SF 2061

as introduced - 90th Legislature (2017 - 2018) Posted on 03/14/2017 09:56am

A bill for an act
relating to taxation; minerals; modifying apportionment of occupation taxes;
amending Minnesota Statutes 2016, section 298.17.

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

Section 1.

Minnesota Statutes 2016, section 298.17, is amended to read:

298.17 OCCUPATION TAXES TO BE APPORTIONED.

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

(b) Of the money apportioned to the general fund by this section: (1) there is annually
appropriated and credited to the mining environmental and regulatory account in the special
revenue fund an amount equal to new text begin the greater of $1,100,000 or new text end that which would have been
generated by a 2-1/2 cent tax imposed by section 298.24 on each taxable ton produced in
the preceding calendar year. Money in the mining environmental and regulatory account is
appropriated annually to the commissioner of natural resources to fund agency staff to work
on environmental issues and provide regulatory services for ferrous and nonferrous mining
operations in this state. Payment to the mining environmental and regulatory account shall
be made by July 1 annually. The commissioner of natural resources shall execute an
interagency agreement with the Pollution Control Agency to assist with the provision of
environmental regulatory services such as monitoring and permitting required for ferrous
and nonferrous mining operations; (2) there is annually appropriated and credited to the
Iron Range Resources and Rehabilitation Board account in the special revenue fund an
amount equal to that which would have been generated by a 1.5 cent tax imposed by section
298.24 on each taxable ton produced in the preceding calendar year, to be expended for the
purposes of section 298.22; and (3) there is annually appropriated and credited to the Iron
Range Resources and Rehabilitation Board account in the special revenue fund for transfer
to the Iron Range school consolidation and cooperatively operated school account under
section 298.28, subdivision 7a, an amount equal to that which would have been generated
by a six cent tax imposed by section 298.24 on each taxable ton produced in the preceding
calendar year. Payment to the Iron Range Resources and Rehabilitation Board account shall
be made by May 15 annually.

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

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning with the 2017 production year.
new text end