), clause (6), of the estimated June liability to the commissioner.
deleted text end
deleted text begin
(2) On or before August 20 of the year, the vendor must pay any additional amount of
tax not remitted in June.
deleted text end
deleted text begin (c)deleted text end new text begin (b)new text end A vendor having a liability of:
(1) $10,000 or more, but less than $250,000, during a fiscal year must remit by electronic
means allnew text begin netnew text end liabilities on returns due for periods beginning in all subsequent calendar years
on or before the 20th day of the month following the month in which the taxable event
occurred, or on or before the 20th day of the month following the month in which the sale
is reported under section 289A.18, subdivision 4; or
(2) $250,000 or more during a fiscal year must remit by electronic means all new text begin net new text end liabilities
in the manner provided in paragraph (a) on returns due for periods beginning in the
subsequent calendar yeardeleted text begin , except that a vendor subject to the remittance requirements of
paragraph (b) must remit the percentage of the estimated June liability, as provided in
paragraph (b), clause (1), which is due two business days before June 30. The remaining
amount of the June liability is due on August 20deleted text end .
deleted text begin (d)deleted text end new text begin (c)new text end Notwithstanding paragraph (b) deleted text begin or (c)deleted text end , a person prohibited by the person's religious
beliefs from paying electronically shall be allowed to remit the payment by mail. The filer
must notify the commissioner of revenue of the intent to pay by mail before doing so on a
form prescribed by the commissioner. No extra fee may be charged to a person making
payment by mail under this paragraph. The payment must be postmarked at least two business
days before the due date for making the payment in order to be considered paid on a timely
basis.
deleted text begin
(e) For the purposes of paragraph (b), "vendor of construction materials" means a retailer
that sells any of the following construction materials, if 50 percent or more of the retailer's
sales revenue for the fiscal year ending June 30 is from the sale of those materials:
deleted text end
deleted text begin
(1) lumber, veneer, plywood, wood siding, wood roofing;
deleted text end
deleted text begin
(2) millwork, including wood trim, wood doors, wood windows, wood flooring; or
deleted text end
deleted text begin
(3) concrete, cement, and masonry.
deleted text end
deleted text begin
(f) Paragraph (b) expires after the percentage of estimated payment is reduced to zero
in accordance with section 16A.152, subdivision 2, paragraph (a), clause (6).
deleted text end
new text begin
(d) For purposes of this subdivision, "net liability" means liability minus the amount of
vendor allowance authorized under section 297A.816.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2025.
new text end
Sec. 3.
Minnesota Statutes 2024, section 297A.68, subdivision 3, is amended to read:
Subd. 3.
Materials used in providing certain taxable services.
(a) Materials stored,
used, or consumed in providing a taxable service listed in section 297A.61, subdivision 3,
paragraph (g), clause (6), intended to be sold ultimately at retail are exempt.
(b) This exemption includes, but is not limited to:
(1) chemicals, lubricants, packaging materials, seeds, trees, fertilizers, and herbicides,
if these items are used or consumed in providing the taxable service;
(2) chemicals used to treat waste generated as a result of providing the taxable service;
(3) accessory tools, equipment, and other items that are separate detachable units used
in providing the service and that have an ordinary useful life of less than 12 months; and
(4) fuel, electricity, gas, and steam used or consumed in the production process, except
that electricity, gas, or steam used for space heating, cooling, or lighting is exempt if (i) it
is in excess of average climate control or lighting, and (ii) it is necessary to produce that
particular service.
(c) This exemption does not include machinery, equipment, implements, tools,
accessories, appliances, contrivances, furniture, and fixtures used in providing the taxable
service.
new text begin
(d) This exemption does not apply to any accessory tools, equipment, and other items
that are separate detachable units that have an ordinary useful life of less than 12 months
that are used in providing landscaping, gardening, or lawn care services.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2025.
new text end
Sec. 4.
Minnesota Statutes 2024, section 297A.68, subdivision 40, is amended to read:
Subd. 40.
Land clearing.
Tree, bush, shrub, and stump removal are exempt when sold
to contractors or subcontractors as part of a land clearing contract. For purposes of this
subdivision, "land clearing contract" means a contract for the removal of trees, bushes, and
shrubs, including the removal of roots and stumps, to developnew text begin :
new text end
new text begin (1)new text end a sitedeleted text begin . This exemption does not apply to land clearing ofdeleted text end new text begin ; or
new text end
new text begin (2) new text end a portion of a site to allow for remodeling, improvement, or expansion of an existing
structure.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2025.
new text end
Sec. 5.
Minnesota Statutes 2024, section 297A.77, subdivision 3, is amended to read:
Subd. 3.
Tax must be remitted.
The tax collected by a retailer under this sectionnew text begin , except
for the amount allowed to be retained by a retailer under section 297A.816,new text end must be remitted
to the commissioner as provided in chapter 289A and this chapter.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2025.
new text end
Sec. 6.
new text begin
[297A.816] VENDOR ALLOWANCE.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
For the purposes of this section:
new text end
new text begin
(1) "eligible taxes" means the total amount of sales taxes collected by a retailer at all
locations in Minnesota, excluding the portion of constitutionally required sales taxes imposed
under section 297A.62, subdivision 1a;
new text end
new text begin
(2) "qualifying retailer" means a retailer with sales tax liability in the previous fiscal
year that is:
new text end
new text begin
(i) not less than $20,000; and
new text end
new text begin
(ii) not more than $250,000; and
new text end
new text begin
(3) "reporting period" means the period applicable to the retailer as determined under
section 289A.18, subdivision 4.
new text end
new text begin Subd. 2. new text end
new text begin Eligibility. new text end
new text begin
A qualifying retailer may retain a portion of sales tax collected as
a vendor allowance in compensation for the costs of collecting and administering the tax
under this chapter. This section applies only if the tax minus the vendor allowance is both
reported and remitted to the commissioner in a timely manner as required under chapter
289A.
new text end
new text begin Subd. 3. new text end
new text begin Tax not eligible for allowance. new text end
new text begin
Use taxes paid by the retailer on the retailer's
own purchases are not included in calculating the vendor allowance under this section.
new text end
new text begin Subd. 4. new text end
new text begin Calculation of allowance. new text end
new text begin
(a) For sales and purchases made after June 30,
2025, and before July 1, 2027, a qualifying retailer's vendor allowance equals .254 percent
of eligible taxes collected during the reporting period.
new text end
new text begin
(b) For sales and purchases made after June 30, 2027, a qualifying retailer's vendor
allowance equals .159 percent of eligible taxes collected during the reporting period.
new text end
new text begin Subd. 5. new text end
new text begin Effect on collections. new text end
new text begin
To offset the amount retained under this section as a
vendor allowance, for each eligible tax, the amount deposited in the state treasury or remitted
to the appropriate jurisdiction is proportionally reduced based on the share of the vendor
allowance attributable to that tax.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2025.
new text end
Sec. 7.
Minnesota Statutes 2024, section 297A.99, subdivision 3a, is amended to read:
Subd. 3a.
Temporary moratorium.
(a) Notwithstanding subdivisions 1, 2, and 3, until
after deleted text begin May 31, 2025deleted text end new text begin June 30, 2026new text end , a political subdivision may not engage in any of the
following activities in connection with imposing a new local sales and use tax or modifying
an existing local sales and use tax:
(1) any activity described in subdivision 1, paragraph (d);
(2) adopt a resolution; or
(3) seek voter approval.
(b) Paragraph (a) does not apply to new local sales and use taxes or modifications to
existing local sales and use taxes authorized in May, 2023.
(c) This subdivision expires deleted text begin Junedeleted text end new text begin Julynew text end 1, deleted text begin 2025deleted text end new text begin 2026new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 8.
Minnesota Statutes 2024, section 297F.01, is amended by adding a subdivision to
read:
new text begin Subd. 13b. new text end
new text begin Premium cigar endorsee. new text end
new text begin
"Premium cigar endorsee" means a licensed
tobacco products distributor with a license endorsement under section 297F.03, subdivision
4a.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 9.
Minnesota Statutes 2024, section 297F.03, is amended by adding a subdivision to
read:
new text begin Subd. 4a. new text end
new text begin License endorsement for premium cigars to be sold outside this state. new text end
new text begin
(a)
A licensed tobacco products distributor may obtain a license endorsement allowing the
distributor to bring premium cigars into Minnesota exempt from tax imposed under this
chapter provided the requirements of section 297F.06, subdivision 6, are satisfied.
new text end
new text begin
(b) Each applicant or premium cigar endorsee must file with the commissioner a bond
issued by a corporate surety in good standing and authorized to do business in this state.
The bond must:
new text end
new text begin
(1) be in a form prescribed by the commissioner;
new text end
new text begin
(2) name the commissioner as the obligee;
new text end
new text begin
(3) be in the amount of $50,000, or a greater amount if the commissioner finds a greater
amount is needed to fully protect the state based on an applicant or premium cigar endorsee's
past or current tax liabilities or noncompliance with tax laws and regulations;
new text end
new text begin
(4) be payable to the commissioner for any delinquent tax of the premium cigar endorsee
under this chapter and any related fees, penalties, and accrued interest; and
new text end
new text begin
(5) cover the place of business within the state where tobacco products are received by
the applicant or premium cigar endorsee.
new text end
new text begin
(c) The applicant or premium cigar endorsee must designate and maintain an agent in
this state to accept service of process for all purposes of this section.
new text end
new text begin
(d) A separate license endorsement and separate bond is required for each tobacco
products distributor location where products that qualify for this exemption are stored.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 10.
Minnesota Statutes 2024, section 297F.04, is amended to read:
297F.04 LICENSE new text begin AND ENDORSEMENT new text end SUSPENSION, CANCELLATION,
NONRENEWAL, OR REVOCATION.
Subdivision 1.
Powers of commissioner.
The commissioner may revoke or suspend the
license or licensesnew text begin and any endorsement or endorsementsnew text end of any distributor or subjobber
for violation of this chapter, any other act applicable to the sale of cigarettes or tobacco
products, or any rule promulgated by the commissioner, in furtherance of this chapter.
Subd. 2.
Refusal to issue or renew; revocation.
The commissioner must not issue or
renew a licensenew text begin or endorsementnew text end under this chapter, and may revoke a licensenew text begin or endorsementnew text end
under this chapter, if the applicant or licensee:
(1) owes $500 or more in delinquent taxes as defined in section 270C.72, subdivision
2;
(2) after demand, has not filed tax returns required by the commissioner;
(3) had a cigarette or tobacco license revoked by the commissioner within the past two
years;
(4) had a sales and use tax permit revoked by the commissioner within the past two
years; deleted text begin or
deleted text end
(5) has been convicted of a crime involving cigarettes or tobacco products, including
but not limited to: selling stolen cigarettes or tobacco products, receiving stolen cigarettes
or tobacco products, or involvement in the smuggling of cigarettes or tobacco productsnew text begin ; or
new text end
new text begin (6) is a premium cigar endorsee and fails to comply with requirements under section
297F.06, subdivision 6new text end .
Subd. 2a.
Cancellation or nonrenewal.
The commissioner may cancel a licensenew text begin and
any endorsementnew text end or not renew a licensenew text begin and any endorsementnew text end if one of the following
conditions occurs:
(1) the license holder has not filed a cigarette or tobacco products tax return for at least
one year;
(2) the license holder has not reported any cigarette or tobacco products tax liability on
the license holder's returns for at least one year; or
(3) the license holder requests cancellation of the license.
Subd. 3.
Notice.
No licensenew text begin or endorsementnew text end may be revoked or suspended under this
chapter, and no application for a licensenew text begin or endorsementnew text end may be denied under this chapter,
except after 20 days' notice. In that notice the commissioner shall specify the allegations
against the licenseenew text begin , endorsee,new text end or applicant, and provide the licenseenew text begin , endorsee,new text end or applicant
the right to request in writing within 20 days a contested case hearing as provided in chapter
14.
If a written request for a hearing is received by the Department of Revenue within 20
days of the date of the initial notice, the hearing must be held within 45 days after referral
to the Office of Administrative Hearings, and no earlier than 20 days after notice to the
licenseenew text begin , endorsee,new text end or applicant of the hearing time and place. A licensenew text begin or endorsementnew text end is
revoked or suspended, and an application is denied, when the commissioner serves notice
of revocation, suspension, or denial after 20 days have passed following the initial notice
under this paragraph without a request for hearing being made, or if a hearing is held, after
the commissioner serves an order of revocation, suspension, or denial under section 14.62,
subdivision 1. All notices under this paragraph may be served personally or by mail.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 11.
Minnesota Statutes 2024, section 297F.06, is amended by adding a subdivision
to read:
new text begin Subd. 6. new text end
new text begin Premium cigars sold outside this state. new text end
new text begin
(a) Premium cigars brought into the
state or caused to be brought into the state by a premium cigar endorsee are exempt from
tax imposed under this chapter and are not contraband under section 297F.21 if:
new text end
new text begin
(1) the premium cigars are intended to be sold outside the state by the endorsee;
new text end
new text begin
(2) the premium cigars are delivered to the place of business covered by the endorsee's
tobacco products distributor license and remain in that location until sold outside this state;
new text end
new text begin
(3) the premium cigars are physically segregated from all other premium cigars, other
tobacco products, and cigarettes possessed by the endorsee and are not accessible to any
retail outlet consumers;
new text end
new text begin
(4) the endorsee has a bond as required under section 297F.03, subdivision 4a;
new text end
new text begin
(5) the endorsee maintains records of all deliveries and shipments associated with the
premium cigars; and
new text end
new text begin
(6) the endorsee files all forms and returns required under paragraph (c) and section
297F.09, subdivision 2.
new text end
new text begin
(b) If a premium cigar endorsee fails to comply with the requirements in paragraph (a),
the endorsee's premium cigars no longer qualify for the exemption under this subdivision
and become subject to tax imposed under section 297F.05, subdivision 3a.
new text end
new text begin
(c) All premium cigars sold outside this state and that otherwise qualify for the exemption
under this subdivision must be listed on a form prescribed by the commissioner showing
the date of each sale, the number of invoices, the name and address of each purchaser, and
the distributor's wholesale sales price unless permission is granted by the commissioner to
furnish the information in some other manner. The form must be filed with the commissioner
on or before the 18th day of each calendar month following the date on which the premium
cigar was sold outside this state.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for premium cigars brought into this
state after December 31, 2025.
new text end
Sec. 12.
Minnesota Statutes 2024, section 297F.09, subdivision 2, is amended to read:
Subd. 2.
Monthly return; tobacco products distributor.
new text begin (a) new text end On or before the 18th day
of each calendar month, a distributor with a place of business in this state shall file a return
with the commissioner showing the quantity and wholesale sales price of each tobacco
product:
(1) brought, or caused to be brought, into this state for sale; and
(2) made, manufactured, or fabricated in this state for sale in this state, during the
preceding calendar month.
new text begin
(b) Every premium cigar endorsee must identify on the return the premium cigars brought
into the state that qualify for the exemption under section 297F.06, subdivision 6. The return
must also show the quantity and wholesale sales price of each premium cigar.
new text end
new text begin (c) new text end Every licensed distributor outside this state shall in like manner file a return showing
the quantity and wholesale sales price of each tobacco product shipped or transported to
retailers in this state to be sold by those retailers, during the preceding calendar month.
Returns must be made in the form and manner prescribed by the commissioner and must
contain any other information required by the commissioner. The return must be accompanied
by a remittance for the full tax liability shown. For distributors subject to the accelerated
tax payment requirements in subdivision 10, the return for the May liability is due two
business days before June 30th of the year and the return for the June liability is due on or
before August 18th of the year.
new text begin
(d) If a premium cigar endorsee no longer intends to sell a premium cigar outside this
state as allowed under section 297F.06, subdivision 6, the premium cigar endorsee must
make a record of the decision, including the decision date, and, on or before the 18th day
of the following calendar month, file a return with the commissioner showing the quantity
and wholesale sales price of each premium cigar the endorsee no longer intends to sell
outside the state. Returns must be made in the form and manner prescribed by the
commissioner and must contain any other information required by the commissioner. The
return must be accompanied by a remittance for the full tax liability shown. For distributors
subject to the accelerated tax payment requirements in subdivision 10, the return for the
May liability is due two business days before June 30th of the year and the return for the
June liability is due on or before August 18th of the year.
new text end
new text begin
(e) If a premium cigar no longer qualifies for an exemption under section 297F.06,
subdivision 6, for any reason other than that listed in paragraph (d), the premium cigar
endorsee must, on or before the 18th day of the following calendar month, file a return with
the commissioner showing the quantity and wholesale sales price of each premium cigar
that no longer qualifies for the exemption. Returns must be made in the form and manner
prescribed by the commissioner and must contain any other information required by the
commissioner. The return must be accompanied by a remittance for the full tax liability
shown. For distributors subject to the accelerated tax payment requirements in subdivision
10, the return for the May liability is due two business days before June 30th of the year
and the return for the June liability is due on or before August 18th of the year.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for premium cigars brought into this
state after December 31, 2025.
new text end
Sec. 13.
Minnesota Statutes 2024, section 297F.09, subdivision 10, is amended to read:
Subd. 10.
Accelerated tax payment.
new text begin (a) new text end A cigarette distributor, tobacco products
distributor, retailer, or out-of-state retailer having a liability of $250,000 or more during a
fiscal year ending June 30deleted text begin ,deleted text end shall remit the June liability for the next year in the deleted text begin followingdeleted text end
mannerdeleted text begin :deleted text end new text begin provided in paragraphs (b) and (c).
new text end
deleted text begin (a) Two business days before June 30 of calendar year 2021, the distributor shall remit
the actual May liability and 87.5 percent of the estimated June liability to the commissioner
and file the return in the form and manner prescribed by the commissioner.deleted text end new text begin (b)new text end Two business
days before June 30 of calendar year deleted text begin 2022deleted text end new text begin 2025new text end and deleted text begin eachdeleted text end calendar year deleted text begin thereafterdeleted text end new text begin 2026new text end , the
distributor must remit the actual May liability and 84.5 percent of the estimated June liability
to the commissioner and file the return in the form and manner prescribed by the
commissioner.new text begin Two business days before June 30 of calendar year 2027 and thereafter, the
taxpayer shall remit the actual May liability and 90 percent of the estimated June liability
to the commissioner and file the return in the form and manner prescribed by the
commissioner.
new text end
deleted text begin (b)deleted text end new text begin (c)new text end On or before August 18 of the year, the distributor, retailer, or out-of-state retailer
shall submit a return showing the actual June liability and pay any additional amount of tax
not remitted in June. A penalty is imposed equal to ten percent of the amount of June liability
required to be paid in June, less the amount remitted in June. However, the penalty is not
imposed if the amount remitted in June equals:
(1) for calendar year deleted text begin 2021deleted text end new text begin 2025 and calendar year 2026new text end , the lesser of deleted text begin 87.5deleted text end new text begin 84.5new text end percent
of the actual June liability for that calendar year or deleted text begin 87.5deleted text end new text begin 84.5new text end percent of the May liability
for that calendar year; or
(2) for calendar year deleted text begin 2022deleted text end new text begin 2027new text end and each calendar year thereafter, the lesser of deleted text begin 84.5deleted text end new text begin 90new text end
percent of the actual June liability for that calendar year or deleted text begin 84.5deleted text end new text begin 90new text end percent of the May
liability for that calendar year.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 14.
Minnesota Statutes 2024, section 297G.09, subdivision 9, is amended to read:
Subd. 9.
Accelerated tax payment; penalty.
new text begin (a) new text end A person liable for tax under this
chapter having a liability of $250,000 or more during a fiscal year ending June 30deleted text begin ,deleted text end shall
remit the June liability for the next year in the deleted text begin followingdeleted text end mannerdeleted text begin :deleted text end new text begin provided in paragraphs
(b) and (c).
new text end
deleted text begin (a) Two business days before June 30 of calendar year 2021, the taxpayer shall remit
the actual May liability and 87.5 percent of the estimated June liability to the commissioner
and file the return in the form and manner prescribed by the commissioner.deleted text end new text begin (b)new text end Two business
days before June 30 of calendar year deleted text begin 2022deleted text end new text begin 2025new text end and deleted text begin eachdeleted text end calendar year deleted text begin thereafterdeleted text end new text begin 2026new text end , the
distributor must remit the actual May liability and 84.5 percent of the estimated June liability
to the commissioner and file the return in the form and manner prescribed by the
commissioner.new text begin Two business days before June 30 of calendar year 2027 and thereafter, the
taxpayer shall remit the actual May liability and 90 percent of the estimated June liability
to the commissioner and file the return in the form and manner prescribed by the
commissioner.
new text end
deleted text begin (b)deleted text end new text begin (c)new text end On or before August 18 of the year, the taxpayer shall submit a return showing
the actual June liability and pay any additional amount of tax not remitted in June. A penalty
is imposed equal to ten percent of the amount of June liability required to be paid in June
less the amount remitted in June. However, the penalty is not imposed if the amount remitted
in June equals:
(1) for calendar year deleted text begin 2021deleted text end new text begin 2025 and calendar year 2026new text end , the lesser of deleted text begin 87.5deleted text end new text begin 84.5new text end percent
of the actual June liability for that calendar year or deleted text begin 87.5deleted text end new text begin 84.5new text end percent of the May liability
for that calendar year; or
(2) for calendar year deleted text begin 2022deleted text end new text begin 2027new text end and each calendar year thereafter, the lesser of deleted text begin 84.5deleted text end new text begin 90new text end
percent of the actual June liability for that calendar year or deleted text begin 84.5deleted text end new text begin 90new text end percent of the May
liability for that calendar year.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 15.
Minnesota Statutes 2024, section 297G.09, subdivision 10, is amended to read:
Subd. 10.
Quarterly and annual payments and returns.
(a) If a manufacturer,
wholesaler, brewer, or importer has an average liquor tax liability equal to or less than $500
per month in any quarter of a calendar year, and has substantially complied with the state
tax laws during the preceding four calendar quarters, the manufacturer, wholesaler, brewer,
or importer may request authorization to file and pay the taxes quarterly in subsequent
calendar quarters. The authorization remains in effect during the period in which the
manufacturer's, wholesaler's, brewer's, or importer's quarterly returns reflect liquor tax
liabilities of less than $1,500 and there is continued compliance with state tax laws.
(b) If a manufacturer, wholesaler, brewer, or importer has an average liquor tax liability
equal to or less than $100 per month during a calendar year, and has substantially complied
with the state tax laws during that period, the manufacturer, wholesaler, brewer, or importer
may request authorization to file and pay the taxes annually in subsequent years. The
authorization remains in effect during the period in which the manufacturer's, wholesaler's,
brewer's, or importer's annual returns reflect liquor tax liabilities of less than $1,200 and
there is continued compliance with state tax laws.new text begin A qualified brewer as defined under
section 297G.04, subdivision 2, that meets the same criteria during a calendar year may file
and pay the taxes annually the following calendar year without authorization. A qualified
brewer must provide notice of intent to file and pay the taxes annually to the commissioner
in a form and manner prescribed by the commissioner.
new text end
(c) The commissioner may also grant quarterly or annual filing and payment
authorizations to manufacturers, wholesalers, brewers, or importers if the commissioner
concludes that the manufacturer's, wholesaler's, brewer's, or importer's future tax liabilities
will be less than the monthly totals identified in paragraphs (a) and (b). An authorization
granted under this paragraph is subject to the same conditions as an authorization granted
under paragraphs (a) and (b).
(d) The annual tax return and payments must be filed and paid on or before the 18th day
of January following the calendar year. The quarterly returns and payments must be filed
and paid on or before April 18 for the quarter ending March 31, on or before July 18 for
the quarter ending June 30, on or before October 18 for the quarter ending September 30,
and on or before January 18 for the quarter ending December 31.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for calendar year 2025 and thereafter.
new text end
Sec. 16. new text begin CITY OF WOODBURY; SALES AND USE TAX EXEMPTION FOR
CONSTRUCTION MATERIALS.
new text end
new text begin Subdivision 1. new text end
new text begin Exemption; refund. new text end
new text begin
(a) Materials and supplies used or consumed in and
equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation,
or remodeling of a water treatment facility and water tower, including water pipeline
infrastructure and associated improvements funded by the city of Woodbury are exempt
from sales and use tax under Minnesota Statutes, chapter 297A, provided that the materials,
supplies, and equipment are purchased after January 31, 2024, and before December 1,
2028.
new text end
new text begin
(b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivisions 1 and 1a, applied and then refunded in the same manner provided
for projects under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds
for eligible purchases must not be issued until after June 30, 2025.
new text end
new text begin Subd. 2. new text end
new text begin Appropriation. new text end
new text begin
The amount required to pay the refunds under subdivision 1
is appropriated from the general fund to the commissioner of revenue.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for sales and purchases
made after January 31, 2024, and before December 1, 2028.
new text end
Sec. 17. new text begin LEGISLATIVE TASK FORCE ON LOCAL SALES TAXES.
new text end
new text begin Subdivision 1. new text end
new text begin Establishment. new text end
new text begin
A legislative task force is established to:
new text end
new text begin
(1) examine the historical use of local sales taxes in Minnesota;
new text end
new text begin
(2) compare local sales taxes to other local revenue sources using tax system evaluation
criteria; and
new text end
new text begin
(3) make recommendations to the legislature on future policy changes related to local
sales taxes.
new text end
new text begin Subd. 2. new text end
new text begin Membership. new text end
new text begin
(a) The task force must include the following members:
new text end
new text begin
(1) four members from the house of representatives, two appointed by the speaker of
the house and two appointed by the speaker emerita; and
new text end
new text begin
(2) four members from the senate, two appointed by the majority leader and two appointed
by the minority leader.
new text end
new text begin
(b) The speaker of the house and the speaker emerita must each appoint a member to
act as the house of representatives chair of the task force. The senate majority leader must
appoint a member to act as the senate chair of the task force. The chair and vice-chair must
rotate after each meeting between a house of representatives chair and the senate chair. The
house of representatives chair must rotate between the member appointed by the speaker
of the house and the member appointed by the speaker emerita. The vice-chair of each
meeting must be the member who served as the chair in the previous meeting.
new text end
new text begin Subd. 3. new text end
new text begin Meetings. new text end
new text begin
(a) The task force must meet at least twice per month. The meetings
must take place in the Capitol complex, provided that the chair may direct that a meeting
be conducted electronically if doing so would facilitate public testimony or would protect
the health or safety of members of the task force.
new text end
new text begin
(b) All meetings must be open to the public. The task force must invite input from the
public.
new text end
new text begin
(c) The chair designated by the speaker of the house must convene the first meeting of
the task force no later than August 1, 2025. The senate chair must act as the vice-chair for
the first meeting of the task force.
new text end
new text begin Subd. 4. new text end
new text begin Duties. new text end
new text begin
(a) The task force must examine the role of local taxes as a revenue
source for local governments and compare local taxes to other sources of revenue for local
governments. The comparison must include:
new text end
new text begin
(1) an evaluation of the equity, efficiency, administrability, stability, and revenue
sufficiency of each revenue source;
new text end
new text begin
(2) the historical use of each revenue source by local governments in Minnesota; and
new text end
new text begin
(3) recent law changes impacting local governments' ability to raise revenue from each
revenue source.
new text end
new text begin
(b) The task force must also examine the historical use of local sales taxes in Minnesota,
including the number of local governments using local sales taxes as a revenue source and
the amount of local sales taxes collected.
new text end
new text begin
(c) The task force must also examine the requirement of demonstrating regional
significance for local sales tax proposals and what, if any, measures should be in place to
define regional significance.
new text end
new text begin
(d) The task force must make recommendations to the legislature on future changes to
local sales tax policy. These recommendations must be made by submitting the report
required under subdivision 6.
new text end
new text begin Subd. 5. new text end
new text begin Administration. new text end
new text begin
The Legislative Coordinating Commission must provide
administrative support to the task force and must assist in creation of the report under
subdivision 6.
new text end
new text begin Subd. 6. new text end
new text begin Report. new text end
new text begin
The task force must create a report on the results from the duties
required under subdivision 4. The report must be sent to the legislative committees with
jurisdiction over local sales taxes no later than January 31, 2026. The report may include
any additional information the task force deems relevant.
new text end
new text begin Subd. 7. new text end
new text begin Expenses. new text end
new text begin
Legislative members serving on the task force must receive a per
diem for each task force meeting attended.
new text end
new text begin Subd. 8. new text end
new text begin Expiration. new text end
new text begin
The task force expires upon the submission of the report under
subdivision 6.
new text end
new text begin Subd. 9. new text end
new text begin Appropriation. new text end
new text begin
$70,000 in fiscal year 2026 is appropriated from the general
fund to the Legislative Coordinating Commission to carry out the purposes of this section.
new text end
ARTICLE 3
PROPERTY TAXES
Section 1.
Minnesota Statutes 2024, section 272.01, subdivision 2, is amended to read:
Subd. 2.
Exempt property used by private entity for profit.
(a) When any real or
personal property which is exempt from ad valorem taxes, and taxes in lieu thereof, is leased,
loaned, or otherwise made available and used by a private individual, association, or
corporation in connection with a business conducted for profit, there shall be imposed a
tax, for the privilege of so using or possessing such real or personal property, in the same
amount and to the same extent as though the lessee or user was the owner of such property.
(b) The tax imposed by this subdivision shall not apply to:
(1) property leased or used as a concession in or relative to the use in whole or part of
a public park, market, fairgrounds, port authority, economic development authority
established under chapter 469, municipal auditorium, municipal parking facility, municipal
museum, or municipal stadium;
(2) property of an airport owned by a city, town, county, or group thereof which is:
(i) leased to or used by any person or entity including a fixed base operator; and
(ii) used as a hangar for the storage deleted text begin ordeleted text end new text begin ,new text end repairnew text begin , or manufacturenew text end of aircraft or to provide
aviation goods, services, or facilities to the airport or general public;
deleted text begin
the exception from taxation provided in this clause does not apply to:
deleted text end
deleted text begin
(i) property located at an airport owned or operated by the Metropolitan Airports
Commission or by a city of over 50,000 population according to the most recent federal
census or such a city's airport authority; or
deleted text end
deleted text begin
(ii) hangars leased by a private individual, association, or corporation in connection with
a business conducted for profit other than an aviation-related business;
deleted text end
(3) property constituting or used as a public pedestrian ramp or concourse in connection
with a public airport;
(4) new text begin except as provided in paragraph (f), new text end property constituting or used as a passenger
check-in area or ticket sale counter, boarding area, or luggage claim area in connection with
a public airport but not the airports owned or operated by the Metropolitan Airports
Commission or cities of over 50,000 population or an airport authority therein. Real estate
owned by a municipality in connection with the operation of a public airport and leased or
used for agricultural purposes is not exempt;
(5) property leased, loaned, or otherwise made available to a private individual,
corporation, or association under a cooperative farming agreement made pursuant to section
97A.135; or
(6) property leased, loaned, or otherwise made available to a private individual,
corporation, or association under section 272.68, subdivision 4.
new text begin
(c) Except as provided in paragraph (f), the exception from taxation provided in paragraph
(b), clause (2), does not apply to:
new text end
new text begin
(1) property located at an airport owned or operated by the Metropolitan Airports
Commission or by a city of over 50,000 population according to the most recent federal
census or such a city's airport authority; or
new text end
new text begin
(2) hangars leased by a private individual, association, or corporation in connection with
a business conducted for profit other than an aviation-related business.
new text end
deleted text begin (c)deleted text end new text begin (d)new text end Taxes imposed by this subdivision are payable as in the case of personal property
taxes and shall be assessed to the lessees or users of real or personal property in the same
manner as taxes assessed to owners of real or personal property, except that such taxes shall
not become a lien against the property. When due, the taxes shall constitute a debt due from
the lessee or user to the state, township, city, county, and school district for which the taxes
were assessed and shall be collected in the same manner as personal property taxes. If
property subject to the tax imposed by this subdivision is leased or used jointly by two or
more persons, each lessee or user shall be jointly and severally liable for payment of the
tax.
deleted text begin (d)deleted text end new text begin (e)new text end The tax on real property of the federal government, the state or any of its political
subdivisions that is leased, loaned, or otherwise made available to a private individual,
association, or corporation and becomes taxable under this subdivision or other provision
of law must be assessed and collected as a personal property assessment. The taxes do not
become a lien against the real property.
new text begin
(f) Property of an airport that is:
new text end
new text begin
(1) located at an airport owned or operated by a city of over 50,000 but under 150,000
in population according to the most recent federal census or such a city's airport authority;
new text end
new text begin
(2) not owned or operated by the Metropolitan Airports Commission; and
new text end
new text begin
(3) used as a hangar for the storage, repair, or manufacture of aircraft or to provide
aviation goods, services, or facilities to the airport or general public, or used as a passenger
check-in area or ticket sale counter, boarding area, or luggage claim area, shall have the tax
imposed by this subdivision calculated as follows: for property taxes payable in 2026 through
2037, the net tax capacity of such property shall be reduced by 50 percent.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with property taxes payable
in 2026.
new text end
Sec. 2.
Minnesota Statutes 2024, section 272.02, subdivision 7, is amended to read:
Subd. 7.
Institutions of public charity.
(a) Institutions of purely public charity that are
exempt from federal income taxation under section 501(c)(3) of the Internal Revenue Code
are exempt if they meet the requirements of this subdivision. In determining whether real
property is exempt under this subdivision, the following factors must be considered:
(1) whether the stated purpose of the undertaking is to be helpful to others without
immediate expectation of material reward;
(2) whether the institution of public charity is supported by material donations, gifts, or
government grants for services to the public in whole or in part;
(3) whether a material number of the recipients of the charity receive benefits or services
at reduced or no cost, or whether the organization provides services to the public that alleviate
burdens or responsibilities that would otherwise be borne by the government;
(4) whether the income received, including material gifts and donations, produces a
profit to the charitable institution that is not distributed to private interests;
(5) whether the beneficiaries of the charity are restricted or unrestricted, and, if restricted,
whether the class of persons to whom the charity is made available is one having a reasonable
relationship to the charitable objectives; and
(6) whether dividends, in form or substance, or assets upon dissolution, are not available
to private interests.
A charitable organization must satisfy the factors in clauses (1) to (6) for its property to
be exempt under this subdivision, unless there is a reasonable justification for failing to
meet the factors in clause (2), (3), or (5), and the organization provides to the assessor the
factual basis for that justification. If there is reasonable justification for failing to meet the
factors in clause (2), (3), or (5), an organization is a purely public charity under this
subdivision without meeting those factors. After an exemption is properly granted under
this subdivision, it will remain in effect unless there is a material change in facts.
(b) For purposes of this subdivision, a grant is a written instrument or electronic document
defining a legal relationship between a granting agency and a grantee when the principal
purpose of the relationship is to transfer cash or something of value to the grantee to support
a public purpose authorized by law in a general manner instead of acquiring by professional
or technical contract, purchase, lease, or barter property or services for the direct benefit or
use of the granting agency.
new text begin
(c) Rental housing property does not qualify for an exemption under this subdivision
unless: (1) the use of the rental property is in furtherance of the tax-exempt charitable
purpose of the organization; and (2) the use of the rental property does not further the
tax-exempt charitable purpose of the organization solely by providing rental housing to
persons or families on the basis of the income characteristics of those persons or families.
new text end
deleted text begin (c)deleted text end new text begin (d)new text end In determining whether rental housing property qualifies for exemption under
this subdivision, the following are not gifts or donations to the owner of the rental housing:
(1) rent assistance provided by the government to or on behalf of tenants; and
(2) financing assistance or tax credits provided by the government to the owner on
condition that specific units or a specific quantity of units be set aside for persons or families
with certain income characteristics.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for property taxes payable in 2026 and
thereafter.
new text end
Sec. 3.
Minnesota Statutes 2024, section 272.02, subdivision 19, is amended to read:
Subd. 19.
Property used to distribute electricity to farmers.
Electric power distribution
deleted text begin lines and their attachments and appurtenancesdeleted text end new text begin systems, not including substations, or
transmission or generation equipmentnew text end , that are used primarily for supplying electricity to
farmers at retail, are exempt.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2025 and thereafter.
new text end
Sec. 4.
Minnesota Statutes 2024, section 272.02, is amended by adding a subdivision to
read:
new text begin Subd. 106. new text end
new text begin Certain property owned by an Indian Tribe. new text end
new text begin
(a) Property is exempt that:
new text end
new text begin
(1) was classified as class 3a under section 273.13, subdivision 24, for taxes payable in
2025;
new text end
new text begin
(2) is located in a city of the first class with a population greater than 400,000 as of the
2020 federal census;
new text end
new text begin
(3) was on January 1, 2024, and is for the current assessment, owned by a federally
recognized Indian Tribe, or its instrumentality, that is located within the state of Minnesota;
and
new text end
new text begin
(4) is used exclusively for Tribal purposes or institutions of purely public charity as
defined in subdivision 7.
new text end
new text begin
(b) Property that qualifies for the exemption under this subdivision is limited to one
parcel that does not exceed 40,000 square feet. Property used for single-family housing,
market-rate apartments, agriculture, or forestry does not qualify for this exemption. For the
purposes of this subdivision, a "Tribal purpose" means a public purpose as defined in
subdivision 8 and includes noncommercial Tribal government activities.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with assessment year 2026.
new text end
Sec. 5.
Minnesota Statutes 2024, section 272.02, is amended by adding a subdivision to
read:
new text begin Subd. 107. new text end
new text begin Certain property owned by an Indian Tribe. new text end
new text begin
(a) Property is exempt that:
new text end
new text begin
(1) was classified as class 2b under section 273.13, subdivision 23, for taxes payable in
2025;
new text end
new text begin
(2) is located within a county with a population greater than 5,580 but less than 5,620
according to the 2020 federal census;
new text end
new text begin
(3) is located in an unorganized territory with a population less than 800 according to
the 2020 federal census; and
new text end
new text begin
(4) was on January 2, 2023, and is for the current assessment, owned by a federally
recognized Indian Tribe, or its instrumentality, that is located within the state of Minnesota.
new text end
new text begin
(b) Property that qualifies for exemption under this subdivision is limited to no more
than five parcels.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with assessment year 2026.
new text end
Sec. 6.
Minnesota Statutes 2024, section 272.02, is amended by adding a subdivision to
read:
new text begin Subd. 108. new text end
new text begin Certain property owned by an Indian Tribe. new text end
new text begin
(a) Property is exempt that:
new text end
new text begin
(1) is located in a city of the first class with a population greater than 400,000 as of the
2020 federal census;
new text end
new text begin
(2) was on January 1, 2025, and is for the current assessment, owned by a federally
recognized Indian Tribe, or its instrumentality, that is located within the state of Minnesota;
and
new text end
new text begin
(3) contains a mixed-use development constructed after January 1, 2024, that includes
space used exclusively for noncommercial Tribal government activities.
new text end
new text begin
(b) Any portion of the property used for housing, agriculture, or forestry does not qualify
for this exemption.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with assessment year 2026.
new text end
Sec. 7.
Minnesota Statutes 2024, section 273.13, subdivision 25, is amended to read:
Subd. 25.
Class 4.
(a) Class 4a is residential real estate containing four or more units
and used or held for use by the owner or by the tenants or lessees of the owner as a residence
for rental periods of 30 days or more, excluding property qualifying for class 4d. Class 4a
also includes hospitals licensed under sections 144.50 to 144.56, other than hospitals exempt
under section 272.02, and contiguous property used for hospital purposes, without regard
to whether the property has been platted or subdivided. The market value of class 4a property
has a classification rate of 1.25 percent.
(b) Class 4b includes:
(1) residential real estate containing less than four units, including property rented as a
short-term rental property for more than 14 days in the preceding year, that does not qualify
as class 4bb, other than seasonal residential recreational property;
(2) manufactured homes not classified under any other provision;
(3) a dwelling, garage, and surrounding one acre of property on a nonhomestead farm
classified under subdivision 23, paragraph (b) containing two or three units; and
(4) unimproved property that is classified residential as determined under subdivision
33.
For the purposes of this paragraph, "short-term rental property" means nonhomestead
residential real estate rented for periods of less than 30 consecutive days.
The market value of class 4b property has a classification rate of 1.25 percent.
(c) Class 4bb includes:
(1) nonhomestead residential real estate containing one unit, other than seasonal
residential recreational property;
(2) a single family dwelling, garage, and surrounding one acre of property on a
nonhomestead farm classified under subdivision 23, paragraph (b); and
(3) a condominium-type storage unit having an individual property identification number
that is not used for a commercial purpose.
Class 4bb property has the same classification rates as class 1a property under subdivision
22.
Property that has been classified as seasonal residential recreational property at any time
during which it has been owned by the current owner or spouse of the current owner does
not qualify for class 4bb.
(d) Class 4c property includes:
(1) except as provided in subdivision 22, paragraph (c), real and personal property
devoted to commercial temporary and seasonal residential occupancy for recreation purposes,
for not more than 250 days in the year preceding the year of assessment. For purposes of
this clause, property is devoted to a commercial purpose on a specific day if any portion of
the property is used for residential occupancy, and a fee is charged for residential occupancy.
Class 4c property under this clause must contain three or more rental units. A "rental unit"
is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site
equipped with water and electrical hookups for recreational vehicles. A camping pad offered
for rent by a property that otherwise qualifies for class 4c under this clause is also class 4c
under this clause regardless of the term of the rental agreement, as long as the use of the
camping pad does not exceed 250 days. In order for a property to be classified under this
clause, either (i) the business located on the property must provide recreational activities,
at least 40 percent of the annual gross lodging receipts related to the property must be from
business conducted during 90 consecutive days, and either (A) at least 60 percent of all paid
bookings by lodging guests during the year must be for periods of at least two consecutive
nights; or (B) at least 20 percent of the annual gross receipts must be from charges for
providing recreational activities, or (ii) the business must contain 20 or fewer rental units,
and must be located in a township or a city with a population of 2,500 or less located outside
the metropolitan area, as defined under section 473.121, subdivision 2, that contains a portion
of a state trail administered by the Department of Natural Resources. For purposes of item
(i)(A), a paid booking of five or more nights shall be counted as two bookings. Class 4c
property also includes commercial use real property used exclusively for recreational
purposes in conjunction with other class 4c property classified under this clause and devoted
to temporary and seasonal residential occupancy for recreational purposes, up to a total of
two acres, provided the property is not devoted to commercial recreational use for more
than 250 days in the year preceding the year of assessment and is located within two miles
of the class 4c property with which it is used. In order for a property to qualify for
classification under this clause, the owner must submit a declaration to the assessor
designating the cabins or units occupied for 250 days or less in the year preceding the year
of assessment by January 15 of the assessment year. Those cabins or units and a proportionate
share of the land on which they are located must be designated class 4c under this clause
as otherwise provided. The remainder of the cabins or units and a proportionate share of
the land on which they are located will be designated as class 3a. The owner of property
desiring designation as class 4c property under this clause must provide guest registers or
other records demonstrating that the units for which class 4c designation is sought were not
occupied for more than 250 days in the year preceding the assessment if so requested. The
portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center
or meeting room, and (5) other nonresidential facility operated on a commercial basis not
directly related to temporary and seasonal residential occupancy for recreation purposes
does not qualify for class 4c. For the purposes of this paragraph, "recreational activities"
means renting ice fishing houses, boats and motors, snowmobiles, downhill or cross-country
ski equipment; providing marina services, launch services, or guide services; or selling bait
and fishing tackle;
(2) qualified property used as a golf course if:
(i) it is open to the public on a daily fee basis. It may charge membership fees or dues,
but a membership fee may not be required in order to use the property for golfing, and its
green fees for golfing must be comparable to green fees typically charged by municipal
courses; and
(ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d).
A structure used as a clubhouse, restaurant, or place of refreshment in conjunction with
the golf course is classified as class 3a property;
(3) real property up to a maximum of three acres of land owned and used by a nonprofit
community service oriented organization and not used for residential purposes on either a
temporary or permanent basis, provided that:
(i) the property is not used for a revenue-producing activity for more than six days in
the calendar year preceding the year of assessment; or
(ii) the organization makes annual charitable contributions and donations at least equal
to the property's previous year's property taxes and the property is allowed to be used for
public and community meetings or events for no charge, as appropriate to the size of the
facility.
For purposes of this clause:
(A) "charitable contributions and donations" has the same meaning as lawful gambling
purposes under section 349.12, subdivision 25, excluding those purposes relating to the
payment of taxes, assessments, fees, auditing costs, and utility payments;
(B) "property taxes" excludes the state general tax;
(C) a "nonprofit community service oriented organization" means any corporation,
society, association, foundation, or institution organized and operated exclusively for
charitable, religious, fraternal, civic, or educational purposes, and which is exempt from
federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal
Revenue Code; and
(D) "revenue-producing activities" shall include but not be limited to property or that
portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt
liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling
alley, a retail store, gambling conducted by organizations licensed under chapter 349, an
insurance business, or office or other space leased or rented to a lessee who conducts a
for-profit enterprise on the premises.
Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The
use of the property for social events open exclusively to members and their guests for periods
of less than 24 hours, when an admission is not charged nor any revenues are received by
the organization shall not be considered a revenue-producing activity.
The organization shall maintain records of its charitable contributions and donations
and of public meetings and events held on the property and make them available upon
request any time to the assessor to ensure eligibility. An organization meeting the requirement
under item (ii) must file an application by May 1 with the assessor for eligibility for the
current year's assessment. The commissioner shall prescribe a uniform application form
and instructions;
(4) postsecondary student housing of not more than one acre of land that is owned by a
nonprofit corporation organized under chapter 317A and is used exclusively by a student
cooperative, sorority, or fraternity for on-campus housing or housing located within two
miles of the border of a college campus;
(5)(i) manufactured home parks as defined in section 327.14, subdivision 3, excluding
manufactured home parks described in items (ii) and (iii), (ii) manufactured home parks as
defined in section 327.14, subdivision 3, that are described in section 273.124, subdivision
3a, and (iii) class I manufactured home parks as defined in section 327C.015, subdivision
2;
(6) real property that is actively and exclusively devoted to indoor fitness, health, social,
recreational, and related uses, is owned and operated by a not-for-profit corporation, and is
located within the metropolitan area as defined in section 473.121, subdivision 2;
(7) a leased or privately owned noncommercial aircraft storage hangar not exempt under
section 272.01, subdivision 2, and the land on which it is located, provided that:
(i) the land is on an airport owned or operated by a city, town, county, Metropolitan
Airports Commission, or group thereof; and
(ii) the land lease, or any ordinance or signed agreement restricting the use of the leased
premise, prohibits commercial activity performed at the hangar.
If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must be
filed by the new owner with the assessor of the county where the property is located within
60 days of the sale;
(8) a privately owned noncommercial aircraft storage hangar not exempt under section
272.01, subdivision 2, and the land on which it is located, provided that:
(i) the land abuts a public airport; and
(ii) the owner of the aircraft storage hangar provides the assessor with a signed agreement
restricting the use of the premises, prohibiting commercial use or activity performed at the
hangar; and
(9) residential real estate, a portion of which is used by the owner for homestead purposes,
and that is also a place of lodging, if all of the following criteria are met:
(i) rooms are provided for rent to transient guests that generally stay for periods of 14
or fewer days;
(ii) meals are provided to persons who rent rooms, the cost of which is incorporated in
the basic room rate;
(iii) meals are not provided to the general public except for special events on fewer than
seven days in the calendar year preceding the year of the assessment; and
(iv) the owner is the operator of the property.
The market value subject to the 4c classification under this clause is limited to five rental
units. Any rental units on the property in excess of five, must be valued and assessed as
class 3a. The portion of the property used for purposes of a homestead by the owner must
be classified as class 1a property under subdivision 22;
(10) real property up to a maximum of three acres and operated as a restaurant as defined
under section 157.15, subdivision 12, provided it: (i) is located on a lake as defined under
section 103G.005, subdivision 15, paragraph (a), clause (3); and (ii) is either devoted to
commercial purposes for not more than 250 consecutive days, or receives at least 60 percent
of its annual gross receipts from business conducted during four consecutive months. Gross
receipts from the sale of alcoholic beverages must be included in determining the property's
qualification under item (ii). The property's primary business must be as a restaurant and
not as a bar. Gross receipts from gift shop sales located on the premises must be excluded.
Owners of real property desiring 4c classification under this clause must submit an annual
declaration to the assessor by February 1 of the current assessment year, based on the
property's relevant information for the preceding assessment year;
(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used as
a marina, as defined in section 86A.20, subdivision 5, which is made accessible to the public
and devoted to recreational use for marina services. The marina owner must annually provide
evidence to the assessor that it provides services, including lake or river access to the public
by means of an access ramp or other facility that is either located on the property of the
marina or at a publicly owned site that abuts the property of the marina. No more than 800
feet of lakeshore may be included in this classification. Buildings used in conjunction with
a marina for marina services, including but not limited to buildings used to provide food
and beverage services, fuel, boat repairs, or the sale of bait or fishing tackle, are classified
as class 3a property; and
(12) real and personal property devoted to noncommercial temporary and seasonal
residential occupancy for recreation purposes.
Class 4c property has a classification rate of 1.5 percent of market value, except that (i)
each parcel of noncommercial seasonal residential recreational property under clause (12)
has the same classification rates as class 4bb property, (ii) manufactured home parks assessed
under clause (5), item (i), have the same classification rate as class 4b property, the market
value of manufactured home parks assessed under clause (5), item (ii), have a classification
rate of 0.75 percent if more than 50 percent of the lots in the park are occupied by
shareholders in the cooperative corporation or association and a classification rate of one
percent if 50 percent or less of the lots are so occupied, and class I manufactured home
parks as defined in section 327C.015, subdivision 2, have a classification rate of 1.0 percent,
(iii) commercial-use seasonal residential recreational property and marina recreational land
as described in clause (11), has a classification rate of one percent for the first $500,000 of
market value, and 1.25 percent for the remaining market value, (iv) the market value of
property described in clause (4) has a classification rate of one percent, (v) the market value
of property described in clauses (2), (6), and (10) has a classification rate of 1.25 percent,
(vi) that portion of the market value of property in clause (9) qualifying for class 4c property
has a classification rate of 1.25 percent, and (vii) property qualifying for classification under
clause (3) that is owned or operated by a congressionally chartered veterans organization
has a classification rate of one percent. The commissioner of veterans affairs must provide
a list of congressionally chartered veterans organizations to the commissioner of revenue
by June 30, 2017, and by January 1, 2018, and each year thereafter.
(e) Class 4d property includes:
(1) qualifying low-income rental housing certified to the assessor by the Housing Finance
Agency under section 273.128, subdivision 3. If only a portion of the units in the building
qualify as low-income rental housing units as certified under section 273.128, subdivision
3, only the proportion of qualifying units to the total number of units in the building qualify
for class 4d(1). The remaining portion of the building shall be classified by the assessor
based upon its use. Class 4d(1) also includes the same proportion of land as the qualifying
low-income rental housing units are to the total units in the building. For all properties
qualifying as class 4d(1), the market value determined by the assessor must be based on the
normal approach to value using normal unrestricted rents; and
(2) a unit that is owned by the occupant and used as a homestead by the occupant, and
otherwise meets all the requirements for community land trust property under section 273.11,
subdivision 12, provided that by December 31 of each assessment year, the community land
trust certifies to the assessor that (i) the community land trust owns the real property on
which the unit is located, and (ii) the unit owner is a member in good standing of the
community land trust. deleted text begin For all units qualifying as class 4d(2), the market value determined
by the assessor must be based on the normal approach to value without regard to any
restrictions that apply because the unit is a community land trust property.
deleted text end
(f) Class 4d(1) property has a classification rate of 0.25 percent. Class 4d(2) property
has a classification rate of 0.75 percent.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with assessment year 2025.
new text end
Sec. 8.
Minnesota Statutes 2024, section 273.13, subdivision 34, is amended to read:
Subd. 34.
Homestead of veteran with a disability or family caregiver.
(a) All or a
portion of the market value of property owned by a veteran and serving as the veteran's
homestead under this section is excluded in determining the property's taxable market value
if the veteran has a service-connected disability of 70 percent or more as certified by the
United States Department of Veterans Affairs. To qualify for exclusion under this subdivision,
the veteran must have been honorably discharged from the United States armed forces, as
indicated by United States Government Form DD214 or other official military discharge
papers.
(b)(1) For a disability rating of 70 percent or more, deleted text begin $150,000deleted text end new text begin $175,000new text end of market value
is excluded, except as provided in clause (2); and
(2) for a total (100 percent) and permanent disability, deleted text begin $300,000deleted text end new text begin $350,000new text end of market
value is excluded.
(c) If a veteran with a disability qualifying for a valuation exclusion under paragraph
(b), clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the
spouse holds the legal or beneficial title to the homestead and permanently resides there,
the exclusion shall carry over to the benefit of the veteran's spouse until such time as the
spouse remarries, or sells, transfers, or otherwise disposes of the property, except as otherwise
provided in paragraph (n). Qualification under this paragraph requires an application under
paragraph (h), and a spouse must notify the assessor if there is a change in the spouse's
marital status, ownership of the property, or use of the property as a permanent residence.
(d) If the spouse of a member of any branch or unit of the United States armed forces
who dies due to a service-connected cause while serving honorably in active service, as
indicated on United States Government Form DD1300 or DD2064, holds the legal or
beneficial title to a homestead and permanently resides there, the spouse is entitled to the
benefit described in paragraph (b), clause (2), until such time as the spouse remarries or
sells, transfers, or otherwise disposes of the property, except as otherwise provided in
paragraph (n).
(e) If a veteran meets the disability criteria of paragraph (a) but does not own property
classified as homestead in the state of Minnesota, then the homestead of the veteran's primary
family caregiver, if any, is eligible for the exclusion that the veteran would otherwise qualify
for under paragraph (b).
(f) In the case of an agricultural homestead, only the portion of the property consisting
of the house and garage and immediately surrounding one acre of land qualifies for the
valuation exclusion under this subdivision.
(g) A property qualifying for a valuation exclusion under this subdivision is not eligible
for the market value exclusion under subdivision 35, or classification under subdivision 22,
paragraph (b).
(h) To qualify for a valuation exclusion under this subdivision a property owner must
apply to the assessor by December 31 of the first assessment year for which the exclusion
is sought. Except as provided in paragraph (c), the owner of a property that has been accepted
for a valuation exclusion must notify the assessor if there is a change in ownership of the
property or in the use of the property as a homestead.
(i) A first-time application by a qualifying spouse for the market value exclusion under
paragraph (d) must be made any time within two years of the death of the service member.
(j) For purposes of this subdivision:
(1) "active service" has the meaning given in section 190.05;
(2) "own" means that the person's name is present as an owner on the property deed;
(3) "primary family caregiver" means a person who is approved by the secretary of the
United States Department of Veterans Affairs for assistance as the primary provider of
personal care services for an eligible veteran under the Program of Comprehensive Assistance
for Family Caregivers, codified as United States Code, title 38, section 1720G; and
(4) "veteran" has the meaning given the term in section 197.447.
(k) If a veteran did not apply for or receive the exclusion under paragraph (b), clause
(2), before dying, or the exclusion under paragraph (b), clause (2), did not exist at the time
of the veterans death, the veteran's spouse is entitled to the benefit under paragraph (b),
clause (2), until the spouse remarries or sells, transfers, or otherwise disposes of the property,
except as otherwise provided in paragraph (n), if:
(1) the spouse files a first-time application;
(2) upon the death of the veteran, the spouse holds the legal or beneficial title to the
homestead and permanently resides there;
(3) the veteran met the honorable discharge requirements of paragraph (a); and
(4) the United States Department of Veterans Affairs certifies that:
(i) the veteran met the total (100 percent) and permanent disability requirement under
paragraph (b), clause (2); or
(ii) the spouse has been awarded dependency and indemnity compensation.
(l) The purpose of this provision of law providing a level of homestead property tax
relief for veterans with a disability, their primary family caregivers, and their surviving
spouses is to help ease the burdens of war for those among our state's citizens who bear
those burdens most heavily.
(m) By July 1, the county veterans service officer must certify the disability rating and
permanent address of each veteran receiving the benefit under paragraph (b) to the assessor.
(n) A spouse who received the benefit in paragraph (c), (d), or (k) but no longer holds
the legal or beneficial title to the property may continue to receive the exclusion for a
property other than the property for which the exclusion was initially granted until the spouse
remarries or sells, transfers, or otherwise disposes of the property, provided that:
(1) the spouse applies under paragraph (h) for the continuation of the exclusion allowed
under this paragraph;
(2) the spouse holds the legal or beneficial title to the property for which the continuation
of the exclusion is sought under this paragraph, and permanently resides there;
(3) the estimated market value of the property for which the exclusion is sought under
this paragraph is less than or equal to the estimated market value of the property that first
received the exclusion, based on the value of each property on the date of the sale of the
property that first received the exclusion; and
(4) the spouse has not previously received the benefit under this paragraph for a property
other than the property for which the exclusion is sought.
(o) If a spouse had previously received the exclusion under paragraph (c) or (d) and the
exclusion expired prior to taxes payable in 2020, the spouse may reapply under this section
for the exclusion under paragraph (c) or (d).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with assessment year 2025.
new text end
Sec. 9.
Minnesota Statutes 2024, section 273.38, is amended to read:
273.38 PERCENTAGE OF ASSESSMENTS; EXCEPTIONS.
The distribution deleted text begin lines and the attachments and appurtenances theretodeleted text end new text begin systems, not
including substations, or transmission or generation equipmentnew text end of cooperative associations
organized under the provisions of Laws 1923, chapter 326, and laws amendatory thereof
and supplemental thereto, and engaged in the electrical heat, light and power business, upon
a mutual, nonprofit and cooperative plan, shall be assessed and taxed as provided in sections
273.40 and 273.41.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2025 and thereafter.
new text end
Sec. 10.
Minnesota Statutes 2024, section 273.41, is amended to read:
273.41 AMOUNT OF TAX; DISTRIBUTION.
There is hereby imposed upon each such cooperative association on December 31 of
each year a tax of $10 for each 100 members, or fraction thereof, of such association. The
tax, when paid, shall be in lieu of all personal property taxes, state, county, or local, upon
deleted text begin distribution lines and the attachments and appurtenances thereto of such associationsdeleted text end new text begin that
part of the association's distribution system, not including substations, or transmission or
generation equipment,new text end located in rural areas. The tax shall be payable on or before March
1 of the next succeeding year, to the commissioner of revenue. If the tax, or any portion
thereof, is not paid within the time herein specified for the payment thereof, there shall be
added thereto a specific penalty equal to ten percent of the amount so remaining unpaid.
Such penalty shall be collected as part of said tax, and the amount of said tax not timely
paid, together with said penalty, shall bear interest at the rate specified in section 270C.40
from the time such tax should have been paid until paid. The commissioner shall deposit
the amount so received in the general fund of the state treasury.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for assessment year 2025 and thereafter.
new text end
Sec. 11.
Minnesota Statutes 2024, section 290B.03, subdivision 1, is amended to read:
Subdivision 1.
Program qualifications.
The qualifications for the senior citizens'
property tax deferral program are as follows:
(1) the property must be owned and occupied as a homestead by a person 65 years of
age or older. In the case of a married couple, at least one of the spouses must be at least 65
years old at the time the first property tax deferral is granted, regardless of whether the
property is titled in the name of one spouse or both spouses, or titled in another way that
permits the property to have homestead status, and the other spouse must be at least 62 years
of age;
(2) the total household income of the qualifying homeowners, as defined in section
290A.03, subdivision 5, for the calendar year preceding the year of the initial application
may not exceed deleted text begin $96,000deleted text end new text begin $110,000new text end ;
(3) the homestead must have been owned and occupied as the homestead of at least one
of the qualifying homeowners for at least five years prior to the year the initial application
is filed;
(4) there are no state or federal tax liens or judgment liens on the homesteaded property;
(5) there are no mortgages or other liens on the property that secure future advances,
except for those subject to credit limits that result in compliance with clause (6); and
(6) the total unpaid balances of debts secured by mortgages and other liens on the
property, including unpaid and delinquent special assessments and interest and any delinquent
property taxes, penalties, and interest, but not including property taxes payable during the
year or debts secured by a residential PACE lien, as defined in section 216C.435, subdivision
10d, does not exceed 75 percent of the assessor's estimated market value for the year.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for applications for deferral of taxes
payable in 2026 and thereafter.
new text end
Sec. 12.
Minnesota Statutes 2024, section 290B.04, subdivision 3, is amended to read:
Subd. 3.
Excess-income certification by taxpayer.
A taxpayer whose initial application
has been approved under subdivision 2 shall notify the commissioner of revenue in writing
by July 1 if the taxpayer's household income for the preceding calendar year exceeded
deleted text begin $96,000deleted text end new text begin $110,000new text end . The certification must state the homeowner's total household income
for the previous calendar year. No property taxes may be deferred under this chapter in any
year following the year in which a program participant filed or should have filed an
excess-income certification under this subdivision, unless the participant has filed a
resumption of eligibility certification as described in subdivision 4.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for applications for deferral of taxes
payable in 2026 and thereafter.
new text end
Sec. 13.
Minnesota Statutes 2024, section 290B.04, subdivision 4, is amended to read:
Subd. 4.
Resumption of eligibility certification by taxpayer.
A taxpayer who has
previously filed an excess-income certification under subdivision 3 may resume program
participation if the taxpayer's household income for a subsequent year is deleted text begin $96,000deleted text end new text begin $110,000new text end
or less. If the taxpayer chooses to resume program participation, the taxpayer must notify
the commissioner of revenue in writing by July 1 of the year following a calendar year in
which the taxpayer's household income is deleted text begin $96,000deleted text end new text begin $110,000new text end or less. The certification must
state the taxpayer's total household income for the previous calendar year. Once a taxpayer
resumes participation in the program under this subdivision, participation will continue until
the taxpayer files a subsequent excess-income certification under subdivision 3 or until
participation is terminated under section 290B.08, subdivision 1.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for applications for deferral of taxes
payable in 2026 and thereafter.
new text end
Sec. 14.
Minnesota Statutes 2024, section 290B.05, subdivision 1, is amended to read:
Subdivision 1.
Determination by commissioner.
The commissioner shall determine
each qualifying homeowner's "annual maximum property tax amount" following approval
of the homeowner's initial application and following the receipt of a resumption of eligibility
certification. The "annual maximum property tax amount" equals three percent of the
homeowner's total household income for the year preceding either the initial application or
the resumption of eligibility certification, whichever is applicable. Following approval of
the initial application, the commissioner shall determine the qualifying homeowner's
"maximum allowable deferral." No tax may be deferred relative to the appropriate assessment
year for any homeowner whose total household income for the previous year exceeds
deleted text begin $96,000deleted text end new text begin $110,000new text end . No tax shall be deferred in any year in which the homeowner does not
meet the program qualifications in section 290B.03. The maximum allowable total deferral
is equal to 75 percent of the assessor's estimated market value for the year, less the balance
of any mortgage loans and other amounts secured by liens against the property at the time
of application, including any unpaid and delinquent special assessments and interest and
any delinquent property taxes, penalties, and interest, but not including property taxes
payable during the year.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for applications for deferral of taxes
payable in 2026 and thereafter.
new text end
Sec. 15.
Minnesota Statutes 2024, section 469.1812, is amended by adding a subdivision
to read:
new text begin Subd. 2a. new text end
new text begin Land bank organization. new text end
new text begin
"Land bank organization" means an organization
that, at least in part, acquires, holds, or manages vacant, blighted, foreclosed, or tax-forfeited
property for future development, redevelopment, or disposal, and that is either:
new text end
new text begin
(1) a nonprofit organization exempt from federal income taxation under section 501(c)(3)
of the Internal Revenue Code whose governing board members are elected or appointed by
the state of Minnesota, any political subdivision of the state of Minnesota, or an agency of
the state of Minnesota or its political subdivisions, or are elected or appointed officials of
the state of Minnesota or any of its political subdivisions; or
new text end
new text begin
(2) a limited liability company of which a nonprofit organization described in clause (1)
is the sole member.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 16.
Minnesota Statutes 2024, section 469.1813, subdivision 1, is amended to read:
Subdivision 1.
Authority.
The governing body of a political subdivision may grant a
current or prospective abatement, by contract or otherwise, of the taxes imposed by the
political subdivision on a parcel of property, which may include personal property and
machinery, or defer the payments of the taxes and abate the interest and penalty that otherwise
would apply, if:
(1) it expects the benefits to the political subdivision of the proposed abatement agreement
to at least equal the costs to the political subdivision of the proposed agreement or intends
the abatement to phase in a property tax increase, as provided in clause (2)(vii); and
(2) it finds that doing so is in the public interest because it will:
(i) increase or preserve tax base;
(ii) provide employment opportunities in the political subdivision;
(iii) provide or help acquire or construct public facilities;
(iv) help redevelop or renew blighted areas;
(v) help provide access to services for residents of the political subdivision;
(vi) finance or provide public infrastructure;
(vii) phase in a property tax increase on the parcel resulting from an increase of 50
percent or more in one year on the estimated market value of the parcel, other than increase
attributable to improvement of the parcel; deleted text begin or
deleted text end
(viii) stabilize the tax base through equalization of property tax revenues for a specified
period of time with respect to a taxpayer whose real and personal property is subject to
valuation under Minnesota Rules, chapter 8100deleted text begin .deleted text end new text begin ;
new text end
new text begin
(ix) provide for the development of affordable housing to households at or below 80
percent of area median income as estimated by the United States Department of Housing
and Urban Development for the political subdivision in which the project is located; or
new text end
new text begin
(x) allow the property to be held by a land bank organization for future development.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 17.
Minnesota Statutes 2024, section 469.1813, subdivision 6, is amended to read:
Subd. 6.
Duration limit.
(a) A political subdivision may grant an abatement for a period
no longer than 15 years, except as provided under deleted text begin paragraphdeleted text end new text begin paragraphsnew text end (b)new text begin and (c)new text end . The
abatement period commences in the first year in which the abatement granted is either paid
or retained in accordance with section 469.1815, subdivision 2. The subdivision may specify
in the abatement resolution a shorter duration. If the resolution does not specify a period of
time, the abatement is for eight years. If an abatement has been granted to a parcel of property
and the period of the abatement has expired, the political subdivision that granted the
abatement may not grant another abatement for eight years after the expiration of the first
abatement. This prohibition does not apply to improvements added after and not subject to
the first abatement. Economic abatement agreements for real and personal property subject
to valuation under Minnesota Rules, chapter 8100, are not subject to this prohibition and
may be granted successively.
(b) A political subdivision proposing to abate taxes for a parcel may request, in writing,
that the other political subdivisions in which the parcel is located grant an abatement for
the property. If one of the other political subdivisions declines, in writing, to grant an
abatement or if 90 days pass after receipt of the request to grant an abatement without a
written response from one of the political subdivisions, the duration limit for an abatement
for the parcel by the requesting political subdivision and any other participating political
subdivision is increased to 20 years. If the political subdivision which declined to grant an
abatement later grants an abatement for the parcel, the 20-year duration limit is reduced by
one year for each year that the declining political subdivision grants an abatement for the
parcel during the period of the abatement granted by the requesting political subdivision.
The duration limit may not be reduced below the limit under paragraph (a).
new text begin
(c) An abatement under subdivision 1, clause (2), items (ix) and (x), may be granted for
a period no longer than five years. This limit also applies if the resolution does not specify
a period of time.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for abatement resolutions approved after
the day following final enactment.
new text end
Sec. 18.
Minnesota Statutes 2024, section 469.1813, is amended by adding a subdivision
to read:
new text begin Subd. 11. new text end
new text begin Repayment. new text end
new text begin
A land bank organization receiving an abatement under
subdivision 1, clause (2), item (ix) or (x), must repay the abatement with interest if the land
for which the abatement was granted is used for a purpose other than the purpose given by
the land bank organization prior to redevelopment, as determined by the governing body
of the political subdivision that granted the abatement. The repayment must be paid to the
county treasurer and the county auditor shall distribute the repayment in the same proportion
to the political subdivision that granted the abatement. This subdivision applies immediately
after the abatement under this section expires and land is subject to repayment under this
subdivision for the same number of years that the abatement was granted. Interest under
this section is payable at the rate determined in section 270C.40, subdivision 5.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 19. new text begin EXEMPTION FOR LAND HELD FOR ECONOMIC DEVELOPMENT.
new text end
new text begin
Notwithstanding Minnesota Statutes, section 272.02, subdivision 39, property owned
by the Port Authority of the city of Bloomington that was acquired by the Port Authority
in May 2016 and exempt under Minnesota Statutes, section 272.02, subdivision 39, for
taxes payable in 2017 through 2025, must continue to be exempt pursuant to Minnesota
Statutes, section 272.02, subdivision 39, for taxes payable in 2026 through 2031 provided
that the requirements of that subdivision are met. Notwithstanding Minnesota Statutes,
section 272.025, an initial application for the exemption under this section must be filed
with the assessor by June 30, 2025.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Bloomington and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end
Sec. 20. new text begin PROPERTY TAX EXEMPTION; RED LAKE NATION COLLEGE.
new text end
new text begin
(a) Notwithstanding Minnesota Statutes, section 272.02, subdivision 38, paragraph (b),
and any other law to the contrary, property located in the city of Minneapolis acquired by
Red Lake Nation College Without Borders, LLC in either August 2021 or September 2021
is exempt from property taxes payable in 2022 and the portion of property taxes payable in
2021 due after the property was acquired. An amount necessary to make a payment to the
county for the property taxes that would be payable but for the exemption is appropriated
from the general fund to the commissioner of revenue in fiscal year 2026. All prior year
penalties, interest, and costs are canceled.
new text end
new text begin
(b) By August 1, 2025, the auditor of the county in which the property is located must
certify to the commissioner of revenue the amount to be paid by the commissioner of revenue
to the county under paragraph (a). The commissioner of revenue must make this payment
by August 15, 2025.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 21. new text begin REPORT ON STRATEGIES TO REDUCE PROPERTY TAXES.
new text end
new text begin
No later than February 1, 2026, the commissioner of revenue must submit to the chairs
and ranking minority members of the legislative committees with jurisdiction over taxation
a report on reducing property taxes paid by homeowners and renters. The report must
describe the advantages and disadvantages of reducing property taxes through different
policy approaches, including:
new text end
new text begin
(1) homeowner property tax refunds under Minnesota Statutes, chapter 290A, and the
renter's credit under Minnesota Statutes, section 290.0693;
new text end
new text begin
(2) property tax market value exclusions;
new text end
new text begin
(3) property tax credits; or
new text end
new text begin
(4) simplification of property tax class rates.
new text end
ARTICLE 4
PROPERTY TAX AIDS
Section 1. new text begin 2023 AID PENALTY FORGIVENESS; CITY OF ALPHA.
new text end
new text begin
Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of Alpha
must receive its aid payment for calendar year 2023 under Minnesota Statutes, section
477A.013, that was withheld under Minnesota Statutes, section 477A.017, subdivision 3,
provided the state auditor certifies to the commissioner of revenue that the state auditor
received the annual financial reports for 2022 from the city of Alpha by June 1, 2025. The
commissioner of revenue must make a payment of $18,472 to the city of Alpha by June 30,
2025. An amount sufficient to pay aid under this section is appropriated in fiscal year 2025
from the general fund to the commissioner of revenue. This is a onetime appropriation.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2. new text begin BASE YEAR FORMULA AID FOR THE CITY OF BALDWIN.
new text end
new text begin
For the calculation under Minnesota Statutes, section 477A.013, subdivisions 8 and 9,
for aids payable in 2026, the city of Baldwin's aid for 2025, used in calculating aid payable
in 2026, is deemed to be equal to $2.85 multiplied by Baldwin's 2023 population.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2026 only.
new text end
Sec. 3. new text begin 2024 AID PENALTY FORGIVENESS; CITY OF ODIN.
new text end
new text begin
Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of Odin
must receive its aid payment for calendar year 2024 under Minnesota Statutes, section
477A.013, that was withheld under Minnesota Statutes, section 477A.017, subdivision 3,
and its small city assistance payment for calendar year 2024 under Minnesota Statutes,
section 162.145, that was withheld under Minnesota Statutes, section 162.145, subdivision
3, paragraph (c), provided the state auditor certifies to the commissioner of revenue that the
state auditor received the annual financial reports for 2023 from the city of Odin by June
1, 2025. The commissioner of revenue must make a payment of $39,909 to the city of Odin
by June 30, 2025.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 4. new text begin 2023 AID PENALTY FORGIVENESS; CITY OF STEWART.
new text end
new text begin
Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of Stewart
must receive its aid payment for calendar year 2023 under Minnesota Statutes, section
477A.013, that was withheld under Minnesota Statutes, section 477A.017, subdivision 3,
provided that the state auditor certifies to the commissioner of revenue that the state auditor
received the annual financial reports for 2022 from the city of Stewart by June 1, 2025. The
commissioner of revenue must make a payment of $87,501.50 to the city of Stewart by June
30, 2025. An amount sufficient to pay aid under this section is appropriated in fiscal year
2025 from the general fund to the commissioner of revenue. This is a onetime appropriation.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 5. new text begin 2024 AID PENALTY FORGIVENESS; CITY OF TROSKY.
new text end
new text begin
Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of Trosky
must receive its aid payment for calendar year 2024 under Minnesota Statutes, section
477A.013, that was withheld under Minnesota Statutes, section 477A.017, subdivision 3,
and its small city assistance payment for calendar year 2024 under Minnesota Statutes,
section 162.145, that was withheld under Minnesota Statutes, section 162.145, subdivision
3, paragraph (c), provided the state auditor certifies to the commissioner of revenue that the
state auditor received the annual financial reports for 2023 from the city of Trosky by June
1, 2025. The commissioner of revenue must make a payment of $25,003 to the city of Trosky
by June 30, 2025.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
ARTICLE 5
TAX INCREMENT FINANCING
Section 1.
Minnesota Statutes 2024, section 469.174, subdivision 10, is amended to read:
Subd. 10.
Redevelopment district.
(a) "Redevelopment district" means a type of tax
increment financing district consisting of a project, or portions of a project, within which
the authority finds by resolution that one or more of the following conditions, reasonably
distributed throughout the district, exists:
(1) parcels consisting of 70 percent of the area of the district are occupied by buildings,
streets, utilities, paved or gravel parking lots, or other similar structures and more than 50
percent of the buildings, not including outbuildings, are structurally substandard to a degree
requiring substantial renovation or clearance;
(2) the property consists of vacant, unused, underused, inappropriately used, or
infrequently used rail yards, rail storage facilities, or excessive or vacated railroad
rights-of-way;
(3) tank facilities, or property whose immediately previous use was for tank facilities,
as defined in section 115C.02, subdivision 15, if the tank facilities:
(i) have or had a capacity of more than 1,000,000 gallons;
(ii) are located adjacent to rail facilities; and
(iii) have been removed or are unused, underused, inappropriately used, or infrequently
used; deleted text begin or
deleted text end
(4) a qualifying disaster area, as defined in subdivision 10bdeleted text begin .deleted text end new text begin ; or
new text end
new text begin
(5) the property consists of vacant, unused, underused, inappropriately used, or
infrequently used property intended or recently occupied for commercial or industrial
purposes, and the property is located within the city of Minneapolis, Duluth, or St. Paul.
new text end
(b) For purposes of this subdivision, "structurally substandard" shall mean containing
defects in structural elements or a combination of deficiencies in essential utilities and
facilities, light and ventilation, fire protection including adequate egress, layout and condition
of interior partitions, or similar factors, which defects or deficiencies are of sufficient total
significance to justify substantial renovation or clearance.
(c) A building is not structurally substandard if it is in compliance with the building
code applicable to new buildings or could be modified to satisfy the building code at a cost
of less than 15 percent of the cost of constructing a new structure of the same square footage
and type on the site. The municipality may find that a building is not disqualified as
structurally substandard under the preceding sentence on the basis of reasonably available
evidence, such as the size, type, and age of the building, the average cost of plumbing,
electrical, or structural repairs, or other similar reliable evidence. The municipality may not
make such a determination without an interior inspection of the property, but need not have
an independent, expert appraisal prepared of the cost of repair and rehabilitation of the
building. An interior inspection of the property is not required, if the municipality finds that
(1) the municipality or authority is unable to gain access to the property after using its best
efforts to obtain permission from the party that owns or controls the property; and (2) the
evidence otherwise supports a reasonable conclusion that the building is structurally
substandard. Items of evidence that support such a conclusion include recent fire or police
inspections, on-site property tax appraisals or housing inspections, exterior evidence of
deterioration, or other similar reliable evidence. Written documentation of the findings and
reasons why an interior inspection was not conducted must be made and retained under
section 469.175, subdivision 3, clause (1). Failure of a building to be disqualified under the
provisions of this paragraph is a necessary, but not a sufficient, condition to determining
that the building is substandard.
(d) A parcel is deemed to be occupied by a structurally substandard building for purposes
of the finding under paragraph (a) or by the improvements described in paragraph (e) if all
of the following conditions are met:
(1) the parcel was occupied by a substandard building or met the requirements of
paragraph (e), as the case may be, within three years of the filing of the request for
certification of the parcel as part of the district with the county auditor;
(2) the substandard building or the improvements described in paragraph (e) were
demolished or removed by the authority or the demolition or removal was financed by the
authority or was done by a developer under a development agreement with the authority;
(3) the authority found by resolution before the demolition or removal that the parcel
was occupied by a structurally substandard building or met the requirements of paragraph
(e) and that after demolition and clearance the authority intended to include the parcel within
a district; and
(4) upon filing the request for certification of the tax capacity of the parcel as part of a
district, the authority notifies the county auditor that the original tax capacity of the parcel
must be adjusted as provided by section 469.177, subdivision 1, paragraph (f).
(e) For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities,
paved or gravel parking lots, or other similar structures unless 15 percent of the area of the
parcel contains buildings, streets, utilities, paved or gravel parking lots, or other similar
structures.
(f) For districts consisting of two or more noncontiguous areas, each area must qualify
as a redevelopment district under paragraph (a) to be included in the district, and the entire
area of the district must satisfy paragraph (a).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for districts for which the request for
certification was made after June 30, 2025.
new text end
Sec. 2.
Minnesota Statutes 2024, section 469.175, subdivision 3, is amended to read:
Subd. 3.
Municipality approval.
(a) A county auditor shall not certify the original net
tax capacity of a tax increment financing district until the tax increment financing plan
proposed for that district has been approved by the municipality in which the district is
located. If an authority that proposes to establish a tax increment financing district and the
municipality are not the same, the authority shall apply to the municipality in which the
district is proposed to be located and shall obtain the approval of its tax increment financing
plan by the municipality before the authority may use tax increment financing. The
municipality shall approve the tax increment financing plan only after a public hearing
thereon after published notice in a newspaper of general circulation in the municipality at
least once not less than ten days nor more than 30 days prior to the date of the hearing. The
published notice must include a map of the area of the district from which increments may
be collected and, if the project area includes additional area, a map of the project area in
which the increments may be expended. The hearing may be held before or after the approval
or creation of the project or it may be held in conjunction with a hearing to approve the
project.
(b) Before or at the time of approval of the tax increment financing plan, the municipality
shall make the following findings, and shall set forth in writing the reasons and supporting
facts for each determination:
(1) that the proposed tax increment financing district is a redevelopment district, a
renewal or renovation district, a housing district, a soils condition district, or an economic
development district; if the proposed district is a redevelopment district or a renewal or
renovation district, the reasons and supporting facts for the determination that the district
meets the criteria of section 469.174, subdivision 10, paragraph (a), clauses (1) and (2), or
subdivision 10a, must be documented in writing and retained and made available to the
public by the authority until the district has been terminated;
(2) that, in the opinion of the municipality:
(i) the proposed development or redevelopment would not reasonably be expected to
occur solely through private investment within the reasonably foreseeable future; and
(ii) the increased market value of the site that could reasonably be expected to occur
without the use of tax increment financing would be less than the increase in the market
value estimated to result from the proposed development after subtracting the present value
of the projected tax increments for the maximum duration of the district permitted by the
plan. The requirements of this item do not apply if the district is a housing districtnew text begin or if the
district is a redevelopment district determined to meet the criteria of section 469.174,
subdivision 10, paragraph (a), clause (5)new text end ;
(3) that the tax increment financing plan conforms to the general plan for the development
or redevelopment of the municipality as a whole;
(4) that the tax increment financing plan will afford maximum opportunity, consistent
with the sound needs of the municipality as a whole, for the development or redevelopment
of the project by private enterprise;
(5) that the municipality elects the method of tax increment computation set forth in
section 469.177, subdivision 3, paragraph (b), if applicable.
(c) When the municipality and the authority are not the same, the municipality shall
approve or disapprove the tax increment financing plan within 60 days of submission by
the authority. When the municipality and the authority are not the same, the municipality
may not amend or modify a tax increment financing plan except as proposed by the authority
pursuant to subdivision 4. Once approved, the determination of the authority to undertake
the project through the use of tax increment financing and the resolution of the governing
body shall be conclusive of the findings therein and of the public need for the financing.
(d) For a district that is subject to the requirements of paragraph (b), clause (2), item
(ii), the municipality's statement of reasons and supporting facts must include all of the
following:
(1) an estimate of the amount by which the market value of the site will increase without
the use of tax increment financing;
(2) an estimate of the increase in the market value that will result from the development
or redevelopment to be assisted with tax increment financing; and
(3) the present value of the projected tax increments for the maximum duration of the
district permitted by the tax increment financing plan.
(e) For purposes of this subdivision, "site" means the parcels on which the development
or redevelopment to be assisted with tax increment financing will be located.
(f) Before or at the time of approval of the tax increment financing plan for a district to
be used to fund a workforce housing project under section 469.176, subdivision 4c, paragraph
(d), the municipality shall make the following findings and set forth in writing the reasons
and supporting facts for each determination:
(1) the city is located outside of the metropolitan area, as defined in section 473.121,
subdivision 2;
(2) the average vacancy rate for rental housing located in the municipality and in any
statutory or home rule charter city located within 15 miles or less of the boundaries of the
municipality has been three percent or less for at least the immediately preceding two-year
period;
(3) at least one business located in the municipality or within 15 miles of the municipality
that employs a minimum of 20 full-time equivalent employees in aggregate has provided a
written statement to the municipality indicating that the lack of available rental housing has
impeded the ability of the business to recruit and hire employees; and
(4) the municipality and the development authority intend to use increments from the
district for the development of rental housing to serve employees of businesses located in
the municipality or surrounding area.
(g) The county auditor may not certify the original tax capacity of an economic
development tax increment financing district for a workforce housing project if the request
for certification is made after June 30, 2027.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for districts for which the request for
certification was made after June 30, 2025.
new text end
Sec. 3.
Minnesota Statutes 2024, section 469.176, subdivision 4n, is amended to read:
Subd. 4n.
Temporary use of increment authorized.
(a) Notwithstanding any other
provision of this section or any other law to the contrary, except the requirements to pay
bonds to which increments are pledged, the authority may elect, by resolution, to transfer
unobligated increment for one or more of the following purposes:
(1) to provide improvements, loans, interest rate subsidies, or assistance in any form to
private development consisting of the construction or substantial rehabilitation of buildings
and ancillary facilities, if doing so will create or retain jobs in the state, including construction
jobs, and the construction commences before December 31, deleted text begin 2025deleted text end new text begin 2026new text end , and would not have
commenced before that date without the assistance; or
(2) to make an equity or similar investment in a corporation, partnership, or limited
liability company that the authority determines is necessary to make construction of a
development that meets the requirement of clause (1) financially feasible.
(b) For each calendar year for which transfers are permitted under this subdivision, the
maximum transfer equals the excess of the district's unobligated increment which includes
any increment not required for payments of obligations due during six months following
the transfer on outstanding bonds, binding contracts, and other outstanding financial
obligations of the district to which the district's increment is pledged.
(c) The authority may transfer increments permitted under this subdivision after creating
a written spending plan that authorizes the authority to take the action described in paragraph
(a) and details the use of transferred incrementnew text begin , including the use of interest earned on
transferred incrementnew text end . Additionally, the municipality must approve the authority's spending
plan after holding a public hearing. The municipality must publish notice of the hearing in
a newspaper of general circulation in the municipality and on the municipality's public
website at least ten days, but not more than 30 days, prior to the date of the hearing.new text begin Prior
to December 31, 2025, the municipality may amend a written spending plan to extend the
date by which transferred increment may be used, and to authorize use of interest earned
on transferred increment, after holding a public hearing as required in this section. A signed
and approved copy of the amended plan must be filed with the state auditor. Interest earned
on transferred increment may be treated the same as transferred increment regardless of
whether a municipality amends a spending plan.
new text end
(d) Increment that is improperly retained, received, spent, or transferred is not eligible
for transfer under this subdivision.
(e) An authority making a transfer under this subdivision must provide to the Office of
the State Auditor a copy of the spending plan approved and signed by the municipality.
(f) The authority to transfer increments under this subdivision expires on December 31,
2022. All transferred increments must be spentnew text begin , loaned, invested, or otherwise irrevocably
committednew text end by December 31, 2025new text begin , or by December 31, 2026, if authorized by an amended
spending plan pursuant to paragraph (c)new text end . Increment not spentnew text begin , loaned, invested, or otherwise
irrevocably committednew text end by deleted text begin December 31, 2025deleted text end new text begin the applicable deadline in the preceding
sentencenew text end , must be returned to the district.new text begin The requirement to return increment to the district
includes any proceeds, principal, and interest received on loans of transferred increment;
interest or investment earnings on transferred increment; or other repayments or returns of
transferred increment defined as tax increment under section 469.174, subdivision 25, that
remain in the funds or accounts of the authority or municipality on the applicable deadline,
or that are subsequently received by the authority or municipality.new text end If the district has already
been decertifiednew text begin when increment is returned under this paragraphnew text end , the increment shall be
treated as excess increment and distributed as provided in subdivision 2, paragraph (c),
clause (4).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 4.
Minnesota Statutes 2024, section 469.1761, subdivision 1, is amended to read:
Subdivision 1.
Requirement imposed.
(a) In order for a tax increment financing district
to qualify as a housing district:
(1) the income limitations provided in this section must be satisfiednew text begin if the district is
located in a metropolitan county as defined in section 473.121, subdivision 4new text end ; and
(2) no more than 20 percent of the square footage of buildings that receive assistance
from tax increments may consist of commercial, retail, or other nonresidential uses.
(b) The requirements imposed by this section apply to property receiving assistance
financed with tax increments, including interest reduction, land transfers at less than the
authority's cost of acquisition, utility service or connections, roads, parking facilities, or
other subsidies. The provisions of this section do not apply to districts located in a targeted
area as defined in section 462C.02, subdivision 9, clause (e).
(c) For purposes of the requirements of paragraph (a), the authority may elect to treat
an addition to an existing structure as a separate building if:
(1) construction of the addition begins more than three years after construction of the
existing structure was completed; and
(2) for an addition that does not meet the requirements of paragraph (a), clause (2), if it
is treated as a separate building, the addition was not contemplated by the tax increment
financing plan which includes the existing structure.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for districts for which the request for
certification was made after June 30, 2025.
new text end
Sec. 5.
Minnesota Statutes 2024, section 469.1761, subdivision 3, is amended to read:
Subd. 3.
Rental property.
For residential rental property, the property must satisfy the
income requirements for a qualified deleted text begin residential rentaldeleted text end new text begin low-income housingnew text end project as defined
in section deleted text begin 142(d)deleted text end new text begin 42(g)new text end of the Internal Revenue Code. The requirements of this subdivision
apply for the duration of the tax increment financing district.
Sec. 6.
Minnesota Statutes 2024, section 469.1763, subdivision 2, is amended to read:
Subd. 2.
Expenditures outside district.
(a) For each tax increment financing district,
an amount equal to at least 75 percent of the total revenue derived from tax increments paid
by properties in the district must be expended on activities in the district or to pay bonds,
to the extent that the proceeds of the bonds were used to finance activities in the district or
to pay, or secure payment of, debt service on credit enhanced bonds. For districts, other
than redevelopment districts for which the request for certification was made after June 30,
1995, the in-district percentage for purposes of the preceding sentence is 80 percent. Not
more than 25 percent of the total revenue derived from tax increments paid by properties
in the district may be expended, through a development fund or otherwise, on activities
outside of the district but within the defined geographic area of the project except to pay,
or secure payment of, debt service on credit enhanced bonds. For districts, other than
redevelopment districts for which the request for certification was made after June 30, 1995,
the pooling percentage for purposes of the preceding sentence is 20 percent. The revenues
derived from tax increments paid by properties in the district that are expended on costs
under section 469.176, subdivision 4h, may be deducted first before calculating the
percentages that must be expended within and without the district.
(b) In the case of a housing district, a housing project, as defined in section 469.174,
subdivision 11, is an activity in the district.
(c) All administrative expenses are considered to be expenditures for activities outside
of the district, except that if the only expenses for activities outside of the district under this
subdivision are for the purposes described in paragraph (d), administrative expenses will
be considered as expenditures for activities in the district.
(d) The authority may elect, in the tax increment financing plan for the district, to increase
by up to deleted text begin tendeleted text end new text begin 15new text end percentage points the permitted amount of expenditures for activities located
outside the geographic area of the district under paragraph (a). As permitted by section
469.176, subdivision 4k, the expenditures, including the permitted expenditures under
paragraph (a), need not be made within the geographic area of the project. Expenditures
that meet the requirements of this paragraph are legally permitted expenditures of the district,
notwithstanding section 469.176, subdivisions 4b, 4c, and 4j. To qualify for the increase
under this paragraph, the expenditures must:
(1) be used exclusively to assist housing that meets the requirement for a qualified
low-income building, as that term is used in section 42 of the Internal Revenue Code; and
(2) not exceed the qualified basis of the housing, as defined under section 42(c) of the
Internal Revenue Code, less the amount of any credit allowed under section 42 of the Internal
Revenue Code; and
(3) be used to:
(i) acquire and prepare the site of the housing;
(ii) acquire, construct, or rehabilitate the housing; or
(iii) make public improvements directly related to the housing; or
(4) be used to develop housing:
(i) if the market value of the housing does not exceed the lesser of:
(A) 150 percent of the average market value of single-family homes in that municipality;
or
(B) $200,000 for municipalities located in the metropolitan area, as defined in section
473.121, or $125,000 for all other municipalities; and
(ii) if the expenditures are used to pay the cost of site acquisition, relocation, demolition
of existing structures, site preparation, and pollution abatement on one or more parcels, if
the parcel contains a residence containing one to four family dwelling units that has been
vacant for six or more months and is in foreclosure as defined in section 325N.10, subdivision
7, but without regard to whether the residence is the owner's principal residence, and only
after the redemption period has expired; deleted text begin or
deleted text end
(5) new text begin be used new text end to assist owner-occupied housing that meets the requirements of section
469.1761, subdivision 2new text begin ; or
new text end
new text begin (6) be used for transfer to a housing trust fund established pursuant to section 462C.16
for expenditure in accordance with subdivision 7new text end .
(e) The authority under paragraph (d), clause (4), expires on December 31, 2016.
Increments may continue to be expended under this authority after that date, if they are used
to pay bonds or binding contracts that would qualify under subdivision 3, paragraph (a), if
December 31, 2016, is considered to be the last date of the five-year period after certification
under that provision.
(f) For purposes of determining whether the minimum percentage of expenditures for
activities in the district and maximum percentages of expenditures allowed on activities
outside the district have been met under this subdivision, any amounts returned to the county
auditor as excess increment, as returned increment under subdivision 4, paragraph (g), or
as remedies under section 469.1771, subdivision 2, shall first be subtracted from the total
revenues derived from tax increments paid by properties in the district. Any other amounts
returned to the county auditor for purposes other than a remedy under section 469.1771,
subdivision 3, are considered to be expenditures for activities in the district.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 7.
Minnesota Statutes 2024, section 469.1763, subdivision 3, is amended to read:
Subd. 3.
Five-year rule.
(a) Revenues derived from tax increments paid by properties
in the district that are expended on an activity within the district will instead be considered
to have been expended on an activity outside the district for purposes of subdivision 2 unless:
(1) before or within five years after certification of the district, the revenues are actually
paid to a third party with respect to the activity;
(2) bonds, the proceeds of which must be used to finance the activity, are issued and
sold to a third party before or within five years after certification of the district, the revenues
are spent to repay the bonds, and the proceeds of the bonds either are, on the date of issuance,
reasonably expected to be spent before the end of the later of (i) the five-year period, or (ii)
a reasonable temporary period within the meaning of the use of that term under section
148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required reserve
or replacement fund;
(3) binding contracts with a third party are entered into for performance of the activity
before or within five years after certification of the district and the revenues are spent under
the contractual obligation;
(4) costs with respect to the activity are paid before or within five years after certification
of the district and the revenues are spent to reimburse a party for payment of the costs,
including interest on unreimbursed costs; or
(5) revenues are spent for housing purposes as described by subdivision 2, paragraph
(b).
(b) For purposes of this subdivision, bonds include subsequent refunding bonds if the
original refunded bonds meet the requirements of paragraph (a), clause (2).
(c) For a redevelopment district or a renewal and renovation district certified after June
30, 2003, and before April 20, 2009, the five-year periods described in paragraph (a) are
extended to ten years after certification of the district. For a redevelopment district certified
after April 20, 2009, and before June 30, 2012, the five-year periods described in paragraph
(a) are extended to eight years after certification of the district. This extension is provided
primarily to accommodate delays in development activities due to unanticipated economic
circumstances.
(d) For a redevelopment district that was certified after December 31, 2017, and before
June 30, 2020, the five-year periods described in paragraph (a) are extended to eight years
after certification of the district.
new text begin
(e) For any district certified after June 30, 2025, and not located in a metropolitan county,
the five-year periods described in paragraph (a) are extended to ten years after certification
of the district. For purposes of this paragraph, "metropolitan county" has the meaning given
in section 473.121, subdivision 4.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for districts for which the request for
certification was made after June 30, 2025.
new text end
Sec. 8.
Minnesota Statutes 2024, section 469.1763, subdivision 4, is amended to read:
Subd. 4.
Use of revenues for decertification.
(a) Beginning with the sixth year following
certification of the district, or beginning with the year following the extended period for
districts whose five-year period is extended under subdivision 3, deleted text begin paragraphsdeleted text end new text begin paragraphnew text end (c)
deleted text begin anddeleted text end new text begin ,new text end (d),new text begin or (e),new text end a district must be decertified when the product of the applicable in-district
percentage multiplied by the cumulative revenues derived from tax increments paid by
properties in the district that have been collected through the end of the calendar year, equals
or exceeds an amount sufficient to pay the following:
(1) any costs and obligations described in subdivision 3, paragraphs (a) and (b), excluding
those under a qualifying pay-as-you-go contract and note;
(2) any accrued interest on the costs and obligations in clause (1), payable in accordance
with the terms thereof; and
(3) any administrative expenses falling within the exception in subdivision 2, paragraph
(c).
(b) For districts with an outstanding qualifying pay-as-you-go contract and note, the
required decertification under paragraph (a) is deferred until the end of the remaining term
of the last outstanding qualifying pay-as-you-go contract and note, and the applicable
in-district percentage of cumulative revenues derived from tax increments paid by properties
in the district are sufficient to pay the obligations identified in subdivision 3, paragraphs
(a) and (b), provided that the deferral shall not exceed the district's duration limit under
section 469.176. During the deferral, beginning at the time paragraph (a) would otherwise
require decertification, the authority must annually either:
(1) remove from the district, by the end of the year, all parcels that will no longer have
their tax increment revenue pledged or subject to a qualifying pay-as-you-go contract and
note or other costs and obligations described in subdivision 3, paragraphs (a) and (b), after
the end of the year; or
(2) use the applicable in-district percentage of revenues derived from tax increments
paid by those parcels to prepay an outstanding qualifying pay-as-you-go contract and note
of the district or other costs and obligations described in subdivision 3, paragraphs (a) and
(b), or to accumulate and use revenues derived from tax increments paid by those parcels
as permitted under paragraph (i).
The authority must remove any parcels as required by this paragraph by modification
of the tax increment financing plan and notify the county auditor of the removed parcels by
the end of the same calendar year. Notwithstanding section 469.175, subdivision 4,
paragraphs (b), clause (1), and (e), the notice, discussion, public hearing, and findings
required for approval of the original plan are not required for such a modification.
(c) Notwithstanding paragraph (a) or (b), if tax increment was pledged prior to August
1, 2023, to a bond other than a pay-as-you-go contract and note or interfund loan, and the
proceeds of the bond were used solely or in part to pay authorized costs for activities outside
the district, the requirement to decertify under paragraph (a) or remove parcels under
paragraph (b) shall not apply prior to the bond being fully paid or defeased.
(d) For purposes of this subdivision, "applicable in-district percentage" means the
percentage of tax increment revenue that is restricted for expenditures within the district,
as determined under subdivision 2, paragraphs (a) and (d), for the district.
(e) For purposes of this subdivision, "qualifying pay-as-you-go contract and note" means
a pay-as-you-go contract and note that is considered to be for activities within the district
under subdivision 3, paragraph (a).
(f) For purposes of this subdivision, the reference in paragraph (a) to cumulative revenues
derived from tax increments paid by properties in the district through the end of the calendar
year shall include any final settlement distributions made in the following January. For
purposes of the calculation in paragraph (a), any amounts returned to the county auditor as
excess increment or as remedies under section 469.1771, subdivision 2, shall first be
subtracted from the cumulative revenues derived from tax increments paid by properties in
the district.
(g) The timing and implementation of a decertification pursuant to paragraphs (a) and
(b) shall be subject to the following:
(1) when a decertification is required under paragraph (a) and not deferred under
paragraph (b), the authority must, as soon as practical and no later than the final settlement
distribution date of January 25 as identified in section 276.111 for the property taxes payable
in the calendar year identified in paragraph (a), make the decertification by resolution
effective for the end of the calendar year identified in paragraph (a), and communicate the
decertification to the county auditor;
(2) when a decertification is deferred under paragraph (b), the authority must, by
December 31 of the year in which the last qualifying pay-as-you-go contract and note reaches
termination, make the decertification by resolution effective for the end of that calendar
year and communicate the decertification to the county auditor;
(3) if the county auditor is unable to prevent tax increments from being calculated for
taxes payable in the year following the year for which the decertification is made effective,
the county auditor may redistribute the tax increments in the same manner as excess
increments under section 469.176, subdivision 2, paragraph (c), clause (4), without first
distributing them to the authority; and
(4) if tax increments are distributed to an authority for a taxes payable year after the year
for which the decertification was required to be effective, the authority must return the
amount of the distributions to the county auditor for redistribution in the same manner as
excess increments under section 469.176, subdivision 2, paragraph (c), clause (4).
(h) The provisions of this subdivision do not apply to a housing district.
(i) Notwithstanding anything to the contrary in paragraph (a) or (b), if an authority has
made the election in the tax increment financing plan for the district under subdivision 2,
paragraph (d), then the requirement to decertify under paragraph (a) or remove parcels under
paragraph (b) shall not apply prior to such time that the accumulated revenues derived from
tax increments paid by properties in the district that are eligible to be expended for housing
purposes described under subdivision 2, paragraph (d), equals the lesser of the amount the
authority is permitted to expend for housing purposes described under subdivision 2,
paragraph (d), or the amount authorized for such purposes in the tax increment financing
plan. Increment revenues collected after the district would have decertified under paragraph
(a) or from parcels which otherwise would be subject to removal under paragraph (b), absent
the exception of this paragraph, shall be used solely for housing purposes as described in
subdivision 2, paragraph (d).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for districts for which the request for
certification was made after June 30, 2025.
new text end
Sec. 9.
Minnesota Statutes 2024, section 469.1763, is amended by adding a subdivision
to read:
new text begin Subd. 7. new text end
new text begin Increment transferred to a housing trust fund. new text end
new text begin
(a) A city making a transfer
under subdivision 2, paragraph (d), clause (6), must allocate the transferred increment in
conformity with the city's ordinance or policy establishing the division of funds for rental
and homeownership distributions. Funds distributed under this subdivision must follow the
following income requirements:
new text end
new text begin
(1) for funds used for rental housing purposes, the funds must benefit households at or
below 60 percent of area median income; and
new text end
new text begin
(2) for funds used for homeownership housing purposes, the funds must benefit
households at or below 120 percent of area median income.
new text end
new text begin
(b) Any increment transferred for use pursuant to this subdivision is no longer considered
increment within the meaning of section 469.174, subdivision 25, and is not subject to the
annual reporting requirements imposed by section 469.175.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 10.
Minnesota Statutes 2024, section 469.177, subdivision 1, is amended to read:
Subdivision 1.
Original net tax capacity.
(a) Upon or after adoption of a tax increment
financing plan, the auditor of any county in which the district is situated shall, upon request
of the authority, certify the original net tax capacity of the tax increment financing district
and that portion of the district overlying any subdistrict as described in the tax increment
financing plan and shall certify in each year thereafter the amount by which the original net
tax capacity has increased or decreased as a result of a change in tax exempt status of
property within the district and any subdistrict, reduction or enlargement of the district or
changes pursuant to subdivision 4. The auditor shall certify the amount within 30 days after
receipt of the request and sufficient information to identify the parcels included in the district.
The certification relates to the taxes payable year as provided in subdivision 6.
(b) If the classification under section 273.13 of property located in a district changes to
a classification that has a different assessment ratio, the original net tax capacity of that
property must be redetermined at the time when its use is changed as if the property had
originally been classified in the same class in which it is classified after its use is changed.
(c) The amount to be added to the original net tax capacity of the district as a result of
previously tax exempt real property within the district becoming taxable equals the net tax
capacity of the real property as most recently assessed pursuant to information reported to
the commissioner under section 270C.85, subdivision 2, clause (4), or, if that assessment
was made more than one year prior to the date of title transfer rendering the property taxable,
the net tax capacity assessed by the assessor at the time of the transfer. If improvements are
made to tax exempt property after the municipality approves the district and before the
parcel becomes taxable, the assessor shall, at the request of the authority, separately assess
the estimated market value of the improvements. If the property becomes taxable, the county
auditor shall add to original net tax capacity, the net tax capacity of the parcel, excluding
the separately assessed improvements. If substantial taxable improvements were made to
a parcel after certification of the district and if the property later becomes tax exempt, in
whole or part, as a result of the authority acquiring the property through foreclosure or
exercise of remedies under a lease or other revenue agreement or as a result of tax forfeiture,
the amount to be added to the original net tax capacity of the district as a result of the
property again becoming taxable is the amount of the parcel's value that was included in
original net tax capacity when the parcel was first certified. The amount to be added to the
original net tax capacity of the district as a result of enlargements equals the net tax capacity
of the added real property as most recently certified by the commissioner of revenue as of
the date of modification of the tax increment financing plan pursuant to section 469.175,
subdivision 4.
(d) If the net tax capacity of a property increases because the property no longer qualifies
under the Minnesota Agricultural Property Tax Law, section 273.111; the Minnesota Open
Space Property Tax Law, section 273.112; or the Metropolitan Agricultural Preserves Act,
chapter 473H, the Rural Preserve Property Tax Program under section 273.114, or because
platted, unimproved property is improved or market value is increased after approval of the
plat under section 273.11, subdivision 14a or 14b, the increase in net tax capacity must be
added to the original net tax capacity. If the net tax capacity of a property increases because
the property no longer qualifies for the homestead market value exclusion under section
273.13, subdivision 35, the increase in net tax capacity must be added to original net tax
capacity if the original construction of the affected home was completed before the date the
assessor certified the original net tax capacity of the district.
(e) The amount to be subtracted from the original net tax capacity of the district as a
result of previously taxable real property within the district becoming tax exempt or
qualifying in whole or part for an exclusion from taxable market value, or a reduction in
the geographic area of the district, shall be the amount of original net tax capacity initially
attributed to the property becoming tax exempt, being excluded from taxable market value,
or being removed from the district. If the net tax capacity of property located within the tax
increment financing district is reduced by reason of a court-ordered abatement, stipulation
agreement, voluntary abatement made by the assessor or auditor or by order of the
commissioner of revenue, the reduction shall be applied to the original net tax capacity of
the district when the property upon which the abatement is made has not been improved
since the date of certification of the district and to the captured net tax capacity of the district
in each year thereafter when the abatement relates to improvements made after the date of
certification. The county auditor may specify reasonable form and content of the request
for certification of the authority and any modification thereof pursuant to section 469.175,
subdivision 4.
(f) If a parcel of property contained a substandard building or improvements described
in section 469.174, subdivision 10, paragraph (e), that were demolished or removed and if
the authority elects to treat the parcel as occupied by a substandard building under section
469.174, subdivision 10, paragraph (b), or by improvements under section 469.174,
subdivision 10, paragraph (e), the auditor shall certify the original net tax capacity of the
parcel using the greater of (1) the current net tax capacity of the parcel, or (2) the estimated
market value of the parcel for the year in which the building or other improvements were
demolished or removed, but applying the classification rates for the current year.
(g) For a redevelopment district qualifying under section 469.174, subdivision 10,
paragraph (a), clause (4), as a qualified disaster area, the auditor shall certify the value of
the land as the original tax capacity for any parcel in the district that contains a building
that suffered substantial damage as a result of the disaster or emergency.
new text begin
(h) For a redevelopment district qualifying under section 469.174, subdivision 10,
paragraph (a), clause (5), as a property with vacant or underused commercial or industrial
buildings, the auditor shall certify the value of the land as the original tax capacity for any
parcel in the district that contains a commercial or industrial building determined to be
vacant or underused.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for districts for which the request for
certification was made after June 30, 2025.
new text end
Sec. 11.
Laws 2010, chapter 389, article 7, section 22, as amended by Laws 2011, chapter
112, article 11, section 16, is amended to read:
Sec. 22. CITY OF RAMSEY; TAX INCREMENT FINANCING DISTRICT;
SPECIAL RULES.
(a) If the city of Ramsey or an authority of the city elects upon the adoption of a tax
increment financing plan for a district, the rules under this section apply to a redevelopment
tax increment financing district established by the city or an authority of the city. The
redevelopment tax increment district includes parcels within the area bounded on the east
by Ramsey Boulevard, on the north by Bunker Lake Boulevard as extended west to Llama
Street, on the west by Llama Street, and on the south by a line running parallel to and 600
feet south of the southerly right-of-way for U.S. Highway 10, but including Parcels
28-32-25-43-0007 and 28-32-25-34-0002 in their entirety, and excluding the Anoka County
Regional Park property in its entirety. A parcel within this area that is included in a tax
increment financing district that was certified before the date of enactment of this act may
be included in the district created under this act if the initial district is decertified.
(b) The requirements for qualifying a redevelopment tax increment district under
Minnesota Statutes, section 469.174, subdivision 10, do not apply to the parcels located
within the district.
(c) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.
Eligible expenditures within the district include but are not limited to (1) the city's share of
the costs necessary to provide for the construction of the Northstar Transit Station and
related infrastructure, including structured parking, a pedestrian overpass, and roadway
improvements, (2) the cost of land acquired by the city or the housing and redevelopment
authority in and for the city of Ramsey within the district prior to the establishment of the
district, and (3) the cost of public improvements installed within the tax increment financing
district prior to the establishment of the district.
(d) The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities
must be undertaken within a five-year period from the date of certification of a tax increment
financing district, is considered to be met for the district if the activities were undertaken
within ten years from the date of certification of the district.
(e) Except for administrative expenses, the in-district percentage for purposes of the
restriction on pooling under Minnesota Statutes, section 469.1763, subdivision 2, for this
district is 100 percent.
(f) The requirement of Minnesota Statutes, section 469.177, subdivision 4, does not
apply to Parcels 28-32-25-42-0021 and 28-32-25-41-0014, where development occurred
after enactment of Laws 2010, chapter 389, article 7, section 22, and prior to adoption of
the tax increment financing plan for the district.
new text begin
(g) The requirement of Minnesota Statutes, section 469.178, subdivision 7, paragraph
(b), is considered to be met for the district if the city adopts interfund loan resolutions
reflecting the terms and conditions required by Minnesota Statutes, section 469.178,
subdivision 7, paragraph (d), by December 31, 2025.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the city of Ramsey and its
chief clerical officer comply with the requirements of Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end
Sec. 12.
Laws 2013, chapter 143, article 9, section 21, is amended to read:
Sec. 21. CITY OF MAPLEWOOD; TAX INCREMENT FINANCING DISTRICT;
SPECIAL RULES.
(a) If the city of Maplewood elects, upon the adoption of a tax increment financing plan
for a district, the rules under this section apply to one or more redevelopment tax increment
financing districts established by the city or the economic development authority of the city.
The area within which the redevelopment tax increment districts may be created is parcel
362922240002 (the "parcel") or any replatted parcels constituting a part of the parcel and
the adjacent rights-of-way. For purposes of this section, the parcel is the "3M Renovation
and Retention Project Area" or "project area."
(b) The requirements for qualifying redevelopment tax increment districts under
Minnesota Statutes, section 469.174, subdivision 10, do not apply to the parcel, which is
deemed eligible for inclusion in a redevelopment tax increment district.
(c) The 90 percent rule under Minnesota Statutes, section 469.176, subdivision 4j, does
not apply to the parcel.
(d) deleted text begin The expenditures outside district rule under Minnesota Statutes, section 469.1763,
subdivision 2, does not apply;deleted text end The five-year rule under Minnesota Statutes, section 469.1763,
subdivision 3, is extended to ten yearsdeleted text begin ;deleted text end and expenditures must only be made within the
project areanew text begin or the area bounded by State Highway 61 to the West, Interstate Highway 694
to the North, McKnight Road to the East, and a line extending from Frost Avenue through
to McKnight Road to the Southnew text end .
(e) If, after one year from the date of certification of the original net tax capacity of the
tax increment district, no demolition, rehabilitation, or renovation of property has been
commenced on a parcel located within the tax increment district, no additional tax increment
may be taken from that parcel, and the original net tax capacity of the parcel shall be excluded
from the original net tax capacity of the tax increment district. If 3M Company subsequently
commences demolition, rehabilitation, or renovation, the authority shall certify to the county
auditor that the activity has commenced, and the county auditor shall certify the net tax
capacity thereof as most recently certified by the commissioner of revenue and add it to the
original net tax capacity of the tax increment district. The authority must submit to the
county auditor evidence that the required activity has taken place for each parcel in the
district.
(f) The authority to approve a tax increment financing plan and to establish a tax
increment financing district under this section expires December 31, 2018.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the city of Maplewood and
its chief clerical officer comply with the requirements of Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end
Sec. 13.
Laws 2014, chapter 308, article 6, section 9, as amended by Laws 2017, First
Special Session chapter 1, article 6, section 12, is amended to read:
Sec. 9. CITY OF MAPLE GROVE; TAX INCREMENT FINANCING DISTRICT.
Subdivision 1.
Definitions.
(a) For the purposes of this section, the following terms have
the meanings given them.
(b) "City" means the city of Maple Grove.
(c) "Project area" means all or a portion of the area in the city commencing at a point
130 feet East and 120 feet North of the southwest corner of the Southeast Quarter of Section
23, Township 119, Range 22, Hennepin County, said point being on the easterly right-of-way
line of Hemlock Lane; thence northerly along said easterly right-of-way line of Hemlock
Lane to a point on the west line of the east one-half of the Southeast Quarter of section 23,
thence south along said west line a distance of 1,200 feet; thence easterly to the east line of
Section 23, 1,030 feet North from the southeast corner thereof; thence South 74 degrees
East 1,285 feet; thence East a distance of 1,000 feet; thence North 59 degrees West a distance
of 650 feet; thence northerly to a point on the northerly right-of-way line of 81st Avenue
North, 650 feet westerly measured at right angles, from the east line of the Northwest Quarter
of Section 24; thence North 13 degrees West a distance of 795 feet; thence West to the west
line of the Southeast Quarter of the Northwest Quarter of Section 24; thence North 55
degrees West to the south line of the Northwest Quarter of the Northwest Quarter of Section
24; thence West along said south line to the east right-of-way line of Zachary Lane; thence
North along the east right-of-way line of Zachary Lane to the southwest corner of Lot 1,
Block 1, Metropolitan Industrial Park 5th Addition; thence East along the south line of said
Lot 1 to the northeast corner of Outlot A, Metropolitan Industrial Park 5th Addition; thence
South along the east line of said Outlot A and its southerly extension to the south right-of-way
line of County State-Aid Highway (CSAH) 109; thence easterly along the south right-of-way
line of CSAH 109 to the east line of the Northwest Quarter of the Northeast Quarter of
Section 24; thence South along said east line to the north line of the South Half of the
Northeast Quarter of Section 24; thence East along said north line to the westerly right-of-way
line of Jefferson Highway North; thence southerly along the westerly right-of-way line of
Jefferson Highway to the centerline of CSAH 130; thence continuing South along the west
right-of-way line of Pilgrim Lane North to the westerly extension of the north line of Outlot
A, Park North Fourth Addition; thence easterly along the north line of Outlot A, Park North
Fourth Addition to the northeast corner of said Outlot A; thence southerly along the east
line of said Outlot A to the southeast corner of said Outlot A; thence easterly along the south
line of Lot 1, Block 1, Park North Fourth Addition to the westerly right-of-way line of State
Highway 169; thence southerly, southwesterly, westerly, and northwesterly along the
westerly right-of-way line of State Highway 169 and the northerly right-of-way line of
Interstate 694 to its intersection with the southerly extension of the easterly right-of-way
line of Zachary Lane North; thence northerly along the easterly right-of-way line of Zachary
Lane North and its northerly extension to the north right-of-way line of CSAH 130; thence
westerly, southerly, northerly, southwesterly, and northwesterly to the point of beginning
and there terminating, provided that the project area includes the rights-of-way for all present
and future highway interchanges abutting the area described in this paragraph, and may
include any additional property necessary to cause the property included in the tax increment
financing district to consist of complete parcels.
(d) "Soil deficiency district" means a type of tax increment financing district consisting
of a portion of the project area in which the city finds by resolution that the following
conditions exist:
(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in
the district require substantial filling, grading, or other physical preparation for use; and
(2) the estimated cost of the physical preparation under clause (1), but excluding costs
directly related to roads as defined in Minnesota Statutes, section 160.01, and local
improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, clauses
(1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land before
completion of the preparation.
Subd. 2.
Special rules.
(a) If the city elects, upon the adoption of the tax increment
financing plan for a district, the rules under this section apply to a redevelopment district,
renewal and renovation district, soil condition district, or soil deficiency district established
by the city or a development authority of the city in the project area.
(b) Prior to or upon the adoption of the first tax increment plan subject to the special
rules under this subdivision, the city must find by resolution that parcels consisting of at
least 80 percent of the acreage of the project area, excluding street and railroad rights-of-way,
are characterized by one or more of the following conditions:
(1) peat or other soils with geotechnical deficiencies that impair development of
commercial buildings or infrastructure;
(2) soils or terrain that require substantial filling in order to permit the development of
commercial buildings or infrastructure;
(3) landfills, dumps, or similar deposits of municipal or private waste;
(4) quarries or similar resource extraction sites;
(5) floodway; and
(6) substandard buildings, within the meaning of Minnesota Statutes, section 469.174,
subdivision 10.
(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by the
relevant condition if at least 70 percent of the area of the parcel contains the relevant
condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by
substandard buildings if substandard buildings occupy at least 30 percent of the area of the
parcel.
(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to deleted text begin eightdeleted text end new text begin 13new text end years for any district, and Minnesota Statutes, section 469.1763,
subdivision 4, does not apply to any district.
(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section 469.1763,
subdivision 2, paragraph (a), not more than 40 percent of the total revenue derived from tax
increments paid by properties in any district, measured over the life of the district, may be
expended on activities outside the district but within the project area.
(f) For a soil deficiency district:
(1) increments may be collected through deleted text begin 20deleted text end new text begin 25new text end years after the receipt by the authority
of the first increment from the district;
(2) increments may be used only to:
(i) acquire parcels on which the improvements described in item (ii) will occur;
(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional
cost of installing public improvements directly caused by the deficiencies; and
(iii) pay for the administrative expenses of the authority allocable to the district; and
(3) any parcel acquired with increments from the district must be sold at no less than
their fair market value.
(g) Increments spent for any infrastructure costs, whether inside a district or outside a
district but within the project area, are deemed to satisfy the requirements of Minnesota
Statutes, section 469.176, subdivision 4j.
(h) The authority to approve tax increment financing plans to establish tax increment
financing districts under this section expires June 30, 2020.
(i) Notwithstanding the restrictions in paragraph (f), clause (2), the city may use
increments from a soil deficiency district to acquire parcels and for other infrastructure costs
either inside or outside of the district, but within the project area, if the acquisition or
infrastructure is for a qualified development. For purposes of this paragraph, a development
is a qualified development only if all of the following requirements are satisfied:
(1) the city finds, by resolution, that the land acquisition and infrastructure are undertaken
primarily to serve the development;
(2) the city has a binding, written commitment and adequate financial assurances from
the developer that the development will be constructed; and
(3) the development does not consist of retail trade or housing improvements.
new text begin EFFECTIVE DATE. new text end
new text begin
(a) The amendment to subdivision 2, paragraph (f), is effective
upon compliance by the city of Maple Grove, Hennepin County, and Independent School
District No. 279 with the requirements of Minnesota Statutes, section 469.1782, subdivision
2.
new text end
new text begin
(b) The amendment to subdivision 2, paragraph (d), is effective the day after the
governing body of the city of Maple Grove and its chief clerical officer comply with the
requirements of Minnesota Statutes, section 645.021, subdivisions 2 and 3.
new text end
Sec. 14.
Laws 2017, First Special Session chapter 1, article 6, section 22, is amended to
read:
Sec. 22. CITY OF ST. PAUL; FORD SITE REDEVELOPMENT TIF DISTRICT.
(a) For purposes of computing the duration limits under Minnesota Statutes, section
469.176, subdivision 1b, the housing and redevelopment authority of the city of St. Paul
may waive receipt of increment for the Ford Site Redevelopment Tax Increment Financing
District. This authority is limited to the first four years of increment or increments derived
from taxes payable in 2023, whichever occurs first.
(b) If the city elects to waive receipt of increment under paragraph (a), for purposes of
applying any limits based on when the district was certified under Minnesota Statutes,
section 469.176, subdivision 6, or 469.1763, the date of certification for the district is deemed
to be January 2 of the property tax assessment year for which increment is first received
under the waiver.
new text begin
(c) The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
4, relating to the use of increment after the expiration of the five-year period, is extended
to 11 years for the Ford Site Redevelopment Tax Increment Financing District in the city
of St. Paul.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of St. Paul and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end
Sec. 15. new text begin CITY OF BROOKLYN CENTER; TIF AUTHORITY.
new text end
new text begin Subdivision 1. new text end
new text begin Establishment. new text end
new text begin
Under the special rules established in subdivision 2, the
economic development authority of the city of Brooklyn Center or the city of Brooklyn
Center may establish not more than two redevelopment tax increment financing districts
located wholly within the area in the city identified as the "Opportunity Site," which includes
the area bounded by Shingle Creek Parkway from Hennepin County State-Aid Highway
10 to Summit Drive North; Summit Drive North from Shingle Creek Parkway to marked
Trunk Highway 100; marked Trunk Highway 100 from Summit Drive North to Hennepin
County State-Aid Highway 10; and Hennepin County State-Aid Highway 10 from marked
Trunk Highway 100 to Shingle Creek Parkway, together with internal and adjacent roads
and rights of way.
new text end
new text begin Subd. 2. new text end
new text begin Special rules. new text end
new text begin
If the city or the authority establishes a tax increment financing
district under this section, the following special rules apply:
new text end
new text begin
(1) the district is deemed to meet all the requirements of Minnesota Statutes, section
469.174, subdivision 10; and
new text end
new text begin
(2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.
new text end
new text begin Subd. 3. new text end
new text begin Expiration. new text end
new text begin
The authority to approve a tax increment financing plan to establish
a tax increment financing district under this section expires on December 31, 2031.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Brooklyn Center and its chief clerical officer comply with the requirements of
Minnesota Statutes, section 645.021, subdivisions 2 and 3.
new text end
Sec. 16. new text begin CITY OF BROOKLYN PARK; TIF AUTHORITY; 610/ZANE AREA.
new text end
new text begin Subdivision 1. new text end
new text begin Establishment of districts. new text end
new text begin
Under the special rules established in
subdivision 2, the economic development authority of the city of Brooklyn Park or the city
of Brooklyn Park may establish not more than two redevelopment districts located wholly
within the area of the city of Brooklyn Park. The districts may be comprised of the following
parcels identified by their current parcel identification numbers together with adjacent and
internal roads and rights-of-way:
new text end
|
new text begin
0811921410009 new text end |
new text begin
0811921140050 new text end |
new text begin
0811921140051 new text end |
new text begin
0911921120005 new text end |
new text begin
0911921210007 new text end |
|
new text begin
0911921230008 new text end |
new text begin
0911921230049 new text end |
new text begin
0911921240006 new text end |
new text begin
0911921240009 new text end |
new text begin
0911921310004 new text end |
|
new text begin
0911921320018 new text end |
new text begin
0911921330009 new text end |
new text begin
0911921430006 new text end |
new text begin
0911921430014 new text end |
new text begin
0911921430015 new text end |
|
new text begin
0911921430019 new text end |
new text begin
0911921430020 new text end |
new text begin
0911921430028 new text end |
new text begin
0911921430030 new text end |
new text begin
0911921430033 new text end |
|
new text begin
0911921430037 new text end |
new text begin
0911921430038 new text end |
new text begin
0911921430040 new text end |
new text begin
0911921430048 new text end |
new text begin
0911921430054 new text end |
|
new text begin
0911921430055 new text end |
new text begin
0911921430059 new text end |
new text begin
0911921430069 new text end |
new text begin
0911921430071 new text end |
new text begin
0911921430072 new text end |
|
new text begin
0911921430076 new text end |
new text begin
0911921430080 new text end |
new text begin
0911921430081 new text end |
new text begin
0911921430082 new text end |
new text begin
0911921430083 new text end |
|
new text begin
0911921430086 new text end |
new text begin
0911921430087 new text end |
new text begin
0911921430088 new text end |
new text begin
0911921430094 new text end |
new text begin
0911921430095 new text end |
|
new text begin
0911921430099 new text end |
new text begin
0911921430104 new text end |
new text begin
0911921430114 new text end |
new text begin
0911921210005 new text end |
new text begin
0911921210095 new text end |
|
new text begin
0911921220070 new text end |
new text begin
0911921220071 new text end |
new text begin
0911921230009 new text end |
new text begin
0911921230010 new text end |
new text begin
0911921230011 new text end |
|
new text begin
0911921230012 new text end |
new text begin
0911921230013 new text end |
new text begin
0911921240005 new text end |
new text begin
0911921240008 new text end |
new text begin
0911921310007 new text end |
|
new text begin
0911921310009 new text end |
new text begin
0911921320023 new text end |
new text begin
0911921330008 new text end |
new text begin
0911921330011 new text end |
new text begin
0911921340008 new text end |
|
new text begin
0911921340014 new text end |
new text begin
0911921340017 new text end |
new text begin
0911921430018 new text end |
new text begin
0911921430024 new text end |
new text begin
0911921430025 new text end |
|
new text begin
0911921430029 new text end |
new text begin
0911921430034 new text end |
new text begin
0911921430035 new text end |
new text begin
0911921430039 new text end |
new text begin
0911921430044 new text end |
|
new text begin
0911921430045 new text end |
new text begin
0911921430049 new text end |
new text begin
0911921430058 new text end |
new text begin
0911921430060 new text end |
new text begin
0911921430061 new text end |
|
new text begin
0911921430062 new text end |
new text begin
0911921430063 new text end |
new text begin
0911921430067 new text end |
new text begin
0911921430068 new text end |
new text begin
0911921430090 new text end |
|
new text begin
0911921430093 new text end |
new text begin
0911921430097 new text end |
new text begin
0911921430098 new text end |
new text begin
0911921430102 new text end |
new text begin
0911921430103 new text end |
|
new text begin
0911921430112 new text end |
new text begin
0911921430113 new text end |
new text begin
0911921430120 new text end |
new text begin
0811921440008 new text end |
new text begin
0911921210006 new text end |
|
new text begin
0911921210096 new text end |
new text begin
0911921210100 new text end |
new text begin
0911921210101 new text end |
new text begin
0911921220008 new text end |
new text begin
0911921220017 new text end |
|
new text begin
0911921230014 new text end |
new text begin
0911921230015 new text end |
new text begin
0911921240004 new text end |
new text begin
0911921240007 new text end |
new text begin
0911921310010 new text end |
|
new text begin
0911921310011 new text end |
new text begin
0911921310012 new text end |
new text begin
0911921330010 new text end |
new text begin
0911921330012 new text end |
new text begin
0911921340009 new text end |
|
new text begin
0911921430013 new text end |
new text begin
0911921430017 new text end |
new text begin
0911921430021 new text end |
new text begin
0911921430022 new text end |
new text begin
0911921430026 new text end |
|
new text begin
0911921430031 new text end |
new text begin
0911921430032 new text end |
new text begin
0911921430036 new text end |
new text begin
0911921430041 new text end |
new text begin
0911921430042 new text end |
|
new text begin
0911921430046 new text end |
new text begin
0911921430053 new text end |
new text begin
0911921430057 new text end |
new text begin
0911921430064 new text end |
new text begin
0911921430065 new text end |
|
new text begin
0911921430073 new text end |
new text begin
0911921430077 new text end |
new text begin
0911921430078 new text end |
new text begin
0911921430100 new text end |
new text begin
0911921430105 new text end |
|
new text begin
0911921430107 new text end |
new text begin
0911921430108 new text end |
new text begin
0911921430110 new text end |
new text begin
0911921430115 new text end |
new text begin
0911921430117 new text end |
|
new text begin
0911921430118 new text end |
new text begin
0911921210097 new text end |
new text begin
0911921210099 new text end |
new text begin
0911921220014 new text end |
new text begin
0911921220015 new text end |
|
new text begin
0911921220068 new text end |
new text begin
0911921230005 new text end |
new text begin
0911921320016 new text end |
new text begin
0911921320021 new text end |
new text begin
0911921320024 new text end |
|
new text begin
0911921330006 new text end |
new text begin
0911921340015 new text end |
new text begin
0911921340016 new text end |
new text begin
0911921430009 new text end |
new text begin
0911921430010 new text end |
|
new text begin
0911921430011 new text end |
new text begin
0911921430012 new text end |
new text begin
0911921430016 new text end |
new text begin
0911921430023 new text end |
new text begin
0911921430027 new text end |
|
new text begin
0911921430043 new text end |
new text begin
0911921430047 new text end |
new text begin
0911921430050 new text end |
new text begin
0911921430051 new text end |
new text begin
0911921430052 new text end |
|
new text begin
0911921430056 new text end |
new text begin
0911921430066 new text end |
new text begin
0911921430070 new text end |
new text begin
0911921430074 new text end |
new text begin
0911921430075 new text end |
|
new text begin
0911921430079 new text end |
new text begin
0911921430084 new text end |
new text begin
0911921430085 new text end |
new text begin
0911921430089 new text end |
new text begin
0911921430091 new text end |
|
new text begin
0911921430092 new text end |
new text begin
0911921430096 new text end |
new text begin
0911921430101 new text end |
new text begin
0911921430106 new text end |
new text begin
0911921430109 new text end |
|
new text begin
0911921430111 new text end |
new text begin
0911921430116 new text end |
new text begin
0911921430119 new text end |
new text begin
0611921440003 new text end |
new text begin
Unplatted 0611921 new text end |
new text begin Subd. 2. new text end
new text begin Special rules. new text end
new text begin
If the city or the authority establishes any tax increment financing
district under subdivision 1, the following special rules apply:
new text end
new text begin
(1) the districts are deemed to meet all the requirements of Minnesota Statutes, section
469.174, subdivision 10; and
new text end
new text begin
(2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.
new text end
new text begin Subd. 3. new text end
new text begin Expiration. new text end
new text begin
The authority to request certification of any district under this
section expires on December 31, 2031.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Brooklyn Park and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end
Sec. 17. new text begin CITY OF BROOKLYN PARK; TIF AUTHORITY; BIOTECH AREA.
new text end
new text begin Subdivision 1. new text end
new text begin Establishment. new text end
new text begin
Under the special rules established in subdivision 2, the
economic development authority of the city of Brooklyn Park or the city of Brooklyn Park
may establish not more than two redevelopment districts located wholly within the area of
the city of Brooklyn Park. The districts may be comprised of the following parcels identified
by their current parcel identification numbers together with adjacent and internal roads and
rights-of-way:
new text end
|
new text begin
0711921110007 new text end |
new text begin
0711921140001 new text end |
new text begin
0711921140002 new text end |
new text begin
0711921140007 new text end |
new text begin
0711921240002 new text end |
|
new text begin
0711921240004 new text end |
new text begin
0711921110005 new text end |
new text begin
0711921120009 new text end |
new text begin
0711921220003 new text end |
new text begin
0711921230001 new text end |
|
new text begin
0711921230002 new text end |
new text begin
0811921230004 new text end |
new text begin
0711921110004 new text end |
new text begin
0711921110006 new text end |
new text begin
0711921110008 new text end |
|
new text begin
0711921120005 new text end |
new text begin
0711921130005 new text end |
new text begin
0711921140005 new text end |
new text begin
0711921140006 new text end |
new text begin
0711921210003 new text end |
|
new text begin
0711921110003 new text end |
new text begin
0711921120006 new text end |
new text begin
0811921230002 new text end |
new text begin
0811921220002 new text end |
new text begin Subd. 2. new text end
new text begin Special rules. new text end
new text begin
If the city or the authority establishes any tax increment financing
district under subdivision 1, the following special rules apply:
new text end
new text begin
(1) the districts are deemed to meet all the requirements of Minnesota Statutes, section
469.174, subdivision 10; and
new text end
new text begin
(2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.
new text end
new text begin Subd. 3. new text end
new text begin Expiration. new text end
new text begin
The authority to request certification of any district under this
section expires on December 31, 2031.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Brooklyn Park and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end
Sec. 18. new text begin CITY OF BROOKLYN PARK; TIF AUTHORITY; VILLAGE CREEK
AREA.
new text end
new text begin Subdivision 1. new text end
new text begin Establishment of districts. new text end
new text begin
Upon the termination of Tax Increment
Financing District No. 20 within the city of Brooklyn Park, under the special rules established
in subdivision 2, the economic development authority of the city of Brooklyn Park or city
of Brooklyn Park may establish not more than two redevelopment tax increment financing
districts located wholly within the area of the city of Brooklyn Park. The districts may be
comprised of the following parcels identified by their current parcel identification numbers:
new text end
|
new text begin
2011921430101 new text end |
new text begin
2011921440088 new text end |
new text begin
2011921430092 new text end |
new text begin
2011921430099 new text end |
new text begin
2111921330104 new text end |
|
new text begin
2111921340003 new text end |
new text begin
2111921340005 new text end |
new text begin
2111921340006 new text end |
new text begin
2111921340019 new text end |
new text begin
2111921340021 new text end |
|
new text begin
2111921330066 new text end |
new text begin
2111921330068 new text end |
new text begin
2111921340017 new text end |
new text begin
2111921340018 new text end |
new text begin
2811921130004 new text end |
|
new text begin
2811921130005 new text end |
new text begin
2811921140007 new text end |
new text begin
2811921210003 new text end |
new text begin
2811921220002 new text end |
new text begin
2811921220007 new text end |
|
new text begin
2811921240004 new text end |
new text begin
2811921240009 new text end |
new text begin
2811921240010 new text end |
new text begin
2811921240107 new text end |
new text begin
2811921310001 new text end |
|
new text begin
2811921340010 new text end |
new text begin
2911921120032 new text end |
new text begin
2811921130014 new text end |
new text begin
2811921130015 new text end |
new text begin
2811921130024 new text end |
|
new text begin
2811921140012 new text end |
new text begin
2811921210014 new text end |
new text begin
2811921210020 new text end |
new text begin
2811921210023 new text end |
new text begin
2811921210103 new text end |
|
new text begin
2811921220001 new text end |
new text begin
2811921220003 new text end |
new text begin
2811921220005 new text end |
new text begin
2811921240007 new text end |
new text begin
2811921340006 new text end |
|
new text begin
2911921120001 new text end |
new text begin
2911921120004 new text end |
new text begin
2011921440089 new text end |
new text begin
2111921330067 new text end |
new text begin
2111921340002 new text end |
|
new text begin
2111921340004 new text end |
new text begin
2111921340027 new text end |
new text begin
2111921340113 new text end |
new text begin
2811921120001 new text end |
new text begin
2811921130001 new text end |
|
new text begin
2811921130017 new text end |
new text begin
2811921130023 new text end |
new text begin
2811921210001 new text end |
new text begin
2811921210016 new text end |
new text begin
2811921210033 new text end |
|
new text begin
2811921210060 new text end |
new text begin
2811921210101 new text end |
new text begin
2811921240006 new text end |
new text begin
2811921240017 new text end |
new text begin
2911921110004 new text end |
|
new text begin
2911921120005 new text end |
new text begin
2011921430093 new text end |
new text begin
2011921430100 new text end |
new text begin
2011921430102 new text end |
new text begin
2011921430103 new text end |
|
new text begin
2111921330102 new text end |
new text begin
2111921330103 new text end |
new text begin
2111921340001 new text end |
new text begin
2111921340007 new text end |
new text begin
2111921340020 new text end |
|
new text begin
2111921340022 new text end |
new text begin
2811921120002 new text end |
new text begin
2811921120104 new text end |
new text begin
2811921130002 new text end |
new text begin
2811921130020 new text end |
|
new text begin
2811921130021 new text end |
new text begin
2811921210022 new text end |
new text begin
2811921210034 new text end |
new text begin
2811921210099 new text end |
new text begin
2811921210102 new text end |
|
new text begin
2811921220006 new text end |
new text begin
2811921240003 new text end |
new text begin
2811921240012 new text end |
new text begin
2811921340005 new text end |
new text begin
2811921340009 new text end |
|
new text begin
2911921110118 new text end |
new text begin
2911921120006 new text end |
new text begin
2911921120043 new text end |
new text begin
3311921210001 new text end |
new text begin
together with adjacent and internal roads and rights-of-way, and the following roadways
within the city of Brooklyn Park: Zane Avenue North (from and including the intersection
at 78th Avenue North to and including the intersection at Highway 94), Brooklyn Boulevard
(from and including the intersection at the border of Brooklyn Center to and including the
intersection at Kentucky Avenue North), Brookdale Drive North (from and including the
intersection at Zane Avenue North to and including the intersection at Welcome Avenue
North), Village Creek Parkway North, 77th Avenue North (from and including the
intersection at Village Creek Parkway North to and including the intersection at Brookdale
Drive North), 73rd Avenue North/Regent Avenue (from and including the intersection at
Zane Avenue North to and including the intersection at Brooklyn Boulevard).
new text end
new text begin Subd. 2. new text end
new text begin Special rules. new text end
new text begin
If the city or the authority establishes any tax increment financing
district under subdivision 1, the following special rules apply:
new text end
new text begin
(1) the districts are deemed to meet all the requirements of Minnesota Statutes, section
469.174, subdivision 10; and
new text end
new text begin
(2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.
new text end
new text begin Subd. 3. new text end
new text begin Expiration. new text end
new text begin
The authority to request certification of any district under this
section expires on December 31, 2031.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Brooklyn Park and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end
Sec. 19. new text begin CITY OF EDEN PRAIRIE; TAX INCREMENT FINANCING AUTHORITY;
EDEN PRAIRIE CENTER.
new text end
new text begin Subdivision 1. new text end
new text begin Establishment. new text end
new text begin
Pursuant to the special rules established in subdivision
2, the economic development authority of the city of Eden Prairie or the city of Eden Prairie
may establish not more than two redevelopment districts located within the area of the city
of Eden Prairie consisting of parcels, together with adjacent roads and rights-of-way, within
the area surrounded by Flying Cloud Drive, West 78th Street, and Prairie Center Drive.
new text end
new text begin Subd. 2. new text end
new text begin Special rules. new text end
new text begin
If the city or authority establishes a tax increment financing
district under this section, the following special rules apply:
new text end
new text begin
(1) the districts are deemed to meet the requirements of Minnesota Statutes, section
469.174, subdivision 10; and
new text end
new text begin
(2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.
new text end
new text begin Subd. 3. new text end
new text begin Expiration. new text end
new text begin
The authority to approve a tax increment financing plan to establish
a tax increment financing district under this section expires December 31, 2026.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Eden Prairie and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end
Sec. 20. new text begin CITY OF EDINA; 70TH AND FRANCE TIF DISTRICT; FIVE-YEAR
RULE EXTENSION; DURATION EXTENSION.
new text end
new text begin
(a) The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
4, relating to the use of increment after the expiration of the five-year period, is extended
to 11 years for Tax Increment Financing District 70th and France in the city of Edina.
new text end
new text begin
(b) Notwithstanding Minnesota Statutes, section 469.176, subdivisions 1b and 1d, the
city of Edina or its housing and redevelopment authority may elect to extend the duration
of the district by ten years for Tax Increment Financing District 70th and France.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
Paragraph (a) is effective the day after the governing body of the
city of Edina and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3. Paragraph (b) is effective upon compliance
by the city of Edina, Hennepin County, and Independent School District No. 273 with the
requirements of Minnesota Statutes, section 469.1782, subdivision 2.
new text end
Sec. 21. new text begin CITY OF EDINA; 72ND AND FRANCE 2 TIF DISTRICT; FIVE-YEAR
RULE EXTENSION; DURATION EXTENSION.
new text end
new text begin
(a) The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
4, relating to the use of increment after the expiration of the five-year period, is extended
to 11 years for Tax Increment Financing District 72nd and France 2 in the city of Edina.
new text end
new text begin
(b) Notwithstanding Minnesota Statutes, section 469.176, subdivisions 1b and 1d, the
city of Edina or its housing and redevelopment authority may elect to extend the duration
of the district by five years for Tax Increment Financing District 72nd and France 2.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
Paragraph (a) is effective the day after the governing body of the
city of Edina and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3. Paragraph (b) is effective upon compliance
by the city of Edina, Hennepin County, and Independent School District No. 273 with the
requirements of Minnesota Statutes, section 469.1782, subdivision 2.
new text end
Sec. 22. new text begin CITY OF MARSHALL; TEMPORARY USE OF INCREMENT;
EXTENSION.
new text end
new text begin
(a) Notwithstanding Minnesota Statutes, section 469.176, subdivision 4n, paragraph (f),
the city of Marshall may elect to spend, loan, or invest transferred increment authorized
under Minnesota Statutes, section 469.176, subdivision 4n, through December 31, 2027,
provided that the transferred increment was collected from TIF District No. 1-1, TIF District
No. 1-7, or TIF District No. 2-1, in the city of Marshall, and the use of the transferred
increment is detailed in the city's written spending plan adopted pursuant to Minnesota
Statutes, section 469.176, subdivision 4n, paragraph (c).
new text end
new text begin
(b) Increment not spent, loaned, or invested by December 31, 2027, must be returned
to the district. The requirement to return increment to the district includes any proceeds,
principal, and interest received on loans of transferred increment; interest or investment
earnings on transferred increment; or other repayments or returns of transferred increment
defined as tax increment under Minnesota Statutes, section 469.174, subdivision 25, that
remain in the funds or accounts of the authority or municipality on December 31, 2027, or
that are subsequently received by the authority or municipality.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Marshall and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end
Sec. 23. new text begin CITY OF MINNETONKA; OPUS TIF DISTRICT; FIVE-YEAR RULE
EXTENSION.
new text end
new text begin
(a) The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
4, relating to the use of increment after the expiration of the five-year period, is extended
to 11 years for the Opus tax increment financing district established in 2021 by the economic
development authority in the city of Minnetonka.
new text end
new text begin
(b) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Minnetonka and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end
Sec. 24. new text begin CITY OF MOORHEAD; TAX INCREMENT FINANCING DISTRICT
NO. 31; FIVE-YEAR RULE EXTENSION.
new text end
new text begin
The five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years and the period under Minnesota Statutes, section 469.1763, subdivision
4, relating to the use of increment after the expiration of the five-year period, is extended
to 11 years for Tax Increment Financing District No. 31 in the city of Moorhead.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Moorhead and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end
Sec. 25. new text begin CITY OF OAKDALE; TEMPORARY USE OF INCREMENT; EXTENSION.
new text end
new text begin
(a) Notwithstanding Minnesota Statutes, section 469.176, subdivision 4n, paragraph (f),
the city of Oakdale may elect to spend, loan, or invest transferred increment authorized
under Minnesota Statutes, section 469.176, subdivision 4n, through December 31, 2027,
provided that the transferred increment was collected from TIF District No. 1-4 or TIF
District No. 1-6, in the city of Oakdale, and the use of the transferred increment is detailed
in the city's written spending plan adopted pursuant to Minnesota Statutes, section 469.176,
subdivision 4n, paragraph (c).
new text end
new text begin
(b) Increment not spent, loaned, or invested by December 31, 2027, must be returned
to the district. The requirement to return increment to the district includes any proceeds,
principal, and interest received on loans of transferred increment; interest or invest earnings
on transferred increment; or other repayments or returns of transferred increment defined
as tax increment under Minnesota Statutes, section 469.174, subdivision 25, that remain in
the funds or accounts of the authority or municipality on December 31, 2027, or that are
subsequently received by the authority or municipality.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Oakdale and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end
Sec. 26. new text begin CITY OF PLYMOUTH; TAX INCREMENT FINANCING;
ESTABLISHMENT.
new text end
new text begin Subdivision 1. new text end
new text begin Establishment. new text end
new text begin
Under the special rules established in subdivision 2, the
city of Plymouth may establish not more than two redevelopment districts located wholly
within the city of Plymouth, Hennepin County, Minnesota, limited to the area identified as
the city center district in the Plymouth, Minnesota Zoning Map in effect on January 1, 2024,
and adopted pursuant to section 21000.12 of the Plymouth Zoning Code of Ordinances.
new text end
new text begin Subd. 2. new text end
new text begin Special rules. new text end
new text begin
If the city establishes a tax increment financing district under
this section, the following special rules apply:
new text end
new text begin
(1) the district is deemed to meet the requirements of Minnesota Statutes, section 469.174,
subdivision 10;
new text end
new text begin
(2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district;
and
new text end
new text begin
(3) the five-year period under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years, and the period under Minnesota Statutes, section 469.1763, subdivision
4, relating to the use of increment after the expiration of the five-year period, is extended
to 11 years.
new text end
new text begin Subd. 3. new text end
new text begin Expiration. new text end
new text begin
The authority to approve a tax increment financing plan to establish
a tax increment financing district under this section expires December 31, 2031.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of Plymouth and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end
Sec. 27. new text begin CITY OF ST. CLOUD; TAX INCREMENT FINANCING;
ESTABLISHMENT.
new text end
new text begin Subdivision 1. new text end
new text begin Establishment. new text end
new text begin
Under the special rules established in subdivision 2, the
economic development authority of the city of St. Cloud or the city of St. Cloud may establish
not more than two redevelopment districts adjacent to the Division Street corridor or within
the Central Business District or Fringe Central District, limited to the following parcels
identified by tax identification numbers, together with the adjacent roads and rights-of-way:
new text end
new text begin
(1) in Stearns County: 82517020000 (Lady Slipper Catalyst Site); 82515440001 (North
Riverfront Catalyst Site); 82515470000; 82515480000 (Empire Catalyst Site); 82518760015
(Swan Lot Catalyst Site); 82528850020 (Riverboat Lot Catalyst Site); and 82528850001
(Former Herberger's); and
new text end
new text begin
(2) in Benton County: 170037810 (Transit Oriented Development Catalyst Site);
170058101 (Ace Block Catalyst Site); 170042000; 170041600; 170041100; 170041601;
170041200; 170041800; 170059600 (Star Bank Catalyst Site); 170059300 (Riverfront South
Catalyst Site); 170058300; 170059200; 170058600; 170058800; 170059100; and 170058900.
new text end
new text begin Subd. 2. new text end
new text begin Special rules. new text end
new text begin
If the city or authority establishes a tax increment financing
district under this section, the following special rules apply:
new text end
new text begin
(1) the districts are deemed to meet all the requirements of Minnesota Statutes, section
469.174, subdivision 10;
new text end
new text begin
(2) Minnesota Statutes, section 469.176, subdivision 4j, does not apply to the district;
and
new text end
new text begin
(3) increments generated from the districts may be expended for the reconstruction,
expansion, or new construction of adjacent public infrastructure, including but not limited
to public parking, streets, and utilities necessary to serve the development, and all
expenditures under this clause are deemed expended on activities within the district for
purposes of Minnesota Statutes, section 469.1763.
new text end
new text begin Subd. 3. new text end
new text begin Expiration. new text end
new text begin
The authority to approve a tax increment financing plan to establish
a tax increment financing district under this section expires on December 31, 2031.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the city of St. Cloud and
its chief clerical officer comply with the requirements of Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end
Sec. 28. new text begin CITY OF ST. CLOUD; COOPER AVENUE REDEVELOPMENT TAX
INCREMENT FINANCING DISTRICT; FIVE-YEAR RULE EXTENSION.
new text end
new text begin
The following special rule applies for the Cooper Avenue Redevelopment Tax Increment
Financing District administered by the city of St. Cloud. The requirement of Minnesota
Statutes, section 469.1763, subdivision 3, that activities must be undertaken within a five-year
period from the date of certification of a tax increment financing district, is extended by a
five-year period to April 30, 2031. Beginning in 2032, the requirements of Minnesota
Statutes, section 469.1763, subdivision 4, apply to the district.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day after the governing body of the
city of St. Cloud and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end
ARTICLE 6
PUBLIC FINANCE
Section 1.
Minnesota Statutes 2024, section 373.40, subdivision 2, is amended to read:
Subd. 2.
Application of election requirement.
(a) Bonds issued by a county to finance
capital improvements under an approved capital improvement plan are not subject to the
election requirements of section 375.18 or 475.58. The bonds must be approved by vote of
at least three-fifths of the members of the county board. In the case of a metropolitan county,
the bonds must be approved by vote of at least two-thirds of the members of the county
board.
(b) Before issuance of bonds qualifying under this section, the county must publish a
notice of its intention to issue the bonds and the date and time of a hearing to obtain public
comment on the matter. The notice must be published in the official newspaper of the county
or in a newspaper of general circulation in the county. The notice must be published at least
deleted text begin 14deleted text end new text begin tennew text end , but not more than 28, days before the date of the hearing.
(c) A county may issue the bonds only upon obtaining the approval of a majority of the
voters voting on the question of issuing the obligations, if a petition requesting a vote on
the issuance is signed by voters equal to five percent of the votes cast in the county in the
last county general election and is filed with the county auditor within 30 days after the
public hearing. If the county elects not to submit the question to the voters, the county shall
not propose the issuance of bonds under this section for the same purpose and in the same
amount for a period of 365 days from the date of receipt of the petition. If the question of
issuing the bonds is submitted and not approved by the voters, the provisions of section
475.58, subdivision 1a, shall apply.
Sec. 2.
Minnesota Statutes 2024, section 446A.086, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
(a) As used in this section, the following terms have the
meanings given.
(b) "Authority" means the Minnesota Public Facilities Authority.
(c) "Commissioner" means the commissioner of management and budget.
(d) "Debt obligation" means:
(1) a general obligation bond or note issued by a county, a bond or note to which the
general obligation of a county is pledged under section 469.034, subdivision 2, or a bond
or note payable from a county lease obligation under section 641.24, to provide funds for
the construction of:
(i) jails;
(ii) correctional facilities;
(iii) law enforcement facilities;
new text begin
(iv) a courthouse or justice center, if connected to a jail, correctional facility, or other
law enforcement facility;
new text end
deleted text begin (iv)deleted text end new text begin (v)new text end social services and human services facilities;
deleted text begin (v)deleted text end new text begin (vi)new text end solid waste facilities; or
deleted text begin (vi)deleted text end new text begin (vii)new text end qualified housing development projects as defined in section 469.034,
subdivision 2; or
(2) a general obligation bond or note issued by a governmental unit to provide funds for
the construction, improvement, or rehabilitation of:
(i) wastewater facilities;
(ii) drinking water facilities;
(iii) stormwater facilities; or
(iv) any publicly owned building or infrastructure improvement that has received partial
funding from grants awarded by the commissioner of employment and economic development
related to redevelopment, contaminated site cleanup, bioscience, small cities development
programs, and rural business infrastructure programs, for which bonds are issued by the
authority under section 446A.087.
(e) "Governmental unit" means a county or a statutory or home rule charter city.
Sec. 3.
Minnesota Statutes 2024, section 446A.086, subdivision 2, is amended to read:
Subd. 2.
Application.
(a) This section provides a state guarantee of the payment of
principal and interest on debt obligations if:
(1) the obligations are issued for new projectsnew text begin or the refunding at a net present value
savings of debt service costs of obligations that are currently guaranteed pursuant to this
sectionnew text end and are not issued for the purposes of refunding previous obligationsnew text begin other than as
described in this sentencenew text end ;
(2) application to the Public Facilities Authority is made before issuance; and
(3) the obligations are covered by an agreement meeting the requirements of subdivision
3.
(b) Applications to be covered by the provisions of this section must be made in a form
and contain the information prescribed by the authority. Applications are subject to either
a fee of $500 for each bond issue requested by a county or governmental unit or the applicable
fees under section 446A.087.
(c) Application fees paid under this section must be deposited in a separate credit
enhancement bond guarantee account in the special revenue fund. Money in the credit
enhancement bond guarantee account is appropriated to the authority for purposes of
administering this section.
(d) Neither the authority nor the commissioner is required to promulgate administrative
rules under this section and the procedures and requirements established by the authority
or commissioner under this section are not subject to chapter 14.
Sec. 4.
Minnesota Statutes 2024, section 462C.04, subdivision 2, is amended to read:
Subd. 2.
Program review.
A public hearing shall be held on each program after one
publication of notice in a newspaper circulating generally in the city, at least deleted text begin 15deleted text end new text begin tennew text end days
before the hearing. On or before the day on which notice of the public hearing is published,
the city shall submit the program to the Metropolitan Council, if the city is located in the
metropolitan area as defined in section 473.121, subdivision 2, or to the regional development
commission for the area in which the city is located, if any, for review and comment. The
appropriate reviewing agency shall comment on:
(a) whether the program furthers local and regional housing policies and is consistent
with the Metropolitan Development Guide, if the city is located in the metropolitan area,
or adopted policies of the regional development commission; and
(b) the compatibility of the program with the housing portion of the comprehensive plan
of the city, if any.
Review of the program may be conducted either by the board of the reviewing agency
or by the staff of the agency. Any comment submitted by the reviewing agency to the city
must be presented to the body considering the proposed program at the public hearing held
on the program.
A member or employee of the reviewing agency shall be permitted to present the
comments of the reviewing agency at the public hearing. After conducting the public hearing,
the program may be adopted with or without amendment, provided that any amendments
must not be inconsistent with the comments, if any, of the reviewing agency and must not
contain any material changes from the program submitted to the reviewing agency other
than changes in the financial aspects of any proposed issue of bonds or obligations. If any
material change other than a change in the financial aspects of a proposed issue of bonds
or obligations, or any change which is inconsistent with the comments of the reviewing
agency is adopted, the amended program shall be resubmitted to the appropriate reviewing
agency for review and comment, and a public hearing shall be held on the amended program
after one publication of notice in a newspaper circulating generally in the city at least deleted text begin 15deleted text end new text begin
tennew text end days before the hearing. The amended program shall be considered after the public
hearing in the same manner as consideration of the initial program.
Sec. 5.
Minnesota Statutes 2024, section 469.104, is amended to read:
469.104 SECTIONS THAT APPLY IF FEDERAL LIMIT APPLIES.
Sections 474A.01 to 474A.21 apply to obligations issued under sections 469.090 to
469.108 that are deleted text begin limiteddeleted text end new text begin requirednew text end by federal tax law as defined in section 474A.02,
subdivision 8new text begin , to obtain an allocation of volume capnew text end .
Sec. 6.
Minnesota Statutes 2024, section 469.154, subdivision 4, is amended to read:
Subd. 4.
Hearing.
Prior to submitting an application to the department requesting
approval of a project pursuant to subdivision 3, the governing body or a committee of the
governing body of the municipality or redevelopment agency shall conduct a public hearing
on the proposal to undertake and finance the project. Notice of the time and place of hearing,
and stating the general nature of the project and an estimate of the principal amount of bonds
or other obligations to be issued to finance the project, shall be published at least once not
less than deleted text begin 14deleted text end new text begin tennew text end days nor more than 30 days prior to the date fixed for the hearing, in the
official newspaper and a newspaper of general circulation of the municipality or
redevelopment agency. The notice shall state that a draft copy of the proposed application
to the department, together with all attachments and exhibits, shall be available for public
inspection following the publication of the notice and shall specify the place and times
where and when it will be so available. The governing body of the municipality or the
redevelopment agency shall give all parties who appear at the hearing an opportunity to
express their views with respect to the proposal to undertake and finance the project.
Following the completion of the public hearing, the governing body of the municipality or
redevelopment agency shall adopt a resolution determining whether or not to proceed with
the project and its financing; it may thereafter apply to the department for approval of the
project.
Sec. 7.
Minnesota Statutes 2024, section 474A.091, subdivision 2, is amended to read:
Subd. 2.
Application for residential rental projects.
(a) Issuers may apply for an
allocation for residential rental bonds under this section by submitting to the department an
application on forms provided by the department accompanied by:
(1) a preliminary resolution;
(2) a statement of bond counsel that the proposed issue of obligations requires an
allocation under this chapter and the Internal Revenue Code;
(3) an application deposit in the amount of two percent of the requested allocation;
(4) a sworn statement from the applicant identifying the project as a preservation project,
30 percent AMI residential rental project, 50 percent AMI residential rental project, 100
percent LIHTC project, 20 percent LIHTC project, or any other residential rental project;
and
(5) a certification from the applicant or its accountant stating that the requested allocation
does not exceed the aggregate bond limitation.
The issuer must pay the application deposit to the Department of Management and Budget.
An entitlement issuer may not apply for an allocation for residential rental project bonds
under this section unless it has either permanently issued bonds equal to the amount of its
entitlement allocation for the current year plus any amount carried forward from previous
years or returned for reallocation all of its unused entitlement allocation. For purposes of
this subdivision, its entitlement allocation includes an amount obtained under section
474A.04, subdivision 6.
(b) An issuer that receives an allocation under this subdivision must permanently issue
obligations equal to all or a portion of the allocation received on or beforenew text begin the earlier of:
(1)new text end 180 days of the allocationnew text begin ; or (2) the last business day of Decembernew text end . If an issuer that
receives an allocation under this subdivision does not permanently issue obligations equal
to all or a portion of the allocation received within the time period provided in this paragraph
or returns the allocation to the commissioner, the amount of the allocation is canceled and
returned for reallocation through the unified pool.
(c) The Minnesota Housing Finance Agency may apply for and receive an allocation
under this section without submitting an application deposit.
Sec. 8.
Minnesota Statutes 2024, section 474A.091, subdivision 2a, is amended to read:
Subd. 2a.
Application for all other types of qualified bonds.
(a) Issuers may apply
for an allocation for all types of qualified bonds other than residential rental bonds under
this section by submitting to the department an application on forms provided by the
department accompanied by:
(1) a preliminary resolution;
(2) a statement of bond counsel that the proposed issue of obligations requires an
allocation under this chapter and the Internal Revenue Code;
(3) the type of qualified bonds to be issued;
(4) an application deposit in the amount of two percent of the requested allocation; and
(5) a public purpose scoring worksheet for manufacturing and enterprise zone
applications.
The issuer must pay the application deposit to the Department of Management and Budget.
An entitlement issuer may not apply for an allocation for public facility bonds or mortgage
bonds under this section unless it has either permanently issued bonds equal to the amount
of its entitlement allocation for the current year plus any amount carried forward from
previous years or returned for reallocation all of its unused entitlement allocation. For
purposes of this subdivision, an entitlement allocation includes an amount obtained under
section 474A.04, subdivision 6.
(b) An issuer that receives an allocation under this subdivision must permanently issue
obligations equal to all or a portion of the allocation received on or beforenew text begin the earlier of:
(1)new text end 120 days of the allocationnew text begin ; or (2) the last business day of Decembernew text end . If an issuer that
receives an allocation under this subdivision does not permanently issue obligations equal
to all or a portion of the allocation received within the time period provided in this paragraph
or returns the allocation to the commissioner, the amount of the allocation is canceled and
returned for reallocation through the unified pool.
(c) Notwithstanding the restrictions imposed on entitlement issuers under this subdivision,
the Minnesota Housing Finance Agency may not receive an allocation for mortgage bonds
under this section prior to the first Monday in October, but may be awarded allocations for
mortgage bonds from the unified pool on or after the first Monday in October. The Minnesota
Housing Finance Agency, the Minnesota Office of Higher Education, and the Minnesota
Rural Finance Authority may apply for and receive an allocation under this section without
submitting an application deposit.
Sec. 9.
Minnesota Statutes 2024, section 475.521, subdivision 2, is amended to read:
Subd. 2.
Election requirement.
(a) Bonds issued by a municipality to finance capital
improvements under an approved capital improvements plan are not subject to the election
requirements of section 475.58. The bonds must be approved by an affirmative vote of
three-fifths of the members of a five-member governing body. In the case of a governing
body having more or less than five members, the bonds must be approved by a vote of at
least two-thirds of the members of the governing body.
(b) Before the issuance of bonds qualifying under this section, the municipality must
publish a notice of its intention to issue the bonds and the date and time of the hearing to
obtain public comment on the matter. The notice must be published in the official newspaper
of the municipality or in a newspaper of general circulation in the municipality. Additionally,
the notice may be posted on the official website, if any, of the municipality. The notice must
be published at least deleted text begin 14deleted text end new text begin tennew text end but not more than 28 days before the date of the hearing.
(c) A municipality may issue the bonds only after obtaining the approval of a majority
of the voters voting on the question of issuing the obligations, if a petition requesting a vote
on the issuance is signed by voters equal to five percent of the votes cast in the municipality
in the last municipal general election and is filed with the clerk within 30 days after the
public hearing. If the municipality elects not to submit the question to the voters, the
municipality shall not propose the issuance of bonds under this section for the same purpose
and in the same amount for a period of 365 days from the date of receipt of the petition. If
the question of issuing the bonds is submitted and not approved by the voters, the provisions
of section 475.58, subdivision 1a, shall apply.
Sec. 10.
Minnesota Statutes 2024, section 641.23, is amended to read:
641.23 FUNDS; HOW PROVIDED.
Before any contract is made for the erection of a county jail, sheriff's residence, deleted text begin or bothdeleted text end new text begin
sheriff's offices, law enforcement center, or courthouse or justice center attached to a county
jailnew text end , the county board shall either levy a sufficient tax to provide the necessary funds, or
issue county bonds therefor in accordance with the provisions of chapter 475, provided that
no election is required if the amount of all bonds issued for this purpose and interest on
them which are due and payable in any year does not exceed an amount equal to 0.09671
percent of estimated market value of taxable property within the county, as last determined
before the bonds are issued.
ARTICLE 7
MISCELLANEOUS TAX PROVISIONS
Section 1.
Minnesota Statutes 2024, section 3.192, is amended to read:
3.192 REQUIREMENTS FOR NEW OR RENEWED TAX EXPENDITURES.
(a) deleted text begin Anydeleted text end new text begin Within 60 days after final enactment of anew text end bill that creates, renews, or continues
a tax expenditure deleted text begin must include a statement of intentdeleted text end new text begin , the chairs of the house of representatives
and senate committees with primary jurisdiction over taxes must submit to the Tax
Expenditure Review Commission a statement of objectivenew text end that clearly provides the purpose
of the tax expenditure and a standard or goal against which its effectiveness may be measured.
(b) For purposes of this section, "tax expenditure" has the meaning given in section
270C.11, subdivision 6new text begin , and "Tax Expenditure Review Commission" means the commission
established under section 3.8855new text end .
(c) Any bill that creates a new tax expenditure or continues an expiring tax expenditure
must include an expiration date for the tax expenditure that is no more than eight years from
the day the provision takes effect.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment for
tax expenditures authorized in this act.
new text end
Sec. 2.
Minnesota Statutes 2024, section 3.8855, subdivision 2, is amended to read:
Subd. 2.
Definitions.
For the purposes of this sectiondeleted text begin ,deleted text end new text begin :
new text end
new text begin
(1) "commissioner" means the commissioner of revenue; and
new text end
new text begin (2)new text end "significant tax expenditure," "tax," and "tax expenditure" have the meanings given
in section 270C.11, subdivision 6.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3.
Minnesota Statutes 2024, section 3.8855, subdivision 3, is amended to read:
Subd. 3.
Membership.
(a) The commission consists of:
(1) two senators appointed by the senate majority leader;
(2) two senators appointed by the senate minority leader;
(3) two representatives appointed by the speaker of the house;
(4) two representatives appointed by the minority leader of the house of representatives;
and
(5) the commissioner deleted text begin of revenuedeleted text end or the commissioner's designee.
(b) Each appointing authority must make appointments by January 31 of the regular
legislative session in the odd-numbered year.
(c) If the chair of the house or senate committee with primary jurisdiction over taxes is
not an appointed member, the chair is an ex officio, nonvoting member of the commission.
new text begin
(d) The commissioner may designate another individual to represent the commissioner
or the commissioner's designee at any meeting of the commission.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 4.
Minnesota Statutes 2024, section 3.8855, subdivision 4, is amended to read:
Subd. 4.
Duties.
(a) For not more than three years after the commission is established,
the commission must complete an initial review of the state's tax expenditures. The initial
review must identify the deleted text begin purposedeleted text end new text begin objectivenew text end of each of the state's tax expendituresdeleted text begin ,deleted text end if none
was deleted text begin identified in the enacting legislationdeleted text end new text begin submitted to the commissionnew text end in accordance with
section 3.192. The commission may also identify metrics for evaluating the effectiveness
of an expenditure.
(b) The commission must review and evaluate Minnesota's tax expenditures on a regular,
rotating basis. The commission must establish a review schedule that ensures each tax
expenditure will be reviewed by the commission at least once every ten years. The
commission may review expenditures affecting similar constituencies or policy areas in the
same year, but the commission must review a subset of the tax expenditures within each
tax type each year. To the extent possible, the commission must review a similar number
of tax expenditures within each tax type each year. The commission may decide not to
review a tax expenditure that is adopted by reference to federal law.
(c) Before deleted text begin Decemberdeleted text end new text begin Februarynew text end 1 of the year a tax expenditure is included in a commission
report, the commission must hold a public hearing on the expenditure, including but not
limited to a presentation of the review components in subdivision 5.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 5.
Minnesota Statutes 2024, section 3.8855, subdivision 5, is amended to read:
Subd. 5.
Components of review.
(a) When reviewing a tax expenditure, the commission
must at a minimum:
(1) provide an estimate of the annual revenue lost as a result of the expenditure;
(2) identify the deleted text begin purposedeleted text end new text begin objectivenew text end of the tax expenditure if none was deleted text begin identified in the
enacting legislationdeleted text end new text begin submitted to the commissionnew text end in accordance with section 3.192;
(3) estimate the measurable impacts and efficiency of the tax expenditure in
accomplishing the deleted text begin purposedeleted text end new text begin objectivenew text end of the expenditure;
(4) compare the effectiveness of the tax expenditure and a direct expenditure with the
same deleted text begin purposedeleted text end new text begin objectivenew text end ;
(5) identify potential modifications to the tax expenditure to increase its efficiency or
effectiveness;
(6) estimate the amount by which the tax rate for the relevant tax could be reduced if
the revenue lost due to the tax expenditure were applied to a rate reduction;
(7) if the tax expenditure is a significant tax expenditure, estimate the incidence of the
tax expenditure and the effect of the expenditure on the incidence of the state's tax system;
(8) consider the cumulative fiscal impacts of other state and federal taxes providing
benefits to taxpayers for similar activities; and
(9) recommend whether the expenditure be continued, repealed, or modified.
(b) The commission may omit a component in paragraph (a) if the commission determines
it is not feasible due to the lack of available data, third-party research, staff resources, or
lack of a majority support for a recommendation.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 6.
Minnesota Statutes 2024, section 3.8855, subdivision 7, is amended to read:
Subd. 7.
Report to legislature.
(a) By deleted text begin Decemberdeleted text end new text begin Februarynew text end 15 of each year, the
commission must submit a written report to the legislative committees with jurisdiction
over tax policy. The report must detail the results of the commission's review of tax
expenditures for the year, including the review components detailed in subdivision 5.
(b) Notwithstanding paragraph (a), during the period of initial review under subdivision
4, the report may be limited to the deleted text begin purposedeleted text end new text begin objectivenew text end statements and metrics for evaluating
the effectiveness of expenditures, as identified by the commission. The report may also
include relevant publicly available data on an expenditure.
(c) The report may include any additional information the commission deems relevant
to the review of an expenditure.
(d) The legislative committees with jurisdiction over tax policy must hold a public
hearing on the report during the regular legislative session in the year following the year in
which the report was submitted.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 7.
Minnesota Statutes 2024, section 3.8855, subdivision 8, is amended to read:
Subd. 8.
Terms; vacanciesnew text begin ; meetingsnew text end .
(a) Members of the commission serve a term
beginning upon appointment and ending at the beginning of the regular legislative session
in the next odd-numbered year. The appropriate appointing authority must fill a vacancy
for a seat of a current legislator for the remainder of the unexpired term. Members may be
removed or replaced at the pleasure of the appointing authority.
(b) If a commission member ceases to be a member of the legislative body from which
the member was appointed, the member vacates membership on the commission.
new text begin
(c) The commissioner of revenue must convene the first meeting of each year required
under subdivision 4, paragraph (c).
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 8.
Minnesota Statutes 2024, section 37.31, subdivision 1, is amended to read:
Subdivision 1.
Bonding authority.
The society may issue negotiable bonds in a principal
amount that the society determines necessary to provide sufficient money for achieving its
purposes, including the payment of interest on bonds of the society, the establishment of
reserves to secure its bonds, the payment of fees to a third party providing credit
enhancement, and the payment of all other expenditures of the society incident to and
necessary or convenient to carry out its corporate purposes and powers. Bonds of the society
may be issued as bonds or notes or in any other form authorized by law. The principal
amount of bonds issued and outstanding under this section at any time may not exceed
deleted text begin $30,000,000deleted text end new text begin $50,000,000new text end , excluding bonds for which refunding bonds or crossover refunding
bonds have been issued.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2025.
new text end
Sec. 9.
Minnesota Statutes 2024, section 270C.11, subdivision 4, is amended to read:
Subd. 4.
Contents.
(a) The report shall detail for each tax expenditure item:
(1) the amount of tax revenue forgone;
(2) a citation of the statutory or other legal authority for the expenditure;
(3) the year in which it was enacted or the tax year in which it became effective;
(4) the deleted text begin purposedeleted text end new text begin objectivenew text end of the expenditure, as deleted text begin identified in the enacting legislationdeleted text end
new text begin submitted to the commissionnew text end in accordance with section 3.192 or new text begin identifiednew text end by the Tax
Expenditure Review Commission;
(5) the incidence of the expenditure, if it is a significant sales or income tax expenditure;
and
(6) the revenue-neutral amount by which the relevant tax rate could be reduced if the
expenditure were repealed.
(b) The report may contain additional information which the commissioner considers
relevant to the legislature's consideration and review of individual tax expenditure items.
This may include but is not limited to analysis of whether the expenditure is achieving that
objective and the effect of the expenditure on the administration of the tax system.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 10.
Minnesota Statutes 2024, section 289A.60, subdivision 12, is amended to read:
Subd. 12.
Penalties relating to property tax refundsnew text begin and certificates of rent paidnew text end .
(a)
If it is determined that a property tax refund claim is excessive and was negligently prepared,
a claimant is liable for a penalty of ten percent of the disallowed claim. If the claim has
been paid, the amount disallowed must be recovered by assessment and collection.
(b) An owner who deleted text begin without reasonable causedeleted text end fails to give a certificate of rent paid to a
renter, as required by sections 290.0693, subdivision 4,new text begin paragraph (a),new text end and 290A.19,
paragraph (a), is liable to the commissioner for a penalty of deleted text begin $100deleted text end new text begin $50new text end for each failure.new text begin The
commissioner may abate the penalty using the abatement authority in section 270C.34.
new text end
new text begin
(c) An owner who fails to file a certificate of rent paid with the commissioner, as required
by sections 290.0693, subdivision 4, paragraph (b), and 290A.19, paragraph (b), is liable
to the commissioner for a penalty of $50 for each failure. The commissioner may abate the
penalty using the abatement authority in section 270C.34.
new text end
deleted text begin (c)deleted text end new text begin (d)new text end If the owner or managing agent knowingly gives rent certificates that report total
rent constituting property taxes in excess of the amount of actual rent constituting property
taxes paid on the rented part of a property, the owner or managing agent is liable for a
penalty equal to the greater of (1) $100 or (2) 50 percent of the excess that is reported. An
overstatement of rent constituting property taxes is presumed to be knowingly made if it
exceeds by ten percent or more the actual rent constituting property taxes.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for rent paid after December 31, 2025.
new text end
Sec. 11.
Minnesota Statutes 2024, section 290.0693, subdivision 4, is amended to read:
Subd. 4.
Owner or managing agent to furnish rent certificate.
(a) The owner or
managing agent of any property for which rent is paid for occupancy as a homestead must
furnish a certificate of rent paid to a person who is a renter on December 31, in the form
prescribed by the commissioner. If the renter moves before December 31, the owner or
managing agent may give the certificate to the renter at the time of moving, or mail the
certificate to the forwarding address if an address has been provided by the renter. The
certificate must be made available to the renter before February 1 of the year following the
year in which the rent was paid. The owner or managing agent must retain a duplicate of
each certificate or an equivalent record showing the same information for a period of four
years. The duplicate or other record must be made available to the commissioner upon
request.
(b) The deleted text begin commissioner may require thedeleted text end owner or managing agentdeleted text begin , through a simple
process, todeleted text end new text begin mustnew text end furnish to the commissioner on or before January 31 a copy of each
certificate of rent paid furnished to a renter for rent paid in the prior year. The commissioner
shall prescribe the content, format, and manner of the form pursuant to section 270C.30.
The commissioner may require the Social Security number, individual taxpayer identification
number, federal employer identification number, or Minnesota taxpayer identification
number of the owner or managing agent who is required to furnish a certificate of rent paid
under this paragraph. Before implementation, the commissioner, after consulting with
representatives of owners or managing agents, shall develop an implementation and
administration plan for the requirements of this paragraph that attempts to minimize financial
burdens, administration and compliance costs, and takes into consideration existing systems
of owners and managing agents.
new text begin
(c) An owner who fails to furnish the certificate of rent paid to the renter or to the
commissioner, as required under this section, is subject to the penalty imposed under section
289A.60, subdivision 12.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for rent paid after December 31, 2025.
new text end
Sec. 12.
Minnesota Statutes 2024, section 290A.19, is amended to read:
290A.19 PARK OWNER TO FURNISH RENT CERTIFICATE.
(a) The park owner of a property for which rent is paid for occupancy as a homestead
must furnish a certificate of rent paid to a person who is a renter on December 31, in the
form prescribed by the commissioner. If the renter moves before December 31, the park
owner may give the certificate to the renter at the time of moving, or mail the certificate to
the forwarding address if an address has been provided by the renter. The certificate must
be made available to the renter before February 1 of the year following the year in which
the rent was paid. The park owner must retain a duplicate of each certificate or an equivalent
record showing the same information for a period of three years. The duplicate or other
record must be made available to the commissioner upon request.
(b) The deleted text begin commissioner may require thedeleted text end park ownerdeleted text begin , through a simple process, todeleted text end new text begin mustnew text end
furnish to the commissioner on or before March 1 a copy of each certificate of rent paid
furnished to a renter for rent paid in the prior year. The commissioner shall prescribe the
content, format, and manner of the form pursuant to section 270C.30. The commissioner
may require the Social Security number, individual taxpayer identification number, federal
employer identification number, or Minnesota taxpayer identification number of the park
owner who is required to furnish a certificate of rent paid under this paragraph. Prior to
implementation, the commissioner, after consulting with representatives of park owners,
shall develop an implementation and administration plan for the requirements of this
paragraph that attempts to minimize financial burdens, administration and compliance costs,
and takes into consideration existing systems of park owners.
(c) For the purposes of this section, "park owner" means a park owner as defined under
section 327C.015, subdivision 9, and "property" includes a lot as defined under section
327C.015, subdivision 6.
new text begin
(d) An owner who fails to furnish the certificate of rent paid to the renter or to the
commissioner, as required under this section, is subject to the penalty imposed under section
289A.60, subdivision 12.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for rent paid after December 31, 2025.
new text end
Sec. 13.
Minnesota Statutes 2024, section 290C.07, is amended to read:
290C.07 CALCULATION OF INCENTIVE PAYMENT.
(a) An approved claimant under the sustainable forest incentive program is eligible to
receive an annual payment for each acre of enrolled land, excluding any acre improved with
a paved trail under easement, lease, or terminable license to the state of Minnesota or a
political subdivision. The payment shall equal a percentage of the property tax that would
be paid on the land determined by using the previous year's statewide average total tax rate
for all taxes levied within townships and unorganized territories, the estimated market value
per acre as calculated in section 290C.06, and a class rate of one percent as follows: (1) for
claimants enrolling land that is subject to a conservation easement funded under section
97A.056 or a comparable permanent easement conveyed to a governmental or nonprofit
entity before May 31, 2013, 25 percent; (2) for claimants enrolling land that is not subject
to a conservation easement under an eight-year covenant, 65 percent; (3) for claimants
enrolling land that is not subject to a conservation easement under a 20-year covenant, 90
percent; and (4) for claimants enrolling land that is not subject to a conservation easement
under a 50-year covenant, 115 percent.
(b) The calculated payment must not increase or decrease by more than ten percent
relative to the payment received for the previous year. In no case may the payment be less
than the amount paid to the claimant for the land enrolled in the program in 2017. If an
eligible claimant elects to change the length of the covenant on enrolled land on or before
May 15, 2019, the limits under this paragraph do not apply and the claimant must receive
payment in the amount corresponding to the new covenant length as calculated under
paragraph (a).
(c) In addition to the payments provided under this section, a claimant enrolling more
than 1,920 acres shall be allowed an additional payment per acre equal to the amount
prescribed in paragraph (a), clause (1), for all acres of enrolled land on which public access
is allowed, as required under section 290C.03, paragraph (a), clause (6), excluding any land
subject to a conservation easement funded under section 97A.056, or a permanent easement
conveyed to a governmental or nonprofit entity that is required to allow for public access
under section 290C.03, paragraph (a), clause (6).
new text begin
(d) Notwithstanding paragraphs (a) to (c), for fiscal years 2026 through 2029 only,
payments calculated under this section, inclusive of an additional amount under paragraph
(c), must not exceed 100 percent of the property tax that would be paid on the land, as
determined under paragraph (a). This paragraph expires after fiscal year 2029.
new text end
new text begin
(e) If the total amount of payments under paragraph (d) exceeds the threshold amount
under this paragraph in any fiscal year, each recipient's payment amount must be
proportionally reduced so that the total amount of payments in that fiscal year equals the
threshold amount for that fiscal year. If the total amount of payments under paragraph (d)
is less than the threshold amount under this paragraph in any fiscal year, each recipient's
payment amount must be proportionally increased so that the total amount of payments in
that fiscal year equals the threshold amount for that fiscal year. The threshold amounts are
$8,340,000 for fiscal year 2026, $9,180,000 for fiscal year 2027, $15,370,000 for fiscal
year 2028, and $16,290,000 for fiscal year 2029. This paragraph expires after fiscal year
2029.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 14.
Minnesota Statutes 2024, section 295.53, subdivision 4a, is amended to read:
Subd. 4a.
Credit for research.
(a) In addition to the exemptions allowed under
subdivision 1, a hospital or health care provider may claim an annual credit against the total
amount of tax, if any, the hospital or health care provider owes for that calendar year under
sections 295.50 to 295.57. The credit shall equal deleted text begin 2.5deleted text end new text begin 0.5new text end percent of revenues for patient
services used to fund expenditures for qualifying research conducted by an allowable research
program. The amount of the credit shall not exceed the tax liability of the hospital or health
care provider under sections 295.50 to 295.57.
(b) For purposes of this subdivision, the following requirements apply:
(1) expenditures must be for program costs of qualifying research conducted by an
allowable research program;
(2) an allowable research program must be a formal program of medical and health care
research conducted by an entity which is exempt under section 501(c)(3) of the Internal
Revenue Code as defined in section 289A.02, subdivision 7, or is owned and operated under
authority of a governmental unit;
(3) qualifying research must:
(A) be approved in writing by the governing body of the hospital or health care provider
which is taking the deduction under this subdivision;
(B) have as its purpose the development of new knowledge in basic or applied science
relating to the diagnosis and treatment of conditions affecting the human body;
(C) be subject to review by individuals with expertise in the subject matter of the proposed
study but who have no financial interest in the proposed study and are not involved in the
conduct of the proposed study; and
(D) be subject to review and supervision by an institutional review board operating in
conformity with federal regulations if the research involves human subjects or an institutional
animal care and use committee operating in conformity with federal regulations if the
research involves animal subjects. Research expenses are not exempt if the study is a routine
evaluation of health care methods or products used in a particular setting conducted for the
purpose of making a management decision. Costs of clinical research activities paid directly
for the benefit of an individual patient are excluded from this exemption. Basic research in
fields including biochemistry, molecular biology, and physiology are also included if such
programs are subject to a peer review process.
(c) No credit shall be allowed under this subdivision for any revenue received by the
hospital or health care provider in the form of a grant, gift, or otherwise, whether from a
government or nongovernment source, on which the tax liability under section 295.52 is
not imposed.
(d) The taxpayer shall apply for the credit under this section on the annual return under
section 295.55, subdivision 5.
deleted text begin
(e) Beginning September 1, 2001, if the actual or estimated amount paid under this
section for the calendar year exceeds $2,500,000, the commissioner of management and
budget shall determine the rate of the research credit for the following calendar year to the
nearest one-half percent so that refunds paid under this section will most closely equal
$2,500,000. The commissioner of management and budget shall publish in the State Register
by October 1 of each year the rate of the credit for the following calendar year. A
determination under this section is not subject to the rulemaking provisions of chapter 14.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 15.
Minnesota Statutes 2024, section 295.54, subdivision 2, is amended to read:
Subd. 2.
Pharmacy refund.
new text begin (a) new text end A pharmacy may claim deleted text begin an annualdeleted text end new text begin a quarterlynew text end refund
deleted text begin against the total amount of tax, if any, the pharmacy owes during that calendar year under
section 295.52, subdivision 4. The refund shalldeleted text end equal new text begin to new text end the amount paid by the pharmacy
to a wholesale drug distributor subject to tax under section 295.52, subdivision 3, for legend
drugs delivered by the pharmacy outside of Minnesota, multiplied by the tax percentage
specified in section 295.52, subdivision 3. deleted text begin If the amount of the refund exceeds the tax
liability of the pharmacy under section 295.52, subdivision 4, the commissioner shall provide
the pharmacy with a refund equal to the excess amount.
deleted text end
new text begin (b)new text end Each qualifying pharmacy must apply for the refund on the deleted text begin annualdeleted text end new text begin quarterlynew text end return
as prescribed by the commissioner, deleted text begin on or before March 15 of the year following the calendar
year the legend drugs were delivered outside Minnesota.deleted text end new text begin as required under the following
schedule:
new text end
new text begin
(1) for legend drugs delivered by the pharmacy outside of Minnesota between January
1 and March 31, a pharmacy may file its refund request on or after July 1 of the calendar
year in which the legend drugs are delivered by the pharmacy outside of Minnesota;
new text end
new text begin
(2) for legend drugs delivered by the pharmacy outside of Minnesota between April 1
and June 30, a pharmacy may file its refund request on or after July 1 of the calendar year
in which the legend drugs are delivered by the pharmacy outside of Minnesota;
new text end
new text begin
(3) for legend drugs delivered by the pharmacy outside of Minnesota between July 1
and September 30, a pharmacy may file its refund request on or after October 1 of the
calendar year in which the legend drugs are delivered by the pharmacy outside of Minnesota;
and
new text end
new text begin
(4) for legend drugs delivered by the pharmacy outside of Minnesota between October
1 and December 31, a pharmacy may file its refund request on or after January 1 of the
calendar year immediately following the calendar year in which the legend drugs are
delivered by the pharmacy outside of Minnesota.
new text end
deleted text begin The refund shall not bedeleted text end new text begin (c) No refund isnew text end allowed if the deleted text begin initialdeleted text end claim for refund is filed
more than one year after the deleted text begin original due date of the returndeleted text end new text begin end of the quarter in which the
legend drugs were delivered by the pharmacy outside of Minnesotanew text end . Interest on refunds paid
under this subdivision deleted text begin will begindeleted text end new text begin beginsnew text end to accrue 60 days after the date a claim for refund
is filed. deleted text begin For purposes of this subdivision, the date a claim is filed is the due date of the return
if a return is due or the date of the actual claim for refund, whichever is later.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for legend drugs delivered outside of
Minnesota after December 31, 2025.
new text end
Sec. 16.
Minnesota Statutes 2024, section 295.81, subdivision 10, is amended to read:
Subd. 10.
Deposit of revenues; account established.
deleted text begin (a)deleted text end The commissioner must deposit
the revenues, including penalties and interest, derived from the tax imposed by this section
deleted text begin as follows:
deleted text end
deleted text begin (1) 80 percent todeleted text end new text begin innew text end the general funddeleted text begin ; anddeleted text end new text begin .
new text end
deleted text begin
(2) 20 percent to the local government cannabis aid account in the special revenue fund.
deleted text end
deleted text begin
(b) The local government cannabis aid account is established in the special revenue fund.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
The amendment to paragraph (a) is effective July 1, 2025. The
amendment to paragraph (b) is effective January 2, 2026.
new text end
Sec. 17.
Minnesota Statutes 2024, section 297H.01, subdivision 8, is amended to read:
Subd. 8.
Residential generator.
"Residential generator" means any of the following:
(1) a detached single family residence that generates mixed municipal solid waste or
nonmixed municipal solid waste;
(2) a person residing in a building or site containing multiple residences that generates
mixed municipal solid waste, including apartment buildings, common interest communities,
or manufactured home parks, where each residence is separately billed by the waste service
provider;
(3) an owner of a building or site containing multiple residences or an association
representing residences that generate mixed municipal solid waste or nonmixed municipal
solid waste, including apartment buildings, condominiums, manufactured home parks, or
townhomes where no residence is separately billed for such service by the waste management
service provider and the owner or association is billed directly for the waste management
services. A residential generator does not include a self-haulerdeleted text begin .deleted text end new text begin ; or
new text end
new text begin
(4) an organization exempt under section 501(c)(3) of the Internal Revenue Code that
receives donations for resale from an entity listed in clauses (1) to (3).
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2025.
new text end
Sec. 18.
Minnesota Statutes 2024, section 297H.13, subdivision 2, is amended to read:
Subd. 2.
Allocation of revenues.
(a) Of the amounts remitted under this chapter, 70
percent must be credited to the environmental fund established in section 16A.531,
subdivision 1.
(b) In addition to the amounts credited to the environmental fund in paragraph (a), in
fiscal year 2024 and later, three percent of the amounts remitted under this chapter shall be
deposited into the resource management account in the environmental fund.new text begin For fiscal year
2028 only, an additional $1,493,000 must be deposited in the resource management account
in the environmental fund. For fiscal year 2026 only, an additional $354,000 must be
deposited in the resource management account in the environmental fund.
new text end
(c) The remainder must be deposited into the general fund.
(d) Beginning in fiscal year 2024 and annually thereafter, the money deposited in the
resource management account in the environmental fund under paragraph (b) is appropriated
to the commissioner of the Pollution Control Agency for distribution to counties under
section 115A.557, subdivision 2, paragraph (a), clauses (1) to (7) and (9) to (11).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 19.
new text begin
[428A.30] DEFINITIONS; EXPIRATION.
new text end
new text begin Subdivision 1. new text end
new text begin Scope. new text end
new text begin
For purposes of sections 428A.30 to 428A.34, the terms defined
in this section have the meanings given them, unless the context indicates otherwise.
new text end
new text begin Subd. 2. new text end
new text begin City. new text end
new text begin
"City" means the city of Minneapolis and the city of St. Paul.
new text end
new text begin Subd. 3. new text end
new text begin District. new text end
new text begin
"District" means a land-value taxation district established under section
428A.31.
new text end
new text begin Subd. 4. new text end
new text begin Ordinance. new text end
new text begin
"Ordinance" means the ordinance establishing a land-value taxation
district under section 428A.31.
new text end
new text begin Subd. 5. new text end
new text begin Expiration. new text end
new text begin
A district established by a city under sections 428A.30 to 428A.34
expires after the district has been in effect for ten taxes payable years, or on December 31,
2037, whichever is earlier.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with property taxes payable
in 2026.
new text end
Sec. 20.
new text begin
[428A.31] ESTABLISHMENT OF LAND-VALUE TAXATION DISTRICT.
new text end
new text begin Subdivision 1. new text end
new text begin Ordinance. new text end
new text begin
(a) The governing body of a city may adopt an ordinance
establishing a land-value taxation district. Prior to adopting the ordinance, a city must consult
with the county auditor and develop a plan for administering taxation within the district.
The ordinance must describe:
new text end
new text begin
(1) the parcels of property constituting the district, either by specific identification of
each parcel, or by defining a geographic area or areas within the city, and then within that
area or those areas, identifying the specific types of property, as defined under section
273.13, to be included in the district; and
new text end
new text begin
(2) the procedure for reallocating the collective property tax of all parcels within the
district.
new text end
new text begin
(b) In addition, the ordinance must provide an evaluation of the economic effects of the
district, including the impact on redevelopment of and investment in the district, within a
specified period of time, but not less than 15 years after the date the district becomes
effective.
new text end
new text begin Subd. 2. new text end
new text begin Hearing; notice. new text end
new text begin
Before adopting an ordinance, the governing body of the city
must hold a public hearing on the question. Notice of the hearing must include the time and
place of the hearing, a description of the parcels to be included in the district, a description
of the procedure for reallocating the tax burden among the parcels, and the duration of the
district. Each person owning property in the proposed district must be given the opportunity
to be heard at the hearing. The governing body must publish notice of the hearing on the
city's website and in at least two issues of the official newspaper of the city. The two
publications must be two weeks apart and the hearing must be held at least three days after
the last publication. Not less than ten days before the hearing, the governing body must mail
notice to the owner of each parcel proposed to be included in the district. For the purpose
of the mailed notice, owners are those shown on the records of the county auditor. Other
records may be used to supply the necessary information. At the public hearing, a person
affected by the proposed district may testify on any issues relevant to the proposed district.
The governing body may adjourn the hearing from time to time and may adopt the ordinance
establishing the district at any time within six months after the date of the conclusion of the
hearing by a vote of the majority of the governing body of the city. Within 30 days after
adoption of the ordinance, the governing body shall send a copy of the ordinance to the
commissioner of revenue.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with property taxes payable
in 2026.
new text end
Sec. 21.
new text begin
[428A.32] RESTRICTIONS ON TAX REALLOCATION PROCEDURE.
new text end
new text begin
A tax reallocation procedure under section 428A.31, subdivision 1, paragraph (a), clause
(2), must distribute taxes on taxable properties in the district by applying uniform rates to
one or more of the following tax bases:
new text end
new text begin
(1) the net tax capacity, as defined under section 273.13, subdivision 21b;
new text end
new text begin
(2) the referendum market value, as defined under section 126C.01, subdivision 3;
new text end
new text begin
(3) a tax base consisting of each property's estimated market value excluding the market
value attributable to improvements; or
new text end
new text begin
(4) a tax base consisting of each property's estimated market value excluding the market
value attributable to improvements made after a date specified in the ordinance.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with property taxes payable
in 2026.
new text end
Sec. 22.
new text begin
[428A.33] TAXATION WITHIN DISTRICT.
new text end
new text begin Subdivision 1. new text end
new text begin Initial taxation within district. new text end
new text begin
For each property taxes payable year, a
city must compile the total property taxes imposed upon all properties within the district
for each taxing jurisdiction after final property tax statements are issued under section
276.04. For the purposes of this section, the areawide taxes under chapters 276A and 473F,
and the state general levy under section 275.025, are considered to be taxing jurisdictions.
new text end
new text begin Subd. 2. new text end
new text begin Final taxation within district. new text end
new text begin
A city must allocate the tax, as determined
under subdivision 1, among all properties in the district according to the terms of the
ordinance so the entire amount of tax payable to each taxing jurisdiction under subdivision
1 is allocated among the properties constituting the district. The city must report the revised
property tax amounts for each parcel of property to the county treasurer by April 30 of the
year the tax is payable. The city must mail revised property tax statements to all properties
within the district by April 30 of the year the tax is payable. Taxpayers must make payments
according to the dates specified in section 279.01 as if the property tax statements were
mailed 21 days prior to May 15 of the year the taxes are payable.
new text end
new text begin Subd. 3. new text end
new text begin Report to commissioner of revenue. new text end
new text begin
By September 1 of each year, the county
treasurer must report the initial and final distribution of the net tax for each parcel of property
in the district to the commissioner of revenue on a form prescribed by the commissioner of
revenue.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with property taxes payable
in 2026.
new text end
Sec. 23.
new text begin
[428A.34] APPEAL OF LAND VALUE.
new text end
new text begin
The owner of any property included in a land-value taxation district under section
428A.31 may appeal the valuation attributable to land separately from the valuation
attributable to improvements upon the land under sections 274.01 and 274.13 or chapter
271.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with property taxes payable
in 2026.
new text end
Sec. 24.
Minnesota Statutes 2024, section 609.902, subdivision 4, is amended to read:
Subd. 4.
Criminal act.
"Criminal act" means conduct constituting, or a conspiracy or
attempt to commit, a felony violation of chapter 152, or a felony violation of section deleted text begin 297D.09;deleted text end
299F.79; 299F.80; 299F.82; 609.185; 609.19; 609.195; 609.20; 609.205; 609.221; 609.222;
609.223; 609.2231; 609.228; 609.235; 609.245; 609.25; 609.27; 609.322; 609.342; 609.343;
609.344; 609.345; 609.42; 609.48; 609.485; 609.495; 609.496; 609.497; 609.498; 609.52,
subdivision 2, if the offense is punishable under subdivision 3, clause (1), if the property is
a firearm, clause (3)(b), or clause (3)(d)(v); section 609.52, subdivision 2, paragraph (a),
clause (1) or (4); 609.527, if the crime is punishable under subdivision 3, clause (4); 609.528,
if the crime is punishable under subdivision 3, clause (4); 609.53; 609.561; 609.562; 609.582,
subdivision 1 or 2; 609.668, subdivision 6, paragraph (a); 609.67; 609.687; 609.713; 609.86;
609.894, subdivision 3 or 4; 609.895; 624.713; 624.7191; or 626A.02, subdivision 1, if the
offense is punishable under section 626A.02, subdivision 4, paragraph (a). "Criminal act"
also includes conduct constituting, or a conspiracy or attempt to commit, a felony violation
of section 609.52, subdivision 2, clause (3), (4), (15), or (16), if the violation involves an
insurance company as defined in section 60A.02, subdivision 4, a nonprofit health service
plan corporation regulated under chapter 62C, a health maintenance organization regulated
under chapter 62D, or a fraternal benefit society regulated under chapter 64B.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective August 1, 2025.
new text end
Sec. 25. new text begin APPROPRIATION; EXTENSION OF AVAILABILITY.
new text end
new text begin
Notwithstanding Minnesota Statutes, section 16A.28, the appropriation in Laws 2023,
chapter 64, article 15, section 30, is available until June 30, 2027.
new text end
Sec. 26. new text begin CANCELLATION OF AMOUNTS IN LOCAL GOVERNMENT CANNABIS
AID ACCOUNT.
new text end
new text begin
On January 2, 2026, any balance within the local government cannabis aid account in
the special revenue fund is canceled to the general fund.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 27. new text begin TAXPAYER ASSISTANCE GRANTS AND TAX CREDIT OUTREACH
GRANTS.
new text end
new text begin
(a) The fiscal year 2029 base for taxpayer assistance grants under Minnesota Statutes,
section 270C.21, subdivision 3, is increased by $1,200,000. This increase is in addition to
any other base established in law.
new text end
new text begin
(b) The fiscal year 2029 base for tax credit outreach grants under Minnesota Statutes,
section 270C.21, subdivision 4, is increased by $1,200,000. This increase is in addition to
any other base established in law.
new text end
Sec. 28. new text begin APPROPRIATION; BROWERVILLE PUBLIC SCHOOLS.
new text end
new text begin
$520,000 in fiscal year 2026 is appropriated from the general fund to the commissioner
of revenue for a grant to Independent School District No. 787, Browerville, to remediate
the effects of a school building roof collapse that occurred in 2023. The grant recipient must
use the money appropriated under this section for materials and supplies used in and
equipment incorporated into renovations to the prekindergarten through grade 12 school
building, and construction of a new gymnasium, classrooms, locker rooms, a wrestling and
weight room, offices, and a stage. The grant must be paid by July 15, 2025. This is a onetime
appropriation. The grant under this section is not subject to retention of administrative costs
under Minnesota Statutes, section 16B.98, subdivision 14.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2025.
new text end
Sec. 29. new text begin CITY OF MINNEAPOLIS; EMERALD ASH BORER FINANCIAL
ASSISTANCE; APPROPRIATION.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
For the purposes of this section, the following terms have
the meanings given:
new text end
new text begin
(1) "eligible costs" means costs incurred in 2020 or later for treating or removing a tree
on owner-occupied residential property that has been required by state law or by municipal
ordinance to be treated or removed due to infestation or possible infestation by the emerald
ash borer, including but not limited to costs incurred by the city and assessed to a property
owner;
new text end
new text begin
(2) "eligible homeowner" means a homeowner who experienced eligible costs related
to a tree on the homeowner's property in an eligible region and whose income is below 200
percent of the official federal poverty guideline; and
new text end
new text begin
(3) "eligible region" means a census tract in Minneapolis that is an environmental justice
area, as defined in Minnesota Statutes, section 115A.03, subdivision 10b.
new text end
new text begin Subd. 2. new text end
new text begin Eligible uses; prioritization. new text end
new text begin
(a) The city of Minneapolis must use the full
amount of the aid under this section to pay eligible homeowners for their eligible costs.
new text end
new text begin
(b) After receiving an application for a payment from an eligible homeowner, the city
must use funds received under this section to directly reduce the remaining balance of an
eligible homeowner's special assessment related to eligible costs. If the original balance of
the special assessment is greater than the remaining balance, the city must reimburse the
eligible homeowner for the difference.
new text end
new text begin
(c) If the amount of funds available is insufficient to reimburse all eligible homeowners
for the full amount of their eligible costs, the city must prioritize reimbursing a subset of
eligible homeowners for the full amount of their eligible costs.
new text end
new text begin
(d) After December 31, 2026, the city may use any remaining funds to reimburse other
eligible homeowners who incurred eligible costs but did not have a special assessment
applied to their properties.
new text end
new text begin
(e) Notwithstanding paragraph (a), after June 30, 2027, the city may use any remaining
funds to offset the eligible costs of resident homeowners whose properties are not in an
eligible region but who otherwise meet the definition of an eligible homeowner.
new text end
new text begin
(f) The city must administer the funding under this section within existing city resources
and not with money appropriated in this section.
new text end
new text begin Subd. 3. new text end
new text begin Outreach. new text end
new text begin
The city of Minneapolis must promote the availability of financial
assistance under this section in eligible regions. As part of its outreach efforts, the city
department administering the program under this section must consult with Hope Community,
Metro Blooms, Harrison Neighborhood Association, the Center for Urban and Regional
Affairs at the University of Minnesota, and the public health department of the city.
new text end
new text begin Subd. 4. new text end
new text begin Reporting. new text end
new text begin
On July 1, 2026, and July 1, 2027, the city must report to the
commissioner of revenue on its use of money under this section. By income level and
neighborhood, the report must detail the number of eligible homeowners reimbursed and
the amount of money distributed.
new text end
new text begin Subd. 5. new text end
new text begin Appropriation. new text end
new text begin
$400,000 in fiscal year 2026 is appropriated from the general
fund to the commissioner of revenue for an aid to the city of Minneapolis. This is a onetime
appropriation. The aid must be paid on July 1, 2025. The aid under this section is not subject
to retention of administrative costs under Minnesota Statutes, section 16B.98, subdivision
14.
new text end
Sec. 30. new text begin REPEALER.
new text end
new text begin
(a)
new text end
new text begin
Minnesota Statutes 2024, sections 13.4967, subdivision 5; 297D.01; 297D.02;
297D.03; 297D.04; 297D.05; 297D.06; 297D.07; 297D.08; 297D.085; 297D.09, subdivisions
1, 1a, and 2; 297D.10; 297D.11; 297D.12; and 297D.13,
new text end
new text begin
are repealed.
new text end
new text begin
(b)
new text end
new text begin
Minnesota Statutes 2024, section 477A.32,
new text end
new text begin
is repealed.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
Paragraph (a) is effective August 1, 2025. Paragraph (b) is effective
for aids payable in 2026 and thereafter.
new text end
ARTICLE 8
DEPARTMENT OF REVENUE: INDIVIDUAL INCOME AND CORPORATE
FRANCHISE TAXES
Section 1.
Minnesota Statutes 2024, section 116U.27, subdivision 2, is amended to read:
Subd. 2.
Credit allowed.
A taxpayer is eligible for a credit up to 25 percent of eligible
production costs paid in deleted text begin a taxable yeardeleted text end new text begin any consecutive 12-month period as described in
subdivision 1, paragraph (h)new text end . A taxpayer may only claim a credit if the taxpayer was issued
a credit certificate under subdivision 4.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2022.
new text end
Sec. 2.
Minnesota Statutes 2024, section 290.01, subdivision 19, is amended to read:
Subd. 19.
Net income.
(a) For a trust or estate taxable under section 290.03, and a
corporation taxable under section 290.02, the term "net income" means the federal taxable
income, as defined in section 63 of the Internal Revenue Code of 1986, as amended through
the date named in this subdivision, incorporating the federal effective dates of changes to
the Internal Revenue Code and any elections made by the taxpayer in accordance with the
Internal Revenue Code in determining federal taxable income for federal income tax
purposes, and with the modifications provided in sections 290.0131 to 290.0136.
(b) For an individual, the term "net income" means federal adjusted gross income with
the modifications provided in sections 290.0131, 290.0132, and 290.0135 to 290.0137.
(c) In the case of a regulated investment company or a fund thereof, as defined in section
851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
except that:
(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
Revenue Code does not apply;
(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal Revenue
Code must be applied by allowing a deduction for capital gain dividends and exempt-interest
dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal Revenue Code;
and
(3) the deduction for dividends paid must also be applied in the amount of any
undistributed capital gains which the regulated investment company elects to have treated
as provided in section 852(b)(3)(D) of the Internal Revenue Code.
(d) The net income of a real estate investment trust as defined and limited by section
856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
(e) The net income of a designated settlement fund as defined in section 468B(d) of the
Internal Revenue Code means the gross income as defined in section 468B(b) of the Internal
Revenue Code.
(f) The Internal Revenue Code of 1986, as amended through May 1, 2023, applies for
taxable years beginning after December 31, 1996.
(g) Except as otherwise provided, references to the Internal Revenue Code in this
subdivision and sections 290.0131 to 290.0136 mean the code in effect for purposes of
determining net income for the applicable year.
(h) In the case of a partnership electing to file a composite return under section 289A.08,
subdivision 7, "net income" means the partner's share of federal adjusted gross income from
the partnership modified by the additions provided in section 290.0131, subdivisions 8 to
10, 16, and 17, and the subtractions provided in: (1) section 290.0132, subdivisions 9, 27,
deleted text begin anddeleted text end 28,new text begin and 31,new text end to the extent the amount is assignable or allocable to Minnesota under section
290.17; and (2) section 290.0132, subdivision 14. The subtraction allowed under section
290.0132, subdivision 9, is only allowed on the composite tax computation to the extent
the electing partner would have been allowed the subtraction.
(i) In the case of a qualifying entity electing to pay the pass-through entity tax under
section 289A.08, subdivision 7a, "net income" means the qualifying owner's share of federal
adjusted gross income from the qualifying entity modified by the additions provided in
section 290.0131, subdivisions 5, 8 to 10, 16, and 17, and the subtractions provided in: (1)
section 290.0132, subdivisions 3, 9, 27, deleted text begin anddeleted text end 28,new text begin and 31,new text end to the extent the amount is assignable
or allocable to Minnesota under section 290.17; and (2) section 290.0132, subdivision 14.
The subtraction allowed under section 290.0132, subdivision 9, is only allowed on the
pass-through entity tax computation to the extent the qualifying owners would have been
allowed the subtraction. deleted text begin The income of both a resident and nonresident qualifying owner
is allocated and assigned to this state as provided for nonresident partners and shareholders
under sections 290.17, 290.191, and 290.20.
deleted text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2022.
new text end
Sec. 3.
Minnesota Statutes 2024, section 290.0132, subdivision 26, is amended to read:
Subd. 26.
Social Security benefits.
(a) A taxpayer is allowed a subtraction equal to the
greater of the simplified subtraction allowed under paragraph (b) or the alternate subtraction
determined under paragraph (e).
(b) A taxpayer's simplified subtraction equals the amount of taxable social security
benefits, as reduced under paragraphs (c) and (d).
(c) For a taxpayer other than a married taxpayer filing a separate return with adjusted
gross income above the phaseout threshold, the simplified subtraction is reduced by ten
percent for each $4,000 of adjusted gross income, or fraction thereof, in excess of the
phaseout threshold. The phaseout threshold equals:
(1) $100,000 for a married taxpayer filing a joint return or surviving spouse;
(2) $78,000 for a single or head of household taxpayer; and
(3) for a married taxpayer filing a separate return, half the amount for a married taxpayer
filing a joint return.
(d) For a married taxpayer filing a separate return, the simplified subtraction is reduced
by ten percent for each $2,000 of adjusted gross income, or fraction thereof, in excess of
the phaseout threshold.
(e) A taxpayer's alternate subtraction equals the lesser of taxable Social Security benefits
or a maximum subtraction subject to the limits under paragraphs (f), (g), and (h).
(f) For married taxpayers filing a joint return and surviving spouses, the maximum
subtraction under paragraph deleted text begin (c)deleted text end new text begin (e)new text end equals $5,840. The maximum subtraction is reduced by
20 percent of provisional income over $88,630. In no case is the subtraction less than zero.
(g) For single or head-of-household taxpayers, the maximum subtraction under paragraph
deleted text begin (c)deleted text end new text begin (e)new text end equals $4,560. The maximum subtraction is reduced by 20 percent of provisional
income over $69,250. In no case is the subtraction less than zero.
(h) For married taxpayers filing separate returns, the maximum subtraction under
paragraph deleted text begin (c)deleted text end new text begin (e)new text end equals one-half the maximum subtraction for joint returns under paragraph
(f). The maximum subtraction is reduced by 20 percent of provisional income over one-half
the threshold amount specified in paragraph (d). In no case is the subtraction less than zero.
(i) For purposes of this subdivision, "provisional income" means modified adjusted gross
income as defined in section 86(b)(2) of the Internal Revenue Code, plus one-half of the
taxable Social Security benefits received during the taxable year, and "Social Security
benefits" has the meaning given in section 86(d)(1) of the Internal Revenue Code.
(j) The commissioner shall adjust the phaseout threshold amounts in deleted text begin paragraphsdeleted text end new text begin paragraphnew text end
(c) deleted text begin and (d)deleted text end new text begin , clauses (1) and (2),new text end as provided in section 270C.22. The statutory year is taxable
year 2023. The maximum subtraction and threshold amounts as adjusted must be rounded
to the nearest $10 amount. If the amount ends in $5, the amount is rounded up to the nearest
$10 amount.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2022.
new text end
Sec. 4.
Minnesota Statutes 2024, section 290.0132, subdivision 34, is amended to read:
Subd. 34.
Qualified retirement benefits.
(a) The amount of qualified public pension
income is a subtraction. The subtraction in this section is limited to:
(1) $25,000 for a married taxpayer filing a joint return or surviving spouse; or
(2) $12,500 for all other filers.
(b) For a taxpayer with adjusted gross income above the phaseout threshold, the
subtraction is reduced by ten percent for each $2,000 of adjusted gross income, or fraction
thereof, in excess of the threshold. The phaseout threshold equals:
(1) $100,000 for a married taxpayer filing a joint return or surviving spouse;
(2) $78,000 for a single or head of household taxpayer; or
(3) for a married taxpayer filing a separate return, half the amount for a married taxpayer
filing a joint return.
(c) For the purposes of this section, "qualified public pension income" means any amount
received:
(1) by a former basic member or the survivor of a former basic member, as an annuity
or survivor benefit, from a pension plan governed by chapter 353, 353E, 354, or 354A,
provided that the annuity or benefit is based on service for which the member or survivor
deleted text begin is not also receivingdeleted text end new text begin did not earnnew text end Social Security benefits;
(2) as an annuity or survivor benefit from the legislators plan under chapter 3A, the State
Patrol retirement plan under chapter 352B, or the public employees police and fire plan
under sections 353.63 to 353.666, provided that the annuity or benefit is based on service
for which the member or survivor deleted text begin is not also receivingdeleted text end new text begin did not earnnew text end Social Security benefits;
(3) from any retirement system administered by the federal government that is based on
service for which the recipient or the recipient's survivor deleted text begin is not also receivingdeleted text end new text begin did not earnnew text end
Social Security benefits; or
(4) from a public retirement system of or created by another state or any of its political
subdivisions, or the District of Columbia, if the income tax laws of the other state or district
permit a similar deduction or exemption or a reciprocal deduction or exemption of a
retirement or pension benefit received from a public retirement system of or created by this
state or any political subdivision of this state.
(d) The commissioner must annually adjust the subtraction limits in paragraph (a) and
the phaseout thresholds in paragraph (b), as provided in section 270C.22. The statutory year
is taxable year 2023.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 5.
Minnesota Statutes 2024, section 290.0134, subdivision 20, is amended to read:
Subd. 20.
Delayed business interest.
(a) For each taxable year an addition is required
under section deleted text begin 290.0131, subdivision 19deleted text end new text begin 290.0133, subdivision 15new text end , the amount of the addition,
less the sum of all amounts subtracted under this paragraph in all prior taxable years, that
does not exceed the limitation on business interest in section 163(j) of the Internal Revenue
Code of 1986, as amended through December 15, 2022, notwithstanding the special rule in
section 163(j)(10) of the Internal Revenue Code, is a subtraction. Any excess is a delayed
business interest carryforward, the entire amount of which must be carried to the earliest
taxable year. No subtraction is allowed under this paragraph for taxable years beginning
after December 31, 2022.
(b) For each of the five taxable years beginning after December 31, 2022, there is allowed
a subtraction equal to one-fifth of the sum of all carryforward amounts that remain after the
expiration of paragraph (a).
(c) Entities that are part of a combined reporting group under the unitary rules of section
290.17, subdivision 4, must compute deductions and additions as required under section
290.34, subdivision 5.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2019.
new text end
Sec. 6.
Minnesota Statutes 2024, section 290.0693, subdivision 1, is amended to read:
Subdivision 1.
Definitions.
(a) For the purposes of this section, the following terms have
the meanings given.
(b) "Dependent" means any individual who is considered a dependent under sections
151 and 152 of the Internal Revenue Codenew text begin and was claimed by the taxpayer as a dependentnew text end .
(c) "Disability" has the meaning given in section 290A.03, subdivision 10.
(d) "Exemption amount" means the exemption amount under section 290.0121,
subdivision 1, paragraph (b).
(e) "Gross rent" means rent paid for the right of occupancy, at arm's length, of a
homestead, exclusive of charges for any medical services furnished by the landlord as a
part of the rental agreement, whether expressly set out in the rental agreement or not. The
gross rent of a resident of a nursing home or intermediate care facility is $600 per month.
The gross rent of a resident of an adult foster care home is $930 per month. The commissioner
shall annually adjust the amounts in this paragraph as provided in section 270C.22. The
statutory year is 2023. If the landlord and tenant have not dealt with each other at arm's
length and the commissioner determines that the gross rent charged was excessive, the
commissioner may adjust the gross rent to a reasonable amount for purposes of this section.
(f) "Homestead" has the meaning given in section 290A.03, subdivision 6.
(g) "Household" has the meaning given in section 290A.03, subdivision 4.
(h) "Household income" means all income received by all persons of a household in a
taxable year while members of the household, other than income of a dependent.
(i) "Income" means adjusted gross income, minus:
(1) for the taxpayer's first dependent, the exemption amount multiplied by 1.4;
(2) for the taxpayer's second dependent, the exemption amount multiplied by 1.3;
(3) for the taxpayer's third dependent, the exemption amount multiplied by 1.2;
(4) for the taxpayer's fourth dependent, the exemption amount multiplied by 1.1;
(5) for the taxpayer's fifth dependent, the exemption amount; and
(6) if the taxpayer or taxpayer's spouse had a disability or attained the age of 65 on or
before the close of the taxable year, the exemption amount.
(j) "Rent constituting property taxes" means 17 percent of the gross rent actually paid
in cash, or its equivalent, or the portion of rent paid in lieu of property taxes, in any taxable
year by a claimant for the right of occupancy of the claimant's Minnesota homestead in the
taxable year, and which rent constitutes the basis, in the succeeding taxable year of a claim
for a credit under this section by the claimant. If an individual occupies a homestead with
another person or persons not related to the individual as the individual's spouse or as
dependents, and the other person or persons are residing at the homestead under a rental or
lease agreement with the individual, the amount of rent constituting property tax for the
individual equals that portion not covered by the rental agreement.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2024.
new text end
Sec. 7.
Minnesota Statutes 2024, section 290.0693, subdivision 6, is amended to read:
Subd. 6.
Residents of nursing homes, intermediate care facilities, long-term care
facilities, or facilities accepting housing support payments.
(a) A taxpayer must not claim
a credit under this section if the taxpayer is a resident of a nursing home, intermediate care
facility, long-term residential facility, or a facility that accepts housing support payments
whose rent constituting property taxes is paid pursuant to the Supplemental Security Income
program under title XVI of the Social Security Act, the Minnesota supplemental aid program
under sections 256D.35 to 256D.54, the medical assistance program pursuant to title XIX
of the Social Security Act, or the housing support program under chapter 256I.
(b) If only a portion of the rent constituting property taxes is paid by these programs,
the resident is eligible for a credit, but the credit calculated must be multiplied by a fraction,
the numerator of which is adjusted gross income, deleted text begin reduced by the total amount of income
from the above sources other than vendor payments under the medical assistance programdeleted text end
and the denominator of which is adjusted gross income, plus vendor payments under the
medical assistance program, to determine the allowable credit.
(c) Notwithstanding paragraphs (a) and (b), if the taxpayer was a resident of the nursing
home, intermediate care facility, long-term residential facility, or facility for which the rent
was paid for the claimant by the housing support program for only a portion of the taxable
year covered by the claim, the taxpayer may compute rent constituting property taxes by
disregarding the rent constituting property taxes from the nursing home or facility and may
use only that amount of rent constituting property taxes or property taxes payable relating
to that portion of the year when the taxpayer was not in the facility. The taxpayer's household
income is the income for the entire taxable year covered by the claim.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2024.
new text end
Sec. 8.
Minnesota Statutes 2024, section 290.0693, subdivision 8, is amended to read:
Subd. 8.
One claimant per household.
Only one taxpayer per household per year is
entitled to claim a credit under this section.new text begin In the case of a married couple filing a joint
return, the couple may claim a credit under this section based on the total amount of both
spouses' gross rent.new text end In the case of a married taxpayer filing a separate return, only one spouse
may claim the credit under this section. The credit amount for the spouse that claims the
credit must be calculated based on household income new text begin and both spouses' share of the gross
rent new text end and not solely on the income of the spouse.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2024.
new text end
Sec. 9.
Minnesota Statutes 2024, section 290.0695, subdivision 2, is amended to read:
Subd. 2.
Credit allowed; limitation; carryover.
(a) An eligible taxpayer is allowed a
credit against tax due under this chapter equal to 50 percent of deleted text begin eligible expenses, not to
exceed $3,000 per mile, multiplied by the number of miles of railroad track owned or leased
within the state by the eligible taxpayer for which the taxpayer madedeleted text end new text begin thenew text end qualified railroad
reconstruction or replacement expenditures deleted text begin as of the close of the taxable year for which the
credit is claimeddeleted text end new text begin made by an eligible taxpayer within this state during the taxable year for
which the credit is claimednew text end .
new text begin
(b) The credit allowed under paragraph (a) for any taxable year must not exceed the
product of:
new text end
new text begin
(1) $3,000, multiplied by;
new text end
new text begin
(2) the number of miles of railroad track owned or leased by the eligible taxpayer within
this state as of the close of the taxable year for which the taxpayer made qualified railroad
reconstruction or replacement expenditures for which the credit is claimed.
new text end
deleted text begin (b)deleted text end new text begin (c)new text end If the amount of the credit determined under this section for any taxable year
exceeds the liability for tax under this chapter, the excess is a credit carryover to each of
the five succeeding taxable years. The entire amount of the excess unused credit for the
taxable year must be carried first to the earliest of the taxable years to which the credit may
be carried and then to each successive year to which the credit may be carried. The amount
of the unused credit that may be added under this paragraph must not exceed the taxpayer's
liability for tax less the credit for the taxable year.
deleted text begin (c)deleted text end new text begin (d)new text end An eligible taxpayer claiming a credit under this section may not also claim the
credit under section 297I.20, subdivision 6, for the same qualified railroad reconstruction
or replacement expenditures.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively for taxable years beginning
after December 31, 2022.
new text end
Sec. 10.
Laws 2023, chapter 1, section 22, is amended to read:
Sec. 22. TEMPORARY ADDITIONS AND SUBTRACTIONS; INDIVIDUALS,
ESTATES, AND TRUSTS.
(a) For the purposes of this section:
(1) "subtraction" has the meaning given in Minnesota Statutes, section 290.0132,
subdivision 1, and the rules in that subdivision apply to this section;
(2) "addition" has the meaning given in Minnesota Statutes, section 290.0131, subdivision
1, and the rules in that subdivision apply to this section; and
(3) the definitions in Minnesota Statutes, section 290.01, apply to this section.
(b) The following amounts are subtractions:
(1) the amount of wages used for the calculation of the employee retention credit for
employers affected by qualified disasters, to the extent not deducted from income, under
Public Law 116-94, division Q, section 203, or Public Law 116-260, division EE, section
303;
(2) the amount of wages used for the calculation of the payroll credit for required paid
sick leave, to the extent not deducted from income, under Public Law 116-127, section
7001, as amended by section 9641 of Public Law 117-2;
(3) the amount of wages or expenses used for the calculation of the payroll credit for
required paid family leave, to the extent not deducted from income, under Public Law
116-127, section 7003, as amended by section 9641 of Public Law 117-2;
(4) the amount of wages used for the calculation of the employee retention credit for
employers subject to closure due to COVID-19, to the extent not deducted from income,
under Public Law 116-136, section 2301, as amended by Public Law 116-260, division EE,
section 207, and Public Law 117-2, section 9651; and
(5) the amount required to be added to gross income to claim the credit in section 6432
of the Internal Revenue Code.
(c) The following amounts are additions:
(1) the amount subtracted for qualified tuition expenses under section 222 of the Internal
Revenue Code, as amended by Public Law 116-94, division Q, section 104;
(2) the amount of above the line charitable contributions deducted under section 2204
of Public Law 116-136;
(3) the amount of meal expenses in excess of the 50 percent limitation under section
274(n)(1) of the Internal Revenue Code allowed under subsection (n), paragraph (2),
subparagraph (D), of that section; and
(4) the amount of charitable contributions deducted from federal taxable income by a
trust for taxable year 2020 under Public Law 116-136, section 2205(a).
(d) The commissioner of revenue must apply the subtractions in paragraph (b) and the
additions in paragraph (c), when calculating the following:
(1) the percentage under Minnesota Statutes, section 290.06, subdivision 2c, paragraph
(e);
(2) a taxpayer's alternative minimum taxable income under Minnesota Statutes, section
290.091; and
(3) "income" deleted text begin as defined in Minnesota Statutes, section 289A.08, subdivision 7, paragraph
(j),deleted text end for the purposes of determining the tax for composite filers and the pass-through entity
taxnew text begin , means the partner's share of federal adjusted gross income from the partnership modified
by the additions provided in Minnesota Statutes, section 290.0131, subdivisions 8 to 10,
16, 17, and 19, and the subtractions provided in (i) Minnesota Statutes, section 290.0132,
subdivisions 9, 27, and 28, to the extent the amount is assignable or allocable to Minnesota
under Minnesota Statutes, section 290.17; and (ii) Minnesota Statutes, section 290.0132,
subdivision 14. The subtraction allowed under Minnesota Statutes, section 290.0132,
subdivision 9, is only allowed on the composite tax computation to the extent the electing
partner would have been allowed the subtractionnew text end .
(e) For the purpose of calculating property tax refunds under Minnesota Statutes, chapter
290A, any amounts allowed as a subtraction in paragraph (b) are excluded from "income,"
as defined in Minnesota Statutes, section 290A.03, subdivision 3.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively at the same time the changes
in Laws 2023, chapter 1, section 22, were effective for federal purposes.
new text end
ARTICLE 9
DEPARTMENT OF REVENUE: SALES AND USE TAXES
Section 1.
Minnesota Statutes 2024, section 297A.71, subdivision 54, is amended to read:
Subd. 54.
Sustainable aviation fuel facilities.
(a) Materials and supplies used or
consumed in and equipment incorporated into the construction, reconstruction, or
improvement of a facility located in Minnesota that produces or blends sustainable aviation
fuel, as defined in section 41A.30, subdivision 1, deleted text begin isdeleted text end new text begin if materials, supplies, and equipment
are purchased after June 30, 2027, and before July 1, 2034, arenew text end exempt.
(b) The tax must be imposed and collected as if the rate under section 297A.62,
subdivision 1, applied and then refunded in the manner as provided for projects under section
297A.75, subdivision 1deleted text begin , clause (1)deleted text end .
(c) For a project, a portion of which is not used to produce or blend sustainable aviation
fuel, the amount of purchases that are exempt under this subdivision must be determined
by multiplying the total purchases, as specified in paragraph (a), by the ratio of:
(1) the capacity to generate sustainable aviation fuel either through production or
blending; and
(2) the capacity to generate all fuels.
(d) This subdivision expires July 1, 2034. The expiration does not affect refunds due for
sales and purchases made prior to July 1, 2034.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2024, section 297A.75, subdivision 1, is amended to read:
Subdivision 1.
Tax collected.
The tax on the gross receipts from the sale of the following
exempt items must be imposed and collected as if the sale were taxable and the rate under
section 297A.62, subdivision 1, applied. The exempt items include:
(1) building materials for an agricultural processing facility exempt under section
297A.71, subdivision 13;
(2) building materials for mineral production facilities exempt under section 297A.71,
subdivision 14;
(3) building materials for correctional facilities under section 297A.71, subdivision 3;
(4) building materials used in a residence for veterans with a disability exempt under
section 297A.71, subdivision 11;
(5) elevators and building materials exempt under section 297A.71, subdivision 12;
(6) materials and supplies for qualified low-income housing under section 297A.71,
subdivision 23;
(7) materials, supplies, and equipment for municipal electric utility facilities under
section 297A.71, subdivision 35;
(8) equipment and materials used for the generation, transmission, and distribution of
electrical energy and an aerial camera package exempt under section 297A.68, subdivision
37;
(9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph
(a), clause (10);
(10) materials, supplies, and equipment for construction or improvement of projects and
facilities under section 297A.71, subdivision 40;
(11) enterprise information technology equipment and computer software for use in a
qualified data center exempt under section 297A.68, subdivision 42;
(12) materials, supplies, and equipment for qualifying capital projects under section
297A.71, subdivision 44, paragraph (a), clause (1), and paragraph (b);
(13) items purchased for use in providing critical access dental services exempt under
section 297A.70, subdivision 7, paragraph (c);
(14) items and services purchased under a business subsidy agreement for use or
consumption primarily in greater Minnesota exempt under section 297A.68, subdivision
44;
(15) building materials, equipment, and supplies for constructing or replacing real
property exempt under section 297A.71, subdivisions 49; 50, paragraph (b); and 51;
(16) building materials, equipment, and supplies for qualifying capital projects under
section 297A.71, subdivision 52; deleted text begin and
deleted text end
(17) building materials, equipment, and supplies for constructing, remodeling, expanding,
or improving a fire station, police station, or related facilities exempt under section 297A.71,
subdivision 53deleted text begin .deleted text end new text begin ; and
new text end
new text begin
(18) building materials, equipment, and supplies for constructing, remodeling, or
improving a sustainable aviation fuel facility exempt under section 297A.71, subdivision
54.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3.
Minnesota Statutes 2024, section 297A.75, subdivision 2, is amended to read:
Subd. 2.
Refund; eligible persons.
Upon application on forms prescribed by the
commissioner, a refund equal to the tax paid on the gross receipts of the exempt items must
be paid to the applicant. Only the following persons may apply for the refund:
(1) for subdivision 1, clauses (1), (2), and (13), the applicant must be the purchaser;
(2) for subdivision 1, clause (3), the applicant must be the governmental subdivision;
(3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits
provided in United States Code, title 38, chapter 21;
(4) for subdivision 1, clause (5), the applicant must be the owner of the homestead
property;
(5) for subdivision 1, clause (6), the owner of the qualified low-income housing project;
(6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or a
joint venture of municipal electric utilities;
(7) for subdivision 1, clauses (8), (11), and (14), the owner of the qualifying business;
(8) for subdivision 1, clauses (9), (10), (12), (16), and (17), the applicant must be the
governmental entity that owns or contracts for the project or facility; deleted text begin and
deleted text end
(9) for subdivision 1, clause (15), the applicant must be the owner or developer of the
building or projectdeleted text begin .deleted text end new text begin ; and
new text end
new text begin
(10) for subdivision 1, clause (18), the applicant must be the owner or developer of the
sustainable aviation fuel facility.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 4.
Minnesota Statutes 2024, section 297A.75, subdivision 3, is amended to read:
Subd. 3.
Application.
(a) The application must include sufficient information to permit
the commissioner to verify the tax paid. If the tax was paid by a contractor, subcontractor,
or builder, under subdivision 1, clauses (3) to (12) or (14) to deleted text begin (17)deleted text end new text begin (18)new text end , the contractor,
subcontractor, or builder must furnish to the refund applicant a statement including the cost
of the exempt items and the taxes paid on the items unless otherwise specifically provided
by this subdivision. The provisions of sections 289A.40 and 289A.50 apply to refunds under
this section.
(b) An applicant may not file more than two applications per calendar year for refunds
for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 5.
Minnesota Statutes 2024, section 297A.94, is amended to read:
297A.94 DEPOSIT OF REVENUES.
(a) Except as provided in this section, the commissioner shall deposit the revenues,
including interest and penalties, derived from the taxes imposed by this chapter in the state
treasury and credit them to the general fund.
(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic
account in the special revenue fund if:
(1) the taxes are derived from sales and use of property and services purchased for the
construction and operation of an agricultural resource project; and
(2) the purchase was made on or after the date on which a conditional commitment was
made for a loan guaranty for the project under section 41A.04, subdivision 3.
The commissioner of management and budget shall certify to the commissioner the date on
which the project received the conditional commitment. The amount deposited in the loan
guaranty account must be reduced by any refunds and by the costs incurred by the Department
of Revenue to administer and enforce the assessment and collection of the taxes.
(c) The commissioner shall deposit the revenues, including interest and penalties, derived
from the taxes imposed on sales and purchases included in section 297A.61, subdivision 3,
paragraph (g), clauses (1) and (4), in the state treasury, and credit them as follows:
(1) first to the general obligation special tax bond debt service account in each fiscal
year the amount required by section 16A.661, subdivision 3, paragraph (b); and
(2) after the requirements of clause (1) have been met, the balance to the general fund.
(d) Beginning with sales taxes remitted after July 1, 2017, the commissioner shall deposit
in the state treasury the revenues collected under section 297A.64, subdivision 1, including
interest and penalties and minus refunds, and credit them to the highway user tax distribution
fund.
(e) The commissioner shall deposit the revenues, including interest and penalties,
collected under section 297A.64, subdivision 5, in the state treasury and credit them to the
general fund. By July 15 of each year the commissioner shall transfer to the highway user
tax distribution fund an amount equal to the excess fees collected under section 297A.64,
subdivision 5, for the previous calendar year.
(f) Beginning with sales taxes remitted after July 1, 2017, in conjunction with the deposit
of revenues under paragraph (d), the commissioner shall deposit into the state treasury and
credit to the highway user tax distribution fund an amount equal to the estimated revenues
derived from the tax rate imposed under section 297A.62, subdivision 1, on the lease or
rental for not more than 28 days of rental motor vehicles subject to section 297A.64. The
commissioner shall estimate the amount of sales tax revenue deposited under this paragraph
based on the amount of revenue deposited under paragraph (d).
(g) new text begin Each month new text end the commissioner must deposit deleted text begin thedeleted text end new text begin an amount equal to the estimatednew text end
revenues derived from the taxes imposed under section 297A.62, subdivision 1, on the sale
and purchase of motor vehicle repair and replacement parts in the state treasury and credit:
(1) 43.5 percent in each fiscal year to the highway user tax distribution fund;
(2) a percentage to the transportation advancement account under section 174.49 as
follows:
(i) 3.5 percent in fiscal year 2024;
(ii) 4.5 percent in fiscal year 2025;
(iii) 5.5 percent in fiscal year 2026;
(iv) 7.5 percent in fiscal year 2027;
(v) 14.5 percent in fiscal year 2028;
(vi) 21.5 percent in fiscal year 2029;
(vii) 28.5 percent in fiscal year 2030;
(viii) 36.5 percent in fiscal year 2031;
(ix) 44.5 percent in fiscal year 2032; and
(x) 56.5 percent in fiscal year 2033 and thereafter; and
(3) the remainder in each fiscal year to the general fund.
new text begin After each February forecast, and prior to the following April 15, the commissioner shall
estimate the monthly deposit amount for use in the following fiscal year based on the estimate
of average revenue derived from the taxes imposed under section 297A.62, subdivision 1,
on the sale and purchase of motor vehicle repair and replacement parts from the department's
three most recent consumption tax models. new text end For purposes of this paragraph, "motor vehicle"
has the meaning given in section 297B.01, subdivision 11, and "motor vehicle repair and
replacement parts" includes (i) all parts, tires, accessories, and equipment incorporated into
or affixed to the motor vehicle as part of the motor vehicle maintenance and repair, and (ii)
paint, oil, and other fluids that remain on or in the motor vehicle as part of the motor vehicle
maintenance or repair. For purposes of this paragraph, "tire" means any tire of the type used
on highway vehicles, if wholly or partially made of rubber and if marked according to
federal regulations for highway use.
(h) 81.56 percent of the revenues, including interest and penalties, transmitted to the
commissioner under section 297A.65, must be deposited by the commissioner in the state
treasury as follows:
(1) 47.5 percent of the receipts must be deposited in the heritage enhancement account
in the game and fish fund, and may be spent only on activities that improve, enhance, or
protect fish and wildlife resources, including conservation, restoration, and enhancement
of land, water, and other natural resources of the state;
(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and may
be spent only for state parks and trails;
(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and may
be spent only on metropolitan park and trail grants;
(4) three percent of the receipts must be deposited in the natural resources fund, and
may be spent only on local trail grants;
(5) two percent of the receipts must be deposited in the natural resources fund, and may
be spent only for the Minnesota Zoological Garden, the Como Park Zoo and Conservatory,
and the Duluth Zoo; and
(6) 2.5 percent of the receipts must be deposited in the pollinator account established in
section 103B.101, subdivision 19.
(i) 1.5 percent of the revenues, including interest and penalties, transmitted to the
commissioner under section 297A.65 must be deposited in a regional parks and trails account
in the natural resources fund and may only be spent for parks and trails of regional
significance outside of the seven-county metropolitan area under section 85.535, based on
recommendations from the Greater Minnesota Regional Parks and Trails Commission under
section 85.536.
(j) 1.5 percent of the revenues, including interest and penalties, transmitted to the
commissioner under section 297A.65 must be deposited in an outdoor recreational
opportunities for underserved communities account in the natural resources fund and may
only be spent on projects and activities that connect diverse and underserved Minnesotans
through expanding cultural environmental experiences, exploration of their environment,
and outdoor recreational activities.
(k) The revenue dedicated under paragraph (h) may not be used as a substitute for
traditional sources of funding for the purposes specified, but the dedicated revenue shall
supplement traditional sources of funding for those purposes. Land acquired with money
deposited in the game and fish fund under paragraph (h) must be open to public hunting
and fishing during the open season, except that in aquatic management areas or on lands
where angling easements have been acquired, fishing may be prohibited during certain times
of the year and hunting may be prohibited. At least 87 percent of the money deposited in
the game and fish fund for improvement, enhancement, or protection of fish and wildlife
resources under paragraph (h) must be allocated for field operations.
(l) The commissioner must deposit the revenues, including interest and penalties minus
any refunds, derived from the sale of items regulated under section 624.20, subdivision 1,
that may be sold to persons 18 years old or older and that are not prohibited from use by
the general public under section 624.21, in the state treasury and credit:
(1) 25 percent to the volunteer fire assistance grant account established under section
88.068;
(2) 25 percent to the fire safety account established under section 297I.06, subdivision
3; and
(3) the remainder to the general fund.
For purposes of this paragraph, the percentage of total sales and use tax revenue derived
from the sale of items regulated under section 624.20, subdivision 1, that are allowed to be
sold to persons 18 years old or older and are not prohibited from use by the general public
under section 624.21, is a set percentage of the total sales and use tax revenues collected in
the state, with the percentage determined under Laws 2017, First Special Session chapter
1, article 3, section 39.
(m) The revenues deposited under paragraphs (a) to (l) do not include the revenues,
including interest and penalties, generated by the sales tax imposed under section 297A.62,
subdivision 1a, which must be deposited as provided under the Minnesota Constitution,
article XI, section 15.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 6.
Minnesota Statutes 2024, section 297A.99, subdivision 10, is amended to read:
Subd. 10.
Use of zip code in determining location of sale.
new text begin (a) new text end The lowest combined
tax rate imposed in the zip code area applies if the area includes more than one tax rate in
any level of taxing jurisdictions.
new text begin (b)new text end If a nine-digit zip code designation is not available for a street address or if a seller
is unable to determine the nine-digit zip code designation of a purchaser after exercising
due diligence to determine the designation, the seller may apply the rate for the five-digit
zip code area.
new text begin (c)new text end For the purposes of this subdivision, there is a rebuttable presumption that a seller
has exercised due diligencenew text begin for a sale that requires a full street address to be completednew text end if
the seller has attempted to determine the nine-digit zip code designation by utilizingnew text begin (1) the
look-up application form the United States Postal Service; (2) software certified by the
Coding Accuracy Support System; or (3) othernew text end software approved by the governing board
that makes this designation from the street address and the five-digit zip code of the
purchaser.new text begin For a sale that does not require a full street address to be completed, a seller has
not exercised due diligence unless the seller has obtained or requested from the purchaser
(1) the complete street address, including the five-digit zip code; or (2) the nine-digit zip
code. A seller that has not exercised due diligence is not relieved from any additional liability
that may be due as a result of incorrect sourcing.
new text end
new text begin (d)new text end Notwithstanding subdivision 13, this subdivision applies to all local sales taxes
without regard to the date of authorization. This subdivision does not apply when the
purchased product is received by the purchaser at the business location of the seller.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2025.
new text end
Sec. 7.
Minnesota Statutes 2024, section 297A.995, subdivision 2, is amended to read:
Subd. 2.
Definitions.
As used in this section:
(a) "Agreement" means the Streamlined Sales and Use Tax Agreement.
(b) "Certified automated system" means software certified jointly by the states that are
signatories to the agreement to calculate the tax imposed by each jurisdiction on a transaction,
determine the amount of tax to remit to the appropriate state, and maintain a record of the
transaction.
(c) "Certified service provider" means an agent certified deleted text begin jointly by the states that are
signatories to the agreement to perform all of the seller's sales tax functionsdeleted text end new text begin under the
Agreement to perform the seller's sales and use tax functions as outlined in the contract
between the Streamlined Sales Tax Governing Board and the certified service providers,
except that sellers retain the obligation to remit tax on their own purchasesnew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2025.
new text end
Sec. 8.
Minnesota Statutes 2024, section 297A.995, subdivision 10, is amended to read:
Subd. 10.
Relief from certain liability.
(a) Notwithstanding subdivision 9, sellers and
certified service providers are relieved from liability to the state for having charged and
collected the incorrect amount of sales or use tax resulting from the seller or certified service
provider (1) relying on erroneous data provided by the commissioner in the database files
on tax rates, boundaries, or taxing jurisdiction assignments, or (2) relying on erroneous data
provided by the state in its taxability matrix concerning the taxability of products and
services.
(b) Notwithstanding subdivision 9, sellers and certified service providers are relieved
from liability to the state for having charged and collected the incorrect amount of sales or
use tax resulting from the seller or certified service provider relying on the certification by
the commissioner as to the accuracy of a certified automated system as to the taxability of
product categories. The relief from liability provided by this paragraph does not apply when
the sellers or certified service providers have incorrectly classified an item or transaction
into a product category, unless the item or transaction within a product category was approved
by the commissioner or approved jointly by the states that are signatories to the agreement.
The sellers and certified service providers must revise a classification within ten days after
receipt of notice from the commissioner that an item or transaction within a product category
is incorrectly classified as to its taxability, or they are not relieved from liability for the
incorrect classification following the notification.
(c) Notwithstanding subdivision 9, if there are not at least 30 days between the enactment
of a new tax rate and the effective date of the new rate, sellers and certified service providers
shall be relieved from liability for failing to collect tax at the new rate during the first 30
days of the rate change, beginning on the day after the date of enactment of the rate change,
provided the seller or certified service provider continued to impose and collect the tax at
the immediately preceding tax rate during this period. Relief from liability provided by this
paragraph shall not apply if the failure to collect at the newly effective rate extends beyond
30 days after the enactment of the new rate. The relief provided by this paragraph shall not
apply if the commissioner determines that the seller or certified service provider fraudulently
failed to collect at the new rate or that the seller or certified service provider solicited
purchasers based on the immediately preceding tax rate.
new text begin
(d) Certified service providers are relieved from liability to the state when a seller fails
to remit all or a portion of the seller's taxes prior to the due date of the remittance if the
certified service provider has provided notification as outlined in the contract between the
Streamlined Sales Tax Governing Board and the certified service provider.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after June
30, 2025.
new text end
ARTICLE 10
DEPARTMENT OF REVENUE: MISCELLANEOUS
Section 1.
Minnesota Statutes 2024, section 270C.445, subdivision 3, is amended to read:
Subd. 3.
Standards of conduct.
No tax preparer shall:
(1) without good cause fail to promptly, diligently, and without unreasonable delay
complete a client's return;
(2) obtain the signature of a client to a return or authorizing document that contains
blank spaces to be filled in after it has been signed;
(3) fail to sign a client's return when compensation for services rendered has been made;
(4) fail to provide on a client's return the preparer tax identification number when required
under section 6109(a)(4) of the Internal Revenue Code or section 289A.60, subdivision 28;
(5) fail or refuse to give a client a copy of any document requiring the client's signature
within a reasonable time after the client signs the document;
(6) fail to retain for at least four years a copy of a client's returns;
(7) fail to maintain a confidential relationship with clients or former clients;
(8) fail to take commercially reasonable measures to safeguard a client's nonpublic
personal information;
(9) make, authorize, publish, disseminate, circulate, or cause to make, either directly or
indirectly, any false, deceptive, or misleading statement or representation relating to or in
connection with the offering or provision of tax preparation services;
(10) require a client to enter into a loan arrangement in order to complete a client's return;
(11) claim credits or deductions on a client's return for which the tax preparer knows or
reasonably should know the client does not qualify;
(12) report a household income on a client's claim filed under chapter 290A that the tax
preparer knows or reasonably should know is not accurate;
(13) engage in any conduct that is subject to a penalty under section 289A.60, subdivision
13, 20, 20a, 26, or 28;
(14) whether or not acting as a taxpayer representative, fail to conform to the standards
of conduct required by Minnesota Rules, part 8052.0300, subpart 4;
(15) whether or not acting as a taxpayer representative, engage in any conduct that is
incompetent conduct under Minnesota Rules, part 8052.0300, subpart 5;
(16) whether or not acting as a taxpayer representative, engage in any conduct that is
disreputable conduct under Minnesota Rules, part 8052.0300, subpart 6;
(17) charge, offer to accept, or accept a fee based upon a percentage of an anticipated
refund for tax preparation services;
(18) under any circumstances, withhold or fail to return to a client a document provided
by the client for use in preparing the client's return;
(19) take control or ownership of a client's refundnew text begin or department paymentnew text end by any means,
including:
(i) directly or indirectly endorsing or otherwise negotiating a check or other refund
instrument, including an electronic version of a check;
(ii) directing an electronic or direct deposit of the refundnew text begin or department paymentnew text end into an
account unless the client's name is on the account; and
(iii) establishing or using an account in the preparer's name to receive a client's refundnew text begin
or department paymentnew text end through a direct deposit or any other instrument unless the client's
name is also on the account, except that a taxpayer may assign the portion of a refund
representing the Minnesota education credit available under section 290.0674 to a bank
account without the client's name, as provided under section 290.0679;
(20) fail to act in the best interests of the client;
(21) fail to safeguard and account for any money handled for the client;
(22) fail to disclose all material facts of which the preparer has knowledge which might
reasonably affect the client's rights and interests;
(23) violate any provision of section 332.37;
(24) include any of the following in any document provided or signed in connection
with the provision of tax preparation services:
(i) a hold harmless clause;
(ii) a confession of judgment or a power of attorney to confess judgment against the
client or appear as the client in any judicial proceeding;
(iii) a waiver of the right to a jury trial, if applicable, in any action brought by or against
a debtor;
(iv) an assignment of or an order for payment of wages or other compensation for
services;
(v) a provision in which the client agrees not to assert any claim or defense otherwise
available;
(vi) a waiver of any provision of this section or a release of any obligation required to
be performed on the part of the tax preparer; or
(vii) a waiver of the right to injunctive, declaratory, or other equitable relief or relief on
a class basis; or
(25) if making, providing, or facilitating a refund anticipation loan, fail to provide all
disclosures required by the federal Truth in Lending Act, United States Code, title 15, in a
form that may be retained by the client.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2024.
new text end
Sec. 2.
Minnesota Statutes 2024, section 270C.445, subdivision 6, is amended to read:
Subd. 6.
Enforcement; administrative order; penalties; cease and desist.
(a) The
commissioner may impose an administrative penalty of not more than $1,000 per violation
of subdivision 3 or 5, or section 270C.4451, provided that a penalty may not be imposed
for any conduct for which a tax preparer penalty is imposed under section 289A.60,
subdivision 13. The commissioner may terminate a tax preparer's authority to transmit
returns electronically to the state, if the commissioner determines the tax preparer engaged
in a pattern and practice of violating this section. Imposition of a penalty under this paragraph
is subject to the contested case procedure under chapter 14. The commissioner shall collect
the penalty in the same manner as the income tax. There is no right to make a claim for
refund under section 289A.50 of the penalty imposed under this paragraph. Penalties imposed
under this paragraph are public data.
(b) In addition to the penalty under paragraph (a), if the commissioner determines that
a tax preparer has violated subdivision 3 or 5, or section 270C.4451, the commissioner may
issue an administrative order to the tax preparer requiring the tax preparer to cease and
desist from committing the violation. The administrative order may include an administrative
penalty provided in paragraph (a).
(c) If the commissioner issues an administrative order under paragraph (b), the
commissioner must send the order to the tax preparer addressed to the last known address
of the tax preparer.
(d) A cease and desist order under paragraph (b) must:
(1) describe the act, conduct, or practice committed and include a reference to the law
that the act, conduct, or practice violates; and
(2) provide notice that the tax preparer may request a hearing as provided in this
subdivision.
(e) Within 30 days after the commissioner issues an administrative order under paragraph
(b), the tax preparer may request a hearing to review the commissioner's action. The request
for hearing must be made in writing and must be served on the commissioner at the address
specified in the order. The hearing request must specifically state the reasons for seeking
review of the order. The date on which a request for hearing is served by mail is the postmark
date on the envelope in which the request for hearing is mailed.
(f) If a tax preparer does not timely request a hearing regarding an administrative order
issued under paragraph (b), the order becomes a final order of the commissioner and is not
subject to review by any court or agency.
(g) If a tax preparer timely requests a hearing regarding an administrative order issued
under paragraph (b), the hearing must be commenced new text begin by the issuance of a notice of and
order for hearing by the commissioner new text end within deleted text begin tendeleted text end new text begin 30new text end days after the commissioner receives
the request for a hearing.
(h) A hearing timely requested under paragraph (e) is subject to the contested case
procedure under chapter 14, as modified by this subdivision. The administrative law judge
must issue a report containing findings of fact, conclusions of law, and a recommended
order within deleted text begin tendeleted text end new text begin 30new text end days after the completion of the hearing, the receipt of late-filed exhibits,
or the submission of written arguments, whichever is later.
(i) Within deleted text begin fivedeleted text end new text begin 15new text end days of the date of the administrative law judge's report issued under
paragraph (h), any party aggrieved by the administrative law judge's report may submit
written exceptions and arguments to the commissioner. Within deleted text begin 15deleted text end new text begin 45new text end days after receiving
the administrative law judge's report, the commissioner must issue an order vacating,
modifying, or making final the administrative order.
(j) The commissioner and the tax preparer requesting a hearing may by agreement
lengthen any time periods prescribed in paragraphs (g) to (i).
(k) An administrative order issued under paragraph (b) is in effect until it is modified
or vacated by the commissioner or an appellate court. The administrative hearing provided
by paragraphs (e) to (i) and any appellate judicial review as provided in chapter 14 constitute
the exclusive remedy for a tax preparer aggrieved by the order.
(l) The commissioner may impose an administrative penalty, in addition to the penalty
under paragraph (a), up to $5,000 per violation of a cease and desist order issued under
paragraph (b). Imposition of a penalty under this paragraph is subject to the contested case
procedure under chapter 14. Within 30 days after the commissioner imposes a penalty under
this paragraph, the tax preparer assessed the penalty may request a hearing to review the
penalty order. The request for hearing must be made in writing and must be served on the
commissioner at the address specified in the order. The hearing request must specifically
state the reasons for seeking review of the order. The cease and desist order issued under
paragraph (b) is not subject to review in a proceeding to challenge the penalty order under
this paragraph. The date on which a request for hearing is served by mail is the postmark
date on the envelope in which the request for hearing is mailed. If the tax preparer does not
timely request a hearing, the penalty order becomes a final order of the commissioner and
is not subject to review by any court or agency. A penalty imposed by the commissioner
under this paragraph may be collected and enforced by the commissioner as an income tax
liability. There is no right to make a claim for refund under section 289A.50 of the penalty
imposed under this paragraph. A penalty imposed under this paragraph is public data.
(m) If a tax preparer violates a cease and desist order issued under paragraph (b), the
commissioner may terminate the tax preparer's authority to transmit returns electronically
to the state. Termination under this paragraph is public data.
(n) A cease and desist order issued under paragraph (b) is public data when it is a final
order.
(o) Notwithstanding any other law, the commissioner may impose a penalty or take other
action under this subdivision against a tax preparer, with respect to a return, within the
period to assess tax on that return as provided by sections 289A.38 to 289A.382.
(p) Notwithstanding any other law, the imposition of a penalty or any other action against
a tax preparer under this subdivision, other than with respect to a return, must be taken by
the commissioner within five years of the violation of statute.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for penalties assessed and orders issued
after the day following final enactment.
new text end
Sec. 3.
Minnesota Statutes 2024, section 273.13, subdivision 22, is amended to read:
Subd. 22.
Class 1.
(a) Except as provided in subdivision 23 and in paragraphs (b) and
(c), real estate which is residential and used for homestead purposes is class 1a. In the case
of a duplex or triplex in which one of the units is used for homestead purposes, the entire
property is deemed to be used for homestead purposes. The market value of class 1a property
must be determined based upon the value of the house, garage, and land.
The first $500,000 of market value of class 1a property has a net classification rate of
one percent of its market value; and the market value of class 1a property that exceeds
$500,000 has a classification rate of 1.25 percent of its market value.
(b) Class 1b property includes homestead real estate or homestead manufactured homes
used for the purposes of a homestead by:
(1) any person who is blind as defined in section 256D.35, or the person who is blind
and the spouse of the person who is blind;
(2) any person who is permanently and totally disabled or by the person with a disability
and the spouse of the person with a disability; or
(3) the surviving spouse of a veteran who was permanently and totally disabled
homesteading a property classified under this paragraph for taxes payable in 2008.
Property is classified and assessed under clause (2) only if the government agency or
income-providing source certifies, upon the request of the homestead occupant, that the
homestead occupant satisfies the disability requirements of this paragraph, and that the
property is not eligible for the valuation exclusion under subdivision 34.
Property is classified and assessed under paragraph (b) only if the commissioner of
revenue or the county assessor certifies that the homestead occupant satisfies the requirements
of this paragraph.
Permanently and totally disabled for the purpose of this subdivision means a condition
which is permanent in nature and totally incapacitates the person from working at an
occupation which brings the person an income. The first $50,000 market value of class 1b
property has a net classification rate of deleted text begin .45deleted text end new text begin 0.45new text end percent of its market value. The remaining
market value of class 1b property is classified as class 1anew text begin property,new text end deleted text begin ordeleted text end class 2a property,new text begin or
class 4d(2) property,new text end whichever is appropriate.
(c) Class 1c property is commercial use real and personal property that abuts public
water as defined in section 103G.005, subdivision 15, or abuts a state trail administered by
the Department of Natural Resources, and is devoted to temporary and seasonal residential
occupancy for recreational purposes but not devoted to commercial purposes for more than
250 days in the year preceding the year of assessment, and that includes a portion used as
a homestead by the owner, which includes a dwelling occupied as a homestead by a
shareholder of a corporation that owns the resort, a partner in a partnership that owns the
resort, or a member of a limited liability company that owns the resort even if the title to
the homestead is held by the corporation, partnership, or limited liability company. For
purposes of this paragraph, property is devoted to a commercial purpose on a specific day
if any portion of the property, excluding the portion used exclusively as a homestead, is
used for residential occupancy and a fee is charged for residential occupancy. Class 1c
property must contain three or more rental units. A "rental unit" is defined as a cabin,
condominium, townhouse, sleeping room, or individual camping site equipped with water
and electrical hookups for recreational vehicles. Class 1c property must provide recreational
activities such as the rental of ice fishing houses, boats and motors, snowmobiles, downhill
or cross-country ski equipment; provide marina services, launch services, or guide services;
or sell bait and fishing tackle. Any unit in which the right to use the property is transferred
to an individual or entity by deeded interest, or the sale of shares or stock, no longer qualifies
for class 1c even though it may remain available for rent. A camping pad offered for rent
by a property that otherwise qualifies for class 1c is also class 1c, regardless of the term of
the rental agreement, as long as the use of the camping pad does not exceed 250 days. If
the same owner owns two separate parcels that are located in the same township, and one
of those properties is classified as a class 1c property and the other would be eligible to be
classified as a class 1c property if it was used as the homestead of the owner, both properties
will be assessed as a single class 1c property; for purposes of this sentence, properties are
deemed to be owned by the same owner if each of them is owned by a limited liability
company, and both limited liability companies have the same membership. The portion of
the property used as a homestead is class 1a property under paragraph (a). The remainder
of the property is classified as follows: the first $600,000 of market value is tier I, the next
$1,700,000 of market value is tier II, and any remaining market value is tier III. The
classification rates for class 1c are: tier I, 0.50 percent; tier II, 1.0 percent; and tier III, 1.25
percent. Owners of real and personal property devoted to temporary and seasonal residential
occupancy for recreation purposes in which all or a portion of the property was devoted to
commercial purposes for not more than 250 days in the year preceding the year of assessment
desiring classification as class 1c, must submit a declaration to the assessor designating the
cabins or units occupied for 250 days or less in the year preceding the year of assessment
by January 15 of the assessment year. Those cabins or units and a proportionate share of
the land on which they are located must be designated as class 1c as otherwise provided.
The remainder of the cabins or units and a proportionate share of the land on which they
are located must be designated as class 3a commercial. The owner of property desiring
designation as class 1c property must provide guest registers or other records demonstrating
that the units for which class 1c designation is sought were not occupied for more than 250
days in the year preceding the assessment if so requested. The portion of a property operated
as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5)
other nonresidential facility operated on a commercial basis not directly related to temporary
and seasonal residential occupancy for recreation purposes does not qualify for class 1c.
(d) Class 1d property includes structures that meet all of the following criteria:
(1) the structure is located on property that is classified as agricultural property under
section 273.13, subdivision 23;
(2) the structure is occupied exclusively by seasonal farm workers during the time when
they work on that farm, and the occupants are not charged rent for the privilege of occupying
the property, provided that use of the structure for storage of farm equipment and produce
does not disqualify the property from classification under this paragraph;
(3) the structure meets all applicable health and safety requirements for the appropriate
season; and
(4) the structure is not salable as residential property because it does not comply with
local ordinances relating to location in relation to streets or roads.
The market value of class 1d property has the same classification rates as class 1a property
under paragraph (a).
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with assessment year 2025
and thereafter.
new text end
Sec. 4.
Minnesota Statutes 2024, section 289A.12, subdivision 18, is amended to read:
Subd. 18.
deleted text begin Returnsdeleted text end new text begin Returnnew text end by qualified heirs.
A qualified heir, as defined in section
291.03, subdivision 8, paragraph (c), must file deleted text begin two returnsdeleted text end new text begin a returnnew text end with the commissioner
attesting that no disposition or cessation as provided by section 291.03, subdivision 11,
paragraph (a), occurred. deleted text begin The first return must be filed no earlier than 24 months and no later
than 26 months after the decedent's death.deleted text end The deleted text begin seconddeleted text end return must be filed no earlier than
36 months and no later than 39 months after the decedent's death.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 5.
Minnesota Statutes 2024, section 297E.06, subdivision 4, is amended to read:
Subd. 4.
Annual auditdeleted text begin ,deleted text end new text begin andnew text end certified inventorydeleted text begin , and cash countdeleted text end .
(a) An organization
licensed under chapter 349 with gross receipts from lawful gambling of more than $750,000
in any year must have an annual financial audit of its lawful gambling activities and funds
for that year. For the purposes of this subdivision, "gross receipts" does not include a licensed
organization's receipts from electronic pull-tabs regulated under chapter 349 provided the
electronic pull-tab manufacturer has completed an annual system and organization controls
audit, containing standards that must incorporate and be consistent with standards prescribed
by the American Institute of Certified Public Accountants.
(b) The commissioner may require a financial audit of the lawful gambling activities
and funds of an organization licensed under chapter 349, with gross receipts less than
$750,000 annually, when an organization has:
(1) failed to timely file required gambling tax returns;
(2) failed to timely pay the gambling tax or regulatory fee;
(3) filed fraudulent gambling tax returns;
(4) failed to take corrective actions required by the commissioner; or
(5) failed to otherwise comply with this chapter.
(c) Audits under this subdivision must be performed by an independent accountant firm
licensed in accordance with chapter 326A.
(d) An organization licensed under chapter 349 must perform an annual certified inventory
deleted text begin and cash countdeleted text end new text begin report new text end at the end of its fiscal year and submit the report to the commissioner
within 30 days after the end of its fiscal year. The report shall be on a form prescribed by
the commissioner.
(e) The commissioner of revenue shall prescribe standards for the auditsdeleted text begin ,deleted text end new text begin andnew text end certified
inventorydeleted text begin , and cash count reportsdeleted text end new text begin reportnew text end required under this subdivision. The standards may
vary based on the gross receipts of the organization. The standards must incorporate and
be consistent with standards prescribed by the American Institute of Certified Public
Accountants. A complete, true, and correct copy of the audits, certified inventory, and cash
count report must be filed as prescribed by the commissioner.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2025.
new text end
Sec. 6.
Minnesota Statutes 2024, section 297I.20, subdivision 4, is amended to read:
Subd. 4.
Film production credit.
(a) A taxpayer may claim a credit against the premiums
tax imposed under this chapter equal to the amount indicated on the credit certificate
statement issued to the company under section 116U.27. If the amount of the credit exceeds
the taxpayer's liability for tax under this chapter, the excess is a credit carryover to each of
the five succeeding taxable years. The entire amount of the excess unused credit for the
taxable year must be carried first to the earliest of the taxable years to which the credit may
be carried and then to each successive year to which the credit may be carried. This credit
does not affect the calculation of fire state aid under section 477B.03 and police state aid
under section 477C.03.
(b) This subdivision expires January 1, deleted text begin 2025deleted text end new text begin 2031new text end , for taxable years beginning after and
premiums received after December 31, deleted text begin 2024deleted text end new text begin 2030new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 7.
Laws 2023, chapter 1, section 28, is amended to read:
Sec. 28. EXTENSION OF STATUTE OF LIMITATIONS.
(a) Notwithstanding any law to the contrary, a taxpayer whose tax liability changes as
a result of this act may file an amended return by December 31, 2023. The commissioner
may review and assess the return of a taxpayer covered by this provision for the later of:
(1) the periods under Minnesota Statutes, sections 289A.38; deleted text begin 289.39deleted text end new text begin 289A.39new text end , subdivision
3; and 289A.40; or
(2) one year from the time the amended return is filed as a result of a change in tax
liability under this section.
(b) Interest on any additional liabilities as a result of any provision in this act accrue
beginning on January 1, 2024.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective retroactively at the same time the changes
incorporated in Laws 2023, chapter 1, were effective for federal purposes.
new text end
APPENDIX
Repealed Minnesota Statutes: H2437-2
13.4967 OTHER TAX DATA CODED ELSEWHERE.
Subd. 2a.
Assignment of refund.
Data regarding assignment of individual income tax refunds is classified by section 290.0679, subdivision 9.
Subd. 5.
Marijuana and controlled substance tax information.
Disclosure of information obtained under chapter 297D is governed by section 297D.13, subdivisions 1 to 3.
290.0679 ASSIGNMENT OF REFUND.
Subdivision 1.
Definitions.
(a) "Qualifying taxpayer" means a resident who has a child in kindergarten through grade 12 in the current tax year and who met the income requirements under section 290.0674, subdivision 2, for receiving the education credit in the tax year preceding the assignment of the taxpayer's refund.
(b) "Education credit" means the credit allowed under section 290.0674.
(c) "Refund" means an individual income tax refund.
(d) "Financial institution" means a state or federally chartered bank, savings bank, savings association, or credit union.
(e) "Qualifying organization" means a tax-exempt organization under section 501(c)(3) of the Internal Revenue Code.
(f) "Assignee" means a financial institution or qualifying organization that is entitled to receive payment of a refund assigned under this section.
Subd. 2.
Conditions for assignment.
A qualifying taxpayer may assign all or part of an anticipated refund for the current and future taxable years to a financial institution or a qualifying organization. A financial institution or qualifying organization accepting assignment must pay the amount secured by the assignment to a third-party vendor. The commissioner of education shall, upon request from a third-party vendor, certify that the vendor's products and services qualify for the education credit. A denial of a certification may be appealed to the commissioner pursuant to this subdivision and notwithstanding chapter 14. A financial institution or qualifying organization that accepts assignments under this section must verify as part of the assignment documentation that the product or service to be provided by the third-party vendor has been certified by the commissioner of education as qualifying for the education credit. The amount assigned for the current and future taxable years may not exceed the maximum allowable education credit for the current taxable year. Both the taxpayer and spouse must consent to the assignment of a refund from a joint return.
Subd. 3.
Consent for disclosure.
When the taxpayer applies to the financial institution or the qualifying organization for a loan to be secured by the assignment under subdivision 2, the taxpayer must sign a written consent on a form prescribed by the commissioner. The consent must authorize the commissioner to disclose to the financial institution or qualifying organization the total amount of state taxes owed or revenue recapture claims filed under chapter 270A against the taxpayer, and the total amount of outstanding assignments made by the taxpayer under this section. For a refund from a joint return, the consent must also authorize the disclosure of taxes, revenue recapture claims, and assignments relating to the taxpayer's spouse, and must be signed by the spouse. The financial institution or qualifying organization may request that the taxpayer provide a copy of the taxpayer's previous year's income tax return, if any, and may assist the taxpayer in requesting a copy of the previous year's return from the commissioner.
Subd. 4.
Consumer disclosure.
(a) A third-party vendor that receives payment of the amount secured by an assignment must comply with the requirements of this subdivision.
(b) The third-party vendor must disclose to the taxpayer, in plain language:
(1) the cost of each product or service for which the third-party vendor separately charges the taxpayer;
(2) any fees charged to the taxpayer for tax preparation services; and
(3) for qualifying low-income taxpayers, information on the availability of free tax preparation services.
(c) The third-party vendor must provide to the taxpayer executed copies of any documents signed by the taxpayer.
Subd. 5.
Filing of assignment.
The commissioner shall prescribe the form of and manner for filing an assignment of a refund under this section.
Subd. 6.
Effect of assignment.
The taxpayer may not revoke an assignment after it has been filed. The assignee must notify the commissioner if the loan secured by the assignment has been paid in full, in which case the assignment is canceled. An assignment is in effect until the amount assigned is refunded in full to the assignee, or until the assignee cancels the assignment.
Subd. 7.
Payment of refund.
When a refund assigned under this section is issued by the commissioner, the proceeds of the refund, as defined in subdivision 1, paragraph (c), must be distributed in the following order:
(1) to satisfy any delinquent tax obligations of the taxpayer which are owed to the commissioner;
(2) to claimant agencies to satisfy any revenue recapture claims filed against the taxpayer, in the order of priority of the claims set forth in section 270A.10;
(3) to assignees to satisfy assignments under this section, based on the order in time in which the commissioner received the assignments; and
(4) to the taxpayer.
Subd. 8.
Legal action.
If there is a dispute between the taxpayer and the assignee after the commissioner has remitted the taxpayer's refund to the assignee, the taxpayer's only remedy is to bring an action against the assignee in court to recover the refund. The action must be brought within two years after the commissioner remits the refund to the assignee. The commissioner may not be a party to the proceeding.
Subd. 9.
Assignments private data.
Information regarding assignments under this section is classified as private data on individuals.
297D.01 DEFINITIONS.
Subdivision 1.
Illegal cannabis.
"Illegal cannabis" means any taxable cannabis product as defined in section 295.81, subdivision 1, paragraph (r), whether real or counterfeit, that is held, possessed, transported, transferred, sold, or offered to be sold in violation of chapter 342 or Minnesota criminal laws.
Subd. 2.
Controlled substance.
"Controlled substance" means any drug or substance, whether real or counterfeit, as defined in section 152.01, subdivision 4, that is held, possessed, transported, transferred, sold, or offered to be sold in violation of Minnesota laws. "Controlled substance" does not include illegal cannabis.
Subd. 3.
Tax obligor or obligor.
"Tax obligor" or "obligor" means a person who in violation of Minnesota law manufactures, produces, ships, transports, or imports into Minnesota or in any manner acquires or possesses more than 42-1/2 grams of illegal cannabis, or seven or more grams of any controlled substance, or ten or more dosage units of any controlled substance which is not sold by weight. A quantity of illegal cannabis or other controlled substance is measured by the weight of the substance whether pure or impure or dilute, or by dosage units when the substance is not sold by weight, in the tax obligor's possession. A quantity of a controlled substance is dilute if it consists of a detectable quantity of pure controlled substance and any excipients or fillers.
Subd. 4.
Commissioner.
"Commissioner" means the commissioner of revenue.
297D.02 ADMINISTRATION.
The commissioner of revenue shall administer this chapter. The commissioner shall prescribe the content, format, and manner of all forms and other documents required to be filed under this chapter pursuant to section 270C.30. Payments required by this chapter must be made to the commissioner on the form provided by the commissioner. Tax obligors are not required to give their name, address, Social Security number, or other identifying information on the form. The commissioner shall collect all taxes under this chapter.
297D.03 RULES.
The commissioner may adopt rules necessary to enforce this chapter. The commissioner shall adopt a uniform system of providing, affixing, and displaying official stamps, official labels, or other official indicia for marijuana and controlled substances on which a tax is imposed.
297D.04 TAX PAYMENT REQUIRED FOR POSSESSION.
No tax obligor may possess any illegal cannabis or controlled substance upon which a tax is imposed by section 297D.08 unless the tax has been paid on the illegal cannabis or a controlled substance as evidenced by a stamp or other official indicia.
297D.05 NO IMMUNITY.
Nothing in this chapter may in any manner provide immunity for a tax obligor from criminal prosecution pursuant to Minnesota law.
297D.06 PHARMACEUTICALS.
Nothing in this chapter requires persons registered under chapter 151 or otherwise lawfully in possession of illegal cannabis or a controlled substance to pay the tax required under this chapter.
297D.07 MEASUREMENT.
For the purpose of calculating the tax under section 297D.08, a quantity of illegal cannabis or a controlled substance is measured by the weight of the substance whether pure or impure or dilute, or by dosage units when the substance is not sold by weight, in the tax obligor's possession. A quantity of a controlled substance is dilute if it consists of a detectable quantity of pure controlled substance and any excipients or fillers.
297D.08 TAX RATE.
A tax is imposed on illegal cannabis and controlled substances as defined in section 297D.01 at the following rates:
(1) on each gram of illegal cannabis, or each portion of a gram, $3.50; and
(2) on each gram of controlled substance, or portion of a gram, $200; or
(3) on each ten dosage units of a controlled substance that is not sold by weight, or portion thereof, $400.
297D.085 CREDIT FOR PREVIOUSLY PAID TAXES.
If another state or local unit of government has previously assessed an excise tax on the illegal cannabis or controlled substances, the taxpayer must pay the difference between the tax due under section 297D.08 and the tax previously paid. If the tax previously paid to the other state or local unit of government was equal to or greater than the tax due under section 297D.08, no tax is due. The burden is on the taxpayer to show that an excise tax on the illegal cannabis or controlled substances has been paid to another state or local unit of government.
297D.09 PENALTIES; CRIMINAL PROVISIONS.
Subdivision 1.
Penalties.
Any tax obligor violating this chapter is subject to a penalty of 100 percent of the tax in addition to the tax imposed by section 297D.08. The penalty will be collected as part of the tax.
Subd. 1a.
Criminal penalty; sale without affixed stamps.
In addition to the tax penalty imposed, a tax obligor distributing or possessing illegal cannabis or controlled substances without affixing the appropriate stamps, labels, or other indicia is guilty of a crime and, upon conviction, may be sentenced to imprisonment for not more than seven years or to payment of a fine of not more than $14,000, or both.
Subd. 2.
Statute of limitations.
Notwithstanding section 628.26, or any other provision of the criminal laws of this state, an indictment may be found and filed, or a complaint filed, upon any criminal offense specified in this section, in the proper court within six years after the commission of this offense.
297D.10 STAMP PRICE.
Official stamps, labels, or other indicia to be affixed to all illegal cannabis or controlled substances shall be purchased from the commissioner. The purchaser shall pay 100 percent of face value for each stamp, label, or other indicia at the time of the purchase.
297D.11 PAYMENT DUE.
Subdivision 1.
Stamps affixed.
When a tax obligor purchases, acquires, transports, or imports into this state illegal cannabis or controlled substances on which a tax is imposed by section 297D.08, and if the indicia evidencing the payment of the tax have not already been affixed, the tax obligor shall have them permanently affixed on the illegal cannabis or controlled substance immediately after receiving the substance. Each stamp or other official indicia may be used only once.
Subd. 2.
Payable on possession.
Taxes imposed upon illegal cannabis or controlled substances by this chapter are due and payable immediately upon acquisition or possession in this state by a tax obligor.
297D.12 ALL ASSESSMENTS ARE JEOPARDY.
Subdivision 1.
Assessment procedure.
An assessment for a tax obligor not possessing valid stamps or other official indicia showing that the tax has been paid shall be considered a jeopardy assessment or collection, as provided in section 270C.36. The commissioner shall assess a tax and applicable penalties based on personal knowledge or information available to the commissioner; mail the taxpayer at the taxpayer's last known address or serve in person, a written notice of the amount of tax and penalty; demand its immediate payment; and, if payment is not immediately made, collect the tax and penalty by any method prescribed in chapter 270C, except that the commissioner need not await the expiration of the times specified in chapter 270C.
Subd. 2.
Injunction prohibited.
No person may bring suit to enjoin the assessment or collection of any taxes, interest, or penalties imposed by this chapter.
Subd. 3.
Standard of proof.
The tax and penalties assessed by the commissioner are presumed to be valid and correctly determined and assessed. The burden is upon the taxpayer to show their incorrectness or invalidity. Any statement filed by the commissioner with the court administrator, or any other certificate by the commissioner of the amount of tax and penalties determined or assessed is admissible in evidence and is prima facie evidence of the facts it contains.
297D.13 CONFIDENTIAL NATURE OF INFORMATION.
Subdivision 1.
Disclosure prohibited.
Notwithstanding any law to the contrary, neither the commissioner nor a public employee may reveal facts contained in a report or return required by this chapter or any information obtained from a tax obligor; nor can any information contained in such a report or return or obtained from a tax obligor be used against the tax obligor in any criminal proceeding, unless independently obtained, except in connection with a proceeding involving taxes due under this chapter from the tax obligor making the return.
Subd. 2.
Penalty for disclosure.
Any person violating this section is guilty of a gross misdemeanor.
Subd. 3.
Statistics.
This section does not prohibit the commissioner from publishing statistics that do not disclose the identity of tax obligors or the contents of particular returns or reports.
Subd. 4.
Possession of stamps.
A stamp denoting payment of the tax imposed under this chapter must not be used against the taxpayer in a criminal proceeding, except that the stamp may be used against the taxpayer in connection with the administration or civil or criminal enforcement of the tax imposed under this chapter or any similar tax imposed by another state or local unit of government.
477A.32 LOCAL GOVERNMENT CANNABIS AID.
Subdivision 1.
Definitions.
For purposes of this section, the following terms have the meanings given:
(1) "city" means a statutory or home rule charter city; and
(2) "director" means the director of the Office of Cannabis Management under section 342.02.
Subd. 2.
Certification to commissioner of revenue.
(a) By July 15, 2024, and annually thereafter, the commissioner of management and budget must certify to the commissioner of revenue the balance of the local government cannabis aid account in the special revenue fund as of the immediately preceding June 30.
(b) By June 1, 2024, and annually thereafter, the director must certify to the commissioner of revenue the number of cannabis businesses, as defined under section 342.01, subdivision 14, licensed under chapter 342 as of the previous January 1, disaggregated by county and city.
Subd. 3.
Aid to counties.
(a) Beginning for aid payable in 2024, the amount available for aid to counties under this subdivision equals 50 percent of the amount certified in that year to the commissioner under subdivision 2, paragraph (a).
(b) Twenty percent of the amount under paragraph (a) must be distributed equally among all counties.
(c) Eighty percent of the amount under paragraph (a) must be distributed proportionally to each county according to the number of cannabis businesses located in the county as compared to the number of cannabis businesses in all counties as of the most recent certification under subdivision 2, paragraph (b).
Subd. 4.
Aid to cities.
(a) Beginning for aid payable in 2024, the amount available for aid to cities under this subdivision equals 50 percent of the amount certified in that year to the commissioner under subdivision 2, paragraph (a).
(b) The amount under paragraph (a) must be distributed proportionally to each city according to the number of cannabis businesses located in the city as compared to the number of cannabis businesses in all cities as of the most recent certification under subdivision 2, paragraph (b).
Subd. 5.
Payment.
The commissioner of revenue must compute the amount of aid payable to each county and city under this section. On or before September 1 of each year, the commissioner must certify the amount to be paid to each county and city in that year. The commissioner must pay the full amount of the aid on December 26 annually.
Subd. 6.
Appropriation.
Beginning in fiscal year 2025 and annually thereafter, the amount in the local government cannabis aid account in the special revenue fund is annually appropriated to the commissioner of revenue to make the aid payments required under this section.