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Minnesota Legislature

Office of the Revisor of Statutes

CHAPTER 298. MINERALS TAXES

Table of Sections
SectionHeadnote
298.001DEFINITIONS.

MINING

298.01MINING OR PRODUCING ORES.
298.011Repealed, Ex1971 c 31 art 4 s 5
298.012Repealed, 1998 c 389 art 10 s 23
298.015NET PROCEEDS TAX ON MINING.
298.016GROSS PROCEEDS.
298.017DEDUCTIONS.
298.018DISTRIBUTION OF PROCEEDS.
298.02Repealed, 1987 c 268 art 9 s 43
298.025Repealed, Ex1971 c 31 art 4 s 5
298.026Repealed, 1987 c 268 art 9 s 43
298.027Repealed, 1987 c 268 art 9 s 43
298.028Repealed, 1987 c 268 art 9 s 43
298.03Repealed, 1987 c 268 art 9 s 43
298.031Repealed, 1987 c 268 art 9 s 43
298.04Repealed, 1987 c 268 art 9 s 43
298.045Repealed, 1984 c 522 s 20
298.046Repealed, 1984 c 522 s 20
298.047Repealed, 1984 c 522 s 20
298.048Repealed, 1984 c 522 s 20
298.05Repealed, 1991 c 291 art 11 s 20
298.06Repealed, 1991 c 291 art 11 s 20
298.07Repealed, 1991 c 291 art 11 s 20
298.08Repealed, 1991 c 291 art 11 s 20
298.09Repealed, 1991 c 291 art 11 s 20
298.10Repealed, 1991 c 291 art 11 s 20
298.11Repealed, 1991 c 291 art 11 s 20
298.12Repealed, 1991 c 291 art 11 s 20
298.13Repealed, 1991 c 291 art 11 s 20
298.14Repealed, 1991 c 291 art 11 s 20
298.15Repealed, 1991 c 291 art 11 s 20
298.16TAXES TO BE CREDITED TO GENERAL FUND.
298.17OCCUPATION TAXES TO BE APPORTIONED.
298.18TAXES TO GO TO GENERAL FUND IF SECTION 298.17 INVALID.
298.19Repealed, 1991 c 291 art 11 s 20
298.20Repealed, 1991 c 291 art 11 s 20
298.21Repealed, 1998 c 389 art 10 s 23
298.215Repealed, 2005 c 156 art 2 s 34
298.216Repealed, 2005 c 156 art 2 s 34

IRON RANGE RESOURCES AND REHABILITATION

298.22IRON RANGE RESOURCES AND REHABILITATION.
298.221RECEIPTS FROM CONTRACTS; APPROPRIATION.
298.2211FINANCING ACTIVITIES.
298.2212INVESTMENT OF FUNDS.

NORTHEAST MINNESOTA ECONOMIC DEVELOPMENT FUND

298.2213NORTHEAST MINNESOTA ECONOMIC DEVELOPMENT FUND.

IRON RANGE HIGHER EDUCATION

298.2214IRON RANGE HIGHER EDUCATION.

TACONITE ENVIRONMENTAL

PROTECTION FUND ACT

298.222CITATION.
298.223TACONITE AREA ENVIRONMENTAL PROTECTION FUND.
298.224INVESTMENT OF FUNDS; INCOME.
298.225APPROPRIATION.
298.226Repealed, 1996 c 310 s 1

TACONITE ECONOMIC DEVELOPMENT FUND

298.227298.227 TACONITE ECONOMIC DEVELOPMENT FUND.

TAX ON TACONITE

AND IRON SULPHIDES

298.23Repealed, 1998 c 389 art 10 s 23
298.24TAX ON TACONITE AND IRON SULPHIDES.
298.241Repealed, 1977 c 423 art 10 s 31
298.242Repealed, 1975 c 437 art 11 s 7
298.243Repealed, 1977 c 423 art 10 s 31
298.244Repealed, 1996 c 310 s 1
298.25TAXES ADDITIONAL TO OCCUPATION TAX; IN LIEU OF OTHER TAXES.
298.26TAX ON UNMINED TACONITE AND IRON SULPHIDES.
298.27COLLECTION AND PAYMENT OF TAX.
298.28DIVISION AND DISTRIBUTION OF PROCEEDS.
298.281Repealed, 1977 c 423 art 10 s 30
298.282DISTRIBUTION OF TACONITE MUNICIPAL AID ACCOUNT; TACONITE MUNICIPAL AID; PAYMENT.
298.283CHANGE OF STATUS OF MUNICIPALITY; DATE FOR DETERMINING STATUS.
298.285STATE AID AMOUNT; APPROPRIATION.
298.29Renumbered 117.46

DOUGLAS J. JOHNSON ECONOMIC

PROTECTION TRUST FUND ACT

298.291CITATION.
298.292POLICY.
298.293EXPENDING FUNDS.
298.294INVESTMENT OF FUND.
298.295Repealed, 1983 c 46 s 8
298.296OPERATION OF FUND.
298.2961PRODUCER GRANTS.
298.297ADVISORY COMMITTEES.
298.298LONG-RANGE PLAN.
298.30Renumbered 117.47
298.31Private
298.32Repealed, 1975 c 437 art 11 s 7

SEMITACONITE TAXATION

298.34SEMITACONITE, TAXATION, DEFINITIONS.
298.35IMPOSITION OF TAX; AMOUNT.
298.36NATURE OF TAX.
298.37ASSESSMENT AT LOCAL TAX RATE.
298.38PAYMENT AND COLLECTION.
298.39DISTRIBUTION OF PROCEEDS.

AGGLOMERATING FACILITIES PRODUCTION TAX

298.391AGGLOMERATING FACILITIES DEFINITIONS.
298.392QUALIFICATION OF AGGLOMERATING FACILITIES; PROCEDURE AND ORDER.
298.393IMPOSITION OF TAX; AMOUNT.
298.394NATURE OF TAX.
298.395PAYMENT AND COLLECTION.
298.396DISTRIBUTION OF PROCEEDS.
298.40Repealed, 1987 c 268 art 9 s 43
298.401Repealed, 1988 c 719 art 2 s 56
298.402NET OPERATING LOSSES.

TAXATION OF OTHER IRON BEARING MATERIAL

298.405IRON ORE BEARING MATERIAL OTHER THAN TACONITE AND SEMITACONITE; TAXATION.
298.41Repealed, Ex1971 c 31 art 12 s 1
298.42Repealed, Ex1971 c 31 art 12 s 1
298.43Repealed, Ex1971 c 31 art 12 s 1
298.44Repealed, Ex1971 c 31 art 12 s 1
298.45Repealed, Ex1971 c 31 art 12 s 1

UNMINED IRON ORE

298.46EXPLORATORY DRILLING FOR IRON ORE.
298.47NOTIFICATION OF COMMISSIONER OF REVENUE OF UNMINED IRON ORE.
298.48MINERAL RIGHTS; EXPLORATION DATA; FILING REQUIREMENTS; PENALTIES.
298.51Repealed, 1987 c 268 art 9 s 43
298.52Repealed, 1987 c 268 art 9 s 43
298.53Repealed, 1987 c 268 art 9 s 43
298.54Repealed, 1987 c 268 art 9 s 43
298.55Repealed, 1987 c 268 art 9 s 43
298.61Repealed, 1987 c 268 art 9 s 43
298.62Repealed, 1987 c 268 art 9 s 43
298.63Repealed, 1987 c 268 art 9 s 43
298.64Repealed, 1987 c 268 art 9 s 43
298.65Repealed, 1987 c 268 art 9 s 43
298.66Repealed, 1987 c 268 art 9 s 43
298.67Repealed, 1987 c 268 art 9 s 43

AGGREGATE MATERIAL TAX

298.75AGGREGATE MATERIAL REMOVAL; PRODUCTION TAX.
298.76Repealed, 1982 c 523 art 13 s 3
298.001 DEFINITIONS.
    Subdivision 1. Generally. As used in this chapter, the terms defined in this section have
the meanings given in this section.
    Subd. 2. City. "City" includes any home rule charter city, statutory city, or any city however
organized.
    Subd. 3. Person. "Person" means individuals, fiduciaries, estates, trusts, partnerships,
companies, joint stock companies, corporations, and all associations.
    Subd. 3a. Producer. "Producer" means a person engaged in the business of mining or
producing iron ore, taconite concentrate, or direct reduced ore in this state.
    Subd. 4. Taconite. "Taconite" means ferruginous chert or ferruginous slate in the form of
compact, siliceous rock, in which the iron oxide is so finely disseminated that substantially all
of the iron-bearing particles of merchantable grade are smaller than 20 mesh and which is not
merchantable as iron ore in its natural state, and which cannot be made merchantable by simple
methods of beneficiation involving only crushing, screening, washing, jigging, drying, or any
combination thereof.
    Subd. 5. Iron sulphides. "Iron sulphides" means chemical combinations of iron and sulphur
(mineralogically known as pyrrhotite, pyrites, or marcasite), in relatively impure condition,
which are not merchantable as iron ore and which cannot be made merchantable by the simple
methods of beneficiation above described.
    Subd. 6. Semitaconite. "Semitaconite" means altered iron formation, altered taconite,
ferruginous chert, or ferruginous slate which has been oxidized and partially leached and in
which the iron oxide is so finely disseminated that substantially all of the iron-bearing particles
of merchantable grade are smaller than 20 mesh and which is not merchantable as iron ore in
its natural state, and which cannot be made merchantable by simple methods of beneficiation
involving only crushing, screening, washing, jigging, heavy media separation, spirals, cyclones,
drying, or any combination thereof.
    Subd. 7. Agglomerates. "Agglomerates" means the merchantable iron ore aggregates which
are produced by agglomeration.
    Subd. 8. Commissioner. "Commissioner" means the commissioner of revenue of the
state of Minnesota.
History: 1998 c 389 art 10 s 4; 2006 c 259 art 12 s 1

MINING

298.01 MINING OR PRODUCING ORES.
    Subdivision 1.[Repealed, 1987 c 268 art 9 s 43]
    Subd. 2.[Repealed, 1985 c 300 s 30]
    Subd. 3. Occupation tax; other ores. Every person engaged in the business of mining or
producing ores in this state, except iron ore or taconite concentrates, shall pay an occupation tax
to the state of Minnesota as provided in this subdivision. The tax is determined in the same
manner as the tax imposed by section 290.02, except that sections 290.05, subdivision 1, clause
(a), 290.17, subdivision 4, and 290.191, subdivision 2, do not apply, and the occupation tax
must be computed by applying to taxable income the rate of 2.45 percent. A person subject to
occupation tax under this section shall apportion its net income on the basis of the percentage
obtained by taking the sum of:
(1) 75 percent of the percentage which the sales made within this state in connection with the
trade or business during the tax period are of the total sales wherever made in connection with
the trade or business during the tax period;
(2) 12.5 percent of the percentage which the total tangible property used by the taxpayer in
this state in connection with the trade or business during the tax period is of the total tangible
property, wherever located, used by the taxpayer in connection with the trade or business during
the tax period; and
(3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred in this
state or paid in respect to labor performed in this state in connection with the trade or business
during the tax period are of the taxpayer's total payrolls paid or incurred in connection with
the trade or business during the tax period.
The tax is in addition to all other taxes.
    Subd. 3a. Gross income. (a) For purposes of determining a person's taxable income under
subdivision 3, gross income is determined by the amount of gross proceeds from mining in this
state under section 298.016 and includes any gain or loss recognized from the sale or disposition
of assets used in the business in this state. If more than one mineral, metal, or energy resource
referred to in section 298.016 is mined and processed at the same mine and plant, a gross income
for each mineral, metal, or energy resource must be determined separately. The gross incomes
may be combined on one occupation tax return to arrive at the gross income of all production.
(b) In applying section 290.191, subdivision 5, transfers of ores are deemed to be sales in
this state.
    Subd. 3b. Deductions. (a) For purposes of determining taxable income under subdivision 3,
the deductions from gross income include only those expenses necessary to convert raw ores to
marketable quality. Such expenses include costs associated with refinement but do not include
expenses such as transportation, stockpiling, marketing, or marine insurance that are incurred after
marketable ores are produced, unless the expenses are included in gross income. The allowable
deductions from a mine or plant that mines and produces more than one mineral, metal, or energy
resource must be determined separately for the purposes of computing the deduction in section
290.01, subdivision 19c, clause (9). These deductions may be combined on one occupation tax
return to arrive at the deduction from gross income for all production.
(b) The provisions of section 290.01, subdivisions 19c, clauses (6) and (9), and 19d, clauses
(7) and (11), are not used to determine taxable income.
    Subd. 3c.[Repealed, 2006 c 259 art 12 s 17]
    Subd. 3d.[Repealed, 2006 c 259 art 12 s 17]
    Subd. 4. Occupation tax; iron ore; taconite concentrates. A person engaged in the
business of mining or producing of iron ore, taconite concentrates or direct reduced ore in this
state shall pay an occupation tax to the state of Minnesota. The tax is determined in the same
manner as the tax imposed by section 290.02, except that sections 290.05, subdivision 1, clause
(a), 290.17, subdivision 4, and 290.191, subdivision 2, do not apply, and the occupation tax
shall be computed by applying to taxable income the rate of 2.45 percent. A person subject to
occupation tax under this section shall apportion its net income on the basis of the percentage
obtained by taking the sum of:
(1) 75 percent of the percentage which the sales made within this state in connection with the
trade or business during the tax period are of the total sales wherever made in connection with
the trade or business during the tax period;
(2) 12.5 percent of the percentage which the total tangible property used by the taxpayer in
this state in connection with the trade or business during the tax period is of the total tangible
property, wherever located, used by the taxpayer in connection with the trade or business during
the tax period; and
(3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred in this
state or paid in respect to labor performed in this state in connection with the trade or business
during the tax period are of the taxpayer's total payrolls paid or incurred in connection with
the trade or business during the tax period.
The tax is in addition to all other taxes.
    Subd. 4a. Gross income. (a) For purposes of determining a person's taxable income under
subdivision 4, gross income is determined by the mine value of the ore mined in Minnesota and
includes any gain or loss recognized from the sale or disposition of assets used in the business in
this state.
(b) Mine value is the value, or selling price, of iron ore or taconite concentrates, f.o.b. mine.
The mine value is calculated by multiplying the iron unit price for the period, as determined by
the commissioner, by the tons produced and the weighted average analysis.
(c) In applying section 290.191, subdivision 5, transfers of iron ore and taconite concentrates
are deemed to be sales in this state.
(d) If iron ore or taconite and a mineral, metal, or energy resource referred to in section
298.016 is mined and processed at the same mine and plant, a gross income for each mineral,
metal, or energy resource must be determined separately from the mine value for the iron ore
or taconite. The gross income may be combined on one occupation tax return to arrive at the
gross income from all production.
    Subd. 4b. Deductions. For purposes of determining taxable income under subdivision 4,
the deductions from gross income include only those expenses necessary to convert raw iron ore
or taconite concentrates to marketable quality. Such expenses include costs associated with
beneficiation and refinement but do not include expenses such as transportation, stockpiling,
marketing, or marine insurance that are incurred after marketable iron ore or taconite pellets are
produced. The allowable deductions from a mine or plant that mines and produces iron ore or
taconite and one or more mineral or metal referred to in section 298.016 must be determined
separately for the purposes of computing the deduction in section 290.01, subdivision 19c, clause
(9). These deductions may be combined on one occupation tax return to arrive at the deduction
from gross income for all production.
    Subd. 4c. Special deductions; net operating loss. (a) For purposes of determining taxable
income under subdivision 4, the provisions of section 290.01, subdivisions 19c, clauses (6) and
(9), and 19d, clauses (7) and (11), are not used to determine taxable income.
(b) The amount of net operating loss incurred in a taxable year beginning before January
1, 1990, that may be carried over to a taxable year beginning after December 31, 1989, is the
amount of net operating loss carryover determined in the calculation of the hypothetical corporate
franchise tax under Minnesota Statutes 1988, sections 298.40 and 298.402.
    Subd. 4d.[Repealed, 2006 c 259 art 12 s 17]
    Subd. 4e.[Repealed, 2006 c 259 art 12 s 17]
    Subd. 5. If declared unconstitutional. If the taxes imposed in subdivisions 3 and 4 are
found unconstitutional by any court of last resort, then persons engaged in the business of
mining or producing iron ore or other ores shall pay the occupation taxes imposed in Minnesota
Statutes 1986, chapter 298.
    Subd. 6. Deductions applicable to mining both taconite and other ores; ratio applied. If
a person is engaged in the business of mining or producing both iron ores, taconite concentrates,
or direct reduced ore, and other ores from the same mine or facility, that person must separately
determine the mine value of (1) the iron ore, taconite concentrates, and direct reduced ore, and
(2) the amount of gross proceeds from mining other ores in Minnesota. The ratio of mine value
from iron ore, taconite concentrates, and direct reduced ore to gross proceeds from mining other
ores must be applied to deductions common to both processes to determine taxable income
for tax paid pursuant to subdivisions 3 and 4.
History: (2373, 2373-1) 1921 c 223 s 1; Ex1937 c 85 s 1; 1939 c 356 s 1; 1941 c 544 s 1;
1943 c 590 s 1,2; 1945 c 448 s 1; 1947 c 542 s 1; Ex1955 c 2 art 2 s 1; Ex1957 c 1 art 4 s 1;
Ex1959 c 70 art 8 s 1; Ex1971 c 31 art 4 s 1; 1973 c 631 s 1,2; 1984 c 502 art 7 s 10; 1985 c 300
s 20; 1Sp1985 c 14 art 10 s 7; 1987 c 268 art 9 s 22-25; 1988 c 719 art 2 s 51,52; 1989 c 27 art 1
s 3-9; 1Sp1989 c 1 art 10 s 38,39; 1991 c 291 art 11 s 12-15; 1993 c 375 art 8 s 14; 1994 c 587
art 1 s 24; 1995 c 264 art 1 s 4; art 7 s 1; 1996 c 471 art 9 s 15; 1997 c 231 art 6 s 24; 1Sp2001 c
5 art 9 s 26,27; 2002 c 377 art 8 s 3,4; 1Sp2005 c 3 art 3 s 16,17; 2006 c 259 art 12 s 2-8
298.011 [Repealed, Ex1971 c 31 art 4 s 5]
298.012 [Repealed, 1998 c 389 art 10 s 23]
298.015 NET PROCEEDS TAX ON MINING.
    Subdivision 1. Tax imposed. A person engaged in the business of mining shall pay to the
state of Minnesota for distribution as provided in section 298.018 a net proceeds tax equal to
two percent of the net proceeds from mining in Minnesota. The tax applies to all mineral and
energy resources mined or extracted within the state of Minnesota except for sand, silica sand,
gravel, building stone, crushed rock, limestone, granite, dimension granite, dimension stone,
horticultural peat, clay, soil, iron ore, and taconite concentrates. The tax is in addition to all other
taxes provided for by law.
    Subd. 2. Net proceeds. For purposes of this section, the term "net proceeds" means the gross
proceeds from mining, as defined in section 298.016, less the deductions allowed in section
298.017. No other credits or deductions shall apply to this tax except for those provided in
section 298.017.
History: 1987 c 268 art 9 s 26; 1990 c 604 art 10 s 15; 1991 c 291 art 11 s 16
298.016 GROSS PROCEEDS.
    Subdivision 1. Computation; arm's-length transactions. When a metal or mineral product
is sold by the producer in an arm's-length transaction, the gross proceeds are equal to the proceeds
from the sale of the product. This subdivision applies to sales realized on all metal or mineral
products produced from mining, including reduction, beneficiation, or any treatment used by a
producer to obtain a metal or mineral product which is commercially marketable.
    Subd. 2. Other transactions. When a metal or mineral product is used by the producer or
disposed of in a non-arm's-length transaction, the gross proceeds must be determined using the
alternative computation in subdivision 3. Transactions subject to this subdivision include, but are
not limited to, shipments to a wholly owned smelter, transactions with associated or affiliated
companies, and any other transactions which are not at arm's length.
    Subd. 3. Alternative computation. The commissioner of revenue shall determine the
alternative computation of gross proceeds using the following procedure:
(a)(1) Metal and mineral prices shall be determined by using the average annual market price
as published in the Engineering and Mining Journal; (2) For metals or mineral products with a
monthly or weekly price quotation in the Engineering and Mining Journal, but for which no
average annual price has been published, an arithmetic average of the monthly or weekly prices
published in the Engineering and Mining Journal shall be used; (3) If the price of a particular
metal or mineral product is not published in the Engineering and Mining Journal, another
recognized published price, as established by the commissioner of revenue will be used.
(b) The quantity of each particular metal or mineral product recovered and paid or credited
for by the smelter will be multiplied by the average annual market price as determined in clause
(a). Special smelter charges for particular metals will be allowed as a deduction from this price.
The resulting amount will be the gross proceeds for calculating the tax in section 298.015.
    Subd. 4. Definitions. For the purposes of sections 298.015 and 298.017, the terms defined in
this subdivision have the meaning given them unless the context clearly indicates otherwise.
(a) "Metal or mineral products" means all those mineral and energy resources subject to
the tax provided in section 298.015.
(b) "Exploration" means activities designed and engaged in to ascertain the existence,
location, extent, or quality of any deposit of metal or mineral products prior to the development
of a mining site.
(c) "Development" means activities designed and engaged in to prepare or develop a
potential mining site for mining after the existence of metal or mineral products in commercially
marketable quantities has been disclosed including, but not limited to, the clearing of forestation,
the building of roads, removal of overburden, or the sinking of shafts.
(d) "Research" means activities designed and engaged in to create new or improved methods
of mining, producing, processing, beneficiating, smelting, or refining metal or mineral products.
History: 1987 c 268 art 9 s 27
298.017 DEDUCTIONS.
    Subdivision 1. Deductions not allowed. For purposes of calculating the net proceeds under
section 298.015, the following expenses are not deductible: (1) all sales, marketing, and interest
expenses; (2) all insurance expense and taxes, except as specifically provided in this section; (3)
all administrative expenses outside of Minnesota; (4) any research expense prior to production;
(5) funds set aside during production years to pay for reclamation expenses after production ends;
(6) royalty expenses, depletion allowances, and cost of mining land.
    Subd. 2. Deductions allowed. (a) In calculating the net proceeds for the purpose of
determining the tax provided in section 298.015, only those expenses specifically allowed in this
subdivision may be deducted from gross proceeds. The carryback or carryforward of deductions
shall not be allowed.
(b) Ordinary and necessary expenses actually paid for the mining, production, processing,
beneficiation, smelting, or refining of metal or mineral products for:
(1) labor, including wages, salaries, fringe benefits, unemployment and workers'
compensation insurance;
(2) machinery, equipment, and supplies, including any sales and use tax paid on it, except
that machinery and equipment subject to depreciation shall only be deductible under clause (b)(3);
(3) depreciation as defined and allowed by section 167 of the Internal Revenue Code of
1986, as amended through December 31, 1996;
(4) administrative expenses inside Minnesota; and
(5) reclamation costs actually incurred in Minnesota and paid in a year of production,
including the payment of bonds required by the provisions of an environmental permit issued by
the state of Minnesota are deductible.
(c) Ordinary and necessary expenses of transporting metal or mineral products are allowed
as a deduction if the costs are included in the sale price of the products.
(d) Expenses of exploration, research, or development in this state for the mining and
processing of minerals within Minnesota paid in a production year are deductible in the
production year.
(e) Expenses of exploration and development in Minnesota incurred prior to production must
be amortized and deducted on a straight-line basis over the first five years of production.
History: 1987 c 268 art 9 s 28; 1990 c 604 art 10 s 16; 1994 c 587 art 1 s 22; 1995 c
264 art 1 s 4; 1997 c 231 art 6 s 24
298.018 DISTRIBUTION OF PROCEEDS.
    Subdivision 1. Within the taconite assistance area. The proceeds of the tax paid under
sections 298.015 to 298.017 on minerals and energy resources mined or extracted within the
taconite assistance area defined in section 273.1341, shall be allocated as follows:
(1) five percent to the city or town within which the minerals or energy resources are
mined or extracted;
(2) ten percent to the taconite municipal aid account to be distributed as provided in section
298.282;
(3) ten percent to the school district within which the minerals or energy resources are
mined or extracted;
(4) 20 percent to a group of school districts comprised of those school districts wherein the
mineral or energy resource was mined or extracted or in which there is a qualifying municipality
as defined by section 273.134, paragraph (b), in direct proportion to school district indexes as
follows: for each school district, its pupil units determined under section 126C.05 for the prior
school year shall be multiplied by the ratio of the average adjusted net tax capacity per pupil unit
for school districts receiving aid under this clause as calculated pursuant to chapters 122A, 126C,
and 127A for the school year ending prior to distribution to the adjusted net tax capacity per pupil
unit of the district. Each district shall receive that portion of the distribution which its index bears
to the sum of the indices for all school districts that receive the distributions;
(5) 20 percent to the county within which the minerals or energy resources are mined or
extracted;
(6) 20 percent to St. Louis County acting as the counties' fiscal agent to be distributed as
provided in sections 273.134 to 273.136;
(7) five percent to the Iron Range Resources and Rehabilitation Board for the purposes of
section 298.22;
(8) five percent to the Douglas J. Johnson economic protection trust fund; and
(9) five percent to the taconite environmental protection fund.
The proceeds of the tax shall be distributed on July 15 each year.
    Subd. 2. Outside the taconite assistance area. The proceeds of the tax paid under sections
298.015 to 298.017 on minerals and energy resources mined or extracted outside of the taconite
assistance area defined in section 273.1341, shall be deposited in the general fund.
History: 1987 c 268 art 9 s 29; 1988 c 719 art 5 s 84; 1989 c 329 art 13 s 20; 1998 c 397 art
11 s 3; 1Sp2001 c 5 art 6 s 11,12; 2003 c 127 art 11 s 12; 1Sp2003 c 21 art 11 s 14,15
298.02 [Repealed, 1987 c 268 art 9 s 43]
298.025 [Repealed, Ex1971 c 31 art 4 s 5]
298.026 [Repealed, 1987 c 268 art 9 s 43]
298.027 [Repealed, 1987 c 268 art 9 s 43]
298.028 [Repealed, 1987 c 268 art 9 s 43]
298.03 [Repealed, 1987 c 268 art 9 s 43]
298.031 [Repealed, 1987 c 268 art 9 s 43]
298.04 [Repealed, 1987 c 268 art 9 s 43]
298.045 [Repealed, 1984 c 522 s 20]
298.046 [Repealed, 1984 c 522 s 20]
298.047 [Repealed, 1984 c 522 s 20]
298.048 [Repealed, 1984 c 522 s 20]
298.05 [Repealed, 1991 c 291 art 11 s 20]
298.06 [Repealed, 1991 c 291 art 11 s 20]
298.07 [Repealed, 1991 c 291 art 11 s 20]
298.08 [Repealed, 1991 c 291 art 11 s 20]
298.09 [Repealed, 1991 c 291 art 11 s 20]
298.10 [Repealed, 1991 c 291 art 11 s 20]
298.11 [Repealed, 1991 c 291 art 11 s 20]
298.12 [Repealed, 1991 c 291 art 11 s 20]
298.13 [Repealed, 1991 c 291 art 11 s 20]
298.14 [Repealed, 1991 c 291 art 11 s 20]
298.15 [Repealed, 1991 c 291 art 11 s 20]
298.16 TAXES TO BE CREDITED TO GENERAL FUND.
All taxes imposed under sections 298.01 and 298.015 must be paid into the state treasury and
credited to the general fund.
History: (2386) 1921 c 223 s 14; 1969 c 399 s 49; 1991 c 291 art 11 s 17
298.17 OCCUPATION TAXES TO BE APPORTIONED.
All occupation taxes paid by persons, copartnerships, companies, joint stock companies,
corporations, and associations, however or for whatever purpose organized, engaged in the
business of mining or producing iron ore or other ores, when collected shall be apportioned and
distributed in accordance with the Constitution of the state of Minnesota, article X, section 3,
in the manner following: 90 percent shall be deposited in the state treasury and credited to the
general fund of which four-ninths shall be used for the support of elementary and secondary
schools; and ten percent of the proceeds of the tax imposed by this section shall be deposited in
the state treasury and credited to the general fund for the general support of the university. Of
the moneys apportioned to the general fund by this section there is annually appropriated and
credited to the Iron Range Resources and Rehabilitation Board account in the special revenue
fund an amount equal to that which would have been generated by a 1.5 cent tax imposed by
section 298.24 on each taxable ton produced in the preceding calendar year, to be expended for
the purposes of section 298.22. The money appropriated pursuant to this section shall be used (1)
to provide environmental development grants to local governments located within any county
in region 3 as defined in governor's executive order number 60, issued on June 12, 1970, which
does not contain a municipality qualifying pursuant to section 273.134, paragraph (b), or (2) to
provide economic development loans or grants to businesses located within any such county,
provided that the county board or an advisory group appointed by the county board to provide
recommendations on economic development shall make recommendations to the Iron Range
Resources and Rehabilitation Board regarding the loans. Payment to the Iron Range Resources
and Rehabilitation Board account shall be made by May 15 annually.
Of the money allocated to Koochiching County, one-third must be paid to the Koochiching
County Economic Development Commission.
History: (2391) 1923 c 402 s 1; 1961 c 561 s 9; 1969 c 399 s 42; 1976 c 2 s 172; 1980 c
607 art 7 s 2; 1984 c 524 s 1; 1991 c 199 art 1 s 65; 1996 c 471 art 13 s 14; 2000 c 484 art 1 s
1; 1Sp2001 c 5 art 6 s 13
298.18 TAXES TO GO TO GENERAL FUND IF SECTION 298.17 INVALID.
If for any reason section 298.17 shall be held to be invalid, then all such taxes, when
collected, shall be paid into the state treasury and credited to the general fund.
History: (2392) 1923 c 402 s 2; 1969 c 399 s 49
298.19 [Repealed, 1991 c 291 art 11 s 20]
298.20 [Repealed, 1991 c 291 art 11 s 20]
298.21 [Repealed, 1998 c 389 art 10 s 23]
298.215 [Repealed, 2005 c 156 art 2 s 34]
298.216 [Repealed, 2005 c 156 art 2 s 34]

IRON RANGE RESOURCES AND REHABILITATION

298.22 IRON RANGE RESOURCES AND REHABILITATION.
    Subdivision 1. The office of the commissioner of Iron Range resources and rehabilitation.
(1) The office of the commissioner of Iron Range resources and rehabilitation is created as an
agency in the executive branch of state government. The governor shall appoint the commissioner
of Iron Range resources and rehabilitation under section 15.06.
(2) The commissioner may hold other positions or appointments that are not incompatible
with duties as commissioner of Iron Range resources and rehabilitation. The commissioner may
appoint a deputy commissioner. All expenses of the commissioner, including the payment of staff
and other assistance as may be necessary, must be paid out of the amounts appropriated by section
298.28 or otherwise made available by law to the commissioner.
(3) When the commissioner determines that distress and unemployment exists or may exist
in the future in any county by reason of the removal of natural resources or a possibly limited use
of natural resources in the future and any resulting decrease in employment, the commissioner
may use whatever amounts of the appropriation made to the commissioner of revenue in section
298.28 that are determined to be necessary and proper in the development of the remaining
resources of the county and in the vocational training and rehabilitation of its residents, except
that the amount needed to cover cost overruns awarded to a contractor by an arbitrator in relation
to a contract awarded by the commissioner or in effect after July 1, 1985, is appropriated from the
general fund. For the purposes of this section, "development of remaining resources" includes, but
is not limited to, the promotion of tourism.
    Subd. 2. Iron Range Resources and Rehabilitation Board. There is hereby created the
Iron Range Resources and Rehabilitation Board, consisting of 13 members, five of whom are state
senators appointed by the Subcommittee on Committees of the Rules Committee of the senate,
and five of whom are representatives, appointed by the speaker of the house of representatives.
The remaining members shall be appointed one each by the senate majority leader, the speaker of
the house of representatives, and the governor and must be nonlegislators who reside in a taconite
assistance area as defined in section 273.1341. The members shall be appointed in January of
every odd-numbered year, except that the initial nonlegislator members shall be appointed by July
1, 1999, and shall serve until January of the next odd-numbered year. Vacancies on the board
shall be filled in the same manner as the original members were chosen. At least a majority of the
legislative members of the board shall be elected from state senatorial or legislative districts in
which over 50 percent of the residents reside within a taconite assistance area as defined in section
273.1341. All expenditures and projects made by the commissioner of Iron Range resources and
rehabilitation shall be consistent with the priorities established in subdivision 8 and shall first be
submitted to the Iron Range Resources and Rehabilitation Board for approval by a majority of the
board of expenditures and projects for rehabilitation purposes as provided by this section, and the
method, manner, and time of payment of all funds proposed to be disbursed shall be first approved
or disapproved by the board. The board shall biennially make its report to the governor and the
legislature on or before November 15 of each even-numbered year. The expenses of the board
shall be paid by the state from the funds raised pursuant to this section.
    Subd. 3. Commissioner may acquire property. Whenever the commissioner of Iron
Range resources and rehabilitation has made determinations required by subdivision 1 and has
determined that distress and unemployment exists or may exist in the future in any county by
reason of the removal of the natural resources or a possible limited use thereof in the future and
the decrease in employment resulting therefrom and deems that the acquirement of real estate
or personal property is necessary and proper in the development of the remaining resources, the
commissioner may acquire such property or interests therein by gift, purchase, or lease. The
commissioner may purchase insurance to protect any property acquired from loss or damage by
fire, or to protect the commissioner from any liability the commissioner may incur by reason
of ownership of the property, or both. If after such property is acquired it is necessary in the
judgment of the commissioner to acquire a right-of-way for access to projects operated on
property acquired by gift, purchase, or lease, said right-of-way may be acquired by condemnation
in the manner provided by law. If the owner or operator of an iron mine or related production
or beneficiation facilities discontinues the operation of the mine or facilities for any reason, the
commissioner may acquire any or all of the mine lands and related facilities by gift, purchase,
lease, or condemnation in the manner provided in chapter 117.
    Subd. 4. Commissioner may accept grants and conveyances. Whenever property has been
granted and conveyed to the state of Minnesota in accordance with an agreement made by the
commissioner of Iron Range resources and rehabilitation and the commissioner of administration
for the necessary and proper development of the remaining resources of any distressed county,
such grants, and conveyances or leases are hereby accepted in accordance with the terms and
conditions thereof.
    Subd. 5. Commissioner may lease property. In order to carry out the terms and provisions
of this section, the commissioner of Iron Range resources and rehabilitation and the commissioner
of administration may lease any property acquired hereunder for a term not to exceed 20 years
upon such terms as they may determine, provided that such property shall not be leased to any
person in such a manner as to constitute a direct contribution of working capital to a business
enterprise. Such lease may provide that in the event the property is ever sold by the state to such
lessee, the lessee may obtain a credit on the purchase price covering the rentals paid under the
lease or any renewals thereof and that said real estate can be conveyed by the commissioner of
Iron Range resources and rehabilitation and the commissioner of administration and the said
commissioners are hereby authorized to make such conveyances.
    Subd. 6. Private entity participation. The board may acquire an equity interest in any
project for which it provides funding. The commissioner may establish, participate in the
management of, and dispose of the assets of charitable foundations and nonprofit corporations
associated with any project for which it provides funding, including specifically, but without
limitation, a corporation within the meaning of section 317A.011, subdivision 6.
    Subd. 7. Project area development authority. (a) In addition to the other powers granted in
this section and other law and notwithstanding any limitations contained in subdivision 5, the
commissioner, for purposes of fostering economic development and tourism within the Giants
Ridge Recreation Area or the Ironworld Discovery Center area, may spend any money made
available to the agency under section 298.28 to acquire real or personal property or interests
therein by gift, purchase, or lease and may convey by lease, sale, or other means of conveyance
or commitment any or all property interests owned or administered by the commissioner within
such areas.
(b) In furtherance of development of the Giants Ridge Recreation Area or the Ironworld
Discovery Center area, the commissioner may establish and participate in charitable foundations
and nonprofit corporations, including a corporation within the meaning of section 317A.011,
subdivision 6
.
(c) The term "Giants Ridge recreation area" refers to an economic development project area
established by the commissioner in furtherance of the powers delegated in this section within
St. Louis County in the western portions of the town of White and in the eastern portion of
the westerly, adjacent, unorganized township.
(d) The term "Ironworld Discovery Center area" refers to an economic development and
tourism promotion project area established by the commissioner in furtherance of the powers
delegated in this section within St. Louis County in the south portion of the town of Balkan.
    Subd. 8. Spending priority. In making or approving any expenditures on programs or
projects, the commissioner and the board shall give the highest priority to programs and projects
that target relief to those areas of the taconite assistance area as defined in section 273.1341,
that have the largest percentages of job losses and population losses directly attributable to
the economic downturn in the taconite industry since the 1980s. The commissioner and the
board shall compare the 1980 population and employment figures with the 2000 population and
employment figures, and shall specifically consider the job losses in 2000 and 2001 resulting from
the closure of LTV Steel Mining Company, in making or approving expenditures consistent with
this subdivision, as well as the areas of residence of persons who suffered job loss for which relief
is to be targeted under this subdivision. The commissioner may lease, for a term not exceeding 50
years and upon the terms determined by the commissioner and approved by the board, surface
and mineral interests owned or acquired by the state of Minnesota acting by and through the
office of the commissioner of Iron Range resources and rehabilitation within those portions of
the taconite assistance area affected by the closure of the LTV Steel Mining Company facility
near Hoyt Lakes. The payments and royalties from these leases must be deposited into the fund
established in section 298.292. This subdivision supersedes any other conflicting provisions
of law and does not preclude the commissioner and the board from making expenditures for
programs and projects in other areas.
    Subd. 9. Economic development and trade promotion. In the promotion of tourism, trade,
and economic development, the commissioner may expend money made available to the agency
under section 298.28 in the same manner as private persons, firms, corporations, and associations
make expenditures for these purposes. An expenditure for food, lodging, or travel is not governed
by the travel rules of the commissioner of employee relations.
    Subd. 10. Sale or privatization of functions. The commissioner of Iron Range resources
and rehabilitation may not sell or privatize the Ironworld Discovery Center or Giants Ridge Golf
and Ski Resort without prior approval by a majority vote of the board.
    Subd. 11. Budgeting. The commissioner of Iron Range resources and rehabilitation shall
annually prepare a budget for operational expenditures, programs, and projects, and submit it
to the Iron Range Resources and Rehabilitation Board and the governor for approval. After
the budget is approved by the board and the governor, the commissioner may spend money in
accordance with the approved budget.
History: 1941 c 544 s 4; 1943 c 590 s 4; 1949 c 739 s 22; 1951 c 713 s 31; 1957 c 882 s 1;
Ex1959 c 49 s 1; 1969 c 399 s 43,49; 1969 c 1129 art 8 s 9; art 10 s 2; 1971 c 25 s 59; 1973 c
613 s 1; 1974 c 406 s 67; 1975 c 271 s 6; 1977 c 305 s 34; 1977 c 423 art 10 s 8,9; 1980 c 607
art 7 s 3; 1983 c 301 s 183; 1986 c 444; 1Sp1986 c 3 art 2 s 49; 1987 c 404 s 162; 1988 c 719
art 19 s 16; 1995 c 224 s 92; 1996 c 452 s 34; 1997 c 200 art 1 s 71; 2Sp1997 c 3 s 14; 1998 c
351 s 4; 1998 c 389 art 10 s 5; 1999 c 223 art 2 s 42,43; 1999 c 243 art 5 s 33; 2001 c 149 s 1;
1Sp2001 c 5 art 6 s 14,15; 2002 c 380 art 2 s 15,16; 1Sp2003 c 21 art 11 s 16,17; 2004 c 150 s 1;
2004 c 289 s 1; 1Sp2005 c 1 art 4 s 88; 2006 c 281 art 4 s 14-16
298.221 RECEIPTS FROM CONTRACTS; APPROPRIATION.
(a) Except as provided in paragraph (c), all money paid to the state of Minnesota pursuant to
the terms of any contract entered into by the state under authority of section 298.22 and any fees
which may, in the discretion of the commissioner of Iron Range resources and rehabilitation, be
charged in connection with any project pursuant to that section as amended, shall be deposited in
the state treasury to the credit of the Iron Range Resources and Rehabilitation Board account in
the special revenue fund and are hereby appropriated for the purposes of section 298.22.
(b) Notwithstanding section 16A.013, merchandise may be accepted by the commissioner of
the Iron Range Resources and Rehabilitation Board for payment of advertising contracts if the
commissioner determines that the merchandise can be used for special event prizes or mementos
at facilities operated by the board. Nothing in this paragraph authorizes the commissioner or a
member of the board to receive merchandise for personal use.
(c) All fees charged by the commissioner in connection with public use of the state-owned
ski and golf facilities at the Giants Ridge Recreation Area and all other revenues derived by the
commissioner from the operation or lease of those facilities and from the lease, sale, or other
disposition of undeveloped lands at the Giants Ridge Recreation Area must be deposited into an
Iron Range Resources and Rehabilitation Board account that is created within the state enterprise
fund. All funds deposited in the enterprise fund account are appropriated to the commissioner to
be expended, subject to approval of a majority of the board, as follows:
(1) to pay costs associated with the construction, equipping, operation, repair, or
improvement of the Giants Ridge Recreation Area facilities or lands;
(2) to pay principal, interest and associated bond issuance, reserve, and servicing costs
associated with the financing of the facilities; and
(3) to pay the costs of any other project authorized under section 298.22.
History: 1961 c 215 s 1; 1973 c 613 s 2; 1975 c 271 s 6; 1992 c 513 art 3 s 51; 1998 c 389
art 10 s 6; 2003 c 112 art 2 s 50; 2004 c 275 s 1
298.2211 FINANCING ACTIVITIES.
    Subdivision 1. Purpose; grant of authority. In order to accomplish the legislative purposes
specified in sections 469.142 to 469.165 and chapter 462C, within the taconite assistance area as
defined in section 273.1341, the commissioner of Iron Range resources and rehabilitation may
exercise the following powers: (1) all powers conferred upon a rural development financing
authority under sections 469.142 to 469.149; (2) all powers conferred upon a city under chapter
462C; (3) all powers conferred upon a municipality or a redevelopment agency under sections
469.152 to 469.165; (4) all powers provided by sections 469.142 to 469.151 to further any of the
purposes and objectives of chapter 462C and sections 469.152 to 469.165; (5) apply for, borrow,
receive, and expend grant and loan money made available from federal sources and from federally
funded programs; and (6) all powers conferred upon a municipality or an authority under sections
469.174 to 469.177, 469.178, except subdivision 2 thereof, and 469.179, subject to compliance
with the provisions of section 469.175, subdivisions 1, 2, and 3; provided that any tax increments
derived by the commissioner from the exercise of this authority may be used only to finance or
pay premiums or fees for insurance, letters of credit, or other contracts guaranteeing the payment
when due of net rentals under a project lease or the payment of principal and interest due on or
repurchase of bonds issued to finance a project or program, to accumulate and maintain reserves
securing the payment when due on bonds issued to finance a project or program, or to provide
an interest rate reduction program pursuant to section 469.012, subdivision 7. Tax increments
and earnings thereon remaining in any bond reserve account after payment or discharge of any
bonds secured thereby shall be used within one year thereafter in furtherance of this section
or returned to the county auditor of the county in which the tax increment financing district
is located. If returned to the county auditor, the county auditor shall immediately allocate the
amount among all government units which would have shared therein had the amount been
received as part of the other ad valorem taxes on property in the district most recently paid, in
the same proportions as other taxes were distributed, and shall immediately distribute it to the
government units in accordance with the allocation.
    Subd. 2. Area of operation. Projects undertaken, developed, or financed pursuant to this
section shall be located within the taconite assistance area defined in section 273.1341.
    Subd. 3. Project approval. All projects authorized by this section shall be submitted by the
commissioner to the Iron Range Resources and Rehabilitation Board, which shall recommend
approval or disapproval or modification of the projects. Prior to the commencement of a project
involving the exercise by the commissioner of any authority of sections 469.174 to 469.179, the
governing body of each municipality in which any part of the project is located and the county
board of any county containing portions of the project not located in an incorporated area shall
by majority vote approve or disapprove the project. Any project, as so approved by the board
and the applicable governing bodies, if any, together with detailed information concerning the
project, its costs, the sources of its funding, and the amount of any bonded indebtedness to be
incurred in connection with the project, shall be transmitted to the governor, who shall approve,
disapprove, or return the proposal for additional consideration within 30 days of receipt. No
project authorized under this section shall be undertaken, and no obligations shall be issued and
no tax increments shall be expended for a project authorized under this section until the project
has been approved by the governor.
    Subd. 3a.[Repealed, 1995 c 224 s 126]
    Subd. 4. Obligations not state debt. Bonds and other obligations issued by the commissioner
pursuant to this section, along with all related documents, are not general obligations of the state
of Minnesota and are not subject to sections 16C.03, subdivision 4, and 16C.05. The full faith and
credit and taxing powers of the state are not and may not be pledged for the payment of these
bonds or other obligations, and no person has the right to compel the levy of any state tax for their
payment or to compel the appropriation of any moneys of the state for their payment except as
specifically provided herein. These bonds and obligations shall be payable solely from the property
and moneys derived by the commissioner pursuant to the authority granted in this section that the
commissioner pledges to their payment. The legislature intends not to appropriate money from the
general fund to pay for these bonds or other obligations. All these bonds or other obligations must
contain the provisions of this subdivision or words to the same effect on their face.
    Subd. 5. Appropriation of moneys. There is appropriated to the commissioner for the
purpose of carrying out any project or program undertaken pursuant to this section, all property
and moneys derived by the commissioner through the exercise of the powers conferred by this
section. The commissioner may pledge all the property or moneys for the security or payment of
bonds or other obligations issued or entered into by the commissioner for this purpose.
    Subd. 6. Fee setting. Fees for admission to or use of facilities operated by the Iron Range
Resources and Rehabilitation Board that have been established according to prevailing market
conditions and to recover operating costs need not be set by rule.
History: 1983 c 357 s 1; 1Sp1985 c 13 s 313; 1986 c 444; 1986 c 465 art 1 s 2; 1987 c
291 s 213,214; 1989 c 209 art 2 s 33; 1989 c 355 s 1; 1990 c 610 art 2 s 6; 1993 c 369 s 108;
1994 c 632 art 4 s 70; 1998 c 386 art 2 s 82; 1Sp2001 c 5 art 6 s 16; 2003 c 127 art 11 s 6;
1Sp2003 c 21 art 11 s 18,19
298.2212 INVESTMENT OF FUNDS.
All funds credited to the Iron Range Resources and Rehabilitation Board account in the
special revenue fund for the purposes of section 298.22 must be invested pursuant to law. The net
interest and dividends from the investments are included and become part of the funds available
for purposes of section 298.22.
History: 1Sp1985 c 14 art 10 s 12

NORTHEAST MINNESOTA ECONOMIC DEVELOPMENT FUND

298.2213 NORTHEAST MINNESOTA ECONOMIC DEVELOPMENT FUND.
    Subdivision 1. Appropriation. $4,000,000 is appropriated from the general fund to the
commissioner of Iron Range resources and rehabilitation. $300,000 of this appropriation must be
used in the same manner as money appropriated under section 298.17.
    Subd. 2. Purpose of expenditures. The money appropriated in this section may be used for
projects and programs for which technological and economic feasibility have been demonstrated
and that have the following purposes:
(1) creating and maintaining productive, permanent, skilled employment, including
employment in technologically innovative businesses; and
(2) encouraging diversification of the economy and promoting the development of minerals,
alternative energy sources utilizing indigenous fuels, forestry, small business, and tourism.
    Subd. 3. Use of money. The money appropriated under this section may be used to provide
loans, loan guarantees, interest buy-downs, and other forms of participation with private sources
of financing, provided that a loan to a private enterprise must be for a principal amount not to
exceed one-half of the cost of the project for which financing is sought, and the rate of interest on
a loan must be no less than the lesser of eight percent or the rate of interest that is three percentage
points less than a full faith and credit obligation of the United States government of comparable
maturity, at the time that the loan is approved.
Money appropriated in this section must be expended only in or for the benefit of the taconite
assistance area defined in section 273.1341, and as otherwise provided in this section.
    Subd. 4. Project approval. The board and commissioner shall by August 1 each year
prepare a list of projects to be funded from the money appropriated in this section with necessary
supporting information including descriptions of the projects, plans, and cost estimates. A project
must not be approved by the board unless it finds that:
(1) the project will materially assist, directly or indirectly, the creation of additional
long-term employment opportunities;
(2) the prospective benefits of the expenditure exceed the anticipated costs; and
(3) in the case of assistance to private enterprise, the project will serve a sound business
purpose.
Each project must be approved by a majority of the Iron Range Resources and Rehabilitation
Board members and the commissioner of Iron Range resources and rehabilitation. The list of
projects must be submitted to the governor, who shall, by November 15 of each year, approve,
disapprove, or return for further consideration, each project. The money for a project may be
spent only upon approval of the project by the governor. The board may submit supplemental
projects for approval at any time.
    Subd. 5. Advisory committees. Before submission to the board of a proposal for a project
for expenditure of money appropriated under this section, the commissioner of Iron Range
resources and rehabilitation shall appoint a technical advisory committee consisting of at least
seven persons who are knowledgeable in areas related to the objectives of the proposal. If the
project involves investment in a scientific research proposal, at least four of the committee
members must be knowledgeable in the specific scientific research area relating to the project.
Members of the committees must be compensated as provided in section 15.059, subdivision 3.
The board shall not act on a proposal until it has received the evaluation and recommendations of
the technical advisory committee.
    Subd. 6. Use of repayments and earnings. Principal and interest received in repayment
of loans made under this section must be deposited in the state treasury and are appropriated
to the board for the purposes of this section.
History: 1987 c 386 art 8 s 1; 1988 c 719 art 19 s 17; 1993 c 369 s 109; 1998 c 389 art 10 s
7; 1999 c 223 art 2 s 44; 1Sp2001 c 5 art 6 s 17; 1Sp2003 c 21 art 11 s 20; 2006 c 281 art 4 s 17

IRON RANGE HIGHER EDUCATION

298.2214 IRON RANGE HIGHER EDUCATION.
    Subdivision 1. Creation of committee; purpose. A committee is created to advise the
commissioner of Iron Range resources and rehabilitation on providing higher education programs
in the taconite assistance area defined in section 273.1341. The committee is subject to section
15.059.
    Subd. 2. Membership. The members of the committee shall consist of:
(1) one member appointed by the governor;
(2) one member appointed by the president of the University of Minnesota;
(3) two members appointed by the commissioner of Iron Range resources and rehabilitation;
and
(4) the commissioner of Iron Range resources and rehabilitation.
    Subd. 3. Advisory function. The committee shall advise the commissioner regarding
development of a contract with the state university system. The contract would require the system
to provide courses within the taconite assistance area defined in section 273.1341.
    Subd. 4. Contract. The commissioner shall prepare a contract as described in subdivision
3 and submit it to the committee for review and recommendations for approval, disapproval,
or modifications. At the conclusion of the review process, the commissioner shall enter into a
contract with the state university system to provide the services.
    Subd. 5. System approval. A program may not be offered under a contract executed
according to this section unless it is approved by the board of the system offering the program.
History: 1991 c 356 art 4 s 1; 1995 c 212 art 3 s 52; 1Sp2001 c 5 art 6 s 18; 1Sp2003 c
21 art 11 s 21,22

TACONITE ENVIRONMENTAL

PROTECTION FUND ACT

298.222 CITATION.
Sections 298.222 to 298.226 and Laws 1977, chapter 423, article 10, section 22 shall be
known as the Taconite Environmental Protection Fund Act of 1977.
History: 1977 c 423 art 10 s 19
298.223 TACONITE AREA ENVIRONMENTAL PROTECTION FUND.
    Subdivision 1. Creation; purposes. A fund called the taconite environmental protection
fund is created for the purpose of reclaiming, restoring and enhancing those areas of northeast
Minnesota located within the taconite assistance area defined in section 273.1341, that are
adversely affected by the environmentally damaging operations involved in mining taconite and
iron ore and producing iron ore concentrate and for the purpose of promoting the economic
development of northeast Minnesota. The taconite environmental protection fund shall be used
for the following purposes:
(a) to initiate investigations into matters the Iron Range Resources and Rehabilitation Board
determines are in need of study and which will determine the environmental problems requiring
remedial action;
(b) reclamation, restoration, or reforestation of minelands not otherwise provided for by
state law;
(c) local economic development projects but only if those projects are approved by the board,
and public works, including construction of sewer and water systems located within the taconite
assistance area defined in section 273.1341;
(d) monitoring of mineral industry related health problems among mining employees.
    Subd. 2. Administration. The taconite area environmental protection fund shall be
administered by the commissioner of the Iron Range Resources and Rehabilitation Board. The
commissioner shall by September 1 of each year submit to the board a list of projects to be funded
from the taconite area environmental protection fund, with such supporting information including
description of the projects, plans, and cost estimates as may be necessary. Upon approval by a
majority of the members of the Iron Range Resources and Rehabilitation Board, this list shall be
submitted to the governor by November 1 of each year. By December 1 of each year, the governor
shall approve or disapprove, or return for further consideration, each project. Funds for a project
may be expended only upon approval of the project by the board and governor. The commissioner
may submit supplemental projects to the board and governor for approval at any time.
    Subd. 3. Appropriation. There is annually appropriated to the commissioner of Iron Range
resources and rehabilitation taconite area environmental protection funds necessary to carry out
approved projects and programs and the funds necessary for administration of this section. Annual
administrative costs, not including detailed engineering expenses for the projects, shall not exceed
five percent of the amount annually expended from the fund.
Funds for the purposes of this section are provided by section 298.28, subdivision 11, relating
to the taconite area environmental protection fund.
History: 1977 c 423 art 10 s 20; 1980 c 607 art 7 s 4; 1Sp1981 c 4 art 2 s 31; 1Sp1985 c 14
art 10 s 13; 1988 c 719 art 19 s 18; 1993 c 369 s 110; 1995 c 224 s 93; 1999 c 223 art 2 s 45;
1Sp2001 c 5 art 6 s 19; 1Sp2003 c 21 art 11 s 23; 2005 c 152 art 1 s 4; 2006 c 281 art 4 s 18,19
298.224 INVESTMENT OF FUNDS; INCOME.
The fund established by section 298.223 shall be invested pursuant to law and the net interest
and dividends arising from the investment shall be included and become part of the fund.
History: 1977 c 423 art 10 s 21
298.225 APPROPRIATION.
    Subdivision 1. Guaranteed distribution. (a) The distribution of the taconite production
tax as provided in section 298.28, subdivisions 3 to 5, 6, paragraph (b), 7, and 8, shall equal
the lesser of the following amounts:
(1) the amount distributed pursuant to this section and section 298.28, with respect to 1983
production if the production for the year prior to the distribution year is no less than 42,000,000
taxable tons. If the production is less than 42,000,000 taxable tons, the amount of the distributions
shall be reduced proportionately at the rate of two percent for each 1,000,000 tons, or part of
1,000,000 tons by which the production is less than 42,000,000 tons; or
(2)(i) for the distributions made pursuant to section 298.28, subdivisions 4, paragraphs (b)
and (c), and 6, paragraph (c), 31.2 percent of the amount distributed pursuant to this section and
section 298.28, with respect to 1983 production;
(ii) for the distributions made pursuant to section 298.28, subdivision 5, paragraphs (b)
and (d), 75 percent of the amount distributed pursuant to this section and section 298.28, with
respect to 1983 production.
(b) The distribution of the taconite production tax as provided in section 298.28, subdivision
2
, shall equal the following amount:
(1) if the production for the year prior to the distribution year is at least 42,000,000 taxable
tons, the amount distributed pursuant to this section and section 298.28 with respect to 1999
production; or
(2) if the production for the year prior to the distribution year is less than 42,000,000 taxable
tons, the amount distributed pursuant to this section and section 298.28 with respect to 1999
production, reduced proportionately at the rate of two percent for each 1,000,000 tons or part of
1,000,000 tons by which the production is less than 42,000,000 tons.
    Subd. 2. Funding guaranteed distribution level. The money necessary for funding the
difference between the initial distribution made pursuant to section 298.28 and the amount
guaranteed in subdivision 1 is appropriated in equal proportions from the initial current year
distributions to the taconite environmental protection fund and to the Douglas J. Johnson economic
protection trust pursuant to section 298.28. If the initial distributions to the taconite environmental
protection fund and the Douglas J. Johnson economic protection trust are insufficient to fund the
difference, the commissioner of Iron Range resources and rehabilitation shall make the payments
of any remaining difference from the corpus of the taconite environmental protection fund and
the corpus of the Douglas J. Johnson economic protection trust fund in equal proportions as
directed by the commissioner of revenue.
If a taconite producer ceases beneficiation operations permanently and is required by a
special law to make bond payments for a school district, the Douglas J. Johnson economic
protection trust fund shall assume the payments of the taconite producer if the producer ceases to
make the needed payments. The commissioner of Iron Range resources and rehabilitation shall
make these school bond payments from the corpus of the Douglas J. Johnson economic protection
trust fund in the amounts certified by the commissioner of revenue.
History: 1977 c 423 art 10 s 23; 1Sp1981 c 1 art 10 s 13; 1982 c 523 art 30 s 1; 2Sp1982
c 2 s 1; 1984 c 502 art 7 s 13; 1985 c 300 s 22; 1Sp1985 c 14 art 10 s 14; 1986 c 441 s 10;
1Sp1986 c 3 art 2 s 37; 1998 c 389 art 10 s 8; 1Sp2001 c 5 art 6 s 20; 2002 c 377 art 8 s
5; 2003 c 127 art 11 s 12
298.226 [Repealed, 1996 c 310 s 1]

TACONITE ECONOMIC DEVELOPMENT FUND

298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
    An amount equal to that distributed pursuant to each taconite producer's taxable production
and qualifying sales under section 298.28, subdivision 9a, shall be held by the Iron Range
Resources and Rehabilitation Board in a separate taconite economic development fund for each
taconite and direct reduced ore producer. Money from the fund for each producer shall be
released by the commissioner after review by a joint committee consisting of an equal number
of representatives of the salaried employees and the nonsalaried production and maintenance
employees of that producer. The District 11 director of the United States Steelworkers of
America, on advice of each local employee president, shall select the employee members. In
nonorganized operations, the employee committee shall be elected by the nonsalaried production
and maintenance employees. The review must be completed no later than six months after the
producer presents a proposal for expenditure of the funds to the committee. The funds held
pursuant to this section may be released only for acquisition of plant and stationary mining
equipment and facilities for the producer or for research and development in Minnesota on new
mining, or taconite, iron, or steel production technology, but only if the producer provides a
matching expenditure to be used for the same purpose of at least 50 percent of the distribution
based on 14.7 cents per ton beginning with distributions in 2002. Effective for proposals for
expenditures of money from the fund beginning May 26, 2007, the commissioner may not
release the funds before the next scheduled meeting of the board. If the board rejects a proposed
expenditure, the funds must be deposited in the Taconite Environmental Protection Fund under
sections 298.222 to 298.225. If a producer uses money which has been released from the fund
prior to May 26, 2007 to procure haulage trucks, mobile equipment, or mining shovels, and the
producer removes the piece of equipment from the taconite tax relief area defined in section
273.134 within ten years from the date of receipt of the money from the fund, a portion of the
money granted from the fund must be repaid to the taconite economic development fund. The
portion of the money to be repaid is 100 percent of the grant if the equipment is removed from the
taconite tax relief area within 12 months after receipt of the money from the fund, declining by
ten percent for each of the subsequent nine years during which the equipment remains within
the taconite tax relief area. If a taconite production facility is sold after operations at the facility
had ceased, any money remaining in the fund for the former producer may be released to the
purchaser of the facility on the terms otherwise applicable to the former producer under this
section. If a producer fails to provide matching funds for a proposed expenditure within six
months after the commissioner approves release of the funds, the funds are available for release
to another producer in proportion to the distribution provided and under the conditions of this
section. Any portion of the fund which is not released by the commissioner within two years of its
deposit in the fund shall be divided between the taconite environmental protection fund created in
section 298.223 and the Douglas J. Johnson economic protection trust fund created in section
298.292 for placement in their respective special accounts. Two-thirds of the unreleased funds
shall be distributed to the taconite environmental protection fund and one-third to the Douglas J.
Johnson economic protection trust fund.
History: 1992 c 511 art 9 s 8; 1993 c 375 art 16 s 1; 1994 c 587 art 6 s 2; 1995 c 264 art
7 s 2; 1996 c 471 art 12 s 1; 1Sp2001 c 5 art 6 s 21; 2003 c 127 art 11 s 12; 2006 c 259 art
12 s 9; 2007 c 135 art 5 s 1

TAX ON TACONITE

AND IRON SULPHIDES

298.23 [Repealed, 1998 c 389 art 10 s 23]
298.24 TAX ON TACONITE AND IRON SULPHIDES.
    Subdivision 1. Imposed; calculation. (a) For concentrate produced in 2001, 2002, and 2003,
there is imposed upon taconite and iron sulphides, and upon the mining and quarrying thereof, and
upon the production of iron ore concentrate therefrom, and upon the concentrate so produced, a tax
of $2.103 per gross ton of merchantable iron ore concentrate produced therefrom. For concentrates
produced in 2005, the tax rate is the same rate imposed for concentrates produced in 2004.
(b) For concentrates produced in 2006 and subsequent years, the tax rate shall be equal to the
preceding year's tax rate plus an amount equal to the preceding year's tax rate multiplied by the
percentage increase in the implicit price deflator from the fourth quarter of the second preceding
year to the fourth quarter of the preceding year. "Implicit price deflator" means the implicit
price deflator for the gross domestic product prepared by the Bureau of Economic Analysis of
the United States Department of Commerce.
(c) On concentrates produced in 1997 and thereafter, an additional tax is imposed equal to
three cents per gross ton of merchantable iron ore concentrate for each one percent that the iron
content of the product exceeds 72 percent, when dried at 212 degrees Fahrenheit.
(d) The tax shall be imposed on the average of the production for the current year and the
previous two years. The rate of the tax imposed will be the current year's tax rate. This clause
shall not apply in the case of the closing of a taconite facility if the property taxes on the facility
would be higher if this clause and section 298.25 were not applicable.
(e) If the tax or any part of the tax imposed by this subdivision is held to be unconstitutional,
a tax of $2.103 per gross ton of merchantable iron ore concentrate produced shall be imposed.
(f) Consistent with the intent of this subdivision to impose a tax based upon the weight of
merchantable iron ore concentrate, the commissioner of revenue may indirectly determine the
weight of merchantable iron ore concentrate included in fluxed pellets by subtracting the weight of
the limestone, dolomite, or olivine derivatives or other basic flux additives included in the pellets
from the weight of the pellets. For purposes of this paragraph, "fluxed pellets" are pellets produced
in a process in which limestone, dolomite, olivine, or other basic flux additives are combined with
merchantable iron ore concentrate. No subtraction from the weight of the pellets shall be allowed
for binders, mineral and chemical additives other than basic flux additives, or moisture.
(g)(1) Notwithstanding any other provision of this subdivision, for the first two years of a
plant's commercial production of direct reduced ore, no tax is imposed under this section. As used
in this paragraph, "commercial production" is production of more than 50,000 tons of direct
reduced ore in the current year or in any prior year, "noncommercial production" is production of
50,000 tons or less of direct reduced ore in any year, and "direct reduced ore" is ore that results in
a product that has an iron content of at least 75 percent. For the third year of a plant's commercial
production of direct reduced ore, the rate to be applied to direct reduced ore is 25 percent of the
rate otherwise determined under this subdivision. For the fourth commercial production year, the
rate is 50 percent of the rate otherwise determined under this subdivision; for the fifth commercial
production year, the rate is 75 percent of the rate otherwise determined under this subdivision; and
for all subsequent commercial production years, the full rate is imposed.
(2) Subject to clause (1), production of direct reduced ore in this state is subject to the tax
imposed by this section, but if that production is not produced by a producer of taconite or iron
sulfides, the production of taconite or iron sulfides consumed in the production of direct reduced
iron in this state is not subject to the tax imposed by this section on taconite or iron sulfides.
(3) Notwithstanding any other provision of this subdivision, no tax is imposed on direct
reduced ore under this section during the facility's noncommercial production of direct reduced
ore. The taconite or iron sulphides consumed in the noncommercial production of direct reduced
ore is subject to the tax imposed by this section on taconite and iron sulphides. Three-year
average production of direct reduced ore does not include production of direct reduced ore in
any noncommercial year. Three-year average production for a direct reduced ore facility that has
noncommercial production is the average of the commercial production of direct reduced ore
for the current year and the previous two commercial years.
    Subd. 2. Imposition and calculation of additional tailings tax. There is hereby imposed
upon taconite and iron sulphides, and upon the mining and quarrying thereof, and upon the
production of iron ore concentrate therefrom, and upon the tailings so produced an additional tax
of 10 cents per 2,000 pounds of tailings produced. For the purposes of this subdivision tailings
mean the solid and liquid waste materials resulting from the beneficiation process.
The tax imposed by this subdivision shall only apply to those tailings from a taconite facility
which are not deposited on land in accordance with permits issued by the Pollution Control
Agency and the Department of Natural Resources.
The proceeds of the tax imposed by this subdivision shall be deposited in the general fund of
the state.
    Subd. 3.[Repealed, 2003 c 127 art 11 s 13]
    Subd. 4.[Repealed, 1992 c 511 art 9 s 33]
History: 1941 c 375 s 2; 1947 c 93 s 2; 1951 c 613 s 1; 1969 c 1156 s 1; 1973 c 123 art 5 s
7; 1977 c 423 art 10 s 10,11; 1979 c 303 art 10 s 13; 1Sp1981 c 1 art 10 s 14; 1982 c 523 art 30 s
2; 1984 c 502 art 7 s 14,15,22 subd 2; 1984 c 655 art 2 s 23 subd 1; 1Sp1985 c 14 art 10 s 15;
1986 c 441 s 11; 1Sp1986 c 1 art 4 s 43; 1987 c 268 art 9 s 37; 1990 c 604 art 10 s 18; 1992 c 511
art 9 s 9; 1994 c 587 art 6 s 3; 1995 c 264 art 7 s 3; 1996 c 471 art 12 s 2; 1997 c 231 art 8 s
7; 1998 c 389 art 10 s 9; 1999 c 243 art 9 s 1; 2000 c 490 art 13 s 17; 1Sp2001 c 5 art 6 s 22;
2005 c 151 art 8 s 18; 1Sp2005 c 3 art 1 s 27
298.241 [Repealed, 1977 c 423 art 10 s 31]
298.242 [Repealed, 1975 c 437 art 11 s 7]
298.243 [Repealed, 1977 c 423 art 10 s 31]
298.244 [Repealed, 1996 c 310 s 1]
298.25 TAXES ADDITIONAL TO OCCUPATION TAX; IN LIEU OF OTHER TAXES.
The taxes imposed under section 298.24 shall be in addition to the occupation tax imposed
upon the business of mining and producing iron ore. Except as herein otherwise provided, such
taxes shall be in lieu of all other taxes upon such taconite, iron sulphides, and direct reduced ore or
the lands in which they are contained, or upon the mining or quarrying thereof, or the production
of concentrate or direct reduced ore therefrom, or upon the concentrate or direct reduced ore
produced, or upon the machinery, equipment, tools, supplies and buildings used in such mining,
quarrying or production, or upon the lands occupied by, or used in connection with, such mining,
quarrying or production facilities. If electric or steam power for the mining, transportation
or concentration of such taconite, concentrates or direct reduced ore produced therefrom is
generated in plants principally devoted to the generation of power for such purposes, the plants in
which such power is generated and all machinery, equipment, tools, supplies, transmission and
distribution lines used in the generation and distribution of such power, shall be considered to be
machinery, equipment, tools, supplies and buildings used in the mining, quarrying, or production
of taconite, taconite concentrates or direct reduced ore within the meaning of this section. If part
of the power generated in such a plant is used for purposes other than the mining or concentration
of taconite or direct reduced ore or the transportation or loading of taconite, the concentrates
thereof or direct reduced ore, a proportionate share of the value of such generating facilities, equal
to the proportion that the power used for such other purpose bears to the generating capacity of the
plant, shall be subject to the general property tax in the same manner as other property; provided,
power generated in such a plant and exchanged for an equivalent amount of power which is used
for the mining, transportation, or concentration of such taconite, concentrates or direct reduced
ore produced therefrom, shall be considered as used for such purposes within the meaning of
this section. Nothing herein shall prevent the assessment and taxation of the surface of reserve
land containing taconite and not occupied by such facilities or used in connection therewith at
the value thereof without regard to the taconite or iron sulphides therein, nor the assessment and
taxation of merchantable iron ore or other minerals, or iron-bearing materials other than taconite
or iron sulphides in such lands in the manner provided by law, nor the assessment and taxation of
facilities used in producing sulphur or sulphur products from iron sulphide concentrates, or in
refining such sulphur products, under the general property tax laws. Nothing herein shall except
from general taxation or from taxation as provided by other laws any property used for residential
or townsite purposes, including utility services thereto.
History: 1941 c 375 s 3; 1947 c 93 s 3; 1955 c 729 s 1; 1957 c 363 s 1; 1961 c 450 s 1;
Ex1971 c 31 art 30 s 2; 1977 c 423 art 10 s 13; 1987 c 268 art 9 s 38; 1995 c 264 art 7 s 4
298.26 TAX ON UNMINED TACONITE AND IRON SULPHIDES.
In any year in which at least 1,000 tons of iron ore concentrate is not produced from any
40-acre tract or governmental lot containing taconite or iron sulphides, a tax may be assessed upon
the taconite or iron sulphides therein at the local tax rate prevailing in the taxing district and spread
against the net tax capacity of the taconite or iron sulphides, such net tax capacity to be determined
in accordance with existing laws. The amount of the tax spread under authority of this section by
reason of the taconite and iron sulphides in any tract of land shall not exceed $15 per acre.
History: 1941 c 375 s 4; 1947 c 93 s 4; 1977 c 423 art 10 s 14; 1988 c 719 art 5 s 84; 1989 c
329 art 13 s 20; 1Sp1989 c 1 art 2 s 11; 1994 c 587 art 5 s 16
298.27 COLLECTION AND PAYMENT OF TAX.
The taxes provided by section 298.24 shall be paid directly to each eligible county and the
Iron Range Resources and Rehabilitation Board. The commissioner of revenue shall notify each
producer of the amount to be paid each recipient prior to February 15. Every person subject to
taxes imposed by section 298.24 shall file a correct report covering the preceding year. The
report must contain the information required by the commissioner. The report shall be filed
by each producer on or before February 1. A remittance equal to 50 percent of the total tax
required to be paid hereunder shall be paid on or before February 24. A remittance equal to the
remaining total tax required to be paid hereunder shall be paid on or before August 24. On or
before February 25 and August 25, the county auditor shall make distribution of the payments
previously received by the county in the manner provided by section 298.28. Reports shall
be made and hearings held upon the determination of the tax in accordance with procedures
established by the commissioner of revenue. The commissioner of revenue shall have authority to
make reasonable rules as to the form and manner of filing reports necessary for the determination
of the tax hereunder, and by such rules may require the production of such information as may
be reasonably necessary or convenient for the determination and apportionment of the tax. All
the provisions of the occupation tax law with reference to the assessment and determination
of the occupation tax, including all provisions for appeals from or review of the orders of the
commissioner of revenue relative thereto, but not including provisions for refunds, are applicable
to the taxes imposed by section 298.24 except in so far as inconsistent herewith. If any person
subject to section 298.24 shall fail to make the report provided for in this section at the time and
in the manner herein provided, the commissioner of revenue shall in such case, upon information
possessed or obtained, ascertain the kind and amount of ore mined or produced and thereon find
and determine the amount of the tax due from such person. There shall be added to the amount
of tax due a penalty for failure to report on or before February 1, which penalty shall equal ten
percent of the tax imposed and be treated as a part thereof.
If any person responsible for making a tax payment at the time and in the manner herein
provided fails to do so, there shall be imposed a penalty equal to ten percent of the amount so due,
which penalty shall be treated as part of the tax due.
In the case of any underpayment of the tax payment required herein, there may be added and
be treated as part of the tax due a penalty equal to ten percent of the amount so underpaid.
A person having a liability of $120,000 or more during a calendar year must remit all
liabilities by means of a funds transfer as defined in section 336.4A-104, paragraph (a). The
funds transfer payment date, as defined in section 336.4A-401, must be on or before the date the
tax is due. If the date the tax is due is not a funds transfer business day, as defined in section
336.4A-105, paragraph (a), clause (4), the payment date must be on or before the funds transfer
business day next following the date the tax is due.
History: 1941 c 375 s 5; 1947 c 193 s 1; Ex1971 c 31 art 30 s 3; 1973 c 582 s 3; 1975 c 46 s
7; 1975 c 437 art 11 s 5; 1977 c 423 art 10 s 15; 1984 c 522 s 14; 1985 c 248 s 70; 1Sp1985 c 14
art 10 s 16; 1986 c 444; 1991 c 291 art 11 s 19; 1993 c 375 art 10 s 42; 1994 c 465 art 2 s 1;
2002 c 377 art 8 s 6; 2003 c 127 art 11 s 7
298.28 DIVISION AND DISTRIBUTION OF PROCEEDS.
    Subdivision 1.MS 1984 [Renumbered 298.28 subds 1-12]
    Subdivision 1. Distribution. The proceeds of the taxes collected under section 298.24,
except the tax collected under section 298.24, subdivision 2, shall, upon certification of the
commissioner of revenue, be allocated under subdivisions 2 to 12.
    Subd. 1a.[Repealed, 1977 c 423 art 10 s 30]
    Subd. 2.MS 1984 [Renumbered 298.28 subd 13]
    Subd. 2. City or town where quarried or produced. (a) 4.5 cents per gross ton of
merchantable iron ore concentrate, hereinafter referred to as "taxable ton," must be allocated to
the city or town in the county in which the lands from which taconite was mined or quarried
were located or within which the concentrate was produced. If the mining, quarrying, and
concentration, or different steps in either thereof are carried on in more than one taxing district,
the commissioner shall apportion equitably the proceeds of the part of the tax going to cities and
towns among such subdivisions upon the basis of attributing 40 percent of the proceeds of the tax
to the operation of mining or quarrying the taconite, and the remainder to the concentrating plant
and to the processes of concentration, and with respect to each thereof giving due consideration to
the relative extent of such operations performed in each such taxing district. The commissioner's
order making such apportionment shall be subject to review by the Tax Court at the instance of
any of the interested taxing districts, in the same manner as other orders of the commissioner.
(b) Four cents per taxable ton shall be allocated to cities and organized townships affected
by mining because their boundaries are within three miles of a taconite mine pit that has been
actively mined in at least one of the prior three years. If a city or town is located near more than
one mine meeting these criteria, the city or town is eligible to receive aid calculated from only
the mine producing the largest taxable tonnage. When more than one municipality qualifies for
aid based on one company's production, the aid must be apportioned among the municipalities
in proportion to their populations. Of the amounts distributed under this paragraph to each
municipality, one-half must be used for infrastructure improvement projects, and one-half must
be used for projects in which two or more municipalities cooperate. Each municipality that
receives a distribution under this paragraph must report annually to the Iron Range Resources
and Rehabilitation Board and the commissioner of Iron Range resources and rehabilitation on
the projects involving cooperation with other municipalities.
    Subd. 3.MS 1984 [Renumbered 298.23 subd 14]
    Subd. 3. Cities; towns. (a) 12.5 cents per taxable ton, less any amount distributed under
subdivision 8, and paragraph (b), must be allocated to the taconite municipal aid account to
be distributed as provided in section 298.282.
(b) An amount must be allocated to towns or cities that is annually certified by the county
auditor of a county containing a taconite tax relief area as defined in section 273.134, paragraph
(b)
, within which there is (1) an organized township if, as of January 2, 1982, more than 75
percent of the assessed valuation of the township consists of iron ore or (2) a city if, as of January
2, 1980, more than 75 percent of the assessed valuation of the city consists of iron ore.
(c) The amount allocated under paragraph (b) will be the portion of a township's or city's
certified levy equal to the proportion of (1) the difference between 50 percent of January 2, 1982,
assessed value in the case of a township and 50 percent of the January 2, 1980, assessed value in
the case of a city and its current assessed value to (2) the sum of its current assessed value plus the
difference determined in (1), provided that the amount distributed shall not exceed $55 per capita
in the case of a township or $75 per capita in the case of a city. For purposes of this limitation,
population will be determined according to the 1980 decennial census conducted by the United
States Bureau of the Census. If the current assessed value of the township exceeds 50 percent
of the township's January 2, 1982, assessed value, or if the current assessed value of the city
exceeds 50 percent of the city's January 2, 1980, assessed value, this paragraph shall not apply.
For purposes of this paragraph, "assessed value," when used in reference to years other than 1980
or 1982, means the appropriate net tax capacities multiplied by 10.2.
    Subd. 4. School districts. (a) 17.15 cents per taxable ton plus the increase provided in
paragraph (d) must be allocated to qualifying school districts to be distributed, based upon the
certification of the commissioner of revenue, under paragraphs (b) and (c), except as otherwise
provided in paragraph (f).
(b) 3.43 cents per taxable ton must be distributed to the school districts in which the lands
from which taconite was mined or quarried were located or within which the concentrate was
produced. The distribution must be based on the apportionment formula prescribed in subdivision
2.
(c)(i) 13.72 cents per taxable ton, less any amount distributed under paragraph (e), shall be
distributed to a group of school districts comprised of those school districts which qualify as a tax
relief area under section 273.134, paragraph (b), or in which there is a qualifying municipality
as defined by section 273.134, paragraph (a), in direct proportion to school district indexes as
follows: for each school district, its pupil units determined under section 126C.05 for the prior
school year shall be multiplied by the ratio of the average adjusted net tax capacity per pupil unit
for school districts receiving aid under this clause as calculated pursuant to chapters 122A, 126C,
and 127A for the school year ending prior to distribution to the adjusted net tax capacity per pupil
unit of the district. Each district shall receive that portion of the distribution which its index bears
to the sum of the indices for all school districts that receive the distributions.
(ii) Notwithstanding clause (i), each school district that receives a distribution under sections
298.018; 298.23 to 298.28, exclusive of any amount received under this clause; 298.34 to 298.39;
298.391 to 298.396; 298.405; or any law imposing a tax on severed mineral values after reduction
for any portion distributed to cities and towns under section 126C.48, subdivision 8, paragraph
(5), that is less than the amount of its levy reduction under section 126C.48, subdivision 8, for the
second year prior to the year of the distribution shall receive a distribution equal to the difference;
the amount necessary to make this payment shall be derived from proportionate reductions in
the initial distribution to other school districts under clause (i).
(d) Any school district described in paragraph (c) where a levy increase pursuant to section
126C.17, subdivision 9, was authorized by referendum for taxes payable in 2001, shall receive a
distribution of 21.3 cents per ton. Each district shall receive $175 times the pupil units identified
in section 126C.05, subdivision 1, enrolled in the second previous year or the 1983-1984 school
year, whichever is greater, less the product of 1.8 percent times the district's taxable net tax
capacity in the second previous year.
If the total amount provided by paragraph (d) is insufficient to make the payments herein
required then the entitlement of $175 per pupil unit shall be reduced uniformly so as not to
exceed the funds available. Any amounts received by a qualifying school district in any fiscal
year pursuant to paragraph (d) shall not be applied to reduce general education aid which the
district receives pursuant to section 126C.13 or the permissible levies of the district. Any amount
remaining after the payments provided in this paragraph shall be paid to the commissioner of
Iron Range resources and rehabilitation who shall deposit the same in the taconite environmental
protection fund and the Douglas J. Johnson economic protection trust fund as provided in
subdivision 11.
Each district receiving money according to this paragraph shall reserve the lesser of the
amount received under this paragraph or $25 times the number of pupil units served in the district.
It may use the money for early childhood programs or for outcome-based learning programs that
enhance the academic quality of the district's curriculum. The outcome-based learning programs
must be approved by the commissioner of education.
(e) There shall be distributed to any school district the amount which the school district was
entitled to receive under section 298.32 in 1975.
(f) Effective for the distribution in 2003 only, five percent of the distributions to school
districts under paragraphs (b), (c), and (e); subdivision 6, paragraph (c); subdivision 11; and
section 298.225, shall be distributed to the general fund. The remainder less any portion
distributed to cities and towns under section 126C.48, subdivision 8, paragraph (5), shall be
distributed to the Douglas J. Johnson economic protection trust fund created in section 298.292.
Fifty percent of the amount distributed to the Douglas J. Johnson economic protection trust fund
shall be made available for expenditure under section 298.293 as governed by section 298.296.
Effective in 2003 only, 100 percent of the distributions to school districts under section 477A.15
less any portion distributed to cities and towns under section 126C.48, subdivision 8, paragraph
(5), shall be distributed to the general fund.
    Subd. 5. Counties. (a) 26.05 cents per taxable ton is allocated to counties to be distributed,
based upon certification by the commissioner of revenue, under paragraphs (b) to (d).
(b) 20.525 cents per taxable ton shall be distributed to the county in which the taconite
is mined or quarried or in which the concentrate is produced, less any amount which is to be
distributed pursuant to paragraph (c). The apportionment formula prescribed in subdivision
2 is the basis for the distribution.
(c) If an electric power plant owned by and providing the primary source of power for a
taxpayer mining and concentrating taconite is located in a county other than the county in which
the mining and the concentrating processes are conducted, one cent per taxable ton of the tax
distributed to the counties pursuant to paragraph (b) and imposed on and collected from such
taxpayer shall be paid to the county in which the power plant is located.
(d) 5.525 cents per taxable ton shall be paid to the county from which the taconite was
mined, quarried or concentrated to be deposited in the county road and bridge fund. If the mining,
quarrying and concentrating, or separate steps in any of those processes are carried on in more than
one county, the commissioner shall follow the apportionment formula prescribed in subdivision 2.
    Subd. 6. Property tax relief. (a) In 2002 and thereafter, 33.9 cents per taxable ton, less any
amount required to be distributed under paragraphs (b) and (c), or section 298.2961, subdivision
5, must be allocated to St. Louis County acting as the counties' fiscal agent, to be distributed
as provided in sections 273.134 to 273.136.
(b) If an electric power plant owned by and providing the primary source of power for a
taxpayer mining and concentrating taconite is located in a county other than the county in which
the mining and the concentrating processes are conducted, .1875 cent per taxable ton of the tax
imposed and collected from such taxpayer shall be paid to the county.
(c) If an electric power plant owned by and providing the primary source of power for
a taxpayer mining and concentrating taconite is located in a school district other than a school
district in which the mining and concentrating processes are conducted, .4541 cent per taxable ton
of the tax imposed and collected from the taxpayer shall be paid to the school district.
    Subd. 7. Iron Range Resources and Rehabilitation Board. For the 1998 distribution, 6.5
cents per taxable ton shall be paid to the Iron Range Resources and Rehabilitation Board for the
purposes of section 298.22. That amount shall be increased in 1999 and subsequent years in
the same proportion as the increase in the implicit price deflator as provided in section 298.24,
subdivision 1
. The amount distributed pursuant to this subdivision shall be expended within or
for the benefit of the taconite assistance area defined in section 273.1341. No part of the fund
provided in this subdivision may be used to provide loans for the operation of private business
unless the loan is approved by the governor.
    Subd. 8. Range Association of Municipalities and Schools. .30 cent per taxable ton shall
be paid to the Range Association of Municipalities and Schools, for the purpose of providing an
areawide approach to problems which demand coordinated and cooperative actions and which
are common to those areas of northeast Minnesota affected by operations involved in mining
iron ore and taconite and producing concentrate therefrom, and for the purpose of promoting
the general welfare and economic development of the cities, towns, and school districts within
the Iron Range area of northeast Minnesota.
    Subd. 9. Douglas J. Johnson economic protection trust fund. In 1999, 3.35 cents per
taxable ton shall be paid to the Douglas J. Johnson economic protection trust fund.
    Subd. 9a. Taconite economic development fund. (a) 30.1 cents per ton for distributions in
2002 and thereafter must be paid to the taconite economic development fund. No distribution
shall be made under this paragraph in 2004 or any subsequent year in which total industry
production falls below 30 million tons. Distribution shall only be made to a taconite producer's
fund under section 298.227 if the producer timely pays its tax under section 298.24 by the dates
provided under section 298.27, or pursuant to the due dates provided by an administrative
agreement with the commissioner.
(b) An amount equal to 50 percent of the tax under section 298.24 for concentrate sold in the
form of pellet chips and fines not exceeding 5/16 inch in size and not including crushed pellets
shall be paid to the taconite economic development fund. The amount paid shall not exceed
$700,000 annually for all companies. If the initial amount to be paid to the fund exceeds this
amount, each company's payment shall be prorated so the total does not exceed $700,000.
    Subd. 9b. Taconite environmental fund. Five cents per ton must be paid to the taconite
environmental fund for use under section 298.2961, subdivision 4.
    Subd. 9c. Temporary distribution; city of Eveleth. 0.20 cent per taxable ton must be paid
to the city of Eveleth for distribution in 2007 through 2011 only, to be used for the support of
the Hockey Hall of Fame, provided that it continues to operate in that city, and provided that the
city of Eveleth certifies to the St. Louis County auditor that it has received donations for the
support of the Hockey Hall of Fame from professional hockey organizations or other donors in
an amount at least equal to the amount of the distribution under this subdivision. If the Hockey
Hall of Fame ceases to operate in the city of Eveleth prior to receipt of the distribution in either
year, and the governing body of the city determines that it is unlikely to resume operation there
within a six-month period, the distribution under this subdivision shall be made to the Iron Range
Resources and Rehabilitation Board. If the amount of the distribution authorized under this
subdivision exceeds the total amount of donations for the support of the Hockey Hall of Fame
during the 12-month period ending 30 days before the date of the distribution, the amount by
which 0.20 cent per ton exceeds the donations shall be distributed to the Iron Range Resources
and Rehabilitation Board.
    Subd. 10. Increase. (a) Except as provided in paragraph (b), beginning with distributions in
2000, the amount determined under subdivision 9 shall be increased in the same proportion as the
increase in the implicit price deflator as provided in section 298.24, subdivision 1. Beginning
with distributions in 2003, the amount determined under subdivision 6, paragraph (a), shall be
increased in the same proportion as the increase in the implicit price deflator as provided in
section 298.24, subdivision 1.
(b) For distributions in 2005 and subsequent years, an amount equal to the increased tax
proceeds attributable to the increase in the implicit price deflator as provided in section 298.24,
subdivision 1
, for taxes paid in 2005, except for the amount of revenue increases provided in
subdivision 4, paragraph (d), is distributed to the grant and loan fund established in section
298.2961, subdivision 4.
    Subd. 11. Remainder. (a) The proceeds of the tax imposed by section 298.24 which remain
after the distributions and payments in subdivisions 2 to 10a, as certified by the commissioner
of revenue, and paragraphs (b), (c), (d), and (e) have been made, together with interest earned
on all money distributed under this section prior to distribution, shall be divided between the
taconite environmental protection fund created in section 298.223 and the Douglas J. Johnson
economic protection trust fund created in section 298.292 as follows: Two-thirds to the taconite
environmental protection fund and one-third to the Douglas J. Johnson economic protection trust
fund. The proceeds shall be placed in the respective special accounts.
(b) There shall be distributed to each city, town, and county the amount that it received under
section 294.26 in calendar year 1977; provided, however, that the amount distributed in 1981 to
the unorganized territory number 2 of Lake County and the town of Beaver Bay based on the
between-terminal trackage of Erie Mining Company will be distributed in 1982 and subsequent
years to the unorganized territory number 2 of Lake County and the towns of Beaver Bay and
Stony River based on the miles of track of Erie Mining Company in each taxing district.
(c) There shall be distributed to the Iron Range Resources and Rehabilitation Board the
amounts it received in 1977 under section 298.22. The amount distributed under this paragraph
shall be expended within or for the benefit of the taconite assistance area defined in section
273.1341.
(d) There shall be distributed to each school district 62 percent of the amount that it received
under section 294.26 in calendar year 1977.
(e) In 2003 only, $100,000 must be distributed to a township located in a taconite tax relief
area as defined in section 273.134, paragraph (a), that received $119,259 of homestead and
agricultural credit aid and $182,014 in local government aid in 2001.
    Subd. 11a. Prorated distributions. For production years 1994 through 1999, distributions
under this section that are based on a number of cents per ton explicitly provided in this section
shall be reduced on a pro rata basis to reflect the reduction in tax proceeds as a result of the tax
rate reduction applied to direct reduced ore under section 298.24, subdivision 1, paragraph (f).
    Subd. 12. Estimates. On or before October 10 of each calendar year each producer of
taconite or iron sulphides subject to taxation under section 298.24 (hereinafter called "taxpayer")
shall file with the commissioner of revenue an estimate of the amount of tax which would be
payable by such taxpayer under said law for such calendar year; provided such estimate shall
be in an amount not less than the amount due on the mining and production of concentrates up
to September 30 of said year plus the amount becoming due because of probable production
between September 30 and December 31 of said year, less any credit allowable as provided in
subdivision 13. The commissioner of revenue shall annually on or before October 10 report an
estimated distribution amount to each taxing district and the officers with whom such report is so
filed shall use the amount so indicated as being distributable to each taxing district in computing
the permissible tax levy of such county or city in the year in which such estimate is made, and
payable in the next ensuing calendar year, except that one cent per taxable ton of the amount
distributed under subdivision 5, paragraph (d), shall not be deducted in calculating the permissible
levy. In any calendar year in which a general property tax levy has been made, if the taxes
distributable to any such county or city are greater than the amount estimated by the commissioner
to be paid to any such county or city in such year, the excess of such distribution shall be held
in a special fund by the county or city and shall not be expended until the succeeding calendar
year, and shall be included in computing the permissible levies of such county or city payable
in such year. If the amounts distributable to any such county or city after final determination by
the commissioner of revenue under this section are less than the amounts by which a taxing
district's levies were reduced pursuant to this section, such county or city may issue certificates
of indebtedness in the amount of the shortage, and may include in its next tax levy an amount
sufficient to pay such certificates of indebtedness and interest thereon, or, if no certificates were
issued, an amount equal to such shortage.
    Subd. 13. Deduction for credits; payment. In determining the distributions and payments
of the proceeds of the tax collected under section 298.24, the commissioner of revenue shall
deduct the amount of any credits authorized under section 298.24, subdivision 3, against the tax
imposed under subdivision 1 of said section, from the amount which would otherwise have been
paid to the Iron Range Resources and Rehabilitation Board for credit to the Douglas J. Johnson
economic protection trust fund.
    Subd. 14.[Repealed, 1987 c 268 art 9 s 43]
    Subd. 15. Distribution of delayed payments. Notwithstanding any other provision of this
section or any other law, if payment of taxes collected under section 298.24 is delayed past the
due date because the taxpayer is a debtor in a pending bankruptcy proceeding, the amount paid
shall be distributed as follows when received:
(1) 50 percent to St. Louis County acting as the counties' fiscal agent, to be distributed
as provided in sections 273.134 to 273.136;
(2) 25 percent to the Douglas J. Johnson economic protection trust fund; and
(3) 25 percent to the taconite environmental protection fund.
History: 1941 c 375 s 6; 1947 c 193 s 2; 1955 c 728 s 1; 1959 c 158 s 26; 1959 c 677 s 1;
1965 c 698 s 1; 1969 c 399 s 49; 1969 c 1156 s 2; 1971 c 736 s 1,2; Ex1971 c 31 art 35 s 2; 1973
c 123 art 5 s 7; 1973 c 582 s 3; 1973 c 631 s 6; 1975 c 46 s 8; 1976 c 134 s 78; 1977 c 307 s 29;
1977 c 423 art 10 s 16; 1978 c 721 art 9 s 3; 1978 c 764 s 113; 1978 c 793 s 70; 1980 c 607 art 7
s 5; 1981 c 358 art 1 s 43; 1Sp1981 c 1 art 10 s 15,16; 1982 c 523 art 41 s 1; 1982 c 548 art 1 s
15; 2Sp1982 c 2 s 2,3; 1983 c 216 art 1 s 50; 1983 c 314 art 1 s 22; 1984 c 463 art 1 s 12; 1984 c
502 art 7 s 16; 1984 c 522 s 15; 1985 c 300 s 23; 1Sp1985 c 12 art 1 s 33; 1Sp1985 c 14 art 10 s
17,18; 1986 c 441 s 12; 1986 c 444; 1Sp1986 c 1 art 4 s 44; 1Sp1986 c 3 art 2 s 38; 1987 c 268
art 9 s 39-42; 1988 c 486 s 91; 1988 c 719 art 5 s 45,84; art 19 s 19; 1989 c 277 art 2 s 47; art 4 s
27; 1989 c 329 art 13 s 20; 1Sp1989 c 1 art 3 s 27; art 5 s 20; 1990 c 480 art 7 s 25; 1990 c 562
art 7 s 11; 1991 c 130 s 37; 1991 c 265 art 1 s 27; 1991 c 356 art 4 s 2-4,6; 1992 c 499 art 8 s
23; art 12 s 29; 1992 c 511 art 9 s 10; 1993 c 224 art 1 s 31; 1993 c 369 s 111; 1993 c 375 art
16 s 2-5; 1Sp1993 c 6 s 31; 1994 c 416 art 1 s 41; 1994 c 587 art 6 s 4,5; 1995 c 264 art 7 s 5;
1Sp1995 c 3 art 16 s 13; 1996 c 471 art 12 s 3-5; 1997 c 231 art 8 s 8,9; 1998 c 389 art 10 s
10-19; 1998 c 397 art 11 s 3; 1999 c 243 art 9 s 2,3; 1Sp2001 c 5 art 6 s 23-28; 2002 c 377 art 8 s
7-13; 2003 c 127 art 11 s 8,12; 1Sp2003 c 9 art 5 s 30; 1Sp2003 c 21 art 11 s 24,25; 1Sp2005
c 1 art 4 s 89,90; 2006 c 247 s 13; 2006 c 259 art 12 s 10,11
298.281 [Repealed, 1977 c 423 art 10 s 30]
298.282 DISTRIBUTION OF TACONITE MUNICIPAL AID ACCOUNT; TACONITE
MUNICIPAL AID; PAYMENT.
    Subdivision 1. Distribution of taconite municipal aid account. The amount deposited with
the county as provided in section 298.28, subdivision 3, must be distributed as provided by this
section among the municipalities comprising a tax relief area under section 273.134, paragraph
(b)
, each being referred to in this section as a qualifying municipality.
    Subd. 2. Commissioner's calculation and certification of municipal distributions. (a)
Each year following the final determination of the amount of taxes payable under section 298.24,
the commissioner of revenue shall determine the amount in the taconite municipal aid account
as of July 1 of that year and the amount to be distributed to each qualifying municipality during
the year. The amount to be distributed to each qualifying municipality shall be determined by
determining an index for each qualifying municipality by subtracting its local effort tax rate,
multiplied by its equalized gross tax capacity, from its fiscal need factor. For the purposes of this
subdivision, the following terms have the meanings given them herein. A municipality's "local
effort tax rate" means its fiscal need factor per capita divided by $21 per capita for each one
percent of the gross local tax rate or $17 per capita for each one percent of the net local tax rate
for the first $350 of its fiscal need factor per capita; plus its fiscal need factor per capita divided
by $18 per capita for each one percent of the gross local tax rate or $15 per capita for each one
percent of the net local tax rate on that part of its fiscal need factor per capita, if any, in excess of
$350. In no case shall a municipality's local effort tax rate be less than a gross local tax rate of
6.56 percent or a net local tax rate of 8.16 percent. A municipality's "equalized gross tax capacity"
means its previous year tax capacity, less the tax capacity in any tax increment district, divided by
the municipality's aggregate sales ratio covering the period ending two years prior to the year of
aid distribution. A municipality's "fiscal need factor" means the three-year average of the sum
of its municipal levy, taconite aids received under section 298.28, subdivisions 2, 11, paragraph
(b)
, and this section and its local government aid distribution amount, for taxes payable and
distribution amounts receivable in the three years immediately preceding the aid distribution year.
The ratio of the resulting index for each qualifying municipality to the sum of all qualifying
municipalities' indexes shall be multiplied by the total amount in the taconite municipal aid
account less the amount distributed pursuant to subdivision 5.
(b) If the distribution under this section, sections 273.138, 298.26 and 298.28, and chapter
477A, to any municipality would exceed that municipality's levy for that year, the amount in
excess of the levy for that year shall reduce the amount distributed to the municipality under
this section and this excess amount shall be distributed to the other qualifying municipalities in
the same manner as the distribution made pursuant to subdivision 2, except that the qualifying
municipality receiving an initial distribution when added to that received pursuant to sections
273.138, 298.26, 298.28, and chapter 477A in excess of the qualifying municipality's levy, shall
not receive a distribution nor shall its index be used in computing the distribution pursuant to
this clause. The distributions to be received in the year in which the taxes are payable shall be
compared to the levy for that same year. Upon completion of the determination, the commissioner
of revenue shall certify to the chief clerical officer of each qualifying municipality the amount
which will be distributed to the municipality from the taconite municipal aid account that year.
    Subd. 3. Amounts in excess or less than certified amount. If the amount certified by
the commissioner of revenue as distributable to any qualifying municipality is greater than
the amount previously estimated to have been distributable to such qualifying municipality
in such year, the excess distributed to such municipality shall be held in a separate fund by
the qualifying municipality and shall not be expended until the succeeding calendar year.
If the amount distributable to any qualifying municipality, after final determination by the
commissioner of revenue is less than the amount estimated to have been distributable to such
qualifying municipality, such municipality may issue certificates of indebtedness in the amount of
the shortage and may include in its next tax levy an amount sufficient to pay such certificates
of indebtedness and interest thereon or, if no certificates were issued, an amount equal to such
shortage.
    Subd. 4. County auditor; payments to municipalities. On or before September 15 of
each year, the county auditor shall issue a warrant in favor of the treasurer of each qualifying
municipality in the amount determined by the commissioner of revenue to be due and payable
to such qualifying municipality in such year.
    Subd. 5. County auditor; payments to replace revenue loss. The county auditor shall
annually on September 15 make a payment from the taconite municipal aid fund to cities and
towns for the purpose of replacing the revenue loss to them resulting from Laws 1975, chapter
437, article XI, section 7. The amount of aid to be paid annually to each city and town is the
amount they were entitled to receive for 1975 under the provisions of Minnesota Statutes 1974,
section 298.32.
History: Ex1971 c 31 art 30 s 6; 1973 c 492 s 14; 1973 c 582 s 3; 1973 c 631 s 7-9; 1975 c
46 s 10; 1976 c 328 s 1,2; 1977 c 423 art 10 s 17,18; 1978 c 767 s 35; 1984 c 522 s 16; 1Sp1985 c
14 art 10 s 19-21; 1986 c 441 s 13; 1986 c 444; 1987 c 384 art 2 s 1; 1988 c 719 art 5 s 84; 1989 c
277 art 4 s 28; 1989 c 329 art 13 s 20; 1Sp1989 c 1 art 2 s 11; art 5 s 21,22; 1Sp2001 c 5 art 6 s 29
298.283 CHANGE OF STATUS OF MUNICIPALITY; DATE FOR DETERMINING
STATUS.
If any qualifying municipality as defined in section 298.282, is consolidated with another
municipality or part thereof, the secretary of state shall certify that fact to the commissioner of
revenue, who shall determine the amounts payable to the consolidated municipality according
to the combined population resulting, for the purpose of determining aid payable under the
provisions of section 298.282. The determination of amounts payable under the provisions of
section 298.282 shall however be based on the status of the municipality on January 1 of each year.
History: Ex 1971 c 31 art 30 s 7; 1973 c 582 s 3; 1973 c 631 s 10
298.285 STATE AID AMOUNT; APPROPRIATION.
The commissioner of revenue shall determine a state aid amount equal to a tax of 33 cents
per taxable ton of iron ore concentrates for production your 2001 and 22 cents per taxable ton of
iron ore concentrates for production years 2002 and thereafter. There is appropriated from the
general fund to the commissioner an amount equal to the state aid determined under this section.
It must be distributed under section 298.28, as if the aid were production tax revenues.
History: 1Sp2001 c 5 art 6 s 39
298.29 [Renumbered 117.46]

DOUGLAS J. JOHNSON ECONOMIC

PROTECTION TRUST FUND ACT

298.291 CITATION.
Sections 298.291 to 298.294 shall be known as the "Douglas J. Johnson Economic Protection
Trust Fund Act."
History: 1977 c 423 art 10 s 25; 2Sp1982 c 2 s 4; 2002 c 377 art 8 s 14
298.292 POLICY.
    Subdivision 1. Purposes. The legislature is cognizant of the severe economic dislocations
and widespread unemployment that result when a single industry on which an area is largely
dependent, experiences a drastic reduction in activity. The Douglas J. Johnson economic
protection trust fund is hereby created to be devoted to economic rehabilitation and diversification
of industrial enterprises where these conditions ensue as the result of the decline of such a single
industry. Priority shall be given to using the Douglas J. Johnson economic protection trust fund
for the following purposes:
(1) projects and programs that are designed to create and maintain productive, permanent,
skilled employment, including employment in technologically innovative businesses;
(2) projects and programs to encourage diversification of the economy and to promote the
development of minerals, alternative energy sources utilizing indigenous fuels, forestry, small
business, and tourism; and
(3) projects and programs for which technological and economic feasibility have been
demonstrated.
    Subd. 2. Use of money. Money in the Douglas J. Johnson economic protection trust fund
may be used for the following purposes:
(1) to provide loans, loan guarantees, interest buy-downs and other forms of participation
with private sources of financing, but a loan to a private enterprise shall be for a principal amount
not to exceed one-half of the cost of the project for which financing is sought, and the rate of
interest on a loan to a private enterprise shall be no less than the lesser of eight percent or an
interest rate three percentage points less than a full faith and credit obligation of the United States
government of comparable maturity, at the time that the loan is approved;
(2) to fund reserve accounts established to secure the payment when due of the principal
of and interest on bonds issued pursuant to section 298.2211;
(3) to pay in periodic payments or in a lump sum payment any or all of the interest on
bonds issued pursuant to chapter 474 for the purpose of constructing, converting, or retrofitting
heating facilities in connection with district heating systems or systems utilizing alternative
energy sources; and
(4) to invest in a venture capital fund or enterprise that will provide capital to other entities
that are engaging in, or that will engage in, projects or programs that have the purposes set forth
in subdivision 1. No investments may be made in a venture capital fund or enterprise unless at
least two other unrelated investors make investments of at least $500,000 in the venture capital
fund or enterprise, and the investment by the Douglas J. Johnson economic protection trust fund
may not exceed the amount of the largest investment by an unrelated investor in the venture
capital fund or enterprise. For purposes of this subdivision, an "unrelated investor" is a person or
entity that is not related to the entity in which the investment is made or to any individual who
owns more than 40 percent of the value of the entity, in any of the following relationships: spouse,
parent, child, sibling, employee, or owner of an interest in the entity that exceeds ten percent of
the value of all interests in it. For purposes of determining the limitations under this clause,
the amount of investments made by an investor other than the Douglas J. Johnson economic
protection trust fund is the sum of all investments made in the venture capital fund or enterprise
during the period beginning one year before the date of the investment by the Douglas J. Johnson
economic protection trust fund.
Money from the trust fund shall be expended only in or for the benefit of the taconite
assistance area defined in section 273.1341.
History: 1977 c 423 art 10 s 26; 2Sp1982 c 2 s 5; 1983 c 46 s 1; 1983 c 357 s 2; 1Sp1985 c
14 art 10 s 22; 1987 c 386 art 8 s 2; 1Sp2001 c 5 art 6 s 30; 2003 c 127 art 11 s 9,12; 1Sp2003 c
21 art 11 s 26
298.293 EXPENDING FUNDS.
The funds provided by section 298.28, subdivision 11, relating to the Douglas J. Johnson
economic protection trust fund, except money expended pursuant to Laws 1982, Second Special
Session, chapter 2, sections 8 to 14, shall be expended only in an amount that does not exceed
the sum of the net interest, dividends, and earnings arising from the investment of the trust for
the preceding 12 calendar months from the date of the authorization plus, for fiscal year 1983,
$10,000,000 from the corpus of the fund. The funds may be spent only in or for the benefit
of the taconite assistance area as defined in section 273.1341. If during any year the taconite
property tax account under sections 273.134 to 273.136 does not contain sufficient funds to
pay the property tax relief specified in Laws 1977, chapter 423, article X, section 4, there is
appropriated from this trust fund to the relief account sufficient funds to pay the relief specified in
Laws 1977, chapter 423, article X, section 4.
History: 1977 c 423 art 10 s 27; 1978 c 721 art 9 s 4; 2Sp1982 c 2 s 6; 1983 c 46 s 2;
1Sp1985 c 14 art 10 s 23; 1Sp2001 c 5 art 6 s 31; 1Sp2003 c 21 art 11 s 12,27
298.294 INVESTMENT OF FUND.
The trust fund established by section 298.292 shall be invested pursuant to law by the
State Board of Investment and the net interest, dividends, and other earnings arising from the
investments shall be transferred on the first day of each month to the trust and shall be included
and become part of the trust fund. The amounts transferred, including the interest, dividends, and
other earnings earned prior to July 13, 1982, together with the additional amount of $10,000,000
for fiscal year 1983, which is appropriated April 21, 1983, are appropriated from the trust fund to
the commissioner of Iron Range resources and rehabilitation for deposit in a separate account for
expenditure for the purposes set forth in section 298.292. Amounts appropriated pursuant to this
section shall not cancel but shall remain available unless expended.
History: 1977 c 423 art 10 s 28; 3Sp1981 c 2 art 7 s 6; 2Sp1982 c 2 s 7; 1983 c 46 s 3
298.295 [Repealed, 1983 c 46 s 8]
298.296 OPERATION OF FUND.
    Subdivision 1. Project approval. The board and commissioner shall by August 1 of each
year prepare a list of projects to be funded from the Douglas J. Johnson economic protection trust
with necessary supporting information including description of the projects, plans, and cost
estimates. These projects shall be consistent with the priorities established in section 298.292 and
shall not be approved by the board unless it finds that:
(a) the project will materially assist, directly or indirectly, the creation of additional
long-term employment opportunities;
(b) the prospective benefits of the expenditure exceed the anticipated costs; and
(c) in the case of assistance to private enterprise, the project will serve a sound business
purpose.
Each project must be approved by at least eight Iron Range Resources and Rehabilitation
Board members and the commissioner of Iron Range resources and rehabilitation. The list of
projects shall be submitted to the governor, who shall, by November 15 of each year, approve
or disapprove, or return for further consideration, each project. The money for a project may be
expended only upon approval of the project by the governor. The board may submit supplemental
projects for approval at any time.
    Subd. 2. Expenditure of funds. (a) Before January 1, 2028, funds may be expended on
projects and for administration of the trust fund only from the net interest, earnings, and dividends
arising from the investment of the trust at any time, including net interest, earnings, and dividends
that have arisen prior to July 13, 1982, plus $10,000,000 made available for use in fiscal year
1983, except that any amount required to be paid out of the trust fund to provide the property
tax relief specified in Laws 1977, chapter 423, article X, section 4, and to make school bond
payments and payments to recipients of taconite production tax proceeds pursuant to section
298.225, may be taken from the corpus of the trust.
(b) Additionally, upon recommendation by the board, up to $13,000,000 from the corpus of
the trust may be made available for use as provided in subdivision 4, and up to $10,000,000 from
the corpus of the trust may be made available for use as provided in section 298.2961.
(c) Additionally, an amount equal to 20 percent of the value of the corpus of the trust on May
18, 2002, not including the funds authorized in paragraph (b), plus the amounts made available
under section 298.28, subdivision 4, and Laws 2002, chapter 377, article 8, section 17, may be
expended on projects. Funds may be expended for projects under this paragraph only if the project:
(1) is for the purposes established under section 298.292, subdivision 1, clause (1) or (2); and
(2) is approved by the board upon an affirmative vote of at least ten of its members.
No money made available under this paragraph or paragraph (d) can be used for administrative or
operating expenses of the Iron Range Resources and Rehabilitation Board or expenses relating to
any facilities owned or operated by the board on May 18, 2002.
(d) Upon recommendation by a unanimous vote of all members of the board, amounts in
addition to those authorized under paragraphs (a), (b), and (c) may be expended on projects
described in section 298.292, subdivision 1.
(e) Annual administrative costs, not including detailed engineering expenses for the projects,
shall not exceed five percent of the net interest, dividends, and earnings arising from the trust
in the preceding fiscal year.
(f) Principal and interest received in repayment of loans made pursuant to this section, and
earnings on other investments made under section 298.292, subdivision 2, clause (4), shall be
deposited in the state treasury and credited to the trust. These receipts are appropriated to the
board for the purposes of sections 298.291 to 298.298.
    Subd. 3. Administration. The commissioner and staff of the Iron Range Resources and
Rehabilitation Board shall administer the program under which funds are expended pursuant to
sections 298.292 to 298.298.
    Subd. 4. Temporary loan authority. (a) The board may recommend that up to $7,500,000
from the corpus of the trust may be used for loans, loan guarantees, grants, or equity investments
as provided in this subdivision. The money would be available for loans for construction and
equipping of facilities constituting (1) a value added iron products plant, which may be either
a new plant or a facility incorporated into an existing plant that produces iron upgraded to a
minimum of 75 percent iron content or any iron alloy with a total minimum metallic content of
90 percent; or (2) a new mine or minerals processing plant for any mineral subject to the net
proceeds tax imposed under section 298.015. A loan or loan guarantee under this paragraph
may not exceed $5,000,000 for any facility.
(b) Additionally, the board must reserve the first $2,000,000 of the net interest, dividends,
and earnings arising from the investment of the trust after June 30, 1996, to be used for grants,
loans, loan guarantees, or equity investments for the purposes set forth in paragraph (a). This
amount must be reserved until it is used as described in this subdivision.
(c) Additionally, the board may recommend that up to $5,500,000 from the corpus of the
trust may be used for additional grants, loans, loan guarantees, or equity investments for the
purposes set forth in paragraph (a).
(d) The board may require that it receive an equity percentage in any project to which it
contributes under this section.
History: 2Sp1982 c 2 s 9; 1983 c 46 s 4; 1984 c 654 art 2 s 121; 1987 c 386 art 8 s 3; 1993 c
369 s 112; 1994 c 587 art 6 s 6,7; 1995 c 264 art 7 s 6; 1996 c 471 art 12 s 6,7; 1997 c 231 art 8 s
10; 1998 c 389 art 10 s 20; 1999 c 243 art 9 s 4; 1Sp2001 c 5 art 6 s 32; 2002 c 377 art 8 s 15;
2003 c 127 art 11 s 10,12; 2006 c 281 art 4 s 20
298.2961 PRODUCER GRANTS.
    Subdivision 1. Appropriation. (a) $10,000,000 is appropriated from the Douglas J. Johnson
economic protection trust fund to a special account in the taconite area environmental protection
fund for grants to producers on a project-by-project basis as provided in this section.
(b) The proceeds of the tax designated under section 298.28, subdivision 9b, are appropriated
for grants to producers on a project-by-project basis as provided in this section.
    Subd. 2. Projects; approval. (a) Projects funded must be for:
(1) environmentally unique reclamation projects;
(2) pit or plant repairs, expansions, or modernizations other than for a value added iron
products plant; or
(3) haulage trucks and equipment and mining shovels.
(b) To be proposed by the board, a project must be approved by at least eight Iron Range
Resources and Rehabilitation Board members. The money for a project may be spent only
upon approval of the project by the governor. The board may submit supplemental projects for
approval at any time.
(c) The board may require that it receive an equity percentage in any project to which it
contributes under this section.
    Subd. 3. Redistribution. (a) If a taconite production facility is sold after operations at the
facility had ceased, any money remaining in the taconite environmental fund for the former
producer may be released to the purchaser of the facility on the terms otherwise applicable to the
former producer under this section.
(b) Any portion of the taconite environmental fund that is not released by the commissioner
within three years of its deposit in the taconite environmental fund shall be divided between the
taconite environmental protection fund created in section 298.223 and the Douglas J. Johnson
economic protection trust fund created in section 298.292 for placement in their respective special
accounts. Two-thirds of the unreleased funds must be distributed to the taconite environmental
protection fund and one-third to the Douglas J. Johnson economic protection trust fund.
    Subd. 4. Grant and loan fund. (a) A fund is established to receive distributions under
section 298.28, subdivision 9b, and to make grants or loans as provided in this subdivision. Any
grant or loan made under this subdivision must be approved by a majority of the members of the
Iron Range Resources and Rehabilitation Board, established under section 298.22.
(b) Distributions received in calendar year 2005 are allocated to the city of Virginia for
improvements and repairs to the city's steam heating system.
(c) Distributions received in calendar year 2006 are allocated to a project of the public
utilities commissions of the cities of Hibbing and Virginia to convert their electrical generating
plants to the use of biomass products, such as wood.
(d) Distributions received in calendar year 2007 must be paid to the city of Tower to be used
for the East Two Rivers project in or near the city of Tower.
(e) For distributions received in 2008, the first $2,000,000 of the 2008 distribution must be
paid to St. Louis County for deposit in its county road and bridge fund to be used for relocation of
St. Louis County Road 715, commonly referred to as Pike River Road. The remainder of the 2008
distribution and the full amount of the distributions in 2009 and subsequent years is allocated for
projects under section 298.223, subdivision 1.
    Subd. 5. Public works and local economic development fund. For distributions in 2007
only, a special fund is established to receive 38.4 cents per ton that otherwise would be allocated
under section 298.28, subdivision 6. The following amounts are allocated to St. Louis County
acting as the fiscal agent for the recipients for the specific purposes:
(1) 13.4 cents per ton for the Central Iron Range Sanitary Sewer District for construction
of a combined wastewater facility;
(2) six cents per ton to the city of Eveleth to redesign and design and construct improvements
to renovate its water treatment facility;
(3) one cent per ton for the East Range Joint Powers Board to acquire land for and to design
a central wastewater collection and treatment system;
(4) 0.5 cents per ton to the city of Hoyt Lakes to repair Leeds Road;
(5) 0.7 cents per ton to the city of Virginia to extend Eighth Street South;
(6) 0.7 cents per ton to the city of Mountain Iron to repair Hoover Road;
(7) 0.9 cents per ton to the city of Gilbert for alley repairs between Michigan and Indiana
Avenues and for repayment of a loan to the Minnesota Department of Employment and Economic
Development;
(8) 0.4 cents per ton to the city of Keewatin for a new city well;
(9) 0.3 cents per ton to the city of Grand Rapids for planning for a fire and hazardous
materials center;
(10) 0.9 cents per ton to Aitkin County Growth for an economic development project for
peat harvesting;
(11) 0.4 cents per ton to the city of Nashwauk to develop a comprehensive city plan;
(12) 0.4 cents per ton to the city of Taconite for development of a city comprehensive plan;
(13) 0.3 cents per ton to the city of Marble for water and sewer infrastructure;
(14) 0.8 cents per ton to Aitkin County for improvements to the Long Lake Environmental
Learning Center;
(15) 0.3 cents per ton to the city of Coleraine for the Coleraine Technology Center;
(16) 0.5 cents per ton to the Economic Development Authority of the city of Grand Rapids
for planning for the North Central Research and Technology Laboratory;
(17) 0.6 cents per ton to the city of Bovey for sewer and water extension;
(18) 0.3 cents per ton to the city of Calumet for infrastructure improvements; and
(19) ten cents per ton to an economic development authority in a city through which State
Highway 1 passes, or a city in Independent School District No. 2142 that has an active mine, for an
economic development project approved by the Iron Range Resources and Rehabilitation Board.
History: 1996 c 471 art 12 s 8; 1997 c 231 art 8 s 11; 1Sp2001 c 5 art 6 s 33; 2003 c 127 art
11 s 11,12; 1Sp2005 c 1 art 4 s 91; 2006 c 259 art 12 s 12,13
298.297 ADVISORY COMMITTEES.
Before submission of a project to the board, the commissioner of Iron Range resources and
rehabilitation shall appoint a technical advisory committee consisting of one or more persons who
are knowledgeable in areas related to the objectives of the proposal. Members of the committees
shall be compensated as provided in section 15.059, subdivision 3. The board shall not act on
a proposal until it has received the evaluation and recommendations of the technical advisory
committee or until 15 days have elapsed since the proposal was transmitted to the advisory
committee, whichever occurs first.
History: 2Sp1982 c 2 s 10; 1983 c 46 s 5
298.298 LONG-RANGE PLAN.
Consistent with the policy established in sections 298.291 to 298.298, the Iron Range
Resources and Rehabilitation Board shall prepare and present to the governor and the legislature
by December 31, 2006, a long-range plan for the use of the Douglas J. Johnson economic
protection trust fund for the economic development and diversification of the taconite assistance
area defined in section 273.1341. No project shall be approved by the Iron Range Resources
and Rehabilitation Board which is not consistent with the goals and objectives established in
the long-range plan.
History: 2Sp1982 c 2 s 11; 1983 c 46 s 6; 1Sp2001 c 5 art 6 s 34; 2003 c 127 art 11 s 12;
1Sp2003 c 21 art 11 s 28; 2006 c 281 art 4 s 21
298.30 [Renumbered 117.47]
298.31 [Private]
298.32 [Repealed, 1975 c 437 art 11 s 7]

SEMITACONITE TAXATION

298.34 SEMITACONITE, TAXATION, DEFINITIONS.
    Subdivision 1.[Repealed, 1998 c 389 art 10 s 23]
    Subd. 2. Semitaconite deposit. For the purposes of sections 298.34 to 298.39, a
"semitaconite deposit" is a deposit of altered iron formation, altered taconite, composites
of iron-bearing and other minerals that exist either in mass as altered iron formation, or as
intermingled masses of altered iron formation and other iron-bearing materials, from which, and
in accordance with good mining practice, the concentrates or equivalent must be produced in
an operation involving the beneficiation of the semitaconite. Such deposits include stockpiles
of semitaconite. They also include rejects or tailings that in themselves are of semitaconite type
(as defined in subdivision 1), produced from mining or beneficiation operations. Not included is
any separable portion of merchantable iron-bearing material if this separable portion is of such
size and so situated that in accordance with good practice it can be mined and shipped. Also not
included is any separable portion of iron-bearing material that can be made merchantable by
simple methods of beneficiation (as defined in subdivision 1), if this separable portion is of such
size and so situated that in accordance with good practice it can be mined, beneficiated, and
shipped in a separate commercial operation.
    Subd. 3. Semitaconite facility. For the purposes of sections 298.34 to 298.39, a semitaconite
facility is: (a) a beneficiating plant or a section or part thereof used solely in the process of
beneficiating semitaconite, including buildings, machinery, tools, equipment and supplies used in
connection therewith; (b) machinery, tools, equipment and supplies used solely in the mining
of semitaconite or semitaconite deposit; (c) in the case of a part or section of a mining or
beneficiating facility or buildings, machinery, tools, equipment or supplies used to a substantial
extent, but not solely, in the mining or beneficiating of semitaconite or a semitaconite deposit, such
proportionate part of the valuation of the part of the facility or the buildings, machinery, tools,
equipment or supplies that the use for mining or beneficiation of semitaconite or semitaconite
deposit bears to the whole use thereof shall be considered a semitaconite mining or beneficiation
facility, and the remaining proportionate part shall remain subject to taxation in the same manner
as other property, such proportion to be determined, and redetermined from time to time, by the
commissioner of revenue upon application of the assessing officer or the owner of such facility.
    Subd. 4.[Repealed, 1998 c 389 art 10 s 23]
History: Ex1959 c 81 s 1; 1973 c 582 s 3
298.35 IMPOSITION OF TAX; AMOUNT.
There is hereby imposed upon semitaconite and semitaconite deposits, and upon the mining
and quarrying thereof, and upon the production of concentrate or equivalent therefrom, and upon
the concentrate or equivalent so produced, a tax of (a) in the case of concentrates agglomerated or
sintered in Minnesota or to be agglomerated or sintered in Minnesota, five cents per gross ton of
merchantable concentrate as produced therefrom, plus one-tenth of one cent per gross ton for each
one percent that the iron content of such product exceeds 55 percent, when dried at 212 degrees
Fahrenheit, or (b) in the case of all other concentrates or equivalent ten cents per gross ton of
merchantable concentrate or equivalent as produced therefrom, plus one-tenth of one cent per
gross ton for each one-half percent that the iron content of such product exceeds 55 percent, when
dried at 212 degrees Fahrenheit. If any part of the ore materials from a semitaconite deposit,
beneficiated in connection with or incidental to the beneficiation of semitaconite therefrom, is
made merchantable by simple methods of beneficiation referred to in section 298.34, the tax
hereunder upon the portion of merchantable concentrate so beneficiated shall be at the rate of ten
cents per gross ton plus one-tenth of one cent per gross ton for each one-half of one percent that
the iron content of such product exceeds 55 percent, when dried at 212 degrees Fahrenheit.
History: Ex1959 c 81 s 2
298.36 NATURE OF TAX.
Such tax shall be in addition to the occupation tax imposed upon the business of mining
and producing iron ore and in addition to the royalty tax imposed upon royalties received for
permission to mine and produce iron ore. Except as herein otherwise provided, it shall be in
lieu of all other taxes upon such semitaconite and semitaconite deposits, or the lands in which
contained, or upon the mining or quarrying thereof, or the production of concentrates therefrom,
or upon the concentrate produced, or upon semitaconite mining and beneficiation facilities used in
connection therewith, or upon the lands occupied by such semitaconite mining or beneficiation
facilities. If electric or steam power for the mining, transportation or concentration of such
semitaconite or the concentrates produced therefrom is generated in plants principally devoted to
the generation of power for such purposes, the plants in which such power is generated and all
machinery, equipment, tools, supplies, transmission and distribution lines used in the generation
and distribution of such power, shall be considered to be machinery, equipment, tools, supplies
and buildings used in the mining, quarrying or production of semitaconite and semitaconite
concentrates within the meaning of this section. If part of the power generated in such a plant is
used for purposes other than the mining or concentration of semitaconite or the transportation or
loading of semitaconite or the concentrates thereof, a proportionate share of the value of such
generating facilities, equal to the proportion that the power used for such other purpose bears to
the whole amount of power generated therein, shall be subject to the general property tax in the
same manner as other property; provided, power generated in such a plant and exchanged for an
equivalent amount of power which is used for the mining, transportation or concentration of such
semitaconite or concentrates produced therefrom, shall be considered as used for such purposes
within the meaning of this section. Nothing herein shall prevent the assessment and taxation of
the surface of reserve land containing semitaconite and not occupied by such facilities or used
solely in connection therewith at the value thereof without regard to the semitaconite therein,
nor the assessment and taxation of merchantable iron ore or other minerals, or iron-bearing
materials other than semitaconite in such lands in the manner provided by law, nor the assessment
and taxation of facilities used in producing sulphur or sulphur products from iron sulphide
concentrates, or in refining such sulphur products, under the general property tax laws. Nothing
herein shall except from general taxation or from taxation as provided by other laws any property
used for residential or townsite purposes, including utility services thereto.
History: Ex1959 c 81 s 3
298.37 ASSESSMENT AT LOCAL TAX RATE.
In any year in which at least 1,000 tons of iron ore concentrate is not produced from any
40-acre tract or governmental lot containing semitaconite, a tax may be assessed upon the
semitaconite therein at the local tax rate prevailing in the taxing district and spread against the net
tax capacity of the semitaconite; such net tax capacity shall not exceed the greater of: (a) the net
tax capacity specifically assigned to the semitaconite material in said land in the assessment for
the year 1958, or, (b) an amount sufficient to yield a tax of $1 per acre less the amount of any tax
assessed against such land under the authority of section 298.26.
History: Ex1959 c 81 s 4; 1988 c 719 art 5 s 84; 1989 c 329 art 13 s 20; 1Sp1989 c 1
art 2 s 11
298.38 PAYMENT AND COLLECTION.
The tax provided in section 298.35 shall be collected and paid in the same manner and at
the same time as provided by law for the payment of the occupation tax. Reports shall be made
and hearings held upon the determination of the tax at the same times and in the same manner
as provided by law for the occupation tax. The commissioner of revenue shall have authority to
make reasonable rules as to the form and manner of filing reports necessary for the determination
of the tax hereunder, and by such rules may require the production of such information as may
be reasonably necessary or convenient for the determination and apportionment of the tax. All
the provisions of the occupation tax law with reference to the assessment, determination, and
collection of the occupation tax, including all provisions for penalties and for appeals from or
review of the orders of the commissioner of revenue relative thereto, are hereby made applicable
to the tax imposed by section 298.35, except insofar as inconsistent herewith.
History: Ex1959 c 81 s 5; 1973 c 582 s 3; 1985 c 248 s 70
298.39 DISTRIBUTION OF PROCEEDS.
The proceeds of the tax collected under section 298.35 shall be distributed by the
commissioner of finance, upon certificate of the commissioner of revenue to the general fund
of the state and to the various taxing districts in which the lands from which the semitaconite
was mined or quarried were located in the following proportions: 22 percent thereof to the city
or town; 50 percent thereof to the school district; 22 percent thereof to the county; six percent
thereof to the state. If the mining and concentration, or different steps in either thereof are carried
on in more than one taxing district, the commissioner shall apportion equitably the proceeds of
the part of the tax going to cities or towns among such subdivisions, and the part going to school
districts among such districts, and the part going to counties among such counties, upon the basis
of attributing 40 percent of the proceeds of the tax to the operation of mining or quarrying the
semitaconite, and the remainder to the concentrating plant and to the processes of concentration,
and with respect to each thereof giving due consideration to the relative extent of such operations
performed in each such taxing district. The commissioner's order making such apportionment
shall be subject to review by the Tax Court at the instance of any of the interested taxing districts,
in the same manner as other orders of the commissioner. The amount so distributed shall be
divided among the various funds of the state, or of the taxing districts in the same proportion as
the general ad valorem tax thereof. If in any year the state shall not spread any general ad valorem
tax levy against real property, the state's proportion of the tax shall be paid into the general fund.
On or before October 10 of each calendar year each producer of semitaconite subject to taxation
under section 298.35, hereinafter called "taxpayer," shall file with the commissioner of revenue
and with the county auditor of each county in which such taxpayer operates, and with the chief
clerical officer of each school district or city which is entitled to participate in the distribution of
the tax, an estimate of the amount of tax which would be payable by such taxpayer under said law
for such calendar year; provided such estimate shall be in an amount not less than the amount due
on the mining and production of concentrates up to September 30 of said year plus the amount
becoming due because of probable production between September 30 and December 31 of said
year, less any credit allowable as hereinafter provided. Such estimate shall list the taxing districts
entitled to participate in the distribution of such tax, and the amount of the estimated tax which
would be distributable to each such district in such next ensuing calendar year on the basis of the
last percentage distribution certified by the commissioner of revenue. If there be no such prior
certification, the taxpayer shall set forth its estimate of the proper distribution of such tax under
the law, which estimate may be corrected by the commissioner on deeming it improper, notice of
such correction being given by the commissioner to the taxpayer and the public officers receiving
such estimate. The officers with whom such report is so filed shall use the amount so indicated
as being distributable to each taxing district in computing the permissible tax levy of such city
in the year in which such estimate is made, and payable in the next ensuing calendar year. Such
taxpayer shall then pay, at the times payments are required to be made pursuant to section 298.36,
as the amount of tax payable under section 298.35, the greater of (a) the amount shown by such
estimate, or (b) the amount due under said section as finally determined by the commissioner of
revenue pursuant to law. If, as a result of the payment of the amount of such estimate, the taxpayer
has paid in any calendar year an amount of tax in excess of the amount due in such year under
section 298.35, after application of credits for any excess payments made in previous years,
all as determined by the commissioner of revenue, the taxpayer shall be given credit for such
excess amount against any taxes which, under said section, may become due from the taxpayer in
subsequent years. In any calendar year in which a general property tax levy subject to chapter
123A, 123B, or 126C has been made, if the taxes distributable to any such city or school district
are greater than the amount estimated to be paid to any such city or school district in such year,
the excess of such distribution shall be held in a special fund by the city or school district and
shall not be expended until the succeeding calendar year, and shall be included in computing the
permissible levies under chapter 123A, 123B, or 126C of such city or school district payable in
such year. If the amounts distributable to any such city or school district, after final determination
by the commissioner of revenue under this section are less than the amounts indicated by such
estimates, such city or school district may issue certificates of indebtedness in the amount of the
shortage, and may include in its next tax levy, in excess of the limitations of chapters 123A, 123B,
and 126C an amount sufficient to pay such certificates of indebtedness and interest thereon, or, if
no certificates were issued, an amount equal to such shortage.
There is hereby appropriated to such taxing districts as are stated herein, from any fund or
account in the state treasury to which the money was credited, an amount sufficient to make the
payment or transfer.
History: Ex1959 c 81 s 6; 1965 c 641 s 1; 1965 c 698 s 1; 1969 c 399 s 49; Ex1971 c 31 art
35 s 4; 1973 c 123 art 5 s 7; 1973 c 582 s 3; 1976 c 134 s 78; 1977 c 307 s 29; 1978 c 764 s
114; 1983 c 314 art 1 s 22; 1986 c 444; 1988 c 486 s 92; 1988 c 719 art 5 s 84; 1Sp1989 c 1
art 5 s 23; 1991 c 130 s 37; 1992 c 499 art 12 s 29; 1996 c 305 art 1 s 67; 1998 c 397 art 11
s 3; 2003 c 112 art 2 s 50

AGGLOMERATING FACILITIES PRODUCTION TAX

298.391 AGGLOMERATING FACILITIES DEFINITIONS.
    Subdivision 1. Definitions. When used in sections 298.391 to 298.396, the following terms
have the meaning assigned to them in this section, unless the context otherwise requires.
    Subd. 2.[Repealed, 1998 c 389 art 10 s 23]
    Subd. 3. Agglomerating facility. "Agglomerating facility" means a plant or plants, other
than taconite plants or semitaconite facilities for the production of agglomerates and other
merchantable iron ore products not less than 80 percent of the total annual productive capacity of
which is designed and used for the production of agglomerates, together with all lands, except
iron ore and iron bearing material therein; all structures, buildings, machinery, equipment, tools
and supplies which are used or to be used in connection with such plant or plants or in connection
with the mining of agglomerate reserves; mined iron ore, iron bearing materials and concentrates
stockpiled at said plant or plants for processing therein and stockpiles of the merchantable iron
ore products which have been produced therein.
    Subd. 4. Agglomeration. "Agglomeration" means the application of a process either of
pelletizing, sintering, nodulizing, briquetting, extruding or mechanical pressure to iron ore and
iron bearing material, other than taconite and semitaconite, at temperatures in excess of 900
degrees Fahrenheit.
    Subd. 5.[Repealed, 1998 c 389 art 10 s 23]
History: 1965 c 893 s 1; 1973 c 582 s 3
298.392 QUALIFICATION OF AGGLOMERATING FACILITIES; PROCEDURE AND
ORDER.
An agglomerating facility shall be or become subject to taxation under sections 298.391 to
298.396 after it shall have been approved as such by order of the commissioner. Request for such
approval shall be in writing and shall contain a description of the facility, together with such
additional information and supporting data as the commissioner may require. The commissioner
may make reasonable rules not inconsistent herewith prescribing the form of such requests.
On determining that the facility, which may include existing structures, buildings, machinery,
equipment, tools and supplies, qualifies as an agglomerating facility under sections 298.391
to 298.396, the commissioner shall by order approve the same as such and the facility shall
thereupon become subject to the provisions of sections 298.391 to 298.396.
History: 1965 c 893 s 2; 1985 c 248 s 70; 1986 c 444
298.393 IMPOSITION OF TAX; AMOUNT.
There is hereby imposed upon agglomerating facilities and upon the production of
agglomerates and other merchantable iron ore products therein and upon the agglomerates and
other products so produced, a tax equal to five cents per gross ton of agglomerates and other
merchantable iron ore products which shall have been produced in the agglomerating facility
during the calendar year plus one-tenth of one cent per gross ton for each one percent that the iron
content of such products exceeds 55 percent, when dried at 212 degrees Fahrenheit.
History: 1965 c 893 s 3
298.394 NATURE OF TAX.
Such tax shall be in addition to the occupation tax imposed upon the business of mining
and producing iron ore and in addition to the royalty tax imposed upon royalties received for
permission to mine and produce iron ore. Except as herein otherwise provided, it shall be in lieu of
all other taxes upon the agglomerating facility or upon the production of agglomerates and other
merchantable iron ore products therein, or upon the agglomerates and other products so produced.
History: 1965 c 893 s 4
298.395 PAYMENT AND COLLECTION.
The tax provided in section 298.393 shall be collected and paid in the same manner and at
the same time as provided by law for the payment of the occupation tax. Reports shall be made
and hearings held upon the determination of the tax at the same times and in the same manner as
provided by law for the occupation tax. The commissioner of revenue shall have authority to make
reasonable rules as to the form and manner of filing reports necessary for the determination of the
tax hereunder, and by such rules may require the submission by taxpayer of such information as
may be reasonably necessary or convenient for the determination and apportionment of the tax.
All the provisions of the occupation tax law with reference to the assessment, determination and
collection of the occupation tax, including all provisions for penalties and for appeals from or
review of the orders of the commissioner of revenue relative thereto, are hereby made applicable
to the tax imposed by said section 298.393, except insofar as inconsistent herewith.
History: 1965 c 893 s 5; 1973 c 582 s 3; 1985 c 248 s 70
298.396 DISTRIBUTION OF PROCEEDS.
The proceeds of the tax collected under section 298.393 shall be distributed by the
commissioner of finance, upon certificate of the commissioner to the general fund of the state
and to the various taxing districts in which the agglomerating facility is located in the following
proportions: 22 percent thereof to the city or town; 50 percent thereof to the school district; 22
percent thereof to the county; 6 percent thereof to the state. If the agglomerating facility is located
in more than one tax district, the commissioner shall apportion equitably the proceeds of the part
of the tax going to cities or towns among such subdivisions, and the part going to school districts
among such districts, and the part going to counties among such counties, giving due consideration
to the relative extent of the facilities located in each such taxing district. The commissioner's order
making such apportionment shall be subject to review by the Tax Court at the instance of any of
the interested taxing districts, in the same manner as other orders of the commissioner. The amount
to be distributed among the several taxing districts of the state shall be divided by such districts
among the funds of such districts in the same proportion as the general ad valorem tax thereof.
History: 1965 c 698 s 3; 1965 c 893 s 6; 1969 c 399 s 49; Ex1971 c 31 art 35 s 5; 1973 c
123 art 5 s 7; 1976 c 134 s 78; 1977 c 307 s 29; 1978 c 764 s 115; 1986 c 444; 1988 c 719 art 5 s
84; 1Sp1989 c 1 art 5 s 24; 2003 c 112 art 2 s 50
298.40 [Repealed, 1987 c 268 art 9 s 43]
298.401 [Repealed, 1988 c 719 art 2 s 56]
298.402 NET OPERATING LOSSES.
For purposes of the computation under Minnesota Statutes 1988, section 298.40, subdivision
1
, clause (b), a net operating loss incurred in a taxable year beginning after December 31, 1986, is
a net operating loss carryover to each of the 15 taxable years following the taxable year of the
loss, in accordance with section 290.095. A net operating loss incurred in a taxable year beginning
after December 31, 1981, and before January 1, 1987, is a net operating loss carryover to taxable
years beginning after December 31, 1986, not to exceed the five taxable years following the
taxable year of the loss, in accordance with section 290.095. No net operating loss carryback is
allowed for a net operating loss incurred in a taxable year beginning after December 31, 1986.
History: 1988 c 719 art 2 s 53; 1992 c 464 art 2 s 5

TAXATION OF OTHER IRON BEARING MATERIAL

298.405 IRON ORE BEARING MATERIAL OTHER THAN TACONITE AND
SEMITACONITE; TAXATION.
    Subdivision 1. Imposition of tax. In any year in which iron bearing material other than
taconite and semitaconite as defined by law, having not more than 46.5 percent natural iron
content on the average, produced from any 40 acre tract or governmental lot, but not from
more than three such tracts or lots by an individual producer, is finer than or is ground to 90
percent passing 20 mesh and is treated for the purpose of separating the iron particles from silica,
alumina, or other detrimental compounds or elements unless used in a direct reduction process,
and is treated in Minnesota:
(a) By either electrostatic separation, roasting and magnetic separation, or flotation or
(b) By a direct reduction process or
(c) By any combination of such processes or
(d) By any other process or method not presently employed in gravity separation plants
employing only crushing, screening, washing, jigging, heavy media separation, spirals, cyclones,
drying or any combination thereof, the production of such ore shall be taxed in the manner and at
the rates provided for the taxation of semitaconite under section 298.35 provided that the amount
of concentrates or final product so produced each year from any one 40 acre tract or governmental
lot exceeds 100,000 tons or exceeds 25,000 tons from any one 40 acre tract or governmental lot
where the average phosphorus content exceeds .125 percent dry analysis or .10 percent sulphur
dry analysis. Such tax shall be in addition to the occupation and royalty taxes but shall be in
lieu of all other taxes upon the said 40 acre tract or governmental lot, the iron ore contained
therein, the concentrates produced, and the mining and beneficiating facilities used in such
production. The determination as to what materials will qualify under this law will be made by the
commissioner of revenue who may use the services of the Ore Estimate Division of the University
of Minnesota, Department of Civil and Mineral Engineering, which is hereby established as a
technical consultant to the commissioner for the purposes of this section. The tax imposed shall
be collected, paid, and the proceeds thereof distributed in the same manner and at the same time
as the tax imposed upon semitaconite by section 298.35 is collected, paid, and distributed.
    Subd. 2. Producer; annual report. On or before October 1 of each calendar year each
producer of the iron bearing material described above in this section subject to taxation under
section 298.35 (hereinafter called "taxpayer") shall file with the commissioner of revenue a
report in the form prescribed by the commissioner of revenue. Such report shall show, with such
other facts as the commissioner may require, by months the number of tons of such iron bearing
material produced in each 40 acre tract or governmental lot, with a description thereof and of the
number of concentrates produced therefrom, all during the current calendar year; the estimated
number of tons of such material and of concentrates which will be produced in each such tract or
governmental lot during the remainder of the current calendar year and the name and location
of the beneficiating facilities used in such production; and a description of the 40 acre tract or
governmental lot and a description of the real property which it is claimed is exempt from taxation
under the in lieu provisions of subdivision 1 by virtue of the removal of iron ore bearing material
from such 40 acre tract or governmental lot. From such report, the commissioner of revenue
shall tentatively determine the descriptions of real estate which it appears will not be subject to
general ad valorem taxation under the in lieu provisions of subdivision 1, and certify the same
to the appropriate county auditor. As soon as possible after each March 1, the commissioner of
revenue shall make a final determination of the descriptions of the real estate which will not be
subject to general ad valorem taxation under the in lieu provisions of subdivision 1, and certify
the same to the appropriate county auditor.
    Subd. 3. Producer; final report; payment. On or before February 15 of each calendar
year the taxpayer shall file with the commissioner of revenue a final report in such form as the
commissioner of revenue may prescribe setting forth the description of each 40 acre tract or
governmental lot from which such iron bearing material was processed, and the number of tons of
concentrate produced from such iron bearing materials from each 40 acre tract or governmental
lot. The taxpayer shall pay the tax due on or before the March 1 next following.
    Subd. 4. Commissioner of revenue; certification of nonexempt real property. If less than
100,000 tons of concentrates are produced from a 40 acre tract or governmental subdivision which
was listed in the report required by subdivision 2 in a calendar year, the commissioner of revenue
shall certify such fact to the county auditor of the county in which the affected lands are located.
If any of such lands and mining and beneficiating facilities have been treated as exempt from
taxation under the provisions of this section, the county auditor shall treat such lands and facilities
as omitted property and proceed with collection of the taxes thereon.
History: 1963 c 735 s 1; 1963 c 841 s 1; 1973 c 582 s 3; 1992 c 464 art 2 s 6
298.41 [Repealed, Ex1971 c 31 art 12 s 1]
298.42 [Repealed, Ex1971 c 31 art 12 s 1]
298.43 [Repealed, Ex1971 c 31 art 12 s 1]
298.44 [Repealed, Ex1971 c 31 art 12 s 1]
298.45 [Repealed, Ex1971 c 31 art 12 s 1]

UNMINED IRON ORE

298.46 EXPLORATORY DRILLING FOR IRON ORE.
    Subdivision 1. Public policy. It is hereby declared to be in the public interest of this state as
a whole, and in particular with respect to counties or other political subdivisions, to encourage the
location of all deposits of iron ore hitherto unknown to such political subdivisions, that may be
susceptible of economic exploitation.
    Subd. 2. Unmined iron ore; valuation petition. When in the opinion of the duly constituted
authorities of a taxing district there are in existence reserves of unmined iron ore located in such
district, these authorities may petition the Iron Range Resources and Rehabilitation Board for
authority to petition the county assessor to verify the existence of such reserves and to ascertain
the value thereof by drilling in a manner consistent with established engineering and geological
exploration methods, in order that such taxing district may be able to forecast in a proper manner
its future economic and fiscal potentials.
    Subd. 3. Refusal to permit valuation; easement. If the fee owner of the land on which the
unmined iron ore is believed to be located, or the owner of a mineral interest therein, refuses to
permit the county assessor to ascertain the value of unmined iron ore believed to be located on
such land, the county attorney, acting in the name of the county may institute proceedings under
chapter 117, for the express purpose of being granted an easement which would permit the county
assessor to verify whether or not such land does, in fact, contain reserves of unmined iron ore.
    Subd. 4. Discharge of easement. When the county assessor has verified the existence of
reserves of iron ore and has ascertained the value of such reserves, or in the alternative has failed
to locate any reserves susceptible of being economically exploited, the assessor shall notify the
county attorney, and the county attorney shall then, by appropriate means, request the district
court to discharge the easement secured for the purpose stated above.
    Subd. 5. Payment of costs; reimbursement. The cost of such exploration or drilling plus
any damages to the property which may be assessed by the district court shall be paid by the Iron
Range Resources and Rehabilitation Board from amounts appropriated to that board under section
298.22. The Iron Range Resources and Rehabilitation Board shall be reimbursed for one-half
of the amounts thus expended. Such reimbursement shall be made by the taxing districts in the
proportion that each such taxing district's levy on the property involved bears to the total levy on
such property. Such reimbursement shall be made to the Iron Range Resources and Rehabilitation
Board in the manner provided by section 298.221.
    Subd. 6. Refusal to reimburse; reduction of other payments. If any taxing district refuses
to pay its share of the reimbursement as provided in subdivision 5, the county auditor is hereby
authorized to reduce payments required to be made by the county to such taxing district under
other provisions of law. Thereafter the auditor shall draw a warrant, which shall be deposited with
the state treasury in accordance with section 298.221, to the credit of the Iron Range Resources
and Rehabilitation Board.
    Subd. 7. Area of application. The provisions of this section shall not apply in the Boundary
Waters Canoe Area.
History: 1974 c 365 s 1; 1975 c 271 s 6; 1986 c 444
298.47 NOTIFICATION OF COMMISSIONER OF REVENUE OF UNMINED IRON
ORE.
On ascertaining that there are in existence reserves of unmined iron ore previously
unreported, the county auditor shall transmit all the relevant information to the commissioner of
revenue as soon as expedient.
History: 1974 c 365 s 2; 1986 c 444
298.48 MINERAL RIGHTS; EXPLORATION DATA; FILING REQUIREMENTS;
PENALTIES.
    Subdivision 1. Annual filing. By April 1 each year, every owner or lessee of mineral rights
who, in respect thereto, has engaged in any exploration for or mining of taconite, semitaconite, or
iron-sulphide shall file with the commissioner of revenue all data of the following kinds in the
possession or under the control of the owner or lessee which was acquired during the preceding
calendar year:
(a) Maps and other records indicating the location, character and extent of exploration
for taconite, semitaconite, or iron-sulphides;
(b) Logs, notes and other records indicating the nature of minerals encountered during
the course of exploration;
(c) The results of any analyses of metallurgical tests or samples taken in connection with
exploration;
(d) The ultimate pit layout and the supporting cross sections; and
(e) Any other data which the commissioner of revenue may determine to be relevant to the
determination of the location, nature, extent, quality or quantity of unmined ores of said minerals.
The commissioner of revenue may compel submission of the data. The court administrator of any
court of record, upon demand of the commissioner, shall issue a subpoena for the production of
any data before the commissioner. Disobedience of subpoenas issued under this section shall be
punished by the district court of the district in which the subpoena is issued as for a contempt
of the district court.
    Subd. 2. Use of data. Notwithstanding any other law to the contrary, the commissioner
of revenue may use any data filed pursuant to subdivision 1 and any similar data otherwise
obtained to the extent and in the manner the commissioner deems necessary to project the future
availability, value, and utilization of the metallic mineral resources of this state. In making
such projections the commissioner of revenue may consult with, and provide data as deemed
appropriate to, the commissioner of natural resources.
    Subd. 3. Penalties. Any owner or lessee of mineral rights who fails, neglects or refuses to
make any filing required by this section is guilty of a gross misdemeanor.
    Subd. 4. Confidential nature of information. The data filed pursuant to subdivision 1 shall
be considered confidential for three years from the date it is filed with the commissioner. Nothing
herein contained shall be construed to prohibit the commissioner from disclosing information or
publishing statistics so classified as not to disclose the identity of particular data.
Notwithstanding the other provisions of this subdivision, the commissioner may furnish
any information supplied under this section to the commissioner of natural resources, the
commissioner of employment and economic development, or a county assessor. Any person
violating the provisions of this section shall be guilty of a gross misdemeanor.
History: 1977 c 423 art 10 s 29; 1978 c 767 s 36; 1981 c 356 s 193; 1983 c 289 s 115
subd 1; 1986 c 444; 1Sp1986 c 3 art 1 s 82; 1987 c 312 art 1 s 26 subd 2; 1992 c 464 art 1 s
56; 1998 c 389 art 10 s 21; 1Sp2003 c 4 s 1
298.51 [Repealed, 1987 c 268 art 9 s 43]
298.52 [Repealed, 1987 c 268 art 9 s 43]
298.53 [Repealed, 1987 c 268 art 9 s 43]
298.54 [Repealed, 1987 c 268 art 9 s 43]
298.55 [Repealed, 1987 c 268 art 9 s 43]
298.61 [Repealed, 1987 c 268 art 9 s 43]
298.62 [Repealed, 1987 c 268 art 9 s 43]
298.63 [Repealed, 1987 c 268 art 9 s 43]
298.64 [Repealed, 1987 c 268 art 9 s 43]
298.65 [Repealed, 1987 c 268 art 9 s 43]
298.66 [Repealed, 1987 c 268 art 9 s 43]
298.67 [Repealed, 1987 c 268 art 9 s 43]

AGGREGATE MATERIAL TAX

298.75 AGGREGATE MATERIAL REMOVAL; PRODUCTION TAX.
    Subdivision 1. Definitions. Except as may otherwise be provided, the following words, when
used in this section, shall have the meanings herein ascribed to them.
(1) "Aggregate material" shall mean nonmetallic natural mineral aggregate including, but not
limited to sand, silica sand, gravel, crushed rock, limestone, granite, and borrow, but only if the
borrow is transported on a public road, street, or highway. Aggregate material shall not include
dimension stone and dimension granite. Aggregate material must be measured or weighed after it
has been extracted from the pit, quarry, or deposit.
(2) "Person" shall mean any individual, firm, partnership, corporation, organization, trustee,
association, or other entity.
(3) "Operator" shall mean any person engaged in the business of removing aggregate
material from the surface or subsurface of the soil, for the purpose of sale, either directly or
indirectly, through the use of the aggregate material in a marketable product or service.
(4) "Extraction site" shall mean a pit, quarry, or deposit containing aggregate material and
any contiguous property to the pit, quarry, or deposit which is used by the operator for stockpiling
the aggregate material.
(5) "Importer" shall mean any person who buys aggregate material produced from a county
not listed in paragraph (6) or another state and causes the aggregate material to be imported into a
county in this state which imposes a tax on aggregate material.
(6) "County" shall mean the counties of Pope, Stearns, Benton, Sherburne, Carver, Scott,
Dakota, Le Sueur, Kittson, Marshall, Pennington, Red Lake, Polk, Norman, Mahnomen, Clay,
Becker, Carlton, St. Louis, Rock, Murray, Wilkin, Big Stone, Sibley, Hennepin, Washington,
Chisago, and Ramsey. County also means any other county whose board has voted after a public
hearing to impose the tax under this section and has notified the commissioner of revenue of
the imposition of the tax.
(7) "Borrow" shall mean granular borrow, consisting of durable particles of gravel and sand,
crushed quarry or mine rock, crushed gravel or stone, or any combination thereof, the ratio of
the portion passing the (#200) sieve divided by the portion passing the (1 inch) sieve may not
exceed 20 percent by mass.
    Subd. 2. Tax imposed. A county shall impose upon every importer and operator a production
tax up to ten cents per cubic yard or up to seven cents per ton of aggregate material removed
except that the county board may decide not to impose this tax if it determines that in the previous
year operators removed less than 20,000 tons or 14,000 cubic yards of aggregate material from
that county. The tax shall be imposed on aggregate material produced in the county when the
aggregate material is transported from the extraction site or sold. When aggregate material is
stored in a stockpile within the state of Minnesota and a public highway, road or street is not
used for transporting the aggregate material, the tax shall be imposed either when the aggregate
material is sold, or when it is transported from the stockpile site, or when it is used from the
stockpile, whichever occurs first. The tax shall be imposed on an importer when the aggregate
material is imported into the county that imposes the tax.
If the aggregate material is transported directly from the extraction site to a waterway,
railway, or another mode of transportation other than a highway, road or street, the tax imposed
by this section shall be apportioned equally between the county where the aggregate material
is extracted and the county to which the aggregate material is originally transported. If that
destination is not located in Minnesota, then the county where the aggregate material was
extracted shall receive all of the proceeds of the tax.
    Subd. 3. Report and remittance. By the 14th day following the last day of each calendar
quarter, every operator or importer shall make and file with the county auditor of the county
in which the aggregate material is removed or imported, a correct report under oath, in such
form and containing such information as the auditor shall require relative to the quantity of
aggregate material removed or imported during the preceding calendar quarter. The report shall be
accompanied by a remittance of the amount of tax due.
If any of the proceeds of the tax is to be apportioned as provided in subdivision 2, the
operator or importer shall also include on the report any relevant information concerning the
amount of aggregate material transported, the tax and the county of destination. The county
auditor shall notify the county treasurer of the amount of such tax and the county to which it is
due. The county treasurer shall remit the tax to the appropriate county within 30 days.
    Subd. 4. Auditor estimate; statement of objections. If the county auditor has not received
the report by the 15th day after the last day of each calendar quarter from the operator or importer
as required by subdivision 3 or has received an erroneous report, the county auditor shall estimate
the amount of tax due and notify the operator or importer by registered mail of the amount of tax
so estimated within the next 14 days. An operator or importer may, within 30 days from the date
of mailing the notice, and upon payment of the amount of tax determined to be due, file in the
office of the county auditor a written statement of objections to the amount of taxes determined
to be due. The statement of objections shall be deemed to be a petition within the meaning of
chapter 278, and shall be governed by sections 278.02 to 278.13.
    Subd. 5. Failure to file and pay; penalty. Failure to file the report and submit payment shall
result in a penalty of $5 for each of the first 30 days, beginning on the 15th day after the last day
of each calendar quarter, for which the report and payment is due and no statement of objection
has been filed as provided in subdivision 4, and a penalty of $10 for each subsequent day shall
be assessed against the operator or importer who is required to file the report. The penalties
imposed by this subdivision shall be collected as part of the tax and credited to the county revenue
fund. If neither the report nor a statement of objection has been filed after more than 60 days
have elapsed from the date when the notice was sent, the operator or importer who is required
to file the report is guilty of a misdemeanor.
    Subd. 6. Penalties; removal of aggregate if previous tax not paid; false report. It is a
misdemeanor for any operator or importer to remove aggregate material from a pit, quarry, or
deposit or for any importer to import aggregate material unless all taxes due under this section for
the previous reporting period have been paid or objections thereto have been filed pursuant to
subdivision 4.
It is a misdemeanor for the operator or importer who is required to file a report to file a false
report with intent to evade the tax.
    Subd. 7. Proceeds of taxes. All money collected as taxes under this section shall be
deposited in the county treasury and credited as follows, for expenditure by the county board:
(a) Sixty percent to the county road and bridge fund for expenditure for the maintenance,
construction and reconstruction of roads, highways and bridges;
(b) Thirty percent to the road and bridge fund of those towns as determined by the county
board and to the general fund or other designated fund of those cities as determined by the county
board, to be expended for maintenance, construction and reconstruction of roads, highways
and bridges; and
(c) Ten percent to a special reserve fund which is hereby established, for expenditure for
the restoration of abandoned pits, quarries, or deposits located upon public and tax forfeited
lands within the county.
If there are no abandoned pits, quarries or deposits located upon public or tax forfeited lands
within the county, this portion of the tax shall be deposited in the county road and bridge fund for
expenditure for the maintenance, construction and reconstruction of roads, highways and bridges.
    Subd. 8. Examination of records; maintenance of records. The county auditor or its duly
authorized agent may examine records, including computer records, maintained by an importer
or operator. The term "record" includes, but is not limited to, all accounts of an importer or
operator. The county auditor must have access at all reasonable times to inspect and copy all
business records related to an importer's or operator's collection, transportation, and disposal of
aggregate to the extent necessary to ensure that all aggregate material production taxes required
to be paid have been remitted to the county. The records must be maintained by the importer or
operator for no less than six years.
    Subd. 9. Tax may be imposed; St. Louis County towns. (a) If the St. Louis County
Board does not approve Laws 1997, chapter 231, article 8, section 12, as provided in Laws
1997, chapter 231, article 8, section 18, each of the following towns in St. Louis County may
impose the aggregate materials tax under this section: the towns of Alden, Brevator, Canosia,
Duluth, Fredenburg, Gnesen, Grand Lake, Industrial, Lakewood, Midway, Normanna, North
Star, Rice Lake, and Solway.
(b) For purposes of exercising the powers contained in this section, the "town" is deemed to
be the "county."
(c) In those towns located in St. Louis County that impose the tax under this section, all
provisions in this section shall apply to those towns, except that in lieu of the distribution of the
tax proceeds under subdivision 7, all proceeds from this tax shall be retained by each of the
towns that impose the tax.
(d) A tax imposed under this subdivision is effective in the town that approves it the day
after compliance by the town with the requirements of section 645.021, subdivision 3.
     Subd. 10. Tax may be imposed; Sylvan Township. (a) If Cass County does not impose
a tax under this section and approves imposition of the tax under this subdivision, the town of
Sylvan in Cass County may impose the aggregate materials tax under this section.
     (b) For purposes of exercising the powers contained in this section, the "town" is deemed to
be the "county."
     (c) All provisions in this section apply to the town of Sylvan, except that, in lieu of the
distribution of the tax proceeds under subdivision 7, all proceeds of the tax must be retained by
the town.
     (d) If Cass County imposes an aggregate materials tax under this section, the tax imposed by
the town of Sylvan under this subdivision is repealed on the effective date of the Cass County tax.
History: 1980 c 607 art 19 s 5; 1Sp1981 c 1 art 10 s 17-19; 1982 c 523 art 13 s 1; 1983 c
342 art 14 s 1; 1984 c 652 s 1; 1986 c 403 s 1,2; 1993 c 375 art 9 s 41,42; 1995 c 264 art 16
s 15; 1996 c 471 art 13 s 15; 1997 c 231 art 8 s 12-15; 1Sp2001 c 5 art 6 s 35,36; 2003 c 127
art 14 s 11; 2006 c 259 art 12 s 14

NOTE: (a) No timely filing and approval of Laws 1996, chapter 471, article 13, section 15,
appears of record for Chisago, Murray, and Rock Counties in the Office of the Secretary of State.
Laws 1996, chapter 471, article 13, section 25.
(b) No timely filing and approval of Laws 1997, chapter 231, article 8, section 12, appears
of record for St. Louis County in the Office of the Secretary of State. Laws 1997, chapter 231,
article 8, section 18.
(c) A timely filing and approval of Laws 1997, chapter 231, article 8, section 15, appears
of record in the Office of the Secretary of State for the following St. Louis County towns listed
in Laws 1997, chapter 231, article 8, section 15: Canosia, Fredenburg, Grand Lake, Lakewood,
Midway, North Star, and Solway. Laws 1997, chapter 231, article 8, section 15.
NOTE: Subdivision 10, as added by Laws 2006, chapter 259, article 12, section 14, is
effective the day after the governing body of the town of Sylvan and its chief clerical officer
comply with Minnesota Statutes, section 645.021, subdivisions 2 and 3. Laws 2006, chapter
259, article 12, section 14, the effective date.
298.76 [Repealed, 1982 c 523 art 13 s 3]