1.1 	A bill for an act
1.2 	relating to financing of state and local government; making changes to property, 
1.3 	individual income, corporate franchise, estate, sales and use, excise, petroleum 
1.4 	and other fuel, gambling, tobacco, special, mineral, local, and other taxes and 
1.5 	tax-related provisions; modifying local government aids and credits; amending 
1.6 	county levy authority; exempting certain electric generation facility property and 
1.7 	soccer stadium property from property tax; extending homestead value exclusion 
1.8 	for spouses of qualifying deceased veterans; amending the state general levy; 
1.9 	abating local property taxes in the Lake Mille Lacs area; establishing school 
1.10 	building bond agricultural credit; establishing reimbursement for certain 
1.11 	out-of-home placements of Indian children; establishing riparian protection aid; 
1.12 	forgiving certain aid penalties; providing for federal tax conformity; modifying 
1.13 	income tax credits; providing income tax credits; changing income tax 
1.14 	modifications; modifying residency rules; modifying sales and use tax definitions; 
1.15 	modifying sales and use tax collection requirements; modifying sales and use tax 
1.16 	exemptions; providing for reimbursement from the Minnesota Sports Facilities 
1.17 	Authority of certain sales and use taxes; allocating certain sales and use tax 
1.18 	revenues; modifying and allowing certain local sales and use taxes; modifying 
1.19 	provisions for gasoline used as a substitute for aviation gasoline; providing 
1.20 	definitions and a tax rate for vapor products; modifying taconite tax distributions 
1.21 	and deposits; providing for local development projects; modifying public finance 
1.22 	provisions; transferring approval authority from the Iron Range Resources and 
1.23 	Rehabilitation Board to the commissioner of Iron Range resources and 
1.24 	rehabilitation; requiring the commissioner of Iron Range resources and rehabilitation 
1.25 	to seek a recommendation from the board in certain circumstances; providing for 
1.26 	transfer of ownership, eligibility, certification, and notification requirements for 
1.27 	enrollment of land in the Sustainable Forest Incentive Act; modifying the budget 
1.28 	reserve; providing a new markets grant program; providing a tax time savings 
1.29 	grant program; providing civil and criminal penalties for sales suppression devices; 
1.30 	allocating additional amounts to the border city enterprise zones; making clarifying 
1.31 	and conforming changes; removing obsolete language; requiring reports; 
1.32 	appropriating money;amending Minnesota Statutes 2016, sections 13.51, 
1.33 	subdivision 2; 15.38, subdivision 7; 16A.152, subdivision 2; 69.021, subdivision 
1.34 	5; 116J.424; 127A.45, subdivisions 10, 13; 128C.24; 136A.129, subdivision 3; 
1.35 	136G.05, subdivision 10; 138.053; 216B.161, subdivision 1; 270.071, subdivisions 
1.36 	2, 7, 8, by adding a subdivision; 270.072, subdivisions 2, 3, by adding a subdivision; 
1.37 	270.12, by adding a subdivision; 270.82, subdivision 1; 270A.03, subdivision 5; 
1.38 	270B.14, subdivision 1; 270C.30; 270C.33, subdivisions 5, 8; 270C.34, subdivision 
1.39 	2; 270C.347, subdivision 1; 270C.35, subdivision 3, by adding a subdivision; 
2.1 	270C.38, subdivision 1; 270C.445, by adding a subdivision; 270C.446, subdivision 
2.2 	5; 270C.72, subdivision 4; 270C.89, subdivision 1; 271.06, subdivisions 2, 7; 
2.3 	271.08, subdivision 1; 271.21, subdivision 2; 272.02, subdivisions 9, 10, by adding 
2.4 	subdivisions; 272.0211, subdivision 1; 272.025, subdivision 1; 272.029, 
2.5 	subdivisions 2, 4, by adding a subdivision; 272.0295, subdivision 4; 272.115, 
2.6 	subdivision 2; 272.162; 273.061, subdivision 7; 273.08; 273.121, by adding a 
2.7 	subdivision; 273.124, subdivision 13; 273.13, subdivisions 22, 34; 273.1392; 
2.8 	273.1393; 273.33, subdivisions 1, 2; 273.371; 273.372, subdivisions 1, 2, 4, by 
2.9 	adding subdivisions; 274.01, subdivision 1; 274.13, subdivision 1; 274.135, 
2.10 	subdivision 3; 275.025, subdivisions 1, 2, 4; 275.065, subdivisions 1, 3; 275.066; 
2.11 	275.07, subdivisions 1, 2; 275.08, subdivision 1b; 275.62, subdivision 2; 276.04, 
2.12 	subdivision 2; 276.11, subdivision 1; 276.111; 276A.01, subdivisions 8, 17; 278.01, 
2.13 	subdivision 1; 278.12; 278.14, subdivision 1; 279.01, subdivisions 1, 2, 3; 279.03, 
2.14 	subdivision 2; 279.37, subdivision 2; 282.01, subdivisions 1a, 1d, 4; 282.261, 
2.15 	subdivision 2; 282.38, subdivision 1; 287.2205; 289A.02, subdivision 7; 289A.08, 
2.16 	subdivisions 11, 16, by adding a subdivision; 289A.09, subdivisions 1, 2; 289A.11, 
2.17 	subdivision 1; 289A.12, subdivision 14; 289A.18, subdivision 1, by adding a 
2.18 	subdivision; 289A.20, subdivision 2; 289A.31, subdivision 1; 289A.35; 289A.37, 
2.19 	subdivision 2; 289A.38, subdivision 6; 289A.50, subdivision 7; 289A.60, 
2.20 	subdivision 28, by adding a subdivision; 289A.63, by adding a subdivision; 290.01, 
2.21 	subdivisions 7, 19, 31; 290.0131, subdivision 10; 290.0132, subdivisions 14, 21, 
2.22 	by adding subdivisions; 290.0133, subdivision 12; 290.0134, subdivision 14; 
2.23 	290.06, subdivision 22; 290.067, subdivisions 1, 2b; 290.0671, subdivisions 1, 7; 
2.24 	290.0672, subdivision 1; 290.0674, subdivision 2, by adding a subdivision; 
2.25 	290.0677, subdivision 1a; 290.068, subdivision 2; 290.0685, subdivision 1; 
2.26 	290.0692, by adding a subdivision; 290.091, subdivision 2; 290.0922, subdivision 
2.27 	2; 290.17, subdivision 2; 290.31, subdivision 1; 290A.03, subdivisions 13, 15; 
2.28 	290A.19; 290C.01; 290C.02, subdivisions 1, 3, 6; 290C.03; 290C.04; 290C.05; 
2.29 	290C.055; 290C.07; 290C.08, subdivision 1; 290C.10; 290C.11; 290C.13, 
2.30 	subdivision 6; 291.005, subdivision 1; 291.016, subdivisions 2, 3; 291.03, 
2.31 	subdivisions 9, 11; 295.54, subdivision 2; 295.55, subdivision 6; 296A.01, 
2.32 	subdivisions 12, 33, 42, by adding subdivisions; 296A.02, by adding a subdivision; 
2.33 	296A.07, subdivisions 1, 4; 296A.08, subdivision 2; 296A.09, subdivisions 1, 3, 
2.34 	5, 6; 296A.15, subdivisions 1, 4; 296A.17, subdivisions 1, 2, 3; 296A.18, 
2.35 	subdivisions 1, 8; 296A.19, subdivision 1; 296A.22, subdivision 9; 296A.26; 
2.36 	297A.61, subdivisions 3, 10; 297A.66, subdivisions 1, 2, 4, by adding a subdivision; 
2.37 	297A.67, subdivision 7a, by adding subdivisions; 297A.68, subdivision 9; 297A.70, 
2.38 	subdivisions 11, 14; 297A.71, by adding subdivisions; 297A.75, subdivisions 1, 
2.39 	2, 3; 297A.815, subdivision 3; 297A.82, subdivisions 4, 4a; 297D.02; 297E.02, 
2.40 	subdivisions 3, 7; 297E.04, subdivision 1; 297E.05, subdivision 4; 297E.06, 
2.41 	subdivision 1; 297F.01, subdivision 19, by adding subdivisions; 297F.05, 
2.42 	subdivisions 1, 3, by adding subdivisions; 297F.09, subdivision 1; 297F.23; 
2.43 	297G.09, subdivision 1; 297G.22; 297H.04, subdivision 2; 297H.06, subdivision 
2.44 	2; 297I.05, subdivision 2; 297I.10, subdivisions 1, 3; 297I.30, by adding a 
2.45 	subdivision; 297I.60, subdivision 2; 298.001, subdivision 8; 298.01, subdivision 
2.46 	4c; 298.22, subdivisions 1, 1a, 5a, 6, 8, 10, 11; 298.221; 298.2211, subdivision 3; 
2.47 	298.2213, subdivisions 4, 5, 6; 298.223, subdivisions 1, 2; 298.227; 298.24, by 
2.48 	adding a subdivision; 298.28, subdivisions 3, 5, 7a, 9d; 298.292, subdivision 2; 
2.49 	298.296, subdivisions 1, 2, 4; 298.2961, subdivisions 2, 4; 298.298; 298.46, 
2.50 	subdivision 2; 366.095, subdivision 1; 383B.117, subdivision 2; 410.32; 412.301; 
2.51 	469.034, subdivision 2; 469.101, subdivision 1; 469.169, by adding a subdivision; 
2.52 	469.1763, subdivisions 1, 2, 3; 469.178, subdivision 7; 469.319, subdivision 5; 
2.53 	473.39, by adding a subdivision; 473H.09; 475.58, subdivision 3b; 475.60, 
2.54 	subdivision 2; 477A.013, by adding a subdivision; 477A.017, subdivisions 2, 3; 
2.55 	477A.03, subdivisions 2a, 2b; 477A.17; 477A.19, by adding subdivisions; 559.202, 
2.56 	subdivision 2; 609.5316, subdivision 3; Laws 1980, chapter 511, sections 1, 
2.57 	subdivision 2, as amended; 2, as amended; Laws 1988, chapter 645, section 3, as 
2.58 	amended; Laws 1991, chapter 291, article 8, section 27, subdivisions 3, as amended, 
3.1 	4, as amended, 5; Laws 1996, chapter 471, article 2, section 29, subdivisions 1, as 
3.2 	amended, 4, as amended; article 3, section 51; Laws 1999, chapter 243, article 4, 
3.3 	section 18, subdivision 1, as amended; Laws 2001, First Special Session chapter 
3.4 	5, article 3, section 86; Laws 2008, chapter 154, article 9, section 21, subdivision 
3.5 	2; Laws 2008, chapter 366, article 7, section 20; Laws 2009, chapter 88, article 2, 
3.6 	section 46, subdivisions 1, as amended, 2, 3, as amended, 4, 5; article 5, section 
3.7 	17, as amended; Laws 2010, chapter 216, sections 12, as amended; 58, as amended; 
3.8 	Laws 2014, chapter 308, article 1, section 14, subdivision 2; article 6, section 9; 
3.9 	article 9, section 94; Laws 2016, chapter 187, section 5; Laws 2016, chapter 189, 
3.10 	article 30, section 25, subdivision 5; proposing coding for new law in Minnesota 
3.11 	Statutes, chapters 103C; 116J; 216B; 270C; 273; 289A; 290; 290B; 290C; 293; 
3.12 	477A; repealing Minnesota Statutes 2016, sections 272.02, subdivision 23; 281.22; 
3.13 	290.067, subdivisions 2, 2a; 290C.02, subdivisions 5, 9; 290C.06; 297F.05, 
3.14 	subdivision 1a; 477A.20; Minnesota Rules, parts 8092.1400; 8092.2000; 8100.0700; 
3.15 	8125.1300, subpart 3.
3.16 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

3.17 	ARTICLE 1
3.18 	PROPERTY TAX

3.19 	Section 1. [103C.333] COUNTY LEVY AUTHORITY.
3.20 	Notwithstanding any other law to the contrary, a county levying a tax under section 
3.21 	103C.331 shall not include any taxes levied under those authorities in the levy certified 
3.22 	under section 275.07, subdivision 1, paragraph (a). A county levying under section 103C.331 
3.23 	shall separately certify that amount, and the auditor shall extend that levy as a special taxing 
3.24 	district levy under sections 275.066 and 275.07, subdivision 1, paragraph (b).

3.25 	EFFECTIVE DATE. This section is effective for certifications made in 2017 and 
3.26 	thereafter.

3.27 	Sec. 2. Minnesota Statutes 2016, section 138.053, is amended to read:
3.28 	138.053 COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR TOWNS.
3.29 	The governing body of any home rule charter or statutory city or town may annually 
3.30 	appropriate from its general fund an amount not to exceed 0.02418 percent of estimated 
3.31 	market value, derived from ad valorem taxes on property or other revenues, to be paid to 
3.32 	the historical society of its respective city, town, or county to be used for the promotion of 
3.33 	historical work and to aid in defraying the expenses of carrying on the historical work in 
3.34 	the county. No city or town may appropriate any funds for the benefit of any historical 
3.35 	society unless the society is affiliated with and approved by the Minnesota Historical Society.

3.36 	EFFECTIVE DATE. This section is effective the day following final enactment.

4.1 	Sec. 3. [216B.1648] PROPERTY TAX ADJUSTMENT; COOPERATIVE 
4.2 	ASSOCIATION.
4.3 	A cooperative electric association that has elected to be subject to rate regulation under 
4.4 	section 216B.026 is eligible to file with the commission for approval of an adjustment for 
4.5 	real and personal property taxes, fees, and permits.

4.6 	EFFECTIVE DATE. This section is effective the day following final enactment.

4.7 	Sec. 4. Minnesota Statutes 2016, section 272.02, is amended by adding a subdivision to 
4.8 	read:
4.9 		Subd. 100.Electric generation facility; personal property. (a) Notwithstanding 
4.10 	subdivision 9, clause (a), attached machinery, transformers, and other personal property 
4.11 	that (1) is part of a natural gas-fired combined heat and power facility, (2) generates electricity 
4.12 	and steam for at least partial consumption as part of an industrial use, including corn 
4.13 	processing, (3) is less than 80,000 kilowatts of installed capacity, and (4) meets the 
4.14 	requirements of this subdivision, are exempt.
4.15 	(b) At the time of construction, the facility must:
4.16 	(1) be designed to utilize natural gas as a primary fuel;
4.17 	(2) not be owned by a public utility as defined in section 216B.02, subdivision 4;
4.18 	(3) be located within 15 miles of an existing natural gas pipeline and within one mile of 
4.19 	an existing electrical transmission substation; and
4.20 	(4) be located outside the metropolitan area as defined in section 473.121, subdivision 
4.21 	2.
4.22 	(c) Construction of the facility must commence after January 1, 2015, and before January 
4.23 	1, 2019. Property eligible for this exemption does not include electric transmission lines 
4.24 	and interconnections, or gas pipelines and interconnections, appurtenant to the property or 
4.25 	the facility.
4.26 	(d) In lieu of personal property taxes each year, the owner of the combined heat and 
4.27 	power facility shall pay a base payment of 0.14 cents per kilowatt-hour of electricity produced 
4.28 	by the facility during the previous calendar year. In addition to the base payment and in lieu 
4.29 	of personal property taxes each year, the owner of the combined heat and power facility 
4.30 	shall pay an additional payment of 0.08 cents per kilowatt-hour of electricity produced by 
4.31 	the facility during the previous calendar year if, during the previous calendar year, the host 
4.32 	township or city had an agreement with a municipal utilities commission to share the cost 
5.1 	of acquiring, developing, and marketing land for industrial purposes, and under such 
5.2 	agreement both the host township or city and the municipal utilities commission provided 
5.3 	funds during the previous calendar year as part of a cost-sharing agreement. The additional 
5.4 	payment to be paid by the owner of the combined heat and power facility shall be the lesser 
5.5 	of 0.08 cents per kilowatt-hour of electricity produced by the facility or 57 percent of the 
5.6 	amount funded by the host township or city during the previous calendar year pursuant to 
5.7 	the aforementioned cost-sharing agreement. The payments imposed under this section shall 
5.8 	be paid to the county treasurer for the benefit of the host township or city, at the time and 
5.9 	in the manner provided for payment of property taxes under section 277.01, subdivision 3. 
5.10 	If unpaid, the payments are subject to the same enforcement, collection, and interest and 
5.11 	penalties as delinquent personal property taxes. Except to the extent inconsistent with this 
5.12 	section, sections 277.01 to 277.24 and 278.01 to 278.13 apply to the payments imposed 
5.13 	under this section, and for purposes of those sections the payments imposed under this 
5.14 	section are considered personal property taxes.
5.15 	(e) The owner of the combined heat and power facility shall file a report with the 
5.16 	commissioner of revenue annually on or before February 1, detailing the amount of electricity 
5.17 	in kilowatt-hours that was produced by the facility and the amount funded by the host 
5.18 	township or city in accordance with the cost-sharing agreement described in paragraph (d) 
5.19 	during the previous calendar year. The commissioner shall prescribe the form of the report. 
5.20 	The report must contain the information required by the commissioner to determine the 
5.21 	payments due under this section payable in the current year. If an owner of the facility 
5.22 	subject to taxation under this section fails to file the report by the due date, the commissioner 
5.23 	of revenue shall determine the payments based upon the nameplate capacity of the system 
5.24 	multiplied by a capacity factor of 85 percent.

5.25 	EFFECTIVE DATE. This section is effective for taxes payable beginning in 2018 and 
5.26 	thereafter.

5.27 	Sec. 5. Minnesota Statutes 2016, section 272.02, is amended by adding a subdivision to 
5.28 	read:
5.29 		Subd. 101.Electric generation facility; personal property. (a) Notwithstanding 
5.30 	subdivision 9, clause (a), attached machinery and other personal property that is part of an 
5.31 	electric generation facility with more than 35 megawatts and less than 40 megawatts of 
5.32 	installed capacity and that meets the requirements of this subdivision is exempt from taxes 
5.33 	and payments in lieu of taxes. The facility must:
5.34 	(1) be designed to utilize natural gas as a primary fuel;
6.1 	(2) be owned and operated by a municipal power agency as defined in section 453.52, 
6.2 	subdivision 8;
6.3 	(3) be located within 800 feet of an existing natural gas pipeline;
6.4 	(4) satisfy a resource deficiency identified in an approved integrated resource plan filed 
6.5 	under section 216B.2422;
6.6 	(5) be located outside the metropolitan area as defined under section 473.121, subdivision 
6.7 	2; and
6.8 	(6) have received, by resolution, the approval of the governing bodies of the city and 
6.9 	county in which it is located for the exemption of personal property provided by this 
6.10 	subdivision.
6.11 	(b) Construction of the facility must have been commenced after January 1, 2015, and 
6.12 	before January 1, 2016. Property eligible for this exemption does not include electric 
6.13 	transmission lines and interconnections or gas pipelines and interconnections appurtenant 
6.14 	to the property or the facility.

6.15 	EFFECTIVE DATE. This section is effective for taxes payable in 2018 and thereafter.

6.16 	Sec. 6. Minnesota Statutes 2016, section 272.162, is amended to read:
6.17 	272.162 RESTRICTIONS ON TRANSFERS OF SPECIFIC PARTS.
6.18 		Subdivision 1.Conditions restricting transfer. When a deed or other instrument 
6.19 	conveying a parcel of land is presented to the county auditor for transfer or division under 
6.20 	sections 272.12, 272.16, and 272.161, the auditor shall not transfer or divide the land or its 
6.21 	net tax capacity in the official records and shall not certify the instrument as provided in 
6.22 	section 272.12, if:
6.23 	(a) The land conveyed is less than a whole parcel of land as charged in the tax lists;
6.24 	(b) The part conveyed appears within the area of application of municipal or county
6.25 	subdivision regulations adopted and filed under section 394.35 or section 462.36, subdivision 
6.26 	1; and
6.27 	(c) The part conveyed is part of or constitutes a subdivision as defined in section 462.352, 
6.28 	subdivision 12.
6.29 		Subd. 2.Conditions allowing transfer. (a) Notwithstanding the provisions of subdivision 
6.30 	1, the county auditor may transfer or divide the land and its net tax capacity and may certify 
7.1 	the instrument if the instrument contains a certification by the clerk of the municipality or 
7.2 	designated county planning official:
7.3 	(a) (1) that the municipality's or county's subdivision regulations do not apply;
7.4 	(b) (2) that the subdivision has been approved by the governing body of the municipality
7.5 	or county; or
7.6 	(c) (3) that the restrictions on the division of taxes and filing and recording have been 
7.7 	waived by resolution of the governing body of the municipality or county in the particular 
7.8 	case because compliance would create an unnecessary hardship and failure to comply would 
7.9 	not interfere with the purpose of the regulations.
7.10 	(b) If any of the conditions for certification by the municipality or county as provided 
7.11 	in this subdivision exist and the municipality or county does not certify that they exist within 
7.12 	24 hours after the instrument of conveyance has been presented to the clerk of the 
7.13 	municipality or designated county planning official, the provisions of subdivision 1 do not 
7.14 	apply.
7.15 	(c) If an unexecuted instrument is presented to the municipality or county and any of 
7.16 	the conditions for certification by the municipality or county as provided in this subdivision 
7.17 	exist, the unexecuted instrument must be certified by the clerk of the municipality or the 
7.18 	designated county planning official.
7.19 		Subd. 3.Applicability of restrictions. (a) This section does not apply to the exceptions 
7.20 	set forth in section 272.12.
7.21 	(b) This section applies only to land within municipalities or counties which choose to 
7.22 	be governed by its provisions. A municipality or county may choose to have this section 
7.23 	apply to the property within its boundaries by filing a certified copy of a resolution of its 
7.24 	governing body making that choice with the auditor and recorder of the county in which it 
7.25 	is located.

7.26 	EFFECTIVE DATE. This section is effective the day following final enactment.

7.27 	Sec. 7. Minnesota Statutes 2016, section 273.13, subdivision 34, is amended to read:
7.28 		Subd. 34.Homestead of disabled veteran or family caregiver. (a) All or a portion of 
7.29 	the market value of property owned by a veteran and serving as the veteran's homestead 
7.30 	under this section is excluded in determining the property's taxable market value if the 
7.31 	veteran has a service-connected disability of 70 percent or more as certified by the United 
7.32 	States Department of Veterans Affairs. To qualify for exclusion under this subdivision, the 
8.1 	veteran must have been honorably discharged from the United States armed forces, as 
8.2 	indicated by United States Government Form DD214 or other official military discharge 
8.3 	papers.
8.4 	(b)(1) For a disability rating of 70 percent or more, $150,000 of market value is excluded, 
8.5 	except as provided in clause (2); and
8.6 	(2) for a total (100 percent) and permanent disability, $300,000 of market value is 
8.7 	excluded.
8.8 	(c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b), clause 
8.9 	(2), predeceases the veteran's spouse, and if upon the death of the veteran the spouse holds 
8.10 	the legal or beneficial title to the homestead and permanently resides there, the exclusion 
8.11 	shall carry over to the benefit of the veteran's spouse for the current taxes payable year and 
8.12 	for eight additional taxes payable years or until such time as the spouse remarries, or sells, 
8.13 	transfers, or otherwise disposes of the property, whichever comes first. Qualification under 
8.14 	this paragraph requires an annual application under paragraph (h).
8.15 	(d) If the spouse of a member of any branch or unit of the United States armed forces 
8.16 	who dies due to a service-connected cause while serving honorably in active service, as 
8.17 	indicated on United States Government Form DD1300 or DD2064, holds the legal or 
8.18 	beneficial title to a homestead and permanently resides there, the spouse is entitled to the 
8.19 	benefit described in paragraph (b), clause (2), for eight taxes payable years, or until such 
8.20 	time as the spouse remarries or sells, transfers, or otherwise disposes of the property, 
8.21 	whichever comes first.
8.22 	(e) If a veteran meets the disability criteria of paragraph (a) but does not own property 
8.23 	classified as homestead in the state of Minnesota, then the homestead of the veteran's primary 
8.24 	family caregiver, if any, is eligible for the exclusion that the veteran would otherwise qualify 
8.25 	for under paragraph (b).
8.26 	(f) In the case of an agricultural homestead, only the portion of the property consisting 
8.27 	of the house and garage and immediately surrounding one acre of land qualifies for the 
8.28 	valuation exclusion under this subdivision.
8.29 	(g) A property qualifying for a valuation exclusion under this subdivision is not eligible 
8.30 	for the market value exclusion under subdivision 35, or classification under subdivision 22, 
8.31 	paragraph (b).
8.32 	(h) To qualify for a valuation exclusion under this subdivision a property owner must 
8.33 	apply to the assessor by July 1 of each assessment year, except that an annual reapplication 
9.1 	is not required once a property has been accepted for a valuation exclusion under paragraph 
9.2 	(a) and qualifies for the benefit described in paragraph (b), clause (2), and the property 
9.3 	continues to qualify until there is a change in ownership. For an application received after 
9.4 	July 1 of any calendar year, the exclusion shall become effective for the following assessment 
9.5 	year.
9.6 	(i) A first-time application by a qualifying spouse for the market value exclusion under 
9.7 	paragraph (d) must be made any time within two years of the death of the service member.
9.8 	(j) For purposes of this subdivision:
9.9 	(1) "active service" has the meaning given in section 190.05;
9.10 	(2) "own" means that the person's name is present as an owner on the property deed;
9.11 	(3) "primary family caregiver" means a person who is approved by the secretary of the 
9.12 	United States Department of Veterans Affairs for assistance as the primary provider of 
9.13 	personal care services for an eligible veteran under the Program of Comprehensive Assistance 
9.14 	for Family Caregivers, codified as United States Code, title 38, section 1720G; and
9.15 	(4) "veteran" has the meaning given the term in section 197.447.
9.16 	(k) The purpose of this provision of law providing a level of homestead property tax 
9.17 	relief for gravely disabled veterans, their primary family caregivers, and their surviving 
9.18 	spouses is to help ease the burdens of war for those among our state's citizens who bear 
9.19 	those burdens most heavily.

9.20 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2017.

9.21 	Sec. 8. Minnesota Statutes 2016, section 275.025, subdivision 1, is amended to read:
9.22 		Subdivision 1.Levy amount. The state general levy is levied against 
9.23 	commercial-industrial property and seasonal residential recreational property, as defined 
9.24 	in this section. The state general levy base amount for commercial-industrial property is 
9.25 	$592,000,000 $762,664,000 for taxes payable in 2002 2018. The state general levy base 
9.26 	amount for seasonal-recreational property is $43,111,000 for taxes payable in 2018. For 
9.27 	taxes payable in subsequent years, the each levy base amount is increased each year by 
9.28 	multiplying the levy base amount for the prior year by the sum of one plus the rate of 
9.29 	increase, if any, in the implicit price deflator for government consumption expenditures and 
9.30 	gross investment for state and local governments prepared by the Bureau of Economic 
9.31 	Analysts of the United States Department of Commerce for the 12-month period ending 
9.32 	March 31 of the year prior to the year the taxes are payable. The tax under this section is 
10.1 	not treated as a local tax rate under section 469.177 and is not the levy of a governmental 
10.2 	unit under chapters 276A and 473F.
10.3 	The commissioner shall increase or decrease the preliminary or final rate rates for a year 
10.4 	as necessary to account for errors and tax base changes that affected a preliminary or final 
10.5 	rate for either of the two preceding years. Adjustments are allowed to the extent that the 
10.6 	necessary information is available to the commissioner at the time the rates for a year must 
10.7 	be certified, and for the following reasons:
10.8 	(1) an erroneous report of taxable value by a local official;
10.9 	(2) an erroneous calculation by the commissioner; and
10.10 	(3) an increase or decrease in taxable value for commercial-industrial or seasonal 
10.11 	residential recreational property reported on the abstracts of tax lists submitted under section 
10.12 	275.29 that was not reported on the abstracts of assessment submitted under section 270C.89
10.13 	for the same year.
10.14 	The commissioner may, but need not, make adjustments if the total difference in the tax 
10.15 	levied for the year would be less than $100,000.

10.16 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2018.

10.17 	Sec. 9. Minnesota Statutes 2016, section 275.025, subdivision 2, is amended to read:
10.18 		Subd. 2.Commercial-industrial tax capacity. For the purposes of this section, 
10.19 	"commercial-industrial tax capacity" means the tax capacity of all taxable property classified 
10.20 	as class 3 or class 5(1) under section 273.13, except for excluding: (1) the first $100,000 of 
10.21 	market value of each parcel of commercial-industrial net tax capacity as defined under 
10.22 	section 273.13, subdivision 24, clauses (1) and (2); (2)  electric generation attached machinery 
10.23 	under class 3; and (3) property described in section 473.625. County commercial-industrial 
10.24 	tax capacity amounts are not adjusted for the captured net tax capacity of a tax increment 
10.25 	financing district under section 469.177, subdivision 2, the net tax capacity of transmission 
10.26 	lines deducted from a local government's total net tax capacity under section 273.425, or 
10.27 	fiscal disparities contribution and distribution net tax capacities under chapter 276A or 473F.
10.28 	For purposes of this subdivision, the procedures for determining eligibility for tier 1 under 
10.29 	section 273.13, subdivision 24, clauses (1) and (2), shall apply in determining the portion 
10.30 	of a property eligible to be considered within the first $100,000 of market value.

10.31 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2018.

11.1 	Sec. 10. Minnesota Statutes 2016, section 275.025, subdivision 4, is amended to read:
11.2 		Subd. 4.Apportionment and levy of state general tax. Ninety-five percent of The 
11.3 	state general tax must be levied by applying a uniform rate to all commercial-industrial tax 
11.4 	capacity and five percent of the state general tax must be levied by applying a uniform rate 
11.5 	to all seasonal residential recreational tax capacity. On or before October 1 each year, the 
11.6 	commissioner of revenue shall certify the preliminary state general levy rates to each county 
11.7 	auditor that must be used to prepare the notices of proposed property taxes for taxes payable 
11.8 	in the following year. By January 1 of each year, the commissioner shall certify the final 
11.9 	state general levy rate rates to each county auditor that shall be used in spreading taxes.

11.10 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2018.

11.11 	Sec. 11. Minnesota Statutes 2016, section 275.065, subdivision 1, is amended to read:
11.12 		Subdivision 1.Proposed levy. (a) Notwithstanding any law or charter to the contrary, 
11.13 	on or before September 30, each county and each, home rule charter or statutory city, and 
11.14 	special taxing district, excluding the Metropolitan Council and the Metropolitan Mosquito 
11.15 	Control District, shall certify to the county auditor the proposed property tax levy for taxes 
11.16 	payable in the following year. The proposed levy certification date for the Metropolitan 
11.17 	Council shall be as prescribed in sections 473.249 and 473.446. The proposed levy 
11.18 	certification date for the Metropolitan Mosquito Control District shall be as prescribed in 
11.19 	section 473.711.
11.20 	(b) Notwithstanding any law or charter to the contrary, on or before September 15, each 
11.21 	town and each special taxing district, the Metropolitan Council, and the Metropolitan 
11.22 	Mosquito Control District shall adopt and certify to the county auditor a proposed property 
11.23 	tax levy for taxes payable in the following year. For towns, the final certified levy shall also 
11.24 	be considered the proposed levy.
11.25 	(c) On or before September 30, each school district that has not mutually agreed with 
11.26 	its home county to extend this date shall certify to the county auditor the proposed property 
11.27 	tax levy for taxes payable in the following year. Each school district that has agreed with 
11.28 	its home county to delay the certification of its proposed property tax levy must certify its 
11.29 	proposed property tax levy for the following year no later than October 7. The school district 
11.30 	shall certify the proposed levy as:
11.31 	(1) a specific dollar amount by school district fund, broken down between voter-approved 
11.32 	and non-voter-approved levies and between referendum market value and tax capacity 
11.33 	levies; or
12.1 	(2) the maximum levy limitation certified by the commissioner of education according 
12.2 	to section 126C.48, subdivision 1.
12.3 	(d) If the board of estimate and taxation or any similar board that establishes maximum 
12.4 	tax levies for taxing jurisdictions within a first class city certifies the maximum property 
12.5 	tax levies for funds under its jurisdiction by charter to the county auditor by the date specified 
12.6 	in paragraph (a), the city shall be deemed to have certified its levies for those taxing 
12.7 	jurisdictions.
12.8 	(e) For purposes of this section, "special taxing district" means a special taxing district 
12.9 	as defined in section 275.066. Intermediate school districts that levy a tax under chapter 
12.10 	124 or 136D, joint powers boards established under sections 123A.44 to 123A.446, and 
12.11 	Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special 
12.12 	taxing districts for purposes of this section.
12.13 	(f) At the meeting at which a taxing authority, other than a town, adopts its proposed 
12.14 	tax levy under this subdivision, the taxing authority shall announce the time and place of 
12.15 	its subsequent regularly scheduled meetings at which the budget and levy will be discussed 
12.16 	and at which the public will be allowed to speak. The time and place of those meetings must 
12.17 	be included in the proceedings or summary of proceedings published in the official newspaper 
12.18 	of the taxing authority under section 123B.09, 375.12, or 412.191.

12.19 	EFFECTIVE DATE. This section is effective beginning with proposed levy 
12.20 	certifications for taxes payable in 2018.

12.21 	Sec. 12. Minnesota Statutes 2016, section 275.066, is amended to read:
12.22 	275.066 SPECIAL TAXING DISTRICTS; DEFINITION.
12.23 	For the purposes of property taxation and property tax state aids, the term "special taxing 
12.24 	districts" includes the following entities:
12.25 	(1) watershed districts under chapter 103D;
12.26 	(2) sanitary districts under sections 442A.01 to 442A.29;
12.27 	(3) regional sanitary sewer districts under sections 115.61 to 115.67;
12.28 	(4) regional public library districts under section 134.201;
12.29 	(5) park districts under chapter 398;
12.30 	(6) regional railroad authorities under chapter 398A;
12.31 	(7) hospital districts under sections 447.31 to 447.38;
13.1 	(8) St. Cloud Metropolitan Transit Commission under sections 458A.01 to 458A.15;
13.2 	(9) Duluth Transit Authority under sections 458A.21 to 458A.37;
13.3 	(10) regional development commissions under sections 462.381 to 462.398;
13.4 	(11) housing and redevelopment authorities under sections 469.001 to 469.047;
13.5 	(12) port authorities under sections 469.048 to 469.068;
13.6 	(13) economic development authorities under sections 469.090 to 469.1081;
13.7 	(14) Metropolitan Council under sections 473.123 to 473.549;
13.8 	(15) Metropolitan Airports Commission under sections 473.601 to 473.679;
13.9 	(16) Metropolitan Mosquito Control Commission under sections 473.701 to 473.716;
13.10 	(17) Morrison County Rural Development Financing Authority under Laws 1982, chapter 
13.11 	437, section 1;
13.12 	(18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 6;
13.13 	(19) East Lake County Medical Clinic District under Laws 1989, chapter 211, sections 
13.14 	1 to 6;
13.15 	(20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article 5, 
13.16 	section 39;
13.17 	(21) Middle Mississippi River Watershed Management Organization under sections 
13.18 	103B.211 and 103B.241;
13.19 	(22) emergency medical services special taxing districts under section 144F.01;
13.20 	(23) a county levying under the authority of section 103B.241, 103B.245, or 103B.251, 
13.21 	or 103C.331;
13.22 	(24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home 
13.23 	under Laws 2003, First Special Session chapter 21, article 4, section 12;
13.24 	(25) an airport authority created under section 360.0426; and
13.25 	(26) any other political subdivision of the state of Minnesota, excluding counties, school 
13.26 	districts, cities, and towns, that has the power to adopt and certify a property tax levy to the 
13.27 	county auditor, as determined by the commissioner of revenue.

13.28 	EFFECTIVE DATE. This section is effective for taxes payable in 2018 and thereafter.

14.1 	Sec. 13. Minnesota Statutes 2016, section 275.07, subdivision 1, is amended to read:
14.2 		Subdivision 1.Certification of levy. (a) Except as provided under paragraph (b), the 
14.3 	taxes voted by cities, counties, school districts, and special districts shall be certified by the 
14.4 	proper authorities to the county auditor on or before five working days after December 20 
14.5 	in each year. A town must certify the levy adopted by the town board to the county auditor 
14.6 	by September 15 each year. If the town board modifies the levy at a special town meeting 
14.7 	after September 15, the town board must recertify its levy to the county auditor on or before 
14.8 	five working days after December 20. If a city, town, county, school district, or special 
14.9 	district fails to certify its levy by that date, its levy shall be the amount levied by it for the 
14.10 	preceding year.
14.11 	(b)(i) The taxes voted by counties under sections 103B.241, 103B.245, and 103B.251, 
14.12 	and 103C.331 shall be separately certified by the county to the county auditor on or before 
14.13 	five working days after December 20 in each year. The taxes certified shall not be reduced 
14.14 	by the county auditor by the aid received under section 273.1398, subdivision 3. If a county 
14.15 	fails to certify its levy by that date, its levy shall be the amount levied by it for the preceding 
14.16 	year.
14.17 	(ii) For purposes of the proposed property tax notice under section 275.065 and the 
14.18 	property tax statement under section 276.04, for the first year in which the county implements 
14.19 	the provisions of this paragraph, the county auditor shall reduce the county's levy for the 
14.20 	preceding year to reflect any amount levied for water management purposes under clause 
14.21 	(i) included in the county's levy.

14.22 	EFFECTIVE DATE. This section is effective for taxes payable in 2018 and thereafter.

14.23 	Sec. 14. Minnesota Statutes 2016, section 276.11, subdivision 1, is amended to read:
14.24 		Subdivision 1.Generally. As soon as practical after the settlement day determined in 
14.25 	section 276.09, the county treasurer shall pay to the treasurer of a town, city, school district, 
14.26 	or special district, on the warrant of the county auditor, all receipts of taxes levied by the 
14.27 	taxing district and deliver up all orders and other evidences of indebtedness of the taxing 
14.28 	district, taking triplicate receipts for them. The treasurer shall file one of the receipts with 
14.29 	the county auditor, and shall return one by mail on the day of its receipt to the clerk of the 
14.30 	town, city, school district, or special district to which payment was made. The clerk shall 
14.31 	keep the receipt in the clerk's office. Upon written request of the taxing district, to the extent 
14.32 	practicable, the county treasurer shall make partial payments of amounts collected 
14.33 	periodically in advance of the next settlement and distribution. A statement prepared by the 
14.34 	county treasurer must accompany each payment. It must state the years for which taxes 
15.1 	included in the payment were collected and, for each year, the amount of the taxes and any 
15.2 	penalties on the tax. Upon written request of a taxing district, except school districts, the 
15.3 	county treasurer shall pay at least 70 percent of the estimated collection within 30 days after 
15.4 	the settlement date determined in section 276.09. Within seven eight business days after 
15.5 	the due date, or 28 calendar days after the postmark date on the envelopes containing real 
15.6 	or personal property tax statements, whichever is latest, the county treasurer shall pay to 
15.7 	the treasurer of the school districts 50 percent of the estimated collections arising from taxes 
15.8 	levied by and belonging to the school district, unless the school district elects to receive 50 
15.9 	percent of the estimated collections arising from taxes levied by and belonging to the school 
15.10 	district after making a proportionate reduction to reflect any loss in collections as the result 
15.11 	of any delay in mailing tax statements. In that case, 50 percent of those adjusted, estimated 
15.12 	collections shall be paid by the county treasurer to the treasurer of the school district within 
15.13 	seven business days of the due date. The remaining 50 percent of the estimated collections 
15.14 	must be paid to the treasurer of the school district within the next seven business days of 
15.15 	the later of the dates in the preceding sentence, unless the school district elects to receive 
15.16 	the remainder of its estimated collections after a proportionate reduction has been made to 
15.17 	reflect any loss in collections as the result of any delay in mailing tax statements. In that 
15.18 	case, the remaining 50 percent of those adjusted, estimated collections shall be paid by the 
15.19 	county treasurer to the treasurer of the school district within 14 days of the due date. The 
15.20 	treasurer shall pay the balance of the amounts collected to a municipal corporation or other 
15.21 	body within 60 days after the settlement date determined in section 276.09. After 45 days 
15.22 	interest at an annual rate of eight percent accrues and must be paid to the taxing district. 
15.23 	Interest must be paid upon appropriation from the general revenue fund of the county. If 
15.24 	not paid, it may be recovered by the taxing district, in a civil action.

15.25 	EFFECTIVE DATE. This section is effective for property taxes payable in 2018 and 
15.26 	thereafter.

15.27 	Sec. 15. Minnesota Statutes 2016, section 276.111, is amended to read:
15.28 	276.111 DISTRIBUTIONS AND FINAL YEAR-END SETTLEMENT.
15.29 	Within seven eight business days after October 15, the county treasurer shall pay to the 
15.30 	school districts 50 percent of the estimated collections arising from taxes levied by and 
15.31 	belonging to the school district from the settlement day determined in section 276.09 to 
15.32 	October 20. The remaining 50 percent of the estimated tax collections must be paid to the 
15.33 	school district within the next seven business days. Within ten 11 business days after 
15.34 	November 15, the county treasurer shall pay to the school district 100 percent of the estimated 
16.1 	collections arising from taxes levied by and belonging to the school districts from October 
16.2 	20 to November 20.
16.3 	Within ten 11 business days after November 15, the county treasurer shall pay to each 
16.4 	taxing district, except any school district, 100 percent of the estimated collections arising 
16.5 	from taxes levied by and belonging to each taxing district from the settlement day determined 
16.6 	in section 276.09 to November 20.
16.7 	On or before January 5, the county treasurer shall make full settlement with the county 
16.8 	auditor of all receipts collected from the settlement day determined in section 276.09 to 
16.9 	December 31. After subtracting any tax distributions that have been made to the taxing 
16.10 	districts in October and November, the treasurer shall pay to each of the taxing districts on 
16.11 	or before January 25, the balance of the tax amounts collected on behalf of each taxing 
16.12 	district. Interest accrues at an annual rate of eight percent and must be paid to the taxing 
16.13 	district if this final settlement amount is not paid by January 25. Interest must be paid upon 
16.14 	appropriation from the general revenue fund of the county. If not paid, it may be recovered 
16.15 	by the taxing district in a civil action.

16.16 	EFFECTIVE DATE. This section is effective for property taxes payable in 2018 and 
16.17 	thereafter.

16.18 	Sec. 16. Minnesota Statutes 2016, section 278.12, is amended to read:
16.19 	278.12 REFUNDS OF OVERPAYMENT.
16.20 	If upon final determination the petitioner has paid more than the amount so determined 
16.21 	to be due, judgment shall be entered in favor of the petitioner for such excess, and upon 
16.22 	filing a copy thereof with the county auditor the auditor shall forthwith draw a warrant upon 
16.23 	the county treasurer for the payment thereof; provided that, with the consent of the petitioner, 
16.24 	the county auditor may, in lieu of drawing such warrant, issue to the petitioner a certificate 
16.25 	stating the amount of such judgment, which amount may be used to apply upon any taxes 
16.26 	due or to become due over a prescribed period of years for the taxing district or districts 
16.27 	whose taxes or assessments are reduced, or their successors in the event of a reorganization 
16.28 	or reincorporation of any such taxing district. In the event the auditor shall issue a warrant 
16.29 	for refund or certificates, the amount thereof shall be charged to the state and other taxing 
16.30 	districts in proportion to the amount of their respective taxes included in the levy and deduct 
16.31 	the same in the subsequent distribution of any tax proceeds to the state or such taxing 
16.32 	districts, and upon receiving any such certificate in payment of other taxes, the amount 
16.33 	thereof shall be distributed to the state and other taxing districts in proportion to the amount 
16.34 	of their respective taxes included in the levy; provided that if in the judgment the levy of 
17.1 	one or more of the districts be found to be illegal, to the extent that the tax so levied is 
17.2 	reduced on account of the illegal levies, the amount to be charged back shall be charged to 
17.3 	the districts and the amount thereof deducted from any distributions thereafter made to them.

17.4 	EFFECTIVE DATE. This section is effective for refunds for overpayment of taxes 
17.5 	payable in 2017 and thereafter.

17.6 	Sec. 17. Minnesota Statutes 2016, section 278.14, subdivision 1, is amended to read:
17.7 		Subdivision 1.Applicability. A county must pay a refund of a mistakenly billed tax as 
17.8 	provided in this section. As used in this section, "mistakenly billed tax" means an amount 
17.9 	of property tax that was billed, to the extent the amount billed exceeds the accurate tax 
17.10 	amount due to a misclassification of the owner's property under section 273.13 or a
17.11 	mathematical error in the calculation of the tax on the owner's property, together with any 
17.12 	penalty or interest paid on that amount. This section applies only to taxes payable in the 
17.13 	current year and the two prior years. As used in this section, "mathematical error" is limited 
17.14 	to an error in:
17.15 	(1) converting the market value of a property to tax capacity or to a referendum market 
17.16 	value;
17.17 	(2) application of the tax rate as computed by the auditor under sections 275.08, 
17.18 	subdivisions 1b, 1c, and 1d; 276A.06, subdivisions 4 and 5; and 473F.07, subdivisions 4 
17.19 	and 5, to the property's tax capacity or referendum market value; or
17.20 	(3) calculation of or eligibility for a credit.
17.21 	The remedy provided under this section does not apply to a misclassification under 
17.22 	section 273.13 that is due to the failure of the property owner to apply for the correct 
17.23 	classification as required by law.

17.24 	EFFECTIVE DATE. This section is effective based on property taxes payable in 2017 
17.25 	and thereafter.

17.26 	Sec. 18. Minnesota Statutes 2016, section 279.01, subdivision 1, is amended to read:
17.27 		Subdivision 1.Due dates; penalties. Except as provided in subdivisions 3 to 5, on May 
17.28 	16 or 21 days after the postmark date on the envelope containing the property tax statement, 
17.29 	whichever is later, a penalty accrues and thereafter is charged upon all unpaid taxes on real 
17.30 	estate on the current lists in the hands of the county treasurer. The (a) When the taxes against 
17.31 	any tract or lot exceed $100, one-half of the amount of tax due must be paid prior to May 
17.32 	16, and the remaining one-half must be paid prior to the following October 16. If either tax 
18.1 	amount is unpaid as of its due date, a penalty is imposed at a rate of two percent on homestead 
18.2 	property until May 31 and four percent on nonhomestead property. If complete payment 
18.3 	has not been made by the first day of the month following either due date, an additional 
18.4 	penalty of two percent on June 1. The penalty on nonhomestead property is at a rate of four 
18.5 	percent until May 31 homestead property and eight four percent on June 1. This penalty 
18.6 	does not accrue until June 1 of each year, or 21 days after the postmark date on the envelope 
18.7 	containing the property tax statements, whichever is later, on commercial use real property 
18.8 	used for seasonal residential recreational purposes and classified as class 1c or 4c, and on 
18.9 	other commercial use real property classified as class 3a, provided that over 60 percent of 
18.10 	the gross income earned by the enterprise on the class 3a property is earned during the 
18.11 	months of May, June, July, and August. In order for the first half of the tax due on class 3a 
18.12 	property to be paid after May 15 and before June 1, or 21 days after the postmark date on 
18.13 	the envelope containing the property tax statement, whichever is later, without penalty, the 
18.14 	owner of the property must attach an affidavit to the payment attesting to compliance with 
18.15 	the income provision of this subdivision nonhomestead property is imposed. Thereafter, 
18.16 	for both homestead and nonhomestead property, on the first day of each subsequent month 
18.17 	beginning July 1, up to and including October 1 following through December, an additional 
18.18 	penalty of one percent for each month accrues and is charged on all such unpaid taxes 
18.19 	provided that if the due date was extended beyond May 15 as the result of any delay in 
18.20 	mailing property tax statements no additional penalty shall accrue if the tax is paid by the 
18.21 	extended due date. If the tax is not paid by the extended due date, then all penalties that 
18.22 	would have accrued if the due date had been May 15 shall be charged. When the taxes 
18.23 	against any tract or lot exceed $100, one-half thereof may be paid prior to May 16 or 21 
18.24 	days after the postmark date on the envelope containing the property tax statement, whichever 
18.25 	is later; and, if so paid, no penalty attaches; the remaining one-half may be paid at any time 
18.26 	prior to October 16 following, without penalty; but, if not so paid, then a penalty of two 
18.27 	percent accrues thereon for homestead property and a penalty of four percent on 
18.28 	nonhomestead property. Thereafter, for homestead property, on the first day of November 
18.29 	an additional penalty of four percent accrues and on the first day of December following, 
18.30 	an additional penalty of two percent accrues and is charged on all such unpaid taxes. 
18.31 	Thereafter, for nonhomestead property, on the first day of November and December 
18.32 	following, an additional penalty of four percent for each month accrues and is charged on 
18.33 	all such unpaid taxes. If one-half of such taxes are not paid prior to May 16 or 21 days after 
18.34 	the postmark date on the envelope containing the property tax statement, whichever is later, 
18.35 	the same may be paid at any time prior to October 16, with accrued penalties to the date of 
18.36 	payment added, and thereupon no penalty attaches to the remaining one-half until October 
19.1 	16 following the penalty must not exceed eight percent in the case of homestead property, 
19.2 	or 12 percent in the case of nonhomestead property.
19.3 	(b) If the property tax statement was not postmarked prior to April 25, the first half 
19.4 	payment due date in paragraph (a) shall be 21 days from the postmark date of the property 
19.5 	tax statement, and all penalties referenced in paragraph (a) shall be determined with regard 
19.6 	to the later due date.
19.7 	(c) In the case of a tract or lot with taxes of $100 or less, the due date and penalties as 
19.8 	specified in paragraph (a) or (b) for the first half payment shall apply to the entire amount 
19.9 	of the tax due.
19.10 	(d) For commercial use real property used for seasonal residential recreational purposes 
19.11 	and classified as class 1c or 4c, and on other commercial use real property classified as class 
19.12 	3a, provided that over 60 percent of the gross income earned by the enterprise on the class 
19.13 	3a property is earned during the months of May, June, July, and August, penalty does not 
19.14 	accrue until June 1 of each year. For a class 3a property to qualify for the later due date, the 
19.15 	owner of the property must attach an affidavit to the payment attesting to compliance with 
19.16 	the income requirements of this paragraph.
19.17 	(e) This section applies to payment of personal property taxes assessed against 
19.18 	improvements to leased property, except as provided by section 277.01, subdivision 3.
19.19 	(f) A county may provide by resolution that in the case of a property owner that has 
19.20 	multiple tracts or parcels with aggregate taxes exceeding $100, payments may be made in 
19.21 	installments as provided in this subdivision.
19.22 	(g) The county treasurer may accept payments of more or less than the exact amount of 
19.23 	a tax installment due. Payments must be applied first to the oldest installment that is due 
19.24 	but which has not been fully paid. If the accepted payment is less than the amount due, 
19.25 	payments must be applied first to the penalty accrued for the year or the installment being 
19.26 	paid. Acceptance of partial payment of tax does not constitute a waiver of the minimum 
19.27 	payment required as a condition for filing an appeal under section 278.03 or any other law, 
19.28 	nor does it affect the order of payment of delinquent taxes under section 280.39.

19.29 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2018.

19.30 	Sec. 19. Minnesota Statutes 2016, section 279.01, subdivision 2, is amended to read:
19.31 		Subd. 2.Abatement of penalty. (a) The county board may, with the concurrence of the 
19.32 	county treasurer, delegate to the county treasurer the power to abate the penalty provided 
19.33 	for late payment of taxes in the current year. Notwithstanding section 270C.86, if any county 
20.1 	board so elects, the county treasurer may abate the penalty on finding that the imposition 
20.2 	of the penalty would be unjust and unreasonable.
20.3 	(b) The county treasurer shall abate the penalty provided for late payment of taxes in 
20.4 	the current year if the property tax payment is delivered by mail to the county treasurer and 
20.5 	the envelope containing the payment is postmarked by the United States Postal Service 
20.6 	within one business day of the due date prescribed under this section, but only if the property 
20.7 	owner requesting the abatement has not previously received an abatement of penalty for 
20.8 	late payment of tax under this paragraph.

20.9 	EFFECTIVE DATE. This section is effective for property taxes payable in 2018 and 
20.10 	thereafter.

20.11 	Sec. 20. Minnesota Statutes 2016, section 279.01, subdivision 3, is amended to read:
20.12 		Subd. 3.Agricultural property. (a) In the case of class 1b agricultural homestead, class 
20.13 	2a agricultural homestead property, and class 2a agricultural nonhomestead property, no 
20.14 	penalties shall attach to the second one-half property tax payment as provided in this section 
20.15 	if paid by November 15. Thereafter for class 1b agricultural homestead and class 2a 
20.16 	homestead property, on November 16 following, a penalty of six percent shall accrue and 
20.17 	be charged on all such unpaid taxes and on December 1 following, an additional two percent 
20.18 	shall be charged on all such unpaid taxes. Thereafter for class 2a agricultural nonhomestead 
20.19 	property, on November 16 following, a penalty of eight percent shall accrue and be charged 
20.20 	on all such unpaid taxes and on December 1 following, an additional four percent shall be 
20.21 	charged on all such unpaid taxes, penalties shall attach as provided in subdivision 1.
20.22 	If the owner of class 1b agricultural homestead or class 2a agricultural property receives 
20.23 	a consolidated property tax statement that shows only an aggregate of the taxes and special 
20.24 	assessments due on that property and on other property not classified as class 1b agricultural 
20.25 	homestead or class 2a agricultural property, the aggregate tax and special assessments shown 
20.26 	due on the property by the consolidated statement will be due on November 15.
20.27 	(b) Notwithstanding paragraph (a), for taxes payable in 2010 and 2011, for any class 2b 
20.28 	property that was subject to a second-half due date of November 15 for taxes payable in 
20.29 	2009, the county shall not impose, or if imposed, shall abate penalty amounts in excess of 
20.30 	those that would apply as if the second-half due date were November 15.

20.31 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2018.

21.1 	Sec. 21. Minnesota Statutes 2016, section 279.03, subdivision 2, is amended to read:
21.2 		Subd. 2.Rate for composite judgment; rate for homestead composite judgment, 
21.3 	repurchase of forfeited homestead property, and sale of forfeited property. (a) Except 
21.4 	as provided in paragraph (b), amounts included in composite judgments authorized by 
21.5 	section 279.37, subdivision 1, are subject to interest at the rate calculated under subdivision 
21.6 	1a. During each calendar year, interest shall accrue on the unpaid balance of the composite 
21.7 	judgment from the time it is confessed until it is paid. The interest rate established at the 
21.8 	time the judgment is confessed is fixed for the duration of that judgment.
21.9 	(b) The following amounts are subject to interest as provided in paragraph (c):
21.10 	(1) amounts included in composite judgments on parcels classified as 1a or 1b and used 
21.11 	as the homestead of the owner;
21.12 	(2) amounts in contracts for repurchase of property classified as 1a or 1b at the time of 
21.13 	forfeiture or at the time that the repurchase application is approved; and
21.14 	(3) sales of forfeited property pursuant to section 282.01, subdivision 4.
21.15 	(b) A confession of judgment covering any part of a parcel classified as 1a or 1b, and 
21.16 	used as the homestead of the owner, is subject to interest at the rate provided in section 
21.17 	279.37, subdivision 2, paragraph (b). This paragraph does not apply to a relative homestead 
21.18 	under section 273.124, subdivision 1, paragraph (c).
21.19 	(c) By October 15 each year the commissioner shall set the interest rate under this 
21.20 	subdivision at the greater of five percent or two percent above the prime rate charged by 
21.21 	banks during the six-month period ending on September 30 of that year, rounded to the 
21.22 	nearest full percent, provided that the rate must not exceed the maximum annum rate specified 
21.23 	under section 279.03, subdivision 1a. By November 1 of each year the commissioner must 
21.24 	certify the rate to the county auditor. The rate of interest becomes effective on January 1 of 
21.25 	the immediately succeeding year. The commissioner's determination under this subdivision 
21.26 	is not a rule subject to the Administrative Procedure Act in chapter 14, including section 
21.27 	14.386.
21.28 	(d) For the purposes of this subdivision, "prime rate charged by banks" means the average 
21.29 	predominant prime rate quoted by commercial banks to large businesses, as determined by 
21.30 	the Board of Governors of the Federal Reserve System.

21.31 	EFFECTIVE DATE. This section is effective for composite judgments, repurchase 
21.32 	contracts, and sales of forfeited property occurring after July 1, 2018.

22.1 	Sec. 22. Minnesota Statutes 2016, section 279.37, subdivision 2, is amended to read:
22.2 		Subd. 2.Installment payments. (a) The owner of any such parcel, or any person to 
22.3 	whom the right to pay taxes has been given by statute, mortgage, or other agreement, may 
22.4 	make and file with the county auditor of the county in which the parcel is located a written 
22.5 	offer to pay the current taxes each year before they become delinquent, or to contest the 
22.6 	taxes under chapter 278 and agree to confess judgment for the amount provided, as 
22.7 	determined by the county auditor. By filing the offer, the owner waives all irregularities in 
22.8 	connection with the tax proceedings affecting the parcel and any defense or objection which 
22.9 	the owner may have to the proceedings, and also waives the requirements of any notice of 
22.10 	default in the payment of any installment or interest to become due pursuant to the composite 
22.11 	judgment to be so entered. Unless the property is subject to subdivision 1a, with the offer, 
22.12 	the owner shall (i) tender one-tenth of the amount of the delinquent taxes, costs, penalty, 
22.13 	and interest, and (ii) tender all current year taxes and penalty due at the time the confession 
22.14 	of judgment is entered. In the offer, the owner shall agree to pay the balance in nine equal 
22.15 	installments, with interest as provided in section 279.03, payable annually on installments 
22.16 	remaining unpaid from time to time, on or before December 31 of each year following the 
22.17 	year in which judgment was confessed.
22.18 	(b) For property which qualifies under section 279.03, subdivision 2, paragraph (b), each 
22.19 	year the commissioner shall set the interest rate for offers made under paragraph (a) at the 
22.20 	greater of five percent or two percent above the prime rate charged by banks during the 
22.21 	six-month period ending on September 30 of that year, rounded to the nearest full percent, 
22.22 	provided that the rate must not exceed the maximum annum rate specified under section 
22.23 	279.03, subdivision 1a. The rate of interest becomes effective on January 1 of the immediately 
22.24 	succeeding year. The commissioner's determination under this subdivision is not a rule 
22.25 	subject to the Administrative Procedure Act in chapter 14, including section 14.386. If a 
22.26 	default occurs in the payments under any confessed judgment entered under this paragraph, 
22.27 	the taxes and penalties due are subject to the interest rate specified in section 279.03.
22.28 	Amounts entered in judgment bear interest at the rate provided in section 279.03, subdivision 
22.29 	1a, unless the parcel is classified as 1a or 1b, and is used as the homestead of the owner, in 
22.30 	which case the rate provided in section 279.03, subdivision 2, shall apply. A parcel that is 
22.31 	classified as relative homestead under section 273.124, subdivision 1, paragraph (c), is 
22.32 	subject to interest at the rate provided in section 279.03, subdivision 1a.
22.33 	(c) Interest shall commence with the date the judgment is entered. During each calendar 
22.34 	year, interest shall accrue on the unpaid balance of the composite judgment from the time 
23.1 	it is confessed until it is paid. The interest rate established at the time the judgment is 
23.2 	confessed is fixed for the duration of that judgment.
23.3 	(d) If a default occurs in the payments under any confessed judgment, the taxes and 
23.4 	penalties due are subject to the interest rate specified in section 279.03, subdivision 1a, 
23.5 	regardless of the classification of the parcel. For the purposes of this subdivision:
23.6 	(1) the term "prime rate charged by banks" means the average predominant prime rate 
23.7 	quoted by commercial banks to large businesses, as determined by the Board of Governors 
23.8 	of the Federal Reserve System; and
23.9 	(2) "default" means the cancellation of the confession of judgment due to nonpayment 
23.10 	of the current year tax or failure to make any installment payment required by this confessed 
23.11 	judgment within 60 days from the date on which payment was due.
23.12 	(c) The interest rate established at the time judgment is confessed is fixed for the duration 
23.13 	of the judgment. By October 15 of each year, the commissioner of revenue must determine 
23.14 	the rate of interest as provided under paragraph (b) and, by November 1 of each year, must 
23.15 	certify the rate to the county auditor.
23.16 	(d) (e) A qualified property owner eligible to enter into a second confession of judgment 
23.17 	may do so at the interest rate provided in paragraph (b).
23.18 	(e) Repurchase agreements or contracts for repurchase for properties being repurchased 
23.19 	under section 282.261 are not eligible to receive the interest rate under paragraph (b).
23.20 	(f) The offer must be substantially as follows:
23.21 	"To the court administrator of the district court of ........... county, I, ....................., am 
23.22 	the owner of the following described parcel of real estate located in .................... county, 
23.23 	Minnesota:
23.24 	.............................. Upon that real estate there are delinquent taxes for the year ........., and 
23.25 	prior years, as follows: (here insert year of delinquency and the total amount of delinquent 
23.26 	taxes, costs, interest, and penalty). By signing this document I offer to confess judgment in 
23.27 	the sum of $...... and waive all irregularities in the tax proceedings affecting these taxes and 
23.28 	any defense or objection which I may have to them, and direct judgment to be entered for 
23.29 	the amount stated above, minus the sum of $............, to be paid with this document, which 
23.30 	is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and interest stated above. 
23.31 	I agree to pay the balance of the judgment in nine or four equal, annual installments, with 
23.32 	interest as provided in section 279.03, payable annually, on the installments remaining 
23.33 	unpaid. I agree to pay the installments and interest on or before December 31 of each year 
24.1 	following the year in which this judgment is confessed and current taxes each year before 
24.2 	they become delinquent, or within 30 days after the entry of final judgment in proceedings 
24.3 	to contest the taxes under chapter 278.
24.4 	Dated .............., ......."

24.5 	EFFECTIVE DATE. This section is effective for sales and repurchases occurring after 
24.6 	January 1, 2018.

24.7 	Sec. 23. Minnesota Statutes 2016, section 282.01, subdivision 4, is amended to read:
24.8 		Subd. 4.Sale: method, requirements, effects. The sale authorized under subdivision 
24.9 	3 must be conducted by the county auditor at the county seat of the county in which the 
24.10 	parcels lie, except that in St. Louis and Koochiching Counties, the sale may be conducted 
24.11 	in any county facility within the county. The sale must not be for less than the appraised 
24.12 	value except as provided in subdivision 7a. The parcels must be sold for cash only, unless 
24.13 	the county board of the county has adopted a resolution providing for their sale on terms, 
24.14 	in which event the resolution controls with respect to the sale. When the sale is made on 
24.15 	terms other than for cash only (1) a payment of at least ten percent of the purchase price 
24.16 	must be made at the time of purchase, and the balance must be paid in no more than ten 
24.17 	equal annual installments, or (2) the payments must be made in accordance with county 
24.18 	board policy, but in no event may the board require more than 12 installments annually, 
24.19 	and the contract term must not be for more than ten years. Standing timber or timber products 
24.20 	must not be removed from these lands until an amount equal to the appraised value of all 
24.21 	standing timber or timber products on the lands at the time of purchase has been paid by 
24.22 	the purchaser. If a parcel of land bearing standing timber or timber products is sold at public 
24.23 	auction for more than the appraised value, the amount bid in excess of the appraised value 
24.24 	must be allocated between the land and the timber in proportion to their respective appraised 
24.25 	values. In that case, standing timber or timber products must not be removed from the land 
24.26 	until the amount of the excess bid allocated to timber or timber products has been paid in 
24.27 	addition to the appraised value of the land. The purchaser is entitled to immediate possession, 
24.28 	subject to the provisions of any existing valid lease made in behalf of the state.
24.29 	For sales occurring on or after July 1, 1982, the unpaid balance of the purchase price is 
24.30 	subject to interest at the rate determined pursuant to section 549.09. The unpaid balance of 
24.31 	the purchase price for sales occurring after December 31, 1990, is subject to interest at the 
24.32 	rate determined provided in section 279.03, subdivision 1a 2, paragraph (c). The interest 
24.33 	rate is subject to change each year on the unpaid balance in the manner provided for rate 
24.34 	changes in section 549.09 or 279.03, subdivision 1a, whichever, is applicable. Interest on 
25.1 	the unpaid contract balance on sales occurring before July 1, 1982, is payable at the rate 
25.2 	applicable to the sale at the time that the sale occurred.

25.3 	EFFECTIVE DATE. This section is effective for sales occurring after January 1, 2018.

25.4 	Sec. 24. Minnesota Statutes 2016, section 282.261, subdivision 2, is amended to read:
25.5 		Subd. 2.Interest rate. The unpaid balance on any repurchase contract approved by the 
25.6 	county board for property classified as 1a or 1b and used as the homestead of the owner at 
25.7 	the time of forfeiture or at the time that the repurchase application is approved is subject to 
25.8 	interest at the rate determined in section 279.03, subdivision 1a 2. The interest rate is subject 
25.9 	to change each year on the unpaid balance in the manner provided for rate changes in section 
25.10 	279.03, subdivision 1a. The unpaid balance on any other repurchase contract approved by 
25.11 	the county board is subject to interest at the rate determined in section 279.03, subdivision 
25.12 	1a, which is subject to change each year in the manner provided for in section 279.03, 
25.13 	subdivision 1a.

25.14 	EFFECTIVE DATE. This section is effective for repurchases occurring after January 
25.15 	1, 2018.

25.16 	Sec. 25. Minnesota Statutes 2016, section 473H.09, is amended to read:
25.17 	473H.09 EARLY TERMINATION.
25.18 		Subdivision 1.Public emergency. Termination of an agricultural preserve earlier than 
25.19 	a date derived through application of section 473H.08 may be permitted only in the event 
25.20 	of a public emergency upon petition from the owner or authority to the governor. The 
25.21 	determination of a public emergency shall be by the governor through executive order 
25.22 	pursuant to sections 4.035 and 12.01 to 12.46. The executive order shall identify the preserve, 
25.23 	the reasons requiring the action and the date of termination.
25.24 		Subd. 2.Death of owner. (a) Within 180 days of the death of an owner, an owner's 
25.25 	spouse, or other qualifying person, the surviving owner may elect to terminate the agricultural 
25.26 	preserve and the covenant allowing the land to be enrolled as an agricultural preserve by 
25.27 	notifying the authority on a form provided by the commissioner of agriculture. Termination 
25.28 	of a covenant under this subdivision must be executed and acknowledged in the manner 
25.29 	required by law to execute and acknowledge a deed.
25.30 	(b) For purposes of this subdivision, the following definitions apply:
26.1 	(1) "qualifying person" includes a partner, shareholder, trustee for a trust that the decedent 
26.2 	was the settlor or a beneficiary of, or member of an entity permitted to own agricultural 
26.3 	land and engage in farming under section 500.24 that owned the agricultural preserve; and
26.4 	(2) "surviving owner" includes the executor of the estate of the decedent, the trustee for 
26.5 	a trust that the decedent was the settlor or a beneficiary of, or an entity permitted to own 
26.6 	farm land under section 500.24 of which the decedent was a partner, shareholder, or member.
26.7 	(c) When an agricultural preserve is terminated under this subdivision, the property is 
26.8 	subject to additional taxes in an amount equal to 50 percent of the taxes actually levied 
26.9 	against the property for the current taxes payable year. The additional taxes are extended 
26.10 	against the property on the tax list for taxes payable in the current year. The additional taxes 
26.11 	must be distributed among the jurisdictions levying taxes on the property in proportion to 
26.12 	the current year's taxes.

26.13 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2016.

26.14 	Sec. 26. Laws 1988, chapter 645, section 3, as amended by Laws 1999, chapter 243, article 
26.15 	6, section 9, Laws 2000, chapter 490, article 6, section 15, Laws 2008, chapter 154, article 
26.16 	2, section 30, and Laws 2013, chapter 143, article 4, section 33, is amended to read:
26.17 	Sec. 3. TAX; PAYMENT OF EXPENSES.
 26.18 	(a) The tax levied by the hospital district under Minnesota Statutes, section 447.34, must 
26.19 	not be levied at a rate that exceeds the amount authorized to be levied under that section. 
26.20 	The proceeds of the tax may be used for all purposes of the hospital district, except as 
26.21 	provided in paragraph (b).
26.22 	(b) 0.015 percent of taxable market value of the tax in paragraph (a) may be used by the 
26.23 	Cook ambulance service and the Orr ambulance service for the purpose of:
26.24 	(1) ambulance acquisitions for the Cook ambulance service and the Orr ambulance 
26.25 	service;
26.26 	(2) attached and portable equipment for use in and for the ambulances; and
26.27 	(3) parts and replacement parts for maintenance and repair of the ambulances, and 
26.28 	administrative, operation, or salary expenses for the Cook ambulance service and the Orr 
26.29 	ambulance service.
26.30 	The money may not be used for administrative, operation, or salary expenses.
27.1 	(c) The part of the levy referred to in paragraph (b) must be administered by the Cook 
27.2 	Hospital and passed on in equal amounts directly to the Cook area ambulance service board 
27.3 	and the city of Orr to be used for the purposes in paragraph (b).

27.4 	EFFECTIVE DATE. This section is effective the day following final enactment.

27.5 	Sec. 27. Laws 1996, chapter 471, article 3, section 51, is amended to read:
27.6 	Sec. 51. RECREATION LEVY FOR SAWYER BY CARLTON COUNTY.
 27.7 		Subdivision 1.Levy authorized. Notwithstanding other law to the contrary, the Carlton 
27.8 	county board of commissioners may levy in and for the unorganized township of Sawyer 
27.9 	an amount up to $1,500 $2,000 annually for recreational purposes, beginning with taxes 
27.10 	payable in 1997 and ending with taxes payable in 2006.
27.11 		Subd. 2.Effective date. This section is effective June 1, 1996, without local approval.

27.12 	EFFECTIVE DATE. This section is effective the day after the Carlton County Board 
27.13 	of Commissioners and its chief clerical officer comply with section 645.021, subdivisions 
27.14 	2 and 3, and applies to taxes payable in 2018.

27.15 	Sec. 28. Laws 2009, chapter 88, article 2, section 46, subdivision 1, as amended by Laws 
27.16 	2013, chapter 143, article 4, section 36, is amended to read:
27.17 		Subdivision 1.Agreement. The city of Cloquet and Perch Lake Township, by resolution 
27.18 	of each of their governing bodies, may establish the Cloquet Area Fire and Ambulance 
27.19 	Special Taxing District for the purpose of providing fire or ambulance services, or both, 
27.20 	throughout the district. In this section, "municipality" means home rule charter and statutory 
27.21 	cities, towns, and Indian tribes. The district may exercise all the powers relating to fire and 
27.22 	ambulance services of the municipalities that receive fire or ambulance services, or both, 
27.23 	from the district. Upon application, any other municipality may join the district with the 
27.24 	agreement of the municipalities that comprise the district at the time of its application to 
27.25 	join.

27.26 	EFFECTIVE DATE. This section is effective in Cloquet and Perch Lake Township 
27.27 	the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the 
27.28 	governing body of each.

27.29 	Sec. 29. Laws 2009, chapter 88, article 2, section 46, subdivision 2, is amended to read:
27.30 		Subd. 2.Board. The Cloquet Area Fire and Ambulance Special Taxing District Board 
27.31 	is governed by a board made up initially of one or more elected officials of the governing 
28.1 	body of each participating municipality in the proportions set out in the establishing 
28.2 	resolution, subject to change as provided in the district's charter, if any, or in the district's 
28.3 	bylaws. Each municipality's representatives serve at the pleasure of that municipality's 
28.4 	governing body.

28.5 	EFFECTIVE DATE. This section is effective in Cloquet and Perch Lake Township 
28.6 	the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the 
28.7 	governing body of each.

28.8 	Sec. 30. Laws 2009, chapter 88, article 2, section 46, subdivision 3, as amended by Laws 
28.9 	2013, chapter 143, article 4, section 37, is amended to read:
28.10 		Subd. 3.Tax. (a) The district board may impose a property tax on taxable property as 
28.11 	provided in this subdivision to pay the costs of providing fire or ambulance services, or 
28.12 	both, throughout the district. The board shall annually determine the total amount of the 
28.13 	levy that is attributable to the cost of providing fire services and the cost of providing 
28.14 	ambulance services within the primary service area. For those municipalities that only 
28.15 	receive ambulance services, the costs for the provision of ambulance services shall be levied 
28.16 	against taxable property within those municipalities at a rate necessary not to exceed 0.019 
28.17 	percent of the estimated market value. For those municipalities that receive both fire and 
28.18 	ambulance services, the tax shall be imposed at a rate that does not exceed 0.2835 percent 
28.19 	of estimated market value.
28.20 	(b) When a member municipality opts to receive fire service from the district or an 
28.21 	additional municipality becomes a member of the district, the cost of providing fire services 
28.22 	to that community shall be determined by the board and added to the maximum levy amount.
28.23 	(c) Each county auditor of a county that contains a municipality subject to the tax under 
28.24 	this section must collect the tax and pay it to the Fire and Ambulance Special Taxing District. 
28.25 	The district may also impose other fees or charges as allowed by law for the provision of 
28.26 	fire and ambulance services.

28.27 	EFFECTIVE DATE. This section is effective in Cloquet and Perch Lake Township 
28.28 	the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the 
28.29 	governing body of each.

28.30 	Sec. 31. Laws 2009, chapter 88, article 2, section 46, subdivision 4, is amended to read:
28.31 		Subd. 4.Public indebtedness. (a) The district may incur debt in the manner provided 
28.32 	for a municipality by Minnesota Statutes, chapter 475, and may issue certificates of 
29.1 	indebtedness or capital notes in the manner provided for a city by Minnesota Statutes, section 
29.2 	412.301, when necessary to accomplish its duties, except that the district may not incur debt 
29.3 	or issue obligations until first obtaining the approval of a majority of the electors voting on 
29.4 	the question of issuing the obligation. The debt service for debt used to finance capital costs 
29.5 	for ambulance service shall be levied against taxable property within the municipalities in 
29.6 	the primary service area. The debt service for debt used to finance capital costs for fire 
29.7 	service shall be levied against taxable property within municipalities receiving fire services. 
29.8 	The district board shall pledge its full faith and credit and taxing power without limitation 
29.9 	as to rate or amount for the payment of the district's debt.
29.10 	(b) For purposes of this subdivision, "municipality" has the definition given in Minnesota 
29.11 	Statutes, sections 475.51, subdivision 2, and 475.521, subdivision 1, paragraph (c).

29.12 	EFFECTIVE DATE. This section is effective in Cloquet and Perch Lake Township 
29.13 	the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the 
29.14 	governing body of each.

29.15 	Sec. 32. Laws 2009, chapter 88, article 2, section 46, subdivision 5, is amended to read:
29.16 		Subd. 5.Withdrawal. Notice of intent to withdraw from participation in the district 
29.17 	may be given only in the month of January, with a minimum of twelve months notice of 
29.18 	intent to withdraw. Withdrawal becomes effective for taxes levied pursuant to subdivision 
29.19 	3 in the year when the notice is given. A property tax on taxable property located in a 
29.20 	withdrawing municipality that has been levied by the district pursuant to subdivision 4 
29.21 	remains in effect until the obligations outstanding on the date of withdrawal are satisfied, 
29.22 	including any property tax levied in connection with refunding such obligations. The district 
29.23 	and its members may also develop and agree upon other continuing obligations after 
29.24 	withdrawal of a municipality.

29.25 	EFFECTIVE DATE. This section is effective in Cloquet and Perch Lake Township 
29.26 	the day after compliance with Minnesota Statutes, section 645.021, subdivision 3, by the 
29.27 	governing body of each.

29.28 	Sec. 33. 2016 TOWNSHIP BOARD APPEALS AND EQUALIZATION COURSE 
29.29 	WAIVER.
 29.30 	If a city or town that conducts local board of appeal and equalization meetings certified 
29.31 	by February 1, 2016, that it was in compliance with the requirements of Minnesota Statutes, 
29.32 	section 274.014, subdivision 2, but no member of the local board who has attended an appeal 
29.33 	and equalization course training within the preceding four years attended the local board's 
30.1 	meeting for 2016, that local board shall have its powers reinstated for the 2017 assessment 
30.2 	by resolution of the governing body of the city or town, and by certifying it is in compliance 
30.3 	with the requirements of Minnesota Statutes, section 274.014, subdivision 2. The resolution 
30.4 	and certification must be provided to the county assessor by February 1, 2017.

30.5 	EFFECTIVE DATE. This section is effective the day following final enactment.

30.6 	Sec. 34. TOWN OF TOFTE; MUNICIPAL HOUSING.
 30.7 	(a) Notwithstanding the provisions of Laws 1988, chapter 516, and Laws 1988, chapter 
30.8 	719, article 19, section 27, the town of Tofte may own and operate within its boundary up 
30.9 	to 12 units of housing for individuals over 55 years of age or families with one member of 
30.10 	the household that is over 55 years of age, or projects that provide housing for individuals 
30.11 	or families with incomes not greater than 120 percent of the median family income, as 
30.12 	estimated by the United States Department of Housing and Urban Development for the 
30.13 	nonmetropolitan county in which the town of Tofte is located.
30.14 	(b) The town of Tofte shall have the powers of a city under Minnesota Statutes, chapter 
30.15 	462C, and the powers of an authority under Minnesota Statutes, sections 469.001 to 469.047, 
30.16 	with respect to this section. Upon the approval of the town board, the town of Tofte may 
30.17 	levy the tax described in Minnesota Statutes, section 469.033, subdivision 6.
30.18 	(c) Nothing in this section shall limit the power of the Cook County/Grand Marais Joint 
30.19 	Economic Development Authority to exercise jurisdiction within the town of Tofte. The 
30.20 	authority to undertake new projects under this section shall expire on June 30, 2018.

30.21 	EFFECTIVE DATE. This section is effective the day after compliance by the governing 
30.22 	body of the town of Tofte with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

30.23 	Sec. 35. SOCCER STADIUM PROPERTY TAX EXEMPTION; SPECIAL 
30.24 	ASSESSMENT.
 30.25 	Any real or personal property acquired, owned, leased, controlled, used, or occupied by 
30.26 	the city of St. Paul for the primary purpose of providing a stadium for a Major League 
30.27 	Soccer team is declared to be acquired, owned, leased, controlled, used, and occupied for 
30.28 	public, governmental, and municipal purposes, and is exempt from ad valorem taxation by 
30.29 	the state or any political subdivision of the state, provided that the properties are subject to 
30.30 	special assessments levied by a political subdivision for a local improvement in amounts 
30.31 	proportionate to and not exceeding the special benefit received by the properties from the 
30.32 	improvement. In determining the special benefit received by the properties, no possible use 
31.1 	of any of the properties in any manner different from their intended use for providing a 
31.2 	Major League Soccer stadium at the time may be considered. Notwithstanding Minnesota 
31.3 	Statutes, section 272.01, subdivision 2, or 273.19, real or personal property subject to a 
31.4 	lease or use agreement between the city and another person for uses related to the purposes 
31.5 	of the operation of the stadium and related parking facilities is exempt from taxation 
31.6 	regardless of the length of the lease or use agreement. This section, insofar as it provides 
31.7 	an exemption or special treatment, does not apply to any real property that is leased for 
31.8 	residential, business, or commercial development or other purposes different from those 
31.9 	necessary to the provision and operation of the stadium.

31.10 	EFFECTIVE DATE. This section is effective upon approval by the St. Paul City 
31.11 	Council and compliance with Minnesota Statutes, section 645.021.

31.12 	Sec. 36. OPTIONAL CANCELLATION OF TAX FORFEITURE FOR CERTAIN 
31.13 	BUILDINGS; ST. LOUIS COUNTY.
 31.14 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
31.15 	the meanings given.
31.16 	(b) "Building PIN" means a parcel identification number that is assigned to a building 
31.17 	and does not include the land upon which the building is located; and
31.18 	(c) "Land PIN" means a parcel identification number that is assigned to land upon which 
31.19 	a building associated with a building PIN is located.
31.20 		Subd. 2.Optional cancellation of tax forfeiture for buildings with building PINs.
 31.21 	Notwithstanding any law to the contrary, if any building associated with a building PIN and 
31.22 	located in St. Louis County forfeits or has forfeited to the state of Minnesota before, on, or 
31.23 	after the date of enactment of this section because of nonpayment of delinquent property 
31.24 	taxes, special assessments, penalties, interest, or costs, the county auditor of St. Louis County 
31.25 	may, with approval from the county board and the commissioner of revenue:
31.26 	(1) cancel the certificate of forfeiture and set aside the forfeiture without reinstating the 
31.27 	unpaid property taxes, special assessments, penalties, interest, or costs; and
31.28 	(2) combine the building PIN with its associated land PIN. When this occurs, the land 
31.29 	PIN is the only surviving parcel identification number, and includes both the building and 
31.30 	the land upon which the building is located.
31.31 		Subd. 3.Cancellation of tax forfeiture; taxation through date of cancellation.
 31.32 	Notwithstanding any law to the contrary, if the county auditor of St. Louis County cancels 
31.33 	a certificate of forfeiture and sets aside a forfeiture in accordance with subdivision 2, the 
32.1 	affected building is not subject to taxation from the date of forfeiture through the date of 
32.2 	cancellation.
32.3 		Subd. 4.Appropriation. $1,000,000 in fiscal year 2017 only is appropriated from the 
32.4 	general fund to the commissioner of revenue for a grant to St. Louis County that shall be 
32.5 	paid on March 31, 2017. The county may only use the grant to remove any building, upon 
32.6 	the request of the landowner, after the county has complied with the provisions of subdivision 
32.7 	2.

32.8 	EFFECTIVE DATE. This section is effective the day following final enactment.

32.9 	Sec. 37. LAKE MILLE LACS AREA PROPERTY TAX ABATEMENT.
 32.10 		Subdivision 1.Abatements authorized. (a) Notwithstanding Minnesota Statutes, section 
32.11 	375.192, the county boards of Aitkin, Crow Wing, and Mille Lacs Counties may grant an 
32.12 	abatement of local property taxes for taxes payable in 2016 provided that:
32.13 	(1) the property is classified as 1c, 3a (excluding utility real and personal property), 
32.14 	4c(1), 4c(10), or 4c(11);
32.15 	(2) on or before June 1, 2017, the taxpayer submits a written application to the county 
32.16 	assessor in the county in which abatement is sought; and
32.17 	(3) the taxpayer meets qualification requirements established in subdivision 3.
32.18 		Subd. 2.Appeals. An appeal may not be taken to the Tax Court from any order of the 
32.19 	county board made pursuant to the exercise of the discretionary authority granted in this 
32.20 	section.
32.21 		Subd. 3.Qualification requirements. To qualify for abatements under this section, a 
32.22 	taxpayer must:
32.23 	(1) be located within one of the following municipalities surrounding Lake Mille Lacs:
32.24 	(i) in Crow Wing County, the city of Garrison, township of Garrison, or township of 
32.25 	Roosevelt;
32.26 	(ii) in Aitkin County, the township of Hazelton, township of Wealthwood, township of 
32.27 	Malmo, or township of Lakeside; or
32.28 	(iii) in Mille Lacs County, the city of Isle, city of Wahkon, city of Onamia, township of 
32.29 	East Side, township of Isle Harbor, township of South Harbor, or township of Kathio;
32.30 	(2) document a reduction in gross receipts of five percent or greater between two 
32.31 	successive calendar years beginning in 2010 or later; and
33.1 	(3) be a business in one of the following industries, as defined within the North American 
33.2 	Industry Classification System: accommodation, restaurants, bars, amusement and recreation, 
33.3 	food and beverages retail, sporting goods, miscellaneous retail, general retail, museums, 
33.4 	historical sites, health and personal care, gas station, general merchandise, business and 
33.5 	professional membership, movies, or nonstore retailer, as determined by the county in 
33.6 	consultation with the commissioner of employment and economic development.
33.7 		Subd. 4.State general levy in relief area. The counties of Aitkin, Crow Wing, and 
33.8 	Mille Lacs must refund the state general levy levied upon a property classified as 1c, 3a 
33.9 	(excluding utility real and personal property), or 4c(1) that is located in the area described 
33.10 	by subdivision 3, clause (1), for taxes payable in 2016. No refund may be issued to a taxpayer 
33.11 	whose property taxes are delinquent.
33.12 		Subd. 5.Certification and transfer of funds. (a) By August 1, 2017, a county granting 
33.13 	a refund as required under subdivision 4 must certify the total amount of state general tax 
33.14 	refunded to Mille Lacs County and the commissioner of revenue. By May 1, 2017, Mille 
33.15 	Lacs County must transfer an amount equal to the amount certified under this paragraph to 
33.16 	the county making the certification.
33.17 	(b) By August 1, 2017, a county that has received an application for an abatement 
33.18 	authorized under subdivision 1 must certify to Mille Lacs County the total amount of 
33.19 	abatements for which applications have been received and approved. By September 1, 2017, 
33.20 	Mille Lacs County must transfer an amount equal to the amount certified under this paragraph 
33.21 	to the county making the certification. If the amount appropriated under subdivision 6, 
33.22 	minus the amount transferred under paragraph (a), is not sufficient to make the transfer 
33.23 	required under this paragraph, Mille Lacs County must reduce the amount transferred to 
33.24 	each county by a uniform percentage. By October 31, 2017, the county must issue refunds 
33.25 	of local property tax amounts to qualified properties, in proportion to the amount received 
33.26 	from Mille Lacs County. No refund may be issued to a taxpayer whose property taxes are 
33.27 	delinquent.
33.28 	(c) By December 1, 2017, Mille Lacs County must calculate the amount transferred 
33.29 	under paragraphs (a) and (b), and subtract that amount from $1,400,000 to obtain the ongoing 
33.30 	economic relief distribution amount, if any. This amount must be transferred to the counties 
33.31 	of Aitkin, Crow Wing, and Mille Lacs in proportion to the amounts certified by each county 
33.32 	under paragraphs (a) and (b). A county receiving a transfer under this paragraph must use 
33.33 	the funds received to provide abatements to business properties under economic hardship 
33.34 	for taxes payable in 2017, and each year thereafter until a county's share of the ongoing 
33.35 	economic relief distribution amount is exhausted.
34.1 		Subd. 6.Commissioner of revenue; appropriation. $1,400,000 in fiscal year 2018 is 
34.2 	appropriated from the general fund to the commissioner of revenue for transfer to Mille 
34.3 	Lacs County to make the transfers required under subdivision 5. This is a onetime 
34.4 	appropriation.
34.5 		Subd. 7.Report to legislature. The commissioner of revenue must make a written report 
34.6 	to the chairs and ranking minority members of the legislative committees with jurisdiction 
34.7 	over taxes stating the amount of abatements and refunds given under this section by taxing 
34.8 	jurisdictions by February 1, 2018. The counties must provide the commissioner with the 
34.9 	information necessary to make the report.

34.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

34.11 	Sec. 38.  REPEALER.
 34.12 	Minnesota Statutes 2016, section 272.02, subdivision 23, is repealed.

34.13 	EFFECTIVE DATE. This section is effective for taxes payable in 2017 and thereafter.

34.14 	ARTICLE 2
34.15 	AIDS AND CREDITS

34.16 	Section 1. Minnesota Statutes 2016, section 127A.45, subdivision 10, is amended to read:
34.17 		Subd. 10.Payments to school nonoperating funds. Each fiscal year state general fund 
34.18 	payments for a district nonoperating fund must be made at the current year aid payment 
34.19 	percentage of the estimated entitlement during the fiscal year of the entitlement. This amount 
34.20 	shall be paid in 12 six equal monthly installments beginning in July. The amount of the 
34.21 	actual entitlement, after adjustment for actual data, minus the payments made during the 
34.22 	fiscal year of the entitlement must be paid prior to October 31 of the following school year. 
34.23 	The commissioner may make advance payments of debt service equalization aid and 
34.24 	state-paid tax credits for a district's debt service fund earlier than would occur under the 
34.25 	preceding schedule if the district submits evidence showing a serious cash flow problem in 
34.26 	the fund. The commissioner may make earlier payments during the year and, if necessary, 
34.27 	increase the percent of the entitlement paid to reduce the cash flow problem.

34.28 	EFFECTIVE DATE. This section is effective beginning with fiscal year 2019.

34.29 	Sec. 2. Minnesota Statutes 2016, section 127A.45, subdivision 13, is amended to read:
34.30 		Subd. 13.Aid payment percentage. Except as provided in subdivisions 10, 11, 12, 12a, 
34.31 	and 14, each fiscal year, all education aids and credits in this chapter and chapters 120A, 
35.1 	120B, 121A, 122A, 123A, 123B, 124D, 124E, 125A, 125B, 126C, 134, and section 273.1392, 
35.2 	shall be paid at the current year aid payment percentage of the estimated entitlement during 
35.3 	the fiscal year of the entitlement. For the purposes of this subdivision, a district's estimated 
35.4 	entitlement for special education aid under section 125A.76 for fiscal year 2014 and later 
35.5 	equals 97.4 percent of the district's entitlement for the current fiscal year. The final adjustment 
35.6 	payment, according to subdivision 9, must be the amount of the actual entitlement, after 
35.7 	adjustment for actual data, minus the payments made during the fiscal year of the entitlement.

35.8 	EFFECTIVE DATE. This section is effective beginning with fiscal year 2019.

35.9 	Sec. 3. [273.1387] SCHOOL BUILDING BOND AGRICULTURAL CREDIT.
35.10 		Subdivision 1.Eligibility. All class 2a, 2b, and 2c property under section 273.13, 
35.11 	subdivision 23, other than property consisting of the house, garage, and immediately 
35.12 	surrounding one acre of land of an agricultural homestead, is eligible to receive the credit 
35.13 	under this section.
35.14 		Subd. 2.Credit amount. For each qualifying property, the school building bond 
35.15 	agricultural credit is equal to 40 percent of the property's eligible net tax capacity multiplied 
35.16 	by the school debt tax rate determined under section 275.08, subdivision 1b.
35.17 		Subd. 3.Credit reimbursements. The county auditor shall determine the tax reductions 
35.18 	allowed under this section within the county for each taxes payable year and shall certify 
35.19 	that amount to the commissioner of revenue as a part of the abstracts of tax lists submitted 
35.20 	under section 275.29. Any prior year adjustments shall also be certified on the abstracts of 
35.21 	tax lists. The commissioner shall review the certifications for accuracy, and may make such 
35.22 	changes as are deemed necessary, or return the certification to the county auditor for 
35.23 	correction. The credit under this section must be used to reduce the school district net tax 
35.24 	capacity-based property tax as provided in section 273.1393.
35.25 		Subd. 4.Payment. The commissioner of revenue shall certify the total of the tax 
35.26 	reductions granted under this section for each taxes payable year within each school district 
35.27 	to the commissioner of education, who shall pay the reimbursement amounts to each school 
35.28 	district as provided in section 273.1392.
35.29 		Subd. 5.Appropriation. An amount sufficient to make the payments required by this 
35.30 	section is annually appropriated from the general fund to the commissioner of education.

35.31 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2018.

36.1 	Sec. 4. Minnesota Statutes 2016, section 273.1392, is amended to read:
36.2 	273.1392 PAYMENT; SCHOOL DISTRICTS.
36.3 	The amounts of bovine tuberculosis credit reimbursements under section 273.113; 
36.4 	conservation tax credits under section 273.119; disaster or emergency reimbursement under 
36.5 	sections 273.1231 to 273.1235; homestead and agricultural credits under section sections
36.6 	273.1384 and 273.1387; aids and credits under section 273.1398; enterprise zone property 
36.7 	credit payments under section 469.171; and metropolitan agricultural preserve reduction 
36.8 	under section 473H.10 for school districts, shall be certified to the Department of Education 
36.9 	by the Department of Revenue. The amounts so certified shall be paid according to section 
36.10 	127A.45, subdivisions 9 and 13.

36.11 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2018.

36.12 	Sec. 5. Minnesota Statutes 2016, section 273.1393, is amended to read:
36.13 	273.1393 COMPUTATION OF NET PROPERTY TAXES.
36.14 	Notwithstanding any other provisions to the contrary, "net" property taxes are determined 
36.15 	by subtracting the credits in the order listed from the gross tax:
36.16 	(1) disaster credit as provided in sections 273.1231 to 273.1235;
36.17 	(2) powerline credit as provided in section 273.42;
36.18 	(3) agricultural preserves credit as provided in section 473H.10;
36.19 	(4) enterprise zone credit as provided in section 469.171;
36.20 	(5) disparity reduction credit;
36.21 	(6) conservation tax credit as provided in section 273.119;
36.22 	(7) the school bond credit, as provided in section 273.1387;
36.23 	(8) agricultural credit as provided in section 273.1384;
36.24 	(8) (9) taconite homestead credit as provided in section 273.135;
36.25 	(9) (10) supplemental homestead credit as provided in section 273.1391; and
36.26 	(10) (11) the bovine tuberculosis zone credit, as provided in section 273.113.
36.27 	The combination of all property tax credits must not exceed the gross tax amount.

36.28 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2018.

37.1 	Sec. 6. Minnesota Statutes 2016, section 275.065, subdivision 3, is amended to read:
37.2 		Subd. 3.Notice of proposed property taxes. (a) The county auditor shall prepare and 
37.3 	the county treasurer shall deliver after November 10 and on or before November 24 each 
37.4 	year, by first class mail to each taxpayer at the address listed on the county's current year's 
37.5 	assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer, 
37.6 	the treasurer may send the notice in electronic form or by electronic mail instead of on paper 
37.7 	or by ordinary mail.
37.8 	(b) The commissioner of revenue shall prescribe the form of the notice.
37.9 	(c) The notice must inform taxpayers that it contains the amount of property taxes each 
37.10 	taxing authority proposes to collect for taxes payable the following year. In the case of a 
37.11 	town, or in the case of the state general tax, the final tax amount will be its proposed tax. 
37.12 	The notice must clearly state for each city that has a population over 500, county, school 
37.13 	district, regional library authority established under section 134.201, and metropolitan taxing 
37.14 	districts as defined in paragraph (i), the time and place of a meeting for each taxing authority 
37.15 	in which the budget and levy will be discussed and public input allowed, prior to the final 
37.16 	budget and levy determination. The taxing authorities must provide the county auditor with 
37.17 	the information to be included in the notice on or before the time it certifies its proposed 
37.18 	levy under subdivision 1. The public must be allowed to speak at that meeting, which must 
37.19 	occur after November 24 and must not be held before 6:00 p.m. It must provide a telephone 
37.20 	number for the taxing authority that taxpayers may call if they have questions related to the 
37.21 	notice and an address where comments will be received by mail, except that no notice 
37.22 	required under this section shall be interpreted as requiring the printing of a personal 
37.23 	telephone number or address as the contact information for a taxing authority. If a taxing 
37.24 	authority does not maintain public offices where telephone calls can be received by the 
37.25 	authority, the authority may inform the county of the lack of a public telephone number and 
37.26 	the county shall not list a telephone number for that taxing authority.
37.27 	(d) The notice must state for each parcel:
37.28 	(1) the market value of the property as determined under section 273.11, and used for 
37.29 	computing property taxes payable in the following year and for taxes payable in the current 
37.30 	year as each appears in the records of the county assessor on November 1 of the current 
37.31 	year; and, in the case of residential property, whether the property is classified as homestead 
37.32 	or nonhomestead. The notice must clearly inform taxpayers of the years to which the market 
37.33 	values apply and that the values are final values;
38.1 	(2) the items listed below, shown separately by county, city or town, and state general 
38.2 	tax, agricultural homestead credit under section 273.1384, school building bond agricultural 
38.3 	credit under section 273.1387, voter approved school levy, other local school levy, and the 
38.4 	sum of the special taxing districts, and as a total of all taxing authorities:
38.5 	(i) the actual tax for taxes payable in the current year; and
38.6 	(ii) the proposed tax amount.
38.7 	If the county levy under clause (2) includes an amount for a lake improvement district 
38.8 	as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose 
38.9 	must be separately stated from the remaining county levy amount.
38.10 	In the case of a town or the state general tax, the final tax shall also be its proposed tax 
38.11 	unless the town changes its levy at a special town meeting under section 365.52. If a school 
38.12 	district has certified under section 126C.17, subdivision 9, that a referendum will be held 
38.13 	in the school district at the November general election, the county auditor must note next 
38.14 	to the school district's proposed amount that a referendum is pending and that, if approved 
38.15 	by the voters, the tax amount may be higher than shown on the notice. In the case of the 
38.16 	city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed separately 
38.17 	from the remaining amount of the city's levy. In the case of the city of St. Paul, the levy for 
38.18 	the St. Paul Library Agency must be listed separately from the remaining amount of the 
38.19 	city's levy. In the case of Ramsey County, any amount levied under section 134.07 may be 
38.20 	listed separately from the remaining amount of the county's levy. In the case of a parcel 
38.21 	where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F 
38.22 	applies, the proposed tax levy on the captured value or the proposed tax levy on the tax 
38.23 	capacity subject to the areawide tax must each be stated separately and not included in the 
38.24 	sum of the special taxing districts; and
38.25 	(3) the increase or decrease between the total taxes payable in the current year and the 
38.26 	total proposed taxes, expressed as a percentage.
38.27 	For purposes of this section, the amount of the tax on homesteads qualifying under the 
38.28 	senior citizens' property tax deferral program under chapter 290B is the total amount of 
38.29 	property tax before subtraction of the deferred property tax amount.
38.30 	(e) The notice must clearly state that the proposed or final taxes do not include the 
38.31 	following:
38.32 	(1) special assessments;
39.1 	(2) levies approved by the voters after the date the proposed taxes are certified, including 
39.2 	bond referenda and school district levy referenda;
39.3 	(3) a levy limit increase approved by the voters by the first Tuesday after the first Monday 
39.4 	in November of the levy year as provided under section 275.73;
39.5 	(4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring 
39.6 	after the date the proposed taxes are certified;
39.7 	(5) amounts necessary to pay tort judgments against the taxing authority that become 
39.8 	final after the date the proposed taxes are certified; and
39.9 	(6) the contamination tax imposed on properties which received market value reductions 
39.10 	for contamination.
39.11 	(f) Except as provided in subdivision 7, failure of the county auditor to prepare or the 
39.12 	county treasurer to deliver the notice as required in this section does not invalidate the 
39.13 	proposed or final tax levy or the taxes payable pursuant to the tax levy.
39.14 	(g) If the notice the taxpayer receives under this section lists the property as 
39.15 	nonhomestead, and satisfactory documentation is provided to the county assessor by the 
39.16 	applicable deadline, and the property qualifies for the homestead classification in that 
39.17 	assessment year, the assessor shall reclassify the property to homestead for taxes payable 
39.18 	in the following year.
39.19 	(h) In the case of class 4 residential property used as a residence for lease or rental 
39.20 	periods of 30 days or more, the taxpayer must either:
39.21 	(1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter, 
39.22 	or lessee; or
39.23 	(2) post a copy of the notice in a conspicuous place on the premises of the property.
39.24 	The notice must be mailed or posted by the taxpayer by November 27 or within three 
39.25 	days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer 
39.26 	of the address of the taxpayer, agent, caretaker, or manager of the premises to which the 
39.27 	notice must be mailed in order to fulfill the requirements of this paragraph.
39.28 	(i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing 
39.29 	districts" means the following taxing districts in the seven-county metropolitan area that 
39.30 	levy a property tax for any of the specified purposes listed below:
39.31 	(1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446, 
39.32 	473.521, 473.547, or 473.834;
40.1 	(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; and
40.2 	(3) Metropolitan Mosquito Control Commission under section 473.711.
40.3 	For purposes of this section, any levies made by the regional rail authorities in the county 
40.4 	of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A 
40.5 	shall be included with the appropriate county's levy.
40.6 	(j) The governing body of a county, city, or school district may, with the consent of the 
40.7 	county board, include supplemental information with the statement of proposed property 
40.8 	taxes about the impact of state aid increases or decreases on property tax increases or 
40.9 	decreases and on the level of services provided in the affected jurisdiction. This supplemental 
40.10 	information may include information for the following year, the current year, and for as 
40.11 	many consecutive preceding years as deemed appropriate by the governing body of the 
40.12 	county, city, or school district. It may include only information regarding:
40.13 	(1) the impact of inflation as measured by the implicit price deflator for state and local 
40.14 	government purchases;
40.15 	(2) population growth and decline;
40.16 	(3) state or federal government action; and
40.17 	(4) other financial factors that affect the level of property taxation and local services 
40.18 	that the governing body of the county, city, or school district may deem appropriate to 
40.19 	include.
40.20 	The information may be presented using tables, written narrative, and graphic 
40.21 	representations and may contain instruction toward further sources of information or 
40.22 	opportunity for comment.

40.23 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2018.

40.24 	Sec. 7. Minnesota Statutes 2016, section 275.07, subdivision 2, is amended to read:
40.25 		Subd. 2.School district in more than one county levies; special requirements. (a) In 
40.26 	school districts lying in more than one county, the clerk shall certify the tax levied to the 
40.27 	auditor of the county in which the administrative offices of the school district are located.
40.28 	(b) The district must identify the portion of the school district levy that is levied for debt 
40.29 	service at the time the levy is certified under this section. For the purposes of this paragraph, 
40.30 	"levied for debt service" means levies authorized under sections 123B.53, 123B.535, and 
40.31 	123B.55, as adjusted by sections 126C.46 and 126C.48, net of any debt excess levy reductions 
41.1 	under section 475.61, subdivision 4, excluding debt service amounts necessary for repayment 
41.2 	of other postemployment benefits under section 475.52, subdivision 6.

41.3 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2018.

41.4 	Sec. 8. Minnesota Statutes 2016, section 275.08, subdivision 1b, is amended to read:
41.5 		Subd. 1b.Computation of tax rates. (a) The amounts certified to be levied against net 
41.6 	tax capacity under section 275.07 by an individual local government unit shall be divided 
41.7 	by the total net tax capacity of all taxable properties within the local government unit's 
41.8 	taxing jurisdiction. The resulting ratio, the local government's local tax rate, multiplied by 
41.9 	each property's net tax capacity shall be each property's net tax capacity tax for that local 
41.10 	government unit before reduction by any credits.
41.11 	(b) The auditor must also determine the school debt tax rate for each school district equal 
41.12 	to (1) the school debt service levy certified under section 275.07, subdivision 2, divided by 
41.13 	(2) the total net tax capacity of all taxable property within the district.
41.14 	(c) Any amount certified to the county auditor to be levied against market value shall 
41.15 	be divided by the total referendum market value of all taxable properties within the taxing 
41.16 	district. The resulting ratio, the taxing district's new referendum tax rate, multiplied by each 
41.17 	property's referendum market value shall be each property's new referendum tax before 
41.18 	reduction by any credits. For the purposes of this subdivision, "referendum market value" 
41.19 	means the market value as defined in section 126C.01, subdivision 3.

41.20 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2018.

41.21 	Sec. 9. Minnesota Statutes 2016, section 276.04, subdivision 2, is amended to read:
41.22 		Subd. 2.Contents of tax statements. (a) The treasurer shall provide for the printing of 
41.23 	the tax statements. The commissioner of revenue shall prescribe the form of the property 
41.24 	tax statement and its contents. The tax statement must not state or imply that property tax 
41.25 	credits are paid by the state of Minnesota. The statement must contain a tabulated statement 
41.26 	of the dollar amount due to each taxing authority and the amount of the state tax from the 
41.27 	parcel of real property for which a particular tax statement is prepared. The dollar amounts 
41.28 	attributable to the county, the state tax, the voter approved school tax, the other local school 
41.29 	tax, the township or municipality, and the total of the metropolitan special taxing districts 
41.30 	as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. The 
41.31 	amounts due all other special taxing districts, if any, may be aggregated except that any 
41.32 	levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin, 
42.1 	Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line directly 
42.2 	under the appropriate county's levy. If the county levy under this paragraph includes an 
42.3 	amount for a lake improvement district as defined under sections 103B.501 to 103B.581, 
42.4 	the amount attributable for that purpose must be separately stated from the remaining county 
42.5 	levy amount. In the case of Ramsey County, if the county levy under this paragraph includes 
42.6 	an amount for public library service under section 134.07, the amount attributable for that 
42.7 	purpose may be separated from the remaining county levy amount. The amount of the tax 
42.8 	on homesteads qualifying under the senior citizens' property tax deferral program under 
42.9 	chapter 290B is the total amount of property tax before subtraction of the deferred property 
42.10 	tax amount. The amount of the tax on contamination value imposed under sections 270.91
42.11 	to 270.98, if any, must also be separately stated. The dollar amounts, including the dollar 
42.12 	amount of any special assessments, may be rounded to the nearest even whole dollar. For 
42.13 	purposes of this section whole odd-numbered dollars may be adjusted to the next higher 
42.14 	even-numbered dollar. The amount of market value excluded under section 273.11, 
42.15 	subdivision 16, if any, must also be listed on the tax statement.
42.16 	(b) The property tax statements for manufactured homes and sectional structures taxed 
42.17 	as personal property shall contain the same information that is required on the tax statements 
42.18 	for real property.
42.19 	(c) Real and personal property tax statements must contain the following information 
42.20 	in the order given in this paragraph. The information must contain the current year tax 
42.21 	information in the right column with the corresponding information for the previous year 
42.22 	in a column on the left:
42.23 	(1) the property's estimated market value under section 273.11, subdivision 1;
42.24 	(2) the property's homestead market value exclusion under section 273.13, subdivision 
42.25 	35;
42.26 	(3) the property's taxable market value under section 272.03, subdivision 15;
42.27 	(4) the property's gross tax, before credits;
42.28 	(5) for homestead agricultural properties, the credit credits under section sections
42.29 	273.1384 and 273.1387;
42.30 	(6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135; 
42.31 	273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of credit 
42.32 	received under section 273.135 must be separately stated and identified as "taconite tax 
42.33 	relief"; and
43.1 	(7) the net tax payable in the manner required in paragraph (a).
43.2 	(d) If the county uses envelopes for mailing property tax statements and if the county 
43.3 	agrees, a taxing district may include a notice with the property tax statement notifying 
43.4 	taxpayers when the taxing district will begin its budget deliberations for the current year, 
43.5 	and encouraging taxpayers to attend the hearings. If the county allows notices to be included 
43.6 	in the envelope containing the property tax statement, and if more than one taxing district 
43.7 	relative to a given property decides to include a notice with the tax statement, the county 
43.8 	treasurer or auditor must coordinate the process and may combine the information on a 
43.9 	single announcement.

43.10 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2018.

43.11 	Sec. 10. [477A.0126] REIMBURSEMENT OF COUNTY AND TRIBES FOR 
43.12 	CERTAIN OUT-OF-HOME PLACEMENT.
43.13 		Subdivision 1.Definition. When used in this section, "out-of-home placement" means 
43.14 	24-hour substitute care for an Indian child as defined by section 260C.007, subdivision 21, 
43.15 	placed under the Indian Child Welfare Act (ICWA) and chapter 260C, away from the child's 
43.16 	parent or guardian and for whom the county social services agency or county correctional 
43.17 	agency has been assigned responsibility for the child's placement and care, which includes 
43.18 	placement in foster care under section 260C.007, subdivision 18, and a correctional facility 
43.19 	pursuant to a court order.
43.20 		Subd. 2.Determination of nonfederal share of costs. (a) By March 15, 2017, each 
43.21 	county shall report the following information to the commissioners of human services and 
43.22 	corrections: (1) the separate amounts paid out of its social service agency and its corrections 
43.23 	budget for out-of-home placement of children under the ICWA in calendar years 2013, 
43.24 	2014, and 2015; and (2) the number of case days associated with the expenditures from 
43.25 	each budget. The commissioner of human services shall prescribe the format of the report. 
43.26 	By April 15, 2017, the commissioner of human services, in consultation with the 
43.27 	commissioner of corrections, shall certify to the commissioner of revenue and to the 
43.28 	legislative committees responsible for local government aids and out-of-home placement 
43.29 	funding, whether the data reported under this subdivision accurately reflects total expenditures 
43.30 	by counties for out-of-home placement costs of children under the ICWA.
43.31 	(b) By January 1, 2018, and each January 1 thereafter, each county shall report to the 
43.32 	commissioners of human services and corrections the separate amounts paid out of its social 
43.33 	service agency and its corrections budget for out-of-home placement of children under the 
43.34 	ICWA in the calendar years two years before the current calendar year along with the number 
44.1 	of case days associated with the expenditures from each budget. The commissioner of human 
44.2 	services shall prescribe the format of the report.
44.3 	(c) Until the commissioner of human services develops another mechanism for collecting 
44.4 	and verifying data on out-of-home placements of children under the ICWA, and the 
44.5 	legislature authorizes the use of that data, the data collected under this subdivision must be 
44.6 	used to calculate payments under subdivision 3. The commissioner of human services shall 
44.7 	certify the nonfederal out-of-home placement costs for the three prior calendar years for 
44.8 	each county to the commissioner of revenue by June 1 of the year prior to the aid payment.
44.9 		Subd. 3.Aid for counties. For aids payable in calendar year 2018 and thereafter, the 
44.10 	amount of reimbursement to each county is 100 percent of the average nonfederal share of 
44.11 	the cost for out-of-home placement of children under the ICWA for the three calendar years 
44.12 	that were certified by the commissioner of human services by June 1 of the prior year, 
44.13 	provided the commissioner of human services, in consultation with the commissioner of 
44.14 	corrections, certifies to the commissioner of revenue that accurate data is available to make 
44.15 	the aid determination under this section.
44.16 		Subd. 4.Aid for tribes. (a) By June 1 of the year prior to the aid payment, each tribe 
44.17 	seeking reimbursement under this section must certify to the commissioner of revenue the 
44.18 	amount of federal reimbursement received by the tribe under the ICWA for the immediately 
44.19 	preceding three calendar years. If a tribe does not certify the amount of federal reimbursement 
44.20 	pursuant to this section, the tribe is deemed to have waived any reimbursement for 
44.21 	out-of-home placement for that calendar year. The commissioner of revenue shall prescribe 
44.22 	the format of the certification. "Tribe" is defined as an Indian tribe with membership on the 
44.23 	Indian Affairs Council under section 3.922.
44.24 	(b) For aids payable in 2018 and thereafter, the amount of reimbursement to each tribe 
44.25 	shall be the greater of: (1) five percent of the average reimbursement amount received from 
44.26 	the federal government for out-of-home placement costs for the three calendar years that 
44.27 	were certified by June 1 of the prior year; or (2) $200,000.
44.28 		Subd. 5.Payments. The commissioner of revenue must compute the amount of 
44.29 	reimbursement aid payable to each county and tribe under this section. On or before August 
44.30 	1 of each year, the commissioner shall certify the amount to be paid to each county and 
44.31 	tribe in the following year. The commissioner shall pay reimbursement aid annually at the 
44.32 	times provided in section 477A.015.
44.33 		Subd. 6.Appropriation. An amount sufficient to pay aid under this section is annually 
44.34 	appropriated to the commissioner of revenue from the general fund.

45.1 	EFFECTIVE DATE. This section is effective beginning with aids payable in 2018.

45.2 	Sec. 11. Minnesota Statutes 2016, section 477A.017, subdivision 2, is amended to read:
45.3 		Subd. 2.State auditor's duties. The state auditor shall prescribe uniform financial 
45.4 	accounting and reporting standards in conformity with national standards to be applicable 
45.5 	to cities and towns of more than 2,500 population and uniform reporting standards to be 
45.6 	applicable to cities and towns of less than 2,500 population.

45.7 	EFFECTIVE DATE. This section applies to reporting of financial information for 
45.8 	calendar year 2017 and thereafter.

45.9 	Sec. 12. Minnesota Statutes 2016, section 477A.017, subdivision 3, is amended to read:
45.10 		Subd. 3.Conformity. Other law to the contrary notwithstanding, in order to receive 
45.11 	distributions under sections 477A.011 to 477A.03, counties and,  cities, and towns must 
45.12 	conform to the standards set in subdivision 2 in making all financial reports required to be 
45.13 	made to the state auditor after June 30, 1984.

45.14 	EFFECTIVE DATE. This section applies to reporting of financial information for aids 
45.15 	payable in 2018 and thereafter.

45.16 	Sec. 13. Minnesota Statutes 2016, section 477A.03, subdivision 2a, is amended to read:
45.17 		Subd. 2a.Cities.  The total aid paid under section 477A.013, subdivision 9, is 
45.18 	$516,898,012 for aids payable in 2015. For aids payable in 2016 and thereafter, the total 
45.19 	aid paid under section 477A.013, subdivision 9, is $519,398,012. For aids payable in 2017 
45.20 	and thereafter, the total aid paid under section 477A.013, subdivision 9, is $539,398,012.

45.21 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2017 
45.22 	and thereafter. For aid payable in 2017, the commissioner must certify the amount to be 
45.23 	paid to each city by January 31, 2017.

45.24 	Sec. 14. Minnesota Statutes 2016, section 477A.03, subdivision 2b, is amended to read:
45.25 		Subd. 2b.Counties. (a) For aids payable in 2014 and thereafter through 2016, the total 
45.26 	aid payable under section 477A.0124, subdivision 3, is $100,795,000. For aids payable in 
45.27 	2017 through 2024, the total aid payable under section 477A.0124, subdivision 3, is 
45.28 	$108,795,000, of which $3,000,000 shall be allocated as required under Laws 2014, chapter 
45.29 	150, article 4, section 6. For aids payable in 2025 and thereafter, the total aid payable under 
45.30 	section 477A.0124, subdivision 3, is $105,795,000. Each calendar year, $500,000 of this 
46.1 	appropriation shall be retained by the commissioner of revenue to make reimbursements to 
46.2 	the commissioner of management and budget for payments made under section 611.27. The 
46.3 	reimbursements shall be to defray the additional costs associated with court-ordered counsel 
46.4 	under section 611.27. Any retained amounts not used for reimbursement in a year shall be 
46.5 	included in the next distribution of county need aid that is certified to the county auditors 
46.6 	for the purpose of property tax reduction for the next taxes payable year.
46.7 	(b) For aids payable in 2014 and thereafter 2016, the total aid under section 477A.0124, 
46.8 	subdivision 4, is $104,909,575. For aids payable in 2017 and thereafter, the total aid payable 
46.9 	under section 477A.0124, subdivision 4, is $109,909,575. The commissioner of revenue 
46.10 	shall transfer to the commissioner of management and budget $207,000 annually for the 
46.11 	cost of preparation of local impact notes as required by section 3.987, and other local 
46.12 	government activities. The commissioner of revenue shall transfer to the commissioner of 
46.13 	education $7,000 annually for the cost of preparation of local impact notes for school districts 
46.14 	as required by section 3.987. The commissioner of revenue shall deduct the amounts 
46.15 	transferred under this paragraph from the appropriation under this paragraph. The amounts 
46.16 	transferred are appropriated to the commissioner of management and budget and the 
46.17 	commissioner of education respectively.

46.18 	EFFECTIVE DATE. This section is effective for aids payable in 2017 and thereafter. 
46.19 	For aid payable in 2017, the commissioner must certify the amount to be paid to each county 
46.20 	by January 31, 2017.

46.21 	Sec. 15. [477A.09] MAXIMUM EFFORT LOAN AID.
46.22 	For fiscal years 2018 to 2022, each school district with a maximum effort loan under 
46.23 	sections 126C.61 to 126C.72 outstanding as of June 30, 2016, is eligible for an aid payment 
46.24 	equal to one-fifth of the amount of interest that was paid on the loan between December 1, 
46.25 	1997, and June 30, 2016. For Independent School District No. 2580, the aid payment shall 
46.26 	be calculated to also include one-fifth of the amount of the interest amount paid under its 
46.27 	prior maximum effort loan between December 1, 1997, and June 30, 2016. Aid payments 
46.28 	under this section must be used to reduce property taxes levied on net tax capacity within 
46.29 	the district. Aid under this section must be paid in fiscal years 2018 to 2022, in the manner 
46.30 	provided under section 127A.45, subdivisions 9 and 13. An amount sufficient to make aid 
46.31 	payments under this section is annually appropriated from the general fund to the 
46.32 	commissioner of education.

46.33 	EFFECTIVE DATE. This section is effective for fiscal year 2018 and thereafter.

47.1 	Sec. 16. Minnesota Statutes 2016, section 477A.17, is amended to read:
47.2 	477A.17 LAKE VERMILION-SOUDAN UNDERGROUND MINE STATE PARK; 
47.3 	ANNUAL PAYMENTS.
47.4 	(a) In lieu of the payment amount provided under section 477A.12, subdivision 1, clause 
47.5 	(1), the county shall receive an annual payment for state-owned land within the boundary 
47.6 	of Lake Vermilion-Soudan Underground Mine State Park, established in section 85.012, 
47.7 	subdivision 38a, equal to 1.5 percent of the appraised value of the state-owned land.
47.8 	(b) For the purposes of this section, the appraised value of the land acquired for Lake 
47.9 	Vermilion-Soudan Underground Mine State Park for the first five years after acquisition 
47.10 	shall be the purchase price of the land, plus the value of any portion of the land that is 
47.11 	acquired by donation. Thereafter, the appraised value of the state-owned land shall be as 
47.12 	determined under section 477A.12, subdivision 3, except that the appraised value of the 
47.13 	state-owned land within the park shall not be reduced below the 2010 appraised value of 
47.14 	the land.
47.15 	(c) The annual payments under this section shall be distributed to the taxing jurisdictions 
47.16 	containing the property as follows: one-third to the school districts; one-third to the town; 
47.17 	and one-third to the county. The payment to school districts is not a county apportionment 
47.18 	under section 127A.34 and is not subject to aid recapture. Each of those taxing jurisdictions 
47.19 	may use the payments for their general purposes.
47.20 	(d) Except as provided in this section, the payments shall be made as provided in sections 
47.21 	477A.11 to 477A.13.

47.22 	EFFECTIVE DATE. This section is effective beginning with aids payable in 2017.

47.23 	Sec. 17. [477A.21] RIPARIAN PROTECTION AID.
47.24 		Subdivision 1.Definitions. (a) When used in this section, the following terms have the 
47.25 	meanings given them in this subdivision.
47.26 	(b) "Public water basins" has the meaning provided in section 103G.005, subdivision 
47.27 	15, clauses (1) to (8) and (11).
47.28 	(c) "Public watercourses" has the meaning provided in section 103G.005, subdivision 
47.29 	15, clauses (9) and (10).
47.30 		Subd. 2. Certification.  The Board of Water and Soil Resources must certify to the 
47.31 	commissioner of revenue by July 1 of each year which counties and watershed districts 
47.32 	have affirmed their jurisdiction under section 103F.48, subdivision 7, paragraph (b), and 
48.1 	the proportion of each county's land area that is contained in each watershed district within 
48.2 	the county. On or before July 1 of each year, the commissioner of natural resources shall 
48.3 	certify to the commissioner of revenue the statewide and countywide total of miles of 
48.4 	shoreline of public waters basins, the number of centerline miles of public watercourses, 
48.5 	and the miles of public drainage system ditches.
48.6 		Subd. 3.Distribution. (a) A county that is certified under subdivision 2 or that portion 
48.7 	of a county containing a watershed district certified under subdivision 2 is eligible to receive 
48.8 	aid under this section to enforce and implement the riparian protection and water quality 
48.9 	practices under section 103F.48. The commissioner shall calculate a preliminary aid for all 
48.10 	counties that shall equal: (1) each county's share of the total number of acres in the state 
48.11 	classified as class 2a under section 273.13, subdivision 23, divided by two; plus (2) each 
48.12 	county's share of the number of miles of shoreline of public water basins, each county's 
48.13 	share of the number of centerline miles of public watercourses, and each county's share of 
48.14 	the number of miles of public drainage system ditches established under chapter 103E, 
48.15 	divided by two; multiplied by (3) $10,000,000.
48.16 	(b) Aid to a county shall not be greater than $200,000 or less than $45,000. If the sum 
48.17 	of the preliminary aids payable to counties under paragraph (a) is greater or less than the 
48.18 	appropriation under subdivision 5, the commissioner of revenue shall calculate the percentage 
48.19 	adjustment necessary so that the total of the aid under paragraph (a) equals the total amount 
48.20 	available for aid under subdivision 5.
48.21 	(c) If only a portion of a county is certified as eligible to receive aid under subdivision 
48.22 	2, the aid otherwise payable to that county under this section shall be multiplied by a fraction, 
48.23 	the numerator of which is the area of the certified watershed district contained within the 
48.24 	county and the denominator of which is the total area of the county.
48.25 	(d) Any aid that would otherwise be paid to a county or portion of a county that is not 
48.26 	certified under subdivision 2 shall be paid to the Board of Water and Soil Resources for the 
48.27 	purpose of enforcing and implementing the riparian protection and water quality practices 
48.28 	under section 103F.48.
48.29 		Subd. 4.Payments. The commissioner of revenue must compute the amount of riparian 
48.30 	protection aid payable to each eligible county and to the Board of Water and Soil Resources 
48.31 	under this section. On or before August 1 of each year, the commissioner shall certify the 
48.32 	amount to be paid to each county in the following year. The commissioner shall pay riparian 
48.33 	protection aid to counties and the Board of Water and Soil Resources in the same manner 
48.34 	and at the same time as aid payments under section 477A.015.
49.1 		Subd. 5.Appropriation. $10,000,000 for aids payable in 2017 and each year thereafter 
49.2 	is appropriated from the general fund to the commissioner of revenue to make the payments 
49.3 	required under this section.

49.4 	EFFECTIVE DATE. This section is effective beginning with aids payable in 2017 and 
49.5 	thereafter.

49.6 	Sec. 18. Laws 2001, First Special Session chapter 5, article 3, section 86, is amended to 
49.7 	read:
49.8 	Sec. 86. RED RIVER WATERSHED MANAGEMENT BOARD; PAYMENT IN 
49.9 	LIEU OF TAXES.
 49.10 	(a) The Red River watershed management board may spend money from its general 
49.11 	fund to compensate counties and townships for lost tax revenue from land that becomes tax 
49.12 	exempt after it is acquired by the board or a member watershed district for flood damage 
49.13 	reduction project. The amount that may be paid under this section to a county or township 
49.14 	must not exceed the tax that was payable to that taxing jurisdiction on the land in the last 
49.15 	taxes payable year before the land became exempt due to the acquisition, not to exceed $4
49.16 	$5.133 per acre, multiplied by 20. This total amount may be paid in one payment, or in 
49.17 	equal annual installments over a period that does not exceed 20 years. A member watershed 
49.18 	district of the Red River management board may spend money from its construction fund 
49.19 	for the purposes described in this section.
49.20 	(b) For the purposes of this section, "Red River watershed management board" refers 
49.21 	to the board established by Laws 1976, chapter 162, section 1, as amended by Laws 1982, 
49.22 	chapter 474, section 1, Laws 1983, chapter 338, section 1, Laws 1989 First Special Session 
49.23 	chapter 1, article 5, section 45, Laws 1991, chapter 167, section 1, and Laws 1998, chapter 
49.24 	389, article 3, section 29.

49.25 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2017 
49.26 	and thereafter. For aid payable in 2017, the commissioner must certify the amount to be 
49.27 	paid to each county by January 31, 2017.

49.28 	Sec. 19. Laws 2016, chapter 189, article 30, section 25, subdivision 5, is amended to read:
49.29 		Subd. 5.Early repayment aid incentive. (a) For incentive grants for a district that 
49.30 	repays the full outstanding original principal on its capital loan by November 30, 2016, 
49.31 	under Laws 2011, First Special Session chapter 11, article 4, section 8, as amended by this 
49.32 	act:

50.250.1
		$
	2,200,000
2,350,000
	.....
	2017
	
50.3 	(b) Of this amount, $150,000 is for a grant to Independent School District No. 36, 
50.4 	Kelliher; $180,000 is for a grant to Independent School District No. 95, Cromwell; $495,000 
50.5 	is for a grant to Independent School District No. 299, Caledonia; $220,000 is for a grant to 
50.6 	Independent School District No. 306, Laporte; $150,000 is for a grant to Independent School 
50.7 	District No. 362, Littlefork; $650,000 is for a grant to Independent School District No. 682, 
50.8 	Roseau; and $505,000 is for a grant to Independent School District No. 2580, East Central.
50.9 	(c) The grant may be used for any school-related purpose.
50.10 	(d) The base appropriation for 2022 is zero.

50.11 	EFFECTIVE DATE. This section is effective the day following final enactment.

50.12 	Sec. 20. 2013 CITY AID PENALTY FORGIVENESS; CITY OF OSLO.
 50.13 	Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of Oslo 
50.14 	shall receive the portion of its aid payment for calendar year 2013 under Minnesota Statutes, 
50.15 	section 477A.013, that was withheld under Minnesota Statutes, section 477A.017, subdivision 
50.16 	3, provided that the state auditor certifies to the commissioner of revenue that it received 
50.17 	audited financial statements from the city for calendar year 2012 by December 31, 2013. 
50.18 	The commissioner of revenue shall make a payment of $37,473.50 by March 31, 2017. 
50.19 	$37,473.50 is appropriated from the general fund to the commissioner of revenue in fiscal 
50.20 	year 2017 to make this payment.

50.21 	EFFECTIVE DATE. This section is effective the day following final enactment.

50.22 	Sec. 21. 2014 AID PENALTY FORGIVENESS.
 50.23 	(a) Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the cities of 
50.24 	Dundee, Jeffers, and Woodstock shall receive all of its calendar year 2014 aid payment that 
50.25 	was withheld under Minnesota Statutes, section 477A.017, subdivision 3, provided that the 
50.26 	state auditor certifies to the commissioner of revenue that the city complied with all reporting 
50.27 	requirements under Minnesota Statutes, section 477A.017, subdivision 3, for calendar years 
50.28 	2013 and 2014 by June 1, 2015.
50.29 	(b) The commissioner of revenue shall make payment to each city no later than March 
50.30 	31, 2017. Up to $101,570 is appropriated from the general fund to the commissioner of 
50.31 	revenue in fiscal year 2017 to make the payments under this section.

50.32 	EFFECTIVE DATE. This section is effective the day following final enactment.

51.1 	Sec. 22. BASE YEAR FORMULA AID FOR NEWLY INCORPORATED CITY.
 51.2 	In the first aid payable year in which a city that incorporated on October 13, 2015, 
51.3 	qualifies for aid under Minnesota Statutes, section 477A.013, subdivision 8, the city's 
51.4 	formula aid in the previous year shall be deemed to equal $115 multiplied by its population.

51.5 	EFFECTIVE DATE. This section is effective for aids payable in 2017 and thereafter.

51.6 	Sec. 23.  REPEALER.
 51.7 	Minnesota Statutes 2016, section 477A.20, is repealed.

51.8 	EFFECTIVE DATE. This section is effective the day following final enactment.

51.9 	ARTICLE 3
51.10 	INDIVIDUAL INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES

51.11 	Section 1. Minnesota Statutes 2016, section 136A.129, subdivision 3, is amended to read:
51.12 		Subd. 3.Program components. (a) An intern must be an eligible student who has been 
51.13 	admitted to a major program that is related to the intern experience as determined by the 
51.14 	eligible institution.
51.15 	(b) To participate in the program, an eligible institution must:
51.16 	(1) enter into written agreements with eligible employers to provide internships that are 
51.17 	at least eight weeks long and located in greater Minnesota; and
51.18 	(2) provide academic credit for the successful completion of the internship or ensure 
51.19 	that it fulfills requirements necessary to complete a vocational technical education program.
51.20 	(c) To participate in the program, an eligible employer must enter into a written agreement 
51.21 	with an eligible institution specifying that the intern:
51.22 	(1) would not have been hired without the tax credit described in subdivision 4;
51.23 	(2) did not work for the employer in the same or a similar job prior to entering the 
51.24 	agreement;
51.25 	(3) (2) does not replace an existing employee;
51.26 	(4) (3) has not previously participated in the program;
51.27 	(5) (4) will be employed at a location in greater Minnesota;
51.28 	(6) (5) will be paid at least minimum wage for a minimum of 16 hours per week for a 
51.29 	period of at least eight weeks; and
52.1 	(7) (6) will be supervised and evaluated by the employer.
52.2 	(d) The written agreement between the eligible institution and the eligible employer 
52.3 	must certify a credit amount to the employer, not to exceed $2,000 per intern. The total 
52.4 	dollar amount of credits that an eligible institution certifies to eligible employers in a calendar 
52.5 	year may not exceed the amount of its allocation under subdivision 4.
52.6 	(e) Participating eligible institutions and eligible employers must report annually to the 
52.7 	office. The report must include at least the following:
52.8 	(1) the number of interns hired;
52.9 	(2) the number of hours and weeks worked by interns; and
52.10 	(3) the compensation paid to interns.
52.11 	(f) An internship required to complete an academic program does not qualify for the 
52.12 	greater Minnesota internship program under this section.

52.13 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
52.14 	31, 2016.

52.15 	Sec. 2. Minnesota Statutes 2016, section 136G.05, subdivision 10, is amended to read:
52.16 		Subd. 10.Data. Account owner data, account data, and data on beneficiaries of accounts 
52.17 	are private data on individuals or nonpublic data as defined in section 13.02, except that the 
52.18 	names and addresses of the beneficiaries of accounts that receive matching grants are public.
52.19 	These data may be disseminated to and used by the Department of Revenue to the extent 
52.20 	necessary, and without the consent of the subject of the data, for its duties under Minnesota 
52.21 	laws.

52.22 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
52.23 	31, 2016.

52.24 	Sec. 3. Minnesota Statutes 2016, section 289A.02, subdivision 7, is amended to read:
52.25 		Subd. 7.Internal Revenue Code. Unless specifically defined otherwise, "Internal 
52.26 	Revenue Code" means the Internal Revenue Code of 1986, as amended through December 
52.27 	31, 2014 2015.

52.28 	EFFECTIVE DATE. This section is effective the day following final enactment.

53.1 	Sec. 4. Minnesota Statutes 2016, section 290.01, subdivision 7, is amended to read:
53.2 		Subd. 7.Resident. (a) The term "resident" means any individual domiciled in Minnesota, 
53.3 	except that an individual is not a "resident" for the period of time that the individual is a 
53.4 	"qualified individual" as defined in section 911(d)(1) of the Internal Revenue Code, if the 
53.5 	qualified individual notifies the county within three months of moving out of the country 
53.6 	that homestead status be revoked for the Minnesota residence of the qualified individual, 
53.7 	and the property is not classified as a homestead while the individual remains a qualified 
53.8 	individual.
53.9 	(b) "Resident" also means any individual domiciled outside the state who maintains a 
53.10 	place of abode in the state and spends in the aggregate more than one-half of the tax year 
53.11 	in Minnesota, unless:
53.12 	(1) the individual or the spouse of the individual is in the armed forces of the United 
53.13 	States; or
53.14 	(2) the individual is covered under the reciprocity provisions in section 290.081.
53.15 	For purposes of this subdivision, presence within the state for any part of a calendar day 
53.16 	constitutes a day spent in the state. A day does not qualify as a Minnesota day if the taxpayer 
53.17 	traveled from a place outside of Minnesota primarily for and essential to obtaining medical 
53.18 	care, as defined in Internal Revenue Code, section 213(d)(1)(A), in Minnesota for the 
53.19 	taxpayer, spouse, or a dependent of the taxpayer and the travel expense is allowed under 
53.20 	Internal Revenue Code, section 213(d)(1)(B), and is claimed by the taxpayer as a deductible 
53.21 	expense. Individuals shall keep adequate records to substantiate the days spent outside the 
53.22 	state.
53.23 	The term "abode" means a dwelling maintained by an individual, whether or not owned 
53.24 	by the individual and whether or not occupied by the individual, and includes a dwelling 
53.25 	place owned or leased by the individual's spouse.
53.26 	(c) In determining where an individual is domiciled, neither the commissioner nor any 
53.27 	court shall consider:
53.28 	(1) charitable contributions made by an the individual within or without the state in 
53.29 	determining if the individual is domiciled in Minnesota.;
53.30 	(2) the location of the individual's attorney, certified public accountant, or financial 
53.31 	adviser; or
53.32 	(3) the place of business of a financial institution at which the individual applies for any 
53.33 	new type of credit or at which the individual opens or maintains any type of account.
54.1 	(d) For purposes of this subdivision, the following terms have the meanings given them:
54.2 	(1) "financial adviser" means:
54.3 	(i) an individual or business entity engaged in business as a certified financial planner, 
54.4 	registered investment adviser, licensed insurance producer or agent, or a registered securities 
54.5 	broker-dealer representative; or
54.6 	(ii) a financial institution providing services related to trust or estate administration, 
54.7 	investment management, or financial planning; and
54.8 	(2) "financial institution" means a financial institution as defined in section 47.015, 
54.9 	subdivision 1; a state or nationally chartered credit union; or a registered broker-dealer 
54.10 	under the Securities and Exchange Act of 1934.

54.11 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
54.12 	31, 2016, except the amendment to paragraph (b) is effective for taxable years beginning 
54.13 	after December 31, 2017.

54.14 	Sec. 5. Minnesota Statutes 2016, section 290.01, subdivision 19, is amended to read:
54.15 		Subd. 19.Net income. The term "net income" means the federal taxable income, as 
54.16 	defined in section 63 of the Internal Revenue Code of 1986, as amended through the date 
54.17 	named in this subdivision, incorporating the federal effective dates of changes to the Internal 
54.18 	Revenue Code and any elections made by the taxpayer in accordance with the Internal 
54.19 	Revenue Code in determining federal taxable income for federal income tax purposes, and 
54.20 	with the modifications provided in sections 290.0131 to 290.0136.
54.21 	In the case of a regulated investment company or a fund thereof, as defined in section 
54.22 	851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment 
54.23 	company taxable income as defined in section 852(b)(2) of the Internal Revenue Code, 
54.24 	except that:
54.25 	(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal 
54.26 	Revenue Code does not apply;
54.27 	(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal Revenue 
54.28 	Code must be applied by allowing a deduction for capital gain dividends and exempt-interest 
54.29 	dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal Revenue Code; 
54.30 	and
55.1 	(3) the deduction for dividends paid must also be applied in the amount of any 
55.2 	undistributed capital gains which the regulated investment company elects to have treated 
55.3 	as provided in section 852(b)(3)(D) of the Internal Revenue Code.
55.4 	The net income of a real estate investment trust as defined and limited by section 856(a), 
55.5 	(b), and (c) of the Internal Revenue Code means the real estate investment trust taxable 
55.6 	income as defined in section 857(b)(2) of the Internal Revenue Code.
55.7 	The net income of a designated settlement fund as defined in section 468B(d) of the 
55.8 	Internal Revenue Code means the gross income as defined in section 468B(b) of the Internal 
55.9 	Revenue Code.
55.10 	The Internal Revenue Code of 1986, as amended through December 31, 2014 2015, 
55.11 	shall be in effect for taxable years beginning after December 31, 1996.
55.12 	Except as otherwise provided, references to the Internal Revenue Code in this subdivision 
55.13 	and sections 290.0131 to 290.0136 mean the code in effect for purposes of determining net 
55.14 	income for the applicable year.

55.15 	EFFECTIVE DATE. This section is effective the day following final enactment, except 
55.16 	the changes incorporated by federal changes are effective retroactively at the same time as 
55.17 	the changes were effective for federal purposes.

55.18 	Sec. 6. Minnesota Statutes 2016, section 290.01, subdivision 31, is amended to read:
55.19 		Subd. 31.Internal Revenue Code. Unless specifically defined otherwise, "Internal 
55.20 	Revenue Code" means the Internal Revenue Code of 1986, as amended through December 
55.21 	31, 2014 2015. Internal Revenue Code also includes any uncodified provision in federal 
55.22 	law that relates to provisions of the Internal Revenue Code that are incorporated into 
55.23 	Minnesota law. When used in this chapter, the reference to "subtitle A, chapter 1, subchapter 
55.24 	N, part 1, of the Internal Revenue Code" is to the Internal Revenue Code as amended through 
55.25 	March 18, 2010.

55.26 	EFFECTIVE DATE. This section is effective the day following final enactment, except 
55.27 	the changes incorporated by federal changes are effective retroactively at the same time as 
55.28 	the changes were effective for federal purposes.

55.29 	Sec. 7. Minnesota Statutes 2016, section 290.0131, subdivision 10, is amended to read:
55.30 		Subd. 10.Section 179 expensing. 80 percent of the amount by which the deduction 
55.31 	allowed by section 179 of the Internal Revenue Code exceeds the deduction allowable by
56.1 	under the dollar limits of section 179 of the Internal Revenue Code, as amended through 
56.2 	December 31, 2003, is an addition.

56.3 	EFFECTIVE DATE. This section is effective the day following final enactment, except 
56.4 	the changes incorporated by federal changes are effective retroactively at the same time as 
56.5 	the changes were effective for federal purposes.

56.6 	Sec. 8. Minnesota Statutes 2016, section 290.0132, subdivision 14, is amended to read:
56.7 		Subd. 14.Section 179 expensing. In each of the five taxable years immediately following 
56.8 	the taxable year in which an addition is required under section 290.0131, subdivision 10, 
56.9 	or 290.0133, subdivision 12, for a shareholder of a corporation that is an S corporation, an 
56.10 	amount equal to one-fifth of the addition made by the taxpayer under section 290.0131, 
56.11 	subdivision 10, or 290.0133, subdivision 12, for a shareholder of a corporation that is an S 
56.12 	corporation, minus the positive value of any net operating loss under section 172 of the 
56.13 	Internal Revenue Code generated for the taxable year of the addition, is a subtraction. If the 
56.14 	net operating loss exceeds the addition for the taxable year, a subtraction is not allowed 
56.15 	under this subdivision. The section 179 expensing subtraction as provided under section 
56.16 	290.0803, subdivision 3, is a subtraction.

56.17 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
56.18 	31, 2016.

56.19 	Sec. 9. Minnesota Statutes 2016, section 290.0132, subdivision 21, is amended to read:
56.20 		Subd. 21.Military service pension; retirement pay.  To the extent included in federal 
56.21 	taxable income, compensation received from a pension or other retirement pay from the 
56.22 	federal government for service in the military, as computed under United States Code, title 
56.23 	10, sections 1401 to 1414, 1447 to 1455, and 12733, is a subtraction. The subtraction must 
56.24 	not include any amount used to claim the credit allowed under section 290.0677. This 
56.25 	subtraction is limited to individuals who do not claim the credit under section 290.0677.

56.26 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
56.27 	31, 2016.

56.28 	Sec. 10. Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision 
56.29 	to read:
56.30 		Subd. 23.Section 529 plans. The amount equal to the contributions made by the taxpayer 
56.31 	during the taxable year to an account in a plan qualifying under section 529 of the Internal 
56.32 	Revenue Code, reduced by any withdrawals from the account during the taxable year, not 
57.1 	including amounts rolled over from other accounts in plans qualifying under section 529 
57.2 	of the Internal Revenue Code, and not to exceed $3,000 for married couples filing joint 
57.3 	returns and $1,500 for all other filers is a subtraction. The subtraction is limited to individuals 
57.4 	who do not claim the credit allowed under section 290.0684.

57.5 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
57.6 	31, 2016.

57.7 	Sec. 11. Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision 
57.8 	to read:
57.9 		Subd. 24.Discharge of indebtedness; education loans. (a) To the extent included in 
57.10 	federal taxable income, the discharge of indebtedness of the taxpayer if the indebtedness 
57.11 	discharged is a qualified education loan, as defined in section 221 of the Internal Revenue 
57.12 	Code, and the indebtedness was discharged following the taxpayer's completion of an 
57.13 	income-driven repayment plan is a subtraction.
57.14 	(b) For purposes of this subdivision, "income-driven repayment plan" means a payment 
57.15 	plan established by the United States Department of Education that sets monthly student 
57.16 	loan payments based on income and family size under United States Code, title 20, section 
57.17 	1087e, or similar authority and specifically includes, but is not limited to:
57.18 	(1) the income-based repayment plan under United State Code, title 20, section 1098e;
57.19 	(2) the income contingent repayment plan established under United State Code, title 20, 
57.20 	section 1087e, subsection (e); and
57.21 	(3) the PAYE program or REPAYE program established by the Department of Education 
57.22 	under administrative regulations.

57.23 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
57.24 	31, 2016.

57.25 	Sec. 12. Minnesota Statutes 2016, section 290.0133, subdivision 12, is amended to read:
57.26 		Subd. 12.Section 179 expensing. 80 percent of the amount by which the deduction 
57.27 	allowed by section 179 of the Internal Revenue Code exceeds the deduction allowable by
57.28 	under the dollar limits of section 179 of the Internal Revenue Code, as amended through 
57.29 	December 31, 2003, is an addition.

57.30 	EFFECTIVE DATE; REVIVAL AND REENACTMENT. This section is effective 
57.31 	retroactively from January 1, 2015, and Laws 2010, chapter 216, section 12, the effective 
58.1 	date, as amended by Laws 2016, chapter 158, article 1, section 212, is revived and reenacted 
58.2 	as of that date.

58.3 	Sec. 13. Minnesota Statutes 2016, section 290.0134, subdivision 14, is amended to read:
58.4 		Subd. 14.Section 179 expensing. In each of the five taxable years immediately following 
58.5 	the taxable year in which an addition is required under section 290.0133, subdivision 12, 
58.6 	an amount equal to one-fifth of the amount of the addition is a subtraction.  The section 179 
58.7 	expensing subtraction as provided under section 290.0803, subdivision 3, is a subtraction.

58.8 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
58.9 	31, 2016.

58.10 	Sec. 14. Minnesota Statutes 2016, section 290.06, subdivision 22, is amended to read:
58.11 		Subd. 22.Credit for taxes paid to another state. (a) A taxpayer who is liable for taxes 
58.12 	based on net income to another state, as provided in paragraphs (b) through (f), upon income 
58.13 	allocated or apportioned to Minnesota, is entitled to a credit for the tax paid to another state 
58.14 	if the tax is actually paid in the taxable year or a subsequent taxable year. A taxpayer who 
58.15 	is a resident of this state pursuant to section 290.01, subdivision 7, paragraph (b), and who 
58.16 	is subject to income tax as a resident in the state of the individual's domicile is not allowed 
58.17 	this credit unless the state of domicile does not allow a similar credit.
58.18 	(b) For an individual, estate, or trust, the credit is determined by multiplying the tax 
58.19 	payable under this chapter by the ratio derived by dividing the income subject to tax in the 
58.20 	other state that is also subject to tax in Minnesota while a resident of Minnesota by the 
58.21 	taxpayer's federal adjusted gross income, as defined in section 62 of the Internal Revenue 
58.22 	Code, modified by the addition required by section 290.0131, subdivision 2, and the 
58.23 	subtraction allowed by section 290.0132, subdivision 2, to the extent the income is allocated 
58.24 	or assigned to Minnesota under sections 290.081 and 290.17.
58.25 	(c) If the taxpayer is an athletic team that apportions all of its income under section 
58.26 	290.17, subdivision 5, the credit is determined by multiplying the tax payable under this 
58.27 	chapter by the ratio derived from dividing the total net income subject to tax in the other 
58.28 	state by the taxpayer's Minnesota taxable income.
58.29 	(d)(1) The credit determined under paragraph (b) or (c) shall not exceed the amount of 
58.30 	tax so paid to the other state on the gross income earned within the other state subject to 
58.31 	tax under this chapter,.
59.1 	nor shall (2) the allowance of the credit does not reduce the taxes paid under this chapter 
59.2 	to an amount less than what would be assessed if such income amount was the gross income 
59.3 	earned within the other state were excluded from taxable net income.
59.4 	(e) In the case of the tax assessed on a lump-sum distribution under section 290.032, the 
59.5 	credit allowed under paragraph (a) is the tax assessed by the other state on the lump-sum 
59.6 	distribution that is also subject to tax under section 290.032, and shall not exceed the tax 
59.7 	assessed under section 290.032. To the extent the total lump-sum distribution defined in 
59.8 	section 290.032, subdivision 1, includes lump-sum distributions received in prior years or 
59.9 	is all or in part an annuity contract, the reduction to the tax on the lump-sum distribution 
59.10 	allowed under section 290.032, subdivision 2, includes tax paid to another state that is 
59.11 	properly apportioned to that distribution.
59.12 	(f) If a Minnesota resident reported an item of income to Minnesota and is assessed tax 
59.13 	in such other state on that same income after the Minnesota statute of limitations has expired, 
59.14 	the taxpayer shall receive a credit for that year under paragraph (a), notwithstanding any 
59.15 	statute of limitations to the contrary. The claim for the credit must be submitted within one 
59.16 	year from the date the taxes were paid to the other state. The taxpayer must submit sufficient 
59.17 	proof to show entitlement to a credit.
59.18 	(g) For the purposes of this subdivision, a resident shareholder of a corporation treated 
59.19 	as an "S" corporation under section 290.9725, must be considered to have paid a tax imposed 
59.20 	on the shareholder in an amount equal to the shareholder's pro rata share of any net income 
59.21 	tax paid by the S corporation to another state. For the purposes of the preceding sentence, 
59.22 	the term "net income tax" means any tax imposed on or measured by a corporation's net 
59.23 	income.
59.24 	(h) For the purposes of this subdivision, a resident partner of an entity taxed as a 
59.25 	partnership under the Internal Revenue Code must be considered to have paid a tax imposed 
59.26 	on the partner in an amount equal to the partner's pro rata share of any net income tax paid 
59.27 	by the partnership to another state. For purposes of the preceding sentence, the term "net 
59.28 	income" tax means any tax imposed on or measured by a partnership's net income.
59.29 	(i) For the purposes of this subdivision, "another state":
59.30 	(1) includes:
59.31 	(i) the District of Columbia; and
59.32 	(ii) a province or territory of Canada; but
59.33 	(2) excludes Puerto Rico and the several territories organized by Congress.
60.1 	(j) The limitations on the credit in paragraphs (b), (c), and (d), are imposed on a state 
60.2 	by state basis.
60.3 	(k) For a tax imposed by a province or territory of Canada, the tax for purposes of this 
60.4 	subdivision is the excess of the tax over the amount of the foreign tax credit allowed under 
60.5 	section 27 of the Internal Revenue Code. In determining the amount of the foreign tax credit 
60.6 	allowed, the net income taxes imposed by Canada on the income are deducted first. Any 
60.7 	remaining amount of the allowable foreign tax credit reduces the provincial or territorial 
60.8 	tax that qualifies for the credit under this subdivision.
60.9 	(l) If the amount of the credit which a qualifying individual is eligible to receive under 
60.10 	this section for tax paid to a qualifying state, disregarding the limitation in paragraph (d), 
60.11 	clause (2), exceeds the tax due under this chapter, the commissioner shall refund the excess 
60.12 	to the individual. An amount sufficient to pay the refunds required by this section is 
60.13 	appropriated to the commissioner from the general fund.
60.14 	For purposes of this paragraph, "qualifying individual" means a Minnesota resident under 
60.15 	section 290.01, subdivision 7, paragraph (a), who received compensation during the taxable 
60.16 	year for the performance of personal or professional services within a qualifying state, and 
60.17 	"qualifying state" means a state with which an agreement under section 290.081 is not in 
60.18 	effect for the taxable year but was in effect for a taxable year beginning before January 1, 
60.19 	2010.

60.20 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
60.21 	31, 2016.

60.22 	Sec. 15. Minnesota Statutes 2016, section 290.067, subdivision 1, is amended to read:
60.23 		Subdivision 1.Amount of credit. (a) A taxpayer may take as a credit against the tax 
60.24 	due from the taxpayer and a spouse, if any, under this chapter an amount equal to the 
60.25 	dependent care credit for which the taxpayer is eligible pursuant to the provisions of section 
60.26 	21 of the Internal Revenue Code subject to the limitations provided in subdivision 2 except 
60.27 	that in determining whether the child qualified as a dependent, income received as a 
60.28 	Minnesota family investment program grant or allowance to or on behalf of the child must 
60.29 	not be taken into account in determining whether the child received more than half of the 
60.30 	child's support from the taxpayer, and the provisions of section 32(b)(1)(D) of the Internal 
60.31 	Revenue Code do not apply.
60.32 	(b) If a child who has not attained the age of six years at the close of the taxable year is 
60.33 	cared for at a licensed family day care home operated by the child's parent, the taxpayer is 
61.1 	deemed to have paid employment-related expenses. If the child is 16 months old or younger 
61.2 	at the close of the taxable year, the amount of expenses deemed to have been paid equals 
61.3 	the maximum limit for one qualified individual under section 21(c) and (d) of the Internal 
61.4 	Revenue Code. If the child is older than 16 months of age but has not attained the age of 
61.5 	six years at the close of the taxable year, the amount of expenses deemed to have been paid 
61.6 	equals the amount the licensee would charge for the care of a child of the same age for the 
61.7 	same number of hours of care.
61.8 	(c) If a married couple:
61.9 	(1) has a child who has not attained the age of one year at the close of the taxable year;
61.10 	(2) files a joint tax return for the taxable year; and
61.11 	(3) does not participate in a dependent care assistance program as defined in section 129 
61.12 	of the Internal Revenue Code, in lieu of the actual employment related expenses paid for 
61.13 	that child under paragraph (a) or the deemed amount under paragraph (b), the lesser of (i) 
61.14 	the combined earned income of the couple or (ii) the amount of the maximum limit for one 
61.15 	qualified individual under section 21(c) and (d) of the Internal Revenue Code will be deemed 
61.16 	to be the employment related expense paid for that child. The earned income limitation of 
61.17 	section 21(d) of the Internal Revenue Code shall not apply to this deemed amount. These 
61.18 	deemed amounts apply regardless of whether any employment-related expenses have been 
61.19 	paid.
61.20 	(d) If the taxpayer is not required and does not file a federal individual income tax return 
61.21 	for the tax year, no credit is allowed for any amount paid to any person unless:
61.22 	(1) the name, address, and taxpayer identification number of the person are included on 
61.23 	the return claiming the credit; or
61.24 	(2) if the person is an organization described in section 501(c)(3) of the Internal Revenue 
61.25 	Code and exempt from tax under section 501(a) of the Internal Revenue Code, the name 
61.26 	and address of the person are included on the return claiming the credit.
61.27 	In the case of a failure to provide the information required under the preceding sentence, 
61.28 	the preceding sentence does not apply if it is shown that the taxpayer exercised due diligence 
61.29 	in attempting to provide the information required.
61.30 	(e) In the case of a nonresident, part-year resident, or a person who has earned income 
61.31 	not subject to tax under this chapter including earned income excluded pursuant to section 
61.32 	290.0132, subdivision 10, the credit determined under section 21 of the Internal Revenue 
61.33 	Code must be allocated based on the ratio by which the earned income of the claimant and 
62.1 	the claimant's spouse from Minnesota sources bears to the total earned income of the claimant 
62.2 	and the claimant's spouse.
62.3 	(f) For residents of Minnesota, the subtractions for military pay under section 290.0132, 
62.4 	subdivisions 11 and 12, are not considered "earned income not subject to tax under this 
62.5 	chapter."
62.6 	(g) For residents of Minnesota, the exclusion of combat pay under section 112 of the 
62.7 	Internal Revenue Code is not considered "earned income not subject to tax under this 
62.8 	chapter."
62.9 	(h) For taxpayers with federal adjusted gross income in excess of $38,310, the credit is 
62.10 	equal to the lesser of the credit otherwise calculated under this subdivision or the amount 
62.11 	equal to the credit otherwise calculated under this subdivision minus ten percent of federal 
62.12 	adjusted gross income in excess of $38,310, but in no case is the credit less than zero. For 
62.13 	purposes of this paragraph, "federal adjusted gross income" has the meaning given in section 
62.14 	62 of the Internal Revenue Code.

62.15 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
62.16 	31, 2016.

62.17 	Sec. 16. Minnesota Statutes 2016, section 290.067, subdivision 2b, is amended to read:
62.18 		Subd. 2b.Inflation adjustment. The commissioner shall adjust the dollar amount of 
62.19 	the income threshold at which the maximum credit begins to be reduced under subdivision 
62.20 	2 1 by the percentage determined pursuant to the provisions of section 1(f) of the Internal 
62.21 	Revenue Code, except that in section 1(f)(3)(B) the word "1999" "2016" shall be substituted 
62.22 	for the word "1992." For 2001 2018, the commissioner shall then determine the percent 
62.23 	change from the 12 months ending on August 31, 1999 2016, to the 12 months ending on 
62.24 	August 31, 2000 2017, and in each subsequent year, from the 12 months ending on August 
62.25 	31, 1999 2016, to the 12 months ending on August 31 of the year preceding the taxable 
62.26 	year. The determination of the commissioner pursuant to this subdivision must not be 
62.27 	considered a "rule" and is not subject to the Administrative Procedure Act contained in 
62.28 	chapter 14. The threshold amount as adjusted must be rounded to the nearest $10 amount. 
62.29 	If the amount ends in $5, the amount is rounded up to the nearest $10 amount.

62.30 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
62.31 	31, 2017.

63.1 	Sec. 17. Minnesota Statutes 2016, section 290.0671, subdivision 1, is amended to read:
63.2 		Subdivision 1.Credit allowed. (a) An individual who is a resident of Minnesota is 
63.3 	allowed a credit against the tax imposed by this chapter equal to a percentage of earned 
63.4 	income. To receive a credit, a taxpayer must be eligible for a credit under section 32 of the 
63.5 	Internal Revenue Code., except that:
63.6 	(i) the earned income and adjusted gross income limitations of section 32 of the Internal 
63.7 	Revenue Code do not apply; and
63.8 	(ii) a taxpayer with no qualifying children who has attained the age of 21 but not attained 
63.9 	age 65 before the close of the taxable year and is otherwise eligible for a credit under section 
63.10 	32 of the Internal Revenue Code may also receive a credit.
63.11 	(b) For individuals with no qualifying children, the credit equals 2.10 three percent of 
63.12 	the first $6,180 $6,550 of earned income. The credit is reduced by 2.01 three percent of 
63.13 	earned income or adjusted gross income, whichever is greater, in excess of $8,130 $12,100, 
63.14 	but in no case is the credit less than zero.
63.15 	(c) For individuals with one qualifying child, the credit equals 9.35 12.71 percent of the 
63.16 	first $11,120 $8,420 of earned income. The credit is reduced by 6.02 5.2 percent of earned 
63.17 	income or adjusted gross income, whichever is greater, in excess of $21,190 $21,790, but 
63.18 	in no case is the credit less than zero.
63.19 	(d) For individuals with two or more qualifying children, the credit equals 11 14.94
63.20 	percent of the first $18,240 $13,810 of earned income. The credit is reduced by 10.82 9.2
63.21 	percent of earned income or adjusted gross income, whichever is greater, in excess of 
63.22 	$25,130 $25,850, but in no case is the credit less than zero.
63.23 	(e) For a part-year resident, the credit must be allocated based on the percentage calculated 
63.24 	under section 290.06, subdivision 2c, paragraph (e).
63.25 	(f) For a person who was a resident for the entire tax year and has earned income not 
63.26 	subject to tax under this chapter, including income excluded under section 290.0132, 
63.27 	subdivision 10, the credit must be allocated based on the ratio of federal adjusted gross 
63.28 	income reduced by the earned income not subject to tax under this chapter over federal 
63.29 	adjusted gross income. For purposes of this paragraph, the subtractions for military pay 
63.30 	under section 290.0132, subdivisions 11 and 12, are not considered "earned income not 
63.31 	subject to tax under this chapter."
64.1 	For the purposes of this paragraph, the exclusion of combat pay under section 112 of 
64.2 	the Internal Revenue Code is not considered "earned income not subject to tax under this 
64.3 	chapter."
64.4 	(g) For tax years beginning after December 31, 2007, and before December 31, 2010, 
64.5 	and for tax years beginning after December 31, 2017, the $8,130 $12,100 in paragraph (b), 
64.6 	the $21,190 $21,790 in paragraph (c), and the $25,130 $25,850 in paragraph (d), after being 
64.7 	adjusted for inflation under subdivision 7, are each increased by $3,000 for married taxpayers 
64.8 	filing joint returns. For tax years beginning after December 31, 2008 2017, the commissioner 
64.9 	shall annually adjust the $3,000 by the percentage determined pursuant to the provisions of 
64.10 	section 1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B), the word "2007" 
64.11 	shall be substituted for the word "1992." For 2009 2018, the commissioner shall then 
64.12 	determine the percent change from the 12 months ending on August 31, 2007, to the 12 
64.13 	months ending on August 31, 2008 2017, and in each subsequent year, from the 12 months 
64.14 	ending on August 31, 2007, to the 12 months ending on August 31 of the year preceding 
64.15 	the taxable year. The earned income thresholds as adjusted for inflation must be rounded 
64.16 	to the nearest $10. If the amount ends in $5, the amount is rounded up to the nearest $10. 
64.17 	The determination of the commissioner under this subdivision is not a rule under the 
64.18 	Administrative Procedure Act.
64.19 	(h)(1) For tax years beginning after December 31, 2012, and before January 1, 2014, 
64.20 	the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in paragraph (d), 
64.21 	after being adjusted for inflation under subdivision 7, are increased by $5,340 for married 
64.22 	taxpayers filing joint returns; and (2) for tax years beginning after December 31, 2013 2016, 
64.23 	and before January 1, 2018, the $8,130 $12,100 in paragraph (b), the $21,190 $21,790 in 
64.24 	paragraph (c), and the $25,130 $25,850 in paragraph (d), after being adjusted for inflation 
64.25 	under subdivision 7, are each increased by $5,000 for married taxpayers filing joint returns. 
64.26 	For tax years beginning after December 31, 2010, and before January 1, 2012, and for tax 
64.27 	years beginning after December 31, 2013 2016, and before January 1, 2018, the commissioner 
64.28 	shall annually adjust the $5,000 by the percentage determined pursuant to the provisions of 
64.29 	section 1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B), the word "2008" 
64.30 	shall be substituted for the word "1992." For 2011 2017, the commissioner shall then 
64.31 	determine the percent change from the 12 months ending on August 31, 2008, to the 12 
64.32 	months ending on August 31, 2010 2016, and in each subsequent year, from the 12 months 
64.33 	ending on August 31, 2008, to the 12 months ending on August 31 of the year preceding 
64.34 	the taxable year. The earned income thresholds as adjusted for inflation must be rounded 
64.35 	to the nearest $10. If the amount ends in $5, the amount is rounded up to the nearest $10. 
65.1 	The determination of the commissioner under this subdivision is not a rule under the 
65.2 	Administrative Procedure Act.
65.3 	(i) The commissioner shall construct tables showing the amount of the credit at various 
65.4 	income levels and make them available to taxpayers. The tables shall follow the schedule 
65.5 	contained in this subdivision, except that the commissioner may graduate the transition 
65.6 	between income brackets.

65.7 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
65.8 	31, 2016.

65.9 	Sec. 18. Minnesota Statutes 2016, section 290.0671, subdivision 7, is amended to read:
65.10 		Subd. 7.Inflation adjustment. The earned income amounts used to calculate the credit 
65.11 	and the income thresholds at which the maximum credit begins to be reduced in subdivision 
65.12 	1 must be adjusted for inflation. The commissioner shall adjust by the percentage determined 
65.13 	pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in section 
65.14 	1(f)(3)(B) the word "2013" "2016" shall be substituted for the word "1992." For 2015 2018, 
65.15 	the commissioner shall then determine the percent change from the 12 months ending on 
65.16 	August 31, 2013 2016, to the 12 months ending on August 31, 2014 2017, and in each 
65.17 	subsequent year, from the 12 months ending on August 31, 2013 2016, to the 12 months 
65.18 	ending on August 31 of the year preceding the taxable year. The earned income thresholds 
65.19 	as adjusted for inflation must be rounded to the nearest $10 amount. If the amount ends in 
65.20 	$5, the amount is rounded up to the nearest $10 amount. The determination of the 
65.21 	commissioner under this subdivision is not a rule under the Administrative Procedure Act.

65.22 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
65.23 	31, 2017.

65.24 	Sec. 19. Minnesota Statutes 2016, section 290.0674, subdivision 2, is amended to read:
65.25 		Subd. 2.Limitations. (a) For claimants with income not greater than $33,500, the 
65.26 	maximum credit allowed for a family is $1,000 multiplied by the number of qualifying 
65.27 	children in kindergarten through grade 12 in the family. The maximum credit for families 
65.28 	with one qualifying child in kindergarten through grade 12 is reduced by $1 for each $4 of 
65.29 	household income over $33,500, and the maximum credit for families with two or more 
65.30 	qualifying children in kindergarten through grade 12 is reduced by $2 for each $4 of 
65.31 	household income over $33,500, but in no case is the credit less than zero.
66.1 	For purposes of this section "income" has the meaning given in section 290.067,
66.2 	subdivision 2a. In the case of a married claimant, a credit is not allowed unless a joint income 
66.3 	tax return is filed.
66.4 	(b) For a nonresident or part-year resident, the credit determined under subdivision 1 
66.5 	and the maximum credit amount in paragraph (a) must be allocated using the percentage 
66.6 	calculated in section 290.06, subdivision 2c, paragraph (e).

66.7 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
66.8 	31, 2016.

66.9 	Sec. 20. Minnesota Statutes 2016, section 290.0674, is amended by adding a subdivision 
66.10 	to read:
66.11 		Subd. 2a.Income. (a) For purposes of this section, "income" means the sum of the 
66.12 	following:
66.13 	(1) federal adjusted gross income as defined in section 62 of the Internal Revenue Code; 
66.14 	and
66.15 	(2) the sum of the following amounts to the extent not included in clause (1):
66.16 	(i) all nontaxable income;
66.17 	(ii) the amount of a passive activity loss that is not disallowed as a result of section 469, 
66.18 	paragraph (i) or (m), of the Internal Revenue Code and the amount of passive activity loss 
66.19 	carryover allowed under section 469(b) of the Internal Revenue Code;
66.20 	(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a 
66.21 	solvent individual excluded from gross income under section 108(g) of the Internal Revenue 
66.22 	Code;
66.23 	(iv) cash public assistance and relief;
66.24 	(v) any pension or annuity (including railroad retirement benefits, all payments received 
66.25 	under the federal Social Security Act, Supplemental Security Income, and veterans benefits), 
66.26 	which was not exclusively funded by the claimant or spouse, or which was funded exclusively 
66.27 	by the claimant or spouse and which funding payments were excluded from federal adjusted 
66.28 	gross income in the years when the payments were made;
66.29 	(vi) interest received from the federal or a state government or any instrumentality or 
66.30 	political subdivision thereof;
66.31 	(vii) workers' compensation;
67.1 	(viii) nontaxable strike benefits;
67.2 	(ix) the gross amounts of payments received in the nature of disability income or sick 
67.3 	pay as a result of accident, sickness, or other disability, whether funded through insurance 
67.4 	or otherwise;
67.5 	(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of 
67.6 	1986, as amended through December 31, 1995;
67.7 	(xi) contributions made by the claimant to an individual retirement account, including 
67.8 	a qualified voluntary employee contribution; simplified employee pension plan; 
67.9 	self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of 
67.10 	the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal 
67.11 	Revenue Code;
67.12 	(xii) nontaxable scholarship or fellowship grants;
67.13 	(xiii) the amount of deduction allowed under section 199 of the Internal Revenue Code;
67.14 	(xiv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue 
67.15 	Code;
67.16 	(xv) the amount deducted for tuition expenses under section 222 of the Internal Revenue 
67.17 	Code; and
67.18 	(xvi) the amount deducted for certain expenses of elementary and secondary school 
67.19 	teachers under section 62(a)(2)(D) of the Internal Revenue Code.
67.20 	In the case of an individual who files an income tax return on a fiscal year basis, the 
67.21 	term "federal adjusted gross income" means federal adjusted gross income reflected in the 
67.22 	fiscal year ending in the next calendar year. Federal adjusted gross income may not be 
67.23 	reduced by the amount of a net operating loss carryback or carryforward or a capital loss 
67.24 	carryback or carryforward allowed for the year.
67.25 	(b) "Income" does not include:
67.26 	(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
67.27 	(2) amounts of any pension or annuity that were exclusively funded by the claimant or 
67.28 	spouse if the funding payments were not excluded from federal adjusted gross income in 
67.29 	the years when the payments were made;
67.30 	(3) surplus food or other relief in kind supplied by a governmental agency;
67.31 	(4) relief granted under chapter 290A;
68.1 	(5) child support payments received under a temporary or final decree of dissolution or 
68.2 	legal separation; and
68.3 	(6) restitution payments received by eligible individuals and excludable interest as 
68.4 	defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001, 
68.5 	Public Law 107-16.

68.6 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
68.7 	31, 2016.

68.8 	Sec. 21. Minnesota Statutes 2016, section 290.0677, subdivision 1a, is amended to read:
68.9 		Subd. 1a.Credit allowed; past military service. (a) A qualified individual is allowed 
68.10 	a credit against the tax imposed under this chapter for past military service. The credit equals 
68.11 	$750 $1,000. The credit allowed under this subdivision is reduced by ten percent of adjusted 
68.12 	gross income in excess of $30,000 $50,000, but in no case is the credit less than zero.
68.13 	(b) For a nonresident or a part-year resident, the credit under this subdivision must be 
68.14 	allocated based on the percentage calculated under section 290.06, subdivision 2c, paragraph 
68.15 	(e).

68.16 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
68.17 	31, 2016.

68.18 	Sec. 22. Minnesota Statutes 2016, section 290.068, subdivision 2, is amended to read:
68.19 		Subd. 2.Definitions. For purposes of this section, the following terms have the meanings 
68.20 	given.
68.21 	(a) "Qualified research expenses" means (i) qualified research expenses and basic research 
68.22 	payments as defined in section 41(b) and (e) of the Internal Revenue Code, except it does 
68.23 	not include expenses incurred for qualified research or basic research conducted outside 
68.24 	the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue Code; and 
68.25 	(ii) contributions to a nonprofit corporation established and operated pursuant to the 
68.26 	provisions of chapter 317A for the purpose of promoting the establishment and expansion 
68.27 	of business in this state, provided the contributions are invested by the nonprofit corporation 
68.28 	for the purpose of providing funds for small, technologically innovative enterprises in 
68.29 	Minnesota during the early stages of their development.
68.30 	(b) "Qualified research" means qualified research as defined in section 41(d) of the 
68.31 	Internal Revenue Code, except that the term does not include qualified research conducted 
68.32 	outside the state of Minnesota.
69.1 	(c) "Base amount" means base amount as defined in section 41(c) of the Internal Revenue 
69.2 	Code, except that the average annual gross receipts must be calculated using Minnesota 
69.3 	sales or receipts under section 290.191 and the definitions contained in clauses (a) and (b) 
69.4 	shall apply. If there are inadequate records or the records are unavailable to compute or 
69.5 	verify the base percentage, a fixed base percentage of 16 percent must be used.

69.6 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
69.7 	31, 2016.

69.8 	Sec. 23. [290.0682] CREDIT FOR ATTAINING MASTER'S DEGREE IN 
69.9 	TEACHER'S LICENSURE FIELD.
69.10 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
69.11 	the meanings given them.
69.12 	(b) "Master's degree program" means a graduate-level program at an accredited university 
69.13 	leading to a master of arts or science degree in a core content area directly related to a 
69.14 	qualified teacher's licensure field. The master's degree program may not include pedagogy 
69.15 	or a pedagogy component. To be eligible under this credit, a licensed elementary school 
69.16 	teacher must pursue and complete a master's degree program in a core content area in which 
69.17 	the teacher provides direct classroom instruction.
69.18 	(c) "Qualified teacher" means a K-12 teacher who:
69.19 	(1) holds a continuing license granted by the Minnesota Board of Teaching both when 
69.20 	the teacher begins the master's degree program and when the teacher completes the master's 
69.21 	degree program;
69.22 	(2) began a master's degree program after January 1, 2017; and
69.23 	(3) completes the master's degree program during the taxable year.
69.24 	(d) "Core content area" means the academic subject of reading, English or language arts, 
69.25 	mathematics, science, foreign languages, civics and government, economics, arts, history, 
69.26 	or geography.
69.27 		Subd. 2.Credit allowed. (a) An individual who is a qualified teacher is allowed a credit 
69.28 	against the tax imposed under this chapter. The credit equals $2,500.
69.29 	(b) For a nonresident or a part-year resident, the credit under this subdivision must be 
69.30 	allocated based on the percentage calculated under section 290.06, subdivision 2c, paragraph 
69.31 	(e).
70.1 	(c) A qualified teacher may claim the credit in this section only one time for each master's 
70.2 	degree program completed in a core content area.
70.3 		Subd. 3.Credit refundable. (a) If the amount of the credit for which an individual is 
70.4 	eligible exceeds the individual's liability for tax under this chapter, the commissioner shall 
70.5 	refund the excess to the individual.
70.6 	(b) The amount necessary to pay the refunds required by this section is appropriated to 
70.7 	the commissioner from the general fund.

70.8 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
70.9 	31, 2016.

70.10 	Sec. 24. [290.0683] STUDENT LOAN CREDIT.
70.11 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
70.12 	the meanings given.
70.13 	(b) "Adjusted gross income" means federal adjusted gross income as defined in section 
70.14 	62 of the Internal Revenue Code. In the case of a married couple filing jointly, "adjusted 
70.15 	gross income" means the adjusted gross income of the taxpayer and spouse.
70.16 	(c) "Earned income" has the meaning given in section 32(c) of the Internal Revenue 
70.17 	Code, except that "earned income" includes combat pay excluded from federal taxable 
70.18 	income under section 112 of the Internal Revenue Code.
70.19 	(d) "Education profession" means:
70.20 	(1) a full-time job in public education; early childhood education, including licensed or 
70.21 	regulated child care, Head Start, and state-funded prekindergarten; school-based library 
70.22 	sciences; and other school-based services; or
70.23 	(2) a full-time job as a faculty member at a tribal college or university as defined in 
70.24 	section 1059c(b) of the Internal Revenue Code, and other faculty teaching in high-needs 
70.25 	subject areas or areas of shortage, including nurse faculty, foreign language faculty, and 
70.26 	part-time faculty at community colleges, as determined by the United States Secretary of 
70.27 	Education.
70.28 	(e) "Eligible individual" means an individual who has one or more qualified education 
70.29 	loans related to an undergraduate or graduate degree program of the individual at a 
70.30 	postsecondary educational institution.
70.31 	(f) "Eligible loan payments" means the amount the eligible individual paid during the 
70.32 	taxable year to pay principal and interest on qualified education loans.
71.1 	(g) "Postsecondary educational institution" means a postsecondary institution eligible 
71.2 	for state student aid under section 136A.103 or, if the institution is not located in this state, 
71.3 	a postsecondary institution participating in the federal Pell Grant program under Title IV 
71.4 	of the Higher Education Act of 1965, Public Law 89-329, as amended.
71.5 	(h) "Public service job" means a full-time job in emergency management; government, 
71.6 	excluding time served as a member of Congress; military service; public safety; law 
71.7 	enforcement; public health, including nurses, nurse practitioners, nurses in a clinical setting, 
71.8 	and full-time professionals engaged in health care practitioner occupations and health care 
71.9 	support occupations, as such terms are defined by the Bureau of Labor Statistics; social 
71.10 	work in a public child or family service agency; public interest law services including 
71.11 	prosecution or public defense or legal advocacy on behalf of low-income communities at 
71.12 	a nonprofit organization; public service for individuals with disabilities or public service 
71.13 	for the elderly; public library sciences; or at an organization that is described in section 
71.14 	501(c)(3) of the Internal Revenue Code and exempt from taxation under section 501(a) of 
71.15 	the Internal Revenue Code.
71.16 	(i) "Qualified education loan" has the meaning given in section 221 of the Internal 
71.17 	Revenue Code, but is limited to indebtedness incurred on behalf of the eligible individual.
71.18 		Subd. 2.Credit allowed. (a) An eligible individual is allowed a credit against the tax 
71.19 	due under this chapter. The credit equals a percentage of eligible loan payments in excess 
71.20 	of ten percent of adjusted gross income, up to $1,000, as follows:
71.21 	(1) for eligible individuals, 50 percent;
71.22 	(2) for eligible individuals in a public service job, 65 percent; and
71.23 	(3) for eligible individuals in an education profession, 75 percent.
71.24 	(b) The credit must not exceed the eligible individual's earned income for the taxable 
71.25 	year.
71.26 	(c) In the case of a married couple filing a joint return, each spouse is eligible for the 
71.27 	credit in this section.
71.28 	(d) For a nonresident or part-year resident, the credit must be allocated based on the 
71.29 	percentage calculated under section 290.06, subdivision 2c, paragraph (e).
71.30 	(e) An eligible individual may receive the credit under this section without regard to the 
71.31 	individual's eligibility for the public service loan forgiveness program under United States 
71.32 	Code, title 20, section 1087e(m).
72.1 		Subd. 3.Credit refundable. If the amount of credit that an individual who is a resident 
72.2 	or part-year resident of Minnesota is eligible to receive under this section exceeds the 
72.3 	individual's tax liability under this chapter, the commissioner shall refund the excess to the 
72.4 	individual. For a nonresident taxpayer, the credit may not exceed the taxpayer's liability for 
72.5 	tax under this chapter.
72.6 		Subd. 4.Appropriation. An amount sufficient to pay the refunds required by this section 
72.7 	is appropriated to the commissioner from the general fund.

72.8 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
72.9 	31, 2016.

72.10 	Sec. 25. [290.0684] SECTION 529 COLLEGE SAVINGS PLAN CREDIT.
72.11 		Subdivision 1.Definitions. For purposes of this section, the term "federal adjusted gross 
72.12 	income" has the meaning given under section 62(a) of the Internal Revenue Code, and 
72.13 	"nonqualified distribution" means any distribution that is includible in gross income under 
72.14 	section 529 of the Internal Revenue Code.
72.15 		Subd. 2.Credit allowed. (a) A credit of up to $500 is allowed against the tax imposed 
72.16 	by this chapter to a resident individual who contributes to an account in a plan qualifying 
72.17 	under section 529 of the Internal Revenue Code, subject to the limitations in paragraph (b). 
72.18 	The credit is not allowed to an individual who is eligible to be claimed as a dependent, as 
72.19 	defined in sections 151 and 152 of the Internal Revenue Code.
72.20 	(b) The credit allowed must be calculated by applying the following rates to the amount 
72.21 	contributed to an account in a plan qualifying under section 529 of the Internal Revenue 
72.22 	Code, in a taxable year, reduced by any withdrawals from the account made during the 
72.23 	taxable year, and not including any amounts rolled over from other accounts in plans 
72.24 	qualifying under section 529 of the Internal Revenue Code:
72.25 	(1) 50 percent for individual filers and married couples filing a joint return who have 
72.26 	federal adjusted gross income of not more than $80,000;
72.27 	(2) 25 percent for married couples filing a joint return who have federal adjusted gross 
72.28 	income over $80,000, but not more than $100,000;
72.29 	(3) ten percent for married couples filing a joint return who have federal adjusted gross 
72.30 	income over $100,000, but not more than $120,000; and
72.31 	(4) five percent for married couples filing a joint return who have federal adjusted gross 
72.32 	income over $120,000, but not more than $160,000.
73.1 	(c) The income thresholds in paragraph (b), clauses (1) to (4), used to calculate the credit, 
73.2 	must be adjusted for inflation. The commissioner shall adjust by the percentage determined 
73.3 	under the provisions of section 1(f) of the Internal Revenue Code, except that in section 
73.4 	1(f)(3)(B) the word "2015" is substituted for the word "1992." For 2017, the commissioner 
73.5 	shall then determine the percent change from the 12 months ending on August 31, 2015, to 
73.6 	the 12 months ending on August 31, 2016, and in each subsequent year, from the 12 months 
73.7 	ending on August 31, 2015, to the 12 months ending on August 31 of the year preceding 
73.8 	the taxable year. The income thresholds as adjusted for inflation must be rounded to the 
73.9 	nearest $10 amount. If the amount ends in $5, the amount is rounded up to the nearest $10 
73.10 	amount. The determination of the commissioner under this subdivision is not a rule under 
73.11 	the Administrative Procedure Act including section 14.386.
73.12 		Subd. 3.Credit refundable. If the amount of credit that an individual is eligible to 
73.13 	receive under this section exceeds the individual's tax liability under this chapter, the 
73.14 	commissioner shall refund the excess to the individual.
73.15 		Subd. 4.Allocation. For a part-year resident, the credit must be allocated based on the 
73.16 	percentage calculated under section 290.06, subdivision 2c, paragraph (e).
73.17 		Subd. 5.Recapture of credit. In the case of a nonqualified distribution, the taxpayer is 
73.18 	liable to the commissioner for the lesser of: ten percent of the amount of the nonqualified 
73.19 	distribution, or the sum of credits received under this section for all years.
73.20 		Subd. 6.Appropriation. An amount sufficient to pay the refunds required by this section 
73.21 	is appropriated to the commissioner from the general fund.

73.22 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
73.23 	31, 2016.

73.24 	Sec. 26. Minnesota Statutes 2016, section 290.0685, subdivision 1, is amended to read:
73.25 		Subdivision 1.Credit allowed. (a) An eligible individual is allowed a credit against the 
73.26 	tax imposed by this chapter equal to $2,000 for each birth for which a certificate of birth 
73.27 	resulting in stillbirth has been issued under section 144.2151. The credit under this section 
73.28 	is allowed only in the taxable year in which the stillbirth occurred and if the child would 
73.29 	have been a dependent of the taxpayer as defined in section 152 of the Internal Revenue 
73.30 	Code.
73.31 	(b) For a nonresident or part-year resident, the credit must be allocated based on the 
73.32 	percentage calculated under section 290.06, subdivision 2c, paragraph (e).
73.33 	(c) For purposes of this section, "eligible individual" means:
74.1 	(1) the individual who gave birth to the child and who is listed as a parent on the 
74.2 	certificate of birth resulting in stillbirth; or
74.3 	(2) if no individual meets the requirement of clause (1), then the first parent listed on 
74.4 	the certificate of birth resulting in stillbirth.

74.5 	EFFECTIVE DATE. This section is effective the day following final enactment for 
74.6 	taxable years beginning after December 31, 2016.

74.7 	Sec. 27. Minnesota Statutes 2016, section 290.0692, is amended by adding a subdivision 
74.8 	to read:
74.9 		Subd. 6.Sunset. This section expires at the same time and on the same terms as section 
74.10 	116J.8737, except that the expiration of this section does not affect the commissioner of 
74.11 	revenue's authority to audit or power of examination and assessment for credits claimed 
74.12 	under this section.

74.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

74.14 	Sec. 28. [290.0803] SECTION 179 EXPENSING SUBTRACTION.
74.15 		Subdivision 1.Current year allowance. (a) In each of the five tax years immediately 
74.16 	following the tax year in which an addition is required under section 290.0131, subdivision 
74.17 	10, or 290.0133, subdivision 12, the current year allowance equals one-fifth of the addition 
74.18 	made by the taxpayer under section 290.0131, subdivision 10, or 290.0133, subdivision 12.
74.19 	(b) In the case of a shareholder of a corporation that is an S corporation, the current year 
74.20 	allowance is reduced by the positive value of any net operating loss under section 172 of 
74.21 	the Internal Revenue Code generated for the tax year of the addition and, if the net operating 
74.22 	loss exceeds the addition for the tax year, the current year allowance is zero.
74.23 		Subd. 2.Section 179 expensing carryover. (a) For purposes of this section, the current 
74.24 	year allowance determined under subdivision 1 is considered to be the last modification 
74.25 	allowed under section 290.0132 in determining net income. If the amount allowed under 
74.26 	subdivision 1 exceeds net income computed without regard to the current year allowance, 
74.27 	then the excess is a section 179 expensing carryover to each of the ten succeeding taxable 
74.28 	years. The entire amount of the section 179 expensing carryover is carried first to the earliest 
74.29 	taxable year to which the section 179 expensing carryover may be carried and then to each 
74.30 	successive year to which the section 179 expensing carryover may be carried.
74.31 	(b) The provisions of this subdivision do not apply to corporations taxable under section 
74.32 	290.02.
75.1 		Subd. 3.Section 179 expensing subtraction. A taxpayer is allowed a section 179 
75.2 	expensing subtraction from federal taxable income under section 290.0132, subdivision 14, 
75.3 	or 290.0134, subdivision 14. The subtraction equals the sum of:
75.4 	(1) the current year allowance determined under subdivision 1; and
75.5 	(2) for an individual, estate, or trust, any section 179 expensing carryover from prior 
75.6 	taxable years determined under subdivision 2.

75.7 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
75.8 	31, 2016.

75.9 	Sec. 29. Minnesota Statutes 2016, section 290.091, subdivision 2, is amended to read:
75.10 		Subd. 2.Definitions. For purposes of the tax imposed by this section, the following 
75.11 	terms have the meanings given:
75.12 	(a) "Alternative minimum taxable income" means the sum of the following for the taxable 
75.13 	year:
75.14 	(1) the taxpayer's federal alternative minimum taxable income as defined in section 
75.15 	55(b)(2) of the Internal Revenue Code;
75.16 	(2) the taxpayer's itemized deductions allowed in computing federal alternative minimum 
75.17 	taxable income, but excluding:
75.18 	(i) the charitable contribution deduction under section 170 of the Internal Revenue Code;
75.19 	(ii) the medical expense deduction;
75.20 	(iii) the casualty, theft, and disaster loss deduction; and
75.21 	(iv) the impairment-related work expenses of a disabled person;
75.22 	(3) for depletion allowances computed under section 613A(c) of the Internal Revenue 
75.23 	Code, with respect to each property (as defined in section 614 of the Internal Revenue Code), 
75.24 	to the extent not included in federal alternative minimum taxable income, the excess of the 
75.25 	deduction for depletion allowable under section 611 of the Internal Revenue Code for the 
75.26 	taxable year over the adjusted basis of the property at the end of the taxable year (determined 
75.27 	without regard to the depletion deduction for the taxable year);
75.28 	(4) to the extent not included in federal alternative minimum taxable income, the amount 
75.29 	of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal Revenue 
75.30 	Code determined without regard to subparagraph (E);
76.1 	(5) to the extent not included in federal alternative minimum taxable income, the amount 
76.2 	of interest income as provided by section 290.0131, subdivision 2; and
76.3 	(6) the amount of addition required by section 290.0131, subdivisions 9 to 11;
76.4 	less the sum of the amounts determined under the following:
76.5 	(1) interest income as defined in section 290.0132, subdivision 2;
76.6 	(2) an overpayment of state income tax as provided by section 290.0132, subdivision 3, 
76.7 	to the extent included in federal alternative minimum taxable income;
76.8 	(3) the amount of investment interest paid or accrued within the taxable year on 
76.9 	indebtedness to the extent that the amount does not exceed net investment income, as defined 
76.10 	in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts deducted 
76.11 	in computing federal adjusted gross income;
76.12 	(4) amounts subtracted from federal taxable income as provided by section 290.0132, 
76.13 	subdivisions 7, 9 to 15, 17, and 21 24; and
76.14 	(5) the amount of the net operating loss allowed under section 290.095, subdivision 11, 
76.15 	paragraph (c).
76.16 	In the case of an estate or trust, alternative minimum taxable income must be computed 
76.17 	as provided in section 59(c) of the Internal Revenue Code.
76.18 	(b) "Investment interest" means investment interest as defined in section 163(d)(3) of 
76.19 	the Internal Revenue Code.
76.20 	(c) "Net minimum tax" means the minimum tax imposed by this section.
76.21 	(d) "Regular tax" means the tax that would be imposed under this chapter (without regard 
76.22 	to this section and section 290.032), reduced by the sum of the nonrefundable credits allowed 
76.23 	under this chapter.
76.24 	(e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable income 
76.25 	after subtracting the exemption amount determined under subdivision 3.

76.26 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
76.27 	31, 2016.

76.28 	Sec. 30. Minnesota Statutes 2016, section 290A.03, subdivision 15, is amended to read:
76.29 		Subd. 15.Internal Revenue Code.  "Internal Revenue Code" means the Internal Revenue 
76.30 	Code of 1986, as amended through December 31, 2014 2015.

77.1 	EFFECTIVE DATE. This section is effective retroactively for property tax refunds 
77.2 	based on property taxes payable after December 31, 2016, and rent paid after December 
77.3 	31, 2015.

77.4 	Sec. 31. Minnesota Statutes 2016, section 291.005, subdivision 1, is amended to read:
77.5 		Subdivision 1.Scope. Unless the context otherwise clearly requires, the following terms 
77.6 	used in this chapter shall have the following meanings:
77.7 	(1) "Commissioner" means the commissioner of revenue or any person to whom the 
77.8 	commissioner has delegated functions under this chapter.
77.9 	(2) "Federal gross estate" means the gross estate of a decedent as required to be valued 
77.10 	and otherwise determined for federal estate tax purposes under the Internal Revenue Code, 
77.11 	increased by the value of any property in which the decedent had a qualifying income interest 
77.12 	for life and for which an election was made under section 291.03, subdivision 1d, for 
77.13 	Minnesota estate tax purposes, but was not made for federal estate tax purposes.
77.14 	(3) "Internal Revenue Code" means the United States Internal Revenue Code of 1986, 
77.15 	as amended through December 31, 2014 2015.
77.16 	(4) "Minnesota gross estate" means the federal gross estate of a decedent after (a) 
77.17 	excluding therefrom any property included in the estate which has its situs outside Minnesota, 
77.18 	and (b) including any property omitted from the federal gross estate which is includable in 
77.19 	the estate, has its situs in Minnesota, and was not disclosed to federal taxing authorities.
77.20 	(5) "Nonresident decedent" means an individual whose domicile at the time of death 
77.21 	was not in Minnesota.
77.22 	(6) "Personal representative" means the executor, administrator or other person appointed 
77.23 	by the court to administer and dispose of the property of the decedent. If there is no executor, 
77.24 	administrator or other person appointed, qualified, and acting within this state, then any 
77.25 	person in actual or constructive possession of any property having a situs in this state which 
77.26 	is included in the federal gross estate of the decedent shall be deemed to be a personal 
77.27 	representative to the extent of the property and the Minnesota estate tax due with respect 
77.28 	to the property.
77.29 	(7) "Resident decedent" means an individual whose domicile at the time of death was 
77.30 	in Minnesota. The provisions of section 290.01, subdivision 7, paragraphs (c) and (d), apply 
77.31 	to determinations of domicile under this chapter.
77.32 	(8) "Situs of property" means, with respect to:
78.1 	(i) real property, the state or country in which it is located;
78.2 	(ii) tangible personal property, the state or country in which it was normally kept or 
78.3 	located at the time of the decedent's death or for a gift of tangible personal property within 
78.4 	three years of death, the state or country in which it was normally kept or located when the 
78.5 	gift was executed;
78.6 	(iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue 
78.7 	Code, owned by a nonresident decedent and that is normally kept or located in this state 
78.8 	because it is on loan to an organization, qualifying as exempt from taxation under section 
78.9 	501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is 
78.10 	deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and
78.11 	(iv) intangible personal property, the state or country in which the decedent was domiciled 
78.12 	at death or for a gift of intangible personal property within three years of death, the state or 
78.13 	country in which the decedent was domiciled when the gift was executed.
78.14 	For a nonresident decedent with an ownership interest in a pass-through entity with 
78.15 	assets that include real or tangible personal property, situs of the real or tangible personal 
78.16 	property, including qualified works of art, is determined as if the pass-through entity does 
78.17 	not exist and the real or tangible personal property is personally owned by the decedent. If 
78.18 	the pass-through entity is owned by a person or persons in addition to the decedent, ownership 
78.19 	of the property is attributed to the decedent in proportion to the decedent's capital ownership 
78.20 	share of the pass-through entity.
78.21 	(9) "Pass-through entity" includes the following:
78.22 	(i) an entity electing S corporation status under section 1362 of the Internal Revenue 
78.23 	Code;
78.24 	(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;
78.25 	(iii) a single-member limited liability company or similar entity, regardless of whether 
78.26 	it is taxed as an association or is disregarded for federal income tax purposes under Code 
78.27 	of Federal Regulations, title 26, section 301.7701-3; or
78.28 	(iv) a trust to the extent the property is includible in the decedent's federal gross estate; 
78.29 	but excludes
78.30 	(v) an entity whose ownership interest securities are traded on an exchange regulated 
78.31 	by the Securities and Exchange Commission as a national securities exchange under section 
78.32 	6 of the Securities Exchange Act, United States Code, title 15, section 78f.

79.1 	EFFECTIVE DATE. This section is effective retroactively for estates of decedents 
79.2 	dying after December 31, 2016.

79.3 	Sec. 32. Laws 2010, chapter 216, section 12, the effective date, as amended by Laws 2016, 
79.4 	chapter 158, article 1, section 212, is amended to read:

79.5 	EFFECTIVE DATE. This section is effective for investments made after July 1, 2010, 
79.6 	for taxable years beginning after December 31, 2009, and before January 1, 2017, and only 
79.7 	applies to investments made after the qualified small business receiving the investment has 
79.8 	been certified by the commissioner of employment and economic development.

79.9 	EFFECTIVE DATE; REVIVAL AND REENACTMENT. This section is effective 
79.10 	retroactively from January 1, 2015, and Laws 2010, chapter 216, section 12, the effective 
79.11 	date, as amended by Laws 2016, chapter 158, article 1, section 212, is revived and reenacted 
79.12 	as of that date.

79.13 	Sec. 33. AMENDED RETURNS.
 79.14 		Subdivision 1.Certain IRA rollovers. An individual who excludes an amount from 
79.15 	net income in a prior taxable year through rollover of an airline payment amount to a 
79.16 	traditional IRA, as authorized under Public Law 114-113, division Q, title III, section 307, 
79.17 	may file an amended individual income tax return and claim for refund of state taxes as 
79.18 	provided under Minnesota Statutes, section 289A.40, subdivision 1, or, if later, by April 1, 
79.19 	2017.
79.20 		Subd. 2.Exclusion for certain incarcerated individuals. An individual who excludes 
79.21 	from net income in a prior taxable year civil damages, restitution, or other monetary award 
79.22 	received as compensation for a wrongful incarceration, as authorized under Public Law 
79.23 	114-113, division Q, title III, section 304, may file an amended individual income tax return 
79.24 	and claim for refund of state taxes as provided under Minnesota Statutes, section 289A.40, 
79.25 	subdivision 1, or, if later, by April 1, 2017.

79.26 	EFFECTIVE DATE. This section is effective the day following final enactment.

79.27 	Sec. 34. ESTATE TAX REVIEW; TEMPORARY LIMIT ON ASSESSMENTS.
 79.28 	(a) The commissioner of revenue shall:
79.29 	(1) review the estate tax's definition of qualified farm property and its linkage to the 
79.30 	property tax classification of the property during the three-year period following the death 
79.31 	of the decedent; and
80.1 	(2) by August 1, 2017, report to the committees of the house of representatives and the 
80.2 	senate with jurisdiction over taxes on alternative methods of ensuring that the use of the 
80.3 	property by qualified heirs during the three-year period after the decedent's death is consistent 
80.4 	with the purpose of limiting the subtraction to properties where its use continues that of the 
80.5 	decedent without any material change in its use by the qualified heirs and its ownership is 
80.6 	consistent with maintaining family ownership of the farm.
80.7 	(b) Prior to June 1, 2017, the commissioner of revenue shall not assess recapture tax 
80.8 	under Minnesota Statutes, section 291.03, subdivision 11, for a change in the property tax 
80.9 	classification of agricultural homestead property if the following conditions are satisfied:
80.10 	(1) the property is held in a trust of which the surviving spouse is a beneficiary; and
80.11 	(2) the property receives partial homestead classification because a beneficiary of the 
80.12 	trust is the owner of another agricultural homestead.

80.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

80.14 	Sec. 35. INDIVIDUAL INCOME TAX COLLECTION ACTION PROHIBITED.
 80.15 	Notwithstanding any law to the contrary, the commissioner of revenue shall not increase 
80.16 	the amount due or decrease the refund for an individual income tax return for the taxable 
80.17 	year beginning after December 31, 2014, and before January 1, 2016, to the extent the 
80.18 	amount due was understated or the refund was overstated because the taxpayer calculated 
80.19 	the tax or refund based on the Internal Revenue Code, as amended through December 31, 
80.20 	2014, rather than based on the Internal Revenue Code, as amended through December 31, 
80.21 	2015, as provided in this act.

80.22 	EFFECTIVE DATE. This section is effective the day following final enactment.

80.23 	Sec. 36.  REPEALER.
 80.24 	Minnesota Statutes 2016, section 290.067, subdivisions 2 and 2a, are repealed.

80.25 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
80.26 	31, 2016.

80.27 	ARTICLE 4
80.28 	SALES AND USE TAXES

80.29 	Section 1. Minnesota Statutes 2016, section 128C.24, is amended to read:
80.30 	128C.24 LEAGUE FUNDS TRANSFER.
81.1 	Beginning July 1, 2007, the Minnesota State High School League shall annually determine 
81.2 	the sales tax savings attributable to section 297A.70, subdivision 11, paragraph (b), and 
81.3 	annually transfer that amount to a nonprofit charitable foundation created for the purpose 
81.4 	of promoting high school extracurricular activities. The funds must be used by the foundation 
81.5 	to make grants to fund, assist, recognize, or promote high school students' participation in 
81.6 	extracurricular activities. The first priority for funding will be grants for scholarships to 
81.7 	individuals to offset athletic fees. The foundation must equitably award grants based on 
81.8 	considerations of gender balance, school size, and geographic location, to the extent feasible.

81.9 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
81.10 	December 31, 2016.

81.11 	Sec. 2. Minnesota Statutes 2016, section 297A.61, subdivision 3, is amended to read:
81.12 		Subd. 3.Sale and purchase. (a) "Sale" and "purchase" include, but are not limited to, 
81.13 	each of the transactions listed in this subdivision. In applying the provisions of this chapter, 
81.14 	the terms "tangible personal property" and "retail sale" include the taxable services listed 
81.15 	in paragraph (g), clause (6), items (i) to (vi) and (viii), and the provision of these taxable 
81.16 	services, unless specifically provided otherwise. Services performed by an employee for 
81.17 	an employer are not taxable. Services performed by a partnership or association for another 
81.18 	partnership or association are not taxable if one of the entities owns or controls more than 
81.19 	80 percent of the voting power of the equity interest in the other entity. Services performed 
81.20 	between members of an affiliated group of corporations are not taxable. For purposes of 
81.21 	the preceding sentence, "affiliated group of corporations" means those entities that would 
81.22 	be classified as members of an affiliated group as defined under United States Code, title 
81.23 	26, section 1504, disregarding the exclusions in section 1504(b).
81.24 	(b) Sale and purchase include:
81.25 	(1) any transfer of title or possession, or both, of tangible personal property, whether 
81.26 	absolutely or conditionally, for a consideration in money or by exchange or barter; and
81.27 	(2) the leasing of or the granting of a license to use or consume, for a consideration in 
81.28 	money or by exchange or barter, tangible personal property, other than a manufactured 
81.29 	home used for residential purposes for a continuous period of 30 days or more.
81.30 	(c) Sale and purchase include the production, fabrication, printing, or processing of 
81.31 	tangible personal property for a consideration for consumers who furnish either directly or 
81.32 	indirectly the materials used in the production, fabrication, printing, or processing.
82.1 	(d) Sale and purchase include the preparing for a consideration of food. Notwithstanding 
82.2 	section 297A.67, subdivision 2, taxable food includes, but is not limited to, the following:
82.3 	(1) prepared food sold by the retailer;
82.4 	(2) soft drinks;
82.5 	(3) candy;
82.6 	(4) dietary supplements; and
82.7 	(5) all food sold through vending machines.
82.8 	(e) A sale and a purchase includes the furnishing for a consideration of electricity, gas, 
82.9 	water, or steam for use or consumption within this state.
82.10 	(f) A sale and a purchase includes the transfer for a consideration of prewritten computer 
82.11 	software whether delivered electronically, by load and leave, or otherwise.
82.12 	(g) A sale and a purchase includes the furnishing for a consideration of the following 
82.13 	services:
82.14 	(1) the privilege of admission to places of amusement, recreational areas, or athletic 
82.15 	events, and the making available of amusement devices, tanning facilities, reducing salons, 
82.16 	steam baths, health clubs, and spas or athletic facilities;
82.17 	(2) lodging and related services by a hotel, rooming house, resort, campground, motel, 
82.18 	or trailer camp, including furnishing the guest of the facility with access to telecommunication 
82.19 	services, and the granting of any similar license to use real property in a specific facility, 
82.20 	other than the renting or leasing of it for a continuous period of 30 days or more under an 
82.21 	enforceable written agreement that may not be terminated without prior notice and including 
82.22 	accommodations intermediary services provided in connection with other services provided 
82.23 	under this clause;
82.24 	(3) nonresidential parking services, whether on a contractual, hourly, or other periodic 
82.25 	basis, except for parking at a meter;
82.26 	(4) the granting of membership in a club, association, or other organization if:
82.27 	(i) the club, association, or other organization makes available for the use of its members 
82.28 	sports and athletic facilities, without regard to whether a separate charge is assessed for use 
82.29 	of the facilities; and
82.30 	(ii) use of the sports and athletic facility is not made available to the general public on 
82.31 	the same basis as it is made available to members.
83.1 	Granting of membership means both onetime initiation fees and periodic membership dues. 
83.2 	Sports and athletic facilities include golf courses; tennis, racquetball, handball, and squash 
83.3 	courts; basketball and volleyball facilities; running tracks; exercise equipment; swimming 
83.4 	pools; and other similar athletic or sports facilities;
83.5 	(5) delivery of aggregate materials by a third party, excluding delivery of aggregate 
83.6 	material used in road construction; and delivery of concrete block by a third party if the 
83.7 	delivery would be subject to the sales tax if provided by the seller of the concrete block. 
83.8 	For purposes of this clause, "road construction" means construction of:
83.9 	(i) public roads;
83.10 	(ii) cartways; and
83.11 	(iii) private roads in townships located outside of the seven-county metropolitan area 
83.12 	up to the point of the emergency response location sign; and
83.13 	(6) services as provided in this clause:
83.14 	(i) laundry and dry cleaning services including cleaning, pressing, repairing, altering, 
83.15 	and storing clothes, linen services and supply, cleaning and blocking hats, and carpet, 
83.16 	drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not 
83.17 	include services provided by coin operated facilities operated by the customer;
83.18 	(ii) motor vehicle washing, waxing, and cleaning services, including services provided 
83.19 	by coin operated facilities operated by the customer, and rustproofing, undercoating, and 
83.20 	towing of motor vehicles;
83.21 	(iii) building and residential cleaning, maintenance, and disinfecting services and pest 
83.22 	control and exterminating services;
83.23 	(iv) detective, security, burglar, fire alarm, and armored car services; but not including 
83.24 	services performed within the jurisdiction they serve by off-duty licensed peace officers as 
83.25 	defined in section 626.84, subdivision 1, or services provided by a nonprofit organization 
83.26 	or any organization at the direction of a county for monitoring and electronic surveillance 
83.27 	of persons placed on in-home detention pursuant to court order or under the direction of the 
83.28 	Minnesota Department of Corrections;
83.29 	(v) pet grooming services;
83.30 	(vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting 
83.31 	and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor plant 
83.32 	care; tree, bush, shrub, and stump removal, except when performed as part of a land clearing 
84.1 	contract as defined in section 297A.68, subdivision 40; and tree trimming for public utility 
84.2 	lines. Services performed under a construction contract for the installation of shrubbery, 
84.3 	plants, sod, trees, bushes, and similar items are not taxable;
84.4 	(vii) massages, except when provided by a licensed health care facility or professional 
84.5 	or upon written referral from a licensed health care facility or professional for treatment of 
84.6 	illness, injury, or disease; and
84.7 	(viii) the furnishing of lodging, board, and care services for animals in kennels and other 
84.8 	similar arrangements, but excluding veterinary and horse boarding services.
84.9 	(h) A sale and a purchase includes the furnishing for a consideration of tangible personal 
84.10 	property or taxable services by the United States or any of its agencies or instrumentalities, 
84.11 	or the state of Minnesota, its agencies, instrumentalities, or political subdivisions.
84.12 	(i) A sale and a purchase includes the furnishing for a consideration of 
84.13 	telecommunications services, ancillary services associated with telecommunication services, 
84.14 	and pay television services. Telecommunication services include, but are not limited to, the 
84.15 	following services, as defined in section 297A.669: air-to-ground radiotelephone service, 
84.16 	mobile telecommunication service, postpaid calling service, prepaid calling service, prepaid 
84.17 	wireless calling service, and private communication services. The services in this paragraph 
84.18 	are taxed to the extent allowed under federal law.
84.19 	(j) A sale and a purchase includes the furnishing for a consideration of installation if the 
84.20 	installation charges would be subject to the sales tax if the installation were provided by 
84.21 	the seller of the item being installed.
84.22 	(k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer to a 
84.23 	customer when (1) the vehicle is rented by the customer for a consideration, or (2) the motor 
84.24 	vehicle dealer is reimbursed pursuant to a service contract as defined in section 59B.02, 
84.25 	subdivision 11.
84.26 	(l) A sale and a purchase includes furnishing for a consideration of specified digital 
84.27 	products or other digital products or granting the right for a consideration to use specified 
84.28 	digital products or other digital products on a temporary or permanent basis and regardless 
84.29 	of whether the purchaser is required to make continued payments for such right. Wherever 
84.30 	the term "tangible personal property" is used in this chapter, other than in subdivisions 10 
84.31 	and 38, the provisions also apply to specified digital products, or other digital products, 
84.32 	unless specifically provided otherwise or the context indicates otherwise.
85.1 	(m) The sale of the privilege of admission under section 297A.61, subdivision 3, 
85.2 	paragraph (g), clause (1), to a place of amusement or athletic event includes all charges 
85.3 	included in the privilege of admission's sales price, without deduction for amenities that 
85.4 	may be provided, unless the amenities are separately stated and the purchaser of the privilege 
85.5 	of admission is entitled to add or decline the amenities, and the amenities are not otherwise 
85.6 	taxable.

85.7 	EFFECTIVE DATE. This section is effective the day following final enactment.

85.8 	Sec. 3. Minnesota Statutes 2016, section 297A.66, subdivision 1, is amended to read:
85.9 		Subdivision 1.Definitions. (a) To the extent allowed by the United States Constitution 
85.10 	and the laws of the United States, "retailer maintaining a place of business in this state," or 
85.11 	a similar term, means a retailer:
85.12 	(1) having or maintaining within this state, directly or by a subsidiary or an affiliate, an 
85.13 	office, place of distribution, sales, storage, or sample room or place, warehouse, or other 
85.14 	place of business, including the employment of a resident of this state who works from a 
85.15 	home office in this state; or
85.16 	(2) having a representative, including, but not limited to, an affiliate, agent, salesperson, 
85.17 	canvasser, or marketplace provider, solicitor, or other third party operating in this state 
85.18 	under the authority of the retailer or its subsidiary, for any purpose, including the repairing, 
85.19 	selling, delivering, installing, facilitating sales, processing sales, or soliciting of orders for 
85.20 	the retailer's goods or services, or the leasing of tangible personal property located in this 
85.21 	state, whether the place of business or agent, representative, affiliate, salesperson, canvasser, 
85.22 	or solicitor is located in the state permanently or temporarily, or whether or not the retailer, 
85.23 	subsidiary, or affiliate is authorized to do business in this state. A retailer is represented by 
85.24 	a marketplace provider in this state if the retailer makes sales in this state facilitated by a 
85.25 	marketplace provider that maintains a place of business in this state.
85.26 	(b) "Destination of a sale" means the location to which the retailer makes delivery of 
85.27 	the property sold, or causes the property to be delivered, to the purchaser of the property, 
85.28 	or to the agent or designee of the purchaser. The delivery may be made by any means, 
85.29 	including the United States Postal Service or a for-hire carrier.
85.30 	(c) "Marketplace provider" means any person who facilitates a retail sale by a retailer 
85.31 	by:
85.32 	(1) listing or advertising for sale by the retailer in any forum, tangible personal property, 
85.33 	services, or digital goods that are subject to tax under this chapter; and
86.1 	(2) either directly or indirectly through agreements or arrangements with third parties 
86.2 	collecting payment from the customer and transmitting that payment to the retailer regardless 
86.3 	of whether the marketplace provider receives compensation or other consideration in 
86.4 	exchange for its services.
86.5 	(d) "Total taxable retail sales" means the gross receipts from the sale of all tangible 
86.6 	goods, services, and digital goods subject to sales and use tax under this chapter.

86.7 	Sec. 4. Minnesota Statutes 2016, section 297A.66, subdivision 2, is amended to read:
86.8 		Subd. 2.Retailer maintaining place of business in this state. (a) Except as provided 
86.9 	in paragraph (b), a retailer maintaining a place of business in this state who makes retail 
86.10 	sales in Minnesota or to a destination in Minnesota shall collect sales and use taxes and 
86.11 	remit them to the commissioner under section 297A.77.
86.12 	(b) A retailer with total taxable retail sales to customers in this state of less than $10,000 
86.13 	in the 12-month period ending on the last day of the most recently completed calendar 
86.14 	quarter is not required to collect and remit sales tax if it is determined to be a retailer 
86.15 	maintaining a place of business in the state solely because it made sales through one or more 
86.16 	marketplace providers. The provisions of this paragraph do not apply to a retailer that is or 
86.17 	was registered to collect sales and use tax in this state.

86.18 	Sec. 5. Minnesota Statutes 2016, section 297A.66, subdivision 4, is amended to read:
86.19 		Subd. 4.Affiliated entities. (a) An entity is an "affiliate" of the retailer for purposes of 
86.20 	subdivision 1, paragraph (a), if the entity:
86.21 	(1) the entity uses its facilities or employees in this state to advertise, promote, or facilitate 
86.22 	the establishment or maintenance of a market for sales of items by the retailer to purchasers 
86.23 	in this state or for the provision of services to the retailer's purchasers in this state, such as 
86.24 	accepting returns of purchases for the retailer, providing assistance in resolving customer 
86.25 	complaints of the retailer, or providing other services; and
86.26 	(2) the retailer and the entity are related parties. has the same or a similar business name 
86.27 	to the retailer and sells, from a location or locations in this state, tangible personal property, 
86.28 	digital goods, or services, taxable under this chapter, that are similar to that sold by the 
86.29 	retailer;
86.30 	(3) maintains an office, distribution facility, salesroom, warehouse, storage place, or 
86.31 	other similar place of business in this state to facilitate the delivery of tangible personal 
86.32 	property, digital goods, or services sold by the retailer to its customers in this state;
87.1 	(4) maintains a place of business in this state and uses trademarks, service marks, or 
87.2 	trade names in this state that are the same or substantially similar to those used by the retailer, 
87.3 	and that use is done with the express or implied consent of the holder of the marks or names;
87.4 	(5) delivers, installs, or assembles tangible personal property in this state, or performs 
87.5 	maintenance or repair services on tangible personal property in this state, for tangible 
87.6 	personal property sold by the retailer;
87.7 	(6) facilitates the delivery of tangible personal property to customers of the retailer by 
87.8 	allowing the customers to pick up tangible personal property sold by the retailer at a place 
87.9 	of business the entity maintains in this state; or
87.10 	(7) shares management, business systems, business practices, or employees with the 
87.11 	retailer, or engages in intercompany transactions with the retailer related to the activities 
87.12 	that establish or maintain the market in this state of the retailer.
87.13 	(b) Two entities are related parties under this section if one of the entities meets at least 
87.14 	one of the following tests with respect to the other entity:
87.15 	(1) one or both entities is a corporation, and one entity and any party related to that entity 
87.16 	in a manner that would require an attribution of stock from the corporation to the party or 
87.17 	from the party to the corporation under the attribution rules of section 318 of the Internal 
87.18 	Revenue Code owns directly, indirectly, beneficially, or constructively at least 50 percent 
87.19 	of the value of the corporation's outstanding stock;
87.20 	(2) one or both entities is a partnership, estate, or trust and any partner or beneficiary, 
87.21 	and the partnership, estate, or trust and its partners or beneficiaries own directly, indirectly, 
87.22 	beneficially, or constructively, in the aggregate, at least 50 percent of the profits, capital, 
87.23 	stock, or value of the other entity or both entities; or
87.24 	(3) an individual stockholder and the members of the stockholder's family (as defined 
87.25 	in section 318 of the Internal Revenue Code) owns directly, indirectly, beneficially, or 
87.26 	constructively, in the aggregate, at least 50 percent of the value of both entities' outstanding 
87.27 	stock.;
87.28 	(4) the entities are related within the meaning of subsections (b) and (c) of section 267 
87.29 	or 707(b)(1) of the Internal Revenue Code; or
87.30 	(5) the entities have one or more ownership relationships and the relationships were 
87.31 	designed with a principal purpose of avoiding the application of this section.
88.1 	(c) An entity is an affiliate under the provisions of this subdivision if the requirements 
88.2 	of paragraphs (a) and (b) are met during any part of the 12-month period ending on the first 
88.3 	day of the month before the month in which the sale was made.

88.4 	Sec. 6. Minnesota Statutes 2016, section 297A.66, is amended by adding a subdivision to 
88.5 	read:
88.6 		Subd. 4b.Collection and remittance requirements for marketplace providers and 
88.7 	marketplace retailers. (a) A marketplace provider shall collect sales and use taxes and 
88.8 	remit them to the commissioner under section 297A.77 for all facilitated sales for a retailer, 
88.9 	and is subject to audit on the retail sales it facilitates unless either:
88.10 	(1) the retailer provides a copy of the retailer's registration to collect sales and use tax 
88.11 	in this state to the marketplace provider before the marketplace provider facilitates a sale; 
88.12 	or
88.13 	(2) upon inquiry by the marketplace provider or its agent, the commissioner discloses 
88.14 	that the retailer is registered to collect sales and use taxes in this state.
88.15 	(b) Nothing in this subdivision shall be construed to interfere with the ability of a 
88.16 	marketplace provider and a retailer to enter into an agreement regarding fulfillment of the 
88.17 	requirements of this chapter.
88.18 	(c) A marketplace provider is not liable under this subdivision for failure to file and 
88.19 	collect and remit sales and use taxes if the marketplace provider demonstrates that the error 
88.20 	was due to incorrect or insufficient information given to the marketplace provider by the 
88.21 	retailer. This paragraph does not apply if the marketplace provider and the marketplace 
88.22 	retailer are related as defined in subdivision 4, paragraph (b).

88.23 	Sec. 7. Minnesota Statutes 2016, section 297A.67, subdivision 7a, is amended to read:
88.24 		Subd. 7a.Accessories and supplies. Accessories and supplies required for the effective 
88.25 	use of durable medical equipment for home use only or purchased in a transaction covered 
88.26 	by Medicare or, Medicaid, or other health insurance plan, that are not already exempt under 
88.27 	subdivision 7, are exempt. Accessories and supplies for the effective use of a prosthetic 
88.28 	device, that are not already exempt under subdivision 7, are exempt. For purposes of this 
88.29 	subdivision "durable medical equipment," "prosthetic device," "Medicare," and "Medicaid" 
88.30 	have the definitions given in subdivision 7., and "other health insurance plan" means a 
88.31 	health plan defined in section 62A.011, subdivision 3, or 62V.02, subdivision 4, or a qualified 
88.32 	health plan defined in section 62A.011, subdivision 7.

89.1 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
89.2 	30, 2017.

89.3 	Sec. 8. Minnesota Statutes 2016, section 297A.67, is amended by adding a subdivision to 
89.4 	read:
89.5 		Subd. 34.Suite licenses. The sale of the privilege of admission under section 297A.61, 
89.6 	subdivision 3, paragraph (g), clause (1), to a place of amusement or athletic event does not 
89.7 	include consideration paid for a license to use a private suite, private skybox, or private box 
89.8 	seat provided that: (1) the lessee may use the private suite, private skybox, or private box 
89.9 	seat by mutual arrangement with the lessor on days when there is no amusement or athletic 
89.10 	event; and (2) the sales price for the privilege of admission is separately stated and is equal 
89.11 	to or greater than the highest priced general admission ticket for the closest seat not in the 
89.12 	private suite, private skybox, or private box seat.

89.13 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
89.14 	30, 2017.

89.15 	Sec. 9. Minnesota Statutes 2016, section 297A.67, is amended by adding a subdivision to 
89.16 	read:
89.17 		Subd. 35.Stadium builder's licenses. The sale of the privilege of admission under 
89.18 	section 297A.61, subdivision 3, paragraph (g), clause (1), does not include consideration 
89.19 	paid for a stadium builder's license authorized under section 473J.15, subdivision 14.

89.20 	EFFECTIVE DATE. This section is effective the day following final enactment.

89.21 	Sec. 10. Minnesota Statutes 2016, section 297A.68, subdivision 9, is amended to read:
89.22 		Subd. 9.Super Bowl admissions and related events. (a) The granting of the privilege 
89.23 	of admission to a world championship football game sponsored by the National Football 
89.24 	League is and to related events sponsored by the National Football League or its affiliates, 
89.25 	or the Minnesota Super Bowl Host Committee, are exempt.
89.26 	(b) The sale of nonresidential parking by the National Football League for attendance 
89.27 	at a world championship football game sponsored by the National Football League and for 
89.28 	related events sponsored by the National Football League or its affiliates, or the Minnesota 
89.29 	Super Bowl Host Committee, is exempt. Purchases of nonresidential parking services by 
89.30 	the Super Bowl Host Committee are purchases made exempt for retail.
89.31 	(c) For the purposes of this subdivision:
90.1 	(1) "related events sponsored by the National Football League or its affiliates" includes 
90.2 	but is not limited to preparatory advance visits, NFL Experience, NFL Tailgate, NFL On 
90.3 	Location, and NFL House; and
90.4 	(2) "affiliates" does not include National Football League teams.

90.5 	EFFECTIVE DATE. The amendments to this section are effective for sales and 
90.6 	purchases made after June 30, 2016, and before March 1, 2018.

90.7 	Sec. 11. Minnesota Statutes 2016, section 297A.70, subdivision 11, is amended to read:
90.8 		Subd. 11.School tickets or admissions. (a) Tickets or admissions to regular season 
90.9 	school games, events, and activities are exempt. For purposes of this subdivision, "school" 
90.10 	has the meaning given it in section 120A.22, subdivision 4.
90.11 	(b) Tickets or admissions to games, events, and activities sponsored by the Minnesota 
90.12 	State High School League under chapter 128C are exempt.

90.13 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
90.14 	December 31, 2016, but before January 1, 2022.

90.15 	Sec. 12. Minnesota Statutes 2016, section 297A.70, subdivision 14, is amended to read:
90.16 		Subd. 14.Fund-raising events sponsored by nonprofit groups. (a) Sales of tangible 
90.17 	personal property or services at, and admission charges for fund-raising events sponsored 
90.18 	by, a nonprofit organization are exempt if:
90.19 	(1) all gross receipts are recorded as such, in accordance with generally accepted 
90.20 	accounting practices, on the books of the nonprofit organization; and
90.21 	(2) the entire proceeds, less the necessary expenses for the event, will be used solely 
90.22 	and exclusively for charitable, religious, or educational purposes. Exempt sales include the 
90.23 	sale of prepared food, candy, and soft drinks at the fund-raising event.
90.24 	(b) This exemption is limited in the following manner:
90.25 	(1) it does not apply to admission charges for events involving bingo or other gambling 
90.26 	activities or to charges for use of amusement devices involving bingo or other gambling 
90.27 	activities;
90.28 	(2) all gross receipts are taxable if the profits are not used solely and exclusively for 
90.29 	charitable, religious, or educational purposes;
91.1 	(3) it does not apply unless the organization keeps a separate accounting record, including 
91.2 	receipts and disbursements from each fund-raising event that documents all deductions from 
91.3 	gross receipts with receipts and other records;
91.4 	(4) it does not apply to any sale made by or in the name of a nonprofit corporation as 
91.5 	the active or passive agent of a person that is not a nonprofit corporation;
91.6 	(5) all gross receipts are taxable if fund-raising events exceed 24 days per year;
91.7 	(6) it does not apply to fund-raising events conducted on premises leased for more than 
91.8 	five ten days but less than 30 days; and
91.9 	(7) it does not apply if the risk of the event is not borne by the nonprofit organization 
91.10 	and the benefit to the nonprofit organization is less than the total amount of the state and 
91.11 	local tax revenues forgone by this exemption.
91.12 	(c) For purposes of this subdivision, a "nonprofit organization" means any unit of 
91.13 	government, corporation, society, association, foundation, or institution organized and 
91.14 	operated for charitable, religious, educational, civic, fraternal, and senior citizens' or veterans' 
91.15 	purposes, no part of the net earnings of which inures to the benefit of a private individual.
91.16 	(d) For purposes of this subdivision, "fund-raising events" means activities of limited 
91.17 	duration, not regularly carried out in the normal course of business, that attract patrons for 
91.18 	community, social, and entertainment purposes, such as auctions, bake sales, ice cream 
91.19 	socials, block parties, carnivals, competitions, concerts, concession stands, craft sales, 
91.20 	bazaars, dinners, dances, door-to-door sales of merchandise, fairs, fashion shows, festivals, 
91.21 	galas, special event workshops, sporting activities such as marathons and tournaments, and 
91.22 	similar events. Fund-raising events do not include the operation of a regular place of business 
91.23 	in which services are provided or sales are made during regular hours such as bookstores, 
91.24 	thrift stores, gift shops, restaurants, ongoing Internet sales, regularly scheduled classes, or 
91.25 	other activities carried out in the normal course of business.

91.26 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
91.27 	December 31, 2016.

91.28 	Sec. 13. Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision 
91.29 	to read:
91.30 		Subd. 49.Siding production facility materials. Building materials and supplies used 
91.31 	or consumed in, and equipment incorporated into, the expansion or renovation of an existing 
91.32 	wood products facility to convert it into a siding production facility that can produce at least 
91.33 	400,000,000 square feet of siding per year, including private infrastructure, are exempt. The 
92.1 	tax must be imposed and collected as if the rate under section 297A.62, subdivision 1, 
92.2 	applied, and then refunded in the manner provided in section 297A.75. This provision does 
92.3 	not exempt equipment that qualifies for exemption under section 297A.68, subdivision 5.

92.4 	EFFECTIVE DATE. This section is effective for sales and purchases made after January 
92.5 	1, 2017, and before July 1, 2020.

92.6 	Sec. 14. Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision 
92.7 	to read:
92.8 		Subd. 50.Properties destroyed by fire. Building materials and supplies used in, and 
92.9 	equipment incorporated into, the construction or replacement of real property that is located 
92.10 	in Madelia affected by the fire on February 3, 2016, are exempt. The tax must be imposed 
92.11 	and collected as if the rate under section 297A.62, subdivision 1, applied and then refunded 
92.12 	in the manner provided in section 297A.75.

92.13 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
92.14 	30, 2016, and before July 1, 2018.

92.15 	Sec. 15. Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision 
92.16 	to read:
92.17 		Subd. 51.Former Duluth Central High School. Materials and supplies used in and 
92.18 	equipment incorporated into a private redevelopment project on the site of the former Duluth 
92.19 	Central High School are exempt, provided the resulting development is subject to property 
92.20 	taxes. The tax must be imposed and collected as if the rate under section 297A.62, subdivision 
92.21 	1, applied and then refunded in the manner provided in section 297A.75. The commissioner 
92.22 	must not pay more than $5,000,000 in refunds for purchases exempt under this section. 
92.23 	Refunds must be processed and issued in the order that complete and accurate applications 
92.24 	are received by the commissioner.

92.25 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
92.26 	30, 2016, and before January 1, 2018.

92.27 	Sec. 16. Minnesota Statutes 2016, section 297A.75, subdivision 1, is amended to read:
92.28 		Subdivision 1.Tax collected. The tax on the gross receipts from the sale of the following 
92.29 	exempt items must be imposed and collected as if the sale were taxable and the rate under 
92.30 	section 297A.62, subdivision 1, applied. The exempt items include:
93.1 	(1) building materials for an agricultural processing facility exempt under section 
93.2 	297A.71, subdivision 13;
93.3 	(2) building materials for mineral production facilities exempt under section 297A.71, 
93.4 	subdivision 14;
93.5 	(3) building materials for correctional facilities under section 297A.71, subdivision 3;
93.6 	(4) building materials used in a residence for disabled veterans exempt under section 
93.7 	297A.71, subdivision 11;
93.8 	(5) elevators and building materials exempt under section 297A.71, subdivision 12;
93.9 	(6) materials and supplies for qualified low-income housing under section 297A.71, 
93.10 	subdivision 23;
93.11 	(7) materials, supplies, and equipment for municipal electric utility facilities under 
93.12 	section 297A.71, subdivision 35;
93.13 	(8) equipment and materials used for the generation, transmission, and distribution of 
93.14 	electrical energy and an aerial camera package exempt under section 297A.68, subdivision 
93.15 	37;
93.16 	(9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph 
93.17 	(a), clause (10);
93.18 	(10) materials, supplies, and equipment for construction or improvement of projects and 
93.19 	facilities under section 297A.71, subdivision 40;
93.20 	(11) materials, supplies, and equipment for construction, improvement, or expansion 
93.21 	of:
93.22 	(i) an aerospace defense manufacturing facility exempt under section 297A.71, 
93.23 	subdivision 42;
93.24 	(ii) a biopharmaceutical manufacturing facility exempt under section 297A.71, subdivision 
93.25 	45;
93.26 	(iii) a research and development facility exempt under section 297A.71, subdivision 46; 
93.27 	and
93.28 	(iv) an industrial measurement manufacturing and controls facility exempt under section 
93.29 	297A.71, subdivision 47;
93.30 	(12) enterprise information technology equipment and computer software for use in a 
93.31 	qualified data center exempt under section 297A.68, subdivision 42;
94.1 	(13) materials, supplies, and equipment for qualifying capital projects under section 
94.2 	297A.71, subdivision 44;
94.3 	(14) items purchased for use in providing critical access dental services exempt under 
94.4 	section 297A.70, subdivision 7, paragraph (c); and
94.5 	(15) items and services purchased under a business subsidy agreement for use or 
94.6 	consumption primarily in greater Minnesota exempt under section 297A.68, subdivision 
94.7 	44;
94.8 	(16) building materials and supplies, equipment incorporated into, and private 
94.9 	infrastructure for conversion of a wood products facility into a siding facility exempt under 
94.10 	section 291A.71, subdivision 49;
94.11 	(17) building materials, equipment, and supplies for constructing or replacing real 
94.12 	property exempt under section 297A.71, subdivision 50; and
94.13 	(18) materials and supplies used in and equipment incorporated into a private 
94.14 	redevelopment project exempt under section 297A.71, subdivision 51.

94.15 	EFFECTIVE DATE. Clause (16) is effective for sales and purchases made after January 
94.16 	1, 2017, and before July 1, 2020. Clause (17) is effective for sales and purchases made after 
94.17 	June 30, 2016, and before July 1, 2018. Clause (18) is effective for sales and purchases 
94.18 	made after June 30, 2016, and before January 1, 2018.

94.19 	Sec. 17. Minnesota Statutes 2016, section 297A.75, subdivision 2, is amended to read:
94.20 		Subd. 2.Refund; eligible persons. Upon application on forms prescribed by the 
94.21 	commissioner, a refund equal to the tax paid on the gross receipts of the exempt items must 
94.22 	be paid to the applicant. Only the following persons may apply for the refund:
94.23 	(1) for subdivision 1, clauses (1), (2), and (14), the applicant must be the purchaser;
94.24 	(2) for subdivision 1, clause (3), the applicant must be the governmental subdivision;
94.25 	(3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits 
94.26 	provided in United States Code, title 38, chapter 21;
94.27 	(4) for subdivision 1, clause (5), the applicant must be the owner of the homestead 
94.28 	property;
94.29 	(5) for subdivision 1, clause (6), the owner of the qualified low-income housing project;
94.30 	(6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or a 
94.31 	joint venture of municipal electric utilities;
95.1 	(7) for subdivision 1, clauses (8), (11), (12), and (15), and (16), the owner of the 
95.2 	qualifying business; and
95.3 	(8) for subdivision 1, clauses (9), (10), and (13), the applicant must be the governmental 
95.4 	entity that owns or contracts for the project or facility; and
95.5 	(9) for subdivision 1, clauses (17) and (18), the applicant must be the owner or developer 
95.6 	of the building or project.

95.7 	EFFECTIVE DATE. The change to clause (7) is effective for sales and purchases made 
95.8 	after June 30, 2016. Clause (9) is effective for sales and purchases made after June 30, 2016, 
95.9 	and before July 1, 2018, as it pertains to Minnesota Statutes, section 297A.71, subdivision 
95.10 	1, clause (17), and for sales and purchases made after June 30, 2016, and before January 1, 
95.11 	2018, as it pertains to Minnesota Statutes, section 297A.71, subdivision 1, clause (18).

95.12 	Sec. 18. Minnesota Statutes 2016, section 297A.75, subdivision 3, is amended to read:
95.13 		Subd. 3.Application. (a) The application must include sufficient information to permit 
95.14 	the commissioner to verify the tax paid. If the tax was paid by a contractor, subcontractor, 
95.15 	or builder, under subdivision 1, clauses (3) to (13), or (15),to (18), the contractor, 
95.16 	subcontractor, or builder must furnish to the refund applicant a statement including the cost 
95.17 	of the exempt items and the taxes paid on the items unless otherwise specifically provided 
95.18 	by this subdivision. The provisions of sections 289A.40 and 289A.50 apply to refunds under 
95.19 	this section.
95.20 	(b) An applicant may not file more than two applications per calendar year for refunds 
95.21 	for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.

95.22 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
95.23 	30, 2016.

95.24 	Sec. 19. Minnesota Statutes 2016, section 297A.815, subdivision 3, is amended to read:
95.25 		Subd. 3.Motor vehicle lease sales tax revenue. (a) For purposes of this subdivision, 
95.26 	"net revenue" means an amount equal to the revenues, including interest and penalties, 
95.27 	collected under this section, during the fiscal year; less $32,000,000 in each fiscal year.
95.28 	(b) On or before June 30 of each fiscal year, the commissioner of revenue shall estimate 
95.29 	the amount of the net revenue for the current fiscal year.
96.1 	(c) On or after July 1 of the subsequent fiscal year, the commissioner of management 
96.2 	and budget shall transfer the net revenue as estimated in paragraph (b) from the general 
96.3 	fund, as follows:
96.4 	(1) $9,000,000 annually until January 1, 2015, and 50 percent annually thereafter to the 
96.5 	county state-aid highway fund. Notwithstanding any other law to the contrary, the 
96.6 	commissioner of transportation shall allocate the funds transferred under this clause to the 
96.7 	counties in the metropolitan area, as defined in section 473.121, subdivision 4, excluding 
96.8 	the counties of Hennepin and Ramsey, so that each county shall receive of such amount the 
96.9 	percentage that its population, as defined in section 477A.011, subdivision 3, estimated or 
96.10 	established by July 15 of the year prior to the current calendar year, bears to the total 
96.11 	population of the counties receiving funds under this clause; and
96.12 	(2) the remainder to the greater Minnesota transit account.
96.13 	(d) The revenues deposited under this subdivision do not include the revenues, including 
96.14 	interest and penalties, generated by the sales tax imposed under section 297A.62, subdivision 
96.15 	1a, which must be deposited as provided under the Minnesota Constitution, article XI, 
96.16 	section 15.

96.17 	EFFECTIVE DATE. This section is effective the day following final enactment.

96.18 	Sec. 20. Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991, 
96.19 	chapter 291, article 8, section 22, Laws 1998, chapter 389, article 8, section 25, Laws 2003, 
96.20 	First Special Session chapter 21, article 8, section 11, Laws 2008, chapter 154, article 5, 
96.21 	section 2, and Laws 2014, chapter 308, article 3, section 21, is amended to read:
96.22 		Subd. 2. (a) Notwithstanding Minnesota Statutes, section 477A.016, or any other law, 
96.23 	ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance, 
96.24 	impose an additional sales tax of up to one and three-quarter percent on sales transactions 
96.25 	which are described in Minnesota Statutes 2000, section 297A.01, subdivision 3, clause (c). 
96.26 	The imposition of this tax shall not be subject to voter referendum under either state law or 
96.27 	city charter provisions. When the city council determines that the taxes imposed under this 
96.28 	paragraph at a rate of three-quarters of one percent and other sources of revenue produce 
96.29 	revenue sufficient to pay debt service on bonds in the principal amount of $40,285,000 plus 
96.30 	issuance and discount costs, issued for capital improvements at the Duluth Entertainment 
96.31 	and Convention Center, which include a new arena, the rate of tax under this subdivision 
96.32 	must be reduced by three-quarters of one percent.
97.1 	(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, section 
97.2 	477A.016, or any other law, ordinance, or city charter provision to the contrary, the city of 
97.3 	Duluth may, by ordinance, impose an additional sales tax of up to one-half of one percent 
97.4 	on sales transactions which are described in Minnesota Statutes 2000, section 297A.01, 
97.5 	subdivision 3, clause (c). This tax expires when the city council determines that the tax 
97.6 	imposed under this paragraph, along with the tax imposed under section 22, paragraph (b), 
97.7 	has produced revenues sufficient to pay the debt service on bonds in a principal amount of 
97.8 	no more than $18,000,000, plus issuance and discount costs, to finance capital improvements 
97.9 	to public facilities to support tourism and recreational activities in that portion of the city 
97.10 	west of 34th 14th Avenue West and the area south of and including Skyline Parkway.
97.11 	(c) The city of Duluth may sell and issue up to $18,000,000 in general obligation bonds 
97.12 	under Minnesota Statutes, chapter 475, plus an additional amount to pay for the costs of 
97.13 	issuance and any premiums. The proceeds may be used to finance capital improvements to 
97.14 	public facilities that support tourism and recreational activities in the portion of the city 
97.15 	west of 34th 14th Avenue West and the area south of and including Skyline Parkway, as 
97.16 	described in paragraph (b). The issuance of the bonds is subject to the provisions of 
97.17 	Minnesota Statutes, chapter 475, except no election shall be required unless required by the 
97.18 	city charter. The bonds shall not be included in computing net debt. The revenues from the 
97.19 	taxes that the city of Duluth may impose under paragraph (b) and under section 22, paragraph 
97.20 	(b), may be pledged to pay principal of and interest on such bonds.

97.21 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
97.22 	city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
97.23 	subdivisions 2 and 3.

97.24 	Sec. 21. Laws 1980, chapter 511, section 2, as amended by Laws 1998, chapter 389, article 
97.25 	8, section 26, Laws 2003, First Special Session chapter 21, article 8, section 12, and Laws 
97.26 	2014, chapter 308, article 3, section 22, is amended to read:
97.27 	Sec. 22. CITY OF DULUTH; TAX ON RECEIPTS BY HOTELS AND MOTELS.
 97.28 	(a) Notwithstanding Minnesota Statutes, section 477A.016, or any other law, or ordinance, 
97.29 	or city charter provision to the contrary, the city of Duluth may, by ordinance, impose an 
97.30 	additional tax of one percent upon the gross receipts from the sale of lodging for periods of 
97.31 	less than 30 days in hotels and motels located in the city. The tax shall be collected in the 
97.32 	same manner as the tax set forth in the Duluth city charter, section 54(d), paragraph one. 
97.33 	The imposition of this tax shall not be subject to voter referendum under either state law or 
97.34 	city charter provisions.
98.1 	(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, section 
98.2 	477A.016, or any other law, ordinance, or city charter provision to the contrary, the city of 
98.3 	Duluth may, by ordinance, impose an additional sales tax of up to one-half of one percent 
98.4 	on the gross receipts from the sale of lodging for periods of less than 30 days in hotels and 
98.5 	motels located in the city. This tax expires when the city council first determines that the 
98.6 	tax imposed under this paragraph, along with the tax imposed under section 21, paragraph 
98.7 	(b), has produced revenues sufficient to pay the debt service on bonds in a principal amount 
98.8 	of no more than $18,000,000, plus issuance and discount costs, to finance capital 
98.9 	improvements to public facilities to support tourism and recreational activities in that portion 
98.10 	of the city west of 34th 14th Avenue West and the area south of and including Skyline 
98.11 	Parkway.

98.12 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
98.13 	city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
98.14 	subdivisions 2 and 3.

98.15 	Sec. 22. Laws 1991, chapter 291, article 8, section 27, subdivision 3, as amended by Laws 
98.16 	1998, chapter 389, article 8, section 28, Laws 2008, chapter 366, article 7, section 9, and 
98.17 	Laws 2009, chapter 88, article 4, section 14, is amended to read:
98.18 		Subd. 3. Use of revenues. (a) Revenues received from taxes authorized by subdivisions 
98.19 	1 and 2 shall be used by the city to pay the cost of collecting the tax and to pay all or a 
98.20 	portion of the expenses of constructing and improving facilities as part of an urban 
98.21 	revitalization project in downtown Mankato known as Riverfront 2000. Authorized expenses 
98.22 	include, but are not limited to, acquiring property and paying relocation expenses related 
98.23 	to the development of Riverfront 2000 and related facilities, and securing or paying debt 
98.24 	service on bonds or other obligations issued to finance the construction of Riverfront 2000 
98.25 	and related facilities. For purposes of this section, "Riverfront 2000 and related facilities" 
98.26 	means a civic-convention center, an arena, a riverfront park, a technology center and related 
98.27 	educational facilities, and all publicly owned real or personal property that the governing 
98.28 	body of the city determines will be necessary to facilitate the use of these facilities, including 
98.29 	but not limited to parking, skyways, pedestrian bridges, lighting, and landscaping. It also 
98.30 	includes the performing arts theatre and the Southern Minnesota Women's Hockey Exposition 
98.31 	Center, for use by Minnesota State University, Mankato.
98.32 	(b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and as approved 
98.33 	by voters at the November 8, 2016, general election, the city may by ordinance also use 
98.34 	revenues from taxes authorized under subdivisions 1 and 2, up to a maximum of $47,000,000, 
99.1 	plus associated bond costs, to pay all or a portion of the expenses of the following capital 
99.2 	projects:
99.3 	(1) construction and improvements to regional recreational facilities including existing 
99.4 	hockey and curling rinks, a baseball park, youth athletic fields and facilities, the municipal 
99.5 	swimming pool including improvements to make the pool compliant with the Americans 
99.6 	with Disabilities Act, and indoor regional athletic facilities;
99.7 	(2) improvements to flood control and the levee system;
99.8 	(3) water quality improvement projects in Blue Earth and Nicollet Counties;
99.9 	(4) expansion of the regional transit building and related multimodal transit 
99.10 	improvements;
99.11 	(5) regional public safety and emergency communications improvements and equipment; 
99.12 	and
99.13 	(6) matching funds for improvements to publicly owned regional facilities including a 
99.14 	historic museum, supportive housing, and a senior center.

99.15 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
99.16 	city of Mankato and its chief clerical officer comply with Minnesota Statutes, section 
99.17 	645.021, subdivisions 2 and 3.

99.18 	Sec. 23. Laws 1991, chapter 291, article 8, section 27, subdivision 4, as amended by Laws 
99.19 	2005, First Special Session chapter 3, article 5, section 25, and Laws 2008, chapter 366, 
99.20 	article 7, section 10, is amended to read:
99.21 		Subd. 4. Expiration of taxing authority and expenditure limitation. The authority 
99.22 	granted by subdivisions 1 and 2 to the city to impose a sales tax and an excise tax shall 
99.23 	expire on at the earlier of when revenues are sufficient to pay off the bonds, including 
99.24 	interest and all other associated bond costs authorized under subdivision 5, or  December 
99.25 	31, 2022 2038.

99.26 	EFFECTIVE DATE. This section is effective the day following final enactment without 
99.27 	local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.

99.28 	Sec. 24. Laws 1991, chapter 291, article 8, section 27, subdivision 5, is amended to read:
99.29 		Subd. 5.Bonds. (a) The city of Mankato may issue general obligation bonds of the city 
99.30 	in an amount not to exceed $25,000,000 for Riverfront 2000 and related facilities, without 
99.31 	election under Minnesota Statutes, chapter 475, on the question of issuance of the bonds or 
100.1 	a tax to pay them. The debt represented by bonds issued for Riverfront 2000 and related 
100.2 	facilities shall not be included in computing any debt limitations applicable to the city of 
100.3 	Mankato, and the levy of taxes required by section 475.61 to pay principal of and interest 
100.4 	on the bonds shall not be subject to any levy limitation or be included in computing or 
100.5 	applying any levy limitation applicable to the city.
100.6 	(b) The city of Mankato may issue general obligation bonds of the city in an amount not 
100.7 	to exceed $47,000,000 for the projects listed under subdivision 3, paragraph (b), without 
100.8 	election under Minnesota Statutes, chapter 475, on the question of issuance of the bonds or 
100.9 	a tax to pay them. The debt represented by bonds under this paragraph shall not be included 
100.10 	in computing any debt limitations applicable to the city of Mankato, and the levy of taxes 
100.11 	required by Minnesota Statutes, section 475.61, to pay principal of and interest on the bonds, 
100.12 	and shall not be subject to any levy limitation or be included in computing or applying any 
100.13 	levy limitation applicable to the city. The city may use tax revenue in excess of one year's 
100.14 	principal interest reserve for intended annual bond payments to pay all or a portion of the 
100.15 	cost of capital improvements authorized in subdivision 3.

100.16 	EFFECTIVE DATE. This section is effective the day following final enactment without 
100.17 	local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.

100.18 	Sec. 25. Laws 1996, chapter 471, article 2, section 29, subdivision 1, as amended by Laws 
100.19 	2006, chapter 259, article 3, section 3, and Laws 2011, First Special Session chapter 7, 
100.20 	article 4, section 4, is amended to read:
100.21 		Subdivision 1.Sales tax authorized. (a) Notwithstanding Minnesota Statutes, section 
100.22 	477A.016, or any other contrary provision of law, ordinance, or city charter, the city of 
100.23 	Hermantown may, by ordinance, impose an additional sales tax of up to one percent on 
100.24 	sales transactions taxable pursuant to Minnesota Statutes, chapter 297A, that occur within 
100.25 	the city. The proceeds of the tax imposed under this section must be used to pay the cost of 
100.26 	collection of the tax and to meet the costs, including principal, interest, and premiums of 
100.27 	bonds used in the finance  of:
100.28 	(1) extending a sewer interceptor line;
100.29 	(2) construction of a booster pump station, reservoirs, and related improvements to the 
100.30 	water system; and
100.31 	(3) construction of a building containing a police and fire station and an administrative 
100.32 	services facility; and
100.33 	(4) construction and equipping of a regional, multiuse wellness center.
101.1 	(b) If the city imposed a sales tax of only one-half of one percent under paragraph (a), 
101.2 	it may increase the tax to one percent to fund the purposes under paragraph (a) provided it 
101.3 	is approved by the voters at a general election held before December 31, 2012.
101.4 	(c) Revenue raised from the tax imposed under this subdivision in every year must first 
101.5 	be used to meet obligations in that year related to the projects in paragraph (a), clauses (1) 
101.6 	to (3), with excess revenues available to fund the projects in paragraph (a), clause (4).

101.7 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
101.8 	city of Hermantown and its chief clerical officer comply with Minnesota Statutes, section 
101.9 	645.021, subdivisions 2 and 3.

101.10 	Sec. 26. Laws 1996, chapter 471, article 2, section 29, subdivision 4, as amended by Laws 
101.11 	2006, chapter 259, article 3, section 4, is amended to read:
101.12 		Subd. 4.Termination. The tax authorized under this section terminates on March 31, 
101.13 	2026 at the earlier of (1) December 31, 2036, or (2) when the Hermantown City Council 
101.14 	first determines that sufficient funds have been received from the tax to fund the costs, 
101.15 	including bonds and associated bond costs for the uses specified in subdivision 1, paragraph 
101.16 	(a). Any funds remaining after completion of the improvements and retirement or redemption 
101.17 	of the bonds may be placed in the general fund of the city.

101.18 	EFFECTIVE DATE. This section is effective the day following final enactment without 
101.19 	local approval pursuant to Minnesota Statutes, section 645.023, subdivision 1.

101.20 	Sec. 27. Laws 1999, chapter 243, article 4, section 18, subdivision 1, as amended by Laws 
101.21 	2008, chapter 366, article 7, section 12, is amended to read:
101.22 		Subdivision 1.Sales and use tax. (a) Notwithstanding Minnesota Statutes, section 
101.23 	477A.016, or any other provision of law, ordinance, or city charter, if approved by the city 
101.24 	voters at the first municipal general election held after the date of final enactment of this 
101.25 	act or at a special election held November 2, 1999, the city of Proctor may impose by 
101.26 	ordinance a sales and use tax of up to one-half of one percent for the purposes specified in 
101.27 	subdivision 3. The provisions of Minnesota Statutes, section 297A.99, govern the imposition, 
101.28 	administration, collection, and enforcement of the tax authorized under this subdivision.
101.29 	(b) Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of 
101.30 	law, ordinance, or city charter, the city of Proctor may impose by ordinance an additional 
101.31 	sales and use tax of up to one-half of one percent as approved by the voters at the November 
102.1 	4, 2014, general election. The revenues received from the additional tax must be used for 
102.2 	the purposes specified in subdivision 3, paragraph (b).

102.3 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
102.4 	city of Proctor and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
102.5 	subdivisions 2 and 3, but only if the local approval requirement under section 10 is also 
102.6 	met.

102.7 	Sec. 28. Laws 2008, chapter 366, article 7, section 20, is amended to read:
102.8 	Sec. 20. CITY OF NORTH MANKATO; TAXES AUTHORIZED.
 102.9 		Subdivision 1.Sales and use tax authorized. Notwithstanding Minnesota Statutes, 
102.10 	section 477A.016, or any other provision of law, ordinance, or city charter, pursuant to the 
102.11 	approval of the voters on November 7, 2006, the city of North Mankato may impose by 
102.12 	ordinance a sales and use tax of one-half of one percent for the purposes specified in 
102.13 	subdivision 2. The provisions of Minnesota Statutes, section 297A.99, govern the imposition, 
102.14 	administration, collection, and enforcement of the taxes authorized under this subdivision.
102.15 		Subd. 2.Use of revenues. Revenues received from the tax authorized by subdivision 1 
102.16 	must be used to pay all or part of the capital costs of the following projects:
102.17 	(1) the local share of the Trunk Highway 14/County State-Aid Highway 41 interchange 
102.18 	project;
102.19 	(2) development of regional parks and hiking and biking trails, including construction 
102.20 	of indoor regional athletic facilities;
102.21 	(3) expansion of the North Mankato Taylor Library;
102.22 	(4) riverfront redevelopment; and
102.23 	(5) lake improvement projects.
102.24 	The total amount of revenues from the tax in subdivision 1 that may be used to fund 
102.25 	these projects is $6,000,000 $15,000,000 plus any associated bond costs.
102.26 		Subd. 2a.Authorization to extend the tax. Notwithstanding Minnesota Statutes, section 
102.27 	297A.99, subdivision 3, the North Mankato city council may, by resolution, extend the tax 
102.28 	authorized under subdivision 1 to cover an additional $15,000,000 in bonds, plus associated 
102.29 	bond costs, to fund the projects in subdivision 2 as approved by the voters at the November 
102.30 	8, 2016, general election.
103.1 		Subd. 3.Bonds. (a) The city of North Mankato, pursuant to the approval of the voters 
103.2 	at the November 7, 2006 referendum authorizing the imposition of the taxes in this section, 
103.3 	may issue bonds under Minnesota Statutes, chapter 475, to pay capital and administrative 
103.4 	expenses for the projects described in subdivision 2, in an amount that does not exceed 
103.5 	$6,000,000. A separate election to approve the bonds under Minnesota Statutes, section 
103.6 	475.58, is not required.
103.7 	(b) The city of North Mankato, pursuant to approval of the voters at the November 8, 
103.8 	2016, referendum extending the tax fee to provide additional revenue to be spent for the 
103.9 	projects in subdivision 2, may issue additional bonds under Minnesota Statutes, chapter 
103.10 	475, to pay capital and administrative expenses for those projects in an amount that does 
103.11 	not exceed $15,000,000. A separate election to approve the bonds under Minnesota Statutes, 
103.12 	section 475.58, is not required.
103.13 	(b) (c) The debt represented by the bonds is not included in computing any debt limitation 
103.14 	applicable to the city, and any levy of taxes under Minnesota Statutes, section 475.61, to 
103.15 	pay principal and interest on the bonds is not subject to any levy limitation.
103.16 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires when the 
103.17 	city council determines that the amount of revenues received from the taxes to pay for the 
103.18 	projects under subdivision 2 first equals or exceeds $6,000,000 plus the additional amount 
103.19 	needed to pay the costs related to issuance of bonds under subdivision 3, including interest 
103.20 	on the bonds at the earlier of December 31, 2038, or when revenues from the taxes first 
103.21 	equal or exceed $21,000,000 plus the additional amount needed to pay costs related to 
103.22 	issuance of bonds under subdivision 3, including interest. Any funds remaining after 
103.23 	completion of the projects and retirement or redemption of the bonds shall be placed in a 
103.24 	capital facilities and equipment replacement fund of the city. The tax imposed under 
103.25 	subdivision 1 may expire at an earlier time if the city so determines by ordinance.

103.26 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
103.27 	city of North Mankato and its chief clerical officer comply with Minnesota Statutes, section 
103.28 	645.021, subdivisions 2 and 3.

103.29 	Sec. 29. CITY OF EAST GRAND FORKS; TAXES AUTHORIZED.
 103.30 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
103.31 	section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city 
103.32 	charter, and as approved by the voters at a special election on March 7, 2016, the city of 
103.33 	East Grand Forks may impose, by ordinance, a sales and use tax of up to one percent for 
103.34 	the purposes specified in subdivision 2. Except as otherwise provided in this section, the 
104.1 	provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
104.2 	collection, and enforcement of the tax authorized under this subdivision.
104.3 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
104.4 	under subdivision 1 must be used by the city of East Grand Forks to pay the costs of 
104.5 	collecting and administering the tax and to finance the capital and administrative costs of 
104.6 	improvement to the city public swimming pool. Authorized expenses include, but are not 
104.7 	limited to, paying construction expenses related to the renovation and the development of 
104.8 	these facilities and improvements, and securing and paying debt service on bonds issued 
104.9 	under subdivision 3 or other obligations issued to finance improvement of the public 
104.10 	swimming pool in the city of East Grand Forks
104.11 		Subd. 3.Bonding authority. (a) The city of East Grand Forks may issue bonds under 
104.12 	Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities 
104.13 	authorized in subdivision 2. The aggregate principal amount of bonds issued under this 
104.14 	subdivision may not exceed $2,820,000, plus an amount to be applied to the payment of 
104.15 	the costs of issuing the bonds. The bonds may be paid from or secured by any funds available 
104.16 	to the city of East Grand Forks, including the tax authorized under subdivision 1. The 
104.17 	issuance of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 
104.18 	and 275.61.
104.19 	(b) The bonds are not included in computing any debt limitation applicable to the city 
104.20 	of East Grand Forks, and any levy of taxes under Minnesota Statutes, section 475.61, to 
104.21 	pay principal and interest on the bonds is not subject to any levy limitation. A separate 
104.22 	election to approve the bonds under Minnesota Statutes, section 475.58, is not required.
104.23 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the later 
104.24 	of: (1) five years after the tax is first imposed; or (2) when the city council determines that 
104.25 	$2,820,000 has been received from the tax to pay for the cost of the projects authorized 
104.26 	under subdivision 2, plus an amount sufficient to pay the costs related to issuance of the 
104.27 	bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining 
104.28 	after payment of all such costs and retirement or redemption of the bonds shall be placed 
104.29 	in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier 
104.30 	time if the city so determines by ordinance.

104.31 	EFFECTIVE DATE. This section is effective the day after compliance by the governing 
104.32 	body of the city of East Grand Forks with Minnesota Statutes, section 645.021, subdivisions 
104.33 	2 and 3.

105.1 	Sec. 30. CITY OF MARSHALL; VALIDATION OF PRIOR ACT.
 105.2 	(a) Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city of 
105.3 	Marshall may approve Laws 2011, First Special Session chapter 7, article 4, section 14, and 
105.4 	file its approval with the secretary of state by June 15, 2013. If approved as authorized under 
105.5 	this paragraph, actions undertaken by the city as approved by the voters on November 6, 
105.6 	2012, and otherwise in accordance with Laws 2011, First Special Session chapter 7, article 
105.7 	4, section 14, are validated.
105.8 	(b) Notwithstanding the time limit on the imposition of tax under Laws 2011, First 
105.9 	Special Session chapter 7, article 4, section 14, and subject to local approval under paragraph 
105.10 	(a), the city of Marshall may impose the tax on or before July 1, 2013.

105.11 	EFFECTIVE DATE. This section is effective the day following final enactment.

105.12 	Sec. 31. CERTAIN REIMBURSEMENT AUTHORIZED; CONSIDERED 
105.13 	OPERATING OR CAPITAL EXPENSES.
 105.14 		Subdivision 1.Reimbursement authorized. (a) An amount equivalent to the taxes paid 
105.15 	under Minnesota Statutes, chapter 297A, and any local taxes administered by the Department 
105.16 	of Revenue, on purchases of tangible personal property, nonresidential parking services, 
105.17 	and lodging, as these terms are defined in Minnesota Statutes, chapter 297A, used and 
105.18 	consumed in connection with Super Bowl LII or related events sponsored by the National 
105.19 	Football League or its affiliates, will be reimbursed by the Minnesota Sports Facilities 
105.20 	Authority up to $1,600,000, if made after June 30, 2016, and before March 1, 2018. Only 
105.21 	purchases made by the Minnesota Super Bowl Host Committee, the National Football 
105.22 	League or its affiliates, or their employees or independent contractors, qualify to be 
105.23 	reimbursed under this section.
105.24 	(b) For purposes of this subdivision:
105.25 	(1) "employee or independent contractor" means only those employees or independent 
105.26 	contractors that make qualifying purchases that are reimbursed by the Minnesota Super 
105.27 	Bowl Host Committee or the National Football League or its affiliates; and
105.28 	(2) "related events sponsored by the National Football League or its affiliates" includes 
105.29 	but is not limited to preparatory advance visits, NFL Experience, NFL Tailgate, NFL Honors, 
105.30 	and NFL House.
105.31 		Subd. 2.Operating reserve and capital reserve fund. Notwithstanding the requirements 
105.32 	of Minnesota Statutes, section 473J.13, subdivisions 2 and 4, up to $1,600,000 of the balance 
106.1 	in the operating reserve or capital reserve fund may be used for the purposes of paying 
106.2 	reimbursements authorized under subdivision 1.

106.3 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
106.4 	30, 2016, and before March 1, 2018.

106.5 	Sec. 32. SEVERABILITY.
 106.6 	If any provision of sections 3 to 6 or the application thereof is held invalid, such invalidity 
106.7 	shall not affect the provisions or applications of the sections that can be given effect without 
106.8 	the invalid provisions or applications.

106.9 	EFFECTIVE DATE. This section is effective the day following final enactment.

106.10 	Sec. 33. EFFECTIVE DATE.
 106.11 	(a) The provisions of sections 3 to 6 are effective at the earlier of:
106.12 	(1) a decision by the United States Supreme Court modifying its decision in Quill Corp. 
106.13 	v. North Dakota, 504 U.S. 298 (1992) so that a state may require retailers without a physical 
106.14 	presence in the state to collect and remit sales tax; or
106.15 	(2) July 1, 2020.
106.16 	(b) Notwithstanding paragraph (a) or the provisions of sections 3 to 6, if a federal law 
106.17 	is enacted authorizing a state to impose a requirement to collect and remit sales tax on 
106.18 	retailers without a physical presence in the state, the commissioner must enforce the 
106.19 	provisions of this section and sections 3 to 6 to the extent allowed under federal law.
106.20 	(c) The commissioner of revenue shall notify the revisor of statutes when either of the 
106.21 	provisions in paragraph (a) or (b) apply.

106.22 	ARTICLE 5
106.23 	SPECIAL TAXES

106.24 	Section 1. Minnesota Statutes 2016, section 296A.01, subdivision 12, is amended to read:
106.25 		Subd. 12.Compressed natural gas or CNG. "Compressed natural gas" or "CNG" 
106.26 	means natural gas, primarily methane, condensed under high pressure and stored in specially 
106.27 	designed storage tanks at between 2,000 and 3,600 pounds per square inch. For purposes 
106.28 	of this chapter, the energy content of CNG is considered to be 1,000 900 BTUs per cubic 
106.29 	foot.

107.1 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
107.2 	30, 2017.

107.3 	Sec. 2. Minnesota Statutes 2016, section 296A.01, is amended by adding a subdivision to 
107.4 	read:
107.5 		Subd. 13a.Dealer of gasoline used as a substitute for aviation gasoline. "Dealer of 
107.6 	gasoline used as a substitute for aviation gasoline" means any person who sells gasoline on 
107.7 	the premises of an airport as defined under section 360.013, subdivision 39, to be dispensed 
107.8 	directly into the fuel tank of an aircraft.

107.9 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
107.10 	30, 2017.

107.11 	Sec. 3. Minnesota Statutes 2016, section 296A.07, subdivision 4, is amended to read:
107.12 		Subd. 4.Exemptions. The provisions of subdivision 1 do not apply to gasoline or 
107.13 	denatured ethanol purchased by:
107.14 	(1) a transit system or transit provider receiving financial assistance or reimbursement 
107.15 	under section 174.24, 256B.0625, subdivision 17, or 473.384;
107.16 	(2) providers of transportation to recipients of medical assistance home and 
107.17 	community-based services waivers enrolled in day programs, including adult day care, 
107.18 	family adult day care, day treatment and habilitation, prevocational services, and structured 
107.19 	day services;
107.20 	(3) an ambulance service licensed under chapter 144E;
107.21 	(4) providers of medical or dental services by a federally qualified health center, as 
107.22 	defined under title 19 of the Social Security Act, as amended by Section 4161 of the Omnibus 
107.23 	Budget Reconciliation Act of 1990, with a motor vehicle used exclusively as a mobile 
107.24 	medical unit; or
107.25 	(5) a licensed distributor to be delivered to a terminal for use in blending; or
107.26 	(6) a dealer of gasoline used as a substitute for aviation gasoline.

107.27 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
107.28 	30, 2017.

107.29 	Sec. 4. Minnesota Statutes 2016, section 296A.08, subdivision 2, is amended to read:
107.30 		Subd. 2.Rate of tax. The special fuel excise tax is imposed at the following rates:
108.1 	(a) Liquefied petroleum gas or propane is taxed at the rate of 18.75 cents per gallon.
108.2 	(b) Liquefied natural gas is taxed at the rate of 15 cents per gallon.
108.3 	(c) Compressed natural gas is taxed at the rate of $2.174 $1.974 per thousand cubic feet; 
108.4 	or 25 cents per gasoline equivalent. For purposes of this paragraph, "gasoline equivalent," 
108.5 	as defined by the National Conference on Weights and Measures, is 5.66 pounds of natural 
108.6 	gas or 126.67 cubic feet.
108.7 	(d) All other special fuel is taxed at the same rate as the gasoline excise tax as specified 
108.8 	in section 296A.07, subdivision 2. The tax is payable in the form and manner prescribed 
108.9 	by the commissioner.

108.10 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
108.11 	30, 2017.

108.12 	Sec. 5. Minnesota Statutes 2016, section 296A.09, subdivision 1, is amended to read:
108.13 		Subdivision 1.Gasoline tax imposed. Subject to any refunds or credits there is imposed 
108.14 	an excise tax, at the rate of five cents per gallon on all aviation gasoline received, sold, 
108.15 	stored, or withdrawn from storage in this state and on all gasoline used as a substitute for 
108.16 	aviation gasoline. Aviation gasoline is defined in section 296A.01, subdivision 7.

108.17 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
108.18 	30, 2017.

108.19 	Sec. 6. Minnesota Statutes 2016, section 296A.09, subdivision 3, is amended to read:
108.20 		Subd. 3.Exception to tax for aviation use. The provisions of subdivisions 1 and 2 do 
108.21 	not apply to gasoline used as a substitute for aviation gasoline, aviation gasoline, or special 
108.22 	fuel purchased and placed in the fuel tanks of an aircraft outside the state, even though the 
108.23 	gasoline may be consumed within this state.

108.24 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
108.25 	30, 2017.

108.26 	Sec. 7. Minnesota Statutes 2016, section 296A.09, subdivision 5, is amended to read:
108.27 		Subd. 5.Tax not on consumption. The taxes imposed by subdivisions 1 and 2 are 
108.28 	expressly declared not to be a tax upon consumption of gasoline used as a substitute for 
108.29 	aviation gasoline, aviation gasoline, or special fuel by an aircraft.

109.1 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
109.2 	30, 2017.

109.3 	Sec. 8. Minnesota Statutes 2016, section 296A.09, subdivision 6, is amended to read:
109.4 		Subd. 6.Exemptions. The provisions of subdivisions 1 and 2 do not apply to gasoline 
109.5 	used as a substitute for aviation gasoline, aviation gasoline, or jet fuel purchased by an 
109.6 	ambulance service licensed under chapter 144E.

109.7 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
109.8 	30, 2017.

109.9 	Sec. 9. Minnesota Statutes 2016, section 296A.15, subdivision 1, is amended to read:
109.10 		Subdivision 1.Monthly gasoline report; shrinkage allowance. (a) Except as provided 
109.11 	in paragraph (e), on or before the 23rd day of each month, every person who is required to 
109.12 	pay a gasoline tax shall file with the commissioner a report, in the form and manner 
109.13 	prescribed by the commissioner, showing the number of gallons of petroleum products 
109.14 	received by the reporter during the preceding calendar month, and other information the 
109.15 	commissioner may require. A written report is deemed to have been filed as required in this 
109.16 	subdivision if postmarked on or before the 23rd day of the month in which the tax is payable.
109.17 	(b) The number of gallons of gasoline must be reported in United States standard liquid 
109.18 	gallons, 231 cubic inches, except that the commissioner may upon written application and 
109.19 	for cause shown permit the distributor to report the number of gallons of gasoline as corrected 
109.20 	to a temperature of 60-degrees Fahrenheit. If the application is granted, all gasoline covered 
109.21 	in the application and allowed by the commissioner must continue to be reported by the 
109.22 	distributor on the adjusted basis for a period of one year from the date of the granting of 
109.23 	the application. The number of gallons of petroleum products other than gasoline must be 
109.24 	reported as originally invoiced. Each report must show separately the number of gallons of 
109.25 	aviation gasoline received by the reporter during each calendar month and the number of 
109.26 	gallons of gasoline sold to a dealer of gasoline used as a substitute for aviation fuel during 
109.27 	each calendar month.
109.28 	(c) Each report must also include the amount of gasoline tax on gasoline received by 
109.29 	the reporter during the preceding month. In computing the tax a deduction of 2.5 percent 
109.30 	of the quantity of gasoline received by a distributor shall be made for evaporation and loss. 
109.31 	At the time of reporting, the reporter shall submit satisfactory evidence that one-third of the 
109.32 	2.5 percent deduction has been credited or paid to dealers on quantities sold to them.
110.1 	(d) Each report shall contain a confession of judgment for the amount of the tax shown 
110.2 	due to the extent not timely paid.
110.3 	(e) Under certain circumstances and with the approval of the commissioner, taxpayers 
110.4 	may be allowed to file reports annually.

110.5 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
110.6 	30, 2017.

110.7 	Sec. 10. Minnesota Statutes 2016, section 296A.15, subdivision 4, is amended to read:
110.8 		Subd. 4.Failure to use or sell for intended purpose; report required. (a) Any person 
110.9 	who buys gasoline from a dealer of gasoline used as a substitute for aviation gasoline, or 
110.10 	buys aviation gasoline or special fuel for aircraft use and who has paid the excise taxes due 
110.11 	directly or indirectly through the amount of the tax being included in the price, or otherwise, 
110.12 	and uses said gasoline or special fuel in motor vehicles or knowingly sells it to any person 
110.13 	for use in motor vehicles shall, on or before the 23rd day of the month following that in 
110.14 	which such gasoline or special fuel was so used or sold, report the fact of the use or sale to 
110.15 	the commissioner in the form and manner prescribed by the commissioner.
110.16 	(b) Any person who buys gasoline other than aviation gasoline and who has paid the 
110.17 	motor vehicle gasoline excise tax directly or indirectly through the amount of the tax being 
110.18 	included in the price of the gasoline, or otherwise, who knowingly sells such gasoline to 
110.19 	any person to be used for the purpose of producing or generating power for propelling 
110.20 	aircraft, or who receives, stores, or withdraws from storage gasoline to be used for that 
110.21 	purpose, shall, on or before the 23rd day of the month following that in which such gasoline 
110.22 	was so sold, stored, or withdrawn from storage, report the fact of the sale, storage, or 
110.23 	withdrawal from storage to the commissioner in the form and manner prescribed by the 
110.24 	commissioner.

110.25 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
110.26 	30, 2017.

110.27 	Sec. 11. Minnesota Statutes 2016, section 296A.17, subdivision 1, is amended to read:
110.28 		Subdivision 1.Aviation refund requirements. Any person claiming to be entitled to 
110.29 	any refund or credit provided for in subdivision 3 shall receive the refund or credit upon 
110.30 	filing with the commissioner a claim in such form and manner prescribed by the 
110.31 	commissioner. The claim shall set forth, among other things, the total number of gallons of 
110.32 	gasoline used as a substitute for aviation gasoline, aviation gasoline, or special fuel for 
111.1 	aircraft use upon which the claimant has directly or indirectly paid the excise tax provided 
111.2 	for in this chapter, during the calendar year, which has been received, stored, or withdrawn 
111.3 	from storage by the claimant in this state and not sold or otherwise disposed of to others. 
111.4 	All claims for refunds under this subdivision shall be made on or before April 30 following 
111.5 	the end of the calendar year for which the refund is claimed.

111.6 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
111.7 	30, 2017.

111.8 	Sec. 12. Minnesota Statutes 2016, section 296A.17, subdivision 2, is amended to read:
111.9 		Subd. 2.Claim for refund; aviation tax. (a) Any person who buys gasoline used as a 
111.10 	substitute for aviation gasoline, aviation gasoline, or special fuel for aircraft use and who 
111.11 	has paid the excise taxes directly or indirectly through the amount of the tax being included 
111.12 	in the price, or otherwise, who does not use it in motor vehicles or receive, sell, store, or 
111.13 	withdraw it from storage for the purpose of producing or generating power for propelling 
111.14 	aircraft, shall be reimbursed and repaid the amount of the tax paid upon filing with the 
111.15 	commissioner a claim in the form and manner prescribed by the commissioner. The claim 
111.16 	shall state the total amount of the gasoline used as a substitute for aviation gasoline, aviation 
111.17 	gasoline, or special fuel for aircraft use purchased and used by the applicant, and shall state 
111.18 	when and for what purpose it was used. On being satisfied that the claimant is entitled to 
111.19 	payment, the commissioner shall approve the claim and transmit it to the commissioner of 
111.20 	management and budget. The postmark on the envelope in which a written claim is mailed 
111.21 	determines the date of filing.
111.22 	(b) If a claim contains an error in preparation in computation or preparation, the 
111.23 	commissioner is authorized to adjust the claim in accordance with the evidence shown on 
111.24 	the claim or other information available to the commissioner.
111.25 	(c) An applicant who files a claim that is false or fraudulent, is subject to the penalties 
111.26 	provided in section 296A.23 for knowingly and willfully making a false claim.

111.27 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
111.28 	30, 2017.

111.29 	Sec. 13. Minnesota Statutes 2016, section 296A.17, subdivision 3, is amended to read:
111.30 		Subd. 3.Refund on graduated basis. Any person who has directly or indirectly paid 
111.31 	the excise tax on gasoline used as a substitute for aviation gasoline, aviation gasoline, or 
111.32 	special fuel for aircraft use provided for by this chapter and either paid the airflight property 
112.1 	tax under section 270.072or is an aerial applicator with a category B, general aerial license, 
112.2 	under section 18B.33, shall, as to all such gasoline used as a substitute for aviation gasoline, 
112.3 	aviation gasoline, and special fuel received, stored, or withdrawn from storage by the person 
112.4 	in this state in any calendar year and not sold or otherwise disposed of to others, or intended 
112.5 	for sale or other disposition to others, on which such tax has been so paid, be entitled to the 
112.6 	following graduated reductions in such tax for that calendar year, to be obtained by means 
112.7 	of the following refunds:
112.8 	(1) on each gallon of suchgasoline used as a substitute for aviation gasoline, aviation 
112.9 	gasoline, or special fuel up to 50,000 gallons, all but five cents per gallon;
112.10 	(2) on each gallon of suchgasoline used as a substitute for aviation gasoline, aviation 
112.11 	gasoline, or special fuel above 50,000 gallons and not more than 150,000 gallons, all but 
112.12 	two cents per gallon;
112.13 	(3) on each gallon of suchgasoline used as a substitute for aviation gasoline, aviation 
112.14 	gasoline, or special fuel above 150,000 gallons and not more than 200,000 gallons, all but 
112.15 	one cent per gallon;
112.16 	(4) on each gallon of suchgasoline used as a substitute for aviation gasoline, aviation 
112.17 	gasoline, or special fuel above 200,000, all but one-half cent per gallon.

112.18 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
112.19 	30, 2017.

112.20 	Sec. 14. Minnesota Statutes 2016, section 296A.18, subdivision 1, is amended to read:
112.21 		Subdivision 1.Intent; gasoline use. All gasoline received in this state and all gasoline 
112.22 	produced in or brought into this state except aviation gasoline, gasoline sold to a dealer of 
112.23 	gasoline used as a substitute for aviation gasoline, and marine gasoline shall be determined 
112.24 	to be intended for use in motor vehicles in this state.

112.25 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
112.26 	30, 2017.

112.27 	Sec. 15. Minnesota Statutes 2016, section 296A.18, subdivision 8, is amended to read:
112.28 		Subd. 8.Airports. The revenues derived from the excise taxes on gasoline used as a 
112.29 	substitute for aviation gasoline, aviation gasoline, and on special fuel received, sold, stored, 
112.30 	or withdrawn from storage as substitutes for aviation gasoline, shall be paid into the state 
112.31 	treasury and credited to the state airports fund. There is hereby appropriated such sums as 
112.32 	are needed to carry out the provisions of this subdivision.

113.1 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
113.2 	30, 2017.

113.3 	Sec. 16. Minnesota Statutes 2016, section 296A.19, subdivision 1, is amended to read:
113.4 		Subdivision 1.Retention. All distributors, dealers, special fuel dealers, bulk purchasers, 
113.5 	dealers of gasoline used as a substitute for aviation gasoline, and all users of special fuel 
113.6 	shall keep a true and accurate record of all purchases, transfers, sales, and use of petroleum 
113.7 	products and special fuel, including copies of all sales tickets issued, in a form and manner 
113.8 	approved by the commissioner, and shall retain all such records for 3-1/2 years.

113.9 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
113.10 	30, 2017.

113.11 	Sec. 17. Minnesota Statutes 2016, section 297F.01, is amended by adding a subdivision 
113.12 	to read:
113.13 		Subd. 6a.Bulk nicotine. "Bulk nicotine" means any vapor product that contains a 
113.14 	solution having a concentration of 50 milligrams of nicotine per milliliter or greater.

113.15 	EFFECTIVE DATE. This section is effective January 1, 2018.

113.16 	Sec. 18. Minnesota Statutes 2016, section 297F.01, is amended by adding a subdivision 
113.17 	to read:
113.18 		Subd. 6b.Consumable material. "Consumable material" means any vapor product that 
113.19 	contains nicotine in a solution having a concentration of less than 50 milligrams of nicotine 
113.20 	per milliliter.

113.21 	EFFECTIVE DATE. This section is effective January 1, 2018.

113.22 	Sec. 19. Minnesota Statutes 2016, section 297F.01, subdivision 19, is amended to read:
113.23 		Subd. 19.Tobacco products. (a) "Tobacco products" means any product containing, 
113.24 	made, or derived from tobacco that is intended for human consumption, whether chewed, 
113.25 	smoked, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means, or 
113.26 	any component, part, or accessory of a tobacco product, including, but not limited to, cigars; 
113.27 	cheroots; stogies; periques; granulated, plug cut, crimp cut, ready rubbed, and other smoking 
113.28 	tobacco; snuff; snuff flour; cavendish; plug and twist tobacco; fine-cut and other chewing 
113.29 	tobacco; shorts; refuse scraps, clippings, cuttings and sweepings of tobacco, vapor products,
113.30 	and other kinds and forms of tobacco; but does not include cigarettes as defined in this 
114.1 	section. Tobacco products excludes any tobacco product that has been approved by the 
114.2 	United States Food and Drug Administration for sale as a tobacco cessation product, as a 
114.3 	tobacco dependence product, or for other medical purposes, and is being marketed and sold 
114.4 	solely for such an approved purpose.
114.5 	(b) Except for the imposition of tax under section 297F.05, subdivisions 3 and 4, tobacco 
114.6 	products includes a premium cigar, as defined in subdivision 13a.

114.7 	EFFECTIVE DATE. This section is effective January 1, 2018.

114.8 	Sec. 20. Minnesota Statutes 2016, section 297F.01, is amended by adding a subdivision 
114.9 	to read:
114.10 		Subd. 24.Vapor products. "Vapor products" means any noncombustible product that 
114.11 	employs a heating element, power source, electronic circuit, or other electronic, chemical, 
114.12 	or mechanical means, regardless of shape or size, that can be used to produce vapor from 
114.13 	nicotine in a solution or other form. Vapor products includes any electronic cigarette, 
114.14 	electronic cigar, electronic cigarillo, electronic pipe, or similar product or device and any 
114.15 	vapor cartridge or other container of bulk nicotine or consumable material in a solution or 
114.16 	other form that is intended to be used with or in an electronic cigarette, electronic cigar, 
114.17 	electronic cigarillo, electronic pipe, or similar product or device.

114.18 	EFFECTIVE DATE. This section is effective January 1, 2018.

114.19 	Sec. 21. Minnesota Statutes 2016, section 297F.05, subdivision 1, is amended to read:
114.20 		Subdivision 1.Rates; cigarettes. A tax is imposed upon the sale of cigarettes in this 
114.21 	state, upon having cigarettes in possession in this state with intent to sell, upon any person 
114.22 	engaged in business as a distributor, and upon the use or storage by consumers, at the rate 
114.23 	of 141.5 152 mills, or 14.15 15.2 cents, on each cigarette.

114.24 	EFFECTIVE DATE. This section is effective January 1, 2018.

114.25 	Sec. 22. Minnesota Statutes 2016, section 297F.05, subdivision 3, is amended to read:
114.26 		Subd. 3.Rates; tobacco products. (a) Except as provided in subdivisionsubdivisions
114.27 	3a and 3b, a tax is imposed upon all tobacco products in this state and upon any person 
114.28 	engaged in business as a distributor, at the rate of 95 percent of the wholesale sales price 
114.29 	of the tobacco products. The tax is imposed at the time the distributor:
114.30 	(1) brings, or causes to be brought, into this state from outside the state tobacco products 
114.31 	for sale;
115.1 	(2) makes, manufactures, or fabricates tobacco products in this state for sale in this state; 
115.2 	or
115.3 	(3) ships or transports tobacco products to retailers in this state, to be sold by those 
115.4 	retailers.
115.5 	(b) Notwithstanding paragraph (a), a minimum tax equal to the rate imposed on a pack 
115.6 	of 20 cigarettes weighing not more than three pounds per thousand, as established under 
115.7 	subdivision 1, is imposed on each container of moist snuff.
115.8 	For purposes of this subdivision, a "container" means the smallest consumer-size can, 
115.9 	package, or other container that is marketed or packaged by the manufacturer, distributor, 
115.10 	or retailer for separate sale to a retail purchaser. When more than one container is packaged 
115.11 	together, each container is subject to tax.

115.12 	EFFECTIVE DATE. This section is effective January 1, 2018.

115.13 	Sec. 23. Minnesota Statutes 2016, section 297F.05, is amended by adding a subdivision 
115.14 	to read:
115.15 		Subd. 3b.Rates; vapor products. (a) A tax is imposed upon all vapor products in this 
115.16 	state and upon any person engaged in business as a tobacco product distributor. The tax 
115.17 	imposed under this subdivision is imposed at the time the tobacco products distributor:
115.18 	(1) brings, or causes to be brought, into this state vapor products for sale;
115.19 	(2) makes, manufactures, or fabricates vapor products in this state, not otherwise taxed 
115.20 	under this subdivision, for sale in this state; or
115.21 	(3) ships or transports vapor products to retailers in this state to be sold by those retailers.
115.22 	(b) For vapor products that contain bulk nicotine, the rate of tax is 300 percent of the 
115.23 	wholesale sales price of the vapor product.
115.24 	(c) For vapor products that contain consumable material, the rate of tax is 45 percent of 
115.25 	the wholesale sales price of the vapor product.

115.26 	EFFECTIVE DATE. This section is effective January 1, 2018.

115.27 	Sec. 24. Minnesota Statutes 2016, section 297F.05, is amended by adding a subdivision 
115.28 	to read:
115.29 		Subd. 4b.Use tax; vapor products. A tax is imposed upon the use or storage by 
115.30 	consumers of all vapor products in this state, and upon such consumers, at the rate of 300 
116.1 	percent of the wholesale sales price of a vapor product containing bulk nicotine, and 45 
116.2 	percent of the wholesale sales price of a vapor product containing consumable material.

116.3 	EFFECTIVE DATE. This section is effective January 1, 2018.

116.4 	Sec. 25. Minnesota Statutes 2016, section 297H.04, subdivision 2, is amended to read:
116.5 		Subd. 2.Rate. (a) Commercial generators that generate nonmixed municipal solid waste 
116.6 	shall pay a solid waste management tax of 60 cents per noncompacted cubic yard of periodic 
116.7 	waste collection capacity purchased by the generator, based on the size of the container for 
116.8 	the nonmixed municipal solid waste, the actual volume, or the weight-to-volume conversion 
116.9 	schedule in paragraph (c). However, the tax must be calculated by the waste management 
116.10 	service provider using the same method for calculating the waste management service fee 
116.11 	so that both are calculated according to container capacity, actual volume, or weight.
116.12 	(b) Notwithstanding section 297H.02, a residential generator that generates nonmixed 
116.13 	municipal solid waste shall pay a solid waste management tax in the same manner as provided 
116.14 	in paragraph (a).
116.15 	(c) The weight-to-volume conversion schedule for:
116.16 	(1) construction debris as defined in section 115A.03, subdivision 7, is one ton equals 
116.17 	3.33 cubic yards, or $2 per ton equal to 60 cents per cubic yard. The commissioner of 
116.18 	revenue, after consultation with the commissioner of the Pollution Control Agency, shall 
116.19 	determine and may publish by notice a conversion schedule for construction debris;
116.20 	(2) industrial waste as defined in section 115A.03, subdivision 13a, is equal to 60 cents 
116.21 	per cubic yard. The commissioner of revenue after consultation with the commissioner of 
116.22 	the Pollution Control Agency, shall determine, and may publish by notice, a conversion 
116.23 	schedule for various industrial wastes; and
116.24 	(3) infectious waste as defined in section 116.76, subdivision 12, and pathological waste 
116.25 	as defined in section 116.76, subdivision 14, is 150 pounds equals one cubic yard, or 60 
116.26 	cents per 150 pounds.

116.27 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
116.28 	30, 2017.

116.29 	Sec. 26.  REPEALER.
 116.30 	(a) Minnesota Statutes 2016, section 297F.05, subdivision 1a, is repealed.
116.31 	(b) Minnesota Rules, part 8125.1300, subpart 3, is repealed.

117.1 	EFFECTIVE DATE. This section is effective January 1, 2017.

117.2 	ARTICLE 6
117.3 	MINERALS

117.4 	Section 1. Minnesota Statutes 2016, section 298.24, is amended by adding a subdivision 
117.5 	to read:
117.6 		Subd. 5.TEDF; deposits redirected. (a) For concentrates produced by a plant subject 
117.7 	to a reimbursement agreement dated September 9, 2008, by and among Itasca County, Essar 
117.8 	Global Limited, and Minnesota Steel Industries LLC, the provisions of sections 298.227 
117.9 	and 298.28, subdivision 9a, do not apply to the plant's production.
117.10 	(b) All amounts not deposited in the taconite economic development fund as a result of 
117.11 	paragraph (a) must be deposited in the Douglas J. Johnson economic protection trust fund 
117.12 	created under section 298.292.
117.13 	(c) The provisions of this subdivision expire upon certification by the commissioner of 
117.14 	employment and economic development that all requirements of the reimbursement 
117.15 	agreement, as specified in paragraph (a), are satisfied.

117.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

117.17 	Sec. 2. Minnesota Statutes 2016, section 298.28, subdivision 3, is amended to read:
117.18 		Subd. 3.Cities; towns. (a) 12.5 cents per taxable ton, less any amount distributed under 
117.19 	subdivision 8, and paragraph (b), must be allocated to the taconite municipal aid account 
117.20 	to be distributed as provided in section 298.282.
117.21 	(b) An amount must be allocated to towns or cities that is annually certified by the county 
117.22 	auditor of a county containing a taconite tax relief area as defined in section 273.134, 
117.23 	paragraph (b), within which there is (1) an organized township if, as of January 2, 1982, 
117.24 	more than 75 percent of the assessed valuation of the township consists of iron ore or (2) a 
117.25 	city if, as of January 2, 1980, more than 75 percent of the assessed valuation of the city 
117.26 	consists of iron ore.
117.27 	(c) The amount allocated under paragraph (b) will be the portion of a township's or city's 
117.28 	certified levy equal to the proportion of (1) the difference between 50 percent of January 
117.29 	2, 1982, assessed value in the case of a township and 50 percent of the January 2, 1980, 
117.30 	assessed value in the case of a city and its current assessed value to (2) the sum of its current 
117.31 	assessed value plus the difference determined in (1), provided that the amount distributed 
117.32 	shall not exceed $55 per capita in the case of a township or $75 per capita in the case of a 
118.1 	city. For purposes of this limitation, population will be determined according to the 1980 
118.2 	decennial census conducted by the United States Bureau of the Census. If the current assessed 
118.3 	value of the township exceeds 50 percent of the township's January 2, 1982, assessed value, 
118.4 	or if the current assessed value of the city exceeds 50 percent of the city's January 2, 1980, 
118.5 	assessed value, this paragraph shall not apply. For purposes of this paragraph, "assessed 
118.6 	value," when used in reference to years other than 1980 or 1982, means the appropriate net 
118.7 	tax capacities multiplied by 10.2.
118.8 	(d) In addition to other distributions under this subdivision, three 3.25 cents per taxable 
118.9 	ton for distributions in 2009 2017 and subsequent years must be allocated for distribution 
118.10 	to (1) towns that are entirely located within the taconite tax relief area defined in section 
118.11 	273.134, paragraph (b); and (2) the following unorganized territories in St. Louis County 
118.12 	and Itasca County: 56-17; 58-22; 59-16; 59-21; 60-18; and 60-19. For distribution in 2010 
118.13 	through 2014 and for distribution distributions in 2018 and subsequent years, the three-cent
118.14 	3.25-cent amount must be annually increased in the same proportion as the increase in the 
118.15 	implicit price deflator as provided in section 298.24, subdivision 1. The amount available 
118.16 	under this paragraph will must be distributed to eligible towns  and eligible unorganized 
118.17 	territories on a per capita basis, provided that no town or unorganized territory may receive 
118.18 	more than $50,000 in any year under this paragraph. Any amount of the distribution that 
118.19 	exceeds the $50,000 limitation for a town or unorganized territory under this paragraph 
118.20 	must be redistributed on a per capita basis among the other eligible towns and eligible 
118.21 	unorganized territories, to whose distributions do not exceed $50,000. The amount available 
118.22 	to unorganized territories in St. Louis County and Itasca County may be held by the county 
118.23 	and combined for public infrastructure projects for the specified unorganized territories.

118.24 	EFFECTIVE DATE. This section is effective for distributions beginning in 2017 and 
118.25 	thereafter.

118.26 	Sec. 3. Minnesota Statutes 2016, section 298.28, subdivision 5, is amended to read:
118.27 		Subd. 5.Counties. (a) 21.05 cents per taxable ton for distributions in 2015 through 2023, 
118.28 	and 26.05 cents per taxable ton for distributions beginning in 2024, is allocated to counties 
118.29 	to be distributed, based upon certification by the commissioner of revenue, under paragraphs 
118.30 	(b) to (d).
118.31 	(b) 10.525 cents per taxable ton shall be distributed to the county in which the taconite 
118.32 	is mined or quarried or in which the concentrate is produced, less any amount which is to 
118.33 	be distributed pursuant to paragraph (c). The apportionment formula prescribed in subdivision 
118.34 	2 is the basis for the distribution.
119.1 	(c) If1.0 cent per taxable ton of the tax distributed to the counties pursuant to paragraph 
119.2 	(b) shall be paid to a county that received a distribution under this section in 2000 because 
119.3 	there was located in the county an electric power plant owned by and providing the primary 
119.4 	source of power for a taxpayer mining and concentrating taconite is located in a different 
119.5 	county other than the county in which the mining and the concentrating processes are 
119.6 	conducted, one cent per taxable ton of the tax distributed to the counties pursuant to paragraph 
119.7 	(b) and imposed on and collected from such taxpayer shall be paid to the county in which 
119.8 	the power plant is located.
119.9 	(d) 10.525 cents per taxable ton for distributions in 2015 through 2023, and 15.525 cents 
119.10 	per taxable ton for distributions beginning in 2024, shall be paid to the county from which 
119.11 	the taconite was mined, quarried or concentrated to be deposited in the county road and 
119.12 	bridge fund. If the mining, quarrying and concentrating, or separate steps in any of those 
119.13 	processes are carried on in more than one county, the commissioner shall follow the 
119.14 	apportionment formula prescribed in subdivision 2.

119.15 	EFFECTIVE DATE. This section is effective the day following final enactment.

119.16 	Sec. 4. Minnesota Statutes 2016, section 298.28, subdivision 7a, is amended to read:
119.17 		Subd. 7a.Iron Range school consolidation and cooperatively operated school account.
 119.18 	(a) The following amounts must be allocated to the Iron Range Resources and Rehabilitation 
119.19 	Board to be deposited in the Iron Range school consolidation and cooperatively operated 
119.20 	school account that is hereby created:
119.21 	(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax imposed 
119.22 	under section 298.24; and
119.23 	(ii) for distributions beginning in 2024, five cents per taxable ton of the tax imposed 
119.24 	under section 298.24;
119.25 	(2) the amount as determined under section 298.17, paragraph (b), clause (3);
119.26 	(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax 
119.27 	proceeds attributable to the increase in the implicit price deflator as provided in section 
119.28 	298.24, subdivision 1, with the remaining one-third to be distributed to the Douglas J. 
119.29 	Johnson economic protection trust fund;
119.30 	(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the increased 
119.31 	tax proceeds attributable to the increase in the implicit price deflator as provided in section 
119.32 	298.24, subdivision 1, for distribution years 2015 and 2016, with the remaining one-third 
119.33 	to be distributed to the Douglas J. Johnson economic protection trust fund; and
120.1 	(iii) for distributions in 2017 and thereafter, an amount equal to two-thirds of the sum 
120.2 	of the increased tax proceeds attributable to the increase in the implicit price deflator as 
120.3 	provided in section 298.24, subdivision 1, for distribution years 2015, 2016, and 2017, with 
120.4 	the remaining one-third to be distributed to the Douglas J. Johnson economic protection 
120.5 	trust fund; and
120.6 	(4) any other amount as provided by law.
120.7 	(b) Expenditures from this account shall be made only to provide disbursements to assist 
120.8 	school districts with the payment of bonds that were issued for qualified school projects, 
120.9 	or for any other school disbursement as approved by the Iron Range Resources and 
120.10 	Rehabilitation Board. For purposes of this section, "qualified school projects" means school 
120.11 	projects within the taconite assistance area as defined in section 273.1341, that were (1) 
120.12 	approved, by referendum, after April 3, 2006; and (2) approved by the commissioner of 
120.13 	education pursuant to section 123B.71.
120.14 	(c) Beginning in fiscal year 2019, the disbursement to school districts for payments for 
120.15 	bonds issued under section 123A.482, subdivision 9, must be increased each year to offset 
120.16 	any reduction in debt service equalization aid that the school district qualifies for in that 
120.17 	year, under section 123B.53, subdivision 6, compared with the amount the school district 
120.18 	qualified for in fiscal year 2018.
120.19 	(d) No expenditure under this section shall be made unless approved by seven members 
120.20 	of the Iron Range Resources and Rehabilitation Board.

120.21 	EFFECTIVE DATE. This section is effective for distributions beginning in 2018 and 
120.22 	thereafter.

120.23 	Sec. 5. Laws 2010, chapter 216, section 58, as amended by Laws 2010, chapter 347, article 
120.24 	7, section 1, and Laws 2010, chapter 389, article 7, section 20, is amended to read:
120.25 	Sec. 58. 2010 DISTRIBUTIONS ONLY.
 120.26 	For distributions in 2010 only, a special fund is established to receive the sum of the 
120.27 	following amounts that otherwise would be allocated under Minnesota Statutes, section 
120.28 	298.28, subdivision 6. The following amounts are allocated to St. Louis County acting as 
120.29 	the fiscal agent for the recipients for the specific purposes:
120.30 	(1) 0.764 cent per ton must be paid to Northern Minnesota Dental to provide incentives 
120.31 	for at least two dentists to establish dental practices in high-need areas of the taconite tax 
120.32 	relief area;
121.1 	(2) 0.955 cent per ton must be paid to the city of Virginia for repairs and geothermal 
121.2 	heat at the Olcott Park Greenhouse/Virginia Commons project;
121.3 	(3) 0.796 cent per ton must be paid to the city of Virginia for health and safety repairs 
121.4 	at the Miners Memorial;
121.5 	(4) 1.114 cents per ton must be paid to the city of Eveleth for the reconstruction of 
121.6 	Highway 142/Grant and Park Avenues;
121.7 	(5) 0.478 cent per ton must be paid to the Greenway Joint Recreation Board for upgrades 
121.8 	and capital improvements to the public arena in Coleraine;
121.9 	(6) 0.796 cent per ton must be paid to the city of Calumet for water treatment and 
121.10 	pumphouse modifications;
121.11 	(7) 0.159 cent per ton must be paid to the city of Bovey for residential and commercial 
121.12 	claims for water damage due to water and flood-related damage caused by the Canisteo Pit;
121.13 	(8) 0.637 cent per ton must be paid to the city of Nashwauk for a community and child 
121.14 	care center;
121.15 	(9) 0.637 cent per ton must be paid to the city of Keewatin for water and sewer upgrades;
121.16 	(10) 0.637 cent per ton must be paid to the city of Marble for the city hall and library 
121.17 	project;
121.18 	(11) 0.955 cent per ton must be paid to the city of Grand Rapids for extension of water 
121.19 	and sewer services for Lakewood Housing;
121.20 	(12) 0.159 cent per ton must be paid to the city of Grand Rapids for exhibits at the 
121.21 	Children's Museum;
121.22 	(13) 0.637 cent per ton must be paid to the city of Grand Rapids for Block 20/21 soil 
121.23 	corrections. This amount must be matched by local sources;
121.24 	(14) 0.605 cent per ton must be paid to the city of Aitkin for three water loops;
121.25 	(15) 0.048 cent per ton must be paid to the city of Aitkin for signage;
121.26 	(16) 0.159 cent per ton must be paid to Aitkin County for a trail;
121.27 	(17) 0.637 cent per ton must be paid to the city of Cohasset for the Beiers Road railroad 
121.28 	crossing;
121.29 	(18) 0.088 cent per ton must be paid to the town of Clinton for expansion and striping 
121.30 	of the community center parking lot;
122.1 	(19) 0.398 cent per ton must be paid to the city of Kinney for water line replacement;
122.2 	(20) 0.796 cent per ton must be paid to the city of Gilbert for infrastructure improvements, 
122.3 	milling, and overlay for Summit Street between Alaska Avenue and Highway 135;
122.4 	(21) 0.318 cent per ton must be paid to the city of Gilbert for sanitary sewer main 
122.5 	replacements and improvements in the Northeast Lower Alley area;
122.6 	(22) 0.637 cent per ton must be paid to the town of White for replacement of the Stepetz 
122.7 	Road culvert;
122.8 	(23) 0.796 cent per ton must be paid to the city of Buhl for reconstruction of Sharon 
122.9 	Street and associated infrastructure;
122.10 	(24) 0.796 cent per ton must be paid to the city of Mountain Iron for site improvements 
122.11 	at the Park Ridge development;
122.12 	(25) 0.796 cent per ton must be paid to the city of Mountain Iron for infrastructure and 
122.13 	site preparation for its renewable and sustainable energy park;
122.14 	(26) 0.637 cent per ton must be paid to the city of Biwabik for sanitary sewer 
122.15 	improvements;
122.16 	(27) 0.796 cent per ton must be paid to the city of Aurora for alley and road rebuilding 
122.17 	for the Summit Addition;
122.18 	(28) 0.955 cent per ton must be paid to the city of Silver Bay for bioenergy facility 
122.19 	improvements;
122.20 	(29) 0.318 cent per ton must be paid to the city of Grand Marais for water and sewer 
122.21 	infrastructure improvements;
122.22 	(30) 0.318 cent per ton must be paid to the city of Orr for airport, water, and sewer 
122.23 	improvements;
122.24 	(31) 0.716 cent per ton must be paid to the city of Cook for street and bridge 
122.25 	improvements and land purchase, provided that if the city sells or otherwise disposes of any 
122.26 	of the land purchased with the money provided under this clause within a period of ten five
122.27 	years after it was purchased, the city must transfer a portion of the proceeds of the sale equal 
122.28 	to the amount of the purchase price paid from the money provided under this clause to the 
122.29 	commissioner of Iron Range Resources and Rehabilitation for deposit in the taconite 
122.30 	environmental protection fund to be used for the purposes of the fund under Minnesota 
122.31 	Statutes, section 298.223;
123.1 	(32) 0.955 cent per ton must be paid to the city of Ely for street, water, and sewer 
123.2 	improvements;
123.3 	(33) 0.318 cent per ton must be paid to the city of Tower for water and sewer 
123.4 	improvements;
123.5 	(34) 0.955 cent per ton must be paid to the city of Two Harbors for water and sewer 
123.6 	improvements;
123.7 	(35) 0.637 cent per ton must be paid to the city of Babbitt for water and sewer 
123.8 	improvements;
123.9 	(36) 0.096 cent per ton must be paid to the township of Duluth for infrastructure 
123.10 	improvements;
123.11 	(37) 0.096 cent per ton must be paid to the township of Tofte for infrastructure 
123.12 	improvements;
123.13 	(38) 3.184 cents per ton must be paid to the city of Hibbing for sewer improvements;
123.14 	(39) 1.273 cents per ton must be paid to the city of Chisholm for NW Area Project 
123.15 	infrastructure improvements;
123.16 	(40) 0.318 cent per ton must be paid to the city of Chisholm for health and safety 
123.17 	improvements at the athletic facility;
123.18 	(41) 0.796 cent per ton must be paid to the city of Hoyt Lakes for residential street 
123.19 	improvements;
123.20 	(42) 0.796 cent per ton must be paid to the Bois Forte Indian Reservation for infrastructure 
123.21 	related to a housing development;
123.22 	(43) 0.159 cent per ton must be paid to Balkan Township for building improvements;
123.23 	(44) 0.159 cent per ton must be paid to the city of Grand Rapids for a grant to a nonprofit 
123.24 	for a signage kiosk;
123.25 	(45) 0.318 cent per ton must be paid to the city of Crane Lake for sanitary sewer lines 
123.26 	and adjacent development near County State-Aid Highway 24; and
123.27 	(46) 0.159 cent per ton must be paid to the city of Chisholm to rehabilitate historic wall 
123.28 	infrastructure around the athletic complex.

123.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

124.1 	Sec. 6. CLARIFYING AUTHORITY TO USE PREVIOUSLY DISTRIBUTED 
124.2 	TACONITE TAX PROCEEDS.
 124.3 	The commissioner of Iron Range Resources and Rehabilitation may use any unspent 
124.4 	amounts allocated under Minnesota Statutes 2014, section 298.2961, subdivision 5, clause 
124.5 	(19), remaining as of May 22, 2016, for the specific purposes identified in that section. 
124.6 	Notwithstanding Minnesota Statutes, section 298.28, subdivision 11, paragraph (a), or any 
124.7 	other law to the contrary, interest accrued on this amount shall also be distributed to the 
124.8 	recipient. Amounts under this section are available until expended and do not lapse or cancel 
124.9 	under Minnesota Statutes, section 16A.28.

124.10 	EFFECTIVE DATE. This section is effective retroactively from May 22, 2016.

124.11 	ARTICLE 7
124.12 	LOCAL DEVELOPMENT

124.13 	Section 1. Minnesota Statutes 2016, section 469.1763, subdivision 1, is amended to read:
124.14 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
124.15 	the meanings given.
124.16 	(b) "Activities" means acquisition of property, clearing of land, site preparation, soils 
124.17 	correction, removal of hazardous waste or pollution, installation of utilities, construction 
124.18 	of public or private improvements, and other similar activities, but only to the extent that 
124.19 	tax increment revenues may be spent for such purposes under other law.
124.20 	(c) "Third party" means an entity other than (1) the person receiving the benefit of 
124.21 	assistance financed with tax increments, or (2) the municipality or the development authority 
124.22 	or other person substantially under the control of the municipality.
124.23 	(d) "Revenues derived from tax increments paid by properties in the district" means only 
124.24 	tax increment as defined in section 469.174, subdivision 25, clause (1), and does not include 
124.25 	tax increment as defined in section 469.174, subdivision 25, clauses (2), (3), and (4) to (5).

124.26 	EFFECTIVE DATE. This section is effective the day following final enactment.

124.27 	Sec. 2. Minnesota Statutes 2016, section 469.1763, subdivision 2, is amended to read:
124.28 		Subd. 2.Expenditures outside district. (a) For each tax increment financing district, 
124.29 	an amount equal to at least 75 percent of the total revenue derived from tax increments paid 
124.30 	by properties in the district must be expended on activities in the district or to pay bonds, 
124.31 	to the extent that the proceeds of the bonds were used to finance activities in the district or 
125.1 	to pay, or secure payment of, debt service on credit enhanced bonds. For districts, other 
125.2 	than redevelopment districts for which the request for certification was made after June 30, 
125.3 	1995, the in-district percentage for purposes of the preceding sentence is 80 percent. Not 
125.4 	more than 25 percent of the total revenue derived from tax increments paid by properties 
125.5 	in the district may be expended, through a development fund or otherwise, on activities 
125.6 	outside of the district but within the defined geographic area of the project except to pay, 
125.7 	or secure payment of, debt service on credit enhanced bonds. For districts, other than 
125.8 	redevelopment districts for which the request for certification was made after June 30, 1995, 
125.9 	the pooling percentage for purposes of the preceding sentence is 20 percent. The revenue
125.10 	revenues derived from tax increments for paid by properties in the district that are expended 
125.11 	on costs under section 469.176, subdivision 4h, paragraph (b), may be deducted first before 
125.12 	calculating the percentages that must be expended within and without the district.
125.13 	(b) In the case of a housing district, a housing project, as defined in section 469.174, 
125.14 	subdivision 11, is an activity in the district.
125.15 	(c) All administrative expenses are for activities outside of the district, except that if the 
125.16 	only expenses for activities outside of the district under this subdivision are for the purposes 
125.17 	described in paragraph (d), administrative expenses will be considered as expenditures for 
125.18 	activities in the district.
125.19 	(d) The authority may elect, in the tax increment financing plan for the district, to increase 
125.20 	by up to ten percentage points the permitted amount of expenditures for activities located 
125.21 	outside the geographic area of the district under paragraph (a). As permitted by section 
125.22 	469.176, subdivision 4k, the expenditures, including the permitted expenditures under 
125.23 	paragraph (a), need not be made within the geographic area of the project. Expenditures 
125.24 	that meet the requirements of this paragraph are legally permitted expenditures of the district, 
125.25 	notwithstanding section 469.176, subdivisions 4b, 4c, and 4j. To qualify for the increase 
125.26 	under this paragraph, the expenditures must:
125.27 	(1) be used exclusively to assist housing that meets the requirement for a qualified 
125.28 	low-income building, as that term is used in section 42 of the Internal Revenue Code; and
125.29 	(2) not exceed the qualified basis of the housing, as defined under section 42(c) of the 
125.30 	Internal Revenue Code, less the amount of any credit allowed under section 42 of the Internal 
125.31 	Revenue Code; and
125.32 	(3) be used to:
125.33 	(i) acquire and prepare the site of the housing;
126.1 	(ii) acquire, construct, or rehabilitate the housing; or
126.2 	(iii) make public improvements directly related to the housing; or
126.3 	(4) be used to develop housing:
126.4 	(i) if the market value of the housing does not exceed the lesser of:
126.5 	(A) 150 percent of the average market value of single-family homes in that municipality; 
126.6 	or
126.7 	(B) $200,000 for municipalities located in the metropolitan area, as defined in section 
126.8 	473.121, or $125,000 for all other municipalities; and
126.9 	(ii) if the expenditures are used to pay the cost of site acquisition, relocation, demolition 
126.10 	of existing structures, site preparation, and pollution abatement on one or more parcels, if 
126.11 	the parcel contains a residence containing one to four family dwelling units that has been 
126.12 	vacant for six or more months and is in foreclosure as defined in section 325N.10, subdivision 
126.13 	7, but without regard to whether the residence is the owner's principal residence, and only 
126.14 	after the redemption period has expired.
126.15 	(e) The authority under paragraph (d), clause (4), expires on December 31, 2016. 
126.16 	Increments may continue to be expended under this authority after that date, if they are used 
126.17 	to pay bonds or binding contracts that would qualify under subdivision 3, paragraph (a), if 
126.18 	December 31, 2016, is considered to be the last date of the five-year period after certification 
126.19 	under that provision.

126.20 	EFFECTIVE DATE. This section is effective the day following final enactment.

126.21 	Sec. 3. Minnesota Statutes 2016, section 469.1763, subdivision 3, is amended to read:
126.22 		Subd. 3.Five-year rule. (a) Revenues derived from tax increments paid by properties 
126.23 	in the district are considered to have been expended on an activity within the district under 
126.24 	subdivision 2 only if one of the following occurs:
126.25 	(1) before or within five years after certification of the district, the revenues are actually 
126.26 	paid to a third party with respect to the activity;
126.27 	(2) bonds, the proceeds of which must be used to finance the activity, are issued and 
126.28 	sold to a third party before or within five years after certification, the revenues are spent to 
126.29 	repay the bonds, and the proceeds of the bonds either are, on the date of issuance, reasonably 
126.30 	expected to be spent before the end of the later of (i) the five-year period, or (ii) a reasonable 
126.31 	temporary period within the meaning of the use of that term under section 148(c)(1) of the 
127.1 	Internal Revenue Code, or are deposited in a reasonably required reserve or replacement 
127.2 	fund;
127.3 	(3) binding contracts with a third party are entered into for performance of the activity 
127.4 	before or within five years after certification of the district and the revenues are spent under 
127.5 	the contractual obligation;
127.6 	(4) costs with respect to the activity are paid before or within five years after certification 
127.7 	of the district and the revenues are spent to reimburse a party for payment of the costs, 
127.8 	including interest on unreimbursed costs; or
127.9 	(5) expenditures are made for housing purposes as permitted by subdivision 2, paragraphs 
127.10 	(b) and (d), or for public infrastructure purposes within a zone as permitted by subdivision 
127.11 	2, paragraph (e).
127.12 	(b) For purposes of this subdivision, bonds include subsequent refunding bonds if the 
127.13 	original refunded bonds meet the requirements of paragraph (a), clause (2).
127.14 	(c) For a redevelopment district or a renewal and renovation district certified after June 
127.15 	30, 2003, and before April 20, 2009, the five-year periods described in paragraph (a) are 
127.16 	extended to ten years after certification of the district. For a redevelopment district certified 
127.17 	after April 20, 2009, and before June 30, 2012, the five-year periods described in paragraph 
127.18 	(a) are extended to eight years after certification of the district. This extension is provided 
127.19 	primarily to accommodate delays in development activities due to unanticipated economic 
127.20 	circumstances.

127.21 	EFFECTIVE DATE. This section is effective the day following final enactment.

127.22 	Sec. 4. Minnesota Statutes 2016, section 469.178, subdivision 7, is amended to read:
127.23 		Subd. 7.Interfund loans. (a) The authority or municipality may advance or loan money 
127.24 	to finance expenditures under section 469.176, subdivision 4, from its general fund or any 
127.25 	other fund under which it has legal authority to do so.
127.26 	(b) Not later than 60 days after money is transferred, advanced, or spent, whichever is 
127.27 	earliest, the loan or advance must be authorized, by resolution of the governing body or of 
127.28 	the authority, whichever has jurisdiction over the fund from which the advance or loan is 
127.29 	authorized, before money is transferred, advanced, or spent, whichever is earliest.
127.30 	(c) The resolution may generally grant to the municipality or the authority the power to 
127.31 	make interfund loans under one or more tax increment financing plans or for one or more 
127.32 	districts. The resolution may be adopted before or after the adoption of the tax increment 
128.1 	financing plan or the creation of the tax increment financing district from which the advance 
128.2 	or loan is to be repaid.
128.3 	(d)  The terms and conditions for repayment of the loan must be provided in writing 
128.4 	and. The written terms and conditions may be in any form, but must include, at a minimum, 
128.5 	the principal amount, the interest rate, and maximum term. Written terms may be modified 
128.6 	or amended in writing by the municipality or the authority before the latest decertification 
128.7 	of any tax increment financing district from which the interfund loan is to be repaid. The 
128.8 	maximum rate of interest permitted to be charged is limited to the greater of the rates 
128.9 	specified under section 270C.40 or 549.09 as of the date the loan or advance is authorized, 
128.10 	unless the written agreement states that the maximum interest rate will fluctuate as the 
128.11 	interest rates specified under section 270C.40 or 549.09 are from time to time adjusted.
128.12 	Loans or advances may be structured as draw-down or line-of-credit obligations of the 
128.13 	lending fund.
128.14 	(e) The authority shall report in the annual report submitted pursuant to section 469.175, 
128.15 	subdivision 6:
128.16 	(1) the amount of any interfund loan or advance made in a calendar year; and
128.17 	(2) any amendment of an interfund loan or advance made in a calendar year.

128.18 	EFFECTIVE DATE. This section is effective the day following final enactment and 
128.19 	applies to all districts, regardless of when the request for certification was made.

128.20 	Sec. 5. Laws 2008, chapter 154, article 9, section 21, subdivision 2, is amended to read:
128.21 		Subd. 2.Special rules. (a) If the city elects, upon the adoption of the tax increment 
128.22 	financing plan for a district, the rules under this section apply to a redevelopment district, 
128.23 	renewal and renovation district, economic development district, soil condition district, or 
128.24 	a soil deficiency district established by the city or a development authority of the city in the 
128.25 	project area.
128.26 	(b) Prior to or upon the adoption of the first tax increment plan subject to the special 
128.27 	rules under this subdivision, the city must find by resolution that parcels consisting of at 
128.28 	least 80 percent of the acreage of the project area (excluding street and railroad right of 
128.29 	way) are characterized by one or more of the following conditions:
128.30 	(1) peat or other soils with geotechnical deficiencies that impair development of 
128.31 	residential or commercial buildings or infrastructure;
129.1 	(2) soils or terrain that requires substantial filling in order to permit the development of 
129.2 	commercial or residential buildings or infrastructure;
129.3 	(3) landfills, dumps, or similar deposits of municipal or private waste;
129.4 	(4) quarries or similar resource extraction sites;
129.5 	(5) floodway; and
129.6 	(6) substandard buildings within the meaning of Minnesota Statutes, section 469.174, 
129.7 	subdivision 10.
129.8 	(c) For the purposes of paragraph (b), clauses (1) through (5), a parcel is deemed to be 
129.9 	characterized by the relevant condition if at least 70 percent of the area of the parcel contains 
129.10 	the relevant condition. For the purposes of paragraph (b), clause (6), a parcel is deemed to 
129.11 	be characterized by substandard buildings if the buildings occupy at least 30 percent of the 
129.12 	area of the parcel.
129.13 	(d) The four-year rule under Minnesota Statutes, section 469.176, subdivision 6, is 
129.14 	extended to nine years for any district. The five-year rule under Minnesota Statutes, section 
129.15 	469.1763, subdivision 3, is extended to ten years for any district, and section 469.1763, 
129.16 	subdivision 4, does not apply to any district.
129.17 	(e) Notwithstanding anything to the contrary in section 469.1763, subdivision 2, paragraph 
129.18 	(a), not more than 80 percent of the total revenue derived from tax increments paid by 
129.19 	properties in any district (measured over the life of the district) may be expended on activities 
129.20 	outside the district but within the project area.
129.21 	(f) For a soil deficiency district:
129.22 	(1) increments may be collected through 20 years after the receipt by the authority of 
129.23 	the first increment from the district; and
129.24 	(2) except as otherwise provided in this subdivision, increments may be used only to:
129.25 	(i) acquire parcels on which the improvements described in item (ii) will occur;
129.26 	(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional 
129.27 	cost of installing public improvements directly caused by the deficiencies; and
129.28 	(iii) pay for the administrative expenses of the authority allocable to the district.
129.29 	(g) Increments spent for any infrastructure costs, whether inside a district or outside a 
129.30 	district but within the project area, are deemed to satisfy the requirements of paragraph (f) 
129.31 	and Minnesota Statutes, section 469.176, subdivisions 4b, 4c, and 4j.
130.1 	(h) Increments from any district may not be used to pay the costs of landfill closure or 
130.2 	public infrastructure located on the following parcels within the plat known as Burnsville 
130.3 	Amphitheater: Lot 1, Block 1; Lots 1 and 2, Block 2; and Outlots A, B, C and D.
130.4 	(i) The authority to approve tax increment financing plans to establish tax increment 
130.5 	financing districts under this section expires on December 31, 2018 2020.

130.6 	EFFECTIVE DATE. This section is effective upon approval by the governing body 
130.7 	of the city of Burnsville and compliance with the requirements of Minnesota Statutes, section 
130.8 	645.021.

130.9 	Sec. 6. Laws 2009, chapter 88, article 5, section 17, as amended by Laws 2010, chapter 
130.10 	382, section 84, is amended to read:
130.11 	Sec. 17. SEAWAY PORT AUTHORITY OF DULUTH; TAX INCREMENT 
130.12 	FINANCING DISTRICT; SPECIAL RULES.
 130.13 	(a) If the Seaway Port Authority of Duluth adopts a tax increment financing plan and 
130.14 	the governing body of the city of Duluth approves the plan for the tax increment financing 
130.15 	district consisting of one or more parcels identified as: 010-2730-00010; 010-2730-00020; 
130.16 	010-2730-00040; 010-2730-00050; 010-2730-00070; 010-2730-00080; 010-2730-00090; 
130.17 	010-2730-00100; 010-02730-00120; 010-02730-00130; 010-02730-00140; 010-2730-00160; 
130.18 	010-2730-00180; 010-2730-00200; 010-2730-00300; 010-02730-00320; 010-2746-01250; 
130.19 	010-2746-1330; 010-2746-01340; 010-2746-01350; 010-2746-1440; 010-2746-1380; 
130.20 	010-2746-01490; 010-2746-01500; 010-2746-01510; 010-2746-01520; 010-2746-01530; 
130.21 	010-2746-01540; 010-2746-01550; 010-2746-01560; 010-2746-01570; 010-2746-01580; 
130.22 	010-2746-01590; 010-3300-4560; 010-3300-4565; 010-3300-04570; 010-3300-04580; 
130.23 	010-3300-04640; 010-3300-04645; and 010-3300-04650, the five-year rule under Minnesota 
130.24 	Statutes, section 469.1763, subdivision 3, that activities must be undertaken within a five-year 
130.25 	period from the date of certification of the tax increment financing district, must be 
130.26 	considered to be met if the activities are undertaken within five years after the date all 
130.27 	qualifying parcels are delisted from the Federal Superfund list.
130.28 	(b) The requirements of Minnesota Statutes, section 469.1763, subdivision 4, beginning 
130.29 	in the sixth year following certification of the district requirement, will begin in the sixth 
130.30 	year following the date all qualifying parcels are delisted from the Federal Superfund list.
130.31 	(c) The action required under Minnesota Statutes, section 469.176, subdivision 6, are 
130.32 	satisfied if the action is commenced within four years after the date all qualifying parcels 
130.33 	are delisted from the Federal Superfund list and evidence of the action required is submitted 
131.1 	to the county auditor by February 1 of the fifth year following the year in which all qualifying 
131.2 	parcels are delisted from the Federal Superfund list.
131.3 	(d) For purposes of this section, "qualifying parcels" means United States Steel parcels 
131.4 	listed in paragraph (a) and shown by the Minnesota Pollution Control Agency as part of the 
131.5 	USS Site (USEPA OU 02) that are included in the tax increment financing district.
131.6 	(e) In addition to the reporting requirements of Minnesota Statutes, section 469.175, 
131.7 	subdivision 5, the Seaway Port Authority of Duluth shall report the status of all parcels 
131.8 	listed in paragraph (a) and shown as part of the USS Site (USEPA OU 02). The status report 
131.9 	must show the parcel numbers, the listed or delisted status, and if delisted, the delisting 
131.10 	date.
131.11 	(f) Notwithstanding Minnesota Statutes, section 469.178, subdivision 7, or any other 
131.12 	law to the contrary, the Seaway Port Authority of Duluth may establish an interfund loan 
131.13 	program before approval of the tax increment financing plan for or the establishment of the 
131.14 	district authorized by this section. The authority may make loans under this program and 
131.15 	the proceeds of the loans may be used for any permitted use of increments under this law 
131.16 	or Minnesota Statutes, section 469.176, for the district, and may be repaid with increments 
131.17 	from the district established under this section. This subdivision applies to any action 
131.18 	authorized by the Seaway Port Authority of Duluth on or after March 25, 2010.

131.19 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
131.20 	city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
131.21 	subdivision 3.

131.22 	Sec. 7. Laws 2014, chapter 308, article 6, section 9, is amended to read:
131.23 	Sec. 9. CITY OF MAPLE GROVE; TAX INCREMENT FINANCING DISTRICT.
 131.24 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
131.25 	the meanings given them.
131.26 	(b) "City" means the city of Maple Grove.
131.27 	(c) "Project area" means all or a portion of the area in the city commencing at a point 
131.28 	130 feet East and 120 feet North of the southwest corner of the Southeast Quarter of Section 
131.29 	23, Township 119, Range 22, Hennepin County, said point being on the easterly right-of-way 
131.30 	line of Hemlock Lane; thence northerly along said easterly right-of-way line of Hemlock 
131.31 	Lane to a point on the west line of the east one-half of the Southeast Quarter of section 23, 
131.32 	thence south along said west line a distance of 1,200 feet; thence easterly to the east line of 
131.33 	Section 23, 1,030 feet North from the southeast corner thereof; thence South 74 degrees 
132.1 	East 1,285 feet; thence East a distance of 1,000 feet; thence North 59 degrees West a distance 
132.2 	of 650 feet; thence northerly to a point on the northerly right-of-way line of 81st Avenue 
132.3 	North, 650 feet westerly measured at right angles, from the east line of the Northwest Quarter 
132.4 	of Section 24; thence North 13 degrees West a distance of 795 feet; thence West to the west 
132.5 	line of the Southeast Quarter of the Northwest Quarter of Section 24; thence North 55 
132.6 	degrees West to the south line of the Northwest Quarter of the Northwest Quarter of Section 
132.7 	24; thence West along said south line to the east right-of-way line of Zachary Lane; thence 
132.8 	North along the east right-of-way line of Zachary Lane to the southwest corner of Lot 1, 
132.9 	Block 1, Metropolitan Industrial Park 5th Addition; thence East along the south line of said 
132.10 	Lot 1 to the northeast corner of Outlot A, Metropolitan Industrial Park 5th Addition; thence 
132.11 	South along the east line of said Outlot A and its southerly extension to the south right-of-way 
132.12 	line of County State-Aid Highway (CSAH) 109; thence easterly along the south right-of-way 
132.13 	line of CSAH 109 to the east line of the Northwest Quarter of the Northeast Quarter of 
132.14 	Section 24; thence South along said east line to the north line of the South Half of the 
132.15 	Northeast Quarter of Section 24; thence East along said north line to the westerly right-of-way 
132.16 	line of Jefferson Highway North; thence southerly along the westerly right-of-way line of 
132.17 	Jefferson Highway to the centerline of CSAH 130; thence continuing South along the west 
132.18 	right-of-way line of Pilgrim Lane North to the westerly extension of the north line of Outlot 
132.19 	A, Park North Fourth Addition; thence easterly along the north line of Outlot A, Park North 
132.20 	Fourth Addition to the northeast corner of said Outlot A; thence southerly along the east 
132.21 	line of said Outlot A to the southeast corner of said Outlot A; thence easterly along the south 
132.22 	line of Lot 1, Block 1, Park North Fourth Addition to the westerly right-of-way line of State 
132.23 	Highway 169; thence southerly, southwesterly, westerly, and northwesterly along the 
132.24 	westerly right-of-way line of State Highway 169 and the northerly right-of-way line of 
132.25 	Interstate 694 to its intersection with the southerly extension of the easterly right-of-way 
132.26 	line of Zachary Lane North; thence northerly along the easterly right-of-way line of Zachary 
132.27 	Lane North and its northerly extension to the north right-of-way line of CSAH 130; thence 
132.28 	westerly, southerly, northerly, southwesterly, and northwesterly to the point of beginning 
132.29 	and there terminating, provided that the project area includes the rights-of-way for all present 
132.30 	and future highway interchanges abutting the area described in this paragraph, and may 
132.31 	include any additional property necessary to cause the property included in the tax increment 
132.32 	financing district to consist of complete parcels.
132.33 	(d) "Soil deficiency district" means a type of tax increment financing district consisting 
132.34 	of a portion of the project area in which the city finds by resolution that the following 
132.35 	conditions exist:
133.1 	(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in 
133.2 	the district require substantial filling, grading, or other physical preparation for use; and
133.3 	(2) the estimated cost of the physical preparation under clause (1), but excluding costs 
133.4 	directly related to roads as defined in Minnesota Statutes, section 160.01, and local 
133.5 	improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, clauses 
133.6 	(1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land before 
133.7 	completion of the preparation.
133.8 		Subd. 2.Special rules. (a) If the city elects, upon the adoption of the tax increment 
133.9 	financing plan for a district, the rules under this section apply to a redevelopment district, 
133.10 	renewal and renovation district, soil condition district, or soil deficiency district established 
133.11 	by the city or a development authority of the city in the project area.
133.12 	(b) Prior to or upon the adoption of the first tax increment plan subject to the special 
133.13 	rules under this subdivision, the city must find by resolution that parcels consisting of at 
133.14 	least 80 percent of the acreage of the project area, excluding street and railroad rights-of-way, 
133.15 	are characterized by one or more of the following conditions:
133.16 	(1) peat or other soils with geotechnical deficiencies that impair development of 
133.17 	commercial buildings or infrastructure;
133.18 	(2) soils or terrain that require substantial filling in order to permit the development of 
133.19 	commercial buildings or infrastructure;
133.20 	(3) landfills, dumps, or similar deposits of municipal or private waste;
133.21 	(4) quarries or similar resource extraction sites;
133.22 	(5) floodway; and
133.23 	(6) substandard buildings, within the meaning of Minnesota Statutes, section 469.174, 
133.24 	subdivision 10.
133.25 	(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by the 
133.26 	relevant condition if at least 70 percent of the area of the parcel contains the relevant 
133.27 	condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by 
133.28 	substandard buildings if substandard buildings occupy at least 30 percent of the area of the 
133.29 	parcel.
133.30 	(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is 
133.31 	extended to eight years for any district, and Minnesota Statutes, section 469.1763, subdivision 
133.32 	4, does not apply to any district.
134.1 	(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section 469.1763, 
134.2 	subdivision 2, paragraph (a), not more than 40 percent of the total revenue derived from tax 
134.3 	increments paid by properties in any district, measured over the life of the district, may be 
134.4 	expended on activities outside the district but within the project area.
134.5 	(f) For a soil deficiency district:
134.6 	(1) increments may be collected through 20 years after the receipt by the authority of 
134.7 	the first increment from the district;
134.8 	(2) increments may be used only to:
134.9 	(i) acquire parcels on which the improvements described in item (ii) will occur;
134.10 	(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional 
134.11 	cost of installing public improvements directly caused by the deficiencies; and
134.12 	(iii) pay for the administrative expenses of the authority allocable to the district; and
134.13 	(3) any parcel acquired with increments from the district must be sold at no less than 
134.14 	their fair market value.
134.15 	(g) Increments spent for any infrastructure costs, whether inside a district or outside a 
134.16 	district but within the project area, are deemed to satisfy the requirements of Minnesota 
134.17 	Statutes, section 469.176, subdivision 4j.
134.18 	(h) The authority to approve tax increment financing plans to establish tax increment 
134.19 	financing districts under this section expires June 30, 2020.
134.20 	(i) Notwithstanding the restrictions in paragraph (f), clause (2), the city may use 
134.21 	increments from a soil deficiency district to acquire parcels and for other infrastructure costs 
134.22 	either inside or outside of the district, but within the project area, if the acquisition or 
134.23 	infrastructure is for a qualified development. For purposes of this paragraph, a development 
134.24 	is a qualified development only if all of the following requirements are satisfied:
134.25 	(1) the city finds, by resolution, that the land acquisition and infrastructure are undertaken 
134.26 	primarily to serve the development;
134.27 	(2) the city has a binding, written commitment and adequate financial assurances from 
134.28 	the developer that the development will be constructed; and
134.29 	(3) the development does not consist of retail trade or housing improvements.

135.1 	EFFECTIVE DATE. This section is effective upon approval by the governing body 
135.2 	of the city of Maple Grove and its compliance with the requirements of Minnesota Statutes, 
135.3 	section 645.021.

135.4 	Sec. 8. CITY OF ANOKA; TIF DISTRICT.
 135.5 	For purposes of Minnesota Statutes, section 469.1763, subdivision 3, paragraph (c), the 
135.6 	city of Anoka's Greens of Anoka redevelopment tax increment financing district is deemed 
135.7 	to be certified on June 29, 2012, rather than its actual certification date of July 2, 2012, and 
135.8 	the provisions of Minnesota Statutes, section 469.1763, subdivisions 3 and 4, apply as if 
135.9 	the district were certified on that date.

135.10 	EFFECTIVE DATE. This section is effective upon approval by the governing body 
135.11 	of the city of Anoka and upon compliance by the city with Minnesota Statutes, section 
135.12 	645.021, subdivisions 2 and 3.

135.13 	Sec. 9. CITY OF EDINA; APPROVAL OF 2014 SPECIAL LAW.
 135.14 	Notwithstanding the provisions of Minnesota Statutes, section 645.021, subdivision 3, 
135.15 	the chief clerical officer of the city of Edina may file the city's certificate of its approval of 
135.16 	Laws 2014, chapter 308, article 6, section 8, by June 30, 2016, and, if the certificate is so 
135.17 	filed and the requirements of Minnesota Statutes, section 645.021, subdivision 3, are 
135.18 	otherwise complied with, the special law is deemed approved, and all actions taken by the 
135.19 	city prior to the effective date of this section in reliance on Laws 2014, chapter 308, article 
135.20 	6, section 8, are deemed consistent with Laws 2014, chapter 308, article 6, section 8, and 
135.21 	this act.

135.22 	EFFECTIVE DATE. This section is effective retroactively from June 30, 2016, without 
135.23 	local approval as an amendment to the provisions of Laws 2014, chapter 308, article 6, 
135.24 	section 8.

135.25 	Sec. 10. CITY OF COON RAPIDS; TAX INCREMENT FINANCING.
 135.26 	Notwithstanding the provisions of Minnesota Statutes, section 469.176, subdivision 1b, 
135.27 	or any other law to the contrary, the city of Coon Rapids may collect tax increment from 
135.28 	District 6-1 Port Riverwalk through December 31, 2038.

135.29 	EFFECTIVE DATE. This section is effective upon compliance by the governing bodies 
135.30 	of the city of Coon Rapids, Anoka County, and Independent School District No. 11 with 
135.31 	the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021, 
135.32 	subdivision 3.

136.1 	Sec. 11. CITY OF COTTAGE GROVE; TAX INCREMENT FINANCING.
 136.2 	The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities 
136.3 	must be undertaken within a five-year period from the date of certification of a tax increment 
136.4 	financing district, is considered to be met for Tax Increment Financing District No. 1-12 
136.5 	(Gateway North), administered by the Cottage Grove Economic Development Authority, 
136.6 	if the activities are undertaken prior to January 1, 2017.

136.7 	EFFECTIVE DATE. This section is effective upon compliance by the chief clerical 
136.8 	officer of the governing body of the city of Cottage Grove with the requirements of Minnesota 
136.9 	Statutes, section 645.021, subdivisions 2 and 3.

136.10 	Sec. 12. CITY OF NORTHFIELD; TAX INCREMENT FINANCING.
 136.11 	The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities 
136.12 	must be undertaken within a five-year period from the date of certification of a tax increment 
136.13 	financing district, is considered to be met for the Riverfront Tax Increment Financing District 
136.14 	in the city of Northfield, if the activities are undertaken prior to July 12, 2017.

136.15 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
136.16 	city of Northfield and its chief clerical officer comply with Minnesota Statutes, section 
136.17 	645.021, subdivisions 2 and 3.

136.18 	Sec. 13. CITY OF RICHFIELD; EXTENSION OF DISTRICT.
 136.19 	Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, or any other law 
136.20 	to the contrary, the city of Richfield and the Housing and Redevelopment Authority in and 
136.21 	for the city of Richfield may elect to extend the duration limit of the redevelopment tax 
136.22 	increment financing district known as the Cedar Avenue Tax Increment Financing District 
136.23 	established by Laws 2005, chapter 152, article 2, section 25, by ten years.

136.24 	EFFECTIVE DATE. This section is effective upon compliance by the city of Richfield, 
136.25 	Hennepin County, and Independent School District No. 280 with the requirements of 
136.26 	Minnesota Statutes, sections 469.1782, subdivision 2; and 645.021, subdivisions 2 and 3.

136.27 	Sec. 14. CITY OF ST. PAUL; TIF AUTHORITY.
 136.28 	(a) For purposes of computing the duration limits under Minnesota Statutes, section 
136.29 	469.176, subdivision 1b, the housing and redevelopment authority of the city of St. Paul 
136.30 	may waive receipt of increment for the Ford Site Redevelopment Tax Increment Financing 
137.1 	District. This authority is limited to the first four years of increment or increments derived 
137.2 	from taxes payable in 2023, whichever occurs first.
137.3 	(b) If the city elects to waive receipt of increment under paragraph (a), for purposes of 
137.4 	applying any limits based on when the district was certified under Minnesota Statutes, 
137.5 	section 469.176, subdivision 6, or 469.1763, the date of certification for the district is deemed 
137.6 	to be January 2 of the property tax assessment year for which increment is first received 
137.7 	under the waiver.

137.8 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2016, without 
137.9 	local approval under Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).

137.10 	ARTICLE 8
137.11 	PUBLIC FINANCE

137.12 	Section 1. Minnesota Statutes 2016, section 366.095, subdivision 1, is amended to read:
137.13 		Subdivision 1.Certificates of indebtedness. The town board may issue certificates of 
137.14 	indebtedness within the debt limits for a town purpose otherwise authorized by law. The 
137.15 	certificates shall be payable in not more than ten years and be issued on the terms and in 
137.16 	the manner as the board may determine, provided that notes issued for projects that eliminate 
137.17 	R-22, as such projects are defined in section 240A.09, paragraph (b), clause (2), shall be 
137.18 	payable in not more than 20 years. If the amount of the certificates to be issued exceeds 
137.19 	0.25 percent of the estimated market value of the town, they shall not be issued for at least 
137.20 	ten days after publication in a newspaper of general circulation in the town of the board's 
137.21 	resolution determining to issue them. If within that time, a petition asking for an election 
137.22 	on the proposition signed by voters equal to ten percent of the number of voters at the last 
137.23 	regular town election is filed with the clerk, the certificates shall not be issued until their 
137.24 	issuance has been approved by a majority of the votes cast on the question at a regular or 
137.25 	special election. A tax levy shall be made to pay the principal and interest on the certificates 
137.26 	as in the case of bonds.

137.27 	Sec. 2. Minnesota Statutes 2016, section 383B.117, subdivision 2, is amended to read:
137.28 		Subd. 2.Equipment acquisition; capital notes. The board may, by resolution and 
137.29 	without public referendum, issue capital notes within existing debt limits for the purpose 
137.30 	of purchasing ambulance and other medical equipment, road construction or maintenance 
137.31 	equipment, public safety equipment and other capital equipment having an expected useful 
137.32 	life at least equal to the term of the notes issued. The notes shall be payable in not more 
137.33 	than ten years and shall be issued on terms and in a manner as the board determines, provided 
138.1 	that notes issued for projects that eliminate R-22, as such projects are defined in section 
138.2 	240A.09, paragraph (b), clause (2), shall be payable in not more than 20 years. The total 
138.3 	principal amount of the notes issued for any fiscal year shall not exceed one percent of the 
138.4 	total annual budget for that year and shall be issued solely for the purchases authorized in 
138.5 	this subdivision. A tax levy shall be made for the payment of the principal and interest on 
138.6 	such notes as in the case of bonds. For purposes of this subdivision, "equipment" includes 
138.7 	computer hardware and software, whether bundled with machinery or equipment or 
138.8 	unbundled. For purposes of this subdivision, the term "medical equipment" includes computer 
138.9 	hardware and software and other intellectual property for use in medical diagnosis, medical 
138.10 	procedures, research, record keeping, billing, and other hospital applications, together with 
138.11 	application development services and training related to the use of the computer hardware 
138.12 	and software and other intellectual property, all without regard to their useful life. For 
138.13 	purposes of determining the amount of capital notes which the county may issue in any 
138.14 	year, the budget of the county and Hennepin Healthcare System, Inc. shall be combined 
138.15 	and the notes issuable under this subdivision shall be in addition to obligations issuable 
138.16 	under section 373.01, subdivision 3.

138.17 	Sec. 3. Minnesota Statutes 2016, section 410.32, is amended to read:
138.18 	410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.
138.19 	(a) Notwithstanding any contrary provision of other law or charter, a home rule charter 
138.20 	city may, by resolution and without public referendum, issue capital notes subject to the 
138.21 	city debt limit to purchase capital equipment.
138.22 	(b) For purposes of this section, "capital equipment" means:
138.23 	(1) public safety equipment, ambulance and other medical equipment, road construction 
138.24 	and maintenance equipment, and other capital equipment; and
138.25 	(2) computer hardware and software, whether bundled with machinery or equipment or 
138.26 	unbundled, together with application development services and training related to the use 
138.27 	of the computer hardware and software.
138.28 	(c) The equipment or software must have an expected useful life at least as long as the 
138.29 	term of the notes.
138.30 	(d) The notes shall be payable in not more than ten years and be issued on terms and in 
138.31 	the manner the city determines, provided that notes issued for projects that eliminate R-22, 
138.32 	as such projects are defined in section 240A.09, paragraph (b), clause (2), shall be payable 
138.33 	in not more than 20 years. The total principal amount of the capital notes issued in a fiscal 
139.1 	year shall not exceed 0.03 percent of the estimated market value of taxable property in the 
139.2 	city for that year.
139.3 	(e) A tax levy shall be made for the payment of the principal and interest on the notes, 
139.4 	in accordance with section 475.61, as in the case of bonds.
139.5 	(f) Notes issued under this section shall require an affirmative vote of two-thirds of the 
139.6 	governing body of the city.
139.7 	(g) Notwithstanding a contrary provision of other law or charter, a home rule charter 
139.8 	city may also issue capital notes subject to its debt limit in the manner and subject to the 
139.9 	limitations applicable to statutory cities pursuant to section 412.301.

139.10 	Sec. 4. Minnesota Statutes 2016, section 412.301, is amended to read:
139.11 	412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.
139.12 	(a) The council may issue certificates of indebtedness or capital notes subject to the city 
139.13 	debt limits to purchase capital equipment.
139.14 	(b) For purposes of this section, "capital equipment" means:
139.15 	(1) public safety equipment, ambulance and other medical equipment, road construction 
139.16 	and maintenance equipment, and other capital equipment; and
139.17 	(2) computer hardware and software, whether bundled with machinery or equipment or 
139.18 	unbundled, together with application development services and training related to the use 
139.19 	of the computer hardware or software.
139.20 	(c) The equipment or software must have an expected useful life at least as long as the 
139.21 	terms of the certificates or notes.
139.22 	(d) Such certificates or notes shall be payable in not more than ten years and shall be 
139.23 	issued on such terms and in such manner as the council may determine, provided, however, 
139.24 	that notes issued for projects that eliminate R-22, as such projects are defined in section 
139.25 	240A.09, paragraph (b), clause (2), shall be payable in not more than 20 years.
139.26 	(e) If the amount of the certificates or notes to be issued to finance any such purchase 
139.27 	exceeds 0.25 percent of the estimated market value of taxable property in the city, they shall 
139.28 	not be issued for at least ten days after publication in the official newspaper of a council 
139.29 	resolution determining to issue them; and if before the end of that time, a petition asking 
139.30 	for an election on the proposition signed by voters equal to ten percent of the number of 
139.31 	voters at the last regular municipal election is filed with the clerk, such certificates or notes 
140.1 	shall not be issued until the proposition of their issuance has been approved by a majority 
140.2 	of the votes cast on the question at a regular or special election.
140.3 	(f) A tax levy shall be made for the payment of the principal and interest on such 
140.4 	certificates or notes, in accordance with section 475.61, as in the case of bonds.

140.5 	Sec. 5. Minnesota Statutes 2016, section 469.034, subdivision 2, is amended to read:
140.6 		Subd. 2.General obligation revenue bonds. (a) An authority may pledge the general 
140.7 	obligation of the general jurisdiction governmental unit as additional security for bonds 
140.8 	payable from income or revenues of the project or the authority. The authority must find 
140.9 	that the pledged revenues will equal or exceed 110 percent of the principal and interest due 
140.10 	on the bonds for each year. The proceeds of the bonds must be used for a qualified housing 
140.11 	development project or projects. The obligations must be issued and sold in the manner and 
140.12 	following the procedures provided by chapter 475, except the obligations are not subject to 
140.13 	approval by the electors, and the maturities may extend to not more than 35 years for 
140.14 	obligations sold to finance housing for the elderly and 40 years for other obligations issued 
140.15 	under this subdivision. The authority is the municipality for purposes of chapter 475.
140.16 	(b) The principal amount of the issue must be approved by the governing body of the 
140.17 	general jurisdiction governmental unit whose general obligation is pledged. Public hearings 
140.18 	must be held on issuance of the obligations by both the authority and the general jurisdiction 
140.19 	governmental unit. The hearings must be held at least 15 days, but not more than 120 days, 
140.20 	before the sale of the obligations.
140.21 	(c) The maximum amount of general obligation bonds that may be issued and outstanding 
140.22 	under this section equals the greater of (1) one-half of one percent of the estimated market 
140.23 	value of the general jurisdiction governmental unit whose general obligation is pledged, or 
140.24 	(2) $3,000,000 $5,000,000. In the case of county or multicounty general obligation bonds, 
140.25 	the outstanding general obligation bonds of all cities in the county or counties issued under 
140.26 	this subdivision must be added in calculating the limit under clause (1).
140.27 	(d) "General jurisdiction governmental unit" means the city in which the housing 
140.28 	development project is located. In the case of a county or multicounty authority, the county 
140.29 	or counties may act as the general jurisdiction governmental unit. In the case of a multicounty 
140.30 	authority, the pledge of the general obligation is a pledge of a tax on the taxable property 
140.31 	in each of the counties.
140.32 	(e) "Qualified housing development project" means a housing development project 
140.33 	providing housing either for the elderly or for individuals and families with incomes not 
141.1 	greater than 80 percent of the median family income as estimated by the United States 
141.2 	Department of Housing and Urban Development for the standard metropolitan statistical 
141.3 	area or the nonmetropolitan county in which the project is located. The project must be 
141.4 	owned for the term of the bonds either by the authority or by a limited partnership or other 
141.5 	entity in which the authority or another entity under the sole control of the authority is the 
141.6 	sole general partner and the partnership or other entity must receive (1) an allocation from 
141.7 	the Department of Management and Budget or an entitlement issuer of tax-exempt bonding 
141.8 	authority for the project and a preliminary determination by the Minnesota Housing Finance 
141.9 	Agency or the applicable suballocator of tax credits that the project will qualify for four 
141.10 	percent low-income housing tax credits or (2) a reservation of nine percent low-income 
141.11 	housing tax credits from the Minnesota Housing Finance Agency or a suballocator of tax 
141.12 	credits for the project. A qualified housing development project may admit nonelderly 
141.13 	individuals and families with higher incomes if:
141.14 	(1) three years have passed since initial occupancy;
141.15 	(2) the authority finds the project is experiencing unanticipated vacancies resulting in 
141.16 	insufficient revenues, because of changes in population or other unforeseen circumstances 
141.17 	that occurred after the initial finding of adequate revenues; and
141.18 	(3) the authority finds a tax levy or payment from general assets of the general jurisdiction 
141.19 	governmental unit will be necessary to pay debt service on the bonds if higher income 
141.20 	individuals or families are not admitted.
141.21 	(f) The authority may issue bonds to refund bonds issued under this subdivision in 
141.22 	accordance with section 475.67. The finding of the adequacy of pledged revenues required 
141.23 	by paragraph (a) and the public hearing required by paragraph (b) shall not apply to the 
141.24 	issuance of refunding bonds. This paragraph applies to refunding bonds issued on and after 
141.25 	July 1, 1992.

141.26 	Sec. 6. Minnesota Statutes 2016, section 469.101, subdivision 1, is amended to read:
141.27 		Subdivision 1.Establishment. An economic development authority may create and 
141.28 	define the boundaries of economic development districts at any place or places within the 
141.29 	city, except that the district boundaries must be contiguous, and may use the powers granted 
141.30 	in sections 469.090 to 469.108 to carry out its purposes. First the authority must hold a 
141.31 	public hearing on the matter. At least ten days before the hearing, the authority shall publish 
141.32 	notice of the hearing in a daily newspaper of general circulation in the city. Also, the authority 
141.33 	shall find that an economic development district is proper and desirable to establish and 
141.34 	develop within the city.

142.1 	Sec. 7. Minnesota Statutes 2016, section 473.39, is amended by adding a subdivision to 
142.2 	read:
142.3 		Subd. 1u.Obligations. (a) In addition to other authority in this section, the council may 
142.4 	issue certificates of indebtedness, bonds, or other obligations under this section in an amount 
142.5 	not exceeding $82,100,000 for capital expenditures as prescribed in the council's transit 
142.6 	capital improvement program and for related costs, including the costs of issuance and sale 
142.7 	of the obligations. Of this authorization, after July 1, 2016, the council may issue certificates 
142.8 	of indebtedness, bonds, or other obligations in an amount not exceeding $40,100,000, and 
142.9 	after July 1, 2017, the council may issue certificates of indebtedness, bonds, or other 
142.10 	obligations in an additional amount not exceeding $42,000,000.
142.11 	(b) This section applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
142.12 	Scott, and Washington.

142.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

142.14 	Sec. 8. Minnesota Statutes 2016, section 475.58, subdivision 3b, is amended to read:
142.15 		Subd. 3b.Street reconstruction and bituminous overlays. (a) A municipality may, 
142.16 	without regard to the election requirement under subdivision 1, issue and sell obligations 
142.17 	for street reconstruction or bituminous overlays, if the following conditions are met:
142.18 	(1) the streets are reconstructed or overlaid under a street reconstruction or overlay plan 
142.19 	that describes the street reconstruction or overlay to be financed, the estimated costs, and 
142.20 	any planned reconstruction or overlay of other streets in the municipality over the next five 
142.21 	years, and the plan and issuance of the obligations has been approved by a vote of all a 
142.22 	majority of the members of the governing body present at the meeting following a public 
142.23 	hearing for which notice has been published in the official newspaper at least ten days but 
142.24 	not more than 28 days prior to the hearing; and
142.25 	(2) if a petition requesting a vote on the issuance is signed by voters equal to five percent 
142.26 	of the votes cast in the last municipal general election and is filed with the municipal clerk 
142.27 	within 30 days of the public hearing, the municipality may issue the bonds only after 
142.28 	obtaining the approval of a majority of the voters voting on the question of the issuance of 
142.29 	the obligations. If the municipality elects not to submit the question to the voters, the 
142.30 	municipality shall not propose the issuance of bonds under this section for the same purpose 
142.31 	and in the same amount for a period of 365 days from the date of receipt of the petition. If 
142.32 	the question of issuing the bonds is submitted and not approved by the voters, the provisions 
142.33 	of section 475.58, subdivision 1a, shall apply.
143.1 	(b) Obligations issued under this subdivision are subject to the debt limit of the 
143.2 	municipality and are not excluded from net debt under section 475.51, subdivision 4.
143.3 	(c) For purposes of this subdivision, street reconstruction and bituminous overlays 
143.4 	includes utility replacement and relocation and other activities incidental to the street 
143.5 	reconstruction, turn lanes and other improvements having a substantial public safety function, 
143.6 	realignments, other modifications to intersect with state and county roads, and the local 
143.7 	share of state and county road projects. For purposes of this subdivision, "street 
143.8 	reconstruction" includes expenditures for street reconstruction that have been incurred by 
143.9 	a municipality before approval of a street reconstruction plan, if such expenditures are 
143.10 	included in a street reconstruction plan approved on or before the date of the public hearing 
143.11 	under paragraph (a), clause (1), regarding issuance of bonds for such expenditures.
143.12 	(d) Except in the case of turn lanes, safety improvements, realignments, intersection 
143.13 	modifications, and the local share of state and county road projects, street reconstruction 
143.14 	and bituminous overlays does not include the portion of project cost allocable to widening 
143.15 	a street or adding curbs and gutters where none previously existed.

143.16 	Sec. 9. Minnesota Statutes 2016, section 475.60, subdivision 2, is amended to read:
143.17 		Subd. 2.Requirements waived. The requirements as to public sale shall not apply:
143.18 	(1) to obligations issued under the provisions of a home rule charter or of a law 
143.19 	specifically authorizing a different method of sale, or authorizing them to be issued in such 
143.20 	manner or on such terms and conditions as the governing body may determine;
143.21 	(2) to obligations sold by an issuer in an amount not exceeding the total sum of 
143.22 	$1,200,000 in any 12-month period;
143.23 	(3) to obligations issued by a governing body other than a school board in anticipation 
143.24 	of the collection of taxes or other revenues appropriated for expenditure in a single year, if 
143.25 	sold in accordance with the most favorable of two or more proposals solicited privately;
143.26 	(4) to obligations sold to any board, department, or agency of the United States of 
143.27 	America or of the state of Minnesota, in accordance with rules or regulations promulgated 
143.28 	by such board, department, or agency;
143.29 	(5) to obligations issued to fund pension and retirement fund liabilities under section 
143.30 	475.52, subdivision 6, obligations issued with tender options under section 475.54, 
143.31 	subdivision 5a, crossover refunding obligations referred to in section 475.67, subdivision 
143.32 	13, and any issue of obligations comprised in whole or in part of obligations bearing interest 
143.33 	at a rate or rates which vary periodically referred to in section 475.56;
144.1 	(6) to obligations to be issued for a purpose, in a manner, and upon terms and conditions 
144.2 	authorized by law, if the governing body of the municipality, on the advice of bond counsel 
144.3 	or special tax counsel, determines that interest on the obligations cannot be represented to 
144.4 	be excluded from gross income for purposes of federal income taxation;
144.5 	(7) to obligations issued in the form of an installment purchase contract, lease purchase 
144.6 	agreement, or other similar agreement;
144.7 	(8) to obligations sold under a bond reinvestment program; and
144.8 	(9) if the municipality has retained an independent financial municipal advisor, obligations 
144.9 	which the governing body determines shall be sold by private negotiation.

144.10 	ARTICLE 9
144.11 	IRON RANGE RESOURCES AND REHABILITATION

144.12 	Section 1. Minnesota Statutes 2016, section 15.38, subdivision 7, is amended to read:
144.13 		Subd. 7.Iron Range resources and rehabilitation Board. After seeking a 
144.14 	recommendation from the Iron Range Resources and Rehabilitation Board, the commissioner 
144.15 	of Iron Range resources and rehabilitation Board may purchase insurance it considers the 
144.16 	commissioner deems necessary and appropriate to insure facilities operated by the board.

144.17 	Sec. 2. Minnesota Statutes 2016, section 116J.424, is amended to read:
144.18 	116J.424 IRON RANGE RESOURCES AND REHABILITATION BOARD 
144.19 	CONTRIBUTION.
144.20 	The commissioner of the Iron Range resources and rehabilitation Board with approval 
144.21 	by the board, may provide an equal match for any loan or equity investment made for a 
144.22 	project located in the tax relief area defined in section 273.134, paragraph (b), by the 
144.23 	Minnesota 21st century fund created by section 116J.423. The match may be in the form 
144.24 	of a loan or equity investment, notwithstanding whether the fund makes a loan or equity 
144.25 	investment. The state shall not acquire an equity interest because of an equity investment 
144.26 	or loan by the board under this section and the board at its sole discretion commissioner, 
144.27 	after consultation with the Iron Range Resources and Rehabilitation Board, shall have the 
144.28 	sole discretion to decide what interest it the board acquires in a project. The commissioner 
144.29 	of employment and economic development may require a commitment from the board
144.30 	commissioner to make the match prior to disbursing money from the fund.

145.1 	Sec. 3. Minnesota Statutes 2016, section 216B.161, subdivision 1, is amended to read:
145.2 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
145.3 	the meanings given them in this subdivision.
145.4 	(b) "Area development rate" means a rate schedule established by a utility that provides 
145.5 	customers within an area development zone service under a base utility rate schedule, except 
145.6 	that charges may be reduced from the base rate as agreed upon by the utility and the customer 
145.7 	consistent with this section.
145.8 	(c) "Area development zone" means a contiguous or noncontiguous area designated by 
145.9 	an authority or municipality for development or redevelopment and within which one of 
145.10 	the following conditions exists:
145.11 	(1) obsolete buildings not suitable for improvement or conversion or other identified 
145.12 	hazards to the health, safety, and general well-being of the community;
145.13 	(2) buildings in need of substantial rehabilitation or in substandard condition; or
145.14 	(3) low values and damaged investments.
145.15 	(d) "Authority" means a rural development financing authority established under sections 
145.16 	469.142 to 469.151; a housing and redevelopment authority established under sections 
145.17 	469.001 to 469.047; a port authority established under sections 469.048 to 469.068; an 
145.18 	economic development authority established under sections 469.090 to 469.108; a 
145.19 	redevelopment agency as defined in sections 469.152 to 469.165; the commissioner of Iron 
145.20 	Range resources and rehabilitation, acting after consultation with the board established 
145.21 	under section 298.22; a municipality that is administering a development district created 
145.22 	under sections 469.124 to 469.133 or any special law; a municipality that undertakes a 
145.23 	project under sections 469.152 to 469.165, except a town located outside the metropolitan 
145.24 	area as defined in section 473.121, subdivision 2, or with a population of 5,000 persons or 
145.25 	less; or a municipality that exercises the powers of a port authority under any general or 
145.26 	special law.
145.27 	(e) "Municipality" means a city, however organized, and, with respect to a project 
145.28 	undertaken under sections 469.152 to 469.165, "municipality" has the meaning given in 
145.29 	sections 469.152 to 469.165, and, with respect to a project undertaken under sections 469.142
145.30 	to 469.151 or a county or multicounty project undertaken under sections 469.004 to 469.008, 
145.31 	also includes any county.

146.1 	Sec. 4. Minnesota Statutes 2016, section 276A.01, subdivision 8, is amended to read:
146.2 		Subd. 8.Municipality. "Municipality" means a city, town, or township located in whole 
146.3 	or part within the area. If a municipality is located partly within and partly without the area, 
146.4 	the references in sections 276A.01 to 276A.09 to property or any portion thereof subject to 
146.5 	taxation or taxing jurisdiction within the municipality are to the property or portion thereof 
146.6 	that is located in that portion of the municipality within the area, except that the fiscal 
146.7 	capacity of the municipality must be computed upon the basis of the valuation and population 
146.8 	of the entire municipality. A municipality shall be excluded from the area if its municipal 
146.9 	comprehensive zoning and planning policies conscientiously exclude most 
146.10 	commercial-industrial development, for reasons other than preserving an agricultural use. 
146.11 	The commissioner of Iron Range resources and rehabilitation Board and the commissioner 
146.12 	of revenue shall jointly make this determination annually and shall notify those municipalities 
146.13 	that are ineligible to participate in the tax base sharing program provided in this chapter for 
146.14 	the following year. Before making the joint determination, the commissioner of Iron Range 
146.15 	resources and rehabilitation shall seek a recommendation from the Iron Range Resources 
146.16 	and Rehabilitation Board.

146.17 	Sec. 5. Minnesota Statutes 2016, section 276A.01, subdivision 17, is amended to read:
146.18 		Subd. 17.School fund allocation. (a) "School fund allocation" means an amount up to 
146.19 	25 percent of the areawide levy certified by the commissioner of Iron Range resources and 
146.20 	rehabilitation, after seeking a recommendation from the Iron Range Resources and 
146.21 	Rehabilitation Board, to be used for the purposes of the Iron Range school consolidation 
146.22 	and cooperatively operated school account under section 298.28, subdivision 7a.
146.23 	(b) The allocation under paragraph (a) shall only be made after the commissioner of 
146.24 	Iron Range resources and rehabilitation, after seeking a recommendation from the Iron 
146.25 	Range Resources and Rehabilitation Board, has certified by June 30 that the Iron Range 
146.26 	school consolidation and cooperatively operated account has insufficient funds to make 
146.27 	payments as authorized under section 298.28, subdivision 7a.

146.28 	Sec. 6. Minnesota Statutes 2016, section 282.38, subdivision 1, is amended to read:
146.29 		Subdivision 1.Development. In any county where the county board by proper resolution 
146.30 	sets aside funds for forest development pursuant to section 282.08, clause (5), item (i), or 
146.31 	section 459.06, subdivision 2, the commissioner of Iron Range resources and rehabilitation 
146.32 	with the approval of the, after seeking a recommendation from the Iron Range Resources 
146.33 	and Rehabilitation Board, may upon request of the county board assist said county in carrying 
147.1 	out any project for the long range development of its forest resources through matching of 
147.2 	funds or otherwise.

147.3 	Sec. 7. Minnesota Statutes 2016, section 298.001, subdivision 8, is amended to read:
147.4 		Subd. 8.Commissioner. "Commissioner" means the commissioner of revenue of the 
147.5 	state of Minnesota, except that when used in sections 298.22 to 298.227, and 298.291 to 
147.6 	298.298, "commissioner" means the commissioner of Iron Range resources and rehabilitation.

147.7 	Sec. 8. Minnesota Statutes 2016, section 298.22, subdivision 1, is amended to read:
147.8 		Subdivision 1.The Office of the Commissioner of Iron Range Resources and 
147.9 	Rehabilitation. (a) The Office of the Commissioner of Iron Range Resources and 
147.10 	Rehabilitation is created as an agency in the executive branch of state government. The 
147.11 	governor shall appoint the commissioner of Iron Range resources and rehabilitation under 
147.12 	section 15.06. The commissioner may expend amounts appropriated to the commissioner 
147.13 	or the board for projects after submitting the expenditure to the board for a recommendation 
147.14 	under subdivision 1a.
147.15 	(b) The commissioner may hold other positions or appointments that are not incompatible 
147.16 	with duties as commissioner of Iron Range resources and rehabilitation. The commissioner 
147.17 	may appoint a deputy commissioner. All expenses of the commissioner, including the 
147.18 	payment of staff and other assistance as may be necessary, must be paid out of the amounts 
147.19 	appropriated by section 298.28 or otherwise made available by law to the commissioner. 
147.20 	Notwithstanding chapters 16A, 16B, and 16C, the commissioner may utilize contracting 
147.21 	options available under section 471.345 when the commissioner determines it is in the best 
147.22 	interest of the agency. The agency is not subject to sections 16E.016 and 16C.05.
147.23 	(c) When the commissioner determines that distress and unemployment exists or may 
147.24 	exist in the future in any county by reason of the removal of natural resources or a possibly 
147.25 	limited use of natural resources in the future and any resulting decrease in employment, the 
147.26 	commissioner may use whatever amounts of the appropriation made to the commissioner 
147.27 	of revenue in section 298.28 that are determined to be necessary and proper in the 
147.28 	development of the remaining resources of the county and in the vocational training and 
147.29 	rehabilitation of its residents, except that the amount needed to cover cost overruns awarded 
147.30 	to a contractor by an arbitrator in relation to a contract awarded by the commissioner or in 
147.31 	effect after July 1, 1985, is appropriated from the general fund. For the purposes of this 
147.32 	section, "development of remaining resources" includes, but is not limited to, the promotion 
147.33 	of tourism.

148.1 	Sec. 9. Minnesota Statutes 2016, section 298.22, subdivision 1a, is amended to read:
148.2 		Subd. 1a.Iron Range Resources and Rehabilitation Board. The Iron Range Resources 
148.3 	and Rehabilitation Board consists of the state senators and representatives elected from state 
148.4 	senatorial or legislative districts in which one-third or more of the residents reside in a 
148.5 	taconite assistance area as defined in section 273.1341. One additional state senator shall 
148.6 	also be appointed by the senate Subcommittee on Committees of the Committee on Rules 
148.7 	and Administration. All expenditures and projects made by the commissioner shall first be 
148.8 	submitted to the board for approval. The board shall recommend approval or disapproval 
148.9 	or modification of the expenditures and projects. The expenses of the board shall be paid 
148.10 	by the state from the funds raised pursuant to this section. Members of the board may be 
148.11 	reimbursed for expenses in the manner provided in sections 3.099, subdivision 1, and 3.101, 
148.12 	and may receive per diem payments during the interims between legislative sessions in the 
148.13 	manner provided in section 3.099, subdivision 1.
148.14 	The members shall be appointed in January of every odd-numbered year, and shall serve 
148.15 	until January of the next odd-numbered year. Vacancies on the board shall be filled in the 
148.16 	same manner as original members were chosen.

148.17 	Sec. 10. Minnesota Statutes 2016, section 298.22, subdivision 5a, is amended to read:
148.18 		Subd. 5a.Forest trust. The commissioner, upon approval by after requesting a 
148.19 	recommendation from the board, may purchase forest lands in the taconite assistance area 
148.20 	defined in under section 273.1341 with funds specifically authorized for the purchase. The 
148.21 	acquired forest lands must be held in trust for the benefit of the citizens of the taconite 
148.22 	assistance area as the Iron Range Miners' Memorial Forest. The forest trust lands shall be 
148.23 	managed and developed for recreation and economic development purposes. The 
148.24 	commissioner, upon approval by after requesting a recommendation from the board, may 
148.25 	sell forest lands purchased under this subdivision if the board finds commissioner determines
148.26 	that the sale advances the purposes of the trust. Proceeds derived from the management or 
148.27 	sale of the lands and from the sale of timber or removal of gravel or other minerals from 
148.28 	these forest lands shall be deposited into an Iron Range Miners' Memorial Forest account 
148.29 	that is established within the state financial accounts. Funds may be expended from the 
148.30 	account upon approval by after the commissioner has sought a recommendation from the 
148.31 	board, to purchase, manage, administer, convey interests in, and improve the forest lands. 
148.32 	With approval by After the commissioner has sought a recommendation from the board, 
148.33 	money in the Iron Range Miners' Memorial Forest account may be transferred into the 
148.34 	corpus of the Douglas J. Johnson economic protection trust fund established under sections 
149.1 	298.291 to 298.294. The property acquired under the authority granted by this subdivision 
149.2 	and income derived from the property or the operation or management of the property are 
149.3 	exempt from taxation by the state or its political subdivisions while held by the forest trust.

149.4 	Sec. 11. Minnesota Statutes 2016, section 298.22, subdivision 6, is amended to read:
149.5 		Subd. 6.Private entity participation. After seeking a recommendation from the board, 
149.6 	the commissioner may acquire an equity interest in any project for which it the commissioner
149.7 	provides funding. The commissioner may establish, participate in the management of, and 
149.8 	dispose of the assets of charitable foundations, nonprofit limited liability companies, and 
149.9 	nonprofit corporations associated with any project for which it provides funding, including 
149.10 	specifically, but without limitation, a corporation within the meaning of section 317A.011, 
149.11 	subdivision 6.

149.12 	Sec. 12. Minnesota Statutes 2016, section 298.22, subdivision 8, is amended to read:
149.13 		Subd. 8.Spending priority. In making or approving recommending any expenditures 
149.14 	on programs or projects, the commissioner and the board shall give the highest priority to 
149.15 	programs and projects that target relief to those areas of the taconite assistance area as 
149.16 	defined in section 273.1341, that have the largest percentages of job losses and population 
149.17 	losses directly attributable to the economic downturn in the taconite industry since the 1980s. 
149.18 	The commissioner and the board shall compare the 1980 population and employment figures 
149.19 	with the 2000 population and employment figures, and shall specifically consider the job 
149.20 	losses in 2000 and 2001 resulting from the closure of LTV Steel Mining Company, in 
149.21 	making or approving recommending expenditures consistent with this subdivision, as well 
149.22 	as the areas of residence of persons who suffered job loss for which relief is to be targeted 
149.23 	under this subdivision. The commissioner may lease, for a term not exceeding 50 years and 
149.24 	upon the terms determined by the commissioner and approved after seeking review by the 
149.25 	board, surface and mineral interests owned or acquired by the state of Minnesota acting by 
149.26 	and through the office of the commissioner of Iron Range resources and rehabilitation within 
149.27 	those portions of the taconite assistance area affected by the closure of the LTV Steel Mining 
149.28 	Company facility near Hoyt Lakes. The payments and royalties from these leases must be 
149.29 	deposited into the fund established in section 298.292. This subdivision supersedes any 
149.30 	other conflicting provisions of law and does not preclude the commissioner and the board
149.31 	from making expenditures for programs and projects in other areas after seeking review by 
149.32 	the board.

150.1 	Sec. 13. Minnesota Statutes 2016, section 298.22, subdivision 10, is amended to read:
150.2 		Subd. 10.Sale or privatization of functions. The commissioner of Iron Range resources 
150.3 	and rehabilitation may not sell or privatize the Ironworld Discovery Center or Giants Ridge 
150.4 	Golf and Ski Resort without prior approval byfirst seeking a recommendation from the 
150.5 	board.

150.6 	Sec. 14. Minnesota Statutes 2016, section 298.22, subdivision 11, is amended to read:
150.7 		Subd. 11.Budgeting. The commissioner of Iron Range resources and rehabilitation 
150.8 	shall annually prepare a budget for operational expenditures, programs, and projects, and 
150.9 	submit it to the Iron Range Resources and Rehabilitation Board for a recommendation. 
150.10 	After the budget is approved by the board and the governor, the commissioner may spend 
150.11 	money in accordance with the approved budget.

150.12 	Sec. 15. Minnesota Statutes 2016, section 298.221, is amended to read:
150.13 	298.221 RECEIPTS FROM CONTRACTS; APPROPRIATION.
150.14 	(a) Except as provided in paragraph (c), all money paid to the state of Minnesota pursuant 
150.15 	to the terms of any contract entered into by the state under authority of section 298.22 and 
150.16 	any fees which may, in the discretion of the commissioner of Iron Range resources and 
150.17 	rehabilitation, be charged in connection with any project pursuant to that section as amended, 
150.18 	shall be deposited in the state treasury to the credit of the Iron Range Resources and 
150.19 	Rehabilitation Board account in the special revenue fund and are hereby appropriated for 
150.20 	the purposes of section 298.22.
150.21 	(b) Notwithstanding section 16A.013, merchandise may be accepted by the commissioner 
150.22 	of the Iron Range Resources and Rehabilitation Board for payment of advertising contracts 
150.23 	if the commissioner determines that the merchandise can be used for special event prizes 
150.24 	or mementos at facilities operated by the board. Nothing in this paragraph authorizes the 
150.25 	commissioner or a member of the board to receive merchandise for personal use.
150.26 	(c) All fees charged by the commissioner in connection with public use of the state-owned 
150.27 	ski and golf facilities at the Giants Ridge Recreation Area and all other revenues derived 
150.28 	by the commissioner from the operation or lease of those facilities and from the lease, sale, 
150.29 	or other disposition of undeveloped lands at the Giants Ridge Recreation Area must be 
150.30 	deposited into an Iron Range Resources and Rehabilitation Board account that is created 
150.31 	within the state enterprise fund. All funds deposited in the enterprise fund account are 
151.1 	appropriated to the commissioner to be expended, subject to approval by after seeking a 
151.2 	recommendation from the board, as follows:
151.3 	(1) to pay costs associated with the construction, equipping, operation, repair, or 
151.4 	improvement of the Giants Ridge Recreation Area facilities or lands;
151.5 	(2) to pay principal, interest and associated bond issuance, reserve, and servicing costs 
151.6 	associated with the financing of the facilities; and
151.7 	(3) to pay the costs of any other project authorized under section 298.22.

151.8 	Sec. 16. Minnesota Statutes 2016, section 298.2211, subdivision 3, is amended to read:
151.9 		Subd. 3.Project approval. All projects authorized by this section shall be submitted 
151.10 	by the commissioner to the Iron Range Resources and Rehabilitation Board for approval 
151.11 	by a recommendation from the board. Prior to the commencement of a project involving 
151.12 	the exercise by the commissioner of any authority of sections 469.174 to 469.179, the 
151.13 	governing body of each municipality in which any part of the project is located and the 
151.14 	county board of any county containing portions of the project not located in an incorporated 
151.15 	area shall by majority vote approve or disapprove the project. Any project approved by the 
151.16 	board commissioner and the applicable governing bodies, if any, together with detailed 
151.17 	information concerning the project, its costs, the sources of its funding, and the amount of 
151.18 	any bonded indebtedness to be incurred in connection with the project, shall be transmitted 
151.19 	to the governor, who shall approve, disapprove, or return the proposal for additional 
151.20 	consideration within 30 days of receipt. No project authorized under this section shall be 
151.21 	undertaken, and no obligations shall be issued and no tax increments shall be expended for 
151.22 	a project authorized under this section until the project has been approved by the governor.

151.23 	Sec. 17. Minnesota Statutes 2016, section 298.2213, subdivision 4, is amended to read:
151.24 		Subd. 4.Project approval. After seeking a recommendation from the board and, the
151.25 	commissioner shall by August 1 each year prepare a list of projects to be funded from the 
151.26 	money appropriated in this section with necessary supporting information including 
151.27 	descriptions of the projects, plans, and cost estimates. A project must not be approved by 
151.28 	the board commissioner unless itthe commissioner finds that:
151.29 	(1) the project will materially assist, directly or indirectly, the creation of additional 
151.30 	long-term employment opportunities;
151.31 	(2) the prospective benefits of the expenditure exceed the anticipated costs; and
152.1 	(3) in the case of assistance to private enterprise, the project will serve a sound business 
152.2 	purpose.
152.3 	Each project must be approved by the board and the commissioner of Iron Range 
152.4 	resources and rehabilitation. The list of projects must be submitted to the governor, who 
152.5 	shall, by November 15 of each year, approve, disapprove, or return for further consideration, 
152.6 	each project. The money for a project may be spent only upon approval of the project by 
152.7 	the governor. The board commissioner may submit supplemental projects for approval at 
152.8 	any time, after seeking a recommendation from the board.

152.9 	Sec. 18. Minnesota Statutes 2016, section 298.2213, subdivision 5, is amended to read:
152.10 		Subd. 5.Advisory committees. Before submission to the board of a proposal for a 
152.11 	project for expenditure of money appropriated under this section, The commissioner of Iron 
152.12 	Range resources and rehabilitation shall appoint a technical advisory committee consisting 
152.13 	of at least seven persons who are knowledgeable in areas related to the objectives of the 
152.14 	proposal. If the project involves investment in a scientific research proposal, at least four 
152.15 	of the committee members must be knowledgeable in the specific scientific research area 
152.16 	relating to the project. Members of the committees must be compensated as provided in 
152.17 	section 15.059, subdivision 3. The board commissioner shall not act on a proposal for a 
152.18 	request for expenditure of money appropriated under this section until it has receivedthe 
152.19 	commissioner has sought review from the board of the evaluation and recommendations of 
152.20 	the technical advisory committee.

152.21 	Sec. 19. Minnesota Statutes 2016, section 298.2213, subdivision 6, is amended to read:
152.22 		Subd. 6.Use of repayments and earnings. Principal and interest received in repayment 
152.23 	of loans made under this section must be deposited in the state treasury and are appropriated 
152.24 	to the board for the purposes of this section northeast Minnesota economic development 
152.25 	fund account in the special revenue fund in the state treasury. The commissioner of Iron 
152.26 	Range resources and rehabilitation must seek a recommendation from the Iron Range 
152.27 	Resources and Rehabilitation Board for any use of funds appropriated under this section.

152.28 	Sec. 20. Minnesota Statutes 2016, section 298.223, subdivision 1, is amended to read:
152.29 		Subdivision 1.Creation; purposes. A fund called the taconite environmental protection 
152.30 	fund is created for the purpose of reclaiming, restoring and enhancing those areas of northeast 
152.31 	Minnesota located within the taconite assistance area defined in section 273.1341, that are 
152.32 	adversely affected by the environmentally damaging operations involved in mining taconite 
153.1 	and iron ore and producing iron ore concentrate and for the purpose of promoting the 
153.2 	economic development of northeast Minnesota. The taconite environmental protection fund 
153.3 	shall be used for the following purposes:
153.4 	(1) to initiate investigations into matters the Iron Range Resources and Rehabilitation 
153.5 	Board determines are in need of study and which will determine the environmental problems 
153.6 	requiring remedial action;
153.7 	(2) reclamation, restoration, or reforestation of mine lands not otherwise provided for 
153.8 	by state law;
153.9 	(3) local economic development projects but only if those projects are approved by the 
153.10 	commissioner after seeking a recommendation of the projects from the board, and public 
153.11 	works, including construction of sewer and water systems located within the taconite 
153.12 	assistance area defined in section 273.1341;
153.13 	(4) monitoring of mineral industry related health problems among mining employees; 
153.14 	and
153.15 	(5) local public works projects under section 298.227, paragraph (c).

153.16 	Sec. 21. Minnesota Statutes 2016, section 298.223, subdivision 2, is amended to read:
153.17 		Subd. 2.Administration. (a) The taconite area environmental protection fund shall be 
153.18 	administered by the commissioner of the Iron Range Resources and Rehabilitation Board. 
153.19 	The commissioner shall by September 1 of each year submit to the board a list of projects 
153.20 	to be funded from the taconite area environmental protection fund, with such supporting 
153.21 	information including description of the projects, plans, and cost estimates as may be 
153.22 	necessary.
153.23 	(b) Each year no less than one-half of the amounts deposited into the taconite 
153.24 	environmental protection fund must be used for public works projects, including construction 
153.25 	of sewer and water systems, as specified under subdivision 1, clause (3). After seeking a 
153.26 	recommendation from the Iron Range Resources and Rehabilitation Board, the commissioner
153.27 	may waive the requirements of this paragraph.
153.28 	(c) Upon approval by the board, The list of projects approved by the commissioner under 
153.29 	this subdivision, after the commissioner has sought review of the projects by the board,
153.30 	shall be submitted to the governor by November 1 of each year. By December 1 of each 
153.31 	year, the governor shall approve or disapprove, or return for further consideration, each 
153.32 	project. Funds for a project may be expended only upon approval of the project by the board
153.33 	commissioner and the governor. The commissioner may submit supplemental projects to 
154.1 	the board andfor approval from the governor for approvalafter seeking review of the 
154.2 	supplemental projects from the board at any time.

154.3 	Sec. 22. Minnesota Statutes 2016, section 298.227, is amended to read:
154.4 	298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
154.5 	(a) An amount equal to that distributed pursuant to each taconite producer's taxable 
154.6 	production and qualifying sales under section 298.28, subdivision 9a, shall be held by the 
154.7 	Iron Range Resources and Rehabilitation Board in a separate taconite economic development 
154.8 	fund for each taconite and direct reduced ore producer. Money from the fund for each 
154.9 	producer shall be released by the commissioner after review by a joint committee consisting 
154.10 	of an equal number of representatives of the salaried employees and the nonsalaried 
154.11 	production and maintenance employees of that producer. The District 11 director of the 
154.12 	United States Steelworkers of America, on advice of each local employee president, shall 
154.13 	select the employee members. In nonorganized operations, the employee committee shall 
154.14 	be elected by the nonsalaried production and maintenance employees. The review must be 
154.15 	completed no later than six months after the producer presents a proposal for expenditure 
154.16 	of the funds to the committee. The funds held pursuant to this section may be released only 
154.17 	for workforce development and associated public facility improvement, or for acquisition 
154.18 	of plant and stationary mining equipment and facilities for the producer or for research and 
154.19 	development in Minnesota on new mining, or taconite, iron, or steel production technology, 
154.20 	but only if the producer provides a matching expenditure equal to the amount of the 
154.21 	distribution to be used for the same purpose beginning with distributions in 2014. Effective 
154.22 	for proposals for expenditures of money from the fund beginning May 26, 2007, the 
154.23 	commissioner may not release the funds before the next scheduled meeting of the board. If 
154.24 	a proposed expenditure is not approved by the commissioner, after seeking a recommendation 
154.25 	from the board, the funds must be deposited in the Taconite Environmental Protection Fund 
154.26 	under sections 298.222 to 298.225. If a producer uses money which has been released from 
154.27 	the fund prior to May 26, 2007 to procure haulage trucks, mobile equipment, or mining 
154.28 	shovels, and the producer removes the piece of equipment from the taconite tax relief area 
154.29 	defined in section 273.134 within ten years from the date of receipt of the money from the 
154.30 	fund, a portion of the money granted from the fund must be repaid to the taconite economic 
154.31 	development fund. The portion of the money to be repaid is 100 percent of the grant if the 
154.32 	equipment is removed from the taconite tax relief area within 12 months after receipt of the 
154.33 	money from the fund, declining by ten percent for each of the subsequent nine years during 
154.34 	which the equipment remains within the taconite tax relief area. If a taconite production 
154.35 	facility is sold after operations at the facility had ceased, any money remaining in the fund 
155.1 	for the former producer may be released to the purchaser of the facility on the terms otherwise 
155.2 	applicable to the former producer under this section. If a producer fails to provide matching 
155.3 	funds for a proposed expenditure within six months after the commissioner approves release 
155.4 	of the funds, the funds are available for release to another producer in proportion to the 
155.5 	distribution provided and under the conditions of this section. Any portion of the fund which 
155.6 	is not released by the commissioner within one year of its deposit in the fund shall be divided 
155.7 	between the taconite environmental protection fund created in section 298.223 and the 
155.8 	Douglas J. Johnson economic protection trust fund created in section 298.292 for placement 
155.9 	in their respective special accounts. Two-thirds of the unreleased funds shall be distributed 
155.10 	to the taconite environmental protection fund and one-third to the Douglas J. Johnson 
155.11 	economic protection trust fund.
155.12 	(b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of 
155.13 	distributions and the review process, an amount equal to ten cents per taxable ton of 
155.14 	production in 2007, for distribution in 2008 only, that would otherwise be distributed under 
155.15 	paragraph (a), may be used for a loan or grant for the cost of providing for a value-added 
155.16 	wood product facility located in the taconite tax relief area and in a county that contains a 
155.17 	city of the first class. This amount must be deducted from the distribution under paragraph 
155.18 	(a) for which a matching expenditure by the producer is not required. The granting of the 
155.19 	loan or grant is subject to approval by the commissioner, after seeking a recommendation 
155.20 	from the board. If the money is provided as a loan, interest must be payable on the loan at 
155.21 	the rate prescribed in section 298.2213, subdivision 3. (ii) Repayments of the loan and 
155.22 	interest, if any, must be deposited in the taconite environment protection fund under sections 
155.23 	298.222 to 298.225. If a loan or grant is not made under this paragraph by July 1, 2012, the 
155.24 	amount that had been made available for the loan under this paragraph must be transferred 
155.25 	to the taconite environment protection fund under sections 298.222 to 298.225. (iii) Money 
155.26 	distributed in 2008 to the fund established under this section that exceeds ten cents per ton 
155.27 	is available to qualifying producers under paragraph (a) on a pro rata basis.
155.28 	(c) Repayment or transfer of money to the taconite environmental protection fund under 
155.29 	paragraph (b), item (ii), must be allocated by the commissioner of Iron Range resources 
155.30 	and rehabilitation, after seeking a recommendation from the Iron Range Resources and 
155.31 	Rehabilitation Board for public works projects in house legislative districts in the same 
155.32 	proportion as taxable tonnage of production in 2007 in each house legislative district, for 
155.33 	distribution in 2008, bears to total taxable tonnage of production in 2007, for distribution 
155.34 	in 2008. Notwithstanding any other law to the contrary, expenditures under this paragraph 
156.1 	do not require approval by the governor. For purposes of this paragraph, "house legislative 
156.2 	districts" means the legislative districts in existence on May 15, 2009.

156.3 	Sec. 23. Minnesota Statutes 2016, section 298.28, subdivision 7a, is amended to read:
156.4 		Subd. 7a.Iron Range school consolidation and cooperatively operated school account.
 156.5 	(a) The following amounts must be allocated to the Iron Range Resources and Rehabilitation 
156.6 	Board to be deposited in the Iron Range school consolidation and cooperatively operated 
156.7 	school account that is hereby created:
156.8 	(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax imposed 
156.9 	under section 298.24; and
156.10 	(ii) for distributions beginning in 2024, five cents per taxable ton of the tax imposed 
156.11 	under section 298.24;
156.12 	(2) the amount as determined under section 298.17, paragraph (b), clause (3);
156.13 	(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax 
156.14 	proceeds attributable to the increase in the implicit price deflator as provided in section 
156.15 	298.24, subdivision 1, with the remaining one-third to be distributed to the Douglas J. 
156.16 	Johnson economic protection trust fund;
156.17 	(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the increased 
156.18 	tax proceeds attributable to the increase in the implicit price deflator as provided in section 
156.19 	298.24, subdivision 1, for distribution years 2015 and 2016, with the remaining one-third 
156.20 	to be distributed to the Douglas J. Johnson economic protection trust fund; and
156.21 	(iii) for distributions in 2017, an amount equal to two-thirds of the sum of the increased 
156.22 	tax proceeds attributable to the increase in the implicit price deflator as provided in section 
156.23 	298.24, subdivision 1, for distribution years 2015, 2016, and 2017, with the remaining 
156.24 	one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and
156.25 	(4) any other amount as provided by law.
156.26 	(b) Expenditures from this account may be approved as ongoing annual expenditures 
156.27 	and shall be made only to provide disbursements to assist school districts with the payment 
156.28 	of bonds that were issued for qualified school projects, or for any other school disbursement 
156.29 	as approved by the commissioner of Iron Range resources and rehabilitation after the 
156.30 	commissioner of Iron Range resources and rehabilitation has sought review of the 
156.31 	expenditures by the Iron Range Resources and Rehabilitation Board. For purposes of this 
156.32 	section, "qualified school projects" means school projects within the taconite assistance 
157.1 	area as defined in section 273.1341, that were (1) approved, by referendum, after April 3, 
157.2 	2006; and (2) approved by the commissioner of education pursuant to section 123B.71.
157.3 	(c) Beginning in fiscal year 2019, the disbursement to school districts for payments for 
157.4 	bonds issued under section 123A.482, subdivision 9, must be increased each year to offset 
157.5 	any reduction in debt service equalization aid that the school district qualifies for in that 
157.6 	year, under section 123B.53, subdivision 6, compared with the amount the school district 
157.7 	qualified for in fiscal year 2018.
157.8 	(d) No expenditure under this section shall be made unless approved by seven members 
157.9 	of the commissioner of Iron Range resources and rehabilitation after seeking review of the 
157.10 	expenditure from the Iron Range Resources and Rehabilitation Board.

157.11 	Sec. 24. Minnesota Statutes 2016, section 298.28, subdivision 9d, is amended to read:
157.12 		Subd. 9d.Iron Range higher education account. Five cents per taxable ton must be 
157.13 	allocated to the Iron Range Resources and Rehabilitation Board to be deposited in an Iron 
157.14 	Range higher education account that is hereby created, to be used for higher education 
157.15 	programs conducted at educational institutions in the taconite assistance area defined in 
157.16 	section 273.1341. The Iron Range Higher Education committee under section 298.2214,
157.17 	and the Iron Range Resources and Rehabilitation Board commissioner of Iron Range 
157.18 	resources and rehabilitation must approve all expenditures from the account, after seeking 
157.19 	review and recommendation of the expenditures from the Iron Range Resources and 
157.20 	Rehabilitation Board.

157.21 	Sec. 25. Minnesota Statutes 2016, section 298.292, subdivision 2, is amended to read:
157.22 		Subd. 2.Use of money. Money in the Douglas J. Johnson economic protection trust 
157.23 	fund may be used for the following purposes:
157.24 	(1) to provide loans, loan guarantees, interest buy-downs and other forms of participation 
157.25 	with private sources of financing, but a loan to a private enterprise shall be for a principal 
157.26 	amount not to exceed one-half of the cost of the project for which financing is sought, and 
157.27 	the rate of interest on a loan to a private enterprise shall be no less than the lesser of eight 
157.28 	percent or an interest rate three percentage points less than a full faith and credit obligation 
157.29 	of the United States government of comparable maturity, at the time that the loan is approved;
157.30 	(2) to fund reserve accounts established to secure the payment when due of the principal 
157.31 	of and interest on bonds issued pursuant to section 298.2211;
158.1 	(3) to pay in periodic payments or in a lump-sum payment any or all of the interest on 
158.2 	bonds issued pursuant to chapter 474 for the purpose of constructing, converting, or 
158.3 	retrofitting heating facilities in connection with district heating systems or systems utilizing 
158.4 	alternative energy sources;
158.5 	(4) to invest in a venture capital fund or enterprise that will provide capital to other 
158.6 	entities that are engaging in, or that will engage in, projects or programs that have the 
158.7 	purposes set forth in subdivision 1. No investments may be made in a venture capital fund 
158.8 	or enterprise unless at least two other unrelated investors make investments of at least 
158.9 	$500,000 in the venture capital fund or enterprise, and the investment by the Douglas J. 
158.10 	Johnson economic protection trust fund may not exceed the amount of the largest investment 
158.11 	by an unrelated investor in the venture capital fund or enterprise. For purposes of this 
158.12 	subdivision, an "unrelated investor" is a person or entity that is not related to the entity in 
158.13 	which the investment is made or to any individual who owns more than 40 percent of the 
158.14 	value of the entity, in any of the following relationships: spouse, parent, child, sibling, 
158.15 	employee, or owner of an interest in the entity that exceeds ten percent of the value of all 
158.16 	interests in it. For purposes of determining the limitations under this clause, the amount of 
158.17 	investments made by an investor other than the Douglas J. Johnson economic protection 
158.18 	trust fund is the sum of all investments made in the venture capital fund or enterprise during 
158.19 	the period beginning one year before the date of the investment by the Douglas J. Johnson 
158.20 	economic protection trust fund; and
158.21 	(5) to purchase forest land in the taconite assistance area defined in section 273.1341 to 
158.22 	be held and managed as a public trust for the benefit of the area for the purposes authorized 
158.23 	in section 298.22, subdivision 5a. Property purchased under this section may be sold by the 
158.24 	commissioner upon approval by after seeking a recommendation from the board. The net 
158.25 	proceeds must be deposited in the trust fund for the purposes and uses of this section.
158.26 	Money from the trust fund shall be expended only in or for the benefit of the taconite 
158.27 	assistance area defined in section 273.1341.

158.28 	Sec. 26. Minnesota Statutes 2016, section 298.296, subdivision 1, is amended to read:
158.29 		Subdivision 1.Project approval. (a) The commissioner of Iron Range resources and 
158.30 	rehabilitation, after seeking a recommendation from the board and commissioner, shall by 
158.31 	August 1 of each year prepare a list of projects to be funded from the Douglas J. Johnson 
158.32 	economic protection trust with necessary supporting information including description of 
158.33 	the projects, plans, and cost estimates. These projects shall be consistent with the priorities 
159.1 	established in section 298.292 and shall not be approved by the board commissioner unless 
159.2 	it the commissioner, after seeking a recommendation from the board, finds that:
159.3 	(a) (1) the project will materially assist, directly or indirectly, the creation of additional 
159.4 	long-term employment opportunities;
159.5 	(b) (2) the prospective benefits of the expenditure exceed the anticipated costs; and
159.6 	(c) (3) in the case of assistance to private enterprise, the project will serve a sound 
159.7 	business purpose.
159.8 	(b) Each project must be approved by over one-half of all of the members of the board 
159.9 	and the commissioner of Iron Range resources and rehabilitation after seeking a 
159.10 	recommendation from the board for the project. The list of projects shall be submitted to 
159.11 	the governor, who shall, by November 15 of each year, approve or disapprove, or return 
159.12 	for further consideration, each project. The money for a project may be expended only upon 
159.13 	approval of the project by the governor. The board commissioner may submit a supplemental 
159.14 	projects project for approval at any time after seeking a recommendation for the project 
159.15 	from the board.

159.16 	Sec. 27. Minnesota Statutes 2016, section 298.296, subdivision 2, is amended to read:
159.17 		Subd. 2.Expenditure of funds. (a) Before January 1, 2028, funds may be expended on 
159.18 	projects and for administration of the trust fund only from the net interest, earnings, and 
159.19 	dividends arising from the investment of the trust at any time, including net interest, earnings, 
159.20 	and dividends that have arisen prior to July 13, 1982, plus $10,000,000 made available for 
159.21 	use in fiscal year 1983, except that any amount required to be paid out of the trust fund to 
159.22 	provide the property tax relief specified in Laws 1977, chapter 423, article X, section 4, and 
159.23 	to make school bond payments and payments to recipients of taconite production tax proceeds 
159.24 	pursuant to section 298.225, may be taken from the corpus of the trust.
159.25 	(b) Additionally, upon recommendation by the commissioner after seeking a 
159.26 	recommendation from the board, up to $13,000,000 from the corpus of the trust may be 
159.27 	made available for use as provided in subdivision 4, and up to $10,000,000 from the corpus 
159.28 	of the trust may be made available for use as provided in section 298.2961.
159.29 	(c) Additionally, an amount equal to 20 percent of the value of the corpus of the trust 
159.30 	on May 18, 2002, not including the funds authorized in paragraph (b), plus the amounts 
159.31 	made available under section 298.28, subdivision 4, and Laws 2002, chapter 377, article 8, 
159.32 	section 17, may be expended on projects. Funds may be expended for projects under this 
159.33 	paragraph only if the project:
160.1 	(1) is for the purposes established under section 298.292, subdivision 1, clause (1) or 
160.2 	(2); and
160.3 	(2) is approved by two-thirds of all of the members of the commissioner after seeking 
160.4 	a recommendation from the board.
160.5 	No money made available under this paragraph or paragraph (d) can be used for 
160.6 	administrative or operating expenses of the Iron Range Resources and Rehabilitation Board 
160.7 	or expenses relating to any facilities owned or operated by the board on May 18, 2002.
160.8 	(d) Upon recommendation by a unanimous vote of all members the commissioner after 
160.9 	seeking a unanimous recommendation of the board, amounts in addition to those authorized 
160.10 	under paragraphs (a), (b), and (c) may be expended on projects described in section 298.292, 
160.11 	subdivision 1.
160.12 	(e) Annual administrative costs, not including detailed engineering expenses for the 
160.13 	projects, shall not exceed five percent of the net interest, dividends, and earnings arising 
160.14 	from the trust in the preceding fiscal year.
160.15 	(f) Principal and interest received in repayment of loans made pursuant to this section, 
160.16 	and earnings on other investments made under section 298.292, subdivision 2, clause (4), 
160.17 	shall be deposited in the state treasury and credited to the trust. These receipts are 
160.18 	appropriated to the board for the purposes of sections 298.291 to 298.298.
160.19 	(g) Additionally, notwithstanding section 298.293, upon the approval of the commissioner 
160.20 	of Iron Range resources and rehabilitation, after seeking a recommendation from the board, 
160.21 	money from the corpus of the trust may be expanded to purchase forest lands within the 
160.22 	taconite assistance area as provided in sections 298.22, subdivision 5a, and 298.292, 
160.23 	subdivision 2, clause (5).

160.24 	Sec. 28. Minnesota Statutes 2016, section 298.296, subdivision 4, is amended to read:
160.25 		Subd. 4.Temporary loan authority. (a) After seeking a recommendation from the 
160.26 	board, the commissioner of Iron Range resources and rehabilitation  may recommend that
160.27 	use up to $7,500,000 from the corpus of the trust may be used for loans, loan guarantees, 
160.28 	grants, or equity investments as provided in this subdivision. The money would be available 
160.29 	for loans for construction and equipping of facilities constituting (1) a value added iron 
160.30 	products plant, which may be either a new plant or a facility incorporated into an existing 
160.31 	plant that produces iron upgraded to a minimum of 75 percent iron content or any iron alloy 
160.32 	with a total minimum metallic content of 90 percent; or (2) a new mine or minerals processing 
161.1 	plant for any mineral subject to the net proceeds tax imposed under section 298.015. A loan 
161.2 	or loan guarantee under this paragraph may not exceed $5,000,000 for any facility.
161.3 	(b) Additionally, the board commissioner of Iron Range resources and rehabilitation
161.4 	must reserve the first $2,000,000 of the net interest, dividends, and earnings arising from 
161.5 	the investment of the trust after June 30, 1996, to be used for grants, loans, loan guarantees, 
161.6 	or equity investments for the purposes set forth in paragraph (a). This amount must be 
161.7 	reserved until it is used as described in this subdivision.
161.8 	(c) Additionally, the board commissioner may recommend that up to $5,500,000 from 
161.9 	the corpus of the trust may be used for additional grants, loans, loan guarantees, or equity 
161.10 	investments for the purposes set forth in paragraph (a).
161.11 	(d) The commissioner of Iron Range resources and rehabilitation, after seeking a 
161.12 	recommendation from the board, may require that it the board receive an equity percentage 
161.13 	in any project to which it contributes under this section.

161.14 	Sec. 29. Minnesota Statutes 2016, section 298.2961, subdivision 2, is amended to read:
161.15 		Subd. 2.Projects; approval. (a) Projects funded must be for:
161.16 	(1) environmentally unique reclamation projects; or
161.17 	(2) pit or plant repairs, expansions, or modernizations other than for a value added iron 
161.18 	products plant.
161.19 	(b) To be proposed by the board, a project must be approved by Before the commissioner 
161.20 	may propose a project, the commissioner must seek a recommendation from the board. The 
161.21 	money for a project may be spent only upon approval of the project by the governor. The 
161.22 	board commissioner may submit a supplemental projects project for approval at any time
161.23 	after seeking a recommendation for the project from the board.
161.24 	(c) The board commissioner may require that it the board receive an equity percentage 
161.25 	in any project to which it contributes under this section.

161.26 	Sec. 30. Minnesota Statutes 2016, section 298.2961, subdivision 4, is amended to read:
161.27 		Subd. 4.Grant and loan fund. (a) A fund is established to receive distributions under 
161.28 	section 298.28, subdivision 9b, and to make grants or loans as provided in this subdivision. 
161.29 	Any grant or loan made under this subdivision must first be approved by the commissioner 
161.30 	after seeking a recommendation from the board, established under section 298.22.
162.1 	(b) All distributions received in 2009 and subsequent years are allocated for projects 
162.2 	under section 298.223, subdivision 1.

162.3 	Sec. 31. Minnesota Statutes 2016, section 298.298, is amended to read:
162.4 	298.298 LONG-RANGE PLAN.
162.5 	Consistent with the policy established in sections 298.291 to 298.298, the Iron Range 
162.6 	Resources and Rehabilitation Board shall prepare and present to the governor and the 
162.7 	legislature by December 31, 2006, a long-range plan for the use of the Douglas J. Johnson 
162.8 	economic protection trust fund for the economic development and diversification of the 
162.9 	taconite assistance area defined in section 273.1341. No project shall be approved
162.10 	recommended by the Iron Range Resources and Rehabilitation Board which if the board 
162.11 	finds that the project is not consistent with the goals and objectives established in the 
162.12 	long-range plan.

162.13 	Sec. 32. Minnesota Statutes 2016, section 298.46, subdivision 2, is amended to read:
162.14 		Subd. 2.Unmined iron ore; valuation petition. When in the opinion of the duly 
162.15 	constituted authorities of a taxing district there are in existence reserves of unmined iron 
162.16 	ore located in such district, these authorities may petition the commissioner of Iron Range 
162.17 	resources and rehabilitation Board for authority to petition the county assessor to verify the 
162.18 	existence of such reserves and to ascertain the value thereof by drilling in a manner consistent 
162.19 	with established engineering and geological exploration methods, in order that such taxing 
162.20 	district may be able to forecast in a proper manner its future economic and fiscal potentials.
162.21 	The commissioner of Iron Range resources and rehabilitation may grant the authority to 
162.22 	petition after seeking a recommendation from the Iron Range Resources and Rehabilitation 
162.23 	Board.

162.24 	Sec. 33. IRON RANGE RESOURCES AND REHABILITATION BOARD; EARLY 
162.25 	SEPARATION INCENTIVE PROGRAM AUTHORIZATION.
 162.26 	(a) "Commissioner" as used in this section means the commissioner of the Iron Range 
162.27 	Resources and Rehabilitation Board unless otherwise specified.
162.28 	(b) Notwithstanding any law to the contrary, the commissioner, in consultation with the 
162.29 	commissioner of management and budget, shall offer a targeted early separation incentive 
162.30 	program for employees of the commissioner who have attained the age of 60 years or who 
162.31 	have received credit for at least 30 years of allowable service under the provisions of 
162.32 	Minnesota Statutes, chapter 352.  The commissioner shall also offer a targeted separation 
163.1 	incentive program for employees of the commissioner whose positions are in support of 
163.2 	operations at Giants Ridge and will be eliminated if the agency no longer directly manages 
163.3 	Giants Ridge operations.
163.4 	(c) The early separation incentive program may include one or more of the following:
163.5 	(1) employer-paid postseparation health, medical, and dental insurance until age 65; and
163.6 	(2) cash incentives that may, but are not required to be, used to purchase additional years 
163.7 	of service credit through the Minnesota State Retirement System, to the extent that the 
163.8 	purchases are otherwise authorized by law.
163.9 	(d) The commissioner shall establish eligibility requirements for employees to receive 
163.10 	an incentive.
163.11 	(e) The commissioner, consistent with the established program provisions under paragraph 
163.12 	(b), and with the eligibility requirements under paragraph (f), may designate specific 
163.13 	programs or employees as eligible to be offered the incentive program.
163.14 	(f) Acceptance of the offered incentive must be voluntary on the part of the employee 
163.15 	and must be in writing. The incentive may only be offered at the sole discretion of the 
163.16 	commissioner.
163.17 	(g) The cost of the incentive is payable solely by funds made available to the 
163.18 	commissioner by law, but only on prior approval of the expenditures by the commissioner, 
163.19 	after seeking a recommendation from the Iron Range Resources and Rehabilitation Board.
163.20 	(h) Unilateral implementation of this section by the commissioner is not an unfair labor 
163.21 	practice under Minnesota Statutes, chapter 179A.

163.22 	EFFECTIVE DATE. This section is effective the day following final enactment. This 
163.23 	section is repealed July 30, 2018.

163.24 	Sec. 34. REVISOR'S INSTRUCTION.
 163.25 	The revisor of statutes shall identify and propose necessary changes to Minnesota Statutes 
163.26 	and Minnesota Rules that are consistent with the goals of this act to (i) transfer discretionary 
163.27 	approval authority for all expenditures and projects from the Iron Range Resources and 
163.28 	Rehabilitation Board to the commissioner of Iron Range resources and rehabilitation, and 
163.29 	(ii) provide that the commissioner must, in good faith, seek the review and recommendation 
163.30 	of the board, as required, before exercising approval authority. The revisor shall submit the 
163.31 	proposal, in a form ready for introduction, during the 2017 regular legislative session to the 
164.1 	chairs and ranking minority members of the senate and house of representatives committees 
164.2 	with jurisdiction over taxes.

164.3 	ARTICLE 10
164.4 	SUSTAINABLE FOREST INCENTIVE ACT MODIFICATIONS

164.5 	Section 1. Minnesota Statutes 2016, section 290C.01, is amended to read:
164.6 	290C.01 PURPOSE.
164.7 	It is the policy of this state to promote sustainable forest resource management on the 
164.8 	state's public and private lands. Recognizing that The state's private forests comprise 
164.9 	approximately one-half of the state forest land resources, that healthy and robust forest land 
164.10 	provides significant benefits to the state of Minnesota, and that ad. These forests play a 
164.11 	critical role in protecting water quality and soil resources, and provide extensive wildlife 
164.12 	habitat, diverse recreational experiences, and significant forest products that support the 
164.13 	state's economy. Ad valorem property taxes represent a significant annual cost that can 
164.14 	discourage long-term forest management investments. In order to foster silviculture 
164.15 	investments and retain these forests for their economic and ecological benefits, this chapter, 
164.16 	hereafter referred to as the "Sustainable Forest Incentive Act," is enacted to encourage the 
164.17 	state's private forest landowners to make a long-term commitment to sustainable forest 
164.18 	management.

164.19 	Sec. 2. Minnesota Statutes 2016, section 290C.02, subdivision 1, is amended to read:
164.20 		Subdivision 1.Application. When used in sections 290C.01 to 290C.11 290C.13, the 
164.21 	terms in this section have the meanings given them.

164.22 	EFFECTIVE DATE. This section is effective the day following final enactment.

164.23 	Sec. 3. Minnesota Statutes 2016, section 290C.02, subdivision 3, is amended to read:
164.24 		Subd. 3.Claimant. (a) "Claimant" means:
164.25 	(1) a person, as that term is defined in section 290.01, subdivision 2, who owns forest 
164.26 	land in Minnesota and files an application authorized by the Sustainable Forest Incentive 
164.27 	Act;
164.28 	(2) a purchaser or grantee if property enrolled in the program was sold or transferred 
164.29 	after the original application was filed and prior to the annual incentive payment being 
164.30 	made; or
165.1 	(3) an owner of land previously covered by an auxiliary forest contract that automatically 
165.2 	qualifies for inclusion in the Sustainable Forest Incentive Act program pursuant to section 
165.3 	88.49, subdivision 9a, or 88.491, subdivision 2.
165.4 	The purchaser or grantee must notify the commissioner in writing of the sale or transfer 
165.5 	of the property. (b) Owners of land that qualifies for inclusion pursuant to section 88.49, 
165.6 	subdivision 9a, or 88.491, subdivision 2, must notify the commissioner in writing of the 
165.7 	expiration of the auxiliary forest contract or land trade with a governmental unit and submit 
165.8 	an application to the commissioner by August 15 July 1 in order to be eligible to receive a 
165.9 	payment by October 1 of that same year. For purposes of section 290C.11, claimant also 
165.10 	includes any person bound by the covenant required in section 290C.04.
165.11 	(b) (c) No more than one claimant is entitled to a payment under this chapter with respect 
165.12 	to any tract, parcel, or piece of land enrolled under this chapter that has been assigned the 
165.13 	same parcel identification number. When enrolled forest land is owned by two or more 
165.14 	persons, the owners must determine between them which person is eligible to claim the 
165.15 	payments provided under sections 290C.01 to 290C.11 209C.13. In the case of property 
165.16 	sold or transferred, the former owner and the purchaser or grantee must determine between 
165.17 	them which person is eligible to claim the payments provided under sections 290C.01 to 
165.18 	290C.11 209C.13. The owners, transferees, or grantees must notify the commissioner in 
165.19 	writing which person is eligible to claim the payments.

165.20 	EFFECTIVE DATE. This section is effective for certifications and applications due 
165.21 	in 2018 and thereafter.

165.22 	Sec. 4. Minnesota Statutes 2016, section 290C.02, subdivision 6, is amended to read:
165.23 		Subd. 6.Forest land. "Forest land" means land containing a minimum of 20 contiguous 
165.24 	acres for which the owner has implemented a forest management plan that was prepared or 
165.25 	updated within the past ten years by an approved plan writer. For purposes of this subdivision, 
165.26 	acres are considered to be contiguous even if they are separated by a road, waterway, railroad 
165.27 	track, or other similar intervening property. At least 50 percent of the contiguous acreage 
165.28 	must meet the definition of forest land in section 88.01, subdivision 7. For the purposes of 
165.29 	sections 290C.01 to 290C.11 209C.13, forest land does not include (i) land used for 
165.30 	residential or agricultural purposes, (ii) land enrolled in the reinvest in Minnesota program, 
165.31 	a state or federal conservation reserve or easement reserve program under sections 103F.501
165.32 	to 103F.531, the Minnesota agricultural property tax law under section 273.111, or land 
165.33 	subject to agricultural land preservation controls or restrictions as defined in section 40A.02
165.34 	or under the Metropolitan Agricultural Preserves Act under chapter 473H, (iii) land exceeding 
166.1 	60,000 acres that is subject to a single conservation easement funded under section 97A.056
166.2 	or a comparable permanent easement conveyed to a governmental or nonprofit entity; (iv)
166.3 	any land that becomes subject to a conservation easement funded under section 97A.056
166.4 	or a comparable permanent easement conveyed to a governmental or nonprofit entity after 
166.5 	May 30, 2013; or (v) (iv) land improved with a structure,; pavement,  other than a paved 
166.6 	trail under easement, lease, or terminable license to the state of Minnesota or a political 
166.7 	subdivision; sewer,; campsite,; or any road, other than a township road, used for purposes 
166.8 	not prescribed in the forest management plan.

166.9 	EFFECTIVE DATE. This section is effective for applications made in 2018 and 
166.10 	thereafter.

166.11 	Sec. 5. Minnesota Statutes 2016, section 290C.03, is amended to read:
166.12 	290C.03 ELIGIBILITY REQUIREMENTS.
166.13 	(a) Land may be enrolled in the sustainable forest incentive program under this chapter 
166.14 	if all of the following conditions are met:
166.15 	(1) the land consists of at least 20 contiguous acres and at least 50 percent of the land 
166.16 	must meet the definition of forest land in section 88.01, subdivision 7, during the enrollment;
166.17 	(2) a forest management plan for the land must be prepared by an approved plan writer 
166.18 	and implemented during the period in which the land is enrolled;
166.19 	(3) timber harvesting and forest management guidelines must be used in conjunction 
166.20 	with any timber harvesting or forest management activities conducted on the land during 
166.21 	the period in which the land is enrolled;
166.22 	(4) the land must be enrolled for a minimum of eight years;
166.23 	(5) there are no delinquent property taxes on the land; and
166.24 	(6) claimants enrolling more than 1,920 acres or enrolling any land that is subject to a 
166.25 	conservation easement funded under section 97A.056, or a comparable permanent easement 
166.26 	conveyed to a governmental or nonprofit entity in the sustainable forest incentive program 
166.27 	must allow year-round, nonmotorized access to fish and wildlife resources and motorized 
166.28 	access on established and maintained roads and trails, unless the road or trail is temporarily 
166.29 	closed for safety, natural resource, or road damage reasons on enrolled land except within 
166.30 	one-fourth mile of a permanent dwelling or during periods of high fire hazard as determined 
166.31 	by the commissioner of natural resources.;
167.1 	(7) the claimant has registered the forest management plan under clause (2) with the 
167.2 	commissioner of natural resources, who has determined that the land meets qualifications 
167.3 	for enrollment; and
167.4 	(8) no portion of the parcel containing the enrolled land is classified as class 2c managed 
167.5 	forest land.
167.6 	(b) Claimants required to allow access under paragraph (a), clause (6), do not by that 
167.7 	action:
167.8 	(1) extend any assurance that the land is safe for any purpose;
167.9 	(2) confer upon the person the legal status of an invitee or licensee to whom a duty of 
167.10 	care is owed; or
167.11 	(3) assume responsibility for or incur liability for any injury to the person or property 
167.12 	caused by an act or omission of the person.
167.13 	(c) The commissioner of natural resources shall annually provide county assessors 
167.14 	verification information regarding plan registration under paragraph (a), clause (7), on a 
167.15 	timely basis.
167.16 	(d) A minimum of three acres must be excluded from enrolled land when the land is 
167.17 	improved with a structure that is not a minor, ancillary, and nonresidential structure.
167.18 	(e) If land does not meet the definition of forest land in section 290C.02, subdivision 6, 
167.19 	because the land is:
167.20 	(1) enrolled in a state or federal conservation reserve or easement program under sections 
167.21 	103F.501 to 103F.531;
167.22 	(2) subject to the Minnesota agricultural property tax under section 273.111; or
167.23 	(3) subject to agricultural land preservation controls or restrictions as defined in section 
167.24 	40A.02, or the Metropolitan Agricultural Preserves Act under chapter 473H, the entire tax 
167.25 	parcel that contains the land is not eligible to be enrolled in the program.

167.26 	EFFECTIVE DATE. This section is effective for certifications and applications due 
167.27 	in 2018 and thereafter.

167.28 	Sec. 6. Minnesota Statutes 2016, section 290C.04, is amended to read:
167.29 	290C.04 APPLICATIONS.
167.30 	(a) A landowner may apply to enroll forest land for the sustainable forest incentive 
167.31 	program under this chapter. The claimant must complete, sign, and submit an application 
168.1 	to the commissioner by September 30 October 31 in order for the land to become eligible 
168.2 	beginning in the next year. The application shall be on a form prescribed by the commissioner 
168.3 	commissioners of revenue and natural resources and must include the information the 
168.4 	commissioner deems commissioners deem necessary. At a minimum, the application must 
168.5 	show the following information for the land and the claimant: (i) the claimant's Social 
168.6 	Security number or state or federal business tax registration number and date of birth, (ii) 
168.7 	the claimant's address, (iii) the claimant's signature, (iv) the county's parcel identification 
168.8 	numbers for the tax parcels that completely contain the claimant's forest land that is sought 
168.9 	to be enrolled, (v) the number of acres eligible for enrollment in the program, (vi) the 
168.10 	approved plan writer's signature and identification number, and (vii) proof, in a form specified 
168.11 	by the commissioner, that the claimant has executed and acknowledged in the manner 
168.12 	required by law for a deed, and recorded, a covenant that the land is not and shall not be 
168.13 	developed in a manner inconsistent with the requirements and conditions of this chapter, 
168.14 	and (viii) a registration number for the forest management plan, issued by the commissioner 
168.15 	of natural resources. The covenant shall state in writing that the covenant is binding on the 
168.16 	claimant and the claimant's successor or assignee, and that it runs with the land for a period 
168.17 	of not less than eight years unless the claimant requests termination of the covenant after a 
168.18 	reduction in payments due to changes in the payment formula under section 290C.07 or as 
168.19 	a result of executive action, the amount of payment a claimant is eligible to receive under 
168.20 	section 290C.07 is reduced or limited. The commissioner shall specify the form of the 
168.21 	covenant and provide copies upon request. The covenant must include a legal description 
168.22 	that encompasses all the forest land that the claimant wishes to enroll under this section or 
168.23 	the certificate of title number for that land if it is registered land. The commissioner of 
168.24 	natural resources shall record the area eligible for enrollment into the Sustainable Forest 
168.25 	Incentive Act as electronic geospatial data, as defined in section 16E.30, subdivision 10.
168.26 	(b) The commissioner shall provide by electronic means data sufficient for the 
168.27 	commissioner of natural resources to determine whether the applicant qualifies for enrollment. 
168.28 	The commissioner must make the data available within 30 days of receipt of the application 
168.29 	filed by the claimant or by October 1, whichever is sooner. The commissioner of natural 
168.30 	resources must notify the commissioner whether the applicant qualifies for enrollment within 
168.31 	30 days of the data being available, and if the applicant qualifies for enrollment, the 
168.32 	commissioner of natural resources shall specify the number of qualifying acres per tax 
168.33 	parcel.
168.34 	(b) In all cases, (c) The commissioner shall notify the claimant within 90 days after 
168.35 	receipt of a completed application that either the land has or has not been approved for 
169.1 	enrollment. A claimant whose application is denied may appeal the denial as provided in 
169.2 	section 290C.13.
169.3 	(c) (d) Within 90 days after the denial of an application, or within 90 days after the final 
169.4 	resolution of any appeal related to the denial, the commissioner shall execute and 
169.5 	acknowledge a document releasing the land from the covenant required under this chapter. 
169.6 	The document must be mailed to the claimant and is entitled to be recorded.
169.7 	(d) (e) The Social Security numbers collected from individuals under this section are 
169.8 	private data as provided in section 13.355. The federal business tax registration number and 
169.9 	date of birth data collected under this section are also private data on individuals or nonpublic 
169.10 	data, as defined in section 13.02, subdivisions 9 and 12, but may be shared with county 
169.11 	assessors for purposes of tax administration and with county treasurers for purposes of the 
169.12 	revenue recapture under chapter 270A.

169.13 	EFFECTIVE DATE. This section is effective for certifications and applications due 
169.14 	in 2018 and thereafter.

169.15 	Sec. 7. Minnesota Statutes 2016, section 290C.05, is amended to read:
169.16 	290C.05 ANNUAL CERTIFICATION AND MONITORING.
169.17 	(a) On or before July 1 May 15 of each year, beginning with the year after the original 
169.18 	claimant has received an approved application, the commissioner shall send each claimant 
169.19 	enrolled under the sustainable forest incentive program a certification form. For purposes 
169.20 	of this section, the original claimant is the person that filed the first application under section 
169.21 	290C.04 to enroll the land in the program current property owner on record, or the person 
169.22 	designated by the owners in the case of multiple ownership. The claimant must sign and 
169.23 	return the certification, attesting to the commissioner by July 1 of that same year, and (1) 
169.24 	attest that the requirements and conditions for continued enrollment in the program are 
169.25 	currently being met, and must return the signed certification form to the commissioner by 
169.26 	August 15 of that same year (2) provide a report in the form and manner determined by the 
169.27 	commissioner of natural resources describing the management practices that have been 
169.28 	carried out on the enrolled property during the prior year. If the claimant does not return an 
169.29 	annual certification form by the due date, the provisions in section 290C.11 apply. The 
169.30 	commissioner of natural resources must verify that the claimant meets program requirements.
169.31 	(b) The commissioner must provide the certification form and annual report described 
169.32 	in paragraph (a), clause (2), to the commissioner of natural resources by August 1.
170.1 	(c) The commissioner of natural resources must conduct annual monitoring of a subset 
170.2 	of claimants, excluding land also enrolled in a conservation easement program. Claimants 
170.3 	will be selected for monitoring based on reported violations, annual certification, and random 
170.4 	selections. Monitoring will be conducted on ten percent of claimants as of July 1 of each 
170.5 	year. Monitoring may include, but is not limited to, a site visit by a Department of Natural 
170.6 	Resources or contracted forester. The commissioner of natural resources must develop a 
170.7 	monitoring form to record the monitoring data.

170.8 	EFFECTIVE DATE. Paragraphs (a) and (b) are effective for certifications and 
170.9 	applications due in 2018 and thereafter. Paragraph (c) is effective July 1, 2019.

170.10 	Sec. 8. Minnesota Statutes 2016, section 290C.055, is amended to read:
170.11 	290C.055 LENGTH OF COVENANT.
170.12 	(a) The covenant remains in effect for a minimum of eight years. Claimants enrolling 
170.13 	any land that is subject to a conservation easement funded under section 97A.056 or a 
170.14 	comparable permanent easement conveyed to a governmental or nonprofit entity must enroll 
170.15 	their land under a covenant with a minimum duration of eight years. All other claimants 
170.16 	may choose to enroll their land under a covenant with a minimum duration of eight, 20, or 
170.17 	50 years. If land is removed the claimant requests removal of land from the program before 
170.18 	it has been enrolled for four years one-half the number of years of the covenant's duration, 
170.19 	the covenant remains in effect for eight years the entire duration of the covenant from the 
170.20 	date recorded.
170.21 	(b) If land that has been enrolled for four years one-half the number of years of the 
170.22 	covenant's minimum duration or more is removed from the program for any reason, there 
170.23 	is a waiting period before the covenant terminates. The covenant terminates on January 1 
170.24 	of the fifth, 11th, or 26th calendar year for the eight-, 20-, or 50-year minimum covenant, 
170.25 	respectively, that begins after the date that:
170.26 	(1) the commissioner receives notification from the claimant that the claimant wishes 
170.27 	to remove the land from the program under section 290C.10; or
170.28 	(2) the date that the land is removed from the program under section 290C.11.
170.29 	(c) Notwithstanding the other provisions of this section, the covenant is terminated:
170.30 	(1) at the same time that the land is removed from the program due to acquisition of title 
170.31 	or possession for a public purpose under section 290C.10; or
171.1 	(2) at the request of the claimant after (i) if there is a reduction in payments due to 
171.2 	changes in the payment formula under section 290C.07; or (ii) if, as a result of executive 
171.3 	action, the amount of payment a claimant is eligible to receive under section 290C.07 is 
171.4 	reduced or limited.

171.5 	EFFECTIVE DATE. This section is effective for certifications and applications in 
171.6 	2018 and thereafter.

171.7 	Sec. 9. Minnesota Statutes 2016, section 290C.07, is amended to read:
171.8 	290C.07 CALCULATION OF INCENTIVE PAYMENT.
171.9 	(a) An approved claimant under the sustainable forest incentive program is eligible to 
171.10 	receive an annual payment for each acre of enrolled land, excluding any acre improved with 
171.11 	a paved trail under easement, lease, or terminable license to the state of Minnesota or a 
171.12 	political subdivision. The payment shall equal $7 per acre for each acre enrolled in the 
171.13 	sustainable forest incentive program. a percentage of the property tax that would be paid 
171.14 	on the land determined by using the previous year's statewide average total tax rate for all 
171.15 	taxes levied within townships and unorganized territories, the estimated market value per 
171.16 	acre as calculated in section 290C.06, and a class rate of one percent as follows: (1) for 
171.17 	claimants enrolling land that is subject to a conservation easement funded under section 
171.18 	97A.056 or a comparable permanent easement conveyed to a governmental or nonprofit 
171.19 	entity before May 31, 2013, 25 percent; (2) for claimants enrolling land that is not subject 
171.20 	to a conservation easement under an eight-year covenant, 65 percent; (3) for claimants 
171.21 	enrolling land that is not subject to a conservation easement  under a 20-year covenant, 90 
171.22 	percent; and (4) for claimants enrolling land that is not subject to a conservation easement 
171.23 	under a 50-year covenant, 115 percent.
171.24 	(b) The calculated payment shall not be less than the payment received in 2017 and shall 
171.25 	not increase or decrease by more than ten percent relative to the payment received for the 
171.26 	previous year.
171.27 	(c) In addition to the payments provided under this section, a claimant enrolling more 
171.28 	than 1,920 acres shall be allowed an additional payment per acre equal to the amount 
171.29 	prescribed in paragraph (a), clause (1), for all acres of enrolled land on which public access 
171.30 	is allowed, as required under section 290C.03, paragraph (a), clause (6), excluding any land 
171.31 	subject to a conservation easement funded under section 97A.056, or a permanent easement 
171.32 	conveyed to a governmental or nonprofit entity that is required to allow for public access 
171.33 	under section 290C.03, paragraph (a), clause (6).

172.1 	EFFECTIVE DATE. This section is effective for calculations made in 2018 and 
172.2 	thereafter.

172.3 	Sec. 10. Minnesota Statutes 2016, section 290C.08, subdivision 1, is amended to read:
172.4 		Subdivision 1.Annual payment. An incentive payment for each acre of enrolled land 
172.5 	will be made annually to each claimant in the amount determined under section 290C.07. 
172.6 	By September 15 of each year, the commissioner of natural resources will certify to the 
172.7 	commissioner the eligibility of each claimant to receive a payment. The incentive payment 
172.8 	shall be paid by the commissioner on or before October 1 each year based on the certifications 
172.9 	due August 15 July 1 of that year. Interest at the annual rate determined under section 
172.10 	270C.40 shall be included with any incentive payment not paid by the later of October 1 of 
172.11 	the year the certification was due, or 45 days after the completed certification was returned 
172.12 	or filed if the commissioner accepts a certification filed after August 15 July 1 of the taxes 
172.13 	payable year as the resolution of an appeal.

172.14 	EFFECTIVE DATE. This section is effective for certifications and applications due 
172.15 	in 2018 and thereafter.

172.16 	Sec. 11. Minnesota Statutes 2016, section 290C.10, is amended to read:
172.17 	290C.10 WITHDRAWAL PROCEDURES.
172.18 	An approved claimant (a) The current owner of land enrolled under the sustainable forest 
172.19 	incentive program for a minimum of four years one-half the number of years of the covenant's 
172.20 	minimum duration may notify the commissioner of the intent to terminate enrollment. Within 
172.21 	90 days of receipt of notice to terminate enrollment, the commissioner shall inform the 
172.22 	claimant in writing, acknowledging receipt of this notice and indicating the effective date 
172.23 	of termination from the sustainable forest incentive program. Termination of enrollment in 
172.24 	the sustainable forest incentive program occurs on January 1 of the fifth, 11th, or 26th
172.25 	calendar year for the eight-, 20-, or 50-year respective minimum covenant that begins after 
172.26 	receipt by the commissioner of the termination notice. After the commissioner issues an 
172.27 	effective date of termination, a claimant wishing to continue the land's enrollment in the 
172.28 	sustainable forest incentive program beyond the termination date must apply for enrollment 
172.29 	as prescribed in section 290C.04. A claimant who withdraws a parcel of land from this 
172.30 	program may not reenroll the parcel for a period of three years. Within 90 days after the 
172.31 	termination date, the commissioner shall execute and acknowledge a document releasing 
172.32 	the land from the covenant required under this chapter. The document must be mailed to 
172.33 	the claimant and is entitled to be recorded.
173.1 	(b) Notwithstanding paragraph (a), on request of the claimant,  the commissioner may 
173.2 	allow early withdrawal from the Sustainable Forest Incentive Act without penalty when the 
173.3 	state of Minnesota, any local government unit, or any other entity which has the power of 
173.4 	eminent domain acquires title or possession to the land for a public purpose notwithstanding 
173.5 	the provisions of this section. In the case of such an eligible acquisition under this paragraph, 
173.6 	the commissioner shall execute and acknowledge a document releasing the land acquired 
173.7 	by the state, local government unit, or other entity from the covenant.
173.8 	(c) Notwithstanding paragraph (a), upon request of the claimant, the commissioner shall 
173.9 	allow early withdrawal from the Sustainable Forest Incentive Act without penalty when a 
173.10 	government or nonprofit entity acquires a permanent conservation easement on the enrolled 
173.11 	property and the conservation easement is at least as restrictive as the covenant required 
173.12 	under section 290C.04. The commissioner of natural resources must notify the commissioner 
173.13 	of lands acquired under this paragraph that are eligible for withdrawal. In the case of an 
173.14 	eligible easement acquisition under this paragraph, the commissioner shall execute and 
173.15 	acknowledge a document releasing the land subject to the easement from the covenant.
173.16 	(d) Notwithstanding paragraph (a), upon request of the claimant, the commissioner shall 
173.17 	allow early withdrawal from the Sustainable Forest Incentive Act without penalty for land 
173.18 	that is subject to fee or easement acquisition or lease to the state of Minnesota or a political 
173.19 	subdivision of the state for the public purpose of a paved trail. The commissioner of natural 
173.20 	resources must notify the commissioner of lands acquired under this paragraph that are 
173.21 	eligible for withdrawal. In the case of an eligible fee or easement acquisition or lease under 
173.22 	this paragraph, the commissioner shall execute and acknowledge a document releasing the 
173.23 	land subject to fee or easement acquisition or lease by the state or political subdivision of 
173.24 	the state.
173.25 	(e) All other enrolled land must remain in the program.

173.26 	EFFECTIVE DATE. The amendments to paragraphs (c) and (d) are effective the day 
173.27 	following final enactment. The amendments to paragraphs (a), (b), and (e) are effective for 
173.28 	notifications made in 2018 and thereafter.

173.29 	Sec. 12. [290C.101] TRANSFER OF OWNERSHIP.
173.30 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
173.31 	the meanings provided.
173.32 	(b) "New owner" means a prospective purchaser or grantee.
173.33 	(c) "Owner" means a grantor or seller.
174.1 		Subd. 2.Notification to commissioner. (a) An owner must notify the commissioner if 
174.2 	the owner transfers any or all of the owner's land enrolled in the sustainable forest incentive 
174.3 	program to one or more new owners within 60 days of the transfer of title to the property. 
174.4 	The notification must include the legal descriptions of the transferred property, the tax parcel 
174.5 	numbers, and the name and address of the new owner. If transfer of ownership is a result 
174.6 	of the death of the claimant, the provisions of section 290C.12 shall apply.
174.7 	(b) Upon notification, the commissioner shall inform the new owner of the restrictions 
174.8 	of the covenant required by section 290C.04 and the withdrawal procedures under section 
174.9 	290C.10. In order for the new owner to receive payments pursuant to this chapter, the new 
174.10 	owner must file an application and register a new forest management plan with the 
174.11 	commissioner of natural resources within two years from the date the title of the property 
174.12 	was transferred to remain eligible.
174.13 		Subd. 3.Termination of enrollment. The commissioner will terminate enrollment 
174.14 	according to the procedure in section 290C.10 for failure of the new owner to register a 
174.15 	forest management plan within the time period in subdivision 2, paragraph (b).

174.16 	EFFECTIVE DATE. This section is effective July 1, 2017.

174.17 	Sec. 13. Minnesota Statutes 2016, section 290C.11, is amended to read:
174.18 	290C.11 PENALTIES FOR REMOVAL.
174.19 	(a) If the commissioner determines that land enrolled in the sustainable forest incentive 
174.20 	program is in violation of the conditions for enrollment as specified in section 290C.03, or 
174.21 	upon notification by the commissioner of natural resources that land enrolled is in violation 
174.22 	of the conditions for enrollment, the commissioner shall notify the claimantcurrent owner 
174.23 	of the land of the intent to remove all the tax parcel of the enrolled land where the violation 
174.24 	has occurred from the sustainable forest incentive program. The penalties described under 
174.25 	paragraph (c) apply. The claimant current owner has 60 days to appeal this determination 
174.26 	under the provisions of section 290C.13.
174.27 	(b) If the commissioner determines the land is to be removed from the sustainable forest 
174.28 	incentive program due to the construction or addition of an improvement to the property, 
174.29 	the claimant owner of the tax parcel that is in violation is liable for payment to the 
174.30 	commissioner in the amount equal to: (1) the payments received issued related to the enrolled 
174.31 	tax parcel under this chapter for the previous four-year period number of years the land has 
174.32 	been bound by covenant, or half the covenant length, whichever is less, plus interest; and 
175.1 	(2) 25 percent of the estimated market value of the property as reclassified under section 
175.2 	273.13 due to the structure being on the tax parcel, as determined by the assessor.
175.3 	(c) If the commissioner of natural resources determines that the land is used for purposes 
175.4 	other than forestry purposes, the commissioner of natural resources shall notify the 
175.5 	commissioner of revenue, who shall notify the current owner of the tax parcel that is in 
175.6 	violation that the current owner is liable to the commissioner in an amount equal to: (1) 30 
175.7 	percent of the estimated market value as property reclassified under section 273.13, due to 
175.8 	the change in use, as determined by the assessor; and (2) the payments issued related to the 
175.9 	enrolled tax parcel under this chapter for the number of years the land has been bound by 
175.10 	covenant, or half the covenant length, whichever is less, plus interest.
175.11 	(d) The claimant has 90 days to satisfy the payment for removal of land from the 
175.12 	sustainable forest incentive program under this section. If the penalty is not paid within the 
175.13 	90-day period under this paragraph, the commissioner shall certify the amount to the county 
175.14 	auditor for collection as a part of the general ad valorem real property taxes on the land in 
175.15 	the following taxes payable year.

175.16 	EFFECTIVE DATE. This section is effective for certifications and applications due 
175.17 	in 2018 and thereafter.

175.18 	Sec. 14. Minnesota Statutes 2016, section 290C.13, subdivision 6, is amended to read:
175.19 		Subd. 6.Determination of appeal. On the basis of applicable law and available 
175.20 	information, the commissioner shall determine the validity, if any, in whole or in part, of 
175.21 	the appeal and notify the claimant of the decision. This notice must be in writing and contain 
175.22 	the basis for the determination. The commissioner shall consult with the commissioner of 
175.23 	natural resources when an appeal relates to the use of the property for forestry or nonforestry 
175.24 	purposes and for appeals related to forest management plans.

175.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

175.26 	Sec. 15. Laws 2016, chapter 187, section 5, the effective date, is amended to read:

175.27 	EFFECTIVE DATE. This section is effective for orders and notices dated after 
175.28 	September 30, 2015 December 31, 2017.

175.29 	EFFECTIVE DATE. This section is effective retroactively from September 30, 2015.

176.1 	Sec. 16. SUSTAINABLE FOREST INCENTIVE ACT; TRANSITION PROVISION.
 176.2 	(a) For lands enrolled in the Sustainable Forest Incentive Act on December 31, 2017, 
176.3 	the owner of enrolled lands may elect through May 15, 2019, and without penalty, to change 
176.4 	the length of a covenant, if eligible, under Minnesota Statutes, section 290C.055. The owner 
176.5 	of enrolled land must provide notice to the Department of Revenue of its intent to change 
176.6 	the length of its covenant.
176.7 	(b) For lands enrolled in the Sustainable Forest Incentive Act on May 15, 2016, the 
176.8 	owner of enrolled land must comply with the changes made in the act by certifications due 
176.9 	in 2018, as required under Minnesota Statutes, section 290C.05.

176.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

176.11 	Sec. 17. ADMINISTRATIVE APPROPRIATION.
 176.12 	$600,000 in fiscal year 2017 is appropriated from the general fund to the commissioner 
176.13 	of natural resources for administering Minnesota Statutes, chapter 290C, and section 477A.19. 
176.14 	The funding base for administering Minnesota Statutes, chapter 290C, and section 477A.19, 
176.15 	in fiscal year 2018 and thereafter is $600,000.

176.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

176.17 	Sec. 18.  REPEALER.
 176.18 	Minnesota Statutes 2016, section 290C.02, subdivisions 5 and 9, are repealed.

176.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

176.20 	ARTICLE 11
176.21 	MISCELLANEOUS

176.22 	Section 1. Minnesota Statutes 2016, section 16A.152, subdivision 2, is amended to read:
176.23 		Subd. 2.Additional revenues; priority. (a) If on the basis of a forecast of general fund 
176.24 	revenues and expenditures, the commissioner of management and budget determines that 
176.25 	there will be a positive unrestricted budgetary general fund balance at the close of the 
176.26 	biennium, the commissioner of management and budget must allocate money to the following 
176.27 	accounts and purposes in priority order:
176.28 	(1) the cash flow account established in subdivision 1 until that account reaches 
176.29 	$350,000,000;
177.1 	(2) the budget reserve account established in subdivision 1a until that account reaches 
177.2 	$1,596,522,000 $1,930,388,000;
177.3 	(3) the amount necessary to increase the aid payment schedule for school district aids 
177.4 	and credits payments in section 127A.45 to not more than 90 percent rounded to the nearest 
177.5 	tenth of a percent without exceeding the amount available and with any remaining funds 
177.6 	deposited in the budget reserve; and
177.7 	(4) the amount necessary to restore all or a portion of the net aid reductions under section 
177.8 	127A.441 and to reduce the property tax revenue recognition shift under section 123B.75, 
177.9 	subdivision 5, by the same amount.
177.10 	(b) The amounts necessary to meet the requirements of this section are appropriated 
177.11 	from the general fund within two weeks after the forecast is released or, in the case of 
177.12 	transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations 
177.13 	schedules otherwise established in statute.
177.14 	(c) The commissioner of management and budget shall certify the total dollar amount 
177.15 	of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of education. 
177.16 	The commissioner of education shall increase the aid payment percentage and reduce the 
177.17 	property tax shift percentage by these amounts and apply those reductions to the current 
177.18 	fiscal year and thereafter.

177.19 	EFFECTIVE DATE. This section is effective July 1, 2017.

177.20 	Sec. 2. [116J.952] NEW MARKETS GRANT PROGRAM.
177.21 		Subdivision 1.Grant program established. The commissioner shall award new markets 
177.22 	grants for qualified low-income community investments as specified under this section. 
177.23 	The commissioner shall adopt rules to establish criteria for determining grant eligibility.
177.24 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have the 
177.25 	meanings given.
177.26 	(b) "Applicant" means a qualified community development entity as defined in paragraph 
177.27 	(h).
177.28 	(c) "Commissioner" means the commissioner of employment and economic development.
177.29 	(d) "Greater Minnesota" means the area of the state that excludes the metropolitan area, 
177.30 	as defined in section 473.121, subdivision 2.
177.31 	(e) "Internal Revenue Code" has the meaning given in section 290.01, subdivision 31.
178.1 	(f) "Qualified active low-income community business" has the meaning given in section 
178.2 	45D of the Internal Revenue Code. The term does not include:
178.3 	(1) any trade or business engaged in insurance, banking, lending, lobbying, political 
178.4 	consulting, or leisure; or
178.5 	(2) any trade or business activity consisting of the operation of any private or commercial 
178.6 	golf course, country club, suntan facility, hot tub facility, massage parlor, race track, or 
178.7 	other facility used for gambling, or any store the principal business of which is the sale of 
178.8 	alcoholic beverages for consumption off premises.
178.9 	(g) "Low-income communities" as defined in section 45D of the Internal Revenue Code 
178.10 	and applied to any term or requirement used in this section or an incorporated provision of 
178.11 	federal law includes the area of any home rule charter or statutory city that:
178.12 	(1) is located in greater Minnesota;
178.13 	(2) has a population, as defined in section 477A.011, subdivision 3, of 500 or more; and
178.14 	(3) has net tax capacity of property, classified as class 3 under section 273.13, of less 
178.15 	than $500 per capita for property taxes assessed in 2015, payable in 2016, including the 
178.16 	city's distribution net tax capacity and excluding its contribution net tax capacity under 
178.17 	chapter 276A.
178.18 	(h) "Qualified community development entity" has the meaning given in section 45D 
178.19 	of the Internal Revenue Code, provided that the entity has direct lending experience serving 
178.20 	businesses in disadvantaged communities in the state and a primary mission of economic 
178.21 	development.
178.22 	(i) "Qualified low-income community investment" means any capital or equity investment 
178.23 	in, or loan to, any qualified active low-income community business.
178.24 		Subd. 3.Grant awards. The commissioner shall award grants to qualified community 
178.25 	development entities based on a competitive review of applications received by the 
178.26 	commissioner using criteria established in subdivision 4.
178.27 		Subd. 4.Application. (a) The commissioner shall develop an application form requiring 
178.28 	information necessary to evaluate the benefits to Minnesota from awarding the grants.
178.29 	(b) Prior to awarding grants to an applicant under this subdivision, the commissioner 
178.30 	shall consider the following:
179.1 	(1) whether the qualified community development entity has demonstrated experience 
179.2 	providing capital or technical assistance to disadvantaged businesses or communities in the 
179.3 	state;
179.4 	(2) the extent to which an applicant demonstrates direct experience in asset and risk 
179.5 	management and in fulfilling government compliance requirements;
179.6 	(3) the extent to which an applicant demonstrates a capitalization strategy that ensures 
179.7 	that the economic benefit of the grant allocation remains in the state;
179.8 	(4) the extent to which the applicant establishes standards for wages and benefits 
179.9 	exceeding federal poverty guidelines and includes a means by which to monitor and measure 
179.10 	ongoing compliance with those standards;
179.11 	(5) the financial contributions expected to be made to the project from nonstate sources; 
179.12 	and
179.13 	(6) any other criteria the commissioner deems necessary.
179.14 		Subd. 5.Annual reporting by community development entities. A community 
179.15 	development entity that has been awarded a grant must submit an annual report to the 
179.16 	commissioner within 180 days after the end of the fiscal year. The report must include 
179.17 	information on investments made in the preceding year, including but not limited to the 
179.18 	following:
179.19 	(1) the types of industries, identified by the North American Industry Classification 
179.20 	System Code, in which a qualified low-income community investment was made;
179.21 	(2) the names of the counties in which the qualified active low-income community 
179.22 	businesses are located which received qualified low-income community investments;
179.23 	(3) the number of jobs created and retained by qualified active low-income community 
179.24 	businesses receiving qualified low-income community investments, including verification 
179.25 	that the average wages and benefits paid to full-time employees, based on an hourly wage 
179.26 	for a 40-hour work week, meet or exceed 105 percent of the federal poverty income 
179.27 	guidelines for a family of four; and
179.28 	(4) other information and documentation required by the commissioner to verify continued 
179.29 	certification as a qualified community development entity under United States Code, title 
179.30 	26, section 45D.
179.31 		Subd. 6.Application fees; fund created. The qualified community development entity 
179.32 	must submit a nonrefundable application fee at the time the application is submitted equal 
180.1 	to the amount published in the Minnesota new markets grant program application. The 
180.2 	commissioner may allow up to 25 percent of the fee to be submitted up to 180 days following 
180.3 	the grant award and up to 25 percent of the fee to be submitted up to 270 days following 
180.4 	the grant award. Application fees are deposited in the new markets grant program 
180.5 	administration account in the special revenue fund.
180.6 		Subd. 7.Administrative fees. Upon the issuance of a qualified low-income community 
180.7 	investment by a qualified community development entity, an administrative fee in an amount 
180.8 	determined by the commissioner and published in the grant agreement must be deposited 
180.9 	in the new markets grant program administration account in the special revenue fund.
180.10 		Subd. 8.Administrative expenses. Amounts in the new markets grant program 
180.11 	administration account are appropriated annually to the commissioner for administrative 
180.12 	expenses related to administering the new markets grant program in this section.
180.13 		Subd. 9.Annual report. Beginning in 2019 and ending in 2023, the commissioner shall 
180.14 	annually, by January 15, report to the chairs and ranking minority members of the legislative 
180.15 	committees on economic development on the implementation of the grant program, including 
180.16 	an evaluation of the success and economic impact of the program in the state. The report 
180.17 	must include:
180.18 	(1) the number of women-owned and minority-owned businesses assisted by the grants;
180.19 	(2) the number of greater Minnesota-located businesses assisted by the grants and the 
180.20 	amount of that assistance;
180.21 	(3) the number of metropolitan area-located businesses assisted by the grants and the 
180.22 	amount of that assistance;
180.23 	(4) the number of jobs created by the grants including the number of women and 
180.24 	minorities obtaining jobs; and
180.25 	(5) the number of jobs created by the grants located in greater Minnesota and in the 
180.26 	metropolitan area.
180.27 		Subd. 10.Expiration. This section expires the earlier of July 1, 2024, or when the last 
180.28 	of the grant funds have been awarded. The commissioner must issue the rules for the 
180.29 	implementation of this section to allow commencement of grant awards by January 1, 2018.

180.30 	EFFECTIVE DATE. This section is effective January 1, 2017.

181.1 	Sec. 3. [270C.22] TAX TIME SAVINGS GRANT PROGRAM.
181.2 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
181.3 	the meanings given.
181.4 	(b) "Financial capability services" means any of the following:
181.5 	(1) assistance with opening a savings or transactional account that meets the Federal 
181.6 	Deposit Insurance Corporation's model safe accounts template standards;
181.7 	(2) assistance with depositing all or part of a tax refund into a savings or transactional 
181.8 	account;
181.9 	(3) assistance with obtaining and reviewing a consumer report or credit score, as those 
181.10 	terms are defined in United States Code, title 15, section 1681a;
181.11 	(4) assistance with obtaining and reviewing a banking history report;
181.12 	(5) financial coaching, or referral to financial coaching services, as provided in section 
181.13 	256E.35, subdivision 4a;
181.14 	(6) National Foundation for Credit Counseling certified consumer credit and debt 
181.15 	counseling or referral to these services;
181.16 	(7) enrollment in a matched or incentivized savings program, including the provision 
181.17 	of matching or incentive funds;
181.18 	(8) assistance with purchasing federal retirement savings bonds, as described in Code 
181.19 	of Federal Regulations, title 31, part 347, or referral to a certified financial planner, registered 
181.20 	investment adviser, licensed insurance producer or agent, or a registered securities 
181.21 	broker-dealer representative for private sector retirement options; or
181.22 	(9) assistance with purchasing a Series I United States Savings Bond with all or part of 
181.23 	a tax refund.
181.24 	(c) "Transactional account" means a traditional demand deposit account or a general 
181.25 	purpose reloadable prepaid card offered by a bank or credit union.
181.26 	(d) "TCE" means the Tax Counseling for the Elderly program established by the Internal 
181.27 	Revenue Service.
181.28 	(e) "VITA" means the Volunteer Income Tax Assistance program established by the 
181.29 	Internal Revenue Service.
181.30 		Subd. 2.Creation. The commissioner of revenue shall establish a tax time savings grant 
181.31 	program to make grants to one or more nonprofit organizations to fund the integration of 
182.1 	financial capability services into the delivery of taxpayer assistance services funded by 
182.2 	grants under section 270C.21.
182.3 		Subd. 3.Qualified applicant. To be eligible to receive a grant under the tax time savings 
182.4 	grant program, an applicant must:
182.5 	(1) qualify under section 501(c)(3) of the Internal Revenue Code and be registered with 
182.6 	the Internal Revenue Service as part of either the VITA or TCE programs; and
182.7 	(2) commit to dedicate at least one staff or volunteer position to coordinate financial 
182.8 	capability services at a VITA or TCE program site and to offer VITA or TCE program 
182.9 	participants free assistance with the initiation through completion of:
182.10 	(i) opening a savings and a transactional account that meet the Federal Deposit Insurance 
182.11 	Corporation's model safe accounts template standards;
182.12 	(ii) depositing all or part of a tax refund into a savings or transactional account; and
182.13 	(iii) purchasing a Series I United States Savings Bond with all or part of a tax refund.
182.14 		Subd. 4.Conflict of interest. (a) No applicant may receive direct compensation from 
182.15 	a bank, credit union, other financial services provider, or vendor in exchange for the applicant 
182.16 	offering to program participants the products or services of that bank, credit union, other 
182.17 	financial services provider, or vendor.
182.18 	(b) No applicant may receive funding from a bank, credit union, other financial services 
182.19 	provider, or vendor that is contingent on the applicant offering products or services of that 
182.20 	bank, credit union, other financial services provider, or vendor to program participants.
182.21 	(c) An applicant may receive funding from a bank, credit union, other financial services 
182.22 	provider, or vendor that is not in exchange for or contingent upon the applicant offering 
182.23 	products or services of that bank, credit union, other financial services provider, or vendor 
182.24 	to program participants.
182.25 		Subd. 5.Permitted use of grant funds. (a) A grant recipient may use grant funds to 
182.26 	dedicate a staff or volunteer position to coordinate financial capability services at a VITA 
182.27 	or TCE site and to offer VITA or TCE program participants free assistance with the initiation 
182.28 	through completion of:
182.29 	(1) opening a savings and a transactional account that meet the Federal Deposit Insurance 
182.30 	Corporation's model safe accounts template standards;
182.31 	(2) depositing all or part of a tax refund into a savings or transactional account; and
182.32 	(3) purchasing a Series I United States Savings Bond with all or part of a tax refund.
183.1 	(b) A grant recipient who offers all of the financial capability services enumerated in 
183.2 	paragraph (a) may also use grant funds to provide one or more additional financial capability 
183.3 	services to VITA or TCE program participants at no cost to the participant.

183.4 	Sec. 4. Minnesota Statutes 2016, section 271.08, subdivision 1, is amended to read:
183.5 		Subdivision 1.Written order. The Tax Court, except in Small Claims Division, shall 
183.6 	determine every appeal by written order containing findings of fact and the decision of the 
183.7 	tax court. A memorandum of the grounds of the decision shall be appended. Notice of the 
183.8 	entry of the order and of the substance of the decision shall be mailed to all parties. A motion 
183.9 	for rehearing, which includes a motion for amended findings of fact, conclusions of law, 
183.10 	or a new trial, must be served by the moving party within 15 30 days after mailing of the 
183.11 	notice by the court as specified in this subdivision, and the motion must be heard within 30
183.12 	60 days thereafter, unless the time for hearing is extended by the court within the 30-day
183.13 	60-day period for good cause shown.

183.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

183.15 	Sec. 5. Minnesota Statutes 2016, section 271.21, subdivision 2, is amended to read:
183.16 		Subd. 2.Jurisdiction. At the election of the taxpayer, the Small Claims Division shall 
183.17 	have jurisdiction only in the following matters:
183.18 	(a) cases involving valuation, assessment, or taxation of real or personal property, if:
183.19 	(i) the issue is a denial of a current year application for the homestead classification for 
183.20 	the taxpayer's property;
183.21 	(ii) only one parcel is included in the petition, the entire parcel is classified as homestead 
183.22 	class 1a or 1b under section 273.13, and the parcel contains no more than one dwelling unit;
183.23 	(iii) the entire property is classified as agricultural homestead class 2a or 1b under section 
183.24 	273.13; or
183.25 	(iv) the assessor's estimated market value of the property included in the petition is less 
183.26 	than $300,000; or
183.27 	(b) any case not involving valuation, assessment, or taxation of real and personal property 
183.28 	in which the amount in controversy does not exceed $5,000 $15,000, including penalty and 
183.29 	interest.

183.30 	EFFECTIVE DATE. This section is effective for cases filed after March 31, 2017.

184.1 	Sec. 6. [289A.14] USE OF AUTOMATED SALES SUPPRESSION DEVICES.
184.2 	(a) For the purposes of sections 289A.60, subdivision 32; 289A.63, subdivision 12; and 
184.3 	609.5316, subdivision 3, the following terms have the meanings given.
184.4 	(b) "Automated sales suppression device" or "zapper" means a software program, carried 
184.5 	on any tangible medium, or accessed through any other means, that falsifies the electronic 
184.6 	records of electronic cash registers and other point-of-sale systems including, but not limited 
184.7 	to, transaction data and transaction reports.
184.8 	(c) "Electronic cash register" means a device that keeps a register or supporting documents 
184.9 	through the means of an electronic device or computer system designed to record transaction 
184.10 	data for the purpose of computing, compiling, or processing retail sales transaction data in 
184.11 	whatever manner.
184.12 	(d) "Phantom-ware" means a hidden preinstalled, or later-installed programming option 
184.13 	embedded in the operating system of an electronic cash register or hardwired into the 
184.14 	electronic cash register that can be used to create a virtual second electronic cash register 
184.15 	or may eliminate or manipulate transaction records that may or may not be preserved in 
184.16 	digital formats to represent the true or manipulated record of transactions in the electronic 
184.17 	cash register.
184.18 	(e) "Transaction data" includes items purchased by a customer; the price of each item; 
184.19 	the taxability determination for each item; a segregated tax amount for each of the taxed 
184.20 	items; the date and time of the purchase; the name, address, and identification number of 
184.21 	the vendor; and the receipt or invoice number of the transaction.
184.22 	(f) "Transaction report" means a report that includes but is not limited to the sales, taxes 
184.23 	collected, media totals, and discount voids at an electronic cash register that is printed on 
184.24 	cash register tape at the end of a day or shift, or a report documenting every action at an 
184.25 	electronic cash register that is stored electronically.

184.26 	EFFECTIVE DATE. This section is effective for activities enumerated in Minnesota 
184.27 	Statutes, 289A.60, subdivision 32, or section 289A.63, subdivision 12, that occur after 
184.28 	December 31, 2016.

184.29 	Sec. 7. Minnesota Statutes 2016, section 289A.60, is amended by adding a subdivision to 
184.30 	read:
184.31 		Subd. 32.Sales suppression. (a) A person who:
184.32 	(1) sells;
185.1 	(2) transfers;
185.2 	(3) develops;
185.3 	(4) manufactures; or
185.4 	(5) possesses with the intent to sell or transfer an automated sales suppression device, 
185.5 	zapper, phantom-ware, or similar device capable of being used to commit tax fraud or 
185.6 	suppress sales is liable for a civil penalty calculated under paragraph (b).
185.7 	(b) The amount of the civil penalty equals the greater of (1) $2,000, or (2) the total 
185.8 	amount of all taxes and penalties due that are attributable to the use of any automated sales 
185.9 	suppression device, zapper, phantom-ware, or similar device facilitated by the sale, transfer, 
185.10 	development, or manufacture of the automated sales suppression device, zapper, 
185.11 	phantom-ware, or similar device by the person.
185.12 	(c) The definitions in section 289A.14 apply to this subdivision.

185.13 	EFFECTIVE DATE. This section is effective for activities enumerated that occur after 
185.14 	December 31, 2016.

185.15 	Sec. 8. Minnesota Statutes 2016, section 289A.63, is amended by adding a subdivision to 
185.16 	read:
185.17 		Subd. 12.Felony. (a) A person who knowingly:
185.18 	(1) sells;
185.19 	(2) purchases;
185.20 	(3) installs;
185.21 	(4) transfers;
185.22 	(5) possesses;
185.23 	(6) develops;
185.24 	(7) manufactures;
185.25 	(8) accesses; or
185.26 	(9) uses an automated sales suppression device, zapper, phantom-ware, or similar device 
185.27 	knowing that the device or phantom-ware is capable of being used to commit tax fraud or 
185.28 	suppress sales is guilty of a felony and may be sentenced to imprisonment for not more than 
185.29 	five years or to a payment of a fine of not more than $10,000, or both.
186.1 	(b) An automated sales suppression device, zapper, phantom-ware, and any other device 
186.2 	containing an automated sales suppression, zapper, or phantom-ware device or software is 
186.3 	contraband and subject to forfeiture under section 609.5316.
186.4 	(c) The definitions in section 289A.14 apply to this subdivision.

186.5 	EFFECTIVE DATE. This section is effective for activities enumerated that occur after 
186.6 	December 31, 2016.

186.7 	Sec. 9. Minnesota Statutes 2016, section 290A.03, subdivision 13, is amended to read:
186.8 		Subd. 13.Property taxes payable. "Property taxes payable" means the property tax 
186.9 	exclusive of special assessments, penalties, and interest payable on a claimant's homestead 
186.10 	after deductions made under sections 273.135, 273.1384, 273.1391, 273.42, subdivision 2, 
186.11 	and any other state paid property tax credits in any calendar year, and after any refund 
186.12 	claimed and allowable under section 290A.04, subdivision 2h, that is first payable in the 
186.13 	year that the property tax is payable. In the case of a claimant who makes ground lease 
186.14 	payments, "property taxes payable" includes the amount of the payments directly attributable 
186.15 	to the property taxes assessed against the parcel on which the house is located. No 
186.16 	apportionment or reduction of the "property taxes payable" shall be required for the use of 
186.17 	a portion of the claimant's homestead for a business purpose if the claimant does not deduct 
186.18 	any business depreciation expenses for the use of a portion of the homestead, or does not 
186.19 	deduct expenses under section 280A of the Internal Revenue Code for a business operated 
186.20 	in the home, in the determination of federal adjusted gross income. For homesteads which 
186.21 	are manufactured homes as defined in section 273.125, subdivision 8, and for homesteads 
186.22 	which are park trailers taxed as manufactured homes under section 168.012, subdivision 9, 
186.23 	"property taxes payable" shall also include 17 percent of the gross rent paid in the preceding 
186.24 	year for the site on which the homestead is located. When a homestead is owned by two or 
186.25 	more persons as joint tenants or tenants in common, such tenants shall determine between 
186.26 	them which tenant may claim the property taxes payable on the homestead. If they are 
186.27 	unable to agree, the matter shall be referred to the commissioner of revenue whose decision 
186.28 	shall be final. Property taxes are considered payable in the year prescribed by law for 
186.29 	payment of the taxes.
186.30 	In the case of a claim relating to "property taxes payable," the claimant must have owned 
186.31 	and occupied the homestead on January 2 of the year in which the tax is payable and (i) the 
186.32 	property must have been classified as homestead property pursuant to section 273.124, on 
186.33 	or before December 15 of the assessment year to which the "property taxes payable" relate; 
186.34 	or (ii) the claimant must provide documentation from the local assessor that application for 
187.1 	homestead classification has been made on or before December 15 of the year in which the 
187.2 	"property taxes payable" were payable and that the assessor has approved the application.

187.3 	EFFECTIVE DATE. This section is effective for refunds based on rent paid after 
187.4 	December 31, 2015, and property taxes payable after December 31, 2016.

187.5 	Sec. 10. Minnesota Statutes 2016, section 469.169, is amended by adding a subdivision 
187.6 	to read:
187.7 		Subd. 20.Additional allocation; 2016. In addition to the tax reductions in subdivisions 
187.8 	12 to 19, $3,000,000 is allocated for tax reductions to border city enterprise zones in cities 
187.9 	located on the western border of the state. The commissioner shall allocate this amount 
187.10 	among cities on a per capita basis.  Allocations under this subdivision may be used for tax 
187.11 	reductions under sections 469.171, 469.1732, and 469.1734, or for other offsets of taxes 
187.12 	imposed on or remitted by businesses located in the enterprise zone, but only if the 
187.13 	municipality determines that the granting of the tax reduction or offset is necessary to retain 
187.14 	a business within or attract a business to the zone.

187.15 	EFFECTIVE DATE. This section is effective retroactively from July 1, 2016.

187.16 	Sec. 11. Minnesota Statutes 2016, section 609.5316, subdivision 3, is amended to read:
187.17 		Subd. 3.Weapons, telephone cloning paraphernalia, automated sales suppression 
187.18 	devices, and bullet-resistant vests. Weapons used are contraband and must be summarily 
187.19 	forfeited to the appropriate agency upon conviction of the weapon's owner or possessor for 
187.20 	a controlled substance crime; for any offense of this chapter or chapter 624, or for a violation 
187.21 	of an order for protection under section 518B.01, subdivision 14. Bullet-resistant vests, as 
187.22 	defined in section 609.486, worn or possessed during the commission or attempted 
187.23 	commission of a crime are contraband and must be summarily forfeited to the appropriate 
187.24 	agency upon conviction of the owner or possessor for a controlled substance crime or for 
187.25 	any offense of this chapter. Telephone cloning paraphernalia used in a violation of section 
187.26 	609.894, and automated sales suppression devices, phantom-ware, and other devices 
187.27 	containing an automated sales suppression or phantom-ware device or software used in 
187.28 	violation of sections 289A.60, subdivision 32, or 289A.63, subdivision 12, are contraband 
187.29 	and must be summarily forfeited to the appropriate agency upon a conviction.

187.30 	EFFECTIVE DATE. This section is effective for activities enumerated in section 
187.31 	289A.60, subdivision 32, or 289A.63, subdivision 12, that occur after December 31, 2016.

188.1 	Sec. 12. EXTENSION OF TIME FOR APPROVAL OF SPECIAL LAW 
188.2 	PROVISIONS.
 188.3 	For purposes of any special law authority provided by this act that requires approval by 
188.4 	the governing body of a local government unit under Minnesota Statutes, section 469.1782 
188.5 	or 645.021, the required time for approval and filing with the secretary of state under those 
188.6 	provisions is extended to April 1, 2017.

188.7 	EFFECTIVE DATE. This section is effective the day following final enactment.

188.8 	Sec. 13. APPROPRIATIONS.
 188.9 		Subdivision 1.New markets grant program. $30,000,000 in fiscal year 2017 is 
188.10 	appropriated from the general fund to the commissioner of employment and economic 
188.11 	development for the new markets grant program under Minnesota Statutes, section 116J.952. 
188.12 	This appropriation is a onetime appropriation and is available until June 30, 2024. The 
188.13 	commissioner may award grants of up to $10,000,000 per fiscal year.
188.14 		Subd. 2.Department of Revenue. $5,000,000 in fiscal year 2018 is appropriated from 
188.15 	the general fund to the commissioner of revenue for administering this act. The funding 
188.16 	base for this appropriation in fiscal year 2019 and thereafter is $2,000,000.
188.17 		Subd. 3.Tax time savings grant program. (a) $400,000 is appropriated in fiscal year 
188.18 	2018 from the general fund to the commissioner of revenue to make grants under the tax 
188.19 	time savings grant program under Minnesota Statutes, section 270C.22. Of this amount, up 
188.20 	to five percent may be used for the administration of the tax time savings grant program.
188.21 	(b) The base funding for the grant program authorized under paragraph (a) is $400,000 
188.22 	each year.
188.23 		Subd. 4.Taxpayer assistance grants. (a) $400,000 is appropriated in fiscal year 2018 
188.24 	from the general fund to the commissioner of revenue for the provision of taxpayer assistance 
188.25 	grants under Minnesota Statutes, section 270C.21, in addition to the current base funding 
188.26 	for the program. Of the amount appropriated under this paragraph and the current base 
188.27 	funding for the provision of taxpayer assistance grants, up to five percent may be used for 
188.28 	the administration of the taxpayer assistance grants program.
188.29 	(b) Beginning in fiscal year 2018, the total base funding for the program under paragraph 
188.30 	(a) is $800,000 each year. This amount includes the base funding of $400,000 each year 
188.31 	established in Laws 2015, chapter 77, article 1, section 14, subdivision 2, paragraph (a).
189.1 		Subd. 5.Local government grants. (a) The following amounts are appropriated in fiscal 
189.2 	year 2017 only from the general fund to the commissioner of revenue for grants that shall 
189.3 	be paid by March 31, 2017, and allocated as follows:
189.4 	(1) $1,200,000 to the city of Madelia;
189.5 	(2) $465,000 to the city of Hibbing; and
189.6 	(3) $52,288 to Stearns County.
189.7 	(b) The following amounts are appropriated in fiscal year 2017 only from the general 
189.8 	fund to the commissioner of revenue for grants that shall be paid by June 30, 2017, and 
189.9 	allocated as follows:
189.10 	(1) $3,000,000 to Mahnomen County. Of this amount, $1,000,000 must be paid from 
189.11 	the county to the White Earth Band of Ojibwe and $1,000,000 must be used for the 
189.12 	Mahnomen Health Center;
189.13 	(2) $1,130,000 to Hennepin County. Of this amount, $730,000 must be used for the 
189.14 	North Branch Library EMERGE Career and Technology Center, and $400,000 must be 
189.15 	used for the Cedar Riverside Opportunity Center; and
189.16 	(3) $150,000 to the city of Lilydale.
189.17 	(c) All of the appropriations under this subdivision are onetime and are not added to the 
189.18 	base budget.

189.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

189.20 	Sec. 14. APPROPRIATION CANCELLATION.
 189.21 	All unspent funds, estimated to be $7,100,000, for a grant or forgivable loan to Hoyt 
189.22 	Lakes pursuant to Laws 2014, chapter 312, article 2, section 2, subdivision 6, are canceled 
189.23 	to the Minnesota minerals 21st century fund on June 1, 2017.

189.24 	ARTICLE 12
189.25 	DEPARTMENT POLICY AND TECHNICAL PROVISIONS; INCOME, 
189.26 	CORPORATE FRANCHISE, AND ESTATE TAXES

189.27 	Section 1. Minnesota Statutes 2016, section 289A.08, subdivision 11, is amended to read:
189.28 		Subd. 11.Information included in income tax return. (a) The return must state:
190.1 	(1) the name of the taxpayer, or taxpayers, if the return is a joint return, and the address 
190.2 	of the taxpayer in the same name or names and same address as the taxpayer has used in 
190.3 	making the taxpayer's income tax return to the United States;
190.4 	(2) the date or dates of birth of the taxpayer or taxpayers;
190.5 	(3) the Social Security number of the taxpayer, or taxpayers, if a Social Security number 
190.6 	has been issued by the United States with respect to the taxpayers; and
190.7 	(4) the amount of the taxable income of the taxpayer as it appears on the federal return 
190.8 	for the taxable year to which the Minnesota state return applies.
190.9 	(b) The taxpayer must attach to the taxpayer's Minnesota state income tax return a copy 
190.10 	of the federal income tax return that the taxpayer has filed or is about to file for the period, 
190.11 	unless the taxpayer is eligible to telefile the federal return and does file the Minnesota return 
190.12 	by telefiling.

190.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

190.14 	Sec. 2. Minnesota Statutes 2016, section 289A.08, subdivision 16, is amended to read:
190.15 		Subd. 16.Tax refund or return preparers; electronic filing; paper filing fee imposed.
 190.16 	(a) A "tax refund or return preparer," as defined in section 289A.60, subdivision 13, paragraph 
190.17 	(f), who is a tax return preparer for purposes of section 6011(e) of the Internal Revenue 
190.18 	Code, and who reasonably expects to prepare more than ten Minnesota individual income, 
190.19 	corporate franchise, S corporation, partnership, or fiduciary income tax returns for the prior 
190.20 	calendar year must file all Minnesota individual income, corporate franchise, S corporation, 
190.21 	partnership, or fiduciary income tax returns prepared for that calendar year by electronic 
190.22 	means.
190.23 	(b) Paragraph (a) does not apply to a return if the taxpayer has indicated on the return 
190.24 	that the taxpayer did not want the return filed by electronic means.
190.25 	(c) For each return that is not filed electronically by a tax refund or return preparer under 
190.26 	this subdivision, including returns filed under paragraph (b), a paper filing fee of $5 is 
190.27 	imposed upon the preparer. The fee is collected from the preparer in the same manner as 
190.28 	income tax. The fee does not apply to returns that the commissioner requires to be filed in 
190.29 	paper form.

190.30 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
190.31 	31, 2016.

191.1 	Sec. 3. Minnesota Statutes 2016, section 289A.09, subdivision 2, is amended to read:
191.2 		Subd. 2.Withholding statement. (a) A person required to deduct and withhold from 
191.3 	an employee a tax under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, or 
191.4 	who would have been required to deduct and withhold a tax under section 290.92, subdivision 
191.5 	2a or 3, or persons required to withhold tax under section 290.923, subdivision 2, determined 
191.6 	without regard to section 290.92, subdivision 19, if the employee or payee had claimed no 
191.7 	more than one withholding exemption, or who paid wages or made payments not subject 
191.8 	to withholding under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, to an 
191.9 	employee or person receiving royalty payments in excess of $600, or who has entered into 
191.10 	a voluntary withholding agreement with a payee under section 290.92, subdivision 20, must 
191.11 	give every employee or person receiving royalty payments in respect to the remuneration 
191.12 	paid by the person to the employee or person receiving royalty payments during the calendar 
191.13 	year, on or before January 31 of the succeeding year, or, if employment is terminated before 
191.14 	the close of the calendar year, within 30 days after the date of receipt of a written request 
191.15 	from the employee if the 30-day period ends before January 31, a written statement showing 
191.16 	the following:
191.17 	(1) name of the person;
191.18 	(2) the name of the employee or payee and the employee's or payee's Social Security 
191.19 	account number;
191.20 	(3) the total amount of wages as that term is defined in section 290.92, subdivision 1, 
191.21 	paragraph (1); the total amount of remuneration subject to withholding under section 290.92, 
191.22 	subdivision 20; the amount of sick pay as required under section 6051(f) of the Internal 
191.23 	Revenue Code; and the amount of royalties subject to withholding under section 290.923, 
191.24 	subdivision 2; and
191.25 	(4) the total amount deducted and withheld as tax under section 290.92, subdivision 2a
191.26 	or 3, or 290.923, subdivision 2.
191.27 	(b) The statement required to be furnished by paragraph (a) with respect to any 
191.28 	remuneration must be furnished at those times, must contain the information required, and 
191.29 	must be in the form the commissioner prescribes.
191.30 	(c) The commissioner may prescribe rules providing for reasonable extensions of time, 
191.31 	not in excess of 30 days, to employers or payers required to give the statements to their 
191.32 	employees or payees under this subdivision.
192.1 	(d) A duplicate of any statement made under this subdivision and in accordance with 
192.2 	rules prescribed by the commissioner, along with a reconciliation in the form the 
192.3 	commissioner prescribes of the statements for the calendar year, including a reconciliation 
192.4 	of the quarterly returns required to be filed under subdivision 1, must be filed with the 
192.5 	commissioner on or before February 28 January 31 of the year after the payments were 
192.6 	made.
192.7 	(e) If an employer cancels the employer's Minnesota withholding account number required 
192.8 	by section 290.92, subdivision 24, the information required by paragraph (d), must be filed 
192.9 	with the commissioner within 30 days of the end of the quarter in which the employer 
192.10 	cancels its account number.
192.11 	(f) The employer must submit the statements required to be sent to the commissioner in 
192.12 	the same manner required to satisfy the federal reporting requirements of section 6011(e) 
192.13 	of the Internal Revenue Code and the regulations issued under it. An employer must submit 
192.14 	statements to the commissioner required by this section by electronic means if the employer 
192.15 	is required to send more than 25 statements to the commissioner, even though the employer 
192.16 	is not required to submit the returns federally by electronic means. For statements issued 
192.17 	for wages paid in 2011 and after, the threshold is ten. All statements issued for withholding 
192.18 	required under section 290.92 are aggregated for purposes of determining whether the 
192.19 	electronic submission threshold is met. The commissioner shall prescribe the content, format, 
192.20 	and manner of the statement pursuant to section 270C.30.
192.21 	(g) A "third-party bulk filer" as defined in section 290.92, subdivision 30, paragraph 
192.22 	(a), clause (2), must submit the returns required by this subdivision and subdivision 1, 
192.23 	paragraph (a), with the commissioner by electronic means.

192.24 	EFFECTIVE DATE. This section is effective for statements required to be sent to the 
192.25 	commissioner after December 31, 2017, except that the date change in paragraph (d) is 
192.26 	effective for wages paid after December 31, 2016.

192.27 	Sec. 4. Minnesota Statutes 2016, section 289A.12, subdivision 14, is amended to read:
192.28 		Subd. 14.Regulated investment companies; Reporting exempt interest and 
192.29 	exempt-interest dividends. (a) A regulated investment company paying $10 or more in 
192.30 	exempt-interest dividends to an individual who is a resident of Minnesota, or any person 
192.31 	receiving $10 or more of exempt interest or exempt-interest dividends and paying as nominee 
192.32 	to an individual who is a resident of Minnesota, must make a return indicating the amount 
192.33 	of the exempt interest or exempt-interest dividends, the name, address, and Social Security 
192.34 	number of the recipient, and any other information that the commissioner specifies. The 
193.1 	return must be provided to the shareholder recipient by February 15 of the year following 
193.2 	the year of the payment. The return provided to the shareholder recipient must include a 
193.3 	clear statement, in the form prescribed by the commissioner, that the exempt interest or 
193.4 	exempt-interest dividends must be included in the computation of Minnesota taxable income. 
193.5 	By June 1 of each year, the regulated investment company payor must file a copy of the 
193.6 	return with the commissioner.
193.7 	(b) For purposes of this subdivision, the following definitions apply.
193.8 	(1) "Exempt-interest dividends" mean exempt-interest dividends as defined in section 
193.9 	852(b)(5) of the Internal Revenue Code, but does not include the portion of exempt-interest 
193.10 	dividends that are not required to be added to federal taxable income under section 290.0131, 
193.11 	subdivision 2, paragraph (b).
193.12 	(2) "Regulated investment company" means regulated investment company as defined 
193.13 	in section 851(a) of the Internal Revenue Code or a fund of the regulated investment company 
193.14 	as defined in section 851(g) of the Internal Revenue Code.
193.15 	(3) "Exempt interest" means income on obligations of any state other than Minnesota, 
193.16 	or a political or governmental subdivision, municipality, or governmental agency or 
193.17 	instrumentality of any state other than Minnesota, and exempt from federal income taxes 
193.18 	under the Internal Revenue Code or any other federal statute.

193.19 	EFFECTIVE DATE. This section is effective for reports required to be filed after 
193.20 	December 31, 2017.

193.21 	Sec. 5. Minnesota Statutes 2016, section 289A.18, is amended by adding a subdivision to 
193.22 	read:
193.23 		Subd. 2a.Annual withholding returns; eligible employers. (a) An employer who 
193.24 	deducts and withholds an amount required to be withheld by section 290.92 may file an 
193.25 	annual return and make an annual payment of the amount required to be deducted and 
193.26 	withheld for that calendar year if the employer has received a notification under paragraph 
193.27 	(b). The ability to elect to file an annual return continues through the year following the 
193.28 	year where an employer is required to deduct and withhold more than $500.
193.29 	(b) The commissioner is authorized to determine which employers are eligible to file 
193.30 	an annual return and to notify employers who newly qualify to file an annual return because 
193.31 	the amount an employer is required to deduct and withhold for that calendar year is $500 
193.32 	or less based on the most recent period of four consecutive quarters for which the 
193.33 	commissioner has compiled data on that employer's withholding tax for that period. At the 
194.1 	time of notification, eligible employers may still decide to file returns and make deposits 
194.2 	quarterly. An employer who decides to file returns and make deposits quarterly is required 
194.3 	to make all returns and deposits required by this chapter and, notwithstanding paragraph 
194.4 	(a), is subject to all applicable penalties for failing to do so.
194.5 	(c) If, at the end of any calendar month other than the last month of the calendar year, 
194.6 	the aggregate amount of undeposited tax withheld by an employer who has elected to file 
194.7 	an annual return exceeds $500, the employer must deposit the aggregate amount with the 
194.8 	commissioner within 30 days of the end of the calendar month.
194.9 	(d) If an employer who has elected to file an annual return ceases to pay wages for which 
194.10 	withholding is required, the employer must file a final return and deposit any undeposited 
194.11 	tax within 30 days of the end of the calendar month following the month in which the 
194.12 	employer ceased paying wages.
194.13 	(e) An employer not subject to paragraph (c) or (d) who elects to file an annual return 
194.14 	must file the return and pay the tax not previously deposited before February 1 of the year 
194.15 	following the year in which the tax was withheld.
194.16 	(f) A notification to an employer regarding eligibility to file an annual return under 
194.17 	Minnesota Rules, part 8092.1400, is considered a notification under paragraph (a).

194.18 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
194.19 	31, 2016.

194.20 	Sec. 6. Minnesota Statutes 2016, section 289A.20, subdivision 2, is amended to read:
194.21 		Subd. 2.Withholding from wages, entertainer withholding, withholding from 
194.22 	payments to out-of-state contractors, and withholding by partnerships, small business 
194.23 	corporations, trusts. (a) Except as provided in section 289A.18, subdivision 2a, a tax 
194.24 	required to be deducted and withheld during the quarterly period must be paid on or before 
194.25 	the last day of the month following the close of the quarterly period, unless an earlier time 
194.26 	for payment is provided. A tax required to be deducted and withheld from compensation 
194.27 	of an entertainer and from a payment to an out-of-state contractor must be paid on or before 
194.28 	the date the return for such tax must be filed under section 289A.18, subdivision 2. Taxes 
194.29 	required to be deducted and withheld by partnerships, S corporations, and trusts must be 
194.30 	paid on a quarterly basis as estimated taxes under section 289A.25 for partnerships and 
194.31 	trusts and under section 289A.26 for S corporations.
194.32 	(b) An employer who, during the previous quarter, withheld more than $1,500 of tax 
194.33 	under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, must deposit tax 
195.1 	withheld under those sections with the commissioner within the time allowed to deposit the 
195.2 	employer's federal withheld employment taxes under Code of Federal Regulations, title 26, 
195.3 	section 31.6302-1, as amended through December 31, 2001, without regard to the safe 
195.4 	harbor or de minimis rules in paragraph (f) or the one-day rule in paragraph (c)(3). Taxpayers 
195.5 	must submit a copy of their federal notice of deposit status to the commissioner upon request 
195.6 	by the commissioner.
195.7 	(c) The commissioner may prescribe by rule other return periods or deposit requirements. 
195.8 	In prescribing the reporting period, the commissioner may classify payors according to the 
195.9 	amount of their tax liability and may adopt an appropriate reporting period for the class that 
195.10 	the commissioner judges to be consistent with efficient tax collection. In no event will the 
195.11 	duration of the reporting period be more than one year.
195.12 	(d) If less than the correct amount of tax is paid to the commissioner, proper adjustments 
195.13 	with respect to both the tax and the amount to be deducted must be made, without interest, 
195.14 	in the manner and at the times the commissioner prescribes. If the underpayment cannot be 
195.15 	adjusted, the amount of the underpayment will be assessed and collected in the manner and 
195.16 	at the times the commissioner prescribes.
195.17 	(e) If the aggregate amount of the tax withheld is $10,000 or more in a fiscal year ending 
195.18 	June 30, the employer must remit each required deposit for wages paid in all subsequent 
195.19 	calendar years by electronic means.
195.20 	(f) A third-party bulk filer as defined in section 290.92, subdivision 30, paragraph (a), 
195.21 	clause (2), who remits withholding deposits must remit all deposits by electronic means as 
195.22 	provided in paragraph (e), regardless of the aggregate amount of tax withheld during a fiscal 
195.23 	year for all of the employers.

195.24 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
195.25 	31, 2016.

195.26 	Sec. 7. Minnesota Statutes 2016, section 289A.31, subdivision 1, is amended to read:
195.27 		Subdivision 1.Individual income, fiduciary income, mining company, corporate 
195.28 	franchise, and entertainment taxes. (a) Individual income, fiduciary income, mining 
195.29 	company, and corporate franchise taxes, and interest and penalties, must be paid by the 
195.30 	taxpayer upon whom the tax is imposed, except in the following cases:
195.31 	(1) The tax due from a decedent for that part of the taxable year in which the decedent 
195.32 	died during which the decedent was alive and the taxes, interest, and penalty due for the 
195.33 	prior years must be paid by the decedent's personal representative, if any. If there is no 
196.1 	personal representative, the taxes, interest, and penalty must be paid by the transferees, as 
196.2 	defined in section 270C.58, subdivision 3, to the extent they receive property from the 
196.3 	decedent;
196.4 	(2) The tax due from an infant or other incompetent person must be paid by the person's 
196.5 	guardian or other person authorized or permitted by law to act for the person;
196.6 	(3) The tax due from the estate of a decedent must be paid by the estate's personal 
196.7 	representative;
196.8 	(4) The tax due from a trust, including those within the definition of a corporation, as 
196.9 	defined in section 290.01, subdivision 4, must be paid by a trustee; and
196.10 	(5) The tax due from a taxpayer whose business or property is in charge of a receiver, 
196.11 	trustee in bankruptcy, assignee, or other conservator, must be paid by the person in charge 
196.12 	of the business or property so far as the tax is due to the income from the business or property.
196.13 	(b) Entertainment taxes are the joint and several liability of the entertainer and the 
196.14 	entertainment entity. The payor is liable to the state for the payment of the tax required to 
196.15 	be deducted and withheld under section 290.9201, subdivision 7, and is not liable to the 
196.16 	entertainer for the amount of the payment.
196.17 	(c) The tax taxes imposed under section sections 289A.35 and290.0922 on partnerships 
196.18 	is are the joint and several liability of the partnership and the general partners.

196.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

196.20 	Sec. 8. Minnesota Statutes 2016, section 289A.35, is amended to read:
196.21 	289A.35 ASSESSMENTS ON RETURNS.
196.22 	(a) The commissioner may audit and adjust the taxpayer's computation of federal taxable 
196.23 	income, items of federal tax preferences, or federal credit amounts to make them conform 
196.24 	with the provisions of chapter 290 or section 298.01. If a return has been filed, the 
196.25 	commissioner shall enter the liability reported on the return and may make any audit or 
196.26 	investigation that is considered necessary.
196.27 	(b) Upon petition by a taxpayer, and when the commissioner determines that it is in the 
196.28 	best interest of the state, the commissioner may allow S corporations and partnerships to 
196.29 	receive orders of assessment issued under section 270C.33, subdivision 4, on behalf of their 
196.30 	owners, and to pay liabilities shown on such orders. In such cases, the owners' liability must 
196.31 	be calculated using the method provided in section 289A.08, subdivision 7, paragraph (b).
197.1 	(c) A taxpayer may petition the commissioner for the use of the method described in 
197.2 	paragraph (b) after the taxpayer is notified that an audit has been initiated and before an 
197.3 	order of assessment has been issued.
197.4 	(d) A determination of the commissioner under paragraph (b) to grant or deny the petition 
197.5 	of a taxpayer cannot be appealed to the Tax Court or any other court.
197.6 	(b) (e) The commissioner may audit and adjust the taxpayer's computation of tax under 
197.7 	chapter 291. In the case of a return filed pursuant to section 289A.10, the commissioner 
197.8 	shall notify the estate no later than nine months after the filing date, as provided by section 
197.9 	289A.38, subdivision 2, whether the return is under examination or the return has been 
197.10 	processed as filed.

197.11 	EFFECTIVE DATE. This section is effective the day following final enactment.

197.12 	Sec. 9. Minnesota Statutes 2016, section 289A.60, subdivision 28, is amended to read:
197.13 		Subd. 28.Preparer identification number. Any Minnesota individual income tax return 
197.14 	or claim for refund prepared by a "tax refund or return preparer" as defined in subdivision 
197.15 	13, paragraph (f), shall bear the identification number the preparer is required to use federally 
197.16 	under section 6109(a)(4) of the Internal Revenue Code. A tax refund or return preparer who 
197.17 	prepares a Minnesota individual income tax return required by section 289A.08, subdivisions 
197.18 	1, 2, 3, and 7; or 289A.12, subdivision 3, or claim for refund and fails to include the required 
197.19 	number on the return or claim is subject to a penalty of $50 for each failure.

197.20 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
197.21 	31, 2016.

197.22 	Sec. 10. Minnesota Statutes 2016, section 290.0672, subdivision 1, is amended to read:
197.23 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
197.24 	the meanings given.
197.25 	(b) "Long-term care insurance" means a policy that:
197.26 	(1) qualifies for a deduction under section 213 of the Internal Revenue Code, disregarding 
197.27 	the 7.5 percent adjusted gross income test; or meets the requirements given in section 62A.46; 
197.28 	or provides similar coverage issued under the laws of another jurisdiction; and
197.29 	(2) has a lifetime long-term care benefit limit of not less than $100,000; and
197.30 	(3) has been offered in compliance with the inflation protection requirements of section 
197.31 	62S.23.
198.1 	(c) "Qualified beneficiary" means the taxpayer or the taxpayer's spouse.
198.2 	(d) "Premiums deducted in determining federal taxable income" means the lesser of (1) 
198.3 	long-term care insurance premiums that qualify as deductions under section 213 of the 
198.4 	Internal Revenue Code; and (2) the total amount deductible for medical care under section 
198.5 	213 of the Internal Revenue Code.

198.6 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
198.7 	after December 31, 2012.

198.8 	Sec. 11. Minnesota Statutes 2016, section 290.068, subdivision 2, is amended to read:
198.9 		Subd. 2.Definitions. For purposes of this section, the following terms have the meanings 
198.10 	given.
198.11 	(a) "Qualified research expenses" means (i) qualified research expenses and basic research 
198.12 	payments as defined in section 41(b) and (e) of the Internal Revenue Code, except it does 
198.13 	not include expenses incurred for qualified research or basic research conducted outside 
198.14 	the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue Code; and 
198.15 	(ii) contributions to a nonprofit corporation established and operated pursuant to the 
198.16 	provisions of chapter 317A for the purpose of promoting the establishment and expansion 
198.17 	of business in this state, provided the contributions are invested by the nonprofit corporation 
198.18 	for the purpose of providing funds for small, technologically innovative enterprises in 
198.19 	Minnesota during the early stages of their development.
198.20 	(b) "Qualified research" means qualified research as defined in section 41(d) of the 
198.21 	Internal Revenue Code, except that the term does not include qualified research conducted 
198.22 	outside the state of Minnesota.
198.23 	(c) "Base amount" means base amount as defined in section 41(c) of the Internal Revenue 
198.24 	Code, except that the average annual gross receipts and aggregate gross receipts must be 
198.25 	calculated using Minnesota sales or receipts under section 290.191 and the definitions 
198.26 	contained in clauses paragraphs (a) and (b) shall apply.

198.27 	EFFECTIVE DATE. This section is effective the day following final enactment.

198.28 	Sec. 12. Minnesota Statutes 2016, section 290.17, subdivision 2, is amended to read:
198.29 		Subd. 2.Income not derived from conduct of a trade or business. The income of a 
198.30 	taxpayer subject to the allocation rules that is not derived from the conduct of a trade or 
198.31 	business must be assigned in accordance with paragraphs (a) to (f):
199.1 	(a)(1) Subject to paragraphs (a)(2) and (a)(3), income from wages as defined in section 
199.2 	3401(a) and (f) of the Internal Revenue Code is assigned to this state if, and to the extent 
199.3 	that, the work of the employee is performed within it; all other income from such sources 
199.4 	is treated as income from sources without this state.
199.5 	Severance pay shall be considered income from labor or personal or professional services.
199.6 	(2) In the case of an individual who is a nonresident of Minnesota and who is an athlete 
199.7 	or entertainer, income from compensation for labor or personal services performed within 
199.8 	this state shall be determined in the following manner:
199.9 	(i) The amount of income to be assigned to Minnesota for an individual who is a 
199.10 	nonresident salaried athletic team employee shall be determined by using a fraction in which 
199.11 	the denominator contains the total number of days in which the individual is under a duty 
199.12 	to perform for the employer, and the numerator is the total number of those days spent in 
199.13 	Minnesota. For purposes of this paragraph, off-season training activities, unless conducted 
199.14 	at the team's facilities as part of a team imposed program, are not included in the total number 
199.15 	of duty days. Bonuses earned as a result of play during the regular season or for participation 
199.16 	in championship, play-off, or all-star games must be allocated under the formula. Signing 
199.17 	bonuses are not subject to allocation under the formula if they are not conditional on playing 
199.18 	any games for the team, are payable separately from any other compensation, and are 
199.19 	nonrefundable; and
199.20 	(ii) The amount of income to be assigned to Minnesota for an individual who is a 
199.21 	nonresident, and who is an athlete or entertainer not listed in clause (i), for that person's 
199.22 	athletic or entertainment performance in Minnesota shall be determined by assigning to this 
199.23 	state all income from performances or athletic contests in this state.
199.24 	(3) For purposes of this section, amounts received by a nonresident as "retirement income" 
199.25 	as defined in section (b)(1) of the State Income Taxation of Pension Income Act, Public 
199.26 	Law 104-95, are not considered income derived from carrying on a trade or business or 
199.27 	from wages or other compensation for work an employee performed in Minnesota, and are 
199.28 	not taxable under this chapter.
199.29 	(b) Income or gains from tangible property located in this state that is not employed in 
199.30 	the business of the recipient of the income or gains must be assigned to this state.
199.31 	(c) Income or gains from intangible personal property not employed in the business of 
199.32 	the recipient of the income or gains must be assigned to this state if the recipient of the 
199.33 	income or gains is a resident of this state or is a resident trust or estate.
200.1 	Gain on the sale of a partnership interest is allocable to this state in the ratio of the 
200.2 	original cost of partnership tangible property in this state to the original cost of partnership 
200.3 	tangible property everywhere, determined at the time of the sale. If more than 50 percent 
200.4 	of the value of the partnership's assets consists of intangibles, gain or loss from the sale of 
200.5 	the partnership interest is allocated to this state in accordance with the sales factor of the 
200.6 	partnership for its first full tax period immediately preceding the tax period of the partnership 
200.7 	during which the partnership interest was sold.
200.8 	Gain on the sale of an interest in a single member limited liability company that is 
200.9 	disregarded for federal income tax purposes is allocable to this state as if the single member 
200.10 	limited liability company did not exist and the assets of the limited liability company are 
200.11 	personally owned by the sole member.
200.12 	Gain on the sale of goodwill or income from a covenant not to compete that is connected 
200.13 	with a business operating all or partially in Minnesota is allocated to this state to the extent 
200.14 	that the income from the business in the year preceding the year of sale was assignable
200.15 	allocable to Minnesota under subdivision 3.
200.16 	When an employer pays an employee for a covenant not to compete, the income allocated 
200.17 	to this state is in the ratio of the employee's service in Minnesota in the calendar year 
200.18 	preceding leaving the employment of the employer over the total services performed by the 
200.19 	employee for the employer in that year.
200.20 	(d) Income from winnings on a bet made by an individual while in Minnesota is assigned 
200.21 	to this state. In this paragraph, "bet" has the meaning given in section 609.75, subdivision 
200.22 	2, as limited by section 609.75, subdivision 3, clauses (1), (2), and (3).
200.23 	(e) All items of gross income not covered in paragraphs (a) to (d) and not part of the 
200.24 	taxpayer's income from a trade or business shall be assigned to the taxpayer's domicile.
200.25 	(f) For the purposes of this section, working as an employee shall not be considered to 
200.26 	be conducting a trade or business.

200.27 	EFFECTIVE DATE. This section is effective the day following final enactment.

200.28 	Sec. 13. Minnesota Statutes 2016, section 290.31, subdivision 1, is amended to read:
200.29 		Subdivision 1.Partners, not partnership, subject to tax. Except as provided under 
200.30 	section 289A.35, paragraph (b), a partnership as such shall not be subject to the income tax 
200.31 	imposed by this chapter, but is subject to the tax imposed under section 290.0922. Persons 
200.32 	carrying on business as partners shall be liable for income tax only in their separate or 
200.33 	individual capacities.

201.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

201.2 	Sec. 14. Minnesota Statutes 2016, section 290A.19, is amended to read:
201.3 	290A.19 OWNER OR MANAGING AGENT TO FURNISH RENT CERTIFICATE.
201.4 	(a) The owner or managing agent of any property for which rent is paid for occupancy 
201.5 	as a homestead must furnish a certificate of rent paid to a person who is a renter on December 
201.6 	31, in the form prescribed by the commissioner. If the renter moves before December 31, 
201.7 	the owner or managing agent may give the certificate to the renter at the time of moving, 
201.8 	or mail the certificate to the forwarding address if an address has been provided by the 
201.9 	renter. The certificate must be made available to the renter before February 1 of the year 
201.10 	following the year in which the rent was paid. The owner or managing agent must retain a 
201.11 	duplicate of each certificate or an equivalent record showing the same information for a 
201.12 	period of three years. The duplicate or other record must be made available to the 
201.13 	commissioner upon request.
201.14 	(b) The commissioner may require the owner or managing agent, through a simple 
201.15 	process, to furnish to the commissioner on or before March 1 a copy of each certificate of 
201.16 	rent paid furnished to a renter for rent paid in the prior year, in the content, format, and 
201.17 	manner prescribed by the commissioner pursuant to section 270C.30. Prior to implementation, 
201.18 	the commissioner, after consulting with representatives of owners or managing agents, shall 
201.19 	develop an implementation and administration plan for the requirements of this paragraph 
201.20 	that attempts to minimize financial burdens, administration and compliance costs, and takes 
201.21 	into consideration existing systems of owners and managing agents.
201.22 	(c) For the purposes of this section, "owner" includes a park owner as defined under 
201.23 	section 327C.01, subdivision 6, and "property" includes a lot as defined under section 
201.24 	327C.01, subdivision 3.

201.25 	EFFECTIVE DATE. This section is effective for certificates of rent paid furnished to 
201.26 	a renter for rent paid after December 31, 2016.

201.27 	Sec. 15. Minnesota Statutes 2016, section 291.016, subdivision 2, is amended to read:
201.28 		Subd. 2.Additions. The following amounts, to the extent deducted in computing or 
201.29 	otherwise excluded from the federal taxable estate, must be added in computing the 
201.30 	Minnesota taxable estate:
201.31 	(1) the amount of the deduction for state death taxes allowed under section 2058 of the 
201.32 	Internal Revenue Code;
202.1 	(2) the amount of the deduction for foreign death taxes allowed under section 2053(d) 
202.2 	of the Internal Revenue Code; and
202.3 	(3) the aggregate amount of taxable gifts as defined in section 2503 of the Internal 
202.4 	Revenue Code, made by the decedent within three years of the date of death. For purposes 
202.5 	of this clause, the amount of the addition equals the value of the gift under section 2512 of 
202.6 	the Internal Revenue Code and excludes any value of the gift included in the federal estate.

202.7 	EFFECTIVE DATE. This section is effective retroactively for estates of decedents 
202.8 	dying after June 30, 2013.

202.9 	Sec. 16. Minnesota Statutes 2016, section 291.016, subdivision 3, is amended to read:
202.10 		Subd. 3.Subtraction. The following amounts, to the extent included in computing the 
202.11 	federal taxable estate, may be subtracted in computing the Minnesota taxable estate but 
202.12 	must not reduce the Minnesota taxable estate to less than zero:
202.13 	(1) the value of property subject to an election under section 291.03, subdivision 1d; 
202.14 	and
202.15 	(2) the value of qualified small business property under section 291.03, subdivision 9, 
202.16 	and the value of qualified farm property under section 291.03, subdivision 10, or the result 
202.17 	of $5,000,000 minus the amount for the year of death listed in clauses (1) to (5) items (i) 
202.18 	to (v), whichever is less, may be subtracted in computing the Minnesota taxable estate but 
202.19 	must not reduce the Minnesota taxable estate to less than zero:
202.20 	(1) (i) $1,200,000 for estates of decedents dying in 2014;
202.21 	(2) (ii) $1,400,000 for estates of decedents dying in 2015;
202.22 	(3) (iii) $1,600,000 for estates of decedents dying in 2016;
202.23 	(4) (iv) $1,800,000 for estates of decedents dying in 2017; and
202.24 	(5) (v) $2,000,000 for estates of decedents dying in 2018 and thereafter.

202.25 	EFFECTIVE DATE. This section is effective retroactively for estates of decedents 
202.26 	dying after June 30, 2011.

202.27 	Sec. 17. Minnesota Statutes 2016, section 291.03, subdivision 9, is amended to read:
202.28 		Subd. 9.Qualified small business property. Property satisfying all of the following 
202.29 	requirements is qualified small business property:
202.30 	(1) The value of the property was included in the federal adjusted taxable estate.
203.1 	(2) The property consists of the assets of a trade or business or shares of stock or other 
203.2 	ownership interests in a corporation or other entity engaged in a trade or business. Shares 
203.3 	of stock in a corporation or an ownership interest in another type of entity do not qualify 
203.4 	under this subdivision if the shares or ownership interests are traded on a public stock 
203.5 	exchange at any time during the three-year period ending on the decedent's date of death. 
203.6 	For purposes of this subdivision, an ownership interest includes the interest the decedent is 
203.7 	deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code.
203.8 	(3) During the taxable year that ended before the decedent's death, the trade or business 
203.9 	must not have been a passive activity within the meaning of section 469(c) of the Internal 
203.10 	Revenue Code, and the decedent or the decedent's spouse must have materially participated 
203.11 	in the trade or business within the meaning of section 469(h) of the Internal Revenue Code, 
203.12 	excluding section 469(h)(3) of the Internal Revenue Code and any other provision provided 
203.13 	by United States Treasury Department regulation that substitutes material participation in 
203.14 	prior taxable years for material participation in the taxable year that ended before the 
203.15 	decedent's death.
203.16 	(4) The gross annual sales of the trade or business were $10,000,000 or less for the last 
203.17 	taxable year that ended before the date of the death of the decedent.
203.18 	(5) The property does not consist of include:
203.19 	(i) cash,;
203.20 	(ii) cash equivalents,;
203.21 	(iii) publicly traded securities,; or
203.22 	(iv) any assets not used in the operation of the trade or business.
203.23 	(6) For property consisting of shares of stock or other ownership interests in an entity, 
203.24 	the value of cash, cash equivalents, publicly traded securities, or assets not used in the 
203.25 	operation of the trade or business held by the corporation or other entity items described in 
203.26 	clause (5) must be deducted from the value of the property qualifying under this subdivision 
203.27 	in proportion to the decedent's share of ownership of the entity on the date of death excluded 
203.28 	in the valuation of the decedent's interest in the entity.
203.29 	(6) (7) The decedent continuously owned the property, including property the decedent 
203.30 	is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code, for 
203.31 	the three-year period ending on the date of death of the decedent. In the case of a sole 
203.32 	proprietor, if the property replaced similar property within the three-year period, the 
204.1 	replacement property will be treated as having been owned for the three-year period ending 
204.2 	on the date of death of the decedent.
204.3 	(7) (8) For three years following the date of death of the decedent, the trade or business 
204.4 	is not a passive activity within the meaning of section 469(c) of the Internal Revenue Code, 
204.5 	and a family member materially participates in the operation of the trade or business within 
204.6 	the meaning of section 469(h) of the Internal Revenue Code, excluding section 469(h)(3) 
204.7 	of the Internal Revenue Code and any other provision provided by United States Treasury 
204.8 	Department regulation that substitutes material participation in prior taxable years for 
204.9 	material participation in the three years following the date of death of the decedent.
204.10 	(8) (9) The estate and the qualified heir elect to treat the property as qualified small 
204.11 	business property and agree, in the form prescribed by the commissioner, to pay the recapture 
204.12 	tax under subdivision 11, if applicable.

204.13 	EFFECTIVE DATE. This section is effective retroactively for estates of decedents 
204.14 	dying after June 30, 2011.

204.15 	Sec. 18. Minnesota Statutes 2016, section 291.03, subdivision 11, is amended to read:
204.16 		Subd. 11.Recapture tax. (a) If, within three years after the decedent's death and before 
204.17 	the death of the qualified heir, the qualified heir disposes of any interest in the qualified 
204.18 	property, other than by a disposition to a family member, or a family member ceases to 
204.19 	satisfy the requirement under subdivision 9, clause (7); or 10, clause (5), an additional estate 
204.20 	tax is imposed on the property. In the case of a sole proprietor, if the qualified heir replaces 
204.21 	qualified small business property excluded under subdivision 9 with similar property, then 
204.22 	the qualified heir will not be treated as having disposed of an interest in the qualified property.
204.23 	(b) The amount of the additional tax equals the amount of the exclusion claimed by the 
204.24 	estate under subdivision 8, paragraph (d), multiplied by 16 percent.
204.25 	(c) The additional tax under this subdivision is due on the day which is six months after 
204.26 	the date of the disposition or cessation in paragraph (a).
204.27 	(d) This subdivision shall not apply as a result of any of the following:
204.28 	(1) a portion of qualified farm property consisting of less than one-fifth of the acreage 
204.29 	of the property is reclassified as class 2b property under section 273.13, subdivision 23, and 
204.30 	the qualified heir has not substantially altered the reclassified property during the three-year 
204.31 	holding period;
205.1 	(2) a portion of qualified farm property classified as 2a property at the death of the 
205.2 	decedent pursuant to section 273.13, subdivision 23, paragraph (a), consisting of a residence, 
205.3 	garage, and immediately surrounding one acre of land is reclassified as 4bb property during 
205.4 	the three-year holding period, and the qualified heir has not substantially altered the property; 
205.5 	or
205.6 	(3) acquisition of title or possession of the qualified property by a federal, state, or local 
205.7 	government unit, or any other entity with the power of eminent domain for a public purpose, 
205.8 	as defined in section 117.025, subdivision 11, within the three-year holding period.

205.9 	EFFECTIVE DATE. This section is effective retroactively for estates of decedents 
205.10 	dying after June 30, 2011.

205.11 	Sec. 19.  REPEALER.
 205.12 	(a) Minnesota Rules, part 8092.1400, is repealed.
205.13 	(b) Minnesota Rules, part 8092.2000, is repealed.

205.14 	EFFECTIVE DATE. Paragraph (a) is effective for taxable years beginning after 
205.15 	December 31, 2016, except that notifications from the Department of Revenue to employers 
205.16 	regarding eligibility to file an annual return for taxes withheld in calendar year 2016 remain 
205.17 	in force. Paragraph (b) is effective the day following final enactment.

205.18 	ARTICLE 13
205.19 	DEPARTMENT POLICY AND TECHNICAL PROVISIONS; SPECIAL TAXES 
205.20 	AND SALES TAXES

205.21 	Section 1. Minnesota Statutes 2016, section 69.021, subdivision 5, is amended to read:
205.22 		Subd. 5.Calculation of state aid. (a) The amount of fire state aid available for 
205.23 	apportionment, before the addition of the minimum fire state aid allocation amount under 
205.24 	subdivision 7, is equal to 107 percent of the amount of premium taxes paid to the state upon 
205.25 	the fire, lightning, sprinkler leakage, and extended coverage premiums reported to the 
205.26 	commissioner by insurers on the Minnesota Firetown Premium Report. This amount must 
205.27 	be reduced by the amount required to pay the state auditor's costs and expenses of the audits 
205.28 	or exams of the firefighters relief associations.
205.29 	The total amount for apportionment in respect to fire state aid must not be less than two 
205.30 	percent of the premiums reported to the commissioner by insurers on the Minnesota Firetown 
205.31 	Premium Report after subtracting the following amounts:
206.1 	(1) the amount required to pay the state auditor's costs and expenses of the audits or 
206.2 	exams of the firefighters relief associations; and
206.3 	(2) one percent of the premiums reported by town and farmers' township mutual insurance 
206.4 	companies and mutual property and casualty companies with total assets of $5,000,000 or 
206.5 	less.
206.6 	(b) The total amount for apportionment as police state aid is equal to 104 percent of the 
206.7 	amount of premium taxes paid to the state on the premiums reported to the commissioner 
206.8 	by insurers on the Minnesota Aid to Police Premium Report. The total amount for 
206.9 	apportionment in respect to the police state aid program must not be less than two percent 
206.10 	of the amount of premiums reported to the commissioner by insurers on the Minnesota Aid 
206.11 	to Police Premium Report.
206.12 	(c) The commissioner shall calculate the percentage of increase or decrease reflected in 
206.13 	the apportionment over or under the previous year's available state aid using the same 
206.14 	premiums as a basis for comparison.
206.15 	(d) In addition to the amount for apportionment of police state aid under paragraph (b), 
206.16 	each year $100,000 must be apportioned for police state aid. An amount sufficient to pay 
206.17 	this increase is annually appropriated from the general fund.

206.18 	EFFECTIVE DATE. This section is effective the day following final enactment.

206.19 	Sec. 2. Minnesota Statutes 2016, section 289A.38, subdivision 6, is amended to read:
206.20 		Subd. 6.Omission in excess of 25 percent. Additional taxes may be assessed within 
206.21 	6-1/2 years after the due date of the return or the date the return was filed, whichever is 
206.22 	later, if:
206.23 	(1) the taxpayer omits from gross income an amount properly includable in it that is in 
206.24 	excess of 25 percent of the amount of gross income stated in the return;
206.25 	(2) the taxpayer omits from a sales, use, or withholding tax return, or a return for a tax 
206.26 	imposed under section 295.52, an amount of taxes in excess of 25 percent of the taxes 
206.27 	reported in the return; or
206.28 	(3) the taxpayer omits from the gross estate assets in excess of 25 percent of the gross 
206.29 	estate reported in the return.

206.30 	EFFECTIVE DATE. This section is effective the day following final enactment.

207.1 	Sec. 3. Minnesota Statutes 2016, section 290.0922, subdivision 2, is amended to read:
207.2 		Subd. 2.Exemptions. The following entities are exempt from the tax imposed by this 
207.3 	section:
207.4 	(1) corporations exempt from tax under section 290.05;
207.5 	(2) real estate investment trusts;
207.6 	(3) regulated investment companies or a fund thereof; and
207.7 	(4) entities having a valid election in effect under section 860D(b) of the Internal Revenue 
207.8 	Code;
207.9 	(5) town and farmers' township mutual insurance companies;
207.10 	(6) cooperatives organized under chapter 308A or 308B that provide housing exclusively 
207.11 	to persons age 55 and over and are classified as homesteads under section 273.124, 
207.12 	subdivision 3; and
207.13 	(7) a qualified business as defined under section 469.310, subdivision 11, if for the 
207.14 	taxable year all of its property is located in a job opportunity building zone designated under 
207.15 	section 469.314 and all of its payroll is a job opportunity building zone payroll under section 
207.16 	469.310.
207.17 	Entities not specifically exempted by this subdivision are subject to tax under this section, 
207.18 	notwithstanding section 290.05.

207.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

207.20 	Sec. 4. Minnesota Statutes 2016, section 295.54, subdivision 2, is amended to read:
207.21 		Subd. 2.Pharmacy refund. A pharmacy may claim an annual refund against the total 
207.22 	amount of tax, if any, the pharmacy owes during that calendar year under section 295.52, 
207.23 	subdivision 4. The refund shall equal the amount paid by the pharmacy to a wholesale drug 
207.24 	distributor subject to tax under section 295.52, subdivision 3, for legend drugs delivered by 
207.25 	the pharmacy outside of Minnesota, multiplied by the tax percentage specified in section 
207.26 	295.52, subdivision 3. If the amount of the refund exceeds the tax liability of the pharmacy 
207.27 	under section 295.52, subdivision 4, the commissioner shall provide the pharmacy with a 
207.28 	refund equal to the excess amount. Each qualifying pharmacy must apply for the refund on 
207.29 	the annual return as provided under section 295.55, subdivision 5 prescribed by the 
207.30 	commissioner, on or before March 15 of the year following the calendar year the legend 
207.31 	drugs were delivered outside Minnesota. The refund must be claimed within 18 months 
207.32 	from the date the drugs were delivered outside of Minnesota shall not be allowed if the 
208.1 	initial claim for refund is filed more than one year after the original due date of the return. 
208.2 	Interest on refunds paid under this subdivision will begin to accrue 60 days after the date a 
208.3 	claim for refund is filed. For purposes of this subdivision, the date a claim is filed is the due 
208.4 	date of the return if a return is due or the date of the actual claim for refund, whichever is 
208.5 	later.

208.6 	EFFECTIVE DATE. This section is effective for qualifying legend drugs delivered 
208.7 	outside Minnesota after December 31, 2015.

208.8 	Sec. 5. Minnesota Statutes 2016, section 296A.01, is amended by adding a subdivision to 
208.9 	read:
208.10 		Subd. 9a.Bulk storage or bulk storage facility. "Bulk storage" or "bulk storage facility" 
208.11 	means a single property, or contiguous or adjacent properties used for a common purpose 
208.12 	and owned or operated by the same person, on or in which are located one or more stationary 
208.13 	tanks that are used singularly or in combination for the storage or containment of more than 
208.14 	1,100 gallons of petroleum.

208.15 	EFFECTIVE DATE. This section is effective the day following final enactment.

208.16 	Sec. 6. Minnesota Statutes 2016, section 296A.01, subdivision 33, is amended to read:
208.17 		Subd. 33.Motor fuel. "Motor fuel" means a liquid or gaseous form of fuel, regardless 
208.18 	of its composition or properties, used to propel a motor vehicle.

208.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

208.20 	Sec. 7. Minnesota Statutes 2016, section 296A.01, subdivision 42, is amended to read:
208.21 		Subd. 42.Petroleum products. "Petroleum products" means all of the products defined 
208.22 	in subdivisions 2, 7, 8, 8a, 8b, 10, 14, 16, 19, 20, 22 to 26, 28, 32, and 35.

208.23 	EFFECTIVE DATE. This section is effective the day following final enactment.

208.24 	Sec. 8. Minnesota Statutes 2016, section 296A.07, subdivision 1, is amended to read:
208.25 		Subdivision 1.Tax imposed. There is imposed an excise tax on gasoline, gasoline 
208.26 	blended with ethanol, and agricultural alcohol gasoline used in producing and generating 
208.27 	power for propelling motor vehicles used on the public highways of this state. The tax is 
208.28 	imposed on the first licensed distributor who received the product in Minnesota. For purposes 
208.29 	of this section, gasoline is defined in section 296A.01, subdivisions 8b, 10, 18, 20, 23, 24, 
208.30 	25, 32, and 34. The tax is payable at the time and in the form and manner prescribed by the 
209.1 	commissioner. The tax is payable at the rates specified in subdivision 3, subject to the 
209.2 	exceptions and reductions specified in section 296A.17.

209.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

209.4 	Sec. 9. Minnesota Statutes 2016, section 297A.61, subdivision 10, is amended to read:
209.5 		Subd. 10.Tangible personal property. (a) "Tangible personal property" means personal 
209.6 	property that can be seen, weighed, measured, felt, or touched, or that is in any other manner 
209.7 	perceptible to the senses. "Tangible personal property" includes, but is not limited to, 
209.8 	electricity, water, gas, steam, and prewritten computer software.
209.9 	(b) Tangible personal property does not include:
209.10 	(1) large ponderous machinery and equipment used in a business or production activity 
209.11 	which at common law would be considered to be real property;
209.12 	(2) (1) property which is subject to an ad valorem property tax;
209.13 	(3) (2) property described in section 272.02, subdivision 9, clauses (a) to (d);
209.14 	(4) (3) property described in section 272.03, subdivision 2, clauses (3) and (5); and
209.15 	(5) (4) specified digital products, or other digital products, transferred electronically.

209.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

209.17 	Sec. 10. Minnesota Statutes 2016, section 297A.82, subdivision 4, is amended to read:
209.18 		Subd. 4.Exemptions. (a) The following transactions are exempt from the tax imposed 
209.19 	in this chapter to the extent provided.
209.20 	(b) The purchase or use of aircraft previously registered in Minnesota by a corporation 
209.21 	or partnership is exempt if the transfer constitutes a transfer within the meaning of section 
209.22 	351 or 721 of the Internal Revenue Code.
209.23 	(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer of 
209.24 	an aircraft for which a commercial use permit has been issued pursuant to section 360.654
209.25 	is exempt, if the aircraft is resold while the permit is in effect.
209.26 	(d) Air flight equipment when sold to, or purchased, stored, used, or consumed by airline 
209.27 	companies, as defined in section 270.071, subdivision 4, is exempt. For purposes of this 
209.28 	subdivision, "air flight equipment" includes airplanes and parts necessary for the repair and 
209.29 	maintenance of such air flight equipment, and flight simulators, but does not include airplanes
210.1 	aircraft with a gross maximum takeoff weight of less than 30,000 pounds that are used on 
210.2 	intermittent or irregularly timed flights.
210.3 	(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined in 
210.4 	section 360.511 and approved by the Federal Aviation Administration, and which the seller 
210.5 	delivers to a purchaser outside Minnesota or which, without intermediate use, is shipped or 
210.6 	transported outside Minnesota by the purchaser are exempt, but only if the purchaser is not 
210.7 	a resident of Minnesota and provided that the aircraft is not thereafter returned to a point 
210.8 	within Minnesota, except in the course of interstate commerce or isolated and occasional 
210.9 	use, and will be registered in another state or country upon its removal from Minnesota. 
210.10 	This exemption applies even if the purchaser takes possession of the aircraft in Minnesota 
210.11 	and uses the aircraft in the state exclusively for training purposes for a period not to exceed 
210.12 	ten days prior to removing the aircraft from this state.
210.13 	(f) The sale or purchase of the following items that relate to aircraft operated under 
210.14 	Federal Aviation Regulations, Parts 91 and 135, and associated installation charges: 
210.15 	equipment and parts necessary for repair and maintenance of aircraft; and equipment and 
210.16 	parts to upgrade and improve aircraft.

210.17 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
210.18 	December 31, 2017.

210.19 	Sec. 11. Minnesota Statutes 2016, section 297A.82, subdivision 4a, is amended to read:
210.20 		Subd. 4a.Deposit in state airports fund. Tax revenue, including interest and penalties,
210.21 	collected from the sale or purchase of an aircraft taxable under this chapter must be deposited 
210.22 	in the state airports fund established in section 360.017. For purposes of this subdivision, 
210.23 	"revenue" does not include the revenue, including interest and penalties, generated by the 
210.24 	sales tax imposed under section 297A.62, subdivision 1a, which must be deposited as 
210.25 	provided under article XI, section 15, of the Minnesota Constitution.

210.26 	EFFECTIVE DATE. This section is effective the day following final enactment.

210.27 	Sec. 12. Minnesota Statutes 2016, section 297E.02, subdivision 7, is amended to read:
210.28 		Subd. 7.Untaxed gambling product. (a) In addition to penalties or criminal sanctions 
210.29 	imposed by this chapter, a person, organization, or business entity possessing or selling a 
210.30 	pull-tab, electronic pull-tab game, raffle board, or tipboard upon which the tax imposed by 
210.31 	this chapter has not been paid is liable for a tax of six percent of the ideal gross of each 
211.1 	pull-tab, electronic pull-tab game, raffle board, or tipboard. The tax on a partial deal must 
211.2 	be assessed as if it were a full deal.
211.3 	(b) In addition to penalties and criminal sanctions imposed by this chapter, a person (1) 
211.4 	not licensed by the board who conducts bingo, linked bingo, electronic linked bingo, raffles, 
211.5 	or paddlewheel games, or (2) who conducts gambling prohibited under sections 609.75 to 
211.6 	609.763, other than activities subject to tax under section 297E.03, is liable for a tax of six 
211.7 	percent of the gross receipts from that activity.
211.8 	(c) The tax must may be assessed by the commissioner. An assessment must be considered 
211.9 	a jeopardy assessment or jeopardy collection as provided in section 270C.36. The 
211.10 	commissioner shall assess the tax based on personal knowledge or information available to 
211.11 	the commissioner. The commissioner shall mail to the taxpayer at the taxpayer's last known 
211.12 	address, or serve in person, a written notice of the amount of tax, demand its immediate 
211.13 	payment, and, if payment is not immediately made, collect the tax by any method described 
211.14 	in chapter 270C, except that the commissioner need not await the expiration of the times 
211.15 	specified in chapter 270C. The tax assessed by the commissioner is presumed to be valid 
211.16 	and correctly determined and assessed. The burden is upon the taxpayer to show its 
211.17 	incorrectness or invalidity. The tax imposed under this subdivision does not apply to gambling 
211.18 	that is exempt from taxation under subdivision 2.
211.19 	(d) A person, organization, or business entity conducting gambling activity under this 
211.20 	subdivision must file monthly tax returns with the commissioner, in the form required by 
211.21 	the commissioner. The returns must be filed on or before the 20th day of the month following 
211.22 	the month in which the gambling activity occurred. The tax imposed by this section is due 
211.23 	and payable at the time when the returns are required to be filed.
211.24 	(e) Notwithstanding any law to the contrary, neither the commissioner nor a public 
211.25 	employee may reveal facts contained in a tax return filed with the commissioner of revenue 
211.26 	as required by this subdivision, nor can any information contained in the report or return 
211.27 	be used against the tax obligor in any criminal proceeding, unless independently obtained, 
211.28 	except in connection with a proceeding involving taxes due under this section, or as provided 
211.29 	in section 270C.055, subdivision 1. However, this paragraph does not prohibit the 
211.30 	commissioner from publishing statistics that do not disclose the identity of tax obligors or 
211.31 	the contents of particular returns or reports. Any person violating this paragraph is guilty 
211.32 	of a gross misdemeanor.

211.33 	EFFECTIVE DATE. This section is effective for games played or purchased after June 
211.34 	30, 2017.

212.1 	Sec. 13. Minnesota Statutes 2016, section 297H.06, subdivision 2, is amended to read:
212.2 		Subd. 2.Materials. The tax is not imposed upon charges to generators of mixed municipal 
212.3 	solid waste or upon the volume of nonmixed municipal solid waste for waste management 
212.4 	services to manage the following materials:
212.5 	(1) mixed municipal solid waste and nonmixed municipal solid waste generated outside 
212.6 	of Minnesota;
212.7 	(2) recyclable materials that are separated for recycling by the generator, collected 
212.8 	separately from other waste, and recycled, to the extent the price of the service for handling 
212.9 	recyclable material is separately itemized on a bill to the generator;
212.10 	(3) recyclable nonmixed municipal solid waste that is separated for recycling by the 
212.11 	generator, collected separately from other waste, delivered to a waste facility for the purpose 
212.12 	of recycling, and recycled;
212.13 	(4) industrial waste, when it is transported to a facility owned and operated by the same 
212.14 	person that generated it;
212.15 	(5) mixed municipal solid waste from a recycling facility that separates or processes 
212.16 	recyclable materials and reduces the volume of the waste by at least 85 percent, provided 
212.17 	that the exempted waste is managed separately from other waste;
212.18 	(6) recyclable materials that are separated from mixed municipal solid waste by the 
212.19 	generator, collected and delivered to a waste facility that recycles at least 85 percent of its 
212.20 	waste, and are collected with mixed municipal solid waste that is segregated in leakproof 
212.21 	bags, provided that the mixed municipal solid waste does not exceed five percent of the 
212.22 	total weight of the materials delivered to the facility and is ultimately delivered to a waste 
212.23 	facility identified as a preferred waste management facility in county solid waste plans 
212.24 	under section 115A.46;
212.25 	(7) source-separated compostable waste materials, if the waste is materials are delivered 
212.26 	to a facility exempted as described in this clause. To initially qualify for an exemption, a 
212.27 	facility must apply for an exemption in its application for a new or amended solid waste 
212.28 	permit to the Pollution Control Agency. The first time a facility applies to the agency it 
212.29 	must certify in its application that it will comply with the criteria in items (i) to (v) and the 
212.30 	commissioner of the agency shall so certify to the commissioner of revenue who must grant 
212.31 	the exemption. The facility must annually apply to the agency for certification to renew its 
212.32 	exemption for the following year. The application must be filed according to the procedures 
212.33 	of, and contain the information required by, the agency. The commissioner of revenue shall 
213.1 	grant the exemption if the commissioner of the Pollution Control Agency finds and certifies 
213.2 	to the commissioner of revenue that based on an evaluation of the composition of incoming 
213.3 	waste and residuals and the quality and use of the product:
213.4 	(i) generators separate materials at the source;
213.5 	(ii) the separation is performed in a manner appropriate to the technology specific to the 
213.6 	facility that:
213.7 	(A) maximizes the quality of the product;
213.8 	(B) minimizes the toxicity and quantity of residuals rejects; and
213.9 	(C) provides an opportunity for significant improvement in the environmental efficiency 
213.10 	of the operation;
213.11 	(iii) the operator of the facility educates generators, in coordination with each county 
213.12 	using the facility, about separating the waste to maximize the quality of the waste stream 
213.13 	for technology specific to the facility;
213.14 	(iv) process residuals rejects do not exceed 15 percent of the weight of the total material 
213.15 	delivered to the facility; and
213.16 	(v) the final product is accepted for use;
213.17 	(8) waste and waste by-products for which the tax has been paid; and
213.18 	(9) daily cover for landfills that has been approved in writing by the Minnesota Pollution 
213.19 	Control Agency.

213.20 	EFFECTIVE DATE. This section is effective the day following final enactment.

213.21 	Sec. 14. Minnesota Statutes 2016, section 297I.05, subdivision 2, is amended to read:
213.22 		Subd. 2.Town and farmers' Township mutual insurance. A tax is imposed on town 
213.23 	and farmers' township mutual insurance companies. The rate of tax is equal to one percent 
213.24 	of gross premiums less return premiums on all direct business received by the insurer or 
213.25 	agents of the insurer in Minnesota, in cash or otherwise, during the year.

213.26 	EFFECTIVE DATE. This section is effective the day following final enactment.

213.27 	Sec. 15. Minnesota Statutes 2016, section 297I.10, subdivision 1, is amended to read:
213.28 		Subdivision 1.Cities of the first class. (a) The commissioner shall order and direct a 
213.29 	surcharge to be collected of two percent of the fire, lightning, and sprinkler leakage gross 
213.30 	premiums, less return premiums, on all direct business received by any licensed foreign or 
214.1 	domestic fire insurance company on property in a city of the first class, or by its agents for 
214.2 	it, in cash or otherwise.
214.3 	(b) By July 31 and December 31 of each year, the commissioner of management and 
214.4 	budget shall pay to each city of the first class a warrant for an amount equal to the total 
214.5 	amount of the surcharge on the premiums collected within that city since the previous 
214.6 	payment.
214.7 	(c) The treasurer of the city shall place the money received under this subdivision in a 
214.8 	special account or fund to defray all or a portion of the employer contribution requirement 
214.9 	of public employees police and fire plan coverage for city firefighters.

214.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

214.11 	Sec. 16. Minnesota Statutes 2016, section 297I.10, subdivision 3, is amended to read:
214.12 		Subd. 3.Appropriation. The amount necessary to make the payments required under 
214.13 	this section is appropriated to the commissioner of management and budget from the general 
214.14 	fund.

214.15 	EFFECTIVE DATE. This section is effective the day following final enactment.

214.16 	Sec. 17. Minnesota Statutes 2016, section 298.01, subdivision 4c, is amended to read:
214.17 		Subd. 4c.Special deductions; net operating loss. (a) For purposes of determining 
214.18 	taxable income under subdivision 4, the provisions of sections 290.0133, subdivisions 7
214.19 	and 9, and 290.0134, subdivisions 7 and 9, are not used to determine taxable income.
214.20 	(b) The amount of net operating loss incurred in a taxable year beginning before January 
214.21 	1, 1990, that may be carried over to a taxable year beginning after December 31, 1989, is 
214.22 	the amount of net operating loss carryover determined in the calculation of the hypothetical 
214.23 	corporate franchise tax under Minnesota Statutes 1988, sections 298.40 and 298.402.

214.24 	EFFECTIVE DATE. This section is effective the day following final enactment.

214.25 	ARTICLE 14
214.26 	DEPARTMENT OF REVENUE TECHNICAL AND POLICY; PROPERTY TAX 
214.27 	PROVISIONS

214.28 	Section 1. Minnesota Statutes 2016, section 13.51, subdivision 2, is amended to read:
215.1 		Subd. 2.Income property assessment data. The following data collected by political 
215.2 	subdivisions and the state from individuals or business entities concerning income properties 
215.3 	are classified as private or nonpublic data pursuant to section 13.02, subdivisions 9 and 12:
215.4 	(a) detailed income and expense figures;
215.5 	(b) average vacancy factors;
215.6 	(c) verified net rentable areas or net usable areas, whichever is appropriate;
215.7 	(d) anticipated income and expenses;
215.8 	(e) projected vacancy factors; and
215.9 	(f) lease information.

215.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

215.11 	Sec. 2. Minnesota Statutes 2016, section 270.071, subdivision 2, is amended to read:
215.12 		Subd. 2.Air commerce. (a) "Air commerce" means the transportation by aircraft of 
215.13 	persons or property for hire in interstate, intrastate, or international transportation on regularly 
215.14 	scheduled flights or on intermittent or irregularly timed flights by airline companies and 
215.15 	includes transportation by any airline company making three or more flights in or out of 
215.16 	Minnesota, or within Minnesota, during a calendar year.
215.17 	(b) "Air commerce" includes but is not limited to an intermittent or irregularly timed 
215.18 	flight, a flight arranged at the convenience of an airline and the person contracting for the 
215.19 	transportation, or a charter flight. It includes any airline company making three or more 
215.20 	flights in or out of Minnesota during a calendar year.
215.21 	(c) "Air commerce" does not include casual transportation for hire by aircraft commonly 
215.22 	owned and used for private air flight purposes if the person furnishing the transportation 
215.23 	does not hold out to be engaged regularly in transportation for hire.

215.24 	EFFECTIVE DATE. This section is effective for assessment year 2018 and thereafter.

215.25 	Sec. 3. Minnesota Statutes 2016, section 270.071, subdivision 7, is amended to read:
215.26 		Subd. 7.Flight property. "Flight property" means all aircraft and flight equipment used 
215.27 	in connection therewith, including spare flight equipment. Flight property also includes 
215.28 	computers and computer software used in operating, controlling, or regulating aircraft and 
215.29 	flight equipment. Flight property does not include aircraft with a maximum takeoff weight 
215.30 	of less than 30,000 pounds.

216.1 	EFFECTIVE DATE. This section is effective for assessment year 2018 and thereafter.

216.2 	Sec. 4. Minnesota Statutes 2016, section 270.071, subdivision 8, is amended to read:
216.3 		Subd. 8.Person. "Person" means any an individual, corporation, firm, copartnership, 
216.4 	company, or association, and includes any guardian, trustee, executor, administrator, receiver, 
216.5 	conservator, or any person acting in any fiduciary capacity therefor trust, estate, fiduciary, 
216.6 	partnership, company, corporation, limited liability company, association, governmental 
216.7 	unit or agency, public or private organization of any kind, or other legal entity.

216.8 	EFFECTIVE DATE. This section is effective for assessment year 2018 and thereafter.

216.9 	Sec. 5. Minnesota Statutes 2016, section 270.071, is amended by adding a subdivision to 
216.10 	read:
216.11 		Subd. 10.Intermittent or irregularly timed flights. "Intermittently or irregularly timed 
216.12 	flights" means any flight in which the departure time, departure location, and arrival location 
216.13 	are specifically negotiated with the customer or the customer's representative, including but 
216.14 	not limited to charter flights.

216.15 	EFFECTIVE DATE. This section is effective for assessment year 2018 and thereafter.

216.16 	Sec. 6. Minnesota Statutes 2016, section 270.072, subdivision 2, is amended to read:
216.17 		Subd. 2.Assessment of flight property.  Flight property that is owned by, or is leased, 
216.18 	loaned, or otherwise made available to an airline company operating in Minnesota shall be 
216.19 	assessed and appraised annually by the commissioner with reference to its value on January 
216.20 	2 of the assessment year in the manner prescribed by sections 270.071 to 270.079. Aircraft 
216.21 	with a gross weight of less than 30,000 pounds and used on intermittent or irregularly timed 
216.22 	flights shall be excluded from the provisions of sections 270.071 to 270.079.

216.23 	EFFECTIVE DATE. This section is effective for assessment year 2018 and thereafter.

216.24 	Sec. 7. Minnesota Statutes 2016, section 270.072, subdivision 3, is amended to read:
216.25 		Subd. 3.Report by airline company. (a) Each year, on or before July 1, every airline 
216.26 	company engaged in air commerce in this state shall file with the commissioner a report 
216.27 	under oath setting forth specifically the information prescribed by the commissioner to 
216.28 	enable the commissioner to make the assessment required in sections 270.071 to 270.079, 
216.29 	unless the commissioner determines that the airline company or person should be excluded 
217.1 	from is exempt from filing because its activities do not constitute air commerce as defined 
217.2 	herein.
217.3 	(b) The commissioner shall prescribe the content, format, and manner of the report 
217.4 	pursuant to section 270C.30, except that a "law administered by the commissioner" includes 
217.5 	the property tax laws. If a report is made by electronic means, the taxpayer's signature is 
217.6 	defined pursuant to section 270C.304, except that a "law administered by the commissioner" 
217.7 	includes the property tax laws.

217.8 	EFFECTIVE DATE. The amendment to paragraph (a) is effective for reports filed in 
217.9 	2018 and thereafter. The amendment adding paragraph (b) is effective the day following 
217.10 	final enactment.

217.11 	Sec. 8. Minnesota Statutes 2016, section 270.072, is amended by adding a subdivision to 
217.12 	read:
217.13 		Subd. 3a.Commissioner filed reports. If an airline company fails to file a report required 
217.14 	by subdivision 3, the commissioner may, from information in the commissioner's possession 
217.15 	or obtainable by the commissioner, make and file a report for the airline company, or may 
217.16 	issue a notice of net tax capacity and tax under section 270.075, subdivision 2.

217.17 	EFFECTIVE DATE. This section is effective for assessment year 2018 and thereafter.

217.18 	Sec. 9. Minnesota Statutes 2016, section 270.12, is amended by adding a subdivision to 
217.19 	read:
217.20 		Subd. 6.Reassessment orders. If the State Board of Equalization determines that a 
217.21 	considerable amount of property has been undervalued or overvalued compared to like 
217.22 	property such that the assessment is grossly unfair or inequitable, the State Board of 
217.23 	Equalization may, pursuant to its responsibilities under subdivisions 2 and 3, issue orders 
217.24 	to the county assessor to reassess all or any part of a parcel in a county.

217.25 	EFFECTIVE DATE. This section is effective for assessment year 2018 and thereafter.

217.26 	Sec. 10. Minnesota Statutes 2016, section 270C.89, subdivision 1, is amended to read:
217.27 		Subdivision 1.Initial report. Each county assessor shall file by April 1 with the 
217.28 	commissioner a copy of the abstract that will be acted upon by the local and county boards 
217.29 	of review. The abstract must list the real and personal property in the county itemized by 
217.30 	assessment districts. The assessor of each county in the state shall file with the commissioner, 
217.31 	within ten working days following final action of the local board of review or equalization 
218.1 	and within five days following final action of the county board of equalization, any changes 
218.2 	made by the local or county board. The information must be filed in the manner prescribed 
218.3 	by the commissioner. It must be accompanied by a printed or typewritten copy of the 
218.4 	proceedings of the appropriate board.

218.5 	EFFECTIVE DATE. This section is effective for county boards of appeal and 
218.6 	equalization meetings held in 2018 and thereafter.

218.7 	Sec. 11. Minnesota Statutes 2016, section 272.02, subdivision 9, is amended to read:
218.8 		Subd. 9.Personal property; exceptions. Except for the taxable personal property 
218.9 	enumerated below, all personal property and the property described in section 272.03, 
218.10 	subdivision 1, paragraphs (c) and (d), shall be exempt.
218.11 	The following personal property shall be taxable:
218.12 	(a) personal property which is part of (1) an electric generating, transmission, or 
218.13 	distribution system or; (2) a pipeline system transporting or distributing water, gas, crude 
218.14 	oil, or petroleum products; or (3) mains and pipes used in the distribution of steam or hot 
218.15 	or chilled water for heating or cooling buildings and structures;
218.16 	(b) railroad docks and wharves which are part of the operating property of a railroad 
218.17 	company as defined in section 270.80;
218.18 	(c) personal property defined in section 272.03, subdivision 2, clause (3);
218.19 	(d) leasehold or other personal property interests which are taxed pursuant to section 
218.20 	272.01, subdivision 2; 273.124, subdivision 7; or 273.19, subdivision 1; or any other law 
218.21 	providing the property is taxable as if the lessee or user were the fee owner;
218.22 	(e) manufactured homes and sectional structures, including storage sheds, decks, and 
218.23 	similar removable improvements constructed on the site of a manufactured home, sectional 
218.24 	structure, park trailer or travel trailer as provided in section 273.125, subdivision 8, paragraph 
218.25 	(f); and
218.26 	(f) flight property as defined in section 270.071.

218.27 	EFFECTIVE DATE. This section is effective the day following final enactment.

218.28 	Sec. 12. Minnesota Statutes 2016, section 272.029, subdivision 2, is amended to read:
218.29 		Subd. 2.Definitions. (a) For the purposes of this section, the term:
219.1 	(1) "wind energy conversion system" has the meaning given in section 216C.06, 
219.2 	subdivision 19, and also includes a substation that is used and owned by one or more wind 
219.3 	energy conversion facilities;
219.4 	(2) "large scale wind energy conversion system" means a wind energy conversion system 
219.5 	of more than 12 megawatts, as measured by the nameplate capacity of the system or as 
219.6 	combined with other systems as provided in paragraph (b);
219.7 	(3) "medium scale wind energy conversion system" means a wind energy conversion 
219.8 	system of over two and not more than 12 megawatts, as measured by the nameplate capacity 
219.9 	of the system or as combined with other systems as provided in paragraph (b); and
219.10 	(4) "small scale wind energy conversion system" means a wind energy conversion system 
219.11 	of two megawatts and under, as measured by the nameplate capacity of the system or as 
219.12 	combined with other systems as provided in paragraph (b).
219.13 	(b) For systems installed and contracted for after January 1, 2002, the total size of a 
219.14 	wind energy conversion system under this subdivision shall be determined according to this 
219.15 	paragraph. Unless the systems are interconnected with different distribution systems, the 
219.16 	nameplate capacity of one wind energy conversion system shall be combined with the 
219.17 	nameplate capacity of any other wind energy conversion system that is:
219.18 	(1) located within five miles of the wind energy conversion system;
219.19 	(2) constructed within the same calendar year 12-month period as the wind energy 
219.20 	conversion system; and
219.21 	(3) under common ownership.
219.22 	In the case of a dispute, the commissioner of commerce shall determine the total size of 
219.23 	the system, and shall draw all reasonable inferences in favor of combining the systems.
219.24 	(c) In making a determination under paragraph (b), the commissioner of commerce may 
219.25 	determine that two wind energy conversion systems are under common ownership when 
219.26 	the underlying ownership structure contains similar persons or entities, even if the ownership 
219.27 	shares differ between the two systems. Wind energy conversion systems are not under 
219.28 	common ownership solely because the same person or entity provided equity financing for 
219.29 	the systems.

219.30 	EFFECTIVE DATE. This section is effective for reports filed in 2018 and thereafter.

220.1 	Sec. 13. Minnesota Statutes 2016, section 272.029, is amended by adding a subdivision 
220.2 	to read:
220.3 		Subd. 8.Extension. The commissioner may, for good cause, extend the time for filing 
220.4 	the report required by subdivision 4. The extension must not exceed 15 days.

220.5 	EFFECTIVE DATE. This section is effective for reports filed in 2018 and thereafter.

220.6 	Sec. 14. Minnesota Statutes 2016, section 273.061, subdivision 7, is amended to read:
220.7 		Subd. 7.Division of duties between local and county assessor. The duty of the duly 
220.8 	appointed local assessor shall be to view and appraise the value of all property as provided 
220.9 	by law, but all the book work shall be done by the county assessor, or the assessor's assistants, 
220.10 	and the value of all property subject to assessment and taxation shall be determined by the 
220.11 	county assessor, except as otherwise hereinafter provided. If directed by the county assessor, 
220.12 	the local assessor shall must perform the duties enumerated in subdivision 8, clause (16), 
220.13 	and must enter construction and valuation data into the records in the manner prescribed 
220.14 	by the county assessor.

220.15 	EFFECTIVE DATE. This section is effective for assessment year 2018 and thereafter.

220.16 	Sec. 15. Minnesota Statutes 2016, section 273.08, is amended to read:
220.17 	273.08 ASSESSOR'S DUTIES.
220.18 	The assessor shall actually view, and determine the market value of each tract or lot of 
220.19 	real property listed for taxation, including the value of all improvements and structures 
220.20 	thereon, at maximum intervals of five years and shall enter the value opposite each 
220.21 	description. When directed by the county assessor, local assessors must enter construction 
220.22 	and valuation data into the records in the manner prescribed by the county assessor.

220.23 	EFFECTIVE DATE. This section is effective for assessment year 2018 and thereafter.

220.24 	Sec. 16. Minnesota Statutes 2016, section 273.121, is amended by adding a subdivision 
220.25 	to read:
220.26 		Subd. 3.Compliance. A county assessor, or a city assessor having the powers of a 
220.27 	county assessor, who does not comply with the timely notice requirement under subdivision 
220.28 	1 must:
220.29 	(1) mail an additional valuation notice to each person who was not provided timely 
220.30 	notice; and
221.1 	(2) convene a supplemental local board of appeal and equalization or local review session 
221.2 	no sooner than ten days after sending the additional notices required by clause (1).

221.3 	EFFECTIVE DATE. This section is effective for valuation notices sent in 2018 and 
221.4 	thereafter.

221.5 	Sec. 17. Minnesota Statutes 2016, section 273.13, subdivision 22, is amended to read:
221.6 		Subd. 22.Class 1. (a) Except as provided in subdivision 23 and in paragraphs (b) and 
221.7 	(c), real estate which is residential and used for homestead purposes is class 1a. In the case 
221.8 	of a duplex or triplex in which one of the units is used for homestead purposes, the entire 
221.9 	property is deemed to be used for homestead purposes. The market value of class 1a property 
221.10 	must be determined based upon the value of the house, garage, and land.
221.11 	The first $500,000 of market value of class 1a property has a net classification rate of 
221.12 	one percent of its market value; and the market value of class 1a property that exceeds 
221.13 	$500,000 has a classification rate of 1.25 percent of its market value.
221.14 	(b) Class 1b property includes homestead real estate or homestead manufactured homes 
221.15 	used for the purposes of a homestead by:
221.16 	(1) any person who is blind as defined in section 256D.35, or the blind person and the 
221.17 	blind person's spouse;
221.18 	(2) any person who is permanently and totally disabled or by the disabled person and 
221.19 	the disabled person's spouse; or
221.20 	(3) the surviving spouse of a permanently and totally disabled veteran homesteading a 
221.21 	property classified under this paragraph for taxes payable in 2008.
221.22 	Property is classified and assessed under clause (2) only if the government agency or 
221.23 	income-providing source certifies, upon the request of the homestead occupant, that the 
221.24 	homestead occupant satisfies the disability requirements of this paragraph, and that the 
221.25 	property is not eligible for the valuation exclusion under subdivision 34.
221.26 	Property is classified and assessed under paragraph (b) only if the commissioner of 
221.27 	revenue or the county assessor certifies that the homestead occupant satisfies the requirements 
221.28 	of this paragraph.
221.29 	Permanently and totally disabled for the purpose of this subdivision means a condition 
221.30 	which is permanent in nature and totally incapacitates the person from working at an 
221.31 	occupation which brings the person an income. The first $50,000 market value of class 1b 
221.32 	property has a net classification rate of .45 percent of its market value. The remaining market 
222.1 	value of class 1b property has a classification rate using the rates for is classified as class 
222.2 	1a or class 2a property, whichever is appropriate, of similar market value.
222.3 	(c) Class 1c property is commercial use real and personal property that abuts public 
222.4 	water as defined in section 103G.005, subdivision 15, and is devoted to temporary and 
222.5 	seasonal residential occupancy for recreational purposes but not devoted to commercial 
222.6 	purposes for more than 250 days in the year preceding the year of assessment, and that 
222.7 	includes a portion used as a homestead by the owner, which includes a dwelling occupied 
222.8 	as a homestead by a shareholder of a corporation that owns the resort, a partner in a 
222.9 	partnership that owns the resort, or a member of a limited liability company that owns the 
222.10 	resort even if the title to the homestead is held by the corporation, partnership, or limited 
222.11 	liability company. For purposes of this paragraph, property is devoted to a commercial 
222.12 	purpose on a specific day if any portion of the property, excluding the portion used 
222.13 	exclusively as a homestead, is used for residential occupancy and a fee is charged for 
222.14 	residential occupancy. Class 1c property must contain three or more rental units. A "rental 
222.15 	unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual camping 
222.16 	site equipped with water and electrical hookups for recreational vehicles. Class 1c property 
222.17 	must provide recreational activities such as the rental of ice fishing houses, boats and motors, 
222.18 	snowmobiles, downhill or cross-country ski equipment; provide marina services, launch 
222.19 	services, or guide services; or sell bait and fishing tackle. Any unit in which the right to use 
222.20 	the property is transferred to an individual or entity by deeded interest, or the sale of shares 
222.21 	or stock, no longer qualifies for class 1c even though it may remain available for rent. A 
222.22 	camping pad offered for rent by a property that otherwise qualifies for class 1c is also class 
222.23 	1c, regardless of the term of the rental agreement, as long as the use of the camping pad 
222.24 	does not exceed 250 days. If the same owner owns two separate parcels that are located in 
222.25 	the same township, and one of those properties is classified as a class 1c property and the 
222.26 	other would be eligible to be classified as a class 1c property if it was used as the homestead 
222.27 	of the owner, both properties will be assessed as a single class 1c property; for purposes of 
222.28 	this sentence, properties are deemed to be owned by the same owner if each of them is 
222.29 	owned by a limited liability company, and both limited liability companies have the same 
222.30 	membership. The portion of the property used as a homestead is class 1a property under 
222.31 	paragraph (a). The remainder of the property is classified as follows: the first $600,000 of 
222.32 	market value is tier I, the next $1,700,000 of market value is tier II, and any remaining 
222.33 	market value is tier III. The classification rates for class 1c are: tier I, 0.50 percent; tier II, 
222.34 	1.0 percent; and tier III, 1.25 percent. Owners of real and personal property devoted to 
222.35 	temporary and seasonal residential occupancy for recreation purposes in which all or a 
222.36 	portion of the property was devoted to commercial purposes for not more than 250 days in 
223.1 	the year preceding the year of assessment desiring classification as class 1c, must submit a 
223.2 	declaration to the assessor designating the cabins or units occupied for 250 days or less in 
223.3 	the year preceding the year of assessment by January 15 of the assessment year. Those 
223.4 	cabins or units and a proportionate share of the land on which they are located must be 
223.5 	designated as class 1c as otherwise provided. The remainder of the cabins or units and a 
223.6 	proportionate share of the land on which they are located must be designated as class 3a 
223.7 	commercial. The owner of property desiring designation as class 1c property must provide 
223.8 	guest registers or other records demonstrating that the units for which class 1c designation 
223.9 	is sought were not occupied for more than 250 days in the year preceding the assessment 
223.10 	if so requested. The portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, 
223.11 	(4) conference center or meeting room, and (5) other nonresidential facility operated on a 
223.12 	commercial basis not directly related to temporary and seasonal residential occupancy for 
223.13 	recreation purposes does not qualify for class 1c.
223.14 	(d) Class 1d property includes structures that meet all of the following criteria:
223.15 	(1) the structure is located on property that is classified as agricultural property under 
223.16 	section 273.13, subdivision 23;
223.17 	(2) the structure is occupied exclusively by seasonal farm workers during the time when 
223.18 	they work on that farm, and the occupants are not charged rent for the privilege of occupying 
223.19 	the property, provided that use of the structure for storage of farm equipment and produce 
223.20 	does not disqualify the property from classification under this paragraph;
223.21 	(3) the structure meets all applicable health and safety requirements for the appropriate 
223.22 	season; and
223.23 	(4) the structure is not salable as residential property because it does not comply with 
223.24 	local ordinances relating to location in relation to streets or roads.
223.25 	The market value of class 1d property has the same classification rates as class 1a property 
223.26 	under paragraph (a).

223.27 	EFFECTIVE DATE. This section is effective the day following final enactment.

223.28 	Sec. 18. Minnesota Statutes 2016, section 273.33, subdivision 1, is amended to read:
223.29 		Subdivision 1.Listing and assessment in county. The personal property of express, 
223.30 	stage and transportation companies, and of pipeline companies engaged in the business of 
223.31 	transporting natural gas, gasoline, crude oil, or other petroleum products, except as otherwise 
223.32 	provided by law, shall be listed and assessed in the county, town or district where the same 
223.33 	is usually kept.

224.1 	EFFECTIVE DATE. This section is effective the day following final enactment.

224.2 	Sec. 19. Minnesota Statutes 2016, section 273.33, subdivision 2, is amended to read:
224.3 		Subd. 2.Listing and assessment by commissioner. The personal property, consisting 
224.4 	of the pipeline system of mains, pipes, and equipment attached thereto, of pipeline companies 
224.5 	and others engaged in the operations or business of transporting natural gas, gasoline, crude 
224.6 	oil, or other petroleum products by pipelines, shall be listed with and assessed by the 
224.7 	commissioner of revenue and the values provided to the city or county assessor by order. 
224.8 	This subdivision shall not apply to the assessment of the products transported through the 
224.9 	pipelines nor to the lines of local commercial gas companies engaged primarily in the 
224.10 	business of distributing gas products to consumers at retail nor to pipelines used by the 
224.11 	owner thereof to supply natural gas or other petroleum products exclusively for such owner's 
224.12 	own consumption and not for resale to others. If more than 85 percent of the natural gas or 
224.13 	other petroleum products actually transported over the pipeline is used for the owner's own 
224.14 	consumption and not for resale to others, then this subdivision shall not apply; provided, 
224.15 	however, that in that event, the pipeline shall be assessed in proportion to the percentage 
224.16 	of gas products actually transported over such pipeline that is not used for the owner's own 
224.17 	consumption. On or before August 1, the commissioner shall certify to the auditor of each 
224.18 	county, the amount of such personal property assessment against each company in each 
224.19 	district in which such property is located. If the commissioner determines that the amount 
224.20 	of personal property assessment certified on or before August 1 is in error, the commissioner 
224.21 	may issue a corrected certification on or before October 1. The commissioner may correct 
224.22 	errors that are merely clerical in nature until December 31.

224.23 	EFFECTIVE DATE. This section is effective the day following final enactment.

224.24 	Sec. 20. Minnesota Statutes 2016, section 273.372, subdivision 1, is amended to read:
224.25 		Subdivision 1.Scope. (a) As provided in this section, an appeal by a utility or railroad 
224.26 	company concerning property for which the commissioner of revenue has provided the city 
224.27 	or county assessor with valuations by order, or for which the commissioner has recommended 
224.28 	values to the city or county assessor, must be brought against the commissioner, and not 
224.29 	against the county or taxing district where the property is located. Service must be made 
224.30 	on the commissioner only, and not on the county or taxing district.
224.31 	(b) This section governs administrative appeals and appeals to court of a claim that utility 
224.32 	or railroad operating property has been partially, unfairly, or unequally assessed, or assessed 
224.33 	at a valuation greater than its real or actual value, misclassified, or that the property is 
225.1 	exempt. This section applies only to property described in sections 270.81, subdivision 1, 
225.2 	273.33, 273.35, 273.36, and 273.37, and only with regard to taxable net tax capacities that 
225.3 	have been provided to the city or county by the commissioner and which have not been 
225.4 	changed by city or county. If the taxable net tax capacity being appealed is not the taxable 
225.5 	net tax capacity established by the commissioner, or if the appeal claims that the tax rate 
225.6 	applied against the parcel is incorrect, or that the tax has been paid, this section does not 
225.7 	apply.

225.8 	EFFECTIVE DATE. This section is effective for appeals of valuations made in 
225.9 	assessment year 2018 and thereafter.

225.10 	Sec. 21. Minnesota Statutes 2016, section 273.372, subdivision 2, is amended to read:
225.11 		Subd. 2.Contents and filing of petition. (a) In all appeals to court that are required to 
225.12 	be brought against the commissioner under this section, the petition initiating the appeal 
225.13 	must be served on the commissioner and must be filed with the Tax Court in Ramsey County, 
225.14 	as provided in paragraph (b) or (c).
225.15 	(b) If the appeal to court is from an order of the commissioner, it must be brought under 
225.16 	chapter 271 and filed within the time period prescribed in section 271.06, subdivision 2, 
225.17 	except that when the provisions of this section conflict with chapter 271 or 278, this section 
225.18 	prevails. In addition, the petition must include all the parcels encompassed by that order 
225.19 	which the petitioner claims have been partially, unfairly, or unequally assessed, assessed 
225.20 	at a valuation greater than their real or actual value, misclassified, or are exempt. For this 
225.21 	purpose, an order of the commissioner is either (1) a certification or notice of value by the 
225.22 	commissioner for property described in subdivision 1, or (2) the final determination by the 
225.23 	commissioner of either an administrative appeal conference or informal administrative 
225.24 	appeal described in subdivision 4.
225.25 	(c) If the appeal is from the tax that results from implementation of the commissioner's 
225.26 	order, certification, or recommendation, it must be brought under chapter 278, and the 
225.27 	provisions in that chapter apply, except that service shall be on the commissioner only and 
225.28 	not on the local officials specified in section 278.01, subdivision 1, and if any other provision 
225.29 	of this section conflicts with chapter 278, this section prevails. In addition, the petition must 
225.30 	include either all the utility parcels or all the railroad parcels in the state in which the 
225.31 	petitioner claims an interest and which the petitioner claims have been partially, unfairly, 
225.32 	or unequally assessed, assessed at a valuation greater than their real or actual value, 
225.33 	misclassified, or are exempt.

225.34 	EFFECTIVE DATE. This section is effective for assessment year 2018 and thereafter.

226.1 	Sec. 22. Minnesota Statutes 2016, section 273.372, subdivision 4, is amended to read:
226.2 		Subd. 4.Administrative appeals. (a) Companies that submit the reports under section 
226.3 	270.82 or 273.371 by the date specified in that section, or by the date specified by the 
226.4 	commissioner in an extension, may appeal administratively to the commissioner prior to 
226.5 	bringing an action in court.
226.6 	(b) Companies that must submit reports under section 270.82 must submit file a written 
226.7 	request to for an appeal with the commissioner for a conference within ten 30 days after 
226.8 	the notice date of the commissioner's valuation certification or other notice to the company, 
226.9 	or by June 15, whichever is earlier. For purposes of this section, the term "notice date" 
226.10 	means the date of the valuation certification, commissioner's order, recommendation, or 
226.11 	other notice.
226.12 	(c) Companies that submit reports under section 273.371 must submit a written request 
226.13 	to the commissioner for a conference within ten days after the date of the commissioner's 
226.14 	valuation certification or notice to the company, or by July 1, whichever is earlier. The 
226.15 	appeal need not be in any particular form but must contain the following information:
226.16 	(1) name and address of the company;
226.17 	(2) the date;
226.18 	(3) its Minnesota identification number;
226.19 	(4) the assessment year or period involved;
226.20 	(5) the findings in the valuation that the company disputes;
226.21 	(6) a summary statement specifying its reasons for disputing each item; and
226.22 	(7) the signature of the company's duly authorized agent or representative.
226.23 	(d) When requested in writing and within the time allowed for filing an administrative 
226.24 	appeal, the commissioner may extend the time for filing an appeal for a period of not more 
226.25 	than 15 days from the expiration of the time for filing the appeal.
226.26 	(d) (e) The commissioner shall conduct the conference either in person or by telephone 
226.27 	upon the commissioner's entire files and records and such further information as may be 
226.28 	offered. The conference must be held no later than 20 days after the date of the 
226.29 	commissioner's valuation certification or notice to the company, or by the date specified by 
226.30 	the commissioner in an extension request for an appeal. Within 60 30 days after the 
226.31 	conference the commissioner shall make a final determination of the matter and shall notify 
227.1 	the company promptly of the determination. The conference is not a contested case hearing
227.2 	subject to chapter 14.
227.3 	(e) In addition to the opportunity for a conference under paragraph (a), the commissioner 
227.4 	shall also provide the railroad and utility companies the opportunity to discuss any questions 
227.5 	or concerns relating to the values established by the commissioner through certification or 
227.6 	notice in a less formal manner. This does not change or modify the deadline for requesting 
227.7 	a conference under paragraph (a), the deadline in section 271.06 for appealing an order of 
227.8 	the commissioner, or the deadline in section 278.01 for appealing property taxes in court.

227.9 	EFFECTIVE DATE. This section is effective for assessment year 2018 and thereafter.

227.10 	Sec. 23. Minnesota Statutes 2016, section 273.372, is amended by adding a subdivision 
227.11 	to read:
227.12 		Subd. 5.Agreement determining valuation. When it appears to be in the best interest 
227.13 	of the state, the commissioner may settle any matter under consideration regarding an appeal 
227.14 	filed under this section. The agreement must be in writing and signed by the commissioner 
227.15 	and the company or the company's authorized representative. The agreement is final and 
227.16 	conclusive, and except upon a showing of fraud, malfeasance, or misrepresentation of a 
227.17 	material fact, the case may not be reopened as to the matters agreed upon.

227.18 	EFFECTIVE DATE. This section is effective for assessment year 2018 and thereafter.

227.19 	Sec. 24. Minnesota Statutes 2016, section 273.372, is amended by adding a subdivision 
227.20 	to read:
227.21 		Subd. 6.Dismissal of administrative appeal. If a taxpayer files an administrative appeal 
227.22 	from an order of the commissioner and also files an appeal to the tax court for that same 
227.23 	order of the commissioner, the administrative appeal is dismissed and the commissioner is 
227.24 	no longer required to make the determination of appeal under subdivision 4.

227.25 	EFFECTIVE DATE. This section is effective beginning with assessment year 2017.

227.26 	Sec. 25. [273.88] EQUALIZATION OF PUBLIC UTILITY STRUCTURES.
227.27 	After making the apportionment provided in Minnesota Rules, part 8100.0600, the 
227.28 	commissioner must equalize the values of the operating structures to the level accepted by 
227.29 	the State Board of Equalization if the appropriate sales ratio for each county, as conducted 
227.30 	by the Department of Revenue pursuant to section 270.12, subdivision 2, clause (6), is 
227.31 	outside the range accepted by the State Board of Equalization. The commissioner must not 
228.1 	equalize the value of the operating structures if the sales ratio determined pursuant to this 
228.2 	subdivision is within the range accepted by the State Board of Equalization.

228.3 	EFFECTIVE DATE. This section is effective beginning with assessment year 2017.

228.4 	Sec. 26. Minnesota Statutes 2016, section 274.01, subdivision 1, is amended to read:
228.5 		Subdivision 1.Ordinary board; meetings, deadlines, grievances. (a) The town board 
228.6 	of a town, or the council or other governing body of a city, is the local board of appeal and 
228.7 	equalization except (1) in cities whose charters provide for a board of equalization or (2) 
228.8 	in any city or town that has transferred its local board of review power and duties to the 
228.9 	county board as provided in subdivision 3. The county assessor shall fix a day and time 
228.10 	when the board or the local board of equalization shall meet in the assessment districts of 
228.11 	the county. Notwithstanding any law or city charter to the contrary, a city board of 
228.12 	equalization shall be referred to as a local board of appeal and equalization. On or before 
228.13 	February 15 of each year the assessor shall give written notice of the time to the city or 
228.14 	town clerk. Notwithstanding the provisions of any charter to the contrary, the meetings must 
228.15 	be held between April 1 and May 31 each year. The clerk shall give published and posted 
228.16 	notice of the meeting at least ten days before the date of the meeting.
228.17 	The board shall meet either at a central location within the county or at the office of the 
228.18 	clerk to review the assessment and classification of property in the town or city. No changes 
228.19 	in valuation or classification which are intended to correct errors in judgment by the county 
228.20 	assessor may be made by the county assessor after the board has adjourned in those cities 
228.21 	or towns that hold a local board of review; however, corrections of errors that are merely 
228.22 	clerical in nature or changes that extend homestead treatment to property are permitted after 
228.23 	adjournment until the tax extension date for that assessment year. The changes must be fully 
228.24 	documented and maintained in the assessor's office and must be available for review by any 
228.25 	person. A copy of the changes made during this period in those cities or towns that hold a 
228.26 	local board of review must be sent to the county board no later than December 31 of the 
228.27 	assessment year.
228.28 	(b) The board shall determine whether the taxable property in the town or city has been 
228.29 	properly placed on the list and properly valued by the assessor. If real or personal property 
228.30 	has been omitted, the board shall place it on the list with its market value, and correct the 
228.31 	assessment so that each tract or lot of real property, and each article, parcel, or class of 
228.32 	personal property, is entered on the assessment list at its market value. No assessment of 
228.33 	the property of any person may be raised unless the person has been duly notified of the 
228.34 	intent of the board to do so. On application of any person feeling aggrieved, the board shall 
229.1 	review the assessment or classification, or both, and correct it as appears just. The board 
229.2 	may not make an individual market value adjustment or classification change that would 
229.3 	benefit the property if the owner or other person having control over the property has refused 
229.4 	the assessor access to inspect the property and the interior of any buildings or structures as 
229.5 	provided in section 273.20. A board member shall not participate in any actions of the board 
229.6 	which result in market value adjustments or classification changes to property owned by 
229.7 	the board member, the spouse, parent, stepparent, child, stepchild, grandparent, grandchild, 
229.8 	brother, sister, uncle, aunt, nephew, or niece of a board member, or property in which a 
229.9 	board member has a financial interest. The relationship may be by blood or marriage.
229.10 	(c) A local board may reduce assessments upon petition of the taxpayer but the total 
229.11 	reductions must not reduce the aggregate assessment made by the county assessor by more 
229.12 	than one percent. If the total reductions would lower the aggregate assessments made by 
229.13 	the county assessor by more than one percent, none of the adjustments may be made. The 
229.14 	assessor shall correct any clerical errors or double assessments discovered by the board 
229.15 	without regard to the one percent limitation.
229.16 	(d) A local board does not have authority to grant an exemption or to order property 
229.17 	removed from the tax rolls.
229.18 	(e) A majority of the members may act at the meeting, and adjourn from day to day until 
229.19 	they finish hearing the cases presented. The assessor shall attend and take part in the 
229.20 	proceedings, but must not vote. The county assessor, or an assistant delegated by the county 
229.21 	assessor shall attend the meetings. The board shall list separately all omitted property added 
229.22 	to the list by the board and all items of property increased or decreased, with the market 
229.23 	value of each item of property, added or changed by the board. The county assessor shall 
229.24 	enter all changes made by the board.
229.25 	(f) Except as provided in subdivision 3, if a person fails to appear in person, by counsel, 
229.26 	or by written communication before the board after being duly notified of the board's intent 
229.27 	to raise the assessment of the property, or if a person feeling aggrieved by an assessment 
229.28 	or classification fails to apply for a review of the assessment or classification, the person 
229.29 	may not appear before the county board of appeal and equalization for a review. This 
229.30 	paragraph does not apply if an assessment was made after the local board meeting, as 
229.31 	provided in section 273.01, or if the person can establish not having received notice of 
229.32 	market value at least five days before the local board meeting.
229.33 	(g) The local board must complete its work and adjourn within 20 days from the time 
229.34 	of convening stated in the notice of the clerk, unless a longer period is approved by the 
230.1 	commissioner of revenue. No action taken after that date is valid. All complaints about an 
230.2 	assessment or classification made after the meeting of the board must be heard and 
230.3 	determined by the county board of equalization. A nonresident may, at any time, before the 
230.4 	meeting of the board file written objections to an assessment or classification with the county 
230.5 	assessor. The objections must be presented to the board at its meeting by the county assessor 
230.6 	for its consideration.

230.7 	EFFECTIVE DATE. This section is effective the day following final enactment.

230.8 	Sec. 27. Minnesota Statutes 2016, section 274.13, subdivision 1, is amended to read:
230.9 		Subdivision 1.Members; meetings; rules for equalizing assessments. The county 
230.10 	commissioners, or a majority of them, with the county auditor, or, if the auditor cannot be 
230.11 	present, the deputy county auditor, or, if there is no deputy, the court administrator of the 
230.12 	district court, shall form a board for the equalization of the assessment of the property of 
230.13 	the county, including the property of all cities whose charters provide for a board of 
230.14 	equalization. This board shall be referred to as the county board of appeal and equalization. 
230.15 	The board shall meet annually, on the date specified in section 274.14, at the office of the 
230.16 	auditor. Each member shall take an oath to fairly and impartially perform duties as a member. 
230.17 	Members shall not participate in any actions of the board which result in market value 
230.18 	adjustments or classification changes to property owned by the board member, the spouse, 
230.19 	parent, stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, 
230.20 	nephew, or niece of a board member, or property in which a board member has a financial 
230.21 	interest. The relationship may be by blood or marriage. The board shall examine and compare 
230.22 	the returns of the assessment of property of the towns or districts, and equalize them so that 
230.23 	each tract or lot of real property and each article or class of personal property is entered on 
230.24 	the assessment list at its market value, subject to the following rules:
230.25 	(1) The board shall raise the valuation of each tract or lot of real property which in its 
230.26 	opinion is returned below its market value to the sum believed to be its market value. The 
230.27 	board must first give notice of intention to raise the valuation to the person in whose name 
230.28 	it is assessed, if the person is a resident of the county. The notice must fix a time and place 
230.29 	for a hearing.
230.30 	(2) The board shall reduce the valuation of each tract or lot which in its opinion is returned 
230.31 	above its market value to the sum believed to be its market value.
230.32 	(3) The board shall raise the valuation of each class of personal property which in its 
230.33 	opinion is returned below its market value to the sum believed to be its market value. It 
230.34 	shall raise the aggregate value of the personal property of individuals, firms, or corporations, 
231.1 	when it believes that the aggregate valuation, as returned, is less than the market value of 
231.2 	the taxable personal property possessed by the individuals, firms, or corporations, to the 
231.3 	sum it believes to be the market value. The board must first give notice to the persons of 
231.4 	intention to do so. The notice must set a time and place for a hearing.
231.5 	(4) The board shall reduce the valuation of each class of personal property that is returned 
231.6 	above its market value to the sum it believes to be its market value. Upon complaint of a 
231.7 	party aggrieved, the board shall reduce the aggregate valuation of the individual's personal 
231.8 	property, or of any class of personal property for which the individual is assessed, which 
231.9 	in its opinion has been assessed at too large a sum, to the sum it believes was the market 
231.10 	value of the individual's personal property of that class.
231.11 	(5) The board must not reduce the aggregate value of all the property of its county, as 
231.12 	submitted to the county board of equalization, with the additions made by the auditor under 
231.13 	this chapter, by more than one percent of its whole valuation. The board may raise the 
231.14 	aggregate valuation of real property, and of each class of personal property, of the county, 
231.15 	or of any town or district of the county, when it believes it is below the market value of the 
231.16 	property, or class of property, to the aggregate amount it believes to be its market value.
231.17 	(6) The board shall change the classification of any property which in its opinion is not 
231.18 	properly classified.
231.19 	(7) The board does not have the authority to grant an exemption or to order property 
231.20 	removed from the tax rolls.
231.21 	(8) The board may not make an individual market value adjustment or classification 
231.22 	change that would benefit property if the owner or other person having control over the 
231.23 	property has refused the assessor access to inspect the property and the interior of any 
231.24 	buildings or structures as provided in section 273.20.

231.25 	EFFECTIVE DATE. This section is effective for county board of appeal and 
231.26 	equalization meetings in 2018 and thereafter.

231.27 	Sec. 28. Minnesota Statutes 2016, section 274.135, subdivision 3, is amended to read:
231.28 		Subd. 3.Proof of compliance; transfer of duties. (a) Any county that conducts county 
231.29 	boards of appeal and equalization meetings must provide proof to the commissioner by 
231.30 	December 1, 2009, and each year thereafter, February 1  that it is in compliance with the 
231.31 	requirements of subdivision 2. Beginning in 2009, This notice must also verify that there 
231.32 	was a quorum of voting members at each meeting of the board of appeal and equalization 
231.33 	in the current previous year. A county that does not comply with these requirements is 
232.1 	deemed to have transferred its board of appeal and equalization powers to the special board 
232.2 	of equalization appointed pursuant to section 274.13, subdivision 2, beginning with the 
232.3 	following year's assessment and continuing unless the powers are reinstated under paragraph 
232.4 	(c). A county that does not comply with the requirements of subdivision 2 and has not 
232.5 	appointed a special board of equalization shall appoint a special board of equalization before 
232.6 	the following year's assessment.
232.7 	(b) The county shall notify the taxpayers when the board of appeal and equalization for 
232.8 	a county has been transferred to the special board of equalization under this subdivision 
232.9 	and, prior to the meeting time of the special board of equalization, the county shall make 
232.10 	available to those taxpayers a procedure for a review of the assessments, including, but not 
232.11 	limited to, open book meetings. This alternate review process must take place in April and 
232.12 	May.
232.13 	(c) A county board whose powers are transferred to the special board of equalization 
232.14 	under this subdivision may be reinstated by resolution of the county board and upon proof 
232.15 	of compliance with the requirements of subdivision 2. The resolution and proofs must be 
232.16 	provided to the commissioner by December February 1 in order to be effective for the 
232.17 	following current year's assessment.
232.18 	(d) If a person who was entitled to appeal to the county board of appeal and equalization 
232.19 	or to the county special board of equalization is not able to do so in a particular year because 
232.20 	the county board or special board did not meet the quorum and training requirements in this 
232.21 	section and section 274.13, or because the special board was not appointed, that person may 
232.22 	instead appeal to the commissioner of revenue, provided that the appeal is received by the 
232.23 	commissioner prior to August 1. The appeal is not subject to either chapter 14 or section 
232.24 	270C.92. The commissioner must issue an appropriate order to the county assessor in 
232.25 	response to each timely appeal, either upholding or changing the valuation or classification 
232.26 	of the property. Prior to October 1 of each year, the commissioner must charge and bill the 
232.27 	county where the property is located $500 for each tax parcel covered by an order issued 
232.28 	under this paragraph in that year. Amounts received by the commissioner under this paragraph 
232.29 	must be deposited in the state's general fund. If payment of a billed amount is not received 
232.30 	by the commissioner before December 1 of the year when billed, the commissioner must 
232.31 	deduct that unpaid amount from any state aid the commissioner would otherwise pay to the 
232.32 	county under chapter 477A in the next year. Late payments may either be returned to the 
232.33 	county uncashed and undeposited or may be accepted. If a late payment is accepted, the 
232.34 	state aid paid to the county under chapter 477A must be adjusted within 12 months to 
232.35 	eliminate any reduction that occurred because the payment was late. Amounts needed to 
233.1 	make these adjustments are included in the appropriation under section 477A.03, subdivision 
233.2 	2.

233.3 	EFFECTIVE DATE. This section is effective for county boards of appeal and 
233.4 	equalization meetings held in 2017 and thereafter.

233.5 	Sec. 29. Minnesota Statutes 2016, section 275.065, subdivision 1, is amended to read:
233.6 		Subdivision 1.Proposed levy. (a) Notwithstanding any law or charter to the contrary, 
233.7 	on or before September 30, each county and each home rule charter or statutory city shall 
233.8 	certify to the county auditor the proposed property tax levy for taxes payable in the following 
233.9 	year.
233.10 	(b) Notwithstanding any law or charter to the contrary, on or before September 15, each 
233.11 	town and each special taxing district shall adopt and certify to the county auditor a proposed 
233.12 	property tax levy for taxes payable in the following year. For towns, the final certified levy 
233.13 	shall also be considered the proposed levy.
233.14 	(c) On or before September 30, each school district that has not mutually agreed with 
233.15 	its home county to extend this date shall certify to the county auditor the proposed property 
233.16 	tax levy for taxes payable in the following year. Each school district that has agreed with 
233.17 	its home county to delay the certification of its proposed property tax levy must certify its 
233.18 	proposed property tax levy for the following year no later than October 7. The school district 
233.19 	shall certify the proposed levy as:
233.20 	(1) a specific dollar amount by school district fund, broken down between voter-approved 
233.21 	and non-voter-approved levies and between referendum market value and tax capacity 
233.22 	levies; or
233.23 	(2) the maximum levy limitation certified by the commissioner of education according 
233.24 	to section 126C.48, subdivision 1.
233.25 	(d) If the board of estimate and taxation or any similar board that establishes maximum 
233.26 	tax levies for taxing jurisdictions within a first class city certifies the maximum property 
233.27 	tax levies for funds under its jurisdiction by charter to the county auditor by the date specified 
233.28 	in paragraph (a), the city shall be deemed to have certified its levies for those taxing 
233.29 	jurisdictions.
233.30 	(e) For purposes of this section, "special taxing district" means a special taxing district 
233.31 	as defined in section 275.066. Intermediate school districts that levy a tax under chapter 
233.32 	124 or 136D, joint powers boards established under sections 123A.44 to 123A.446, and 
234.1 	Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special 
234.2 	taxing districts for purposes of this section.
234.3 	(f) At the meeting at which a taxing authority, other than a town, adopts its proposed 
234.4 	tax levy under this subdivision, the taxing authority shall announce the time and place of 
234.5 	its any subsequent regularly scheduled meetings at which the budget and levy will be 
234.6 	discussed and at which the public will be allowed to speak. The time and place of those 
234.7 	meetings must be included in the proceedings or summary of proceedings published in the 
234.8 	official newspaper of the taxing authority under section 123B.09, 375.12, or 412.191.

234.9 	EFFECTIVE DATE. This section is effective the day following final enactment.

234.10 	Sec. 30. Minnesota Statutes 2016, section 275.62, subdivision 2, is amended to read:
234.11 		Subd. 2.Local governments required to report. For purposes of this section, "local 
234.12 	governmental unit" means a county, home rule charter or statutory city with a population 
234.13 	greater than 2,500, a town with a population greater than 5,000, or a home rule charter or 
234.14 	statutory city or town that receives a distribution from the taconite municipal aid account 
234.15 	in the levy year.

234.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

234.17 	Sec. 31. Minnesota Statutes 2016, section 278.01, subdivision 1, is amended to read:
234.18 		Subdivision 1.Determination of validity. (a) Any person having personal property, or 
234.19 	any estate, right, title, or interest in or lien upon any parcel of land, who claims that such 
234.20 	property has been partially, unfairly, or unequally assessed in comparison with other property 
234.21 	in the (1) city, or (2) county, or (3) in the case of a county containing a city of the first class, 
234.22 	the portion of the county excluding the first class city, or that the parcel has been assessed 
234.23 	at a valuation greater than its real or actual value, or that the tax levied against the same is 
234.24 	illegal, in whole or in part, or has been paid, or that the property is exempt from the tax so 
234.25 	levied, may have the validity of the claim, defense, or objection determined by the district 
234.26 	court of the county in which the tax is levied or by the Tax Court by serving one copy of a 
234.27 	petition for such determination upon the county auditor, one copy on the county attorney, 
234.28 	one copy on the county treasurer, and three copies on the county assessor. The county 
234.29 	assessor shall immediately forward one copy of the petition to the appropriate governmental 
234.30 	authority in a home rule charter or statutory city or town in which the property is located if 
234.31 	that city or town employs its own certified assessor. A copy of the petition shall also be 
234.32 	forwarded by the assessor to the school board of the school district in which the property 
234.33 	is located.
235.1 	(b) In counties where the office of county treasurer has been combined with the office 
235.2 	of county auditor, the county may elect to require the petitioner to serve the number of 
235.3 	copies as determined by the county. The county assessor shall immediately forward one 
235.4 	copy of the petition to the appropriate governmental authority in a home rule charter or 
235.5 	statutory city or town in which the property is located if that city or town employs its own 
235.6 	certified assessor. A list of petitioned properties, including the name of the petitioner, the 
235.7 	identification number of the property, and the estimated market value, shall be sent on or 
235.8 	before the first day of July by the county auditor/treasurer to the school board of the school 
235.9 	district in which the property is located.
235.10 	(c) For all counties, the petitioner must file the copies with proof of service, in the office 
235.11 	of the court administrator of the district court on or before April 30 of the year in which the 
235.12 	tax becomes payable. A petition for determination under this section may be transferred by 
235.13 	the district court to the Tax Court. An appeal may also be taken to the Tax Court under 
235.14 	chapter 271 at any time following receipt of the valuation notice that county assessors or 
235.15 	city assessors having the powers of a county assessor are required by section 273.121 to 
235.16 	send to persons whose property is to be included on the assessment roll that year, but prior 
235.17 	to May 1 of the year in which the taxes are payable.

235.18 	EFFECTIVE DATE. This section is effective the day following final enactment.

235.19 	Sec. 32. Minnesota Statutes 2016, section 282.01, subdivision 1a, is amended to read:
235.20 		Subd. 1a.Conveyance to public entities. (a) Upon written request from a state agency 
235.21 	or a governmental subdivision of the state, a parcel of unsold tax-forfeited land must be 
235.22 	withheld from sale or lease to others for a maximum of six months. The request must be 
235.23 	submitted to the county auditor. Upon receipt, the county auditor must withhold the parcel 
235.24 	from sale or lease to any other party for six months, and must confirm the starting date of 
235.25 	the six-month withholding period to the requesting agency or subdivision. If the request is 
235.26 	from a governmental subdivision of the state, the governmental subdivision must pay the 
235.27 	maintenance costs incurred by the county during the period the parcel is withheld. The 
235.28 	county board may approve a sale or conveyance to the requesting party during the 
235.29 	withholding period. A conveyance of the property to the requesting party terminates the 
235.30 	withholding period.
235.31 	A governmental subdivision of the state must not make, and a county auditor must not 
235.32 	act upon, a second request to withhold a parcel from sale or lease within 18 months of a 
235.33 	previous request for that parcel. A county may reject a request made under this paragraph 
235.34 	if the request is made more than 30 days after the county has given notice to the requesting 
236.1 	state agency or governmental subdivision of the state that the county intends to sell or 
236.2 	otherwise dispose of the property.
236.3 	(b) Nonconservation tax-forfeited lands may be sold by the county board, for their market 
236.4 	value as determined by the county board, to an organized or incorporated governmental 
236.5 	subdivision of the state for any public purpose for which the subdivision is authorized to 
236.6 	acquire property. When the term "market value" is used in this section, it means an estimate 
236.7 	of the full and actual market value of the parcel as determined by the county board, but in 
236.8 	making this determination, the board and the persons employed by or under contract with 
236.9 	the board in order to perform, conduct, or assist in the determination, are exempt from the 
236.10 	licensure requirements of chapter 82B.
236.11 	(c) Nonconservation tax-forfeited lands may be released from the trust in favor of the 
236.12 	taxing districts on application to sold by the county board by, for their market value as 
236.13 	determined by the county board, to a state agency for an authorized use at not less than their 
236.14 	market value as determined by the county board any public purpose for which the agency 
236.15 	is authorized to acquire property.
236.16 	(d) Nonconservation tax-forfeited lands may be sold by the county board to an organized 
236.17 	or incorporated governmental subdivision of the state or state agency for less than their 
236.18 	market value if:
236.19 	(1) the county board determines that a sale at a reduced price is in the public interest 
236.20 	because a reduced price is necessary to provide an incentive to correct the blighted conditions 
236.21 	that make the lands undesirable in the open market, or the reduced price will lead to the 
236.22 	development of affordable housing; and
236.23 	(2) the governmental subdivision or state agency has documented its specific plans for 
236.24 	correcting the blighted conditions or developing affordable housing, and the specific law 
236.25 	or laws that empower it to acquire real property in furtherance of the plans.
236.26 	If the sale under this paragraph is to a governmental subdivision of the state, the 
236.27 	commissioner of revenue must convey the property on behalf of the state by quitclaim deed. 
236.28 	If the sale under this paragraph is to a state agency, the property is released from the trust 
236.29 	in favor of the taxing districts and the commissioner of revenue must issue a conveyance 
236.30 	document that releases the property from the trust in favor of the taxing districts convey the 
236.31 	property on behalf of the state by quitclaim deed to the agency.
236.32 	(e) Nonconservation tax-forfeited land held in trust in favor of the taxing districts may 
236.33 	be conveyed by the commissioner of revenue in the name of the state to a governmental 
236.34 	subdivision for an authorized public use, if an application is submitted to the commissioner 
237.1 	which includes a statement of facts as to the use to be made of the tract and the favorable 
237.2 	recommendation of the county board. For the purposes of this paragraph, "authorized public 
237.3 	use" means a use that allows an indefinite segment of the public to physically use and enjoy 
237.4 	the property in numbers appropriate to its size and use, or is for a public service facility. 
237.5 	Authorized public uses as defined in this paragraph are limited to:
237.6 	(1) a road, or right-of-way for a road;
237.7 	(2) a park that is both available to, and accessible by, the public that contains 
237.8 	improvements such as campgrounds, playgrounds, athletic fields, trails, or shelters;
237.9 	(3) trails for walking, bicycling, snowmobiling, or other recreational purposes, along 
237.10 	with a reasonable amount of surrounding land maintained in its natural state;
237.11 	(4) transit facilities for buses, light rail transit, commuter rail or passenger rail, including 
237.12 	transit ways, park-and-ride lots, transit stations, maintenance and garage facilities, and other 
237.13 	facilities related to a public transit system;
237.14 	(5) public beaches or boat launches;
237.15 	(6) public parking;
237.16 	(7) civic recreation or conference facilities; and
237.17 	(8) public service facilities such as fire halls, police stations, lift stations, water towers, 
237.18 	sanitation facilities, water treatment facilities, and administrative offices.
237.19 	No monetary compensation or consideration is required for the conveyance, except as 
237.20 	provided in subdivision 1g, but the conveyance is subject to the conditions provided in law, 
237.21 	including, but not limited to, the reversion provisions of subdivisions 1c and 1d.
237.22 	(f) The commissioner of revenue shall convey a parcel of nonconservation tax-forfeited 
237.23 	land to a local governmental subdivision of the state by quitclaim deed on behalf of the state 
237.24 	upon the favorable recommendation of the county board if the governmental subdivision 
237.25 	has certified to the board that prior to forfeiture the subdivision was entitled to the parcel 
237.26 	under a written development agreement or instrument, but the conveyance failed to occur 
237.27 	prior to forfeiture. No compensation or consideration is required for, and no conditions 
237.28 	attach to, the conveyance.
237.29 	(g) The commissioner of revenue shall convey a parcel of nonconservation tax-forfeited 
237.30 	land to the association of a common interest community by quitclaim deed upon the favorable 
237.31 	recommendation of the county board if the association certifies to the board that prior to 
237.32 	forfeiture the association was entitled to the parcel under a written agreement, but the 
238.1 	conveyance failed to occur prior to forfeiture. No compensation or consideration is required 
238.2 	for, and no conditions attach to, the conveyance.
238.3 	(h) Conservation tax-forfeited land may be sold to a governmental subdivision of the 
238.4 	state for less than its market value for either: (1) creation or preservation of wetlands; (2) 
238.5 	drainage or storage of storm water under a storm water management plan; or (3) preservation, 
238.6 	or restoration and preservation, of the land in its natural state. The deed must contain a 
238.7 	restrictive covenant limiting the use of the land to one of these purposes for 30 years or 
238.8 	until the property is reconveyed back to the state in trust. At any time, the governmental 
238.9 	subdivision may reconvey the property to the state in trust for the taxing districts. The deed 
238.10 	of reconveyance is subject to approval by the commissioner of revenue. No part of a purchase 
238.11 	price determined under this paragraph shall be refunded upon a reconveyance, but the 
238.12 	amount paid for a conveyance under this paragraph may be taken into account by the county 
238.13 	board when setting the terms of a future sale of the same property to the same governmental 
238.14 	subdivision under paragraph (b) or (d). If the lands are unplatted and located outside of an 
238.15 	incorporated municipality and the commissioner of natural resources determines there is a 
238.16 	mineral use potential, the sale is subject to the approval of the commissioner of natural 
238.17 	resources.
238.18 	(i) A park and recreation board in a city of the first class is a governmental subdivision 
238.19 	for the purposes of this section.
238.20 	(j) Tax-forfeited land held in trust in favor of the taxing districts may be conveyed by 
238.21 	the commissioner of revenue in the name of the state to a governmental subdivision for a 
238.22 	school forest under section 89.41. An application that includes a statement of facts as to the 
238.23 	use to be made of the tract and the favorable recommendation of the county board and the 
238.24 	commissioner of natural resources must be submitted to the commissioner of revenue. No 
238.25 	monetary compensation or consideration is required for the conveyance, but the conveyance 
238.26 	is subject to the conditional use and reversion provisions of subdivisions 1c and 1d, paragraph 
238.27 	(e). At any time, the governmental subdivision may reconvey the property back to the state 
238.28 	in trust for the taxing districts. The deed of reconveyance is subject to approval by the 
238.29 	commissioner of revenue.

238.30 	EFFECTIVE DATE. This section is effective the day following final enactment.

238.31 	Sec. 33. Minnesota Statutes 2016, section 282.01, subdivision 1d, is amended to read:
238.32 		Subd. 1d.Reverter for failure to use; conveyance to state. (a) After three years from 
238.33 	the date of any conveyance of tax-forfeited land to a governmental subdivision for an 
238.34 	authorized public use as provided in this section, regardless of when the deed for the 
239.1 	authorized public use was executed, if the governmental subdivision has failed to put the 
239.2 	land to that use, or abandons that use, the governing body of the subdivision must: (1) with 
239.3 	the approval of the county board, purchase the property for an authorized public purpose 
239.4 	at the present market value as determined by the county board, or (2) authorize the proper 
239.5 	officers to convey the land, or the part of the land not required for an authorized public use, 
239.6 	to the state of Minnesota in trust for the taxing districts. If the governing body purchases 
239.7 	the property under clause (1), the commissioner of revenue shall, upon proper application 
239.8 	submitted by the county auditor and upon the reconveyance of the land subject to the 
239.9 	conditional use deed to the state, convey the property on behalf of the state by quitclaim 
239.10 	deed to the subdivision free of a use restriction and the possibility of reversion or 
239.11 	defeasement. If the governing body decides to reconvey the property to the state under this 
239.12 	clause, the officers shall execute a deed of conveyance immediately. The conveyance is 
239.13 	subject to the approval of the commissioner and its form must be approved by the attorney 
239.14 	general. For 15 years from the date of the conveyance, there is no failure to put the land to 
239.15 	the authorized public use and no abandonment of that use if a formal plan of the governmental 
239.16 	subdivision, including, but not limited to, a comprehensive plan or land use plan, shows an 
239.17 	intended future use of the land for the authorized public use.
239.18 	(b) Property held by a governmental subdivision of the state under a conditional use 
239.19 	deed executed under this section by the commissioner of revenue on or after January 1, 
239.20 	2007, may be acquired by that governmental subdivision after 15 years from the date of the 
239.21 	conveyance if the commissioner determines upon written application from the subdivision 
239.22 	that the subdivision has in fact put the property to the authorized public use for which it 
239.23 	was conveyed, and the subdivision has made a finding that it has no current plans to change 
239.24 	the use of the lands. Prior to conveying the property, the commissioner shall inquire whether 
239.25 	the county board where the land is located objects to a conveyance of the property to the 
239.26 	subdivision without conditions and without further act by or obligation of the subdivision. 
239.27 	If the county does not object within 60 days, and the commissioner makes a favorable 
239.28 	determination, the commissioner shall issue a quitclaim deed on behalf of the state 
239.29 	unconditionally conveying the property to the governmental subdivision. For purposes of 
239.30 	this paragraph, demonstration of an intended future use for the authorized public use in a 
239.31 	formal plan of the governmental subdivision does not constitute use for that authorized 
239.32 	public use.
239.33 	(c) Property held by a governmental subdivision of the state under a conditional use 
239.34 	deed executed under this section by the commissioner of revenue before January 1, 2007, 
239.35 	is released from the use restriction and possibility of reversion on January 1, 2022, if the 
240.1 	county board records a resolution describing the land and citing this paragraph. The county 
240.2 	board may authorize the county treasurer to deduct the amount of the recording fees from 
240.3 	future settlements of property taxes to the subdivision.
240.4 	(d) Except for tax-forfeited land conveyed to establish a school forest under section 
240.5 	89.41, property conveyed under a conditional use deed executed under this section by the 
240.6 	commissioner of revenue, regardless of when the deed for the authorized public use was 
240.7 	executed, is released from the use restriction and reverter, and any use restriction or reverter 
240.8 	for which no declaration of reversion has been recorded with the county recorder or registrar 
240.9 	of titles, as appropriate, is nullified on the later of: (1) January 1, 2015; (2) 30 years from 
240.10 	the date the deed was acknowledged; or (3) final resolution of an appeal to district court 
240.11 	under subdivision 1e, if a lis pendens related to the appeal is recorded in the office of the 
240.12 	county recorder or registrar of titles, as appropriate, prior to January 1, 2015.
240.13 	(e) Notwithstanding paragraphs (a) to (d), tax-forfeited land conveyed to establish a 
240.14 	school forest under section 89.41 is subject to a perpetual conditional use deed and reverter. 
240.15 	The property reverts to the state in trust for the taxing districts by operation of law if the 
240.16 	commissioner of natural resources determines and reports to the commissioner of revenue 
240.17 	under section 89.41, subdivision 3, that the governmental subdivision has failed to use the 
240.18 	land for school forest purposes for three consecutive years. The commissioner of revenue 
240.19 	shall record a declaration of reversion for land that has reverted under this paragraph.

240.20 	EFFECTIVE DATE. This section is effective the day following final enactment.

240.21 	Sec. 34. Minnesota Statutes 2016, section 477A.013, is amended by adding a subdivision 
240.22 	to read:
240.23 		Subd. 14.Communication by electronic mail. Prior to receiving aid pursuant to this 
240.24 	section, a city must register an official electronic mail address with the commissioner, which 
240.25 	the commissioner may use as an exclusive means to communicate with the city.

240.26 	EFFECTIVE DATE. This section is effective for aids payable in 2018 and thereafter.

240.27 	Sec. 35. Minnesota Statutes 2016, section 477A.19, is amended by adding a subdivision 
240.28 	to read:
240.29 		Subd. 3a.Certification. On or before June 1 of each year, the commissioner of natural 
240.30 	resources shall certify to the commissioner of revenue the number of watercraft launches 
240.31 	and the number of watercraft trailer parking spaces in each county.

240.32 	EFFECTIVE DATE. This section is effective for aids payable in 2018 and thereafter.

241.1 	Sec. 36. Minnesota Statutes 2016, section 477A.19, is amended by adding a subdivision 
241.2 	to read:
241.3 		Subd. 3b.Certification. On or before June 1 of each year, the commissioner of natural 
241.4 	resources shall certify to the commissioner of revenue the counties that complied with the 
241.5 	requirements of subdivision 3 the prior year and are eligible to receive aid under this section.

241.6 	EFFECTIVE DATE. This section is effective for aids payable in 2018 and thereafter.

241.7 	Sec. 37. Minnesota Statutes 2016, section 559.202, subdivision 2, is amended to read:
241.8 		Subd. 2.Exception. This section does not apply to sales made under chapter 282 or if 
241.9 	the purchaser is represented throughout the transaction by either:
241.10 	(1) a person licensed to practice law in this state; or
241.11 	(2) a person licensed as a real estate broker or salesperson under chapter 82, provided 
241.12 	that the representation does not create a dual agency, as that term is defined in section 82.55, 
241.13 	subdivision 6.

241.14 	EFFECTIVE DATE. This section is effective for sales of tax-forfeited land occurring 
241.15 	after the day following final enactment.

241.16 	Sec. 38. Laws 2014, chapter 308, article 1, section 14, subdivision 2, is amended to read:
241.17 		Subd. 2.Payment of supplemental credit. (a) The commissioner must pay supplemental 
241.18 	credit amounts to each qualifying taxpayer by October 15, 2014.
241.19 	(b) If the commissioner cannot locate the qualifying taxpayer by October 15, 2016, or 
241.20 	if a qualifying taxpayer to whom a warrant was issued does not cash that warrant within 
241.21 	two years from the date the warrant was issued, the right to the credit shall lapse and the 
241.22 	warrant shall be deposited in the general fund.

241.23 	EFFECTIVE DATE. This section is effective the day following final enactment.

241.24 	Sec. 39. Laws 2014, chapter 308, article 9, section 94, is amended to read:
241.25 	Sec. 94. REPEALER.
 241.26 	(a) Minnesota Statutes 2012, sections 273.1398, subdivision 4b; 290.01, subdivision 
241.27 	19e; 290.0674, subdivision 3; 290.191, subdivision 4; and 290.33, and Minnesota Rules, 
241.28 	part 8007.0200, are repealed.
241.29 	(b) Minnesota Statutes 2012, sections 16D.02, subdivisions 5 and 8; 16D.11, subdivision 
241.30 	2; 270C.53; 270C.991, subdivision 4; 272.02, subdivisions 1, 1a, 43, 48, 51, 53, 67, 72, and 
242.1 	82; 272.027, subdivision 2; 272.031; 273.015, subdivision 1; 273.03, subdivision 3; 273.075; 
242.2 	273.13, subdivision 21a; 273.1383; 273.1386; 273.80; 275.77; 279.32; 281.173, subdivision 
242.3 	8; 281.174, subdivision 8; 281.328; 282.10; 282.23; 287.20, subdivision 4; 287.27, 
242.4 	subdivision 2; 290.01, subdivisions 4b and 20e; 295.52, subdivision 7; 297A.666; 297A.71, 
242.5 	subdivisions 4, 5, 7, 9, 10, 17, 18, 20, 32, and 41; 297F.08, subdivision 11; 297H.10, 
242.6 	subdivision 2; 469.174, subdivision 10c; 469.175, subdivision 2b; 469.176, subdivision 1i; 
242.7 	469.177, subdivision 10; 477A.0124, subdivisions 1 and 6; and 505.173, Minnesota Statutes 
242.8 	2013 Supplement, section 273.1103, Laws 1993, chapter 375, article 9, section 47, and 
242.9 	Minnesota Rules, parts 8002.0200, subpart 8; 8100.0800; and 8130.7500, subpart 7, are 
242.10 	repealed.
242.11 	(c) Minnesota Statutes 2012, section 469.1764, is repealed.
242.12 	(d) Minnesota Statutes 2012, sections 289A.56, subdivision 7; 297A.68, subdivision 38; 
242.13 	469.330; 469.331; 469.332; 469.333; 469.334; 469.335; 469.336; 469.337; 469.338; 469.339; 
242.14 	469.340, subdivisions 1, 2, 3, and 5; and 469.341, and Minnesota Statutes 2013 Supplement, 
242.15 	section 469.340, subdivision 4, are repealed.
242.16 	(e) Minnesota Statutes 2012, section 290.06, subdivisions 30 and 31, are repealed.

242.17 	EFFECTIVE DATE. This section is effective retroactively from May 20, 2014, and 
242.18 	pursuant to Minnesota Statutes, section 645.36, Minnesota Statutes, section 272.027, 
242.19 	subdivision 2, is revived and reenacted as of that date.

242.20 	Sec. 40.  REPEALER.
 242.21 	(a) Minnesota Statutes 2016, section 281.22, is repealed.
242.22 	(b) Minnesota Rules, part 8100.0700, is repealed.

242.23 	EFFECTIVE DATE. Paragraph (a) is effective the day following final enactment. 
242.24 	Paragraph (b) is effective beginning with assessment year 2017.

242.25 	ARTICLE 15
242.26 	DEPARTMENT POLICY AND TECHNICAL PROVISIONS; MISCELLANEOUS

242.27 	Section 1. Minnesota Statutes 2016, section 270.82, subdivision 1, is amended to read:
242.28 		Subdivision 1.Annual report required. Every railroad company doing business in 
242.29 	Minnesota shall annually file with the commissioner on or before March 31 a report under 
242.30 	oath setting forth the information prescribed by the commissioner to enable the commissioner 
242.31 	to make the valuation and equalization required by sections 270.80 to 270.87. The 
243.1 	commissioner shall prescribe the content, format, and manner of the report pursuant to 
243.2 	section 270C.30, except that a "law administered by the commissioner" includes the property 
243.3 	tax laws. If a report is made by electronic means, the taxpayer's signature is defined pursuant 
243.4 	to section 270C.304, except that a "law administered by the commissioner" includes the 
243.5 	property tax laws.

243.6 	EFFECTIVE DATE. This section is effective the day following final enactment.

243.7 	Sec. 2. Minnesota Statutes 2016, section 270A.03, subdivision 5, is amended to read:
243.8 		Subd. 5.Debt. (a) "Debt" means a legal obligation of a natural person to pay a fixed and 
243.9 	certain amount of money, which equals or exceeds $25 and which is due and payable to a 
243.10 	claimant agency. The term includes criminal fines imposed under section 609.10 or 609.125, 
243.11 	fines imposed for petty misdemeanors as defined in section 609.02, subdivision 4a, and 
243.12 	restitution. A debt may arise under a contractual or statutory obligation, a court order, or 
243.13 	other legal obligation, but need not have been reduced to judgment.
243.14 	A debt includes any legal obligation of a current recipient of assistance which is based 
243.15 	on overpayment of an assistance grant where that payment is based on a client waiver or 
243.16 	an administrative or judicial finding of an intentional program violation; or where the debt 
243.17 	is owed to a program wherein the debtor is not a client at the time notification is provided 
243.18 	to initiate recovery under this chapter and the debtor is not a current recipient of food support, 
243.19 	transitional child care, or transitional medical assistance.
243.20 	(b) A debt does not include any legal obligation to pay a claimant agency for medical 
243.21 	care, including hospitalization if the income of the debtor at the time when the medical care 
243.22 	was rendered does not exceed the following amount:
243.23 	(1) for an unmarried debtor, an income of $8,800 $12,560 or less;
243.24 	(2) for a debtor with one dependent, an income of $11,270 $16,080 or less;
243.25 	(3) for a debtor with two dependents, an income of $13,330 $19,020 or less;
243.26 	(4) for a debtor with three dependents, an income of $15,120 $21,580 or less;
243.27 	(5) for a debtor with four dependents, an income of $15,950 $22,760 or less; and
243.28 	(6) for a debtor with five or more dependents, an income of $16,630 $23,730 or less.
243.29 	For purposes of this paragraph, "debtor" means the individual whose income, together 
243.30 	with the income of the individual's spouse, other than a separated spouse, brings the 
243.31 	individual within the income provisions of this paragraph. For purposes of this paragraph, 
243.32 	a spouse, other than a separated spouse, shall be considered a dependent.
244.1 	(c) The commissioner shall adjust the income amounts in paragraph (b) by the percentage 
244.2 	determined pursuant to the provisions of section 1(f) of the Internal Revenue Code, except 
244.3 	that in section 1(f)(3)(B) the word "1999 2014" shall be substituted for the word "1992." 
244.4 	For 2001 2016, the commissioner shall then determine the percent change from the 12 
244.5 	months ending on August 31, 1999 2014, to the 12 months ending on August 31, 2000 2015, 
244.6 	and in each subsequent year, from the 12 months ending on August 31, 1999 2014, to the 
244.7 	12 months ending on August 31 of the year preceding the taxable year. The determination 
244.8 	of the commissioner pursuant to this subdivision shall not be considered a "rule" and shall 
244.9 	not be subject to the Administrative Procedure Act contained in chapter 14. The income 
244.10 	amount as adjusted must be rounded to the nearest $10 amount. If the amount ends in $5, 
244.11 	the amount is rounded up to the nearest $10 amount.
244.12 	(d) Debt also includes an agreement to pay a MinnesotaCare premium, regardless of the 
244.13 	dollar amount of the premium authorized under section 256L.15, subdivision 1a.

244.14 	EFFECTIVE DATE. The section is effective retroactively for debts incurred after 
244.15 	December 31, 2014.

244.16 	Sec. 3. Minnesota Statutes 2016, section 270B.14, subdivision 1, is amended to read:
244.17 		Subdivision 1.Disclosure to commissioner of human services. (a) On the request of 
244.18 	the commissioner of human services, the commissioner shall disclose return information 
244.19 	regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A, to the 
244.20 	extent provided in paragraph (b) and for the purposes set forth in paragraph (c).
244.21 	(b) Data that may be disclosed are limited to data relating to the identity, whereabouts, 
244.22 	employment, income, and property of a person owing or alleged to be owing an obligation 
244.23 	of child support.
244.24 	(c) The commissioner of human services may request data only for the purposes of 
244.25 	carrying out the child support enforcement program and to assist in the location of parents 
244.26 	who have, or appear to have, deserted their children. Data received may be used only as set 
244.27 	forth in section 256.978.
244.28 	(d) The commissioner shall provide the records and information necessary to administer 
244.29 	the supplemental housing allowance to the commissioner of human services.
244.30 	(e) At the request of the commissioner of human services, the commissioner of revenue 
244.31 	shall electronically match the Social Security numbers and names of participants in the 
244.32 	telephone assistance plan operated under sections 237.69 to 237.71, with those of property 
245.1 	tax refund filers, and determine whether each participant's household income is within the 
245.2 	eligibility standards for the telephone assistance plan.
245.3 	(f) The commissioner may provide records and information collected under sections 
245.4 	295.50 to 295.59 to the commissioner of human services for purposes of the Medicaid 
245.5 	Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law 
245.6 	102-234. Upon the written agreement by the United States Department of Health and Human 
245.7 	Services to maintain the confidentiality of the data, the commissioner may provide records 
245.8 	and information collected under sections 295.50 to 295.59 to the Centers for Medicare and 
245.9 	Medicaid Services section of the United States Department of Health and Human Services 
245.10 	for purposes of meeting federal reporting requirements.
245.11 	(g) The commissioner may provide records and information to the commissioner of 
245.12 	human services as necessary to administer the early refund of refundable tax credits.
245.13 	(h) The commissioner may disclose information to the commissioner of human services 
245.14 	as necessary to verify income for income verification for eligibility and premium payment 
245.15 	under the MinnesotaCare program, under section 256L.05, subdivision 2, as well as the 
245.16 	medical assistance program under section 256B.
245.17 	(i) The commissioner may disclose information to the commissioner of human services 
245.18 	necessary to verify whether applicants or recipients for the Minnesota family investment 
245.19 	program, general assistance, food support, Minnesota supplemental aid program, and child 
245.20 	care assistance have claimed refundable tax credits under chapter 290 and the property tax 
245.21 	refund under chapter 290A, and the amounts of the credits.
245.22 	(j) The commissioner may disclose information to the commissioner of human services 
245.23 	necessary to verify income for purposes of calculating parental contribution amounts under 
245.24 	section 252.27, subdivision 2a.

245.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

245.26 	Sec. 4. Minnesota Statutes 2016, section 270C.30, is amended to read:
245.27 	270C.30 RETURNS AND OTHER DOCUMENTS; FORMAT; FURNISHING.
245.28 	Except as otherwise provided by law, the commissioner shall prescribe the content and,
245.29 	format, and manner of all returns and other forms required to be filed under a law 
245.30 	administered by the commissioner, and may furnish them subject to charge on application.

245.31 	EFFECTIVE DATE. This section is effective the day following final enactment.

246.1 	Sec. 5. Minnesota Statutes 2016, section 270C.33, subdivision 5, is amended to read:
246.2 		Subd. 5.Prohibition against collection during appeal period of an order. No collection 
246.3 	action can be taken on an order of assessment, or any other order imposing a liability, 
246.4 	including the filing of liens under section 270C.63, and no late payment penalties may be 
246.5 	imposed when a return has been filed for the tax type and period upon which the order is 
246.6 	based, during the appeal period of an order. The appeal period of an order ends: (1) 60 days 
246.7 	after the order has been mailed to the taxpayer notice date designated by the commissioner
246.8 	on the order; (2) if an administrative appeal is filed under section 270C.35, 60 days after
246.9 	the notice date designated by the commissioner on the written determination of the 
246.10 	administrative appeal; (3) if an appeal to Tax Court is filed under chapter 271, when the 
246.11 	decision of the Tax Court is made; or (4) if an appeal to Tax Court is filed and the appeal 
246.12 	is based upon a constitutional challenge to the tax, 60 days after final determination of the 
246.13 	appeal. This subdivision does not apply to a jeopardy assessment under section 270C.36, 
246.14 	or a jeopardy collection under section 270C.36.

246.15 	EFFECTIVE DATE. This section is effective for orders dated after December 31, 
246.16 	2017.

246.17 	Sec. 6. Minnesota Statutes 2016, section 270C.33, subdivision 8, is amended to read:
246.18 		Subd. 8.Sufficiency of notice. An assessment of tax made by the commissioner, sent 
246.19 	postage prepaid by United States mail to the taxpayer at the taxpayer's last known address, 
246.20 	or sent by electronic mail to the taxpayer's last known electronic mailing address as provided 
246.21 	for in section 325L.08, is sufficient even if the taxpayer is deceased or is under a legal 
246.22 	disability, or, in the case of a corporation, has terminated its existence, unless the 
246.23 	commissioner has been provided with a new address by a party authorized to receive notices 
246.24 	of assessment. Notice of an assessment is sufficient if it is sent on or before the notice date 
246.25 	designated by the commissioner on the assessment.

246.26 	EFFECTIVE DATE. This section is effective for assessments dated after December 
246.27 	31, 2017.

246.28 	Sec. 7. Minnesota Statutes 2016, section 270C.34, subdivision 2, is amended to read:
246.29 		Subd. 2.Procedure. (a) A request for abatement of penalty under subdivision 1 or 
246.30 	section 289A.60, subdivision 4, or a request for abatement of interest or additional tax 
246.31 	charge, must be filed with the commissioner within 60 days of the notice date of the notice 
246.32 	was mailed to the taxpayer's last known address, stating that a penalty has been imposed or 
246.33 	additional tax charge. For purposes of this section, the term "notice date" means the notice 
247.1 	date designated by the commissioner on the order or other notice that a penalty or additional 
247.2 	tax charge has been imposed.
247.3 	(b) If the commissioner issues an order denying a request for abatement of penalty, 
247.4 	interest, or additional tax charge, the taxpayer may file an administrative appeal as provided 
247.5 	in section 270C.35 or appeal to Tax Court as provided in section 271.06.
247.6 	(c) If the commissioner does not issue an order on the abatement request within 60 days 
247.7 	from the date the request is received, the taxpayer may appeal to Tax Court as provided in 
247.8 	section 271.06.

247.9 	EFFECTIVE DATE. This section is effective for orders and notices dated after 
247.10 	December 31, 2017.

247.11 	Sec. 8. Minnesota Statutes 2016, section 270C.347, subdivision 1, is amended to read:
247.12 		Subdivision 1.Checks and warrants, authority to reissue. Notwithstanding any other 
247.13 	provision of law, the commissioner may, based on a showing of reasonable cause, reissue 
247.14 	an uncashed rebate, supplemental agricultural credit, or property tax refund warrant or check 
247.15 	that has lapsed under any provision of law relating to rebates or under section 290A.18, 
247.16 	subdivision 2. The authority to reissue warrants or checks under this subdivision is limited 
247.17 	to five years after the date of issuance of the original warrant or check.

247.18 	EFFECTIVE DATE. This section is effective the day following final enactment.

247.19 	Sec. 9. Minnesota Statutes 2016, section 270C.35, subdivision 3, is amended to read:
247.20 		Subd. 3.Notice date. For purposes of this section, the term "notice date" means the date 
247.21 	of designated by the commissioner on the order adjusting the tax or order denying a request 
247.22 	for abatement, or, in the case of a denied refund, the notice date of designated by the 
247.23 	commissioner on the notice of denial.

247.24 	EFFECTIVE DATE. This section is effective for orders and notices dated after 
247.25 	December 31, 2017.

247.26 	Sec. 10. Minnesota Statutes 2016, section 270C.35, is amended by adding a subdivision 
247.27 	to read:
247.28 		Subd. 11.Dismissal of administrative appeal. If a taxpayer files an administrative 
247.29 	appeal for an order of the commissioner and also files an appeal to the Tax Court for that 
247.30 	same order of the commissioner, the administrative appeal is dismissed and the commissioner 
247.31 	is no longer required to make a determination of appeal under subdivision 6.

248.1 	EFFECTIVE DATE. This section is effective for all administrative appeals filed after 
248.2 	December 30, 2016.

248.3 	Sec. 11. Minnesota Statutes 2016, section 270C.38, subdivision 1, is amended to read:
248.4 		Subdivision 1.Sufficient notice. (a) If no method of notification of a written 
248.5 	determination or action of the commissioner is otherwise specifically provided for by law, 
248.6 	notice of the determination or action sent postage prepaid by United States mail to the 
248.7 	taxpayer or other person affected by the determination or action at the taxpayer's or person's 
248.8 	last known address, is sufficient. If the taxpayer or person being notified is deceased or is 
248.9 	under a legal disability, or, in the case of a corporation being notified that has terminated 
248.10 	its existence, notice to the last known address of the taxpayer, person, or corporation is 
248.11 	sufficient, unless the department has been provided with a new address by a party authorized 
248.12 	to receive notices from the commissioner.
248.13 	(b) If a taxpayer or other person agrees to accept notification by electronic means, notice 
248.14 	of a determination or action of the commissioner sent by electronic mail to the taxpayer's 
248.15 	or person's last known electronic mailing address as provided for in section 325L.08 is 
248.16 	sufficient.
248.17 	(c) Notice of a determination or action of the commissioner is sufficient if it is sent on 
248.18 	or before the notice date designated by the commissioner on the notice.

248.19 	EFFECTIVE DATE. This section is effective for notices dated after December 31, 
248.20 	2017.

248.21 	Sec. 12. Minnesota Statutes 2016, section 270C.445, is amended by adding a subdivision 
248.22 	to read:
248.23 		Subd. 9.Enforcement; limitations. (a) Notwithstanding any other law, the imposition 
248.24 	of a penalty or any other action against a tax return preparer authorized by subdivision 6 
248.25 	with respect to a return may be taken by the commissioner within the period provided by 
248.26 	section 289A.38 to assess tax on that return.
248.27 	(b) Imposition of a penalty or other action against a tax return preparer authorized by 
248.28 	subdivision 6 other than with respect to a return must be taken by the commissioner within 
248.29 	five years of the violation of statute.

248.30 	EFFECTIVE DATE. This section is effective for tax preparation services provided 
248.31 	after the day following final enactment.

249.1 	Sec. 13. Minnesota Statutes 2016, section 270C.446, subdivision 5, is amended to read:
249.2 		Subd. 5.Removal from list. The commissioner shall remove the name of a tax preparer 
249.3 	from the list of tax preparers published under this section:
249.4 	(1) when the commissioner determines that the name was included on the list in error;
249.5 	(2) within 90 days three years after the preparer has demonstrated to the commissioner 
249.6 	that the preparer fully paid all fines or penalties imposed, served any suspension, satisfied 
249.7 	any sentence imposed, successfully completed any probationary period imposed, and 
249.8 	successfully completed any remedial actions required by the commissioner, the State Board 
249.9 	of Accountancy, or the Lawyers Board of Professional Responsibility; or
249.10 	(3) when the commissioner has been notified that the tax preparer is deceased.

249.11 	EFFECTIVE DATE. This section is effective the day following final enactment.

249.12 	Sec. 14. Minnesota Statutes 2016, section 270C.72, subdivision 4, is amended to read:
249.13 		Subd. 4.Licensing authority; duties. All licensing authorities must require the applicant 
249.14 	to provide the applicant's Social Security number or individual taxpayer identification 
249.15 	number and Minnesota business identification number, as applicable, on all license 
249.16 	applications. Upon request of the commissioner, the licensing authority must provide the 
249.17 	commissioner with a list of all applicants, including the name, address, business name and 
249.18 	address, and Social Security number, or individual taxpayer identification number and 
249.19 	business identification number, as applicable, of each applicant. The commissioner may 
249.20 	request from a licensing authority a list of the applicants no more than once each calendar 
249.21 	year.

249.22 	EFFECTIVE DATE. This section is effective the day following final enactment.

249.23 	Sec. 15. Minnesota Statutes 2016, section 271.06, subdivision 2, is amended to read:
249.24 		Subd. 2.Time; notice; intervention. Except as otherwise provided by law, within 60 
249.25 	days after the notice of the making and filing date of an order of the commissioner of revenue, 
249.26 	the appellant, or the appellant's attorney, shall serve a notice of appeal upon the commissioner 
249.27 	and file the original, with proof of such service, with the Tax Court administrator or with 
249.28 	the court administrator of district court acting as court administrator of the Tax Court; 
249.29 	provided, that the Tax Court, for cause shown, may by written order extend the time for 
249.30 	appealing for an additional period not exceeding 30 days. For purposes of this section, the 
249.31 	term "notice date" means the notice date designated by the commissioner on the order. The 
249.32 	notice of appeal shall be in the form prescribed by the Tax Court. Within five days after 
250.1 	receipt, the commissioner shall transmit a copy of the notice of appeal to the attorney general. 
250.2 	The attorney general shall represent the commissioner, if requested, upon all such appeals 
250.3 	except in cases where the attorney general has appealed in behalf of the state, or in other 
250.4 	cases where the attorney general deems it against the interests of the state to represent the 
250.5 	commissioner, in which event the attorney general may intervene or be substituted as an 
250.6 	appellant in behalf of the state at any stage of the proceedings.
250.7 	Upon a final determination of any other matter over which the court is granted jurisdiction 
250.8 	under section 271.01, subdivision 5, the taxpayer or the taxpayer's attorney shall file a 
250.9 	petition or notice of appeal as provided by law with the court administrator of district court, 
250.10 	acting in the capacity of court administrator of the Tax Court, with proof of service of the 
250.11 	petition or notice of appeal as required by law and within the time required by law. As used 
250.12 	in this subdivision, "final determination" includes a notice of assessment and equalization 
250.13 	for the year in question received from the local assessor, an order of the local board of 
250.14 	equalization, or an order of a county board of equalization.
250.15 	The Tax Court shall prescribe a filing system so that the notice of appeal or petition filed 
250.16 	with the district court administrator acting as court administrator of the Tax Court is 
250.17 	forwarded to the Tax Court administrator. In the case of an appeal or a petition concerning 
250.18 	property valuation for which the assessor, a local board of equalization, a county board of 
250.19 	equalization or the commissioner of revenue has issued an order, the officer issuing the 
250.20 	order shall be notified of the filing of the appeal. The notice of appeal or petition shall be 
250.21 	in the form prescribed by the Tax Court.

250.22 	EFFECTIVE DATE. This section is effective for orders dated after December 31, 
250.23 	2017.

250.24 	Sec. 16. Minnesota Statutes 2016, section 271.06, subdivision 7, is amended to read:
250.25 		Subd. 7.Rules. Except as provided in section 278.05, subdivision 6, the Rules of 
250.26 	Evidence and Civil Procedure for the district court of Minnesota shall govern the procedures 
250.27 	in the Tax Court, where practicable. The Rules of Civil Procedure do not apply to alter the 
250.28 	60-day period of time to file a notice of appeal provided in subdivision 2. The Tax Court 
250.29 	may adopt rules under chapter 14.

250.30 	EFFECTIVE DATE. This section is effective for orders dated after December 31, 
250.31 	2017.

251.1 	Sec. 17. Minnesota Statutes 2016, section 272.02, subdivision 10, is amended to read:
251.2 		Subd. 10.Personal property used for pollution control. Personal property used 
251.3 	primarily for the abatement and control of air, water, or land pollution is exempt to the 
251.4 	extent that it is so used, and real property is exempt if it is used primarily for abatement and 
251.5 	control of air, water, or land pollution as part of an agricultural operation, as a part of a 
251.6 	centralized treatment and recovery facility operating under a permit issued by the Minnesota 
251.7 	Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota Rules, parts 
251.8 	7001.0500 to 7001.0730, and 7045.0020 to 7045.1030, as a wastewater treatment facility 
251.9 	and for the treatment, recovery, and stabilization of metals, oils, chemicals, water, sludges, 
251.10 	or inorganic materials from hazardous industrial wastes, or as part of an electric generation 
251.11 	system. For purposes of this subdivision, personal property includes ponderous machinery 
251.12 	and equipment used in a business or production activity that at common law is considered 
251.13 	real property.
251.14 	Any taxpayer requesting exemption of all or a portion of any real property or any 
251.15 	equipment or device, or part thereof, operated primarily for the control or abatement of air, 
251.16 	water, or land pollution shall file an application with the commissioner of revenue. The 
251.17 	commissioner shall develop an electronic means to notify interested parties when electric 
251.18 	power generation facilities have filed an application. The commissioner shall prescribe the 
251.19 	content, format, and manner of the application pursuant to section 270C.30, except that a 
251.20 	"law administered by the commissioner" includes the property tax laws, and if an application 
251.21 	is made by electronic means, the taxpayer's signature is defined pursuant to section 270C.304, 
251.22 	except that a "law administered by the commissioner" includes the property tax laws. The 
251.23 	Minnesota Pollution Control Agency shall upon request of the commissioner furnish 
251.24 	information and advice to the commissioner.
251.25 	The information and advice furnished by the Minnesota Pollution Control Agency must 
251.26 	include statements as to whether the equipment, device, or real property meets a standard, 
251.27 	rule, criteria, guideline, policy, or order of the Minnesota Pollution Control Agency, and 
251.28 	whether the equipment, device, or real property is installed or operated in accordance with 
251.29 	it. On determining that property qualifies for exemption, the commissioner shall issue an 
251.30 	order exempting the property from taxation. The commissioner shall develop an electronic 
251.31 	means to notify interested parties when the commissioner has issued an order exempting 
251.32 	property from taxation under this subdivision. The equipment, device, or real property shall 
251.33 	continue to be exempt from taxation as long as the order issued by the commissioner remains 
251.34 	in effect.

251.35 	EFFECTIVE DATE. This section is effective the day following final enactment.

252.1 	Sec. 18. Minnesota Statutes 2016, section 272.0211, subdivision 1, is amended to read:
252.2 		Subdivision 1.Efficiency determination and certification. An owner or operator of a 
252.3 	new or existing electric power generation facility, excluding wind energy conversion systems, 
252.4 	may apply to the commissioner of revenue for a market value exclusion on the property as 
252.5 	provided for in this section. This exclusion shall apply only to the market value of the 
252.6 	equipment of the facility, and shall not apply to the structures and the land upon which the 
252.7 	facility is located. The commissioner of revenue shall prescribe the formscontent, format, 
252.8 	manner, and procedures for this application pursuant to section 270C.30, except that a "law 
252.9 	administered by the commissioner" includes the property tax laws. If an application is made 
252.10 	by electronic means, the taxpayer's signature is defined pursuant to section 270C.304, except 
252.11 	that a "law administered by the commissioner" includes the property tax laws. Upon receiving 
252.12 	the application, the commissioner of revenue shall: (1) request the commissioner of commerce 
252.13 	to make a determination of the efficiency of the applicant's electric power generation facility; 
252.14 	and (2) shall develop an electronic means to notify interested parties when electric power 
252.15 	generation facilities have filed an application. The commissioner of commerce shall calculate 
252.16 	efficiency as the ratio of useful energy outputs to energy inputs, expressed as a percentage, 
252.17 	based on the performance of the facility's equipment during normal full load operation. The 
252.18 	commissioner must include in this formula the energy used in any on-site preparation of 
252.19 	materials necessary to convert the materials into the fuel used to generate electricity, such 
252.20 	as a process to gasify petroleum coke. The commissioner shall use the Higher Heating Value 
252.21 	(HHV) for all substances in the commissioner's efficiency calculations, except for wood 
252.22 	for fuel in a biomass-eligible project under section 216B.2424; for these instances, the 
252.23 	commissioner shall adjust the heating value to allow for energy consumed for evaporation 
252.24 	of the moisture in the wood. The applicant shall provide the commissioner of commerce 
252.25 	with whatever information the commissioner deems necessary to make the determination. 
252.26 	Within 30 days of the receipt of the necessary information, the commissioner of commerce 
252.27 	shall certify the findings of the efficiency determination to the commissioner of revenue 
252.28 	and to the applicant. The commissioner of commerce shall determine the efficiency of the 
252.29 	facility and certify the findings of that determination to the commissioner of revenue every 
252.30 	two years thereafter from the date of the original certification.

252.31 	EFFECTIVE DATE. This section is effective the day following final enactment.

252.32 	Sec. 19. Minnesota Statutes 2016, section 272.025, subdivision 1, is amended to read:
252.33 		Subdivision 1.Statement of exemption. (a) Except in the case of property owned by 
252.34 	the state of Minnesota or any political subdivision thereof, and property exempt from taxation 
253.1 	under section 272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22 to 25, and at the times 
253.2 	provided in subdivision 3, a taxpayer claiming an exemption from taxation on property 
253.3 	described in section 272.02, subdivisions 2 to 33, must file a statement of exemption with 
253.4 	the assessor of the assessment district in which the property is located.
253.5 	(b) A taxpayer claiming an exemption from taxation on property described in section 
253.6 	272.02, subdivision 10, must file a statement of exemption with the commissioner of revenue, 
253.7 	on or before February 15 of each year for which the taxpayer claims an exemption.
253.8 	(c) In case of sickness, absence or other disability or for good cause, the assessor or the 
253.9 	commissioner may extend the time for filing the statement of exemption for a period not to 
253.10 	exceed 60 days.
253.11 	(d) The commissioner of revenue shall prescribe the form and contents content, format, 
253.12 	and manner of the statement of exemption pursuant to section 270C.30, except that a "law 
253.13 	administered by the commissioner" includes the property tax laws.
253.14 	(e) If a statement is made by electronic means, the taxpayer's signature is defined pursuant 
253.15 	to section 270C.304, except that a "law administered by the commissioner" includes the 
253.16 	property tax laws.

253.17 	EFFECTIVE DATE. This section is effective the day following final enactment.

253.18 	Sec. 20. Minnesota Statutes 2016, section 272.029, subdivision 4, is amended to read:
253.19 		Subd. 4.Reports. (a) An owner of a wind energy conversion system subject to tax under 
253.20 	subdivision 3 shall file a report with the commissioner of revenue annually on or before 
253.21 	February 1 January 15 detailing the amount of electricity in kilowatt-hours that was produced 
253.22 	by the wind energy conversion system for the previous calendar year. The commissioner 
253.23 	shall prescribe the form content, format, and manner of the report pursuant to section 
253.24 	270C.30, except that a "law administered by the commissioner" includes the property tax 
253.25 	laws. The report must contain the information required by the commissioner to determine 
253.26 	the tax due to each county under this section for the current year. If an owner of a wind 
253.27 	energy conversion system subject to taxation under this section fails to file the report by 
253.28 	the due date, the commissioner of revenue shall determine the tax based upon the nameplate 
253.29 	capacity of the system multiplied by a capacity factor of 60 percent.
253.30 	(b) If a report is made by electronic means, the taxpayer's signature is defined pursuant 
253.31 	to section 270C.304, except that a "law administered by the commissioner" includes the 
253.32 	property tax laws.
254.1 	(b) (c) On or before February 28, the commissioner of revenue shall notify the owner 
254.2 	of the wind energy conversion systems of the tax due to each county for the current year 
254.3 	and shall certify to the county auditor of each county in which the systems are located the 
254.4 	tax due from each owner for the current year.

254.5 	EFFECTIVE DATE. This section is effective the day following final enactment, except 
254.6 	that the amendment in paragraph (a) moving the date to file the report is effective for reports 
254.7 	filed in 2017 and thereafter.

254.8 	Sec. 21. Minnesota Statutes 2016, section 272.0295, subdivision 4, is amended to read:
254.9 		Subd. 4.Reports. An owner of a solar energy generating system subject to tax under 
254.10 	this section shall file a report with the commissioner of revenue annually on or before 
254.11 	January 15 detailing the amount of electricity in megawatt-hours that was produced by the 
254.12 	system in the previous calendar year. The commissioner shall prescribe the formcontent, 
254.13 	format, and manner of the report pursuant to section 270C.30. The report must contain the 
254.14 	information required by the commissioner to determine the tax due to each county under 
254.15 	this section for the current year. If an owner of a solar energy generating system subject to 
254.16 	taxation under this section fails to file the report by the due date, the commissioner of 
254.17 	revenue shall determine the tax based upon the nameplate capacity of the system multiplied 
254.18 	by a capacity factor of 30 percent.

254.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

254.20 	Sec. 22. Minnesota Statutes 2016, section 272.115, subdivision 2, is amended to read:
254.21 		Subd. 2.Form; information required. The certificate of value shall require such facts 
254.22 	and information as may be determined by the commissioner to be reasonably necessary in 
254.23 	the administration of the state education aid formulas. The formcommissioner shall prescribe 
254.24 	the content, format, and manner of the certificate of value shall be prescribed by the 
254.25 	Department of Revenue which shall provide an adequate supply of forms to each county 
254.26 	auditor pursuant to section 270C.30, except that a "law administered by the commissioner" 
254.27 	includes the property tax laws.

254.28 	EFFECTIVE DATE. This section is effective the day following final enactment.

254.29 	Sec. 23. Minnesota Statutes 2016, section 273.124, subdivision 13, is amended to read:
254.30 		Subd. 13.Homestead application. (a) A person who meets the homestead requirements 
254.31 	under subdivision 1 must file a homestead application with the county assessor to initially 
254.32 	obtain homestead classification.
255.1 	(b) The format and contents of a uniform homestead application shall be prescribed by 
255.2 	the commissioner of revenue. The commissioner shall prescribe the content, format, and 
255.3 	manner of the homestead application required to be filed under this chapter pursuant to 
255.4 	section 270C.30. The application must clearly inform the taxpayer that this application must 
255.5 	be signed by all owners who occupy the property or by the qualifying relative and returned 
255.6 	to the county assessor in order for the property to receive homestead treatment.
255.7 	(c) Every property owner applying for homestead classification must furnish to the 
255.8 	county assessor the Social Security number of each occupant who is listed as an owner of 
255.9 	the property on the deed of record, the name and address of each owner who does not occupy 
255.10 	the property, and the name and Social Security number of each owner's spouse who occupies 
255.11 	the property. The application must be signed by each owner who occupies the property and 
255.12 	by each owner's spouse who occupies the property, or, in the case of property that qualifies 
255.13 	as a homestead under subdivision 1, paragraph (c), by the qualifying relative.
255.14 	If a property owner occupies a homestead, the property owner's spouse may not claim 
255.15 	another property as a homestead unless the property owner and the property owner's spouse 
255.16 	file with the assessor an affidavit or other proof required by the assessor stating that the 
255.17 	property qualifies as a homestead under subdivision 1, paragraph (e).
255.18 	Owners or spouses occupying residences owned by their spouses and previously occupied 
255.19 	with the other spouse, either of whom fail to include the other spouse's name and Social 
255.20 	Security number on the homestead application or provide the affidavits or other proof 
255.21 	requested, will be deemed to have elected to receive only partial homestead treatment of 
255.22 	their residence. The remainder of the residence will be classified as nonhomestead residential. 
255.23 	When an owner or spouse's name and Social Security number appear on homestead 
255.24 	applications for two separate residences and only one application is signed, the owner or 
255.25 	spouse will be deemed to have elected to homestead the residence for which the application 
255.26 	was signed.
255.27 	(d) If residential real estate is occupied and used for purposes of a homestead by a relative 
255.28 	of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in order for 
255.29 	the property to receive homestead status, a homestead application must be filed with the 
255.30 	assessor. The Social Security number of each relative and spouse of a relative occupying 
255.31 	the property shall be required on the homestead application filed under this subdivision. If 
255.32 	a different relative of the owner subsequently occupies the property, the owner of the property 
255.33 	must notify the assessor within 30 days of the change in occupancy. The Social Security 
255.34 	number of a relative or relative's spouse occupying the property is private data on individuals 
255.35 	as defined by section 13.02, subdivision 12, but may be disclosed to the commissioner of 
256.1 	revenue, or, for the purposes of proceeding under the Revenue Recapture Act to recover 
256.2 	personal property taxes owing, to the county treasurer.
256.3 	(e) The homestead application shall also notify the property owners that if the property 
256.4 	is granted homestead status for any assessment year, that same property shall remain 
256.5 	classified as homestead until the property is sold or transferred to another person, or the 
256.6 	owners, the spouse of the owner, or the relatives no longer use the property as their 
256.7 	homestead. Upon the sale or transfer of the homestead property, a certificate of value must 
256.8 	be timely filed with the county auditor as provided under section 272.115. Failure to notify 
256.9 	the assessor within 30 days that the property has been sold, transferred, or that the owner, 
256.10 	the spouse of the owner, or the relative is no longer occupying the property as a homestead, 
256.11 	shall result in the penalty provided under this subdivision and the property will lose its 
256.12 	current homestead status.
256.13 	(f) If a homestead application has not been filed with the county by December 15, the 
256.14 	assessor shall classify the property as nonhomestead for the current assessment year for 
256.15 	taxes payable in the following year, provided that the owner may be entitled to receive the 
256.16 	homestead classification by proper application under section 375.192.

256.17 	EFFECTIVE DATE. This section is effective the day following final enactment.

256.18 	Sec. 24. Minnesota Statutes 2016, section 273.371, is amended to read:
256.19 	273.371 REPORTS OF UTILITY COMPANIES.
256.20 		Subdivision 1.Report required. Every electric light, power, gas, water, express, stage, 
256.21 	and transportation company, and pipeline company doing business in Minnesota shall 
256.22 	annually file with the commissioner on or before March 31 a report under oath setting forth 
256.23 	the information prescribed by the commissioner to enable the commissioner to make 
256.24 	valuations, recommended valuations, and equalization required under sections 273.33, 
256.25 	273.35, 273.36, 273.37, and 273.3711. The commissioner shall prescribe the content, format, 
256.26 	and manner of the report pursuant to section 270C.30, except that a "law administered by 
256.27 	the commissioner" includes the property tax laws. If all the required information is not 
256.28 	available on March 31, the company or pipeline shall file the information that is available 
256.29 	on or before March 31, and the balance of the information as soon as it becomes available.
256.30 	If a report is made by electronic means, the taxpayer's signature is defined pursuant to section 
256.31 	270C.304, except that a "law administered by the commissioner" includes the property tax 
256.32 	laws.
257.1 		Subd. 2.Extension. The commissioner for good cause may extend the time for filing 
257.2 	the report required by subdivision 1. The extension may must not exceed 15 days.
257.3 		Subd. 3.Reports filed by the commissioner. If a company fails to file a report required 
257.4 	by subdivision 1, the commissioner may, from information in the commissioner's possession 
257.5 	or obtainable by the commissioner, make and file a report for the company or make the 
257.6 	valuations, recommended valuations, and equalizations required under sections 273.33, 
257.7 	273.35 to 273.37, and 273.3711.

257.8 	EFFECTIVE DATE. This section is effective the day following final enactment.

257.9 	Sec. 25. Minnesota Statutes 2016, section 287.2205, is amended to read:
257.10 	287.2205 TAX-FORFEITED LAND.
257.11 	Before a state deed for tax-forfeited land may be issued, the deed tax must be paid by 
257.12 	the purchaser of tax-forfeited land whether the purchase is the result of a public auction or 
257.13 	private sale or a repurchase of tax-forfeited land. State agencies and local units of government 
257.14 	that acquire tax-forfeited land by purchase or any other means are subject to this section. 
257.15 	The deed tax is $1.65 for a conveyance of tax-forfeited lands to a governmental subdivision 
257.16 	for an authorized public use under section 282.01, subdivision 1a, for a school forest under 
257.17 	section 282.01, subdivision 1a, or for redevelopment purposes under section 282.01, 
257.18 	subdivision 1b.

257.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

257.20 	Sec. 26. Minnesota Statutes 2016, section 289A.08, is amended by adding a subdivision 
257.21 	to read:
257.22 		Subd. 17.Format. The commissioner shall prescribe the content, format, and manner 
257.23 	of the returns and other documents pursuant to section 270C.30. This does not authorize 
257.24 	the commissioner to require individual income taxpayers to file individual income tax returns 
257.25 	electronically.

257.26 	EFFECTIVE DATE. This section is effective the day following final enactment.

257.27 	Sec. 27. Minnesota Statutes 2016, section 289A.09, subdivision 1, is amended to read:
257.28 		Subdivision 1.Returns. (a) An employer who is required to deduct and withhold tax 
257.29 	under section 290.92, subdivision 2a or 3, and a person required to deduct and withhold tax 
257.30 	under section 290.923, subdivision 2, must file a return with the commissioner for each 
257.31 	quarterly period unless otherwise prescribed by the commissioner.
258.1 	(b) A person or corporation required to make deposits under section 290.9201, subdivision 
258.2 	8, must file an entertainer withholding tax return with the commissioner.
258.3 	(c) A person required to withhold an amount under section 290.9705, subdivision 1, 
258.4 	must file a return.
258.5 	(d) A partnership required to deduct and withhold tax under section 290.92, subdivision 
258.6 	4b, must file a return.
258.7 	(e) An S corporation required to deduct and withhold tax under section 290.92, 
258.8 	subdivision 4c, must also file a return.
258.9 	(f) Returns must be filed in the form and manner, and contain the information prescribed 
258.10 	by the commissioner. The commissioner shall prescribe the content, format, and manner 
258.11 	of the returns pursuant to section 270C.30. Every return for taxes withheld must be signed 
258.12 	by the employer, entertainment entity, contract payor, partnership, or S corporation, or a 
258.13 	designee.

258.14 	EFFECTIVE DATE. This section is effective the day following final enactment.

258.15 	Sec. 28. Minnesota Statutes 2016, section 289A.11, subdivision 1, is amended to read:
258.16 		Subdivision 1.Return required. (a) Except as provided in section 289A.18, subdivision 
258.17 	4, for the month in which taxes imposed by chapter 297A are payable, or for which a return 
258.18 	is due, a return for the preceding reporting period must be filed with the commissioner in 
258.19 	the form and manner the commissioner prescribes. The commissioner shall prescribe the 
258.20 	content, format, and manner of the returns pursuant to section 270C.30. A person making 
258.21 	sales at retail at two or more places of business may file a consolidated return subject to 
258.22 	rules prescribed by the commissioner. In computing the dollar amount of items on the return, 
258.23 	the amounts are rounded off to the nearest whole dollar, disregarding amounts less than 50 
258.24 	cents and increasing amounts of 50 cents to 99 cents to the next highest dollar.
258.25 	(b) Notwithstanding this subdivision, a person who is not required to hold a sales tax 
258.26 	permit under chapter 297A and who makes annual purchases, for use in a trade or business, 
258.27 	of less than $18,500, or a person who is not required to hold a sales tax permit and who 
258.28 	makes purchases for personal use, that are subject to the use tax imposed by section 297A.63, 
258.29 	may file an annual use tax return on a form prescribed by the commissioner. The 
258.30 	commissioner shall prescribe the content, format, and manner of the return pursuant to 
258.31 	section 270C.30. If a person who qualifies for an annual use tax reporting period is required 
258.32 	to obtain a sales tax permit or makes use tax purchases, for use in a trade or business, in 
258.33 	excess of $18,500 during the calendar year, the reporting period must be considered ended 
259.1 	at the end of the month in which the permit is applied for or the purchase in excess of 
259.2 	$18,500 is made and a return must be filed for the preceding reporting period.
259.3 	(c) Notwithstanding paragraph paragraphs (a) and (b), a person prohibited by the person's 
259.4 	religious beliefs from using electronics shall be allowed to file by mail, without any additional 
259.5 	fees. The filer must notify the commissioner of revenue of the intent to file by mail on a 
259.6 	form prescribed by the commissioner. A return filed under this paragraph must be postmarked 
259.7 	no later than the day the return is due in order to be considered filed on a timely basis.

259.8 	EFFECTIVE DATE. This section is effective the day following final enactment.

259.9 	Sec. 29. Minnesota Statutes 2016, section 289A.18, subdivision 1, is amended to read:
259.10 		Subdivision 1.Individual income, fiduciary income, corporate franchise, and 
259.11 	entertainment taxes; partnership and S corporation returns; information returns; 
259.12 	mining company returns. The returns required to be made under sections 289A.08 and 
259.13 	289A.12 must be filed at the following times:
259.14 	(1) returns made on the basis of the calendar year must be filed on April 15 following 
259.15 	the close of the calendar year, except that returns of corporations and partnerships must be 
259.16 	filed on the due date for filing the federal income tax return;
259.17 	(2) returns made on the basis of the fiscal year must be filed on the 15th day of the fourth 
259.18 	month following the close of the fiscal year, except that returns of corporations and 
259.19 	partnerships must be filed on the due date for filing the federal income tax return;
259.20 	(3) returns for a fractional part of a year must be filed on the due date for filing the 
259.21 	federal income tax return;
259.22 	(4) in the case of a final return of a decedent for a fractional part of a year, the return 
259.23 	must be filed on the 15th day of the fourth month following the close of the 12-month period 
259.24 	that began with the first day of that fractional part of a year;
259.25 	(5) in the case of the return of a cooperative association, returns must be filed on or 
259.26 	before the 15th day of the ninth month following the close of the taxable year;
259.27 	(6) if a corporation has been divested from a unitary group and files a return for a 
259.28 	fractional part of a year in which it was a member of a unitary business that files a combined 
259.29 	report under section 290.17, subdivision 4, the divested corporation's return must be filed 
259.30 	on the 15th day of the third month following the close of the common accounting period 
259.31 	that includes the fractional year;
260.1 	(7) returns of entertainment entities must be filed on April 15 following the close of the 
260.2 	calendar year;
260.3 	(8) returns required to be filed under section 289A.08, subdivision 4, must be filed on 
260.4 	the 15th day of the fifth month following the close of the taxable year;
260.5 	(9) returns of mining companies must be filed on May 1 following the close of the 
260.6 	calendar year; and
260.7 	(10) returns required to be filed with the commissioner under section 289A.12, 
260.8 	subdivision 2, 4 to 10, or 16 must be filed within 30 days after being demanded by the 
260.9 	commissioner.

260.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

260.11 	Sec. 30. Minnesota Statutes 2016, section 289A.37, subdivision 2, is amended to read:
260.12 		Subd. 2.Erroneous refunds. An erroneous refund is considered an underpayment of 
260.13 	tax on the date made. An assessment of a deficiency arising out of an erroneous refund may 
260.14 	be made at any time within two years from the making of the refund. If part of the refund 
260.15 	was induced by fraud or misrepresentation of a material fact, the assessment may be made 
260.16 	at any time. (a) Except as provided in paragraph (b), an erroneous refund occurs when the 
260.17 	commissioner issues a payment to a person that exceeds the amount the person is entitled 
260.18 	to receive under law. An erroneous refund is considered an underpayment of tax on the date 
260.19 	issued.
260.20 	(b) To the extent that the amount paid does not exceed the amount claimed by the 
260.21 	taxpayer, an erroneous refund does not include the following:
260.22 	(1) any amount of a refund or credit paid pursuant to a claim for refund filed by a 
260.23 	taxpayer, including but not limited to refunds of claims made under section 290.06, 
260.24 	subdivision 23; 290.067; 290.0671; 290.0672; 290.0674; 290.0675; 290.0677; 290.068; 
260.25 	290.0681; or 290.0692; or chapter 290A; or
260.26 	(2) any amount paid pursuant to a claim for refund of an overpayment of tax filed by a 
260.27 	taxpayer.
260.28 	(c) The commissioner may make an assessment to recover an erroneous refund at any 
260.29 	time within two years from the issuance of the erroneous refund. If all or part of the erroneous 
260.30 	refund was induced by fraud or misrepresentation of a material fact, the assessment may 
260.31 	be made at any time.
261.1 	(d) Assessments of amounts that are not erroneous refunds under paragraph (b) must be 
261.2 	conducted under section 289A.38.

261.3 	EFFECTIVE DATE. This section is effective the day following final enactment and 
261.4 	applies retroactively to all refunds issued on, before, or after that date, but does not apply 
261.5 	to the refunds at issue in Connexus Energy et al. v. Commissioner of Revenue, 868 N.W.2d 
261.6 	234 (Minn. 2015). Notwithstanding any law to the contrary, the changes in this section do 
261.7 	not invalidate any assessments made by the commissioner prior to this effective date.

261.8 	Sec. 31. Minnesota Statutes 2016, section 289A.50, subdivision 7, is amended to read:
261.9 		Subd. 7.Remedies. (a) If the taxpayer is notified by the commissioner that the refund 
261.10 	claim is denied in whole or in part, the taxpayer may:
261.11 	(1) file an administrative appeal as provided in section 270C.35, or an appeal with the 
261.12 	Tax Court, within 60 days after issuance the notice date of the commissioner's notice of 
261.13 	denial; or
261.14 	(2) file an action in the district court to recover the refund.
261.15 	(b) An action in the district court on a denied claim for refund must be brought within 
261.16 	18 months of the notice date of the denial of the claim by the commissioner. For the purposes 
261.17 	of this section, "notice date" is defined in section 270C.35, subdivision 3.
261.18 	(c) No action in the district court or the Tax Court shall be brought within six months 
261.19 	of the filing of the refund claim unless the commissioner denies the claim within that period.
261.20 	(d) If a taxpayer files a claim for refund and the commissioner has not issued a denial 
261.21 	of the claim, the taxpayer may bring an action in the district court or the Tax Court at any 
261.22 	time after the expiration of six months from the time the claim was filed.
261.23 	(e) The commissioner and the taxpayer may agree to extend the period for bringing an 
261.24 	action in the district court.
261.25 	(f) An action for refund of tax by the taxpayer must be brought in the district court of 
261.26 	the district in which lies the county of the taxpayer's residence or principal place of business. 
261.27 	In the case of an estate or trust, the action must be brought at the principal place of its 
261.28 	administration. Any action may be brought in the district court for Ramsey County.

261.29 	EFFECTIVE DATE. This section is effective for claims for refund denied after 
261.30 	December 31, 2017.

262.1 	Sec. 32. [290B.11] FORMS.
262.2 	The commissioner shall prescribe the content, format, and manner of all forms and other 
262.3 	documents required to be filed under this chapter pursuant to section 270C.30.

262.4 	EFFECTIVE DATE. This section is effective the day following final enactment.

262.5 	Sec. 33. [290C.051] VERIFICATION OF FOREST MANAGEMENT PLAN.
262.6 	On request of the commissioner, the commissioner of natural resources must annually 
262.7 	provide verification that the claimant has a current forest management plan on file with the 
262.8 	Department of Natural Resources.

262.9 	EFFECTIVE DATE. This section is effective for certifications filed after July 1, 2017.

262.10 	Sec. 34. [293.15] FORMS.
262.11 	The commissioner shall prescribe the content, format, and manner of all forms and other 
262.12 	documents required to be filed under this chapter pursuant to section 270C.30.

262.13 	EFFECTIVE DATE. This section is effective the day following final enactment.

262.14 	Sec. 35. Minnesota Statutes 2016, section 295.55, subdivision 6, is amended to read:
262.15 		Subd. 6.Form of returns. The estimated payments and annual return must contain the 
262.16 	information and be in the form prescribed by the commissioner. The commissioner shall 
262.17 	prescribe the content, format, and manner of the estimated payment forms and annual return 
262.18 	pursuant to section 270C.30.

262.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

262.20 	Sec. 36. Minnesota Statutes 2016, section 296A.02, is amended by adding a subdivision 
262.21 	to read:
262.22 		Subd. 5.Forms.  The commissioner shall prescribe the content, format, and manner of 
262.23 	all forms and other documents required to be filed under this chapter pursuant to section 
262.24 	270C.30.

262.25 	EFFECTIVE DATE. This section is effective the day following final enactment.

263.1 	Sec. 37. Minnesota Statutes 2016, section 296A.22, subdivision 9, is amended to read:
263.2 		Subd. 9.Abatement of penalty. (a) The commissioner may by written order abate any 
263.3 	penalty imposed under this section, if in the commissioner's opinion there is reasonable 
263.4 	cause to do so.
263.5 	(b) A request for abatement of penalty must be filed with the commissioner within 60 
263.6 	days of the notice date of the notice stating that a penalty has been imposed was mailed to 
263.7 	the taxpayer's last known address. For purposes of this section, the term "notice date" means 
263.8 	the notice date designated by the commissioner on the order or other notice that a penalty 
263.9 	has been imposed.
263.10 	(c) If the commissioner issues an order denying a request for abatement of penalty, the 
263.11 	taxpayer may file an administrative appeal as provided in section 270C.35 or appeal to Tax 
263.12 	Court as provided in section 271.06. If the commissioner does not issue an order on the 
263.13 	abatement request within 60 days from the date the request is received, the taxpayer may 
263.14 	appeal to Tax Court as provided in section 271.06.

263.15 	EFFECTIVE DATE. This section is effective for orders and notices dated after 
263.16 	December 31, 2017.

263.17 	Sec. 38. Minnesota Statutes 2016, section 296A.26, is amended to read:
263.18 	296A.26 JUDICIAL REVIEW; APPEAL TO TAX COURT.
263.19 	In lieu of an administrative appeal under section 270C.35, any person aggrieved by an 
263.20 	order of the commissioner fixing a tax, penalty, or interest under this chapter may, within 
263.21 	60 days from the notice date of the notice of the order, appeal to the Tax Court in the manner 
263.22 	provided under section 271.06. For purposes of this section, the term "notice date" means 
263.23 	the notice date designated by the commissioner on the order fixing a tax, penalty, or interest.

263.24 	EFFECTIVE DATE. This section is effective for orders dated after December 31, 
263.25 	2017.

263.26 	Sec. 39. Minnesota Statutes 2016, section 297D.02, is amended to read:
263.27 	297D.02 ADMINISTRATION.
263.28 	The commissioner of revenue shall administer this chapter. The commissioner shall 
263.29 	prescribe the content, format, and manner of all forms and other documents required to be 
263.30 	filed under this chapter pursuant to section 270C.30. Payments required by this chapter 
263.31 	must be made to the commissioner on the form provided by the commissioner. Tax obligors 
264.1 	are not required to give their name, address, Social Security number, or other identifying 
264.2 	information on the form. The commissioner shall collect all taxes under this chapter.

264.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

264.4 	Sec. 40. Minnesota Statutes 2016, section 297E.02, subdivision 3, is amended to read:
264.5 		Subd. 3.Collection; disposition. (a) Taxes imposed by this section are due and payable 
264.6 	to the commissioner when the gambling tax return is required to be filed. Distributors must 
264.7 	file their monthly sales figures with the commissioner on a form prescribed by the 
264.8 	commissioner. Returns covering the taxes imposed under this section must be filed with 
264.9 	the commissioner on or before the 20th day of the month following the close of the previous 
264.10 	calendar month. The commissioner may require that the returns be filed via magnetic media 
264.11 	or electronic data transfer. The commissioner shall prescribe the content, format, and manner 
264.12 	of returns or other documents pursuant to section 270C.30. The proceeds, along with the 
264.13 	revenue received from all license fees and other fees under sections 349.11 to 349.191, 
264.14 	349.211, and 349.213, must be paid to the commissioner of management and budget for 
264.15 	deposit in the general fund.
264.16 	(b) The sales tax imposed by chapter 297A on the sale of pull-tabs and tipboards by the 
264.17 	distributor is imposed on the retail sales price. The retail sale of pull-tabs or tipboards by 
264.18 	the organization is exempt from taxes imposed by chapter 297A and is exempt from all 
264.19 	local taxes and license fees except a fee authorized under section 349.16, subdivision 8.
264.20 	(c) One-half of one percent of the revenue deposited in the general fund under paragraph 
264.21 	(a), is appropriated to the commissioner of human services for the compulsive gambling 
264.22 	treatment program established under section 245.98. One-half of one percent of the revenue 
264.23 	deposited in the general fund under paragraph (a), is appropriated to the commissioner of 
264.24 	human services for a grant to the state affiliate recognized by the National Council on 
264.25 	Problem Gambling to increase public awareness of problem gambling, education and training 
264.26 	for individuals and organizations providing effective treatment services to problem gamblers 
264.27 	and their families, and research relating to problem gambling. Money appropriated by this 
264.28 	paragraph must supplement and must not replace existing state funding for these programs.

264.29 	EFFECTIVE DATE. This section is effective the day following final enactment.

264.30 	Sec. 41. Minnesota Statutes 2016, section 297E.04, subdivision 1, is amended to read:
264.31 		Subdivision 1.Reports of sales. A manufacturer who sells gambling product for use or 
264.32 	resale in this state, or for receipt by a person or entity in this state, shall file with the 
265.1 	commissioner, on a form prescribed by the commissioner, a report of gambling product 
265.2 	sold to any person in the state, including the established governing body of an Indian tribe 
265.3 	recognized by the United States Department of the Interior. The report must be filed monthly 
265.4 	on or before the 20th day of the month succeeding the month in which the sale was made. 
265.5 	The commissioner may require that the report be submitted via magnetic media or electronic 
265.6 	data transfer. The commissioner shall prescribe the content, format, and manner of returns 
265.7 	or other documents pursuant to section 270C.30. The commissioner may inspect the premises, 
265.8 	books, records, and inventory of a manufacturer without notice during the normal business 
265.9 	hours of the manufacturer. A person violating this section is guilty of a misdemeanor.

265.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

265.11 	Sec. 42. Minnesota Statutes 2016, section 297E.05, subdivision 4, is amended to read:
265.12 		Subd. 4.Reports. A distributor shall report monthly to the commissioner, on a form the 
265.13 	commissioner prescribes, its sales of each type of gambling product. This report must be 
265.14 	filed monthly on or before the 20th day of the month succeeding the month in which the 
265.15 	sale was made. The commissioner may require that a distributor submit the monthly report 
265.16 	and invoices required in this subdivision via magnetic media or electronic data transfer.
265.17 	The commissioner shall prescribe the content, format, and manner of returns or other 
265.18 	documents pursuant to section 270C.30.

265.19 	EFFECTIVE DATE. This section is effective the day following final enactment.

265.20 	Sec. 43. Minnesota Statutes 2016, section 297E.06, subdivision 1, is amended to read:
265.21 		Subdivision 1.Reports. An organization must file with the commissioner, on a form 
265.22 	prescribed by the commissioner, a report showing all gambling activity conducted by that 
265.23 	organization for each month. Gambling activity includes all gross receipts, prizes, all 
265.24 	gambling taxes owed or paid to the commissioner, all gambling expenses, and all lawful 
265.25 	purpose and board-approved expenditures. The report must be filed with the commissioner 
265.26 	on or before the 20th day of the month following the month in which the gambling activity 
265.27 	takes place. The commissioner may require that the reports be filed via magnetic media or 
265.28 	electronic data transfer. The commissioner shall prescribe the content, format, and manner 
265.29 	of returns or other documents pursuant to section 270C.30.

265.30 	EFFECTIVE DATE. This section is effective the day following final enactment.

266.1 	Sec. 44. Minnesota Statutes 2016, section 297F.09, subdivision 1, is amended to read:
266.2 		Subdivision 1.Monthly return; cigarette distributor. On or before the 18th day of 
266.3 	each calendar month, a distributor with a place of business in this state shall file a return 
266.4 	with the commissioner showing the quantity of cigarettes manufactured or brought in from 
266.5 	outside the state or purchased during the preceding calendar month and the quantity of 
266.6 	cigarettes sold or otherwise disposed of in this state and outside this state during that month. 
266.7 	A licensed distributor outside this state shall in like manner file a return showing the quantity 
266.8 	of cigarettes shipped or transported into this state during the preceding calendar month. 
266.9 	Returns must be made in the form and manner prescribed by The commissioner  shall 
266.10 	prescribe the content, format, and manner of returns pursuant to section 270C.30, and the 
266.11 	returns must contain any other information required by the commissioner. The return must 
266.12 	be accompanied by a remittance for the full unpaid tax liability shown by it. For distributors 
266.13 	subject to the accelerated tax payment requirements in subdivision 10, the return for the 
266.14 	May liability is due two business days before June 30th of the year and the return for the 
266.15 	June liability is due on or before August 18th of the year.

266.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

266.17 	Sec. 45. Minnesota Statutes 2016, section 297F.23, is amended to read:
266.18 	297F.23 JUDICIAL REVIEW.
266.19 	In lieu of an administrative appeal under section 270C.35, a person aggrieved by an 
266.20 	order of the commissioner fixing a tax, penalty, or interest under this chapter may, within 
266.21 	60 days from the notice date of the notice of the order, appeal to the Tax Court in the manner 
266.22 	provided under section 271.06. For purposes of this section, the term "notice date" means 
266.23 	the notice date designated by the commissioner on the order fixing a tax, penalty, or interest.

266.24 	EFFECTIVE DATE. This section is effective for orders dated after December 31, 
266.25 	2017.

266.26 	Sec. 46. Minnesota Statutes 2016, section 297G.09, subdivision 1, is amended to read:
266.27 		Subdivision 1.Monthly returns; manufacturers, wholesalers, brewers, or importers.
 266.28 	On or before the 18th day of each calendar month following the month in which a licensed 
266.29 	manufacturer or wholesaler first sells wine and distilled spirits within the state, or a brewer 
266.30 	or importer first sells or imports fermented malt beverages, or a wholesaler knowingly 
266.31 	acquires title to or possession of untaxed fermented malt beverages, the licensed 
266.32 	manufacturer, wholesaler, brewer, or importer liable for the excise tax must file a return 
267.1 	with the commissioner, and in addition must keep records and render reports as required 
267.2 	by the commissioner. Returns must be made in a form and manner prescribed by the 
267.3 	commissioner, and  The commissioner shall prescribe the content, format, and manner of 
267.4 	returns pursuant to section 270C.30. The returns must contain any other information required 
267.5 	by the commissioner. Returns must be accompanied by a remittance for the full unpaid tax 
267.6 	liability. Returns must be filed regardless of whether a tax is due.

267.7 	EFFECTIVE DATE. This section is effective the day following final enactment.

267.8 	Sec. 47. Minnesota Statutes 2016, section 297G.22, is amended to read:
267.9 	297G.22 JUDICIAL REVIEW.
267.10 	In lieu of an administrative appeal under this chapter, a person aggrieved by an order of 
267.11 	the commissioner fixing a tax, penalty, or interest under this chapter may, within 60 days 
267.12 	from the date of the notice date of the order, appeal to the Tax Court in the manner provided 
267.13 	under section 271.06. For purposes of this section, the term "notice date" means the notice 
267.14 	date designated by the commissioner on the order fixing a tax, penalty, or interest.

267.15 	EFFECTIVE DATE. This section is effective for orders dated after December 31, 
267.16 	2017.

267.17 	Sec. 48. Minnesota Statutes 2016, section 297I.30, is amended by adding a subdivision 
267.18 	to read:
267.19 		Subd. 11.Format.  The commissioner shall prescribe the content, format, and manner 
267.20 	of returns or other documents pursuant to section 270C.30.

267.21 	EFFECTIVE DATE. This section is effective the day following final enactment.

267.22 	Sec. 49. Minnesota Statutes 2016, section 297I.60, subdivision 2, is amended to read:
267.23 		Subd. 2.Remedies. (a) If the taxpayer is notified that the refund claim is denied in whole 
267.24 	or in part, the taxpayer may contest the denial by:
267.25 	(1) filing an administrative appeal with the commissioner under section 270C.35;
267.26 	(2) filing an appeal in Tax Court within 60 days of the notice date of the notice of denial; 
267.27 	or
267.28 	(3) filing an action in the district court to recover the refund.
267.29 	(b) An action in the district court must be brought within 18 months following of the 
267.30 	notice date of the notice of denial. For purposes of this section, "notice date" is defined in 
268.1 	section 270C.35, subdivision 3. An action for refund of tax or surcharge must be brought 
268.2 	in the district court of the district in which lies the taxpayer's principal place of business or 
268.3 	in the District Court for Ramsey County. If a taxpayer files a claim for refund and the 
268.4 	commissioner has not issued a denial of the claim, the taxpayer may bring an action in the 
268.5 	district court or the Tax Court at any time after the expiration of six months from the time 
268.6 	the claim was filed.

268.7 	EFFECTIVE DATE. This section is effective for claims for refund denied after 
268.8 	December 31, 2017.

268.9 	Sec. 50. Minnesota Statutes 2016, section 469.319, subdivision 5, is amended to read:
268.10 		Subd. 5.Waiver authority. (a) The commissioner may waive all or part of a repayment 
268.11 	required under subdivision 1, if the commissioner, in consultation with the commissioner 
268.12 	of employment and economic development and appropriate officials from the local 
268.13 	government units in which the qualified business is located, determines that requiring 
268.14 	repayment of the tax is not in the best interest of the state or the local government units and 
268.15 	the business ceased operating as a result of circumstances beyond its control including, but 
268.16 	not limited to:
268.17 	(1) a natural disaster;
268.18 	(2) unforeseen industry trends; or
268.19 	(3) loss of a major supplier or customer.
268.20 	(b)(1) The commissioner shall waive repayment required under subdivision 1a if the 
268.21 	commissioner has waived repayment by the operating business under subdivision 1, unless 
268.22 	the person that received benefits without having to operate a business in the zone was a 
268.23 	contributing factor in the qualified business becoming subject to repayment under subdivision 
268.24 	1;
268.25 	(2) the commissioner shall waive the repayment required under subdivision 1a, even if 
268.26 	the repayment has not been waived for the operating business if:
268.27 	(i) the person that received benefits without having to operate a business in the zone and 
268.28 	the business that operated in the zone are not related parties as defined in section 267(b) of 
268.29 	the Internal Revenue Code of 1986, as amended through December 31, 2007; and
268.30 	(ii) actions of the person were not a contributing factor in the qualified business becoming 
268.31 	subject to repayment under subdivision 1.
269.1 	(c) Requests for waiver must be made no later than 60 days after the earlier of the notice 
269.2 	date of an order issued under subdivision 4, paragraph (d), or the date of a tax statement 
269.3 	issued under subdivision 4, paragraph (c). For purposes of this section, the term "notice 
269.4 	date" means the notice date designated by the commissioner on the order.

269.5 	EFFECTIVE DATE. This section is effective for orders of the commissioner of revenue 
269.6 	dated after December 31, 2017.

269.7 	Sec. 51.  REPEALER.
 269.8 	Minnesota Statutes 2016, section 290C.06, is repealed.

269.9 	EFFECTIVE DATE. This section is effective the day following final enactment.

APPENDIX 

Repealed Minnesota Statutes: 17-1140 

272.02 EXEMPT PROPERTY.Subd. 23.Agricultural containment facilities. 
Containment tanks, cache basins, and that portion of the structure needed for the containment facility used to confine agricultural chemicals as defined in section 18D.01, subdivision 3, as required by the commissioner of agriculture under chapter 18B or 18C, are exempt. 

281.22 COUNTY AUDITOR TO GIVE NOTICE.
In case any parcel of land bid in for the state at any tax judgment sale heretofore held has not been sold or assigned to an actual purchaser by one year before the expiration of the stated period of redemption of such parcel, it shall be the duty of the county auditor thereupon forthwith to give notice of expiration of the time for redemption of such parcel, as herein provided. Such notice shall be given and all other things done with respect to all such parcels, as provided by section 281.23, except that the notice shall state that the time for redemption will expire one year after service of notice and the filing of proof thereof, instead of 60 days. Otherwise, all the provisions of section 281.23 shall apply to and govern the corresponding matters under this section. 

The time for redemption of any parcel of land as to which notice of expiration has been given, as provided in this section, shall expire one year after the giving of such notice and the filing of proof thereof in the office of the county auditor, unless such parcel shall theretofore be assigned to an actual purchaser, as herein provided. 

290.067 DEPENDENT CARE CREDIT.Subd. 2.Limitations. 
The credit for expenses incurred for the care of each dependent shall not exceed $720 in any taxable year, and the total credit for all dependents of a claimant shall not exceed $1,440 in a taxable year. The maximum total credit shall be reduced according to the amount of the income of the claimant and a spouse, if any, as follows: 

income up to $18,040, $720 maximum for one dependent, $1,440 for all dependents; 

income over $18,040, the maximum credit for one dependent shall be reduced by $18 for every $350 of additional income, $36 for all dependents. 

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

Subd. 2a.Income. 
(a) For purposes of this section, "income" means the sum of the following: 

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

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

(i) all nontaxable income; 

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

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

(iv) cash public assistance and relief; 

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

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

(vii) workers' compensation; 

(viii) nontaxable strike benefits; 

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

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

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

(xii) nontaxable scholarship or fellowship grants; 

(xiii) the amount of deduction allowed under section 199 of the Internal Revenue Code; 

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

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

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

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

(b) "Income" does not include: 

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

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

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

(4) relief granted under chapter 290A; 

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

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

290C.02 DEFINITIONS.Subd. 5.Current use value. 
"Current use value" means the statewide average annual income per acre, multiplied by 90 percent and divided by the capitalization rate determined under subdivision 9. The statewide net annual income shall be a weighted average based on the most recent data as of July 1 of the computation year on stumpage prices and annual tree growth rates and acreage by cover type provided by the Department of Natural Resources and the United States Department of Agriculture Forest Service North Central Research Station. 

Subd. 9.Capitalization rate. 
By July 1 of each year, the commissioner shall determine a statewide capitalization rate for use under this chapter. The rate shall be the average annual effective interest rate for St. Paul on new loans under the Farm Credit Bank system calculated under section 2032A(e)(7)(A) of the Internal Revenue Code. 

290C.06 CALCULATION OF AVERAGE ESTIMATED MARKET VALUE; MANAGED FOREST LAND.
The commissioner shall annually calculate a statewide average estimated market value per acre for class 2c managed forest land under section 273.13, subdivision 23. 

297F.05 RATES OF TAX; PERSONAL DEBT.Subd. 1a.Annual indexing. 
(a) Each year the commissioner shall adjust the tax rates under subdivision 1, including any adjustment made in prior years under this subdivision, by multiplying the mill rates for the current calendar year by an adjustment factor and rounding the result to the nearest mill. The adjustment factor equals the in-lieu sales tax rate that applies to the following calendar year divided by the in-lieu sales tax rate for the current calendar year. For purposes of this subdivision, "in-lieu sales tax rate" means the tax rate established under section 297F.25, subdivision 1. For purposes of the calculations under this subdivision to be made in any year in which an increase in the federal or state excise tax on cigarettes is implemented, the commissioner shall exclude from the calculated average price for the current year an amount equal to any increase in the state or federal excise tax rate. 

(b) The commissioner shall publish the resulting rate by November 1 and the rate applies to sales made on or after January 1 of the following year. 

(c) The determination of the commissioner under this subdivision is not a rule and is not subject to the Administrative Procedure Act in chapter 14. 

477A.20 DEBT SERVICE AID; LEWIS AND CLARK JOINT POWERS BOARD.
(a) The Lewis and Clark Joint Powers Board is eligible to receive an aid distribution under this section equal to (1) the principal and interest payable in the succeeding calendar year for bonds issued under section 469.194 minus the sum of (2) the combined adjusted net tax capacity of Rock County and Nobles County for the assessment year prior to the aid payable year multiplied by 1.5 percent and (3) 50 percent of any federal aid received to fund the project in the calendar year. The board shall certify to the commissioner of revenue any federal aid allocated to the project for the calendar year and the principal and interest due in the succeeding calendar year by June 1 of the aid payable year. The commissioner of revenue shall calculate the aid payable under this section and certify the amount payable before July 1 of the aid distribution year. The commissioner shall pay the aid under this section to the board at the times specified for payments of local government aid in section 477A.015. An amount sufficient to pay the state aid authorized under this section is annually appropriated to the commissioner from the general fund. 

(b) The board must allocate the aid to the municipalities issuing bonds under section 469.194 in proportion to their principal and interest payments. 

(c) If the deduction under paragraph (a), clause (3), eliminates the aid payment under this section in a calendar year, then the excess of the deduction must be carried over and used to reduce the principal and interest in the succeeding year or years used to calculate aid under paragraph (a). 

(d) If federal grants and aid received for the project, not deducted under paragraph (a), clause (3), exceed the total debt service payments for bonds issued under section 469.194, other than payments made with state aid under this section, the joint powers board must repay any excess to the commissioner of revenue for deposit in the general fund. The repayment may not exceed the sum of state aid payments under this section and any other grants made by the state for the project. 

(e) This section expires at the earlier of January 1, 2039, or when the bonds authorized under section 469.194 have been paid or defeased. 

8092.1400ANNUAL RETURNS. Subpart 1.General rule.  
If an employer deducts and withholds an amount required by Minnesota Statutes, chapter 290, for a base year and the amount required is $500 or less, the employer, for the qualifying year, may elect to file an annual return and make an annual payment of the amount required to be deducted and withheld in that calendar year and is thereafter relieved from filing quarterly returns and making quarterly payments. The annual return and payment are due on or before February 28 of the calendar year following the calendar year the amounts were deducted and withheld. The annual return will serve as the reconciliation required in Minnesota Statutes, section 289A.09, subdivision 2, paragraph (d), for those employers who have elected to file an annual return. The Department of Revenue, applying the criteria of this part, will annually determine which employers are eligible to file an annual return and notify those employers who qualify. Employers who have not filed all withholding tax returns required for the base year are not eligible to file an annual return. Only those employers so notified by the Department of Revenue are eligible to elect to file an annual return. At the time of notification, eligible employers may still elect to file returns and make deposits quarterly. Employers who make such election are required to make all returns and deposits required by Minnesota Statutes, chapter 289A, and will be subject to all applicable penalties. 

Subp. 2.Base year.  
"Base year" means the most recent period of four consecutive quarters for which the Department of Revenue has compiled data on all employers withholding tax for that period. The first base year is the four-consecutive quarter period beginning January 1990 and ending December 1990. 

Subp. 3.Qualifying year.  
"Qualifying year" means the calendar year for which the Department of Revenue notifies the employer that it is eligible to file an annual return. The first qualifying year is the 1992 calendar year. 

Subp. 4.Accelerated deposits.  
If, at the end of any calendar month other than the last month of the calendar year, the aggregate amount of undeposited withholding tax withheld by an employer who has elected to file an annual return exceeds $500, the employer must deposit the aggregate amount with the Department of Revenue within 30 days after the close of the calendar month. 

Notwithstanding any other provision of this part, employers are subject to the eighth-monthly period deposit requirements of Minnesota Statutes, section 289A.20. 

In the event an employer who has elected to file an annual return pursuant to this part permanently ceases to pay wages for which withholding of tax is required, the employer must file a final return and deposit any undeposited tax on or before the last day of the month following the month in which the discontinuance of such activity occurred. 

Subp. 5.Maximum withholding amount.  
The commissioner of revenue shall annually recalculate the maximum withholding amount for annual filing, using the percentage calculated pursuant to Minnesota Statutes, section 290.06, subdivision 2d, paragraph (b). If the maximum withholding amount so calculated is more than $100 above the maximum withholding amount for annual filing then in effect, the maximum withholding amount for annual filing must be increased by $100. If the maximum withholding amount so calculated is less than $100 above the maximum withholding amount then in effect, there shall be no change in the maximum withholding amount then in effect. When the maximum withholding amount is adjusted by the commissioner under this subpart, the maximum withholding amounts referred to in subparts 1 and 4 must be adjusted by the same amount by the commissioner. 

8092.2000CONTRACTS WITH STATE; WITHHOLDING; CERTIFICATION. 
Minnesota Statutes, section 270C.66 provides that no department of the state of Minnesota nor any political or governmental subdivision thereof shall make final settlement with any contractor, under a contract requiring the employment of employees for wages by said contractor, until satisfactory showing is furnished to said department or governmental subdivision that the contractor in question has complied with the withholding provisions of Minnesota Statutes, section 290.92. The statute further provides that a certificate issued by the commissioner of revenue shall satisfy this requirement. 

The provisions of the statute are prospective in their effect and apply only to contracts executed after April 7, 1961. To facilitate the obtaining of the certification provided for by Minnesota Statutes, section 270C.66 the commissioner has made available form IC134. This form is in two parts, the first section thereof is in the form of an affidavit to be executed by a prime contractor or subcontractor and the second portion thereof is the commissioner's certification. The affidavit portion of the form in any event requires that certain identifying information be set forth by the affiant such as the name of the contractor, the address, withholding identification number, the number of the contract or contracts involved and the name of the department of the state or governmental subdivision with whom the contractor has contracted. The affidavit itself is divided into two parts A and B and it is intended that part A will be executed by both a prime contractor or subcontractor with respect to the employees of such prime contractor or subcontractor. 

Part B of said affidavit is to be executed only by a prime contractor who has utilized subcontractors in completing a contract with the state or governmental subdivision thereof. In such a case it is contemplated that each subcontractor will execute part A of the affidavit on form IC134 and obtain from the commissioner certification with respect to such subcontractor's own employees. This copy of form IC134 certified to with respect to the subcontractor's employees will be given to the prime contractor who should keep such affidavit and certification in the prime contractor's own files. When the prime contractor has received such an affidavit and certification from all of the subcontractors on the contract, the prime contractor will then be in a position to execute part B of the affidavit as well as part A and obtain a certification from the commissioner as to the prime contractor's own employees. This form IC134, when both parts A and B have been executed by the prime contractor and certified to by the commissioner, should then be delivered to the department or governmental subdivision in satisfaction of the requirements of Minnesota Statutes, section 270C.66. 

The withholding section of the Department of Revenue will process these affidavits and any requests for form IC134 or inquiries relative to their use and application should be directed to this part. 

8100.0700EQUALIZATION. Subpart 1.In general.  
After the apportionment of value referred to in part 8100.0600has been made, the values of structures valued by the commissioner must be equalized to coincide with the assessment levels of commercial and industrial property within each respective county receiving a share of the apportioned utilities value. This equalization will be accomplished through the use of an assessment/sales ratio. 

Subp. 2.Assessment/sales ratio computation.  
A comprehensive assessment/sales ratio study compiled annually by the sales ratio section of the Local Government Services Division of the Department of Revenue will be used in this computation. The portions of this study which will be used for purposes of this part are known as the "County Commercial and Industrial Sales Ratio." 

This commercial and industrial (C & I) sales ratio is computed through an analysis of the certificates of real estate value filed by the buyers or sellers of commercial or industrial property within each county. The information contained on these certificates of real estate value is compiled pursuant to requests, standards, and methods set forth by the Minnesota Department of Revenue acting upon recommendations of the Minnesota Legislature. The most recent C & I study available will be used for purposes of this part. 

The median C & I sales ratio from this County Commercial and Industrial Sales Ratio study will be used as a basis to estimate the current year C & I median ratio for each county. 

The process used to estimate this current year median ratio will be as follows: 

The State Board of Equalization abstract of market value will be examined. The current estimated market value of commercial and industrial property within each county will be taken from this abstract. The amount of the value of new commercial and industrial construction ("new" meaning since the last assessment period), as well as the value of commercial and industrial property which has changed classification (for example, commercial to tax exempt property) will also be taken from the abstract. The value of new construction will then be deducted from the estimated market value, resulting in a net estimated current year market value for commercial and industrial property within the county. The value of commercial and industrial property which has changed classification will be deducted from the previous years estimated market value to arrive at a net estimated previous year market value for commercial and industrial property within the county. The net current year value will be compared to the net previous year's estimated market value for commercial and industrial property within the county and the difference between the two values noted. This difference will be divided by the previous year's net estimated market value for commercial and industrial property to find the percentage of increase, or decrease, in assessment level for each year. This percent of change will be applied to the most recent C & I median ratio to estimate the current year's C & I median ratio. An example of this calculation for a typical county is shown below. 

	1990 E.M.V. for Commercial and			
	Industrial Property	$12,000,000		
	Less: New Construction	1,500,000		
		_____		
	1990 Net E.M.V. for C & I property		$ 10,500,000	
				
	1989 E.M.V. for C & I property	$10,250,000		
	Less: Classification changes	250,000		
		_____		
	1989 Net E.M.V. for C & I property		10,000,000	
				
	Difference 1989 vs 1990 E.M.V.		500,000	
				
	Percent of change (500,000/10,000,000)		5%	
	1989 Median C & I ratio		88%	
	1990 Estimated Median C & I ratio (88% x 105%)	92.4%	

This same calculation is performed for each Minnesota county. If there are five or fewer valid sales of commercial and industrial property within a county during the study period, these few sales are insufficient to form the basis for a meaningful C & I ratio. Therefore, the median assessment/sales ratio to be used for purposes of the example computation in this subpart will not be the median C & I ratio but will be the weighted median ratio of all property classes within the county for which a sales ratio is available. This weighted median ratio is computed in the same manner using the same procedures and standards as the C & I ratio. In addition, the example computation in this subpart will not be performed using the commercial and industrial estimated market value but will use the estimated market value for all property within the county. All other aspects of the calculations are identical except for this substitution. 

	Class of Property	Amount of Value	Percent of Value	Median Ratio	Weighted Median Ratio	
						
	Residential	$ 20,000,000	20%	86%	17.00%	
	Agricultural	55,000,000	55%	95%	52.25%	
	Seasonal - Recreational	5,000,000	5%	90%	4.50%	
	Commercial Industrial	20,000,000	20%	85%	17.00%	
						
	Total	$100,000,000	100%		90.75%	
Subp. 3.Application of the estimated current year median assessment/sales ratio.  
After the estimated current year median ratio has been calculated under subpart 2, it is used to adjust the apportioned estimated market value of utility structures valued by the commissioner. The value of these structures is reduced by the difference between 95 percent and the median ratio as adjusted in subpart 2. This is done by subtracting the current year median ratio, as adjusted, from the 95 percent provided for in Minnesota Statutes, section 278.05, subdivision 4, to arrive at an equalization factor. The estimated market value of utility structures is multiplied by the equalization factor to arrive at the reduction amount. The reduction amount is subtracted from the estimated market value of the utility structures to arrive at the equalized market value of structures. In no instance will any adjustment be made if, after comparing the current year median sales ratio as adjusted to the assessment level of utility structures, the difference between the two is ten percent or less. An example of this adjustment is as follows: 

		County A		County B	
					
	Estimated Level of Assessment for Utility Property*	100.00%		100.00%	
	95 percent provided for in Minnesota Statutes, section 278.05, subdivision 4	95.00%		95.00%	
	County Commercial/Industrial Sales Ratio	87.00%		93.00%	
	Equalization Factor	8.00%		0.00%	
	Estimated Market Value of Structures	1,000,000		1,000,000	
	Reduction in Value	80,000		0	
		_____		_____	
	Equalized Market Value of Structures	920,000		1,000,000**	
		==========		==========	

*For purposes of this example, assume that utility property is assessed at 100 percent of market value. 

**No adjustment is made because the Estimated Current Year Median Sales Ratio is within ten percent of the assessment level of utility property. 

All utilities operating within a particular county will be equalized at the same percentage. No adjustment for equalization will be made to machinery or personal property. 

These equalized estimated market values of utility structures valued by the commissioner will be forwarded to the county assessor denoting specific utility companies and taxing districts together with personal property and machinery values pursuant to Minnesota Statutes. 

8125.1300REFUNDS AND CREDITS.   Subp. 3.Gasoline used in aircraft.  
Refunds for gasoline, other than aviation gasoline, purchased and used to produce or generate power for propelling aircraft shall be issued only to those claimants who have received approval to use such gasoline from the Federal Aviation Administration as evidenced by a supplemental type certificate.