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Minnesota Session Laws - 1994, Regular Session

Key: (1) language to be deleted (2) new language

                            CHAPTER 510-H.F.No. 2275 
                  An act relating to taxes; making tax policy, 
                  collections, and administrative changes; amending 
                  Minnesota Statutes 1992, sections 168.011, subdivision 
                  8; 168.012, subdivision 9; 239.05, subdivision 10a; 
                  239.761, subdivision 3; 270.052; 270.0605; 270.10, by 
                  adding a subdivision; 270.60, subdivisions 1 and 2; 
                  270.69, subdivision 4, and by adding a subdivision; 
                  270.70, subdivision 2; 270.72, subdivision 1; 270B.02, 
                  subdivisions 3 and 5; 270B.03, subdivision 1; 270B.12, 
                  subdivision 3, and by adding a subdivision; 270B.14, 
                  by adding a subdivision; 273.12; 289A.37, subdivision 
                  1; 289A.60, by adding subdivisions; 290.01, 
                  subdivision 3a; 290A.08; 290A.18, subdivision 2; 
                  296.01, subdivisions 14, 18, 19, 20, 32, 34, and by 
                  adding subdivisions; 296.02, subdivision 1; 296.025, 
                  subdivision 1, and by adding a subdivision; 296.06, 
                  subdivision 2; 296.12, subdivisions 1, 2, 3, 4, 5, 8, 
                  10, and 11; 296.15, subdivisions 2, 4, 5, and 6; 
                  296.16, subdivision 2; 296.165, subdivision 1; 296.25, 
                  subdivision 1, and by adding a subdivision; 297.03, 
                  subdivision 7; 297A.25, subdivision 9; and 297C.13, 
                  subdivision 1; Minnesota Statutes 1993 Supplement, 
                  sections 116.07, subdivision 10; 270.06; 270.41, 
                  subdivision 5; 270B.01, subdivision 8; 272.115, 
                  subdivision 1; 273.124, subdivision 13; 275.065, 
                  subdivision 6; 289A.18, subdivision 4; 289A.20, 
                  subdivision 4; 290.01, subdivision 19; 297A.01, 
                  subdivision 15; 297A.07, subdivision 1; and 297A.25, 
                  subdivision 11; proposing coding for new law in 
                  Minnesota Statutes, chapters 270; 296; 297; 384; and 
                  385; repealing Minnesota Statutes 1992, sections 
                  270.0604, subdivision 6; 272.09; 272.46, subdivision 
                  1; 272.47; 296.03; 296.14; 296.15, subdivision 3; and 
                  297A.07, subdivision 2. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
                                   ARTICLE 1 
                      PROPERTY TAXES; PROPERTY TAX REFUNDS 
           Section 1.  Minnesota Statutes 1992, section 168.011, 
        subdivision 8, is amended to read: 
           Subd. 8.  [MANUFACTURED HOME; PARK TRAILER; TRAVEL 
        TRAILER.] (a) "Manufactured home" has the meaning given it in 
        section 327.31, subdivision 6. 
           (b) "Park trailer" means a trailer that: 
           (1) exceeds eight and one-half feet in width in travel mode 
        but is no larger than 400 square feet when the collapsible 
        components are fully extended or at maximum horizontal width; 
        and 
           (2) is used as temporary living quarters. 
        "Park trailer" does not include a manufactured home. 
           (c) "Travel trailer" means a trailer, mounted on wheels, 
        that: 
           (1) is designed to provide temporary living quarters during 
        recreation, camping, or travel; 
           (2) does not require a special highway movement permit 
        based on its size or weight when towed by a motor vehicle; and 
           (3) complies with sections 169.80, subdivision 2, and 
        169.81, subdivision 2. 
           Sec. 2.  Minnesota Statutes 1992, section 168.012, 
        subdivision 9, is amended to read: 
           Subd. 9.  Manufactured homes shall not be taxed as motor 
        vehicles using the public streets and highways and shall be 
        exempt from the motor vehicle tax provisions of this chapter.  
        Except as provided in section 274.19, manufactured homes shall 
        be taxed as personal property.  The provisions of Minnesota 
        Statutes 1957, section 272.02 or any other act providing for tax 
        exemption shall be inapplicable to manufactured homes, except 
        such manufactured homes as are held by a licensed dealer and 
        exempted as inventory.  Travel trailers not conspicuously 
        displaying current registration plates during any calendar 
        year on the property tax assessment date shall be taxed as 
        manufactured homes if occupied as human dwelling places.  Park 
        trailers not used on the highway during any calendar year must 
        be taxed as manufactured homes if occupied as human dwelling 
        places.  Park trailers used on the highway during any calendar 
        year must be taxed under section 168.013, subdivision 1j. 
           Sec. 3.  Minnesota Statutes 1992, section 270.0605, is 
        amended to read: 
           270.0605 [TAX INFORMATION BULLETINS.] 
           The commissioner of revenue may issue tax information 
        bulletins.  "Tax information bulletins" are informational guides 
        to enable taxpayers and affected local governmental officials to 
        become more familiar with Minnesota tax laws and their rights 
        and responsibilities under the tax laws.  Nothing contained in 
        the tax information bulletins supersedes, alters, or otherwise 
        changes any provisions of the Minnesota tax law, administrative 
        rules, court decisions, or revenue notices. 
           Sec. 4.  Minnesota Statutes 1993 Supplement, section 
        270.41, subdivision 5, is amended to read: 
           Subd. 5.  [PROHIBITED ACTIVITY.] An assessor, deputy 
        assessor, assistant assessor, appraiser, or other person 
        employed by an assessment jurisdiction or contracting with an 
        assessment jurisdiction for the purpose of valuing or 
        classifying property for property tax purposes is prohibited 
        from making appraisals or analyses, accepting an appraisal 
        assignment, or preparing an appraisal report as defined in 
        section 82B.02, subdivisions 2 to 5, on any property within the 
        assessment jurisdiction where the individual is employed or 
        performing the duties of the assessor under contract.  Violation 
        of this prohibition shall result in immediate revocation of the 
        individual's license to assess property for property tax 
        purposes.  This prohibition must not be construed to prohibit an 
        individual from carrying out any duties required for the proper 
        assessment of property for property tax purposes.  If a formal 
        resolution has been adopted by the governing body of a 
        governmental unit, which specifies the purposes for which such 
        work will be done, this prohibition does not apply to appraisal 
        activities undertaken on behalf of and at the request of the 
        governmental unit that has employed or contracted with the 
        individual.  The resolution may only allow appraisal activities 
        which are related to condemnations, right-of-way acquisitions, 
        or special assessments. 
           Sec. 5.  Minnesota Statutes 1993 Supplement, section 
        272.115, subdivision 1, is amended to read: 
           Subdivision 1.  Whenever any real estate is sold for a 
        consideration in excess of $1,000, whether by warranty deed, 
        quitclaim deed, contract for deed or any other method of sale, 
        the grantor, grantee or the legal agent of either shall file a 
        certificate of value with the county auditor in the county in 
        which the property is located when the deed or other document is 
        presented for recording.  Contract for deeds are subject to 
        recording under section 507.235, subdivision 1.  Value shall, in 
        the case of any deed not a gift, be the amount of the full 
        actual consideration thereof, paid or to be paid, including the 
        amount of any lien or liens assumed.  The certificate of value 
        shall include the classification to which the property belongs 
        for the purpose of determining the fair market value of the 
        property.  The certificate shall include financing terms and 
        conditions of the sale which are necessary to determine the 
        actual, present value of the sale price for purposes of the 
        sales ratio study.  The commissioner of revenue shall promulgate 
        administrative rules specifying the financing terms and 
        conditions which must be included on the certificate.  Pursuant 
        to the authority of the commissioner of revenue in section 
        270.066, the certificate of value must include the social 
        security number or the federal employer identification number of 
        the grantors and grantees.  The identification numbers of the 
        grantors and grantees are private data on individuals or 
        nonpublic data as defined in section 13.02, subdivisions 9 and 
        12, but, notwithstanding that section, the private or nonpublic 
        data may be disclosed to the commissioner of revenue for 
        purposes of tax administration. 
           Sec. 6.  Minnesota Statutes 1992, section 273.12, is 
        amended to read: 
           273.12 [ASSESSMENT OF REAL PROPERTY.] 
           It shall be the duty of every assessor and board, in 
        estimating and determining the value of lands for the purpose of 
        taxation, to consider and give due weight to every element and 
        factor affecting the market value thereof, including its 
        location with reference to roads and streets and the location of 
        roads and streets thereon or over the same, and to take into 
        consideration a reduction in the acreage of each tract or lot 
        sufficient to cover the amount of land actually used for any 
        improved public highway and the reduction in area of land caused 
        thereby.  It shall be the duty of every assessor and board, in 
        estimating and determining the value of lands for the purpose of 
        taxation, to consider and give due weight to lands which are 
        comparable in character, quality, and location, to the end that 
        all lands similarly located and improved will be assessed upon a 
        uniform basis and without discrimination and, for agricultural 
        lands, to consider and give recognition to its earning potential 
        as measured by its free market rental rate.  
           Notwithstanding the provisions of this or any other 
        section, no additional value shall be assessed for unmined 
        mineral value except for iron ore or taconite.  When mineral, 
        clay, or gravel deposits exist on a property, and their extent, 
        quality, and costs of extraction are sufficiently well known so 
        as to influence market value, such deposits shall be recognized 
        in valuing the property. 
           Sec. 7.  Minnesota Statutes 1993 Supplement, 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) On or before January 2, 1993, each county assessor 
        shall mail a homestead application to the owner of each parcel 
        of property within the county which was classified as homestead 
        for the 1992 assessment year.  The format and contents of a 
        uniform homestead application shall be prescribed by the 
        commissioner of revenue.  The commissioner shall consult with 
        the chairs of the house and senate tax committees on the 
        contents of the homestead application form.  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 continue receiving homestead treatment.  The 
        envelope containing the homestead application shall clearly 
        identify its contents and alert the taxpayer of its necessary 
        immediate response. 
           (c) Every property owner applying for homestead 
        classification must furnish to the county assessor the social 
        security number of each occupant who is listed as an owner of 
        the property on the homestead application, and the name and 
        address of each owner who does not occupy the property.  If the 
        social security number is not provided, the county assessor 
        shall classify the property as nonhomestead.  The social 
        security numbers of the property owners are private data on 
        individuals as defined by section 13.02, subdivision 12, but, 
        notwithstanding that section, the private data may be disclosed 
        to the commissioner of revenue, or, for purposes of proceeding 
        under the revenue recapture act to recover personal property 
        taxes owing, to the county treasurer. 
           (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 of each relative occupying the property and the 
        social security number of each owner who is related to an 
        occupant of 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 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.  
           (e) The homestead application shall also notify the 
        property owners that the application filed under this section 
        will not be mailed annually and that if the property is granted 
        homestead status for the 1993 assessment, or any assessment year 
        thereafter, that same property shall remain classified as 
        homestead until the property is sold or transferred to another 
        person, or the owners 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 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 the homestead application is not returned within 30 
        days, the county will send a second application to the present 
        owners of record.  The notice of proposed property taxes 
        prepared under section 275.065, subdivision 3, shall reflect the 
        property's classification.  Beginning with assessment year 1993 
        for all properties, if a homestead application has not been 
        filed with the county by December 15, 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. 
           (g) At the request of the commissioner, each county must 
        give the commissioner a list that includes the name and social 
        security number of each property owner, or relative of a 
        property owner, applying for homestead classification under this 
        subdivision.  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.  
           (h) If, in comparing the lists supplied by the counties, 
        the commissioner finds that a property owner is claiming more 
        than one homestead, the commissioner shall notify the 
        appropriate counties.  Within 90 days of the notification, the 
        county assessor shall investigate to determine if the homestead 
        classification was properly claimed.  If the property owner does 
        not qualify, the county assessor shall notify the county auditor 
        who will determine the amount of homestead benefits that had 
        been improperly allowed.  For the purpose of this section, 
        "homestead benefits" means the tax reduction resulting from the 
        classification as a homestead under section 273.13, the taconite 
        homestead credit under section 273.135, and the supplemental 
        homestead credit under section 273.1391. 
           The county auditor shall send a notice to the owners of the 
        affected property, demanding reimbursement of the homestead 
        benefits plus a penalty equal to 100 percent of the homestead 
        benefits.  The property owners may appeal the county's 
        determination by filing a notice of appeal with the Minnesota 
        tax court within 60 days of the date of the notice from the 
        county.  If the amount of homestead benefits and penalty is not 
        paid within 60 days, and if no appeal has been filed, the county 
        auditor shall certify the amount of taxes and penalty to the 
        succeeding year's tax list to be collected as part of the 
        property taxes. 
           (i) Any amount of homestead benefits recovered by the 
        county from the property owner shall be distributed to the 
        county, city or town, and school district where the property is 
        located in the same proportion that each taxing district's levy 
        was to the total of the three taxing districts' levy for the 
        current year.  Any amount recovered attributable to taconite 
        homestead credit shall be transmitted to the St. Louis county 
        auditor to be deposited in the taconite property tax relief 
        account.  The total amount of penalty collected must be 
        deposited in the county general fund. 
           (j) If a property owner has applied for more than one 
        homestead and the county assessors cannot determine which 
        property should be classified as homestead, the county assessors 
        will refer the information to the commissioner.  The 
        commissioner shall make the determination and notify the 
        counties within 60 days. 
           (k) In addition to lists of homestead properties, the 
        commissioner may ask the counties to furnish lists of all 
        properties and the record owners. 
           Sec. 8.  Minnesota Statutes 1993 Supplement, section 
        275.065, subdivision 6, is amended to read: 
           Subd. 6.  [PUBLIC HEARING; ADOPTION OF BUDGET AND LEVY.] 
        Between November 29 and December 20, the governing bodies of the 
        city, county, metropolitan special taxing districts as defined 
        in subdivision 3, paragraph (i), and regional library districts 
        shall each hold a public hearing to discuss and seek public 
        comment on its final budget and property tax levy for taxes 
        payable in the following year, and the governing body of the 
        school district shall hold a public hearing to review its 
        current budget and proposed property tax levy for taxes payable 
        in the following year.  The metropolitan special taxing 
        districts shall be required to hold only a single joint public 
        hearing, the location of which will be determined by the 
        affected metropolitan agencies. 
           At a subsequent hearing, the taxing authority, other than a 
        school district, may amend the proposed budget and property tax 
        levy and must adopt a final budget and property tax levy, and 
        the school district may amend the proposed property tax levy and 
        must adopt a final property tax levy. each county, school 
        district, city, and metropolitan special taxing district may 
        amend its proposed property tax levy and must adopt a final 
        property tax levy.  Each county, city, and metropolitan special 
        taxing district may also amend its proposed budget and must 
        adopt a final budget at the subsequent hearing.  A school 
        district is not required to adopt its final budget at the 
        subsequent hearing.  The subsequent hearing of a taxing 
        authority must be held on a date subsequent to the date of the 
        taxing authority's initial public hearing, or subsequent to the 
        date of its continuation hearing if a continuation hearing is 
        held.  The subsequent hearing may be held at a regularly 
        scheduled board or council meeting or at a special meeting 
        scheduled for the purposes of the subsequent hearing.  The 
        subsequent hearing of a taxing authority does not have to be 
        coordinated by the county auditor to prevent a conflict with an 
        initial hearing, a continuation hearing, or a subsequent hearing 
        of any other taxing authority.  All subsequent hearings must be 
        held prior to five working days after December 20 of the levy 
        year. 
           The time and place of the subsequent hearing must be 
        announced at the initial public hearing or at the continuation 
        hearing. 
           The property tax levy certified under section 275.07 by a 
        city, county, metropolitan special taxing district, regional 
        library district, or school district must not exceed the 
        proposed levy determined under subdivision 1, except by an 
        amount up to the sum of the following amounts: 
           (1) the amount of a school district levy whose voters 
        approved a referendum to increase taxes under section 124.82, 
        subdivision 3, 124A.03, subdivision 2, 124B.03, subdivision 2, 
        or 136C.411, after the proposed levy was certified; 
           (2) the amount of a city or county levy approved by the 
        voters after the proposed levy was certified; 
           (3) the amount of a levy to pay principal and interest on 
        bonds issued or approved by the voters under section 475.58 
        after the proposed levy was certified; 
           (4) the amount of a levy to pay costs due to a natural 
        disaster occurring after the proposed levy was certified, if 
        that amount is approved by the commissioner of revenue under 
        subdivision 6a; 
           (5) the amount of a levy to pay tort judgments against a 
        taxing authority that become final after the proposed levy was 
        certified, if the amount is approved by the commissioner of 
        revenue under subdivision 6a; 
           (6) the amount of an increase in levy limits certified to 
        the taxing authority by the commissioner of education after the 
        proposed levy was certified; and 
           (7) the amount required under section 124.755. 
           At the hearing under this subdivision, the percentage 
        increase in property taxes proposed by the taxing authority, if 
        any, and the specific purposes for which property tax revenues 
        are being increased must be discussed.  At the hearing held in 
        1993 only, specific information for previous year, current year, 
        and proposed budget year must be presented on: 
           (i) percent of total proposed budget representing total 
        compensation cost; 
           (ii) numbers of employees by general classification, and 
        whether full or part time; 
           (iii) number and budgeted expenditures for independent 
        contractors; and 
           (iv) the effect of budget increases or decreases on the 
        proposed property tax levy. 
           During the discussion, the governing body shall hear 
        comments regarding a proposed increase and explain the reasons 
        for the proposed increase.  The public shall be allowed to speak 
        and to ask questions.  At a the subsequent hearing held as 
        provided in this subdivision, the governing body, other than the 
        governing body of a school district, shall adopt its final 
        property tax levy prior to adopting its final budget. 
           If the hearing is not completed on its scheduled date, the 
        taxing authority must announce, prior to adjournment of the 
        hearing, the date, time, and place for the continuation of the 
        hearing.  The continued hearing must be held at least five 
        business days but no more than 14 business days after the 
        original hearing. 
           The hearing must be held after 5:00 p.m. if scheduled on a 
        day other than Saturday.  No hearing may be held on a Sunday.  
        The governing body of a county shall hold a hearing on the 
        second Tuesday in December each year, and may hold additional 
        hearings on other dates before December 20 if necessary for the 
        convenience of county residents.  The county auditor shall 
        provide for the coordination of hearing dates for all cities and 
        school districts within the county. 
           By August 10, each school board and the board of the 
        regional library district shall certify to the county auditors 
        of the counties in which the school district or regional library 
        district is located the dates on which it elects to hold its 
        hearings and any continuations.  If a school board or regional 
        library district does not certify the dates by August 10, the 
        auditor will assign the hearing date.  The dates elected or 
        assigned must not conflict with the county hearing dates.  The 
        county auditor shall coordinate with the metropolitan special 
        taxing districts as defined in subdivision 3, paragraph (i), a 
        date on which the metropolitan special taxing districts will 
        hold their joint public hearing and any continuation.  By August 
        20, the county auditor shall notify the clerks of the cities 
        within the county of the dates on which school districts, 
        metropolitan special taxing districts, and regional library 
        districts have elected to hold their hearings.  At the time a 
        city certifies its proposed levy under subdivision 1 it shall 
        certify the dates on which it elects to hold its hearings and 
        any continuations.  The city must not select dates that conflict 
        with the county hearing dates, metropolitan special taxing 
        district dates, or with those elected by or assigned to the 
        school districts or regional library district in which the city 
        is located. 
           The county hearing dates and the city, metropolitan special 
        taxing district, regional library district, and school district 
        hearing dates must be designated on the notices required under 
        subdivision 3.  The continuation dates need not be stated on the 
        notices.  
           This subdivision does not apply to towns and special taxing 
        districts other than regional library districts and metropolitan 
        special taxing districts. 
           Notwithstanding the requirements of this section, the 
        employer is required to meet and negotiate over employee 
        compensation as provided for in chapter 179A.  
           Sec. 9.  Minnesota Statutes 1992, section 290A.08, is 
        amended to read: 
           290A.08 [ONE CLAIMANT PER HOUSEHOLD.] 
           Only one claimant per household per year is entitled to 
        relief under this chapter.  Payment of the claim for relief may 
        be made payable to the husband and wife as one claimant.  The 
        commissioner, upon written request, may issue separate checks, 
        to the husband and wife for one-half of the relief provided the 
        original check has not been issued or has been returned.  
        Individuals related as husband and wife who were married during 
        the year may elect to file a joint claim which shall include 
        each spouse's income, rent constituting property taxes, and 
        property taxes payable.  Husbands and wives who were married for 
        the entire year and were domiciled in the same household for the 
        entire year must file a joint claim.  The maximum dollar amount 
        allowable for a joint claim shall not exceed the amount that one 
        person could receive.  
           Sec. 10.  Minnesota Statutes 1992, section 290A.18, 
        subdivision 2, is amended to read: 
           Subd. 2.  [CLAIMANT CANNOT BE LOCATED.] If the commissioner 
        cannot locate the claimant within two years from the date that 
        the original warrant was issued, or if a claimant to whom a 
        warrant has been issued does not cash that warrant within two 
        years from the date the warrant was issued, the right to the 
        credit shall lapse, and the warrant shall be deposited in the 
        general fund. 
           Sec. 11.  [384.19] [STATEMENT OF UNPAID DELINQUENT TAXES.] 
           Upon request of any person the county auditor shall search 
        the official records of the office to determine if unpaid 
        property taxes exist for any tax parcels of land listed in the 
        request.  The county auditor shall certify the results of the 
        search for each parcel by showing the amount of tax unpaid for 
        each tax year payable.  For purposes of this section, "tax" 
        includes penalty, interest, fees, and costs related to the 
        unpaid tax. 
           At the option of the county auditor, magnetic tape or other 
        electronic media may be employed to transmit the data request or 
        the search results.  For this service a fee may be charged in an 
        amount established by the county board up to a maximum of $5 per 
        parcel, to recover the reasonable costs incurred to furnish the 
        service.  The provisions of section 276.041 are not affected by 
        this section. 
           Sec. 12.  [385.42] [STATEMENT OF UNPAID CURRENT TAXES.] 
           Upon request of any person the county treasurer shall 
        search the official records of the office to determine if unpaid 
        property taxes exist for the current tax year for any tax 
        parcels of land listed in the request.  The county treasurer 
        shall certify the results of the search for each parcel by 
        showing the amount of tax unpaid.  For purposes of this section, 
        "tax" includes penalty, interest, fees, and costs related to the 
        unpaid tax. 
           At the option of the county treasurer, magnetic tape or 
        other electronic media may be employed to transmit the data 
        request or the search results.  For this service a fee may be 
        charged in an amount established by the county board up to a 
        maximum of $5 per parcel, to recover the reasonable costs 
        incurred to furnish the service.  The provisions of section 
        276.041 are not affected by this section. 
           This section shall not authorize the treasurer or county 
        auditor to charge a fee for certifying to taxes on a deed to be 
        recorded. 
           Sec. 13.  [REPEALER.] 
           Minnesota Statutes 1992, sections 270.0604, subdivision 6; 
        272.09; 272.46, subdivision 1; and 272.47 are repealed.  
           Sec. 14.  [EFFECTIVE DATES.] 
           Sections 1, 2, and 5 are effective July 1, 1995. 
           Sections 3, 7, 11 to 13 are effective July 1, 1994. 
           Sections 4 and 10 are effective on the day following final 
        enactment.  
           Sections 6 and 8 are effective for taxes payable in 1995 
        and thereafter. 
           Section 9 is effective for refunds based on rents paid in 
        1994, and property taxes payable in 1995, and thereafter. 
                                   ARTICLE 2
                                   INCOME TAX
           Section 1.  Minnesota Statutes 1992, section 270.052, is 
        amended to read: 
           270.052 [AGREEMENT WITH INTERNAL REVENUE SERVICE.] 
           Pursuant to section 270B.12, the commissioner may enter 
        into an agreement with the Internal Revenue Service to identify 
        taxpayers who have refunds due from the department of revenue 
        and liabilities owing to the Internal Revenue Service, if the 
        Internal Revenue Service agrees to identify taxpayers who have 
        refunds due from the Internal Revenue Service and liabilities 
        owing to the department of revenue.  In accordance with the 
        procedures established in the agreement, the Internal Revenue 
        Service may levy against the refunds to be paid by the 
        department of revenue, and the department of revenue may levy 
        against refunds to be paid by the Internal Revenue Service. 
           Sec. 2.  Minnesota Statutes 1992, section 289A.60, is 
        amended by adding a subdivision to read: 
           Subd. 22.  [COMPOSITE RETURNS.] For the purposes of the 
        penalties imposed by subdivisions 1 and 2, the payment of a 
        composite tax or filing of a composite return pursuant to 
        section 289A.08, subdivision 7, is considered the payment and 
        filing of a corporate tax. 
           Sec. 3.  Minnesota Statutes 1992, section 289A.60, is 
        amended by adding a subdivision to read: 
           Subd. 23.  [WITHHOLDING FOR NONRESIDENT PARTNERS OR 
        SHAREHOLDERS.] For the purposes of the penalties imposed by 
        subdivisions 1, 2, and 5a, the filing of returns required by 
        section 289A.09, subdivision 1, paragraphs (d) and (e), and the 
        payment of amounts withheld under section 290.92, subdivisions 
        4b and 4c, are considered filing and payment corporate tax 
        rather than withholding tax. 
           Sec. 4.  Minnesota Statutes 1992, section 290.01, 
        subdivision 3a, is amended to read: 
           Subd. 3a.  [TRUST.] The term "trust" has the meaning 
        provided under the Internal Revenue Code of 1986, as amended 
        through December 31, 1991 1993, and also means designated 
        settlement fund as defined in and taxed federally under section 
        468B of the Internal Revenue Code of 1986, as amended through 
        December 31, 1993. 
           Sec. 5.  Minnesota Statutes 1993 Supplement, section 
        290.01, subdivision 19, is amended to read: 
           Subd. 19.  [NET INCOME.] 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 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 subdivisions 19a to 19f. 
           In the case of a regulated investment company or a fund 
        thereof, as defined in section 851(a) or 851(h) 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; and 
           (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.  
           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.  
           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. 
           The Internal Revenue Code of 1986, as amended through 
        December 31, 1986, shall be in effect for taxable years 
        beginning after December 31, 1986.  The provisions of sections 
        10104, 10202, 10203, 10204, 10206, 10212, 10221, 10222, 10223, 
        10226, 10227, 10228, 10611, 10631, 10632, and 10711 of the 
        Omnibus Budget Reconciliation Act of 1987, Public Law Number 
        100-203, the provisions of sections 1001, 1002, 1003, 1004, 
        1005, 1006, 1008, 1009, 1010, 1011, 1011A, 1011B, 1012, 1013, 
        1014, 1015, 1018, 2004, 3041, 4009, 6007, 6026, 6032, 6137, 
        6277, and 6282 of the Technical and Miscellaneous Revenue Act of 
        1988, Public Law Number 100-647, and the provisions of sections 
        7811, 7816, and 7831 of the Omnibus Budget Reconciliation Act of 
        1989, Public Law Number 101-239, shall be effective at the time 
        they become effective for federal income tax purposes.  
           The Internal Revenue Code of 1986, as amended through 
        December 31, 1987, shall be in effect for taxable years 
        beginning after December 31, 1987.  The provisions of sections 
        4001, 4002, 4011, 5021, 5041, 5053, 5075, 6003, 6008, 6011, 
        6030, 6031, 6033, 6057, 6064, 6066, 6079, 6130, 6176, 6180, 
        6182, 6280, and 6281 of the Technical and Miscellaneous Revenue 
        Act of 1988, Public Law Number 100-647, the provisions of 
        sections 7815 and 7821 of the Omnibus Budget Reconciliation Act 
        of 1989, Public Law Number 101-239, and the provisions of 
        section 11702 of the Revenue Reconciliation Act of 1990, Public 
        Law Number 101-508, shall become effective at the time they 
        become effective for federal tax purposes.  
           The Internal Revenue Code of 1986, as amended through 
        December 31, 1988, shall be in effect for taxable years 
        beginning after December 31, 1988.  The provisions of sections 
        7101, 7102, 7104, 7105, 7201, 7202, 7203, 7204, 7205, 7206, 
        7207, 7210, 7211, 7301, 7302, 7303, 7304, 7601, 7621, 7622, 
        7641, 7642, 7645, 7647, 7651, and 7652 of the Omnibus Budget 
        Reconciliation Act of 1989, Public Law Number 101-239, the 
        provision of section 1401 of the Financial Institutions Reform, 
        Recovery, and Enforcement Act of 1989, Public Law Number 101-73, 
        and the provisions of sections 11701 and 11703 of the Revenue 
        Reconciliation Act of 1990, Public Law Number 101-508, shall 
        become effective at the time they become effective for federal 
        tax purposes.  
           The Internal Revenue Code of 1986, as amended through 
        December 31, 1989, shall be in effect for taxable years 
        beginning after December 31, 1989.  The provisions of sections 
        11321, 11322, 11324, 11325, 11403, 11404, 11410, and 11521 of 
        the Revenue Reconciliation Act of 1990, Public Law Number 
        101-508, shall become effective at the time they become 
        effective for federal purposes.  
           The Internal Revenue Code of 1986, as amended through 
        December 31, 1990, shall be in effect for taxable years 
        beginning after December 31, 1990.  
           The Internal Revenue Code of 1986, as amended through 
        December 31, 1991, shall be in effect for taxable years 
        beginning after December 31, 1991.  
           The provisions of sections 1936 and 1937 of the 
        Comprehensive National Energy Policy Act of 1992, Public Law 
        Number 102-486, shall become effective at the time they become 
        effective for federal purposes.  
           The Internal Revenue Code of 1986, as amended through 
        December 31, 1992, shall be in effect for taxable years 
        beginning after December 31, 1992.  
           Except as otherwise provided, references to the Internal 
        Revenue Code in subdivisions 19a to 19g mean the code in effect 
        for purposes of determining net income for the applicable year. 
           Sec. 6.  [EFFECTIVE DATES.] 
           Section 1 is effective the day following final enactment.  
        Sections 2 and 3 are effective for tax returns due for tax years 
        beginning after December 31, 1993.  Sections 4 and 5 are 
        effective for tax years beginning after December 31, 1993. 
                                   ARTICLE 3  
                   SALES, USE, AND MOTOR VEHICLE EXCISE TAXES 
           Section 1.  Minnesota Statutes 1992, section 270.60, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [TAXES PAID BY INDIANS.] The commissioner 
        of revenue is authorized to enter into a tax refund agreement 
        with the governing body of any Sioux or Chippewa federally 
        recognized Indian reservation in Minnesota.  The agreement may 
        provide for a mutually agreed upon amount as a refund to the 
        governing body of any sales or excise tax paid by the total 
        resident Indian population on or adjacent to a reservation into 
        the state treasury, or for an amount which measures the economic 
        value of an agreement by the council tribal government to pay 
        the equivalent of the state sales tax on items included in the 
        sales tax base but exempt on the reservation, notwithstanding 
        any other law which limits the refundment of taxes.  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. 
           Sec. 2.  Minnesota Statutes 1992, section 270.60, 
        subdivision 2, is amended to read: 
           Subd. 2.  [CIGARETTE TAXES SALES, USE, AND EXCISE 
        TAXES.] (a) The commissioner of revenue is also authorized to 
        enter into a tax refund agreement with the governing body of any 
        federally recognized Indian reservation in Minnesota, for refund 
        of a mutually agreed upon amount of the cigarette taxes 
        collected from sales on reservations or trust lands of an Indian 
        tribe to the established governing body of the tribe having 
        jurisdiction over the reservation or trust land on which the 
        sale is made. that provides for the state and the tribal 
        government to share sales, use, and excise tax revenues 
        generated from on reservation activities of non-Indians and off 
        reservation activities of members of the reservation.  Every 
        agreement entered into pursuant to this subdivision must require 
        the commissioner of revenue to collect all state and tribal 
        taxes covered by the agreement.  
           (b) The commissioner of revenue 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.  
           Sec. 3.  Minnesota Statutes 1993 Supplement, section 
        270B.01, subdivision 8, is amended to read: 
           Subd. 8.  [MINNESOTA TAX LAWS.] For purposes of this 
        chapter only, "Minnesota tax laws" means the taxes administered 
        by or paid to the commissioner under chapters 289A (except taxes 
        imposed under sections 298.01, 298.015, and 298.24), 290, 290A, 
        291, and 297A and sections 295.50 to 295.59, or any similar 
        Indian tribal tax administered by the commissioner pursuant to 
        any tax agreement between the state and the Indian tribal 
        government, and includes any laws for the assessment, 
        collection, and enforcement of those taxes.  
           Sec. 4.  Minnesota Statutes 1992, section 270B.03, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [WHO MAY INSPECT.] Returns and return 
        information must, on written request, be made open to inspection 
        by or disclosure to the data subject.  For purposes of this 
        chapter, the following are the data subject: 
           (1) in the case of an individual return, that individual; 
           (2) in the case of an income tax return filed jointly, 
        either of the individuals with respect to whom the return is 
        filed; 
           (3) in the case of a partnership return, any person who was 
        a member of the partnership during any part of the period 
        covered by the return; 
           (4) in the case of the return of a corporation or its 
        subsidiary: 
           (i) any person designated by resolution of the board of 
        directors or other similar governing body; 
           (ii) any officer or employee of the corporation upon 
        written request signed by any officer and attested to by the 
        secretary or another officer; 
           (iii) any bona fide shareholder of record owning one 
        percent or more of the outstanding stock of the corporation; 
           (iv) if the corporation is a corporation that has made an 
        election under section 1362 of the Internal Revenue Code of 
        1986, as amended through December 31, 1988, any person who was a 
        shareholder during any part of the period covered by the return 
        during which an election was in effect; or 
           (v) if the corporation has been dissolved, any person 
        authorized by state law to act for the corporation or any person 
        who would have been authorized if the corporation had not been 
        dissolved; 
           (5) in the case of an estate return: 
           (i) the personal representative or trustee of the estate; 
        and 
           (ii) any heir at law, next of kin, or beneficiary of the 
        estate, but only if the commissioner finds that the heir at law, 
        next of kin, or beneficiary has a material interest that will be 
        affected by information contained in the return; 
           (6) in the case of a trust return: 
           (i) the trustee or trustees, jointly or separately; and 
           (ii) any beneficiary of the trust, but only if the 
        commissioner finds that the beneficiary has a material interest 
        that will be affected by information contained in the return; 
        and 
           (7) if liability has been assessed to a transferee under 
        section 289A.31, subdivision 3, the transferee is the data 
        subject with regard to the returns and return information 
        relating to the assessed liability.; and 
           (8) in the case of an Indian tribal government or an Indian 
        tribal government owned entity, 
           (i) the chair of the tribal government, or 
           (ii) any person authorized by the tribal government.  
           Sec. 5.  Minnesota Statutes 1992, section 270B.12, 
        subdivision 3, is amended to read: 
           Subd. 3.  [REQUEST FORM; NAMED INSPECTOR.] Inspections and 
        disclosures permitted under subdivisions 1 and, 2, and 10 are 
        allowed only upon written request in a form prescribed by the 
        commissioner and may be made only to the representatives of the 
        agency, body, or commission named in the written request as the 
        individuals who are to inspect or receive the returns or return 
        information on behalf of the agency, body, or commission. 
           Sec. 6.  Minnesota Statutes 1992, section 270B.12, is 
        amended by adding a subdivision to read: 
           Subd. 10.  [INDIAN TRIBAL GOVERNMENTS.] Sales and use tax 
        returns and return information are open to inspection by or 
        disclosure to the taxing officials of any Indian tribal 
        government in Minnesota for the purpose of and to the extent 
        necessary for the administration of any tax agreement entered 
        into between the state and the Indian tribal government pursuant 
        to section 270.60, subdivision 2.  Prior to inspection or 
        disclosure, the Indian tribal government must establish 
        procedures for safeguarding the information.  
           Sec. 7.  Minnesota Statutes 1993 Supplement, section 
        289A.18, subdivision 4, is amended to read: 
           Subd. 4.  [SALES AND USE TAX RETURNS.] (a) Sales and use 
        tax returns must be filed on or before the 20th day of the month 
        following the close of the preceding reporting period, except 
        that annual use tax returns provided for under section 289A.11, 
        subdivision 1, must be filed by April 15 following the close of 
        the calendar year, in the case of individuals.  Annual use tax 
        returns of businesses, including sole proprietorships, and 
        annual sales tax returns must be filed by February 5 following 
        the close of the calendar year.  
           (b) Returns filed by retailers required to remit 
        liabilities by means of funds transfer under section 289A.20, 
        subdivision 4, paragraph (d), are due on or before the 25th day 
        of the month following the close of the preceding reporting 
        period.  The return for the May liability and 75 percent of the 
        estimated June liability is due on the date payment of the 
        estimated June liability is due, and on or before August 25 of a 
        year, the retailer must file a return showing the actual June 
        liability. 
           (c) If a retailer has an average sales and use tax 
        liability, including local sales and use taxes administered by 
        the commissioner, equal to or less than $500 per month in any 
        quarter of a calendar year, and has substantially complied with 
        the tax laws during the preceding four calendar quarters, the 
        retailer may request authorization to file and pay the taxes 
        quarterly in subsequent calendar quarters.  The authorization 
        remains in effect during the period in which the retailer's 
        quarterly returns reflect sales and use tax liabilities of less 
        than $1,500 and there is continued compliance with state tax 
        laws. 
           (d) If a retailer has an average sales and use tax 
        liability, including local sales and use taxes administered by 
        the commissioner, equal to or less than $100 per month during a 
        calendar year, and has substantially complied with the tax laws 
        during that period, the retailer may request authorization to 
        file and pay the taxes annually in subsequent years.  The 
        authorization remains in effect during the period in which the 
        retailer's annual returns reflect sales and use tax liabilities 
        of less than $1,200 and there is continued compliance with state 
        tax laws. 
           (e) The commissioner may also grant quarterly or annual 
        filing and payment authorizations to retailers if the 
        commissioner concludes that the retailers' future tax 
        liabilities will be less than the monthly totals identified in 
        paragraphs (c) and (d).  An authorization granted under this 
        paragraph is subject to the same conditions as an authorization 
        granted under paragraphs (c) and (d). 
           Sec. 8.  Minnesota Statutes 1993 Supplement, section 
        289A.20, subdivision 4, is amended to read: 
           Subd. 4.  [SALES AND USE TAX.] (a) The taxes imposed by 
        chapter 297A are due and payable to the commissioner monthly on 
        or before the 20th day of the month following the month in which 
        the taxable event occurred or following another reporting period 
        as the commissioner prescribes, except that use taxes due on an 
        annual use tax return as provided under section 289A.11, 
        subdivision 1, are payable by April 15 following the close of 
        the calendar year. 
           (b) A vendor having a liability of $120,000 or more during 
        a fiscal year ending June 30 must remit the June liability for 
        the next year in the following manner: 
           (1) Two business days before June 30 of the year, the 
        vendor must remit 75 percent of the estimated June liability to 
        the commissioner.  
           (2) On or before August 14 of the year, the vendor must pay 
        any additional amount of tax not remitted in June. 
           (c) When a retailer located outside of a city that imposes 
        a local sales and use tax collects use tax to be remitted to 
        that city, the retailer is not required to remit the tax until 
        the amount collected reaches $10. 
           (d) A vendor having a liability of $120,000 or more during 
        a fiscal year ending June 30 must remit all liabilities in the 
        subsequent calendar year by means of a funds transfer as defined 
        in section 336.4A-104, paragraph (a).  The funds transfer 
        payment date, as defined in section 336.4A-401, must be on or 
        before the 14th day of the month following the month in which 
        the taxable event occurred, except for 75 percent of the 
        estimated June liability, which is due two business days before 
        June 30.  The remaining amount of the June liability is due on 
        August 14.  If the date the tax is due is not a funds transfer 
        business day, as defined in section 336.4A-105, paragraph (a), 
        clause (4), the payment date must be on or before the funds 
        transfer business day next following the date the tax is due. 
           (e) (d) If the vendor required to remit by electronic funds 
        transfer as provided in paragraph (d) (c) is unable due to 
        reasonable cause to determine the actual sales and use tax due 
        on or before the due date for payment, the vendor may remit an 
        estimate of the tax owed using one of the following options: 
           (1) 100 percent of the tax reported on the previous month's 
        sales and use tax return; 
           (2) 100 percent of the tax reported on the sales and use 
        tax return for the same month in the previous calendar year; or 
           (3) 95 percent of the actual tax due. 
           Any additional amount of tax that is not remitted on or 
        before the due date for payment, must be remitted with the 
        return.  A vendor must notify the commissioner of the option 
        that will be used to estimate the tax due, and must obtain 
        approval from the commissioner to switch to another option.  If 
        a vendor fails to remit the actual liability or does not remit 
        using one of the estimate options by the due date for payment, 
        the vendor must remit actual liability as provided in paragraph 
        (d) (c) in all subsequent periods.  This paragraph does not 
        apply to the June sales and use tax liability. 
           Sec. 9.  Minnesota Statutes 1993 Supplement, section 
        297A.01, subdivision 15, is amended to read: 
           Subd. 15.  "Farm machinery" means new or used machinery, 
        equipment, implements, accessories, and contrivances used 
        directly and principally in the production for sale, but not 
        including the processing, of livestock, dairy animals, dairy 
        products, poultry and poultry products, fruits, vegetables, 
        forage, grains and bees and apiary products.  "Farm machinery"  
        includes: 
           (1) machinery for the preparation, seeding or cultivation 
        of soil for growing agricultural crops and sod, harvesting and 
        threshing of agricultural products, harvesting or mowing of sod, 
        and certain machinery for dairy, livestock and poultry farms; 
           (2) barn cleaners, milking systems, grain dryers, automatic 
        feeding systems and similar installations, whether or not the 
        equipment is installed by the seller and becomes part of the 
        real property; 
           (3) irrigation equipment sold for exclusively agricultural 
        use, including pumps, pipe fittings, valves, sprinklers and 
        other equipment necessary to the operation of an irrigation 
        system when sold as part of an irrigation system, except 
        irrigation equipment which is situated below ground and 
        considered to be a part of the real property whether or not the 
        equipment is installed by the seller and becomes part of the 
        real property; 
           (4) logging equipment, including chain saws used for 
        commercial logging; 
           (5) fencing used for the containment of farmed cervidae, as 
        defined in section 17.451, subdivision 2; and 
           (6) primary and backup generator units used to generate 
        electricity for the purpose of operating farm machinery, as 
        defined in this subdivision, or providing light or space heating 
        necessary for the production of livestock, dairy animals, dairy 
        products, or poultry and poultry products.  
           Repair or replacement parts for farm machinery shall not be 
        included in the definition of farm machinery.  
           Tools, shop equipment, grain bins, feed bunks, fencing 
        material except fencing material covered by clause (5), 
        communication equipment and other farm supplies shall not be 
        considered to be farm machinery.  "Farm machinery" does not 
        include motor vehicles taxed under chapter 297B, snowmobiles, 
        snow blowers, lawn mowers except those used in the production of 
        sod for sale, garden-type tractors or garden tillers and the 
        repair and replacement parts for those vehicles and machines. 
           Sec. 10.  Minnesota Statutes 1993 Supplement, section 
        297A.07, subdivision 1, is amended to read: 
           Subdivision 1.  [HEARINGS.] If any person fails to comply 
        with this chapter or the rules adopted under this chapter, 
        without reasonable cause, the commissioner may schedule a 
        hearing requiring the person to show cause why the permit should 
        not be revoked.  The commissioner must give the person 15 days' 
        notice in writing, specifying the time and place of the hearing 
        and the reason for the proposed revocation give the person 30 
        days' notice in writing, specifying the violations, and that 
        based upon such violations the commissioner intends to revoke 
        the person's permit.  The notice shall also advise the person of 
        the person's right to contest the revocation under this 
        subdivision, and the general procedures for a contested case 
        hearing under chapter 14, and the notice requirement under 
        subdivision 2.  The notice may be served personally or by mail 
        in the manner prescribed for service of an order of assessment.  
        A permit is revoked when the commissioner serves a notice of 
        revocation of permit upon the person after 30 days have passed 
        following the date of the notice of intent to revoke without the 
        person requesting a hearing, or if a hearing is timely 
        requested, and held, after the commissioner serves an order of 
        revocation of permit under section 14.62, subdivision 1.  
           Sec. 11.  Minnesota Statutes 1992, section 297A.25, 
        subdivision 9, is amended to read: 
           Subd. 9.  [MATERIALS CONSUMED IN PRODUCTION.] The gross 
        receipts from the sale of and the storage, use, or consumption 
        of all materials, including chemicals, fuels, petroleum 
        products, lubricants, packaging materials, including returnable 
        containers used in packaging food and beverage products, feeds, 
        seeds, fertilizers, electricity, gas and steam, used or consumed 
        in agricultural or industrial production of personal property 
        intended to be sold ultimately at retail, whether or not the 
        item so used becomes an ingredient or constituent part of the 
        property produced are exempt.  Seeds, trees, fertilizers, and 
        herbicides purchased for use by farmers in the Conservation 
        Reserve Program under United States Code, title 16, section 
        590h, the Integrated Farm Management Program under section 1627 
        of Public Law Number 101-624, the Wheat and Feed Grain Programs 
        under sections 301 to 305 and 401 to 405 of Public Law Number 
        101-624, and the conservation reserve program under sections 
        103F.505 to 103F.531, are included in this exemption.  Chemicals 
        used for cleaning food processing machinery and equipment are 
        included in this exemption.  Materials, including chemicals, 
        fuels, and electricity purchased by persons engaged in 
        agricultural or industrial production to treat waste generated 
        as a result of the production process are included in this 
        exemption.  Such production shall include, but is not limited 
        to, research, development, design or production of any tangible 
        personal property, manufacturing, processing (other than by 
        restaurants and consumers) of agricultural products whether 
        vegetable or animal, commercial fishing, refining, smelting, 
        reducing, brewing, distilling, printing, mining, quarrying, 
        lumbering, generating electricity and the production of road 
        building materials.  Such production shall not include painting, 
        cleaning, repairing or similar processing of property except as 
        part of the original manufacturing process.  Machinery, 
        equipment, implements, tools, accessories, appliances, 
        contrivances, furniture and fixtures, used in such production 
        and fuel, electricity, gas or steam used for space heating or 
        lighting, are not included within this exemption; however, 
        accessory tools, equipment and other short lived items, which 
        are separate detachable units used in producing a direct effect 
        upon the product, where such items have an ordinary useful life 
        of less than 12 months, are included within the exemption 
        provided herein.  Electricity used to make snow for outdoor use 
        for ski hills, ski slopes, or ski trails is included in this 
        exemption. 
           Sec. 12.  Minnesota Statutes 1993 Supplement, section 
        297A.25, subdivision 11, is amended to read: 
           Subd. 11.  [SALES TO GOVERNMENT.] The gross receipts from 
        all sales, including sales in which title is retained by a 
        seller or a vendor or is assigned to a third party under an 
        installment sale or lease purchase agreement under section 
        465.71, of tangible personal property to, and all storage, use 
        or consumption of such property by, the United States and its 
        agencies and instrumentalities, the University of Minnesota, 
        state universities, community colleges, technical colleges, 
        state academies, the Minnesota center for arts education, and 
        school districts are exempt. 
           As used in this subdivision, "school districts" means 
        public school entities and districts of every kind and nature 
        organized under the laws of the state of Minnesota, including, 
        without limitation, school districts, intermediate school 
        districts, education districts, educational cooperative service 
        units, secondary vocational cooperative centers, special 
        education cooperatives, joint purchasing cooperatives, 
        telecommunication cooperatives, regional management information 
        centers, technical colleges, joint vocational technical 
        districts, and any instrumentality of a school district, as 
        defined in section 471.59. 
           Sales exempted by this subdivision include sales under 
        section 297A.01, subdivision 3, paragraph (f), but do not 
        include sales under section 297A.01, subdivision 3, paragraph 
        (j), clause (vii).  
           Sales to hospitals and nursing homes owned and operated by 
        political subdivisions of the state are exempt under this 
        subdivision.  
           The sales to and exclusively for the use of libraries of 
        books, periodicals, audio-visual materials and equipment, 
        photocopiers for use by the public, and all cataloging and 
        circulation equipment, and cataloging and circulation software 
        for library use are exempt under this subdivision.  For purposes 
        of this paragraph "libraries" means libraries as defined in 
        section 134.001, county law libraries under chapter 134A, the 
        state library under section 480.09, and the legislative 
        reference library. 
           Sales of supplies and equipment used in the operation of an 
        ambulance service owned and operated by a political subdivision 
        of the state are exempt under this subdivision provided that the 
        supplies and equipment are used in the course of providing 
        medical care.  Sales to a political subdivision of repair and 
        replacement parts for emergency rescue vehicles and fire trucks 
        and apparatus are exempt under this subdivision.  
           Sales to a political subdivision of machinery and 
        equipment, except for motor vehicles, used directly for mixed 
        municipal solid waste collection and disposal services at a 
        solid waste disposal facility as defined in section 115A.03, 
        subdivision 10, are exempt under this subdivision.  
           Sales to political subdivisions of chore and homemaking 
        services to be provided to elderly or disabled individuals are 
        exempt. 
           This exemption shall not apply to 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 building or facility.  This exemption does not apply to 
        construction materials purchased by tax exempt entities or their 
        contractors to be used in constructing buildings or facilities 
        which will not be used principally by the tax exempt entities. 
           This exemption does not apply to the leasing of a motor 
        vehicle as defined in section 297B.01, subdivision 5, except for 
        leases entered into by the United States or its agencies or 
        instrumentalities.  
           The tax imposed on sales to political subdivisions of the 
        state under this section applies to all political subdivisions 
        other than those explicitly exempted under this subdivision, 
        notwithstanding section 115A.69, subdivision 6, 116A.25, 
        360.035, 458A.09, 458A.30, 458D.23, 469.101, subdivision 2, 
        469.127, 473.394, 473.448, 473.545, or 473.608 or any other law 
        to the contrary enacted before 1992. 
           Sales exempted by this subdivision include sales made to 
        other states or political subdivisions of other states are 
        exempt, if the sale would be exempt from taxation if it occurred 
        in that state, but do not include sales under section 297A.01, 
        subdivision 3, paragraphs (c) and (e). 
           Sec. 13.  [REPEALER.] 
           Minnesota Statutes 1992, section 297A.07, subdivision 2, is 
        repealed. 
           Sec. 14.  [EFFECTIVE DATE.] 
           Sections 1 to 6 are effective July 1, 1994.  
           Section 8 is effective the day following final enactment.  
           Section 7 is effective for returns due after December 31, 
        1994.  
           Sections 9, 11, and 12 are effective for sales occurring 
        after June 30, 1994.  
           Sections 10 and 13 are effective for notices dated after 
        January 1, 1995.  
                                   ARTICLE 4 
                                  COLLECTIONS
           Section 1.  Minnesota Statutes 1992, section 270.10, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [APPEAL; PAYMENT OF ORDER.] No collection action 
        may be taken, including the filing of liens under section 
        270.69, and no penalties may be imposed if an order of the 
        commissioner, excluding orders relating to property tax matters, 
        is paid: 
           (1) within 60 days after notice and demand for payment of 
        the order have been mailed to the taxpayer; or 
           (2) if an administrative appeal or a tax court appeal under 
        chapter 271 is timely filed, within 60 days following final 
        determination of the appeal if the appeal is based upon a 
        constitutional challenge to the tax, and if not, when the 
        decision of the tax court is made. 
           Sec. 2.  [270.102] [SUCCESSOR LIABILITY OF BUSINESSES.] 
           Subdivision 1.  [DEFINITIONS.] (a) The following terms used 
        in this section have the following meanings. 
           (b) "Successor" means a person who directly or indirectly 
        purchases, acquires, is gifted, or succeeds to the business or 
        stock of goods of any person quitting, selling, or otherwise 
        disposing of a business or stock of goods.  Successor does not 
        include a personal representative or beneficiary of an estate.  
           (c) "Person" means an individual, partnership, corporation, 
        sole proprietorship, joint venture, limited liability company, 
        or any other type of business entity or association.  
           (d) "Withhold" means setting aside money or dealing with 
        the payment of consideration in a manner that denies a 
        transferring business the benefit of the transfer in an amount 
        equal to the sales and withholding tax liability of the 
        transferring business.  
           (e) "Purchase price" means the consideration paid or to be 
        paid for the transfer by the successor to the transferring 
        business, and includes amounts paid for tangible property or 
        intangibles such as leases, licenses, or goodwill.  Purchase 
        price also includes debts assumed or forgiven by the successor, 
        or real or personal property conveyed or to be conveyed by the 
        successor to the transferring business.  
           (f) "Arm's length transaction" means a transfer for 
        adequate consideration between independent parties both acting 
        in their own best interests.  If the parties are related to each 
        other, a rebuttable presumption arises that the transaction is 
        not at arm's length.  
           (g) "Transfer" means every mode, direct or indirect, 
        absolute or conditional, voluntary or involuntary, of disposing 
        of or parting with a business or an interest in a business, or a 
        stock of goods, whether by gift or for consideration.  Transfer 
        includes a change in the type of business entity or the name of 
        the business, where one business is discontinued and a new one 
        started.  Transfer also includes the acquisition by a new 
        corporation of the assets of a prior business in exchange for 
        the stock of the new corporation.  
           Subd. 2.  [BULK TRANSFERS; LIABILITY OF SUCCESSOR; 
        LIEN.] (a) Whenever a business transfers in bulk to a successor 
        all or any part of the business assets, other than in the 
        ordinary course of business, and a lien for unpaid sales and 
        withholding taxes has been filed against the business by the 
        commissioner under section 270.69 in the office of the secretary 
        of state or in the office of the county recorder for the county 
        in which the business is located, at least 20 days before taking 
        possession of the assets or paying the purchase price, the 
        successor shall notify the commissioner of the transfer and the 
        terms and conditions related to it.  The notice must include the 
        tax identification number of the transferring business.  
           (b) If the successor fails to give the notice required in 
        paragraph (a), the successor is liable for any unpaid sales and 
        withholding taxes, interest, and penalties due from the 
        transferring business to the extent of the purchase price.  If 
        the successor provides the notice required in paragraph (a) and, 
        within 20 days after receipt of the notice, the commissioner 
        notifies the successor that tax liabilities exist in addition to 
        those included on the lien or there are sales and withholding 
        tax returns due but not filed, the successor is, in addition to 
        being liable for the amounts included on the lien, liable for 
        all other uncontested sales and withholding taxes, interest, and 
        penalties as stated in the commissioner's notice from the 
        transferring business to the extent the successor pays the 
        purchase price or takes possession of the assets without 
        withholding and remitting the liability to the commissioner.  
        The successor is liable whether the purchase price is paid or 
        the assets are transferred prior to or after notification from 
        the commissioner.  The commissioner may also notify the 
        successor that there are no sales or withholding tax liabilities 
        or returns due from the transferring business other than the 
        liabilities included on the lien, and of the current balance due 
        to satisfy the lien. 
           (c) The commissioner shall have a first priority lien for 
        all consideration paid or to be paid toward the purchase price 
        when the requirements of this section have not been met.  
           (d) If, based upon the information available, the 
        commissioner determines that a transfer was not at arm's length 
        or was a gift, the successor's liability under this section 
        equals the value of the assets transferred.  For purposes of 
        imposing the liability, the value of the property transferred is 
        presumed to equal the unpaid sales and withholding taxes, 
        interest, and penalties of the transferring business. 
           (e) In the case of a gift resulting in successor liability 
        under this section, return of the gifted property by the donee 
        to the donor releases the donee's successor liability.  
           (f) The liability imposed by this section does not include 
        assignments for the benefit of creditors under chapter 577, 
        foreclosures of mortgages under chapters 580 to 582 or of 
        security interests arising under article 9 of the Uniform 
        Commercial Code, or sales by trustees in bankruptcy.  
           (g) A successor who complies with the requirements of 
        paragraphs (a) and (b) is not liable for any assessments of 
        sales and withholding taxes of the transferring business made 
        after the commissioner provides notice to the successor under 
        paragraph (b), except for taxes assessed on returns filed to 
        comply with the notice.  If the commissioner fails to provide 
        the notice and the 20-day period expires, the successor is not 
        liable for any sales and withholding taxes of the transferring 
        business other than those included on the lien.  
           Subd. 3.  [ASSESSMENT PROCEDURE; NO STAY ON COLLECTION 
        REMEDIES.] The commissioner may assess liability under this 
        section within the time prescribed for collecting the underlying 
        sales and withholding taxes, interest, and penalties.  The 
        assessment is presumed to be valid, and the burden is upon the 
        successor to show it is incorrect or invalid.  An order 
        assessing successor liability is reviewable administratively 
        under section 289A.65 and is appealable to tax court under 
        chapter 271.  Collection remedies available against the 
        transferring business are available against the successor from 
        the date of assessment of successor liability.  
           Subd. 4.  [DISCLOSURE.] Notification by the commissioner to 
        the successor under subdivision 2, paragraph (b), that the 
        transferring business owes sales and withholding taxes, 
        interest, and penalties or has returns that are due, or that 
        there are no outstanding liabilities or returns other than the 
        liabilities included on the lien, or of the current balance due 
        to satisfy the lien, is not a disclosure violation under chapter 
        270B.  
           Sec. 3.  Minnesota Statutes 1992, section 270.69, 
        subdivision 4, is amended to read: 
           Subd. 4.  [PERIOD OF LIMITATIONS.] The lien imposed by this 
        section shall, notwithstanding any other provision of law to the 
        contrary, be enforceable from the time the lien arises and for 
        ten years from the date of filing the notice of lien, which must 
        be filed by the commissioner within five years after the date of 
        assessment of the tax or final administrative or judicial 
        determination of the assessment.  A notice of lien filed in one 
        county may be transcribed to any other county within ten years 
        after the date of its filing, but the transcription shall not 
        extend the period during which the lien is enforceable.  A 
        notice of lien may be renewed by the commissioner before the 
        expiration of the ten-year period for an additional ten years.  
        The taxpayer must receive written notice of the renewal. 
           Sec. 4.  Minnesota Statutes 1992, section 270.69, is 
        amended by adding a subdivision to read: 
           Subd. 15.  [ASSIGNMENT OF LIENS.] The commissioner may sell 
        and assign to a third party the right of redemption in specific 
        real property for liens filed under this section.  The 
        redemption in the hands of the assignee shall not be enforceable 
        by any of the collection remedies provided to the commissioner 
        by law.  The assignee is limited to the same rights of 
        redemption the commissioner would have in any mortgage 
        foreclosure proceeding, but in any bankruptcy proceeding does 
        not obtain the priority of the commissioner as a tax claimant.  
        Should the taxpayer or its assigns exercise the right of 
        redemption the assignment by the commissioner is extinguished. 
           Sec. 5.  Minnesota Statutes 1992, section 270.70, 
        subdivision 2, is amended to read: 
           Subd. 2.  [NOTICE AND DEMAND; COLLECTION BY LEVY; JEOPARDY 
        COLLECTION.] (a) Before a levy is made, notice and demand for 
        payment of the amount due must be given to the person liable for 
        the payment or collection of the tax at least 30 days prior to 
        the levy.  If the commissioner has reason to believe that 
        collection of the tax is in jeopardy, notice and demand for 
        immediate payment of the tax may be made by the commissioner.  
        If the tax is not paid, the commissioner may proceed to collect 
        by levy without regard to the period provided herein.  The 
        notice required under this subdivision paragraph must be sent to 
        the taxpayer's last known address and must include a brief 
        statement that sets forth in simple and nontechnical terms: 
           (1) the administrative appeals available to the taxpayer 
        with respect to the levy and sale; and 
           (2) the alternatives available to the taxpayer that can 
        prevent a levy, including installment payment agreements under 
        section 270.67, subdivision 2. 
           (b) Notwithstanding the stay of collection provisions in 
        sections 270.10, subdivision 5, and 289A.37, subdivision 1, 
        paragraph (b), and the notice provisions in paragraph (a), if 
        the commissioner has reason to believe that collection of the 
        tax is in jeopardy, notice and demand for immediate payment of 
        the tax may be made.  If the tax is not paid, the commissioner 
        may proceed to collect by levy.  
           Sec. 6.  Minnesota Statutes 1992, section 270.72, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [TAX CLEARANCE REQUIRED.] The state or a 
        political subdivision of the state may not issue, transfer, or 
        renew a license for the conduct of a profession, occupation, 
        trade, or business, if the commissioner notifies the licensing 
        authority that the applicant owes the state delinquent taxes, 
        penalties, or interest.  The commissioner may not notify the 
        licensing authority unless the applicant taxpayer owes $500 or 
        more in delinquent taxes or has not filed returns.  If the 
        applicant taxpayer does not owe delinquent taxes but has not 
        filed returns, the commissioner may not notify the licensing 
        authority unless the taxpayer has been given 90 days' written 
        notice to file the returns or show that the returns are not 
        required to be filed.  A licensing authority that has received a 
        notice from the commissioner may issue, transfer, or renew the 
        applicant's license only if (a) the commissioner issues a tax 
        clearance certificate and (b) the commissioner or the applicant 
        forwards a copy of the clearance to the authority.  The 
        commissioner may issue a clearance certificate only if the 
        applicant does not owe the state any uncontested delinquent 
        taxes, penalties, or interest and has filed all required returns.
           Sec. 7.  [270.79] [REFUNDS PAYABLE IN INSTALLMENTS.] 
           Subdivision 1.  [LAW HELD UNCONSTITUTIONAL.] Where there is 
        (1) a final judicial determination that a tax law is 
        unconstitutional, is in violation of state or federal law, or 
        that a regulation or statute has been misinterpreted by the 
        department; and (2) the determination is not limited to 
        prospective application, the procedures in this section relating 
        to refunds attributable to that determination apply.  
           Subd. 2.  [ESTIMATE OF CUMULATIVE REFUNDS.] The 
        commissioner shall estimate the cumulative refunds due resulting 
        from the judicial determination.  
           Subd. 3.  [GENERAL REFUND PROVISIONS.] If the commissioner 
        determines that the cumulative refunds due all affected 
        taxpayers will not exceed $50,000,000, the general provisions 
        for refunding for the particular tax type apply.  
           Subd. 4.  [REFUND PROCEDURES.] (a) If the commissioner 
        determines that the cumulative refunds due all affected 
        taxpayers will exceed $50,000,000, the refund procedures in this 
        subdivision apply.  
           (b) The refunds due shall be paid in installments beginning 
        after July 1 of the calendar year following the later of the 
        filing of the refund claim or the final judicial determination 
        and ending in the fifth calendar year or at the time that the 
        return for that calendar year is filed. 
           (c) The refunds shall be paid in the form of refundable 
        credits claimed on the tax return for the tax type giving rise 
        to the refund. 
           (d) In the case of annual returns the credit allowable must 
        be claimed on the annual return.  When returns are filed on 
        other than an annual basis, the allowable credit must be claimed 
        on the first return due after July 1 of a calendar year. 
           (e) The credit allowed for each year equals 20 percent of 
        the claimed refund unless the commissioner determines that the 
        cumulative refunds due for a particular year under this section 
        will exceed $150,000,000.  If the refunds payable will exceed 
        that amount, the claimed refunds will be reduced pro rata with 
        any balance remaining due payable with the final refund 
        installment. 
           (f) Unless contrary to the provisions in this section, the 
        provisions for refunds in the various tax types, including 
        provisions related to the payment of interest, apply to the 
        refunds subject to these provisions.  
           (g) The commissioner may establish a deminimis individual 
        refund amount below which the installment provisions do not 
        apply.  The amount established under this paragraph is not 
        subject to the provisions of chapter 14. 
           Sec. 8.  Minnesota Statutes 1992, section 270B.14, is 
        amended by adding a subdivision to read: 
           Subd. 14.  [DISCLOSURE TO SECRETARY OF STATE.] The 
        commissioner may disclose return information to the secretary of 
        state to the extent necessary to verify that the annual fee 
        collected from a foreign corporation under section 303.07, 
        subdivision 2, is the correct amount due. 
           Sec. 9.  Minnesota Statutes 1992, section 289A.37, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ORDER OF ASSESSMENT; NOTICE AND DEMAND TO 
        TAXPAYER.] (a) When a return has been filed and the commissioner 
        determines that the tax disclosed by the return is different 
        than the tax determined by the examination, the commissioner 
        shall send an order of assessment to the taxpayer.  When no 
        return has been filed, the commissioner may make a return for 
        the taxpayer under section 289A.35 or may send an order of 
        assessment under this subdivision.  The order must explain the 
        basis for the assessment and must explain the taxpayer's appeal 
        rights.  An order of assessment is final when made but may be 
        reconsidered by the commissioner under section 289A.65. 
           (b) The penalty under section 289A.60, subdivision 1, is 
        not imposed and no collection action can be taken, including the 
        filing of liens under section 270.69, if the amount shown on the 
        order is paid to the commissioner:  (1) within 60 days after 
        notice of the amount and demand for its payment have been mailed 
        to the taxpayer by the commissioner; or (2) if an administrative 
        appeal is filed under section 289A.65 or a tax court appeal is 
        filed under chapter 271, within 60 days following final 
        determination of the appeal if the appeal is based upon a 
        constitutional challenge to the tax, and if not, when the 
        decision of the tax court is made. 
           Sec. 10.  [EFFECTIVE DATE.] 
           Sections 1, 3 to 6, 8, and 9 are effective the day 
        following final enactment.  Section 2 is effective for business 
        transfers, acquisitions, successions, or dissolutions on or 
        after January 1, 1995. 
           Section 7 is effective for refunds resulting from final 
        determinations made on or after the day following final 
        enactment, including refunds resulting from appeals that were 
        filed before that date but finally determined on or after that 
        date.  
                                   ARTICLE 5 
                                PETROLEUM TAXES 
           Section 1.  Minnesota Statutes 1992, section 239.05, 
        subdivision 10a, is amended to read: 
           Subd. 10a.  [OXYGENATE.] "Oxygenate" means agriculturally 
        derived, denatured ethanol, ETBE, MTBE, or other alcohol or 
        ether, approved as an oxygenate by the United States 
        Environmental Protection Agency. 
           Sec. 2.  Minnesota Statutes 1992, section 239.761, 
        subdivision 3, is amended to read: 
           Subd. 3.  [GASOLINE.] Gasoline that is not blended with 
        ethanol must not be contaminated with water or other impurities 
        and must comply with ASTM specification D 439-89 D 4814-92c.  
        Gasoline that is not blended with ethanol must also comply with 
        the volatility requirements in Code of Federal Regulations, 
        title 40, part 80.  After gasoline is sold, transferred, or 
        otherwise removed from a refinery or terminal, a person 
        responsible for the product: 
           (1) may blend the gasoline with agriculturally derived 
        ethanol as provided in subdivision 4; 
           (2) shall not blend the gasoline with any oxygenate other 
        than denatured, agriculturally derived ethanol; 
           (3) shall not blend the gasoline with other petroleum 
        products that are not gasoline or denatured, agriculturally 
        derived ethanol; 
           (4) shall not blend the gasoline with products commonly and 
        commercially known as casinghead gasoline, absorption gasoline, 
        condensation gasoline, drip gasoline, or natural gasoline; and 
           (5) may blend the gasoline with a detergent additive, an 
        antiknock additive, or an additive designed to replace 
        tetra-ethyl lead, that is registered by the EPA. 
           Sec. 3.  Minnesota Statutes 1992, section 296.01, 
        subdivision 14, is amended to read: 
           Subd. 14.  [DIESEL FUEL OIL.] "Diesel fuel oil" means a 
        petroleum distillate or blend of petroleum distillate and 
        residual fuels, intended for use as a motor fuel in internal 
        combustion diesel engines, that meets the specifications in ASTM 
        specification D 975-90.  Diesel fuel includes number 1 and 
        number 2 fuel oils.  K-1 kerosene is not diesel fuel unless it 
        is blended with diesel fuel for use in motor vehicles.  
           Sec. 4.  Minnesota Statutes 1992, section 296.01, is 
        amended by adding a subdivision to read: 
           Subd. 15a.  [DYED FUEL.] "Dyed fuel" means diesel fuel that 
        indelible dye has been added to either before or upon withdrawal 
        at a terminal or refinery rack, and which may be sold for exempt 
        purposes.  The dye may be either dye required to be added per 
        the Environmental Protection Agency or dye that meets other 
        specifications required by the Internal Revenue Service or the 
        department. 
           Sec. 5.  Minnesota Statutes 1992, section 296.01, is 
        amended by adding a subdivision to read: 
           Subd. 15b.  [ETBE.] "ETBE" means "ethyl tertiary butyl 
        ether," or the equivalent term "tert-butyl ethyl ether."  ETBE 
        is a hydrocarbon compound approved by the United States 
        Environmental Protection Agency for use as an oxygenate in 
        gasoline.  ETBE is a liquid at normal atmospheric pressure and 
        temperature.  The chemical composition of ETBE is C\T2\tH\T5\tOC(CH\T3\t)\T3\t.
           Sec. 6.  Minnesota Statutes 1992, section 296.01, 
        subdivision 18, is amended to read: 
           Subd. 18.  [GASOLINE.] "Gasoline" means:  
           (a) all products commonly or commercially known or sold as 
        gasoline regardless of their classification or uses, except 
        casinghead gasoline, absorption gasoline, condensation gasoline, 
        drip gasoline, or natural gasoline that under the requirements 
        of section 239.761, subdivision 3, must not be blended with 
        gasoline that has been sold, transferred, or otherwise removed 
        from a refinery or terminal; and 
           (b) any liquid prepared, advertised, offered for sale or 
        sold for use as, or commonly and commercially used as, a fuel in 
        spark-ignition, internal combustion engines, and that when 
        tested by the weights and measures division meets the 
        specifications in ASTM specification D 439-89 D 4814-92c. 
           (c) Gasoline that is not blended with ethanol must not be 
        contaminated with water or other impurities and must comply with 
        both ASTM specification D 439-89 and the volatility requirements 
        in Code of Federal Regulations, title 40, part 80. 
           (d) After gasoline is sold, transferred, or otherwise 
        removed from a refinery or terminal, a person responsible for 
        the product: 
           (1) may blend the gasoline with agriculturally derived 
        ethanol, as provided in subdivision 20; 
           (2) must not blend the gasoline with any oxygenate other 
        than denatured, agriculturally derived ethanol; 
           (3) must not blend the gasoline with other petroleum 
        products that are not gasoline or denatured, agriculturally 
        derived ethanol; 
           (4) must not blend the gasoline with products commonly and 
        commercially known as casinghead gasoline, absorption gasoline, 
        condensation gasoline, drip gasoline, or natural gasoline; and 
           (5) may blend the gasoline with a detergent additive, an 
        antiknock additive, or an additive designed to replace 
        tetra-ethyl lead, that is registered by the United States 
        Environmental Protection Agency. 
           Sec. 7.  Minnesota Statutes 1992, section 296.01, 
        subdivision 19, is amended to read: 
           Subd. 19.  [GASOLINE BLENDED WITH AN A NONETHANOL 
        OXYGENATE.] "Gasoline blended with an a nonethanol oxygenate" 
        means gasoline blended with an ETBE, MTBE, or other alcohol or 
        ether, other than except denatured ethanol, that is approved as 
        an oxygenate by the United States Environmental Protection 
        Agency, and that complies with ASTM specification D 4814-90a.  
        Oxygenates, other than denatured ethanol, must not be blended 
        into gasoline after the gasoline has been sold, transferred, or 
        otherwise removed from a refinery or terminal. 
           Sec. 8.  Minnesota Statutes 1992, section 296.01, 
        subdivision 20, is amended to read: 
           Subd. 20.  [GASOLINE BLENDED WITH ETHANOL.] "Gasoline 
        blended with ethanol" means gasoline blended with up to ten 
        percent, by volume, agriculturally derived, denatured ethanol.  
        The blend must comply with the volatility requirements in Code 
        of Federal Regulations, title 40, part 80.  The blend must also 
        comply with ASTM specification D 4814-90a, except when subjected 
        to a standard distillation test. or the gasoline base stock from 
        which a gasoline-ethanol blend was produced must comply with 
        ASTM specification D 4814-90a; and the gasoline-ethanol blend 
        must not be blended with casing head gasoline, absorption 
        gasoline, condensation gasoline, drip gasoline, or natural 
        gasoline after the gasoline-ethanol blend has been sold, 
        transferred, or otherwise removed from a refinery or terminal.  
        The blend need not comply with ASTM specification D 4814-90a if 
        it is subjected to a standard distillation test.  For a 
        distillation test, a gasoline-ethanol blend is not required to 
        comply with the temperature specification at the 50 percent 
        liquid recovery point, if the gasoline from which the 
        gasoline-ethanol blend was produced complies with all of the 
        distillation specifications. 
           Sec. 9.  Minnesota Statutes 1992, section 296.01, is 
        amended by adding a subdivision to read: 
           Subd. 24a.  [MTBE.] "MTBE" means "methyl tertiary butyl 
        ether," or the equivalent term "tert-butyl methyl ether."  MTBE 
        is a hydrocarbon compound approved by the United States 
        Environmental Protection Agency for use as an oxygenate in 
        gasoline.  MTBE is a liquid at normal atmospheric pressure and 
        temperature.  The chemical composition of MTBE is (CH\T3\t)\T3\tCOCH\T3\t. 
           Sec. 10.  Minnesota Statutes 1992, section 296.01, 
        subdivision 32, is amended to read: 
           Subd. 32.  [RECEIVED.] (a) Except as otherwise provided in 
        this subdivision, petroleum products brought into this state 
        shall be deemed to be "received" in this state at the time and 
        place the same are unloaded in this state.  When so unloaded 
        such products shall be deemed to be "received" in this state by 
        the person who is the owner thereof immediately after such 
        unloading; provided, however, that if such owner is not licensed 
        as a distributor in this state and if such products were shipped 
        or delivered into this state by a person who is licensed as a 
        distributor, then such products shall be deemed to be "received" 
        in this state by the licensed distributor by whom the same were 
        so shipped or delivered. 
           (b) Petroleum products produced, manufactured, or refined, 
        at a refinery in this state and stored thereat, or brought into 
        the state by boat or barge or like form of transportation and 
        delivered at a marine terminal in this state and stored thereat, 
        or brought into the state by pipeline and delivered at a 
        pipeline terminal in this state and stored thereat, shall not be 
        considered "received" until the same are withdrawn from such 
        refinery or terminal for sale or use in this state or for 
        delivery or shipment to points within this state.  
           (c) When so withdrawn such products shall be deemed 
        "received" by the person who was the owner thereof immediately 
        prior to withdrawal; unless (1) such products are withdrawn for 
        shipment or delivery to another licensed distributor, in which 
        case the licensed distributor to whom such shipment or delivery 
        is made shall be deemed to have "received" such products in this 
        state, or (2) such products are withdrawn for shipment or 
        delivery to a person not licensed as a distributor, pursuant to 
        one or more sale or exchange agreements by or between persons 
        one or more of whom is a licensed distributor, in which case the 
        last purchaser or exchangee under such agreement or agreements, 
        who is licensed as a distributor, shall be deemed to have 
        "received" such products in this state. 
           (d) Petroleum products produced in this state in any manner 
        other than as covered heretofore in this subdivision shall be 
        considered "received" by the producer thereof at the time and 
        place produced.  
           Sec. 11.  Minnesota Statutes 1992, section 296.01, 
        subdivision 34, is amended to read: 
           Subd. 34.  [SPECIAL FUEL.] "Special fuel" means (1) all 
        combustible gases and liquid petroleum products or substitutes 
        therefor including clear diesel fuel, except gasoline, which are 
        delivered into the supply tank of a licensed motor vehicle or 
        into storage tanks maintained by an owner or operator of a 
        licensed motor vehicle as a source of supply for such vehicle; 
        or (2) all combustible gases and liquid petroleum products or 
        substitutes therefor, except gasoline, when delivered to a 
        licensed special fuel dealer or to the retail service station 
        storage of a distributor who has elected to pay the special fuel 
        excise tax as provided in section 296.12, subdivision 3; or (3) 
        all combustible gases and liquid petroleum products or 
        substitutes therefor, except gasoline, which are used as 
        aviation fuel; or (4) dyed fuel that is being used illegally in 
        a licensed motor vehicle.  
           Sec. 12.  Minnesota Statutes 1992, section 296.01, is 
        amended by adding a subdivision to read: 
           Subd. 38.  [WET ALCOHOL.] "Wet alcohol" means 
        agriculturally derived fermentation ethyl alcohol having a 
        purity of at least 50 percent but less than 99 percent. 
           Sec. 13.  Minnesota Statutes 1992, section 296.02, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [TAX IMPOSED; EXCEPTION FOR QUALIFIED 
        SERVICE STATION.] There is imposed an excise tax on gasoline 
        used in producing and generating power for propelling motor 
        vehicles used on the public highways of this state.  For 
        purposes of this section, gasoline is defined in section 296.01, 
        subdivisions 10, 15b, 18, 19, and 20, and 24a.  This tax is 
        payable at the times, in the manner, and by persons specified in 
        this chapter.  The tax is payable at the rate specified in 
        subdivision 1b, subject to the exceptions and reductions 
        specified in this section.  
           (a) Notwithstanding any other provision of law to the 
        contrary, the tax imposed on special fuel sold by a qualified 
        service station may not exceed, or the tax on gasoline delivered 
        to a qualified service station must be reduced to, a rate not 
        more than three cents per gallon above the state tax rate 
        imposed on such products sold by a service station in a 
        contiguous state located within the distance indicated in clause 
        (b).  
           (b) A "qualifying service station" means a service station 
        located within 7.5 miles, measured by the shortest route by 
        public road, from a service station selling like product in the 
        contiguous state.  
           (c) A qualified service station shall be allowed a credit 
        by the supplier or distributor, or both, for the amount of 
        reduction computed in accordance with clause (a).  
           A qualified service station, before receiving the credit, 
        shall be registered with the commissioner of revenue.  
           Sec. 14.  Minnesota Statutes 1992, section 296.025, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [TAX IMPOSED FOR MOTOR VEHICLE USE.] There 
        is hereby imposed an excise tax of the same rate per gallon as 
        the gasoline excise tax on all special fuel.  For clear diesel 
        fuel, the tax is imposed on the first distributor who received 
        the product in Minnesota.  For dyed fuel being used illegally in 
        a licensed motor vehicle, the tax is imposed on the owner or 
        operator of the motor vehicle, or in some instances, on the 
        dealer who supplied the fuel.  For dyed fuel used in a motor 
        vehicle but subject to a federal exemption, although no federal 
        tax may be imposed, the fuel is subject to the state tax.  For 
        other fuels, including jet fuel, propane, and compressed natural 
        gas, the tax is imposed on the distributor, special fuel dealer, 
        or bulk purchaser.  This tax shall be is payable at the 
        time, and in the manner and by persons specified in this 
        chapter.  For purposes of this section, "owner or operator" 
        means the operation of licensed motor vehicles, whether loaded 
        or empty, whether for compensation or not for compensation, and 
        whether owned by or leased to the motor carrier who operates 
        them or causes them to be operated. 
           Sec. 15.  Minnesota Statutes 1992, section 296.025, is 
        amended by adding a subdivision to read: 
           Subd. 7.  [TAX ON INVENTORY.] For dealers paying tax on 
        sales, all inventory as of 12:01 a.m. on September 1, 1994, 
        shall be reported on the dealer's final report. 
           Sec. 16.  Minnesota Statutes 1992, section 296.06, 
        subdivision 2, is amended to read: 
           Subd. 2.  [REQUIREMENTS FOR ISSUANCE; FEE.] A distributor's 
        license shall be issued to any responsible person qualifying as 
        a distributor who makes application therefor, and who shall pay 
        to the commissioner at the time thereof and annually thereafter 
        a license fee of $25, and who shall further comply with the 
        following conditions: 
           (1) A written application shall be made in a manner 
        approved by the commissioner, who shall require the applicant or 
        licensee to deposit with the state treasurer securities of the 
        United States government or the state of Minnesota or to execute 
        and file a bond, with a corporate surety approved by the 
        commissioner, to the state of Minnesota in an amount to be 
        determined by the commissioner and in a form to be fixed by the 
        commissioner and approved by the attorney general, and which 
        shall be conditioned for the payment when due of all excise 
        taxes, inspection fees, penalties, and accrued interest arising 
        in the ordinary course of business or by reason of any 
        delinquent money which may be due the state of Minnesota; the 
        bond shall cover all places of business within the state where 
        petroleum products are received by the licensee; and the 
        applicant or licensee shall designate and maintain an agent in 
        this state upon whom service may be had for all purposes of this 
        section.  
           (2) An initial applicant for a distributor's license shall 
        furnish a bond in a minimum sum of $3,000 for the first year; 
           (3) The commissioner, on reaching the opinion that the bond 
        given by a licensee is inadequate in amount to fully protect the 
        state, shall require an additional bond in such amount as the 
        commissioner deems sufficient; 
           (4) A licensee who desires to be exempt from depositing 
        securities or furnishing such bond, as hereinbefore provided 
        shall furnish an itemized financial statement showing the assets 
        and the liabilities of the applicant and if it shall appear to 
        the commissioner, from the financial statement or otherwise, 
        that the applicant is financially responsible, then the 
        commissioner may exempt such applicant from depositing such 
        securities or furnishing such bond until the commissioner 
        otherwise orders.  
           (5) Each license period shall be for one year ending each 
        June 30.  
           (6) Upon application to the commissioner and compliance by 
        the applicant with the provisions of this subdivision, the 
        commissioner also shall issue a distributor's license to (a) any 
        person engaged in this state in the bulk storage of petroleum 
        products and the distribution thereof by tank car or tank truck 
        or both, and (b) any person holding an unrevoked license as a 
        distributor since from January 1, 1947 to July 1, 1994, and (c) 
        any person holding a license and performing a function under the 
        motor fuel tax law of an adjoining state equivalent to that of a 
        distributor under this act, who desires to ship or deliver 
        petroleum products from that state to persons in this state not 
        licensed as distributors in this state and who agrees to assume 
        with respect to all petroleum products so shipped or delivered 
        the liabilities of a distributor receiving petroleum products in 
        this state, provided, however, that any such license shall be 
        issued only for the purpose of permitting such person to receive 
        in this state the petroleum products so shipped or delivered.  
        Except as herein provided, all persons licensed as distributors 
        under this clause shall have the same rights and privileges and 
        be subject to the same duties, requirements and penalties as 
        other licensed distributors. 
           Sec. 17.  Minnesota Statutes 1992, section 296.12, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SPECIAL FUEL DEALERS' LICENSE 
        REQUIREMENTS.] No person except a licensed distributor shall 
        engage in the business of selling or delivering special fuel, 
        upon which no tax has been imposed, as a special fuel dealer 
        without having applied for and secured from the commissioner a 
        special fuel dealer's license.  The application shall be made in 
        a manner approved by the commissioner and shall be accompanied 
        by the payment of $25, which shall be the license fee.  A 
        special fuel dealer's license shall be issued to any responsible 
        person qualifying as a special fuel dealer who makes proper 
        application therefor.  The license shall be displayed in a 
        conspicuous manner in the place of business and shall expire 
        annually on November 30.  
           A special fuel dealer who discontinues, sells or disposes 
        of the business in any manner, at any time, shall surrender the 
        dealer's special fuel dealer's license at the commissioner's 
        office in St. Paul, Minnesota.  
           Sec. 18.  Minnesota Statutes 1992, section 296.12, 
        subdivision 2, is amended to read: 
           Subd. 2.  [BULK PURCHASERS' LICENSE REQUIREMENTS.] No 
        person shall receive special fuel, upon which no tax has been 
        imposed, as a bulk purchaser without having applied for and 
        secured from the commissioner a bulk purchaser's license.  The 
        application shall be made in a manner approved by the 
        commissioner and shall be accompanied by the payment of $25, 
        which shall be the license fee.  A bulk purchaser's license 
        shall be issued to any responsible person qualifying as a bulk 
        purchaser who makes proper application therefor.  The license 
        shall be displayed in a conspicuous manner in the place of 
        business and shall expire annually on November 30.  
           A bulk purchaser who discontinues, sells or disposes of the 
        business in any manner, at any time, shall surrender the bulk 
        purchaser's license at the commissioner's office in St. Paul, 
        Minnesota. 
           Sec. 19.  Minnesota Statutes 1992, section 296.12, 
        subdivision 3, is amended to read: 
           Subd. 3.  [TAX COLLECTION, REPORTING AND PAYMENT.] 
        Distributors shall pay the special fuel excise tax on all 
        combustible gases and liquid petroleum products or substitutes 
        therefor, except gasoline, delivered into storage tanks at 
        retail service stations operated by them.  (a) For clear diesel 
        fuel, the tax is imposed on the distributor who receives the 
        fuel. 
           (b) For all other special fuels, the tax is imposed on the 
        distributor, bulk purchaser, or special fuel dealer.  The tax 
        may be paid upon receipt or sale as follows:  
           (1) Distributors and special fuel dealers may, subject to 
        the approval of the commissioner, elect to pay to the 
        commissioner the special fuel excise tax on all special fuel 
        delivered or sold into the supply tank of an aircraft or a 
        licensed motor vehicle.  Under this option an invoice must be 
        issued at the time of each delivery showing the name and address 
        of the purchaser, date of sale, number of gallons, price per 
        gallon and total amount of sale.  A separate sales ticket book 
        shall be maintained for special fuel sales.; and 
           (2) Bulk purchasers shall report and pay the excise tax on 
        all special fuel purchased by them for storage, to the 
        commissioner. 
           (c) Any person delivering special fuel on which the excise 
        tax has not previously been paid, into the supply tank of an 
        aircraft or a licensed motor vehicle shall report such delivery 
        and pay the excise tax on the special fuel so delivered, to the 
        commissioner. 
           Sec. 20.  Minnesota Statutes 1992, section 296.12, 
        subdivision 4, is amended to read: 
           Subd. 4.  [MONTHLY REPORTS; SHRINKAGE ALLOWANCE.] On or 
        before the 23rd day of each month, the persons subject to the 
        provisions of this section shall file in the office of the 
        commissioner at St. Paul, Minnesota, a report in the following 
        manner: 
           (1) Distributors of clear diesel fuel must file a monthly 
        tax return with the department listing all purchases or receipts 
        of clear diesel fuel.  Distributors may be allowed to take a 
        credit or credits under section 296.14, subdivision 2.  
           (2) Distributors and special fuel dealers of special fuel 
        other than clear diesel fuel shall report the total number of 
        gallons delivered to them during the preceding calendar month 
        and shall pay the special fuel excise tax due thereon to the 
        commissioner.  Credit for the excise tax due or previously paid 
        on special fuel used by the distributor or special fuel dealer 
        for heating the distributor's or dealer's place of business, or 
        special fuel sold for any purpose other than use in licensed 
        motor vehicles and evidenced by an invoice issued at time of 
        sale, may be allowed in computing the tax liability.  The 
        invoice must show the true and correct name and address of the 
        purchaser, and the purchaser's signature.  The report shall 
        contain such other information as the commissioner may require.  
           (2) (3) Distributors and special fuel dealers of special 
        fuel other than clear diesel fuel who have elected to pay the 
        special fuel excise tax on all special fuel delivered into the 
        supply tank of an aircraft or licensed motor vehicle as provided 
        in subdivision 3, shall report the total number of gallons 
        delivered into the supply tank of an aircraft or licensed motor 
        vehicle during the preceding calendar month and shall pay the 
        special fuel excise tax due thereon to the commissioner.  
           (3) (4) Bulk purchasers shall report and pay the special 
        fuel excise tax on all special fuel except clear diesel fuel 
        purchased by them for storage, during the preceding calendar 
        month.  In such cases as the commissioner may permit, credit for 
        the excise tax due or previously paid on special fuel not used 
        in aircraft or licensed motor vehicles, may be allowed in 
        computing tax liability.  The report shall contain such other 
        information as the commissioner may require. 
           (4) (5) In computing the special fuel excise tax due under 
        clauses (1), (2), and (3), a deduction of one percent of the 
        quantity of special fuel on which tax is due shall be made for 
        evaporation and loss.  
           (5) (6) Each report shall contain a confession of judgment 
        for the amount of the tax shown due thereon to the extent not 
        timely paid.  
           Sec. 21.  Minnesota Statutes 1992, section 296.12, 
        subdivision 5, is amended to read: 
           Subd. 5.  [SALES TICKETS.] A sales ticket shall be issued 
        for each delivery of special fuel to a special fuel dealer or 
        bulk purchaser.  A sales ticket shall also be issued for each 
        delivery into the supply tank of an aircraft or a licensed motor 
        vehicle, if so requested by the purchaser.  The person who 
        delivers the special fuel shall issue the sales ticket and shall 
        show thereon the name and address of the purchaser, date of 
        sale, number of gallons, price per gallon, amount of tax, and 
        total amount of sale.  
           Sec. 22.  Minnesota Statutes 1992, section 296.12, 
        subdivision 8, is amended to read: 
           Subd. 8.  [REGISTRAR SHALL NOTIFY COMMISSIONER.] When an 
        application for registration of a motor vehicle discloses that 
        such motor vehicle uses special fuel, the registrar of motor 
        vehicles shall notify the commissioner, in written form, on an 
        annual basis, by June 30 of each year, of the name and address 
        of the owner and the make, model, year and license number of the 
        vehicle.  
           Sec. 23.  Minnesota Statutes 1992, section 296.12, 
        subdivision 10, is amended to read: 
           Subd. 10.  [ACCUMULATING METERS REQUIRED.] Every purchaser 
        licensed under subdivision 2 special fuel dealer shall make all 
        withdrawals of special fuel except liquefied petroleum gas 
        through an accumulating meter in working order, which shall be 
        provided by such bulk purchaser dealer.  Whenever a bulk 
        purchaser licensed special fuel dealer fails to comply with the 
        provisions of this subdivision or of any rules of the 
        commissioner pertinent thereto, the license issued to such bulk 
        purchaser dealer pursuant to subdivision 2 1 may be revoked by 
        the commissioner.  
           Sec. 24.  Minnesota Statutes 1992, section 296.12, 
        subdivision 11, is amended to read: 
           Subd. 11.  [QUALIFIED BULK PURCHASERS.] Notwithstanding any 
        other provision of law to the contrary, the commissioner of 
        revenue may allow any bulk purchaser who receives special fuel 
        other than clear diesel fuel in bulk storage for subsequent 
        delivery into the supply tank of passenger automobiles or other 
        licensed motor vehicles or aircraft operated by the bulk 
        purchaser to purchase bulk special fuel on a tax paid basis from 
        any consenting supplier licensed as a distributor or special 
        fuel dealer under this section or section 296.06.  Bulk 
        purchasers qualifying under this provision must become 
        registered in a manner approved by the commissioner but shall be 
        exempt from the bulk purchaser license requirements.  Every 
        licensed distributor or special fuel dealer who sells or 
        delivers special fuel other than clear diesel fuel on a tax paid 
        basis to persons registered under this provision must report on 
        or before the 23rd day of each month sales made during the 
        preceding calendar month and shall pay the special fuel excise 
        tax due thereon to the commissioner.  The report shall contain 
        information as the commissioner may require.  
           Sec. 25.  [296.141] [GASOLINE TAX; SPECIAL FUEL TAX; 
        PETROLEUM TANK RELEASE CLEANUP FEE; AND INSPECTION FEE MONTHLY 
        REPORTS.] 
           Subdivision 1.  [PAYMENT OF GASOLINE TAX AND PETROLEUM TANK 
        RELEASE CLEANUP FEE; SHRINKAGE ALLOWANCE.] On or before the 23rd 
        day of each month, every person who is required to pay a 
        gasoline tax shall file in the office of the commissioner at St. 
        Paul, Minnesota, a report in a manner approved by the 
        commissioner showing the number of gallons of petroleum products 
        received by the reporter during the preceding calendar month, 
        and other information the commissioner may require.  The number 
        of gallons of gasoline must be reported in United States 
        standard liquid gallons (231 cubic inches), except that the 
        commissioner may upon written application and for cause shown 
        permit the distributor to report the number of gallons of 
        gasoline as corrected to a 60 degree Fahrenheit temperature.  If 
        the application is granted, all gasoline covered in the 
        application and allowed by the commissioner must continue to be 
        reported by the distributor on the adjusted basis for a period 
        of one year from the date of the granting of the application.  
        The number of gallons of petroleum products other than gasoline 
        must be reported as originally invoiced. 
           Each report must show separately the number of gallons of 
        aviation gasoline received by the reporter during such calendar 
        month. 
           Each report must include the amount of gasoline tax on 
        gasoline received by the reporter during the preceding month; 
        provided that in computing the tax a deduction of three percent 
        of the quantity of gasoline received by a distributor shall be 
        made for evaporation and loss; provided further that at the time 
        of reporting, the distributor shall submit satisfactory evidence 
        that one-third of the three percent deduction has been credited 
        or paid to dealers on quantities sold to them.  The report is 
        deemed to have been filed as required in this subdivision if 
        postmarked on or before the 23rd day of the month in which 
        payable. 
           Subd. 2.  [INSPECTION FEES.] Persons required to pay an 
        inspection fee under section 239.101 must file a report.  Each 
        report must include the amount of inspection fees due on 
        petroleum products.  The report is considered filed as required 
        if postmarked on or before the 23rd day of the month in which 
        payable. 
           Subd. 3.  [ELECTRONIC FUNDS TRANSFER REQUIRED.] All 
        remittances must be made by means of electronic funds transfer 
        as defined in section 336.4A-104, paragraph (a).  The funds 
        transfer payment date, as defined in section 336.4A-401, must be 
        on or before the date the remittance is due.  If the date the 
        remittance is due is not a funds transfer business day, as 
        defined in section 336.4A-105, paragraph (a), clause (4), the 
        payment date must be on or before the funds transfer business 
        day next following the date the remittance is due. 
           Subd. 4.  [CREDIT OR REFUND OF TAX PAID.] The commissioner 
        shall allow the distributor credit or refund of the tax paid on 
        gasoline and special fuel: 
           (1) exported or sold for export from the state, other than 
        in the supply tank of a motor vehicle or of an aircraft; 
           (2) sold to the United States government to be used 
        exclusively in performing its governmental functions and 
        activities or to any "cost plus a fixed fee" contractor employed 
        by the United States government on any national defense project; 
           (3) if the fuel is placed in a tank used exclusively for 
        residential heating; 
           (4) destroyed by accident while in the possession of the 
        distributor; 
           (5) in error; 
           (6) sold for storage in an on-farm bulk storage tank, if 
        the tax was not collected on the sale; and 
           (7) in such other cases as the commissioner may permit, not 
        inconsistent with the provisions of this chapter and other laws 
        relating to the gasoline and special fuel excise taxes. 
           Subd. 5.  [REFUND TO DEALER; DESTRUCTION BY 
        ACCIDENT.] Notwithstanding the provisions of subdivision 4, the 
        commissioner shall allow a dealer a refund of the tax paid on 
        gasoline or special fuel destroyed by accident while in the 
        possession of the dealer. 
           Subd. 6.  [ON-FARM BULK STORAGE OF GASOLINE OR SPECIAL 
        FUEL; ETHYL ALCOHOL FOR PERSONAL USE.] Notwithstanding the 
        provisions of this section, the producer of ethyl alcohol which 
        is produced for personal use and not for sale in the usual 
        course of business and a farmer who uses gasoline or any special 
        fuel on which a tax has not been paid shall report and pay the 
        tax on all ethyl alcohol, gasoline, or special fuel delivered 
        into the supply tank of a licensed motor vehicle during the 
        preceding calendar year.  The tax must be reported and paid 
        together with any refund claim filed by the taxpayer under 
        section 296.18.  If no refund claim is filed, the tax must be 
        reported and paid annually by March 15 or more frequently, as 
        the commissioner may prescribe.  Any producer qualifying under 
        this subdivision is exempt from the licensing requirements 
        contained in section 296.06, subdivision 1. 
           Subd. 7.  [REFUNDS; REFRIGERATOR UNITS.] Notwithstanding 
        the provisions of subdivision 4, the commissioner shall allow a 
        special fuel dealer a refund of the tax paid on fuel sold 
        directly into a supply tank of a refrigeration unit with a 
        separate engine and used exclusively by that refrigeration 
        unit.  A claim for refund may be filed as provided in section 
        296.18, subdivision 1. 
           Sec. 26.  Minnesota Statutes 1992, section 296.15, 
        subdivision 2, is amended to read: 
           Subd. 2.  [FAILURE TO PAY TAXES; PROCEEDINGS.] Upon the 
        failure of any person to pay any tax or inspection fees within 
        the time provided by sections 296.01 to 296.421, all taxes and 
        inspection fees imposed by this chapter shall become immediately 
        due and payable, whether or not the person has previously 
        reported the tax and inspection fees to the commissioner, and 
        after the default in payment the commissioner may deliver to the 
        attorney general a certified statement of the amount due from 
        each person hereunder whose excise tax and inspection fees are 
        delinquent.  The statement shall give the address of the person 
        owing such tax and inspection fees, the month for which the tax 
        and inspection fees are due, the date of the delinquency, and 
        such other information as may be required by the attorney 
        general.  It shall be the duty of the attorney general, upon 
        receipt of the statement, to bring an action in the district 
        court of Ramsey county, or of the county in which the delinquent 
        taxpayer resides, to recover the amount of such tax and 
        inspection fees, with penalty, interest and costs and 
        disbursements, and the action may be tried in the county in 
        which it is brought.  The judgment of the court when so obtained 
        shall draw interest at the rate specified in section 270.75 and 
        shall be enforceable in the manner provided by law for the 
        enforcement of judgments obtained in civil actions and may be 
        collected as provided in chapter 270. 
           Sec. 27.  Minnesota Statutes 1992, section 296.15, 
        subdivision 4, is amended to read: 
           Subd. 4.  [RECEIVER, APPOINTMENT.] In the event suit is 
        instituted as herein provided in subdivision 2, the court shall, 
        upon application of the attorney general, appoint a receiver of 
        the property and business of the delinquent defendant for the 
        purpose of impounding the same as security for any judgment 
        which has been or may be recovered.  
           Sec. 28.  Minnesota Statutes 1992, section 296.15, 
        subdivision 5, is amended to read: 
           Subd. 5.  [SALE PROHIBITED UNDER CERTAIN CONDITIONS.] No 
        petroleum product shall be unloaded or sold by any person or 
        distributor whose tax and inspection fees have been certified to 
        the attorney general for collection are the basis for collection 
        action under subdivision 2.  
           Sec. 29.  Minnesota Statutes 1992, section 296.15, 
        subdivision 6, is amended to read: 
           Subd. 6.  [LIMITATION OF ACTIONS.] No action shall be 
        brought for the collection of delinquent excise taxes and 
        inspection fees under the provisions of this chapter section 
        270.68 unless commenced within five years after the date of 
        assessment of the taxes and fees.  In the case of a false or 
        fraudulent report with intent to evade tax or inspection fee or 
        of a failure to file a report, the taxes or fees may be assessed 
        at any time, and a proceeding in court for their collection must 
        be begun within five years after the assessment.  
           The period of time during which a tax or fee must be 
        assessed under this chapter or collection proceedings commenced 
        under this subdivision is suspended during the period from the 
        date of filing of a petition in bankruptcy until 30 days after 
        the commissioner of revenue receives notice that the bankruptcy 
        proceedings have been closed or dismissed or the automatic stay 
        has been terminated or has expired. 
           The suspension of the statute of limitations under this 
        subdivision applies to the person against whom the petition in 
        bankruptcy is filed and all other persons who may also be wholly 
        or partially liable for the tax under this chapter. 
           Sec. 30.  [296.151] [PERSONAL LIABILITY FOR TAX.] 
           Liability for payment of taxes under this chapter includes 
        a responsible person or entity described in the personal 
        liability provisions of section 270.101. 
           Sec. 31.  [296.152] [TAX AS A PERSONAL DEBT OF A 
        FIDUCIARY.] 
           The tax imposed by this chapter, and interest and 
        penalties, is a personal debt of the taxpayer from the time the 
        liability arises, regardless of when the time for discharging 
        the liability by payment occurs.  The debt is, in the case of 
        any fiduciary, that of the individual in the individual's 
        official or fiduciary capacity only, unless the individual has 
        voluntarily distributed the assets held in that capacity without 
        reserving sufficient assets to pay the tax, interest, and 
        penalties, in which event the individual is personally liable 
        for the deficiency. 
           Sec. 32.  Minnesota Statutes 1992, section 296.16, 
        subdivision 2, is amended to read: 
           Subd. 2.  [SELLER MAY COLLECT TAX.] A person who directly 
        or indirectly pays either of the taxes provided for by sections 
        296.02 and 296.025 and does not in fact use the gasoline or 
        special fuel in motor vehicles in this state or receive, store, 
        or withdraw it from storage to be used personally for the 
        purpose of producing or generating power for propelling 
        aircraft, but sells or otherwise disposes of the same, except as 
        provided in section 296.14, subdivision 2, is hereby authorized 
        to collect (from the person to whom the gasoline or special fuel 
        is so sold or disposed of) the tax so paid, and is hereby 
        required, upon request, to make, sign, and deliver to such 
        person an invoice of such sale or disposition.  The sums 
        collected must be held as a special fund in trust for the state 
        of Minnesota. 
           Sec. 33.  Minnesota Statutes 1992, section 296.165, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [SEIZURE.] The commissioner or authorized 
        designees may seize gasoline or special fuel being transported 
        for delivery in violation of section 296.06, subdivision 1, and 
        any vehicle or other method of conveyance used for transporting 
        the gasoline or special fuel.  Any untaxed motor vehicle fuel 
        that is received by a person other than a licensee is subject to 
        seizure along with the vehicle or other means of transportation 
        used to transport the motor vehicle fuel.  Any motor vehicle 
        fuel, along with the transporting vehicle, brought into 
        Minnesota by a transporter for use, distribution, storage, or 
        sale that is not supported by a manifest, bill of lading, or 
        invoice, reflecting the licensed distributor responsible for the 
        tax and/or fees is subject to seizure by the Minnesota 
        department of revenue.  Property seized under this subdivision 
        is subject to forfeiture as provided in subdivisions 2 and 3.  
           Sec. 34.  Minnesota Statutes 1992, section 296.25, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [PENALTIES IMPOSED.] (a) A person who fails 
        to comply with a provision of sections 296.01 to 296.421, or who 
        knowingly provides false information, including, but not limited 
        to, false odometer readings, or who knowingly makes a false 
        statement in a report, record, claim, or sales ticket required 
        by section 296.12; 296.14; 296.17, subdivisions 5, or 7 to 22; 
        296.18, subdivision 2; or 296.21, is guilty of a gross 
        misdemeanor. 
           (b) A person who willfully attempts in any manner to evade 
        or defeat any tax imposed by sections 296.01 to 296.421, 
        including, but not limited to, making and subscribing any false 
        statement in any report, record, claim, or sales ticket required 
        by sections 296.12; 296.14; 296.17, subdivisions 5, or 7 to 22; 
        296.18, subdivision 2; and 296.21; or making a false claim for a 
        refund under section 296.18, subdivision 4, is guilty of a 
        felony. 
           (c) It is a misdemeanor for a person to operate, or cause 
        to be operated, a licensed motor vehicle on the public highways 
        of this state on special fuel on which the excise tax provided 
        by this chapter has not been paid or the liability therefore 
        assumed by another person licensed under this chapter.  A person 
        who uses gasoline, delivered into an on-farm bulk storage tank 
        and on which no tax has been collected, for propelling a motor 
        vehicle on the public highways of this state is also guilty of a 
        misdemeanor. 
           (d) An officer or employee of the state of Minnesota 
        charged with the enforcement of a provision of sections 296.01 
        to 296.421 who is employed by or who engages in business as a 
        distributor or dealer in petroleum products is guilty of a 
        misdemeanor. 
           (e) The authorization in this chapter for the collection of 
        the excise taxes by persons other than the commissioner for and 
        in behalf of the state of Minnesota establishes a fiduciary 
        relationship, for the violation of which, in failure to make 
        payment when due and payable, the person so authorized to 
        collect these excise taxes shall be deemed guilty of a violation 
        of this chapter and of section 609.54, and punished accordingly. 
           (f) A minimum fine of $200 shall be imposed on a person who 
        fails to obtain a license or trip permit required under section 
        296.17, subdivisions 10 and 17. 
           Sec. 35.  Minnesota Statutes 1992, section 296.25, is 
        amended by adding a subdivision to read: 
           Subd. 1a.  [IMPOSITION OF PENALTY; DYED FUEL.] (a) If any 
        dyed fuel is sold or held for sale by a person for any use which 
        the person knows or has reason to know is not a nontaxable use 
        of the fuel; or if any dyed fuel is held for use or used by any 
        person for a use other than a nontaxable use and the person 
        knew, or had reason to know, that the fuel was so dyed; or if 
        any person willfully alters, or attempts to alter, the strength 
        or composition of any dye or marking in any dyed fuel, then the 
        person shall pay a penalty in addition to the tax, if any. 
           (b) Except as provided in paragraph (c), the amount of 
        penalty under paragraph (a) for each act is the greater of 
        $1,000, or $10 for each gallon of dyed fuel involved.  
           (c) With regard to a multiple violation under paragraph 
        (a), the penalty is increased by taking the penalty amount 
        multiplied by the number of prior penalties imposed by this 
        section on the person, or a related person, or any predecessor 
        of the person or related person. 
           (d) If a penalty is imposed under this section on a 
        business entity, each officer, employee, or agent of the entity 
        who willfully participated in any act giving rise to the penalty 
        is jointly and severally liable with the entity for the penalty. 
           Sec. 36.  [REPEALER.] 
           Minnesota Statutes 1992, sections 296.03; 296.14; and 
        296.15, subdivision 3, are repealed. 
           Sec. 37.  [EFFECTIVE DATES.] 
           Sections 1 to 36 are effective September 1, 1994, except 
        that section 25, subdivision 3, is effective for taxes payable 
        on or after January 1, 1995. 
                                   ARTICLE 6 
                                 SPECIAL TAXES 
           Section 1.  Minnesota Statutes 1993 Supplement, section 
        116.07, subdivision 10, is amended to read: 
           Subd. 10.  [SOLID WASTE ASSESSMENTS.] (a) A person that 
        collects mixed municipal solid waste shall collect and remit to 
        the commissioner of revenue a solid waste assessment from each 
        of the person's customers as provided in paragraphs (b) and (c). 
           For the purposes of this subdivision, a "person that 
        collects mixed municipal solid waste" means each person that 
        collects sales tax on solid waste collection services under 
        section 297A.45.  A disposal facility that accepts mixed 
        municipal solid waste shall collect and remit to the 
        commissioner of revenue a solid waste assessment as provided in 
        paragraph (g). 
           (b) "Residential customer" includes the following: 
           (1) a person who resides in a single residence; and 
           (2) a person residing in a building or at a site containing 
        multiple residences, including a townhome or mobile home park, 
        where each resident either has separate trash pickup, or is 
        separately assessed for such service.  Each dwelling unit will 
        be considered a residential customer if there is separate waste 
        collection for each resident, even if the resident pays to the 
        owner or an association a monthly maintenance fee which includes 
        the expense of waste collection, and the owner or association 
        pays the waste collector for waste collection in one lump sum. 
           The amount of the assessment for each residential customer 
        is $2 per year.  Each waste collector shall collect the 
        assessment annually from each residential customer that is 
        receiving waste collection service on July 1 of each year and 
        shall remit the amount collected along with the collector's 
        first remittance of the sales tax on solid waste collection 
        services, described in section 297A.45, made after October 1 of 
        each year.  Any amount of the assessment that is received by the 
        waste collector after October 1 of each year must be remitted 
        along with the collector's next remittance of sales tax after 
        receipt of the assessment. 
           (c) "Nonresidential customer" includes the following: 
           (1) an industry, business, including a home-operated 
        business, church, nursing home, nonprofit organization and 
        schools, and other commercial accounts; 
           (2) an owner of a building or site containing multiple 
        residences, including a townhome or mobile home park, where no 
        resident has separate trash pickup, and no resident is 
        separately assessed for such service; and 
           (3) a vendor who sells to customers waste collection bags 
        or stickers supplied by a waste collector, the cost of which is 
        a substitute for a waste collection fee.  A 30 gallon bag equals 
        .15 cubic yard, and a 38 gallon bag equals .19 cubic yard. 
           The amount of the assessment for each nonresidential 
        customer is 12 cents per noncompacted cubic yard of periodic 
        waste collection capacity purchased by the customer.  The 
        capacity of a "noncompacted cubic yard" means the number of 
        loose cubic yards of mixed municipal solid waste, and is based 
        on the size of the waste collection container.  "Periodic waste 
        collection" means each time the container is emptied by the 
        waste collector.  If the capacity purchased is for compacted 
        cubic yards, instead of noncompacted cubic yards, the capacity 
        is calculated based on the compaction ratio of 3:1.  For 
        purposes of this subdivision, one compacted cubic yard equals 
        600 pounds. 
           Each waste collector shall collect the assessment from each 
        nonresidential customer as part of each statement for payment of 
        waste collection charges and shall remit the amount collected 
        along with the next remittance of sales tax after receipt of the 
        assessment. 
           (d) The commissioner of revenue shall redesign sales tax 
        forms for solid waste collectors and disposal facilities to 
        accommodate payment of the assessment.  The commissioner of 
        revenue shall deposit the amounts remitted under this 
        subdivision in the environmental fund and shall credit 
        four-sevenths of the receipts to the landfill cleanup account 
        established in section 115B.42. 
           (e) For the purposes of this subdivision, a "person that 
        collects mixed municipal solid waste" means each person that 
        pays sales tax on solid waste collection services under section 
        297A.45.  The remitter of the solid waste assessment may offset 
        against the fees payable, with respect to any reporting period, 
        the amount of assessment imposed by this section previously 
        remitted to the commissioner of revenue, which qualified as a 
        bad debt under section 166(a) of the Internal Revenue Code, as 
        amended through December 31, 1993, during such reporting period, 
        but only in proportion to the portion of such debt which became 
        uncollectible. 
           (f) The audit, penalty, enforcement, and administrative 
        provisions applicable to taxes imposed under chapter 297A apply 
        to the assessments imposed under this subdivision.  
           (g) A disposal facility must collect an assessment of 12 
        cents per noncompacted cubic yard from a person who self-hauls 
        mixed municipal solid waste to the disposal facility, or from a 
        hauler that does not collect the sales tax on collection 
        services.  The disposal facility must remit the amount assessed 
        along with the next remittance of sales tax.  
           (h) To avoid undue hardship and to promote the effective 
        and reasonable application and enforcement of this subdivision, 
        the commissioner may permit a solid waste collector or disposal 
        facility to use a formula, or some other method of allocation, 
        in calculating the amount of solid waste assessment due to the 
        commissioner of revenue.  The solid waste collector or disposal 
        facility must receive written approval from the commissioner of 
        revenue before using an alternative method. 
           (i) A waste collector that contracts with a town, statutory 
        city, or other similar governmental entity for waste collection, 
        shall collect from the entity as follows: 
           (1) to the extent the bill is based on the number of 
        residential stops it makes, a $2 annual fee for each residential 
        periodic waste collection location that the collector services 
        as of July 1 of each year; 
           (2) to the extent the bill is based on the volume of the 
        waste containers it empties at nonresidential sites, 12 cents 
        per noncompacted cubic yard of periodic waste collection 
        capacity; and 
           (3) to the extent the bill is based, not on the number of 
        residential stops, but on the number of bags collected from 
        residences, 12 cents per noncompacted cubic yard of periodic 
        waste collection capacity.  A 30 gallon bag equals .15 cubic 
        yard, and a 38 gallon bag equals .19 cubic yard. 
           Sec. 2.  Minnesota Statutes 1993 Supplement, section 
        270.06, is amended to read: 
           270.06 [POWERS AND DUTIES.] 
           The commissioner of revenue shall: 
           (1) have and exercise general supervision over the 
        administration of the assessment and taxation laws of the state, 
        over assessors, town, county, and city boards of review and 
        equalization, and all other assessing officers in the 
        performance of their duties, to the end that all assessments of 
        property be made relatively just and equal in compliance with 
        the laws of the state; 
           (2) confer with, advise, and give the necessary 
        instructions and directions to local assessors and local boards 
        of review throughout the state as to their duties under the laws 
        of the state; 
           (3) direct proceedings, actions, and prosecutions to be 
        instituted to enforce the laws relating to the liability and 
        punishment of public officers and officers and agents of 
        corporations for failure or negligence to comply with the 
        provisions of the laws of this state governing returns of 
        assessment and taxation of property, and cause complaints to be 
        made against local assessors, members of boards of equalization, 
        members of boards of review, or any other assessing or taxing 
        officer, to the proper authority, for their removal from office 
        for misconduct or negligence of duty; 
           (4) require county attorneys to assist in the commencement 
        of prosecutions in actions or proceedings for removal, 
        forfeiture and punishment for violation of the laws of this 
        state in respect to the assessment and taxation of property in 
        their respective districts or counties; 
           (5) require town, city, county, and other public officers 
        to report information as to the assessment of property, 
        collection of taxes received from licenses and other sources, 
        and such other information as may be needful in the work of the 
        department of revenue, in such form and upon such blanks as the 
        commissioner may prescribe; 
           (6) require individuals, copartnerships, companies, 
        associations, and corporations to furnish information concerning 
        their capital, funded or other debt, current assets and 
        liabilities, earnings, operating expenses, taxes, as well as all 
        other statements now required by law for taxation purposes; 
           (7) subpoena witnesses, at a time and place reasonable 
        under the circumstances, to appear and give testimony, and to 
        produce books, records, papers and documents for inspection and 
        copying relating to any matter which the commissioner may have 
        authority to investigate or determine; 
           (8) issue a subpoena which does not identify the person or 
        persons with respect to whose liability the subpoena is issued, 
        but only if (a) the subpoena relates to the investigation of a 
        particular person or ascertainable group or class of persons, 
        (b) there is a reasonable basis for believing that such person 
        or group or class of persons may fail or may have failed to 
        comply with any law administered by the commissioner, (c) the 
        information sought to be obtained from the examination of the 
        records (and the identity of the person or persons with respect 
        to whose liability the subpoena is issued) is not readily 
        available from other sources, (d) the subpoena is clear and 
        specific as to the information sought to be obtained, and (e) 
        the information sought to be obtained is limited solely to the 
        scope of the investigation.  Provided further that the party 
        served with a subpoena which does not identify the person or 
        persons with respect to whose tax liability the subpoena is 
        issued shall have the right, within 20 days after service of the 
        subpoena, to petition the district court for the judicial 
        district in which lies the county in which that party is located 
        for a determination as to whether the commissioner of revenue 
        has complied with all the requirements in (a) to (e), and thus, 
        whether the subpoena is enforceable.  If no such petition is 
        made by the party served within the time prescribed, the 
        subpoena shall have the force and effect of a court order; 
           (9) cause the deposition of witnesses residing within or 
        without the state, or absent therefrom, to be taken, upon notice 
        to the interested party, if any, in like manner that depositions 
        of witnesses are taken in civil actions in the district court, 
        in any matter which the commissioner may have authority to 
        investigate or determine; 
           (10) investigate the tax laws of other states and countries 
        and to formulate and submit to the legislature such legislation 
        as the commissioner may deem expedient to prevent evasions of 
        assessment and taxing laws, and secure just and equal taxation 
        and improvement in the system of assessment and taxation in this 
        state; 
           (11) consult and confer with the governor upon the subject 
        of taxation, the administration of the laws in regard thereto, 
        and the progress of the work of the department of revenue, and 
        furnish the governor, from time to time, such assistance and 
        information as the governor may require relating to tax matters; 
           (12) transmit to the governor, on or before the third 
        Monday in December of each even-numbered year, and to each 
        member of the legislature, on or before November 15 of each 
        even-numbered year, the report of the department of revenue for 
        the preceding years, showing all the taxable property in the 
        state and the value of the same, in tabulated form; 
           (13) inquire into the methods of assessment and taxation 
        and ascertain whether the assessors faithfully discharge their 
        duties, particularly as to their compliance with the laws 
        requiring the assessment of all property not exempt from 
        taxation; 
           (14) administer and enforce the assessment and collection 
        of state taxes and, from time to time, make, publish, and 
        distribute rules for the administration and enforcement 
        of assessments and fees administered by the commissioner and 
        state tax laws.  The rules have the force of law; 
           (15) prepare blank forms for the returns required by state 
        tax law and distribute them throughout the state, furnishing 
        them subject to charge on application; 
           (16) prescribe rules governing the qualification and 
        practice of agents, attorneys, or other persons representing 
        taxpayers before the commissioner.  The rules may require that 
        those persons, agents, and attorneys show that they are of good 
        character and in good repute, have the necessary qualifications 
        to give taxpayers valuable services, and are otherwise competent 
        to advise and assist taxpayers in the presentation of their case 
        before being recognized as representatives of taxpayers.  After 
        due notice and opportunity for hearing, the commissioner may 
        suspend and disbar from further practice before the commissioner 
        any person, agent, or attorney who is shown to be incompetent or 
        disreputable, who refuses to comply with the rules, or who with 
        intent to defraud, willfully or knowingly deceives, misleads, or 
        threatens a taxpayer or prospective taxpayer, by words, 
        circular, letter, or by advertisement.  This clause does not 
        curtail the rights of individuals to appear in their own behalf 
        or partners or corporations' officers to appear in behalf of 
        their respective partnerships or corporations; 
           (17) appoint agents as the commissioner considers necessary 
        to make examinations and determinations.  The agents have the 
        rights and powers conferred on the commissioner to subpoena, 
        examine, and copy books, records, papers, or memoranda, subpoena 
        witnesses, administer oaths and affirmations, and take 
        testimony.  In addition to administrative subpoenas of the 
        commissioner and the agents, upon demand of the commissioner or 
        an agent, the court administrator of any district court shall 
        issue a subpoena for the attendance of a witness or the 
        production of books, papers, records, or memoranda before the 
        agent for inspection and copying.  Disobedience of a court 
        administrator's subpoena shall be punished by the district court 
        of the district in which the subpoena is issued, or in the case 
        of a subpoena issued by the commissioner or an agent, by the 
        district court of the district in which the party served with 
        the subpoena is located, in the same manner as contempt of the 
        district court; 
           (18) appoint and employ additional help, purchase supplies 
        or materials, or incur other expenditures in the enforcement of 
        state tax laws as considered necessary.  The salaries of all 
        agents and employees provided for in this chapter shall be fixed 
        by the appointing authority, subject to the approval of the 
        commissioner of administration; 
           (19) execute and administer any agreement with the 
        secretary of the treasury of the United States or a 
        representative of another state regarding the exchange of 
        information and administration of the tax laws; 
           (20) administer and enforce the provisions of sections 
        325D.30 to 325D.42, the Minnesota unfair cigarette sales act; 
           (21) authorize the use of unmarked motor vehicles to 
        conduct seizures or criminal investigations pursuant to the 
        commissioner's authority; and 
           (22) exercise other powers and perform other duties 
        required of or imposed upon the commissioner of revenue by law.  
           Sec. 3.  Minnesota Statutes 1992, section 270B.02, 
        subdivision 3, is amended to read: 
           Subd. 3.  [CONFIDENTIAL DATA ON INDIVIDUALS; PROTECTED 
        NONPUBLIC DATA.] (a) Except as provided in paragraph (b), names 
        of informers, informer letters, and other unsolicited data, in 
        whatever form, given to the department of revenue by a person, 
        other than the data subject, that inform who informs that a 
        specific taxpayer is not or may not be in compliance with tax 
        laws, or nontax laws administered by the department of revenue, 
        are confidential data on individuals or protected nonpublic data 
        as defined in section 13.02, subdivisions 3 and 13. 
           (b) Data under paragraph (a) may be disclosed with the 
        consent of the informer or upon a written finding by a court 
        that the information provided by the informer was false and that 
        there is evidence that the information was provided in bad 
        faith.  This subdivision does not alter disclosure 
        responsibilities or obligations under the rules of criminal 
        procedure. 
           Sec. 4.  Minnesota Statutes 1992, section 270B.02, 
        subdivision 5, is amended to read: 
           Subd. 5.  [MAINTAINING CLASSIFICATIONS.] Notwithstanding 
        section 13.03, subdivision 7, returns and return information 
        retain the classification designated under this chapter.  
        Notwithstanding sections 13.03, subdivision 8, and 13.10, data 
        classified under subdivision 3 and department of revenue data 
        classified under this chapter as nonpublic data, protected 
        nonpublic data, private data on individuals, or confidential 
        data on individuals remain so classified. 
           Sec. 5.  Minnesota Statutes 1992, section 297.03, 
        subdivision 7, is amended to read: 
           Subd. 7.  [LICENSED DISTRIBUTOR'S PERMIT NUMBER.] The 
        commissioner shall assign a permit number to each person 
        licensed as a distributor at the time of issuance of the first 
        license, which shall be inscribed and printed upon all licenses 
        issued to that distributor.  If the commissioner determines that 
        cancellation of the stamps is necessary for the enforcement of 
        sections 297.01 to 297.13, the distributor shall use the permit 
        number, in a manner prescribed by the commissioner, as the 
        cancellation mark for the stamps affixed by the distributor.  
           Sec. 6.  [297.075] [INFORMATIONAL REPORTS.] 
           Subdivision 1.  [REPORTS REQUIRED.] The following persons 
        shall file with the commissioner a monthly informational report 
        in the manner and on the form prescribed by the commissioner:  
           (1) distributors licensed to ship cigarettes into 
        Minnesota; 
           (2) persons who manufacture cigarettes within the state; 
           (3) all other persons who import cigarettes into Minnesota; 
        and 
           (4) those who possess, receive, store, or warehouse 
        cigarettes in Minnesota, upon which the tax imposed by section 
        297.02 or 297.22 has not been paid.  
           Subd. 2.  [FILING DATES; FAILURE TO FILE.] No payment of 
        any tax is required to be remitted with this report.  The report 
        must be filed on or before the tenth day following the end of 
        each calendar month, regardless of whether or not the person 
        shipped, manufactured, possessed, received, stored, or 
        warehoused any cigarettes into or within Minnesota during the 
        previous month, unless the commissioner determines that a longer 
        filing period is appropriate for a particular person.  A person 
        failing to file this report is guilty of a misdemeanor.  The 
        requirement of filing an informational report does not apply to 
        persons conveying or possessing cigarettes described in section 
        297.05, subdivision 2, nor to any lawful manufacture of 
        cigarettes within the state for personal consumption.  
           Subd. 3.  [CONSUMERS.] A person who files a cigarette 
        consumer return as required by section 297.23 may fulfill the 
        requirements of subdivision 1 by indicating on the cigarette 
        consumer's return which of the items reported on the return were 
        transported into the state by the consumer.  The requirement of 
        filing an informational report does not apply to consumers who 
        import 200 or less cigarettes into this state.  
           Subd. 4.  [LICENSED DISTRIBUTORS.] A licensed distributor 
        may fulfill the requirements of subdivision 1 by filing a tax 
        return as required by section 297.07.  
           Sec. 7.  Minnesota Statutes 1992, section 297C.13, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [FELONIES.] It is a felony for a holder of 
        an alcoholic beverage license to: 
           (1) evade or attempt to evade the excise tax on 
        intoxicating liquor and 3.2 percent malt liquor; 
           (2) fraudulently neglect or fail to keep complete accounts 
        in book or books of account, or to make true and exact entries 
        in them as required by the rules of the commissioner of public 
        safety and the commissioner of revenue, or by law; 
           (3) conspire to violate a provision of this chapter; 
           (4) fail to do or cause not to be done anything required by 
        law; 
           (5) refill or cause to be refilled a bottle or other 
        container of intoxicating liquor in order to evade tax; or 
           (6) sell intoxicating liquor or 3.2 percent malt liquor on 
        which the excise tax has not been paid and thereby evade the 
        tax; 
           (7) file with the commissioner a return, report, or other 
        document known by the person to be fraudulent or false 
        concerning a material matter; or 
           (8) knowingly aid or assist in, or advise in the 
        preparation or presentation of a return, report, or other 
        document that is fraudulent or false concerning a material 
        matter, whether or not the falsity or fraud committed is with 
        the knowledge or consent of the person authorized or required to 
        present the return, report, or other document. 
           Sec. 8.  [EFFECTIVE DATE.] 
           Sections 1 to 7 are effective the day following final 
        enactment. 
           Presented to the governor April 22, 1994 
           Signed by the governor April 25, 1994, 1:12 p.m.

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569