Legislative Session number- 87

Bill Name: SF1972

1E Relating to the financing of state and local government

ARTICLE 1 - INCOME
TAX

Modifying the angel investment program and certain small business
investment provisions, defining qualified greater Minnesota business; conforming
certain rollover provisions in individual retirement accounts; eliminating the
two percent contractor withholding requirement; conforming to federal taxable
income changes; allowing an income tax subtraction for a certain percentage of
military retirement pay; eliminating the definition of qualified individual for
military retirement pay credit purposes; modifying certain credit for historic
structure rehabilitation provisions; changing the definition of qualified brewer
producing fermented malt beverages to qualify for the tax credit; repealing the
military retirement pay credit and the contractor withholding
requirement

ARTICLE 2 - SALES TAX

Modifying the sales and use tax payment
due dates by removing certain remittance exceptions for vendors; exempting
certain medical laboratory services payments from gross revenues taxation;
clarifying the timing of tax collection for rent-to-own or lease-to-own used
vehicles and redefining retail sale; clarifying sales exemption for medical
devices, adding a sale tax exemption for certain items purchased in transactions
covered by Medicare and Medicaid; providing a phased-in upfront exemption for
capital equipment purchases, modifying an exemption for qualified data centers;
exempting mobile medical units from motor vehicle sales; conforming certain
provisions; repealing the early vendor remittance penalty

ARTICLE 3 -
PROPERTY TAX

Modifying expenditure type reporting requirements for the
monetary benefit in the performance standard measures program for certain
counties or cities for 2012 only; eliminating the levy cap on the career and
technical levy and specifying a limit for taxes payable in 2012; modifying
technology and information education systems (TIES) school lease levy authority,
permitting alternative uses of the building lease levy for school districts that
are members of the St. Croix River education district; modifying the state
general levy base amount for commercial-industrial property and seasonal
recreation property for 2013-2016 and eliminating the percentage apportionment
of the state general levy; requiring certain counties and cities to report
additional budgetary information, specifying certain expenditure type reporting
requirements; modifying the targeting property tax refund formula for gross
property tax additional refunds; setting 2013 local government aid (LGA)
payments at an amount equal to 2012 payments; authorizing a lease levy for
administrative space for independent school district #656, Faribault and
independent school district #284, Wayzata; requiring the commissioner of revenue
to recalculate the targeting property tax refund for claims for additional
refunds; repealing the state general levy for taxes payable in 2026 and
thereafter

ARTICLE 4 - LOCAL DEVELOPMENT

Modifying the definition of
redevelopment district for tax increment financing (TIF) eligibility purposes;
defining soil deficiency district; authorizing a housing and redevelopment
authority to designate a mining reclamation project area, specifying the
application of special rules and duration limit; modifying a pooling provision
for expenditures outside the district to develop housing; extending the Oakdale
tax increment financing (TIF) time limit and designating parcels deemed
occupied; authorizing Apple Valley the use of tax increment financing for
developments consisting of building and ancillary facilities, providing an
extension of authority to spend tax increments; authorizing Bloomington to
extend certain tax increment financing (TIF) districts duration limits;
authorizing Brooklyn Park tax increment financing (TIF) district special rules
to assist in the development of an aquatic performance and wellness center;
authorizing the Dakota county development authority to establish a redevelopment
tax increment financing (TIF) district comprised of certain properties;
authorizing the use of tax increment financing for certain public infrastructure
improvements by the St. Cloud economic development authority


ARTICLE 5 -
HOMESTEAD MARKET VALUE CLEANUP

Converting the computation of levy, tax,
spending, debt, and similar limits based on market value or taxable market value
to estimated market value; clarifying limits on taxation, spending, and
incurring debt based on market values; defining certain terms; making technical
and clarifying changes; repealing certain obsolete provisions

ARTICLE 6 -
MISCELLANEOUS

Providing a general fund savings and budget reserve transfer,
specifying certain duties of the commissioner of management budget; transferring
a certain balance in the revenue department service and recovery special fund
revenue fund to the general fund in fiscal year 2012
(je)