Legislative Session number- 83

Bill Name: HF2540

hf2540THIRD ENGROSSMENTOmnibus tax bill.ARTICLE 1�INCOME, FRANCHISE, AND
OCCUPATION TAXESSection 1: Income tax return filing requirements clarified.Sec.
2: Definition of tax refund or return preparer clarified.Sec. 3: Definition of
resident modified.Sec. 4: Federal taxable income subtractions expanded.Sec. 5:
Federal taxable income corporate additions provided.Sec. 6: Corporate
modifications decreasing federal taxable income +provided.Sec. 7: Maximum
allowable credits for certain claimants modified.Sec. 8: Definitions of
tax-exempt use property and taxpayer provided.Sec. 9: Definition of alternative
minimum taxable income modified.Sec. 10: Exemption amount for alternative
minimum tax modified.Sec. 11: Commissioner authority relating to foreign
operating +corporations provided.Sec. 12: Apportionment formula modified.Sec.
13: Apportionment formula for financial institutions modified.Sec. 14: Sales
factor determination procedure modified.Sec. 15: Receipts factor for financial
institutions determination +procedures modified.Sec. 16: Tax exempt property
excluded from property factor.Sec. 17: Financial institutions property factor
tax exempt property +excluded.Sec. 18: Withholding by partnerships regulations
modified.Sec. 19: Occupation tax relating to mining or producing ores
+modified.Sec. 20: Iron ore and taconite concentrates occupation tax
modified.Sec. 21: Refund payments authorization provided.ARTICLE 2�FEDERAL
UPDATESection 1: Definition of Internal Revenue Code modified.Sec. 2:
Definition of net income modified.Sec. 3: Federal taxable income additions
modified.Sec. 4: Federal taxable income subtractions modified.Sec. 5:
Corporate federal taxable income additions modified.Sec. 6: Internal revenue
code definition conforming changes provided.Sec. 7: Schedules of rates for
individuals, estates, and trusts +modified.Sec. 8: Definition of alternative
minimum taxable income modified.Sec. 9: Conforming changes with section 8.Sec.
10: Internal revenue code definition modification effective +date provided.Sec.
11: Conforming changes with section 9.ARTICLE 3�PROPERTY TAXESSection 1:
Applicability amount technical changes provided.Sec. 2: Reporting dates
modified.Sec. 3: Wind energy conversion systems land value procedures
+established.Sec. 4: Poultry litter biomass generation facility construction
date+ modified.Sec. 5: Electric generation facility regulations modified.Sec.
6: Personal property part of an electric generation facility +property tax
exemption provided.Sec. 7: Conforming changes with section 6.Sec. 8: Electric
generation facility personal property exemption +provided.Sec. 9: Biomass
electric generation facility exemption provided.Sec. 10: Conforming
changes.Sec. 11: Homestead of disabled veteran or surviving spouse +exemptions
provided.Sec. 12: Exemption effective date provided.Sec. 13: Exemption limits
modified.Sec. 14: New and existing power generation facility exemptions
+provided.Sec. 15: Date modified.Sec. 16: Revenue distribution language
modified.Sec. 17: Limited market value relating to class 1c resort property
+modified.Sec. 18: Class 1c resort property tax regulations modified.Sec. 19:
Agricultural use date added.Sec. 20: Residential property used to provide day
care property tax classification regulated.Sec. 21: Class 1 property tax
regulations modified.Sec. 22: Vacant commercial industrial property tax
regulations +provided.Sec. 23: Residential homestead market value credit
modified.Sec. 24: Proof of compliance and transfer of duties modified.Sec. 25:
Notice of proposed property taxes modified.Sec. 26: Tax statement contents
modified.Sec. 27: Property taxes payable definition provided.Sec. 28: Early
payment and E-file claim regulations provided.Sec. 29: Total revenue definition
provided.Sec. 30: Tax limit regulations modified.Sec. 31: Definition of other
natural resources land modified.Sec. 32: Definition of land utilization project
land provided.Sec. 33: Types of land payments modified.Sec. 34: Land
utilization project land added to payment regulations.Sec. 35: General
distribution regulations modified.Sec. 36: Special assessment deferral
authorization modified.Sec. 37: Recapture regulations clarified.Sec. 38:
Township levy adjustment for wind energy production tax provided.Sec. 39: Sauk
river watershed district levy authorized.Sec. 40: Prinsburg special levy
authority provided.Sec. 41: Study of property tax as a percentage of rent
required.ARTICLE 4�SALES AND USE AND LODGING TAXESSection 1: Contracts with
foreign vendors provided.Sec. 2: Definition of retail sale modified.Sec. 3:
Motor vehicle lease price tax detailed.Sec. 4: Definition of personal rapid
transit system provided.Sec. 5: Motor vehicle lease taxation procedures
provided.Sec. 6: Cigarette tax exemption provided.Sec. 7: Industrial
production consumed materials taxes modified.Sec. 8: Capital equipment tax
exemption modified.Sec. 9: Personal rapid transit system exemption
provided.Sec. 10: Public safety radio communications system exemption
+modified.Sec. 11: Donated meal exemption provided.Sec. 12: Personal rapid
transit system exemption provided.Sec. 13: Seller's permit regulations
modified.Sec. 14: Occasional sale provision applicability modified.Sec. 15:
Revenue usage regulations modified.Sec. 16: Effective date modified.ARTICLE
5�SPECIAL TAXESSection 1: Tax authority modified.Sec. 2: Definition of out
of state retailer provided.Sec. 3: Registration requirement regarding tobacco
products +established.Sec. 4: Reporting requirements provided.Sec. 5:
Cigarette wholesale tax imposed.Sec. 6: Definition of direct business
provided.Sec. 7: Mutual property and casualty companies regulations
modified.Sec. 8: Life insurance tax imposed.Sec. 9: Definition of operator
modified.Sec. 10: Tobacco product delivery sales requirements provided.Sec. 11:
Floor stocks tax imposed on cigarettes.ARTICLE 6�TAX INCREMENT
FINANCINGSection 1: Local match requirement modified.Sec. 2: Definition of
housing district modified.Sec. 3: Definition of increment modified.Sec. 4:
Filing plan with state modified.Sec. 5: Statutory reference added to housing
district regulations.Sec. 6: Tax increment requirement impositions
modified.Sec. 7: Rental property income requirement regulations modified.Sec.
8: Net tax capacity technical references added.Sec. 9: Payment disposition
modified.Sec. 10: Technical reference added.Sec. 11: Special rules
modified.Sec. 13: Expiration modified.Sec. 14: Robbinsdale TIF regulations
provided.Sec. 15: Wabasha tax increment financing district regulations
+provided.Sec. 16: Repealer.ARTICLE 7�INTERNATIONAL ECONOMIC DEVELOPMENT
ZONESSection 1: International economic development zone property +regulations
established.Sec. 2: Job credit provided.Sec. 3: Qualified business regulations
provided.Sec. 4: Tangible personal property purchase exemptions provided.Sec.
5: Definitions of related terms provided.Sec. 6: Designation of IED zone
procedure provided.Sec. 7: Foreign trade zone authority powers provided.Sec. 8:
IED zone tax incentives established.Sec. 9: Jobs credit detailed.Sec. 10: Tax
benefit repayment procedures established.Sec. 11: Reporting requirements
provided.ARTICLE 8�DEPARTMENT OF REVENUE POLICY PROVISIONSSection 1: Case
reviewer authority provided.Sec. 2: Authority delegations specified.Sec. 3:
Powers and duties of commissioner of revenue modified.Sec. 4: Sufficiency of
notice of determination or action of +commissioner of revenue provided.Sec. 5:
Period of limitations modified.Sec. 6: Technical statutory reference added.Sec.
7: Class 1B homestead regulations clarified.Sec. 8: Biotechnology and health
sciences industry zone property +date provided.Sec. 9: Partnership, fiduciary,
and S corporation reporting +requirements modified.Sec. 10: Joint income tax
return request for calculation of separate+ liability regulated.Sec. 11:
Biotechnology and border city zone refunds provided.Sec. 12: Statutory
reference added.Sec. 13: Payment withholding regulations modified.Sec. 14:
Withdrawal procedures modified.Sec. 15: Agreement requirements relating to
monetary allowances +clarified.Sec. 16: Sales tax exemption for construction
materials and +equipment modified.Sec. 17: Definition of qualified business
modified.Sec. 18: Conforming change to section 17.Sec. 19: Corporate franchise
tax exemption modified.Sec. 20: Definition of area modified.Sec. 21:
Repealer.ARTICLE 9�MISCELLANEOUSSection 1: Additional revenues priority
regulations expanded.Sec. 2: Vehicle registration without title prohibition
clarified.Sec. 3: Transfer requirements relating to vehicle dealers
modified.Sec. 4: Vehicle held for resale notification required.Sec. 5:
Centralized record keeping required for vehicle dealers.Sec. 6: Franchise fee
required for operators of card clubs.Sec. 7: Tax preparation service
legislation scope modified.Sec. 8: Itemized bill requirements clarified.Sec. 9:
Enforcement provisions exemptions for tax preparers +clarified.Sec. 10: State
death taxes not allowed in computing certain taxes.Sec. 11: Definition of
commercial production provided.Sec. 12: Tax credit maximum for 2004
doubled.Sec. 13: Task force for electronic filing of real estate documents
+modified.Sec. 14: Recommendations modified.Sec. 15: Date modified.Sec. 16:
Date modified.Sec. 17: Real estate filing surcharge dates modified.Sec. 18:
Task force transition provided.Sec. 19: Gaming machine in-lieu tax contracts
required.Sec. 20: Funds transfer provided.Sec. 21: Federal fund regulations
provided.Sec. 22: Appropriations for tax compliance initiative, property tax
+refund study, and income and home value dataset provided.Sec. 23: Effective
date. ARTICLE 10�PROPERTY TAXES TECHNICALSection 1: State demographer duties
modified.Sec. 2: Manufactured home treated as levied on January 1 of payable
+year.Sec. 3: Homestead determination procedures modified.Sec. 4: Property
relating to agriculture or cooperative farming +regulations provided.Sec. 5:
Exemption limitations modified.Sec. 6: Public charity tax exemptions
modified.Sec. 7: Taconite production tax regulations provided.Sec. 8:
Religious corporation tax regulations provided.Sec. 9: Children's home tax
regulations provided.Sec. 10: Housing and redevelopment authority tax
regulations +provided.Sec. 11: Language clarifications.Sec. 12: Technical
references added.Sec. 13: Definition of meeting days provided.Sec. 14: Date
modified.Sec. 15: Levy certification modified.Sec. 16: Commissioner report
modified.Sec. 17: Techical.Sec. 18: Prohibited purchasers list modified.Sec.
19-21: Statutory references addedSec. 22: Population estimates required.Sec.
23: Definition of population modified.Sec. 24: City aid base regulations
modified.Sec. 25: County appropriations provided and statutory reference
+added.Sec. 26: 2004 city aid reductions modified.Sec. 27: Related term
definition modified.Sec. 28: Repealer.ARTICLE 11�SALES AND USE TAXES
TECHNICALSection 1: Language updated.Sec. 2: Effective date modified.Sec. 3:
Applicability modified.Sec. 4: Tangible personal property lease or rent
regulations +modified.Sec. 5: Transportation equipment sourcing procedures
modified.Sec. 6: Effective date added.Sec. 7: Consumed materials regulations
provided.Sec. 8: Definition of capital equipment modified.Sec. 9: Preexisting
bid regulations modified.Sec. 10: Repealer.ARTICLE 12�SPECIAL TAXES
TECHNICALSection 1: Exemption for mortgage on a certain armory building
+provided.Sec. 2: Definition of health care provider modified.Sec. 3: Penalty
abatement provided.Sec. 4: Distributor definition modified.Sec. 5: Gambling
product definition modified.Sec. 6: Definition of linked bingo game
provided.Sec. 7: Definition of linked bingo game provider provided.Sec. 8:
Inspection rights modified.Sec. 9: Interstate commerce relating to cigarettes
regulations +modified.Sec. 10-11: Cigarette distributor monthly return
requirements +modified.Sec. 12: Definition of reinsurance provided.Sec. 13:
Language updated.Sec. 14: HMO regulations modified.Sec. 15: Repealer. ARTICLE
13�MISCELLANEOUS TECHNICALSection 1: Statutory reference added.Sec. 2:
Estate tax return reference added.Sec. 3: Notice sufficiency provided.Sec. 4:
Failure to file penalty modified.Sec. 5-9: Language updated, technical changes,
and statutory +references added.Sec. 10: Covenant length regulations
established.Sec. 11: Violation provisions modified.Sec. 12: Penalties
modified.Sec. 13: Repealer. ARTICLE 14�BLUE WATERSSection 1: Class 2
property definition expanded and detailed.AE