1.1 	A bill for an act
1.2 	relating to taxation; eliminating obsolete provisions; making clarifying and minor 
1.3 	policy changes; amending Minnesota Statutes 2012, sections 84A.20, subdivision 
1.4 	2; 84A.31, subdivision 2; 127A.48, subdivision 8; 163.06, subdivision 1; 
1.5 	270B.14, subdivision 3; 272.027, subdivision 1; 272.029, subdivision 6; 279.03, 
1.6 	subdivisions 1, 1a, 2; 282.261, subdivision 2; 290.01, subdivisions 5, 29; 
1.7 	290.0922, subdivision 3; 290.191, subdivisions 2, 3; 297I.05, subdivision 14; 
1.8 	298.293; 298.75, subdivision 1, by adding a subdivision; 469.176, subdivisions 
1.9 	1b, 3; 473.665, subdivision 5; Minnesota Statutes 2013 Supplement, sections 
1.10 	273.032; 273.13, subdivision 23; 273.1398, subdivision 3; 275.70, subdivision 5; 
1.11 	279.37, subdivision 2; 290.0921, subdivision 3; 297A.75, subdivisions 1, 2, 3; 
1.12 	298.223, subdivision 1; 465.04; 469.1763, subdivision 2; repealing Minnesota 
1.13 	Statutes 2012, sections 127A.48, subdivision 7; 272.02, subdivisions 43, 48, 51, 
1.14 	53, 67, 72, 82; 272.027, subdivision 2; 273.075; 273.1115; 273.1383; 273.1386; 
1.15 	273.1398, subdivision 4b; 273.80; 275.77; 279.32; 281.328; 282.10; 282.23; 
1.16 	289A.56, subdivision 7; 290.06, subdivisions 27, 30, 31; 290.191, subdivision 
1.17 	4; 290C.06; 291.41; 291.42; 291.43; 291.44; 291.45; 291.46; 291.47; 297A.68, 
1.18 	subdivision 38; 297A.69, subdivision 7; 297A.70, subdivision 9; 297A.71, 
1.19 	subdivisions 4, 5, 7, 9, 10, 17, 18, 20, 32, 41; 298.2961, subdivision 7; 298.75, 
1.20 	subdivisions 9, 11; 469.174, subdivision 10c; 469.175, subdivision 2b; 469.176, 
1.21 	subdivision 1i; 469.1764; 469.177, subdivision 10; 469.330; 469.331; 469.332; 
1.22 	469.333; 469.334; 469.335; 469.336; 469.337; 469.338; 469.339; 469.340, 
1.23 	subdivisions 1, 2, 3, 5; 469.341; 477A.0124, subdivisions 1, 6; 505.173; 
1.24 	Minnesota Statutes 2013 Supplement, sections 273.1103; 298.2961, subdivision 
1.25 	5; Laws 1993, chapter 375, article 9, section 47.
1.26 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.27 	Section 1. Minnesota Statutes 2012, section 84A.20, subdivision 2, is amended to read:
1.28 		Subd. 2.County proposal to state. ~~Under certain conditions,~~ The board of county 
1.29 	commissioners of any county may by resolution propose to the state that one or more 
1.30 	areas in the county be taken over by the state for afforestation, reforestation, flood control 
1.31 	projects, or other state purposes. The projects are to be managed, controlled, and used for 
1.32 	the purposes in subdivision 1 on lands to be acquired by the state within the projects, as set 
2.1 	forth in sections 84A.20 to 84A.30. The county board may propose this if ~~(1)~~ the county 
2.2 	contains lands suitable for the purposes in subdivision 1~~, (2) on January 1, 1931, the taxes~~ 
2.3 	~~on more than 35 percent of the taxable land in the county are delinquent, (3) on January 1,~~ 
2.4 	~~1931, the county's bonded ditch indebtedness, including accrued interest, equals or exceeds~~ 
2.5 	~~nine percent of the assessed valuation of the county, exclusive of money and credits~~.
2.6 	The area taken over must include lands that have been assessed for all or part of 
2.7 	the cost of the establishment and construction of public drainage ditches under state law, 
2.8 	and on which the assessments or installments are delinquent. A certified copy of the 
2.9 	county board's resolution must be filed with the department and considered and acted 
2.10 	upon by the department. If approved by the department, it must then be submitted to, 
2.11 	considered, and acted upon by the executive council. If approved by the Executive 
2.12 	Council, the proposition must be formally accepted by the governor. Acceptance must be 
2.13 	communicated in writing to and filed with the county auditor.

2.14 	Sec. 2. Minnesota Statutes 2012, section 84A.31, subdivision 2, is amended to read:
2.15 		Subd. 2.County proposal to state. ~~Under certain conditions,~~ The board of county 
2.16 	commissioners of any county may by resolution propose that the state take over part of the 
2.17 	tax-delinquent lands in the county~~. The board may propose this~~, if~~:~~
2.18 	~~(1)~~ the county contains land suitable for the purposes in subdivision 1~~;~~
2.19 	~~(2) on January 1, 1933, the taxes on more than 25 percent of the acreage of the lands~~ 
2.20 	~~in a town in the county are delinquent, as shown by its tax books;~~
2.21 	~~(3) on January 1, 1933, the taxes or ditch assessments on more than 50 percent of the~~ 
2.22 	~~acreage of the lands to be taken over are delinquent, as shown by the county's tax books; and~~
2.23 	~~(4) on January 1, 1933, the bonded ditch indebtedness of the county equals or~~ 
2.24 	~~exceeds 15 percent of the assessed value of the county for 1932 as fixed by the Minnesota~~ 
2.25 	~~Tax Commission, exclusive of money and credits~~.

2.26 	Sec. 3. Minnesota Statutes 2012, section 127A.48, subdivision 8, is amended to read:
2.27 		Subd. 8.Decrease in iron ore net tax capacity. If in any year the net tax capacity 
2.28 	of iron ore property, as defined in section 273.13, subdivision 31, in any district is less than 
2.29 	the net tax capacity of such property in the preceding year, the commissioner of revenue 
2.30 	shall redetermine for all purposes the adjusted net tax capacity of the preceding year 
2.31 	taking into account only the decrease in net tax capacity of iron ore property as defined in 
2.32 	section 273.13, subdivision 31. ~~If subdivision 7, clause (1), is applicable to the district, the~~ 
2.33 	~~decrease in iron ore property shall be applied to the adjusted net tax capacity as limited~~ 
2.34 	~~therein. In all other respects, the provisions of clause (1) shall apply.~~

3.1 	EFFECTIVE DATE. This section is effective beginning for taxes payable in 2015.

3.2 	Sec. 4. Minnesota Statutes 2012, section 163.06, subdivision 1, is amended to read:
3.3 		Subdivision 1.Levy. The county board of any county in which there are unorganized 
3.4 	townships may levy a tax for road and bridge purposes upon all the real and personal 
3.5 	property in such unorganized townships~~, exclusive of money and credits taxed under the~~ 
3.6 	~~provisions of chapter 285~~.

3.7 	Sec. 5. Minnesota Statutes 2012, section 270B.14, subdivision 3, is amended to read:
3.8 		Subd. 3.Administration of enterprise~~,~~and job opportunity~~, and biotechnology~~ 
3.9 	~~and health sciences industry~~ zone programs. The commissioner may disclose return 
3.10 	information relating to the taxes imposed by chapters 290 and 297A to the Department of 
3.11 	Employment and Economic Development or a municipality with a border city enterprise 
3.12 	zone as defined under section 469.166, but only as necessary to administer the funding 
3.13 	limitations under section 469.169, or to the Department of Employment and Economic 
3.14 	Development and appropriate officials from the local government units in which a 
3.15 	qualified business is located but only as necessary to enforce the job opportunity building 
3.16 	zone benefits under section 469.315~~, or biotechnology and health sciences industry zone~~ 
3.17 	~~benefits under section 469.336~~.

3.18 	Sec. 6. Minnesota Statutes 2012, section 272.027, subdivision 1, is amended to read:
3.19 		Subdivision 1.Electricity generated to produce goods and services. Personal 
3.20 	property used to generate electric power is exempt from property taxation if the electric 
3.21 	power is used to manufacture or produce goods, products, or services, other than electric 
3.22 	power, by the owner of the electric generation plant. ~~Except as provided in subdivisions 2~~ 
3.23 	~~and 3,~~ The exemption does not apply to property used to produce electric power for sale 
3.24 	to others and does not apply to real property. In determining the value subject to tax, 
3.25 	a proportionate share of the value of the generating facilities, equal to the proportion 
3.26 	that the power sold to others bears to the total generation of the plant, is subject to the 
3.27 	general property tax in the same manner as other property. Power generated in such a 
3.28 	plant and exchanged for an equivalent amount of power that is used for the manufacture or 
3.29 	production of goods, products, or services other than electric power by the owner of the 
3.30 	generating plant is considered to be used by the owner of the plant.

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

3.32 	Sec. 7. Minnesota Statutes 2012, section 272.029, subdivision 6, is amended to read:
4.1 		Subd. 6.Distribution of revenues. Revenues from the taxes imposed under 
4.2 	subdivision 5 must be part of the settlement between the county treasurer and the county 
4.3 	auditor under section 276.09. The revenue must be distributed by the county auditor or the 
4.4 	county treasurer to local taxing jurisdictions in which the wind energy conversion system 
4.5 	is located as follows: ~~beginning with distributions in 2010,~~ 80 percent to counties~~;~~ and 20 
4.6 	percent to cities and townships~~; and for distributions occurring in 2006 to 2009, 80 percent~~ 
4.7 	~~to counties; 14 percent to cities and townships; and six percent to school districts~~.

4.8 	Sec. 8. Minnesota Statutes 2013 Supplement, section 273.032, is amended to read:
4.9 	273.032 MARKET VALUE DEFINITION.
4.10 	(a) Unless otherwise provided, for the purpose of determining any property tax 
4.11 	levy limitation based on market value or any limit on net debt, the issuance of bonds, 
4.12 	certificates of indebtedness, or capital notes based on market value, any qualification to 
4.13 	receive state aid based on market value, or any state aid amount based on market value, 
4.14 	the terms "market value," "estimated market value," and "market valuation," whether 
4.15 	equalized or unequalized, mean the estimated market value of taxable property within the 
4.16 	local unit of government before any of the following or similar adjustments for:
4.17 	(1) the market value exclusions under:
4.18 	(i) section 273.11, subdivisions 14a and 14c (vacant platted land);
4.19 	(ii) section 273.11, subdivision 16 (certain improvements to homestead property);
4.20 	(iii) section 273.11, subdivisions 19 and 20 (certain improvements to business 
4.21 	properties);
4.22 	(iv) section 273.11, subdivision 21 (homestead property damaged by mold);
4.23 	(v) section 273.11, subdivision 22 (qualifying lead hazardous reduction projects);
4.24 	(vi) section 273.13, subdivision 34 (homestead of a disabled veteran or family 
4.25 	caregiver);
4.26 	(vii) section 273.13, subdivision 35 (homestead market value exclusion); or
4.27 	(2) the deferment of value under:
4.28 	(i) the Minnesota Agricultural Property Tax Law, section 273.111;
4.29 	~~(ii) the Aggregate Resource Preservation Law, section 273.1115;~~
4.30 	~~(iii)~~(ii) the Minnesota Open Space Property Tax Law, section 273.112;
4.31 	~~(iv)~~ (iii) the rural preserves property tax program, section 273.114; or
4.32 	~~(v)~~ (iv) the Metropolitan Agricultural Preserves Act, section 473H.10; or
4.33 	(3) the adjustments to tax capacity for:
4.34 	(i) tax increment financing under sections 469.174 to 469.1794;
4.35 	(ii) fiscal disparities under chapter 276A or 473F; or
5.1 	(iii) powerline credit under section 273.425.
5.2 	(b) Estimated market value under paragraph (a) also includes the market value 
5.3 	of tax-exempt property if the applicable law specifically provides that the limitation, 
5.4 	qualification, or aid calculation includes tax-exempt property.
5.5 	(c) Unless otherwise provided, "market value," "estimated market value," and 
5.6 	"market valuation" for purposes of property tax levy limitations and calculation of state 
5.7 	aid, refer to the estimated market value for the previous assessment year and for purposes 
5.8 	of limits on net debt, the issuance of bonds, certificates of indebtedness, or capital notes 
5.9 	refer to the estimated market value as last finally equalized.
5.10 	(d) For purposes of a provision of a home rule charter or of any special law that is not 
5.11 	codified in the statutes and that imposes a levy limitation based on market value or any limit 
5.12 	on debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market 
5.13 	value, the terms "market value," "taxable market value," and "market valuation," whether 
5.14 	equalized or unequalized, mean "estimated market value" as defined in paragraph (a).

5.15 	Sec. 9. Minnesota Statutes 2013 Supplement, section 273.13, subdivision 23, is 
5.16 	amended to read:
5.17 		Subd. 23.Class 2. (a) An agricultural homestead consists of class 2a agricultural 
5.18 	land that is homesteaded, along with any class 2b rural vacant land that is contiguous to 
5.19 	the class 2a land under the same ownership. The market value of the house and garage 
5.20 	and immediately surrounding one acre of land has the same class rates as class 1a or 1b 
5.21 	property under subdivision 22. The value of the remaining land including improvements 
5.22 	up to the first tier valuation limit of agricultural homestead property has a net class rate 
5.23 	of 0.5 percent of market value. The remaining property over the first tier has a class rate 
5.24 	of one percent of market value. For purposes of this subdivision, the "first tier valuation 
5.25 	limit of agricultural homestead property" and "first tier" means the limit certified under 
5.26 	section 273.11, subdivision 23.
5.27 	(b) Class 2a agricultural land consists of parcels of property, or portions thereof, that 
5.28 	are agricultural land and buildings. Class 2a property has a net class rate of one percent of 
5.29 	market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a 
5.30 	property must also include any property that would otherwise be classified as 2b, but is 
5.31 	interspersed with class 2a property, including but not limited to sloughs, wooded wind 
5.32 	shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback requirement, 
5.33 	and other similar land that is impractical for the assessor to value separately from the rest of 
5.34 	the property or that is unlikely to be able to be sold separately from the rest of the property.
6.1 	An assessor may classify the part of a parcel described in this subdivision that is used 
6.2 	for agricultural purposes as class 2a and the remainder in the class appropriate to its use.
6.3 	(c) Class 2b rural vacant land consists of parcels of property, or portions thereof, 
6.4 	that are unplatted real estate, rural in character and not used for agricultural purposes, 
6.5 	including land used for growing trees for timber, lumber, and wood and wood products, 
6.6 	that is not improved with a structure. The presence of a minor, ancillary nonresidential 
6.7 	structure as defined by the commissioner of revenue does not disqualify the property from 
6.8 	classification under this paragraph. Any parcel of 20 acres or more improved with a 
6.9 	structure that is not a minor, ancillary nonresidential structure must be split-classified, and 
6.10 	ten acres must be assigned to the split parcel containing the structure. Class 2b property 
6.11 	has a net class rate of one percent of market value unless it is part of an agricultural 
6.12 	homestead under paragraph (a), or qualifies as class 2c under paragraph (d).
6.13 	(d) Class 2c managed forest land consists of no less than 20 and no more than 1,920 
6.14 	acres statewide per taxpayer that is being managed under a forest management plan that 
6.15 	meets the requirements of chapter 290C, but is not enrolled in the sustainable forest 
6.16 	resource management incentive program. It has a class rate of .65 percent, provided that 
6.17 	the owner of the property must apply to the assessor in order for the property to initially 
6.18 	qualify for the reduced rate and provide the information required by the assessor to verify 
6.19 	that the property qualifies for the reduced rate. If the assessor receives the application 
6.20 	and information before May 1 in an assessment year, the property qualifies beginning 
6.21 	with that assessment year. If the assessor receives the application and information after 
6.22 	April 30 in an assessment year, the property may not qualify until the next assessment 
6.23 	year. The commissioner of natural resources must concur that the land is qualified. The 
6.24 	commissioner of natural resources shall annually provide county assessors verification 
6.25 	information on a timely basis. The presence of a minor, ancillary nonresidential structure 
6.26 	as defined by the commissioner of revenue does not disqualify the property from 
6.27 	classification under this paragraph.
6.28 	(e) Agricultural land as used in this section means:
6.29 	(1) contiguous acreage of ten acres or more, used during the preceding year for 
6.30 	agricultural purposes; or
6.31 	(2) contiguous acreage used during the preceding year for an intensive livestock or 
6.32 	poultry confinement operation, provided that land used only for pasturing or grazing 
6.33 	does not qualify under this clause.
6.34 	"Agricultural purposes" as used in this section means the raising, cultivation, drying, 
6.35 	or storage of agricultural products for sale, or the storage of machinery or equipment 
6.36 	used in support of agricultural production by the same farm entity. For a property to be 
7.1 	classified as agricultural based only on the drying or storage of agricultural products, 
7.2 	the products being dried or stored must have been produced by the same farm entity as 
7.3 	the entity operating the drying or storage facility. "Agricultural purposes" also includes 
7.4 	enrollment in the Reinvest in Minnesota program under sections 103F.501 to 103F.535
7.5 	or the federal Conservation Reserve Program as contained in Public Law 99-198 or a 
7.6 	similar state or federal conservation program if the property was classified as agricultural 
7.7 	(i) under this subdivision for taxes payable in 2003 because of its enrollment in a 
7.8 	qualifying program and the land remains enrolled or (ii) in the year prior to its enrollment. 
7.9 	Agricultural classification shall not be based upon the market value of any residential 
7.10 	structures on the parcel or contiguous parcels under the same ownership.
7.11 	"Contiguous acreage," for purposes of this paragraph, means all of, or a contiguous 
7.12 	portion of, a tax parcel as described in section 272.193, or all of, or a contiguous portion 
7.13 	of, a set of contiguous tax parcels under that section that are owned by the same person.
7.14 	(f) Agricultural land under this section also includes:
7.15 	(1) contiguous acreage that is less than ten acres in size and exclusively used in the 
7.16 	preceding year for raising or cultivating agricultural products; or
7.17 	(2) contiguous acreage that contains a residence and is less than 11 acres in size, if 
7.18 	the contiguous acreage exclusive of the house, garage, and surrounding one acre of land 
7.19 	was used in the preceding year for one or more of the following three uses:
7.20 	(i) for an intensive grain drying or storage operation, or for intensive machinery or 
7.21 	equipment storage activities used to support agricultural activities on other parcels of 
7.22 	property operated by the same farming entity;
7.23 	(ii) as a nursery, provided that only those acres used intensively to produce nursery 
7.24 	stock are considered agricultural land; or
7.25 	(iii) for intensive market farming; for purposes of this paragraph, "market farming" 
7.26 	means the cultivation of one or more fruits or vegetables or production of animal or other 
7.27 	agricultural products for sale to local markets by the farmer or an organization with which 
7.28 	the farmer is affiliated.
7.29 	"Contiguous acreage," for purposes of this paragraph, means all of a tax parcel as 
7.30 	described in section 272.193, or all of a set of contiguous tax parcels under that section 
7.31 	that are owned by the same person.
7.32 	(g) Land shall be classified as agricultural even if all or a portion of the agricultural 
7.33 	use of that property is the leasing to, or use by another person for agricultural purposes.
7.34 	Classification under this subdivision is not determinative for qualifying under 
7.35 	section 273.111.
8.1 	(h) The property classification under this section supersedes, for property tax 
8.2 	purposes only, any locally administered agricultural policies or land use restrictions that 
8.3 	define minimum or maximum farm acreage.
8.4 	(i) The term "agricultural products" as used in this subdivision includes production 
8.5 	for sale of:
8.6 	(1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing 
8.7 	animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, 
8.8 	bees, and apiary products by the owner;
8.9 	(2) fish bred for sale and consumption if the fish breeding occurs on land zoned 
8.10 	for agricultural use;
8.11 	(3) the commercial boarding of horses, which may include related horse training and 
8.12 	riding instruction, if the boarding is done on property that is also used for raising pasture 
8.13 	to graze horses or raising or cultivating other agricultural products as defined in clause (1);
8.14 	(4) property which is owned and operated by nonprofit organizations used for 
8.15 	equestrian activities, excluding racing;
8.16 	(5) game birds and waterfowl bred and raised (i) on a game farm licensed under 
8.17 	section 97A.105, provided that the annual licensing report to the Department of Natural 
8.18 	Resources, which must be submitted annually by March 30 to the assessor, indicates 
8.19 	that at least 500 birds were raised or used for breeding stock on the property during the 
8.20 	preceding year and that the owner provides a copy of the owner's most recent schedule F; 
8.21 	or (ii) for use on a shooting preserve licensed under section 97A.115;
8.22 	(6) insects primarily bred to be used as food for animals;
8.23 	(7) trees, grown for sale as a crop, including short rotation woody crops, and not 
8.24 	sold for timber, lumber, wood, or wood products; and
8.25 	(8) maple syrup taken from trees grown by a person licensed by the Minnesota 
8.26 	Department of Agriculture under chapter 28A as a food processor.
8.27 	(j) If a parcel used for agricultural purposes is also used for commercial or industrial 
8.28 	purposes, including but not limited to:
8.29 	(1) wholesale and retail sales;
8.30 	(2) processing of raw agricultural products or other goods;
8.31 	(3) warehousing or storage of processed goods; and
8.32 	(4) office facilities for the support of the activities enumerated in clauses (1), (2), 
8.33 	and (3),
8.34 	the assessor shall classify the part of the parcel used for agricultural purposes as class 
8.35 	1b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its 
8.36 	use. The grading, sorting, and packaging of raw agricultural products for first sale is 
9.1 	considered an agricultural purpose. A greenhouse or other building where horticultural 
9.2 	or nursery products are grown that is also used for the conduct of retail sales must be 
9.3 	classified as agricultural if it is primarily used for the growing of horticultural or nursery 
9.4 	products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of 
9.5 	those products. Use of a greenhouse or building only for the display of already grown 
9.6 	horticultural or nursery products does not qualify as an agricultural purpose.
9.7 	(k) The assessor shall determine and list separately on the records the market value 
9.8 	of the homestead dwelling and the one acre of land on which that dwelling is located. If 
9.9 	any farm buildings or structures are located on this homesteaded acre of land, their market 
9.10 	value shall not be included in this separate determination.
9.11 	(l) Class 2d airport landing area consists of a landing area or public access area of 
9.12 	a privately owned public use airport. It has a class rate of one percent of market value. 
9.13 	To qualify for classification under this paragraph, a privately owned public use airport 
9.14 	must be licensed as a public airport under section 360.018. For purposes of this paragraph, 
9.15 	"landing area" means that part of a privately owned public use airport properly cleared, 
9.16 	regularly maintained, and made available to the public for use by aircraft and includes 
9.17 	runways, taxiways, aprons, and sites upon which are situated landing or navigational aids. 
9.18 	A landing area also includes land underlying both the primary surface and the approach 
9.19 	surfaces that comply with all of the following:
9.20 	(i) the land is properly cleared and regularly maintained for the primary purposes of 
9.21 	the landing, taking off, and taxiing of aircraft; but that portion of the land that contains 
9.22 	facilities for servicing, repair, or maintenance of aircraft is not included as a landing area;
9.23 	(ii) the land is part of the airport property; and
9.24 	(iii) the land is not used for commercial or residential purposes.
9.25 	The land contained in a landing area under this paragraph must be described and certified 
9.26 	by the commissioner of transportation. The certification is effective until it is modified, 
9.27 	or until the airport or landing area no longer meets the requirements of this paragraph. 
9.28 	For purposes of this paragraph, "public access area" means property used as an aircraft 
9.29 	parking ramp, apron, or storage hangar, or an arrival and departure building in connection 
9.30 	with the airport.
9.31 	~~(m) Class 2e consists of land with a commercial aggregate deposit that is not actively~~ 
9.32 	~~being mined and is not otherwise classified as class 2a or 2b, provided that the land is not~~ 
9.33 	~~located in a county that has elected to opt-out of the aggregate preservation program as~~ 
9.34 	~~provided in section 273.1115, subdivision 6. It has a class rate of one percent of market~~ 
9.35 	~~value. To qualify for classification under this paragraph, the property must be at least~~ 
10.1 	~~ten contiguous acres in size and the owner of the property must record with the county~~ 
10.2 	~~recorder of the county in which the property is located an affidavit containing:~~
10.3 	~~(1) a legal description of the property;~~
10.4 	~~(2) a disclosure that the property contains a commercial aggregate deposit that is not~~ 
10.5 	~~actively being mined but is present on the entire parcel enrolled;~~
10.6 	~~(3) documentation that the conditional use under the county or local zoning~~ 
10.7 	~~ordinance of this property is for mining; and~~
10.8 	~~(4) documentation that a permit has been issued by the local unit of government~~ 
10.9 	~~or the mining activity is allowed under local ordinance. The disclosure must include a~~ 
10.10 	~~statement from a registered professional geologist, engineer, or soil scientist delineating~~ 
10.11 	~~the deposit and certifying that it is a commercial aggregate deposit.~~
10.12 	~~For purposes of this section and section 273.1115, "commercial aggregate deposit"~~ 
10.13 	~~means a deposit that will yield crushed stone or sand and gravel that is suitable for use~~ 
10.14 	~~as a construction aggregate; and "actively mined" means the removal of top soil and~~ 
10.15 	~~overburden in preparation for excavation or excavation of a commercial deposit.~~
10.16 	~~(n) When any portion of the property under this subdivision or subdivision 22 begins~~ 
10.17 	~~to be actively mined, the owner must file a supplemental affidavit within 60 days from~~ 
10.18 	~~the day any aggregate is removed stating the number of acres of the property that is~~ 
10.19 	~~actively being mined. The acres actively being mined must be (1) valued and classified~~ 
10.20 	~~under subdivision 24 in the next subsequent assessment year, and (2) removed from the~~ 
10.21 	~~aggregate resource preservation property tax program under section 273.1115, if the~~ 
10.22 	~~land was enrolled in that program. Copies of the original affidavit and all supplemental~~ 
10.23 	~~affidavits must be filed with the county assessor, the local zoning administrator, and the~~ 
10.24 	~~Department of Natural Resources, Division of Land and Minerals. A supplemental~~ 
10.25 	~~affidavit must be filed each time a subsequent portion of the property is actively mined,~~ 
10.26 	~~provided that the minimum acreage change is five acres, even if the actual mining activity~~ 
10.27 	~~constitutes less than five acres.~~
10.28 	~~(o)~~(m) The definitions prescribed by the commissioner under paragraphs (c) and 
10.29 	(d) are not rules and are exempt from the rulemaking provisions of chapter 14, and the 
10.30 	provisions in section 14.386 concerning exempt rules do not apply.

10.31 	EFFECTIVE DATE. This section is effective beginning for taxes payable in 2015.

10.32 	Sec. 10. Minnesota Statutes 2013 Supplement, section 273.1398, subdivision 3, 
10.33 	is amended to read:
10.34 		Subd. 3.Disparity reduction aid.  The amount of disparity aid certified for each 
10.35 	taxing district within each unique taxing jurisdiction is the amount certified for taxes 
11.1 	payable in the prior year ~~shall be multiplied by the ratio of (1) the jurisdiction's tax~~ 
11.2 	~~capacity using the class rates for taxes payable in the year for which aid is being computed,~~ 
11.3 	~~to (2) its tax capacity using the class rates for taxes payable in the year prior to that for~~ 
11.4 	~~which aid is being computed, both based upon taxable market values for taxes payable in~~ 
11.5 	~~the year prior to that for which aid is being computed. If the commissioner determines~~ 
11.6 	~~that insufficient information is available to reasonably and timely calculate the numerator~~ 
11.7 	~~in this ratio for the first taxes payable year that a class rate change or new class rate is~~ 
11.8 	~~effective, the commissioner shall omit the effects of that class rate change or new class~~ 
11.9 	~~rate when calculating this ratio for aid payable in that taxes payable year. For aid payable~~ 
11.10 	~~in the year following a year for which such omission was made, the commissioner shall~~ 
11.11 	~~use in the denominator for the class that was changed or created, the tax capacity for taxes~~ 
11.12 	~~payable two years prior to that in which the aid is payable, based on taxable market values~~ 
11.13 	~~for taxes payable in the year prior to that for which aid is being computed~~.

11.14 	EFFECTIVE DATE. This section is effective beginning for taxes payable in 2015.

11.15 	Sec. 11. Minnesota Statutes 2013 Supplement, section 275.70, subdivision 5, is 
11.16 	amended to read:
11.17 		Subd. 5.Special levies. "Special levies" means those portions of ad valorem taxes 
11.18 	levied by a local governmental unit for the following purposes or in the following manner:
11.19 	(1) to pay the costs of the principal and interest on bonded indebtedness or to 
11.20 	reimburse for the amount of liquor store revenues used to pay the principal and interest 
11.21 	due on municipal liquor store bonds in the year preceding the year for which the levy 
11.22 	limit is calculated;
11.23 	(2) to pay the costs of principal and interest on certificates of indebtedness issued for 
11.24 	any corporate purpose except for the following:
11.25 	(i) tax anticipation or aid anticipation certificates of indebtedness;
11.26 	(ii) certificates of indebtedness issued under sections 298.28 and 298.282;
11.27 	(iii) certificates of indebtedness used to fund current expenses or to pay the costs of 
11.28 	extraordinary expenditures that result from a public emergency; or
11.29 	(iv) certificates of indebtedness used to fund an insufficiency in tax receipts or an 
11.30 	insufficiency in other revenue sources, provided that nothing in this subdivision limits the 
11.31 	special levy authorized under section 475.755;
11.32 	(3) to provide for the bonded indebtedness portion of payments made to another 
11.33 	political subdivision of the state of Minnesota;
12.1 	(4) to fund payments made to the Minnesota State Armory Building Commission 
12.2 	under section 193.145, subdivision 2, to retire the principal and interest on armory 
12.3 	construction bonds;
12.4 	(5) property taxes approved by voters which are levied against the referendum 
12.5 	market value as provided under section 275.61;
12.6 	(6) to fund matching requirements needed to qualify for federal or state grants or 
12.7 	programs to the extent that either (i) the matching requirement exceeds the matching 
12.8 	requirement in calendar year 2001, or (ii) it is a new matching requirement that did not 
12.9 	exist prior to 2002;
12.10 	(7) to pay the expenses reasonably and necessarily incurred in preparing for or 
12.11 	repairing the effects of natural disaster including the occurrence or threat of widespread 
12.12 	or severe damage, injury, or loss of life or property resulting from natural causes, in 
12.13 	accordance with standards formulated by the Emergency Services Division of the state 
12.14 	Department of Public Safety, as allowed by the commissioner of revenue under section 
12.15 	275.74, subdivision 2;
12.16 	(8) pay amounts required to correct an error in the levy certified to the county 
12.17 	auditor by a city or county in a levy year, but only to the extent that when added to the 
12.18 	preceding year's levy it is not in excess of an applicable statutory, special law or charter 
12.19 	limitation, or the limitation imposed on the governmental subdivision by sections 275.70 
12.20 	to 275.74 in the preceding levy year;
12.21 	(9) to pay an abatement under section 469.1815;
12.22 	~~(10) to pay any costs attributable to increases in the employer contribution rates under~~ 
12.23 	~~chapter 353, or locally administered pension plans, that are effective after June 30, 2001;~~
12.24 	~~(11)~~(10) to pay the operating or maintenance costs of a county jail as authorized 
12.25 	in section 641.01 or 641.262, or of a correctional facility as defined in section 241.021, 
12.26 	subdivision 1, paragraph (f), to the extent that the county can demonstrate to the 
12.27 	commissioner of revenue that the amount has been included in the county budget as 
12.28 	a direct result of a rule, minimum requirement, minimum standard, or directive of the 
12.29 	Department of Corrections, or to pay the operating or maintenance costs of a regional jail 
12.30 	as authorized in section 641.262. For purposes of this clause, a district court order is 
12.31 	not a rule, minimum requirement, minimum standard, or directive of the Department of 
12.32 	Corrections. If the county utilizes this special levy, except to pay operating or maintenance 
12.33 	costs of a new regional jail facility under sections 641.262 to 641.264 which will not 
12.34 	replace an existing jail facility, any amount levied by the county in the previous levy year 
12.35 	for the purposes specified under this clause and included in the county's previous year's 
12.36 	levy limitation computed under section 275.71, shall be deducted from the levy limit 
13.1 	base under section 275.71, subdivision 2, when determining the county's current year 
13.2 	levy limitation. The county shall provide the necessary information to the commissioner 
13.3 	of revenue for making this determination;
13.4 	~~(12) to pay for operation of a lake improvement district, as authorized under section~~ 
13.5 	~~103B.555. If the county utilizes this special levy, any amount levied by the county in the~~ 
13.6 	~~previous levy year for the purposes specified under this clause and included in the county's~~ 
13.7 	~~previous year's levy limitation computed under section 275.71 shall be deducted from~~ 
13.8 	~~the levy limit base under section 275.71, subdivision 2, when determining the county's~~ 
13.9 	~~current year levy limitation. The county shall provide the necessary information to the~~ 
13.10 	~~commissioner of revenue for making this determination;~~
13.11 	~~(13)~~ (11) to repay a state or federal loan used to fund the direct or indirect required 
13.12 	spending by the local government due to a state or federal transportation project or other 
13.13 	state or federal capital project. This authority may only be used if the project is not a 
13.14 	local government initiative;
13.15 	~~(14) to pay for court administration costs as required under section 273.1398,~~ 
13.16 	~~subdivision 4b, less the (i) county's share of transferred fines and fees collected by the~~ 
13.17 	~~district courts in the county for calendar year 2001 and (ii) the aid amount certified to be~~ 
13.18 	~~paid to the county in 2004 under section 273.1398, subdivision 4c; however, for taxes~~ 
13.19 	~~levied to pay for these costs in the year in which the court financing is transferred to the~~ 
13.20 	~~state, the amount under this clause is limited to the amount of aid the county is certified to~~ 
13.21 	~~receive under section 273.1398, subdivision 4a;~~
13.22 	~~(15)~~ (12) to fund a firefighters relief association as required under Laws 2013, 
13.23 	chapter 111, article 5, sections 31 to 42, to the extent that the required amount exceeds the 
13.24 	amount levied for this purpose in ~~2001~~ the previous year;
13.25 	~~(16)~~ (13) for purposes of a storm sewer improvement district under section 444.20;
13.26 	~~(17) to pay for the maintenance and support of a city or county society for the~~ 
13.27 	~~prevention of cruelty to animals under section 343.11, but not to exceed in any year~~ 
13.28 	~~$4,800 or the sum of $1 per capita based on the county's or city's population as of the most~~ 
13.29 	~~recent federal census, whichever is greater. If the city or county uses this special levy, any~~ 
13.30 	~~amount levied by the city or county in the previous levy year for the purposes specified~~ 
13.31 	~~in this clause and included in the city's or county's previous year's levy limit computed~~ 
13.32 	~~under section 275.71, must be deducted from the levy limit base under section 275.71,~~ 
13.33 	~~subdivision 2, in determining the city's or county's current year levy limit;~~
13.34 	~~(18)~~ (14) for counties, to pay for the increase in their share of health and human 
13.35 	service costs caused by reductions in federal health and human services grants effective 
13.36 	after September 30, 2007;
14.1 	~~(19)~~ (15) for a city, for the costs reasonably and necessarily incurred for securing, 
14.2 	maintaining, or demolishing foreclosed or abandoned residential properties, as allowed by 
14.3 	the commissioner of revenue under section 275.74, subdivision 2. A city must have either 
14.4 	(i) a foreclosure rate of at least 1.4 percent in 2007, or (ii) a foreclosure rate in 2007 in 
14.5 	the city or in a zip code area of the city that is at least 50 percent higher than the average 
14.6 	foreclosure rate in the metropolitan area, as defined in section 473.121, subdivision 2, 
14.7 	to use this special levy. For purposes of this paragraph, "foreclosure rate" means the 
14.8 	number of foreclosures, as indicated by sheriff sales records, divided by the number of 
14.9 	households in the city in 2007;
14.10 	~~(20) for a city, for the unreimbursed costs of redeployed traffic-control agents and~~ 
14.11 	~~lost traffic citation revenue due to the collapse of the Interstate 35W bridge, as certified~~ 
14.12 	~~to the Federal Highway Administration;~~
14.13 	~~(21)~~ (16) to pay costs attributable to wages and benefits for sheriff, police, and fire 
14.14 	personnel. If a local governmental unit did not use this special levy in the previous year its 
14.15 	levy limit base under section 275.71 shall be reduced by the amount equal to the amount it 
14.16 	levied for the purposes specified in this clause in the previous year;
14.17 	~~(22)~~ (17) an amount equal to any reductions in the certified aids or credit 
14.18 	reimbursements payable under sections 477A.011 to 477A.014, and section 273.1384, 
14.19 	due to unallotment under section 16A.152 or reductions under another provision of law. 
14.20 	The amount of the levy allowed under this clause for each year is limited to the amount 
14.21 	unallotted or reduced from the aids and credit reimbursements certified for payment in the 
14.22 	year following the calendar year in which the tax levy is certified unless the unallotment 
14.23 	or reduction amount is not known by September 1 of the levy certification year, and 
14.24 	the local government has not adjusted its levy under section 275.065, subdivision 6, or 
14.25 	275.07, subdivision 6, in which case that unallotment or reduction amount may be levied 
14.26 	in the following year;
14.27 	~~(23)~~ (18) to pay for the difference between one-half of the costs of confining sex 
14.28 	offenders undergoing the civil commitment process and any state payments for this 
14.29 	purpose pursuant to section 253D.12; and
14.30 	~~(24)~~ (19) for a county to pay the costs of the first year of maintaining and operating 
14.31 	a new facility or new expansion, either of which contains courts, corrections, dispatch, 
14.32 	criminal investigation labs, or other public safety facilities and for which all or a portion 
14.33 	of the funding for the site acquisition, building design, site preparation, construction, and 
14.34 	related equipment was issued or authorized prior to the imposition of levy limits ~~in 2008~~. 
14.35 	The levy limit base shall then be increased by an amount equal to the new facility's first 
14.36 	full year's operating costs as described in this clause~~; and~~.
15.1 	~~(25) for the estimated amount of reduction to market value credit reimbursements~~ 
15.2 	~~under section 273.1384 for credits payable in the year in which the levy is payable.~~

15.3 	Sec. 12. Minnesota Statutes 2012, section 279.03, subdivision 1, is amended to read:
15.4 		Subdivision 1.~~Rate~~ Interest calculation. ~~The rate of interest on delinquent~~ 
15.5 	~~property taxes levied in 1979 and prior years is fixed at six percent per year until January~~ 
15.6 	~~1, 1983. Thereafter interest is payable at the rate determined pursuant to section 549.09.~~ 
15.7 	~~The rate of interest on delinquent property taxes levied in 1980 and subsequent years is~~ 
15.8 	~~the rate determined pursuant to section 549.09. All provisions of law except section~~ 
15.9 	~~549.09 providing for the calculation of interest at any different rate on delinquent taxes in~~ 
15.10 	~~any notice or proceeding in connection with the payment, collection, sale, or assignment~~ 
15.11 	~~of delinquent taxes, or redemption from such sale or assignment are hereby amended~~ 
15.12 	~~to correspond herewith.~~ Section 549.09~~shall continue in force~~ applies with respect to 
15.13 	determining the interest on judgments arising out of petitions for review filed pursuant to 
15.14 	chapter 278 ~~irrespective of the levy year~~.
15.15 	~~For property taxes levied in 1980 and prior years, interest is to be calculated at~~ 
15.16 	~~simple interest from the second Monday in May following the year in which the taxes~~ 
15.17 	~~become due until the time that the taxes and penalties are paid, computed on the amount~~ 
15.18 	~~of unpaid taxes, penalties and costs. For property taxes levied in 1981 and subsequent~~ 
15.19 	~~years,~~ Interest shall commence on the first day of January following the year in which the 
15.20 	taxes become due, but the county treasurer need not calculate interest on unpaid taxes and 
15.21 	penalties on the tax list returned to the county auditor pursuant to section 279.01.
15.22 	If interest is payable for a portion of a year, the interest is calculated only for the 
15.23 	months that the taxes or penalties remain unpaid, and for this purpose a portion of a month 
15.24 	is deemed to be a whole month.

15.25 	Sec. 13. Minnesota Statutes 2012, section 279.03, subdivision 1a, is amended to read:
15.26 		Subd. 1a.Rate ~~after December 31, 1990~~. (a) Except as provided in paragraph (b), 
15.27 	interest on delinquent property taxes, penalties, and costs unpaid ~~on or after January 1,~~ 
15.28 	~~1991, shall be~~ is payable at the per annum rate determined in section 270C.40, subdivision 
15.29 	5. If the rate so determined is less than ten percent, the rate of interest ~~shall be~~ is ten 
15.30 	percent. The maximum per annum rate ~~shall be~~ is 14 percent if the rate specified under 
15.31 	section 270C.40, subdivision 5, exceeds 14 percent. The rate ~~shall be~~ is subject to change 
15.32 	on January 1 of each year.
15.33 	(b) If a person is the owner of one or more parcels of property on which taxes are 
15.34 	delinquent, and the delinquent taxes are more than 25 percent of the prior year's school 
16.1 	district levy, interest on the delinquent property taxes, penalties, and costs unpaid ~~after~~ 
16.2 	~~January 1, 1992, shall be~~ is payable at twice the rate determined under paragraph (a) for 
16.3 	the year.

16.4 	Sec. 14. Minnesota Statutes 2012, section 279.03, subdivision 2, is amended to read:
16.5 		Subd. 2.Composite judgment. Amounts included in composite judgments 
16.6 	authorized by section 279.37, subdivision 1, and confessed ~~on or after July 1, 1982, are~~ 
16.7 	~~subject to interest at the rate determined pursuant to section 549.09. Amounts confessed~~
16.8 	 under this authority ~~after December 31, 1990,~~ are subject to interest at the rate calculated 
16.9 	under subdivision 1a. During each calendar year, interest ~~shall accrue~~ accrues on the 
16.10 	unpaid balance of the composite judgment from the time it is confessed until it is paid. 
16.11 	The rate of interest is subject to change each year in the same manner ~~that section 549.09~~
16.12 	 ~~or~~ as provided in subdivision 1a~~, whichever is applicable, for rate changes. Interest on the~~ 
16.13 	~~unpaid contract balance on judgments confessed before July 1, 1982, is payable at the rate~~ 
16.14 	~~applicable to the judgment at the time that it was confessed~~.

16.15 	Sec. 15. Minnesota Statutes 2013 Supplement, section 279.37, subdivision 2, is 
16.16 	amended to read:
16.17 		Subd. 2.Installment payments. The owner of any such parcel, or any person to 
16.18 	whom the right to pay taxes has been given by statute, mortgage, or other agreement, may 
16.19 	make and file with the county auditor of the county in which the parcel is located a written 
16.20 	offer to pay the current taxes each year before they become delinquent, or to contest the 
16.21 	taxes under ~~Minnesota Statutes 1941, sections 278.01 to 278.13~~ chapter 278, and agree 
16.22 	to confess judgment for the amount provided, as determined by the county auditor. By 
16.23 	filing the offer, the owner waives all irregularities in connection with the tax proceedings 
16.24 	affecting the parcel and any defense or objection which the owner may have to the 
16.25 	proceedings, and also waives the requirements of any notice of default in the payment of 
16.26 	any installment or interest to become due pursuant to the composite judgment to be so 
16.27 	entered. Unless the property is subject to subdivision 1a, with the offer, the owner shall (i) 
16.28 	tender one-tenth of the amount of the delinquent taxes, costs, penalty, and interest, and 
16.29 	(ii) tender all current year taxes and penalty due at the time the confession of judgment is 
16.30 	entered. In the offer, the owner shall agree to pay the balance in nine equal installments, 
16.31 	with interest as provided in section 279.03, payable annually on installments remaining 
16.32 	unpaid from time to time, on or before December 31 of each year following the year in 
16.33 	which judgment was confessed. The offer must be substantially as follows:
17.1 	"To the court administrator of the district court of ........... county, I, ....................., 
17.2 	am the owner of the following described parcel of real estate located in .................... 
17.3 	county, Minnesota:
17.4 	.............................. Upon that real estate there are delinquent taxes for the year ........., and 
17.5 	prior years, as follows: (here insert year of delinquency and the total amount of delinquent 
17.6 	taxes, costs, interest, and penalty). By signing this document I offer to confess judgment in 
17.7 	the sum of $...... and waive all irregularities in the tax proceedings affecting these taxes and 
17.8 	any defense or objection which I may have to them, and direct judgment to be entered for 
17.9 	the amount stated above, minus the sum of $............, to be paid with this document, which 
17.10 	is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and interest stated above. 
17.11 	I agree to pay the balance of the judgment in nine or four equal, annual installments, with 
17.12 	interest as provided in section 279.03, payable annually, on the installments remaining 
17.13 	unpaid. I agree to pay the installments and interest on or before December 31 of each year 
17.14 	following the year in which this judgment is confessed and current taxes each year before 
17.15 	they become delinquent, or within 30 days after the entry of final judgment in proceedings 
17.16 	to contest the taxes under ~~Minnesota Statutes, sections 278.01 to 278.13~~ chapter 278.
17.17 	Dated .............., ......."

17.18 	Sec. 16. Minnesota Statutes 2012, section 282.261, subdivision 2, is amended to read:
17.19 		Subd. 2.Interest rate. The unpaid balance on any repurchase contract approved 
17.20 	by the county board ~~on or after July 1, 1982,~~ is subject to interest at the rate determined 
17.21 	~~pursuant to section 549.09. Repurchase contracts approved after December 31, 1990, are~~ 
17.22 	~~subject to interest at the rate determined~~ in section 279.03, subdivision 1a. The interest 
17.23 	rate is subject to change each year on the unpaid balance in the manner provided for rate 
17.24 	changes in section ~~549.09 or~~279.03, subdivision 1a~~, whichever is applicable. Interest on~~ 
17.25 	~~the unpaid contract balance on repurchases approved before July 1, 1982, is payable at the~~ 
17.26 	~~rate applicable to the repurchase contract at the time that it was approved~~.

17.27 	Sec. 17. Minnesota Statutes 2012, section 290.01, subdivision 5, is amended to read:
17.28 		Subd. 5.Domestic corporation. The term "domestic" when applied to a corporation 
17.29 	means a corporation:
17.30 	(1) created or organized in the United States, or under the laws of the United 
17.31 	States or of any state, the District of Columbia, or any political subdivision of any of 
17.32 	the foregoing but not including the Commonwealth of Puerto Rico, or any possession 
17.33 	of the United States; or
18.1 	(2) which qualifies as a DISC, as defined in section 992(a) of the Internal Revenue 
18.2 	Code~~; or~~.
18.3 	~~(3) which qualifies as a FSC, as defined in section 922 of the Internal Revenue Code.~~

18.4 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
18.5 	December 31, 2013.

18.6 	Sec. 18. Minnesota Statutes 2012, section 290.01, subdivision 29, is amended to read:
18.7 		Subd. 29.Taxable income. The term "taxable income" means:
18.8 	(1) for individuals, estates, and trusts, the same as taxable net income;
18.9 	(2) for corporations, the taxable net income less
18.10 	(i) the net operating loss deduction under section 290.095;
18.11 	(ii) the dividends received deduction under section 290.21, subdivision 4; and
18.12 	(iii) the exemption for operating in a job opportunity building zone under section 
18.13 	469.317~~; and~~.
18.14 	~~(iv) the exemption for operating in a biotechnology and health sciences industry~~ 
18.15 	~~zone under section 469.337.~~

18.16 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
18.17 	December 31, 2013.

18.18 	Sec. 19. Minnesota Statutes 2013 Supplement, section 290.0921, subdivision 3, 
18.19 	is amended to read:
18.20 		Subd. 3.Alternative minimum taxable income. "Alternative minimum taxable 
18.21 	income" is Minnesota net income as defined in section 290.01, subdivision 19, and 
18.22 	includes the adjustments and tax preference items in sections 56, 57, 58, and 59(d), (e), 
18.23 	(f), and (h) of the Internal Revenue Code. If a corporation files a separate company 
18.24 	Minnesota tax return, the minimum tax must be computed on a separate company basis. 
18.25 	If a corporation is part of a tax group filing a unitary return, the minimum tax must be 
18.26 	computed on a unitary basis. The following adjustments must be made.
18.27 	(1) For purposes of the depreciation adjustments under section 56(a)(1) and 
18.28 	56(g)(4)(A) of the Internal Revenue Code, the basis for depreciable property placed in 
18.29 	service in a taxable year beginning before January 1, 1990, is the adjusted basis for federal 
18.30 	income tax purposes, including any modification made in a taxable year under section 
18.31 	290.01, subdivision 19e, or Minnesota Statutes 1986, section 290.09, subdivision 7, 
18.32 	paragraph (c).
19.1 	For taxable years beginning after December 31, 2000, the amount of any remaining 
19.2 	modification made under section 290.01, subdivision 19e, or Minnesota Statutes 1986, 
19.3 	section 290.09, subdivision 7, paragraph (c), not previously deducted is a depreciation 
19.4 	allowance in the first taxable year after December 31, 2000.
19.5 	(2) The portion of the depreciation deduction allowed for federal income tax 
19.6 	purposes under section 168(k) of the Internal Revenue Code that is required as an 
19.7 	addition under section 290.01, subdivision 19c, clause (12), is disallowed in determining 
19.8 	alternative minimum taxable income.
19.9 	(3) The subtraction for depreciation allowed under section 290.01, subdivision 19d, 
19.10 	clause (15), is allowed as a depreciation deduction in determining alternative minimum 
19.11 	taxable income.
19.12 	(4) The alternative tax net operating loss deduction under sections 56(a)(4) and 56(d) 
19.13 	of the Internal Revenue Code does not apply.
19.14 	(5) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the Internal 
19.15 	Revenue Code does not apply.
19.16 	(6) The tax preference for depletion under section 57(a)(1) of the Internal Revenue 
19.17 	Code does not apply.
19.18 	(7) The tax preference for intangible drilling costs under section 57(a)(2) of the 
19.19 	Internal Revenue Code must be calculated without regard to subparagraph (E) and the 
19.20 	subtraction under section 290.01, subdivision 19d, clause (4).
19.21 	(8) The tax preference for tax exempt interest under section 57(a)(5) of the Internal 
19.22 	Revenue Code does not apply.
19.23 	(9) The tax preference for charitable contributions of appreciated property under 
19.24 	section 57(a)(6) of the Internal Revenue Code does not apply.
19.25 	(10) For purposes of calculating the tax preference for accelerated depreciation or 
19.26 	amortization on certain property placed in service before January 1, 1987, under section 
19.27 	57(a)(7) of the Internal Revenue Code, the deduction allowable for the taxable year is the 
19.28 	deduction allowed under section 290.01, subdivision 19e.
19.29 	For taxable years beginning after December 31, 2000, the amount of any remaining 
19.30 	modification made under section 290.01, subdivision 19e, not previously deducted is a 
19.31 	depreciation or amortization allowance in the first taxable year after December 31, 2004.
19.32 	(11) For purposes of calculating the adjustment for adjusted current earnings in 
19.33 	section 56(g) of the Internal Revenue Code, the term "alternative minimum taxable 
19.34 	income" as it is used in section 56(g) of the Internal Revenue Code, means alternative 
19.35 	minimum taxable income as defined in this subdivision, determined without regard to the 
19.36 	adjustment for adjusted current earnings in section 56(g) of the Internal Revenue Code.
20.1 	(12) For purposes of determining the amount of adjusted current earnings under 
20.2 	section 56(g)(3) of the Internal Revenue Code, no adjustment shall be made under section 
20.3 	56(g)(4) of the Internal Revenue Code with respect to (i) the amount of foreign dividend 
20.4 	gross-up subtracted as provided in section 290.01, subdivision 19d, clause (1), or (ii) the 
20.5 	amount of refunds of income, excise, or franchise taxes subtracted as provided in section 
20.6 	290.01, subdivision 19d, clause (9).
20.7 	(13) Alternative minimum taxable income excludes the income from operating in a 
20.8 	job opportunity building zone as provided under section 469.317.
20.9 	~~(14) Alternative minimum taxable income excludes the income from operating in a~~ 
20.10 	~~biotechnology and health sciences industry zone as provided under section 469.337.~~
20.11 	Items of tax preference must not be reduced below zero as a result of the 
20.12 	modifications in this subdivision.

20.13 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
20.14 	December 31, 2013.

20.15 	Sec. 20. Minnesota Statutes 2012, section 290.0922, subdivision 3, is amended to read:
20.16 		Subd. 3.Definitions. (a) "Minnesota sales or receipts" means the total sales 
20.17 	apportioned to Minnesota pursuant to section 290.191, subdivision 5, the total receipts 
20.18 	attributed to Minnesota pursuant to section 290.191, subdivisions 6 to 8, and/or the 
20.19 	total sales or receipts apportioned or attributed to Minnesota pursuant to any other 
20.20 	apportionment formula applicable to the taxpayer.
20.21 	(b) "Minnesota property" means total Minnesota tangible property as provided in 
20.22 	section 290.191, subdivisions 9 to 11, any other tangible property located in Minnesota, 
20.23 	but does not include~~: (1)~~ the property of a qualified business as defined under section 
20.24 	469.310, subdivision 11, that is located in a job opportunity building zone designated 
20.25 	under section 469.314 ~~and (2) property of a qualified business located in a biotechnology~~ 
20.26 	~~and health sciences industry zone designated under section 469.334~~. Intangible property 
20.27 	shall not be included in Minnesota property for purposes of this section. Taxpayers who 
20.28 	do not utilize tangible property to apportion income shall nevertheless include Minnesota 
20.29 	property for purposes of this section. On a return for a short taxable year, the amount of 
20.30 	Minnesota property owned, as determined under section 290.191, shall be included in 
20.31 	Minnesota property based on a fraction in which the numerator is the number of days in 
20.32 	the short taxable year and the denominator is 365.
20.33 	(c) "Minnesota payrolls" means total Minnesota payrolls as provided in section 
20.34 	290.191, subdivision 12, but does not include~~: (1)~~ the job opportunity building zone payroll 
20.35 	under section 469.310, subdivision 8, of a qualified business as defined under section 
21.1 	469.310, subdivision 11~~, and (2) biotechnology and health sciences industry zone payrolls~~ 
21.2 	~~under section 469.330, subdivision 8~~. Taxpayers who do not utilize payrolls to apportion 
21.3 	income shall nevertheless include Minnesota payrolls for purposes of this section.

21.4 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
21.5 	December 31, 2013.

21.6 	Sec. 21. Minnesota Statutes 2012, section 290.191, subdivision 2, is amended to read:
21.7 		Subd. 2.Apportionment formula of general application. ~~(a)~~ Except for those 
21.8 	trades or businesses required to use a different formula under subdivision 3 or section 
21.9 	290.36, and for those trades or businesses that receive permission to use some other 
21.10 	method under section 290.20 or under subdivision 4, a trade or business required to 
21.11 	apportion its net income must apportion its income to this state on the basis of the 
21.12 	percentage ~~obtained by taking the sum of:~~
21.13 	~~(1) the percent for the sales factor under paragraph (b) of the percentage which~~
21.14 	 that the sales made within this state in connection with the trade or business during the 
21.15 	tax period are of the total sales wherever made in connection with the trade or business 
21.16 	during the tax period~~;~~.
21.17 	~~(2) the percent for the property factor under paragraph (b) of the percentage which~~ 
21.18 	~~the total tangible property used by the taxpayer in this state in connection with the trade or~~ 
21.19 	~~business during the tax period is of the total tangible property, wherever located, used by~~ 
21.20 	~~the taxpayer in connection with the trade or business during the tax period; and~~
21.21 	~~(3) the percent for the payroll factor under paragraph (b) of the percentage which the~~ 
21.22 	~~taxpayer's total payrolls paid or incurred in this state or paid in respect to labor performed in~~ 
21.23 	~~this state in connection with the trade or business during the tax period are of the taxpayer's~~ 
21.24 	~~total payrolls paid or incurred in connection with the trade or business during the tax period.~~
21.25 	~~(b) For purposes of paragraph (a) and subdivision 3, the following percentages apply~~ 
21.26 	~~for the taxable years specified:~~

21.27

21.28

~~Taxable years beginning~~ 
~~during calendar year~~

~~Sales factor~~ 
~~percent~~

~~Property factor~~ 
~~percent~~

~~Payroll factor~~
~~percent~~

21.29 | ~~2007~~ | | | ~~78~~ | | | ~~11~~ | | ~~11~~
21.30 | ~~2008~~ | | | ~~81~~ | | | ~~9.5~~ | | ~~9.5~~
21.31 | ~~2009~~ | | | ~~84~~ | | | ~~8~~ | | ~~8~~
21.32 | ~~2010~~ | | | ~~87~~ | | | ~~6.5~~ | | ~~6.5~~
21.33 | ~~2011~~ | | | ~~90~~ | | | ~~5~~ | | ~~5~~
21.34 | ~~2012~~ | | | ~~93~~ | | | ~~3.5~~ | | ~~3.5~~
21.35 | ~~2013~~ | | | ~~96~~ | | | ~~2~~ | | ~~2~~
21.36 | ~~2014 and later calendar years~~ | ~~100~~ | | | ~~0~~ | | ~~0~~

22.1 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
22.2 	December 31, 2013.

22.3 	Sec. 22. Minnesota Statutes 2012, section 290.191, subdivision 3, is amended to read:
22.4 		Subd. 3.Apportionment formula for financial institutions. Except for an 
22.5 	investment company required to apportion its income under section 290.36, a financial 
22.6 	institution that is required to apportion its net income must apportion its net income to this 
22.7 	state on the basis of the percentage ~~obtained by taking the sum of:~~
22.8 	~~(1) the percent for the sales factor under subdivision 2, paragraph (b), of the~~ 
22.9 	~~percentage which~~ that the receipts from within this state in connection with the trade or 
22.10 	business during the tax period are of the total receipts in connection with the trade or 
22.11 	business during the tax period, from wherever derived~~;~~.
22.12 	~~(2) the percent for the property factor under subdivision 2, paragraph (b), of the~~ 
22.13 	~~percentage which the sum of the total tangible property used by the taxpayer in this state~~ 
22.14 	~~and the intangible property owned by the taxpayer and attributed to this state in connection~~ 
22.15 	~~with the trade or business during the tax period is of the sum of the total tangible property,~~ 
22.16 	~~wherever located, used by the taxpayer and the intangible property owned by the taxpayer~~ 
22.17 	~~and attributed to all states in connection with the trade or business during the tax period; and~~
22.18 	~~(3) the percent for the payroll factor under subdivision 2, paragraph (b), of the~~ 
22.19 	~~percentage which the taxpayer's total payrolls paid or incurred in this state or paid in~~ 
22.20 	~~respect to labor performed in this state in connection with the trade or business during~~ 
22.21 	~~the tax period are of the taxpayer's total payrolls paid or incurred in connection with~~ 
22.22 	~~the trade or business during the tax period.~~

22.23 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
22.24 	December 31, 2013.

22.25 	Sec. 23. Minnesota Statutes 2013 Supplement, section 297A.75, subdivision 1, is 
22.26 	amended to read:
22.27 		Subdivision 1.Tax collected. The tax on the gross receipts from the sale of the 
22.28 	following exempt items must be imposed and collected as if the sale were taxable and the 
22.29 	rate under section 297A.62, subdivision 1, applied. The exempt items include:
22.30 	(1) building materials for an agricultural processing facility exempt under section 
22.31 	297A.71, subdivision 13;
22.32 	(2) building materials for mineral production facilities exempt under section 
22.33 	297A.71, subdivision 14;
22.34 	(3) building materials for correctional facilities under section 297A.71, subdivision 3;
23.1 	(4) building materials used in a residence for disabled veterans exempt under section 
23.2 	297A.71, subdivision 11;
23.3 	(5) elevators and building materials exempt under section 297A.71, subdivision 12;
23.4 	~~(6) building materials for the Long Lake Conservation Center exempt under section~~ 
23.5 	~~297A.71, subdivision 17;~~
23.6 	~~(7)~~ (6) materials and supplies for qualified low-income housing under section 
23.7 	297A.71, subdivision 23;
23.8 	~~(8)~~ (7) materials, supplies, and equipment for municipal electric utility facilities 
23.9 	under section 297A.71, subdivision 35;
23.10 	~~(9)~~ (8) equipment and materials used for the generation, transmission, and 
23.11 	distribution of electrical energy and an aerial camera package exempt under section 
23.12 	297A.68, subdivision 37;
23.13 	~~(10)~~ (9) commuter rail vehicle and repair parts under section 297A.70, subdivision 
23.14 	3, paragraph (a), clause (10);
23.15 	~~(11)~~ (10) materials, supplies, and equipment for construction or improvement of 
23.16 	projects and facilities under section 297A.71, subdivision 40;
23.17 	~~(12) materials, supplies, and equipment for construction or improvement of a meat~~ 
23.18 	~~processing facility exempt under section 297A.71, subdivision 41;~~
23.19 	~~(13)~~ (11) materials, supplies, and equipment for construction, improvement, or 
23.20 	expansion of:
23.21 	(i) an aerospace defense manufacturing facility exempt under section 297A.71, 
23.22 	subdivision 42;
23.23 	(ii) a biopharmaceutical manufacturing facility exempt under section 297A.71, 
23.24 	subdivision 45;
23.25 	(iii) a research and development facility exempt under section 297A.71, subdivision 
23.26 	46; and
23.27 	(iv) an industrial measurement manufacturing and controls facility exempt under 
23.28 	section 297A.71, subdivision 47;
23.29 	~~(14)~~ (12) enterprise information technology equipment and computer software for 
23.30 	use in a qualified data center exempt under section 297A.68, subdivision 42;
23.31 	~~(15)~~ (13) materials, supplies, and equipment for qualifying capital projects under 
23.32 	section 297A.71, subdivision 44;
23.33 	~~(16)~~ (14) items purchased for use in providing critical access dental services exempt 
23.34 	under section 297A.70, subdivision 7, paragraph (c); and
23.35 	~~(17)~~ (15) items and services purchased under a business subsidy agreement for use or 
23.36 	consumption primarily in greater Minnesota exempt under section 297A.68, subdivision 44.

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

24.2 	Sec. 24. Minnesota Statutes 2013 Supplement, section 297A.75, subdivision 2, is 
24.3 	amended to read:
24.4 		Subd. 2.Refund; eligible persons. Upon application on forms prescribed by the 
24.5 	commissioner, a refund equal to the tax paid on the gross receipts of the exempt items 
24.6 	must be paid to the applicant. Only the following persons may apply for the refund:
24.7 	(1) for subdivision 1, clauses (1), (2), and ~~(16)~~ (14), the applicant must be the 
24.8 	purchaser;
24.9 	(2) for subdivision 1, ~~clauses~~ clause (3) ~~and (6)~~, the applicant must be the 
24.10 	governmental subdivision;
24.11 	(3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits 
24.12 	provided in United States Code, title 38, chapter 21;
24.13 	(4) for subdivision 1, clause (5), the applicant must be the owner of the homestead 
24.14 	property;
24.15 	(5) for subdivision 1, clause ~~(7)~~ (6), the owner of the qualified low-income housing 
24.16 	project;
24.17 	(6) for subdivision 1, clause ~~(8)~~ (7), the applicant must be a municipal electric utility 
24.18 	or a joint venture of municipal electric utilities;
24.19 	(7) for subdivision 1, clauses ~~(9), (12), (13), (14)~~ (8), (11), (12), and ~~(17)~~ (15), 
24.20 	the owner of the qualifying business; and
24.21 	(8) for subdivision 1, clauses (10), (11), and (15), the applicant must be the 
24.22 	governmental entity that owns or contracts for the project or facility.

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

24.24 	Sec. 25. Minnesota Statutes 2013 Supplement, section 297A.75, subdivision 3, is 
24.25 	amended to read:
24.26 		Subd. 3.Application. (a) The application must include sufficient information 
24.27 	to permit the commissioner to verify the tax paid. If the tax was paid by a contractor, 
24.28 	subcontractor, or builder, under subdivision 1, clauses (3) to ~~(15)~~ (13), or ~~(17)~~ (15), the 
24.29 	contractor, subcontractor, or builder must furnish to the refund applicant a statement 
24.30 	including the cost of the exempt items and the taxes paid on the items unless otherwise 
24.31 	specifically provided by this subdivision. The provisions of sections 289A.40 and 
24.32 	289A.50 apply to refunds under this section.
24.33 	(b) An applicant may not file more than two applications per calendar year for 
24.34 	refunds for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.
25.1 	(c) Total refunds for purchases of items in section 297A.71, subdivision 40, must not 
25.2 	exceed $5,000,000 in fiscal years 2010 and 2011. Applications for refunds for purchases 
25.3 	of items in sections 297A.70, subdivision 3, paragraph (a), clause (11), and 297A.71, 
25.4 	subdivision 40, must not be filed until after June 30, 2009.

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

25.6 	Sec. 26. Minnesota Statutes 2012, section 297I.05, subdivision 14, is amended to read:
25.7 		Subd. 14.Life insurance. A tax is imposed on life insurance. The rate of tax equals 
25.8 	~~a percentage~~ 1.5 percent of gross premiums less return premiums on all direct business 
25.9 	received by the insurer or agents of the insurer in Minnesota for life insurance, in cash or 
25.10 	otherwise, during the year. ~~For premiums received after December 31, 2005, but before~~ 
25.11 	~~January 1, 2007, the rate of tax is 1.875 percent. For premiums received after December~~ 
25.12 	~~31, 2006, but before January 1, 2008, the rate of tax is 1.75 percent. For premiums~~ 
25.13 	~~received after December 31, 2007, but before January 1, 2009, the rate of tax is 1.625~~ 
25.14 	~~percent. For premiums received after December 31, 2008, the rate of tax is 1.5 percent.~~

25.15 	Sec. 27. Minnesota Statutes 2013 Supplement, section 298.223, subdivision 1, is 
25.16 	amended to read:
25.17 		Subdivision 1.Creation; purposes. A fund called the taconite environmental 
25.18 	protection fund is created for the purpose of reclaiming, restoring and enhancing those 
25.19 	areas of northeast Minnesota located within the taconite assistance area defined in section 
25.20 	273.1341, that are adversely affected by the environmentally damaging operations 
25.21 	involved in mining taconite and iron ore and producing iron ore concentrate and for the 
25.22 	purpose of promoting the economic development of northeast Minnesota. The taconite 
25.23 	environmental protection fund shall be used for the following purposes:
25.24 	(1) to initiate investigations into matters the Iron Range Resources and Rehabilitation 
25.25 	Board determines are in need of study and which will determine the environmental 
25.26 	problems requiring remedial action;
25.27 	(2) reclamation, restoration, or reforestation of mine lands not otherwise provided 
25.28 	for by state law;
25.29 	(3) local economic development projects but only if those projects are approved by 
25.30 	the board, and public works, including construction of sewer and water systems located 
25.31 	within the taconite assistance area defined in section 273.1341;
25.32 	(4) monitoring of mineral industry related health problems among mining 
25.33 	employees; and
25.34 	(5) local public works projects under section 298.227, paragraph (c)~~; and~~.
26.1 	~~(6) local public works projects as provided under this clause. The following amounts~~ 
26.2 	~~shall be distributed in 2009 based upon the taxable tonnage of production in 2008:~~
26.3 	~~(i) .4651 cent per ton to the city of Aurora for street repair and renovation;~~
26.4 	~~(ii) .4264 cent per ton to the city of Biwabik for street and utility infrastructure~~ 
26.5 	~~improvements to the south side industrial site;~~
26.6 	~~(iii) .6460 cent per ton to the city of Buhl for street repair;~~
26.7 	~~(iv) 1.0336 cents per ton to the city of Hoyt Lakes for public utility improvements;~~
26.8 	~~(v) 1.1628 cents per ton to the city of Eveleth for water and sewer infrastructure~~ 
26.9 	~~upgrades;~~
26.10 	~~(vi) 1.0336 cents per ton to the city of Gilbert for water and sewer infrastructure~~ 
26.11 	~~upgrades;~~
26.12 	~~(vii) .7752 cent per ton to the city of Mountain Iron for water and sewer infrastructure;~~
26.13 	~~(viii) 1.2920 cents per ton to the city of Virginia for utility upgrades and accessibility~~ 
26.14 	~~modifications for the miners' memorial;~~
26.15 	~~(ix) .6460 cent per ton to the town of White for Highway 135 road upgrades;~~
26.16 	~~(x) 1.9380 cents per ton to the city of Hibbing for public infrastructure projects;~~
26.17 	~~(xi) 1.1628 cents per ton to the city of Chisholm for water and sewer repair;~~
26.18 	~~(xii) .6460 cent per ton to the town of Balkan for community center repairs;~~
26.19 	~~(xiii) .9044 cent per ton to the city of Babbitt for city garage construction;~~
26.20 	~~(xiv) .5168 cent per ton to the city of Cook for public infrastructure projects;~~
26.21 	~~(xv) .5168 cent per ton to the city of Ely for reconstruction of 2nd Avenue West;~~
26.22 	~~(xvi) .6460 cent per ton to the city of Tower for water infrastructure upgrades;~~
26.23 	~~(xvii) .1292 cent per ton to the city of Orr for water infrastructure upgrades;~~
26.24 	~~(xviii) .1292 cent per ton to the city of Silver Bay for emergency cleanup;~~
26.25 	~~(xix) .3230 cent per ton to Lake County for trail construction;~~
26.26 	~~(xx) .1292 cent per ton to Cook County for construction of tennis courts in Grand~~ 
26.27 	~~Marais;~~
26.28 	~~(xxi) .3101 cent per ton to the city of Two Harbors for water infrastructure~~ 
26.29 	~~improvements;~~
26.30 	~~(xxii) .1938 cent per ton for land acquisition for phase one of Cook Airport project;~~
26.31 	~~(xxiii) 1.0336 cents per ton to the city of Coleraine for water and sewer~~ 
26.32 	~~improvements along Gayley Avenue;~~
26.33 	~~(xxiv) .3876 cent per ton to the city of Marble for construction of a city~~ 
26.34 	~~administration facility;~~
26.35 	~~(xxv) .1292 cent per ton to the city of Calumet for repairs at city hall and the~~ 
26.36 	~~community center;~~
27.1 	~~(xxvi) .6460 cent per ton to the city of Nashwauk for electrical infrastructure~~ 
27.2 	~~upgrades;~~
27.3 	~~(xxvii) 1.0336 cents per ton to the city of Keewatin for water and sewer upgrades~~ 
27.4 	~~along Depot Street;~~
27.5 	~~(xxviii) .2584 cent per ton to the city of Aitkin for water, sewer, street, and gutter~~ 
27.6 	~~improvements;~~
27.7 	~~(xxix) 1.1628 cents per ton to the city of Grand Rapids for water and sewer~~ 
27.8 	~~infrastructure upgrades at Pokegema Golf Course and Park Place;~~
27.9 	~~(xxx) .1809 cent per ton to the city of Grand Rapids for water and sewer upgrades~~ 
27.10 	~~for 1st Avenue from River Road to 3rd Street SE; and~~
27.11 	~~(xxxi) .9044 cent per ton to the city of Cohasset for upgrades to the railroad crossing~~ 
27.12 	~~at Highway 2 and County Road 62.~~

27.13 	Sec. 28. Minnesota Statutes 2012, section 298.293, is amended to read:
27.14 	298.293 EXPENDING FUNDS.
27.15 	The funds provided by section 298.28, subdivision 11, relating to the Douglas J. 
27.16 	Johnson economic protection trust fund, except money expended pursuant to ~~Laws 1982,~~ 
27.17 	~~Second Special Session, chapter 2, sections 8 to 14~~ sections 298.296 to 298.298, shall be 
27.18 	expended only in an amount that does not exceed the sum of the net interest, dividends, 
27.19 	and earnings arising from the investment of the trust for the preceding 12 calendar months 
27.20 	from the date of the authorization ~~plus, for fiscal year 1983, $10,000,000 from the corpus~~ 
27.21 	~~of the fund~~. The funds may be spent only in or for the benefit of the taconite assistance 
27.22 	area as defined in section 273.1341. If during any year the taconite property tax account 
27.23 	under sections 273.134 to 273.136 does not contain sufficient funds to pay the property 
27.24 	tax relief specified in ~~Laws 1977, chapter 423, article X, section 4~~ section 273.135, there 
27.25 	is appropriated from this trust fund to the relief account sufficient funds to pay the relief 
27.26 	specified in ~~Laws 1977, chapter 423, article X, section 4~~ section 273.135.

27.27 	Sec. 29. Minnesota Statutes 2012, section 298.75, subdivision 1, is amended to read:
27.28 		Subdivision 1.Definitions. Except as may otherwise be provided, the following 
27.29 	words, when used in this section, shall have the meanings herein ascribed to them.
27.30 	(a) "Aggregate material" means:
27.31 	(1) nonmetallic natural mineral aggregate including, but not limited to sand, silica 
27.32 	sand, gravel, crushed rock, limestone, granite, and borrow, but only if the borrow is 
27.33 	transported on a public road, street, or highway, provided that nonmetallic aggregate 
27.34 	material does not include dimension stone and dimension granite; and
28.1 	(2) taconite tailings, crushed rock, and architectural or dimension stone and dimension 
28.2 	granite removed from a taconite mine or the site of a previously operated taconite mine.
28.3 	Aggregate material must be measured or weighed after it has been extracted from 
28.4 	the pit, quarry, or deposit.
28.5 	(b) "Person" means any individual, firm, partnership, corporation, organization, 
28.6 	trustee, association, or other entity.
28.7 	(c) "Operator" means any person engaged in the business of removing aggregate 
28.8 	material from the surface or subsurface of the soil, for the purpose of sale, either directly 
28.9 	or indirectly, through the use of the aggregate material in a marketable product or service.
28.10 	(d) "Extraction site" means a pit, quarry, or deposit containing aggregate material 
28.11 	and any contiguous property to the pit, quarry, or deposit which is used by the operator for 
28.12 	stockpiling the aggregate material.
28.13 	(e) "Importer" means any person who buys aggregate material excavated from a 
28.14 	~~county not listed in paragraph (f) or another state~~ site on which the tax under this section is 
28.15 	not imposed and causes the aggregate material to be imported into a county in this state 
28.16 	which imposes a tax on aggregate material.
28.17 	(f) "County" means ~~the counties of Pope, Stearns, Benton, Sherburne, Carver, Scott,~~ 
28.18 	~~Dakota, Le Sueur, Kittson, Marshall, Pennington, Red Lake, Polk, Norman, Mahnomen,~~ 
28.19 	~~Clay, Becker, Carlton, St. Louis, Rock, Murray, Wilkin, Big Stone, Sibley, Hennepin,~~ 
28.20 	~~Washington, Chisago, and Ramsey. County also means~~ a county imposing the tax under 
28.21 	this section on December 31, 2014, or any other county whose board has voted after a 
28.22 	public hearing to impose the tax under this section and has notified the commissioner of 
28.23 	revenue of the imposition of the tax.
28.24 	(g) "Borrow" means granular borrow, consisting of durable particles of gravel and 
28.25 	sand, crushed quarry or mine rock, crushed gravel or stone, or any combination thereof, 
28.26 	the ratio of the portion passing the (#200) sieve divided by the portion passing the (1 inch) 
28.27 	sieve may not exceed 20 percent by mass.

28.28 	EFFECTIVE DATE. This section is effective January 1, 2015.

28.29 	Sec. 30. Minnesota Statutes 2012, section 298.75, is amended by adding a subdivision 
28.30 	to read:
28.31 		Subd. 12.Town authority. (a) A town located in a county in which a tax under 
28.32 	subdivision 2 is not imposed may impose the aggregate materials tax under this section.
28.33 	(b) For purposes of exercising the powers contained in this section, the "town" 
28.34 	is deemed to be the "county" and all the provisions of this section apply to the town, 
29.1 	except that all proceeds of the tax must be retained by the town and used for the purposes 
29.2 	described in subdivision 7.
29.3 	(c) A county in which a tax is imposed by a town under this subdivision may only 
29.4 	impose the tax under subdivision 2 after giving the clerk of each town imposing the tax 
29.5 	under this subdivision written notice at least 60 days prior to the effective date of the county 
29.6 	tax. If a county imposes an aggregate materials tax under this section, the tax imposed by 
29.7 	the town under this subdivision is repealed on the effective date of the county tax.

29.8 	EFFECTIVE DATE. This section is effective January 1, 2015.

29.9 	Sec. 31. Minnesota Statutes 2013 Supplement, section 465.04, is amended to read:
29.10 	465.04 ACCEPTANCE OF GIFTS.
29.11 	~~Cities~~ A city of the second, third, or fourth class~~, having at any time an estimated~~ 
29.12 	~~market value of not more than $41,000,000, as officially equalized by the commissioner~~ 
29.13 	~~of revenue~~, either operating under a home rule charter or under the laws of this state, ~~in~~ 
29.14 	~~addition to all other powers possessed by them, hereby are authorized and empowered to~~
29.15 	 may receive and accept gifts and donations for the use and benefit of ~~such cities and~~ the 
29.16 	city and its inhabitants ~~thereof~~ upon terms and conditions to be approved by the governing 
29.17 	~~bodies~~ body of ~~such cities; and such cities are authorized to comply with and perform such~~
29.18 	 the city. The terms and conditions~~, which~~ may include payment to the donor or donors of 
29.19 	interest on the value of the gift at not exceeding five percent per annum payable annually or 
29.20 	semiannually, during the remainder of the natural life or lives of ~~such~~ the donor or donors.

29.21 	Sec. 32. Minnesota Statutes 2012, section 469.176, subdivision 1b, is amended to read:
29.22 		Subd. 1b.Duration limits; terms. (a) No tax increment shall in any event be 
29.23 	paid to the authority:
29.24 	(1) after 15 years after receipt by the authority of the first increment for a renewal 
29.25 	and renovation district;
29.26 	(2) after 20 years after receipt by the authority of the first increment for a soils 
29.27 	condition district;
29.28 	(3) after eight years after receipt by the authority of the first increment for an 
29.29 	economic development district;
29.30 	(4) for a housing district~~, a compact development district,~~ or a redevelopment 
29.31 	district, after 25 years from the date of receipt by the authority of the first increment.
29.32 	(b) For purposes of determining a duration limit under this subdivision or subdivision 
29.33 	1e that is based on the receipt of an increment, any increments from taxes payable in the year 
30.1 	in which the district terminates shall be paid to the authority. This paragraph does not affect 
30.2 	a duration limit calculated from the date of approval of the tax increment financing plan or 
30.3 	based on the recovery of costs or to a duration limit under subdivision 1c. This paragraph 
30.4 	does not supersede the restrictions on payment of delinquent taxes in subdivision 1f.
30.5 	(c) An action by the authority to waive or decline to accept an increment has no 
30.6 	effect for purposes of computing a duration limit based on the receipt of increment under 
30.7 	this subdivision or any other provision of law. The authority is deemed to have received an 
30.8 	increment for any year in which it waived or declined to accept an increment, regardless 
30.9 	of whether the increment was paid to the authority.
30.10 	(d) Receipt by a hazardous substance subdistrict of an increment as a result of a 
30.11 	reduction in original net tax capacity under section 469.174, subdivision 7, paragraph 
30.12 	(b), does not constitute receipt of increment by the overlying district for the purpose of 
30.13 	calculating the duration limit under this section.

30.14 	Sec. 33. Minnesota Statutes 2012, section 469.176, subdivision 3, is amended to read:
30.15 		Subd. 3.Limitation on administrative expenses. (a) For districts for which 
30.16 	certification was requested before ~~August 1, 1979, or after June 30, 1982 and before~~
30.17 	 August 1, 2001, no tax increment shall be used to pay any administrative expenses for 
30.18 	a project which exceed ten percent of the total estimated tax increment expenditures 
30.19 	authorized by the tax increment financing plan or the total tax increment expenditures 
30.20 	for the project, whichever is less.
30.21 	~~(b) For districts for which certification was requested after July 31, 1979, and before~~ 
30.22 	~~July 1, 1982, no tax increment shall be used to pay administrative expenses, as defined in~~ 
30.23 	~~Minnesota Statutes 1980, section 273.73, for a district which exceeds five percent of the~~ 
30.24 	~~total tax increment expenditures authorized by the tax increment financing plan or the total~~ 
30.25 	~~estimated tax increment expenditures for the district, whichever is less.~~
30.26 	~~(c)~~(b) For districts for which certification was requested after July 31, 2001, no tax 
30.27 	increment may be used to pay any administrative expenses for a project which exceed 
30.28 	ten percent of total estimated tax increment expenditures authorized by the tax increment 
30.29 	financing plan or the total tax increments, as defined in section 469.174, subdivision 25, 
30.30 	clause (1), from the district, whichever is less.
30.31 	~~(d)~~ (c) Increments used to pay the county's administrative expenses under 
30.32 	subdivision 4h are not subject to the percentage limits in this subdivision.

30.33 	EFFECTIVE DATE. This section is effective for districts for which the request for 
30.34 	certification is made after June 30, 1982.

31.1 	Sec. 34. Minnesota Statutes 2013 Supplement, section 469.1763, subdivision 2, 
31.2 	is amended to read:
31.3 		Subd. 2.Expenditures outside district. (a) For each tax increment financing 
31.4 	district, an amount equal to at least 75 percent of the total revenue derived from tax 
31.5 	increments paid by properties in the district must be expended on activities in the district 
31.6 	or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities 
31.7 	in the district or to pay, or secure payment of, debt service on credit enhanced bonds. 
31.8 	For districts, other than redevelopment districts for which the request for certification 
31.9 	was made after June 30, 1995, the in-district percentage for purposes of the preceding 
31.10 	sentence is 80 percent. Not more than 25 percent of the total revenue derived from tax 
31.11 	increments paid by properties in the district may be expended, through a development fund 
31.12 	or otherwise, on activities outside of the district but within the defined geographic area of 
31.13 	the project except to pay, or secure payment of, debt service on credit enhanced bonds. 
31.14 	For districts, other than redevelopment districts for which the request for certification was 
31.15 	made after June 30, 1995, the pooling percentage for purposes of the preceding sentence is 
31.16 	20 percent. The revenue derived from tax increments for the district that are expended on 
31.17 	costs under section 469.176, subdivision 4h, paragraph (b), may be deducted first before 
31.18 	calculating the percentages that must be expended within and without the district.
31.19 	(b) In the case of a housing district, a housing project, as defined in section 469.174, 
31.20 	subdivision 11, is an activity in the district.
31.21 	(c) All administrative expenses are for activities outside of the district, except that 
31.22 	if the only expenses for activities outside of the district under this subdivision are for 
31.23 	the purposes described in paragraph (d), administrative expenses will be considered as 
31.24 	expenditures for activities in the district.
31.25 	(d) The authority may elect, in the tax increment financing plan for the district, 
31.26 	to increase by up to ten percentage points the permitted amount of expenditures for 
31.27 	activities located outside the geographic area of the district under paragraph (a). As 
31.28 	permitted by section 469.176, subdivision 4k, the expenditures, including the permitted 
31.29 	expenditures under paragraph (a), need not be made within the geographic area of the 
31.30 	project. Expenditures that meet the requirements of this paragraph are legally permitted 
31.31 	expenditures of the district, notwithstanding section 469.176, subdivisions 4b, 4c, and 4j. 
31.32 	To qualify for the increase under this paragraph, the expenditures must:
31.33 	(1) be used exclusively to assist housing that meets the requirement for a qualified 
31.34 	low-income building, as that term is used in section 42 of the Internal Revenue Code; and
32.1 	(2) not exceed the qualified basis of the housing, as defined under section 42(c) of 
32.2 	the Internal Revenue Code, less the amount of any credit allowed under section 42 of 
32.3 	the Internal Revenue Code; and
32.4 	(3) be used to:
32.5 	(i) acquire and prepare the site of the housing;
32.6 	(ii) acquire, construct, or rehabilitate the housing; or
32.7 	(iii) make public improvements directly related to the housing; or
32.8 	(4) be used to develop housing:
32.9 	(i) if the market value of the housing does not exceed the lesser of:
32.10 	(A) 150 percent of the average market value of single-family homes in that 
32.11 	municipality; or
32.12 	(B) $200,000 for municipalities located in the metropolitan area, as defined in 
32.13 	section 473.121, or $125,000 for all other municipalities; and
32.14 	(ii) if the expenditures are used to pay the cost of site acquisition, relocation, 
32.15 	demolition of existing structures, site preparation, and pollution abatement on one or 
32.16 	more parcels, if the parcel contains a residence containing one to four family dwelling 
32.17 	units that has been vacant for six or more months and is in foreclosure as defined in 
32.18 	section 325N.10, subdivision 7, but without regard to whether the residence is the owner's 
32.19 	principal residence, and only after the redemption period has expired.
32.20 	(e) For a district created within a biotechnology and health sciences industry zone 
32.21 	as defined in section 469.330, subdivision 6, or for an existing district located within 
32.22 	such a zone, tax increment derived from such a district may be expended outside of the 
32.23 	district but within the zone only for expenditures required for the construction of public 
32.24 	infrastructure necessary to support the activities of the zone, land acquisition, and other 
32.25 	redevelopment costs as defined in section 469.176, subdivision 4j. These expenditures are 
32.26 	considered as expenditures for activities within the district. The authority provided by 
32.27 	this paragraph expires for expenditures made after the later of (1) December 31, 2015, 
32.28 	or (2) the end of the five-year period beginning on the date the district was certified, 
32.29 	provided that date was before January 1, 2016.
32.30 	(f) The authority under paragraph (d), clause (4), expires on December 31, 2016. 
32.31 	Increments may continue to be expended under this authority after that date, if they are 
32.32 	used to pay bonds or binding contracts that would qualify under subdivision 3, paragraph 
32.33 	(a), if December 31, 2016, is considered to be the last date of the five-year period after 
32.34 	certification under that provision.

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

33.1 	Sec. 35. Minnesota Statutes 2012, section 473.665, subdivision 5, is amended to read:
33.2 		Subd. 5.Tax levy; surplus; reduction. The corporation, upon issuing any bonds 
33.3 	under the provisions of this section, shall, before the issuance thereof, levy for each year, 
33.4 	until the principal and interest are paid in full, a direct annual tax on all the taxable property 
33.5 	of the cities in and for which the corporation has been created in an amount not less than 
33.6 	five percent in excess of the sum required to pay the principal and interest thereof, when 
33.7 	and as such principal and interest matures. After any of such bonds have been delivered to 
33.8 	purchasers, such tax shall be irrepealable until all such indebtedness is paid, and after the 
33.9 	issuance of such bonds no further action of the corporation shall be necessary to authorize 
33.10 	the extensions, assessments, and collection of such tax. The secretary of the corporation 
33.11 	shall forthwith furnish a certified copy of such levy to the county auditor or county 
33.12 	auditors of the county or counties in which the cities in and for which the corporation has 
33.13 	been created are located, together with full information regarding the bonds for which the 
33.14 	tax is levied, and such county auditor or such county auditors, as the case may be, shall 
33.15 	enter the same in the register provided for in section 475.62, or a similar register, and shall 
33.16 	extend and assess the tax so levied. If both cities are located wholly within one county, the 
33.17 	county auditor thereof shall annually extend and assess the amount of the tax so levied. If 
33.18 	the cities are located in different counties, the county auditor of each such county shall 
33.19 	annually extend and assess such portion of the tax levied as the net tax capacity of the 
33.20 	taxable property~~, not including moneys and credits,~~ located wholly within the city in such 
33.21 	county bears to the total net tax capacity of the taxable property~~, not including moneys and~~ 
33.22 	~~credits,~~ within both cities. Any surplus resulting from the excess levy herein provided 
33.23 	for shall be transferred to a sinking fund after the principal and interest for which the tax 
33.24 	was levied and collected has been paid; provided, that the corporation may, on or before 
33.25 	October 15 in any year, by appropriate action, cause its secretary to certify to the county 
33.26 	auditor, or auditors, the amount on hand and available in its treasury from earnings, or 
33.27 	otherwise, including the amount in the sinking fund, which it will use to pay principal or 
33.28 	interest or both on each specified issue of its bonds, and the county auditor or auditors 
33.29 	shall reduce the levy for that year, herein provided for by that amount. The amount of 
33.30 	funds so certified shall be set aside by the corporation, and be used for no other purpose 
33.31 	than for the payment of the principal and interest of the bonds. All taxes hereunder shall 
33.32 	be collected and remitted to the corporation by the county treasurer or county treasurers, 
33.33 	in accordance with the provisions of law governing the collection of other taxes, and shall 
33.34 	be used solely for the payment of the bonds where due.

33.35 	Sec. 36.  REPEALER.
 34.1 	(a) Minnesota Statutes 2012, sections 272.02, subdivisions 43, 48, 51, 53, 67, 72, 
34.2 	and 82; 272.027, subdivision 2; 273.075; 273.1383; 273.1386; 273.1398, subdivision 
34.3 	4b; 273.80; 275.77; 279.32; 281.328; 282.10; 282.23; 289A.56, subdivision 7; 290.06, 
34.4 	subdivisions 30 and 31; 290C.06; 291.41; 291.42; 291.43; 291.44; 291.45; 291.46; 
34.5 	291.47; 297A.68, subdivision 38; 297A.71, subdivisions 4, 5, 7, 9, 10, 17, 18, 20, 32, 
34.6 	and 41; 298.2961, subdivision 7; 469.174, subdivision 10c; 469.175, subdivision 2b; 
34.7 	469.176, subdivision 1i; 469.177, subdivision 10; 469.330; 469.331; 469.332; 469.333; 
34.8 	469.334; 469.335; 469.336; 469.337; 469.338; 469.339; 469.340, subdivisions 1, 2, 3, 
34.9 	and 5; 469.341; 477A.0124, subdivisions 1 and 6; and 505.173, Minnesota Statutes 2013 
34.10 	Supplement, sections 273.1103; and 298.2961, subdivision 5, and Laws 1993, chapter 
34.11 	375, article 9, section 47,  are repealed.
34.12 	(b) Minnesota Statutes 2012, section 469.1764, is repealed.
34.13 	(c) Minnesota Statutes 2012, sections 290.06, subdivision 27; and 290.191, 
34.14 	subdivision 4, are repealed.
34.15 	(d) Minnesota Statutes 2012, sections 127A.48, subdivision 7; and 273.1115, are 
34.16 	repealed.
34.17 	(e) Minnesota Statutes 2012, sections 297A.69, subdivision 7; and 297A.70, 
34.18 	subdivision 9, are repealed.
34.19 	(f) Minnesota Statutes 2012, section 298.75, subdivisions 9 and 11, are repealed.

34.20 	EFFECTIVE DATE. The provisions of paragraph (a) are effective the day 
34.21 	following final enactment.
34.22 	The provisions of paragraph (b) are effective the day following final enactment and 
34.23 	any remaining unexpended tax increments from a district subject to Minnesota Statutes, 
34.24 	section 469.1764, must be distributed as excess increments to the city, county, and school 
34.25 	district under Minnesota Statutes, section 469.176, subdivision 2, paragraph (c), clause 
34.26 	(4), on or before December 31, 2014.
34.27 	The provisions of paragraph (c) are effective for taxable years beginning after 
34.28 	December 31, 2013.
34.29 	The provisions of paragraph (d) are effective beginning with property taxes payable 
34.30 	in 2015.
34.31 	The provisions of paragraph (e) are effective for sales and purchases made after 
34.32 	June 30, 2014.
34.33 	The provisions of paragraph (f) are effective January 1, 2015, except that the taxes 
34.34 	imposed by towns in St. Louis and Otter Tail Counties remain in effect under Minnesota 
34.35 	Statutes, section 298.75, subdivision 12.