SF 1811

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 04/01/2024 01:45pm

A bill for an act
relating to financing and operation of state and local government; modifying
provisions governing individual income and corporate franchise taxes, federal
conformity, property taxes, certain state aids, sales and use taxes, minerals taxes,
tax increment financing, local sales and use taxes, local special taxes, provisions
related to public finance, and various other taxes and tax-related provisions;
modifying income tax credits; modifying existing and proposing new subtractions;
modifying provisions related to the taxation of pass-through entities; providing
for certain federal tax conformity; modifying provisions related to reporting of
corporate income; providing a onetime refundable rebate credit; modifying property
tax exemptions, classifications, and refunds; modifying local government aid
calculations; establishing soil and water conservation district aid; providing public
safety aid; providing for certain sales tax exemptions and providing new definitions;
modifying taconite taxes and distributions; modifying provisions related to tax
increment financing and allowing certain special local provisions; authorizing and
modifying certain local taxes; providing for a process to refund the state stadium
bonds; establishing tourism improvement areas; requiring reports; providing for
certain policy and technical modifications; appropriating money; amending
Minnesota Statutes 2022, sections 6.495, subdivision 3; 13.46, subdivision 2;
13.4967, by adding a subdivision; 16A.726; 38.27, subdivision 4; 41B.0391,
subdivisions 1, 2, 4, 6; 103D.905, subdivision 3; 116J.401, subdivision 3;
116J.8737, subdivisions 5, 12; 116U.27, subdivisions 1, 4, 7; 123B.61; 206.95;
270B.14, subdivision 2; 270C.13, subdivision 1; 270C.19, subdivisions 1, 2;
270C.446, subdivision 2; 270C.52, subdivision 2; 272.02, subdivisions 24, 73, 98,
by adding subdivisions; 272.025, subdivision 1; 273.11, subdivisions 12, 23;
273.111, by adding a subdivision; 273.124, subdivisions 6, 13, 13a, 13c, 13d, 14;
273.1245, subdivision 1; 273.128, subdivisions 1, 2, by adding a subdivision;
273.13, subdivisions 22, 25, 34, 35; 273.1315, subdivision 2; 273.1341; 273.1392;
273.41; 278.01, subdivision 1; 279.03, subdivision 1a; 282.261, subdivision 2;
289A.02, subdivision 7, as amended; 289A.08, subdivisions 7, as amended, 7a,
as amended; 289A.382, subdivision 2; 289A.50, by adding a subdivision; 290.01,
subdivisions 7b, 19, 31, as amended; 290.0131, by adding a subdivision; 290.0132,
subdivisions 4, 26, by adding subdivisions; 290.0134, by adding a subdivision;
290.06, subdivisions 2c, as amended, 22, 23, 39, by adding a subdivision; 290.067;
290.0671, subdivisions 1, 7; 290.0674; 290.0677, subdivision 1; 290.0681,
subdivisions 3, 4; 290.0685, subdivision 1; 290.091, subdivision 2, as amended;
290.17, subdivision 4, by adding a subdivision; 290.92, subdivision 20; 290.9705,
subdivision 1; 290A.03, subdivisions 6, 13, 15, as amended; 290A.04, subdivision
2h; 290A.19; 290B.03, subdivision 1; 290B.04, subdivisions 3, 4; 290B.05,
subdivision 1; 291.005, subdivision 1, as amended; 295.50, subdivision 4;
296A.083, subdivision 3; 297A.61, subdivision 29; 297A.67, by adding a
subdivision; 297A.68, subdivision 4, by adding subdivisions; 297A.70, subdivisions
7, 19, 21; 297A.71, subdivisions 51, 52; 297A.99, subdivisions 1, 2, 3; 297A.994,
subdivision 4; 297H.13, subdivision 2; 297I.20, subdivision 4, by adding
subdivisions; 298.015; 298.018, subdivisions 1, 1a; 298.28, subdivisions 5, 7a, by
adding a subdivision; 298.296, subdivision 4; 299C.76, subdivisions 1, 2; 366.095,
subdivision 1; 373.01, subdivision 3; 383B.117, subdivision 2; 383E.21; 410.32;
412.301; 469.033, subdivision 6; 469.053, subdivisions 4, 6; 469.107, subdivision
1; 469.174, subdivisions 14, 27, by adding a subdivision; 469.175, subdivision 6;
469.176, subdivisions 3, 4; 469.1763, subdivisions 2, 3, 4, 6; 469.1771, subdivisions
2, 2a, 3; 473.39, by adding a subdivision; 473F.02, subdivisions 2, 8; 473J.13,
subdivisions 2, 4; 474A.02, subdivisions 22b, 23a; 475.54, subdivision 1; 477A.011,
subdivision 34, by adding subdivisions; 477A.0124, subdivisions 2, 3; 477A.013,
subdivisions 8, 9; 477A.014, subdivision 1; 477A.015; 477A.03, subdivisions 2a,
2b; 477A.12, subdivision 1; 477A.16, subdivision 2; 477B.01, subdivisions 5, 10,
11, by adding subdivisions; 477B.02, subdivisions 2, 3, 5, 8, 9, 10, by adding a
subdivision; 477B.03, subdivisions 2, 3, 4, 5, 7; 477B.04, subdivision 1, by adding
a subdivision; 477C.02, subdivision 4; 477C.03, subdivisions 2, 5; 477C.04, by
adding a subdivision; Laws 1971, chapter 773, section 1, subdivision 2, as amended;
Laws 1993, chapter 375, article 9, section 46, as amended; Laws 1998, chapter
389, article 8, section 43, as amended; Laws 2003, chapter 127, article 10, section
31, subdivision 1, as amended; Laws 2006, chapter 259, article 11, section 3, as
amended; Laws 2008, chapter 366, article 5, sections 26, as amended; 36,
subdivisions 1, 3, as amended; article 7, sections 17; 20, as amended; article 17,
section 6; Laws 2011, First Special Session chapter 7, article 4, section 14; Laws
2014, chapter 308, article 6, section 12, subdivision 2; Laws 2019, First Special
Session chapter 6, article 6, sections 13, subdivisions 3, 4, by adding a subdivision;
18; 26; article 7, section 7; Laws 2021, First Special Session chapter 14, article 8,
sections 5; 6, subdivisions 2, 3; 15, subdivisions 2, 3, 4, by adding a subdivision;
20, subdivision 4; article 9, section 10; Laws 2023, chapter 1, section 15; proposing
coding for new law in Minnesota Statutes, chapters 204B; 290; 477A; proposing
coding for new law as Minnesota Statutes, chapters 116X; 428B; repealing
Minnesota Statutes 2022, sections 16A.965; 41B.0391, subdivision 7; 290.0132,
subdivision 33; 290.0681, subdivision 10; 297E.021; 477A.011, subdivisions 30a,
38, 42, 45; 477A.013, subdivision 13; 477B.02, subdivision 4; 477B.03, subdivision
6.

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

ARTICLE 1

INCOME AND CORPORATE FRANCHISE TAXES

Section 1.

Minnesota Statutes 2022, section 13.4967, is amended by adding a subdivision
to read:

new text begin Subd. 9. new text end

new text begin New markets tax credit. new text end

new text begin Disclosure of information regarding issuance of new
market tax credit certificates is governed under section 270B.14, subdivision 2, paragraph
(a), clause (4).
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2022, section 41B.0391, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

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

(b) "Agricultural assets" means agricultural land, livestock, facilities, buildings, and
machinery used for farming in Minnesota.

(c) "Beginning farmer" means an individual who:

(1) is a resident of Minnesota;

(2) is seeking entry, or has entered within the last ten years, into farming;

(3) intends to farm land located within the state borders of Minnesota;

(4) new text begin except as provided in subdivision 2, paragraph (f), new text end is not and whose spouse is not a
family member of the owner of the agricultural assets from whom the beginning farmer is
seeking to purchase or rent agricultural assets;

(5) new text begin except as provided in subdivision 2, paragraph (f), new text end is not and whose spouse is not a
family member of a partner, member, shareholder, or trustee of the owner of agricultural
assets from whom the beginning farmer is seeking to purchase or rent agricultural assets;
and

(6) meets the following eligibility requirements as determined by the authority:

(i) has a net worth that does not exceed the limit provided under section 41B.03,
subdivision 3, paragraph (a), clause (2);

(ii) provides the majority of the day-to-day physical labor and management of the farm;

(iii) has, by the judgment of the authority, adequate farming experience or demonstrates
knowledge in the type of farming for which the beginning farmer seeks assistance from the
authority;

(iv) demonstrates to the authority a profit potential by submitting projected earnings
statements;

(v) asserts to the satisfaction of the authority that farming will be a significant source
of income for the beginning farmer;

(vi) is enrolled in or has completed within ten years of their first year of farming a
financial management program approved by the authority or the commissioner of agriculture;

(vii) agrees to notify the authority if the beginning farmer no longer meets the eligibility
requirements within the three-year certification period, in which case the beginning farmer
is no longer eligible for credits under this section; and

(viii) has other qualifications as specified by the authority.

The authority may waive the requirement in item (vi) if the participant requests a waiver
and has a four-year degree in an agricultural program or related field, reasonable agricultural
job-related experience, or certification as an adult farm management instructor.

(d) "Family member" means a family member within the meaning of the Internal Revenue
Code, section 267(c)(4).

(e) "Farm product" means plants and animals useful to humans and includes, but is not
limited to, forage and sod crops, oilseeds, grain and feed crops, dairy and dairy products,
poultry and poultry products, livestock, fruits, and vegetables.

(f) "Farming" means the active use, management, and operation of real and personal
property for the production of a farm product.

(g) "Owner of agricultural assets" means an individual, trust, or pass-through entity that
is the owner in fee of agricultural land or has legal title to any other agricultural asset. Owner
of agricultural assets does not mean an equipment dealer, livestock dealer defined in section
17A.03, subdivision 7, or comparable entity that is engaged in the business of selling
agricultural assets for profit and that is not engaged in farming as its primary business
activity. An owner of agricultural assets approved and certified by the authority under
subdivision 4 must notify the authority if the owner no longer meets the definition in this
paragraph within the three year certification period and is then no longer eligible for credits
under this section.

(h) "Resident" has the meaning given in section 290.01, subdivision 7.

(i) "Share rent agreement" means a rental agreement in which the principal consideration
given to the owner of agricultural assets is a predetermined portion of the production of
farm products produced from the rented agricultural assets and which provides for sharing
production costs or risk of loss, or both.

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2022, section 41B.0391, subdivision 2, is amended to read:

Subd. 2.

Tax credit for owners of agricultural assets.

(a) An owner of agricultural
assets may take a credit against the tax due under chapter 290 for the sale or rental of
agricultural assets to a beginning farmer in the amount allocated by the authority under
subdivision 4. An owner of agricultural assets is eligible for allocation of a credit equal to:

(1) deleted text begin five deleted text end new text begin eight new text end percent of the lesser of the sale price or the fair market value of the
agricultural asset, up to a maximum of deleted text begin $32,000 deleted text end new text begin $50,000 new text end ;

(2) ten percent of the gross rental income in each of the first, second, and third years of
a rental agreement, up to a maximum of $7,000 per year; or

(3) 15 percent of the cash equivalent of the gross rental income in each of the first,
second, and third years of a share rent agreement, up to a maximum of $10,000 per year.

(b) A qualifying rental agreement includes cash rent of agricultural assets or a share rent
agreement. The agricultural asset must be rented at prevailing community rates as determined
by the authority.

(c) The credit may be claimed only after approval and certification by the authority, and
is limited to the amount stated on the certificate issued under subdivision 4. An owner of
agricultural assets must apply to the authority for certification and allocation of a credit, in
a form and manner prescribed by the authority.

(d) An owner of agricultural assets or beginning farmer may terminate a rental agreement,
including a share rent agreement, for reasonable cause upon approval of the authority. If a
rental agreement is terminated without the fault of the owner of agricultural assets, the tax
credits shall not be retroactively disallowed. In determining reasonable cause, the authority
must look at which party was at fault in the termination of the agreement. If the authority
determines the owner of agricultural assets did not have reasonable cause, the owner of
agricultural assets must repay all credits received as a result of the rental agreement to the
commissioner of revenue. The repayment is additional income tax for the taxable year in
which the authority makes its decision or when a final adjudication under subdivision 5,
paragraph (a), is made, whichever is later.

(e) The credit is limited to the liability for tax as computed under chapter 290 for the
taxable year. If the amount of the credit determined under this section for any taxable year
exceeds this limitation, the excess is a beginning farmer incentive credit carryover according
to section 290.06, subdivision 37.

new text begin (f) For purposes of the credit for the sale of agricultural land only, the family member
definitional exclusions in subdivision 1, paragraph (c), clauses (4) and (5), do not apply.
For a sale to a family member to qualify for the credit, the sales price of the agricultural
land must equal or exceed the assessed value of the land as of the date of the sale. For
purposes of this paragraph, "sale to a family member" means a sale to a beginning farmer
in which the beginning farmer or the beginning farmer's spouse is a family member of:
new text end

new text begin (1) the owner of the agricultural land; or
new text end

new text begin (2) a partner, member, shareholder, or trustee of the owner of the agricultural land.
new text end

new text begin (g) For a sale to a socially disadvantaged farmer or rancher, the credit rate under paragraph
(a), clause (1), is twelve percent rather than eight percent. For the purposes of this section,
"socially disadvantaged farmer or rancher" has the meaning given in United States Code,
title 7, section 2279(a)(5).
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, 2022.
new text end

Sec. 4.

Minnesota Statutes 2022, 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 $5,000,000 for taxable years beginning after December 31,
2017, and before January 1, 2019, and must not allocate more than $6,000,000 for taxable
years beginning after December 31, 2018 deleted text end new text begin $4,000,000 for each taxable year new 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. Any new text begin amount authorized but not allocated
for taxable years ending before January 1, 2024, are canceled and are not allocated for future
taxable years. For taxable years beginning after December 31, 2023, any new text end amount authorized
but not allocated in any taxable year does not cancel and is added to the allocation for the
next taxable year.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2022, section 41B.0391, subdivision 6, is amended to read:

Subd. 6.

Report to legislature.

(a) No later than February 1, deleted text begin 2022 deleted text end new text begin 2024 new text end , the Rural
Finance Authority, in consultation with the commissioner of revenue, must provide a report
to the chairs and ranking minority members of the legislative committees having jurisdiction
over agriculture, economic development, rural development, and taxes, in compliance with
sections 3.195 and 3.197, on the beginning farmer tax credits under this section issued in
tax years beginning after December 31, 2017, and before January 1, deleted text begin 2022 deleted text end new text begin 2024 new text end .

(b) The report must include background information on beginning farmers in Minnesota
and any other information the commissioner and authority find relevant to evaluating the
effect of the credits on increasing opportunities for and the number of beginning farmers.

(c) For credits issued under subdivision 2, paragraph (a), clauses (1) to (3), the report
must include:

(1) the number and amount of credits issued under each clause;

(2) the geographic distribution of credits issued under each clause;

(3) the type of agricultural assets for which credits were issued under clause (1);

(4) the number and geographic distribution of beginning farmers whose purchase or
rental of assets resulted in credits for the seller or owner of the asset;

(5) the number and amount of credits disallowed under subdivision 2, paragraph (d);

(6) data on the number of beginning farmers by geographic region in calendar years
2017 through deleted text begin 2021 deleted text end new text begin 2023, including:
new text end

new text begin (i) the number of beginning farmers by race and ethnicity, as those terms are applied in
the 2020 United States Census; and
new text end

new text begin (ii) to the extent available, the number of beginning farmers who are members of a
socially disadvantaged group, as defined in United States Code, title 7, section 2279(a)(6) new text end ;
and

(7) the number and amount of credit applications that exceeded the allocation available
in each year.

(d) For credits issued under subdivision 3, the report must include:

(1) the number and amount of credits issued;

(2) the geographic distribution of credits;

(3) a listing and description of each approved financial management program for which
credits were issued; and

(4) a description of the approval procedure for financial management programs not on
the list maintained by the authority, as provided in subdivision 3, paragraph (a).

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2022, section 116J.401, subdivision 3, is amended to read:

Subd. 3.

Classification new text begin and release new text end of data on individuals.

new text begin (a) new text end Data collected on
individuals pursuant to a program operated by the commissioner are private data on
individuals as defined in section 13.02, subdivision 12, unless more restrictively classified
by law.

new text begin (b) The commissioner may release to the Department of Revenue data on individuals to
the extent required to administer the new markets tax credit under chapter 116X and sections
290.0693 and 297I.20, subdivision 6.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2022, section 116J.8737, subdivision 5, is amended to read:

Subd. 5.

Credit allowed.

(a) A qualified investor or qualified fund is eligible for a credit
equal to 25 percent of the qualified investment in a qualified small business. Investments
made by a pass-through entity qualify for a credit only if the entity is a qualified fund. The
commissioner must not allocate to qualified investors or qualified funds more than the dollar
amount in credits allowed for the taxable years listed in paragraph (i). For each taxable year,
50 percent must be allocated to credits for qualified investments in qualified greater
Minnesota businesses and minority-owned, women-owned, or veteran-owned qualified
small businesses in Minnesota. Any portion of a taxable year's credits that is reserved for
qualified investments in greater Minnesota businesses and minority-owned, women-owned,
or veteran-owned qualified small businesses in Minnesota that is not allocated by September
30 of the taxable year is available for allocation to other credit applications beginning on
October 1. Any portion of a taxable year's credits that is not allocated by the commissioner
does not cancel and may be carried forward to subsequent taxable years until all credits
have been allocated.

(b) The commissioner may not allocate more than a total maximum amount in credits
for a taxable year to a qualified investor for the investor's cumulative qualified investments
as an individual qualified investor and as an investor in a qualified fund; for married couples
filing joint returns the maximum is $250,000, and for all other filers the maximum is
$125,000. The commissioner may not allocate more than a total of $1,000,000 in credits
over all taxable years for qualified investments in any one qualified small business.

(c) The commissioner may not allocate a credit to a qualified investor either as an
individual qualified investor or as an investor in a qualified fund if, at the time the investment
is proposed:

(1) the investor is an officer or principal of the qualified small business; or

(2) the investor, either individually or in combination with one or more members of the
investor's family, owns, controls, or holds the power to vote 20 percent or more of the
outstanding securities of the qualified small business.

A member of the family of an individual disqualified by this paragraph is not eligible for a
credit under this section. For a married couple filing a joint return, the limitations in this
paragraph apply collectively to the investor and spouse. For purposes of determining the
ownership interest of an investor under this paragraph, the rules under section 267(c) and
267(e) of the Internal Revenue Code apply.

(d) Applications for tax credits must be made available on the department's website by
November 1 of the preceding year.

(e) Qualified investors and qualified funds must apply to the commissioner for tax credits.
Tax credits must be allocated to qualified investors or qualified funds in the order that the
tax credit request applications are filed with the department. The commissioner must approve
or reject tax credit request applications within 15 days of receiving the application. The
investment specified in the application must be made within 60 days of the allocation of
the credits. If the investment is not made within 60 days, the credit allocation is canceled
and available for reallocation. A qualified investor or qualified fund that fails to invest as
specified in the application, within 60 days of allocation of the credits, must notify the
commissioner of the failure to invest within five business days of the expiration of the
60-day investment period.

(f) All tax credit request applications filed with the department on the same day must
be treated as having been filed contemporaneously. If two or more qualified investors or
qualified funds file tax credit request applications on the same day, and the aggregate amount
of credit allocation claims exceeds the aggregate limit of credits under this section or the
lesser amount of credits that remain unallocated on that day, then the credits must be allocated
among the qualified investors or qualified funds who filed on that day on a pro rata basis
with respect to the amounts claimed. The pro rata allocation for any one qualified investor
or qualified fund is the product obtained by multiplying a fraction, the numerator of which
is the amount of the credit allocation claim filed on behalf of a qualified investor and the
denominator of which is the total of all credit allocation claims filed on behalf of all
applicants on that day, by the amount of credits that remain unallocated on that day for the
taxable year.

(g) A qualified investor or qualified fund, or a qualified small business acting on their
behalf, must notify the commissioner when an investment for which credits were allocated
has been made, and the taxable year in which the investment was made. A qualified fund
must also provide the commissioner with a statement indicating the amount invested by
each investor in the qualified fund based on each investor's share of the assets of the qualified
fund at the time of the qualified investment. After receiving notification that the investment
was made, the commissioner must issue credit certificates for the taxable year in which the
investment was made to the qualified investor or, for an investment made by a qualified
fund, to each qualified investor who is an investor in the fund. The certificate must state
that the credit is subject to revocation if the qualified investor or qualified fund does not
hold the investment in the qualified small business for at least three years, consisting of the
calendar year in which the investment was made and the two following years. The three-year
holding period does not apply if:

(1) the investment by the qualified investor or qualified fund becomes worthless before
the end of the three-year period;

(2) 80 percent or more of the assets of the qualified small business is sold before the end
of the three-year period;

(3) the qualified small business is sold before the end of the three-year period;

(4) the qualified small business's common stock begins trading on a public exchange
before the end of the three-year period; or

(5) the qualified investor dies before the end of the three-year period.

(h) The commissioner must notify the commissioner of revenue of credit certificates
issued under this section.

(i) The credit allowed under this subdivision is effective as follows:

(1) $10,000,000 for taxable years beginning after December 31, 2020, and before January
1, 2022; and

(2) $5,000,000 for taxable years beginning after December 31, 2021, and before January
1, deleted text begin 2023 deleted text end new text begin 2027 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, 2022.
new text end

Sec. 8.

Minnesota Statutes 2022, section 116J.8737, subdivision 12, is amended to read:

Subd. 12.

Sunset.

This section expires for taxable years beginning after December 31,
deleted text begin 2022 deleted text end new text begin 2026 new text end , except that reporting requirements under subdivision 6 and revocation of credits
under subdivision 7 remain in effect through deleted text begin 2024 deleted text end new text begin 2028 new text end for qualified investors and qualified
funds, and through deleted text begin 2026 deleted text end new text begin 2030 new text end for qualified small businesses, reporting requirements under
subdivision 9 remain in effect through deleted text begin 2022 deleted text end new text begin 2026 new text end , and the appropriation in subdivision 11
remains in effect through deleted text begin 2026 deleted text end new text begin 2030 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 2022, section 116U.27, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

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

(b) "Allocation certificate" means a certificate issued by the commissioner to a taxpayer
upon receipt of an initial application for a credit for a project that has not yet been completed.

(c) "Application" means the application for a credit under subdivision 4.

(d) "Commissioner" means the commissioner of employment and economic development.

(e) "Credit certificate" means a certificate issued by the commissioner upon submission
of the cost verification report in subdivision 4, paragraph (e).

(f) "Eligible production costs" means eligible production costs as defined in section
116U.26, paragraph (b), clause (1), incurred in Minnesota that are directly attributable to
the production of a film project in Minnesota.

(g) "Film" has the meaning given in section 116U.26, paragraph (b), clause (2).

(h) "Project" means a film:

(1) that includes the promotion of Minnesota;

(2) for which the taxpayer has expended at least $1,000,000 in deleted text begin the taxable year deleted text end new text begin a
consecutive 12-month period beginning when expenditures are first paid in Minnesota new text end for
eligible production costs; and

(3) to the extent practicable, that employs Minnesota residents.

(i) "Promotion of Minnesota" or "promotion" means visible display of a static or animated
logo, approved by the commissioner and lasting approximately five seconds, that promotes
Minnesota within its presentation in the end credits before the below-the-line crew crawl
for the life of the project.

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

Minnesota Statutes 2022, section 116U.27, subdivision 4, is amended to read:

Subd. 4.

Applications; allocations.

(a) To qualify for a credit under this section, a
taxpayer must submit to the commissioner an application for a credit in the form prescribed
by the commissioner, in consultation with the commissioner of revenue.

(b) Upon approving an application for a credit that meets the requirements of this section,
the commissioner shall issue allocation certificates that:

(1) verify eligibility for the credit;

(2) state the amount of credit anticipated for the eligible project, with the credit amount
up to 25 percent of eligible project costs; and

(3) state the taxable year in which the credit is allocated.

The commissioner must consult with the Minnesota Film and TV Board prior to issuing an
allocation certificate.

(c) The commissioner must not issue allocation certificates for more than deleted text begin $4,950,000 deleted text end new text begin
$9,950,000 new text end of credits each year. deleted text begin If the entire amount is not allocated in that taxable year,
any remaining amount is available for allocation for the four following taxable years until
the entire allocation has been made deleted text end new text begin Any amount authorized but not allocated for taxable
years ending before January 1, 2024, are canceled and are not allocated for future taxable
years. For taxable years beginning after December 31, 2023, any amount authorized but not
allocated in any taxable year does not cancel and is added to the allocation for the next
taxable year new text end . The commissioner must not award any credits for taxable years beginning
after December 31, deleted text begin 2024 deleted text end new text begin 2032 new text end , and any unallocated amounts cancel on that date.

(d) The commissioner must allocate credits on a first-come, first-served basis.

(e) Upon completion of a project, the taxpayer shall submit to the commissioner a report
prepared by an independent certified public accountant licensed in the state of Minnesota
to verify the amount of eligible production costs related to the project. The report must be
prepared in accordance with generally accepted accounting principles. Upon receipt and
review of the cost verification report, the commissioner shall determine the final amount
of eligible production costs and issue a credit certificate to the taxpayer. The credit may not
exceed the anticipated credit amount on the allocation certificate. If the credit is less than
the anticipated amount on the allocation credit, the difference is returned to the amount
available for allocation under paragraph (c). To claim the credit under section 290.06,
subdivision 39, or 297I.20, subdivision 4, a taxpayer must include a copy of the credit
certificate as part of the taxpayer's return.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for allocation certificates issued after
December 31, 2022.
new text end

Sec. 11.

Minnesota Statutes 2022, section 116U.27, subdivision 7, is amended to read:

Subd. 7.

Expiration.

Subdivisions 1 to 5 expire January 1, deleted text begin 2025 deleted text end new text begin 2033 new text end , for taxable years
beginning after December 31, deleted text begin 2024 deleted text end new text begin 2032 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for allocation certificates issued after
December 31, 2022.
new text end

Sec. 12.

new text begin [116X.01] NEW MARKETS TAX CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Applicable percentage" means zero percent for each of the first two credit allowance
dates and ten percent for each of the final five credit allowance dates.
new text end

new text begin (c) "CDFI fund" means the Community Development Financial Institutions fund of the
United States Department of the Treasury.
new text end

new text begin (d) "Commissioner" means the commissioner of employment and economic development.
new text end

new text begin (e) "Credit allowance date" means:
new text end

new text begin (1) the date on which a qualified equity investment is initially made; and
new text end

new text begin (2) each of the six anniversary dates thereafter.
new text end

new text begin (f) "Greater Minnesota allocation" means $60,000,000 in qualified equity investment
authority to be awarded for investment in qualified active low-income community businesses
with principal business operations in a greater Minnesota county.
new text end

new text begin (g) "Greater Minnesota county" means any county located in Minnesota that is not a
metropolitan county.
new text end

new text begin (h) "Internal Revenue Code" has the meaning given in section 290.01, subdivision 31.
new text end

new text begin (i) "Metropolitan allocation" means $60,000,000 in qualified equity investment authority
to be awarded for investment in qualified active low-income community businesses with
principal business operations in a metropolitan county.
new text end

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

new text begin (k) "Minnesota qualified community development entity" means a qualified community
development entity that is or whose controlling entity is headquartered in this state.
new text end

new text begin (l) "Principal business operations" means the physical location of a business where at
least 60 percent of a qualified active low-income community business' employees work.
An out-of-state business that has agreed to relocate employees or a Minnesota business that
has agreed to hire employees using the proceeds of a qualified low-income community
investment to establish principal business operations in Minnesota is deemed to have principal
business operations in Minnesota if the business satisfies the requirements of this paragraph
within 180 days of receiving the qualified low-income community investment or another
date as agreed by the business and the commissioner.
new text end

new text begin (m) "Purchase price" means the amount paid to the qualified community development
entity for a qualified equity investment.
new text end

new text begin (n) "Qualified active low-income community business" has the meaning given in section
45D of the Internal Revenue Code, except that businesses or projects may not derive more
than 15 percent or more of its annual revenue from the rental or sale of real estate. This
exception does not apply if the business is controlled by or is under common control with
another business, and the business is a primary tenant of real estate leased from that other
business.
new text end

new text begin (o) "Qualified community development entity" has the meaning given in section 45D
of the Internal Revenue Code, provided that the entity:
new text end

new text begin (1) has previously entered into an allocation agreement with the CDFI fund with respect
to credits authorized by section 45D of the Internal Revenue Code; and
new text end

new text begin (2) includes the state within the service area set forth in the allocation agreement.
new text end

new text begin (p) "Qualified equity investment" means an equity investment in a qualified community
development entity, if the equity investment:
new text end

new text begin (1) is acquired after the effective date of this section at its original issuance solely in
exchange for cash, or if the investment met the requirements of this provision while under
the possession of a prior holder;
new text end

new text begin (2) has at least 100 percent of its cash purchase price used by the qualified community
development entity to make qualified low-income community investments in qualified
active low-income community businesses that have their principal business operations in
the state of Minnesota; and
new text end

new text begin (3) is:
new text end

new text begin (i) designated by the qualified community development entity as a qualified equity
investment under this section; and
new text end

new text begin (ii) except for a Minnesota qualified community development entity, is at least 50 percent
designated by the qualified community development entity as a qualified equity investment
eligible for the federal credit under section 45D of the Internal Revenue Code.
new text end

new text begin (q) "Qualified low-income community investment" means any capital or equity investment
in, or loan to, any qualified active low-income community business.
new text end

new text begin (r) "Tax credit" or "credit" means a credit against the tax imposed by chapter 290 or
297I.
new text end

new text begin (s) "Taxpayer" means a taxpayer as defined in section 290.01, subdivision 6, or a taxpayer
as defined in section 297I.01, subdivision 16.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed; qualification; limitation. new text end

new text begin (a) An entity is eligible for a credit
against the tax imposed under chapter 290 or 297I, subject to the requirements of this section.
The credit may be claimed against the tax imposed by chapter 290 or 297I, but not both.
new text end

new text begin (b) The credit equals the applicable percentage for each credit allowance date multiplied
by the purchase price paid to the qualified community development entity for the qualified
equity investment.
new text end

new text begin Subd. 3. new text end

new text begin Requirements. new text end

new text begin (a) A qualified community development entity that seeks to
have an equity investment designated as a qualified equity investment and be eligible for
the credit under this section must:
new text end

new text begin (1) have an allocation agreement, that is currently in effect, executed by the applicant
or its controlling entity, and the CDFI fund;
new text end

new text begin (2) be certified as a qualified community development entity by the CDFI fund; and
new text end

new text begin (3) meet all requirements under section 45D of the Internal Revenue Code.
new text end

new text begin (b) An entity that seeks to be eligible for the credit under this section must:
new text end

new text begin (1) hold a qualified equity investment on a credit allowance date of that investment; and
new text end

new text begin (2) meet all requirements under section 45D of the Internal Revenue Code.
new text end

new text begin Subd. 4. new text end

new text begin Application. new text end

new text begin (a) A qualified community development entity that seeks to have
an equity investment designated as a qualified equity investment under this section shall
apply to the commissioner on a form provided by the commissioner that includes:
new text end

new text begin (1) the name, address, and tax identification number of the applicant, and evidence of
the applicant's certification as a qualified community development entity by the CDFI fund;
new text end

new text begin (2) a copy of the allocation agreement executed by the applicant or its controlling entity,
and the CDFI fund;
new text end

new text begin (3) a certificate executed by an executive officer of the applicant attesting that the
allocation agreement remains in effect and has not been revoked or canceled by the CDFI
fund;
new text end

new text begin (4) a description of the proposed amount, structure, and purchaser of the equity
investment;
new text end

new text begin (5) for a qualified community development entity that is not a Minnesota qualified
community development entity, the amount of qualified equity investment authority sought
under the greater Minnesota allocation or the metropolitan allocation, as applicable, which
collectively may not exceed the applicant or its controlling entity's available qualified equity
investment authority under section 45D of the Internal Revenue Code multiplied by two;
new text end

new text begin (6) if required by clause (5), evidence of the applicant or its controlling entity's available
qualified equity investment authority under section 45D of the Internal Revenue Code; and
new text end

new text begin (7) a nonrefundable application fee of $5,000 paid to the commissioner to offset costs
associated with personnel and administrative expenses related to administering the credit.
new text end

new text begin (b) The commissioner shall set a date to accept applications not less than 30 days but
not more than 45 days after the date the CDFI fund announces allocation awards under a
notice of funding availability that was published in the Federal Register in November 2022.
new text end

new text begin (c) A qualified community development entity may apply for both a greater Minnesota
allocation and a metropolitan allocation.
new text end

new text begin Subd. 5. new text end

new text begin Certification and timing of qualified equity investments. new text end

new text begin (a) Within 30 days
after receipt of an application, the commissioner shall grant or deny the application in full
or in part. If the commissioner denies any part of the application, the commissioner shall
inform the applicant of the grounds for the denial. If the applicant provides the information
required by the commissioner or otherwise completes its application within 15 days of the
notice of denial, the application is deemed complete as of the original date of submission.
If the applicant fails to provide the requested information or complete its application within
the 15-day period, the applicant may submit a new application.
new text end

new text begin (b) If the application is deemed complete, the commissioner shall certify the proposed
equity investment as a qualified equity investment eligible for a credit under this section.
The commissioner shall provide written notice of the certification to the qualified community
development entity. Once the qualified community development entity identifies the
taxpayers who are allocated credits and their respective credit amounts, the qualified
community development entity shall provide a notice of allocation to the commissioner.
The commissioner shall provide a certification to the qualified community development
entity and each taxpayer containing the credit amount and utilization schedule for which
the taxpayer is eligible. If the taxpayer's eligibility to utilize the credits change due to a
transfer of a qualified equity investment or a change in allocation pursuant to paragraph (c),
the qualified community development entity shall notify the commissioner of the change.
new text end

new text begin (c) The aggregate amount of credits allowed to all certified qualified equity investments
in greater Minnesota counties is $30,000,000. The aggregate amount of credits allowed to
all certified qualified equity investments in metropolitan counties is $30,000,000. The
commissioner shall certify applications for the greater Minnesota allocation and the
metropolitan allocation in proportionate percentages based upon the ratio of the amount of
qualified equity investments requested in applications for each allocation to the total amount
of qualified equity investments requested in all applications for each allocation received on
the same day.
new text end

new text begin (d) If a pending request cannot be fully certified, the commissioner shall certify the
portion that may be certified unless the qualified community development entity elects to
withdraw its request rather than receive a partial award of qualified equity investment
authority.
new text end

new text begin (e) A qualified community development entity must make its qualified equity investment
by January 1, 2026.
new text end

new text begin (f) An approved applicant may transfer all or a portion of its certified qualified equity
investment authority to its controlling entity or any affiliate or partner of the controlling
entity that is also a qualified community development entity if the applicant provides the
information required in the application with respect to the transferee and the applicant
notifies the commissioner in the notice required by paragraph (g). Within 90 days after
receiving notice of certification under paragraph (b), the applicant or transferee shall:
new text end

new text begin (1) issue qualified equity investments in an amount equal to the total amount of certified
qualified equity investment authority;
new text end

new text begin (2) receive cash in the amount of the certified qualified equity investment; and
new text end

new text begin (3) if the applicant or transferee is not a Minnesota qualified community development
entity, designate 50 percent of the qualified equity investment authority as a qualified equity
investment under section 45D of the Internal Revenue Code.
new text end

new text begin The entity to which the certified qualified equity investment authority is transferred is
responsible for any assessment resulting from an audit by the commissioner of revenue.
new text end

new text begin (g) The qualified community development entity must provide the commissioner with
evidence of the receipt of the cash investment and, if the qualified community development
entity is not a Minnesota qualified community development entity, the designation of 50
percent of the qualified equity investment as a qualified equity investment under section
45D of the Internal Revenue Code within 95 days after receiving notice of certification. If
the qualified community development entity does not receive the cash investment, issue the
qualified equity investment within 90 days following receipt of the certification notice, and
comply with paragraph (f), clause (3), if applicable, the certification is void. A voided
certification must be returned to the commissioner and must first be awarded pro rata to
applicants that received awards of qualified equity investment authority and complied with
paragraph (f).
new text end

new text begin (h) The commissioner shall notify the commissioner of revenue of credits approved
under this subdivision within 15 days of granting an application.
new text end

new text begin Subd. 6. new text end

new text begin Examination. new text end

new text begin The commissioner may conduct examinations to verify that the
credits under this section have been received and applied according to the requirements of
this section and to verify that no event has occurred that would result in a recapture of credits
under subdivision 5.
new text end

new text begin Subd. 7. new text end

new text begin Annual reporting by community development entities. new text end

new text begin (a) Each qualified
community development entity shall submit an annual report to the commissioner within
120 days after the beginning of each calendar year during the compliance period. No annual
report is due prior to the first anniversary of the initial credit allowance date. The report
must include but is not limited to information with respect to all qualified low-income
community investments made by the qualified community development entity, including:
new text end

new text begin (1) the date and amount of, and bank statements or wire transfer reports documenting,
qualified low-income community investments;
new text end

new text begin (2) the name and address of each qualified active low-income community business
funded by the qualified community development entity, the number of persons employed
by the business at the time of the initial qualified low-income community investment, and
a brief description of the business and its financing;
new text end

new text begin (3) the number of employment positions maintained by each qualified active low-income
community business as of the date of the report or the end of the preceding calendar year
and the average annual salaries of those positions;
new text end

new text begin (4) the total number of employment positions created and retained as a result of qualified
low-income community investments and the average annual salaries of those positions;
new text end

new text begin (5) a certification by its chief executive officer or similar officer that no credits have
been subject to recapture under subdivision 5;
new text end

new text begin (6) any changes with respect to the taxpayers entitled to claim credits with respect to
qualified equity investments issued by the qualified community development entity since
its last report pursuant to this section; and
new text end

new text begin (7) each qualified community development entity shall pay the commissioner an annual
fee of $1,500. The initial annual fee required of the qualified community development entity
is due and payable to the commissioner along with the submission of documentation required
under subdivision 4, paragraph (g). Each subsequent annual fee is required to be submitted
with the annual report under paragraph (a).
new text end

new text begin (b) The qualified community development entity is not required to provide the annual
report set forth in this section for qualified low-income community investments that have
been redeemed or repaid.
new text end

new text begin Subd. 8. new text end

new text begin Program report. new text end

new text begin If the credit under this section has not been reviewed under
the provisions of section 3.8855 by December 15, 2032, the commissioner, with input from
the commissioner of revenue, shall report to the legislature no later than December 31, 2032,
regarding the implementation of the credit under this section, including an evaluation of
the credit using the components listed in section 3.885, subdivision 5.
new text end

new text begin Subd. 9. new text end

new text begin Expiration. new text end

new text begin This section expires for taxable years beginning after December
31, 2031, except that the commissioner's authority to allow the credit under subdivision 2
based on certificates that were issued under subdivision 4 before expiration remains in effect
through the year following the year in which all certificates have either been canceled or
resulted in issuance of credit certificates, or 2034, whichever is earlier.
new text end

new text begin Subd. 10. new text end

new text begin Account created; appropriation. new text end

new text begin The Minnesota new markets tax credit
account is created in the special revenue fund in the state treasury. The account is
administered by the commissioner. Application and reporting fees required under subdivision
3, paragraph (a), clause (7), are appropriated to the commissioner for costs associated with
certifying applications and for personnel and administrative expenses related to administering
the credit under this section.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

Minnesota Statutes 2022, section 270B.14, subdivision 2, is amended to read:

Subd. 2.

Disclosure to Department of Employment and Economic Development.

(a)
Data relating to individuals are treated as follows:

(1) Return information may be disclosed to the Department of Employment and Economic
Development to the extent provided in clause (2) and for the purposes provided in clause
(3).

(2) The data that may be disclosed is limited to the amount of gross income earned by
an individual, the total amounts of earnings from each employer, and the employer's name.

(3) Data may be requested pertaining only to individuals who have claimed benefits
under sections 268.03 to 268.23 and only if the individuals are the subject of investigations
based on other information available to the Department of Employment and Economic
Development. Data received may be used only as set forth in section 268.19, subdivision
1, paragraph (b).

new text begin (4) Notwithstanding the limitation in paragraph (a), the commissioner may disclose
return information to the Department of Employment and Economic Development to the
extent required to administer the new markets tax credit in sections 290.0693 and 297I.20.
new text end

(b) Data pertaining to corporations or other employing units may be disclosed to the
Department of Employment and Economic Development to the extent necessary for the
proper enforcement of chapter 268.

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 2022, section 289A.08, subdivision 7, as amended by Laws
2023, chapter 1, section 2, is amended to read:

Subd. 7.

Composite income tax returns for nonresident partners, shareholders, and
beneficiaries.

(a) The commissioner may allow a partnership with nonresident partners to
file a composite return and to pay the tax on behalf of nonresident partners who have no
other Minnesota source income. This composite return must include the names, addresses,
Social Security numbers, income allocation, and tax liability for the nonresident partners
electing to be covered by the composite return.

(b) The computation of a partner's tax liability must be determined by multiplying the
income allocated to that partner by the highest rate used to determine the tax liability for
individuals under section 290.06, subdivision 2c. Nonbusiness deductions, standard
deductions, or personal exemptions are not allowed.

(c) The partnership must submit a request to use this composite return filing method for
nonresident partners. The requesting partnership must file a composite return in the form
prescribed by the commissioner of revenue. The filing of a composite return is considered
a request to use the composite return filing method.

(d) The electing partner must not have any Minnesota source income other than the
income from the partnership, other electing partnerships, and other qualifying entities
electing to file and pay the pass-through entity tax under subdivision 7a. If it is determined
that the electing partner has other Minnesota source income, the inclusion of the income
and tax liability for that partner under this provision will not constitute a return to satisfy
the requirements of subdivision 1. The tax paid for the individual as part of the composite
return is allowed as a payment of the tax by the individual on the date on which the composite
return payment was made. If the electing nonresident partner has no other Minnesota source
income, filing of the composite return is a return for purposes of subdivision 1.

(e) This subdivision does not negate the requirement that an individual pay estimated
tax if the individual's liability would exceed the requirements set forth in section 289A.25.
The individual's liability to pay estimated tax is, however, satisfied when the partnership
pays composite estimated tax in the manner prescribed in section 289A.25.

(f) If an electing partner's share of the partnership's gross income from Minnesota sources
is less than the filing requirements for a nonresident under this subdivision, the tax liability
is zero. However, a statement showing the partner's share of gross income must be included
as part of the composite return.

(g) The election provided in this subdivision is only available to a partner who has no
other Minnesota source income and who is either (1) a full-year nonresident individual or
(2) a trust or estate that does not claim a deduction under either section 651 or 661 of the
Internal Revenue Code.

(h) A corporation defined in section 290.9725 and its nonresident shareholders may
make an election under this paragraph. The provisions covering the partnership apply to
the corporation and the provisions applying to the partner apply to the shareholder.

(i) Estates and trusts distributing current income only and the nonresident individual
beneficiaries of the estates or trusts may make an election under this paragraph. The
provisions covering the partnership apply to the estate or trust. The provisions applying to
the partner apply to the beneficiary.

(j) For the purposes of this subdivision, "income" deleted text begin 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, 28, and 31, 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. deleted text end new text begin has
the meaning given in section 290.01, subdivision 19, paragraph (h).
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, 2022.
new text end

Sec. 15.

Minnesota Statutes 2022, section 289A.08, subdivision 7a, as amended by Laws
2023, chapter 1, section 3, is amended to read:

Subd. 7a.

Pass-through entity tax.

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

(1) "income" has the meaning given in deleted text begin subdivision 7, paragraph (j), modified by the
addition provided in section 290.0131, subdivision 5, and the subtraction provided in section
290.0132, subdivision 3, except that the provisions that apply to a partnership apply to a
qualifying entity and the provisions that apply to a partner apply to a qualifying owner. 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 section 290.01, subdivision 19, paragraphs (i) and (j) new text end ;

(2) "qualifying entity" means a partnership, limited liability company new text begin taxed as a
partnership or S corporation new text end , or S corporation including a qualified subchapter S subsidiary
organized under section 1361(b)(3)(B) of the Internal Revenue Code new text begin that has at least one
qualifying owner new text end . Qualifying entity does not include a deleted text begin partnership, limited liability company,
or corporation that has a partnership, limited liability company other than a disregarded
entity, or corporation as a partner, member, or shareholder deleted text end new text begin publicly traded partnership, as
defined in section 7704 of the Internal Revenue Code new text end ; and

(3) "qualifying owner" means:

(i) a resident or nonresident individual or estate that is a partner, member, or shareholder
of a qualifying entity; deleted text begin or
deleted text end

(ii) a resident or nonresident trust that is a shareholder of a qualifying entity that is an
S corporation deleted text begin . deleted text end new text begin ; or
new text end

new text begin (iii) a disregarded entity that has a qualifying owner as its single owner.
new text end

(b) For taxable years beginning after December 31, 2020, deleted text begin in which the taxes of a
qualifying owner are limited under section 164(b)(6)(B) of the Internal Revenue Code, deleted text end a
qualifying entity may elect to file a return and pay the pass-through entity tax imposed under
paragraph (c). The election:

(1) must be made on or before the due date or extended due date of the qualifying entity's
pass-through entity tax return;

new text begin (2) must exclude partners, members, shareholders, or owners who are not qualifying
owners;
new text end

deleted text begin (2) deleted text end new text begin (3) new text end may only be made by qualifying owners who collectively hold more than deleted text begin a deleted text end 50
percent new text begin of the new text end ownership deleted text begin interest deleted text end new text begin interests new text end in the qualifying entity new text begin held by qualifying owners new text end ;

deleted text begin (3) deleted text end new text begin (4) new text end is binding on all qualifying owners who have an ownership interest in the
qualifying entity; and

deleted text begin (4) deleted text end new text begin (5) new text end once made is irrevocable for the taxable year.

(c) Subject to the election in paragraph (b), a pass-through entity tax is imposed on a
qualifying entity in an amount equal to the sum of the tax liability of each qualifying owner.

(d) The amount of a qualifying owner's tax liability under paragraph (c) is the amount
of the qualifying owner's income multiplied by the highest tax rate for individuals under
section 290.06, subdivision 2c. When making this determination:

(1) nonbusiness deductions, standard deductions, or personal exemptions are not allowed;
and

(2) a credit or deduction is allowed only to the extent allowed to the qualifying owner.

(e) The amount of each credit and deduction used to determine a qualifying owner's tax
liability under paragraph (d) must also be used to determine that qualifying owner's income
tax liability under chapter 290.

(f) This subdivision does not negate the requirement that a qualifying owner pay estimated
tax if the qualifying owner's tax liability would exceed the requirements set forth in section
289A.25. The qualifying owner's liability to pay estimated tax on the qualifying owner's
tax liability as determined under paragraph (d) is, however, satisfied when the qualifying
entity pays estimated tax in the manner prescribed in section 289A.25 for composite estimated
tax.

(g) A qualifying owner's adjusted basis in the interest in the qualifying entity, and the
treatment of distributions, is determined as if the election to pay the pass-through entity tax
under paragraph (b) is not made.

(h) To the extent not inconsistent with this subdivision, for purposes of this chapter, a
pass-through entity tax return must be treated as a composite return and a qualifying entity
filing a pass-through entity tax return must be treated as a partnership filing a composite
return.

(i) The provisions of subdivision 17 apply to the election to pay the pass-through entity
tax under this subdivision.

(j) If a nonresident qualifying owner of a qualifying entity making the election to file
and pay the tax under this subdivision has no other Minnesota source income, filing of the
pass-through entity tax return is a return for purposes of subdivision 1, provided that the
nonresident qualifying owner must not have any Minnesota source income other than the
income from the qualifying entity, other electing qualifying entities, and other partnerships
electing to file a composite return under subdivision 7. If it is determined that the nonresident
qualifying owner has other Minnesota source income, the inclusion of the income and tax
liability for that owner under this provision will not constitute a return to satisfy the
requirements of subdivision 1. The tax paid for the qualifying owner as part of the
pass-through entity tax return is allowed as a payment of the tax by the qualifying owner
on the date on which the pass-through entity tax return payment was made.

(k) Once a credit is claimed by a qualifying owner under section 290.06, subdivision
40, a qualifying entity cannot receive a refund for tax paid under this subdivision for any
amounts claimed under that section by the qualifying owners. Once a credit is claimed under
section 290.06, subdivision 40, any refund must be claimed in conjunction with a return
filed by the qualifying owner.

new text begin (l) This section expires at the same time and on the same terms as section 164(b)(6)(B)
of the Internal Revenue Code, except that the expiration of this section does not affect the
commissioner's authority to audit or power of examination and assessments for credits
claimed under this section.
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, 2021.
new text end

Sec. 16.

Minnesota Statutes 2022, section 289A.382, subdivision 2, is amended to read:

Subd. 2.

Reporting and payment requirements for partnerships and tiered
partners.

(a) Except for when an audited partnership makes the election in subdivision 3,
and except for negative federal adjustments required under federal law taken into account
by the partnership in the partnership return for the adjustment or other year, all final federal
adjustments of an audited partnership must comply with paragraph (b) and each direct
partner of the audited partnership, other than a tiered partner, must comply with paragraph
(c).

(b) No later than 90 days after the final determination date, the audited partnership must:

(1) file a completed federal adjustments report, including all partner-level information
required under section 289A.12, subdivision 3, with the commissioner;

(2) notify each of its direct partners of their distributive share of the final federal
adjustments;

(3) file an amended composite report for all direct partners who were included in a
composite return under section 289A.08, subdivision 7, in the reviewed year, and pay the
additional amount that would have been due had the federal adjustments been reported
properly as required; deleted text begin and
deleted text end

(4) file amended withholding reports for all direct partners who were or should have
been subject to nonresident withholding under section 290.92, subdivision 4b, in the reviewed
year, and pay the additional amount that would have been due had the federal adjustments
been reported properly as required deleted text begin . deleted text end new text begin ; and
new text end

new text begin (5) file an amended pass-through entity tax report for all direct partners who were
included in a pass-through entity tax return under section 289A.08, subdivision 7a, in the
reviewed year, and pay the additional amount that would have been due had the federal
adjustments been reported properly as required.
new text end

(c) No later than 180 days after the final determination date, each direct partner, other
than a tiered partner, that is subject to a tax administered under this chapter, other than the
sales tax, must:

(1) file a federal adjustments report reporting their distributive share of the adjustments
reported to them under paragraph (b), clause (2); and

(2) pay any additional amount of tax due as if the final federal adjustment had been
properly reported, plus any penalty and interest due under this chapter, and less any credit
for related amounts paid or withheld and remitted on behalf of the direct partner under
paragraph (b), clauses (3) and (4).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2020.
new text end

Sec. 17.

Minnesota Statutes 2022, section 290.01, subdivision 7b, is amended to read:

Subd. 7b.

Resident trust.

(a) deleted text begin Resident trust means deleted text end A trust, except a grantor type trust,
deleted text begin which either deleted text end new text begin that became irrevocable on or before December 31, 1995, or was first
administered in Minnesota on or before December 31, 1995, is a resident trust only if two
or more of the following conditions are satisfied:
new text end

new text begin (1) a majority of the discretionary decisions of the trustees relative to the investment of
trust assets are made in Minnesota;
new text end

new text begin (2) a majority of the discretionary decisions of the trustees relative to the distributions
of trust income and principal are made in Minnesota; or
new text end

new text begin (3) the official books and records of the trust, consisting of the original minutes of trustee
meetings and the original trust instruments, are located in Minnesota.
new text end

new text begin (b) A trust, except a grantor type trust, that became irrevocable after December 31, 1995,
or was first administered in Minnesota after December 31, 1995, is a resident trust only if:
new text end

(1) new text begin either it:
new text end

new text begin (i) new text end was created by a will of a decedent who at death was domiciled in this state new text begin ; new text end or

deleted text begin (2) deleted text end new text begin (ii) new text end is an irrevocable trust, the grantor of which was domiciled in this state at the time
the trust became irrevocable deleted text begin . deleted text end new text begin ; and
new text end

new text begin (2) two or more of the following conditions are satisfied:
new text end

new text begin (i) a majority of the discretionary decisions of the trustees relative to the investment of
trust assets are made in Minnesota;
new text end

new text begin (ii) a majority of the discretionary decisions of the trustees relative to the distributions
of trust income and principal are made in Minnesota; or
new text end

new text begin (iii) the official books and records of the trust, consisting of the original minutes of
trustee meetings and the original trust instruments, are located in Minnesota.
new text end

new text begin (c) new text end For the purpose of this subdivision, a trust is considered irrevocable to the extent the
grantor is not treated as the owner thereof under sections 671 to 678 of the Internal Revenue
Code. The term "grantor type trust" means a trust where the income or gains of the trust are
taxable to the grantor or others treated as substantial owners under sections 671 to 678 of
the Internal Revenue Code. deleted text begin This paragraph applies to trusts, except grantor type trusts, that
became irrevocable after December 31, 1995, or are first administered in Minnesota after
December 31, 1995.
deleted text end

deleted text begin (b) This paragraph applies to trusts, except grantor type trusts, that are not governed
under paragraph (a). A trust, except a grantor type trust, is a resident trust only if two or
more of the following conditions are satisfied:
deleted text end

deleted text begin (1) a majority of the discretionary decisions of the trustees relative to the investment of
trust assets are made in Minnesota;
deleted text end

deleted text begin (2) a majority of the discretionary decisions of the trustees relative to the distributions
of trust income and principal are made in Minnesota;
deleted text end

deleted text begin (3) the official books and records of the trust, consisting of the original minutes of trustee
meetings and the original trust instruments, are located in Minnesota.
deleted text end

deleted text begin (c) deleted text end new text begin (d) new text end For purposes of deleted text begin paragraph deleted text end new text begin paragraphs (a) and new text end (b), if the trustees delegate decisions
and actions to an agent or custodian, the actions and decisions of the agent or custodian
must not be taken into account in determining whether the trust is administered in Minnesota,
if:

(1) the delegation was permitted under the trust agreement;

(2) the trustees retain the power to revoke the delegation on reasonable notice; and

(3) the trustees monitor and evaluate the performance of the agent or custodian on a
regular basis as is reasonably determined by the trustees.

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. 18.

Minnesota Statutes 2022, section 290.01, subdivision 19, as amended by Laws
2023, chapter 1, section 4, 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 December 15, 2022, 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.

new text begin (h) In the case of a partnership electing to file a composite return under section 289A.08,
subdivision 7, 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, and
28, 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.
new text end

new text begin (i) In the case of a qualifying entity electing to pay the pass-through entity tax under
section 289A.08, subdivision 7a, 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, and 28, 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.
new text end

new text begin (j) The income of a resident qualifying owner of a qualifying entity that is a partnership
or limited liability company taxed as a partnership under the Internal Revenue Code is not
subject to allocation outside this state as provided for resident individuals under section
290.17, subdivision 1, paragraph (a). The income of a nonresident qualifying owner of a
qualifying entity and the income of a resident qualifying owner of a qualifying entity that
is an S corporation, including a qualified subchapter S subsidiary organized under section
1361(b)(3)(B) of the Internal Revenue Code, are allocated and assigned to this state as
provided for nonresident partners and shareholders under sections 290.17, 290.191, and
290.20.
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, 2021.
new text end

Sec. 19.

Minnesota Statutes 2022, section 290.0131, is amended by adding a subdivision
to read:

new text begin Subd. 21. new text end

new text begin Dependent flexible spending accounts. new text end

new text begin For a taxpayer who claims the credit
under section 290.067, or for a married taxpayer filing a separate return whose spouse claims
the credit under that section, the amount of dependent care assistance that is excluded from
gross income under section 129 of the Internal Revenue Code is an addition.
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, 2022.
new text end

Sec. 20.

Minnesota Statutes 2022, section 290.0132, subdivision 4, is amended to read:

Subd. 4.

Education expenses.

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

(1) education-related expenses; plus

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

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

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

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

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

(c) The definitions in section 290.0674, deleted text begin subdivision 1 deleted text end new text begin subdivision 1a new text end , apply to this
subdivision.

new text begin EFFECTIVE DATE. new text end

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

Sec. 21.

Minnesota Statutes 2022, section 290.0132, subdivision 26, is amended to read:

Subd. 26.

Social Security benefits.

(a) A deleted text begin portion of taxable Social Security benefits is
allowed as a subtraction. The deleted text end new text begin taxpayer is allowed a new text end subtraction deleted text begin equals deleted text end new text begin equal to the greater
of the simplified subtraction allowed under paragraph (b) or the alternate subtraction
determined under paragraphs (c), (d), and (e).
new text end

new text begin (b) A taxpayer's simplified subtraction equals the amount of taxable social security
benefits, as reduced under paragraphs (e) to (h).
new text end

new text begin (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:
new text end

new text begin (1) $100,000 for a married taxpayer filing a joint return or surviving spouse;
new text end

new text begin (2) $78,000 for a single or head of household taxpayer; and
new text end

new text begin (3) for a married taxpayer filing a separate return, half the amount for a married taxpayer
filing a joint return.
new text end

new text begin (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.
new text end

new text begin (e) A taxpayer's alternate subtraction equals new text end the lesser of taxable Social Security benefits
or a maximum subtraction subject to the limits under paragraphs deleted text begin (b), (c), and (d) deleted text end new text begin (f), (g),
and (h) new text end .

deleted text begin (b) deleted text end new text begin (f) new text end For married taxpayers filing a joint return and surviving spouses, the maximum
subtraction new text begin under paragraph (c) new text end equals deleted text begin $5,150 deleted text end new text begin $5,840 new text end . The maximum subtraction is reduced
by 20 percent of provisional income over deleted text begin $78,180 deleted text end new text begin $88,630 new text end . In no case is the subtraction
less than zero.

deleted text begin (c) deleted text end new text begin (g) new text end For single or head-of-household taxpayers, the maximum subtraction new text begin under
paragraph (c) new text end equals deleted text begin $4,020 deleted text end new text begin $4,560 new text end . The maximum subtraction is reduced by 20 percent of
provisional income over deleted text begin $61,080 deleted text end new text begin $69,250 new text end . In no case is the subtraction less than zero.

deleted text begin (d) deleted text end new text begin (h) new text end For married taxpayers filing separate returns, the maximum subtraction new text begin under
paragraph (c) new text end equals one-half the maximum subtraction for joint returns under paragraph
deleted text begin (b) deleted text end new text begin (d) new text end . The maximum subtraction is reduced by 20 percent of provisional income over
one-half the threshold amount specified in paragraph deleted text begin (b) deleted text end new text begin (d) new text end . In no case is the subtraction
less than zero.

deleted text begin (e) deleted text end new text begin (i) new text end 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.

deleted text begin (f) deleted text end new text begin (j) new text end The commissioner shall adjust the deleted text begin maximum subtraction and deleted text end new text begin phaseout new text end threshold
amounts in paragraphs deleted text begin (b) to deleted text end new text begin (c) and new text end (d) as provided in section 270C.22. The statutory year
is taxable year deleted text begin 2019 deleted text end new text begin 2023 new text end . 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 for taxable years beginning after December
31, 2022.
new text end

Sec. 22.

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

new text begin Subd. 34. new text end

new text begin Qualified retirement benefits. new text end

new text begin (a) The amount of qualified public pension
income is a subtraction. The subtraction in this section is limited to:
new text end

new text begin (1) $25,000 for a married taxpayer filing a joint return or surviving spouse; or
new text end

new text begin (2) $12,500 for all other filers.
new text end

new text begin (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:
new text end

new text begin (1) $100,000 for a married taxpayer filing a joint return or surviving spouse;
new text end

new text begin (2) $78,000 for a single or head of household taxpayer; or
new text end

new text begin (3) for a married taxpayer filing a separate return, half the amount for a married taxpayer
filing a joint return.
new text end

new text begin (c) For the purposes of this section, "qualified public pension income" means any amount
received:
new text end

new text begin (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
is not also receiving Social Security benefits;
new text end

new text begin (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 is not also receiving Social Security benefits;
new text end

new text begin (3) from any retirement system administered by the federal government that is based on
service for which the recipient or the recipient's survivor is not also receiving Social Security
benefits; or
new text end

new text begin (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.
new text end

new text begin (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 end

new text begin EFFECTIVE DATE. new text end

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

Sec. 23.

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

new text begin Subd. 35. new text end

new text begin Subpart F income. new text end

new text begin For a unitary business, as defined in section 290.17,
subdivision 4, paragraph (b), the amount of subpart F income included in gross income
under section 951 of the Internal Revenue Code is a subtraction.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 24.

Minnesota Statutes 2022, section 290.0134, is amended by adding a subdivision
to read:

new text begin Subd. 21. new text end

new text begin Subpart F income. new text end

new text begin For a unitary business, as defined in section 290.17,
subdivision 4, paragraph (b), the amount of subpart F income included in gross income
under section 951 of the Internal Revenue Code is a subtraction.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 25.

Minnesota Statutes 2022, 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 maximum refund for an individual must not
exceed deleted text begin $50 deleted text end new text begin $75 new text end and for a married couple, filing jointly, must not exceed deleted text begin $100 deleted text end new text begin $150 new text end . A
refund of a contribution is allowed only if the taxpayer files a form required by the
commissioner and attaches to the form a copy of an official refund receipt form 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
received. 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 request.
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. A taxpayer may file only one claim
per calendar year. 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.

(b) 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.

(c) 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.

(d) The commissioner shall make copies of the form available to the public and candidates
upon request.

(e) 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.

(f) 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.

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

(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).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2024, and applies to refunds
for contributions made in calendar year 2024 and thereafter.
new text end

Sec. 26.

Minnesota Statutes 2022, section 290.06, subdivision 39, is amended to read:

Subd. 39.

Film production credit.

(a) A taxpayer, including a taxpayer to whom a credit
has been assigned under section 116U.27, subdivision 3, may claim a credit against the tax
imposed by this chapter equal to the amount certified on a credit certificate under section
116U.27, subject to the limitations in this subdivision.

(b) The credit is limited to the liability for tax, as computed under this chapter, for the
taxable year. If the amount of the credit determined under this subdivision for any taxable
year exceeds this limitation, the excess is a film production credit carryover to each of the
five succeeding taxable years. The entire amount of the excess unused credit for the taxable
year is 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 any film production credit for the taxable year.

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

(d) Notwithstanding the approval and certification by the commissioner of employment
and economic development under section 116U.27, the commissioner may utilize any audit
and examination powers under chapter 270C or 289A to the extent necessary to verify that
the taxpayer is eligible for the credit and to assess the amount of any improperly claimed
credit. The commissioner may only assess the original recipient of the credit certificate for
the amount of improperly claimed credits. The commissioner may not assess a credit
certificate assignee for any amount of improperly claimed credits, and an assignee's claim
for credit is not affected by the commissioner's assessment of improperly claimed credits
against the assignor.

(e) This subdivision expires January 1, deleted text begin 2025 deleted text end new text begin 2033 new text end , for taxable years beginning after
December 31, 2024, except that the expiration of this section does not affect the commissioner
of revenue's authority to audit or power of examination and assessment for credits claimed
under this subdivision.

new text begin EFFECTIVE DATE. new text end

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

Sec. 27.

Minnesota Statutes 2022, section 290.06, is amended by adding a subdivision to
read:

new text begin Subd. 41. new text end

new text begin Pass-through entity tax paid to another state. new text end

new text begin (a) A credit is allowed against
the pass-through entity tax imposed under section 289A.08, subdivision 7a, for pass-through
entity tax paid to another state. The credit under this subdivision shall be deemed to be
allowed as a credit for taxes paid to another state in accordance with subdivision 22,
paragraph (a), and can only be claimed by the qualifying owner. As used in this subdivision,
"pass-through entity tax" means the tax under section 289A.08, subdivision 7a. The credit
allowed under this subdivision must be claimed in a manner prescribed by the commissioner.
new text end

new text begin (b) This section expires at the same time and on the same terms as section 164(b)(6)(B)
of the Internal Revenue Code, except that the expiration of this section does not affect the
commissioner's authority to audit or power of examination and assessments for credits
claimed under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 21, 2021.
new text end

Sec. 28.

Minnesota Statutes 2022, section 290.067, is amended to read:

290.067 deleted text begin DEPENDENT deleted text end new text begin GREAT START CHILD CARE AND DEPENDENT new text end CARE
CREDIT.

Subdivision 1.

Amount of credit.

(a) A taxpayer may take as a credit against the tax
due from the taxpayer and a spouse, if any, under this chapter an amount equal to deleted text begin the
dependent care credit for which the taxpayer is eligible pursuant to the provisions of section
21 of the Internal Revenue Code except that in determining whether the child qualified as
a dependent, income received as a Minnesota family investment program grant or allowance
to or on behalf of the child must not be taken into account in determining whether the child
received more than half of the child's support from the taxpayer deleted text end new text begin the taxpayer's eligible
dependent care expenses, as determined under subdivisions 1a and 1b, multiplied by the
taxpayer's credit percentage, as determined under subdivision 1c new text end .

deleted text begin (b) If a child who has not attained the age of six years at the close of the taxable year is
cared for at a licensed family day care home operated by the child's parent, the taxpayer is
deemed to have paid employment-related expenses. If the child is 16 months old or younger
at the close of the taxable year, the amount of expenses deemed to have been paid equals
the maximum limit for one qualified individual under section 21(c) and (d) of the Internal
Revenue Code. If the child is older than 16 months of age but has not attained the age of
six years at the close of the taxable year, the amount of expenses deemed to have been paid
equals the amount the licensee would charge for the care of a child of the same age for the
same number of hours of care.
deleted text end

deleted text begin (c) If a married couple:
deleted text end

deleted text begin (1) has a child who has not attained the age of one year at the close of the taxable year;
deleted text end

deleted text begin (2) files a joint tax return for the taxable year; and
deleted text end

deleted text begin (3) does not participate in a dependent care assistance program as defined in section 129
of the Internal Revenue Code, in lieu of the actual employment related expenses paid for
that child under paragraph (a) or the deemed amount under paragraph (b), the lesser of (i)
the combined earned income of the couple or (ii) the amount of the maximum limit for one
qualified individual under section 21(c) and (d) of the Internal Revenue Code will be deemed
to be the employment related expense paid for that child. The earned income limitation of
section 21(d) of the Internal Revenue Code shall not apply to this deemed amount. These
deemed amounts apply regardless of whether any employment-related expenses have been
paid.
deleted text end

deleted text begin (d) If the taxpayer is not required and does not file a federal individual income tax return
for the tax year, no credit is allowed for any amount paid to any person unless:
deleted text end

deleted text begin (1) the name, address, and taxpayer identification number of the person are included on
the return claiming the credit; or
deleted text end

deleted text begin (2) if the person is an organization described in section 501(c)(3) of the Internal Revenue
Code and exempt from tax under section 501(a) of the Internal Revenue Code, the name
and address of the person are included on the return claiming the credit.
deleted text end

deleted text begin In the case of a failure to provide the information required under the preceding sentence,
the preceding sentence does not apply if it is shown that the taxpayer exercised due diligence
in attempting to provide the information required.
deleted text end

deleted text begin (e) deleted text end new text begin (b) new text end In the case of a nonresident, part-year resident, or a person who has earned income
not subject to tax under this chapter deleted text begin including earned income excluded pursuant to section
290.0132, subdivision 10 deleted text end , the credit determined under deleted text begin section 21 of the Internal Revenue
Code deleted text end new text begin this section new text end must be allocated deleted text begin based on the ratio by which the earned income of the
claimant and the claimant's spouse from Minnesota sources bears to the total earned income
of the claimant and the claimant's spouse deleted text end new text begin using the percentage calculated in section 290.06,
subdivision 2c, paragraph (e) new text end .

deleted text begin (f) For residents of Minnesota, the subtractions for military pay under section 290.0132,
subdivisions 11 and 12, are not considered "earned income not subject to tax under this
chapter."
deleted text end

deleted text begin (g) For residents of Minnesota, the exclusion of combat pay under section 112 of the
Internal Revenue Code is not considered "earned income not subject to tax under this
chapter."
deleted text end

deleted text begin (h) For taxpayers with federal adjusted gross income in excess of $52,230, the credit is
equal to the lesser of the credit otherwise calculated under this subdivision, or the amount
equal to $600 minus five percent of federal adjusted gross income in excess of $52,230 for
taxpayers with one qualified individual, or $1,200 minus five percent of federal adjusted
gross income in excess of $52,230 for taxpayers with two or more qualified individuals,
but in no case is the credit less than zero.
deleted text end

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

new text begin (1) "employment-related expenses" has the meaning given in section 21(b)(2) of the
Internal Revenue Code;
new text end

new text begin (2) "qualifying individual" has the meaning given in section 21(b)(1) of the Internal
Revenue Code, except that in determining whether the child qualified as a dependent, income
received as a Minnesota family investment program grant or allowance to or on behalf of
the child must not be taken into account in determining whether the child received more
than half of the child's support from the taxpayer; and
new text end

new text begin (3) "young child" means a qualifying individual who had not attained the age of five by
December 31 of the taxable year.
new text end

new text begin Subd. 1a. new text end

new text begin Eligible dependent care expenses. new text end

new text begin (a) A taxpayer's eligible dependent care
expenses equals the amount of employment-related expenses incurred by the taxable year,
subject to the limitations in paragraphs (b) and (c).
new text end

new text begin (b) Except as provided in subdivision 1b, a taxpayer's eligible dependent care expenses
are limited to:
new text end

new text begin (1) $3,000 if there was one qualifying individual with respect to the taxpayer; or
new text end

new text begin (2) $6,000 if there were two or more qualifying individuals with respect to the taxpayer.
new text end

new text begin Subd. 1b. new text end

new text begin Eligible expenses for taxpayers with young children. new text end

new text begin For a taxpayer with
a young child, the limit in paragraph (b) is increased as follows:
new text end

new text begin (1) for a taxpayer with one young child with respect to the taxpayer, the limit is increased
by $7,000;
new text end

new text begin (2) for a taxpayer with two young children with respect to the taxpayer, the limit is
increased by $14,000; and
new text end

new text begin (3) for a taxpayer with three or more young children with respect to the taxpayer, the
limit is increased by $19,000.
new text end

new text begin Subd. 1c. new text end

new text begin Credit percentage. new text end

new text begin (a) The credit percentage equals 50 percent, subject to
the reductions in paragraphs (b) and (c).
new text end

new text begin (b) A taxpayer's credit percentage is reduced by one percentage point for each $800, or
fraction thereof, by which the taxpayer's adjusted gross income exceeds $160,000.
new text end

new text begin (c) For a married taxpayer filing a separate return, the credit percentage must be calculated
under paragraphs (a) and (b), except the adjusted gross income thresholds are one-half the
amounts for other filers, as adjusted for inflation under subdivision 2b.
new text end

Subd. 2b.

Inflation adjustment.

The commissioner shall annually adjust the dollar
amount of the income threshold at which the deleted text begin maximum deleted text end credit new text begin percentage new text end begins to be
reduced under subdivision deleted text begin 1 deleted text end new text begin 1c new text end as provided in section 270C.22. The statutory year is taxable
year deleted text begin 2019 deleted text end new text begin 2023 new text end .

new text begin Subd. 2c. new text end

new text begin Deemed expenses. new text end

new text begin (a) If a child who has not attained the age of six years at
the close of the taxable year is cared for at a licensed family day care home operated by the
child's parent, the taxpayer is deemed to have paid employment-related expenses. The
amount of expenses deemed to have been paid equals the amount the licensee would charge
for the care of a child of the same age for the same number of hours of care.
new text end

new text begin (b) If a married couple:
new text end

new text begin (1) has a child who has not attained the age of one year at the close of the taxable year;
and
new text end

new text begin (2) does not participate in a dependent care assistance program as defined in section 129
of the Internal Revenue Code; then in lieu of the actual employment-related expenses paid
for that child under or the deemed amount under paragraph (a), the amount deemed to be
the employment-related expense paid for that child equals the lesser of:
new text end

new text begin (i) the combined earned income of the couple; or
new text end

new text begin (ii) the amount of the maximum limit for one qualified individual under subdivision 1a,
as increased by subdivision 1b.
new text end

new text begin The earned income limitation of section 21(d) of the Internal Revenue Code shall not apply
to this deemed amount. These deemed amounts apply regardless of whether any
employment-related expenses have been paid.
new text end

new text begin Subd. 2d. new text end

new text begin Identifying information required. new text end

new text begin (a) No credit is allowed for any amount
paid to any person unless:
new text end

new text begin (1) the name, address, and taxpayer identification number of the person are included on
the return claiming the credit; or
new text end

new text begin (2) if the person is an organization described in section 501(c)(3) of the Internal Revenue
Code and exempt from tax under section 501(a) of the Internal Revenue Code, the name
and address of the person are included on the return claiming the credit.
new text end

new text begin (b) The rule in section 21(e)(10) of the Internal Revenue Code applies for the credit
under this section.
new text end

Subd. 3.

Credit to be refundable.

If the amount of credit which a claimant would be
eligible to receive pursuant to this subdivision exceeds the claimant's tax liability under
chapter 290, the excess amount of the credit shall be refunded to the claimant by the
commissioner of revenue. new text begin An amount sufficient to pay the refunds required by this section
is appropriated to the commissioner from the general fund.
new text end

Subd. 4.

Right to file claim.

The right to file a claim under this section shall be personal
to the claimant and shall not survive death, but such right may be exercised on behalf of a
claimant by the claimant's legal guardian or attorney-in-fact. When a claimant dies after
having filed a timely claim the amount thereof shall be disbursed to another member of the
household as determined by the commissioner of revenue. If the claimant was the only
member of a household, the claim may be paid to the claimant's personal representative,
but if neither is appointed and qualified within two years of the filing of the claim, the
amount of the claim shall escheat to the state.

new text begin Subd. 5. new text end

new text begin Employment-related expenses. new text end

new text begin For the purposes of determining
employment-related expenses, the provisions of sections 21(d) and 21(e)(6) of the Internal
Revenue Code apply.
new text end

new text begin Subd. 6. new text end

new text begin Rules for married couples filing separate returns. new text end

new text begin A married taxpayer filing
a separate return may claim the credit under this section, but only one spouse may claim
the credit.
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, 2022.
new text end

Sec. 29.

Minnesota Statutes 2022, section 290.0671, subdivision 1, is amended to read:

Subdivision 1.

Credit allowed.

(a) An individual who is a resident of Minnesota is
allowed a credit against the tax imposed by this chapter equal to a percentage of earned
income. To receive a credit, a taxpayer must be eligible for a credit under section 32 of the
Internal Revenue Code, except that:

(1) a taxpayer with no qualifying children who has attained the age of 19, but not attained
age 65 before the close of the taxable year and is otherwise eligible for a credit under section
32 of the Internal Revenue Code may also receive a credit; deleted text begin and
deleted text end

(2) a taxpayer who is otherwise eligible for a credit under section 32 of the Internal
Revenue Code remains eligible for the credit even if the taxpayer's earned income or adjusted
gross income exceeds the income limitation under section 32 of the Internal Revenue Code deleted text begin . deleted text end new text begin ;
and
new text end

new text begin (3) the requirements of section 32(m) of the Internal Revenue Code do not apply.
new text end

(b) For individuals with no qualifying children, the credit equals 3.9 percent of the first
$7,150 of earned income. The credit is reduced by 2.0 percent of earned income or adjusted
gross income, whichever is greater, in excess of the phaseout threshold, but in no case is
the credit less than zero.

(c) For individuals with one qualifying child, the credit equals 9.35 percent of the first
$11,950 of earned income. The credit is reduced by 6.0 percent of earned income or adjusted
gross income, whichever is greater, in excess of the phaseout threshold, but in no case is
the credit less than zero.

(d) For individuals with two qualifying children, the credit equals 11 percent of the first
$19,600 of earned income. The credit is reduced by 10.5 percent of earned income or adjusted
gross income, whichever is greater, in excess of the phaseout threshold, but in no case is
the credit less than zero.

(e) For individuals with three or more qualifying children, the credit equals 12.5 percent
of the first $20,000 of earned income. The credit is reduced by 10.5 percent of earned income
or adjusted gross income, whichever is greater, in excess of the phaseout threshold, but in
no case is the credit less than zero.

(f) For a part-year resident, the credit must be allocated based on the percentage calculated
under section 290.06, subdivision 2c, paragraph (e).

(g) For a person who was a resident for the entire tax year and has earned income not
subject to tax under this chapter, including income excluded under section 290.0132,
subdivision 10, the credit must be allocated based on the ratio of federal adjusted gross
income reduced by the earned income not subject to tax under this chapter over federal
adjusted gross income. For purposes of this paragraph, the following clauses are not
considered "earned income not subject to tax under this chapter":

(1) the subtractions for military pay under section 290.0132, subdivisions 11 and 12;

(2) the exclusion of combat pay under section 112 of the Internal Revenue Code; and

(3) income derived from an Indian reservation by an enrolled member of the reservation
while living on the reservation.

(h) For the purposes of this section, the phaseout threshold equals:

(1) $14,570 for married taxpayers filing joint returns with no qualifying children;

(2) $8,730 for all other taxpayers with no qualifying children;

(3) $28,610 for married taxpayers filing joint returns with one qualifying child;

(4) $22,770 for all other taxpayers with one qualifying child;

(5) $32,840 for married taxpayers filing joint returns with two qualifying children;

(6) $27,000 for all other taxpayers with two qualifying children;

(7) $33,140 for married taxpayers filing joint returns with three or more qualifying
children; and

(8) $27,300 for all other taxpayers with three or more qualifying children.

(i) The commissioner shall construct tables showing the amount of the credit at various
income levels and make them available to taxpayers. The tables shall follow the schedule
contained in this subdivision, except that the commissioner may graduate the transition
between income brackets.

new text begin EFFECTIVE DATE. new text end

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

Sec. 30.

Minnesota Statutes 2022, section 290.0674, is amended to read:

290.0674 MINNESOTA EDUCATION CREDIT.

Subdivision 1.

Credit allowed deleted text begin ; definitions deleted text end .

An individual is allowed a credit against
the tax imposed by this chapter in an amount equal to 75 percent of the amount paid for
education-related expenses for a qualifying child in kindergarten through grade 12.

new text begin Subd. 1a. new text end

new text begin Definitions. new text end

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

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

(1) new text begin qualifying instructional new text end fees or tuition deleted text begin for instruction by an instructor under section
120A.22, subdivision 10, clause (1), (2), (3), (4), or (5), or a member of the Minnesota
Music Teachers Association, and who is not a lineal ancestor or sibling of the dependent
for instruction outside the regular school day or school year, including tutoring, driver's
education offered as part of school curriculum, regardless of whether it is taken from a
public or private entity or summer camps, in grade or age appropriate curricula that
supplement curricula and instruction available during the regular school year, that assists a
dependent to improve knowledge of core curriculum areas or to expand knowledge and
skills under the required academic standards under section 120B.021, subdivision 1, and
the world languages standards under section 120B.022, subdivision 1, and that do not include
the teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such
tenets, doctrines, or worship deleted text end ;

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

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

(4) the amount paid to others for transportation of a qualifying child attending an
elementary or secondary school situated in Minnesota, North Dakota, South Dakota, Iowa,
or Wisconsin, wherein a resident of this state may legally fulfill the state's compulsory
attendance laws, which is not operated for profit, and which adheres to the provisions of
the Civil Rights Act of 1964 and chapter 363A. Amounts under this clause exclude any
expense the taxpayer incurred in using the taxpayer's or the qualifying child's vehicle.

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

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

new text begin (2) a member of the Minnesota Music Teachers Association.
new text end

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

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

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

new text begin (2) tutoring or summer camps that:
new text end

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

new text begin (ii) assist a dependent to improve knowledge of core curriculum areas; or
new text end

new text begin (iii) expand knowledge and skills under:
new text end

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

new text begin (B) the world languages standards under section 120B.022, subdivision 1.
new text end

Subd. 2.

Limitations.

(a) For claimants with new text begin adjusted gross new text end income not greater than
deleted text begin $33,500 deleted text end new text begin $70,000 new text end , the maximum credit allowed for a family is deleted text begin $1,000 deleted text end new text begin $1,500 new text end multiplied by
the number of qualifying children in kindergarten through grade 12 in the family. The
maximum credit for families with one qualifying child in kindergarten through grade 12 is
reduced by $1 for each $4 of deleted text begin household deleted text end new text begin adjusted gross new text end income over deleted text begin $33,500 deleted text end new text begin $70,000 new text end , and
the maximum credit for families with two or more qualifying children in kindergarten
through grade 12 is reduced by $2 for each $4 of deleted text begin household deleted text end new text begin adjusted gross new text end income over
deleted text begin $33,500 deleted text end new text begin $70,000 new text end , but in no case is the credit less than zero.

(b) In the case of a married claimant, a credit is not allowed unless a joint income tax
return is filed.

(c) For a nonresident or part-year resident, the credit determined under subdivision 1
and the maximum credit amount in paragraph (a) must be allocated using the percentage
calculated in section 290.06, subdivision 2c, paragraph (e).

deleted text begin Subd. 2a. deleted text end

deleted text begin Income. deleted text end

deleted text begin (a) For purposes of this section, "income" means the sum of the
following:
deleted text end

deleted text begin (1) federal adjusted gross income as defined in section 62 of the Internal Revenue Code;
and
deleted text end

deleted text begin (2) the sum of the following amounts to the extent not included in clause (1):
deleted text end

deleted text begin (i) all nontaxable income;
deleted text end

deleted text begin (ii) the amount of a passive activity loss that is not disallowed as a result of section 469,
paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss
carryover allowed under section 469(b) of the Internal Revenue Code;
deleted text end

deleted text begin (iii) an amount equal to the total of any discharge of qualified farm indebtedness of a
solvent individual excluded from gross income under section 108(g) of the Internal Revenue
Code;
deleted text end

deleted text begin (iv) cash public assistance and relief;
deleted text end

deleted text begin (v) any pension or annuity (including railroad retirement benefits, all payments received
under the federal Social Security Act, Supplemental Security Income, and veterans benefits),
which was not exclusively funded by the claimant or spouse, or which was funded exclusively
by the claimant or spouse and which funding payments were excluded from federal adjusted
gross income in the years when the payments were made;
deleted text end

deleted text begin (vi) interest received from the federal or a state government or any instrumentality or
political subdivision thereof;
deleted text end

deleted text begin (vii) workers' compensation;
deleted text end

deleted text begin (viii) nontaxable strike benefits;
deleted text end

deleted text begin (ix) the gross amounts of payments received in the nature of disability income or sick
pay as a result of accident, sickness, or other disability, whether funded through insurance
or otherwise;
deleted text end

deleted text begin (x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
1986, as amended through December 31, 1995;
deleted text end

deleted text begin (xi) contributions made by the claimant to an individual retirement account, including
a qualified voluntary employee contribution; simplified employee pension plan;
self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of
the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal
Revenue Code;
deleted text end

deleted text begin (xii) nontaxable scholarship or fellowship grants;
deleted text end

deleted text begin (xiii) the amount of deduction allowed under section 199 of the Internal Revenue Code;
deleted text end

deleted text begin (xiv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue
Code;
deleted text end

deleted text begin (xv) the amount deducted for tuition expenses under section 222 of the Internal Revenue
Code; and
deleted text end

deleted text begin (xvi) the amount deducted for certain expenses of elementary and secondary school
teachers under section 62(a)(2)(D) of the Internal Revenue Code.
deleted text end

deleted text begin In the case of an individual who files an income tax return on a fiscal year basis, the
term "federal adjusted gross income" means federal adjusted gross income reflected in the
fiscal year ending in the next calendar year. Federal adjusted gross income may not be
reduced by the amount of a net operating loss carryback or carryforward or a capital loss
carryback or carryforward allowed for the year.
deleted text end

deleted text begin (b) "Income" does not include:
deleted text end

deleted text begin (1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
deleted text end

deleted text begin (2) amounts of any pension or annuity that were exclusively funded by the claimant or
spouse if the funding payments were not excluded from federal adjusted gross income in
the years when the payments were made;
deleted text end

deleted text begin (3) surplus food or other relief in kind supplied by a governmental agency;
deleted text end

deleted text begin (4) relief granted under chapter 290A;
deleted text end

deleted text begin (5) child support payments received under a temporary or final decree of dissolution or
legal separation; and
deleted text end

deleted text begin (6) restitution payments received by eligible individuals and excludable interest as
defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001,
Public Law 107-16.
deleted text end

Subd. 4.

Credit to be refundable.

If the amount of credit that the claimant is eligible
to receive under this section exceeds the claimant's tax liability under this chapter, the
commissioner shall refund the excess to the claimant.

Subd. 5.

Appropriation.

An amount sufficient to pay the refunds required by this section
is appropriated to the commissioner from the general fund.

new text begin Subd. 6. new text end

new text begin Inflation adjustment. new text end

new text begin The commissioner shall annually adjust the adjusted
gross income amounts in subdivision 2, as provided in section 270C.22. The statutory year
is taxable year 2023.
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, 2022.
new text end

Sec. 31.

Minnesota Statutes 2022, section 290.0677, subdivision 1, is amended to read:

Subdivision 1.

Credit allowed; current military service.

(a) An individual is allowed
a credit against the tax due under this chapter equal to $59 for each month or portion thereof
that the individual was in active military service in a designated area after September 11,
2001, and before January 1, 2009, while a Minnesota domiciliary.

(b) An individual is allowed a credit against the tax due under this chapter equal to $120
for each month or portion thereof that the individual was in active military service in a
designated area after December 31, 2008, while a Minnesota domiciliary.

(c) For active service performed after September 11, 2001, and before December 31,
2006, the individual may claim the credit in the taxable year beginning after December 31,
2005, and before January 1, 2007.

(d) For active service performed after December 31, 2006, the individual may claim the
credit for the deleted text begin taxable deleted text end new text begin calendar new text end year in which the active service was performed.

new text begin EFFECTIVE DATE. new text end

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

Sec. 32.

Minnesota Statutes 2022, section 290.0681, subdivision 3, is amended to read:

Subd. 3.

Applications; allocations.

(a) To qualify for a credit or grant under this section,
the developer of a project must apply to the office before the rehabilitation begins. The
application must contain the information and be in the form prescribed by the office. The
office may collect a fee for application of up to 0.5 percent of qualified rehabilitation
expenditures, up to $40,000, based on estimated qualified rehabilitation expenditures, to
offset costs associated with personnel and administrative expenses related to administering
the credit and preparing the economic impact report in subdivision 9. Application fees are
deposited in the account. The application must indicate if the application is for a credit or
a grant in lieu of the credit or a combination of the two and designate the taxpayer qualifying
for the credit or the recipient of the grant.

(b) Upon approving an application for credit, the office shall issue allocation certificates
that:

(1) verify eligibility for the credit or grant;

(2) state the amount of credit or grant anticipated with the project, with the credit amount
equal to 100 percent and the grant amount equal to 90 percent of the federal credit anticipated
in the application;

(3) state that the credit or grant allowed may increase or decrease if the federal credit
the project receives at the time it is placed in service is different than the amount anticipated
at the time the allocation certificate is issued; and

(4) state the fiscal year in which the credit or grant is allocated, and that the taxpayer or
grant recipient is entitled to receive one-fifth of the total amount of either the credit or the
grant at the time the project is placed in service, provided that date is within deleted text begin three deleted text end new text begin five new text end
calendar years following the issuance of the allocation certificate.

(c) The office, in consultation with the commissioner, shall determine if the project is
eligible for a credit or a grant under this section and must notify the developer in writing
of its determination. Eligibility for the credit is subject to review and audit by the
commissioner.

(d) The federal credit recapture and repayment requirements under section 50 of the
Internal Revenue Code do not apply to the credit allowed under this section.

(e) Any decision of the office under paragraph (c) may be challenged as a contested case
under chapter 14. The contested case proceeding must be initiated within 45 days of the
date of written notification by the office.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for applications for allocation certificates
submitted after June 30, 2023.
new text end

Sec. 33.

Minnesota Statutes 2022, section 290.0681, subdivision 4, is amended to read:

Subd. 4.

Credit certificates; grants.

(a)(1) The developer of a project for which the
office has issued an allocation certificate must notify the office when the project is placed
in service. Upon verifying that the project has been placed in service, and was allowed a
federal credit, the office must issue a credit certificate to the taxpayer designated in the
application or must issue a grant to the recipient designated in the application. The credit
certificate must state the amount of the credit.

(2) The credit amount equals the federal credit allowed for the project.

(3) The grant amount equals 90 percent of the federal credit allowed for the project.

(b) The recipient of a credit certificate may assign the certificate to another taxpayer
before the first one-fifth payment is claimed, which is then allowed the credit under this
section or section 297I.20, subdivision 3. new text begin Before the payment is claimed, the first assignee
may subsequently assign the credit certificate in whole, but not in part, to a second assignee.
A second assignment may only be assigned to a financial institution. new text end An assignment is not
valid unless the assignee notifies the commissioner within 30 days of the date that the
assignment is made. The commissioner shall prescribe the forms necessary for notifying
the commissioner of the assignment of a credit certificate and for claiming a credit by
assignment. new text begin The original credit certificate recipient, and each assignee, must file a return
with the commissioner for the taxable year that the project is placed in service.
new text end

(c) Credits passed through to partners, members, shareholders, or owners pursuant to
subdivision 5 are not an assignment of a credit certificate under this subdivision.

(d) A grant agreement between the office and the recipient of a grant may allow the
grant to be issued to another individual or entity.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for projects placed in service after June
30, 2023.
new text end

Sec. 34.

Minnesota Statutes 2022, section 290.0685, subdivision 1, is amended to read:

Subdivision 1.

Credit allowed.

(a) An individual new text begin who is a resident of Minnesota new text end is
allowed a credit against the tax imposed by this chapter equal to $2,000 for each birth new text begin :
new text end

new text begin (1) new text end for which a certificate of birth resulting in stillbirth has been issued under section
144.2151 deleted text begin . deleted text end new text begin ; or
new text end

new text begin (2) outside of Minnesota for which there is a certificate similar to the certificate under
section 144.2151 that documents that the stillbirth occurred under the applicable local laws.
new text end

new text begin (b) new text end The credit under this section is allowed only in the taxable year in which the stillbirth
occurred and if the child would have been a dependent of the taxpayer as defined in section
152 of the Internal Revenue Code.

deleted text begin (b) deleted text end new text begin (c) new text end For a deleted text begin nonresident or deleted text end part-year resident, the credit must be allocated based on the
percentage calculated under section 290.06, subdivision 2c, paragraph (e).

new text begin EFFECTIVE DATE. new text end

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

Sec. 35.

new text begin [290.0687] MINNESOTA CHILD TAX CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, the following terms have the
meanings given:
new text end

new text begin (1) "child" means a qualifying child, as defined in section 152(c) of the Internal Revenue
Code, who was under 18 years of age at the end of the taxable year;
new text end

new text begin (2) "credit" means the Minnesota Child Tax Credit allowed by this section;
new text end

new text begin (3) "disabled adult child" means a qualifying child, as defined in section 152(c) of the
Internal Revenue Code, who was:
new text end

new text begin (i) at least 18 years of age at the end of the taxable year; and
new text end

new text begin (ii) at any time during the taxable year was permanently and totally disabled, as defined
in section 22(e)(3) of the Internal Revenue Code; and
new text end

new text begin (4) "threshold amount" means:
new text end

new text begin (i) $33,300 for individuals who are not married;
new text end

new text begin (ii) $50,000 for married taxpayers filing a joint return; and
new text end

new text begin (iii) $25,000 for married taxpayers filing separate returns.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin Residents and part-year residents are allowed a credit against
the tax due under this chapter in an amount equal to $620 per child or disabled adult child.
new text end

new text begin Subd. 3. new text end

new text begin Limitations. new text end

new text begin (a) The maximum total credit allowed to a taxpayer for the taxable
year is $1,860.
new text end

new text begin (b) The maximum credit, as determined in paragraph (a), is reduced by $62 for each
$1,000 by which the taxpayer's adjusted gross income exceeds the threshold amount. In no
case is the credit less than zero.
new text end

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

new text begin (d) For purposes of this subdivision, marital status is determined under section 7703 of
the Internal Revenue Code.
new text end

new text begin Subd. 4. new text end

new text begin Credit refundable. new text end

new text begin If the amount of credit which the claimant is eligible to
receive under this section exceeds the claimant's tax liability under this chapter, the
commissioner shall refund the excess to the claimant.
new text end

new text begin Subd. 5. new text end

new text begin Inflation adjustment. new text end

new text begin The commissioner must annually adjust the credit amount
under subdivision 2, the dollar amount of the income threshold at which the maximum credit
begins to be reduced under subdivision 3, and the maximum credit, as provided in section
270C.22. The statutory year is taxable year 2023.
new text end

new text begin Subd. 6. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to pay the refunds required by this section
is appropriated to the commissioner from the general fund.
new text end

new text begin Subd. 7. new text end

new text begin Sunset. new text end

new text begin This section expires for taxable years beginning after December 31,
2030. The expiration of this section does not affect the commissioner's authority to audit
or power of examination and assessment for credits claimed under this section.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 36.

new text begin [290.0693] NEW MARKETS TAX CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, terms defined in section 116X.01
have the meanings given in that section.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin (a) An entity that makes a qualified equity investment is
allowed a credit against the tax imposed under this chapter equal to the amount calculated
under section 116X.01, subdivision 2. An entity may claim a credit on each credit allowance
date.
new text end

new text begin (b) Tax credits earned by or allocated to a partnership, a limited liability company taxed
as a partnership, or an S corporation are passed through to the partners, members,
shareholders, or owners, respectively, in accordance with the provisions of any agreement
among the partners, members, shareholders, or owners, or, in the absence of an agreement,
pro rata to each partner, member, shareholder, or owner based on their share of the entity's
assets as of the last day of the taxable year. A pass-through of a credit is not considered a
sale for the purposes of section 116X.01.
new text end

new text begin (c) If the amount of the credit under this section 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. The amount of the unused credit that
may be added under this paragraph may not exceed the taxpayer's liability for tax, less any
credit for the current taxable year.
new text end

new text begin Subd. 3. new text end

new text begin Credit recapture. new text end

new text begin (a) The commissioner must recapture credits should it
determine any of the following:
new text end

new text begin (1) any amount of the federal tax credit available with respect to a qualified equity
investment that is eligible for a credit under this section is recaptured under section 45D of
the Internal Revenue Code;
new text end

new text begin (2) the qualified community development entity redeems or makes principal repayment
with respect to a qualified equity investment prior to seven years after the date of issuance
of the qualified equity investment; or
new text end

new text begin (3) the qualified community development entity fails to invest at least 100 percent of
the cash purchase price of the qualified equity investment in qualified low-income community
investments in greater Minnesota counties or metropolitan counties, as applicable, within
12 months of the issuance of the qualified equity investment and maintains the investment
in qualified low-income community investments in greater Minnesota counties or
metropolitan counties, as applicable, until the last credit allowance date for the qualified
equity investment.
new text end

new text begin Upon verification of the event indicated in the notification, the commissioner must notify
the entity otherwise eligible for the credit allowed under this section and issue an assessment
and notify the entity and the commissioner of employment and economic development of
ineligibility for future credits with respect to the qualified equity investment. The recapture
under clause (1) must be proportionate to the federal recapture with respect to the qualified
equity investment. The recapture under clause (2) must be proportionate to the amount of
the redemption or repayment with respect to the qualified equity investment. The recapture
under clause (3) must be proportionate to the amount of qualified equity investment that
was failed to be invested or maintained.
new text end

new text begin (b) For purposes of paragraph (a), clause (3), an investment is considered maintained
by a qualified community development entity even if the investment has been sold or repaid,
provided that the qualified community development entity reinvests an amount equal to the
capital returned to or recovered by the qualified community development entity from the
original investment, exclusive of any profits realized, in another qualified low-income
community investment in this state as required under the greater Minnesota allocation or
metropolitan allocation within 12 months after the receipt of that capital, after notice and
written approval of both the sale and reinvestment by the commissioner of employment and
economic development. Periodic loan repayments received by a qualified community
development entity from a qualified active low-income community business within a calendar
year must be treated as maintained in qualified low-income community investments if a
qualified community development entity reinvests the repayments in qualified low-income
community investments by the end of the current taxable year.
new text end

new text begin (c) A qualified community development entity is not required to reinvest capital returned
from qualified low-income community investments after the sixth anniversary of the issuance
of the qualified equity investment, the proceeds of which were used to make the qualified
low-income community investment, and the qualified low-income community investment
is considered held by the qualified community development entity through the seventh
anniversary of the qualified equity investment's issuance.
new text end

new text begin (d) With respect to any one qualified active low-income community business, the
maximum amount of qualified low-income community investments made in that business
in aggregate with all of its affiliates that may be counted toward the satisfaction of paragraph
(a), clause (3), is $10,000,000, whether made by one or several qualified community
development entities but exclusive of redeemed or repaid qualified low-income community
investment by the qualified active low-income community business.
new text end

new text begin (e) The commissioner shall provide notice to the qualified community development
entity of any proposed recapture of credits pursuant to this subdivision. The notice must
specify the conditions under which the deficiency resulting in the proposed recapture occurred
and state that the credits will be recaptured within 90 days unless the qualified community
development entity complies with the conditions identified in the notice. If the entity does
not comply with the conditions identified in the notice within the 90-day period, the
commissioner shall provide the entity and the taxpayer from whom the credit is to be
recaptured with an order of assessment. Any credit amount that is recaptured must be
recaptured from the taxpayer who claimed the credit on a tax return. The qualified equity
investment authority of the recaptured credits must be returned to the commissioner of
employment and economic development, and must first be awarded pro rata to applicants
that have received awards of qualified equity investment authority and complied with this
subdivision.
new text end

new text begin (f) If credits are recaptured under this section, any remaining outstanding credit is
forfeited.
new text end

new text begin Subd. 4. new text end

new text begin Sunset. new text end

new text begin This section expires for taxable years beginning after December 31,
2031, except that the expiration of this section does not affect the commissioner of revenue's
authority to audit or power of examination and assessment for credits claimed under this
section.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 37.

new text begin [290.0694] CREDIT FOR SALES OF MANUFACTURED HOME PARKS
TO COOPERATIVES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Qualified seller" means a taxpayer who sells qualified property to a manufactured
home park cooperative, a nonprofit organization organized under chapter 317A, or a
representative acting on behalf of residents as defined under section 327C.015, subdivision
13.
new text end

new text begin (c) "Qualified property" means a manufactured home park in Minnesota classified as
4c(5)(i) or 4c(5)(iii) under section 273.13, subdivision 25, paragraph (d), that qualifies as
section 1250 property, as calculated under section 1250(a) of the Internal Revenue Code.
new text end

new text begin (d) "Manufactured home park cooperative" has the meaning given in section 273.124,
subdivision 3a.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed; carryforward. new text end

new text begin (a) A qualified seller is allowed a credit against
the tax imposed under this chapter. The credit equals five percent of the amount of the sale
price of the qualified property.
new text end

new text begin (b) If the amount of the credit under this section 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. The amount of the unused credit that
may be added under this paragraph may not exceed the taxpayer's liability for tax, less any
credit for the current taxable year.
new text end

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

new text begin Subd. 3. new text end

new text begin Partnerships; multiple owners. new text end

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 38.

new text begin [290.0695] SHORT LINE RAILROAD INFRASTRUCTURE
MODERNIZATION CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

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

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

new text begin (c) "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 end

new text begin Subd. 2. new text end

new text begin Credit allowed; limitation; carryover. new text end

new text begin (a) An eligible taxpayer is allowed a
credit against the tax due under this chapter equal to 50 percent 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 within the state by the eligible
taxpayer for which the taxpayer made qualified railroad reconstruction or replacement
expenditures as of the close of the taxable year for which the credit is claimed.
new text end

new text begin (b) If the amount of the credit determined under this section for any taxable year exceeds
the limitation under paragraph (b), 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.
new text end

new text begin (c) 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 end

new text begin Subd. 3. new text end

new text begin Transferability; written agreement required; credit certificate. new text end

new text begin (a) An
eligible taxpayer may transfer the credit allowed under this section by written agreement
to an eligible transferee. The amount of the transferred credit is limited to the unused,
remaining portion of the credit.
new text end

new text begin (b) 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 maybe claimed.
new text end

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

new 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.
new text end

new text begin Subd. 4. new text end

new text begin Partnerships; multiple owners. new text end

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

new text begin Subd. 5. new text end

new text begin Allocation for nonresidents and part-year residents. new text end

new text begin For a nonresident or
part-year resident, the credit determined under this section must be allocated based on the
percentage calculated under section 290.06, subdivision 2c, paragraph (e).
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, 2022.
new text end

Sec. 39.

new text begin [290.0811] INCOME OF CERTAIN NONRESIDENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption allowed. new text end

new text begin Notwithstanding section 290.081, compensation
received by a qualifying nonresident individual for employment duties in Minnesota is
excluded from gross income, subject to the limitations in this section.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

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

new text begin (b) "Employee" and "employer" have the meanings given in section 290.92, subdivision
1.
new text end

new text begin (c) "Employment duties" means professional or personal services performed for an
employer by an employee who is a qualifying nonresident individual.
new text end

new text begin (d) "Entertainer" has the meaning given in section 290.9201.
new text end

new text begin (e) "Qualifying nonresident individual" means an individual:
new text end

new text begin (1) whose residence, place of abode, and place customarily returned to at least once a
month is in another state;
new text end

new text begin (2) who is paid wages for employment duties, excluding duties performed as an
entertainer, in Minnesota on 30 or fewer days in the taxable year;
new text end

new text begin (3) who performed employment duties in more than one state during the calendar year;
and
new text end

new text begin (4) whose state of residence provides a substantially similar exclusion or does not impose
an individual income tax, or whose income is exempt from taxation in Minnesota under the
United States Constitution, or the Internal Revenue Code.
new text end

new text begin (f) "Time and attendance system" means a system through which an employee is required,
on a contemporaneous basis, to record the employee's work location for every day worked
outside the state where the employee's employment duties are primarily performed and is
designed to allow the employer to allocate the employee's compensation for income tax
purposes among all states in which the employee performs employment duties for the
employer.
new text end

new text begin Subd. 3. new text end

new text begin Withholding exemption; limitation. new text end

new text begin (a) Wages paid to a qualifying nonresident
individual are exempt from the withholding requirements under section 290.92, and the
filing requirements under section 289A.09, subject to the limitations of paragraph (b).
new text end

new text begin (b) If during the taxable year, the number of days an employee spends performing
employment duties in Minnesota exceeds the 30-day threshold under subdivision 1, the
withholding requirements under section 290.92, and the filing requirements under section
289A.09, apply for every day in that calendar year, including the first 30 days, on which
the employee performs employment duties in Minnesota.
new text end

new text begin Subd. 4. new text end

new text begin Employers; application of penalties. new text end

new text begin The commissioner shall not apply
penalties or interest otherwise applicable under chapter 289A for failing to deduct and
withhold income taxes as required under section 290.92, if when determining whether
withholding was required, the employer met either of the following conditions:
new text end

new text begin (1) the employer at its sole discretion maintains a time and attendance system and relied
on data from that system; or
new text end

new text begin (2) if the employer does not maintain a time and attendance system, and the employer
relies on either:
new text end

new text begin (i) the employer's own records maintained in the regular course of business of the
employee's location; or
new text end

new text begin (ii) the employee's reasonable determination of the time the employee expected to spend
performing employment duties in Minnesota, the employer has no actual knowledge of
fraud by employee in making the determination, and the employer and the employee did
not collude to evade taxation in making the determination.
new text end

new text begin Subd. 5. new text end

new text begin Timing of employment duties performed. new text end

new text begin For the purposes of this section,
an employee shall be considered to be performing employment duties within Minnesota for
a day if the employee performs more of the employee's employment duties in Minnesota
than in any other state during that day. Any portion of the day during which the employee
is in transit must not be considered in determining the location of an employee's performance
of employment duties.
new text end

new text begin Subd. 6. new text end

new text begin Severability. new text end

new text begin If any provision of this section or the application of a provision
of this section to any person or circumstance is held to be unconstitutional, then all other
provisions of this section shall remain valid and any rights, remedies, and privileges that
have been otherwise accrued by this section shall remain in effect, and may be proceeded
with and concluded under the provisions of this chapter or other applicable law.
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. 40.

Minnesota Statutes 2022, section 290.091, subdivision 2, as amended by Laws
2023, chapter 1, section 18, is amended to read:

Subd. 2.

Definitions.

For purposes of the tax imposed by this section, the following
terms have the meanings given.

(a) "Alternative minimum taxable income" means the sum of the following for the taxable
year:

(1) the taxpayer's federal alternative minimum taxable income as defined in section
55(b)(1)(D) of the Internal Revenue Code;

(2) the taxpayer's itemized deductions allowed in computing federal alternative minimum
taxable income, but excluding:

(i) the charitable contribution deduction under section 170 of the Internal Revenue Code;

(ii) the medical expense deduction;

(iii) the casualty, theft, and disaster loss deduction; and

(iv) the impairment-related work expenses of a person with a disability;

(3) for depletion allowances computed under section 613A(c) of the Internal Revenue
Code, with respect to each property (as defined in section 614 of the Internal Revenue Code),
to the extent not included in federal alternative minimum taxable income, the excess of the
deduction for depletion allowable under section 611 of the Internal Revenue Code for the
taxable year over the adjusted basis of the property at the end of the taxable year (determined
without regard to the depletion deduction for the taxable year);

(4) to the extent not included in federal alternative minimum taxable income, the amount
of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal Revenue
Code determined without regard to subparagraph (E);

(5) to the extent not included in federal alternative minimum taxable income, the amount
of interest income as provided by section 290.0131, subdivision 2;

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

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

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

less the sum of the amounts determined under the following:

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

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

(iii) the amount of investment interest paid or accrued within the taxable year on
indebtedness to the extent that the amount does not exceed net investment income, as defined
in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts deducted
in computing federal adjusted gross income;

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

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

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

In the case of an estate or trust, alternative minimum taxable income must be computed
as provided in section 59(c) of the Internal Revenue Code, except alternative minimum
taxable income must be increased by the addition in section 290.0131, subdivision 16.

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

(c) "Net minimum tax" means the minimum tax imposed by this section.

(d) "Regular tax" means the tax that would be imposed under this chapter (without regard
to this section and section 290.032), reduced by the sum of the nonrefundable credits allowed
under this chapter.

(e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable income
after subtracting the exemption amount determined under subdivision 3.

new text begin EFFECTIVE DATE. new text end

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

Sec. 41.

Minnesota Statutes 2022, section 290.17, subdivision 4, is amended to read:

Subd. 4.

Unitary business principle.

(a) If a trade or business conducted wholly within
this state or partly within and partly without this state is part of a unitary business, the entire
new text begin worldwide new text end income of the unitary business is subject to apportionment pursuant to section
290.191. Notwithstanding subdivision 2, paragraph (c), none of the income of a unitary
business is considered to be derived from any particular source and none may be allocated
to a particular place except as provided by the applicable apportionment formula. The
provisions of this subdivision do not apply to business income subject to subdivision 5,
income of an insurance company, or income of an investment company determined under
section 290.36.

(b) The term "unitary business" means business activities or operations which result in
a flow of value between them. The term may be applied within a single legal entity or
between multiple entities and without regard to whether each entity is a sole proprietorship,
a corporation, a partnership or a trust.

(c) Unity is presumed whenever there is unity of ownership, operation, and use, evidenced
by centralized management or executive force, centralized purchasing, advertising,
accounting, or other controlled interaction, but the absence of these centralized activities
will not necessarily evidence a nonunitary business. Unity is also presumed when business
activities or operations are of mutual benefit, dependent upon or contributory to one another,
either individually or as a group.

(d) Where a business operation conducted in Minnesota is owned by a business entity
that carries on business activity outside the state different in kind from that conducted within
this state, and the other business is conducted entirely outside the state, it is presumed that
the two business operations are unitary in nature, interrelated, connected, and interdependent
unless it can be shown to the contrary.

(e) Unity of ownership does not exist when two or more corporations are involved unless
more than 50 percent of the voting stock of each corporation is directly or indirectly owned
by a common owner or by common owners, either corporate or noncorporate, or by one or
more of the member corporations of the group. For this purpose, the term "voting stock"
shall include membership interests of mutual insurance holding companies formed under
section 66A.40.

deleted text begin (f) The net income and apportionment factors under section 290.191 or 290.20 of foreign
corporations and other foreign entities, but excluding a disqualified captive insurance
company, which are part of a unitary business shall not be included in the net income or
the apportionment factors of the unitary business; except that the income and apportionment
factors of a foreign entity, other than an entity treated as a C corporation for federal income
tax purposes, that are included in the federal taxable income, as defined in section 63 of the
Internal Revenue Code as amended through the date named in section 290.01, subdivision
19, of a domestic corporation, domestic entity, or individual must be included in determining
net income and the factors to be used in the apportionment of net income pursuant to section
290.191 or 290.20. A foreign corporation or other foreign entity which is not included on
a combined report and which is required to file a return under this chapter shall file on a
separate return basis.
deleted text end

deleted text begin (g) deleted text end new text begin (f) new text end For purposes of determining the net income of a unitary business and the factors
to be used in the apportionment of net income pursuant to section 290.191 or 290.20, there
must be included deleted text begin only deleted text end the income and apportionment factors of domestic new text begin and foreign new text end
corporations or other domestic new text begin and foreign new text end entities that are determined to be part of the
unitary business pursuant to this subdivision deleted text begin , notwithstanding that foreign corporations or
other foreign entities might be included in the unitary business; except that the income and
apportionment factors of a foreign entity, other than an entity treated as a C corporation for
federal income tax purposes, that is included in the federal taxable income, as defined in
section 63 of the Internal Revenue Code as amended through the date named in section
290.01, subdivision 19, of a domestic corporation, domestic entity, or individual must be
included in determining net income and the factors to be used in the apportionment of net
income pursuant to section 290.191 or 290.20 deleted text end new text begin . For foreign corporations and other foreign
entities not subject to a federal income tax filing requirement under United States Code,
title 26, subtitle A, net income must be determined as required under section 290.01,
subdivision 19 new text end .

deleted text begin (h) deleted text end new text begin (g) new text end Each corporation or other entity, except a sole proprietorship, that is part of a
unitary business must file combined reports as the commissioner determines. On the reports,
all intercompany transactions between entities included pursuant to paragraph deleted text begin (g) deleted text end new text begin (f) new text end must
be eliminated and the entire net income of the unitary business determined in accordance
with this subdivision is apportioned among the entities by using each entity's Minnesota
factors for apportionment purposes in the numerators of the apportionment formula and the
total factors for apportionment purposes of all entities included pursuant to paragraph deleted text begin (g) deleted text end new text begin
(f) new text end in the denominators of the apportionment formula. Except as otherwise provided by
paragraph (f), all sales of the unitary business made within this state pursuant to section
290.191 or 290.20 must be included on the combined report of a corporation or other entity
that is a member of the unitary business and is subject to the jurisdiction of this state to
impose tax under this chapter.

deleted text begin (i) deleted text end new text begin (h) new text end If a corporation has been divested from a unitary business and is included in a
combined report for a fractional part of the common accounting period of the combined
report:

(1) its income includable in the combined report is its income incurred for that part of
the year determined by proration or separate accounting; and

(2) its sales, property, and payroll included in the apportionment formula must be prorated
or accounted for separately.

deleted text begin (j) deleted text end new text begin (i) new text end For purposes of this subdivision, "insurance company" means an insurance
company, as defined in section 290.01, subdivision 5b, that is not a disqualified captive
insurance company.

new text begin EFFECTIVE DATE. new text end

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

Sec. 42.

Minnesota Statutes 2022, section 290.17, is amended by adding a subdivision to
read:

new text begin Subd. 4a. new text end

new text begin Foreign corporations and other foreign entities. new text end

new text begin (a) For purposes of imposing
a tax under this chapter, the federal taxable income of a foreign corporation or other foreign
entity must be computed as follows:
new text end

new text begin (1) a profit and loss statement must be prepared in the currency in which the books of
account of the foreign corporation or other foreign entity are regularly maintained;
new text end

new text begin (2) except as determined by the commissioner, adjustments must be made to the profit
and loss statement to conform the statement to the accounting principles generally accepted
in the United States for the preparation of those statements;
new text end

new text begin (3) adjustments must be made to the profit and loss statement to conform it to the tax
accounting standards required by the commissioner;
new text end

new text begin (4) unless otherwise authorized by the commissioner, the profit and loss statement of
each member of the combined group, and the apportionment factors related to the combined
group, whether domestic or foreign, must be converted into United States dollars; and
new text end

new text begin (5) income apportioned to this state must be expressed in United States dollars.
new text end

new text begin (b) Notwithstanding paragraph (a), if the commissioner determines that the information
required in the statements under that paragraph may only be obtained through a burdensome
effort and expense, the commissioner may allow reasonable approximations of the
information.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 43.

Minnesota Statutes 2022, section 297I.20, subdivision 4, is amended to read:

Subd. 4.

Film production credit.

(a) A taxpayer may claim a credit against the premiums
tax imposed under this chapter equal to the amount indicated on the credit certificate
statement issued to the company under section 116U.27. If the amount of the credit exceeds
the taxpayer's liability for tax under this chapter, the excess is a credit carryover to each of
the five succeeding taxable years. The entire amount of the excess unused credit for the
taxable year must be carried first to the earliest of the taxable years to which the credit may
be carried and then to each successive year to which the credit may be carried. This credit
does not affect the calculation of fire state aid under section 477B.03 and police state aid
under section 477C.03.

(b) This subdivision expires January 1, deleted text begin 2025 deleted text end new text begin 2033 new text end , for taxable years beginning after and
premiums received after December 31, deleted text begin 2024 deleted text end new text begin 2032 new text end .

new text begin EFFECTIVE DATE. new text end

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

Sec. 44.

Minnesota Statutes 2022, section 297I.20, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin Short line railroad infrastructure modernization credit. new text end

new text begin 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 290.0695,
provided that the taxpayer is not also claiming a credit under that section for the same
qualified railroad reconstruction or replacement expenditures. 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.
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, 2022.
new text end

Sec. 45.

Minnesota Statutes 2022, section 297I.20, is amended by adding a subdivision
to read:

new text begin Subd. 7. new text end

new text begin New markets tax credit. new text end

new text begin (a) A taxpayer may claim a credit against the premiums
tax imposed under this chapter equal to the amount calculated under section 116X.01,
subdivision 2. The credit is claimed beginning in the taxable year of the third credit allowance
date. If the amount of the credit 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. This credit does not affect the calculation of fire state aid under section
477B.03 and police state aid under section 477C.03.
new text end

new text begin (b) This subdivision expires January 1, 2032, for taxable years beginning after and
premiums received after December 31, 2031.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 46. new text begin 2023 ADVANCE PAYMENT AND ONE-TIME REFUNDABLE CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Credit allowed; eligibility. new text end

new text begin (a) An individual is allowed a credit against
the tax imposed under Minnesota Statutes, chapter 290. The credit equals $279 for an
individual who files an income tax return as a single person or as a married person who
files a married filing separate income tax return and $558 for all other income tax filers.
new text end

new text begin (b) For an individual, or a married couple filing a joint income tax return, with a
dependent, as defined in sections 151 and 152 of the Internal Revenue Code, the credit is
increased by $56 per dependent up to a maximum additional credit of $168.
new text end

new text begin (c) The maximum combined credit under this subdivision is $447 for an individual who
files an income tax return as a single person or as a married individual who files a married
filing separate income tax return and $726 for all other income tax filers.
new text end

new text begin (d) The credit is not available to an individual who:
new text end

new text begin (1) is not a resident of Minnesota, as defined in Minnesota Statutes, section 290.01,
subdivision 7, during any part of 2023;
new text end

new text begin (2) is a dependent, as defined in sections 151 and 152 of the Internal Revenue Code, for
2023; and
new text end

new text begin (3) has adjusted gross income, as defined in Minnesota Statutes, section 290.01,
subdivision 21a, for 2023 greater than:
new text end

new text begin (i) $75,000 for an individual who files an income tax return as a single person or as a
married person who files a married filing separate income tax return; and
new text end

new text begin (ii) $150,000 for all other income tax filers.
new text end

new text begin (e) For an individual who was a Minnesota resident for only part of 2023, or for a married
couple filing a joint return where one or both individuals were Minnesota residents for only
part of 2023, the credit equals the credit allowed under paragraph (a) times the percentage
calculated under Minnesota Statutes, section 290.06, subdivision 2c, paragraph (e).
new text end

new text begin (f) If the amount of the credit under this subdivision exceeds the individual's or the
married couple's liability for tax under Minnesota Statutes, chapter 290, the commissioner
shall refund the excess to the taxpayer.
new text end

new text begin (g) The credit applies to taxable years beginning after December 31, 2022, and before
January 1, 2024.
new text end

new text begin Subd. 2. new text end

new text begin Advance payment of credit. new text end

new text begin (a) The commissioner of revenue may issue a
taxpayer an advance payment of the credit provided in subdivision 1. To be eligible for an
advance payment, the commissioner must reasonably believe the taxpayer will be eligible
for the credit, and the taxpayer must have filed, before January 1, 2023:
new text end

new text begin (1) an individual income tax return for tax year 2021; or
new text end

new text begin (2) a property tax refund return under Minnesota Statutes, chapter 290A, based on
property taxes payable in 2022 or rent constituting property taxes paid in 2021.
new text end

new text begin (b) The commissioner may contract with a third party to implement all or part of the
payment process.
new text end

new text begin (c) The commissioner must not issue an advance payment to any taxpayer who:
new text end

new text begin (1) was not a resident of Minnesota on December 31, 2021;
new text end

new text begin (2) was a dependent, as defined in sections 151 and 152 of the Internal Revenue Code,
for 2021;
new text end

new text begin (3) had adjusted gross income, as defined in Minnesota Statutes, section 290.01,
subdivision 21a, for 2021 greater than (i) $50,000 for an individual who filed an income
tax return as a single person or as a married individual who filed a married filing separate
income tax return, or (ii) $100,000 for all other income tax filers; or
new text end

new text begin (4) died before January 1, 2023.
new text end

new text begin (d) The advance payment under this section shall be paid by the commissioner of revenue
based on information available in the commissioner's records, and individuals are not
required to file a claim with the commissioner. The decision of the commissioner to not
make an advance payment to a taxpayer is not appealable.
new text end

new text begin (e) The commissioner of revenue must make a joint advance payment to individuals
who filed a joint income tax return for 2021. If individuals who receive a joint advance
payment do not file a joint tax return with each other for 2023, each spouse is deemed to
have received an advance payment equal to one-half of the joint payment.
new text end

new text begin Subd. 3. new text end

new text begin Payments to taxpayers who do not receive an advance payment. new text end

new text begin (a) A
taxpayer may claim any amount of unpaid credit on an individual income tax return for
2023 if the taxpayer was eligible for:
new text end

new text begin (1) the credit under subdivision 1 and did not receive an advance payment under
subdivision 2; or
new text end

new text begin (2) the additional credit under subdivision 1, paragraph (a), clause (2), and did not receive
an advance payment for the full amount of the credit.
new text end

new text begin (b) The credit allowed to a taxpayer under this subdivision is reduced by any advance
payment received under subdivision 2. The credit allowed for married taxpayers who file
a joint return in 2023 is reduced by any advance payment received under subdivision 2 by
either spouse.
new text end

new text begin (c) No credit under paragraph (a), clause (2), is allowed unless the TIN of the dependent,
as defined in section 7701(a)(41) of the Internal Revenue Code, is included on the tax return
that lists the individual as a dependent.
new text end

new text begin Subd. 4. new text end

new text begin Repayment of advance payment. new text end

new text begin (a) An individual or married couple who
receives an advance payment under subdivision 2 but who does not meet eligibility for the
credit under subdivision 1, paragraph (a), or does not meet eligibility for the amount of the
advance payment of the credit allowed under subdivision (1), paragraph (b), must repay the
amount of the overpayment to the commissioner of revenue. Repayment is due on April
15, 2024.
new text end

new text begin (b) All provisions not inconsistent with this section under Minnesota Statutes, chapters
270C and 289A, relating to collection, audit, assessment, refunds, penalty, interest,
enforcement, collection remedies, appeal, and administration of individual income tax apply
to this section.
new text end

new text begin (c) The commissioner may issue an order of assessment under Minnesota Statutes,
section 270C.33, to recover an advance payment made under subdivision 2 that is issued
to a person not eligible for the credit. The assessment must be made within the period for
assessing tax for the 2023 individual income tax under Minnesota Statutes, section 289A.38.
new text end

new text begin Subd. 5. new text end

new text begin Internal Revenue Code. new text end

new text begin References to the Internal Revenue Code in this
section are to the Internal Revenue Code of 1986, as amended, that is in effect under
Minnesota Statutes, section 290.01, for the taxable year to which the reference relates.
new text end

new text begin Subd. 6. new text end

new text begin Data classification. new text end

new text begin Data classified as nonpublic data or private data on
individuals, including return information, as defined in Minnesota Statutes, section 270B.01,
subdivision 3, may be shared or disclosed between the commissioner of revenue and any
third-party vendor contracted with under this section, to the extent necessary to administer
advance payments under this section.
new text end

new text begin Subd. 7. new text end

new text begin Advance payment not subject to set off. new text end

new text begin The commissioner of revenue must
not apply, and must not certify to another agency to apply, an advance payment to any
unpaid tax or nontax debt.
new text end

new text begin Subd. 8. new text end

new text begin Not income. new text end

new text begin (a) An advance payment or refund of a credit under this section
is not considered income in determining Minnesota income tax, Minnesota income tax
credits, the Minnesota property tax refund, or the Minnesota senior citizen property tax
deferral.
new text end

new text begin (b) Notwithstanding any law to the contrary, the advance payment or credit under this
section must not be considered income, assets, or personal property for purposes of
determining eligibility or recertifying eligibility for:
new text end

new text begin (1) child care assistance programs under Minnesota Statutes, chapter 119B;
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 and diversionary work program under
Minnesota Statutes, chapter 256J; and
new text end

new text begin (5) economic assistance programs under Minnesota Statutes, chapter 256P.
new text end

new text begin (c) The commissioner of human services must not consider an advance payment or credit
under this section as income or assets under Minnesota Statutes, section 256B.056,
subdivisions 1a, paragraph (a); 3; or 3c, or for persons with eligibility determined under
Minnesota Statutes, section 256B.057, subdivisions 3, 3a, or 3b.
new text end

new text begin Subd. 9. new text end

new text begin Procurement. new text end

new text begin The commissioner of revenue is exempt from the requirements
of Minnesota Statutes, section 16A.15, subdivision 3; 16B.97; and 16B.98, subdivisions 5,
7, and 8; and chapter 16C, and any other state procurement laws and procedures in
administering this section.
new text end

new text begin Subd. 10. new text end

new text begin Appropriation. new text end

new text begin The amount necessary to make the advance payments and
refunds payable under this section is appropriated to the commissioner of revenue from the
general fund.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 47. new text begin HISTORIC STRUCTURE REHABILITATION CREDIT; SPECIAL
PROVISION.
new text end

new text begin For the purposes of the credit under Minnesota Statutes, section 290.0681, projects that
have started rehabilitation work after June 30, 2022, and before July 1, 2023, that otherwise
meet all other requirements of Minnesota Statutes, section 290.0681, subdivision 3, may
be eligible for the credit if the application is received within 60 days of July 1, 2023.
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. 48. new text begin REVIVAL AND REENACTMENT OF EXPIRED PROVISIONS.
new text end

new text begin (a) The expired provisions of Minnesota Statutes, section 116J.8737, subdivisions 1 to
9, 11, and 12, as amended by Laws 2021, First Special Session chapter 14, article 1, sections
1 and 2, and sections 7 and 8 of this act, are revived and reenacted.
new text end

new text begin (b) The expired provisions of Minnesota Statutes, section 290.0692, are revived and
reenacted.
new text end

new text begin (c) The expired provisions of Minnesota Statutes, section 290.0681, subdivisions 1 to
9, as amended by sections 29 and 30, are revived and reenacted.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 49. new text begin SUBTRACTION; CERTAIN UNEMPLOYMENT COMPENSATION.
new text end

new text begin (a) 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 for this
section.
new text end

new text begin (b) Unemployment compensation received by individuals in taxable years beginning
after December 31, 2020, and before January 1, 2022, as a result of the decision issued by
the Minnesota Court of Appeals, 956 N.W. 2d 1, filed February 22, 2021, is a subtraction.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2020, and before January 1, 2022.
new text end

Sec. 50. new text begin REPEALER; REPEAL OF EXPIRATION AND REVIVAL OF EXPIRED
PROVISIONS.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2022, section 290.0681, subdivision 10, new text end new text begin is repealed.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2022, section 41B.0391, subdivision 7, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective the day following final enactment and
applies to applications for allocation certificates submitted after June 30, 2023. Paragraph
(b) is effective the day following final enactment.
new text end

ARTICLE 2

FEDERAL CONFORMITY

Section 1.

Minnesota Statutes 2022, section 289A.02, subdivision 7, as amended by Laws
2023, chapter 1, section 1, is amended to read:

Subd. 7.

Internal Revenue Code.

Unless specifically defined otherwise, "Internal
Revenue Code" means the Internal Revenue Code of 1986, as amended through deleted text begin December
15, 2022 deleted text end new text begin March 1, 2023 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment, except
the changes incorporated by federal changes are effective retroactively at the same time the
changes were effective for federal purposes.
new text end

Sec. 2.

Minnesota Statutes 2022, section 290.01, subdivision 19, as amended by Laws
2023, chapter 1, section 4, 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 deleted text begin December 15, 2022 deleted text end new text begin March
1, 2023 new text end , 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment, except
the changes incorporated by federal changes are effective retroactively at the same time the
changes were effective for federal purposes.
new text end

Sec. 3.

Minnesota Statutes 2022, section 290.01, subdivision 31, as amended by Laws
2023, chapter 1, section 5, is amended to read:

Subd. 31.

Internal Revenue Code.

Unless specifically defined otherwise, "Internal
Revenue Code" means the Internal Revenue Code of 1986, as amended through deleted text begin December
15, 2022 deleted text end new text begin March 1, 2023 new text end . Internal Revenue Code also includes any uncodified provision in
federal law that relates to provisions of the Internal Revenue Code that are incorporated
into Minnesota law.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment, except
the changes incorporated by federal changes are effective retroactively at the same time the
changes were effective for federal purposes.
new text end

Sec. 4.

Minnesota Statutes 2022, section 290.06, subdivision 2c, as amended by Laws
2023, chapter 1, section 15, is amended to read:

Subd. 2c.

Schedules of rates for individuals, estates, and trusts.

(a) The income taxes
imposed by this chapter upon married individuals filing joint returns and surviving spouses
as defined in section 2(a) of the Internal Revenue Code must be computed by applying to
their taxable net income the following schedule of rates:

(1) On the first $38,770, 5.35 percent;

(2) On all over $38,770, but not over $154,020, 6.8 percent;

(3) On all over $154,020, but not over $269,010, 7.85 percent;

(4) On all over $269,010, 9.85 percent.

Married individuals filing separate returns, estates, and trusts must compute their income
tax by applying the above rates to their taxable income, except that the income brackets
will be one-half of the above amounts after the adjustment required in subdivision 2d.

(b) The income taxes imposed by this chapter upon unmarried individuals must be
computed by applying to taxable net income the following schedule of rates:

(1) On the first $26,520, 5.35 percent;

(2) On all over $26,520, but not over $87,110, 6.8 percent;

(3) On all over $87,110, but not over $161,720, 7.85 percent;

(4) On all over $161,720, 9.85 percent.

(c) The income taxes imposed by this chapter upon unmarried individuals qualifying as
a head of household as defined in section 2(b) of the Internal Revenue Code must be
computed by applying to taxable net income the following schedule of rates:

(1) On the first $32,650, 5.35 percent;

(2) On all over $32,650, but not over $131,190, 6.8 percent;

(3) On all over $131,190, but not over $214,980, 7.85 percent;

(4) On all over $214,980, 9.85 percent.

(d) In lieu of a tax computed according to the rates set forth in this subdivision, the tax
of any individual taxpayer whose taxable net income for the taxable year is less than an
amount determined by the commissioner must be computed in accordance with tables
prepared and issued by the commissioner of revenue based on income brackets of not more
than $100. The amount of tax for each bracket shall be computed at the rates set forth in
this subdivision, provided that the commissioner may disregard a fractional part of a dollar
unless it amounts to 50 cents or more, in which case it may be increased to $1.

(e) An individual who is not a Minnesota resident for the entire year must compute the
individual's Minnesota income tax as provided in this subdivision. After the application of
the nonrefundable credits provided in this chapter, the tax liability must then be multiplied
by a fraction in which:

(1) the numerator is the individual's Minnesota source federal adjusted gross income as
defined in section 62 of the Internal Revenue Code and increased by:

(i) the additions required under sections 290.0131, subdivisions 2, 6, 8 to 10, 16, deleted text begin and deleted text end
17, new text begin 19, and 20, new text end and 290.0137, paragraph (a); and reduced by

(ii) the Minnesota assignable portion of the subtraction for United States government
interest under section 290.0132, subdivision 2, the subtractions under sections 290.0132,
subdivisions 9, 10, 14, 15, 17, 18, 27, deleted text begin and deleted text end 31, new text begin and 32, new text end and 290.0137, paragraph (c), after
applying the allocation and assignability provisions of section 290.081, clause (a), or 290.17;
and

(2) the denominator is the individual's federal adjusted gross income as defined in section
62 of the Internal Revenue Code, increased by:

(i) the additions required under sections 290.0131, subdivisions 2, 6, 8 to 10, 16, deleted text begin and deleted text end
17, new text begin 19, and 20, new text end and 290.0137, paragraph (a); and reduced by

(ii) the subtractions under sections 290.0132, subdivisions 2, 9, 10, 14, 15, 17, 18, 27,
deleted text begin and deleted text end 31, new text begin and 32, new text end and 290.0137, paragraph (c).

(f) If an individual who is not a Minnesota resident for the entire year is a qualifying
owner of a qualifying entity that elects to pay tax as provided in section 289A.08, subdivision
7a, paragraph (b), the individual must compute the individual's Minnesota income tax as
provided in paragraph (e), and also must include, to the extent attributed to the electing
qualifying entity:

(1) in paragraph (e), clause (1), item (i), and paragraph (e), clause (2), item (i), the
addition under section 290.0131, subdivision 5; and

(2) in paragraph (e), clause (1), item (ii), and paragraph (e), clause (2), item (ii), the
subtraction under section 290.0132, subdivision 3.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2018.
new text end

Sec. 5.

Minnesota Statutes 2022, section 290A.03, subdivision 15, as amended by Laws
2023, chapter 1, section 20, is amended to read:

Subd. 15.

Internal Revenue Code.

"Internal Revenue Code" means the Internal Revenue
Code of 1986, as amended through deleted text begin December 15, 2022 deleted text end new text begin March 1, 2023 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with refunds based on rent
paid in 2023 and property taxes payable in 2024.
new text end

Sec. 6.

Minnesota Statutes 2022, section 291.005, subdivision 1, as amended by Laws
2023, chapter 1, section 21, is amended to read:

Subdivision 1.

Scope.

Unless the context otherwise clearly requires, the following terms
used in this chapter shall have the following meanings:

(1) "Commissioner" means the commissioner of revenue or any person to whom the
commissioner has delegated functions under this chapter.

(2) "Federal gross estate" means the gross estate of a decedent as required to be valued
and otherwise determined for federal estate tax purposes under the Internal Revenue Code,
increased by the value of any property in which the decedent had a qualifying income interest
for life and for which an election was made under section 291.03, subdivision 1d, for
Minnesota estate tax purposes, but was not made for federal estate tax purposes.

(3) "Internal Revenue Code" means the United States Internal Revenue Code of 1986,
as amended through deleted text begin December 15, 2022 deleted text end new text begin March 1, 2023 new text end .

(4) "Minnesota gross estate" means the federal gross estate of a decedent after (a)
excluding therefrom any property included in the estate which has its situs outside Minnesota,
and (b) including any property omitted from the federal gross estate which is includable in
the estate, has its situs in Minnesota, and was not disclosed to federal taxing authorities.

(5) "Nonresident decedent" means an individual whose domicile at the time of death
was not in Minnesota.

(6) "Personal representative" means the executor, administrator or other person appointed
by the court to administer and dispose of the property of the decedent. If there is no executor,
administrator or other person appointed, qualified, and acting within this state, then any
person in actual or constructive possession of any property having a situs in this state which
is included in the federal gross estate of the decedent shall be deemed to be a personal
representative to the extent of the property and the Minnesota estate tax due with respect
to the property.

(7) "Resident decedent" means an individual whose domicile at the time of death was
in Minnesota. The provisions of section 290.01, subdivision 7, paragraphs (c) and (d), apply
to determinations of domicile under this chapter.

(8) "Situs of property" means, with respect to:

(i) real property, the state or country in which it is located;

(ii) tangible personal property, the state or country in which it was normally kept or
located at the time of the decedent's death or for a gift of tangible personal property within
three years of death, the state or country in which it was normally kept or located when the
gift was executed;

(iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue
Code, owned by a nonresident decedent and that is normally kept or located in this state
because it is on loan to an organization, qualifying as exempt from taxation under section
501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is
deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and

(iv) intangible personal property, the state or country in which the decedent was domiciled
at death or for a gift of intangible personal property within three years of death, the state or
country in which the decedent was domiciled when the gift was executed.

For a nonresident decedent with an ownership interest in a pass-through entity with
assets that include real or tangible personal property, situs of the real or tangible personal
property, including qualified works of art, is determined as if the pass-through entity does
not exist and the real or tangible personal property is personally owned by the decedent. If
the pass-through entity is owned by a person or persons in addition to the decedent, ownership
of the property is attributed to the decedent in proportion to the decedent's capital ownership
share of the pass-through entity.

(9) "Pass-through entity" includes the following:

(i) an entity electing S corporation status under section 1362 of the Internal Revenue
Code;

(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;

(iii) a single-member limited liability company or similar entity, regardless of whether
it is taxed as an association or is disregarded for federal income tax purposes under Code
of Federal Regulations, title 26, section 301.7701-3; or

(iv) a trust to the extent the property is includable in the decedent's federal gross estate;
but excludes

(v) an entity whose ownership interest securities are traded on an exchange regulated
by the Securities and Exchange Commission as a national securities exchange under section
6 of the Securities Exchange Act, United States Code, title 15, section 78f.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment, except
the changes incorporated by federal changes are effective retroactively at the same time the
changes were effective for federal purposes.
new text end

Sec. 7.

Laws 2023, chapter 1, section 15, the effective date, is amended to read:

EFFECTIVE DATE.

This section is effective new text begin retroactively new text end for taxable years beginning
after December 31, deleted text begin 2022 deleted text end new text begin 2019 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. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2022, section 290.0132, subdivision 33, new text end new text begin as added by Laws 2023,
chapter 1, section 12, is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 3

PROPERTY TAX

Section 1.

Minnesota Statutes 2022, section 103D.905, subdivision 3, is amended to read:

Subd. 3.

General fund.

A general fund, consisting of an ad valorem tax levy, may not
exceed deleted text begin 0.048 deleted text end new text begin 0.096 new text end percent of estimated market value, or deleted text begin $250,000 deleted text end new text begin $500,000 new text end , whichever
is less. The money in the fund shall be used for general administrative expenses and for the
construction or implementation and maintenance of projects of common benefit to the
watershed district. The managers may make an annual levy for the general fund as provided
in section 103D.911. In addition to the annual general levy, the managers may annually
levy a tax not to exceed 0.00798 percent of estimated market value for a period not to exceed
15 consecutive years to pay the cost attributable to the basic water management features of
projects initiated by petition of a political subdivision within the watershed district or by
petition of at least 50 resident owners whose property is within the watershed district.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2022, section 272.02, subdivision 24, is amended to read:

Subd. 24.

Solar energy generating systems.

Personal property consisting of solar energy
generating systems, as defined in section 272.0295, is exempt. If the real property upon
which a solar energy generating system is located is used primarily for solar energy
production subject to the production tax under section 272.0295, the real property shall be
classified as class 3a. If the real property upon which a solar energy generating system is
located is not used primarily for solar energy production subject to the production tax under
section 272.0295, the real property shall be classified without regard to the system. new text begin If real
property contains more than one solar energy generating system that cannot be combined
with the nameplate capacity of another solar energy generating system for the purposes of
the production tax under section 272.0295, but is in aggregate over one megawatt, then the
real property upon which the systems are located shall be classified as class 3a.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2024.
new text end

Sec. 3.

Minnesota Statutes 2022, section 272.02, subdivision 98, is amended to read:

Subd. 98.

Certain property owned by an Indian tribe.

(a) Property is exempt that:

(1) was classified as 3a under section 273.13, subdivision 24, for taxes payable in 2013;

(2) is located in a city of the first class with a population greater than 300,000 as of the
2010 federal census;

(3) was on January 2, 2012, 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

(4) is used exclusively for tribal purposes or institutions of purely public charity as
defined in subdivision 7.

(b) For purposes of this subdivision, a "tribal purpose" means a public purpose as defined
in subdivision 8 and includes noncommercial tribal government activities. Property that
qualifies for the exemption under this subdivision is limited to no more than two contiguous
parcels and structures that do not exceed in the aggregate 20,000 square feet. Property
acquired for single-family housing, market-rate apartments, agriculture, or forestry does
not qualify for this exemption. deleted text begin The exemption created by deleted text end This subdivision expires with
taxes payable in deleted text begin 2024 deleted text end new text begin 2034 new text end .

new text begin (c) Property exempt under this section is exempt from the requirements of section
272.025. Upon the written request of an assessor, all books and records relating to the
ownership or use of the property which are reasonably necessary to verify that the property
qualifies for exemption shall be made available to the assessor.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property taxes payable in 2023 and
thereafter.
new text end

Sec. 4.

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

new text begin Subd. 105. new text end

new text begin Elderly living facility. new text end

new text begin An elderly living facility is exempt from taxation if
it meets all of the following requirements:
new text end

new text begin (1) the facility is located in a city of the first class with a population of fewer than
110,000;
new text end

new text begin (2) the facility is owned and operated by a nonprofit corporation organized under chapter
317A;
new text end

new text begin (3) construction of the facility was completed between January 1, 1963, and January 1,
1964;
new text end

new text begin (4) the facility is an assisted living facility licensed by the state of Minnesota;
new text end

new text begin (5) residents of the facility must be (i) at least 55 years of age, or (ii) disabled; and
new text end

new text begin (6) at least 30 percent of the units in the facility are occupied by persons whose annual
income does not exceed 50 percent of the median family income for the area.
new text end

new text begin For assessment year 2022 only, an exemption application under this section must be filed
with the county assessor by June 15, 2023.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with taxes payable in 2023.
new text end

Sec. 5.

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

new text begin Subd. 106. new text end

new text begin Energy storage systems. new text end

new text begin (a) Personal property consisting of an energy
storage system is exempt, provided that:
new text end

new text begin (1) the property is not located in an energy community, as defined in the Inflation
Redution Act of 2022, Public Law 117-169, section 13101; and
new text end

new text begin (2) the storage capacity of the system does not exceed 300 megawatt-hours.
new text end

new text begin (b) For the purposes of this subdivision, "energy storage system" has the meaning given
in section 216B.2422, subdivision 1, paragraph (f).
new text end

new text begin (c) A taxpayer requesting an exemption under this subdivision must file an application
with the commissioner of revenue. The commissioner shall prescribe the content, format,
and manner of the application pursuant to section 270C.30, except that a "law administered
by the commissioner" includes the property tax laws. In determining eligibility for the
exemption under this section, the commissioner of revenue may request information and
advice from the commissioner of commerce. On determining that property qualifies for
exemption, the commissioner of revenue shall issue an order exempting the property from
taxation. The commissioner of revenue shall develop an electronic means to notify interested
parties when the commissioner has issued an order exempting property from taxation under
this section. The energy storage system shall continue to be exempt from taxation as long
as the order issued by the commissioner of revenue remains in effect.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2024.
new text end

Sec. 6.

Minnesota Statutes 2022, section 272.025, subdivision 1, is amended to read:

Subdivision 1.

Statement of exemption.

(a) Except in the case of property owned by
the state of Minnesota or any political subdivision thereof, a taxpayer claiming an exemption
from taxation on property described in section 272.02 must file a statement of exemption
with the assessor of the assessment district in which the property is located. By January 2,
2018, and each third year thereafter, the commissioner of revenue shall publish on its website
a list of the exemptions for which a taxpayer claiming an exemption must file a statement
of exemption. The commissioner's requirement that a taxpayer file a statement of exemption
pursuant to this subdivision shall not be considered a rule and is not subject to the
Administrative Procedure Act, chapter 14.

(b) A taxpayer claiming an exemption from taxation on property described in section
272.02, deleted text begin subdivision deleted text end new text begin subdivisions new text end 10 new text begin and 106 new text end , must file a statement of exemption with the
commissioner of revenue, on or before February 15 of each year for which the taxpayer
claims an exemption.

(c) In case of sickness, absence or other disability or for good cause, the assessor or the
commissioner may extend the time for filing the statement of exemption for a period not to
exceed 60 days.

(d) The commissioner of revenue shall prescribe the content, format, and manner of the
statement of exemption pursuant to section 270C.30, except that a "law administered by
the commissioner" includes the property tax laws.

(e) If a statement is made by electronic means, the taxpayer's signature is defined pursuant
to section 270C.304, except that a "law administered by the commissioner" includes the
property tax laws.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2024.
new text end

Sec. 7.

Minnesota Statutes 2022, section 273.11, subdivision 12, is amended to read:

Subd. 12.

Community land trusts.

(a) A community land trust, as defined under chapter
462A, is (i) a community-based nonprofit corporation organized under chapter 317A, which
qualifies for tax exempt status under 501(c)(3), or (ii) a "city" as defined in section 462C.02,
subdivision 6, which has received funding from the Minnesota housing finance agency for
purposes of the community land trust program. The Minnesota Housing Finance Agency
shall set the criteria for community land trusts.

(b) Before the community land trust can rent or sell a unit to an applicant, the community
land trust shall verify to the satisfaction of the administering agency or the city that the
family income of each person or family applying for a unit in the community land trust
building is within the income criteria provided in section 462A.30, subdivision 9. The
administering agency or the city shall verify to the satisfaction of the county assessor that
the occupant meets the income criteria under section 462A.30, subdivision 9. The property
tax benefits under paragraph (c) shall be granted only to property owned or rented by persons
or families within the qualifying income limits. The family income criteria and verification
is only necessary at the time of initial occupancy in the property.

(c) A unit which is owned by the occupant and used as a homestead by the occupant
qualifies for homestead treatment as class 1a under section 273.13, subdivision 22 new text begin , new text end new text begin unless
the unit meets the requirements of section 273.13, subdivision 25, paragraph (e), clause (2),
in which case the unit shall be classified as 4d(2) new text end . A unit which is rented by the occupant
and used as a homestead by the occupant shall be class 4a or 4b property, under section
273.13, subdivision 25, whichever is applicable. Any remaining portion of the property not
used for residential purposes shall be classified by the assessor in the appropriate class based
upon the use of that portion of the property owned by the community land trust. The land
upon which the building is located shall be assessed at the same classification rate as the
units within the building, provided that if the building contains some units assessed as class
1a new text begin or class 4d(1) new text end and some units assessed as class 4a or 4b, the market value of the land
will be assessed in the same proportions as the value of the building.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2024.
new text end

Sec. 8.

Minnesota Statutes 2022, section 273.11, subdivision 23, is amended to read:

Subd. 23.

First tier valuation limit; agricultural homestead property.

(a) The
commissioner of revenue shall annually certify the first tier limit for agricultural homestead
property. For assessment year deleted text begin 2010 deleted text end new text begin 2024 new text end , the limit is deleted text begin $1,140,000 deleted text end new text begin $3,500,000 new text end . Beginning
with assessment year deleted text begin 2011 deleted text end new text begin 2025 new text end , the limit is the product of (i) the first tier limit for the
preceding assessment year, and (ii) the ratio of the statewide average taxable market value
of agricultural property per acre of deeded farm land in the preceding assessment year to
the statewide average taxable market value of agricultural property per acre of deeded farm
land for the second preceding assessment year. The limit shall be rounded to the nearest
$10,000.

(b) For the purposes of this subdivision, "agricultural property" means all class 2a
property under section 273.13, subdivision 23, except for property consisting of the house,
garage, and immediately surrounding one acre of land of an agricultural homestead.

(c) The commissioner shall certify the limit by January 2 of each assessment year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2024.
new text end

Sec. 9.

Minnesota Statutes 2022, section 273.111, is amended by adding a subdivision to
read:

new text begin Subd. 3b. new text end

new text begin Property no longer eligible for deferment. new text end

new text begin (a) Real estate that received the
tax deferment under this section for assessment year 2012 and would have continued to
qualify for tax deferment for assessment years from 2013 to 2023 but for an eminent domain
action that reduced the real estate to less than ten acres, shall reapply as provided in paragraph
(b) and, if determined eligible, shall qualify for the tax deferment under this section for
assessment year 2024 and thereafter until:
new text end

new text begin (1) the property no longer qualifies for classification as class 2a under section 273.13;
new text end

new text begin (2) the property is voluntarily withdrawn from the program; or
new text end

new text begin (3) the property is sold, transferred, or subdivided.
new text end

new text begin (b) Application for deferment under this subdivision shall be filed by May 1 of the year
prior to the year in which the taxes are payable. The application must be filed with the
assessor of the taxing district in which the real property is located on the form prescribed
by the commissioner of revenue. The assessor may request additional information necessary
to determine eligibility under this subdivision.
new text end

new text begin (c) Property assessed under this subdivision is subject to additional taxes, as provided
in subdivision 9, when the property:
new text end

new text begin (1) no longer qualifies for classification as class 2a under section 273.13;
new text end

new text begin (2) is voluntarily withdrawn from the program; or
new text end

new text begin (3) is sold, transferred, or subdivided.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 10.

Minnesota Statutes 2022, section 273.124, subdivision 6, is amended to read:

Subd. 6.

Leasehold cooperatives.

When one or more dwellings or one or more buildings
which each contain several dwelling units is owned by a nonprofit corporation subject to
the provisions of chapter 317A and qualifying under section 501(c)(3) or 501(c)(4) of the
Internal Revenue Code, or a limited partnership which corporation or partnership operates
the property in conjunction with a cooperative association, and has received public financing,
homestead treatment may be claimed by the cooperative association on behalf of the members
of the cooperative for each dwelling unit occupied by a member of the cooperative. The
cooperative association must provide the assessor with the Social Security numbers new text begin or
individual taxpayer identification numbers new text end of those members. To qualify for the treatment
provided by this subdivision, the following conditions must be met:

(a) the cooperative association must be organized under chapter 308A or 308B and all
voting members of the board of directors must be resident tenants of the cooperative and
must be elected by the resident tenants of the cooperative;

(b) the cooperative association must have a lease for occupancy of the property for a
term of at least 20 years, which permits the cooperative association, while not in default on
the lease, to participate materially in the management of the property, including material
participation in establishing budgets, setting rent levels, and hiring and supervising a
management agent;

(c) to the extent permitted under state or federal law, the cooperative association must
have a right under a written agreement with the owner to purchase the property if the owner
proposes to sell it; if the cooperative association does not purchase the property it is offered
for sale, the owner may not subsequently sell the property to another purchaser at a price
lower than the price at which it was offered for sale to the cooperative association unless
the cooperative association approves the sale;

(d) a minimum of 40 percent of the cooperative association's members must have incomes
at or less than 60 percent of area median gross income as determined by the United States
Secretary of Housing and Urban Development under section 142(d)(2)(B) of the Internal
Revenue Code. For purposes of this clause, "member income" means the income of a member
existing at the time the member acquires cooperative membership;

(e) if a limited partnership owns the property, it must include as the managing general
partner a nonprofit organization operating under the provisions of chapter 317A and
qualifying under section 501(c)(3) or 501(c)(4) of the Internal Revenue Code and the limited
partnership agreement must provide that the managing general partner have sufficient powers
so that it materially participates in the management and control of the limited partnership;

(f) prior to becoming a member of a leasehold cooperative described in this subdivision,
a person must have received notice that (1) describes leasehold cooperative property in plain
language, including but not limited to the effects of classification under this subdivision on
rents, property taxes and tax credits or refunds, and operating expenses, and (2) states that
copies of the articles of incorporation and bylaws of the cooperative association, the lease
between the owner and the cooperative association, a sample sublease between the
cooperative association and a tenant, and, if the owner is a partnership, a copy of the limited
partnership agreement, can be obtained upon written request at no charge from the owner,
and the owner must send or deliver the materials within seven days after receiving any
request;

(g) if a dwelling unit of a building was occupied on the 60th day prior to the date on
which the unit became leasehold cooperative property described in this subdivision, the
notice described in paragraph (f) must have been sent by first class mail to the occupant of
the unit at least 60 days prior to the date on which the unit became leasehold cooperative
property. For purposes of the notice under this paragraph, the copies of the documents
referred to in paragraph (f) may be in proposed version, provided that any subsequent
material alteration of those documents made after the occupant has requested a copy shall
be disclosed to any occupant who has requested a copy of the document. Copies of the
articles of incorporation and certificate of limited partnership shall be filed with the secretary
of state after the expiration of the 60-day period unless the change to leasehold cooperative
status does not proceed;

(h) the county attorney of the county in which the property is located must certify to the
assessor that the property meets the requirements of this subdivision;

(i) the public financing received must be from at least one of the following sources:

(1) tax increment financing proceeds used for the acquisition or rehabilitation of the
building or interest rate write-downs relating to the acquisition of the building;

(2) government issued bonds exempt from taxes under section 103 of the Internal Revenue
Code, the proceeds of which are used for the acquisition or rehabilitation of the building;

(3) programs under section 221(d)(3), 202, or 236, of Title II of the National Housing
Act;

(4) rental housing program funds under Section 8 of the United States Housing Act of
1937, as amended, or the market rate family graduated payment mortgage program funds
administered by the Minnesota Housing Finance Agency that are used for the acquisition
or rehabilitation of the building;

(5) low-income housing credit under section 42 of the Internal Revenue Code;

(6) public financing provided by a local government used for the acquisition or
rehabilitation of the building, including grants or loans from (i) federal community
development block grants; (ii) HOME block grants; or (iii) residential rental bonds issued
under chapter 474A; or

(7) other rental housing program funds provided by the Minnesota Housing Finance
Agency for the acquisition or rehabilitation of the building;

(j) at the time of the initial request for homestead classification or of any transfer of
ownership of the property, the governing body of the municipality in which the property is
located must hold a public hearing and make the following findings:

(1) that the granting of the homestead treatment of the apartment's units will facilitate
safe, clean, affordable housing for the cooperative members that would otherwise not be
available absent the homestead designation;

(2) that the owner has presented information satisfactory to the governing body showing
that the savings garnered from the homestead designation of the units will be used to reduce
tenant's rents or provide a level of furnishing or maintenance not possible absent the
designation; and

(3) that the requirements of paragraphs (b), (d), and (i) have been met.

Homestead treatment must be afforded to units occupied by members of the cooperative
association and the units must be assessed as provided in subdivision 3, provided that any
unit not so occupied shall be classified and assessed pursuant to the appropriate class. No
more than three acres of land may, for assessment purposes, be included with each dwelling
unit that qualifies for homestead treatment under this subdivision.

When dwelling units no longer qualify under this subdivision, the current owner must
notify the assessor within 60 days. Failure to notify the assessor within 60 days shall result
in the loss of benefits under this subdivision for taxes payable in the year that the failure is
discovered. For these purposes, "benefits under this subdivision" means the difference in
the net tax capacity of the units which no longer qualify as computed under this subdivision
and as computed under the otherwise applicable law, times the local tax rate applicable to
the building for that taxes payable year. Upon discovery of a failure to notify, the assessor
shall inform the auditor of the difference in net tax capacity for the building or buildings in
which units no longer qualify, and the auditor shall calculate the benefits under this
subdivision. Such amount, plus a penalty equal to 100 percent of that amount, shall then be
demanded of the building's owner. The property owner may appeal the county's determination
by serving copies of a petition for review with county officials as provided in section 278.01
and filing a proof of service as provided in section 278.01 with the Minnesota Tax Court
within 60 days of the date of the notice from the county. The appeal shall be governed by
the Tax Court procedures provided in chapter 271, for cases relating to the tax laws as
defined in section 271.01, subdivision 5; disregarding sections 273.125, subdivision 5, and
278.03, but including section 278.05, subdivision 2. If the amount of the benefits under this
subdivision and penalty are not paid within 60 days, and if no appeal has been filed, the
county auditor shall certify the amount of the benefit and penalty to the succeeding year's
tax list to be collected as part of the property taxes on the affected buildings.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for homestead applications
filed in 2023 and thereafter.
new text end

Sec. 11.

Minnesota Statutes 2022, section 273.124, subdivision 13, is amended to read:

Subd. 13.

Homestead application.

(a) A person who meets the homestead requirements
under subdivision 1 must file a homestead application with the county assessor to initially
obtain homestead classification.

(b) The commissioner shall prescribe the content, format, and manner of the homestead
application required to be filed under this chapter pursuant to section 270C.30. The
application must clearly inform the taxpayer that this application must be signed by all
owners who occupy the property or by the qualifying relative and returned to the county
assessor in order for the property to receive homestead treatment.

(c) Every property owner applying for homestead classification must furnish to the
county assessor the Social Security number new text begin or individual tax identification number new text end of each
occupant who is listed as an owner of the property on the deed of record, the name and
address of each owner who does not occupy the property, and the name and Social Security
number new text begin or individual tax identification number new text end of the spouse of each occupying owner. The
application must be signed by each owner who occupies the property and by each owner's
spouse who occupies the property, or, in the case of property that qualifies as a homestead
under subdivision 1, paragraph (c), by the qualifying relative.

If a property owner occupies a homestead, the property owner's spouse may not claim
another property as a homestead unless the property owner and the property owner's spouse
file with the assessor an affidavit or other proof required by the assessor stating that the
property qualifies as a homestead under subdivision 1, paragraph (e).

Owners or spouses occupying residences owned by their spouses and previously occupied
with the other spouse, either of whom fail to include the other spouse's name and Social
Security number new text begin or individual tax identification number new text end on the homestead application or
provide the affidavits or other proof requested, will be deemed to have elected to receive
only partial homestead treatment of their residence. The remainder of the residence will be
classified as nonhomestead residential. When an owner or spouse's name and Social Security
number new text begin or individual tax identification number new text end appear on homestead applications for two
separate residences and only one application is signed, the owner or spouse will be deemed
to have elected to homestead the residence for which the application was signed.

(d) If residential real estate is occupied and used for purposes of a homestead by a relative
of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in order for
the property to receive homestead status, a homestead application must be filed with the
assessor. The Social Security number new text begin or individual tax identification number new text end of each relative
occupying the property and the name and Social Security number new text begin or individual tax
identification number new text end of the spouse of a relative occupying the property shall be required
on the homestead application filed under this subdivision. If a different relative of the owner
subsequently occupies the property, the owner of the property must notify the assessor
within 30 days of the change in occupancy. The Social Security number new text begin or individual tax
identification number new text end of a relative occupying the property or the spouse of a relative
occupying the property is private data on individuals as defined by section 13.02, subdivision
12, but may be disclosed to the commissioner of revenue, or, for the purposes of proceeding
under the Revenue Recapture Act to recover personal property taxes owing, to the county
treasurer.

(e) The homestead application shall also notify the property owners that if the property
is granted homestead status for any assessment year, that same property shall remain
classified as homestead until the property is sold or transferred to another person, or the
owners, the spouse of the owner, or the relatives no longer use the property as their
homestead. Upon the sale or transfer of the homestead property, a certificate of value must
be timely filed with the county auditor as provided under section 272.115. Failure to notify
the assessor within 30 days that the property has been sold, transferred, or that the owner,
the spouse of the owner, or the relative is no longer occupying the property as a homestead,
shall result in the penalty provided under this subdivision and the property will lose its
current homestead status.

(f) If a homestead application has not been filed with the county by December 31, the
assessor shall classify the property as nonhomestead for the current assessment year for
taxes payable in the following year, provided that the owner may be entitled to receive the
homestead classification by proper application under section 375.192.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for applications for
homestead filed in 2023 and thereafter.
new text end

Sec. 12.

Minnesota Statutes 2022, section 273.124, subdivision 13a, is amended to read:

Subd. 13a.

Occupant list.

At the request of the commissioner, each county must give
the commissioner a list that includes the name and Social Security number new text begin or individual
taxpayer identification number new text end of each occupant of homestead property who is the property
owner, property owner's spouse, qualifying relative of a property owner, or a spouse of a
qualifying relative. The commissioner shall use the information provided on the lists as
appropriate under the law, including for the detection of improper claims by owners, or
relatives of owners, under chapter 290A.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for homestead data provided to the
commissioner in 2024 and thereafter.
new text end

Sec. 13.

Minnesota Statutes 2022, section 273.124, subdivision 13c, is amended to read:

Subd. 13c.

Property lists.

In addition to lists of homestead properties, the commissioner
may ask the counties to furnish lists of all properties and the record owners. The Social
Security numbers new text begin , individual taxpayer identification numbers, new text end and federal identification
numbers that are maintained by a county or city assessor for property tax administration
purposes, and that may appear on the lists retain their classification as private or nonpublic
data; but may be viewed, accessed, and used by the county auditor or treasurer of the same
county for the limited purpose of assisting the commissioner in the preparation of microdata
samples under section 270C.12. The commissioner shall use the information provided on
the lists as appropriate under the law, including for the detection of improper claims by
owners, or relatives of owners, under chapter 290A.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for homestead data provided to the
commissioner in 2024 and thereafter.
new text end

Sec. 14.

Minnesota Statutes 2022, section 273.124, subdivision 13d, is amended to read:

Subd. 13d.

Homestead data.

On or before April 30 each year beginning in 2007, each
county must provide the commissioner with the following data for each parcel of homestead
property by electronic means as defined in section 289A.02, subdivision 8:

(1) the property identification number assigned to the parcel for purposes of taxes payable
in the current year;

(2) the name and Social Security number new text begin or individual taxpayer identification number
new text end of each occupant of homestead property who is the property owner or qualifying relative
of a property owner, and the spouse of the property owner who occupies homestead property
or spouse of a qualifying relative of a property owner who occupies homestead property;

(3) the classification of the property under section 273.13 for taxes payable in the current
year and in the prior year;

(4) an indication of whether the property was classified as a homestead for taxes payable
in the current year because of occupancy by a relative of the owner or by a spouse of a
relative;

(5) the property taxes payable as defined in section 290A.03, subdivision 13, for the
current year and the prior year;

(6) the market value of improvements to the property first assessed for tax purposes for
taxes payable in the current year;

(7) the assessor's estimated market value assigned to the property for taxes payable in
the current year and the prior year;

(8) the taxable market value assigned to the property for taxes payable in the current
year and the prior year;

(9) whether there are delinquent property taxes owing on the homestead;

(10) the unique taxing district in which the property is located; and

(11) such other information as the commissioner decides is necessary.

The commissioner shall use the information provided on the lists as appropriate under
the law, including for the detection of improper claims by owners, or relatives of owners,
under chapter 290A.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for homestead data provided to the
commissioner in 2024 and thereafter.
new text end

Sec. 15.

Minnesota Statutes 2022, section 273.124, subdivision 14, is amended to read:

Subd. 14.

Agricultural homesteads; special provisions.

(a) Real estate of less than ten
acres that is the homestead of its owner must be classified as class 2a under section 273.13,
subdivision 23, paragraph (a), if:

(1) the parcel on which the house is located is contiguous on at least two sides to (i)
agricultural land, (ii) land owned or administered by the United States Fish and Wildlife
Service, or (iii) land administered by the Department of Natural Resources on which in lieu
taxes are paid under sections 477A.11 to 477A.14 or section 477A.17;

(2) its owner also owns a noncontiguous parcel of agricultural land that is at least 20
acres;

(3) the noncontiguous land is located not farther than four townships or cities, or a
combination of townships or cities from the homestead; and

(4) the agricultural use value of the noncontiguous land and farm buildings is equal to
at least 50 percent of the market value of the house, garage, and one acre of land.

Homesteads initially classified as class 2a under the provisions of this paragraph shall
remain classified as class 2a, irrespective of subsequent changes in the use of adjoining
properties, as long as the homestead remains under the same ownership, the owner owns a
noncontiguous parcel of agricultural land that is at least 20 acres, and the agricultural use
value qualifies under clause (4). Homestead classification under this paragraph is limited
to property that qualified under this paragraph for the 1998 assessment.

(b)(i) Agricultural property shall be classified as the owner's homestead, to the same
extent as other agricultural homestead property, if all of the following criteria are met:

(1) the agricultural property consists of at least 40 acres including undivided government
lots and correctional 40's;

(2) the owner, the owner's spouse, or a grandchild, child, sibling, or parent of the owner
or of the owner's spouse, is actively farming the agricultural property, either on the person's
own behalf as an individual or on behalf of a partnership operating a family farm, family
farm corporation, joint family farm venture, or limited liability company of which the person
is a partner, shareholder, or member;

(3) both the owner of the agricultural property and the person who is actively farming
the agricultural property under clause (2), are Minnesota residents;

(4) neither the owner nor the spouse of the owner claims another agricultural homestead
in Minnesota; and

(5) neither the owner nor the person actively farming the agricultural property lives
farther than four townships or cities, or a combination of four townships or cities, from the
agricultural property, except that if the owner or the owner's spouse is required to live in
employer-provided housing, the owner or owner's spouse, whichever is actively farming
the agricultural property, may live more than four townships or cities, or combination of
four townships or cities from the agricultural property.

The relationship under this paragraph may be either by blood or marriage.

(ii) Property containing the residence of an owner who owns qualified property under
clause (i) shall be classified as part of the owner's agricultural homestead, if that property
is also used for noncommercial storage or drying of agricultural crops.

(iii) As used in this paragraph, "agricultural property" means class 2a property and any
class 2b property that is contiguous to and under the same ownership as the class 2a property.

(c) Noncontiguous land shall be included as part of a homestead under section 273.13,
subdivision 23, paragraph (a), only if the homestead is classified as class 2a and the detached
land is located in the same township or city, or not farther than four townships or cities or
combination thereof from the homestead. Any taxpayer of these noncontiguous lands must
notify the county assessor that the noncontiguous land is part of the taxpayer's homestead,
and, if the homestead is located in another county, the taxpayer must also notify the assessor
of the other county.

(d) Agricultural land used for purposes of a homestead and actively farmed by a person
holding a vested remainder interest in it must be classified as a homestead under section
273.13, subdivision 23, paragraph (a). If agricultural land is classified class 2a, any other
dwellings on the land used for purposes of a homestead by persons holding vested remainder
interests who are actively engaged in farming the property, and up to one acre of the land
surrounding each homestead and reasonably necessary for the use of the dwelling as a home,
must also be assessed class 2a.

(e) Agricultural land and buildings that were class 2a homestead property under section
273.13, subdivision 23, paragraph (a), for the 1997 assessment shall remain classified as
agricultural homesteads for subsequent assessments if:

(1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of the April 1997 floods;

(2) the property is located in the county of Polk, Clay, Kittson, Marshall, Norman, or
Wilkin;

(3) the agricultural land and buildings remain under the same ownership for the current
assessment year as existed for the 1997 assessment year and continue to be used for
agricultural purposes;

(4) the dwelling occupied by the owner is located in Minnesota and is within 30 miles
of one of the parcels of agricultural land that is owned by the taxpayer; and

(5) the owner notifies the county assessor that the relocation was due to the 1997 floods,
and the owner furnishes the assessor any information deemed necessary by the assessor in
verifying the change in dwelling. Further notifications to the assessor are not required if the
property continues to meet all the requirements in this paragraph and any dwellings on the
agricultural land remain uninhabited.

(f) Agricultural land and buildings that were class 2a homestead property under section
273.13, subdivision 23, paragraph (a), for the 1998 assessment shall remain classified
agricultural homesteads for subsequent assessments if:

(1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of damage caused by a March 29, 1998, tornado;

(2) the property is located in the county of Blue Earth, Brown, Cottonwood, Le Sueur,
Nicollet, Nobles, or Rice;

(3) the agricultural land and buildings remain under the same ownership for the current
assessment year as existed for the 1998 assessment year;

(4) the dwelling occupied by the owner is located in this state and is within 50 miles of
one of the parcels of agricultural land that is owned by the taxpayer; and

(5) the owner notifies the county assessor that the relocation was due to a March 29,
1998, tornado, and the owner furnishes the assessor any information deemed necessary by
the assessor in verifying the change in homestead dwelling. For taxes payable in 1999, the
owner must notify the assessor by December 1, 1998. Further notifications to the assessor
are not required if the property continues to meet all the requirements in this paragraph and
any dwellings on the agricultural land remain uninhabited.

(g) Agricultural property of a family farm corporation, joint family farm venture, family
farm limited liability company, or partnership operating a family farm as described under
subdivision 8 shall be classified homestead, to the same extent as other agricultural homestead
property, if all of the following criteria are met:

(1) the property consists of at least 40 acres including undivided government lots and
correctional 40's;

(2) a shareholder, member, or partner of that entity is actively farming the agricultural
property;

(3) that shareholder, member, or partner who is actively farming the agricultural property
is a Minnesota resident;

(4) neither that shareholder, member, or partner, nor the spouse of that shareholder,
member, or partner claims another agricultural homestead in Minnesota; and

(5) that shareholder, member, or partner does not live farther than four townships or
cities, or a combination of four townships or cities, from the agricultural property.

Homestead treatment applies under this paragraph even if:

(i) the shareholder, member, or partner of that entity is actively farming the agricultural
property on the shareholder's, member's, or partner's own behalf; or

(ii) the family farm is operated by a family farm corporation, joint family farm venture,
partnership, or limited liability company other than the family farm corporation, joint family
farm venture, partnership, or limited liability company that owns the land, provided that:

(A) the shareholder, member, or partner of the family farm corporation, joint family
farm venture, partnership, or limited liability company that owns the land who is actively
farming the land is a shareholder, member, or partner of the family farm corporation, joint
family farm venture, partnership, or limited liability company that is operating the farm;
and

(B) more than half of the shareholders, members, or partners of each family farm
corporation, joint family farm venture, partnership, or limited liability company are persons
or spouses of persons who are a qualifying relative under section 273.124, subdivision 1,
paragraphs (c) and (d).

Homestead treatment applies under this paragraph for property leased to a family farm
corporation, joint farm venture, limited liability company, or partnership operating a family
farm if legal title to the property is in the name of an individual who is a member, shareholder,
or partner in the entity.

(h) To be eligible for the special agricultural homestead under this subdivision, an initial
full application must be submitted to the county assessor where the property is located.
Owners and the persons who are actively farming the property shall be required to complete
only a one-page abbreviated version of the application in each subsequent year provided
that none of the following items have changed since the initial application:

(1) the day-to-day operation, administration, and financial risks remain the same;

(2) the owners and the persons actively farming the property continue to live within the
four townships or city criteria and are Minnesota residents;

(3) the same operator of the agricultural property is listed with the Farm Service Agency;

(4) a Schedule F or equivalent income tax form was filed for the most recent year;

(5) the property's acreage is unchanged; and

(6) none of the property's acres have been enrolled in a federal or state farm program
since the initial application.

The owners and any persons who are actively farming the property must include the
appropriate Social Security numbers new text begin or individual taxpayer identification numbers new text end , and sign
and date the application. If any of the specified information has changed since the full
application was filed, the owner must notify the assessor, and must complete a new
application to determine if the property continues to qualify for the special agricultural
homestead. The commissioner of revenue shall prepare a standard reapplication form for
use by the assessors.

(i) Agricultural land and buildings that were class 2a homestead property under section
273.13, subdivision 23, paragraph (a), for the 2007 assessment shall remain classified
agricultural homesteads for subsequent assessments if:

(1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of damage caused by the August 2007 floods;

(2) the property is located in the county of Dodge, Fillmore, Houston, Olmsted, Steele,
Wabasha, or Winona;

(3) the agricultural land and buildings remain under the same ownership for the current
assessment year as existed for the 2007 assessment year;

(4) the dwelling occupied by the owner is located in this state and is within 50 miles of
one of the parcels of agricultural land that is owned by the taxpayer; and

(5) the owner notifies the county assessor that the relocation was due to the August 2007
floods, and the owner furnishes the assessor any information deemed necessary by the
assessor in verifying the change in homestead dwelling. For taxes payable in 2009, the
owner must notify the assessor by December 1, 2008. Further notifications to the assessor
are not required if the property continues to meet all the requirements in this paragraph and
any dwellings on the agricultural land remain uninhabited.

(j) Agricultural land and buildings that were class 2a homestead property under section
273.13, subdivision 23, paragraph (a), for the 2008 assessment shall remain classified as
agricultural homesteads for subsequent assessments if:

(1) the property owner abandoned the homestead dwelling located on the agricultural
homestead as a result of the March 2009 floods;

(2) the property is located in the county of Marshall;

(3) the agricultural land and buildings remain under the same ownership for the current
assessment year as existed for the 2008 assessment year and continue to be used for
agricultural purposes;

(4) the dwelling occupied by the owner is located in Minnesota and is within 50 miles
of one of the parcels of agricultural land that is owned by the taxpayer; and

(5) the owner notifies the county assessor that the relocation was due to the 2009 floods,
and the owner furnishes the assessor any information deemed necessary by the assessor in
verifying the change in dwelling. Further notifications to the assessor are not required if the
property continues to meet all the requirements in this paragraph and any dwellings on the
agricultural land remain uninhabited.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for homestead applications
filed in 2023 and thereafter.
new text end

Sec. 16.

Minnesota Statutes 2022, section 273.1245, subdivision 1, is amended to read:

Subdivision 1.

Private or nonpublic data.

The following data are private or nonpublic
data as defined in section 13.02, subdivisions 9 and 12, when they are submitted to a county
or local assessor under section 273.124, 273.13, or another section, to support a claim for
the property tax homestead classification under section 273.13, or other property tax
classification or benefit:

(1) Social Security numbers;

new text begin (2) individual taxpayer identification numbers;
new text end

deleted text begin (2) deleted text end new text begin (3) new text end copies of state or federal income tax returns; and

deleted text begin (3) deleted text end new text begin (4) new text end state or federal income tax return information, including the federal income tax
schedule F.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for homestead applications
filed in 2023 and thereafter.
new text end

Sec. 17.

Minnesota Statutes 2022, section 273.128, subdivision 1, is amended to read:

Subdivision 1.

Requirement.

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

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

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

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

(4) the units are subject to rent and income restrictions under the terms of financial
assistance provided to the rental housing property by the federal government or the state of
Minnesota, or a local unit of government, as evidenced by a document recorded against the
property.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2024.
new text end

Sec. 18.

Minnesota Statutes 2022, section 273.128, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Approval. new text end

new text begin A property owner must receive approval by resolution of the
governing body of the city or town where the property is located before submitting an initial
application to the Housing Finance Agency, as required under subdivision 2, for property
that has not, in whole or in part, been classified as class 4d(1) under section 273.13,
subdivision 25, prior to assessment year 2024. A property owner that receives approval as
required under this subdivision, and the certification made under subdivision 3, shall not
be required to seek approval under this subdivision prior to submitting an application under
subdivision 2 in each subsequent year. If the property is located in a city or town in which
the net tax capacity of 4d(1) property did not exceed two percent of the total net tax capacity
in the city or town in the prior assessment year, the property owner does not need to receive
approval under this subdivision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2024.
new text end

Sec. 19.

Minnesota Statutes 2022, section 273.128, subdivision 2, is amended to read:

Subd. 2.

Application.

(a) Application for certification under this section must be filed
by March 31 of the levy year, or at a later date if the Housing Finance Agency deems
practicable. The application must be filed with the Housing Finance Agency, on a form
prescribed by the agency, and must contain the information required by the Housing Finance
Agency.

(b) Each application must include:

(1) the property tax identification number; and

(2) evidence that the property meets the requirements of deleted text begin subdivision deleted text end new text begin subdivisions new text end 1 new text begin and
1a new text end .

(c) The Housing Finance Agency may charge an application fee approximately equal
to the costs of processing and reviewing the applications but not to exceed $10 per unit. If
imposed, the applicant must pay the application fee to the Housing Finance Agency. The
fee must be deposited in the housing development fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2024.
new text end

Sec. 20.

Minnesota Statutes 2022, section 273.13, subdivision 22, is amended to read:

Subd. 22.

Class 1.

(a) Except as provided in subdivision 23 and in paragraphs (b) and
(c), real estate which is residential and used for homestead purposes is class 1a. In the case
of a duplex or triplex in which one of the units is used for homestead purposes, the entire
property is deemed to be used for homestead purposes. The market value of class 1a property
must be determined based upon the value of the house, garage, and land.

The first $500,000 of market value of class 1a property has a net classification rate of
one percent of its market value; and the market value of class 1a property that exceeds
$500,000 has a classification rate of 1.25 percent of its market value.

(b) Class 1b property includes homestead real estate or homestead manufactured homes
used for the purposes of a homestead by:

(1) any person who is blind as defined in section 256D.35, or the person who is blind
and the spouse of the person who is blind;

(2) any person who is permanently and totally disabled or by the person with a disability
and the spouse of the person with a disability; or

(3) the surviving spouse of a veteran who was permanently and totally disabled
homesteading a property classified under this paragraph for taxes payable in 2008.

Property is classified and assessed under clause (2) only if the government agency or
income-providing source certifies, upon the request of the homestead occupant, that the
homestead occupant satisfies the disability requirements of this paragraph, and that the
property is not eligible for the valuation exclusion under subdivision 34.

Property is classified and assessed under paragraph (b) only if the commissioner of
revenue or the county assessor certifies that the homestead occupant satisfies the requirements
of this paragraph.

Permanently and totally disabled for the purpose of this subdivision means a condition
which is permanent in nature and totally incapacitates the person from working at an
occupation which brings the person an income. The first $50,000 market value of class 1b
property has a net classification rate of .45 percent of its market value. The remaining market
value of class 1b property is classified as class 1a or class 2a property, 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 deleted text begin $600,000 deleted text end new text begin $850,000 new text end of market value is tier
I, the next deleted text begin $1,700,000 deleted text end new text begin $2,250,000 new text end 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 2024.
new text end

Sec. 21.

Minnesota Statutes 2022, 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 deleted text begin is deleted text end new text begin includes:
new text end

new text begin (1) new text end 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 deleted text begin 4d deleted text end new text begin 4d(1) new text end . The remaining portion of the building shall be classified by the assessor
based upon its use. Class deleted text begin 4d deleted text end new text begin 4d(1) new text end 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 deleted text begin 4d deleted text end new text begin 4d(1) new text end , the market value determined by the assessor must be based on
the normal approach to value using normal unrestricted rents deleted text begin . deleted text end new text begin ; and
new text end

new text begin (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. 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.
new text end

(f) deleted text begin The first tier of market value of class 4d property has a classification rate of 0.75
percent. The remaining value of class 4d property has a classification rate of 0.25 percent.
For the purposes of this paragraph, the "first tier of market value of class 4d property" means
the market value of each housing unit up to the first tier limit. For the purposes of this
paragraph, all class 4d property value must be assigned to individual housing units. The
first tier limit is $100,000 for assessment years 2022 and 2023. For subsequent assessment
years, the limit is adjusted each year by the average statewide change in estimated market
value of property classified as class 4a and 4d under this section for the previous assessment
year, excluding valuation change due to new construction, rounded to the nearest $1,000,
provided, however, that the limit may never be less than $100,000. Beginning with
assessment year 2015, the commissioner of revenue must certify the limit for each assessment
year by November 1 of the previous year. deleted text end new text begin 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 end

new text begin EFFECTIVE DATE. new text end

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

Sec. 22.

Minnesota Statutes 2022, 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 $150,000 deleted text end new text begin $165,000 new 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 $300,000 deleted text end new text begin $330,000 new 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 dying after December 31, 2011, did not apply for or receive the exclusion
under paragraph (b), clause (2), before dying, 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 within two years of the death of the service
member or by June 1, 2019, whichever is later;

(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.

new text begin (o) If a spouse previously received the exclusion under paragraph (c) or (d), but the
exclusion expired prior to assessment year 2019 before the eligibility time period for
surviving spouses was changed to a potential lifetime benefit, the spouse may reapply under
paragraph (h) for the exclusion under paragraph (c) or (d).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2023.
new text end

Sec. 23.

Minnesota Statutes 2022, section 273.13, subdivision 35, is amended to read:

Subd. 35.

Homestead market value exclusion.

(a) Prior to determining a property's
net tax capacity under this section, property classified as new text begin 4d(2) under subdivision 25,
paragraph (e), clause (2), new text end class 1a new text begin , new text end or 1b under subdivision 22, and the portion of property
classified as class 2a under subdivision 23 consisting of the house, garage, and surrounding
one acre of land, shall be eligible for a market value exclusion as determined under paragraph
(b).

(b) For a homestead valued at deleted text begin $76,000 deleted text end new text begin $95,000 new text end or less, the exclusion is 40 percent of
market value. For a homestead valued between deleted text begin $76,000 deleted text end new text begin $95,000 new text end and deleted text begin $413,800 deleted text end new text begin $517,200 new text end ,
the exclusion is deleted text begin $30,400 deleted text end new text begin $38,000 new text end minus nine percent of the valuation over deleted text begin $76,000 deleted text end new text begin $95,000 new text end .
For a homestead valued at deleted text begin $413,800 deleted text end new text begin $517,200 new text end or more, there is no valuation exclusion. The
valuation exclusion shall be rounded to the nearest whole dollar, and may not be less than
zero.

(c) Any valuation exclusions or adjustments under section 273.11 shall be applied prior
to determining the amount of the valuation exclusion under this subdivision.

(d) In the case of a property that is classified as part homestead and part nonhomestead,
(i) the exclusion shall apply only to the homestead portion of the property, but (ii) if a portion
of a property is classified as nonhomestead solely because not all the owners occupy the
property, not all the owners have qualifying relatives occupying the property, or solely
because not all the spouses of owners occupy the property, the exclusion amount shall be
initially computed as if that nonhomestead portion were also in the homestead class and
then prorated to the owner-occupant's percentage of ownership. For the purpose of this
section, when an owner-occupant's spouse does not occupy the property, the percentage of
ownership for the owner-occupant spouse is one-half of the couple's ownership percentage.

new text begin EFFECTIVE DATE. new text end

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

Sec. 24.

Minnesota Statutes 2022, section 273.1315, subdivision 2, is amended to read:

Subd. 2.

Class 1b homestead declaration 2009 and thereafter.

(a) Any property owner
seeking classification and assessment of the owner's homestead as class 1b property pursuant
to section 273.13, subdivision 22, paragraph (b), after October 1, 2008, shall file with the
county assessor a class 1b homestead declaration, on a form prescribed by the commissioner
of revenue. The declaration must contain the following information:

(1) the information necessary to verify that, on or before June 30 of the filing year, the
property owner or the owner's spouse satisfies the requirements of section 273.13, subdivision
22, paragraph (b), for class 1b classification; and

(2) any additional information prescribed by the commissioner.

(b) The declaration must be filed on or before October 1 to be effective for property
taxes payable during the succeeding calendar year. The Social Security numbers new text begin , individual
taxpayer identification numbers, new text end and income and medical information received from the
property owner pursuant to this subdivision are private data on individuals as defined in
section 13.02. If approved by the assessor, the declaration remains in effect until the property
no longer qualifies under section 273.13, subdivision 22, paragraph (b). Failure to notify
the assessor within 30 days that the property no longer qualifies under that paragraph because
of a sale, change in occupancy, or change in the status or condition of an occupant shall
result in the penalty provided in section 273.124, subdivision 13b, computed on the basis
of the class 1b benefits for the property, and the property shall lose its current class 1b
classification.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for homestead applications
filed in 2023 and thereafter.
new text end

Sec. 25.

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

273.41 AMOUNT OF TAX; DISTRIBUTION.

There is hereby imposed upon each such cooperative association on December 31 of
each year a tax of $10 for each 100 members, or fraction thereof, of such association. The
tax, when paid, shall be in lieu of all personal property taxes, state, county, or local, upon
distribution lines and the attachments and appurtenances thereto of such associations located
in rural areas. new text begin For purposes of this section, "attachments and appurtenances" includes but
is not limited to all cooperative association-owned metering and streetlighting equipment
that is physically or electrically connected to the cooperative association's distribution
system. new text end 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 beginning with assessment year 2024.
new text end

Sec. 26.

Minnesota Statutes 2022, section 279.03, subdivision 1a, is amended to read:

Subd. 1a.

Rate.

(a) Except as provided in deleted text begin paragraph deleted text end new text begin paragraphs new text end (b) new text begin and (c) new text end , interest on
delinquent property taxes, penalties, and costs unpaid on or after January 1 is payable at the
per annum rate determined in section 270C.40, subdivision 5. deleted text begin If the rate so determined is
less than ten percent, the rate of interest is ten percent. deleted text end The maximum per annum rate is 14
percent if the rate specified under section 270C.40, subdivision 5, exceeds 14 percent. The
rate is subject to change on January 1 of each year.

(b) If a person is the owner of one or more parcels of property on which taxes are
delinquent, and the delinquent taxes are more than 25 percent of the prior year's school
district levy, interest on the delinquent property taxes, penalties, and costs unpaid is payable
at twice the rate determined under paragraph (a) for the year.

new text begin (c) A county board, by resolution, may establish an interest rate lower than the interest
rate determined under paragraph (a).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property taxes, penalties, and costs
determined to be delinquent on or after January 1, 2024.
new text end

Sec. 27.

Minnesota Statutes 2022, section 282.261, subdivision 2, is amended to read:

Subd. 2.

Interest rate.

new text begin (a) Except as provided under paragraph (b), new text end the unpaid balance
on any repurchase contract approved by the county board is subject to interest at the rate
determined in section 279.03, subdivision 1a. The interest rate is subject to change each
year on the unpaid balance in the manner provided for rate changes in section 279.03,
subdivision 1a.

new text begin (b) A county board, by resolution, or a county auditor, if delegated the responsibility to
administer tax-forfeited land assigned to the county board as provided under section 282.135,
may establish an interest rate lower than the interest rate determined under paragraph (a).
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 28.

Minnesota Statutes 2022, section 290A.03, subdivision 6, is amended to read:

Subd. 6.

Homestead.

"Homestead" means the dwelling occupied as the claimant's
principal residence and so much of the land surrounding it, not exceeding ten acres, as is
reasonably necessary for use of the dwelling as a home and any other property used for
purposes of a homestead as defined in section 273.13, subdivision 22, deleted text begin except deleted text end new text begin or section
273.13, subdivision 25, paragraph (e), clause (2). new text end For agricultural land assessed as part of
a homestead pursuant to section 273.13, subdivision 23, "homestead" is limited to the house
and garage and immediately surrounding one acre of land. The homestead may be owned
or rented and may be a part of a multidwelling or multipurpose building and the land on
which it is built. A manufactured home, as defined in section 273.125, subdivision 8, or a
park trailer taxed as a manufactured home under section 168.012, subdivision 9, assessed
as personal property may be a dwelling for purposes of this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for refund claims based on taxes payable
in 2025 and thereafter.
new text end

Sec. 29.

Minnesota Statutes 2022, section 290A.04, subdivision 2h, is amended to read:

Subd. 2h.

Additional refund.

(a) If the gross property taxes payable on a homestead
increase more than deleted text begin 12 deleted text end new text begin ten new text end percent over the property taxes payable in the prior year on the
same property that is owned and occupied by the same owner on January 2 of both years,
and the amount of that increase is $100 or more, a claimant who is a homeowner shall be
allowed an additional refund equal to 60 percent of the amount of the increase over the
greater of deleted text begin 12 deleted text end new text begin ten new text end percent of the prior year's property taxes payable or $100. This subdivision
shall not apply to any increase in the gross property taxes payable attributable to
improvements made to the homestead after the assessment date for the prior year's taxes.
This subdivision shall not apply to any increase in the gross property taxes payable
attributable to the termination of valuation exclusions under section 273.11, subdivision
16.

The maximum refund allowed under this subdivision is deleted text begin $1,000 deleted text end new text begin $2,000 new text end .

(b) For purposes of this subdivision "gross property taxes payable" means property taxes
payable determined without regard to the refund allowed under this subdivision.

(c) In addition to the other proofs required by this chapter, each claimant under this
subdivision shall file with the property tax refund return a copy of the property tax statement
for taxes payable in the preceding year or other documents required by the commissioner.

(d) Upon request, the appropriate county official shall make available the names and
addresses of the property taxpayers who may be eligible for the additional property tax
refund under this section. The information shall be provided on a magnetic computer disk.
The county may recover its costs by charging the person requesting the information the
reasonable cost for preparing the data. The information may not be used for any purpose
other than for notifying the homeowner of potential eligibility and assisting the homeowner,
without charge, in preparing a refund claim.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for refund claims based on taxes payable
in 2024 and thereafter.
new text end

Sec. 30.

Minnesota Statutes 2022, 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 $60,000 deleted text end new text begin $96,000 new 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 deleted text begin 15 deleted text end new text begin five new text end 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 2024 and thereafter.
new text end

Sec. 31.

Minnesota Statutes 2022, 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 $60,000 deleted text end new text begin $96,000 new 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 2024 and thereafter.
new text end

Sec. 32.

Minnesota Statutes 2022, 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 $60,000 deleted text end new text begin $96,000 new 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 $60,000 deleted text end new text begin $96,000 new 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 2024 and thereafter.
new text end

Sec. 33.

Minnesota Statutes 2022, 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 $60,000 deleted text end new text begin $96,000 new 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 2024 and thereafter.
new text end

Sec. 34.

Minnesota Statutes 2022, section 383E.21, is amended to read:

383E.21 COUNTYWIDE PUBLIC SAFETY IMPROVEMENTS AND
EQUIPMENT; BONDING AND TAX LEVIES.

Subdivision 1.

Authority to levy property taxes and incur debt.

(a) To finance the
cost of designing, constructing, and acquiring countywide public safety improvements and
equipment, including personal property, benefiting both Anoka County and the municipalities
located within Anoka County, the governing body of Anoka County may levy property
taxes for public safety improvements and equipment, and issue:

(1) capital improvement bonds under the provisions of section 373.40 as if the
infrastructure and equipment qualified as a "capital improvement" within the meaning of
section 373.40, subdivision 1, paragraph (b); and

(2) capital notes under the provisions of section 373.01, subdivision 3, as if the equipment
qualified as "capital equipment" within the meaning of section 373.01, subdivision 3.
Personal property acquired with the proceeds of the bonds or capital notes issued under this
section must have an expected useful life at least as long as the term of debt.

(b) The outstanding principal amount of the bonds and the capital notes issued under
this section may not exceed $8,000,000 at any time. Any bonds or notes issued pursuant to
this section must only be issued after approval by a majority vote of the Anoka County Joint
Law Enforcement Council, a joint powers board.

Subd. 2.

Treatment of levy.

new text begin (a) Anoka County shall not include any taxes levied under
this section in its levy certified under section 275.07, subdivision 1, paragraph (a). Anoka
County shall separately certify taxes levied under this section to the county auditor.
new text end

new text begin (b) new text end Notwithstanding sections 275.065, subdivision 3, and 276.04, the county may report
the tax attributable to any levy to fund public safety capital improvements or equipment
projects approved by the Anoka County Joint Law Enforcement Council or pay principal
and interest on bonds or notes issued under this section as a separate line item on the proposed
property tax notice and the property tax statement.

Subd. 3.

Expiration.

This section expires on December 31, deleted text begin 2023 deleted text end new text begin 2033 new text end . The county may
not issue a bond or note under this section with a maturity or payment date after the expiration
date of this section. No property tax may be levied under this section for taxes payable in
a calendar year after the calendar year in which this section expires. Expiration of this section
does not affect the obligation to pay or the authority to collect taxes levied under this section
before its expiration.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of
Anoka County and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 35.

Minnesota Statutes 2022, section 473F.02, subdivision 2, is amended to read:

Subd. 2.

Area.

"Area" means the territory included within the deleted text begin boundaries of Anoka,
Carver, Dakota excluding the city of Northfield, Hennepin, Ramsey, Scott excluding the
city of New Prague, and Washington Counties deleted text end new text begin metropolitan area as defined in section
473.121, subdivision 2 new text end , excluding lands constituting a major or an intermediate airport as
defined under section 473.625.

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective for taxes payable in
2024 and thereafter and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
Scott, and Washington.
new text end

Sec. 36.

Minnesota Statutes 2022, section 473F.02, subdivision 8, is amended to read:

Subd. 8.

Municipality.

"Municipality" means a city, town, or township located in whole
or part within the area deleted text begin , but not the cities of New Prague or Northfield deleted text end new text begin as defined in
subdivision 2 new text end . If a municipality is located partly within and partly without the area, the
references in sections 473F.01 to 473F.13 to property or any portion thereof subject to
taxation or taxing jurisdiction within the municipality are to such property or portion thereof
as is located in that portion of the municipality within the area, except that the fiscal capacity
of such a municipality shall be computed upon the basis of the valuation and population of
the entire municipality.

A municipality shall be excluded from the area if its municipal comprehensive zoning
and planning policies conscientiously exclude most commercial-industrial development,
for reasons other than preserving an agricultural use. The Metropolitan Council and the
commissioner of revenue shall jointly make this determination annually and shall notify
those municipalities that are ineligible to participate in the tax base sharing program provided
in this chapter for the following year.

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective for taxes payable in
2024 and thereafter and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
Scott, and Washington.
new text end

Sec. 37. new text begin NORTHWEST MINNESOTA MULTI-COUNTY HOUSING AND
REDEVELOPMENT AUTHORITY; LEVY AUTHORITY.
new text end

new text begin Notwithstanding any law to the contrary, Laws 2008, chapter 366, article 5, section 33,
the effective date, as amended by Laws 2013, chapter 143, article 4, section 35, and Laws
2019, First Special Session chapter 6, article 4, section 31, is effective for taxes levied in
2008, payable in 2009, and is repealed effective for taxes levied in 2033, payable in 2034,
and thereafter.
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
Northwest Minnesota Multi-County Housing and Redevelopment Authority and its chief
clerical officer comply with the requirements of Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 38. new text begin CLASS 4D(1); CLASS-RATE REDUCTION PROPERTY TAX SAVINGS
REPORT.
new text end

new text begin (a) By November 1, 2025, each county must identify ten properties located within the
county with the greatest number of units classified as class 4d(1) under Minnesota Statutes,
section 273.13, subdivision 25. After identifying each property, the county must contact
and survey each property owner as to how each owner used property tax savings resulting
from the class rate change made to property classified as class 4d(1) under Minnesota
Statutes, section 273.13, subdivision 25, beginning with property taxes payable in 2025.
new text end

new text begin (b) By March 15, 2026, each county shall issue a report to the commissioner of revenue
and to the legislative committees with jurisdiction over taxes and property taxes indicating
how each surveyed property owner used property tax savings resulting from the class 4d(1)
class rate change. The report shall include uses identified by type, including but not limited
to property maintenance, property security, property improvements, property operations,
rent stabilization, and increases in the property's capital expenditure fund balance.
new text end

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 4

PROPERTY TAX AIDS

Section 1.

Minnesota Statutes 2022, section 273.1392, is amended to read:

273.1392 PAYMENT; SCHOOL DISTRICTS.

The amounts of bovine tuberculosis credit reimbursements under section 273.113;
conservation tax credits under section 273.119; disaster or emergency reimbursement under
sections 273.1231 to 273.1235; agricultural credits under sections 273.1384 and 273.1387;
aids and credits under section 273.1398; enterprise zone property credit payments under
section 469.171; deleted text begin and deleted text end metropolitan agricultural preserve reduction under section 473H.10 new text begin ;
and electric generation transition aid under section 477A.24 new text end for school districts, shall be
certified to the Department of Education by the Department of Revenue. The amounts so
certified shall be paid according to section 127A.45, subdivisions 9, 10, and 13.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2022, section 477A.011, is amended by adding a subdivision
to read:

new text begin Subd. 3b. new text end

new text begin Population age 65 and over. new text end

new text begin "Population age 65 and over" means the
population age 65 and over established as of July 15 in an aid calculation year by the most
recent federal census, by a special census conducted under contract with the United States
Bureau of the Census, by a population estimate made by the Metropolitan Council, or by a
population estimate of the state demographer made pursuant to section 4A.02, whichever
is the most recent as to the stated date of the count or estimate for the preceding calendar
year and which has been certified to the commissioner of revenue on or before July 15 of
the aid calculation year. A revision to an estimate or count is effective for these purposes
only if certified to the commissioner on or before July 15 of the aid calculation year. Clerical
errors in the certification or use of estimates and counts established as of July 15 in the aid
calculation year are subject to correction within the time periods allowed under section
477A.014.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2024
and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2022, section 477A.011, is amended by adding a subdivision
to read:

new text begin Subd. 3c. new text end

new text begin Transformed population. new text end

new text begin "Transformed population" means the logarithm to
the base 10 of the population.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2024
and thereafter.
new text end

Sec. 4.

Minnesota Statutes 2022, section 477A.011, subdivision 34, is amended to read:

Subd. 34.

City revenue need.

(a) For a city with a population equal to or greater than
10,000, "city revenue need" is 1.15 times the sum of (1) deleted text begin 4.59 deleted text end new text begin 8.572 new text end times the pre-1940
housing percentage; plus (2) deleted text begin 0.622 times the percent of housing built between 1940 and
1970 deleted text end new text begin 11.494 times the city age index new text end ; plus (3) deleted text begin 169.415 times the jobs per capita deleted text end new text begin 5.719 times
the commercial industrial utility percentage new text end ; plus (4) deleted text begin the sparsity adjustment deleted text end new text begin 9.484 times
peak population decline new text end ; plus (5) deleted text begin 307.664 deleted text end new text begin 293.056 new text end .

(b) For a city with a population equal to or greater than 2,500 and less than 10,000, "city
revenue need" is 1.15 times the sum of (1) deleted text begin 572.62 deleted text end new text begin 497.308 new text end ; plus (2) deleted text begin 5.026 deleted text end new text begin 6.667 new text end times the
pre-1940 housing percentage; deleted text begin minus deleted text end new text begin plus new text end (3) deleted text begin 53.768 times household size deleted text end new text begin 9.215 times the
commercial industrial utility percentage new text end ; plus (4) deleted text begin 14.022 deleted text end new text begin 16.081 new text end times peak population
decline deleted text begin ; plus (5) the sparsity adjustment deleted text end .

(c) For a city with a population less than 2,500, "city revenue need" is the sum of (1)
deleted text begin 410 deleted text end new text begin 196.487 new text end ; plus (2) deleted text begin 0.367 deleted text end new text begin 220.877 new text end times the city's new text begin transformed new text end population deleted text begin over 100; plus
(3) the sparsity adjustment. The city revenue need for a city under this paragraph shall not
exceed 630 plus the city's sparsity adjustment deleted text end .

(d) For a city with a population of at least 2,500 but less than 3,000, the "city revenue
need" equals (1) the transition factor times the city's revenue need calculated in paragraph
(b); plus (2) deleted text begin 630 deleted text end new text begin the city's revenue need calculated under the formula in paragraph (c) new text end times
the difference between one and the transition factor. For a city with a population of at least
10,000 but less than 11,000, the "city revenue need" equals (1) the transition factor times
the city's revenue need calculated in paragraph (a); plus (2) the city's revenue need calculated
under the formula in paragraph (b) times the difference between one and the transition
factor. For purposes of the first sentence of this paragraph "transition factor" is 0.2 percent
times the amount that the city's population exceeds the minimum threshold. For purposes
of the second sentence of this paragraph, "transition factor" is 0.1 percent times the amount
that the city's population exceeds the minimum threshold.

(e) The city revenue need cannot be less than zero.

(f) For calendar year deleted text begin 2015 deleted text end new text begin 2024 new text end and subsequent years, the city revenue need for a city,
as determined in paragraphs (a) to (e), is multiplied by the ratio of the annual implicit price
deflator for government consumption expenditures and gross investment for state and local
governments as prepared by the United States Department of Commerce, for the most
recently available year to the deleted text begin 2013 deleted text end new text begin 2022 new text end implicit price deflator for state and local government
purchases.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2024
and thereafter.
new text end

Sec. 5.

Minnesota Statutes 2022, section 477A.011, is amended by adding a subdivision
to read:

new text begin Subd. 46. new text end

new text begin City age index. new text end

new text begin "City age index" means 100 times the ratio of (1) the population
age 65 and over within the city, to (2) the population of the city.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2024
and thereafter.
new text end

Sec. 6.

Minnesota Statutes 2022, section 477A.011, is amended by adding a subdivision
to read:

new text begin Subd. 47. new text end

new text begin Commercial industrial utility percentage. new text end

new text begin The "commercial industrial utility
percentage" for a city is 100 times the ratio of (1) the sum of the estimated market values
of all real and personal property in the city classified as class 3 under section 273.13,
subdivision 24, to (2) the total market value of all taxable real and personal property in the
city. The market values are the amounts computed before any adjustments for fiscal
disparities under section 276A.06 or 473F.08. The market values used for this subdivision
are not equalized.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2024
and thereafter.
new text end

Sec. 7.

Minnesota Statutes 2022, section 477A.0124, subdivision 2, is amended to read:

Subd. 2.

Definitions.

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

(b) "County program aid" means the sum of "county need aid," "county tax base
equalization aid," and "county transition aid."

(c) "Age-adjusted population" means a county's population multiplied by the county age
index.

(d) "County age index" means the percentage of the population age 65 and over within
the county divided by the percentage of the population age 65 and over within the state,
except that the age index for any county may not be greater than 1.8 nor less than 0.8.

(e) "Population age 65 and over" deleted text begin means the population age 65 and over established as
of July 15 in an aid calculation year by the most recent federal census, by a special census
conducted under contract with the United States Bureau of the Census, by a population
estimate made by the Metropolitan Council, or by a population estimate of the state
demographer made pursuant to section 4A.02, whichever is the most recent as to the stated
date of the count or estimate for the preceding calendar year and which has been certified
to the commissioner of revenue on or before July 15 of the aid calculation year. A revision
to an estimate or count is effective for these purposes only if certified to the commissioner
on or before July 15 of the aid calculation year. Clerical errors in the certification or use of
estimates and counts established as of July 15 in the aid calculation year are subject to
correction within the time periods allowed under section 477A.014 deleted text end new text begin has the meaning given
in section 477A.011, subdivision 3b new text end .

(f) "Part I crimes" means the deleted text begin three-year average deleted text end annual number of Part I crimes reported
for each county by the Department of Public Safety deleted text begin for the most recent years available deleted text end . By
July 1 of each year, the commissioner of public safety shall certify to the commissioner of
revenue the number of Part I crimes reported for each county for the three most recent
calendar years available.

(g) "Households receiving Supplemental Nutrition Assistance Program (SNAP) benefits"
means the average monthly number of households receiving SNAP benefits for the three
most recent years for which data is available. By July 1 of each year, the commissioner of
human services must certify to the commissioner of revenue the average monthly number
of households in the state and in each county that receive SNAP benefits, for the three most
recent calendar years available.

(h) "County net tax capacity" means the county's adjusted net tax capacity under section
273.1325.

new text begin (i) "Group A offenses" means the annual number of Group A offenses under the National
Incident-Based Reporting System reported for each county by the Department of Public
Safety. By July 1 of each year, the commissioner of public safety shall certify to the
commissioner of revenue the number of Group A offenses reported for each county for the
three most recent full calendar years available.
new text end

new text begin (j) "Adjusted offenses" means the county's average annual number of Group A offenses
for the three-year period ending with the second prior calendar year to the year in which
the aid is certified. For aids payable in 2024 and 2025 only, for the purpose of the three-year
average calculated under this paragraph, the commissioner must substitute the annual number
of Part I crimes for any year in which the annual number of Group A offenses is not available.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2024
and thereafter.
new text end

Sec. 8.

Minnesota Statutes 2022, section 477A.0124, subdivision 3, is amended to read:

Subd. 3.

County need aid.

deleted text begin For 2005 and subsequent years, deleted text end The money appropriated to
county need aid each calendar year shall be allocated as follows: 40 percent based on each
county's share of age-adjusted population, 40 percent based on each county's share of the
state total of households receiving SNAP benefits, and 20 percent based on each county's
share of the state total of deleted text begin Part I crimes deleted text end new text begin adjusted offenses new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2024
and thereafter.
new text end

Sec. 9.

Minnesota Statutes 2022, section 477A.013, subdivision 8, is amended to read:

Subd. 8.

City formula aid.

(a) For aids payable in deleted text begin 2018 deleted text end new text begin 2024 new text end and thereafter, the formula
aid for a city is equal to the product of (1) the difference between its unmet need and its
certified aid in the previous year deleted text begin and before any aid adjustment under subdivision 13 deleted text end , and
(2) the aid gap percentage.

(b) The applicable aid gap percentage must be calculated by the Department of Revenue
so that the total of the aid under subdivision 9 equals the total amount available for aid under
section 477A.03. The aid gap percentage must be the same for all cities subject to paragraph
(a). Data used in calculating aids to cities under sections 477A.011 to 477A.013 shall be
the most recently available data as of January 1 in the year in which the aid is calculated.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2024
and thereafter.
new text end

Sec. 10.

Minnesota Statutes 2022, section 477A.013, subdivision 9, is amended to read:

Subd. 9.

City aid distribution.

(a) In calendar year deleted text begin 2018 deleted text end new text begin 2024 new text end and thereafter, if a city's
certified aid deleted text begin before any aid adjustment under subdivision 13 deleted text end for the previous year is less
than its current unmet need, the city shall receive an aid distribution equal to the sum of (1)
its certified aid in the previous year deleted text begin before any aid adjustment under subdivision 13 deleted text end , new text begin and
new text end (2) the city formula aid under subdivision 8 deleted text begin , and (3) its aid adjustment under subdivision
13 deleted text end .

(b) deleted text begin For aids payable in 2020 only, no city's aid amount before any adjustment under
subdivision 13 may be less than its pay 2019 certified aid amount, less any aid adjustment
under subdivision 13 for that year. deleted text end For aids payable in deleted text begin 2020 deleted text end new text begin 2024 new text end and thereafter, if a city's
certified aid deleted text begin before any aid adjustment under subdivision 13 deleted text end for the previous year is equal
to or greater than its current unmet need, the total aid for a city is equal to the greater of (1)
its unmet need deleted text begin plus any aid adjustment under subdivision 13 deleted text end , or (2) the amount it was
certified to receive in the previous year minus the deleted text begin sum of (i) any adjustment under subdivision
13 that was paid in the previous year but has expired, and (ii) the deleted text end lesser of new text begin (i) new text end $10 multiplied
by its population, or new text begin (ii) new text end five percent of its net levy in the year prior to the aid distribution.
No city may have a total aid amount less than $0.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2024
and thereafter.
new text end

Sec. 11.

Minnesota Statutes 2022, section 477A.014, subdivision 1, is amended to read:

Subdivision 1.

Calculations and payments.

(a) The commissioner of revenue shall
make all necessary calculations and make payments deleted text begin pursuant to sections 477A.013 and
477A.03 deleted text end new text begin under this chapter new text end directly to the affected deleted text begin taxing authorities deleted text end new text begin political subdivisions new text end
annually. deleted text begin In addition, deleted text end The commissioner shall notify the deleted text begin authorities deleted text end new text begin political subdivisions new text end
of their aid amounts, deleted text begin as well as deleted text end the computational factors used in making the calculations
deleted text begin for their authority deleted text end , and those statewide total figures that are pertinent, before August 1 of
the year preceding the aid distribution year new text begin , unless a different date is specified new text end .

(b) For the purposes of this subdivision, aid is determined for a city or town based on
its city or town status as of June 30 of the year preceding the aid distribution year. If the
effective date for a municipal incorporation, consolidation, annexation, detachment,
dissolution, or township organization is on or before June 30 of the year preceding the aid
distribution year, such change in boundaries or form of government shall be recognized for
aid determinations for the aid distribution year. If the effective date for a municipal
incorporation, consolidation, annexation, detachment, dissolution, or township organization
is after June 30 of the year preceding the aid distribution year, such change in boundaries
or form of government shall not be recognized for aid determinations until the following
year.

new text begin Subd. 1a. new text end

new text begin Adjustments to computational factors. new text end

deleted text begin (c) deleted text end new text begin (a) new text end Changes in boundaries or
form of government deleted text begin will deleted text end new text begin may new text end only be recognized for the purposes of this subdivision, to
the extent that new text begin , on or before July 15 of the aid calculation year new text end : (1) changes in deleted text begin market values
are included in market values reported by assessors to the commissioner, and changes in
population and household size are included in their respective certifications to the
commissioner as referenced in section 477A.011 deleted text end new text begin computational factors have been recertified
or otherwise reported in reliable form to the commissioner new text end , or (2) an annexation information
report as provided in paragraph deleted text begin (d) deleted text end new text begin (b) new text end is received by the commissioner deleted text begin on or before July
15 of the aid calculation year deleted text end . Revisions to estimates or data for use in recognizing changes
in boundaries or form of government are not effective for purposes of this subdivision unless
received by the commissioner on or before July 15 of the aid calculation year. Clerical errors
in the certification or use of estimates and data established as of July 15 in the aid calculation
year are subject to correction within the time periods allowed under subdivision 3.

deleted text begin (d) deleted text end new text begin (b) new text end In the case of an annexation, an annexation information report may be completed
by the annexing jurisdiction and submitted to the commissioner for purposes of this
subdivision if the net tax capacity of annexed area for the assessment year preceding the
effective date of the annexation exceeds five percent of the city's net tax capacity for the
same year. The form and contents of the annexation information report shall be prescribed
by the commissioner. The commissioner shall deleted text begin change the net tax capacity, the population,
the population decline, the commercial industrial percentage, and the transformed population deleted text end new text begin
adjust the computational factors used to calculate aid under section 477A.013, subdivision
9, new text end for the annexing jurisdiction only if the annexation information report provides data the
commissioner determines to be reliable for deleted text begin all of these factors used to compute city revenue
need for the annexing jurisdiction. The commissioner shall adjust the pre-1940 housing
percentage and household size only if the entire area of an existing city or town is annexed
or consolidated and only if reliable data is available for all of these factors used to compute
city revenue need for the annexing jurisdiction deleted text end new text begin the entire annexed area new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023.
new text end

Sec. 12.

Minnesota Statutes 2022, section 477A.015, is amended to read:

477A.015 PAYMENT DATES.

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

(b) Notwithstanding paragraph (a), for aids payable in deleted text begin 2019 deleted text end new text begin 2025 new text end only, the commissioner
of revenue shall make payments of the aid payable under section 477A.013, subdivision 9,
in three installments as follows: (1) deleted text begin 14.6 deleted text end new text begin 12.39 new text end percent of the aid shall be paid on deleted text begin June 15,
2019 deleted text end new text begin March 20, 2025 new text end ; (2) deleted text begin 35.4 deleted text end new text begin 37.61 new text end percent of the aid shall be paid on July 20, deleted text begin 2019 deleted text end new text begin 2025 new text end ;
and (3) 50 percent of the aid shall be paid on December 26, deleted text begin 2019 deleted text end new text begin 2025 new text end .

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2024
and thereafter.
new text end

Sec. 13.

Minnesota Statutes 2022, section 477A.03, subdivision 2a, is amended to read:

Subd. 2a.

Cities.

deleted text begin For aids payable in 2016 and 2017, the total aid paid under section
477A.013, subdivision 9, is $519,398,012. For aids payable in 2018 and 2019, the total aid
paid under section 477A.013, subdivision 9, is $534,398,012. For aids payable in 2020, the
total aid paid under section 477A.013, subdivision 9, is $560,398,012. deleted text end For aids payable in
2021 deleted text begin and thereafter deleted text end new text begin through 2023 new text end , the total aid payable under section 477A.013, subdivision
9, is $564,398,012. new text begin For aids payable in 2024 and thereafter, the total aid payable under
section 477A.013, subdivision 9, is $604,398,012.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2024
and thereafter.
new text end

Sec. 14.

Minnesota Statutes 2022, section 477A.03, subdivision 2b, is amended to read:

Subd. 2b.

Counties.

(a) deleted text begin For aids payable in 2018 and 2019, the total aid payable under
section 477A.0124, subdivision 3, is $103,795,000, of which $3,000,000 shall be allocated
as required under Laws 2014, chapter 150, article 4, section 6. For aids payable in 2020,
the total aid payable under section 477A.0124, subdivision 3, is $116,795,000, of which
$3,000,000 shall be allocated as required under Laws 2014, chapter 150, article 4, section
6. deleted text end For aids payable in 2021 through deleted text begin 2024 deleted text end new text begin 2023 new text end , the total aid payable under section
477A.0124, subdivision 3, is $118,795,000, of which $3,000,000 shall be allocated as
required under Laws 2014, chapter 150, article 4, section 6. new text begin For aids payable in 2024, the
total aid payable under section 477A.0124, subdivision 3, is $136,496,026, of which
$3,000,000 shall be allocated as required under Laws 2014, chapter 150, article 4, section
6. new text end For aids payable in 2025 and thereafter, the total aid payable under section 477A.0124,
subdivision 3, is deleted text begin $115,795,000 deleted text end new text begin $133,496,026 new text end . On or before the first installment date provided
in section 477A.015, paragraph (a), $500,000 of this appropriation shall be transferred each
year by the commissioner of revenue to the Board of Public Defense for the payment of
services under section 611.27. Any transferred amounts not expended or encumbered in a
fiscal year shall be certified by the Board of Public Defense to the commissioner of revenue
on or before October 1 and shall be included in the next certification of county need aid.

(b) deleted text begin For aids payable in 2018 and 2019, the total aid under section 477A.0124, subdivision
4, is $130,873,444. For aids payable in 2020, the total aid under section 477A.0124,
subdivision 4, is $143,873,444. deleted text end For aids payable in 2021 deleted text begin and thereafter deleted text end new text begin through 2023 new text end , the
total aid under section 477A.0124, subdivision 4, is $145,873,444. new text begin For aids payable in 2024
and thereafter, the total aid under section 477A.0124, subdivision 4, is $168,172,418. new text end The
commissioner of revenue shall transfer to the Legislative Budget Office $207,000 annually
for the cost of preparation of local impact notes as required by section 3.987, and other local
government activities. The commissioner of revenue shall transfer to the commissioner of
education $7,000 annually for the cost of preparation of local impact notes for school districts
as required by section 3.987. The commissioner of revenue shall deduct the amounts
transferred under this paragraph from the appropriation under this paragraph. The amounts
transferred are appropriated to the Legislative Coordinating Commission and the
commissioner of education respectively.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2024
and thereafter.
new text end

Sec. 15.

Minnesota Statutes 2022, section 477A.12, subdivision 1, is amended to read:

Subdivision 1.

Types of land; payments.

The following amounts are annually
appropriated to the commissioner of natural resources from the general fund for transfer to
the commissioner of revenue. The commissioner of revenue shall pay the transferred funds
to counties as required by sections 477A.11 to 477A.14. The amounts, based on the acreage
as of July 1 of each year prior to the payment year, are:

(1) $5.133 multiplied by the total number of acres of acquired natural resources land or,
at the county's option three-fourths of one percent of the appraised value of all acquired
natural resources land in the county, whichever is greater;

(2) $5.133, multiplied by the total number of acres of transportation wetland or, at the
county's option, three-fourths of one percent of the appraised value of all transportation
wetland in the county, whichever is greater;

(3) $5.133, multiplied by the total number of acres of wildlife management land, or, at
the county's option, three-fourths of one percent of the appraised value of all wildlife
management land in the county, whichever is greater;

(4) 50 percent of the dollar amount as determined under clause (1), multiplied by the
number of acres of military refuge land in the county;

(5) deleted text begin $2 deleted text end new text begin $2.25 new text end , multiplied by the number of acres of county-administered other natural
resources land in the county;

(6) $5.133, multiplied by the total number of acres of land utilization project land in the
county;

(7) deleted text begin $2 deleted text end new text begin $2.25 new text end , multiplied by the number of acres of commissioner-administered other
natural resources land in the county; and

(8) without regard to acreage, and notwithstanding the rules adopted under section
84A.55, $300,000 for local assessments under section 84A.55, subdivision 9, that shall be
divided and distributed to the counties containing state-owned lands within a conservation
area in proportion to each county's percentage of the total annual ditch assessments.

new text begin EFFECTIVE DATE. new text end

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

Sec. 16.

Minnesota Statutes 2022, section 477A.16, subdivision 2, is amended to read:

Subd. 2.

Aid eligibility; payment.

(a) If the net tax capacity differential of the local
unit exceeds four percent of its modified net tax capacity, the local unit is eligible for
transition aid computed under paragraph (b).

(b) For aids payable in 2010 and thereafter, transition aid under this section for an eligible
local unit equals (1) the current year net tax capacity differential for taxes payable in the
year preceding the aid distribution year, times (2) the jurisdiction's tax rate for taxes payable
in 2008.

(c) The commissioner of revenue shall compute the amount of transition aid payable to
each local unit under this section. On or before August 1 of each year, the commissioner
shall certify the amount of transition aid computed for aids payable in the following year
for each recipient local unit. The commissioner shall pay transition aid to local units annually
at the times provided in section 477A.015.

new text begin (d) Notwithstanding paragraph (a), beginning with aids payable in 2024, a local unit is
not eligible for transition aid if the local unit was not eligible for transition aid in the previous
year.
new text end

new text begin (e) Notwithstanding paragraph (b), transition aid under this section for an eligible local
unit must be reduced by:
new text end

new text begin (1) 25 percent of the amount calculated under paragraph (b) for aid payable in 2024;
new text end

new text begin (2) 50 percent of the amount calculated under paragraph (b) for aid payable in 2025;
and
new text end

new text begin (3) 75 percent of the amount calculated under paragraph (b) for aid payable in 2026.
new text end

new text begin (f) Aid distributions under this section expire after aids payable in 2026 have been
distributed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2024 and thereafter.
new text end

Sec. 17.

new text begin [477A.23] SOIL AND WATER CONSERVATION DISTRICT AID.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, the following terms have the
meanings given:
new text end

new text begin (1) "nonpublic land" means land, excluding public land and Tribal land;
new text end

new text begin (2) "public land" means land that:
new text end

new text begin (i) is owned by the federal government, the state, or a county; and
new text end

new text begin (ii) is administered by the state or a county, but not including land administered by the
Minnesota State Colleges and Universities;
new text end

new text begin (3) "Tribal land" means land contained within the boundary of an American Indian Tribal
subdivision of a federally recognized Indian Tribe located in Minnesota, according to the
most recent data available from the United States Bureau of the Census;
new text end

new text begin (4) "population" means the population estimated as of June 1 in an aid calculation year
by the most recent federal census;
new text end

new text begin (5) "transformed population" means the cube root of population; and
new text end

new text begin (6) "soil and water conservation district" means a district under chapter 103C that is
implementing the duties under that chapter as determined by the Board of Water and Soil
Resources as of the date the board provides the certification to the commissioner of revenue
required by subdivision 3. For purposes of this section, soil and water conservation district
includes a county exercising the duties and authorities of a soil and water conservation
district under section 383A.606 or 383B.761.
new text end

new text begin Subd. 2. new text end

new text begin Distribution. new text end

new text begin The Board of Water and Soil Resources must calculate the amount
of aid to be distributed to the certified soil and water conservation districts from the
appropriation in subdivision 6 as follows:
new text end

new text begin (1) 70 percent of the appropriation must be distributed equally among the districts;
new text end

new text begin (2) 20 percent of the appropriation must be distributed proportionally among the districts
according to the amount of nonpublic land located in a district as compared to the amount
of nonpublic land in all districts; and
new text end

new text begin (3) ten percent of the appropriation must be distributed proportionally among the districts
according to the transformed population of the district as compared to the total transformed
population of all districts.
new text end

new text begin Subd. 3. new text end

new text begin Certification to commissioner. new text end

new text begin On or before June 1 each year, the Board of
Water and Soil Resources must certify to the commissioner of revenue the soil and water
conservation districts that will receive a payment under this section and the amount of each
payment.
new text end

new text begin Subd. 4. new text end

new text begin Use of proceeds. new text end

new text begin (a) Notwithstanding section 103C.401, subdivision 2, a soil
and water conservation district that receives a distribution under this section must use the
proceeds to implement chapter 103C and other duties and services prescribed by statute.
new text end

new text begin (b) The board of each soil and water conservation district must establish, by resolution,
annual guidelines for using payments received under this section. Current year guidelines
and guidelines from the year immediately prior must be posted on the district website.
new text end

new text begin (c) A soil and water conservation district that receives a payment under this section may
appropriate any portion of the payment to a governmental unit with which the district has
a cooperative agreement under section 103C.231. Any payment received under this section
and appropriated by the district must be used as required by this section.
new text end

new text begin Subd. 5. new text end

new text begin Payments. new text end

new text begin The commissioner of revenue must distribute soil and water
conservation district aid in the same manner and at the same times as aid payments provided
under section 477A.015.
new text end

new text begin Subd. 6. new text end

new text begin Appropriation. new text end

new text begin $12,723,000 is annually appropriated from the general fund
to the commissioner of revenue to make the payments required under this section.
new text end

new text begin Subd. 7. new text end

new text begin Aid amount corrections. new text end

new text begin If, due to a clerical error, the amount certified by the
Board of Water and Soil Resources to the commissioner of revenue is less than the amount
to which the district is entitled under this section, the Board of Water and Soil Resources
shall recertify the correct amount to the commissioner of revenue and communicate the
error and the corrected amount to the affected soil and water conservation district as soon
as practical after the error is discovered.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with aids payable in calendar
year 2023 and thereafter.
new text end

Sec. 18.

new text begin [477A.24] ELECTRIC GENERATION TRANSITION AID.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Electric generating unit" means a single generating unit at an electric generating
plant powered by coal, nuclear, or natural gas.
new text end

new text begin (c) "Electric generation property" means taxable property of an electric generating plant
owned by a public utility, as defined in section 216B.02, subdivision 4, that is powered by
coal, nuclear, or natural gas and located in an eligible taxing jurisdiction.
new text end

new text begin (d) "Eligible taxing jurisdiction" means a county, home rule charter or statutory city,
town, or school district.
new text end

new text begin (e) "Unit base year" means the assessment year in which the assessed value of electric
generation property is reduced due to the retirement of the electric generating unit.
new text end

new text begin (f) "Unit differential" means (1) the tax capacity of electric generation property in the
assessment year preceding the unit base year, minus (2) the tax capacity of electric generation
property in the unit base year. The unit differential may not be less than zero. The unit
differential equals zero if the tax capacity of electric generation property in the eligible
taxing jurisdiction in the assessment year preceding the unit base year is less than four
percent of the total net tax capacity of the eligible taxing jurisdiction in that year, as adjusted
under section 473F.08, subdivision 2, or 276A.06, subdivision 2, as applicable, except that,
in an eligible taxing jurisdiction with multiple electric generating units, only the unit
differential calculated upon the first retirement of an electric generating unit in that
jurisdiction following the effective date of this section is subject to the reduction under this
sentence.
new text end

new text begin Subd. 2. new text end

new text begin Required notification. new text end

new text begin Notwithstanding the requirements of Minnesota Rules,
chapter 8100, a public utility must notify the commissioner when the public utility expects
to retire an electric generating unit and remove that unit from the property tax base. The
notification must be in the form and manner determined by the commissioner, include
information required by the commissioner to calculate transition aid under this section, and
be filed together with the reports required under section 273.371.
new text end

new text begin Subd. 3. new text end

new text begin Unit transition amount. new text end

new text begin (a) The initial unit transition amount equals the product
of (1) the unit differential, times (2) the jurisdiction's tax rate for taxes payable in the unit
base year.
new text end

new text begin (b) The unit transition amount for the year following the unit base year, or in the year
as provided under subdivision 7, equals the initial unit transition amount. Unit transition
amounts in subsequent years must be reduced each year by an amount equal to five percent
of the initial unit transition amount. If the unit transition amount attributable to any unit is
less than $5,000 in any year, the unit transition amount for that unit equals zero.
new text end

new text begin Subd. 4. new text end

new text begin Electric generation transition aid. new text end

new text begin Electric generation transition aid for an
eligible taxing jurisdiction equals the sum of the unit transition amounts for that jurisdiction.
new text end

new text begin Subd. 5. new text end

new text begin Aid elimination. new text end

new text begin (a) Notwithstanding subdivision 4, beginning for aid in the
year after the year in which the jurisdiction first qualified for aid, aid for an eligible taxing
jurisdiction equals zero if the commissioner determines that the eligible taxing jurisdiction's
total net tax capacity in the assessment year preceding the aid calculation year is greater
than the product of:
new text end

new text begin (1) 90 percent of the jurisdiction's total net tax capacity in the assessment year preceding
the aid calculation year in which the jurisdiction first qualified for aid under this section;
times
new text end

new text begin (2) the greater of one or the ratio of (i) the statewide total net tax capacity of real and
personal property in the assessment year preceding the aid calculation year to (ii) the
statewide total net tax capacity of real and personal property in the assessment year preceding
the aid calculation year in which the jurisdiction first qualified for aid under this section.
new text end

new text begin (b) For the purposes of this subdivision, "net tax capacity" means net tax capacity as
adjusted under section 473F.08, subdivision 2, or 276A.06, subdivision 2, as applicable.
new text end

new text begin (c) If aid to a jurisdiction attributable to a previous unit retirement has been eliminated
under this subdivision, the jurisdiction may qualify for aid under this section for subsequent
unit retirements.
new text end

new text begin Subd. 6. new text end

new text begin Commissioner's duties; payment schedule. new text end

new text begin (a) The commissioner of revenue
shall compute the amount of electric generation transition aid payable to each jurisdiction
under this section. The portion of aid to an eligible taxing jurisdiction that consists of the
initial unit transition amount under subdivision 3, paragraph (a), must be certified on or
before May 1 in the year the aid is payable. The portion of aid to an eligible taxing
jurisdiction that consists of the unit transition amount under subdivision 3, paragraph (b),
must be certified by August 1 of each year for aids payable in the following calendar year.
The commissioner shall pay aid to each jurisdiction other than school districts annually at
the times provided in section 477A.015. Aids to school districts must be certified to the
commissioner of education and paid under section 273.1392.
new text end

new text begin (b) The commissioner of revenue may require counties to provide any data that the
commissioner deems necessary to administer this section.
new text end

new text begin Subd. 7. new text end

new text begin Aid for prior unit retirements. new text end

new text begin An electric generating unit with a unit base
year after 2016 but before 2023 must be counted for the purpose of calculating aid under
this section. For a unit eligible to be counted under this subdivision and for the purpose of
the schedule of amounts under subdivision 3, paragraph (b), the unit base year is 2023.
new text end

new text begin Subd. 8. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to make the aid payments required by
this section to eligible taxing jurisdictions other than school districts is annually appropriated
from the general fund to the commissioner of revenue. An amount sufficient to make the
aid payments required by this section for school districts is annually appropriated from the
general fund to the commissioner of education.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2024 and thereafter.
new text end

Sec. 19.

new text begin [477A.31] MAHNOMEN PROPERTY TAX REIMBURSEMENT AID.
new text end

new text begin Subdivision 1. new text end

new text begin Aid amounts. new text end

new text begin (a) The commissioner of revenue shall make reimbursement
aid payments to compensate for the loss of property tax revenue related to the trust conversion
application of the Shooting Star Casino. The commissioner shall pay the county of
Mahnomen, $1,010,000; the city of Mahnomen, $210,000; and Independent School District
No. 432, Mahnomen, $140,000.
new text end

new text begin (b) The payments shall be made annually on July 20.
new text end

new text begin Subd. 2. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to pay reimbursement aid under this
section is annually 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 for aids payable in calendar year 2024
and thereafter.
new text end

Sec. 20.

Laws 2006, chapter 259, article 11, section 3, as amended by Laws 2008, chapter
154, article 1, section 4, and Laws 2013, chapter 143, article 2, section 33, is amended to
read:

Sec. 3. MAHNOMEN COUNTY; COUNTY, CITY, SCHOOL DISTRICT,
PROPERTY TAX REIMBURSEMENT.

Subdivision 1.

Aid appropriation.

new text begin (a) new text end $1,200,000 is appropriated annually from the
general fund to the commissioner of revenue to be used to make payments to compensate
for the loss of property tax revenue related to the trust conversion application of the Shooting
Star Casino. The commissioner shall pay the county of Mahnomen, $900,000; the city of
Mahnomen, $160,000; and Independent School District No. 432, Mahnomen, $140,000.
The payments shall be made on July 20, of 2013 and each subsequent year.

new text begin (b) This section expires after aids payable year 2023.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2024
and thereafter.
new text end

Sec. 21. new text begin 2021 AID PENALTY FORGIVENESS.
new text end

new text begin Subdivision 1. new text end

new text begin City of Echo. new text end

new text begin Notwithstanding Minnesota Statutes, section 477A.017,
subdivision 3, the city of Echo is eligible to receive its aid payment for calendar year 2021
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
2021 under Minnesota Statutes, section 162.145, that was withheld under Minnesota Statutes,
section 162.145, subdivision 3, paragraph (c). If the state auditor certifies to the commissioner
of revenue that it received the annual financial reporting form for 2020 from the city by
June 1, 2023, the commissioner of revenue must make a payment of $46,060 to the city by
June 30, 2023.
new text end

new text begin Subd. 2. new text end

new text begin City of Morton. new text end

new text begin Notwithstanding Minnesota Statutes, section 477A.017,
subdivision 3, the city of Morton is eligible to receive its aid payment for calendar year
2021 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 2021 under Minnesota Statutes, section 162.145, that was withheld under Minnesota
Statutes, section 162.145, subdivision 3, paragraph (c). If the state auditor certifies to the
commissioner of revenue that it received the annual financial reporting form for 2020 from
the city by June 1, 2023, the commissioner of revenue must make a payment of $79,476 to
the city by June 30, 2023.
new text end

new text begin Subd. 3. new text end

new text begin Appropriation. new text end

new text begin The amounts necessary to make the payments required under
this section are appropriated in fiscal year 2023 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. 22. new text begin 2023 PUBLIC SAFETY AID.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, the following terms have the
meanings given:
new text end

new text begin (1) "commissioner" means the commissioner of revenue;
new text end

new text begin (2) "local unit" means (i) a statutory or home rule charter city, or (ii) a town with a
population of at least 10,000;
new text end

new text begin (3) "population" means population estimates made or conducted by the United States
Bureau of the Census; the Metropolitan Council pursuant to Minnesota Statutes, section
473.24; or by the state demographer pursuant to Minnesota Statutes, section 4A.02, paragraph
(d), whichever is the most recent estimate and available as of January 1, 2023;
new text end

new text begin (4) "Tribal governments" has the meaning given to "Minnesota Tribal governments" in
Minnesota Statutes, section 10.65, subdivision 2, paragraph (a), clause (4); and
new text end

new text begin (5) "Tribal population" means population estimates made or conducted by the United
States Bureau of the Census of the federally recognized American Indian reservations and
off-reservation trust lands in Minnesota, whichever is the most recent estimate and available
as of January 1, 2023.
new text end

new text begin Subd. 2. new text end

new text begin County aid. new text end

new text begin A county's public safety aid equals the sum of:
new text end

new text begin (1) the product of (i) the county's population, and (ii) the county basic allowance; plus
new text end

new text begin (2) the product of (i) the county's population minus the total population of every local
unit located in that county, and (ii) the county additional allowance.
new text end

new text begin Subd. 3. new text end

new text begin Tribal government aid. new text end

new text begin A Tribal government's public safety aid equals the
sum of:
new text end

new text begin (1) the product of (i) the Tribe's population, and (ii) the county basic allowance; plus
new text end

new text begin (2) the product of (i) the Tribe's population, and (ii) the county additional allowance.
new text end

new text begin Subd. 4. new text end

new text begin Local unit aid. new text end

new text begin A local unit's public safety aid equals the greater of (1) $1,500,
or (2) the product of (i) the local unit's population, and (ii) the local unit allowance.
new text end

new text begin Subd. 5. new text end

new text begin Commissioner to calculate allowances. new text end

new text begin (a) The commissioner must calculate
the county basic allowance so that the total amount of aid distributed under subdivisions 2,
clause (1), and 3, clause (1), equals 70 percent of the amount appropriated for aid to counties
and Tribal governments.
new text end

new text begin (b) The commissioner must calculate the county additional allowance so that the total
amount of aid distributed under subdivisions 2, clause (2), and 3, clause (2), equals 30
percent of the amount appropriated for aid to counties and Tribal governments.
new text end

new text begin (c) The commissioner must calculate the local unit allowance so that the total amount
of aid distributed under subdivision 4 equals the amount appropriated for aid to local units.
new text end

new text begin Subd. 6. new text end

new text begin Eligible uses. new text end

new text begin (a) A county, Tribal government, or local unit must use the aid
under this section to provide public safety, including but not limited to training programs
for peace officers and other public safety staff on mental health crisis response, de-escalation
strategies, or community engagement or to pay other personnel and equipment costs.
new text end

new text begin (b) A county must consult with its county sheriff in determining how to use the aid.
new text end

new text begin (c) A county, Tribal government, or local unit may not apply the aid under this section
toward:
new text end

new text begin (1) its employer contribution to the public employees police and fire fund if the county,
Tribal government, or local unit received police state aid under Minnesota Statutes, chapter
477C, in calendar year 2022; or
new text end

new text begin (2) any costs associated with alleged wrongdoing or misconduct.
new text end

new text begin Subd. 7. new text end

new text begin Certification; payment date. new text end

new text begin The commissioner must certify the aid amount
to be paid in 2023 to each county, Tribal government, and local unit by September 1, 2023.
The commissioner must make the full 2023 payment to each county, Tribal government,
and local unit by December 26, 2023.
new text end

new text begin Subd. 8. new text end

new text begin Appropriation. new text end

new text begin (a) $300,000,000 is appropriated in fiscal year 2024 from the
general fund to the commissioner of revenue for public safety aid under this section.
new text end

new text begin (b) Of the amount in paragraph (a), 30 percent is for aid to counties and Tribal
governments and 70 percent is for aid to local units.
new text end

new text begin (c) This is a onetime appropriation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2023.
new text end

Sec. 23. new text begin CITY OF HIBBING; 2024 CITY FORMULA AID ADJUSTMENT.
new text end

new text begin For aid payable in 2024 only, the city formula aid calculated under Minnesota Statutes,
section 477A.013, subdivision 8, for the City of Hibbing is increased by $1,606,400.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2024 only.
new text end

Sec. 24. new text begin CRISIS RESPONSE AND CRIMINAL INVESTIGATION GRANTS;
SPECIAL REVENUE ACCOUNT; APPROPRIATION.
new text end

new text begin The crisis response and criminal investigation account is created in the special revenue
fund consisting of money deposited, donated, allotted, transferred, or otherwise provided
to the account. Of the amount in the account, up to $5,000,000 in each of fiscal years 2024,
2025, 2026, 2027, and 2028 are appropriated to the commissioner of public safety for grants
administered by the Office of Justice Programs to be awarded to local law enforcement
agencies or local governments to improve responses to situations involving individuals
experiencing a mental health crisis and to improve criminal investigations. The Office of
Justice Programs may use up to 2.5 percent of the annual appropriation to administer the
grants. This appropriation is in addition to any appropriation enacted for the same purpose
during the 2023 regular legislative session.
new text end

Sec. 25. new text begin CRISIS RESPONSE AND CRIMINAL INVESTIGATION ACCOUNT;
TRANSFER.
new text end

new text begin $25,000,000 in fiscal year 2024 is transferred from the general fund to the crisis response
and criminal investigation account in the special revenue fund. The base for this appropriation
is $0 in fiscal year 2025 and thereafter. Any balance in the account on June 30, 2028, cancels
to the general fund. This transfer is in addition to any transfer enacted for the same purpose
during the 2023 regular legislative session.
new text end

Sec. 26. new text begin TRIBAL NATION HOUSING AND HOMELESSNESS AID.
new text end

new text begin (a) $44,000,000 in fiscal year 2024 is appropriated from the general fund to the
commissioner of revenue for direct aid to Tribal Nations for homelessness prevention,
emergency shelter, and other needs related to housing instability and homelessness.
new text end

new text begin (b) The commissioner of revenue may pay aid under this section to the governing body
of the:
new text end

new text begin (1) Fond du Lac Band;
new text end

new text begin (2) Grand Portage Band;
new text end

new text begin (3) Mille Lacs Band;
new text end

new text begin (4) White Earth Band;
new text end

new text begin (5) Bois Forte Band;
new text end

new text begin (6) Leech Lake Band;
new text end

new text begin (7) Red Lake Nation;
new text end

new text begin (8) Upper Sioux Community;
new text end

new text begin (9) Lower Sioux Community;
new text end

new text begin (10) Shakopee Mdewakanton Sioux Community; and
new text end

new text begin (11) Prairie Island Mdewakanton Dakota Community.
new text end

new text begin (c) To receive aid under this section, a Tribal Nation must apply in writing to the
commissioner of revenue on or before July 1, 2023. As part of the application, the Tribal
Nation must agree to spend the aid money for homelessness prevention, emergency shelter,
and other needs related to housing instability and homelessness.
new text end

new text begin (d) Each Tribal Nation must be paid an amount equal to the amount appropriated in
paragraph (a) divided by the number of Tribal Nations that timely applied for aid. The
commissioner of revenue shall certify the amount of aid payable to each Tribal Nation on
or before September 1, 2023.
new text end

new text begin (e) The commissioner of revenue must distribute all aid payable under this section on
or before December 26, 2023.
new text end

new text begin (f) On or before February 1, 2024, a recipient of aid under this section must provide a
report to the commissioner of revenue in the form prescribed by the commissioner of revenue.
The commissioner of revenue must compile and provide the reports to the chairs and ranking
minority members of the legislative committees with jurisdiction over taxes.
new text end

new text begin (g) The appropriation under this section is onetime.
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 APPROPRIATION; CITY OF SPRING GROVE FIRE REMEDIATION
GRANT.
new text end

new text begin $250,000 in fiscal year 2024 is appropriated from the general fund to the commissioner
of revenue for a grant to the city of Spring Grove to remediate the effects of the fire in the
city on December 22, 2022. The grant recipient must use the money appropriated under this
section for remediation costs incurred by public or private entities as a result of the fire,
including disaster recovery, infrastructure, reimbursement for emergency personnel costs,
reimbursement for equipment costs, and reimbursement for property tax abatements. This
appropriation is onetime and is available until June 30, 2025.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023.
new text end

Sec. 28. new text begin APPROPRIATION; CLASS 4D(1) LOW-INCOME RENTAL PROPERTY
2025 AND 2026 TRANSITION AID.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "4d(1) property" means class 4d(1) low-income rental property under Minnesota
Statutes, section 273.13, subdivision 25.
new text end

new text begin (c) "Base assessment year" means assessment year 2023.
new text end

new text begin (d) "City" means a home rule charter or statutory city.
new text end

new text begin (e) "Modified transition tax capacity" means the product of (1) one minus the transition
ratio for the city, times (2) the transition tax capacity for the city.
new text end

new text begin (f) "Transition ratio" means the ratio of (1) the net tax capacity of 4d(1) property for the
city in the base assessment year calculated using the classification rates and first-tier limit
in effect for 4d(1) property for taxes payable in 2025, to (2) the net tax capacity of 4d(1)
property for the city in the base assessment year calculated using the classification rates
and first-tier limit in effect for 4d(1) property for taxes payable in 2024.
new text end

new text begin (g) "Transition tax capacity" means the greater of zero or the difference between (1) the
net tax capacity of 4d(1) property for the city in the base assessment year, minus (2) two
percent of the total net tax capacity for the city in the base assessment year.
new text end

new text begin Subd. 2. new text end

new text begin Aid amount. new text end

new text begin In 2025 and 2026 only, transition aid for a city equals the product
of (1) the city's tax rate for taxes payable in 2024, times (2) the modified transition tax
capacity for the city.
new text end

new text begin Subd. 3. new text end

new text begin Administration; payment schedule. new text end

new text begin (a) For purposes of this section, net tax
capacity must be determined by the commissioner of revenue based on information available
to the commissioner as of July 15, 2024.
new text end

new text begin (b) The commissioner of revenue must certify the aid amount to be paid to each city
before August 1 of the year preceding the aid distribution year and must pay the aid in two
installments on the dates specified in Minnesota Statutes, section 477A.015.
new text end

new text begin Subd. 4. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to pay transition aid under this section
is annually 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 for aid payable in calendar year 2025
and 2026 only.
new text end

Sec. 29. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2022, sections 477A.011, subdivisions 30a, 38, 42, and 45; and
477A.013, subdivision 13, 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 aids payable in calendar year 2024
and thereafter.
new text end

ARTICLE 5

SALES AND USE TAXES

Section 1.

Minnesota Statutes 2022, section 38.27, subdivision 4, is amended to read:

Subd. 4.

Use of a portion of county fair revenues.

A county agricultural society must
annually determine the amount of sales tax savings attributable to section 297A.70,
subdivision 21 deleted text begin . If the county agricultural society owns its own fairgrounds, it deleted text end new text begin , and new text end must use
the amount equal to the sales tax savings to maintain, improve, or expand society-owned
buildings and facilities on the fairgrounds deleted text begin ; otherwise it must transfer this amount to the
owner of the fairgrounds. An owner that receives a transfer of money under this subdivision
must use the transferred amount to maintain, improve, and expand entity owned buildings
and facilities on the county fairgrounds 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. 2.

Minnesota Statutes 2022, section 297A.67, is amended by adding a subdivision to
read:

new text begin Subd. 39. new text end

new text begin Firearm storage units. new text end

new text begin Secure firearm storage units are exempt. For the
purposes of this subdivision:
new text end

new text begin (1) "secure firearm storage unit" means a container that is fully enclosed and locked by
a padlock, keylock, combination lock, or similar locking device, and is either specifically
designed for the safe storage of firearms or sold for that purpose by a federally licensed
firearms dealer; and
new text end

new text begin (2) "firearm" has the meaning provided in section 97A.015, subdivision 19.
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, 2023.
new text end

Sec. 3.

Minnesota Statutes 2022, section 297A.68, is amended by adding a subdivision to
read:

new text begin Subd. 35b. new text end

new text begin Fiber and conduit; broadband and Internet access. new text end

new text begin Fiber and conduit
purchased or leased for use directly by a broadband or Internet service provider, primarily
in the provision of broadband or Internet access services that are ultimately to be sold at
retail, are exempt.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after June
30, 2023.
new text end

Sec. 4.

Minnesota Statutes 2022, section 297A.68, is amended by adding a subdivision to
read:

new text begin Subd. 46. new text end

new text begin Amenities included with the privilege of admission. new text end

new text begin (a) The sale of amenities,
including but not limited to food and beverages, parking services, and promotional items,
that are included in the sales price of the privilege of admission to athletic events and places
of amusement under section 297A.61, subdivision 3, paragraph (m), are exempt when sold
by a seller of the privilege of admission.
new text end

new text begin (b) Under this subdivision, the exempt portion of the sale of the privilege of admission
is equal to the purchase price of the amenity if sales or use tax was paid on the amenity
when purchased by the seller.
new text end

new text begin (c) The seller must retain records documenting the price and tax paid by the seller when
purchasing the amenities and the price and tax collected when the seller sells the privilege
of admission.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after June 30, 2022.
new text end

Sec. 5.

Minnesota Statutes 2022, section 297A.70, subdivision 7, is amended to read:

Subd. 7.

Hospitals, outpatient surgical centers, deleted text begin and deleted text end critical access dental providers new text begin ,
and blood centers new text end .

(a) Sales, except for those listed in paragraph deleted text begin (d) deleted text end new text begin (e) new text end , to a hospital are
exempt, if the items purchased are used in providing hospital services. For purposes of this
subdivision, "hospital" means a hospital organized and operated for charitable purposes
within the meaning of section 501(c)(3) of the Internal Revenue Code, and licensed under
chapter 144 or by any other jurisdiction, and "hospital services" are services authorized or
required to be performed by a "hospital" under chapter 144.

(b) Sales, except for those listed in paragraph deleted text begin (d) deleted text end new text begin (e) new text end , to an outpatient surgical center are
exempt, if the items purchased are used in providing outpatient surgical services. For purposes
of this subdivision, "outpatient surgical center" means an outpatient surgical center organized
and operated for charitable purposes within the meaning of section 501(c)(3) of the Internal
Revenue Code, and licensed under chapter 144 or by any other jurisdiction. For the purposes
of this subdivision, "outpatient surgical services" means: (1) services authorized or required
to be performed by an outpatient surgical center under chapter 144; and (2) urgent care. For
purposes of this subdivision, "urgent care" means health services furnished to a person
whose medical condition is sufficiently acute to require treatment unavailable through, or
inappropriate to be provided by, a clinic or physician's office, but not so acute as to require
treatment in a hospital emergency room.

(c) Sales, except for those listed in paragraph deleted text begin (d) deleted text end new text begin (e) new text end , to a critical access dental provider
are exempt, if the items purchased are used in providing critical access dental care services.
For the purposes of this subdivision, "critical access dental provider" means a dentist or
dental clinic that qualifies under section 256B.76, subdivision 4, paragraph (b), and, in the
previous calendar year, had no more than 15 percent of its patients covered by private dental
insurance.

(d) new text begin Sales, except for those listed in paragraph (e), to a blood center are exempt, if the
items purchased are used in providing blood collection and distribution services.
Notwithstanding paragraph (e), leases by a blood center of a truck, as defined in section
168.002; a bus, as defined in section 168.002; or a passenger automobile, as defined in
section 168.002, if the truck, bus, or automobile is used for carrying out the purposes of the
blood center, including the collection of blood from donors, setting up of blood drives, and
delivering blood to hospitals are exempt. For purposes of this subdivision, "blood center"
means an entity organized and operated for charitable purposes under section 501(c)(3) of
the Internal Revenue Code that is:
new text end

new text begin (1) registered as a blood establishment pursuant to Code of Federal Regulations, title
21, part 607;
new text end

new text begin (2) a human cells, tissues, and cellular and tissue-based products establishment under
Code of Federal Regulations, title 21, part 1271, subpart B; or
new text end

new text begin (3) a clinical lab that performs infectious disease testing, blood typing, and other
laboratory testing services in connection with blood processing for transfusion into humans
under Code of Federal Regulations, title 42, part 493.
new text end

new text begin (e) new text end This exemption does not apply to the following products and services:

(1) purchases made by a clinic, physician's office, or any other medical facility not
operating as a hospital, outpatient surgical center, deleted text begin or deleted text end critical access dental provider new text begin , or blood
center new text end , even though the clinic, office, or facility may be owned and operated by a hospital,
outpatient surgical center, deleted text begin or deleted text end critical access dental provider new text begin , or blood center new text end ;

(2) sales under section 297A.61, subdivision 3, paragraph (g), clause (2), and prepared
food, candy, and soft drinks;

(3) building and construction materials used in constructing buildings or facilities that
will not be used principally by the hospital, outpatient surgical center, deleted text begin or deleted text end critical access
dental provider new text begin , or blood center new text end ;

(4) building, construction, or reconstruction materials purchased by a contractor or a
subcontractor as a part of a lump-sum contract or similar type of contract with a guaranteed
maximum price covering both labor and materials for use in the construction, alteration, or
repair of a hospital, outpatient surgical center, deleted text begin or deleted text end critical access dental provider new text begin , or blood
center new text end ; or

(5) the leasing of a motor vehicle as defined in section 297B.01, subdivision 11.

deleted text begin (e) deleted text end new text begin (f) new text end A limited liability company also qualifies for exemption under this subdivision
if (1) it consists of a sole member that would qualify for the exemption, and (2) the items
purchased qualify for the exemption.

deleted text begin (f) deleted text end new text begin (g) new text end An entity that contains both a hospital and a nonprofit unit may claim this
exemption on purchases made for both the hospital and nonprofit unit provided that:

(1) the nonprofit unit would have qualified for exemption under subdivision 4; and

(2) the items purchased would have qualified for the exemption.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after December 31, 2019.
new text end

Sec. 6.

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

Subd. 19.

Nonprofit snowmobile clubs; machinery and equipment.

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

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

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after June
30, 2023.
new text end

Sec. 7.

Minnesota Statutes 2022, section 297A.70, subdivision 21, is amended to read:

Subd. 21.

County agricultural society sales at county fairs.

new text begin (a) The following new text end sales
by a county agricultural society deleted text begin during a regularly scheduled county fair are exempt. For
purposes of this subdivision, sales include deleted text end new text begin are exempt:
new text end

new text begin (1) new text end admissions to and parking at the county fairgrounds deleted text begin , deleted text end new text begin ;
new text end

new text begin (2) new text end admissions to separately ticketed events run by the county agricultural society deleted text begin , deleted text end new text begin ; new text end and

new text begin (3) new text end concessions and other sales made by employees or volunteers of the county
agricultural society on the county fairgrounds.

deleted text begin This deleted text end new text begin (b) The new text end exemption new text begin under paragraph (a) new text end does not apply to sales deleted text begin or deleted text end new text begin for new text end events deleted text begin by a
county agricultural society deleted text end held at a time other than at the time of the regularly scheduled
county fair, or events not held on the county fairgrounds.

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 2022, section 297A.71, subdivision 51, is amended to read:

Subd. 51.

Properties destroyed by fire.

(a) Building materials and supplies used or
consumed in, and equipment incorporated into, the construction or replacement of real
property affected by, and capital equipment to replace equipment destroyed in, the fire on
March 11, 2018, in the city of Mazeppa are exempt. The tax must be imposed and collected
as if the rate under section 297A.62, subdivision 1, applied and then refunded in the manner
provided in section 297A.75. For purposes of this subdivision, "capital equipment" includes
durable equipment used in a restaurant for food storage, preparation, and serving.

(b) The exemption under this subdivision applies to sales and purchases made after
March 11, 2018, and before January 1, deleted text begin 2022 deleted text end new text begin 2025. Notwithstanding section 289A.40, a
claim for refund may be filed until June 1, 2028 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for sales and purchases
made after March 11, 2018, and before January 1, 2025.
new text end

Sec. 9.

Minnesota Statutes 2022, section 297A.71, subdivision 52, is amended to read:

Subd. 52.

Construction; certain local government facilities.

(a) Materials and supplies
used in and equipment incorporated into the construction, reconstruction, upgrade, expansion,
or remodeling of the following local government owned facilities are exempt:

(1) a new fire station, which includes firefighting, emergency management, public safety
training, and other public safety facilities in the city of Monticello if materials, supplies,
and equipment are purchased after January 31, 2019, and before January 1, 2022;

(2) a new fire station, which includes firefighting and public safety training facilities
and public safety facilities, in the city of Inver Grove Heights if materials, supplies, and
equipment are purchased after June 30, 2018, and before January 1, 2021;

(3) a fire station and police station, including access roads, lighting, sidewalks, and
utility components, on or adjacent to the property on which the fire station or police station
are located that are necessary for safe access to and use of those buildings, in the city of
Minnetonka if materials, supplies, and equipment are purchased after May 23, 2019, and
before January 1, 2022;

(4) the school building in Independent School District No. 414, Minneota, if materials,
supplies, and equipment are purchased after January 1, 2018, and before January 1, 2021;

(5) a fire station in the city of Mendota Heights, if materials, supplies, and equipment
are purchased after December 31, 2018, and before January 1, 2021; deleted text begin and
deleted text end

(6) a Dakota County law enforcement collaboration center, also known as the Safety
and Mental Health Alternative Response Training (SMART) Center, if materials, supplies,
and equipment are purchased after June 30, 2019, and before July 1, 2021 deleted text begin . deleted text end new text begin ; and
new text end

new text begin (7) the North Metro Regional Public Safety Training Facility in Maple Grove, if materials,
supplies, and equipment are purchased after August 31, 2021, and before December 31,
2023.
new text end

(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 provided in section 297A.75.

(c) The total refund for the project listed in paragraph (a), clause (3), must not exceed
$850,000.

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective retroactively for sales
and purchases made after August 31, 2021, and before December 31, 2023.
new text end

Sec. 10. new text begin SALES AND USE TAX EXEMPTION; CERTAIN NATURAL GAS FEES.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption. new text end

new text begin Fees related to natural gas sold for residential use to customers
who were metered and billed as residential users and who used natural gas for their primary
source of residential heat are exempt from sales and use tax imposed under Minnesota
Statutes, chapter 297A, for purposes of the billing periods May to October, provided that:
new text end

new text begin (1) the fee for the natural gas is subject to a cost recovery plan for the price increase in
natural gas during the period from February 13, 2021, to February 17, 2021, identified in
docket G-999/CI-21-135 before the Minnesota Public Utilities Commission; and
new text end

new text begin (2) the fee is separately stated and labeled as a fee pursuant to a cost recovery plan under
clause (1).
new text end

new text begin Subd. 2. new text end

new text begin Application; refund. new text end

new text begin (a) By October 1, 2023, each utility must apply to the
commissioner of revenue for a refund of sales taxes collected and remitted pursuant to
Minnesota Statutes, section 297A.77, on fees for sales and purchases of natural gas subject
to a cost recovery plan under subdivision 1, clause (1), that were added to residential
customers' bills for the period beginning September 1, 2021, and ending June 30, 2023.
new text end

new text begin (b) The provisions of Minnesota Statutes, section 289A.50, subdivision 2, paragraphs
(a), (b), and (d), apply to refunds issued under this subdivision. For purposes of this
subdivision, "utility" means a utility subject to the cost recovery plan under subdivision 1,
clause (1). Within 90 days after the date the commissioner issues the refund under Minnesota
Statutes, section 289A.50, subdivision 2, paragraph (a), to the utility, the utility must provide
a plan to the Minnesota Public Utilities Commission for crediting taxes exempt under
subdivision 1 to residential customers.
new text end

new text begin (c) The plan must be approved by the Minnesota Public Utilities Commission. Any
amount not refunded or credited to a residential customer by a utility within 60 days of
approval of the plan must be returned to the commissioner by the utility.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for fees applied to sales
and purchases of natural gas that are billed from September 1, 2021, to December 31, 2026.
new text end

Sec. 11. new text begin BELTRAMI COUNTY; SALES TAX EXEMPTION FOR CONSTRUCTION
MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used or consumed in and
equipment incorporated into the construction of a new county jail in Beltrami County are
exempt from sales and use tax under Minnesota Statutes, chapter 297A, provided that the
materials, supplies, and equipment are purchased after March 31, 2024, and before January
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, subdivision 1, applied, and then refunded in the same manner provided for projects
under Minnesota Statutes, section 297A.75, subdivision 1, clause (17).
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 for sales and purchases made after March
31, 2024, and before January 1, 2028.
new text end

Sec. 12. new text begin CITY OF CHANHASSEN; SALES TAX EXEMPTION FOR
CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used or consumed in and
equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation,
or remodeling of a new city hall and senior center, council chambers, and park amenities
in the city of Chanhassen 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 February 1, 2027.
new text end

new text begin (b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied and then refunded in the same manner provided in Minnesota
Statutes, section 297A.75, subdivision 1, clause (17).
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 for sales and purchases made after January
31, 2024, and before February 1, 2027.
new text end

Sec. 13. new text begin CHISHOLM PUBLIC SCHOOLS; SALES TAX EXEMPTION FOR
CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used in and equipment
incorporated into the construction and renovation projects for Chisholm Elementary School,
Chisholm High School, and Vaughan Steffensrud School in Independent School District
No. 695, Chisholm Public Schools, are exempt from sales and use tax imposed under
Minnesota Statutes, chapter 297A. The exemption under this subdivision only applies if
materials, supplies, and equipment are purchased after December 31, 2021, and before
January 1, 2025.
new text end

new text begin (b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied, and then refunded in the same manner provided for projects
under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible
purchases must not be issued until after June 30, 2023.
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 December 31, 2021, and before January 1, 2025.
new text end

Sec. 14. new text begin DULUTH PUBLIC SCHOOLS; SALES TAX EXEMPTION FOR
CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used in and equipment
incorporated into the construction of an administrative building and a transportation facility
in Independent School District No. 709, Duluth Public Schools, are exempt from sales and
use tax imposed under Minnesota Statutes, chapter 297A, if materials, supplies, and
equipment are purchased after June 30, 2021, and before January 1, 2025.
new text end

new text begin (b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied, and then refunded in the same manner provided for projects
under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible
purchases must not be issued until after June 30, 2023.
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 June 30, 2021, and before January 1, 2025.
new text end

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

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used in and equipment
incorporated into the following projects in Independent School District No. 696, Ely Public
Schools, are exempt from sales and use tax imposed under Minnesota Statutes, chapter
297A, if materials, supplies, and equipment are purchased after May 1, 2019, and before
January 1, 2024:
new text end

new text begin (1) renovations to the elementary school building and high school building; and
new text end

new text begin (2) construction of a building that connects the elementary school and high school
buildings containing classrooms, a common area, a gymnasium, and administrative offices.
new text end

new text begin (b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied and then refunded in the same manner provided for projects
under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible
purchases must not be issued until after June 30, 2023. Notwithstanding Minnesota Statutes,
section 289A.40, a claim for refund may be filed until June 1, 2027.
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 May 1, 2019, and before January 1, 2024.
new text end

Sec. 16. new text begin HIBBING PUBLIC SCHOOLS; SALES TAX EXEMPTION FOR
CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used in and equipment
incorporated into the following projects in the city of Hibbing are exempt from sales and
use tax imposed under Minnesota Statutes, chapter 297A, if materials, supplies, and
equipment are purchased after May 1, 2019, and before January 1, 2025:
new text end

new text begin (1) the addition of an Early Childhood Family Education Center to an existing elementary
school;
new text end

new text begin (2) improvements to an existing athletic facility in Independent School District No. 701,
Hibbing Public Schools;
new text end

new text begin (3) a reroofing project at Hibbing Washington Elementary School; and
new text end

new text begin (4) a Hibbing High School restroom remodel project.
new text end

new text begin (b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied, and then refunded in the same manner provided for projects
under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible
purchases must not be issued until after June 30, 2023. Notwithstanding Minnesota Statutes,
section 289A.40, a claim for refund may be filed until June 1, 2028.
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 May 1, 2019, and before January 1, 2025.
new text end

Sec. 17. new text begin SALES TAX EXEMPTION FOR CONSTRUCTION MATERIALS; ITASCA
COUNTY.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used or consumed in and
equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation,
or remodeling of the Itasca County courthouse and new correctional facility are exempt
from sales and use tax under Minnesota Statutes, chapter 297A, provided that the materials,
supplies, and equipment are purchased after April 30, 2021, and before January 1, 2025.
new text end

new text begin (b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied and then refunded in the same manner provided in Minnesota
Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible purchases must
not be issued until after June 30, 2023.
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 April 30, 2021, and before January 1, 2025.
new text end

Sec. 18. new text begin MINNEAPOLIS-ST. PAUL INTERNATIONAL AIRPORT; SALES TAX
EXEMPTION FOR CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used in and equipment
incorporated into the construction, reconstruction, repair, maintenance, or improvement of
public infrastructure at the Minneapolis-St. Paul International Airport purchased by a
contractor or subcontractor are exempt from sales and use tax imposed under Minnesota
Statutes, chapter 297A, if materials, supplies, and equipment are purchased after June 30,
2023, and before July 1, 2024.
new text end

new text begin (b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied and then refunded in the same manner provided for projects
under Minnesota Statutes, section 297A.75, subdivision 1, clause (17).
new text end

new text begin (c) The total amount of refunds issued for the exemption under paragraph (a) must not
exceed $8,000,000.
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 for sales and purchases made after June
30, 2023, and before July 1, 2024.
new text end

Sec. 19. new text begin CITY OF MOORHEAD; SALES 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 regional library and community center in the city of Moorhead are exempt
from sales and use tax under Minnesota Statutes, chapter 297A, provided that the materials,
supplies, and equipment are purchased after February 29, 2024, and before April 1, 2027.
new text end

new text begin (b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied and then refunded in the same manner provided in Minnesota
Statutes, section 297A.75, subdivision 1, clause (17).
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 for sales and purchases made after
February 29, 2024, and before April 1, 2027.
new text end

Sec. 20. new text begin NASHWAUK-KEEWATIN PUBLIC SCHOOLS; SALES TAX EXEMPTION
FOR CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used in and equipment
incorporated into the construction of a new school building and attached community wellness
center to replace Keewatin Elementary School and the Nashwauk High School in Independent
School District No. 319, Nashwauk-Keewatin Public Schools, are exempt from sales and
use tax imposed under Minnesota Statutes, chapter 297A, if materials, supplies, and
equipment are purchased after December 31, 2021, and before January 1, 2025.
new text end

new text begin (b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied, and then refunded in the same manner provided for projects
under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible
purchases must not be issued until after June 30, 2023.
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 December 31, 2021, and before January 1, 2025.
new text end

Sec. 21. new text begin NORTHERN LIGHTS ACADEMY; SALES TAX EXEMPTION FOR
CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used in and equipment
incorporated into the following projects at Northern Lights Academy Cooperative No. 6096
are exempt from sales and use tax imposed under Minnesota Statutes, chapter 297A, if
materials, supplies, and equipment are purchased after December 31, 2021, and before
January 1, 2025:
new text end

new text begin (1) the construction of a new addition to the existing facility; and
new text end

new text begin (2) renovations and improvements to the existing facility.
new text end

new text begin (b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied, and then refunded in the same manner provided for projects
under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible
purchases must not be issued until after June 30, 2023.
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 December 31, 2021, and before January 1, 2025.
new text end

Sec. 22. new text begin NORTHLAND LEARNING CENTER; SALES TAX EXEMPTION FOR
CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used in and equipment
incorporated into the following projects at Independent School District No. 6076 are exempt
from sales and use tax imposed under Minnesota Statutes, chapter 297A, if materials,
supplies, and equipment are purchased after December 31, 2021, and before January 1,
2025:
new text end

new text begin (1) the construction of a new addition to the James Madison Building for Northland
Learning Center; and
new text end

new text begin (2) renovations and improvements to the existing facility.
new text end

new text begin (b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied, and then refunded in the same manner provided for projects
under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible
purchases must not be issued until after June 30, 2023.
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 December 31, 2021, and before January 1, 2025.
new text end

Sec. 23. new text begin CITY OF OAKDALE; SALES TAX EXEMPTION FOR CONSTRUCTION
MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used or consumed in and
equipment incorporated into the construction of a new public works facility in the city of
Oakdale are exempt from sales and use tax under Minnesota Statutes, chapter 297A, provided
that the materials, supplies, and equipment are purchased after August 31, 2023, and before
January 1, 2027.
new text end

new text begin (b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied and then refunded in the same manner provided for projects
under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible
purchases must not be issued until after June 30, 2023.
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 for sales and purchases made after August
31, 2023, and before January 1, 2027.
new text end

Sec. 24. new text begin CITY OF RAMSEY; SALES TAX EXEMPTION FOR CONSTRUCTION
MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

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

new text begin (b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied and then refunded in the same manner provided in Minnesota
Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible purchases must
not be issued until after June 30, 2023.
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 December 31, 2022.
new text end

Sec. 25. new text begin RED LAKE COUNTY SCHOOL DISTRICT; SALES TAX EXEMPTION
FOR CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used in and equipment
incorporated into the construction of a new school in Independent School District No. 2906,
Red Lake County School District, are exempt from sales and use tax imposed under
Minnesota Statutes, chapter 297A, if materials, supplies, and equipment are purchased after
December 31, 2020, and before January 1, 2026.
new text end

new text begin (b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied and then refunded in the same manner provided for projects
under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible
purchases must not be issued until after June 30, 2023.
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 December 31, 2020, and before January 1, 2026.
new text end

Sec. 26. new text begin RED ROCK CENTRAL SCHOOL DISTRICT; SALES TAX EXEMPTION
FOR CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used in and equipment
incorporated into the construction of a new prekindergarten through grade 12 learning
facility in Independent School District No. 2884, Red Rock Central School District, are
exempt from sales and use tax imposed under Minnesota Statutes, chapter 297A, if materials,
supplies, and equipment are purchased after December 31, 2021, and before July 1, 2025.
new text end

new text begin (b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied and then refunded in the same manner provided for projects
under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible
purchases must not be issued until after June 30, 2023.
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 December 31, 2021, and before July 1, 2025.
new text end

Sec. 27. new text begin ROCK RIDGE PUBLIC SCHOOLS; SALES TAX EXEMPTION FOR
CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used in and equipment
incorporated into the construction of two new elementary school buildings and a new high
school building in Independent School District No. 2909, Rock Ridge Public Schools, are
exempt from sales and use tax imposed under Minnesota Statutes, chapter 297A, if materials,
supplies, and equipment are purchased after May 1, 2019, and before January 1, 2024.
new text end

new text begin (b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied, and then refunded in the same manner provided for projects
under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible
purchases must not be issued until after June 30, 2023. Notwithstanding Minnesota Statutes,
section 289A.40, a claim for refund may be filed until June 1, 2027.
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 May 1, 2019, and before January 1, 2024.
new text end

Sec. 28. new text begin CITY OF SPRING GROVE; SALES TAX EXEMPTION FOR
CONSTRUCTION MATERIALS AND CAPITAL EQUIPMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) The sale and purchase of the following items
are exempt from sales and use tax imposed under Minnesota Statutes, chapter 297A, if the
items are used to repair, replace, or otherwise recover from real and personal property
damage that occurred during the fire on December 22, 2022, in the city of Spring Grove:
new text end

new text begin (1) building materials and supplies used or consumed in, and equipment incorporated
into, the construction, replacement, or repair of real property; and
new text end

new text begin (2) capital equipment to replace equipment destroyed in the fire.
new text end

new text begin (b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied and then refunded in the same manner provided for projects
under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). The exemption under
paragraph (a) applies to sales and purchases made after December 22, 2022, and before
January 1, 2028. Refunds for eligible purchases must not be issued until after June 30, 2023.
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 December 22, 2022, and before January 1, 2028.
new text end

Sec. 29. new text begin SPRINGFIELD SCHOOL DISTRICT; SALES TAX EXEMPTION FOR
CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used in and equipment
incorporated into the following projects for Independent School District No. 85, Springfield
School District, are exempt from sales and use tax imposed under Minnesota Statutes,
chapter 297A, if materials, supplies, and equipment are purchased after December 31, 2021,
and before July 1, 2025:
new text end

new text begin (1) construction of a main secure entrance;
new text end

new text begin (2) construction of a required tornado storm shelter and related safety, security, and
accessibility improvements;
new text end

new text begin (3) installation of HVAC improvements;
new text end

new text begin (4) renovation and interior modifications necessary to convert the existing elementary
school gymnasium for use for career and technical education trades and an auto shop; and
new text end

new text begin (5) addition of a new school gymnasium, including the construction and improvement
of new locker rooms, and the renovation and repurposing of existing locker rooms for use
for cafeteria improvements and school programming needs.
new text end

new text begin (b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied and then refunded in the same manner provided for projects
under Minnesota Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible
purchases must not be issued until after June 30, 2023.
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 December 31, 2021, and before July 1, 2025.
new text end

Sec. 30. new text begin CITY OF WAYZATA; SALES TAX EXEMPTION FOR CONSTRUCTION
MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used or consumed in and
equipment incorporated into the following projects in the city of Wayzata are exempt from
sales and use tax under Minnesota Statutes, chapter 297A, provided that the materials,
supplies, and equipment are purchased after March 31, 2020, and before July 1, 2025:
new text end

new text begin (1) expansion and remodeling of Depot Park;
new text end

new text begin (2) construction of community docks for purposes of access from Lake Minnetonka;
new text end

new text begin (3) construction of a lakeside boardwalk of approximately 1,500 lineal feet;
new text end

new text begin (4) shoreline restoration, including installation of native plants, trees, and natural habitat;
new text end

new text begin (5) restoration of Section Foreman House, including installation of a learning center to
provide indoor and outdoor classroom and community space;
new text end

new text begin (6) construction of Eco Park, including shoreline restoration and marsh and water quality
improvement, a pier extension of the lakeside boardwalk, and creation of eco-living
classrooms;
new text end

new text begin (7) construction of a public plaza with a restroom, 9/11 memorial, interactive water
display, and gathering space;
new text end

new text begin (8) construction of a regional multiuse trail; and
new text end

new text begin (9) construction of railroad crossings.
new text end

new text begin (b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied and then refunded in the same manner provided in Minnesota
Statutes, section 297A.75, subdivision 1, clause (17). Refunds for eligible purchases must
not be issued until after June 30, 2023.
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 March 31, 2020, and before January 1, 2025.
new text end

Sec. 31. new text begin CITY OF WOODBURY; SALES TAX EXEMPTION FOR
CONSTRUCTION MATERIALS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption; refund. new text end

new text begin (a) Materials and supplies used or consumed in and
equipment incorporated into the construction, reconstruction, upgrade, expansion, renovation,
or remodeling of the Central Park project in 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 June 30, 2023, and before January 1, 2026.
new text end

new text begin (b) The tax must be imposed and collected as if the rate under Minnesota Statutes, section
297A.62, subdivision 1, applied and then refunded in the same manner provided for projects
under Minnesota Statutes, section 297A.75, subdivision 1, clause (17).
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 for sales and purchases made after June
30, 2023, and before January 1, 2026.
new text end

ARTICLE 6

MINERALS

Section 1.

Minnesota Statutes 2022, section 272.02, subdivision 73, is amended to read:

Subd. 73.

Property subject to taconite production tax or deleted text begin net deleted text end new text begin gross new text end proceeds tax.

(a)
Real and personal property described in section 298.25 is exempt to the extent the tax on
taconite and iron sulphides under section 298.24 is described in section 298.25 as being in
lieu of other taxes on such property. This exemption applies for taxes payable in each year
that the tax under section 298.24 is payable with respect to such property.

(b) Deposits of mineral, metal, or energy resources the mining of which is subject to
taxation new text begin or the minimum payment new text end under section 298.015 are exempt.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with assessment year 2023.
new text end

Sec. 2.

Minnesota Statutes 2022, section 273.1341, is amended to read:

273.1341 TACONITE ASSISTANCE AREA.

A "taconite assistance area" means the geographic area that falls within the boundaries
of a school district that contains:

(1) a municipality in which the assessed valuation of unmined iron ore on May 1, 1941,
was not less than 40 percent of the assessed valuation of all real property; deleted text begin or
deleted text end

(2) a municipality in which on January 1, 1977, or the applicable assessment date, there
is a taconite concentrating plant or where taconite is mined or quarried or where there is
located an electric generating plant which qualifies as a taconite facility deleted text begin . deleted text end new text begin ; or
new text end

new text begin (3) a municipality:
new text end

new text begin (i) that is located in a county that contains a school district described in clause (1) or
(2); and
new text end

new text begin (ii) where active mining of materials subject to the tax under section 298.015, subdivision
1, is occurring, or where a mine subject to the minimum payment under section 298.015,
subdivision 3, is located.
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, 2022.
new text end

Sec. 3.

Minnesota Statutes 2022, section 297A.68, subdivision 4, is amended to read:

Subd. 4.

Taconite, other ores, metals, or minerals; production materials.

Mill liners,
grinding rods, and grinding balls that are substantially consumed in the production of taconite
or other ores, metals, or minerals are exempt when sold to or stored, used, or consumed by
persons taxed under the in-lieu or deleted text begin net deleted text end new text begin gross new text end proceeds provisions of chapter 298.

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 2022, section 298.015, is amended to read:

298.015 deleted text begin NET deleted text end new text begin GROSS new text end PROCEEDS TAX ON MINING.

Subdivision 1.

Tax imposed.

A person engaged in the business of mining shall pay to
the state of Minnesota for distribution as provided in section 298.018 a deleted text begin net deleted text end new text begin gross new text end proceeds
tax equal to deleted text begin two deleted text end new text begin 0.4 new text end percent of the deleted text begin net deleted text end new text begin gross new text end proceeds from mining in Minnesota. The tax
applies to all ores, metals, and minerals mined, extracted, produced, or refined within the
state of Minnesota except for sand, silica sand, gravel, building stone, crushed rock,
limestone, granite, dimension granite, dimension stone, horticultural peat, clay, soil, iron
ore, and taconite concentrates. The tax is in addition to all other taxes provided for by law.

Subd. 2.

deleted text begin Net deleted text end new text begin Gross new text end proceeds.

For purposes of this section, the term " deleted text begin net deleted text end new text begin gross new text end proceeds"
means the gross proceeds from mining, as defined in section 298.016 deleted text begin , less the deductions
for purposes of determining taxable income under section 298.01, subdivision 3b, applied
to the mining, production, processing, beneficiation, smelting, or refining of metal or mineral
products. No other credits or deductions shall apply to this tax deleted text end .

new text begin Subd. 3. new text end

new text begin Minimum payment. new text end

new text begin (a) A person who has obtained all required permits to
mine all ores and metals, except for sand, silica sand, gravel, building stone, crushed rock,
limestone, granite, dimension granite, dimension stone, horticultural peat, clay, soil, iron
ore, and iron concentrates, is annually subject to the minimum payment under this
subdivision, unless:
new text end

new text begin (1) the tax imposed on the individual under subdivision 1 in a given year is greater than
zero; or
new text end

new text begin (2) the person demonstrates to the commissioner of revenue that it is legally prohibited
from engaging in the business of mining under a permit it has obtained.
new text end

new text begin (b) The annual payment under this subdivision is (1) $2,000,000, multiplied by (2) the
number of months in a calendar year the individual is subject to the minimum payment
under this subdivision, as determined under paragraph (a), divided by 12.
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, 2022.
new text end

Sec. 5.

Minnesota Statutes 2022, section 298.018, subdivision 1, is amended to read:

Subdivision 1.

Within taconite assistance area.

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

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

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

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

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

(5) deleted text begin 20 deleted text end new text begin ten new text end percent to the county within which the minerals or energy resources are mined
or extracted, or within which the concentrate was produced. If the mining and concentration,
or different steps in either process, are carried on in more than one county, distribution
among the counties must be based on the apportionment formula prescribed in clause (1),
provided that any county receiving distributions under this clause shall pay one percent of
its proceeds to the Range Association of Municipalities and Schools;

(6) deleted text begin 20 deleted text end new text begin five new text end percent to St. Louis County acting as the counties' fiscal agent to be distributed
as provided in sections 273.134 to 273.136;

(7) deleted text begin five deleted text end new text begin 20 new text end percent to the commissioner of Iron Range resources and rehabilitation for
the purposes of section 298.22;

(8) three percent to the Douglas J. Johnson economic protection trust fund; deleted text begin and
deleted text end

(9) seven percent to the taconite environmental protection fund new text begin ; and
new text end

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2022, section 298.018, subdivision 1a, is amended to read:

Subd. 1a.

Distribution date.

The proceeds of the tax allocated under subdivision 1 shall
be distributed on December 15 each year. Any payment of proceeds received after December
15 shall be distributed on the next deleted text begin net deleted text end new text begin gross new text end proceeds tax distribution date.

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2022, section 298.28, subdivision 5, is amended to read:

Subd. 5.

Counties.

(a) 21.05 cents per taxable ton deleted text begin for distributions in 2015 through 2023,
and 26.05 cents per taxable ton for distributions beginning in 2024, deleted text end is allocated to counties
to be distributed, based upon certification by the commissioner of revenue, under paragraphs
(b) to (d).

(b) 10.525 cents per taxable ton shall be distributed to the county in which the taconite
is mined or quarried or in which the concentrate is produced, less any amount which is to
be distributed pursuant to paragraph (c). The apportionment formula prescribed in subdivision
2 is the basis for the distribution.

(c) 1.0 cent per taxable ton of the tax distributed to the counties under paragraph (b)
shall be paid to a county that received a distribution under this section in 2000 because there
was located in the county an electric power plant owned by and providing the primary source
of power for a taxpayer mining and concentrating taconite in a different county.

(d) 10.525 cents per taxable ton deleted text begin for distributions in 2015 through 2023, and 15.525 cents
per taxable ton for distributions beginning in 2024, deleted text end shall be paid to the county from which
the taconite was mined, quarried or concentrated to be deposited in the county road and
bridge fund. If the mining, quarrying and concentrating, or separate steps in any of those
processes are carried on in more than one county, the commissioner shall follow the
apportionment formula prescribed in subdivision 2.

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2022, section 298.28, subdivision 7a, is amended to read:

Subd. 7a.

Iron Range school consolidation and cooperatively operated school
account.

(a) The following amounts must be allocated to the commissioner of Iron Range
resources and rehabilitation to be deposited in the Iron Range school consolidation and
cooperatively operated school account that is hereby created:

(1) deleted text begin (i) deleted text end for distributions new text begin beginning new text end in 2015 deleted text begin through 2023 deleted text end , ten cents per taxable ton of the
tax imposed under section 298.24; deleted text begin and
deleted text end

deleted text begin (ii) for distributions beginning in 2024, five cents per taxable ton of the tax imposed
under section 298.24;
deleted text end

(2) the amount as determined under section 298.17, paragraph (b), clause (3); and

(3) any other amount as provided by law.

(b) Expenditures from this account may be approved as ongoing annual expenditures
and shall be made only to provide disbursements to assist school districts with the payment
of bonds that were issued for qualified school projects, or for any other school disbursement
as approved by the commissioner of Iron Range resources and rehabilitation after consultation
with the Iron Range Resources and Rehabilitation Board. For purposes of this section,
"qualified school projects" means school projects within the taconite assistance area as
defined in section 273.1341, that were (1) approved, by referendum, after April 3, 2006;
and (2) approved by the commissioner of education pursuant to section 123B.71.

(c) Beginning in fiscal year 2019, the disbursement to school districts for payments for
bonds issued under section 123A.482, subdivision 9, must be increased each year to offset
any reduction in debt service equalization aid that the school district qualifies for in that
year, under section 123B.53, subdivision 6, compared with the amount the school district
qualified for in fiscal year 2018.

(d) No expenditure under this section shall be made unless approved by the commissioner
of Iron Range resources and rehabilitation after consultation with the Iron Range Resources
and Rehabilitation Board.

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2022, section 298.28, is amended by adding a subdivision to
read:

new text begin Subd. 16. new text end

new text begin Transfer. new text end

new text begin Of the amount annually distributed to the Douglas J. Johnson
Economic Protection Trust Fund under this section, $3,500,000 shall be transferred to the
Iron Range school consolidation and cooperatively operated school account under subdivision
7a. Any remaining amount of the amount annually distributed to the Douglas J. Johnson
Economic Protection Trust Fund shall be transferred to the Iron Range resources and
rehabilitation account under subdivision 7. The transfers under this subdivision must be
made within ten days of the August payment.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with production year 2023.
new text end

Sec. 10.

Minnesota Statutes 2022, section 298.296, subdivision 4, is amended to read:

Subd. 4.

Temporary loan authority.

(a) After consultation with the advisory board,
the commissioner may use up to $7,500,000 from the corpus of the trust for loans, loan
guarantees, grants, or equity investments as provided in this subdivision. The money would
be available for loans for construction and equipping of facilities constituting (1) a value
added iron products plant, which may be either a new plant or a facility incorporated into
an existing plant that produces iron upgraded to a minimum of 75 percent iron content or
any iron alloy with a total minimum metallic content of 90 percent; or (2) a new mine or
minerals processing plant for any mineral subject to the deleted text begin net deleted text end new text begin gross new text end proceeds tax imposed
under section 298.015. A loan or loan guarantee under this paragraph may not exceed
$5,000,000 for any facility.

(b) Additionally, the commissioner, after consultation with the advisory board, may use
up to $5,500,000 from the corpus of the trust for additional grants, loans, loan guarantees,
or equity investments for the purposes set forth in paragraph (a).

(c) The commissioner, after consultation with the advisory board, may require that the
fund receive an equity percentage in any project to which it contributes under this section.

new text begin EFFECTIVE DATE. new text end

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

Sec. 11. new text begin TRANSFER 2023 DISTRIBUTION ONLY; PROPERTY TAX RELIEF
ACCOUNT.
new text end

new text begin (a) The fund established under Minnesota Statutes, section 298.28, subdivision 7, shall
receive the excess balance remaining in the fund established under Minnesota Statutes,
section 298.28, subdivision 6, after the distribution of amounts required under Minnesota
Statutes, section 298.28, subdivision 6, for the 2023 distribution. The transfer amount under
this section must not exceed $6,000,000 and must be made within ten days of the August
2023 payment. The commissioner of Iron Range resources and rehabilitation must distribute
these transferred funds as outlined in this section. The uses listed are not subject to review
or recommendation by the Iron Range Resources and Rehabilitation Board. The commissioner
must distribute the funds for the following uses:
new text end

new text begin (1) $250,000 to St. Louis County for a grant to the St. Louis County Agricultural Society
for construction and furnishing of a facility to house a food booth and equipment for the
St. Louis County 4-H Club;
new text end

new text begin (2) $100,000 to Alborn Snow Devils Inc. for trail grooming costs and equipment;
new text end

new text begin (3) $300,000 to School District No. 2142, St. Louis County Schools, for the purchase
and installation of lights at the Cherry School baseball and softball fields;
new text end

new text begin (4) $150,000 to the Seitaniemi Housebarn and Sisu Heritage Site for facility upgrades;
new text end

new text begin (5) $600,000 to the city of Aurora for downtown beautification projects, as outlined in
paragraph (c);
new text end

new text begin (6) $500,000 to School District No. 2142, St. Louis County Schools, for wastewater
upgrades at the South Ridge School;
new text end

new text begin (7) $500,000 to the city of Mountain Iron for the Outdoor Recreation Center;
new text end

new text begin (8) $100,000 to the city of Buhl for capital improvements to the city hall;
new text end

new text begin (9) $150,000 to School District No. 712, Mountain Iron-Buhl Public School, for fitness
equipment and capital upgrades to the fitness center;
new text end

new text begin (10) $100,000 to the Mesabi Sno Voyageurs Snowmobile Club for trail grooming costs
and equipment;
new text end

new text begin (11) $100,000 to the PathBlazers Snowmobile Club for trail grooming costs and
equipment;
new text end

new text begin (12) $100,000 to the Ely Igloo Snowmobile Club for trail grooming costs and equipment;
new text end

new text begin (13) $100,000 to the Voyageur Trail Society, Inc. for trail grooming costs and equipment;
new text end

new text begin (14) $200,000 to Veterans On The Lake Resort for cabin accessibility upgrades, a
handicap dock, tennis court repaving, and replacement of an underground power cable;
new text end

new text begin (15) $650,000 to School District No. 2142, St. Louis County Schools, for wastewater
upgrades at the North Woods School;
new text end

new text begin (16) $200,000 to the City of Babbitt for capital improvements to city-owned buildings;
new text end

new text begin (17) $750,000 to the Boundary Waters Care Center for capital equipment purchases;
new text end

new text begin (18) $800,000 to the Cook County Historical Society to predesign, design, construct,
furnish, and equip the renovation of the following Historic Cook County sites: (i) the Cook
County History Museum; (ii) the Johnson Heritage Post Art Gallery; (iii) the Bally
Blacksmith Shop; (iv) the St. Francis Xavier Church, also known as the Chippewa City
Church; and (v) 1930s Nee-Gee Fishing Tug and Fish House; and to complete design for
and to construct, furnish, and equip a new collections storage facility in Cook County;
new text end

new text begin (19) $100,000 to the Virginia Community Foundation for the Mesabi Fit Coalition to
rehabilitate the former Mesabi Family YMCA building;
new text end

new text begin (20) $50,000 to the United States Hockey Hall of Fame Museum Inc. for capital
improvements;
new text end

new text begin (21) $100,000 to the Ranger Snowmobile and ATV Club for trail grooming costs and
equipment; and
new text end

new text begin (22) $100,000 to the Crane Lake Voyageurs Snowmobile Club for trail grooming costs
and equipment.
new text end

new text begin (b) If the amount of the transfer under paragraph (a) is less than $6,000,000, each of the
uses in paragraph (a), clauses (1) to (22), must be proportionally reduced so that the total
amount distributed under those clauses does not exceed the amount of the transfer.
new text end

new text begin (c) The city of Aurora must use the funds received under this section for improvements
to city-owned property in the downtown area and to establish a grant program to businesses
for front entrance enhancements and exterior storefront improvements. The grants may
award no more than $25,000 to a business. All improvements under this paragraph must be
made along St. Louis County State-Aid Highway 100 (3rd Avenue North and Main Street),
from marked Trunk Highway 135 to St. Louis County State-Aid Highway 110.
new text end

new text begin (d) The funds under paragraph (a), clause (19), must only be distributed if the Virginia
Community Foundation purchases the former Mesabi Family YMCA building.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies only to the 2023 distribution.
new text end

Sec. 12. new text begin TRANSFER 2023 DISTRIBUTION ONLY; DOUGLAS J. JOHNSON
ECONOMIC PROTECTION TRUST FUND.
new text end

new text begin Of the funds distributed to the Douglas J. Johnson Economic Protection Trust Fund
under Minnesota Statutes, section 298.28, for the 2023 distribution only, an amount equal
to $3,500,000 shall be transferred from the Douglas J. Johnson Economic Protection Trust
Fund to the Iron Range school consolidation and cooperatively operated school account
under Minnesota Statutes, section 298.28, subdivision 7a. The transfer must be made within
ten days of the August 2023 payment.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies only to the 2023 distribution.
new text end

ARTICLE 7

TAX INCREMENT FINANCING

Section 1.

Minnesota Statutes 2022, section 469.174, subdivision 27, is amended to read:

Subd. 27.

Small city.

"Small city" means any home rule charter or statutory city that
has a population of 5,000 or less and that is located deleted text begin ten deleted text end new text begin five new text end miles or more from a home rule
charter or statutory city, located in this state, with a population of 10,000 or more. For
purposes of this definition, the distance between cities is measured by drawing a straight
line from the nearest boundaries of the two cities.

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 July 1, 2023.
new text end

Sec. 2.

Laws 2003, chapter 127, article 10, section 31, subdivision 1, as amended by Laws
2008, chapter 366, article 5, section 21, and Laws 2019, First Special Session chapter 6,
article 7, section 1, is amended to read:

Subdivision 1.

District extension.

(a) The governing body of the city of Hopkins may
elect to extend the duration of its redevelopment tax increment financing district 2-11 by
up to four additional years.

(b) Notwithstanding Minnesota Statutes, section 469.1763, subdivision 2, effective upon
approval of this subdivision, no increments may be spent on activities located outside of
the area of the district, other than:

(1) to pay administrative expenses, not to exceed ten percent of the total tax increments
from the district; or

(2) to pay the costs of housing or redevelopment activities that are consistent with
Minnesota Statutes, section 469.176, subdivision 4j, provided that expenditures under this
clause may not exceed deleted text begin 20 deleted text end new text begin 25 new text end percent of the total tax increments from the district.

The total amount of increment that may be spent on activities located outside the area of
the district under this section shall be limited to deleted text begin 25 deleted text end new text begin 28 new text end percent.

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 Hopkins and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 3.

Laws 2008, chapter 366, article 5, section 26, as amended by Laws 2013, chapter
143, article 9, section 11, and Laws 2019, First Special Session chapter 6, article 7, section
2, is amended to read:

Sec. 26. BLOOMINGTON TAX INCREMENT FINANCING; FIVE-YEAR RULE.

(a) The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that
activities must be undertaken within a five-year period from the date of certification of a
tax increment financing district, are increased to a deleted text begin 21-year deleted text end new text begin 26-year new text end period for the Port
Authority of the City of Bloomington's Tax Increment Financing District No. 1-I,
Bloomington Central Station. new text begin The requirements of Minnesota Statutes, section 469.1763,
subdivision 4, relating to the use of increment after the expiration of the five-year rule, is
extended to the 27th year.
new text end

(b) Notwithstanding the provisions of Minnesota Statutes, section 469.176, or any other
law to the contrary, the city of Bloomington and its port authority may extend the duration
limits of the district for a period through December 31, deleted text begin 2039 deleted text end new text begin 2044 new text end .

(c) Effective for taxes payable in 2014, tax increment for the district must be computed
using the current local tax rate, notwithstanding the provisions of Minnesota Statutes, section
469.177, subdivision 1a.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon compliance by the city of
Bloomington, Hennepin County, and Independent School District No. 271 with the
requirements of Minnesota Statutes, section 469.1782, subdivision 2.
new text end

Sec. 4.

Laws 2008, chapter 366, article 5, section 36, subdivision 1, is amended to read:

Subdivision 1.

Authorization.

Notwithstanding the provisions of any other law, upon
approval of the governing body of the city of St. Paul, the Housing and Redevelopment
Authority of the city of St. Paul may establish a redevelopment tax increment financing
district comprised of the properties included in the existing downtown and Seventh Place
tax increment district (County #82). Notwithstanding Minnesota Statutes, section 469.177,
subdivision 6, if certification of the district is requested by July 31, 2008, the certification
will be recognized by the county auditor in determining local tax rates for taxes payable in
2009 and subsequent years. The district created under this section terminates December 31,
deleted text begin 2023 deleted text end new text begin 2033 new text end . The city may create the district under this section only if it enters into an
agreement with Ramsey County to pay the county annually out of the increment from this
district an amount equal to the tax that would have been payable to the county on the captured
tax capacity of the district had the district not been created.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective upon compliance by the city of St. Paul,
Ramsey County, and Independent School District No. 625 with the requirements of Minnesota
Statutes, section 469.1782, subdivision 2.
new text end

Sec. 5.

Laws 2008, chapter 366, article 5, section 36, subdivision 3, as amended by Laws
2014, chapter 150, article 5, section 5, is amended to read:

Subd. 3.

Authorized expenditures.

Tax increment from the district may be expended
only to pay principal and interest on bond obligations issued by the city of St. Paul in 2009
for the RiverCentre Arena, including payment of principal and interest on any bonds issued
to repay the bonds or loans new text begin , as amended in 2014, but only through taxes payable year 2023 new text end .
new text begin Commencing with taxes payable year 2024, tax increments from the district may be expended
to facilitate capital improvements within the city's RiverCentre complex, including but not
limited to the St. Paul RiverCentre, Xcel Energy Center, Roy Wilkins Auditorium, and St.
Paul RiverCentre Parking Ramp and adjacent areas controlled by the city. new text end All such
expenditures are deemed to be activities within the district under Minnesota Statutes, section
469.1763, subdivisions 2, 3, and 4.

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 Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 6.

Laws 2014, chapter 308, article 6, section 12, subdivision 2, is amended to read:

Subd. 2.

Special rules.

(a) If the city elects, upon the adoption of the tax increment
financing plan for a district, the rules under this section apply to a redevelopment district,
renewal and renovation district, 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 eight deleted text end new text begin 12 new text end years for any district deleted text begin , deleted text end new text begin ; the five-year rule under Minnesota Statutes,
section 469.175, subdivision 4, paragraph (f), is extended to nine years for any district; new text end and
Minnesota Statutes, section 469.1763, subdivision 4, does not apply to any district.

(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section 469.1763,
subdivision 2, paragraph (a), not more than 40 percent of the total revenue derived from tax
increments paid by properties in any district, measured over the life of the district, may be
expended on activities outside the district but within the project area.

(f) For a soil deficiency district:

(1) increments may be collected through 20 years after the receipt by the authority of
the first increment from the district;

(2) increments may be used only to:

(i) acquire parcels on which the improvements described in item (ii) will occur;

(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional
cost of installing public improvements directly caused by the deficiencies; and

(iii) pay for the administrative expenses of the authority allocable to the district; and

(3) any parcel acquired with increments from the district must be sold at no less than
their fair market value.

(g) Increments spent for any infrastructure costs, whether inside a district or outside a
district but within the project area, are deemed to satisfy the requirements of Minnesota
Statutes, section 469.176, subdivision 4j.

(h) The authority to approve tax increment financing plans to establish tax increment
financing districts under this section expires June 30, 2020.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Savage and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 7.

Laws 2019, First Special Session chapter 6, article 7, section 7, is amended to read:

Sec. 7. CITY OF DULUTH; TAX INCREMENT FINANCING DISTRICT; SPECIAL
RULES AUTHORIZATION.

Subdivision 1.

Establishment.

The city of Duluth or the Duluth Economic Development
Authority may establish, by resolution, deleted text begin one deleted text end new text begin not more than two new text end redevelopment tax increment
financing deleted text begin district deleted text end new text begin districts new text end located in the city of Duluth, St. Louis County, Minnesota, within
the area bordered on the northeast by Slip 3 and the Pier B Resort property line extended
northwest to Interstate 35, on the southeast by the Duluth Harbor, on the southwest by the
Compass Minerals property line extended northwest to Interstate 35, and on the northwest
by Interstate 35, together with adjacent roads and rights-of-way; and such property is deemed
to meet the requirements of Minnesota Statutes, section 469.174, subdivision 10.

Subd. 2.

Eligible expenditures.

Expenditures incurred in connection with the
development of the property described in subdivision 1 are deemed to meet the requirements
of Minnesota Statutes, section 469.176, subdivision 4j. Eligible expenditures for any tax
increment financing district established in the area described in subdivision 1 include,
without limitation, seawalls and pier facings adjacent to the boundaries of such district.

new text begin Subd. 3. new text end

new text begin Duration. new text end

new text begin Notwithstanding Minnesota Statutes, section 469.176, subdivision
1b, or any other law to the contrary, the city of Duluth or its economic development authority
may extend the duration limit of a district established under subdivision 1 by five years.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin (a) The amendment to subdivision 1 is effective the day after the
governing body of the city of Duluth and its chief clerical officer comply with Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

new text begin (b) Subdivision 3 is effective upon compliance by the city of Duluth, St. Louis County,
and Independent School District No. 709 with the requirements of Minnesota Statutes,
section 469.1782, subdivision 2.
new text end

Sec. 8.

Laws 2021, First Special Session chapter 14, article 9, section 10, is amended to
read:

Sec. 10. CITY OF RAMSEY; TAX INCREMENT FINANCING DISTRICT NO.
14; FIVE-YEAR RULE EXTENSION.

(a) 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 deleted text begin two-year deleted text end new text begin five-year new text end period to November 28, deleted text begin 2023 deleted text end new text begin 2026 new text end ,
for Tax Increment Financing District No. 14 administered by the city of Ramsey.

(b) The requirements of Minnesota Statutes, section 469.1763, subdivision 4, relating
to the use of increment after the expiration of the five-year period under Minnesota Statutes,
section 469.1763, subdivision 3, is extended to the deleted text begin 13th deleted text end new text begin 16th new text end year for Tax Increment
Financing District No. 14.

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 Ramsey and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 9. new text begin CITY OF CHATFIELD; TIF AUTHORITY; ECONOMIC DEVELOPMENT
AUTHORIZATION.
new text end

new text begin Notwithstanding Minnesota Statutes, section 469.176, subdivision 4c, paragraph (b), or
any other law to the contrary, the city of Chatfield or its economic development authority
may establish an economic development district to construct a multilevel hotel on Mill
Creek Road and Division Street NW, south of Trunk Highway 30, in the city of Chatfield,
Olmsted County, provided that the first floor of the hotel does not exceed 15,000 square
feet. For purposes of this section, "first floor" means the floor at street level where the public
is permitted to enter and exit.
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 Chatfield and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 10. new text begin CITY OF DULUTH; TAX INCREMENT FINANCING DISTRICT;
SPECIAL RULES.
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 Duluth or the city of Duluth may establish
one or more redevelopment districts located wholly within the area of the city of Duluth,
St. Louis County, Minnesota, limited to the area classified as the Medical Regional Exchange
District and East 1st Street Corridor as bounded by: East 6th Street from North 3rd Avenue
East to North 7th Avenue East; North 7th Avenue East from East 6th Street to East 3rd
Street; East 3rd Street from North 7th Avenue East to North 12th Avenue East; North 12th
Avenue East from East 3rd Street straight through the Duluth Rose Garden to the Lake
Superior Waterfront; the Lake Superior waterfront from the Duluth Rose Garden at North
12th Avenue East to Lake Place Park at North 3rd Avenue East; North 3rd Avenue East
from Lake Place Park at the Lake Superior waterfront to East Superior Street; East Superior
Street from North 3rd Avenue East to North Lake Avenue; North Lake Avenue from East
Superior Street to East 2nd Street; East 2nd Street from North Lake Avenue to North 3rd
Avenue East; North 3rd Ave East from East 2nd Street to East 6th Street.
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 redevelopment 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 EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Duluth and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 11. new text begin CITY OF FRIDLEY; TAX INCREMENT FINANCING DISTRICT;
SPECIAL RULES.
new text end

new text begin Subdivision 1. new text end

new text begin Transfer of increment. new text end

new text begin Notwithstanding Minnesota Statutes, section
469.176, subdivision 4j, the city of Fridley or its economic development authority may
transfer tax increment accumulated from Fridley Tax Increment Financing District No. 20
to the Fridley Housing and Redevelopment Authority for the purposes authorized in
subdivision 2. Only increment allowed to be expended outside of the district pursuant to
Minnesota Statutes, section 469.1763, subdivision 2, may be transferred under this section.
new text end

new text begin Subd. 2. new text end

new text begin Allowable use. new text end

new text begin Tax increment transferred under subdivision 1 must be used
only to:
new text end

new text begin (1) make grants, loans, and loan guarantees for the development, rehabilitation, or
financing of housing; or
new text end

new text begin (2) match other funds from federal, state, or private resources for housing projects.
new text end

new text begin Subd. 3. new text end

new text begin Annual financial reporting. new text end

new text begin Tax increment transferred under this section is
subject to the annual reporting requirements under Minnesota Statutes, section 469.175,
subdivision 6.
new text end

new text begin Subd. 4. new text end

new text begin Legislative reports. new text end

new text begin By February 1, 2025, and February 1, 2027, the city of
Fridley must issue a report to the chairs and ranking minority members of the legislative
committees with jurisdiction over taxes and property taxes. Each report must include detailed
information relating to each program financed with increment transferred under this section.
new text end

new text begin Subd. 5. new text end

new text begin Expiration. new text end

new text begin The authority to make transfers under subdivision 1 expires
December 31, 2027.
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 Fridley and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 12. new text begin CITY OF PLYMOUTH; 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
city of Plymouth may establish not more than two redevelopment districts located wholly
within the city of Plymouth, Hennepin County, Minnesota, limited to the following parcels
identified by tax identification numbers: 34-119-22-44-0002, 03-118-22-12-0002,
03-118-22-11-0007, 02-118-22-22-0005, and 03-118-22-14-0032, together with 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 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) not more than 75 percent of increments generated from the district may be expended
on improvements to Chankahda Trail, formerly known as Hennepin County Road 47, outside
the project area, and all such expenditures are deemed expended on activities within the
district for the 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 December 31, 2030.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Plymouth and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 13. new text begin CITY OF SHAKOPEE; TAX INCREMENT FINANCING DISTRICT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "City" means the city of Shakopee.
new text end

new text begin (c) "Project area" means the following parcels, identified by parcel identification numbers:
279160102, 279160110, 279170020, and 279160120.
new text end

new text begin (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:
new text end

new text begin (1) unusual terrain or soil deficiencies that occurred over 70 percent of the acreage in
the district require substantial filling, grading, or other physical preparation for use; and
new text end

new text begin (2) the estimated cost of the physical preparation under clause (1), 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) and (11) to (22), and 430.01, exceeds the fair market value of the land before
completion of the preparation.
new text end

new text begin Subd. 2. new text end

new text begin Special rules. new text end

new text begin (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. The city, or a
development authority acting on its behalf, may establish one or more soil deficiency districts
within the project area.
new text end

new text begin (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 70 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:
new text end

new text begin (1) peat or other soils with geotechnical deficiencies that impair development of
residential or commercial buildings or infrastructure;
new text end

new text begin (2) soils or terrain that requires substantial filling in order to permit the development of
residential or commercial buildings or infrastructure;
new text end

new text begin (3) landfills, dumps, or similar deposits of municipal or private waste;
new text end

new text begin (4) quarries or similar resource extraction sites;
new text end

new text begin (5) floodways; and
new text end

new text begin (6) substandard buildings, within the meaning of Minnesota Statutes, section 469.174,
subdivision 10.
new text end

new text begin (c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by the
relevant condition if at least 60 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.
new text end

new text begin (d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is
extended to ten years for any district, and the period under Minnesota Statutes, section
469.1763, subdivision 4, is extended to 11 years.
new text end

new text begin (e) Notwithstanding any provision to the contrary in Minnesota Statutes, section 469.1763,
subdivision 2, paragraph (a), not more than 80 percent of the total revenue derived from tax
increments paid by properties in any district, measured over the life of the district, may be
expended on activities outside the district but within the project area.
new text end

new text begin (f) For a soil deficiency district:
new text end

new text begin (1) increments may be collected through 20 years after the receipt by the authority of
the first increment from the district; and
new text end

new text begin (2) except as otherwise provided in this subdivision, increments may be used only to:
new text end

new text begin (i) acquire parcels on which the improvements described in item (ii) will occur;
new text end

new text begin (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
new text end

new text begin (iii) pay for the administrative expenses of the authority allocable to the district.
new text end

new text begin (g) The authority to approve tax increment financing plans to establish tax increment
financing districts 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 Shakopee and its chief clerical officer comply with the requirements of Minnesota
Statutes, section 645.021, subdivisions 2 and 3.
new text end

Sec. 14. new text begin CITY OF WEST ST. PAUL; 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 West St. Paul or the city of West St. Paul
may establish one or more redevelopment tax increment financing districts consisting of
the parcels in the city of West St. Paul, Dakota County, Minnesota, currently identified with
the following parcel identification numbers: 42-83680-01-011, 42-11561-00-010,
42-11561-01-010, 42-11560-01-021, 42-11561-00-020, and 42-11560-01-022, as the same
may be replatted or reconfigured, together with adjacent roads and rights-of-way.
new text end

new text begin Subd. 2. new text end

new text begin Special rules. new text end

new text begin If the city or authority establishes one or more tax increment
financing districts 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; 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 EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of West St. Paul and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 15. new text begin CITY OF WOODBURY; TAX INCREMENT FINANCING DISTRICT
NO. 13; EXPENDITURES ALLOWED; DURATION EXTENSION.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 469.1763, subdivision 2, or any other
law to the contrary, the city of Woodbury may expend increments generated from Tax
Increment Financing District No. 13 for the maintenance, and facility and infrastructure
upgrades to Central Park. All such expenditures are deemed expended on activities within
the district.
new text end

new text begin (b) Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, the city of
Woodbury may elect to extend the duration of Tax Increment Financing District No. 13 by
five years.
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 Woodbury 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 Woodbury, Washington County, and Independent School District No. 833
with the requirements of Minnesota Statutes, section 469.1782, subdivision 2.
new text end

ARTICLE 8

OFFICE OF THE STATE AUDITOR: TAX INCREMENT FINANCING GENERAL
LAW MODIFICATIONS

Section 1.

Minnesota Statutes 2022, section 469.174, subdivision 14, is amended to read:

Subd. 14.

Administrative expenses.

new text begin (a) new text end "Administrative expenses" new text begin or "administrative
costs" new text end means deleted text begin all deleted text end new text begin documented new text end expenditures of an authority deleted text begin other than deleted text end new text begin or municipality,
including but not limited to new text end :

new text begin (1) amounts paid for services provided by bond counsel, fiscal consultants, and economic
development consultants;
new text end

new text begin (2) allocated expenses and staff time of the authority or municipality for administering
a project, including but not limited to preparing the tax increment financing plan, negotiating
and preparing agreements, accounting for segregated funds of the district, preparing and
submitting required reporting for the district, and reviewing and monitoring compliance
with sections 469.174 to 469.1794;
new text end

new text begin (3) amounts paid to publish annual disclosures and provide notices under section 469.175;
new text end

new text begin (4) amounts to provide for the usual and customary maintenance and operation of
properties purchased with tax increments, including necessary reserves for repairs and the
cost of any insurance;
new text end

new text begin (5) amounts allocated or paid to prepare a development action response plan for a soils
condition district or hazardous substance subdistrict; and
new text end

new text begin (6) amounts used to pay bonds, interfund loans, or other financial obligations to the
extent those obligations were used to finance costs described in clauses (1) to (5).
new text end

new text begin (b) Administrative expenses and administrative costs do not include:
new text end

(1) amounts paid for the purchase of land new text begin or buildings new text end ;

(2) amounts paid to contractors or others providing materials and services deleted text begin , including
architectural and engineering services, deleted text end directly connected with the physical development
of the real property in the project new text begin , including architectural and engineering services and
materials and services for demolition, soil correction, and the construction or installation
of public improvements new text end ;

(3) relocation benefits paid to or services provided for persons residing or businesses
located in the project;

deleted text begin (4) amounts used to pay principal or interest on, fund a reserve for, or sell at a discount
bonds issued pursuant to section 469.178; or
deleted text end

deleted text begin (5) deleted text end new text begin (4) amounts paid for property taxes or payments in lieu of taxes; and
new text end

new text begin (5) new text end amounts used to pay new text begin principal or interest on, fund a reserve for, or sell at a discount
bonds issued pursuant to section 469.178 or new text end other financial obligations to the extent those
obligations were used to finance costs described in clauses (1) to deleted text begin (3) deleted text end new text begin (4) new text end .

deleted text begin For districts for which the requests for certifications were made before August 1, 1979,
or after June 30, 1982, "administrative expenses" includes amounts paid for services provided
by bond counsel, fiscal consultants, and planning or economic development consultants.
deleted text end

new text begin This definition does not apply to administrative expenses or administrative costs referenced
under section 469.176, subdivision 4h.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to all districts, regardless of when the request for certification was made.
new text end

Sec. 2.

Minnesota Statutes 2022, section 469.174, is amended by adding a subdivision to
read:

new text begin Subd. 30. new text end

new text begin Pay-as-you-go contract and note. new text end

new text begin "Pay-as-you-go contract and note" means
a written note or contractual obligation under which all of the following apply:
new text end

new text begin (1) the note or contractual obligation evidences an authority's commitment to reimburse
a developer, property owner, or note holder for the payment of costs of activities, including
any interest on unreimbursed costs;
new text end

new text begin (2) the reimbursement is made from tax increment revenues identified in the note or
contractual obligation as received by a municipality or authority as taxes are paid; and
new text end

new text begin (3) the risk that available tax increments may be insufficient to fully reimburse the costs
is borne by the developer, property owner, or note holder.
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 2022, section 469.175, subdivision 6, is amended to read:

Subd. 6.

Annual financial reporting.

(a) The state auditor shall develop a uniform
system of accounting and financial reporting for tax increment financing districts. The
system of accounting and financial reporting shall, as nearly as possible:

(1) provide for full disclosure of the sources and uses of tax increments of the district;

(2) permit comparison and reconciliation with the affected local government's accounts
and financial reports;

(3) permit auditing of the funds expended on behalf of a district, including a single
district that is part of a multidistrict project or that is funded in part or whole through the
use of a development account funded with tax increments from other districts or with other
public money;

(4) be consistent with generally accepted accounting principles.

(b) The authority must annually submit to the state auditor a financial report in compliance
with paragraph (a). Copies of the report must also be provided to the county auditor and to
the governing body of the municipality, if the authority is not the municipality. To the extent
necessary to permit compliance with the requirement of financial reporting, the county and
any other appropriate local government unit or private entity must provide the necessary
records or information to the authority or the state auditor as provided by the system of
accounting and financial reporting developed pursuant to paragraph (a). The authority must
submit the annual report for a year on or before August 1 of the next year.

(c) The annual financial report must also include the following items:

(1) the original net tax capacity of the district and any subdistrict under section 469.177,
subdivision 1;

(2) the net tax capacity for the reporting period of the district and any subdistrict;

(3) the captured net tax capacity of the district;

(4) any fiscal disparity deduction from the captured net tax capacity under section
469.177, subdivision 3;

(5) the captured net tax capacity retained for tax increment financing under section
469.177, subdivision 2, paragraph (b), clause (1);

(6) any captured net tax capacity distributed among affected taxing districts under section
469.177, subdivision 2, paragraph (b), clause (2);

(7) the type of district;

(8) the date the municipality approved the tax increment financing plan and the date of
approval of any modification of the tax increment financing plan, the approval of which
requires notice, discussion, a public hearing, and findings under subdivision 4, paragraph
(a);

(9) the date the authority first requested certification of the original net tax capacity of
the district and the date of the request for certification regarding any parcel added to the
district;

(10) the date the county auditor first certified the original net tax capacity of the district
and the date of certification of the original net tax capacity of any parcel added to the district;

(11) the deleted text begin month and deleted text end year in which the authority has received or anticipates it will receive
the first increment from the district;

(12) the date the district must be decertified;

(13) for the reporting period and prior years of the district, the actual amount received
from, at least, the following categories:

(i) tax increments paid by the captured net tax capacity retained for tax increment
financing under section 469.177, subdivision 2, paragraph (b), clause (1), but excluding any
excess taxes;

(ii) tax increments that are interest or other investment earnings on or from tax increments;

(iii) tax increments that are proceeds from the sale or lease of property, tangible or
intangible, purchased by the authority with tax increments;

(iv) tax increments that are repayments of loans or other advances made by the authority
with tax increments;

(v) bond proceeds; and

(vi) the agricultural homestead market value credit paid to the authority under section
273.1384;

(14) for the reporting period and for the prior years of the district, the actual amount
expended for, at least, the following categories:

(i) acquisition of land and buildings through condemnation or purchase;

(ii) site improvements or preparation costs;

(iii) installation of public utilities, parking facilities, streets, roads, sidewalks, or other
similar public improvements;

(iv) administrative costs, including the allocated cost of the authority; and

(v) for housing districts, construction of affordable housing;

(15) the amount of any payments for activities and improvements located outside of the
district that are paid for or financed with tax increments;

(16) the amount of payments of principal and interest that are made during the reporting
period on any nondefeased:

(i) general obligation tax increment financing bonds; and

(ii) other tax increment financing bonds, including pay-as-you-go contracts and notes;

(17) the principal amount, at the end of the reporting period, of any nondefeased:

(i) general obligation tax increment financing bonds; and

(ii) other tax increment financing bonds, including pay-as-you-go contracts and notes;

(18) the amount of principal and interest payments that are due for the current calendar
year on any nondefeased:

(i) general obligation tax increment financing bonds; and

(ii) other tax increment financing bonds, including pay-as-you-go contracts and notes;

(19) if the fiscal disparities contribution under chapter 276A or 473F for the district is
computed under section 469.177, subdivision 3, paragraph (a), the amount of total increased
property taxes to be paid from outside the tax increment financing district; and

(20) any additional information the state auditor may require.

(d) The reporting requirements imposed by this subdivision apply to districts certified
before, on, and after August 1, 1979.

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 2022, section 469.176, subdivision 3, is amended to read:

Subd. 3.

Limitation on administrative expenses.

(a) For districts for which certification
was requested before August 1, 2001, no tax increment shall be used to pay any
administrative expenses for a project which exceed ten percent of the total estimated tax
increment expenditures authorized by the tax increment financing plan or new text begin ten percent of new text end the
total tax increment expenditures for the project new text begin net of any amounts returned to the county
auditor as excess increment; as returned increment under section 469.1763, subdivision 4,
paragraph (g); or as remedies under section 469.1771, subdivision 2 new text end , whichever is less.

(b) For districts for which certification was requested after July 31, 2001, no tax increment
may be used to pay any administrative expenses for a project which exceed ten percent of
total estimated tax increment expenditures authorized by the tax increment financing plan
or new text begin ten percent of new text end the total tax increments, as defined in section 469.174, subdivision 25,
clause (1), deleted text begin from deleted text end new text begin received for new text end the district new text begin net of any amounts returned to the county auditor
as excess increment; as returned increment under section 469.1763, subdivision 4, paragraph
(g); or as remedies under section 469.1771, subdivision 2 new text end , whichever is less.

(c) Increments used to pay the county's administrative expenses under subdivision 4h
are not subject to the percentage limits in this subdivision.

new text begin (d) Increments defined under section 469.174, subdivision 25, clause (2), used for
administrative expenses described under section 469.174, subdivision 14, paragraph (a),
clause (4), are not subject to the percentage limits in this subdivision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to all districts, regardless of when the request for certification was made.
new text end

Sec. 5.

Minnesota Statutes 2022, section 469.176, subdivision 4, is amended to read:

Subd. 4.

Limitation on use of tax increment; general rule.

All revenues derived from
tax increment shall be used in accordance with the tax increment financing plan. The revenues
shall be used solely for the following purposes: (1) to pay the principal of and interest on
bonds issued to finance a project; (2) by a rural development financing authority for the
purposes stated in section 469.142 deleted text begin , deleted text end new text begin ; new text end by a port authority or municipality exercising the powers
of a port authority to finance or otherwise pay the cost of redevelopment pursuant to sections
469.048 to 469.068 deleted text begin , deleted text end new text begin ; new text end by an economic development authority to finance or otherwise pay
the cost of redevelopment pursuant to sections 469.090 to 469.108 deleted text begin , deleted text end new text begin ; new text end by a housing and
redevelopment authority or economic development authority to finance or otherwise pay
public redevelopment costs pursuant to sections 469.001 to 469.047 deleted text begin , deleted text end new text begin ; new text end by a municipality or
economic development authority to finance or otherwise pay the capital and administration
costs of a development district pursuant to sections 469.124 to 469.133 deleted text begin , deleted text end new text begin ; new text end by a municipality
or authority to finance or otherwise pay the costs of developing and implementing a
development action response plan deleted text begin , deleted text end new text begin ; new text end by a municipality or redevelopment agency to finance
or otherwise pay premiums for insurance or other security guaranteeing the payment when
due of principal of and interest on the bonds pursuant to chapter 462C, sections 469.152 to
469.165, or both, or to accumulate and maintain a reserve securing the payment when due
of the principal of and interest on the bonds pursuant to chapter 462C, sections 469.152 to
469.165, or both, which revenues in the reserve shall not exceed, subsequent to the fifth
anniversary of the date of issue of the first bond issue secured by the reserve, an amount
equal to 20 percent of the aggregate principal amount of the outstanding and nondefeased
bonds secured by the reserve new text begin ; and (3) to pay administrative expenses new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to all districts, regardless of when the request for certification was made.
new text end

Sec. 6.

Minnesota Statutes 2022, 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, deleted text begin paragraph (b), deleted text end 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 new text begin considered to be expenditures new text end for activities outside
of the district, except that if the only expenses for activities outside of the district under this
subdivision are for the purposes described in paragraph (d), administrative expenses will
be considered as expenditures for activities in the district.

(d) The authority may elect, in the tax increment financing plan for the district, to increase
by up to ten percentage points the permitted amount of expenditures for activities located
outside the geographic area of the district under paragraph (a). As permitted by section
469.176, subdivision 4k, the expenditures, including the permitted expenditures under
paragraph (a), need not be made within the geographic area of the project. Expenditures
that meet the requirements of this paragraph are legally permitted expenditures of the district,
notwithstanding section 469.176, subdivisions 4b, 4c, and 4j. To qualify for the increase
under this paragraph, the expenditures must:

(1) be used exclusively to assist housing that meets the requirement for a qualified
low-income building, as that term is used in section 42 of the Internal Revenue Code; and

(2) not exceed the qualified basis of the housing, as defined under section 42(c) of the
Internal Revenue Code, less the amount of any credit allowed under section 42 of the Internal
Revenue Code; and

(3) be used to:

(i) acquire and prepare the site of the housing;

(ii) acquire, construct, or rehabilitate the housing; or

(iii) make public improvements directly related to the housing; or

(4) be used to develop housing:

(i) if the market value of the housing does not exceed the lesser of:

(A) 150 percent of the average market value of single-family homes in that municipality;
or

(B) $200,000 for municipalities located in the metropolitan area, as defined in section
473.121, or $125,000 for all other municipalities; and

(ii) if the expenditures are used to pay the cost of site acquisition, relocation, demolition
of existing structures, site preparation, and pollution abatement on one or more parcels, if
the parcel contains a residence containing one to four family dwelling units that has been
vacant for six or more months and is in foreclosure as defined in section 325N.10, subdivision
7, but without regard to whether the residence is the owner's principal residence, and only
after the redemption period has expired; or

(5) to assist owner-occupied housing that meets the requirements of section 469.1761,
subdivision 2.

(e) The authority under paragraph (d), clause (4), expires on December 31, 2016.
Increments may continue to be expended under this authority after that date, if they are used
to pay bonds or binding contracts that would qualify under subdivision 3, paragraph (a), if
December 31, 2016, is considered to be the last date of the five-year period after certification
under that provision.

new text begin (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 end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to all districts with a request for certification date after April 30, 1990, except that
paragraph (f) shall apply to districts decertifying after December 31, 2023.
new text end

Sec. 7.

Minnesota Statutes 2022, 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 new text begin that new text end are deleted text begin considered to have been deleted text end expended on an activity within the district
deleted text begin under deleted text end new text begin will instead be considered to have been expended on an activity outside the district
for purposes of new text end subdivision 2 deleted text begin only if one of the following occurs deleted text end new text begin unless new text end :

(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 new text begin of the district new text end , 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) deleted text begin expenditures are made deleted text end new text begin revenues are spent new text end for housing purposes as deleted text begin permitted deleted text end new text begin described new text end
by subdivision 2, deleted text begin paragraphs deleted text end new text begin paragraph new text end (b) deleted text begin and (d), or for public infrastructure purposes
within a zone as permitted by subdivision 2, paragraph (e) deleted text end .

(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 EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to all districts with a request for certification date after April 30, 1990.
new text end

Sec. 8.

Minnesota Statutes 2022, section 469.1763, subdivision 4, is amended to read:

Subd. 4.

Use of revenues for decertification.

deleted text begin (a) In each year beginning with the sixth
year following certification of the district, or beginning with the ninth year following
certification of the district for districts whose five-year rule is extended to eight years under
subdivision 3, paragraph (d), if the applicable in-district percent of the revenues derived
from tax increments paid by properties in the district exceeds the amount of expenditures
that have been made for costs permitted under subdivision 3, an amount equal to the
difference between the in-district percent of the revenues derived from tax increments paid
by properties in the district and the amount of expenditures that have been made for costs
permitted under subdivision 3 must be used and only used to pay or defease the following
or be set aside to pay the following:
deleted text end

deleted text begin (1) outstanding bonds, as defined in subdivision 3, paragraphs (a), clause (2), and (b);
deleted text end

deleted text begin (2) contracts, as defined in subdivision 3, paragraph (a), clauses (3) and (4);
deleted text end

deleted text begin (3) credit enhanced bonds to which the revenues derived from tax increments are pledged,
but only to the extent that revenues of the district for which the credit enhanced bonds were
issued are insufficient to pay the bonds and to the extent that the increments from the
applicable pooling percent share for the district are insufficient; or
deleted text end

deleted text begin (4) the amount provided by the tax increment financing plan to be paid under subdivision
2, paragraphs (b), (d), and (e).
deleted text end

deleted text begin (b) The deleted text end new text begin (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, paragraphs (c) and (d), a new text end district must be decertified deleted text begin and
the pledge of tax increment discharged when the outstanding bonds have been defeased and deleted text end
when deleted text begin sufficient money has been set aside to pay, based on deleted text end new text begin the product of the applicable
in-district percentage multiplied by new text end the deleted text begin increment to be deleted text end new text begin cumulative revenues derived from
tax increments paid by properties in the district that have been new text end collected through the end of
the calendar year, new text begin equals or exceeds an amount sufficient to pay new text end the following deleted text begin amounts deleted text end :

(1) deleted text begin contractual deleted text end new text begin any costs and new text end obligations deleted text begin as defined deleted text end new text begin described new text end in subdivision 3, deleted text begin paragraph deleted text end new text begin
paragraphs new text end (a) deleted text begin , clauses (3) and (4); deleted text end new text begin and (b), excluding those under a qualifying pay-as-you-go
contract and note;
new text end

deleted text begin (2) the amount specified in the tax increment financing plan for activities qualifying
under subdivision 2, paragraph (b), that have not been funded with the proceeds of bonds
qualifying under paragraph (a), clause (1); and
deleted text end

deleted text begin (3) the additional expenditures permitted by the tax increment financing plan for housing
activities under an election under subdivision 2, paragraph (d), that have not been funded
with the proceeds of bonds qualifying under paragraph (a), clause (1).
deleted text end

new text begin (2) any accrued interest on the costs and obligations in clause (1), payable in accordance
with the terms thereof; and
new text end

new text begin (3) any administrative expenses falling within the exception in subdivision 2, paragraph
(c).
new text end

new text begin (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:
new text end

new text begin (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
new text end

new text begin (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).
new text end

new text begin 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.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (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).
new text end

new text begin (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.
new text end

new text begin (g) The timing and implementation of a decertification pursuant to paragraphs (a) and
(b) shall be subject to the following:
new text end

new text begin (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;
new text end

new text begin (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;
new text end

new text begin (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
new text end

new text begin (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).
new text end

new text begin (h) The provisions of this subdivision do not apply to a housing district.
new text end

new text begin (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 end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to all districts with a request for certification after April 30, 1990, except that the
requirements under paragraph (b) to remove parcels or use revenues from such parcels as
prescribed in paragraph (b) apply only to districts for which the request for certification
was made after the day following final enactment.
new text end

Sec. 9.

Minnesota Statutes 2022, section 469.1763, subdivision 6, is amended to read:

Subd. 6.

Pooling permitted for deficits.

(a) This subdivision applies only to districts
for which the request for certification was made before August 1, 2001, and without regard
to whether the request for certification was made prior to August 1, 1979.

(b) The municipality for the district may transfer available increments from another tax
increment financing district located in the municipality, if the transfer is necessary to
eliminate a deficit in the district to which the increments are transferred. The municipality
may transfer increments as provided by this subdivision without regard to whether the
transfer or expenditure is authorized by the tax increment financing plan for the district
from which the transfer is made. A deficit in the district for purposes of this subdivision
means the lesser of the following two amounts:

(1) deleted text begin (i) deleted text end the amount due during the calendar year to pay preexisting obligations of the
district; minus new text begin the sum of
new text end

deleted text begin (ii) deleted text end new text begin (i) new text end the total increments collected or to be collected from properties located within
the district that are available for the calendar year including amounts collected in prior years
that are currently available; plus

deleted text begin (iii) deleted text end new text begin (ii) new text end total increments from properties located in other districts in the municipality
including amounts collected in prior years that are available to be used to meet the district's
obligations under this section, excluding this subdivision, or other provisions of law; or

(2) the reduction in increments collected from properties located in the district for the
calendar year as a result of the changes in classification rates in Laws 1997, chapter 231,
article 1; Laws 1998, chapter 389, article 2; and Laws 1999, chapter 243, and Laws 2001,
First Special Session chapter 5, or the elimination of the general education tax levy under
Laws 2001, First Special Session chapter 5.

The authority may compute the deficit amount under clause (1) only (without regard to
the limit under clause (2)) if the authority makes an irrevocable commitment, by resolution,
to use increments from the district to which increments are to be transferred and any
transferred increments are only used to pay preexisting obligations and administrative
expenses for the district that are required to be paid under section 469.176, subdivision 4h,
paragraph (a).

(c) A preexisting obligation means:

(1) bonds issued and sold before August 1, 2001, or bonds issued pursuant to a binding
contract requiring the issuance of bonds entered into before July 1, 2001, and bonds issued
to refund such bonds or to reimburse expenditures made in conjunction with a signed
contractual agreement entered into before August 1, 2001, to the extent that the bonds are
secured by a pledge of increments from the tax increment financing district; and

(2) binding contracts entered into before August 1, 2001, to the extent that the contracts
require payments secured by a pledge of increments from the tax increment financing district.

(d) The municipality may require a development authority, other than a seaway port
authority, to transfer available increments including amounts collected in prior years that
are currently available for any of its tax increment financing districts in the municipality to
make up an insufficiency in another district in the municipality, regardless of whether the
district was established by the development authority or another development authority.
This authority applies notwithstanding any law to the contrary, but applies only to a
development authority that:

(1) was established by the municipality; or

(2) the governing body of which is appointed, in whole or part, by the municipality or
an officer of the municipality or which consists, in whole or part, of members of the
governing body of the municipality. The municipality may use this authority only after it
has first used all available increments of the receiving development authority to eliminate
the insufficiency and exercised any permitted action under section 469.1792, subdivision
3, for preexisting districts of the receiving development authority to eliminate the
insufficiency.

(e) The authority under this subdivision to spend tax increments outside of the area of
the district from which the tax increments were collected:

(1) is an exception to the restrictions under section 469.176, subdivisions 4b, 4c, 4d, 4e,
4i, and 4j; the expenditure limits under section 469.176, subdivision 1c; and the other
provisions of this section; and the percentage restrictions under subdivision 2 must be
calculated after deducting increments spent under this subdivision from the total increments
for the district; and

(2) applies notwithstanding the provisions of the Tax Increment Financing Act in effect
for districts for which the request for certification was made before June 30, 1982, or any
other law to the contrary.

(f) If a preexisting obligation requires the development authority to pay an amount that
is limited to the increment from the district or a specific development within the district and
if the obligation requires paying a higher amount to the extent that increments are available,
the municipality may determine that the amount due under the preexisting obligation equals
the higher amount and may authorize the transfer of increments under this subdivision to
pay up to the higher amount. The existence of a guarantee of obligations by the individual
or entity that would receive the payment under this paragraph is disregarded in the
determination of eligibility to pool under this subdivision. The authority to transfer increments
under this paragraph may only be used to the extent that the payment of all other preexisting
obligations in the municipality due during the calendar year have been satisfied.

(g) For transfers of increments made in calendar year 2005 and later, the reduction in
increments as a result of the elimination of the general education tax levy for purposes of
paragraph (b), clause (2), for a taxes payable year equals the general education tax rate for
the school district under Minnesota Statutes 2000, section 273.1382, subdivision 1, for taxes
payable in 2001, multiplied by the captured tax capacity of the district for the current taxes
payable year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies only to districts for which the request for certification was made before August 1,
2001, and without regard to whether the request for certification was made prior to August
1, 1979.
new text end

Sec. 10.

Minnesota Statutes 2022, section 469.1771, subdivision 2, is amended to read:

Subd. 2.

Collection of increment.

If an authority includes or retains a parcel of property
in a tax increment financing district that does not qualify for inclusion or retention within
the district, the authority must pay to the county auditor an amount of money equal to the
increment collected from the property for the year or years. The property must be eliminated
from the original and captured tax capacity of the district effective for the current property
tax assessment year. deleted text begin This subdivision does not apply to a failure to decertify a district at
the end of the duration limit specified in the tax increment financing plan.
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. 11.

Minnesota Statutes 2022, section 469.1771, subdivision 2a, is amended to read:

Subd. 2a.

Suspension of distribution of tax increment.

(a) If an authority fails to make
a disclosure or to submit a report containing the information required by section 469.175,
subdivisions 5 and 6, regarding a tax increment financing district within the time provided
in section 469.175, subdivisions 5 and 6, the state auditor shall mail to the authority a written
notice that it or the municipality has failed to make the required disclosure or to submit a
required report with respect to a particular district. The state auditor shall mail the notice
on or before the third Tuesday of August of the year in which the disclosure or report was
required to be made or submitted. The notice must describe the consequences of failing to
disclose or submit a report as provided in paragraph (b). If the state auditor has not received
a copy of a disclosure or a report described in this paragraph on or before the first day of
October of the year in which the disclosure or report was required to be made or submitted,
the state auditor shall mail a written notice to the county auditor to hold the distribution of
tax increment from a particular district.

(b) Upon receiving written notice from the state auditor to hold the distribution of tax
increment, the county auditor shall hold deleted text begin : deleted text end new text begin all tax increment that otherwise would be distributed
after receipt of the notice, until further notified under paragraph (c).
new text end

deleted text begin (1) 100 percent of the amount of tax increment that otherwise would be distributed, if
the distribution is made after the first day of October but during the year in which the
disclosure or report was required to be made or submitted; or
deleted text end

deleted text begin (2) 100 percent of the amount of tax increment that otherwise would be distributed, if
the distribution is made after December 31 of the year in which the disclosure or report was
required to be made or submitted.
deleted text end

(c) Upon receiving the copy of the disclosure and all of the reports described in paragraph
(a) with respect to a district regarding which the state auditor has mailed to the county
auditor a written notice to hold distribution of tax increment, the state auditor shall mail to
the county auditor a written notice lifting the hold and authorizing the county auditor to
distribute to the authority or municipality any tax increment that the county auditor had held
pursuant to paragraph (b). The state auditor shall mail the written notice required by this
paragraph within five working days after receiving the last outstanding item. The county
auditor shall distribute the tax increment to the authority or municipality within 15 working
days after receiving the written notice required by this paragraph.

(d) Notwithstanding any law to the contrary, any interest that accrues on tax increment
while it is being held by the county auditor pursuant to paragraph (b) is not tax increment
and may be retained by the county.

(e) For purposes of sections 469.176, subdivisions 1a to 1g, and 469.177, subdivision
11, tax increment being held by the county auditor pursuant to paragraph (b) is considered
distributed to or received by the authority or municipality as of the time that it would have
been distributed or received but for paragraph (b).

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

Minnesota Statutes 2022, section 469.1771, subdivision 3, is amended to read:

Subd. 3.

Expenditure of increment.

If an authority expends revenues derived from tax
increments, including the proceeds of tax increment bonds, (1) for a purpose that is not a
permitted project under deleted text begin section 469.176 deleted text end new text begin sections 469.174 to 469.1794 new text end , (2) for a purpose
that is not permitted under deleted text begin section 469.176 deleted text end new text begin sections 469.174 to 469.1794 new text end for the district
from which the increment was received, or (3) on activities outside of the geographic area
in which the revenues may be expended under this chapter, the authority must pay to the
county auditor an amount equal to the expenditures made in violation of the law.

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 9

LOCAL SALES TAXES

Section 1.

Minnesota Statutes 2022, section 297A.99, subdivision 1, is amended to read:

Subdivision 1.

Authorization; scope.

(a) A political subdivision of this state may impose
a general sales tax (1) under section 297A.992, (2) under section 297A.993, (3) if permitted
by special law, or (4) if the political subdivision enacted and imposed the tax before January
1, 1982, and its predecessor provision.

(b) This section governs the imposition of a general sales tax by the political subdivision.
The provisions of this section preempt the provisions of any special law:

(1) enacted before June 2, 1997, or

(2) enacted on or after June 2, 1997, that does not explicitly exempt the special law
provision from this section's rules by reference.

(c) This section does not apply to or preempt a sales tax on motor vehicles. Beginning
July 1, 2019, no political subdivision may impose a special excise tax on motor vehicles
unless it is imposed under section 297A.993.

(d) A political subdivision may not advertise or expend funds for the promotion of a
referendum to support imposing a local sales tax deleted text begin and may only spend funds related to
imposing a local sales tax to: deleted text end new text begin .
new text end

new text begin (e) Notwithstanding paragraph (d), a political subdivision may only spend funds related
to imposing a local sales tax to:
new text end

(1) conduct the referendum;

(2) disseminate information included in the resolution adopted new text begin and submitted new text end under
subdivision 2, but only if the disseminated information includes a list of specific projects
and the cost of each individual project;

(3) provide notice of, and conduct public forums at which proponents and opponents on
the merits of the referendum are given equal time to express their opinions on the merits of
the referendum;

(4) provide facts and data on the impact of the proposed local sales tax on consumer
purchases; and

(5) provide facts and data related to the individual programs and projects to be funded
with the local sales tax.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2022, section 297A.99, subdivision 2, is amended to read:

Subd. 2.

Local resolution before application for authority.

(a) deleted text begin Before the governing
body of a political subdivision requests legislative approval to impose a local sales tax
authorized by a special law, it shall adopt a resolution indicating its approval of the tax. The
resolution must include the following information: deleted text end new text begin The governing body of a political
subdivision seeking legislative approval to either impose a new local sales tax authorized
by special law or modify an existing local sales tax authorized by special law must adopt a
resolution indicating its approval of the tax each year it requests legislative approval. The
resolution must be adopted not more than 90 days before the date the political subdivision
submits the information required under paragraph (b), and must include the following
information:
new text end

(1) the proposed tax rate;

(2) a detailed description of no more than five deleted text begin capital deleted text end projects that will be funded with
revenue from the tax;

(3) documentation of the regional significance of each project, including the share of
the economic benefit to or use of each project by persons residing, or businesses located,
outside of the deleted text begin jurisdiction deleted text end new text begin political subdivision new text end ;

(4) the amount of local sales tax revenue that would be used for each project and the
estimated time needed to raise that amount of revenue; and

(5) the total revenue that will be raised for all projects before the tax expires, and the
estimated length of time that the tax will be in effect if all proposed projects are funded.

(b) The deleted text begin jurisdiction seeking authority to impose a local sales tax by special law deleted text end new text begin political
subdivision new text end must submit the resolution in paragraph (a) along with underlying documentation
indicating how the benefits under paragraph (a), clause (3), were determined, to the chairs
and ranking minority members of the deleted text begin legislative deleted text end committees new text begin of the house of representatives
and senate new text end with jurisdiction over taxes no later than January 31 of deleted text begin the deleted text end new text begin each new text end year in which
the deleted text begin jurisdiction deleted text end new text begin political subdivision new text end is seeking a special law authorizing new text begin or modifying new text end the
tax. new text begin The political subdivision must submit an amended resolution if, after meeting the
requirements of this paragraph, the political subdivision seeks to:
new text end

new text begin (1) add a project that will be funded with the revenue from the tax;
new text end

new text begin (2) increase the amount that will be used for any project;
new text end

new text begin (3) increase the total revenue raised for all projects before the tax expires; or
new text end

new text begin (4) increase the estimated length of time that the tax will be in effect if all proposed
projects are funded.
new text end

(c) The special legislation granting new text begin or modifying new text end local sales tax authority is not required
to allow funding for all projects listed in the resolution with the revenue from the local sales
tax, but must not include any projects not contained in the resolution.

deleted text begin (d) For purposes of this section, a "capital project" or "project" means:
deleted text end

deleted text begin (1) a single building or structure including associated infrastructure needed to safely
deleted text end deleted text begin access or use the building or structure;
deleted text end

deleted text begin (2) improvements within a single park or named recreation area; or
deleted text end

deleted text begin (3) a contiguous trail.
deleted text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3.

Minnesota Statutes 2022, section 297A.99, subdivision 3, is amended to read:

Subd. 3.

Legislative authority required before voter approval; requirements for
adoption, use, termination.

(a) A political subdivision must receive legislative authority
to impose new text begin or modify new text end a local sales tax before submitting the tax for approval by voters of the
political subdivision. Imposition new text begin or modification new text end of a local sales tax is subject to approval
by voters of the political subdivision at a general election. The election must be conducted
deleted text begin at a general election deleted text end new text begin on the first Tuesday after the first Monday in November new text end within the
two-year period after the governing body of the political subdivision has received authority
to impose new text begin or modify new text end the tax. If the authorizing legislation deleted text begin allows deleted text end new text begin authorizes or modifies new text end the
tax deleted text begin to be imposed deleted text end for more than one project, deleted text begin there must be deleted text end new text begin the political subdivision is not
required to present each project separately on the ballot. The political subdivision may
present new text end a separate question approving the use of the tax revenue for each project. new text begin Regardless
of whether the ballot presents a separate question for each project, the question must state
the project or projects proposed to be funded with the tax, the amount for each project
proposed to be funded with the tax, and the estimated length of time the tax will be in effect.
new text end Notwithstanding the authorizing legislation new text begin or special law modifying the tax new text end , a project that
is not approved by the voters may not be funded with the local sales tax revenue and the
termination date of the tax set in the authorizing legislation new text begin or special law modifying the
tax new text end must be reduced proportionately based on the share of that project's cost to the total
costs of all projects included in the authorizing legislation new text begin or special law modifying the tax new text end .

(b) The proceeds of the tax must be dedicated exclusively to payment of the construction
and rehabilitation costs and associated bonding costs related to the specific capital
improvement projects that were approved by the voters under paragraph (a).

(c) The tax must terminate after the revenues raised are sufficient to fund the projects
approved by the voters under paragraph (a).

(d) After a sales tax imposed by a political subdivision has expired or been terminated,
the political subdivision is prohibited from imposing a local sales tax for a period of one
year.

(e) Notwithstanding paragraph (a), if a political subdivision received voter approval to
seek authority for a local sales tax at the November 6, 2018, general election and is granted
authority to impose a local sales tax before January 1, 2021, the tax may be imposed without
an additional referendum provided that it meets the requirements of subdivision 2 and the
list of specific projects contained in the resolution does not conflict with the projects listed
in the approving referendum.

(f) If a tax is terminated because sufficient revenues have been raised, any amount of
tax collected under subdivision 9, after sufficient revenues have been raised and before the
quarterly termination required under subdivision 12, paragraph (a), that is greater than the
average quarterly revenues collected over the immediately preceding 12 calendar months
must be retained by the commissioner for deposit in the general fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for new local sales taxes authorized in
May, 2023, and thereafter.
new text end

Sec. 4.

Laws 1993, chapter 375, article 9, section 46, as amended by Laws 1997, chapter
231, article 7, section 40, Laws 1998, chapter 389, article 8, sections 30, 31, and 32, Laws
2003, First Special Session chapter 21, article 8, section 13, Laws 2005, First Special Session
chapter 3, article 5, sections 26 and 27, Laws 2009, chapter 88, article 4, sections 15 and
16, and Laws 2013, chapter 143, article 8, sections 44 and 45, is amended by adding a
subdivision to read:

new text begin Subd. 1a. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes, section
477A.016, or any other law, ordinance, or city charter, and if approved by the voters at an
election as required under Minnesota Statutes, section 297A.99, subdivision 3, the city of
St. Paul may impose by ordinance a sales and use tax of one percent for the purposes specified
in subdivision 2. Except as otherwise provided in this section, the provisions of Minnesota
Statutes, section 297A.99, govern the imposition, administration, collection, and enforcement
of the tax authorized under this subdivision. The tax imposed under this subdivision is in
addition to any other local sales and use tax imposed by the city of St. Paul under any other
special law.
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 Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 5.

Laws 1993, chapter 375, article 9, section 46, as amended by Laws 1997, chapter
231, article 7, section 40, Laws 1998, chapter 389, article 8, sections 30, 31, and 32, Laws
2003, First Special Session chapter 21, article 8, section 13, Laws 2005, First Special Session
chapter 3, article 5, sections 26 and 27, Laws 2009, chapter 88, article 4, sections 15 and
16, and Laws 2013, chapter 143, article 8, sections 44 and 45, is amended by adding a
subdivision to read:

new text begin Subd. 2b. new text end

new text begin Use of revenues. new text end

new text begin The revenues derived from the tax authorized under
subdivision 1a must be used by the city of St. Paul to pay the costs of collecting and
administering the tax and to finance all or part of the following projects in the city, including
securing and paying debt service on bonds issued under subdivision 3a:
new text end

new text begin (1) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (d),
$738,000,000, plus associated bonding costs for street improvements; and
new text end

new text begin (2) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (d),
$246,000,000, plus associated bonding costs for capital improvements to St. Paul parks and
recreation facilities.
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 Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 6.

Laws 1993, chapter 375, article 9, section 46, as amended by Laws 1997, chapter
231, article 7, section 40, Laws 1998, chapter 389, article 8, sections 30, 31, and 32, Laws
2003, First Special Session chapter 21, article 8, section 13, Laws 2005, First Special Session
chapter 3, article 5, sections 26 and 27, Laws 2009, chapter 88, article 4, sections 15 and
16, and Laws 2013, chapter 143, article 8, sections 44 and 45, is amended by adding a
subdivision to read:

new text begin Subd. 3a. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of St. Paul may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in
subdivision 2b and approved by the voters as required under Minnesota Statutes, section
297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued
under this subdivision may not exceed $984,000,000 for the projects listed in subdivision
2b, plus an amount to be applied to the payment of the costs of issuing the bonds.
new text end

new text begin (b) The bonds may be paid from or secured by any funds available to the city of St. Paul,
including the tax authorized under subdivision 1a. The issuance of bonds under this
subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (c) The bonds are not included in computing any debt limitation applicable to the city
of St. Paul, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
and interest on the bonds is not subject to any levy limitation. A separate election to approve
the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin 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 Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 7.

Laws 1993, chapter 375, article 9, section 46, subdivision 5, as amended by Laws
1998, chapter 389, article 8, section 32, and Laws 2013, chapter 143, article 8, section 45,
is amended to read:

Subd. 5.

Expiration of taxing authority.

new text begin (a) new text end The authority granted by subdivision 1 to
the city to impose a sales tax shall expire on December 31, 2042, or at an earlier time as the
city shall, by ordinance, determine. Any funds remaining after completion of projects
approved under subdivision 2, paragraph (a) and retirement or redemption of any bonds or
other obligations may be placed in the general fund of the city.

new text begin (b) The tax imposed under subdivision 1a expires at the earlier of (1) 20 years after the
tax is first imposed, or (2) when the city council determines that the amount of revenues
received from the tax is sufficient to pay for the project costs authorized under subdivision
2b for projects approved by the voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of the bonds under subdivision 3a, including interest on the bonds. Except as otherwise
provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds
remaining after payment of the allowed costs due to the timing of the termination of the tax
under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general
fund of the city. The tax imposed under subdivision 1a may expire at an earlier time if the
city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of St. Paul and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 8.

Laws 1998, chapter 389, article 8, section 43, as amended by Laws 2005, First
Special Session chapter 3, article 5, sections 28, 29, and 30, Laws 2011, First Special Session
chapter 7, article 4, sections 5, 6, and 7, and Laws 2013, chapter 143, article 10, sections
11, 12, and 13, is amended by adding a subdivision to read:

new text begin Subd. 1a. new text end

new text begin Authorization; extension. new text end

new text begin Notwithstanding Minnesota Statutes, section
477A.016, or any other law, ordinance, or city charter, and notwithstanding Minnesota
Statutes, section 297A.99, subdivision 3, paragraph (d), if approved by the voters at an
election held in 2023, the city of Rochester may extend the sales and use tax of one-half of
one percent authorized under subdivision 1, paragraph (a), for the purposes specified in
subdivision 3a. Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3,
paragraph (a), the city may, but is not required to, present one question on the ballot for all
projects authorized under subdivision 3a. If all projects are presented in one question, the
question must state each project proposed to be funded with the tax, the amount for each
project proposed to be funded with the tax, and the estimated length of time the tax will be
in effect for each project. Except as otherwise provided in this section, the provisions of
Minnesota Statutes, section 297A.99, govern the imposition, administration, collection, and
enforcement of the tax authorized under this subdivision. The tax imposed under this
subdivision is in addition to any local sales and use tax imposed under any other special
law.
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 Rochester and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 9.

Laws 1998, chapter 389, article 8, section 43, as amended by Laws 2005, First
Special Session chapter 3, article 5, sections 28, 29, and 30, Laws 2011, First Special Session
chapter 7, article 4, sections 5, 6, and 7, and Laws 2013, chapter 143, article 10, sections
11, 12, and 13, is amended by adding a subdivision to read:

new text begin Subd. 3a. new text end

new text begin Use of sales and use tax revenues; additional projects. new text end

new text begin (a) The revenues
derived from the extension of the tax authorized under subdivision 1a must be used by the
city of Rochester to pay the costs of collecting and administering the tax and paying for the
following projects in the city, including securing and paying debt service on bonds issued
to finance all or part of the following projects, plus associated bonding costs:
new text end

new text begin (1) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraphs (a)
and (b):
new text end

new text begin (i) $60,000,000 for an economic vitality fund and expenses eligible to be paid from the
fund, subject to adoption of a resolution under paragraph (c), clause (1); or
new text end

new text begin (ii) $50,000,000 for an economic vitality fund and expenses eligible to be paid from the
fund, subject to the requirements of paragraph (c), clause (2);
new text end

new text begin (2) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (d),
$50,000,000 for street reconstruction;
new text end

new text begin (3) notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraph (d),
$40,000,000 for flood control and water quality, excluding removal of the MN00515 dam;
and
new text end

new text begin (4) $65,000,000 for a sports and recreation complex.
new text end

new text begin (b) The city must use $10,000,000 of the money allocated to the purpose in paragraph
(a), clause (1), for a grant to Rochester Area Economic Development Incorporated to establish
the EverRAEDI development fund. Of that amount, $5,000,000 must be used for grants and
loans for economic development projects in communities located in the city of Rochester,
and $5,000,000 must be used for grants and loans for economic development projects in
communities located in the Rochester metropolitan statistical area and the cities of Pine
Island, St. Charles, and Zumbrota, excluding the city of Rochester. Rochester Area Economic
Development Incorporated may charge grant and loan recipients a service fee of up to five
percent of the grant or loan amount to pay for administrative costs associated with the
EverRAEDI development fund. Rochester Area Economic Development Incorporated shall
report on, at minimum, an annual basis on all EverRAEDI fund activities to the governing
board of the city of Rochester.
new text end

new text begin (c) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 2, paragraphs
(a), (b), and (d), the city must either:
new text end

new text begin (1) pass a resolution that authorizes $10,000,000 of the revenues from the tax authorized
under subdivision 1a for the use described in paragraph (a), clause (1), item (i), to be used
for an economic development fund for the purposes specified in paragraph (b); or
new text end

new text begin (2) if the city does not pass a resolution under clause (1), the city must allocate
$10,000,000 from the amount authorized in paragraph (a), clause (1), item (ii), for the
purposes specified in paragraph (b).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after compliance by the governing
body of the city of Rochester with Minnesota Statutes, section 645.021.
new text end

Sec. 10.

Laws 1998, chapter 389, article 8, section 43, as amended by Laws 2005, First
Special Session chapter 3, article 5, sections 28, 29, and 30, Laws 2011, First Special Session
chapter 7, article 4, sections 5, 6, and 7, and Laws 2013, chapter 143, article 10, sections
11, 12, and 13, is amended by adding a subdivision to read:

new text begin Subd. 4a. new text end

new text begin Bonding authority; additional projects and extension of tax. new text end

new text begin (a) The city
of Rochester may issue bonds under Minnesota Statutes, chapter 475, to finance all or a
portion of the costs of the projects authorized in subdivision 3a and approved by the voters
as required under Minnesota Statutes, section 297A.99, subdivision 3, paragraph (a). The
aggregate principal amount of bonds issued under this subdivision may not exceed:
new text end

new text begin (1) if the city passes a resolution under subdivision 3a, paragraph (c), clause (1),
$215,000,000 for the projects described in subdivision 3a, paragraph (a), clauses (1), item
(i), and (2) to (4), plus an amount to be applied to the payment of the costs of issuing the
bonds; or
new text end

new text begin (2) if the city does not pass a resolution under subdivision 3a, paragraph (c), clause (1),
$205,000,000 for the projects described in subdivision 3a, paragraph (a), clauses (1), item
(ii), and (2) to (4), plus an amount to be applied to the payment of the costs of issuing the
bonds.
new text end

new text begin (b) The bonds may be paid from or secured by any funds available to the city of
Rochester, including the tax authorized under subdivision 1a and the full faith and credit
of the city. The issuance of bonds under this subdivision is not subject to Minnesota Statutes,
sections 275.60 and 275.61.
new text end

new text begin (c) The bonds are not included in computing any debt limitation applicable to the city
of Rochester, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
and interest on the bonds is not subject to any levy limitation. A separate election to approve
the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Rochester and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 11.

Laws 1998, chapter 389, article 8, section 43, subdivision 5, as amended by Laws
2005, First Special Session chapter 3, article 5, section 30, Laws 2011, First Special Session
chapter 7, article 4, section 7, and Laws 2013, chapter 143, article 10, section 13, is amended
to read:

Subd. 5.

Termination of taxes.

(a) The taxes imposed under subdivisions 1 and 2 expire
at the later of (1) December 31, 2009, or (2) when the city council determines that sufficient
funds have been received from the taxes to finance the first $71,500,000 of capital
expenditures and bonds for the projects authorized in subdivision 3, including the amount
to prepay or retire at maturity the principal, interest, and premium due on any bonds issued
for the projects under subdivision 4, unless the taxes are extended as allowed in paragraph
(b). Any funds remaining after completion of the project and retirement or redemption of
the bonds shall also be used to fund the projects under subdivision 3. The taxes imposed
under subdivisions 1 and 2 may expire at an earlier time if the city so determines by
ordinance.

(b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any other
contrary provision of law, ordinance, or city charter, the city of Rochester may, by ordinance,
extend the taxes authorized in subdivisions 1 and 2 beyond December 31, 2009, if approved
by the voters of the city at a special election in 2005 or the general election in 2006. The
question put to the voters must indicate that an affirmative vote would allow up to an
additional $40,000,000 of sales tax revenues be raised and up to $40,000,000 of bonds to
be issued above the amount authorized in the June 23, 1998, referendum for the projects
specified in subdivision 3. If the taxes authorized in subdivisions 1 and 2 are extended under
this paragraph, the taxes expire when the city council determines that sufficient funds have
been received from the taxes to finance the projects and to prepay or retire at maturity the
principal, interest, and premium due on any bonds issued for the projects under subdivision
4. Any funds remaining after completion of the project and retirement or redemption of the
bonds may be placed in the general fund of the city.

(c) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any other
contrary provision of law, ordinance, or city charter, the city of Rochester may, by ordinance,
extend the taxes authorized in subdivisions 1, paragraph (a), and 2, up to December 31,
2049, provided that all additional revenues above those necessary to fund the projects and
associated financing costs listed in subdivision 3, paragraphs (a) to (e), are committed to
fund public infrastructure projects contained in the development plan adopted under
Minnesota Statutes, section 469.43, including all financing costs; otherwise the taxes
terminate when the city council determines that sufficient funds have been received from
the taxes to finance expenditures and bonds for the projects authorized in subdivision 3,
paragraphs (a) to (e), plus an amount equal to the costs of issuance of the bonds and including
the amount to prepay or retire at maturity the principal, interest, and premiums due on any
bonds issued for the projects under subdivision 4.

(d) The tax imposed under subdivision 1, paragraph (b), expires at the earlier of new text begin December
31, new text end 2049, or when the city council determines that sufficient funds have been raised from
the tax plus all other city funding sources authorized in this article to meet the city obligation
for financing the public infrastructure projects contained in the development plan adopted
under Minnesota Statutes, section 469.43, including all financing costs.

new text begin (e) The tax imposed under subdivision 1a expires at the earlier of (1) 24 years after first
imposed, or (2) when the city council determines that the amount of revenues received from
the tax is sufficient to pay for the project costs authorized under subdivision 3a for projects
approved by the voters as required under Minnesota Statutes, section 297A.99, subdivision
3, paragraph (a), plus an amount sufficient to pay the costs related to issuance of the bonds
under subdivision 4a, including interest on the bonds. Except as otherwise provided in
Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining
after payment of the allowed costs due to the timing of the termination of the tax under
Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general fund of
the city. The tax imposed under subdivision 1a may expire at an earlier time if the city so
determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Rochester and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 12.

Laws 2008, chapter 366, article 7, section 20, as amended by Laws 2017, First
Special Session chapter 1, article 5, section 17, is amended to read:

Sec. 20. CITY OF NORTH MANKATO; TAXES AUTHORIZED.

Subdivision 1.

Sales and use tax authorized.

Notwithstanding Minnesota Statutes,
section 477A.016, or any other provision of law, ordinance, or city charter, pursuant to the
approval of the voters on November 7, 2006, the city of North Mankato may impose by
ordinance a sales and use tax of one-half of one percent for the purposes specified in
subdivision 2. The provisions of Minnesota Statutes, section 297A.99, govern the imposition,
administration, collection, and enforcement of the taxes authorized under this subdivision.

Subd. 2.

Use of revenues.

Revenues received from the tax authorized by subdivision 1
must be used to pay all or part of the capital costs of the following projects:

(1) the local share of the Trunk Highway 14/County State-Aid Highway 41 interchange
project;

(2) development of regional parks and hiking and biking trails, including construction
of indoor regional athletic facilities;

(3) expansion of the North Mankato Taylor Library;

(4) riverfront redevelopment; and

(5) lake improvement projects.

The total amount of revenues from the tax in subdivision 1 that may be used to fund
these projects is $15,000,000 plus any associated bond costs.

Subd. 2a.

Authorization to extend the tax.

Notwithstanding Minnesota Statutes, section
297A.99, subdivision 3, the North Mankato city council may, by resolution, extend the tax
authorized under subdivision 1 to cover an additional deleted text begin $9,000,000 deleted text end new text begin $15,000,000 new text end in bonds,
plus associated bond costs, to fund the projects in subdivision 2 pursuant to voter approval
to extend the tax at the November 8, 2016, general election.

Subd. 3.

Bonds.

(a) The city of North Mankato, pursuant to the approval of the voters
at the November 7, 2006 referendum authorizing the imposition of the taxes in this section,
may issue bonds under Minnesota Statutes, chapter 475, to pay capital and administrative
expenses for the projects described in subdivision 2, in an amount that does not exceed
$6,000,000. A separate election to approve the bonds under Minnesota Statutes, section
475.58, is not required.

(b) The city of North Mankato, pursuant to approval of the voters at the November 8,
2016, referendum extending the tax to provide additional revenue to be spent for the projects
in subdivision 2, may issue additional bonds under Minnesota Statutes, chapter 475, to pay
capital and administrative expenses for those projects in an amount that does not exceed
deleted text begin $9,000,000 deleted text end new text begin $15,000,000 new text end . A separate election to approve the bonds under Minnesota Statutes,
section 475.58, is not required.

(c) The debt represented by the bonds is not included in computing any debt limitation
applicable to the city, and any levy of taxes under Minnesota Statutes, section 475.61, to
pay principal and interest on the bonds is not subject to any levy limitation.

Subd. 4.

Termination of taxes.

The tax imposed under subdivision 1 expires at the
earlier of December 31, deleted text begin 2038 deleted text end new text begin 2044 new text end , or when revenues from the taxes first equal or exceed
deleted text begin $15,000,000 deleted text end new text begin $21,000,000 new text end plus the additional amount needed to pay costs related to issuance
of bonds under subdivision 3, including interest. Any funds remaining after completion of
the projects and retirement or redemption of the bonds shall be placed in a capital facilities
and equipment replacement fund of the city. The tax imposed under subdivision 1 may
expire at an earlier time if the city so determines by ordinance.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of North Mankato and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 13.

Laws 2011, First Special Session chapter 7, article 4, section 14, is amended to
read:

Sec. 14. CITY OF MARSHALL; SALES AND USE TAX.

Subdivision 1.

Authorization.

Notwithstanding Minnesota Statutes, section 297A.99,
subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city charter, the city of
Marshall, if approved by the voters at a general election held within two years of the date
of final enactment of this section, may impose the tax authorized under subdivision 2. Two
separate ballot questions must be presented to the voters, one for each of the two facility
projects named in subdivision 3.

Subd. 2.

Sales and use tax authorized.

The city of Marshall may impose by ordinance
a sales and use tax of up to one-half of one percent for the purposes specified in subdivision
3. The provisions of Minnesota Statutes, section 297A.99, except subdivisions 1 and 2,
govern the imposition, administration, collection, and enforcement of the tax authorized
under this subdivision.

new text begin Subd. 2a. new text end

new text begin Authorization; extension. new text end

new text begin (a) Notwithstanding Minnesota Statutes, section
297A.99, subdivision 3, paragraph (d), or 477A.016, or any other law, ordinance, or city
charter, after payment of the bonds authorized under subdivision 4, and if approved by the
voters at an election held on November 7, 2023, the city of Marshall may extend the sales
and use tax of one-half of one percent authorized under subdivision 2 for the purposes
specified in subdivision 3a.
new text end

new text begin (b) Except as otherwise provided in this section, the provisions of Minnesota Statutes,
section 297A.99, govern the imposition, administration, collection, and enforcement of the
tax authorized under this subdivision. The tax imposed under this subdivision is in addition
to any local sales and use tax imposed under any other special law.
new text end

Subd. 3.

Use of sales and use tax revenues.

The revenues derived from the tax authorized
under subdivision 2 must be used by the city of Marshall to pay the costs of collecting and
administering the sales and use tax and to pay all or part of the costs of the new and existing
facilities of the Minnesota Emergency Response and Industry Training Center and all or
part of the costs of the new facilities of the Southwest Minnesota Regional Amateur Sports
Center. Authorized expenses include, but are not limited to, acquiring property, predesign,
design, and paying construction, furnishing, and equipment costs related to these facilities
and paying debt service on bonds or other obligations issued by the city of Marshall under
subdivision 4 to finance the capital costs of these facilities.

new text begin Subd. 3a. new text end

new text begin Use of sales and use tax revenues; aquatic center. new text end

new text begin The revenues derived
from the extension of the tax authorized under subdivision 2a must be used by the city of
Marshall to pay the costs of collecting and administering the tax and paying for $18,370,000
plus associated bonding costs for the construction of a new municipal aquatic center in the
city, including securing and paying debt service on bonds issued to finance the project.
new text end

Subd. 4.

Bonds.

(a) If the imposition of a sales and use tax is approved by the voters,
the city of Marshall may issue bonds under Minnesota Statutes, chapter 475, to finance all
or a portion of the costs of the facilities authorized in subdivision 3, and may issue bonds
to refund bonds previously issued. The aggregate principal amount of bonds issued under
this subdivision may not exceed $17,290,000, plus an amount to be applied to the payment
of the costs of issuing the bonds. The bonds may be paid from or secured by any funds
available to the city of Marshall, including the tax authorized under subdivision 2.

(b) The bonds are not included in computing any debt limitation applicable to the city
of Marshall, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
and interest on the bonds, is not subject to any levy limitation. A separate election to approve
the bonds under Minnesota Statutes, section 475.58, is not required.

new text begin Subd. 4a. new text end

new text begin Bonds; additional use and extension of tax. new text end

new text begin (a) After payment of the bonds
authorized under subdivision 4, the city of Marshall may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in
subdivision 2a. The aggregate principal amount of bonds issued under this subdivision may
not exceed $18,370,000, plus an amount to be applied to the payment of the costs of issuing
the bonds. The bonds may be paid from or secured by any funds available to the city of
Marshall, including the tax authorized under subdivision 2a. The issuance of bonds under
this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the city
of Marshall, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
and interest on the bonds is not subject to any levy limitation. A separate election to approve
the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

Subd. 5.

Termination of taxes.

new text begin (a) new text end The tax imposed under subdivision 2 expires at the
earlier of (1) 15 years after the tax is first imposed, or (2) when the city council determines
that the amount of revenues received from the tax to pay for the capital and administrative
costs of the facilities under subdivision 3 first equals or exceeds the amount authorized to
be spent for the facilities plus the additional amount needed to pay the costs related to
issuance of the bonds under subdivision 4, including interest on the bonds. Any funds
remaining after payment of all such costs and retirement or redemption of the bonds shall
be placed in the general fund of the city. The tax imposed under subdivision 2 may expire
at an earlier time if the city so determines by ordinance.

new text begin (b) The tax imposed under subdivision 2a expires at the earlier of (1) 35 years after the
tax under subdivision 2 is first imposed, or (2) when the city council determines that the
amount of revenues received from the tax is sufficient to pay for the project costs authorized
under subdivision 3a, plus an amount sufficient to pay the costs related to issuance of the
bonds under subdivision 4a, including interest on the bonds. Except as otherwise provided
in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining
after payment of the allowed costs due to the timing of the termination of the tax under
Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general fund of
the city. The tax imposed under subdivision 2a may expire at an earlier time if the city so
determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after compliance by the governing
body of the city of Marshall and its chief clerical officer with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 14.

Laws 2019, First Special Session chapter 6, article 6, section 13, is amended by
adding a subdivision to read:

new text begin Subd. 1a. new text end

new text begin Sales and use tax authorization; modification. new text end

new text begin Notwithstanding Minnesota
Statutes, section 477A.016, or any other law, ordinance, or city charter, the modifications
to bonding authority in subdivision 3 and the amount of tax that may be collected before
the termination of taxes in subdivision 5 are effective if approved by the voters at an election
as required under Minnesota Statutes, section 297A.99, subdivision 3.
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 Avon and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 15.

Laws 2019, First Special Session chapter 6, article 6, section 13, subdivision 3,
is amended to read:

Subd. 3.

Bonding authority.

(a) The city may issue bonds under Minnesota Statutes,
chapter 475, to pay the costs of the projects authorized in subdivision 2. The aggregate
principal amount of bonds issued under this subdivision may not exceed deleted text begin $1,500,000 deleted text end new text begin
$8,135,000 new text end plus an amount to be applied to the payment of the costs of issuing the bonds.
The bonds may be paid from or secured by any funds available to the city, including the
tax authorized under subdivision 1. The issuance of bonds under this subdivision is not
subject to Minnesota Statutes, sections 275.60 and 275.61.

(b) The bonds are not included in computing any debt limitation applicable to the city,
and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.

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 Avon and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 16.

Laws 2019, First Special Session chapter 6, article 6, section 13, subdivision 4,
is amended to read:

Subd. 4.

Termination of taxes.

(a) The tax imposed under subdivision 1 expires at the
earlier of: (1) December 31, 2045; or (2) when the city council determines that deleted text begin $1,500,000 deleted text end new text begin
$8,135,000 new text end has been received from the tax to pay for the cost of the projects authorized
under subdivision 2, plus an amount sufficient to pay the costs related to issuance of the
bonds authorized under subdivision 3, including interest on the bonds.

(b) Any funds remaining after payment of all such costs and retirement or redemption
of the bonds shall be placed in the general fund of the city. The tax imposed under subdivision
1 may expire at an earlier time if the city so determines by ordinance.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Avon and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 17.

Laws 2019, First Special Session chapter 6, article 6, section 18, is amended to
read:

Sec. 18. CITY OF EXCELSIOR; LOCAL SALES AND USE TAX AUTHORIZED.

Subdivision 1.

Sales and use tax authorization.

Notwithstanding Minnesota Statutes,
section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city
charter, the city of Excelsior may impose, by ordinance, a sales and use tax of up to one-half
of one percent for the purposes specified in subdivision 2, as approved by the voters at the
November 4, 2014, general election. Except as otherwise provided in this section, the
provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
collection, and enforcement of the tax authorized under this subdivision.

new text begin Subd. 1a. new text end

new text begin Authorization; additional revenues allowed. new text end

new text begin Notwithstanding Minnesota
Statutes, section 477A.016, or any other law, ordinance, or city charter, and if approved by
the voters at an election as required under Minnesota Statutes, section 297A.99, subdivision
3, the city of Excelsior may collect additional revenue from the sales and use tax authorized
under subdivision 1, for the purpose specified in subdivision 2a. Except as otherwise provided
in this section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition,
administration, collection, and enforcement of the tax authorized under this subdivision.
The tax imposed under this subdivision is in addition to any local sales and use tax imposed
under any other special law.
new text end

Subd. 2.

Use of sales and use tax revenues.

The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Excelsior to pay the costs of collecting and
administering the tax and to finance the capital and administrative costs of improvements
to the commons as indicated in the Commons Master Plan as adopted by the city council
on November 20, 2017. Authorized expenses include, but are not limited to, improvements
for walkability and accessibility, enhancement of beach area and facilities, prevention and
management of shoreline erosion, redesign of the port and band shell, improvement of
playground equipment, and securing and paying debt service on bonds issued under
subdivision 3 or other obligations issued to the improvements listed in this subdivision in
the city of Excelsior.

new text begin Subd. 2a. new text end

new text begin Use of sales and use tax revenues; expanded. new text end

new text begin The revenues derived from
the additional authorization granted under subdivision 1a must be used by the city of
Excelsior to pay the costs of collecting and administering the tax and paying for $23,000,000,
plus associated bonding costs, for the costs of improvements to the commons as indicated
in the Commons Master Plan as adopted by the city council on January 9, 2023, including
securing and paying debt service on bonds issued to finance the project.
new text end

Subd. 3.

Bonding authority.

(a) If the imposition of the tax is approved by the voters
under subdivision 1, the city of Excelsior may issue bonds under Minnesota Statutes, chapter
475, to finance all or a portion of the costs of the projects authorized in subdivision 2,
without a second vote. The aggregate principal amount of bonds issued under this subdivision
may not exceed $7,000,000, plus an amount to be applied to the payment of the costs of
issuing the bonds. The bonds may be paid from or secured by any funds available to the
city of Excelsior, including the tax authorized under subdivision 1. The issuance of bonds
under this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.

(b) The bonds are not included in computing any debt limitation applicable to the city
of Excelsior, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
and interest on the bonds is not subject to any levy limitation. A separate election to approve
the bonds under Minnesota Statutes, section 475.58, is not required.

new text begin Subd. 3a. new text end

new text begin Bonding authority; additional use of tax. new text end

new text begin (a) After payment of the bonds
authorized under subdivision 3, the city of Excelsior may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in
subdivision 2a. The aggregate principal amount of bonds issued under this subdivision may
not exceed $23,000,000, plus an amount to be applied to the payment of the costs of issuing
the bonds.
new text end

new text begin (b) The bonds may be paid from or secured by any funds available to the city of Excelsior,
including the tax authorized under subdivision 1a. The issuance of bonds under this
subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (c) The bonds are not included in computing any debt limitation applicable to the city
of Excelsior, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
and interest on the bonds is not subject to any levy limitation. A separate election to approve
the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

Subd. 4.

Termination of taxes.

The tax imposed under subdivision 1 new text begin and subdivision
1a new text end expires at the earlier of: (1) 25 years after the tax is first imposed; or (2) when the city
council determines that deleted text begin $7,000,000 deleted text end new text begin $30,000,000 new text end has been received from the tax to pay for
the cost of the projects authorized under subdivision 2 new text begin and subdivision 2a new text end , plus an amount
sufficient to pay the costs related to issuance of the bonds authorized under subdivision 3 new text begin
and subdivision 3a new text end , including interest on the bonds. Any funds remaining after payment of
all such costs and retirement or redemption of the bonds shall be placed in the general fund
of the city. The tax imposed under subdivision 1 may expire at an earlier time if the city so
determines by ordinance.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Excelsior and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 18.

Laws 2019, First Special Session chapter 6, article 6, section 26, is amended to
read:

Sec. 26. CITY OF ROGERS; LOCAL TAXES AUTHORIZED.

Subdivision 1.

Sales and use tax authorization.

Notwithstanding Minnesota Statutes,
sections 297A.99 and 477A.016, or any other law or ordinance, and as approved by the
voters at the general election of November 6, 2018, the city of Rogers may impose, by
ordinance, a sales and use tax of one-quarter of one percent for the purposes specified in
subdivision 3. Except as otherwise provided in this section, the provisions of Minnesota
Statutes, section 297A.99, govern the imposition, administration, collection, and enforcement
of the taxes authorized under this subdivision.

Subd. 2.

Excise tax authorized.

Notwithstanding Minnesota Statutes, section 477A.016,
or any other contrary provision of law, or ordinance, the city of Rogers may impose by
ordinance, for the purposes specified in subdivision 3, an excise tax of up to $20 per motor
vehicle, as defined by ordinance, purchased or acquired from any person engaged within
the city of Rogers in the business of selling motor vehicles at retail.

Subd. 3.

Use of sales and use tax and excise tax revenues.

(a) The revenues derived
from the taxes authorized under subdivisions 1 and 2 must be used by the city of Rogers to
pay the costs of collecting and administering the taxes and the capital and administrative
costs of any or all of the following projects:

(1) trail and pedestrian facilities including an I-94 pedestrian crossing, a County Road
144 pedestrian tunnel, and other new trails and trail connections;

(2) aquatics facilities consisting of either or both of a splash pad and any contribution
toward the community portion of a school pool; and

(3) community athletic facilities including construction of South Community park, site
improvements for future recreation facilities, and a multipurpose indoor turf facility.

(b) The total that may be raised from the taxes to pay for these projects is limited to
deleted text begin $16,500,000 deleted text end new text begin $25,000,000 new text end , plus the costs related to the issuance and paying debt service on
bonds for these projects.

Subd. 4.

Bonding authority.

(a) The city of Rogers may issue bonds under Minnesota
Statutes, chapter 475, pursuant to approval by the voters at the general election of November
6, 2018, to finance all or a portion of the costs of the projects authorized in subdivision 3.
The aggregate principal amount of bonds issued under this subdivision may not exceed
deleted text begin $16,500,000 deleted text end new text begin $25,000,000 new text end , minus an amount equal to any state grant authorized before
October 1, 2019, to fund any of the projects listed in subdivision 3, and plus an amount
equal to interest on and the costs of issuing the bonds. The bonds may be paid from or
secured by any funds available to the city of Rogers, including the taxes authorized under
subdivisions 1 and 2.

(b) The bonds are not included in computing any debt limitation applicable to the city
of Rogers, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
and interest on the bonds is not subject to any levy limitation. A separate election to approve
the bonds under Minnesota Statutes, section 475.58, is not required.

Subd. 5.

Termination of taxes.

The taxes imposed under subdivisions 1 and 2 expire
at the earlier of: (1) 20 years after the taxes are first imposed; or (2) when the city council
determines that deleted text begin $16,500,000 deleted text end new text begin $25,000,000 new text end , minus an amount equal to any state grant
authorized before October 1, 2019, to fund any of the projects listed in subdivision 3, and
plus an amount sufficient to pay interest on and the costs of issuing the bonds authorized
under subdivision 4, has been received from the taxes to pay for the cost of the projects
authorized under subdivision 3. Any funds remaining after payment of all such costs and
payment of the bonds in full shall be placed in the general fund of the city. The taxes imposed
under subdivisions 1 and 2 may expire at an earlier time if the city so determines by
ordinance.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Rogers and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 19.

Laws 2021, First Special Session chapter 14, article 8, section 5, is amended to
read:

Sec. 5. CITY OF EDINA; TAXES AUTHORIZED.

Subdivision 1.

Sales and use tax authorization.

Notwithstanding Minnesota Statutes,
section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
and if approved by the voters at a general election as required under Minnesota Statutes,
section 297A.99, subdivision 3, the city of Edina may impose by ordinance a sales and use
tax of one-half of one percent for the purposes specified in subdivision 2. Except as otherwise
provided in this section, the provisions of Minnesota Statutes, section 297A.99, govern the
imposition, administration, collection, and enforcement of the tax authorized under this
subdivision. The tax imposed under this subdivision is in addition to any local sales and
use tax imposed under any other special law.

Subd. 2.

Use of sales and use tax revenues.

The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Edina to pay the costs of collecting and
administering the tax and paying for the following projects in the city, including securing
and paying debt service on bonds issued to finance all or part of the following projects:

(1) $17,700,000 plus associated bonding costs for development of Fred Richards Park
as identified in the Fred Richards Park Master Plan; and

(2) deleted text begin $21,600,000 deleted text end new text begin $53,300,000 new text end plus associated bonding costs for improvements to Braemar
Park as identified in the Braemar Park Master Plan.

Subd. 3.

Bonding authority.

(a) The city of Edina may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in
subdivision 2 and approved by the voters as required under Minnesota Statutes, section
297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued
under this subdivision may not exceed: (1) $17,700,000 for the project listed in subdivision
2, clause (1), plus an amount to be applied to the payment of the costs of issuing the bonds;
and (2) deleted text begin $21,600,000 deleted text end new text begin $53,300,000 new text end for the project listed in subdivision 2, clause (2), plus an
amount to be applied to the payment of the costs of issuing the bonds. The bonds may be
paid from or secured by any funds available to the city of Edina, including the tax authorized
under subdivision 1. The issuance of bonds under this subdivision is not subject to Minnesota
Statutes, sections 275.60 and 275.61.

(b) The bonds are not included in computing any debt limitation applicable to the city
of Edina, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
and interest on the bonds is not subject to any levy limitation. A separate election to approve
the bonds under Minnesota Statutes, section 475.58, is not required.

Subd. 4.

Termination of taxes.

Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 19 years
after the tax is first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any funds remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the
general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time
if the city so determines by ordinance.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Edina and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 20.

Laws 2021, First Special Session chapter 14, article 8, section 6, subdivision 2,
is amended to read:

Subd. 2.

Use of sales and use tax revenues.

new text begin (a) new text end The revenues derived from the tax
authorized under subdivision 1 must be used by the city of Fergus Falls to pay the costs of
collecting and administering the tax and for the following projects in the city, including
securing and paying debt service, on bonds issued to finance all or part of the following
projects:

(1) $7,800,000 for an aquatics center; and

(2) $5,200,000 for the DeLagoon Improvement Project.

new text begin (b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and as approved
by the voters at the November 8, 2022, general election, the city of Fergus Falls may by
ordinance increase the cost for the project in paragraph (a), clause (1), by up to $3,000,000,
without holding another local election.
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 Fergus Falls and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 21.

Laws 2021, First Special Session chapter 14, article 8, section 6, subdivision 3,
is amended to read:

Subd. 3.

Bonding authority.

(a) The city of Fergus Falls may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities
authorized in subdivision 2, and approved by the voters as required under Minnesota Statutes,
section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds
issued under this subdivision may not exceed:

(1) $7,800,000 for the project listed in subdivision 2, clause (1), plus an amount needed
to pay capitalized interest and an amount to be applied to the payment of the costs of issuing
the bonds; and

(2) $5,200,000 for the project listed in subdivision 2, clause (2), plus an amount needed
to pay capitalized interest and an amount to be applied to the payment of the costs of issuing
the bonds.

(b) The bonds may be paid from or secured by any funds available to the city of Fergus
Falls, including the tax authorized under subdivision 1. The issuance of bonds under this
subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.

(c) The bonds are not included in computing any debt limitation applicable to the city
of Fergus Falls, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
principal and interest on the bonds is not subject to any levy limitation. A separate election
to approve the bonds under Minnesota Statutes, section 475.58, is not required.

new text begin (d) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and as approved
by the voters at the November 8, 2022, general election, the city of Fergus Falls may by
ordinance increase the amount of bonding for the project in paragraph (a), clause (1), by up
to $3,000,000, without holding another local election.
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 Fergus Falls and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 22.

Laws 2021, First Special Session chapter 14, article 8, section 15, subdivision 2,
is amended to read:

Subd. 2.

Use of sales and use tax revenues.

The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Oakdale to pay the costs of collecting and
administering the tax and paying for the following projects in the city, including securing
and paying debt service on bonds issued to finance all or part of the following projects:

(1) deleted text begin $22,000,000 deleted text end new text begin $28,000,000 new text end plus associated bonding costs for construction of a new
public works facility; and

(2) deleted text begin $15,000,000 deleted text end new text begin $18,000,000 new text end plus associated bonding costs for construction and
rehabilitation, and associated building costs of the police department facility.

Sec. 23.

Laws 2021, First Special Session chapter 14, article 8, section 15, subdivision 3,
is amended to read:

Subd. 3.

Bonding authority.

(a) The city of Oakdale may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in
subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
not exceed: (1) deleted text begin $22,000,000 deleted text end new text begin $28,000,000 new text end for the project listed in subdivision 2, clause (1),
plus an amount applied to the payment of costs of issuing the bonds; and (2) deleted text begin $15,000,000 deleted text end new text begin
$18,000,000 new text end for the projects listed in subdivision 2, clause (2), plus an amount applied to
the payment of costs of issuing the bonds. The bonds may be paid from or secured by any
funds available to the city of Oakdale, including the tax authorized under subdivision 1.
The issuance of bonds under this subdivision is not subject to Minnesota Statutes, sections
275.60 and 275.61.

(b) The bonds are not included in computing any debt limitation applicable to the city.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.

Sec. 24.

Laws 2021, First Special Session chapter 14, article 8, section 15, subdivision 4,
is amended to read:

Subd. 4.

Termination of taxes.

The tax imposed under subdivision 1 expires at the
earlier of: (1) deleted text begin 25 deleted text end new text begin 30 new text end years after the tax is first imposed; or (2) when the city council
determines that the city has received from this tax deleted text begin $37,000,000 deleted text end new text begin $46,000,000 new text end to fund the
projects listed in subdivision 2, plus an amount sufficient to pay costs related to issuance
of any bonds authorized in subdivision 3, including interest on the bonds. Except as otherwise
provided under Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds
remaining after payment of the allowed costs due to timing of the termination under
Minnesota Statutes, section 297A.99, shall be placed in the city's general fund. The tax
imposed under subdivision 1 may expire at an earlier time if the city so determines by
ordinance.

Sec. 25.

Laws 2021, First Special Session chapter 14, article 8, section 15, is amended by
adding a subdivision to read:

new text begin Subd. 5. new text end

new text begin Requirements. new text end

new text begin (a) The city of Oakdale must adopt a resolution that includes
the requirements of Minnesota Statutes, section 297A.99, subdivision 2, paragraph (a), and
reflects the increases in project costs and bond issuance in subdivisions 2 and 3 and the
increase in the duration of the tax in subdivision 4, and submit the resolution to the state
auditor no later than September 1, 2023.
new text end

new text begin (b) The modifications in subdivisions 2 to 4 are subject to approval by the voters of the
city of Oakdale at an election conducted on the first Tuesday after the first Monday in
November within the two-year period after the governing body of the city has received
authority to modify the tax. Notwithstanding the authorizing legislation, a modification that
is not approved by the voters may not be funded with the local sales tax revenue and the
termination date of the tax set in subdivision 4 must be reduced proportionately based on
the share of that project's cost to the total costs of all projects included in the authorizing
legislation.
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 Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 26.

Laws 2021, First Special Session chapter 14, article 8, section 20, subdivision 4,
is amended to read:

Subd. 4.

Termination of taxes.

Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) deleted text begin 19 deleted text end new text begin 20 new text end years
after the tax is first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any funds remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the
general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time
if the city so determines by ordinance.

new text 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 BELTRAMI COUNTY; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 297A.99, subdivision 1, or 477A.016, or any other law or ordinance, and if approved
by the voters at an election as required under Minnesota Statutes, section 297A.99,
subdivision 3, Beltrami County may impose by ordinance a sales and use tax of five-eighths
of one percent for the purpose specified in subdivision 2. Except as otherwise provided in
this section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition,
administration, collection, and enforcement of the tax authorized under this subdivision.
The tax imposed under this subdivision is in addition to any local sales and use tax imposed
under any other special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by Beltrami County to pay the costs of collecting and
administering the tax, and to finance up to $80,000,000 for the construction of a new county
jail. Authorized costs include the associated bond costs for any bonds issued under
subdivision 3.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) Beltrami County may issue bonds under Minnesota
Statutes, chapter 475, to finance the costs of the facility authorized in subdivision 2. The
aggregate principal amount of bonds issued under this subdivision may not exceed
$80,000,000 for the project listed in subdivision 2, plus an amount to be applied to the
payment of the costs of issuing the bonds. The bonds may be paid from or secured by any
funds available to the county, including the tax authorized under subdivision 1. The issuance
of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and
275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the county,
and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of: (1) 30 years
after the tax is first imposed; or (2) when the county board determines that the amount
received from the tax is sufficient to pay $80,000,000 in project costs authorized under
subdivision 2, plus an amount sufficient to pay the costs related to issuance of any bonds
authorized under subdivision 3, including interest on the bonds. Except as otherwise provided
in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining
after payment of the allowed costs due to the timing of the termination of the tax under
Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general fund of
the county. The tax imposed under subdivision 1 may expire at an earlier time if the county
so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of
Beltrami County and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 28. new text begin CITY OF BLACKDUCK; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the
city of Blackduck may impose, by ordinance, a sales and use tax of up to one-half of one
percent for the purposes specified in subdivision 2. Except as otherwise provided in this
section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition,
administration, collection, and enforcement of the tax authorized under this subdivision.
The tax imposed under this subdivision is in addition to any local sales and use tax imposed
under any other special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Blackduck to pay the costs of collecting
and administering the tax, including associated bond costs on bonds issued under subdivision
3, and securing and paying debt service on the bonds, and to finance all or part of the
following projects:
new text end

new text begin (1) $200,000 for electricity and utility improvements at the city campground;
new text end

new text begin (2) $250,000 for construction of a playground and ADA-compliant restroom at the city
wayside rest;
new text end

new text begin (3) $300,000 for trail extensions and improvements adjacent to Wayside Rest Park;
new text end

new text begin (4) $150,000 for irrigation improvements at the city golf course; and
new text end

new text begin (5) $100,000 for rehabilitation of the Blackduck Community Library.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of Blackduck may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in
subdivision 2 and approved by the voters as required under Minnesota Statutes, section
297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued
under this subdivision may not exceed:
new text end

new text begin (1) $200,000 for the project listed in subdivision 2, clause (1), plus an amount to be
applied to the payment of the costs of issuing the bonds;
new text end

new text begin (2) $250,000 for the project listed in subdivision 2, clause (2), plus an amount to be
applied to the payment of the costs of issuing the bonds;
new text end

new text begin (3) $300,000 for the project listed in subdivision 2, clause (3), plus an amount to be
applied to the payment of the costs of issuing the bonds;
new text end

new text begin (4) $150,000 for the project listed in subdivision 2, clause (4), plus an amount to be
applied to the payment of the costs of issuing the bonds; and
new text end

new text begin (5) $100,000 for the project listed in subdivision 2, clause (5), plus an amount to be
applied to the payment of the costs of issuing the bonds.
new text end

new text begin (b) The bonds may be paid from or secured by any funds available to the county, including
the tax authorized under subdivision 1. The issuance of bonds under this subdivision is not
subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (c) The bonds are not included in computing any debt limitation applicable to the county.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin The tax imposed under subdivision 1 expires at the
earlier of: (1) 20 years after the tax is first imposed; or (2) when the county determines that
the amount it has received from this tax is sufficient to pay for the project costs authorized
under subdivision 2 for projects approved by voters as required under Minnesota Statutes,
section 297A.99, subdivision 3, paragraph (a), plus an amount sufficient to pay the costs
related to issuance of any bonds authorized under subdivision 3, including interest on the
bonds. Except as otherwise provided in Minnesota Statutes, section 297A.99, subdivision
3, paragraph (f), any funds remaining after payment of the allowed costs due to timing of
the termination of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall
be placed in the county's general fund. The tax imposed under subdivision 1 may expire at
an earlier time if the county determines by ordinance.
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 Blackduck and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 29. new text begin CITY OF BLOOMINGTON; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
and if approved by the voters at an election as required under Minnesota Statutes, section
297A.99, subdivision 3, the city of Bloomington may impose by ordinance a sales and use
tax of one-half of one percent for the purposes specified in subdivision 2. Except as otherwise
provided in this section, the provisions of Minnesota Statutes, section 297A.99, govern the
imposition, administration, collection, and enforcement of the tax authorized under this
subdivision. The tax imposed under this subdivision is in addition to any local sales and
use tax imposed under any other special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin (a) The revenues derived from the tax
authorized under subdivision 1 must be used by the city of Bloomington to pay the costs of
collecting and administering the tax and paying for the following projects in the city,
including securing and paying debt service on bonds issued to finance all or part of the
following projects:
new text end

new text begin (1) $35,000,000 for new construction and rehabilitation of the Bloomington Ice Garden
and associated infrastructure;
new text end

new text begin (2) $100,000,000 for construction of a new Community Health and Wellness Center
and associated infrastructure; and
new text end

new text begin (3) $20,000,000 for new construction and restoration of the Nine Mile Creek Corridor
Renewal and associated infrastructure.
new text end

new text begin (b) For purposes of this subdivision, "associated infrastructure" includes but is not limited
to any or all of the following items required for the safe access or use of the capital projects:
facilities, roads, lighting, sidewalks, parking, landscaping, and utilities.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of Bloomington may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the projects
authorized in subdivision 2 and approved by the voters as required under Minnesota Statutes,
section 297A.99, subdivision 3, paragraph (a).The aggregate principal amount of bonds
issued under this subdivision may not exceed:
new text end

new text begin (1) $35,000,000 for the project listed in subdivision 2, paragraph (a), clause (1), plus an
amount to be applied to the payment of the costs of issuing the bonds;
new text end

new text begin (2) $100,000,000 for the project listed in subdivision 2, paragraph (a), clause (2), plus
an amount to be applied to the payment of the costs of issuing the bonds; and
new text end

new text begin (3) $20,000,000 for the project listed in subdivision 2, paragraph (a), clause (3), plus an
amount to be applied to the payment of the costs of issuing the bonds.
new text end

new text begin (b) The bonds may be paid from or secured by any funds available to the city of
Bloomington, including the tax authorized under subdivision 1. The issuance of bonds under
this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (c) The bonds are not included in computing any debt limitation applicable to the city
of Bloomington, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
principal and interest on the bonds is not subject to any levy limitation. A separate election
to approve the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 20 years
after the tax is first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any funds remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the
general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time
if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Bloomington and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 30. new text begin BROOKLYN CENTER; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
and if approved by the voters at a general election as required under Minnesota Statutes,
section 297A.99, subdivision 3, the city of Brooklyn Center may impose by ordinance a
sales and use tax of one-half of one percent for the purposes specified in subdivision 2.
Except as otherwise provided in this section, the provisions of Minnesota Statutes, section
297A.99, govern the imposition, administration, collection, and enforcement of the tax
authorized under this subdivision. The tax imposed under this subdivision is in addition to
any local sales and use tax imposed under any other special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Brooklyn Center to pay the costs of collecting
and administering the tax and paying for the following projects in the city, including securing
and paying debt service on bonds issued to finance $44,000,000 plus associated bonding
costs for the renovation and expansion of the Brooklyn Center Community Center.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of Brooklyn Center may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities
authorized in subdivision 2 and approved by the voters as required under Minnesota Statutes,
section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds
issued under this subdivision may not exceed $44,000,000 for the projects listed in
subdivision 2 plus an amount to be applied to the payment of the costs of issuing the bonds.
new text end

new text begin (b) The bonds may be paid from or secured by any funds available to the city of Brooklyn
Center, including the tax authorized under subdivision 1 and the full faith and credit of the
city. The issuance of bonds under this subdivision is not subject to Minnesota Statutes,
sections 275.60 and 275.61.
new text end

new text begin (c) The bonds are not included in computing any debt limitation applicable to the city
of Brooklyn Center and any levy of taxes under Minnesota Statutes, section 475.61, to pay
principal and interest on the bonds is not subject to any levy limitation. A separate election
to approve the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 20 years
after being first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any funds remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the
general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time
if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Brooklyn Center and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 31. new text begin CITY OF CHANHASSEN; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
and if approved by the voters at an election as required under Minnesota Statutes, section
297A.99, subdivision 3, the city of Chanhassen may impose by ordinance a sales and use
tax of up to one-half of one percent for the purposes specified in subdivision 2. Except as
otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99,
govern the imposition, administration, collection, and enforcement of the tax authorized
under this subdivision. The tax imposed under this subdivision is in addition to any local
sales and use tax imposed under any other special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Chanhassen to pay the costs of collecting
and administering the tax and paying for up to $40,000,000 for construction costs of the
Avienda Recreational Facility, including securing and paying debt service on bonds issued
to finance all or part of the project.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of Chanhassen may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the projects
authorized in subdivision 2. The aggregate principal amount of bonds issued under this
subdivision may not exceed $40,000,000, plus an amount to be applied to the payment of
the costs of issuing the bonds.
new text end

new text begin (b) The bonds may be paid from or secured by any funds available to the city of
Chanhassen, including the tax authorized under subdivision 1. The issuance of bonds under
this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (c) The bonds are not included in computing any debt limitation applicable to the city
of Chanhassen, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
principal and interest on the bonds is not subject to any levy limitation. A separate election
to approve the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 20 years
after the tax is first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2, plus
an amount sufficient to pay the costs related to issuance of any bonds authorized under
subdivision 3, including interest on the bonds. Except as otherwise provided in Minnesota
Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining after payment
of the allowed costs due to the timing of the termination of the tax under Minnesota Statutes,
section 297A.99, subdivision 12, must be placed in the general fund of the city. The tax
imposed under subdivision 1 may expire at an earlier time if the city so determines by
ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Chanhassen and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 32. new text begin COTTAGE GROVE; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the
city of Cottage Grove may impose by ordinance a sales and use tax of one-half of one
percent for the purposes specified in subdivision 2. Except as otherwise provided in this
section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition,
administration, collection, and enforcement of the tax authorized under this subdivision.
The tax imposed under this subdivision is in addition to any local sales and use tax imposed
under any other special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Cottage Grove to pay the costs of collecting
and administering the tax and paying for the following projects in the city, including securing
and paying debt service on bonds issued to finance all or part of the following projects:
new text end

new text begin (1) $17,000,000 for construction of improvements to Hamlet Park;
new text end

new text begin (2) $6,000,000 for construction of improvements to River Oaks Golf Course; and
new text end

new text begin (3) $13,000,000 for construction of improvements to the Mississippi Dunes Park project.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of Cottage Grove may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the projects
authorized in subdivision 2 and approved by the voters as required under Minnesota Statutes,
section 297A.99, subdivision 3, paragraph (a).The aggregate principal amount of bonds
issued under this subdivision may not exceed:
new text end

new text begin (1) $17,000,000 for the project listed in subdivision 2, clause (1), plus an amount to be
applied to the payment of the costs of issuing the bonds;
new text end

new text begin (2) $6,000,000 for the project listed in subdivision 2, clause (2), plus an amount to be
applied to the payment of the costs of issuing the bonds; and
new text end

new text begin (3) $13,000,000 for the project listed in subdivision 2, clause (3), plus an amount to be
applied to the payment of the costs of issuing the bonds.
new text end

new text begin (b) The bonds may be paid from or secured by any funds available to the city of Cottage
Grove, including the tax authorized under subdivision 1. The issuance of bonds under this
subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (c) The bonds are not included in computing any debt limitation applicable to the city
of Cottage Grove, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
principal and interest on the bonds is not subject to any levy limitation. A separate election
to approve the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 25 years
after the tax is first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any funds remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the
general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time
if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Cottage Grove and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 33. new text begin CITY OF DETROIT LAKES; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 297A.99, subdivision 3, paragraphs (a) and (d), and section 477A.016, or any other
law, ordinance, or city charter, and if approved by the voters at an election held on either
November 7, 2023, or as otherwise required under Minnesota Statutes, section 297A.99,
subdivision 3, the city of Detroit Lakes may impose by ordinance a sales and use tax of
one-half of one percent for the purpose specified in subdivision 2. Except as otherwise
provided in this section, the provisions of Minnesota Statutes, section 297A.99, govern the
imposition, administration, collection, and enforcement of the tax authorized under this
subdivision. The tax imposed under this subdivision is in addition to any local sales and
use tax imposed under any other special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Detroit Lakes to pay the costs of collecting
and administering the tax, and to finance up to $17,300,000, plus associated bond costs, for
the construction and renovation of the Detroit Lakes Pavilion, including park improvements,
beachfront improvements, and parking improvements.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of Detroit Lakes may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the project costs authorized
in subdivision 2. The aggregate principal amount of bonds issued under this subdivision
may not exceed $17,300,000, plus an amount to be applied to the payment of the costs of
issuing the bonds.
new text end

new text begin (b) The bonds may be paid from or secured by any funds available to the city of Detroit
Lakes, including the tax authorized under subdivision 1. The issuance of bonds under this
subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (c) The bonds are not included in computing any debt limitation applicable to the city
of Detroit Lakes, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
principal and interest on the bonds is not subject to any levy limitation. A separate election
to approve the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 12 years
after the tax is first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2, plus
an amount sufficient to pay the costs related to issuance of any bonds authorized under
subdivision 3, including interest on the bonds. Except as otherwise provided in Minnesota
Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining after payment
of the allowed costs due to the timing of the termination of the tax under Minnesota Statutes,
section 297A.99, subdivision 12, must be placed in the general fund of the city. The tax
imposed under subdivision 1 may expire at an earlier time if the city so determines by
ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Detroit Lakes and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 34. new text begin CITY OF DILWORTH; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the
city of Dilworth may impose by ordinance a sales and use tax of one-half of one percent
for the purpose specified in subdivision 2. Except as otherwise provided in this section, the
provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
collection, and enforcement of the tax authorized under this subdivision. The tax imposed
under this subdivision is in addition to any local sales and use tax imposed under any other
special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Dilworth to pay the costs of collecting and
administering the tax, and to finance up to $5,400,000 for the construction of a community
and recreational center. Authorized costs include the associated bond costs for any bonds
issued under subdivision 3.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of Dilworth may issue bonds under Minnesota
Statutes, chapter 475, to finance the costs of the facility authorized in subdivision 2. The
aggregate principal amount of bonds issued under this subdivision may not exceed $5,400,000
for the project listed in subdivision 2, plus an amount to be applied to the payment of the
costs of issuing the bonds.
new text end

new text begin (b) The bonds may be paid from or secured by any funds available to the city, including
the tax authorized under subdivision 1. The issuance of bonds under this subdivision is not
subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (c) The bonds are not included in computing any debt limitation applicable to the city,
and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of: (1) 25 years
after the tax is first imposed; or (2) when the city council determines that the amount received
from the tax is sufficient to pay $5,400,000 in project costs authorized under subdivision
2, plus an amount sufficient to pay the costs related to issuance of any bonds authorized
under subdivision 3, including interest on the bonds. Except as otherwise provided in
Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining
after payment of the allowed costs due to the timing of the termination of the tax under
Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general fund of
the city. The tax imposed under subdivision 1 may expire at an earlier time if the city so
determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Dilworth and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 35. new text begin CITY OF EAST GRAND FORKS; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the
city of East Grand Forks may impose by ordinance a sales and use tax of up to one percent
for the purposes specified in subdivision 2. Except as otherwise provided in this section,
the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
collection, and enforcement of the tax authorized under this subdivision. The tax imposed
under this subdivision is in addition to any local sales and use tax imposed under any other
special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city of East Grand Forks to pay the costs of
collecting and administering the tax and paying for the following projects in the city,
including securing and paying debt service on bonds issued to finance all or part of the
following projects:
new text end

new text begin (1) $6,745,000 plus associated bonding costs for reconstruction and remodeling of, and
upgrades and additions to, the Civic Center Sports Complex; and
new text end

new text begin (2) $8,000,000 plus associated bonding costs for reconstruction and remodeling of, and
upgrades and additions to, the VFW Memorial Arena and Blue Line Arena.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of East Grand Forks may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities
authorized in subdivision 2 and approved by the voters as required under Minnesota Statutes,
section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds
issued under this subdivision may not exceed:
new text end

new text begin (1) $6,745,000 for the project listed in subdivision 2, clause (1), plus an amount to be
applied to the payment of the costs of issuing the bonds; and
new text end

new text begin (2) $8,000,000 for the project listed in subdivision 2, clause (2), plus an amount to be
applied to the payment of the costs of issuing the bonds.
new text end

new text begin (b) The bonds may be paid from or secured by any funds available to the city, including
the tax authorized under subdivision 1. The issuance of bonds under this subdivision is not
subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (c) The bonds are not included in computing any debt limitation applicable to the city
and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 20 years
after being first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any funds remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the
general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time
if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of East Grand Forks and its chief clerical officer comply with Minnesota Statutes,
section 645.021, subdivisions 2 and 3.
new text end

Sec. 36. new text begin CITY OF FAIRMONT; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 297A.99, subdivisions 1 and 3, paragraph (d), or 477A.016, or any other law,
ordinance, or city charter, and if approved by the voters at an election as required under
Minnesota Statutes, section 297A.99, subdivision 3, the city of Fairmont may impose by
ordinance a sales and use tax of one-half of one percent for the purpose specified in
subdivision 2. Except as otherwise provided in this section, the provisions of Minnesota
Statutes, section 297A.99, govern the imposition, administration, collection, and enforcement
of the tax authorized under this subdivision. The tax imposed under this subdivision is in
addition to any local sales and use tax imposed under any other special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Fairmont to pay the costs of collecting and
administering the tax and to finance up to $20,000,000, plus associated bonding costs, for
construction of a community center and ice arena.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of Fairmont may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in
subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
not exceed $20,000,000, plus an amount to be applied to the payment of the costs of issuing
the bonds.
new text end

new text begin (b) The bonds may be paid from or secured by any funds available to the city of Fairmont,
including the tax authorized under subdivision 1. The issuance of bonds under this
subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (c) The bonds are not included in computing any debt limitation applicable to the city
of Fairmont, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
and interest on the bonds is not subject to any levy limitation. A separate election to approve
the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 25 years
after the tax is first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay, plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any funds remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the
general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time
if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Fairmont and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 37. new text begin CITY OF HENDERSON; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the
city of Henderson may impose by ordinance a sales and use tax of one-half of one percent
for the purposes specified in subdivision 2. Except as otherwise provided in this section,
the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
collection, and enforcement of the tax authorized under this subdivision. The tax imposed
under this subdivision is in addition to any local sales and use tax imposed under any other
special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Henderson to pay the costs of collecting
and administering the tax, and to finance up to $250,000 for the Allanson's Park Campground
and Trail project. Authorized project costs include improvements to trails, improvements
to the park campground and related facilities, utility improvements, handicap access
improvements, and other improvements related to linkage to other local trails, as well as
the associated bond costs for any bonds issued under subdivision 3.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of Henderson may issue bonds under Minnesota
Statutes, chapter 475, to finance up to $250,000 of the portion of the costs of the project
authorized in subdivision 2, and approved by the voters as required under Minnesota Statutes,
section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds
issued under this subdivision may not exceed $250,000 plus an amount to be applied to the
payment of the costs of issuing the bonds.
new text end

new text begin (b) The bonds may be paid from or secured by any funds available to the city of
Henderson, including the tax authorized under subdivision 1. The issuance of bonds under
this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (c) The bonds are not included in computing any debt limitation applicable to the city
of Henderson, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
principal and interest on the bonds is not subject to any levy limitation. A separate election
to approve the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of: (1) 15 years
after the tax is first imposed; or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any funds remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the
general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time
if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Henderson and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 38. new text begin CITY OF HIBBING; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
and if approved by the voters at an election as required under Minnesota Statutes, section
297A.99, subdivision 3, the city of Hibbing may impose by ordinance a sales and use tax
of one-half of one percent for the purpose specified in subdivision 2. Except as otherwise
provided in this section, the provisions of Minnesota Statutes, section 297A.99, govern the
imposition, administration, collection, and enforcement of the tax authorized under this
subdivision. The tax imposed under this subdivision is in addition to any local sales and
use tax imposed under any other special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Hibbing to pay the costs of collecting and
administering the tax, and to finance up to $19,600,000 for the construction of a regional
public safety center. Authorized costs include the associated bond costs for any bonds issued
under subdivision 3.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of Hibbing may issue bonds under Minnesota
Statutes, chapter 475, to finance the costs of the facility authorized in subdivision 2. The
aggregate principal amount of bonds issued under this subdivision may not exceed
$19,600,000 for the project listed in subdivision 2, plus an amount to be applied to the
payment of the costs of issuing the bonds.
new text end

new text begin (b) The bonds may be paid from or secured by any funds available to the city, including
the tax authorized under subdivision 1. The issuance of bonds under this subdivision is not
subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (c) The bonds are not included in computing any debt limitation applicable to the city,
and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of: (1) 20 years
after the tax is first imposed; or (2) when the city council determines that the amount received
from the tax is sufficient to pay $19,600,000 in project costs authorized under subdivision
2, plus an amount sufficient to pay the costs related to issuance of any bonds authorized
under subdivision 3, including interest on the bonds. Except as otherwise provided in
Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining
after payment of the allowed costs due to the timing of the termination of the tax under
Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general fund of
the city. The tax imposed under subdivision 1 may expire at an earlier time if the city so
determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Hibbing and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 39. new text begin GOLDEN VALLEY; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
and if approved by the voters at an election as required under Minnesota Statutes, section
297A.99, subdivision 3, the city of Golden Valley may impose by ordinance a sales and
use tax of 1.25 percent for the purposes specified in subdivision 2. Except as otherwise
provided in this section, the provisions of Minnesota Statutes, section 297A.99, govern the
imposition, administration, collection, and enforcement of the tax authorized under this
subdivision. The tax imposed under this subdivision is in addition to any local sales and
use tax imposed under any other special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Golden Valley to pay the costs of collecting
and administering the tax and paying for the following projects in the city, including securing
and paying debt service on bonds issued to finance all or part of the following projects:
new text end

new text begin (1) $45,000,000 plus associated bonding costs for construction of a new public works
facility;
new text end

new text begin (2) $15,000,000 plus associated bonding costs for the purchase of land for a new public
works facility; and
new text end

new text begin (3) $45,000,000 plus associated bonding costs for construction of a new public safety
facility.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of Golden Valley may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the projects
authorized in subdivision 2 and approved by the voters as required under Minnesota Statutes,
section 297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds
issued under this subdivision may not exceed:
new text end

new text begin (1) $45,000,000 for the project listed in subdivision 2, clause (1), plus an amount to be
applied to the payment of the costs of issuing the bonds;
new text end

new text begin (2) $15,000,000 for the project listed in subdivision 2, clause (2), plus an amount to be
applied to the payment of the costs of issuing the bonds; and
new text end

new text begin (3) $45,000,000 for the project listed in subdivision 2, clause (3), plus an amount to be
applied to the payment of the costs of issuing the bonds.
new text end

new text begin (b) The bonds may be paid from or secured by any funds available to the city of Golden
Valley, including the tax authorized under subdivision 1. The issuance of bonds under this
subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (c) The bonds are not included in computing any debt limitation applicable to the city
of Golden Valley, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
principal and interest on the bonds is not subject to any levy limitation. A separate election
to approve the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 30 years
after the tax is first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any funds remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the
general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time
if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Golden Valley and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 40. new text begin CITY OF JACKSON; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the
city of Jackson may impose by ordinance a sales and use tax of one percent for the purpose
specified in subdivision 2. Except as otherwise provided in this section, the provisions of
Minnesota Statutes, section 297A.99, govern the imposition, administration, collection, and
enforcement of the tax authorized under this subdivision. The tax imposed under this
subdivision is in addition to any local sales and use tax imposed under any other special
law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Jackson to pay the costs of collecting and
administering the tax, and to finance up to $5,750,000 for construction, renovation, and
improvements to a new outdoor athletic complex, including securing and paying debt service
on bonds issued under subdivision 3.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of Jackson may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in
subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
not exceed $5,750,000, plus an amount to be applied to the payment of the costs of issuing
the bonds.
new text end

new text begin (b) The bonds may be paid from or secured by any funds available to the city of Jackson,
including the tax authorized under subdivision 1. The issuance of bonds under this
subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (c) The bonds are not included in computing any debt limitation applicable to the city
of Jackson, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
and interest on the bonds is not subject to any levy limitation. A separate election to approve
the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 30 years
after the tax is first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2, plus
an amount sufficient to pay the costs related to issuance of any bonds authorized under
subdivision 3, including interest on the bonds. Except as otherwise provided in Minnesota
Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining after payment
of the allowed costs due to the timing of the termination of the tax under Minnesota Statutes,
section 297A.99, subdivision 12, must be placed in the general fund of the city. The tax
imposed under subdivision 1 may expire at an earlier time if the city so determines by
ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Jackson and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 41. new text begin JACKSON COUNTY; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law or ordinance, and if approved by the voters at an election
as required under Minnesota Statutes, section 297A.99, subdivision 3, Jackson County may
impose by ordinance a sales and use tax of one percent for the purposes specified in
subdivision 2. Except as otherwise provided in this section, the provisions of Minnesota
Statutes, section 297A.99, govern the imposition, administration, collection, and enforcement
of the tax authorized under this subdivision. The tax imposed under this subdivision is in
addition to any local sales and use tax imposed under any other special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by Jackson County to pay the costs of collecting and
administering the tax and paying for up to $39,000,000 for construction of a law enforcement
center and government center in the county, including associated bond costs for any bonds
issued under subdivision 3.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) Jackson County may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in
subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
not exceed $39,000,000, plus an amount to be applied to the payment of the costs of issuing
the bonds.
new text end

new text begin (b) The bonds may be paid from or secured by any funds available to Jackson County,
including the tax authorized under subdivision 1. The issuance of bonds under this
subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (c) The bonds are not included in computing any debt limitation applicable to Jackson
County, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
and interest on the bonds is not subject to any levy limitation. A separate election to approve
the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 30 years
after the tax is first imposed, or (2) when the county board of commissioners determines
that the amount received from the tax is sufficient to pay for the project costs authorized
under subdivision 2, plus an amount sufficient to pay the costs related to issuance of any
bonds authorized under subdivision 3, including interest on the bonds. Except as otherwise
provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds
remaining after payment of the allowed costs due to the timing of the termination of the tax
under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general
fund of the county. The tax imposed under subdivision 1 may expire at an earlier time if
the county so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of
Jackson County and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 42. new text begin MONTICELLO; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
and if approved by the voters at an election as required under Minnesota Statutes, section
297A.99, subdivision 3, the city of Monticello may impose by ordinance a sales and use
tax of one-half of one percent for the purposes specified in subdivision 2. Except as otherwise
provided in this section, the provisions of Minnesota Statutes, section 297A.99, govern the
imposition, administration, collection, and enforcement of the tax authorized under this
subdivision. The tax imposed under this subdivision is in addition to any local sales and
use tax imposed under any other special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Monticello to pay the costs of collecting
and administering the tax and paying for the following projects in the city, including securing
and paying debt service on bonds issued to finance all or part of the following projects:
new text end

new text begin (1) $15,000,000 for new construction and rehabilitation of the Bertram Chain of Lakes
Regional Athletic Park; and
new text end

new text begin (2) $15,000,000 for new construction and improvements to the Pointes at Cedar
Recreation Area.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of Monticello may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in
subdivision 2 and approved by the voters as required under Minnesota Statutes, section
297A.99, subdivision 3, paragraph (a).The aggregate principal amount of bonds issued
under this subdivision may not exceed:
new text end

new text begin (1) $15,000,000 for the project listed in subdivision 2, clause (1), plus an amount to be
applied to the payment of the costs of issuing the bonds; and
new text end

new text begin (2) $15,000,000 for the project listed in subdivision 2, clause (2), plus an amount to be
applied to the payment of the costs of issuing the bonds.
new text end

new text begin (b) The bonds may be paid from or secured by any funds available to the city of
Monticello, including the tax authorized under subdivision 1. The issuance of bonds under
this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (c) The bonds are not included in computing any debt limitation applicable to the city
of Monticello, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
principal and interest on the bonds is not subject to any levy limitation. A separate election
to approve the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 20 years
after the tax is first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any funds remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the
general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time
if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Monticello and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 43. new text begin CITY OF MOUNDS VIEW; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the
city of Mounds View may impose, by ordinance, a sales and use tax of up to one and one-half
percent for the purposes specified in subdivision 2. Except as otherwise provided in this
section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition,
administration, collection, and enforcement of the tax authorized under this subdivision.
The tax imposed under this subdivision is in addition to any local sales and use tax imposed
under any other special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Mounds View to pay the costs of collecting
and administering the tax, including associated bond costs on bonds issued under subdivision
3, and securing and paying debt service on the bonds, and to finance up to $16,500,000, for
construction of an expanded community center into a regional amateur sports and recreational
facility.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of Mounds View may issue bonds under
Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the project
authorized in subdivision 2. The aggregate principal amount of bonds issued under this
subdivision may not exceed $16,500,000, plus an amount applied to the payment of costs
of issuing the bonds.
new text end

new text begin (b) The bonds may be paid from or secured by any funds available to the county, including
the tax authorized under subdivision 1. The issuance of bonds under this subdivision is not
subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (c) The bonds are not included in computing any debt limitation applicable to the county.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin The tax imposed under subdivision 1 expires at the
earlier of: (1) 20 years after the tax is first imposed; or (2) when the county determines that
it has received from this tax $16,500,000 to fund the project listed in subdivision 2, plus an
amount sufficient to pay costs related to issuance of any bonds authorized under subdivision
3, including interest on the bonds. Except as otherwise provided in Minnesota Statutes,
section 297A.99, subdivision 3, paragraph (f), any funds remaining after payment of the
allowed costs due to the timing of the termination of the tax under Minnesota Statutes,
section 297A.99, subdivision 12, shall be placed in the county's general fund. The tax
imposed under subdivision 1 may expire at an earlier time if the county determines by
ordinance.
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 Mounds View and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 44. new text begin CITY OF PROCTOR; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the
city of Proctor may impose by ordinance a sales and use tax of one-half of one percent for
the purposes specified in subdivision 2. Except as otherwise provided in this section, the
provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
collection, and enforcement of the tax authorized under this subdivision. The tax imposed
under this subdivision is in addition to any local sales and use tax imposed under any other
special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Proctor to pay the costs of collecting and
administering the tax and to finance up to $6,900,000 plus associated bonding costs for
construction of a new regional and statewide trail spur in the city, including securing and
paying debt service on bonds issued to finance all or part of the project.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of Proctor may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in
subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
not exceed $6,900,000, plus an amount to be applied to the payment of the costs of issuing
the bonds.
new text end

new text begin (b) The bonds may be paid from or secured by any funds available to the city of Proctor,
including the tax authorized under subdivision 1. The issuance of bonds under this
subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (c) The bonds are not included in computing any debt limitation applicable to the city
of Proctor, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
and interest on the bonds is not subject to any levy limitation. A separate election to approve
the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 20 years
after the tax is first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2, plus
an amount sufficient to pay the costs related to issuance of any bonds authorized under
subdivision 3, including interest on the bonds. Except as otherwise provided in Minnesota
Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining after payment
of the allowed costs due to the timing of the termination of the tax under Minnesota Statutes,
section 297A.99, subdivision 12, shall be placed in the general fund of the city. The tax
imposed under subdivision 1 may expire at an earlier time if the city so determines by
ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Proctor and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 45. new text begin RICE COUNTY; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law or ordinance, and if approved by the voters at an election
as required under Minnesota Statutes, section 297A.99, subdivision 3, Rice County may
impose by ordinance a sales and use tax of three-eighths of one percent for the purpose
specified in subdivision 2. Except as otherwise provided in this section, the provisions of
Minnesota Statutes, section 297A.99, govern the imposition, administration, collection, and
enforcement of the tax authorized under this subdivision. The tax imposed under this
subdivision is in addition to any local sales and use tax imposed under any other special
law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by Rice County to pay the costs of collecting and
administering the tax and paying for up to $48,000,000 for the construction of a public
safety facility in the county, including associated bond costs for any bonds issued under
subdivision 3.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) Rice County may issue bonds under Minnesota Statutes,
chapter 475, to finance all or a portion of the costs of the project authorized in subdivision
2. The aggregate principal amount of bonds issued under this subdivision may not exceed
$48,000,000, plus an amount to be applied to the payment of the costs of issuing the bonds.
new text end

new text begin (b) The bonds may be paid from or secured by any funds available to Rice County,
including the tax authorized under subdivision 1. The issuance of bonds under this
subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (c) The bonds are not included in computing any debt limitation applicable to Rice
County, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
and interest on the bonds is not subject to any levy limitation. A separate election to approve
the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 30 years
after the tax is first imposed, or (2) when the county board of commissioners determines
that the amount received from the tax is sufficient to pay for the project costs authorized
under subdivision 2, plus an amount sufficient to pay the costs related to issuance of any
bonds authorized under subdivision 3, including interest on the bonds. Except as otherwise
provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds
remaining after payment of the allowed costs due to the timing of the termination of the tax
under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general
fund of the county. The tax imposed under subdivision 1 may expire at an earlier time if
the county so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of Rice
County and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 46. new text begin RICHFIELD; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the
city of Richfield may impose, by ordinance, a sales and use tax of one-half of one percent
for the purposes specified in subdivision 2. Except as otherwise provided in this section,
the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
collection, and enforcement of the tax authorized under this subdivision.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Richfield to pay the costs of collecting and
administering the tax and paying for the following projects in the city, including securing
and paying debt service on bonds issued to finance all or part of the following regional
projects:
new text end

new text begin (1) $11,000,000 plus associated bonding costs for construction of the Wood Lake Nature
Center building;
new text end

new text begin (2) $9,000,000 plus associated bonding costs for construction of the Veterans Park
Complex; and
new text end

new text begin (3) $45,000,000 plus associated bonding costs for construction of the Richfield
Community Center Project.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of Richfield may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in
subdivision 2 and approved by voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a). The aggregate principal amount of bonds issued under this
subdivision may not exceed $65,000,000, plus an amount applied to the payment of costs
of issuing the bonds. The bonds may be paid from or secured by any funds available to the
city of Richfield, including the tax authorized under subdivision 1. The issuance of bonds
under this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (b) The bonds are not included in computing any debt limitation applicable to the city.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 20 years
after being first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any funds remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the
general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time
if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Richfield and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 47. new text begin CITY OF ROSEVILLE; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter,
and if approved by the voters at an election as required under Minnesota Statutes, section
297A.99, subdivision 3, the city of Roseville may impose by ordinance a sales and use tax
of one-half of one percent for the purposes specified in subdivision 2. Except as otherwise
provided in this section, the provisions of Minnesota Statutes, section 297A.99, govern the
imposition, administration, collection, and enforcement of the tax authorized under this
subdivision. The tax imposed under this subdivision is in addition to any local sales and
use tax imposed under any other special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Roseville to pay the costs of collecting and
administering the tax and paying for the following projects in the city, including securing
and paying debt service on bonds issued to finance all or part of the following projects:
new text end

new text begin (1) $64,200,000 for construction of a new maintenance facility; and
new text end

new text begin (2) $12,700,000 for construction of a new license and passport center.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of Roseville may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in
subdivision 2 and approved by the voters as required under Minnesota Statutes, section
297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued
under this subdivision may not exceed:
new text end

new text begin (1) $64,200,000 for the project listed in subdivision 2, clause (1), plus an amount to be
applied to the payment of the costs of issuing the bonds; and
new text end

new text begin (2) $12,700,000 for the project listed in subdivision 2, clause (2), plus an amount to be
applied to the payment of the costs of issuing the bonds.
new text end

new text begin (b) The bonds may be paid from or secured by any funds available to the city of Roseville,
including the tax authorized under subdivision 1. The issuance of bonds under this
subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (c) The bonds are not included in computing any debt limitation applicable to the city
of Roseville, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
and interest on the bonds is not subject to any levy limitation. A separate election to approve
the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 20 years
after the tax is first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any funds remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the
general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time
if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Roseville and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 48. new text begin CITY OF ST. JOSEPH; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the
city of St. Joseph may impose by ordinance a sales and use tax of one-half of one percent
for the purposes specified in subdivision 2. Except as otherwise provided in this section,
the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
collection, and enforcement of the tax authorized under this subdivision. The tax imposed
under this subdivision is in addition to any local sales and use tax imposed under any other
special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city of St. Joseph to pay the costs of collecting and
administering the tax and paying for the following projects in the city, including securing
and paying debt service on bonds issued to finance all or part of the following projects:
new text end

new text begin (1) $11,000,000 for construction of Phase II of the St. Joseph community center
expansion; and
new text end

new text begin (2) $6,000,000 for Phases II and III of the improvements to East Park along the Sauk
River in the city of St. Joseph.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of St. Joseph may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the projects authorized in
subdivision 2 and approved by the voters as required under Minnesota Statutes, section
297A.99, subdivision 3, paragraph (a). The aggregate principal amount of bonds issued
under this subdivision may not exceed:
new text end

new text begin (1) $11,000,000 for the project listed in subdivision 2, clause (1), plus an amount to be
applied to the payment of the costs of issuing the bonds; and
new text end

new text begin (2) $6,000,000 for the project listed in subdivision 2, clause (2), plus an amount to be
applied to the payment of the costs of issuing the bonds.
new text end

new text begin (b) The bonds may be paid from or secured by any funds available to the city of St.
Joseph, including the tax authorized under subdivision 1. The issuance of bonds under this
subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (c) The bonds are not included in computing any debt limitation applicable to the city
of St. Joseph, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
and interest on the bonds is not subject to any levy limitation. A separate election to approve
the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 17 years
after the tax is first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2 for
projects approved by voters as required under Minnesota Statutes, section 297A.99,
subdivision 3, paragraph (a), plus an amount sufficient to pay the costs related to issuance
of any bonds authorized under subdivision 3, including interest on the bonds. Except as
otherwise provided in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f),
any funds remaining after payment of the allowed costs due to the timing of the termination
of the tax under Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the
general fund of the city. The tax imposed under subdivision 1 may expire at an earlier time
if the city so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of St. Joseph and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 49. new text begin STEARNS COUNTY; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 297A.99, subdivision 1, or 477A.016, or any other law or ordinance, and if approved
by the voters at an election as required under Minnesota Statutes, section 297A.99,
subdivision 3, Stearns County may impose by ordinance a sales and use tax of three-eighths
of one percent for the purpose specified in subdivision 2. Except as otherwise provided in
this section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition,
administration, collection, and enforcement of the tax authorized under this subdivision.
The tax imposed under this subdivision is in addition to any local sales and use tax imposed
under any other special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by Stearns County to pay the costs of collecting and
administering the tax, and to finance up to $325,000,000 for the construction of a new
Stearns County Justice Center consisting of a law enforcement center, judicial center, and
jail. Authorized costs include the associated bond costs for any bonds issued under
subdivision 3.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) Stearns County may issue bonds under Minnesota
Statutes, chapter 475, to finance the costs of the facility authorized in subdivision 2. The
aggregate principal amount of bonds issued under this subdivision may not exceed
$325,000,000 for the project listed in subdivision 2, plus an amount to be applied to the
payment of the costs of issuing the bonds.
new text end

new text begin (b) The bonds may be paid from or secured by any funds available to the county, including
the tax authorized under subdivision 1. The issuance of bonds under this subdivision is not
subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (c) The bonds are not included in computing any debt limitation applicable to the county,
and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of: (1) 30 years
after the tax is first imposed; or (2) when the county board determines that the amount
received from the tax is sufficient to pay $325,000,000 in project costs authorized under
subdivision 2, plus an amount sufficient to pay the costs related to issuance of any bonds
authorized under subdivision 3, including interest on the bonds. Except as otherwise provided
in Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining
after payment of the allowed costs due to the timing of the termination of the tax under
Minnesota Statutes, section 297A.99, subdivision 12, shall be placed in the general fund of
the county. The tax imposed under subdivision 1 may expire at an earlier time if the county
so determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of
Stearns County and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 50. new text begin CITY OF STILLWATER; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any other law, ordinance, or city charter, and if approved by the voters
at an election as required under Minnesota Statutes, section 297A.99, subdivision 3, the
city of Stillwater may impose by ordinance a sales and use tax of one-half of one percent
for the purpose specified in subdivision 2. Except as otherwise provided in this section, the
provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration,
collection, and enforcement of the tax authorized under this subdivision. The tax imposed
under this subdivision is in addition to any local sales and use tax imposed under any other
special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Stillwater to pay the costs of collecting and
administering the tax, and to finance up to $12,500,000 for the construction, renovation,
and improvements to the Riverfront Improvement Project.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of Stillwater may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in
subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
not exceed $12,500,000.
new text end

new text begin (b) The bonds may be paid from or secured by any funds available to the city of Stillwater,
including the tax authorized under subdivision 1. The issuance of bonds under this
subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (c) The bonds are not included in computing any debt limitation applicable to the city
of Stillwater, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal
and interest on the bonds is not subject to any levy limitation. A separate election to approve
the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 20 years
after the tax is first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay for the project costs authorized under subdivision 2, plus
an amount sufficient to pay the costs related to issuance of any bonds authorized under
subdivision 3, including interest on the bonds. Except as otherwise provided in Minnesota
Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining after payment
of the allowed costs due to the timing of the termination of the tax under Minnesota Statutes,
section 297A.99, subdivision 12, must be placed in the general fund of the city. The tax
imposed under subdivision 1 may expire at an earlier time if the city so determines by
ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Stillwater and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 51. new text begin WINONA COUNTY; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
sections 297A.99, subdivision 1, and 477A.016, or any other law, ordinance, or city charter,
and if approved by the voters at an election as required under Minnesota Statutes, section
297A.99, subdivision 3, Winona County may impose, by ordinance, a sales and use tax of
one-quarter of one percent for the purposes specified in subdivision 2. Except as otherwise
provided in this section, the provisions of Minnesota Statutes, section 297A.99, govern the
imposition, administration, collection, and enforcement of the tax authorized under this
subdivision. The tax imposed under this subdivision is in addition to any local sales and
use tax imposed under any other special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by Winona County to pay the costs of collecting and
administering the tax, and to finance up to $28,000,000 for construction of a new correctional
facility or upgrades to an existing correctional facility, as well as the associated bond costs
for any bonds issued under subdivision 3.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) Winona County may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in
subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
not exceed $28,000,000, plus an amount applied to the payment of costs of issuing the
bonds.
new text end

new text begin (b) The bonds may be paid from or secured by any funds available to the county, including
the tax authorized under subdivision 1. The issuance of bonds under this subdivision is not
subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (c) The bonds are not included in computing any debt limitation applicable to the county.
Any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and interest
on the bonds is not subject to any levy limitation. A separate election to approve the bonds
under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin The tax imposed under subdivision 1 expires at the
earlier of: (1) 25 years after the tax is first imposed; or (2) when the county determines that
it has received from this tax $28,000,000 to fund the project listed in subdivision 2, plus an
amount sufficient to pay costs related to issuance of any bonds authorized under subdivision
3, including interest on the bonds. Except as otherwise provided in Minnesota Statutes,
section 297A.99, subdivision 3, paragraph (f), any funds remaining after payment of the
allowed costs due to timing of the termination of the tax under Minnesota Statutes, section
297A.99, subdivision 12, shall be placed in the county's general fund. The tax imposed
under subdivision 1 may expire at an earlier time if the county determines by ordinance.
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
Winona County and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 52. new text begin CITY OF WOODBURY; TAXES AUTHORIZED.
new text end

new text begin Subdivision 1. new text end

new text begin Sales and use tax authorization. new text end

new text begin Notwithstanding Minnesota Statutes,
section 297A.99, subdivision 3, paragraph (d), or 477A.016, or any other law, ordinance,
or city charter, and if approved by the voters at an election as required under Minnesota
Statutes, section 297A.99, subdivision 3, the city of Woodbury may impose by ordinance
a sales and use tax of one-half of one percent for the purpose specified in subdivision 2.
Except as otherwise provided in this section, the provisions of Minnesota Statutes, section
297A.99, govern the imposition, administration, collection, and enforcement of the tax
authorized under this subdivision. The tax imposed under this subdivision is in addition to
any local sales and use tax imposed under any other special law.
new text end

new text begin Subd. 2. new text end

new text begin Use of sales and use tax revenues. new text end

new text begin The revenues derived from the tax authorized
under subdivision 1 must be used by the city of Woodbury to pay the costs of collecting
and administering the tax and to finance up to $50,000,000, plus associated bonding costs,
for the construction of a new public safety campus.
new text end

new text begin Subd. 3. new text end

new text begin Bonding authority. new text end

new text begin (a) The city of Woodbury may issue bonds under Minnesota
Statutes, chapter 475, to finance all or a portion of the costs of the project authorized in
subdivision 2. The aggregate principal amount of bonds issued under this subdivision may
not exceed $50,000,000, plus an amount to be applied to the payment of the costs of issuing
the bonds.
new text end

new text begin (b) The bonds may be paid from or secured by any funds available to the city of
Woodbury, including the tax authorized under subdivision 1. The issuance of bonds under
this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
new text end

new text begin (c) The bonds are not included in computing any debt limitation applicable to the city
of Woodbury, and any levy of taxes under Minnesota Statutes, section 475.61, to pay
principal and interest on the bonds is not subject to any levy limitation. A separate election
to approve the bonds under Minnesota Statutes, section 475.58, is not required.
new text end

new text begin Subd. 4. new text end

new text begin Termination of taxes. new text end

new text begin Subject to Minnesota Statutes, section 297A.99,
subdivision 12, the tax imposed under subdivision 1 expires at the earlier of (1) 20 years
after the tax is first imposed, or (2) when the city council determines that the amount received
from the tax is sufficient to pay $50,000,000 in project costs authorized under subdivision
2, plus an amount sufficient to pay the costs related to issuance of any bonds authorized
under subdivision 3, including interest on the bonds. Except as otherwise provided in
Minnesota Statutes, section 297A.99, subdivision 3, paragraph (f), any funds remaining
after payment of the allowed costs due to the timing of the termination of the tax under
Minnesota Statutes, section 297A.99, subdivision 12, must be placed in the general fund of
the city. The tax imposed under subdivision 1 may expire at an earlier time if the city so
determines by ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after the governing body of the
city of Woodbury and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

ARTICLE 10

LOCAL SPECIAL TAXES

Section 1.

Laws 2008, chapter 366, article 7, section 17, is amended to read:

Sec. 17. COOK COUNTY deleted text begin ; deleted text end LODGING deleted text begin AND ADMISSIONS TAXES deleted text end new text begin TAX new text end .

Subdivision 1.

Lodging tax.

Notwithstanding Minnesota Statutes, section 477A.016,
or any other provision of law, ordinance, or city charter, the Board of Commissioners of
Cook County may impose, by ordinance, a tax of up to one percent on the gross receipts
subject to the lodging tax under Minnesota Statutes, section 469.190. This tax is in addition
to any tax imposed under Minnesota Statutes, section 469.190, and the total tax imposed
under that section and this provision must not exceed four percent.

deleted text begin Subd. 2. deleted text end

deleted text begin Admissions and recreation tax. deleted text end

deleted text begin Notwithstanding Minnesota Statutes, section
477A.016, or any other provision of law, ordinance, or city charter, the Board of
Commissioners of Cook County may impose, by ordinance, a tax of up to three percent on
admissions to entertainment and recreational facilities and rental of recreation equipment.
deleted text end

Subd. 3.

Use of taxes.

The deleted text begin taxes deleted text end new text begin tax new text end imposed in deleted text begin subdivisions deleted text end new text begin subdivision new text end 1 deleted text begin and 2 deleted text end must
be used to fund a new Cook County Event and Visitors Bureau as established by the Board
of Commissioners of Cook County. The Board of Commissioners of Cook County must
annually review the budget of the Cook County Event and Visitors Bureau. The event and
visitors bureau may not receive revenues raised from the deleted text begin taxes deleted text end new text begin tax new text end imposed in deleted text begin subdivisions deleted text end new text begin
subdivision new text end 1 deleted text begin and 2 deleted text end until the board of commissioners approves the annual budget.

Subd. 4.

Termination.

The deleted text begin taxes deleted text end new text begin tax new text end imposed in deleted text begin subdivisions deleted text end new text begin subdivision new text end 1 deleted text begin and 2 deleted text end
deleted text begin terminate 15 deleted text end new text begin terminates 30 new text end years after deleted text begin they are deleted text end new text begin it is new text end first imposed.

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 LAKE OF THE WOODS COUNTY LODGING TAX AUTHORIZED.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of
law, ordinance, or city charter, and subject to the limitation in paragraph (b), the Board of
Commissioners of Lake of the Woods County may impose, by ordinance, a tax of up to
three percent on gross receipts in Lake of the Woods County subject to the lodging tax
provisions under Minnesota Statutes, section 469.190.
new text end

new text begin (b) The provisions of paragraph (a) do not apply to any statutory or home rule city or
town located in Lake of the Woods County that imposes a lodging tax under Minnesota
Statutes, section 469.190, or the city of Baudette. The total tax imposed under Minnesota
Statutes, section 469.190, and this section must not exceed three percent.
new text end

new text begin (c) To the extent not inconsistent with Minnesota Statutes, section 469.190, this section
is governed by Minnesota Statutes, section 469.190.
new text end

new text begin (d) Revenues derived from taxes imposed under this section must be used to fund a new
Lake of the Woods County Event and Visitors Bureau, as established by the Board of
Commissioners of Lake of the Woods County, for purposes of marketing Lake of the Woods
County. The Board of Commissioners must annually review the budget of the Event and
Visitors Bureau. The Event and Visitors Bureau may receive revenues raised from the taxes
imposed under this section only upon annual approval by the Board of Commissioners of
the Event and Visitors Bureau budget.
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 Lake
of the Woods County and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

Sec. 3. new text begin CITY OF WAYZATA FOOD AND BEVERAGE TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Food and beverage tax authorized. new text end

new text begin Notwithstanding Minnesota Statutes,
section 477A.016, or any ordinance, city charter, or other provision of law, the city of
Wayzata may, by ordinance, impose a sales tax of up to one percent on the gross receipts
on all sales of food and beverages by a restaurant or place of refreshment, as defined by
resolution of the city, that are located within the city, which has become a regional
destination. For purposes of this section, "food and beverages" includes retail on-sale of
intoxicating liquor and fermented malt beverages.
new text end

new text begin Subd. 2. new text end

new text begin Use of proceeds from tax. new text end

new text begin (a) The proceeds of any tax imposed under
subdivision 1 shall be used by the city to pay all or a portion of the expenses of:
new text end

new text begin (1) operation, maintenance, and capital expenses for city parks;
new text end

new text begin (2) operation costs related to providing public safety for a regional destination; and
new text end

new text begin (3) costs related to downtown business attraction and retention.
new text end

new text begin (b) Authorized capital expenses include securing or paying debt service on bonds or
other obligations issued to finance the construction of park capital improvements.
new text end

new text begin Subd. 3. new text end

new text begin Collection, administration, and enforcement. new text end

new text begin If the city desires, it may enter
into an agreement with the commissioner of revenue to administer, collect, and enforce the
taxes authorized under subdivisions 1 and 2. If the commissioner agrees to collect the tax,
the provisions of Minnesota Statutes, section 297A.99, related to collection, administration,
and enforcement apply.
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 Wayzata and its chief clerical officer comply with Minnesota Statutes, section
645.021, subdivisions 2 and 3.
new text end

ARTICLE 11

PUBLIC FINANCE

Section 1.

Minnesota Statutes 2022, section 123B.61, is amended to read:

123B.61 PURCHASE OF CERTAIN EQUIPMENT.

The board of a district may issue general obligation certificates of indebtedness or capital
notes subject to the district debt limits to: (a) purchase vehicles, computers, telephone
systems, cable equipment, photocopy and office equipment, technological equipment for
instruction, and other capital equipment having an expected useful life at least as long as
the terms of the certificates or notes; (b) purchase computer hardware and software, without
regard to its expected useful life, whether bundled with machinery or equipment or
unbundled, together with application development services and training related to the use
of the computer; and (c) prepay special assessments. The certificates or notes must be
payable in not more than deleted text begin ten deleted text end new text begin 20 new text end years and must be issued on the terms and in the manner
determined by the board deleted text begin , except that certificates or notes issued to prepay special assessments
must be payable in not more than 20 years deleted text end . The certificates or notes may be issued by
resolution and without the requirement for an election. The certificates or notes are general
obligation bonds for purposes of section 126C.55. A tax levy must be made for the payment
of the principal and interest on the certificates or notes, in accordance with section 475.61,
as in the case of bonds. The sum of the tax levies under this section and section 123B.62
for each year must not exceed the lesser of the amount of the district's total operating capital
revenue or the sum of the district's levy in the general and community service funds excluding
the adjustments under this section for the year preceding the year the initial debt service
levies are certified. The district's general fund levy for each year must be reduced by the
sum of (1) the amount of the tax levies for debt service certified for each year for payment
of the principal and interest on the certificates or notes issued under this section as required
by section 475.61, (2) the amount of the tax levies for debt service certified for each year
for payment of the principal and interest on bonds issued under section 123B.62, and (3)
any excess amount in the debt redemption fund used to retire bonds, certificates, or notes
issued under this section or section 123B.62 after April 1, 1997, other than amounts used
to pay capitalized interest. If the district's general fund levy is less than the amount of the
reduction, the balance shall be deducted first from the district's community service fund
levy, and next from the district's general fund or community service fund levies for the
following year. A district using an excess amount in the debt redemption fund to retire the
certificates or notes shall report the amount used for this purpose to the commissioner by
July 15 of the following fiscal year. A district having an outstanding capital loan under
section 126C.69 must not use an excess amount in the debt redemption fund to retire the
certificates or notes.

Sec. 2.

Minnesota Statutes 2022, section 366.095, subdivision 1, is amended to read:

Subdivision 1.

Certificates of indebtedness.

The town board may issue certificates of
indebtedness within the debt limits for a town purpose otherwise authorized by law new text begin , including
projects that eliminate R-22, as defined in section 240A.09, paragraph (b), clause (2) new text end . The
certificates shall be payable in not more than deleted text begin ten deleted text end new text begin 20 new text end years and be issued on the terms and
in the manner deleted text begin as deleted text end new text begin determined by new text end the board deleted text begin may determine, provided that notes issued for
projects that eliminate R-22, as defined in section 240A.09, paragraph (b), clause (2), must
be payable in not more than 20 years deleted text end . If the amount of the certificates to be issued exceeds
0.25 percent of the estimated market value of the town, they shall not be issued for at least
ten days after publication in a newspaper of general circulation in the town of the board's
resolution determining to issue them. If within that time, a petition asking for an election
on the proposition signed by voters equal to ten percent of the number of voters at the last
regular town election is filed with the clerk, the certificates shall not be issued until their
issuance has been approved by a majority of the votes cast on the question at a regular or
special election. A tax levy shall be made to pay the principal and interest on the certificates
as in the case of bonds.

Sec. 3.

Minnesota Statutes 2022, section 373.01, subdivision 3, is amended to read:

Subd. 3.

Capital notes.

(a) A county board may, by resolution and without referendum,
issue capital notes subject to the county debt limit to purchase capital equipment useful for
county purposes that has an expected useful life at least equal to the term of the notes. The
notes shall be payable in not more than deleted text begin ten deleted text end new text begin 20 new text end years and shall be issued on new text begin the new text end terms and in
deleted text begin a deleted text end new text begin the new text end manner new text begin determined by new text end the board deleted text begin determines deleted text end . A tax levy shall be made for payment of
the principal and interest on the notes, in accordance with section 475.61, as in the case of
bonds.

(b) For purposes of this subdivision, "capital equipment" means:

(1) public safety, ambulance, road construction or maintenance, and medical equipment;
deleted text begin and
deleted text end

(2) computer hardware and software, whether bundled with machinery or equipment or
unbundled, together with application development services and training related to the use
of the computer hardware or software new text begin ; and
new text end

new text begin (3) projects that eliminate R-22, as defined in section 240A.09, paragraph (b), clause
(2) new text end .

Sec. 4.

Minnesota Statutes 2022, section 383B.117, subdivision 2, is amended to read:

Subd. 2.

Equipment acquisition; capital notes.

The board may, by resolution and
without public referendum, issue capital notes within existing debt limits for the purpose
of purchasing ambulance and other medical equipment, road construction or maintenance
equipment, public safety equipment new text begin , including projects that eliminate R-22, as defined in
section 240A.09, paragraph (b), clause (2), new text end and other capital equipment having an expected
useful life at least equal to the term of the notes issued. The notes shall be payable in not
more than deleted text begin ten deleted text end new text begin 20 new text end years and shall be issued on new text begin the new text end terms and in deleted text begin a deleted text end new text begin the new text end manner deleted text begin as deleted text end new text begin determined
by new text end the board deleted text begin determines, provided that notes issued for projects that eliminate R-22, as
defined in section 240A.09, paragraph (b), clause (2), must be payable in not more than 20
years deleted text end . The total principal amount of the notes issued for any fiscal year shall not exceed
one percent of the total annual budget for that year and shall be issued solely for the purchases
authorized in this subdivision. A tax levy shall be made for the payment of the principal
and interest on such notes as in the case of bonds. For purposes of this subdivision,
"equipment" includes computer hardware and software, whether bundled with machinery
or equipment or unbundled. For purposes of this subdivision, the term "medical equipment"
includes computer hardware and software and other intellectual property for use in medical
diagnosis, medical procedures, research, record keeping, billing, and other hospital
applications, together with application development services and training related to the use
of the computer hardware and software and other intellectual property, all without regard
to their useful life. For purposes of determining the amount of capital notes which the county
may issue in any year, the budget of the county and Hennepin Healthcare System, Inc. shall
be combined and the notes issuable under this subdivision shall be in addition to obligations
issuable under section 373.01, subdivision 3.

Sec. 5.

Minnesota Statutes 2022, section 410.32, is amended to read:

410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.

(a) Notwithstanding any contrary provision of other law or charter, a home rule charter
city may, by resolution and without public referendum, issue capital notes subject to the
city debt limit to purchase capital equipment.

(b) For purposes of this section, "capital equipment" means:

(1) public safety equipment, ambulance and other medical equipment, road construction
and maintenance equipment, and other capital equipment; deleted text begin and
deleted text end

(2) computer hardware and software, whether bundled with machinery or equipment or
unbundled, together with application development services and training related to the use
of the computer hardware and software new text begin ; and
new text end

new text begin (3) projects that eliminate R-22, as defined in section 240A.09, paragraph (b), clause
(2) new text end .

(c) The equipment or software must have an expected useful life at least as long as the
term of the notes.

(d) The notes shall be payable in not more than deleted text begin ten deleted text end new text begin 20 new text end years and be issued on new text begin the new text end terms
and in the manner new text begin determined by new text end the city deleted text begin determines, provided that notes issued for projects
that eliminate R-22, as defined in section 240A.09, paragraph (b), clause (2), must be payable
in not more than 20 years deleted text end . The total principal amount of the capital notes issued in a fiscal
year shall not exceed 0.03 percent of the estimated market value of taxable property in the
city for that year.

(e) A tax levy shall be made for the payment of the principal and interest on the notes,
in accordance with section 475.61, as in the case of bonds.

(f) Notes issued under this section shall require an affirmative vote of two-thirds of the
governing body of the city.

(g) Notwithstanding a contrary provision of other law or charter, a home rule charter
city may also issue capital notes subject to its debt limit in the manner and subject to the
limitations applicable to statutory cities pursuant to section 412.301.

Sec. 6.

Minnesota Statutes 2022, section 412.301, is amended to read:

412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.

(a) The council may issue certificates of indebtedness or capital notes subject to the city
debt limits to purchase capital equipment.

(b) For purposes of this section, "capital equipment" means:

(1) public safety equipment, ambulance and other medical equipment, road construction
and maintenance equipment, and other capital equipment; deleted text begin and
deleted text end

(2) computer hardware and software, whether bundled with machinery or equipment or
unbundled, together with application development services and training related to the use
of the computer hardware or software new text begin ; and
new text end

new text begin (3) projects that eliminate R-22, as defined in section 240A.09, paragraph (b), clause
(2) new text end .

(c) The equipment or software must have an expected useful life at least as long as the
terms of the certificates or notes.

(d) Such certificates or notes shall be payable in not more than deleted text begin ten deleted text end new text begin 20 new text end years and shall
be issued on deleted text begin such deleted text end new text begin the new text end terms and in deleted text begin such deleted text end new text begin the new text end manner deleted text begin as deleted text end new text begin determined by new text end the council deleted text begin may
determine, provided, however, that notes issued for projects that eliminate R-22, as defined
in section 240A.09, paragraph (b), clause (2), must be payable in not more than 20 years deleted text end .

(e) If the amount of the certificates or notes to be issued to finance any such purchase
exceeds 0.25 percent of the estimated market value of taxable property in the city, they shall
not be issued for at least ten days after publication in the official newspaper of a council
resolution determining to issue them; and if before the end of that time, a petition asking
for an election on the proposition signed by voters equal to ten percent of the number of
voters at the last regular municipal election is filed with the clerk, such certificates or notes
shall not be issued until the proposition of their issuance has been approved by a majority
of the votes cast on the question at a regular or special election.

(f) A tax levy shall be made for the payment of the principal and interest on such
certificates or notes, in accordance with section 475.61, as in the case of bonds.

Sec. 7.

Minnesota Statutes 2022, section 469.033, subdivision 6, is amended to read:

Subd. 6.

Operation area as taxing district, special tax.

All of the territory included
within the area of operation of any authority shall constitute a taxing district for the purpose
of levying and collecting special benefit taxes as provided in this subdivision. All of the
taxable property, both real and personal, within that taxing district shall be deemed to be
benefited by projects to the extent of the special taxes levied under this subdivision. Subject
to the consent by resolution of the governing body of the city in and for which it was created,
an authority may levy a tax upon all taxable property within that taxing district. The tax
shall be extended, spread, and included with and as a part of the general taxes for state,
county, and municipal purposes by the county auditor, to be collected and enforced therewith,
together with the penalty, interest, and costs. As the tax, including any penalties, interest,
and costs, is collected by the county treasurer it shall be accumulated and kept in a separate
fund to be known as the "housing and redevelopment project fund." The money in the fund
shall be turned over to the authority at the same time and in the same manner that the tax
collections for the city are turned over to the city, and shall be expended only for the purposes
of sections 469.001 to 469.047. It shall be paid out upon vouchers signed by the chair of
the authority or an authorized representative. The amount of the levy shall be an amount
approved by the governing body of the city, but shall not exceed 0.0185 percent of estimated
market value. The authority shall each year formulate and file a budget in accordance with
the budget procedure of the city in the same manner as required of executive departments
of the city or, if no budgets are required to be filed, by August 1. The amount of the tax
levy for the following year shall be based on that budget. new text begin The requirements of section
275.067 apply to a housing and redevelopment authority that has not previously certified a
levy.
new text end

Sec. 8.

Minnesota Statutes 2022, section 469.053, subdivision 4, is amended to read:

Subd. 4.

Mandatory city levy.

A city shall, at the request of the port authority, levy a
tax in any year for the benefit of the port authority. The tax must not exceed 0.01813 percent
of estimated market value. The amount levied must be paid by the city treasurer to the
treasurer of the port authority, to be spent by the authority. new text begin The requirements of section
275.067 apply to a port authority that has not previously certified a levy.
new text end

Sec. 9.

Minnesota Statutes 2022, section 469.053, subdivision 6, is amended to read:

Subd. 6.

Discretionary city levy.

Upon request of a port authority, the port authority's
city may levy a tax to be spent by and for its port authority. The tax must enable the port
authority to carry out efficiently and in the public interest sections 469.048 to 469.068 to
create and develop industrial development districts. The levy must not be more than 0.00282
percent of estimated market value. The county treasurer shall pay the proceeds of the tax
to the port authority treasurer. The money may be spent by the authority in performance of
its duties to create and develop industrial development districts. In spending the money the
authority must judge what best serves the public interest. The levy in this subdivision is in
addition to the levy in subdivision 4. new text begin The requirements of section 275.067 apply to a port
authority that has not previously certified a levy.
new text end

Sec. 10.

Minnesota Statutes 2022, section 469.107, subdivision 1, is amended to read:

Subdivision 1.

City tax levy.

A city may, at the request of the authority, levy a tax in
any year for the benefit of the authority. The tax must be not more than 0.01813 percent of
estimated market value. The amount levied must be paid by the city treasurer to the treasurer
of the authority, to be spent by the authority. new text begin The requirements of section 275.067 apply to
an economic development authority that has not previously certified a levy.
new text end

Sec. 11.

Minnesota Statutes 2022, section 473.39, is amended by adding a subdivision to
read:

new text begin Subd. 1x. new text end

new text begin Obligations. new text end

new text begin In addition to other authority in this section, the council may
issue certificates of indebtedness, bonds, or other obligations under this section in an amount
not exceeding $104,545,000 for capital expenditures as prescribed in the council's transit
capital improvement program and for related costs, including the costs of issuance and sale
of the obligations. Of this authorization, after July 1, 2023, the council may issue certificates
of indebtedness, bonds, or other obligations in an amount not exceeding $51,500,000, and
after July 1, 2024, the council may issue certificates of indebtedness, bonds, or other
obligations in an additional amount not exceeding $53,045,000.
new text end

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following
final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey,
Scott, and Washington.
new text end

Sec. 12.

Minnesota Statutes 2022, section 474A.02, subdivision 22b, is amended to read:

Subd. 22b.

Public facilities project.

"Public facilities project" means deleted text begin any publicly owned
facility, or deleted text end a facility deleted text begin that is used for district heating or cooling deleted text end , whether publicly or privately
owned, that is eligible to be financed with the proceeds of public facilities bonds as defined
under section 474A.02, subdivision 23a.

Sec. 13.

Minnesota Statutes 2022, section 474A.02, subdivision 23a, is amended to read:

Subd. 23a.

Qualified bonds.

"Qualified bonds" means the specific type or types of
obligations that are subject to the annual volume cap. Qualified bonds include the following
types of obligations as defined in federal tax law:

(a) "public facility bonds" means "exempt facility bonds" as defined in federal tax law,
except for residential rental project bonds deleted text begin , which are those obligations issued to finance
airports, docks and wharves, mass commuting facilities, facilities for the furnishing of water,
sewage facilities, solid waste disposal facilities, facilities for the local furnishing of electric
energy or gas, local district heating or cooling facilities, and qualified hazardous waste
facilities deleted text end . New bonds and other obligations are ineligible to receive state allocations or
entitlement authority for public facility projects under this section if they have been issued:

(1) for the purpose of refinancing, refunding, or otherwise defeasing existing debt; and

(2) more than one calendar year prior to the date of application;

(b) "residential rental project bonds" which are those obligations issued to finance
qualified residential rental projects;

(c) "mortgage bonds";

(d) "small issue bonds" issued to finance manufacturing projects and the acquisition or
improvement of agricultural real or personal property under sections 41C.01 to 41C.13;

(e) "student loan bonds" issued by or on behalf of the Minnesota Office of Higher
Education;

(f) "redevelopment bonds";

(g) "governmental bonds" with a nonqualified amount in excess of $15,000,000 as set
forth in section 141(b)5 of federal tax law; and

(h) "enterprise zone facility bonds" issued to finance facilities located within
empowerment zones or enterprise communities, as authorized under Public Law 103-66,
section 13301.

Sec. 14.

Minnesota Statutes 2022, section 475.54, subdivision 1, is amended to read:

Subdivision 1.

In installments; exception; annual limit.

Except as provided in
subdivision 3, 5a, 15, or 17, or as expressly authorized in another law, all obligations of
each issue shall mature or be subject to mandatory sinking fund redemption in installments,
the first not later than three years and the last not later than 30 years from the date of the
issue; or 40 years or the useful life of the asset, whichever is less, for deleted text begin municipal water and
wastewater treatment systems and deleted text end essential community facilities financed or guaranteed by
the United States Department of Agriculture new text begin and municipal water and wastewater treatment
systems new text end . No amount of principal of the issue payable in any calendar year shall exceed an
amount equal to the smallest amount payable in any preceding calendar year ending three
years or more after the issue date multiplied:

(1) by five, in the case of obligations maturing not later than 25 years from the date of
issue; and

(2) by six, in the case of obligations maturing 25 years or later from the date of issue.

Sec. 15.

Laws 1971, chapter 773, section 1, subdivision 2, as amended by Laws 1974,
chapter 351, section 5, Laws 1976, chapter 234, sections 1 and 7, Laws 1978, chapter 788,
section 1, Laws 1981, chapter 369, section 1, Laws 1983, chapter 302, section 1, Laws 1988,
chapter 513, section 1, Laws 1992, chapter 511, article 9, section 23, Laws 1998, chapter
389, article 3, section 27, Laws 2002, chapter 390, section 23, and Laws 2013, chapter 143,
article 12, section 18, is amended to read:

Subd. 2. For each of the years deleted text begin 2013 to 2024 deleted text end new text begin 2023 to 2035 new text end , the city of St. Paul is authorized
to issue bonds in the aggregate principal amount of deleted text begin $20,000,000 deleted text end new text begin $30,000,000 new text end for each year.

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 Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

Sec. 16. new text begin CITY OF VIRGINIA; NET DEBT LIMIT EXEMPTION.
new text end

new text begin The city of Virginia may finance the construction of a public safety building in the city
of Virginia by obtaining a loan from the United States Department of Agriculture secured
by its general obligation pledge. Any bonds issued relating to this construction project or
repayment of the loan must not be included in the computation of the city's limit on net debt
under Minnesota Statutes, section 475.53, subdivision 1.
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 Virginia and its chief clerical officer comply with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
new text end

ARTICLE 12

STADIUM RESERVE

Section 1.

Minnesota Statutes 2022, section 16A.726, is amended to read:

16A.726 SPORTS FACILITIES TRANSFERS; APPROPRIATIONS.

deleted text begin (a) If state appropriation bonds have not been issued under section 16A.965, amounts
not to exceed the increased revenues estimated by the commissioner of management and
budget under section 297E.021, subdivision 2, are appropriated from the general fund to
the commissioner of management and budget to make transfers to the Minnesota Sports
Facilities Authority for stadium costs as defined under section 473J.03, subdivision 9.
deleted text end

deleted text begin (b) deleted text end new text begin (a) new text end The commissioner shall make transfers to the Minnesota Sports Facilities Authority
required to make the state payments under section 473J.13, subdivisions 2 and 4, and for
the amount of Minneapolis taxes withheld under section 297A.994, subdivision 4, paragraph
(a), clause deleted text begin (5) deleted text end new text begin (4) new text end . Amounts sufficient to make the transfers are appropriated to the
commissioner from the general fund.

deleted text begin (c) deleted text end new text begin (b) new text end $2,700,000 is annually appropriated from the general fund from fiscal year 2014
through fiscal year 2033 to the commissioner of management and budget for a grant to the
city of St. Paul for the operating or capital costs of new or existing sports facilities.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023.
new text end

Sec. 2.

Minnesota Statutes 2022, section 297A.994, subdivision 4, is amended to read:

Subd. 4.

General fund allocations.

new text begin (a) new text end The commissioner must retain and deposit to
the general fund the following amounts, as required by subdivision 3, clause (3):

(1) for state bond debt service support beginning in calendar year 2021, and for each
calendar year thereafter through calendar year 2046, periodic amounts so that not later than
December 31, 2046, an aggregate amount equal to a present value of $150,000,000 has been
deposited in the general fund. To determine aggregate present value, the commissioner must
consult with the commissioner of management and budget regarding the present value dates,
discount rate or rates, and schedules of annual amounts. The present value date or dates
must be based on the date or dates bonds are sold under section 16A.965, or the date or
dates other state funds, if any, are deposited into the construction fund. The discount rate
or rates must be based on the true interest cost of the bonds issued under section 16A.965,
or an equivalent 30-year bond index, as determined by the commissioner of management
and budget. The schedule of annual amounts must be certified to the commissioner by the
commissioner of management and budget and the finance officer of the city;

(2) for the capital improvement reserve appropriation to the Minnesota Sports Facilities
Authority beginning in calendar year 2021, and for each calendar year thereafter through
calendar year 2046, an aggregate annual amount equal to the amount paid by the state for
this purpose in that calendar year under section 473J.13, subdivision 4;

(3) for the operating expense appropriation to the Minnesota Sports Facilities Authority
beginning in calendar year 2021, and for each calendar year thereafter through calendar
year 2046, an aggregate annual amount equal to the amount paid by the state for this purpose
in that calendar year under section 473J.13, subdivision 2; new text begin and
new text end

deleted text begin (4) for recapture of state advances for capital improvements and operating expenses for
calendar years 2016 through 2020 beginning in calendar year 2021, and for each calendar
year thereafter until all amounts under this clause have been paid, proportionate amounts
periodically until an aggregate amount equal to the present value of all amounts paid by the
state have been deposited in the general fund. To determine the present value of the amounts
paid by the state to the authority and the present value of amounts deposited to the general
fund under this clause, the commissioner shall consult with the commissioner of management
and budget regarding the present value dates, discount rate or rates, and schedule of annual
amounts. The present value dates must be based on the dates state funds are paid to the
authority, or the dates the commissioner of revenue deposits taxes for purposes of this clause
to the general fund. The discount rates must be based on the reasonably equivalent cost of
state funds as determined by the commissioner of management and budget. The schedule
of annual amounts must be revised to reflect amounts paid under section 473J.13, subdivision
2, paragraph (b), for 2016 to 2020, and subdivision 4, paragraph (c), for 2016 to 2020, and
taxes deposited to the general fund from time to time under this clause, and the schedule
and revised schedules must be certified to the commissioner by the commissioner of
management and budget and the finance officer of the city, and are transferred as accrued
from the general fund for repayment of advances made by the state to the authority; and
deleted text end

deleted text begin (5) deleted text end new text begin (4) new text end to capture increases in taxes imposed under the special law, for the benefit of the
Minnesota Sports Facilities Authority, beginning in calendar year 2013 and for each calendar
year thereafter through 2046, there shall be deposited to the general fund in proportionate
periodic payments in the following year, an amount equal to the following:

(i) 50 percent of the difference, if any, by which the amount of the net annual taxes for
the previous year exceeds the sum of the net actual taxes in calendar year 2011 plus
$1,000,000, inflated at two percent per year since 2011, minus

(ii) 25 percent of the difference, if any, by which the amount of the net annual taxes for
the preceding year exceeds the sum of the net actual taxes in calendar year 2011 plus
$3,000,000, inflated at two percent per year since 2011.

new text begin (b) The commissioner must remit the amounts under paragraph (a), clause (4), to the
Minnesota Sports Facility Authority. The Minnesota Sports Facility Authority must use the
amounts remitted under this paragraph for capital repairs, replacements, and improvements
for the stadium and stadium infrastructure.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023.
new text end

Sec. 3.

Minnesota Statutes 2022, section 473J.13, subdivision 2, is amended to read:

Subd. 2.

Operating expenses.

(a) The authority must pay or cause to be paid all operating
expenses of the stadium. The authority must require in the lease or use agreement with the
NFL team that the NFL team pay the authority, beginning January 1, 2016, or other date as
mutually agreed upon by the parties, toward operating costs of the stadium, $8,500,000
each year, increased by a three percent annual inflation rate.

(b) Beginning January 1, 2016, or other date as mutually agreed upon by the parties,
and continuing through 2020, the state shall pay the authority operating expenses, $6,000,000
each year, increased by an annual adjustment factor. deleted text begin The payment of $6,000,000 per year
beginning in 2016 is a payment by the state, which shall be repaid to the state, using funds
as provided under section 297A.994, subdivision 4, clause (4). deleted text end After 2020, the state shall
assume this payment, using funds generated in accordance with the city of Minneapolis as
specified under section 297A.994, subdivision 4, clause (3).

(c) The authority may establish an operating reserve to cover operating expense shortfalls
and may accept funds from any source for deposit in the operating reserve. The establishment
or funding of an authority operating reserve must not decrease the amounts required to be
paid to the authority toward operating costs under this subdivision unless agreed to by the
authority.

(d) The authority will be responsible for operating cost overruns.

(e) After the joint selection of the third-party manager or program manager, the authority
may agree with a program manager or other third-party manager of the stadium on a fixed
cost operating, management, or employment agreement with operating cost protections
under which the program manager or third-party manager assumes responsibility for stadium
operating costs and shortfalls. The agreement with the manager must require the manager
to prepare an initial and ongoing operating plan and operating budgets for approval by the
authority in consultation with the NFL team. The manager must agree to operate the stadium
in accordance with the approved operating plan and operating budget.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023.
new text end

Sec. 4.

Minnesota Statutes 2022, section 473J.13, subdivision 4, is amended to read:

Subd. 4.

Capital improvements.

(a) The authority shall establish a capital reserve fund.
The authority shall be responsible for making, or for causing others to make, all capital
repairs, replacements, and improvements for the stadium and stadium infrastructure. The
authority shall maintain, or cause others to maintain, the stadium and stadium infrastructure
in a safe, clean, attractive, and first-class manner so as to cause them to remain in a condition
comparable to that of other comparable NFL facilities of similar design and age. The authority
shall make, or cause others to make, all necessary or appropriate repairs, renewals, and
replacements, whether structural or nonstructural, interior or exterior, ordinary or
extraordinary, foreseen or unforeseen, in a prompt and timely manner. In addition, the
authority, with approval of the NFL team, may enter into an agreement with a program
manager to perform some or all of the responsibilities of the authority in this subdivision
and to assume and accept financial liability for the cost of performing the responsibilities.

(b) The NFL team must contribute $1,500,000 each year, beginning in 2016 or as
otherwise determined for the term of the lease or use agreement to the capital reserve fund,
increased by a three percent annual inflation rate.

(c) The state shall contribute $1,500,000 each year, beginning in 2016 or as otherwise
determined for the term of the lease to the capital reserve fund. The contributions of the
state are subject to increase by an annual adjustment factor. deleted text begin The contribution under this
paragraph by the state from 2016 through 2020 shall be repaid to the state using funds in
accordance with section 297A.994, subdivision 4, clause (4).
deleted text end

(d) The authority with input from the NFL team shall develop short-term and long-term
capital funding plans and shall use those plans to guide the future capital needs of the stadium
and stadium infrastructure. The authority shall make the final determination with respect
to funding capital needs. Any capital improvement proposed by the NFL team intended
primarily to provide revenue enhancements to the NFL team shall be paid for by the NFL
team, unless otherwise agreed to with the authority.

(e) The NFL team has authority to determine the design of a retractable roof feature for
the stadium. The NFL team must cooperate with the authority in designing the feature to
minimize any additional operating cost. The design must not result in a material marginal
increase in the operating or capital costs of the stadium, considering current collections and
reserves.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023.
new text end

Sec. 5. new text begin APPROPRIATION; SECURE PERIMETER.
new text end

new text begin $15,700,000 is appropriated in fiscal year 2023 from the general fund to the commissioner
of management and budget to provide for a secure perimeter around the professional football
stadium in Minneapolis. The commissioner must allocate these funds to the Minnesota
Sports Facilities Authority after notifying the chairs and ranking minority members of the
house of representatives Ways and Means Committee and the senate Finance Committee.
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. 6. new text begin OPTIONAL DEBT PAYOFF; APPROPRIATION.
new text end

new text begin (a) If the commissioner of management and budget elects to apply an amount from the
general reserve account established in Minnesota Statutes, section 297E.021, subdivision
4, to prepay the debt issued under Minnesota Statutes, section 16A.965, during fiscal year
2023, then the commissioner may also use the appropriation in paragraph (b) for the same
purpose.
new text end

new text begin (b) The amount necessary, when added to the amount in the general reserve account
established in Minnesota Statutes, section 297E.021, to prepay in fiscal year 2023 the entire
debt issued under Minnesota Statutes, section 16A.965, including any accrued interest and
associated financing costs, is appropriated from the general fund to the commissioner of
management and budget in fiscal year 2023.
new text end

new text begin (c) This appropriation is only effective to the extent available and to the extent the amount
in the general reserve account established in Minnesota Statutes, section 297E.021, is not
sufficient to prepay the debt in full in fiscal year 2023, including any accrued interest and
associated financing costs.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 7. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2022, sections 16A.965; and 297E.021, 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 upon certification from the commissioner
of management and budget to the revisor of statutes that the bonds authorized under
Minnesota Statutes, section 16A.965, are no longer outstanding.
new text end

ARTICLE 13

MISCELLANEOUS

Section 1.

new text begin [204B.50] LOCAL ELECTION EXPENSE REIMBURSEMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Local election expense reimbursement account. new text end

new text begin A local election expense
reimbursement account is established in the special revenue fund. Funds in the account are
appropriated to the secretary of state to make reimbursements to counties and municipalities
as provided in this section. Funds in the account are available until spent.
new text end

new text begin Subd. 2. new text end

new text begin Authorized purposes. new text end

new text begin The secretary of state must reimburse counties and
municipalities for expenses incurred in the administration of elections using available funds
in the local election expense reimbursement account. The following expenses are eligible
for reimbursement:
new text end

new text begin (1) preparation and printing of ballots;
new text end

new text begin (2) postage for absentee ballots;
new text end

new text begin (3) publication of the sample ballot;
new text end

new text begin (4) preparation of polling places in an amount not to exceed $150 per polling place;
new text end

new text begin (5) preparation of electronic voting systems in an amount not to exceed $100 per precinct;
new text end

new text begin (6) compensation for temporary staff or overtime payments;
new text end

new text begin (7) salaries of election judges;
new text end

new text begin (8) compensation of county canvassing board members; and
new text end

new text begin (9) other expenses as approved by the secretary of state.
new text end

new text begin Subd. 3. new text end

new text begin Request for payment. new text end

new text begin (a) By January 31 of each odd-numbered year, the
county auditor or municipal clerk must submit a request for payment of the costs incurred
by the county or municipality for conducting elections for the previous two years. The
request for payment must be submitted to the secretary of state and must be accompanied
by an itemized description of actual county or municipal expenditures, including copies of
invoices. In addition, the county auditor or municipal clerk must certify that the request for
reimbursement is based on actual costs incurred by the county or municipality in the election.
new text end

new text begin (b) The secretary of state must provide each county and municipality with the appropriate
forms for requesting payment and certifying expenses under this subdivision. The secretary
of state must not reimburse expenses unless the request for payment and certification of
costs has been submitted as provided in this subdivision.
new text end

new text begin Subd. 4. new text end

new text begin Amount of payment. new text end

new text begin The secretary of state must reimburse 80 percent of the
costs submitted by each county and municipality. If there are not sufficient funds to reimburse
applicants for 80 percent of the costs submitted, the secretary of state must reduce all
reimbursement proportionally. The secretary of state must complete the issuance of
reimbursements to the counties and municipalities no later than April 1 of each odd-numbered
year.
new text end

new text begin Subd. 5. new text end

new text begin Report to legislature. new text end

new text begin By May 1 of each odd-numbered year, the secretary of
state must submit a report to the chairs and ranking minority members of the legislative
committees with jurisdiction over elections policy on reimbursements made pursuant to this
section. The report must include the amount each jurisdiction received.
new text end

new text begin Subd. 6. new text end

new text begin Transfer to account. new text end

new text begin Beginning in fiscal year 2024 and annually thereafter,
$6,000,000 is transferred from the general fund to the local election expense reimbursement
account in the special revenue fund. The secretary of state may retain up to two percent of
the amount transferred under this subdivision in each year for administrative costs.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023.
new text end

Sec. 2.

Minnesota Statutes 2022, section 206.95, is amended to read:

206.95 VOTING EQUIPMENT new text begin AND INFRASTRUCTURE new text end GRANT ACCOUNT.

Subdivision 1.

Voting equipment new text begin and infrastructure new text end grant account.

A voting
equipment new text begin and infrastructure new text end grant account is established in the special revenue fund. Funds
in the account are appropriated to the secretary of state to provide grants to political
subdivisions as authorized by this section. Funds in the account are available until deleted text begin expended deleted text end new text begin
spent new text end .

Subd. 2.

Authorized deleted text begin equipment deleted text end new text begin purposes new text end .

A political subdivision may apply to receive
a grant under this section for the purchase or lease of the following:

(1) an electronic voting system, or any individual components of an electronic voting
system as provided in section 206.56, subdivision 8;

(2) assistive voting technology;

(3) an electronic roster system meeting the technology requirements of section 201.225,
subdivision 2; deleted text begin and
deleted text end

(4) new text begin hardware or software for election-related purposes;
new text end

new text begin (5) cybersecurity for election-related purposes;
new text end

new text begin (6) security-related infrastructure for election-related purposes; and
new text end

new text begin (7) new text end any other equipment or technology approved by the secretary of state for use in
conducting a state or local election in Minnesota consistent with the requirements of law.

Subd. 3.

Application.

(a) The secretary of state may make a grant from the account to
a political subdivision only after receiving an application from the political subdivision.
The application must contain the following information:

(1) the date the application is submitted;

(2) the name of the political subdivision;

(3) the name and title of the individual who prepared the application;

(4) new text begin if the application is for equipment described in subdivision 2, clauses 1 to 3:
new text end

new text begin (i) new text end the type of voting system currently used in each precinct in the political subdivision; new text begin
and
new text end

deleted text begin (5) deleted text end new text begin (ii) new text end the date the system currently used was acquired and at what cost;

deleted text begin (6) deleted text end new text begin (5) new text end the total number of registered voters, as of the date of the application, in each
precinct in the political subdivision;

deleted text begin (7) deleted text end new text begin (6) new text end the total amount of the grant requested;

deleted text begin (8) deleted text end new text begin (7) new text end the total amount and source of the political subdivision's money to be used to
match a grant from the account;

deleted text begin (9) deleted text end new text begin (8) new text end the type of deleted text begin voting system deleted text end new text begin equipment or infrastructure new text end to be acquired with the
grant money and new text begin , if the application is for a voting system, new text end whether the voting system will
permit individuals with disabilities to cast a secret ballot;

deleted text begin (10) deleted text end new text begin (9) new text end the proposed schedule for purchasing and deleted text begin implementing deleted text end new text begin using new text end the new deleted text begin voting
system and deleted text end new text begin equipment or infrastructure;
new text end

new text begin (10) where the equipment or infrastructure would be used, including, where applicable, new text end
the precincts in which the new deleted text begin voting system deleted text end new text begin equipment or infrastructure new text end would be used;

(11) whether the political subdivision has previously applied for a grant from the account
and the disposition of that application;

(12) a certified statement by the political subdivision that the grant will be used only to
purchase authorized equipment new text begin or infrastructure new text end under subdivision 2 deleted text begin and that the political
subdivision has insufficient resources to purchase the voting system without obtaining a
grant from the account deleted text end new text begin ;
new text end

new text begin (13) a statement of why the political subdivision needs the equipment or infrastructure new text end ;
and

deleted text begin (13) deleted text end new text begin (14) new text end any other information required by the secretary of state.

(b) The secretary of state must establish a deadline for receipt of grant applications, a
procedure for awarding and distributing grants, and a process for verifying the proper use
of the grants after distribution.

Subd. 4.

Amount of grant.

A political subdivision is eligible to receive a grant of no
more than deleted text begin 75 deleted text end new text begin 80 new text end percent of the total cost of deleted text begin electronic roster equipment and 50 percent of
the total cost of all other equipment or technology deleted text end new text begin equipment or infrastructure new text end authorized
for a grant under subdivision 2. In evaluating the application, the secretary of state shall
consider only the information set forth in the application and is not subject to chapter 14.
If the secretary of state determines that the application has been fully and properly completed,
and that there is a sufficient balance in the account to fund the grant, either in whole or in
part, the secretary of state may approve the application.

Subd. 5.

Report to legislature.

deleted text begin No later than deleted text end new text begin By new text end January 15 deleted text begin , 2018, and annually thereafter
until the appropriations provided for grants under this section have been exhausted, deleted text end new text begin of each
year, new text end the secretary of state must submit a report to the legislative committees with jurisdiction
over elections policy on grants awarded by this section. The report must detail each grant
awarded, including the jurisdiction, the amount of the grant, and the type of equipment
purchased.

new text begin Subd. 6. new text end

new text begin Transfer to account. new text end

new text begin Beginning in fiscal year 2024 and annually thereafter,
$4,000,000 is transferred from the general fund to the voting equipment and infrastructure
grant account in the special revenue fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023.
new text end

Sec. 3.

Minnesota Statutes 2022, section 270C.52, subdivision 2, is amended to read:

Subd. 2.

Payment agreements.

(a) When any portion of any tax payable to the
commissioner together with interest and penalty thereon, if any, has not been paid, the
commissioner may extend the time for payment for a further period. When the authority of
this section is invoked, the extension shall be evidenced by written agreement signed by
the taxpayer and the commissioner, stating the amount of the tax with penalty and interest,
if any, and providing for the payment of the amount in installments.

(b) The agreement may contain a confession of judgment for the amount and for any
unpaid portion thereof. If the agreement contains a confession of judgment, the confession
of judgment must provide that the commissioner may enter judgment against the taxpayer
in the district court of the county of residence as shown upon the taxpayer's tax return for
the unpaid portion of the amount specified in the extension agreement.

(c) The agreement shall provide that it can be terminated, after notice by the
commissioner, if information provided by the taxpayer prior to the agreement was inaccurate
or incomplete, collection of the tax covered by the agreement is in jeopardy, there is a
subsequent change in the taxpayer's financial condition, the taxpayer has failed to make a
payment due under the agreement, or the taxpayer has failed to pay any other tax or file a
tax return coming due after the agreement.

(d) The notice must be given at least 14 calendar days prior to termination, and shall
advise the taxpayer of the right to request a reconsideration from the commissioner of
whether termination is reasonable and appropriate under the circumstances. A request for
reconsideration does not stay collection action beyond the 14-day notice period. If the
commissioner has reason to believe that collection of the tax covered by the agreement is
in jeopardy, the commissioner may proceed under section 270C.36 and terminate the
agreement without regard to the 14-day period.

(e) The commissioner may accept other collateral the commissioner considers appropriate
to secure satisfaction of the tax liability. The principal sum specified in the agreement shall
bear interest at the rate specified in section 270C.40 on all unpaid portions thereof until the
same has been fully paid or the unpaid portion thereof has been entered as a judgment. The
judgment shall bear interest at the rate specified in section 270C.40.

(f) If it appears to the commissioner that the tax reported by the taxpayer is in excess of
the amount actually owing by the taxpayer, the extension agreement or the judgment entered
pursuant thereto shall be corrected. If after making the extension agreement or entering
judgment with respect thereto, the commissioner determines that the tax as reported by the
taxpayer is less than the amount actually due, the commissioner shall assess a further tax
in accordance with the provisions of law applicable to the tax.

(g) The authority granted to the commissioner by this section is in addition to any other
authority granted to the commissioner by law to extend the time of payment or the time for
filing a return and shall not be construed in limitation thereof.

deleted text begin (h) The commissioner shall charge a fee for entering into payment agreements. The fee
is set at $50 and is charged for entering into a payment agreement, for entering into a new
payment agreement after the taxpayer has defaulted on a prior agreement, and for entering
into a new payment agreement as a result of renegotiation of the terms of an existing
agreement. The fee is paid to the commissioner before the payment agreement becomes
effective and does not reduce the amount of the liability.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for payment plans entered into beginning
30 days after the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2022, section 278.01, subdivision 1, is amended to read:

Subdivision 1.

Determination of validity.

(a) Any person having personal property, or
any estate, right, title, or interest in or lien upon any parcel of land, who claims that such
property has been partially, unfairly, or unequally assessed in comparison with other property
in the (1) city, or (2) county, or (3) in the case of a county containing a city of the first class,
the portion of the county excluding the first class city, or that the parcel has been assessed
at a valuation greater than its real or actual value, or that the tax levied against the same is
illegal, in whole or in part, or has been paid, or that the property is exempt from the tax so
levied, may have the validity of the claim, defense, or objection determined by the district
court of the county in which the tax is levied or by the Tax Court by new text begin personally new text end serving one
copy of a petition for such determination upon the county auditor deleted text begin , one copy on the county
attorney, one copy on the county treasurer, and three copies on the county assessor. The
county assessor shall immediately forward one copy of the petition to the appropriate
governmental authority in a home rule charter or statutory city or town in which the property
is located if that city or town employs its own certified assessor. A copy of the petition shall
also be forwarded by the assessor to the school board of the school district in which the
property is located deleted text end . new text begin The county auditor may waive personal service of a petition by: (i)
agreeing to accept service through an alternative service method; (ii) designating an
alternative service method on the county website; or (iii) acknowledging receipt of a petition
served through an alternative service method. An alternative service method includes but
is not limited to service by email or by an electronic upload to a website designated by the
county. Service may be made by any person, including a party to the action.
new text end

(b) deleted text begin In counties where the office of county treasurer has been combined with the office
of county auditor, the county may elect to require the petitioner to serve the number of
copies as determined by the county. deleted text end new text begin Within 30 days after a petition is served and filed, the
county auditor must provide a copy of the petition, if a copy has not already been provided,
to the county assessor, county treasurer, and the county attorney. new text end The county assessor shall
immediately forward one copy of the petition to the appropriate governmental authority in
a home rule charter or statutory city or town in which the property is located if that city or
town employs its own certified assessor. new text begin On or before the first day of July, the county auditor
must send new text end a list of petitioned properties deleted text begin , including deleted text end new text begin to the school board of the school district
in which the property is located. The list must include new text end the name of the petitioner, the
identification number of the property, and the estimated market value deleted text begin , shall be sent on or
before the first day of July by the county auditor/treasurer to the school board of the school
district in which the property is located deleted text end new text begin of the property new text end .

(c) For all counties, the petitioner must file deleted text begin the copies with deleted text end new text begin a copy of the petition and new text end
proof of service deleted text begin , deleted text end new text begin of the petition new text end in the office of the court administrator of the district court
on or before April 30 of the year in which the tax becomes payable. A petition for
determination under this section may be transferred by the district court to the Tax Court.
An appeal may also be taken to the Tax Court under chapter 271 at any time following
receipt of the valuation notice that county assessors or city assessors having the powers of
a county assessor are required by section 273.121 to send to persons whose property is to
be included on the assessment roll that year, but prior to May 1 of the year in which the
taxes are payable.

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

Minnesota Statutes 2022, section 297H.13, subdivision 2, is amended to read:

Subd. 2.

Allocation of revenues.

(a) deleted text begin $33,760,000, or 70 percent, whichever is greater, deleted text end
Of the amounts remitted under this chapter new text begin , 70 percent new text end must be credited to the environmental
fund established in section 16A.531, subdivision 1.

(b) new text begin In addition to the amounts credited to the environmental fund in paragraph (a), 15
percent of the amounts remitted under this chapter shall be deposited into the resource
management account in the environmental fund in fiscal year 2027 and later.
new text end

new text begin (c) new text end The remainder must be deposited into the general fund.

new text begin (d) Beginning in fiscal year 2027 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 end

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

new text begin [428B.01] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin As used in sections 428B.01 to 428B.09, the terms in this
section have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Activity. new text end

new text begin "Activity" means but is not limited to all of the following:
new text end

new text begin (1) promotion of tourism within the district;
new text end

new text begin (2) promotion of business activity, including but not limited to tourism, of businesses
subject to the service charge within the tourism improvement district;
new text end

new text begin (3) marketing, sales, and economic development; and
new text end

new text begin (4) other services provided for the purpose of conferring benefits upon businesses located
in the tourism improvement district that are subject to the tourism improvement district
service charge.
new text end

new text begin Subd. 3. new text end

new text begin Business. new text end

new text begin "Business" means the type or class of lodging business that is
described in the municipality's ordinance, which benefits from district activities, adopted
under section 428B.02.
new text end

new text begin Subd. 4. new text end

new text begin Business owner. new text end

new text begin "Business owner" means a person recognized by a municipality
as the owner of a business.
new text end

new text begin Subd. 5. new text end

new text begin City. new text end

new text begin "City" means a home rule charter or statutory city.
new text end

new text begin Subd. 6. new text end

new text begin Clerk. new text end

new text begin "Clerk" means the chief clerical officer of the municipality.
new text end

new text begin Subd. 7. new text end

new text begin Governing body. new text end

new text begin "Governing body" means, with respect to a city, a city council
or other governing body of a city. With respect to a town, governing body means a town
board or other governing body of a town. With respect to a county, governing body means
a board of commissioners or other governing body of a county.
new text end

new text begin Subd. 8. new text end

new text begin Impacted business owners. new text end

new text begin "Impacted business owners" means a majority of
business owners located within a proposed or established tourism improvement district.
new text end

new text begin Subd. 9. new text end

new text begin Municipality. new text end

new text begin "Municipality" means a county, city, or town.
new text end

new text begin Subd. 10. new text end

new text begin Tourism improvement association. new text end

new text begin "Tourism improvement association"
means a new or existing and tax-exempt nonprofit corporation, entity, or agency charged
with promoting tourism within the tourism improvement district and that is under contract
with the municipality to administer the tourism improvement district and implement the
activities and improvements listed in the municipality's ordinance.
new text end

new text begin Subd. 11. new text end

new text begin Tourism improvement district. new text end

new text begin "Tourism improvement district" means a
tourism improvement district established under this chapter.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

new text begin [428B.02] ESTABLISHMENT OF TOURISM IMPROVEMENT DISTRICT.
new text end

new text begin Subdivision 1. new text end

new text begin Ordinance. new text end

new text begin (a) Upon a petition by impacted business owners, a governing
body of a municipality may adopt an ordinance establishing a tourism improvement district
after holding a public hearing on the district. The ordinance must include:
new text end

new text begin (1) a map that identifies the tourism improvement district boundaries in sufficient detail
to allow a business owner to determine whether a business is located within the tourism
improvement district boundaries;
new text end

new text begin (2) the name of the tourism improvement association designated to administer the tourism
improvement district and implement the approved activities and improvements;
new text end

new text begin (3) a list of the proposed activities and improvements in the tourism improvement district;
new text end

new text begin (4) the time and manner of collecting the service charge and any interest and penalties
for nonpayment;
new text end

new text begin (5) a definition describing the type or class of businesses to be included in the tourism
improvement district and subject to the service charge;
new text end

new text begin (6) the rate, method, and basis of the service charge with intent, and penalties on
delinquent payments for the district, including the portion dedicated to covering expenses
listed in subdivision 4, paragraph (b); and
new text end

new text begin (7) the number of years the service charge will be in effect.
new text end

new text begin (b) If the boundaries of a proposed tourism improvement district overlap with the
boundaries of an existing special service district, the tourism improvement district ordinance
may list measures to avoid any impediments on the ability of the special service district to
continue to provide its services to benefit its property owners.
new text end

new text begin Subd. 2. new text end

new text begin Notice. new text end

new text begin A municipality must provide notice of the hearing by publication in at
least two issues of the official newspaper of the municipality. The two publications must
be two weeks apart and the municipality must hold the hearing at least three days after the
last publication. Not less than ten days before the hearing, the municipality must mail, or
deliver by electronic means, notice to the business owner of each business subject to the
proposed service charge by the tourism improvement district. The notice must include:
new text end

new text begin (1) a map showing the boundaries of the proposed district;
new text end

new text begin (2) the time and place of the hearing;
new text end

new text begin (3) a statement that all interested persons will be given an opportunity to be heard at the
hearing regarding the proposed service charge; and
new text end

new text begin (4) a brief description of the proposed activities, improvements, and service charge.
new text end

new text begin Subd. 3. new text end

new text begin Business owner determination. new text end

new text begin A business must provide ownership information
to the municipality. A municipality has no obligation to obtain other information regarding
the ownership of businesses, and its determination of ownership shall be final for the purposes
of this chapter. If this chapter requires the signature of a business owner, the signature of
the authorized representative of a business owner is sufficient.
new text end

new text begin Subd. 4. new text end

new text begin Service charges; relationship to services. new text end

new text begin (a) A municipality may impose a
service charge on a business pursuant to this chapter for the purpose of providing activities
and improvements that will provide benefits to a business that is located within the tourism
improvement district and subject to the tourism improvement district service charge. Each
business paying a service charge within a district must benefit directly or indirectly from
improvements provided by a tourism improvement association, provided, however, the
business need not benefit equally. Service charges must be based on a percent of gross
business revenue, a fixed dollar amount per transaction, or any other reasonable method
based upon benefit and approved by the municipality.
new text end

new text begin (b) Service charges may be used to cover the costs of collections, as well as other
administrative costs associated with operating, forming, or maintaining the district.
new text end

new text begin Subd. 5. new text end

new text begin Public hearing. new text end

new text begin At the hearing regarding the adoption of the ordinance
establishing a tourism improvement district, business owners and persons affected by the
proposed district may testify on issues relevant to the proposed district. The hearing may
be adjourned from time to time. The ordinance establishing the district may be adopted 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 municipality.
new text end

new text begin Subd. 6. new text end

new text begin Appeal to district court. new text end

new text begin Within 45 days after the adoption of the ordinance
establishing a tourism improvement district, a person aggrieved, who is not precluded by
failure to object before or at the hearing, may appeal to the district court by serving a notice
on the clerk of the municipality or governing body. The validity of the tourism improvement
district and the service charge imposed under this chapter shall not be contested in an action
or proceeding unless the action or proceeding is commenced within 45 days after the adoption
of the ordinance establishing a tourism improvement district. The petitioner must file notice
with the court administrator of the district court within ten days after its service. The clerk
of the municipality must provide the petitioner with a certified copy of the findings and
determination of the governing body. The court may affirm the action objected to or, if the
petitioner's objections have merit, modify or cancel it. If the petitioner does not prevail on
the appeal, the costs incurred shall be charged to the petitioner by the court and judgment
entered for them. All objections shall be deemed waived unless presented on appeal.
new text end

new text begin Subd. 7. new text end

new text begin Notice to the commissioner of revenue. new text end

new text begin Within 30 days of adoption of the
ordinance, the governing body must 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 the day following final enactment.
new text end

Sec. 8.

new text begin [428B.03] SERVICE CHARGE AUTHORITY; NOTICE; HEARING
REQUIREMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Authority. new text end

new text begin A municipality may impose service charges authorized under
section 428B.02, subdivision 4, to finance an activity or improvement in the tourism
improvement district that is provided by the municipality if the activity or improvement is
provided in the tourism improvement district at an increased level of service. The service
charges may be imposed in the amount needed to pay for the increased level of service
provided by the activity or improvement.
new text end

new text begin Subd. 2. new text end

new text begin Annual hearing requirement; notice. new text end

new text begin Beginning one year after the
establishment of the tourism improvement district, the municipality must hold an annual
public hearing regarding continuation of the service charges in the tourism improvement
district. The municipality must provide notice of the hearing by publication in the official
newspaper at least seven days before the hearing. The municipality must mail, or deliver
by electronic means, notice of the hearing to business owners subject to the service charge
at least seven days before the hearing. At the hearing, a person affected by the proposed
district may testify on issues relevant to the proposed district. Within six months of the
hearing, the municipality may adopt a resolution to continue imposing service charges within
the district not exceeding the amount or rate expressed in the notice. For purposes of this
section, the notice must include:
new text end

new text begin (1) a map showing the boundaries of the district;
new text end

new text begin (2) the time and place of the hearing;
new text end

new text begin (3) a statement that all interested persons will be given an opportunity to be heard at the
hearing regarding the proposed service charge;
new text end

new text begin (4) a brief description of the proposed activities and improvements;
new text end

new text begin (5) the estimated annual amount of proposed expenditures for activities and
improvements;
new text end

new text begin (6) the rate of the service charge for the district during the year and the nature and
character of the proposed activities and improvements for the district during the year in
which service charges are collected;
new text end

new text begin (7) the number of years the service charge will be in effect; and
new text end

new text begin (8) a statement that the petition requirement of section 428B.07 has either been met or
does not apply to the proposed service charge.
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.

new text begin [428B.04] MODIFICATION OF ORDINANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Adoption of ordinance; request for modification. new text end

new text begin Upon written request
of the tourism improvement association, the governing body of a municipality may adopt
an ordinance to modify the district after conducting a public hearing on the proposed
modifications. If the modification includes a change to the rate, method, and basis of
imposing the service charge or the expansion of the tourism improvement district's geographic
boundaries, a petition as described in section 428B.07 must be submitted by impacted
business owners to initiate proceedings for modification.
new text end

new text begin Subd. 2. new text end

new text begin Notice of modification. new text end

new text begin A municipality must provide notice of the hearing by
publication in at least two issues of the municipality's official newspaper. The two
publications must be two weeks apart and the municipality must hold a hearing at least three
days after the last publication. Not less than ten days before the hearing, the municipality
must mail, or deliver by electronic means, notice to the business owner of each business
subject to the service charge by the tourism improvement district. The notice must include:
new text end

new text begin (1) a map showing the boundaries of the district and any proposed changes to the
boundaries of the district;
new text end

new text begin (2) the time and place of the hearing;
new text end

new text begin (3) a statement that all interested persons will be given an opportunity to be heard at the
hearing regarding the proposed service charge; and
new text end

new text begin (4) a brief description of the proposed modification to the ordinance.
new text end

new text begin Subd. 3. new text end

new text begin Hearing on modification. new text end

new text begin At the hearing regarding modification to the
ordinance, business owners and persons affected by the proposed modification may testify
on issues relevant to the proposed modification. Within six months after the conclusion of
the hearing, the municipality may adopt the ordinance modifying the district by a vote of
the majority of the governing body in accordance with the request for modification by the
tourism improvement association and as described in the notice.
new text end

new text begin Subd. 4. new text end

new text begin Objection. new text end

new text begin If the modification of the ordinance includes the expansion of the
tourism improvement district's geographic boundaries, the ordinance modifying the district
may be adopted after following the notice and veto requirements in section 428B.08;
however, a successful objection will be determined based on a majority of business owners
who will pay the service charge in the expanded area of the district. For all other
modifications, the ordinance modifying the district may be adopted following the notice
and veto requirements in section 428B.08.
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.

new text begin [428B.05] COLLECTION OF SERVICE CHARGES; PENALTIES.
new text end

new text begin The service charges imposed under this chapter may be collected by the municipality,
tourism improvement association, or other designated agency or entity. Collection of the
service charges must be made at the time and in the manner set forth in the ordinance. The
entity collecting the service charges may charge interest and penalties on delinquent payments
for service charges imposed under this chapter as set forth in the municipality's ordinance.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 11.

new text begin [428B.06] TOURISM IMPROVEMENT ASSOCIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Composition and duties. new text end

new text begin The tourism improvement association must
be designated in the municipality's ordinance. The tourism improvement association shall
appoint a governing board or committee composed of a majority of business owners who
pay the tourism improvement district service charge, or the representatives of those business
owners. The governing board or committee must manage the funds raised by the tourism
improvement district and fulfill the obligations of the tourism improvement district. A
tourism improvement association has full discretion to select the specific activities and
improvements that are funded with tourism improvement district service charges within the
authorized activities and improvements described in the ordinance.
new text end

new text begin Subd. 2. new text end

new text begin Annual report. new text end

new text begin The tourism improvement association must submit to the
municipality an annual report for each year in which a service charge is imposed. The report
must include a financial statement of revenue raised by the district. The municipality may
also, as part of the enabling ordinance, require the submission of other relevant information
related to the association.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 12.

new text begin [428B.07] PETITION REQUIRED.
new text end

new text begin A municipality may not establish a tourism improvement district under section 428B.02
unless impacted business owners file a petition requesting a public hearing on the proposed
action with the clerk of the municipality.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 13.

new text begin [428B.08] VETO POWER OF OWNERS.
new text end

new text begin Subdivision 1. new text end

new text begin Notice of right to file objections. new text end

new text begin The effective date of an ordinance or
resolution adopted under this chapter must be at least 45 days after it is adopted by the
municipality. Within five days after the municipality adopts the ordinance or resolution,
the municipality must mail a summary of the ordinance or resolution to each business owner
subject to the service charge within the tourism improvement district in the same manner
that notice is mailed, or delivered by electronic means, under section 428B.02. The mailing
must include a notice that business owners subject to the service charge have the right to
veto, by a simple majority, the ordinance or resolution by filing the required number of
objections with the clerk of the municipality before the effective date of the ordinance or
resolution and include notice that a copy of the ordinance or resolution is available for public
inspection with the clerk of the municipality.
new text end

new text begin Subd. 2. new text end

new text begin Requirements for veto. new text end

new text begin If impacted business owners file an objection to the
ordinance or resolution before the effective date of the ordinance or resolution, the ordinance
or resolution does not become effective.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 14.

new text begin [428B.09] DISESTABLISHMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Procedure for disestablishment. new text end

new text begin An ordinance adopted under this chapter
must provide a 30-day period each year in which business owners subject to the service
charge may request disestablishment of the district. Beginning one year after establishment
of the tourism improvement district, an annual 30-day period of disestablishment begins
with the anniversary of the date of establishment. Upon submission of a petition from
impacted business owners, the municipality may disestablish a tourism improvement district
by adopting an ordinance after holding a public hearing on the disestablishment. Prior to
the hearing, the municipality must publish notice of the hearing on disestablishment in at
least two issues of the municipality's official newspaper. The two publications must be two
weeks apart and the municipality must hold the hearing at least three days after the last
publication. Not less than ten days before the hearing, the municipality must mail, or deliver
by electronic means, notice to the business owner of each business subject to the service
charge. The notice must include:
new text end

new text begin (1) the time and place of the hearing;
new text end

new text begin (2) a statement that all interested persons will be given an opportunity to be heard at the
hearing regarding disestablishment;
new text end

new text begin (3) the reason for disestablishment; and
new text end

new text begin (4) a proposal to dispose of any assets acquired with the revenues of the service charge
imposed under the tourism improvement district.
new text end

new text begin Subd. 2. new text end

new text begin Objection. new text end

new text begin An ordinance disestablishing the tourism improvement district
becomes effective following the notice and veto requirements in section 428B.08.
new text end

new text begin Subd. 3. new text end

new text begin Refund to business owners. new text end

new text begin (a) Upon the disestablishment of a tourism
improvement district, any remaining revenues derived from the service charge, or any
revenues derived from the sale of assets acquired with the service charge revenues, shall
be refunded to business owners located and operating within the tourism improvement
district in which service charges were imposed by applying the same method and basis that
was used to calculate the service charges levied in the fiscal year in which the district is
disestablished.
new text end

new text begin (b) If the disestablishment occurs before the service charge is imposed for the fiscal
year, the method and basis that was used to calculate the service charge imposed in the
immediate prior fiscal year shall be used to calculate the amount of a refund, if any.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 15.

new text begin [428B.10] COORDINATION OF DISTRICTS.
new text end

new text begin If a county establishes a tourism improvement district in a city or town under this chapter,
a city or town may not establish a tourism improvement district in the part of the city or
town located in the county-established district. If a city or town establishes a tourism
improvement district under this chapter, a county may not establish a tourism improvement
district in the part of the city or town located in the city- or town-established district.
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 14

DEPARTMENT OF REVENUE: INDIVIDUAL INCOME AND CORPORATE
FRANCHISE TAXES

Section 1.

Minnesota Statutes 2022, section 289A.08, subdivision 7, as amended by Laws
2023, chapter 1, section 2, is amended to read:

Subd. 7.

Composite income tax returns for nonresident partners, shareholders, and
beneficiaries.

(a) The commissioner may allow a partnership with nonresident partners to
file a composite return and to pay the tax on behalf of nonresident partners who have no
other Minnesota source income. This composite return must include the names, addresses,
Social Security numbers, income allocation, and tax liability for the nonresident partners
electing to be covered by the composite return.

(b) The computation of a partner's tax liability must be determined by multiplying the
income allocated to that partner by the highest rate used to determine the tax liability for
individuals under section 290.06, subdivision 2c. Nonbusiness deductions, standard
deductions, or personal exemptions are not allowed.

(c) The partnership must submit a request to use this composite return filing method for
nonresident partners. The requesting partnership must file a composite return in the form
prescribed by the commissioner of revenue. The filing of a composite return is considered
a request to use the composite return filing method.

(d) The electing partner must not have any Minnesota source income other than the
income from the partnership, other electing partnerships, and other qualifying entities
electing to file and pay the pass-through entity tax under subdivision 7a. If it is determined
that the electing partner has other Minnesota source income, the inclusion of the income
and tax liability for that partner under this provision will not constitute a return to satisfy
the requirements of subdivision 1. The tax paid for the individual as part of the composite
return is allowed as a payment of the tax by the individual on the date on which the composite
return payment was made. If the electing nonresident partner has no other Minnesota source
income, filing of the composite return is a return for purposes of subdivision 1.

(e) This subdivision does not negate the requirement that an individual pay estimated
tax if the individual's liability would exceed the requirements set forth in section 289A.25.
The individual's liability to pay estimated tax is, however, satisfied when the partnership
pays composite estimated tax in the manner prescribed in section 289A.25.

(f) If an electing partner's share of the partnership's gross income from Minnesota sources
is less than the filing requirements for a nonresident under this subdivision, the tax liability
is zero. However, a statement showing the partner's share of gross income must be included
as part of the composite return.

(g) The election provided in this subdivision is only available to a partner who has no
other Minnesota source income and who is either (1) a full-year nonresident individual or
(2) a trust or estate that does not claim a deduction under either section 651 or 661 of the
Internal Revenue Code.

(h) A corporation defined in section 290.9725 and its nonresident shareholders may
make an election under this paragraph. The provisions covering the partnership apply to
the corporation and the provisions applying to the partner apply to the shareholder.

(i) Estates and trusts distributing current income only and the nonresident individual
beneficiaries of the estates or trusts may make an election under this paragraph. The
provisions covering the partnership apply to the estate or trust. The provisions applying to
the partner apply to the beneficiary.

(j) For the purposes of this subdivision, "income" deleted text begin 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, 28, and 31, 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. deleted text end new text begin has
the meaning given in section 290.01, subdivision 19, paragraph (h).
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, 2022.
new text end

Sec. 2.

Minnesota Statutes 2022, section 289A.08, subdivision 7a, as amended by Laws
2023, chapter 1, section 3, is amended to read:

Subd. 7a.

Pass-through entity tax.

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

(1) "income" has the meaning given in deleted text begin subdivision 7, paragraph (j), modified by the
addition provided in section 290.0131, subdivision 5, and the subtraction provided in section
290.0132, subdivision 3, except that the provisions that apply to a partnership apply to a
qualifying entity and the provisions that apply to a partner apply to a qualifying owner. 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 section 290.01, subdivision 19, paragraph (i);
new text end

(2) "qualifying entity" means a partnership, limited liability company new text begin taxed as a
partnership or S corporation new text end , or S corporation including a qualified subchapter S subsidiary
organized under section 1361(b)(3)(B) of the Internal Revenue Code. Qualifying entity does
not include a partnership, limited liability company, or corporation that has a partnership,
limited liability company other than a disregarded entity, or corporation as a partner, member,
or shareholder; and

(3) "qualifying owner" means:

(i) a resident or nonresident individual or estate that is a partner, member, or shareholder
of a qualifying entity; or

(ii) a resident or nonresident trust that is a shareholder of a qualifying entity that is an
S corporation.

(b) For taxable years beginning after December 31, 2020, in which the taxes of a
qualifying owner are limited under section 164(b)(6)(B) of the Internal Revenue Code, a
qualifying entity may elect to file a return and pay the pass-through entity tax imposed under
paragraph (c). The election:

(1) must be made on or before the due date or extended due date of the qualifying entity's
pass-through entity tax return;

(2) may only be made by qualifying owners who collectively hold more than a 50 percent
ownership interest in the qualifying entity;

(3) is binding on all qualifying owners who have an ownership interest in the qualifying
entity; and

(4) once made is irrevocable for the taxable year.

(c) Subject to the election in paragraph (b), a pass-through entity tax is imposed on a
qualifying entity in an amount equal to the sum of the tax liability of each qualifying owner.

(d) The amount of a qualifying owner's tax liability under paragraph (c) is the amount
of the qualifying owner's income multiplied by the highest tax rate for individuals under
section 290.06, subdivision 2c. When making this determination:

(1) nonbusiness deductions, standard deductions, or personal exemptions are not allowed;
and

(2) a credit or deduction is allowed only to the extent allowed to the qualifying owner.

(e) The amount of each credit and deduction used to determine a qualifying owner's tax
liability under paragraph (d) must also be used to determine that qualifying owner's income
tax liability under chapter 290.

(f) This subdivision does not negate the requirement that a qualifying owner pay estimated
tax if the qualifying owner's tax liability would exceed the requirements set forth in section
289A.25. The qualifying owner's liability to pay estimated tax on the qualifying owner's
tax liability as determined under paragraph (d) is, however, satisfied when the qualifying
entity pays estimated tax in the manner prescribed in section 289A.25 for composite estimated
tax.

(g) A qualifying owner's adjusted basis in the interest in the qualifying entity, and the
treatment of distributions, is determined as if the election to pay the pass-through entity tax
under paragraph (b) is not made.

(h) To the extent not inconsistent with this subdivision, for purposes of this chapter, a
pass-through entity tax return must be treated as a composite return and a qualifying entity
filing a pass-through entity tax return must be treated as a partnership filing a composite
return.

(i) The provisions of subdivision 17 apply to the election to pay the pass-through entity
tax under this subdivision.

(j) If a nonresident qualifying owner of a qualifying entity making the election to file
and pay the tax under this subdivision has no other Minnesota source income, filing of the
pass-through entity tax return is a return for purposes of subdivision 1, provided that the
nonresident qualifying owner must not have any Minnesota source income other than the
income from the qualifying entity, other electing qualifying entities, and other partnerships
electing to file a composite return under subdivision 7. If it is determined that the nonresident
qualifying owner has other Minnesota source income, the inclusion of the income and tax
liability for that owner under this provision will not constitute a return to satisfy the
requirements of subdivision 1. The tax paid for the qualifying owner as part of the
pass-through entity tax return is allowed as a payment of the tax by the qualifying owner
on the date on which the pass-through entity tax return payment was made.

(k) Once a credit is claimed by a qualifying owner under section 290.06, subdivision
40, a qualifying entity cannot receive a refund for tax paid under this subdivision for any
amounts claimed under that section by the qualifying owners. Once a credit is claimed under
section 290.06, subdivision 40, any refund must be claimed in conjunction with a return
filed by the qualifying owner.

new text begin EFFECTIVE DATE. new text end

new text begin (a) The amendment to paragraph (a), clause (1), is effective for
taxable years beginning after December 31, 2022.
new text end

new text begin (b) The amendment to paragraph (a), clause (2), is effective retroactively for taxable
years beginning after December 31, 2020.
new text end

Sec. 3.

Minnesota Statutes 2022, section 289A.382, subdivision 2, is amended to read:

Subd. 2.

Reporting and payment requirements for partnerships and tiered
partners.

(a) Except for when an audited partnership makes the election in subdivision 3,
and except for negative federal adjustments required under federal law taken into account
by the partnership in the partnership return for the adjustment or other year, all final federal
adjustments of an audited partnership must comply with paragraph (b) and each direct
partner of the audited partnership, other than a tiered partner, must comply with paragraph
(c).

(b) No later than 90 days after the final determination date, the audited partnership must:

(1) file a completed federal adjustments report, including all partner-level information
required under section 289A.12, subdivision 3, with the commissioner;

(2) notify each of its direct partners of their distributive share of the final federal
adjustments;

(3) file an amended composite report for all direct partners who were included in a
composite return under section 289A.08, subdivision 7, in the reviewed year, and pay the
additional amount that would have been due had the federal adjustments been reported
properly as required; deleted text begin and
deleted text end

(4) file amended withholding reports for all direct partners who were or should have
been subject to nonresident withholding under section 290.92, subdivision 4b, in the reviewed
year, and pay the additional amount that would have been due had the federal adjustments
been reported properly as required deleted text begin . deleted text end new text begin ; and
new text end

new text begin (5) file an amended pass-through entity tax report for all direct partners who were
included in a pass-through entity tax return under section 289A.08, subdivision 7a, in the
reviewed year, and pay the additional amount that would have been due had the federal
adjustments been reported properly as required.
new text end

(c) No later than 180 days after the final determination date, each direct partner, other
than a tiered partner, that is subject to a tax administered under this chapter, other than the
sales tax, must:

(1) file a federal adjustments report reporting their distributive share of the adjustments
reported to them under paragraph (b), clause (2); and

(2) pay any additional amount of tax due as if the final federal adjustment had been
properly reported, plus any penalty and interest due under this chapter, and less any credit
for related amounts paid or withheld and remitted on behalf of the direct partner under
paragraph (b), clauses (3) and (4).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2020.
new text end

Sec. 4.

Minnesota Statutes 2022, section 289A.50, is amended by adding a subdivision to
read:

new text begin Subd. 3a. new text end

new text begin Nonresident withholding tax refunds. new text end

new text begin When there is an overpayment of
nonresident withholding tax by a partnership or S corporation, a refund allowable under
this section to the payor is limited to the amount of the overpayment that was not deducted
and withheld from the shares of the payor's partners or shareholders.
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.

Minnesota Statutes 2022, 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 December 31, 2018, applies
for taxable years beginning after December 31, 1996, except the sections of federal law in
section 290.0111 shall also apply.

(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.

new text begin (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,
and 28, 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.
new text end

new text begin (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, and 28, 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. 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.
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, 2022.
new text end

Sec. 6.

Minnesota Statutes 2022, section 290.06, subdivision 22, is amended to read:

Subd. 22.

Credit for taxes paid to another state.

(a) A taxpayer who is liable for taxes
based on net income to another state, as provided in paragraphs (b) through (f), upon income
allocated or apportioned to Minnesota, is entitled to a credit for the tax paid to another state
if the tax is actually paid in the taxable year or a subsequent taxable year. A taxpayer who
is a resident of this state pursuant to section 290.01, subdivision 7, paragraph (b), and who
is subject to income tax as a resident in the state of the individual's domicile is not allowed
this credit unless the state of domicile does not allow a similar credit.

(b) For an individual, estate, or trust, the credit is determined by multiplying the tax
payable under this chapter by the ratio derived by dividing the income subject to tax in the
other state that is also subject to tax in Minnesota while a resident of Minnesota by the
taxpayer's federal adjusted gross income, as defined in section 62 of the Internal Revenue
Code, modified by the addition required by section 290.0131, subdivision 2, and the
subtraction allowed by section 290.0132, subdivision 2, to the extent the income is allocated
or assigned to Minnesota under sections 290.081 and 290.17.

(c) If the taxpayer is an athletic team that apportions all of its income under section
290.17, subdivision 5, the credit is determined by multiplying the tax payable under this
chapter by the ratio derived from dividing the total net income subject to tax in the other
state by the taxpayer's Minnesota taxable income.

(d)(1) The credit determined under paragraph (b) or (c) shall not exceed the amount of
tax so paid to the other state on the gross income earned within the other state subject to
tax under this chapter; and

(2) the allowance of the credit does not reduce the taxes paid under this chapter to an
amount less than what would be assessed if the gross income earned within the other state
were excluded from taxable net income.

(e) In the case of the tax assessed on a lump-sum distribution under section 290.032, the
credit allowed under paragraph (a) is the tax assessed by the other state on the lump-sum
distribution that is also subject to tax under section 290.032, and shall not exceed the tax
assessed under section 290.032. To the extent the total lump-sum distribution defined in
section 290.032, subdivision 1, includes lump-sum distributions received in prior years or
is all or in part an annuity contract, the reduction to the tax on the lump-sum distribution
allowed under section 290.032, subdivision 2, includes tax paid to another state that is
properly apportioned to that distribution.

(f) If a Minnesota resident reported an item of income to Minnesota and is assessed tax
in such other state on that same income after the Minnesota statute of limitations has expired,
the taxpayer shall receive a credit for that year under paragraph (a), notwithstanding any
statute of limitations to the contrary. The claim for the credit must be submitted within one
year from the date the taxes were paid to the other state. The taxpayer must submit sufficient
proof to show entitlement to a credit.

(g) For the purposes of this subdivision, a resident shareholder of a corporation treated
as an "S" corporation under section 290.9725, must be considered to have paid a tax imposed
on the shareholder in an amount equal to the shareholder's pro rata share of any net income
tax paid by the S corporation to another state. For the purposes of the preceding sentence,
the term "net income tax" means any tax imposed on or measured by a corporation's net
income.

(h) For the purposes of this subdivision, a resident partner of an entity taxed as a
partnership under the Internal Revenue Code must be considered to have paid a tax imposed
on the partner in an amount equal to the partner's pro rata share of any net income tax paid
by the partnership to another state. For purposes of the preceding sentence, the term "net
income" tax means any tax imposed on or measured by a partnership's net income. For
purposes of this paragraph, "partnership" includes a limited liability company and "partner"
includes a member of a limited liability company.

(i) For the purposes of this subdivision, "another state":

(1) includes:

(i) the District of Columbia; and

(ii) a province or territory of Canada; but

(2) excludes Puerto Rico and the several territories organized by Congress.

(j) The limitations on the credit in paragraphs (b), (c), and (d), are imposed on a state
by state basis.

(k) For a tax imposed by a province or territory of Canada, the tax for purposes of this
subdivision is the excess of the tax over the amount of the foreign tax credit allowed under
section 27 of the Internal Revenue Code. In determining the amount of the foreign tax credit
allowed, the net income taxes imposed by Canada on the income are deducted first. Any
remaining amount of the allowable foreign tax credit reduces the provincial or territorial
tax that qualifies for the credit under this subdivision.

(l)(1) The credit allowed to a qualifying individual under this section for tax paid to a
qualifying state equals the credit calculated under paragraphs (b) and (d), plus the amount
calculated by multiplying:

(i) the difference between the preliminary credit and the credit calculated under paragraphs
(b) and (d), by

(ii) the ratio derived by dividing the income subject to tax in the qualifying state that
consists of compensation for performance of personal or professional services by the total
amount of income subject to tax in the qualifying state.

(2) If the amount of the credit that a qualifying individual is eligible to receive under
clause (1) for tax paid to a qualifying state exceeds the tax due under this chapter before
the application of the credit calculated under clause (1), the commissioner shall refund the
excess to the qualifying individual. An amount sufficient to pay the refunds required by this
subdivision is appropriated to the commissioner from the general fund.

(3) For purposes of this paragraph, "preliminary credit" means the credit that a qualifying
individual is eligible to receive under paragraphs (b) and (d) for tax paid to a qualifying
state without regard to the limitation in paragraph (d), clause (2); "qualifying individual"
means a Minnesota resident under section 290.01, subdivision 7, paragraph (a), who received
compensation during the taxable year for the performance of personal or professional services
within a qualifying state; and "qualifying state" means a state with which an agreement
under section 290.081 is not in effect for the taxable year but was in effect for a taxable
year beginning before January 1, 2010.

new text begin (m) For purposes of this subdivision, a resident sole member of a disregarded limited
liability company must be considered to have paid a tax imposed on the sole member in an
amount equal to the net income tax paid by the disregarded limited liability company to
another state. For the purposes of this paragraph, the term "disregarded limited liability
company" means a limited liability company that is disregarded as an entity separate from
its owner as defined in Code of Federal Regulations, title 26, section 301.7701, and "net
income tax" means any tax imposed on or measured by a disregarded limited liability
company's net income.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 7.

Minnesota Statutes 2022, section 290.0671, subdivision 1, is amended to read:

Subdivision 1.

Credit allowed.

(a) An individual who is a resident of Minnesota is
allowed a credit against the tax imposed by this chapter equal to a percentage of earned
income. To receive a credit, a taxpayer must be eligible for a credit under section 32 of the
Internal Revenue Code, except that:

(1) a taxpayer with no qualifying children who has attained the age of 19, but not attained
age 65 before the close of the taxable year and is otherwise eligible for a credit under section
32 of the Internal Revenue Code may also receive a credit; and

(2) a taxpayer who is otherwise eligible for a credit under section 32 of the Internal
Revenue Code remains eligible for the credit even if the taxpayer's earned income or adjusted
gross income exceeds the income limitation under section 32 of the Internal Revenue Code.

(b) For individuals with no qualifying children, the credit equals 3.9 percent of the first
$7,150 of earned income. The new text begin maximum new text end credit new text begin allowed new text end is reduced by 2.0 percent of earned
income or adjusted gross income, whichever is greater, in excess of the phaseout threshold deleted text begin ,
but deleted text end new text begin . new text end In no case is the credit less than zero.

(c) For individuals with one qualifying child, the credit equals 9.35 percent of the first
$11,950 of earned income. The new text begin maximum new text end credit new text begin allowed new text end is reduced by 6.0 percent of earned
income or adjusted gross income, whichever is greater, in excess of the phaseout threshold deleted text begin ,
but deleted text end new text begin . new text end In no case is the credit less than zero.

(d) For individuals with two qualifying children, the credit equals 11 percent of the first
$19,600 of earned income. The new text begin maximum new text end credit new text begin allowed new text end is reduced by 10.5 percent of
earned income or adjusted gross income, whichever is greater, in excess of the phaseout
threshold deleted text begin , but deleted text end new text begin . new text end In no case is the credit less than zero.

(e) For individuals with three or more qualifying children, the credit equals 12.5 percent
of the first $20,000 of earned income. The new text begin maximum new text end credit new text begin allowed new text end is reduced by 10.5
percent of earned income or adjusted gross income, whichever is greater, in excess of the
phaseout threshold deleted text begin , but deleted text end new text begin . new text end In no case is the credit less than zero.

(f) For a part-year resident, the credit must be allocated based on the percentage calculated
under section 290.06, subdivision 2c, paragraph (e).

(g) For a person who was a resident for the entire tax year and has earned income not
subject to tax under this chapter, deleted text begin including income excluded under section 290.0132,
subdivision 10, deleted text end the credit must be allocated based on the ratio of federal adjusted gross
income reduced by the earned income not subject to tax under this chapter over federal
adjusted gross income. For purposes of this paragraph, the following clauses are not
considered "earned income not subject to tax under this chapter":

(1) the subtractions for military pay under section 290.0132, subdivisions 11 and 12;

(2) the exclusion of combat pay under section 112 of the Internal Revenue Code; and

(3) income derived from an Indian reservation by an enrolled member of the reservation
while living on the reservation.

(h) For the purposes of this section, the phaseout threshold equals:

(1) $14,570 for married taxpayers filing joint returns with no qualifying children;

(2) $8,730 for all other taxpayers with no qualifying children;

(3) $28,610 for married taxpayers filing joint returns with one qualifying child;

(4) $22,770 for all other taxpayers with one qualifying child;

(5) $32,840 for married taxpayers filing joint returns with two qualifying children;

(6) $27,000 for all other taxpayers with two qualifying children;

(7) $33,140 for married taxpayers filing joint returns with three or more qualifying
children; and

(8) $27,300 for all other taxpayers with three or more qualifying children.

(i) The commissioner shall construct tables showing the amount of the credit at various
income levels and make them available to taxpayers. The tables shall follow the schedule
contained in this subdivision, except that the commissioner may graduate the transition
between income brackets.

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

Minnesota Statutes 2022, section 290.0671, subdivision 7, is amended to read:

Subd. 7.

Inflation adjustment.

The commissioner shall annually adjust the earned
income amounts used to calculate the new text begin maximum new text end credit and the phase-out thresholds in
subdivision 1 as provided in section 270C.22. The statutory year is taxable year 2019.

new text begin EFFECTIVE DATE. new text end

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

Sec. 9.

Minnesota Statutes 2022, section 290.92, subdivision 20, is amended to read:

Subd. 20.

Miscellaneous withholding arrangements.

new text begin (a) For purposes of this
subdivision:
new text end

new text begin (1) "periodic payment" means a payment as defined under section 3405(e)(2) of the
Internal Revenue Code;
new text end

new text begin (2) "nonperiodic distribution" means a distribution as defined under section 3405(e)(3)
of the Internal Revenue Code; and
new text end

new text begin (3) "sick pay" means any amount which:
new text end

new text begin (i) is paid to an employee pursuant to a plan to which the employer is a party; and
new text end

new text begin (ii) constitutes remuneration or a payment in lieu of remuneration for any period during
which the employee is temporarily absent from work on account of sickness or personal
injuries.
new text end

deleted text begin (a) deleted text end new text begin (b) new text end For purposes of this section, any new text begin periodic new text end payment or new text begin nonperiodic new text end distribution to
an individual deleted text begin as defined under section 3405(e)(2) or (3) of the Internal Revenue Code deleted text end shall
be treated as if it were a payment of wages by an employer to an employee for a payroll
period new text begin , and it is subject to withholding at a rate of 6.25 percent or any rate specified by the
recipient new text end . Any payment to an individual of sick pay which does not constitute wages,
determined without regard to this subdivision, shall be treated as if it were a payment of
wages by an employer to an employee for a payroll period, if, at the time the payment is
made a request that such sick pay be subject to withholding under this section is in effect.
deleted text begin Sick pay means any amount which:
deleted text end

deleted text begin (1) is paid to an employee pursuant to a plan to which the employer is a party, and
deleted text end

deleted text begin (2) constitutes remuneration or a payment in lieu of remuneration for any period during
which the employee is temporarily absent from work on account of sickness or personal
injuries.
deleted text end

deleted text begin (b) deleted text end new text begin (c) new text end A request for withholding, the amount withheld, and sick pay paid pursuant to
certain collective bargaining agreements shall conform with the provisions of section
3402(o)(3), (4), and (5) of the Internal Revenue Code.

deleted text begin (c) deleted text end new text begin (d) new text end The commissioner is authorized by rules to provide for withholding:

(1) from remuneration for services performed by an employee for the employer which,
without regard to this subdivision, does not constitute wages, and

(2) from any other type of payment with respect to which the commissioner finds that
withholding would be appropriate under the provisions of this section, if the employer and
the employee, or in the case of any other type of payment the person making and the person
receiving the payment, agree to such withholding. Such agreement shall be made in such
form and manner as the commissioner may by rules provide. For purposes of this section
remuneration or other payments with respect to which such agreement is made shall be
treated as if they were wages paid by an employer to an employee to the extent that such
remuneration is paid or other payments are made during the period for which the agreement
is in effect.

deleted text begin (d) deleted text end new text begin (e) new text end An individual receiving a new text begin periodic new text end payment or new text begin nonperiodic new text end distribution under
paragraph deleted text begin (a) deleted text end new text begin (b) new text end may elect to have paragraph deleted text begin (a) deleted text end new text begin (b) new text end not apply to the payment or distribution
deleted text begin as follows. deleted text end new text begin , and an election remains in effect until revoked by such individual.
new text end

deleted text begin (1) For payments defined under section 3405(e)(2) of the Internal Revenue Code, an
election remains in effect until revoked by such individual.
deleted text end

deleted text begin (2) For distributions defined under section 3405(e)(3) of the Internal Revenue Code, the
election is on a distribution-by-distribution basis.
deleted text end

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin (a) This section is effective for periodic
payments and nonperiodic distributions made on or after the day following final enactment.
new text end

new text begin (b) For periodic payments and nonperiodic distributions made on or after the day
following final enactment but before January 1, 2024, the commissioner of revenue must
not assess penalties relating to this amendment against a payor who complies with Minnesota
Statutes 2021 Supplement, section 290.92, subdivision 20.
new text end

Sec. 10.

Minnesota Statutes 2022, section 290.9705, subdivision 1, is amended to read:

Subdivision 1.

Withholding of payments to out-of-state contractors.

(a) In this section,
"person" means a person, corporation, or cooperative, the state of Minnesota and its political
subdivisions, and a city, county, and school district in Minnesota.

(b) A person who in the regular course of business is hiring, contracting, or having a
contract with a nonresident person or deleted text begin foreign corporation deleted text end new text begin a corporation or cooperative
created or organized outside Minnesota, new text end to perform construction work in Minnesota, shall
deduct and withhold eight percent of payments made to the contractor if the value of the
contract exceeds $50,000.

new text begin EFFECTIVE DATE. new text end

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

Sec. 11.

Minnesota Statutes 2022, section 290A.03, subdivision 13, is amended to read:

Subd. 13.

Property taxes payable.

"Property taxes payable" means the property tax
exclusive of special assessments, penalties, and interest payable on a claimant's homestead
after deductions made under sections 273.135, 273.1384, 273.1391, 273.42, subdivision 2,
and any other state paid property tax credits in any calendar year, and after any refund
claimed and allowable under section 290A.04, subdivision 2h, that is first payable in the
year that the property tax is payable. In the case of a claimant who makes ground lease
payments, "property taxes payable" includes the amount of the payments directly attributable
to the property taxes assessed against the parcel on which the house is located. Regardless
of the limitations in section 280A(c)(5) of the Internal Revenue Code, "property taxes
payable" must be apportioned or reduced for the use of a portion of the claimant's homestead
for a business purpose if the claimant deducts any business depreciation expenses for the
use of a portion of the homestead or deducts expenses under section 280A of the Internal
Revenue Code for a business operated in the claimant's homestead. For homesteads which
are manufactured homes as defined in section 273.125, subdivision 8, including manufactured
homes located in a manufactured home community owned by a cooperative organized under
chapter 308A or 308B, and park trailers taxed as manufactured homes under section 168.012,
subdivision 9, "property taxes payable" shall also include 17 percent of the gross rent paid
in the preceding year for the site on which the homestead is located. When a homestead is
owned by two or more persons as joint tenants or tenants in common, such tenants shall
determine between them which tenant may claim the property taxes payable on the
homestead. If they are unable to agree, the matter shall be referred to the commissioner of
revenue whose decision shall be final. Property taxes are considered payable in the year
prescribed by law for payment of the taxes.

In the case of a claim relating to "property taxes payable," the claimant must have owned
and occupied the homestead on January 2 of the year in which the tax is payable and (i) the
property must have been classified as homestead property pursuant to section 273.124, on
or before December deleted text begin 15 deleted text end new text begin 31 new text end of the assessment year to which the "property taxes payable"
relate; or (ii) the claimant must provide documentation from the local assessor that application
for homestead classification has been made on or before December deleted text begin 15 deleted text end new text begin 31 new text end of the year in
which the "property taxes payable" were payable and that the assessor has approved the
application.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for refund claims based on
property taxes payable in 2022 and thereafter.
new text end

ARTICLE 15

DEPARTMENT OF REVENUE: FIRE AND POLICE STATE AIDS

Section 1.

Minnesota Statutes 2022, section 6.495, subdivision 3, is amended to read:

Subd. 3.

deleted text begin Report deleted text end new text begin Reports new text end to commissioner of revenue.

new text begin (a) On or before September 15,
November 1, March 1, and June 1, new text end the state auditor deleted text begin shall deleted text end new text begin must new text end file with the commissioner
of revenue a financial compliance report certifying for each relief association:

(1) the completion of the annual financial report required under section 424A.014 and
the auditing or certification of those financial reports under subdivision 1; and

(2) the receipt of any actuarial valuations required under section 424A.093 or Laws
2013, chapter 111, article 5, sections 31 to 42.

new text begin (b) The commissioner of revenue shall prescribe the content, format, and manner of the
financial compliance reports required by paragraph (a), pursuant to section 270C.30.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2024
and thereafter.
new text end

Sec. 2.

Minnesota Statutes 2022, section 477B.01, is amended by adding a subdivision to
read:

new text begin Subd. 1a. new text end

new text begin Apportionment agreement. new text end

new text begin "Apportionment agreement" means an agreement
between two or more fire departments that provide contracted fire protection service to the
same municipality and establishes the percentage of the population and the percentage of
the estimated market value within the municipality serviced by each fire department.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2024
and thereafter.
new text end

Sec. 3.

Minnesota Statutes 2022, section 477B.01, subdivision 5, is amended to read:

Subd. 5.

Fire department.

new text begin (a) new text end "Fire department" deleted text begin includes deleted text end new text begin means:
new text end

new text begin (1) new text end a municipal fire department deleted text begin and deleted text end new text begin ;
new text end

new text begin (2) new text end an independent nonprofit firefighting corporation deleted text begin . deleted text end new text begin ;
new text end

new text begin (3) a fire department established as or operated by a joint powers entity; or
new text end

new text begin (4) a fire protection special taxing district established under chapter 144F or special law.
new text end

new text begin (b) This subdivision only applies to this chapter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2024
and thereafter.
new text end

Sec. 4.

Minnesota Statutes 2022, section 477B.01, is amended by adding a subdivision to
read:

new text begin Subd. 7a. new text end

new text begin Joint powers entity. new text end

new text begin "Joint powers entity" means a joint powers entity created
under section 471.59.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2024
and thereafter.
new text end

Sec. 5.

Minnesota Statutes 2022, section 477B.01, subdivision 10, is amended to read:

Subd. 10.

Municipality.

(a) "Municipality" means:

(1) a home rule charter or statutory city;

(2) an organized town;

(3) deleted text begin a park district subject to chapter 398 deleted text end new text begin a joint powers entity new text end ;

(4) deleted text begin the University of Minnesota deleted text end new text begin a fire protection special taxing district new text end ; deleted text begin and deleted text end new text begin or
new text end

(5) an American Indian tribal government entity located within a federally recognized
American Indian reservation.

(b) This subdivision only applies to new text begin this new text end chapter deleted text begin 477B deleted text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2024
and thereafter.
new text end

Sec. 6.

Minnesota Statutes 2022, section 477B.01, subdivision 11, is amended to read:

Subd. 11.

Secretary.

new text begin (a) new text end "Secretary" means new text begin :
new text end

new text begin (1) new text end the secretary of an independent nonprofit firefighting corporation that has a subsidiary
incorporated firefighters' relief association or whose firefighters participate in the statewide
volunteer firefighter plan deleted text begin . deleted text end new text begin ; or
new text end

new text begin (2) the secretary of a joint powers entity or fire protection special taxing district or, if
there is no such person, the person primarily responsible for managing the finances of a
joint powers entity or fire protection special taxing district.
new text end

new text begin (b) This subdivision only applies to this chapter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2024
and thereafter.
new text end

Sec. 7.

Minnesota Statutes 2022, section 477B.02, subdivision 2, is amended to read:

Subd. 2.

Establishment of fire department.

(a) An independent nonprofit firefighting
corporation must be created under the nonprofit corporation act of this state operating for
the exclusive purpose of firefighting, or the governing body of a municipality must officially
establish a fire department.

(b) The fire department must have provided firefighting services for at least one calendar
year new text begin , and must have a current fire department identification number issued by the state fire
marshal new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2024
and thereafter.
new text end

Sec. 8.

Minnesota Statutes 2022, section 477B.02, subdivision 3, is amended to read:

Subd. 3.

deleted text begin Personnel and deleted text end Benefits requirements.

deleted text begin (a) A fire department must have a
minimum of ten paid or volunteer firefighters, including a fire chief and assistant fire chief.
deleted text end

deleted text begin (b) The fire department must have regular scheduled meetings and frequent drills that
include instructions in firefighting tactics and in the use, care, and operation of all fire
apparatus and equipment.
deleted text end

deleted text begin (c) deleted text end new text begin (a) new text end The fire department must have a separate subsidiary incorporated firefighters'
relief association that provides retirement benefits or must participate in the statewide
volunteer firefighter plan; or if the municipality solely employs full-time firefighters as
defined in section 299N.03, subdivision 5, retirement coverage must be provided by the
public employees police and fire retirement plan. new text begin For purposes of retirement benefits, a fire
department may be associated with only one volunteer firefighters' relief association or one
account in the voluntary statewide volunteer firefighter retirement plan at one time.
new text end

deleted text begin (d) deleted text end new text begin (b) new text end Notwithstanding paragraph deleted text begin (c) deleted text end new text begin (a) new text end , a municipality without a relief association as
described under section 424A.08, paragraph (a), may still qualify to receive fire state aid if
all other requirements of this section are met.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2024
and thereafter.
new text end

Sec. 9.

Minnesota Statutes 2022, section 477B.02, is amended by adding a subdivision to
read:

new text begin Subd. 4a. new text end

new text begin Public safety answering point requirement. new text end

new text begin The fire department must be
dispatched by a public safety answering point as defined in section 403.02, subdivision 19.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2024
and thereafter.
new text end

Sec. 10.

Minnesota Statutes 2022, section 477B.02, subdivision 5, is amended to read:

Subd. 5.

Fire service contract or agreement; apportionment agreement filing
deleted text begin requirement deleted text end new text begin requirements new text end .

(a) Every municipality or independent nonprofit firefighting
corporation must file deleted text begin a copy of any duly executed and valid fire service contract or agreement deleted text end
with the commissioner new text begin (1) a copy of any duly executed and valid fire service contracts, (2)
written notification of any fire service contract terminations, and (3) written notification of
any dissolution of a fire department, within 60 days of contract execution or termination,
or department dissolution new text end .

(b) If more than one fire department provides service to a municipality, the fire
departments furnishing service must deleted text begin enter into an agreement apportioning among themselves
the percentage of the population and the percentage of the estimated market value of each
shared service fire department service area. The agreement must be in writing and must be
filed deleted text end new text begin file an apportionment agreement new text end with the commissioner.

new text begin (c) When a municipality is a joint powers entity, it must file its joint powers agreement
with the commissioner. If the joint powers agreement does not include sufficient information
defining the fire department service area of the joint powers entity for the purposes of
calculating fire state aid, the secretary must file a written statement with the commissioner
defining the fire department service area.
new text end

new text begin (d) When a municipality is a fire protection special taxing district, it must file its
resolution establishing the fire protection special taxing district, and any agreements required
for the establishment of the fire protection special taxing district, with the commissioner.
If the resolution or agreement does not include sufficient information defining the fire
department service area of the fire protection special taxing district, the secretary must file
a written statement with the commissioner defining the fire department service area.
new text end

new text begin (e) The commissioner shall prescribe the content, format, and manner of the notifications,
apportionment agreements, and written statements under paragraphs (a) to (d), pursuant to
section 270C.30, except that copies of fire service contracts, joint powers agreements, and
resolutions establishing fire protection special taxing districts shall be filed in their existing
form.
new text end

new text begin (f) A document filed with the commissioner under this subdivision must be refiled any
time it is updated within 60 days of the update. An apportionment agreement must be refiled
only when a change in the averaged sum of the percentage of population and percentage of
estimated market value serviced by a fire department subject to the apportionment agreement
is at least one percent. The percentage amount must be rounded to the nearest whole
percentage.
new text end

new text begin (g) Upon the request of the commissioner, the county auditor must provide information
that the commissioner requires to accurately apportion the estimated market value of a fire
department service area for a fire department providing service to an unorganized territory
located in the county.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2024
and thereafter.
new text end

Sec. 11.

Minnesota Statutes 2022, section 477B.02, subdivision 8, is amended to read:

Subd. 8.

PERA certification to commissioner.

On or before February 1 each year, deleted text begin if
retirement coverage for a fire department is provided by the statewide volunteer firefighter
plan, deleted text end the executive director of the Public Employees Retirement Association must certify
deleted text begin the existence of retirement coverage. deleted text end new text begin to the commissioner the fire departments that transferred
retirement coverage to, or terminated participation in, the voluntary statewide volunteer
firefighter retirement plan since the previous certification under this paragraph. This
certification must include the number of active volunteer firefighters under section 477B.03,
subdivision 5, paragraph (e).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2024
and thereafter.
new text end

Sec. 12.

Minnesota Statutes 2022, section 477B.02, subdivision 9, is amended to read:

Subd. 9.

Fire department certification to commissioner.

On or before March 15 of
each year, the municipal clerk or the secretary deleted text begin , and the fire chief, deleted text end must deleted text begin jointly deleted text end certify to the
commissioner deleted text begin that the fire department exists and meets the qualification requirements of
this section deleted text end new text begin the fire department service area as of December 31 of the previous year, and
that the fire department meets the qualification requirements of this section. The municipal
clerk or the secretary must provide the commissioner with documentation that the
commissioner deems necessary for determining eligibility for fire state aid or for calculating
and apportioning fire state aid under section 477B.03 new text end . The certification must be on a form
prescribed by the commissioner and must include all other information that the commissioner
requires. new text begin The municipal clerk or the secretary must send a copy of the certification filed
under this subdivision to the fire chief within five business days of the date the certification
was filed with the commissioner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2024
and thereafter.
new text end

Sec. 13.

Minnesota Statutes 2022, section 477B.02, subdivision 10, is amended to read:

Subd. 10.

Penalty for failure to file new text begin or correct new text end certification.

(a) If the certification
under subdivision 9 is not filed with the commissioner on or before March deleted text begin 15 deleted text end new text begin 1 new text end , the
commissioner must notify the municipal clerk or the secretary that a penalty deleted text begin equal to a
portion or all of the current year aid will apply if the certification is not received within ten
days of the postmark date of the notification deleted text end new text begin will be deducted from fire state aid certified
for the current year if the certification is not filed on or before March 15 new text end .

new text begin (b) If the commissioner rejects the certification by the municipal clerk or secretary under
subdivision 9 for inaccurate or incomplete information, the municipal clerk or the secretary
must file a corrective certification after taking corrective action as identified by the
commissioner in the notice of rejection. The corrective certification must be filed within
30 days of the date on the notice of rejection or by March 15, whichever date is later.
new text end

deleted text begin (b) deleted text end new text begin (c) A penalty applies to (1) a certification under subdivision 9 filed after March 15,
and (2) a corrective certification under paragraph (b) filed after March 15 that is also filed
more than 30 days after the date on the notice of rejection. new text end The penalty deleted text begin for failure to file
the certification under subdivision 9 deleted text end is equal to the amount of fire state aid determined for
the municipality or the independent nonprofit firefighting corporation for the current year,
multiplied by deleted text begin five deleted text end new text begin ten new text end percent for each week or fraction of a week that the certification new text begin or
corrective certification new text end is deleted text begin late deleted text end new text begin filed after March 15 or more than 30 days after the date on
the notice of rejection new text end . deleted text begin The penalty must be computed beginning ten days after the postmark
date of the commissioner's notification. deleted text end Aid amounts forfeited as a result of the penalty
revert to the state general fund. Failure to receive the certification form is not a defense for
a failure to file.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2024
and thereafter.
new text end

Sec. 14.

Minnesota Statutes 2022, section 477B.03, subdivision 2, is amended to read:

Subd. 2.

Apportionment of fire state aid.

(a) The amount of fire state aid available for
apportionment, before the addition of the minimum fire state aid allocation amount under
subdivision 5, is equal to 107 percent of the amount of premium taxes paid to the state upon
the fire, lightning, sprinkler leakage, and extended coverage premiums reported to the
commissioner by companies or insurance companies on the Minnesota Fire Premium Report new text begin ,
except that credits claimed under section 297I.20, subdivisions 3, 4, and 5, do not affect the
calculation of the amount of fire state aid available for apportionment new text end . This amount must
be reduced by the amount required to pay the state auditor's costs and expenses of the audits
or exams of the firefighters' relief associations.

(b) The total amount available for apportionment must not be less than two percent of
the premiums less return premiums reported to the commissioner by companies or insurance
companies on the Minnesota Fire Premium Report after subtracting the following amounts:

(1) the amount required to pay the state auditor's costs and expenses of the audits or
exams of the firefighters' relief associations; and

(2) one percent of the premiums reported by township mutual insurance companies and
mutual property and casualty companies with total assets of $5,000,000 or less.

(c) The commissioner must apportion the fire state aid to each municipality or independent
nonprofit firefighting corporation qualified under section 477B.02 relative to the premiums
reported on the Minnesota Fire Premium Reports filed under this chapter.

(d) The commissioner must calculate the percentage of increase or decrease reflected in
the apportionment over or under the previous year's available state aid using the same
premiums as a basis for comparison.

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 2022, section 477B.03, subdivision 3, is amended to read:

Subd. 3.

Population and estimated market value.

(a) deleted text begin Official statewide federal census
figures deleted text end new text begin The most recent population estimates made by the state demographer pursuant to
section 4A.02, paragraph (d), new text end must be used in calculations requiring the use of population
figures under this chapter. deleted text begin Increases or decreases in population disclosed by reason of any
special census must not be taken into consideration.
deleted text end

(b) The deleted text begin latest available deleted text end estimated market value property figures new text begin for the assessment year
immediately preceding the year the aid is distributed new text end must be used in calculations requiring
the use of estimated market value property figures under this chapter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2024
and thereafter.
new text end

Sec. 16.

Minnesota Statutes 2022, section 477B.03, subdivision 4, is amended to read:

Subd. 4.

Initial fire state aid allocation amount.

(a) The initial fire state aid allocation
amount is the amount available for apportionment as fire state aid under subdivision 2,
without the inclusion of any additional funding amount to support a minimum fire state aid
amount under section 423A.02, subdivision 3. The initial fire state aid allocation amount
is allocated one-half in proportion to the population for each fire department service area
and one-half in proportion to the estimated market value of each fire department service
area, including (1) the estimated market value of tax-exempt property, and (2) the estimated
market value of natural resources lands receiving in lieu payments under sections 477A.11
to 477A.14 and 477A.17. The estimated market value of minerals is excluded.

(b) In the case of a municipality or independent nonprofit firefighting corporation
furnishing fire protection to other municipalities as evidenced by valid fire service contracts new text begin ,
joint powers agreements, resolutions, and other supporting documents new text end filed with the
commissioner under section 477B.02, subdivision 5, the distribution must be adjusted
proportionately to take into consideration the crossover fire protection service. Necessary
adjustments must be made to subsequent apportionments.

(c) In the case of municipalities or independent nonprofit firefighting corporations
qualifying for aid, the commissioner must calculate the state aid for the municipality or
independent nonprofit firefighting corporation on the basis of the population and the estimated
market value of the area furnished fire protection service by the fire department as evidenced
by new text begin valid new text end fire service deleted text begin agreements deleted text end new text begin contracts, joint powers agreements, resolutions, and other
supporting documents new text end filed with the commissioner under section 477B.02, subdivision 5.

(d) In the case of more than one fire department furnishing contracted fire service to a
municipality, the population and estimated market value in the apportionment agreement
filed with the commissioner under section 477B.02, subdivision 5, must be used in calculating
the state aid.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2024
and thereafter.
new text end

Sec. 17.

Minnesota Statutes 2022, section 477B.03, subdivision 5, is amended to read:

Subd. 5.

Minimum fire state aid allocation amount.

(a) The minimum fire state aid
allocation amount is the amount derived from any additional funding amount to support a
minimum fire state aid amount under section 423A.02, subdivision 3. The minimum fire
state aid allocation amount is allocated to municipalities or independent nonprofit firefighting
corporations with volunteer firefighters' relief associations or covered by the statewide
volunteer firefighter plan. The amount is based on the number of active volunteer firefighters
who are (1) members of the relief association as reported to the Office of the State Auditor
in a specific annual financial reporting year as specified in paragraphs (b) to (d), or (2)
covered by the statewide volunteer firefighter plan as specified in paragraph (e).

(b) For relief associations established in calendar year 1993 or a prior year, the number
of active volunteer firefighters equals the number of active volunteer firefighters who were
members of the relief association as reported in the annual financial reporting for calendar
year 1993, but not to exceed 30 active volunteer firefighters.

(c) For relief associations established in calendar year 1994 through calendar year 1999,
the number of active volunteer firefighters equals the number of active volunteer firefighters
who were members of the relief association as reported in the annual financial reporting for
calendar year 1998 to the Office of the State Auditor, but not to exceed 30 active volunteer
firefighters.

(d) For relief associations established after calendar year 1999, the number of active
volunteer firefighters equals the number of active volunteer firefighters who are members
of the relief association as reported in the first annual financial reporting submitted to the
Office of the State Auditor, but not to exceed 20 active volunteer firefighters.

(e) deleted text begin If a relief association is terminated as a result of deleted text end new text begin For a municipality or independent
nonprofit firefighting corporation that is new text end providing retirement coverage for volunteer
firefighters by the statewide volunteer firefighter plan under chapter 353G, the number of
active volunteer firefighters equals the number of active volunteer firefighters of the
municipality or independent nonprofit firefighting corporation covered by the statewide
plan as certified by the executive director of the Public Employees Retirement Association
to the commissioner and the state auditor new text begin within 30 days of the date the municipality or
independent nonprofit firefighting corporation begins coverage in the plan new text end , but not to exceed
30 active firefighters.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2024
and thereafter.
new text end

Sec. 18.

Minnesota Statutes 2022, section 477B.03, subdivision 7, is amended to read:

Subd. 7.

Appeal.

A municipality, an independent nonprofit firefighting corporation, a
fire relief association, or the statewide volunteer firefighter plan may object to the amount
of fire state aid apportioned to it by filing a written request with the commissioner to review
and adjust the apportionment of funds within the state. new text begin The objection of a municipality, an
independent nonprofit firefighting corporation, a fire relief association, or the voluntary
statewide volunteer firefighter retirement plan must be filed with the commissioner within
60 days of the date the amount of apportioned fire state aid is paid. new text end The decision of the
commissioner is subject to appeal, review, and adjustment by the district court in the county
in which the applicable municipality or independent nonprofit firefighting corporation is
located or by the Ramsey County District Court with respect to the statewide volunteer
firefighter plan.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2024
and thereafter.
new text end

Sec. 19.

Minnesota Statutes 2022, section 477B.04, subdivision 1, is amended to read:

Subdivision 1.

Payments.

(a) The commissioner must make payments to the Public
Employees Retirement Association for deposit in the statewide volunteer firefighter fund
on behalf of a municipality or independent nonprofit firefighting corporation that is a member
of the statewide volunteer firefighter plan under chapter 353G deleted text begin , or directly to a municipality
or county designated by an independent nonprofit firefighting corporation deleted text end . new text begin The commissioner
must directly pay all other municipalities qualifying for fire state aid, except as provided in
paragraph (d). new text end The payment is equal to the amount of fire state aid apportioned to the
applicable fire state aid recipient under section 477B.03.

(b) Fire state aid is payable on October 1 annually. The amount of state aid due and not
paid by October 1 accrues interest payable to the recipient at the rate of one percent for each
month or part of a month that the amount remains unpaid after October 1.

(c) new text begin If the commissioner of revenue does not receive a financial compliance report
described in section 6.495, subdivision 3, for a relief association, the amount of fire state
aid apportioned to a municipality or independent nonprofit firefighting corporation under
section 477B.03 for that relief association must be withheld from payment to the Public
Employees Retirement Association or the municipality. The commissioner of revenue must
issue a withheld payment within ten business days of receipt of a financial compliance report
under section 6.495, subdivision 3. new text end The interest under paragraph (b) does not apply deleted text begin when deleted text end new text begin
to a new text end payment deleted text begin has not been made by October 1 due to noncompliance with sections 424A.014
and 477B.02, subdivision 7 deleted text end new text begin withheld under this paragraph new text end .

new text begin (d) The commissioner must make payments directly to the largest municipality in
population located within any area included in a joint powers entity that does not have a
designated agency under section 471.59, subdivision 3, or within the fire department service
area of an eligible independent nonprofit firefighting corporation. If there is no city or town
within the fire department service area of an eligible independent nonprofit firefighting
corporation, fire state aid must be paid to the county where the independent nonprofit
firefighting corporation is located.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2024
and thereafter.
new text end

Sec. 20.

Minnesota Statutes 2022, section 477B.04, is amended by adding a subdivision
to read:

new text begin Subd. 4. new text end

new text begin Aid amount corrections. new text end

new text begin (a) An adjustment needed to correct a fire state aid
overpayment or underpayment due to a clerical error must be made to subsequent fire state
aid payments as provided in paragraphs (b) and (c). The authority to correct an aid payment
under this subdivision is limited to three years after the payment was issued.
new text end

new text begin (b) If an overpayment equals more than ten percent of the most recently paid aid amount,
the commissioner must reduce the aid a municipality or independent nonprofit firefighting
corporation is to receive by the amount overpaid over a period of no more than three years.
If an overpayment equals or is less than ten percent of the most recently paid aid amount,
the commissioner must reduce the next aid payment occurring in 30 days or more by the
amount overpaid.
new text end

new text begin (c) In the event of an underpayment, the commissioner must distribute the amount of
underpaid funds to the municipality or independent nonprofit firefighting corporation over
a period of no more than three years. An additional distribution to a municipality or
independent nonprofit firefighting corporation must be paid from the general fund and must
not diminish the payments made to other municipalities or independent nonprofit firefighting
corporations under this chapter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2024
and thereafter.
new text end

Sec. 21.

Minnesota Statutes 2022, section 477C.02, subdivision 4, is amended to read:

Subd. 4.

Penalty for failure to file new text begin or correct new text end certification.

(a) If a certification under
subdivision 1 or 2 is not filed with the commissioner on or before March deleted text begin 15 deleted text end new text begin 1 new text end , the
commissioner must notify the municipal clerk, municipal clerk-treasurer, or county auditor
that a penalty deleted text begin equal to a portion or all of its current year aid will apply if the certification
is not received within ten days deleted text end new text begin will be deducted from police state aid certified for the current
year if the certification is not filed on or before March 15 new text end .

new text begin (b) If the commissioner rejects the certification under subdivision 1 or 2 for inaccurate
or incomplete information, the municipal clerk, municipal clerk-treasurer, or county auditor
must file a corrective certification after taking corrective action as identified by the
commissioner in the notice of rejection. The corrective certification must be filed within
30 days of the date on the notice of rejection, or by March 15, whichever date is later.
new text end

deleted text begin (b) deleted text end new text begin (c) A penalty applies to (1) a certification under subdivisions 1 and 2 filed after
March 15, and (2) a corrective certification under paragraph (b) filed after March 15 that
is also filed more than 30 days after the date on the notice of rejection. new text end The penalty deleted text begin for
failure to file the certification under subdivision 1 or 2 deleted text end is equal to the amount of police state
aid determined for the municipality for the current year, multiplied by deleted text begin five deleted text end new text begin ten new text end percent for
each week or fraction of a week that the certification new text begin or corrective certification new text end is deleted text begin late deleted text end new text begin filed
after March 15 or more than 30 days after the date on the notice of rejection new text end . deleted text begin The penalty
must be computed beginning ten days after the postmark date of the commissioner's
notification as required under this subdivision. deleted text end All aid amounts forfeited as a result of the
penalty revert to the state general fund. Failure to receive the certification form may not be
used as a defense for a failure to file.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2024
and thereafter.
new text end

Sec. 22.

Minnesota Statutes 2022, section 477C.03, subdivision 2, is amended to read:

Subd. 2.

Apportionment of police state aid.

(a) The total amount available for
apportionment as police state aid is equal to 104 percent of the amount of premium taxes
paid to the state on the premiums reported to the commissioner by companies or insurance
companies on the Minnesota Aid to Police Premium Report new text begin , except that credits claimed
under section 297I.20, subdivisions 3, 4, and 5, do not affect the calculation of the total
amount of police state aid available for apportionment new text end . The total amount for apportionment
for the police state aid program must not be less than two percent of the amount of premiums
reported to the commissioner by companies or insurance companies on the Minnesota Aid
to Police Premium Report.

(b) The commissioner must calculate the percentage of increase or decrease reflected in
the apportionment over or under the previous year's available state aid using the same
premiums as a basis for comparison.

(c) In addition to the amount for apportionment of police state aid under paragraph (a),
each year $100,000 must be apportioned for police state aid. An amount sufficient to pay
this increase is annually appropriated from the general fund.

(d) The commissioner must apportion police state aid to all municipalities in proportion
to the relationship that the total number of peace officers employed by that municipality for
the prior calendar year and the proportional or fractional number who were employed less
than a calendar year as credited under section 477C.02, subdivision 1, paragraph (c), bears
to the total number of peace officers employed by all municipalities subject to any reduction
under subdivision 3.

deleted text begin (e) Any necessary additional adjustments must be made to subsequent police state aid
apportionments.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin (a) The amendment to paragraph (a) is effective the day following
final enactment.
new text end

new text begin (b) The amendment striking paragraph (e) is effective for aids payable in calendar year
2024 and thereafter.
new text end

Sec. 23.

Minnesota Statutes 2022, section 477C.03, subdivision 5, is amended to read:

Subd. 5.

Appeal.

A municipality may object to the amount of police state aid apportioned
to it by filing a written request with the commissioner to review and adjust the apportionment
of funds to the municipality. new text begin The objection of a municipality must be filed with the
commissioner within 60 days of the date the amount of apportioned police state aid is paid. new text end
The decision of the commissioner is subject to appeal, review, and adjustment by the district
court in the county in which the applicable municipality is located or by the Ramsey County
District Court with respect to the Departments of Natural Resources or Public Safety.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2024
and thereafter.
new text end

Sec. 24.

Minnesota Statutes 2022, section 477C.04, is amended by adding a subdivision
to read:

new text begin Subd. 4. new text end

new text begin Aid amount corrections. new text end

new text begin (a) An adjustment needed to correct a police state
aid overpayment or underpayment due to a clerical error must be made to subsequent police
state aid payments as provided in paragraphs (b) and (c). The authority to correct an aid
payment under this subdivision is limited to three years after the payment was issued.
new text end

new text begin (b) If an overpayment equals more than ten percent of the most recently paid aid amount,
the commissioner must reduce the aid a municipality is to receive by the amount overpaid
over a period of no more than three years. If an overpayment equals or is less than ten
percent of the most recently paid aid amount, the commissioner must reduce the next aid
payment occurring in 30 days or more by the amount overpaid.
new text end

new text begin (c) In the event of an underpayment, the commissioner must distribute the amount of
underpaid funds to the municipality over a period of no more than three years. An additional
distribution to a municipality must be paid from the general fund and must not diminish the
payments made to other municipalities under this chapter.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year 2024
and thereafter.
new text end

Sec. 25. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2022, sections 477B.02, subdivision 4; and 477B.03, subdivision 6, 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 aids payable in calendar year 2024
and thereafter.
new text end

ARTICLE 16

DEPARTMENT OF REVENUE: DATA PRACTICES

Section 1.

Minnesota Statutes 2022, section 13.46, subdivision 2, is amended to read:

Subd. 2.

General.

(a) Data on individuals collected, maintained, used, or disseminated
by the welfare system are private data on individuals, and shall not be disclosed except:

(1) according to section 13.05;

(2) according to court order;

(3) according to a statute specifically authorizing access to the private data;

(4) to an agent of the welfare system and an investigator acting on behalf of a county,
the state, or the federal government, including a law enforcement person or attorney in the
investigation or prosecution of a criminal, civil, or administrative proceeding relating to the
administration of a program;

(5) to personnel of the welfare system who require the data to verify an individual's
identity; determine eligibility, amount of assistance, and the need to provide services to an
individual or family across programs; coordinate services for an individual or family;
evaluate the effectiveness of programs; assess parental contribution amounts; and investigate
suspected fraud;

(6) to administer federal funds or programs;

(7) between personnel of the welfare system working in the same program;

(8) to the Department of Revenue to assess parental contribution amounts for purposes
of section 252.27, subdivision 2a, administer and evaluate tax refund or tax credit programs
and to identify individuals who may benefit from these programs new text begin , and prepare the databases
for reports required under section 270C.13 and Laws 2008, chapter 366, article 17, section
6 new text end . The following information may be disclosed under this paragraph: an individual's and
their dependent's names, dates of birth, Social Security numbers, income, addresses, and
other data as required, upon request by the Department of Revenue. Disclosures by the
commissioner of revenue to the commissioner of human services for the purposes described
in this clause are governed by section 270B.14, subdivision 1. Tax refund or tax credit
programs include, but are not limited to, the dependent care credit under section 290.067,
the Minnesota working family credit under section 290.0671, the property tax refund and
rental credit under section 290A.04, and the Minnesota education credit under section
290.0674;

(9) between the Department of Human Services, the Department of Employment and
Economic Development, and when applicable, the Department of Education, for the following
purposes:

(i) to monitor the eligibility of the data subject for unemployment benefits, for any
employment or training program administered, supervised, or certified by that agency;

(ii) to administer any rehabilitation program or child care assistance program, whether
alone or in conjunction with the welfare system;

(iii) to monitor and evaluate the Minnesota family investment program or the child care
assistance program by exchanging data on recipients and former recipients of Supplemental
Nutrition Assistance Program (SNAP) benefits, cash assistance under chapter 256, 256D,
256J, or 256K, child care assistance under chapter 119B, medical programs under chapter
256B or 256L, or a medical program formerly codified under chapter 256D; and

(iv) to analyze public assistance employment services and program utilization, cost,
effectiveness, and outcomes as implemented under the authority established in Title II,
Sections 201-204 of the Ticket to Work and Work Incentives Improvement Act of 1999.
Health records governed by sections 144.291 to 144.298 and "protected health information"
as defined in Code of Federal Regulations, title 45, section 160.103, and governed by Code
of Federal Regulations, title 45, parts 160-164, including health care claims utilization
information, must not be exchanged under this clause;

(10) to appropriate parties in connection with an emergency if knowledge of the
information is necessary to protect the health or safety of the individual or other individuals
or persons;

(11) data maintained by residential programs as defined in section 245A.02 may be
disclosed to the protection and advocacy system established in this state according to Part
C of Public Law 98-527 to protect the legal and human rights of persons with developmental
disabilities or other related conditions who live in residential facilities for these persons if
the protection and advocacy system receives a complaint by or on behalf of that person and
the person does not have a legal guardian or the state or a designee of the state is the legal
guardian of the person;

(12) to the county medical examiner or the county coroner for identifying or locating
relatives or friends of a deceased person;

(13) data on a child support obligor who makes payments to the public agency may be
disclosed to the Minnesota Office of Higher Education to the extent necessary to determine
eligibility under section 136A.121, subdivision 2, clause (5);

(14) participant Social Security numbers and names collected by the telephone assistance
program may be disclosed to the Department of Revenue to conduct an electronic data
match with the property tax refund database to determine eligibility under section 237.70,
subdivision 4a;

(15) the current address of a Minnesota family investment program participant may be
disclosed to law enforcement officers who provide the name of the participant and notify
the agency that:

(i) the participant:

(A) is a fugitive felon fleeing to avoid prosecution, or custody or confinement after
conviction, for a crime or attempt to commit a crime that is a felony under the laws of the
jurisdiction from which the individual is fleeing; or

(B) is violating a condition of probation or parole imposed under state or federal law;

(ii) the location or apprehension of the felon is within the law enforcement officer's
official duties; and

(iii) the request is made in writing and in the proper exercise of those duties;

(16) the current address of a recipient of general assistance may be disclosed to probation
officers and corrections agents who are supervising the recipient and to law enforcement
officers who are investigating the recipient in connection with a felony level offense;

(17) information obtained from a SNAP applicant or recipient households may be
disclosed to local, state, or federal law enforcement officials, upon their written request, for
the purpose of investigating an alleged violation of the Food and Nutrition Act, according
to Code of Federal Regulations, title 7, section 272.1(c);

(18) the address, Social Security number, and, if available, photograph of any member
of a household receiving SNAP benefits shall be made available, on request, to a local, state,
or federal law enforcement officer if the officer furnishes the agency with the name of the
member and notifies the agency that:

(i) the member:

(A) is fleeing to avoid prosecution, or custody or confinement after conviction, for a
crime or attempt to commit a crime that is a felony in the jurisdiction the member is fleeing;

(B) is violating a condition of probation or parole imposed under state or federal law;
or

(C) has information that is necessary for the officer to conduct an official duty related
to conduct described in subitem (A) or (B);

(ii) locating or apprehending the member is within the officer's official duties; and

(iii) the request is made in writing and in the proper exercise of the officer's official duty;

(19) the current address of a recipient of Minnesota family investment program, general
assistance, or SNAP benefits may be disclosed to law enforcement officers who, in writing,
provide the name of the recipient and notify the agency that the recipient is a person required
to register under section 243.166, but is not residing at the address at which the recipient is
registered under section 243.166;

(20) certain information regarding child support obligors who are in arrears may be
made public according to section 518A.74;

(21) data on child support payments made by a child support obligor and data on the
distribution of those payments excluding identifying information on obligees may be
disclosed to all obligees to whom the obligor owes support, and data on the enforcement
actions undertaken by the public authority, the status of those actions, and data on the income
of the obligor or obligee may be disclosed to the other party;

(22) data in the work reporting system may be disclosed under section 256.998,
subdivision 7;

(23) to the Department of Education for the purpose of matching Department of Education
student data with public assistance data to determine students eligible for free and
reduced-price meals, meal supplements, and free milk according to United States Code,
title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773; to allocate federal and state
funds that are distributed based on income of the student's family; and to verify receipt of
energy assistance for the telephone assistance plan;

(24) the current address and telephone number of program recipients and emergency
contacts may be released to the commissioner of health or a community health board as
defined in section 145A.02, subdivision 5, when the commissioner or community health
board has reason to believe that a program recipient is a disease case, carrier, suspect case,
or at risk of illness, and the data are necessary to locate the person;

(25) to other state agencies, statewide systems, and political subdivisions of this state,
including the attorney general, and agencies of other states, interstate information networks,
federal agencies, and other entities as required by federal regulation or law for the
administration of the child support enforcement program;

(26) to personnel of public assistance programs as defined in section 256.741, for access
to the child support system database for the purpose of administration, including monitoring
and evaluation of those public assistance programs;

(27) to monitor and evaluate the Minnesota family investment program by exchanging
data between the Departments of Human Services and Education, on recipients and former
recipients of SNAP benefits, cash assistance under chapter 256, 256D, 256J, or 256K, child
care assistance under chapter 119B, medical programs under chapter 256B or 256L, or a
medical program formerly codified under chapter 256D;

(28) to evaluate child support program performance and to identify and prevent fraud
in the child support program by exchanging data between the Department of Human Services,
Department of Revenue under section 270B.14, subdivision 1, paragraphs (a) and (b),
without regard to the limitation of use in paragraph (c), Department of Health, Department
of Employment and Economic Development, and other state agencies as is reasonably
necessary to perform these functions;

(29) counties and the Department of Human Services operating child care assistance
programs under chapter 119B may disseminate data on program participants, applicants,
and providers to the commissioner of education;

(30) child support data on the child, the parents, and relatives of the child may be
disclosed to agencies administering programs under titles IV-B and IV-E of the Social
Security Act, as authorized by federal law;

(31) to a health care provider governed by sections 144.291 to 144.298, to the extent
necessary to coordinate services;

(32) to the chief administrative officer of a school to coordinate services for a student
and family; data that may be disclosed under this clause are limited to name, date of birth,
gender, and address;

(33) to county correctional agencies to the extent necessary to coordinate services and
diversion programs; data that may be disclosed under this clause are limited to name, client
demographics, program, case status, and county worker information; or

(34) between the Department of Human Services and the Metropolitan Council for the
following purposes:

(i) to coordinate special transportation service provided under section 473.386 with
services for people with disabilities and elderly individuals funded by or through the
Department of Human Services; and

(ii) to provide for reimbursement of special transportation service provided under section
473.386.

The data that may be shared under this clause are limited to the individual's first, last, and
middle names; date of birth; residential address; and program eligibility status with expiration
date for the purposes of informing the other party of program eligibility.

(b) Information on persons who have been treated for drug or alcohol abuse may only
be disclosed according to the requirements of Code of Federal Regulations, title 42, sections
2.1 to 2.67.

(c) Data provided to law enforcement agencies under paragraph (a), clause (15), (16),
(17), or (18), or paragraph (b), are investigative data and are confidential or protected
nonpublic while the investigation is active. The data are private after the investigation
becomes inactive under section 13.82, subdivision 7, clause (a) or (b).

(d) Mental health data shall be treated as provided in subdivisions 7, 8, and 9, but are
not subject to the access provisions of subdivision 10, paragraph (b).

For the purposes of this subdivision, a request will be deemed to be made in writing if
made through a computer interface 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. 2.

Minnesota Statutes 2022, section 270C.13, subdivision 1, is amended to read:

Subdivision 1.

Biennial report.

(a) The commissioner shall report to the legislature on
the overall incidence of the income tax, sales and excise taxes, and property tax.

(b) The commissioner must submit the report:

(1) by March 1, 2021; and

(2) by March 1, 2024, and each even-numbered year thereafter.

(c) The report shall present information on the distribution of the tax burden as follows:
(1) for the overall income distribution, using a systemwide incidence measure such as the
Suits index or other appropriate measures of equality and inequality; (2) by income classes,
including at a minimum deciles of the income distribution; and (3) by other appropriate
taxpayer characteristics.

new text begin (d) The commissioner may request information from any state officer or agency to assist
in carrying out this section. The state officer or agency shall provide the data requested to
the extent permitted by law.
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 2022, section 270C.446, subdivision 2, is amended to read:

Subd. 2.

Required and excluded tax preparers.

(a) Subject to the limitations of
paragraph (b), the commissioner must publish lists of tax preparers as defined in section
270C.445, subdivision 2, paragraph (h), who have been:

(1) convicted under section 289A.63;

(2) assessed penalties in excess of $1,000 under section 289A.60, subdivision 13,
paragraph (a);

(3) convicted for identity theft under section 609.527, or a similar statute, for a return
filed with the commissioner, the Internal Revenue Service, or another state;

(4) assessed a penalty under section 270C.445, subdivision 6, paragraph (a), in excess
of $1,000;

(5) issued a cease and desist order under section 270C.445, subdivision 6, paragraph
(b), that has become a final order; deleted text begin or
deleted text end

(6) assessed a penalty under section 270C.445, subdivision 6, paragraph (l), for violating
a cease and desist order deleted text begin . deleted text end new text begin ; or
new text end

new text begin (7) assessed a penalty under section 289A.60, subdivision 28, paragraph (c), or (d), in
excess of $1,000.
new text end

(b) For the purposes of this section, tax preparers are not subject to publication if:

(1) an administrative or court action contesting or appealing a penalty described in
paragraph (a), clause (2), (4), or (6), has been filed or served and is unresolved at the time
when notice would be given under subdivision 3;

(2) an appeal period to contest a penalty described in paragraph (a), clause (2), (4), or
(6), has not expired;

(3) the commissioner has been notified that the tax preparer is deceased;

(4) an appeal period to contest a cease and desist order issued under section 270C.445,
subdivision 6, paragraph (b), has not expired;

(5) an administrative or court action contesting or appealing a cease and desist order
issued under section 270C.445, subdivision 6, paragraph (b), has been filed or served and
is unresolved at the time when notice would be given under subdivision 3;

(6) a direct appeal of a conviction described in paragraph (a), clause (1) or (3), has been
filed or served and is unresolved at the time when the notice would be given under
subdivision 3; or

(7) an appeal period to contest a conviction described in paragraph (a), clause (1) or (3),
has not expired.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for returns filed after December 31, 2023.
new text end

Sec. 4.

Minnesota Statutes 2022, section 290A.19, is amended to read:

290A.19 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 three years. The duplicate or other record must be made available to the
commissioner upon request.

(b) The commissioner may require the owner or managing agent, through a simple
process, to furnish to the commissioner on or before March 1 a copy of each certificate of
rent paid furnished to a renter for rent paid in the prior year. The commissioner shall prescribe
the content, format, and manner of the form pursuant to section 270C.30. new text begin 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.
new text end Prior to implementation, the commissioner, after consulting with representatives of owners
or managing agents, shall develop an implementation and administration plan for the
requirements of this paragraph that attempts to minimize financial burdens, administration
and compliance costs, and takes into consideration existing systems of owners and managing
agents.

(c) For the purposes of this section, "owner" includes 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 EFFECTIVE DATE. new text end

new text begin This section is effective for refund claims based on rent paid in
2023 and thereafter.
new text end

Sec. 5.

Minnesota Statutes 2022, section 299C.76, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For the purposes of this section, the following definitions
apply.

(b) "Federal tax information" means federal tax returns and return information or
information derived or created from federal tax returns, in possession of or control by the
requesting agency, that is covered by the safeguarding provisions of section 6103(p)(4) of
the Internal Revenue Code.

(c) "IRS Publication 1075" means Internal Revenue Service Publication 1075 that
provides guidance and requirements for the protection and confidentiality of federal tax
information as required in section 6103(p)(4) of the Internal Revenue Code.

(d) "National criminal history record information" means the Federal Bureau of
Investigation identification records as defined in Code of Federal Regulations, title 28,
section 20.3(d).

(e) "Requesting agency" means the Department of Revenue, Department of Employment
and Economic Development, Department of Human Services, board of directors of MNsure,
Department of Information Technology Services, new text begin attorney general, new text end and counties.

new text begin EFFECTIVE DATE. new text end

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

Sec. 6.

Minnesota Statutes 2022, section 299C.76, subdivision 2, is amended to read:

Subd. 2.

National criminal history record information check.

As required by IRS
Publication 1075, a requesting agency shall require fingerprints for a national criminal
history record information check from the following individuals who have or will have
access to federal tax information:

(1) a current or prospective permanent or temporary employee of the requesting agency;

(2) an independent contractor or vendor of the requesting agency; new text begin or
new text end

(3) an employee deleted text begin or agent deleted text end of an independent contractor or vendor of the requesting agency deleted text begin ;
or deleted text end new text begin .
new text end

deleted text begin (4) any other individual authorized to access federal tax information by the requesting
agency.
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. 7.

Laws 2008, chapter 366, article 17, section 6, is amended to read:

Sec. 6. DATA UPDATE.

The commissioner of revenue must continue to maintain, update, and make available
the information required under Laws 1987, chapter 268, article 7, section 1, subdivision 6,
paragraph (b). new text begin The commissioner may request information from any state officer or agency
to assist in carrying out paragraph (b). The state officer or agency shall provide the data
requested to the extent permitted by law. new text end The commissioner must provide the most complete
and current data available, when requested, to the chairs of the senate and house of
representatives committees on taxes.

new text begin EFFECTIVE DATE. new text end

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

ARTICLE 17

DEPARTMENT OF REVENUE: MISCELLANEOUS

Section 1.

Minnesota Statutes 2022, section 270C.19, subdivision 1, is amended to read:

Subdivision 1.

Taxes paid by Indians.

new text begin Notwithstanding any other law which limits the
refund of tax, new text end the commissioner is authorized to enter into a tax refund agreement with the
governing body of any federally recognized Indian deleted text begin reservation deleted text end new text begin Tribe new text end in Minnesota.

new text begin (b) new text end The agreement may provide for new text begin :
new text end

new text begin (1) new text end a mutually agreed-upon amount as a refund to the governing body of new text begin an estimate of new text end
any sales or excise tax paid by deleted text begin the total resident Indian population on or adjacent to a
reservation into the state treasury, deleted text end new text begin Tribal members on transactions occurring on the
reservation or on transactions that would occur on the reservation if there was no agreement; new text end
or

new text begin (2) new text end for an amount which measures the economic value of an agreement by the Tribal
government to pay the equivalent of the state sales tax on items included in the sales tax
base but exempt on the reservation deleted text begin , notwithstanding any other law which limits the
refundment of taxes deleted text end . deleted text begin The total resident Indian population on or adjacent to a reservation
shall be defined according to the United States Department of the Interior, Bureau of Indian
Affairs, as determined and stated in its Report on Service Population and Labor Force.
deleted text end

new text begin (c) For purposes of this section, "Tribal members" means the number of enrolled members
of the Tribe who live on or adjacent to the reservation as defined in the agreement.
new text end

new text begin (d) In arriving at the refund amount, the commissioner must consider Tribal enrollment
records, estimates contained in the tax incidence report under section 270C.13, and any
other information available to the commissioner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for agreements entered into
or amended after December 31, 2022.
new text end

Sec. 2.

Minnesota Statutes 2022, section 270C.19, subdivision 2, is amended to read:

Subd. 2.

Sales, use, and excise taxes.

(a) The commissioner is authorized to enter into
a tax agreement with the governing body of any federally recognized Indian deleted text begin reservation deleted text end new text begin
Tribe new text end in Minnesota, that provides for the state and the Tribal government to share sales,
use, and excise tax revenues generated from on-reservation activities of deleted text begin non-Indians deleted text end new text begin
non-Tribal members new text end and off-reservation activities of new text begin Tribal new text end members deleted text begin of the reservation deleted text end .
Every agreement entered into pursuant to this subdivision must require the commissioner
to collect all state and Tribal taxes covered by the agreement.

(b) The commissioner is authorized to collect any Tribal taxes imposed pursuant to any
agreement entered into pursuant to this subdivision and to make payments authorized by
the agreement to the Tribal government from the funds collected.

(c) The commissioner shall pay to the Tribal government its share of the taxes collected
pursuant to the agreement, as indicated in the agreement, and grant the taxpayer a credit for
the taxpayer's share of the amount paid to the Tribal government against the taxpayer's
Minnesota tax.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for agreements entered into
or amended after December 31, 2022.
new text end

Sec. 3.

Minnesota Statutes 2022, section 295.50, subdivision 4, is amended to read:

Subd. 4.

Health care provider.

(a) "Health care provider" means:

(1) a person whose health care occupation is regulated or required to be regulated by
the state of Minnesota furnishing any or all of the following goods or services directly to a
patient or consumer: medical, surgical, optical, visual, dental, hearing, nursing services,
drugs, laboratory, diagnostic or therapeutic services;

(2) a person who provides goods and services not listed in clause (1) that qualify for
reimbursement under the medical assistance program provided under chapter 256B;

(3) a staff model health plan company;

(4) an ambulance service required to be licensed;

(5) a person who sells or repairs hearing aids and related equipment or prescription
eyewear; or

(6) a person providing patient services, who does not otherwise meet the definition of
health care provider and is not specifically excluded in clause (b), who employs or contracts
with a health care provider as defined in clauses (1) to (5) to perform, supervise, otherwise
oversee, or consult with regarding patient services.

(b) Health care provider does not include:

(1) hospitals; medical supplies distributors, except as specified under paragraph (a),
clause (5); nursing homes licensed under chapter 144A or licensed in any other jurisdiction;
wholesale drug distributors; pharmacies; surgical centers; bus and taxicab transportation,
or any other providers of transportation services other than ambulance services required to
be licensed; supervised living facilities for persons with developmental disabilities, licensed
under Minnesota Rules, parts 4665.0100 to 4665.9900; housing with services establishments
required to be registered under chapter 144D; board and lodging establishments providing
only custodial services that are licensed under chapter 157 and registered under section
157.17 to provide supportive services or health supervision services; adult foster homes as
defined in Minnesota Rules, part 9555.5105; day training and habilitation services for adults
with developmental disabilities as defined in section 252.41, subdivision 3; boarding care
homes, as defined in Minnesota Rules, part 4655.0100; and adult day care centers as defined
in Minnesota Rules, part 9555.9600;

(2) home health agencies as defined in Minnesota Rules, part 9505.0175, subpart 15; a
person providing personal care services and supervision of personal care services as defined
in Minnesota Rules, part 9505.0335; a person providing home care nursing services as
defined in Minnesota Rules, part 9505.0360; and home care providers required to be licensed
under chapter 144A for home care services provided under chapter 144A;

(3) a person who employs health care providers solely for the purpose of providing
patient services to its employees;

(4) an educational institution that employs health care providers solely for the purpose
of providing patient services to its students if the institution does not receive fee for service
payments or payments for extended coverage; and

(5) a person who receives all payments for patient services from health care providers,
surgical centers, or hospitals for goods and services that are taxable to the paying health
care providers, surgical centers, or hospitals, as provided under section 295.53, subdivision
1, paragraph (b), clause (3) or (4), or from a source of funds that is new text begin excluded or new text end exempt from
tax under deleted text begin this chapter deleted text end new text begin sections 295.50 to 295.59 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 2022, section 296A.083, subdivision 3, is amended to read:

Subd. 3.

Surcharge rate.

(a) By deleted text begin July 16, 2008, and each April 1 thereafter deleted text end new text begin May 1 each
year new text end , the commissioner of revenue shall calculate and publish a surcharge as provided in
deleted text begin paragraphs deleted text end new text begin paragraph new text end (b) deleted text begin and (c) deleted text end . The surcharge is imposed deleted text begin from August 1, 2008, through
June 30, 2009, and each new surcharge thereafter is imposed the following deleted text end new text begin beginning new text end July
1 new text begin of the year it is published new text end through June 30 new text begin of the following year new text end .

deleted text begin (b) For fiscal years 2009 through 2012, the commissioner shall set the surcharge as
specified in the following surcharge rate schedule.
deleted text end

deleted text begin Surcharge Rate Schedule deleted text end
	deleted text begin Fiscal Year deleted text end	deleted text begin Rate (in cents per gallon) deleted text end
	deleted text begin 2009 deleted text end	deleted text begin 0.5 deleted text end
	deleted text begin 2010 deleted text end	deleted text begin 2.1 deleted text end
	deleted text begin 2011 deleted text end	deleted text begin 2.5 deleted text end
	deleted text begin 2012 deleted text end	deleted text begin 3.0 deleted text end

deleted text begin (c) For fiscal year 2013 and thereafter, deleted text end new text begin (b) new text end The commissioner shall set the surcharge at
the lesser of (1) 3.5 cents, or (2) an amount calculated so that the total proceeds from the
surcharge deposited in the trunk highway fund from fiscal year 2009 to the upcoming fiscal
year equals the total amount of debt service from fiscal years 2009 to 2039, and the surcharge
is rounded to the nearest 0.1 cent.

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 2022, section 297A.61, subdivision 29, is amended to read:

Subd. 29.

State.

Unless specifically provided otherwise, "state" means any state of the
United States, deleted text begin the Commonwealth of Puerto Rico, and deleted text end the District of Columbia new text begin , and any
territory of the United States, including American Samoa, Guam, Northern Mariana Islands,
Puerto Rico, and the U.S. Virgin Islands 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, 2023.
new text end

APPENDIX

Repealed Minnesota Statutes: S1811-1

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41B.0391 BEGINNING FARMER PROGRAM; TAX CREDITS.

Subd. 7.

Sunset.

This section expires for taxable years beginning after December 31, 2030.

290.0132 INDIVIDUALS, ESTATES, AND TRUSTS; SUBTRACTIONS FROM FEDERAL TAXABLE INCOME OR FEDERAL ADJUSTED GROSS INCOME.

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290.0681 CREDIT FOR HISTORIC STRUCTURE REHABILITATION.

Subd. 10.

Sunset.

This section expires after fiscal year 2030, except that the office's authority to issue credit certificates under subdivision 4 based on allocation certificates that were issued before fiscal year 2031 remains in effect through 2034, and the reporting requirements in subdivision 9 remain in effect through the year following the year in which all allocation certificates have either been canceled or resulted in issuance of credit certificates, or 2035, whichever is earlier.

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477A.011 DEFINITIONS.

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477A.013 MUNICIPAL GOVERNMENT DISTRIBUTIONS.

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477B.02 QUALIFYING FOR FIRE STATE AID.

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477B.03 CALCULATION OF FIRE STATE AID; APPEAL.

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