1.1CONFERENCE COMMITTEE REPORT ON H. F. No. 247
1.2A bill for an act
1.3relating to taxation; providing for voluntary contributions to the state on the
1.4income tax form; proposing coding for new law in Minnesota Statutes, chapter
1.5290.
1.6May 9, 2012
1.7The Honorable Kurt Zellers
1.8Speaker of the House of Representatives
1.9The Honorable Michelle L. Fischbach
1.10President of the Senate
1.11We, the undersigned conferees for H. F. No. 247 report that we have agreed upon the
1.12items in dispute and recommend as follows:
1.13That the Senate recede from its amendments and that H. F. No. 247 be further
1.14amended as follows:
1.15Delete everything after the enacting clause and insert:
1.16"
ARTICLE 1
1.17
DEPARTMENT POLICY AND TECHNICAL: INCOME AND
1.18
CORPORATE FRANCHISE TAXES
1.19 Section 1. Minnesota Statutes 2010, section 289A.02, is amended by adding a
1.20subdivision to read:
1.21
new text begin Subd. 9.new text end new text begin Field audit.new text end new text begin "Field audit" means the physical presence of examiners new text end
1.22
new text begin in the taxpayer's or taxpayer's representative's office conducting an examination of the new text end
1.23
new text begin taxpayer with the intention of issuing an assessment or notice of change in tax or which new text end
1.24
new text begin results in the issuing of an assessment or notice of change in tax. The examination may new text end
1.25
new text begin include inspecting a taxpayer's place of business, tangible personal property, equipment, new text end
1.26
new text begin computer systems and facilities, pertinent books, records, papers, vouchers, computer new text end
1.27
new text begin printouts, accounts, and documents. new text end
1.28
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
2.1 Sec. 2. Minnesota Statutes 2010, section 289A.26, subdivision 3, is amended to read:
2.2 Subd. 3.
Short taxable year. (a)
new text begin A corporation or new text end an entity with a short taxable
2.3year of less than 12 months, but at least four months, must pay estimated tax in equal
2.4installments on or before the 15th day of the third, sixth, ninth, and final month of the
2.5short taxable year, to the extent applicable based on the number of months in the short
2.6taxable year.
2.7(b)
new text begin A corporation or new text end an entity is not required to make estimated tax payments for a
2.8short taxable year unless its tax liability before the first day of the last month of the taxable
2.9year can reasonably be expected to exceed $500.
2.10(c) No payment is required for a short taxable year of less than four months.
2.11
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
2.12 Sec. 3. Minnesota Statutes 2010, section 289A.26, subdivision 4, is amended to read:
2.13 Subd. 4.
Underpayment of estimated tax. If there is an underpayment of estimated
2.14tax by a corporation
new text begin or an entitynew text end , there shall be added to the tax for the taxable year an
2.15amount determined at the rate in section
270C.40 on the amount of the underpayment,
2.16determined under subdivision 5, for the period of the underpayment determined under
2.17subdivision 6. This subdivision does not apply in the first taxable year that a corporation is
2.18subject to the tax imposed under section
290.02new text begin or an entity is subject to the tax imposed new text end
2.19
new text begin under section 290.05, subdivision 3new text end .
2.20
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
2.21 Sec. 4. Minnesota Statutes 2010, section 289A.26, subdivision 7, is amended to read:
2.22 Subd. 7.
Required installments. (a) Except as otherwise provided in this
2.23subdivision, the amount of a required installment is 25 percent of the required annual
2.24payment.
2.25(b) Except as otherwise provided in this subdivision, the term "required annual
2.26payment" means the lesser of:
2.27(1) 100 percent of the tax shown on the return for the taxable year, or, if no return is
2.28filed, 100 percent of the tax for that year; or
2.29(2) 100 percent of the tax shown on the return of the
new text begin corporation ornew text end entity for the
2.30preceding taxable year provided the return was for a full 12-month period, showed a
2.31liability, and was filed by the
new text begin corporation ornew text end entity.
2.32(c) Except for determining the first required installment for any taxable year,
2.33paragraph (b), clause (2), does not apply in the case of a large corporation. The term
3.1"large corporation" means a corporation or any predecessor corporation that had taxable
3.2net income of $1,000,000 or more for any taxable year during the testing period. The
3.3term "testing period" means the three taxable years immediately preceding the taxable
3.4year involved. A reduction allowed to a large corporation for the first installment that is
3.5allowed by applying paragraph (b), clause (2), must be recaptured by increasing the next
3.6required installment by the amount of the reduction.
3.7(d) In the case of a required installment, if the corporation
new text begin or entitynew text end establishes that
3.8the annualized income installment is less than the amount determined in paragraph (a), the
3.9amount of the required installment is the annualized income installment and the recapture
3.10of previous quarters' reductions allowed by this paragraph must be recovered by increasing
3.11later required installments to the extent the reductions have not previously been recovered.
3.12(e) The "annualized income installment" is the excess, if any, of:
3.13(1) an amount equal to the applicable percentage of the tax for the taxable year
3.14computed by placing on an annualized basis the taxable income:
3.15(i) for the first two months of the taxable year, in the case of the first required
3.16installment;
3.17(ii) for the first two months or for the first five months of the taxable year, in the
3.18case of the second required installment;
3.19(iii) for the first six months or for the first eight months of the taxable year, in the
3.20case of the third required installment; and
3.21(iv) for the first nine months or for the first 11 months of the taxable year, in the
3.22case of the fourth required installment, over
3.23(2) the aggregate amount of any prior required installments for the taxable year.
3.24(3) For the purpose of this paragraph, the annualized income shall be computed
3.25by placing on an annualized basis the taxable income for the year up to the end of the
3.26month preceding the due date for the quarterly payment multiplied by 12 and dividing
3.27the resulting amount by the number of months in the taxable year (2, 5, 6, 8, 9, or 11 as
3.28the case may be) referred to in clause (1).
3.29(4) The "applicable percentage" used in clause (1) is:
3.30
3.31
3.32
For the following
required
installments:
The applicable
percentage is:
3.33
1st
25
3.34
2nd
50
3.35
3rd
75
3.36
4th
100
4.1(f)(1) If this paragraph applies, the amount determined for any installment must
4.2be determined in the following manner:
4.3(i) take the taxable income for the months during the taxable year preceding the
4.4filing month;
4.5(ii) divide that amount by the base period percentage for the months during the
4.6taxable year preceding the filing month;
4.7(iii) determine the tax on the amount determined under item (ii); and
4.8(iv) multiply the tax computed under item (iii) by the base period percentage for the
4.9filing month and the months during the taxable year preceding the filing month.
4.10(2) For purposes of this paragraph:
4.11(i) the "base period percentage" for a period of months is the average percent that the
4.12taxable income for the corresponding months in each of the three preceding taxable years
4.13bears to the taxable income for the three preceding taxable years;
4.14(ii) the term "filing month" means the month in which the installment is required
4.15to be paid;
4.16(iii) this paragraph only applies if the base period percentage for any six consecutive
4.17months of the taxable year equals or exceeds 70 percent; and
4.18(iv) the commissioner may provide by rule for the determination of the base period
4.19percentage in the case of reorganizations, new corporations
new text begin or entitiesnew text end , and other similar
4.20circumstances.
4.21(3) In the case of a required installment determined under this paragraph, if the
new text begin new text end
4.22
new text begin corporation ornew text end entity determines that the installment is less than the amount determined in
4.23paragraph (a), the amount of the required installment is the amount determined under this
4.24paragraph and the recapture of previous quarters' reductions allowed by this paragraph
4.25must be recovered by increasing later required installments to the extent the reductions
4.26have not previously been recovered.
4.27
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
4.28 Sec. 5. Minnesota Statutes 2010, section 289A.26, subdivision 9, is amended to read:
4.29 Subd. 9.
Failure to file an estimate. In the case of
new text begin a corporation ornew text end an entity
4.30that fails to file an estimated tax for a taxable year when one is required, the period of
4.31the underpayment runs from the four installment dates in subdivision 2 or 3, whichever
4.32applies, to the earlier of the periods in subdivision 6, clauses (1) and (2).
4.33
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
5.1 Sec. 6. Minnesota Statutes 2010, section 289A.38, subdivision 7, is amended to read:
5.2 Subd. 7.
Federal tax changes. If the amount of income, items of tax preference,
5.3deductions, or credits for any year of a taxpayer, or the wages paid by a taxpayer for
5.4any period, as reported to the Internal Revenue Service is changed or corrected by the
5.5commissioner of Internal Revenue or other officer of the United States or other competent
5.6authority, or where a renegotiation of a contract or subcontract with the United States
5.7results in a change in income, items of tax preference, deductions, credits, or withholding
5.8tax, or, in the case of estate tax, where there are adjustments to the taxable estate, the
5.9taxpayer shall report the change or correction or renegotiation results in writing to the
5.10commissioner
new text begin of revenuenew text end . The report must be submitted within 180 days after the
5.11final determination and must be in the form of either an amended Minnesota estate,
5.12withholding tax, corporate franchise tax, or income tax return conceding the accuracy of
5.13the federal determination or a letter detailing how the federal determination is incorrect
5.14or does not change the Minnesota tax. An amended Minnesota income tax return must
5.15be accompanied by an amended property tax refund return, if necessary. A taxpayer
5.16filing an amended federal tax return must also file a copy of the amended return with the
5.17commissioner of revenue within 180 days after filing the amended return.
5.18
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
5.19 Sec. 7. Minnesota Statutes 2010, section 289A.38, subdivision 8, is amended to read:
5.20 Subd. 8.
Failure to report change or correction of federal returnnew text begin Time new text end
5.21
new text begin requirement to report federal tax changesnew text end . If a taxpayer fails to make a report as
5.22required by subdivision 7, the commissioner may recompute the tax, including a refund,
5.23based on information available to the commissioner. The tax may be recomputed within
5.24six years after the report should have been filed, notwithstanding any period of limitations
5.25to the contrary.
new text begin A taxpayer must submit the report or file the amended return required by new text end
5.26
new text begin subdivision 7 within 180 days after the final determination by the commissioner of internal new text end
5.27
new text begin revenue or other officer of the United States or other competent authority of a change or new text end
5.28
new text begin correction of the person's federal tax return or the filing of an amended federal tax return.new text end
5.29
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
5.30 Sec. 8. Minnesota Statutes 2010, section 289A.38, subdivision 9, is amended to read:
5.31 Subd. 9.
Report made of change or correction of federal returnnew text begin Limitations new text end
5.32
new text begin on time for assessment for federal tax changesnew text end . new text begin (a) new text end If a taxpayer is required to make a
new text begin new text end
5.33
new text begin submits thenew text end report under
new text begin or files the amended return as required bynew text end subdivision 7, and does
6.1report the change or files a copy of the amended return
new text begin at any time within six years after new text end
6.2
new text begin the time period provided by subdivision 8new text end , the commissioner may recompute and reassess
6.3the tax due, including a refund (1) within one year after the report or amended return is
6.4filed with the commissioner, notwithstanding any period of limitations to the contrary, or
6.5(2) within any other applicable period stated in this section, whichever period is longer.
6.6The period provided for the carryback of any amount of loss or credit is also extended as
6.7provided in this subdivision, notwithstanding any law to the contrary.
6.8
new text begin (b) If a taxpayer fails to submit the report or file the amended return as required by new text end
6.9
new text begin subdivision 7, the commissioner may recompute the tax, including a refund, based on new text end
6.10
new text begin information available to the commissioner. The tax may be recomputed within six years new text end
6.11
new text begin after the time period provided by subdivision 8, notwithstanding any period of limitations new text end
6.12
new text begin to the contrary.new text end
6.13
new text begin (c)new text end If the commissioner has completed a field audit of the taxpayer, and, but for this
6.14subdivision, the commissioner's time period to adjust the tax has expired, the additional
6.15tax due or refund is limited to only those changes that are required to be made to the
6.16return which relate to the changes made on the federal return. This subdivision does not
6.17apply to sales and use tax.
6.18For purposes of this subdivision and section
289A.42, subdivision 2, a "field audit"
6.19is the physical presence of examiners in the taxpayer's or taxpayer's representative's office
6.20conducting an examination of the taxpayer with the intention of issuing an assessment or
6.21notice of change in tax or which results in the issuing of an assessment or notice of change
6.22in tax. The examination may include inspecting a taxpayer's place of business, tangible
6.23personal property, equipment, computer systems and facilities, pertinent books, records,
6.24papers, vouchers, computer printouts, accounts, and documents.
6.25
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
6.26 Sec. 9. Minnesota Statutes 2010, section 289A.42, subdivision 2, is amended to read:
6.27 Subd. 2.
Federal extensions. When a taxpayer consents to an extension of time
6.28for the assessment of federal withholding or income taxes, the period in which the
6.29commissioner may recompute the tax is also extended, notwithstanding any period of
6.30limitations to the contrary, as follows:
6.31(1) for the periods provided in section
289A.38, subdivisions 8 and 9;
6.32(2) for six months following the expiration of the extended federal period of
6.33limitations when no change is made by the federal authority. If no change is made by the
6.34federal authority, and, but for this subdivision, the commissioner's time period to adjust
6.35the tax has expired, and if the commissioner has completed a field audit of the taxpayer, no
7.1additional changes resulting in additional tax due or a refund may be made. For purposes
7.2of this subdivision, "field audit" has the meaning given it in section
289A.38, subdivision 9.
7.3
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
7.4 Sec. 10. Minnesota Statutes 2010, section 289A.60, subdivision 24, is amended to read:
7.5 Subd. 24.
Penalty for failure to notify of federal change. If a person fails to
7.6report to the commissioner a change or correction of the person's federal return in the
7.7manner
new text begin prescribed by section 289A.38, subdivision 7,new text end and
new text begin within the 180-day new text end time
new text begin period new text end
7.8prescribed in section
289A.38, subdivision 7new text begin 8new text end , there must be added to the tax an amount
7.9equal to ten percent of the amount of any underpayment of Minnesota tax attributable to
7.10the federal change.
7.11
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
7.12 Sec. 11. Minnesota Statutes 2010, section 290.01, subdivision 6b, is amended to read:
7.13 Subd. 6b.
Foreign operating corporation. The term "foreign operating
7.14corporation," when applied to a corporation, means a domestic corporation with the
7.15following characteristics:
7.16 (1) it is part of a unitary business at least one member of which is taxable in this state;
7.17 (2) it is not a foreign sales corporation under section 922 of the Internal Revenue
7.18Code, as amended through December 31, 1999, for the taxable year;
7.19 (3) it is not an interest charge domestic international sales corporation under sections
7.20992, 993, 994, and 995 of the Internal Revenue Code;
7.21 (4) either (i) it has in effect a valid election under section 936 of the Internal Revenue
7.22Code; or (ii) at least 80 percent of the gross income from all sources of the corporation in
7.23the tax year is active foreign business income; and
7.24 (5) for purposes of this subdivision, active foreign business income means gross
7.25income that is (i) derived from sources without the United States, as defined in subtitle A,
7.26chapter 1, subchapter N, part 1, of the Internal Revenue Code; and (ii) attributable to the
7.27active conduct of a trade or business in a foreign country.
7.28
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxable years beginning after new text end
7.29
new text begin December 31, 2011.new text end
7.30 Sec. 12. Minnesota Statutes 2011 Supplement, section 290.01, subdivision 19b,
7.31is amended to read:
8.1 Subd. 19b.
Subtractions from federal taxable income. For individuals, estates,
8.2and trusts, there shall be subtracted from federal taxable income:
8.3 (1) net interest income on obligations of any authority, commission, or
8.4instrumentality of the United States to the extent includable in taxable income for federal
8.5income tax purposes but exempt from state income tax under the laws of the United States;
8.6 (2) if included in federal taxable income, the amount of any overpayment of income
8.7tax to Minnesota or to any other state, for any previous taxable year, whether the amount
8.8is received as a refund or as a credit to another taxable year's income tax liability;
8.9 (3) the amount paid to others, less the amount used to claim the credit allowed under
8.10section
290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten
8.11to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and
8.12transportation of each qualifying child in attending an elementary or secondary school
8.13situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a
8.14resident of this state may legally fulfill the state's compulsory attendance laws, which
8.15is not operated for profit, and which adheres to the provisions of the Civil Rights Act
8.16of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or
8.17tuition as defined in section
290.0674, subdivision 1, clause (1). As used in this clause,
8.18"textbooks" includes books and other instructional materials and equipment purchased
8.19or leased for use in elementary and secondary schools in teaching only those subjects
8.20legally and commonly taught in public elementary and secondary schools in this state.
8.21Equipment expenses qualifying for deduction includes expenses as defined and limited in
8.22section
290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional
8.23books and materials used in the teaching of religious tenets, doctrines, or worship, the
8.24purpose of which is to instill such tenets, doctrines, or worship, nor does it include books
8.25or materials for, or transportation to, extracurricular activities including sporting events,
8.26musical or dramatic events, speech activities, driver's education, or similar programs. No
8.27deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or
8.28the qualifying child's vehicle to provide such transportation for a qualifying child. For
8.29purposes of the subtraction provided by this clause, "qualifying child" has the meaning
8.30given in section 32(c)(3) of the Internal Revenue Code;
8.31 (4) income as provided under section
290.0802;
8.32 (5) to the extent included in federal adjusted gross income, income realized on
8.33disposition of property exempt from tax under section
290.491;
8.34 (6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
8.35of the Internal Revenue Code in determining federal taxable income by an individual
8.36who does not itemize deductions for federal income tax purposes for the taxable year, an
9.1amount equal to 50 percent of the excess of charitable contributions over $500 allowable
9.2as a deduction for the taxable year under section 170(a) of the Internal Revenue Code,
9.3under the provisions of Public Law 109-1 and Public Law 111-126;
9.4 (7) for individuals who are allowed a federal foreign tax credit for taxes that do not
9.5qualify for a credit under section
290.06, subdivision 22, an amount equal to the carryover
9.6of subnational foreign taxes for the taxable year, but not to exceed the total subnational
9.7foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
9.8"federal foreign tax credit" means the credit allowed under section 27 of the Internal
9.9Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed
9.10under section 904(c) of the Internal Revenue Code minus national level foreign taxes to
9.11the extent they exceed the federal foreign tax credit;
9.12 (8) in each of the five tax years immediately following the tax year in which an
9.13addition is required under subdivision 19a, clause (7), or 19c, clause (15)
new text begin (14)new text end , in the case
9.14of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth
9.15of the delayed depreciation. For purposes of this clause, "delayed depreciation" means
9.16the amount of the addition made by the taxpayer under subdivision 19a, clause (7), or
9.17subdivision 19c, clause (15)
new text begin (14)new text end , in the case of a shareholder of an S corporation, minus
9.18the positive value of any net operating loss under section 172 of the Internal Revenue
9.19Code generated for the tax year of the addition. The resulting delayed depreciation
9.20cannot be less than zero;
9.21 (9) job opportunity building zone income as provided under section
469.316;
9.22 (10) to the extent included in federal taxable income, the amount of compensation
9.23paid to members of the Minnesota National Guard or other reserve components of the
9.24United States military for active service, excluding compensation for services performed
9.25under the Active Guard Reserve (AGR) program. For purposes of this clause, "active
9.26service" means (i) state active service as defined in section
190.05, subdivision 5a, clause
9.27(1); or (ii) federally funded state active service as defined in section
190.05, subdivision
9.285b
, but "active service" excludes service performed in accordance with section
190.08,
9.29subdivision 3
;
9.30 (11) to the extent included in federal taxable income, the amount of compensation
9.31paid to Minnesota residents who are members of the armed forces of the United States
9.32or United Nations for active duty performed under United States Code, title 10; or the
9.33authority of the United Nations;
9.34 (12) an amount, not to exceed $10,000, equal to qualified expenses related to a
9.35qualified donor's donation, while living, of one or more of the qualified donor's organs
9.36to another person for human organ transplantation. For purposes of this clause, "organ"
10.1means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow;
10.2"human organ transplantation" means the medical procedure by which transfer of a human
10.3organ is made from the body of one person to the body of another person; "qualified
10.4expenses" means unreimbursed expenses for both the individual and the qualified donor
10.5for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses
10.6may be subtracted under this clause only once; and "qualified donor" means the individual
10.7or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An
10.8individual may claim the subtraction in this clause for each instance of organ donation for
10.9transplantation during the taxable year in which the qualified expenses occur;
10.10 (13) in each of the five tax years immediately following the tax year in which an
10.11addition is required under subdivision 19a, clause (8), or 19c, clause (16)
new text begin (15)new text end , in the case
10.12of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth
10.13of the addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause
10.14(16)
new text begin (15)new text end , in the case of a shareholder of a corporation that is an S corporation, minus the
10.15positive value of any net operating loss under section 172 of the Internal Revenue Code
10.16generated for the tax year of the addition. If the net operating loss exceeds the addition for
10.17the tax year, a subtraction is not allowed under this clause;
10.18 (14) to the extent included in the federal taxable income of a nonresident of
10.19Minnesota, compensation paid to a service member as defined in United States Code, title
10.2010, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief
10.21Act, Public Law 108-189, section 101(2);
10.22 (15) international economic development zone income as provided under section
10.23469.325
;
10.24 (16) to the extent included in federal taxable income, the amount of national service
10.25educational awards received from the National Service Trust under United States Code,
10.26title 42, sections 12601 to 12604, for service in an approved Americorps National Service
10.27program;
10.28(17) to the extent included in federal taxable income, discharge of indebtedness
10.29income resulting from reacquisition of business indebtedness included in federal taxable
10.30income under section 108(i) of the Internal Revenue Code. This subtraction applies only
10.31to the extent that the income was included in net income in a prior year as a result of the
10.32addition under section
290.01, subdivision 19a, clause (16); and
10.33(18) the amount of the net operating loss allowed under section
290.095, subdivision
10.3411, paragraph (c).
10.35
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxable years beginning after new text end
10.36
new text begin December 31, 2011.new text end
11.1 Sec. 13. Minnesota Statutes 2011 Supplement, section 290.01, subdivision 19c,
11.2is amended to read:
11.3 Subd. 19c.
Corporations; additions to federal taxable income. For corporations,
11.4there shall be added to federal taxable income:
11.5 (1) the amount of any deduction taken for federal income tax purposes for income,
11.6excise, or franchise taxes based on net income or related minimum taxes, including but not
11.7limited to the tax imposed under section
290.0922, paid by the corporation to Minnesota,
11.8another state, a political subdivision of another state, the District of Columbia, or any
11.9foreign country or possession of the United States;
11.10 (2) interest not subject to federal tax upon obligations of: the United States, its
11.11possessions, its agencies, or its instrumentalities; the state of Minnesota or any other
11.12state, any of its political or governmental subdivisions, any of its municipalities, or any
11.13of its governmental agencies or instrumentalities; the District of Columbia; or Indian
11.14tribal governments;
11.15 (3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal
11.16Revenue Code;
11.17 (4) the amount of any net operating loss deduction taken for federal income tax
11.18purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss
11.19deduction under section 810 of the Internal Revenue Code;
11.20 (5) the amount of any special deductions taken for federal income tax purposes
11.21under sections 241 to 247 and 965 of the Internal Revenue Code;
11.22 (6) losses from the business of mining, as defined in section
290.05, subdivision 1,
11.23clause (a), that are not subject to Minnesota income tax;
11.24 (7) the amount of any capital losses deducted for federal income tax purposes under
11.25sections 1211 and 1212 of the Internal Revenue Code;
11.26 (8) the exempt foreign trade income of a foreign sales corporation under sections
11.27921(a) and 291 of the Internal Revenue Code;
11.28 (9) the amount of percentage depletion deducted under sections 611 through 614 and
11.29291 of the Internal Revenue Code;
11.30 (10) for certified pollution control facilities placed in service in a taxable year
11.31beginning before December 31, 1986, and for which amortization deductions were elected
11.32under section 169 of the Internal Revenue Code of 1954, as amended through December
11.3331, 1985, the amount of the amortization deduction allowed in computing federal taxable
11.34income for those facilities;
11.35 (11) the amount of any deemed dividend from a foreign operating corporation
11.36determined pursuant to section
290.17, subdivision 4, paragraph (g). The deemed dividend
12.1shall be reduced by the amount of the addition to income required by clauses
new text begin (19), new text end (20),
12.2(21),
new text begin and new text end (22), and (23);
12.3 (12) the amount of a partner's pro rata share of net income which does not flow
12.4through to the partner because the partnership elected to pay the tax on the income under
12.5section 6242(a)(2) of the Internal Revenue Code;
12.6 (13) the amount of net income excluded under section 114 of the Internal Revenue
12.7Code;
12.8 (14)
new text begin (13)new text end any increase in subpart F income, as defined in section 952(a) of the
12.9Internal Revenue Code, for the taxable year when subpart F income is calculated without
12.10regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;
12.11 (15)
new text begin (14)new text end 80 percent of the depreciation deduction allowed under section
12.12168(k)(1)(A) and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if
12.13the taxpayer has an activity that in the taxable year generates a deduction for depreciation
12.14under section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable
12.15year that the taxpayer is not allowed to claim for the taxable year, "the depreciation
12.16allowed under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess
12.17of the depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A)
12.18over the amount of the loss from the activity that is not allowed in the taxable year. In
12.19succeeding taxable years when the losses not allowed in the taxable year are allowed, the
12.20depreciation under section 168(k)(1)(A) and (k)(4)(A) is allowed;
12.21 (16)
new text begin (15)new text end 80 percent of the amount by which the deduction allowed by section 179 of
12.22the Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal
12.23Revenue Code of 1986, as amended through December 31, 2003;
12.24 (17)
new text begin (16)new text end to the extent deducted in computing federal taxable income, the amount of
12.25the deduction allowable under section 199 of the Internal Revenue Code;
12.26 (18)
new text begin (17)new text end for taxable years beginning before January 1, 2013, the exclusion allowed
12.27under section 139A of the Internal Revenue Code for federal subsidies for prescription
12.28drug plans;
12.29 (19)
new text begin (18)new text end the amount of expenses disallowed under section
290.10, subdivision 2;
12.30 (20)
new text begin (19)new text end an amount equal to the interest and intangible expenses, losses, and
12.31costs paid, accrued, or incurred by any member of the taxpayer's unitary group to or for
12.32the benefit of a corporation that is a member of the taxpayer's unitary business group
12.33that qualifies as a foreign operating corporation. For purposes of this clause, intangible
12.34expenses and costs include:
13.1 (i) expenses, losses, and costs for, or related to, the direct or indirect acquisition,
13.2use, maintenance or management, ownership, sale, exchange, or any other disposition of
13.3intangible property;
13.4 (ii) losses incurred, directly or indirectly, from factoring transactions or discounting
13.5transactions;
13.6 (iii) royalty, patent, technical, and copyright fees;
13.7 (iv) licensing fees; and
13.8 (v) other similar expenses and costs.
13.9For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent
13.10applications, trade names, trademarks, service marks, copyrights, mask works, trade
13.11secrets, and similar types of intangible assets.
13.12This clause does not apply to any item of interest or intangible expenses or costs paid,
13.13accrued, or incurred, directly or indirectly, to a foreign operating corporation with respect
13.14to such item of income to the extent that the income to the foreign operating corporation
13.15is income from sources without the United States as defined in subtitle A, chapter 1,
13.16subchapter N, part 1, of the Internal Revenue Code;
13.17 (21)
new text begin (20)new text end except as already included in the taxpayer's taxable income pursuant to
13.18clause (20)
new text begin (19)new text end , any interest income and income generated from intangible property
13.19received or accrued by a foreign operating corporation that is a member of the taxpayer's
13.20unitary group. For purposes of this clause, income generated from intangible property
13.21includes:
13.22 (i) income related to the direct or indirect acquisition, use, maintenance or
13.23management, ownership, sale, exchange, or any other disposition of intangible property;
13.24 (ii) income from factoring transactions or discounting transactions;
13.25 (iii) royalty, patent, technical, and copyright fees;
13.26 (iv) licensing fees; and
13.27 (v) other similar income.
13.28For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent
13.29applications, trade names, trademarks, service marks, copyrights, mask works, trade
13.30secrets, and similar types of intangible assets.
13.31This clause does not apply to any item of interest or intangible income received or accrued
13.32by a foreign operating corporation with respect to such item of income to the extent that
13.33the income is income from sources without the United States as defined in subtitle A,
13.34chapter 1, subchapter N, part 1, of the Internal Revenue Code;
13.35 (22)
new text begin (21)new text end the dividends attributable to the income of a foreign operating corporation
13.36that is a member of the taxpayer's unitary group in an amount that is equal to the dividends
14.1paid deduction of a real estate investment trust under section 561(a) of the Internal
14.2Revenue Code for amounts paid or accrued by the real estate investment trust to the
14.3foreign operating corporation;
14.4 (23)
new text begin (22)new text end the income of a foreign operating corporation that is a member of the
14.5taxpayer's unitary group in an amount that is equal to gains derived from the sale of real or
14.6personal property located in the United States;
14.7 (24)
new text begin (23)new text end for taxable years beginning before January 1, 2010, the additional amount
14.8allowed as a deduction for donation of computer technology and equipment under section
14.9170(e)(6) of the Internal Revenue Code, to the extent deducted from taxable income; and
14.10(25)
new text begin (24)new text end discharge of indebtedness income resulting from reacquisition of business
14.11indebtedness and deferred under section 108(i) of the Internal Revenue Code.
14.12
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxable years beginning after new text end
14.13
new text begin December 31, 2011.new text end
14.14 Sec. 14. Minnesota Statutes 2010, section 290.01, subdivision 19d, is amended to read:
14.15 Subd. 19d.
Corporations; modifications decreasing federal taxable income. For
14.16corporations, there shall be subtracted from federal taxable income after the increases
14.17provided in subdivision 19c:
14.18 (1) the amount of foreign dividend gross-up added to gross income for federal
14.19income tax purposes under section 78 of the Internal Revenue Code;
14.20 (2) the amount of salary expense not allowed for federal income tax purposes due to
14.21claiming the work opportunity credit under section 51 of the Internal Revenue Code;
14.22 (3) any dividend (not including any distribution in liquidation) paid within the
14.23taxable year by a national or state bank to the United States, or to any instrumentality of
14.24the United States exempt from federal income taxes, on the preferred stock of the bank
14.25owned by the United States or the instrumentality;
14.26 (4) amounts disallowed for intangible drilling costs due to differences between
14.27this chapter and the Internal Revenue Code in taxable years beginning before January
14.281, 1987, as follows:
14.29 (i) to the extent the disallowed costs are represented by physical property, an amount
14.30equal to the allowance for depreciation under Minnesota Statutes 1986, section
290.09,
14.31subdivision 7
, subject to the modifications contained in subdivision 19e; and
14.32 (ii) to the extent the disallowed costs are not represented by physical property, an
14.33amount equal to the allowance for cost depletion under Minnesota Statutes 1986, section
14.34290.09, subdivision 8
;
15.1 (5) the deduction for capital losses pursuant to sections 1211 and 1212 of the
15.2Internal Revenue Code, except that:
15.3 (i) for capital losses incurred in taxable years beginning after December 31, 1986,
15.4capital loss carrybacks shall not be allowed;
15.5 (ii) for capital losses incurred in taxable years beginning after December 31, 1986,
15.6a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be
15.7allowed;
15.8 (iii) for capital losses incurred in taxable years beginning before January 1, 1987, a
15.9capital loss carryback to each of the three taxable years preceding the loss year, subject to
15.10the provisions of Minnesota Statutes 1986, section
290.16, shall be allowed; and
15.11 (iv) for capital losses incurred in taxable years beginning before January 1, 1987,
15.12a capital loss carryover to each of the five taxable years succeeding the loss year to the
15.13extent such loss was not used in a prior taxable year and subject to the provisions of
15.14Minnesota Statutes 1986, section
290.16, shall be allowed;
15.15 (6) an amount for interest and expenses relating to income not taxable for federal
15.16income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and
15.17expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or
15.18291 of the Internal Revenue Code in computing federal taxable income;
15.19 (7) in the case of mines, oil and gas wells, other natural deposits, and timber for
15.20which percentage depletion was disallowed pursuant to subdivision 19c, clause (9), a
15.21reasonable allowance for depletion based on actual cost. In the case of leases the deduction
15.22must be apportioned between the lessor and lessee in accordance with rules prescribed
15.23by the commissioner. In the case of property held in trust, the allowable deduction must
15.24be apportioned between the income beneficiaries and the trustee in accordance with the
15.25pertinent provisions of the trust, or if there is no provision in the instrument, on the basis
15.26of the trust's income allocable to each;
15.27 (8) for certified pollution control facilities placed in service in a taxable year
15.28beginning before December 31, 1986, and for which amortization deductions were elected
15.29under section 169 of the Internal Revenue Code of 1954, as amended through December
15.3031, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes
15.311986, section
290.09, subdivision 7;
15.32 (9) amounts included in federal taxable income that are due to refunds of income,
15.33excise, or franchise taxes based on net income or related minimum taxes paid by the
15.34corporation to Minnesota, another state, a political subdivision of another state, the
15.35District of Columbia, or a foreign country or possession of the United States to the extent
16.1that the taxes were added to federal taxable income under section
290.01, subdivision 19c,
16.2clause (1), in a prior taxable year;
16.3 (10) 80 percent of royalties, fees, or other like income accrued or received from a
16.4foreign operating corporation or a foreign corporation which is part of the same unitary
16.5business as the receiving corporation, unless the income resulting from such payments or
16.6accruals is income from sources within the United States as defined in subtitle A, chapter
16.71, subchapter N, part 1, of the Internal Revenue Code;
16.8 (11) income or gains from the business of mining as defined in section
290.05,
16.9subdivision 1
, clause (a), that are not subject to Minnesota franchise tax;
16.10 (12) the amount of disability access expenditures in the taxable year which are not
16.11allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code;
16.12 (13) the amount of qualified research expenses not allowed for federal income tax
16.13purposes under section 280C(c) of the Internal Revenue Code, but only to the extent that
16.14the amount exceeds the amount of the credit allowed under section
290.068;
16.15 (14) the amount of salary expenses not allowed for federal income tax purposes due
16.16to claiming the Indian employment credit under section 45A(a) of the Internal Revenue
16.17Code;
16.18 (15) for a corporation whose foreign sales corporation, as defined in section 922
16.19of the Internal Revenue Code, constituted a foreign operating corporation during any
16.20taxable year ending before January 1, 1995, and a return was filed by August 15, 1996,
16.21claiming the deduction under section
290.21, subdivision 4, for income received from
16.22the foreign operating corporation, an amount equal to
multiplied by the amount of
16.23income excluded under section 114 of the Internal Revenue Code, provided the income is
16.24not income of a foreign operating company;
16.25 (16)
new text begin (15)new text end any decrease in subpart F income, as defined in section 952(a) of the
16.26Internal Revenue Code, for the taxable year when subpart F income is calculated without
16.27regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;
16.28 (17)
new text begin (16)new text end in each of the five tax years immediately following the tax year in which an
16.29addition is required under subdivision 19c, clause (15)
new text begin (14)new text end , an amount equal to one-fifth
16.30of the delayed depreciation. For purposes of this clause, "delayed depreciation" means the
16.31amount of the addition made by the taxpayer under subdivision 19c, clause (15)
new text begin (14)new text end . The
16.32resulting delayed depreciation cannot be less than zero;
16.33 (18)
new text begin (17)new text end in each of the five tax years immediately following the tax year in which an
16.34addition is required under subdivision 19c, clause (16)
new text begin (15)new text end , an amount equal to one-fifth
16.35of the amount of the addition; and
17.1(19)
new text begin (18)new text end to the extent included in federal taxable income, discharge of indebtedness
17.2income resulting from reacquisition of business indebtedness included in federal taxable
17.3income under section 108(i) of the Internal Revenue Code. This subtraction applies only
17.4to the extent that the income was included in net income in a prior year as a result of the
17.5addition under section
290.01, subdivision 19c, clause (25)
new text begin (24)new text end .
17.6
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxable years beginning after new text end
17.7
new text begin December 31, 2011.new text end
17.8 Sec. 15. Minnesota Statutes 2010, section 290.0921, subdivision 3, is amended to read:
17.9 Subd. 3.
Alternative minimum taxable income. "Alternative minimum taxable
17.10income" is Minnesota net income as defined in section
290.01, subdivision 19, and
17.11includes the adjustments and tax preference items in sections 56, 57, 58, and 59(d), (e),
17.12(f), and (h) of the Internal Revenue Code. If a corporation files a separate company
17.13Minnesota tax return, the minimum tax must be computed on a separate company basis.
17.14If a corporation is part of a tax group filing a unitary return, the minimum tax must be
17.15computed on a unitary basis. The following adjustments must be made.
17.16(1) For purposes of the depreciation adjustments under section 56(a)(1) and
17.1756(g)(4)(A) of the Internal Revenue Code, the basis for depreciable property placed in
17.18service in a taxable year beginning before January 1, 1990, is the adjusted basis for federal
17.19income tax purposes, including any modification made in a taxable year under section
17.20290.01, subdivision 19e
, or Minnesota Statutes 1986, section
290.09, subdivision 7,
17.21paragraph (c).
17.22For taxable years beginning after December 31, 2000, the amount of any remaining
17.23modification made under section
290.01, subdivision 19e, or Minnesota Statutes 1986,
17.24section
290.09, subdivision 7, paragraph (c), not previously deducted is a depreciation
17.25allowance in the first taxable year after December 31, 2000.
17.26(2) The portion of the depreciation deduction allowed for federal income tax
17.27purposes under section 168(k) of the Internal Revenue Code that is required as an addition
17.28under section
290.01, subdivision 19c, clause (15)
new text begin (14)new text end , is disallowed in determining
17.29alternative minimum taxable income.
17.30(3) The subtraction for depreciation allowed under section
290.01, subdivision
17.3119d
, clause (17)
new text begin (16)new text end , is allowed as a depreciation deduction in determining alternative
17.32minimum taxable income.
17.33(4) The alternative tax net operating loss deduction under sections 56(a)(4) and 56(d)
17.34of the Internal Revenue Code does not apply.
18.1(5) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the Internal
18.2Revenue Code does not apply.
18.3(6) The special rule for dividends from section 936 companies under section
18.456(g)(4)(C)(iii) does not apply.
18.5(7)
new text begin (6)new text end The tax preference for depletion under section 57(a)(1) of the Internal
18.6Revenue Code does not apply.
18.7(8)
new text begin (7)new text end The tax preference for intangible drilling costs under section 57(a)(2) of the
18.8Internal Revenue Code must be calculated without regard to subparagraph (E) and the
18.9subtraction under section
290.01, subdivision 19d, clause (4).
18.10(9)
new text begin (8)new text end The tax preference for tax exempt interest under section 57(a)(5) of the
18.11Internal Revenue Code does not apply.
18.12(10)
new text begin (9)new text end The tax preference for charitable contributions of appreciated property
18.13under section 57(a)(6) of the Internal Revenue Code does not apply.
18.14(11)
new text begin (10)new text end For purposes of calculating the tax preference for accelerated depreciation
18.15or amortization on certain property placed in service before January 1, 1987, under section
18.1657(a)(7) of the Internal Revenue Code, the deduction allowable for the taxable year is the
18.17deduction allowed under section
290.01, subdivision 19e.
18.18For taxable years beginning after December 31, 2000, the amount of any remaining
18.19modification made under section
290.01, subdivision 19e, not previously deducted is a
18.20depreciation or amortization allowance in the first taxable year after December 31, 2004.
18.21(12)
new text begin (11)new text end For purposes of calculating the adjustment for adjusted current earnings
18.22in section 56(g) of the Internal Revenue Code, the term "alternative minimum taxable
18.23income" as it is used in section 56(g) of the Internal Revenue Code, means alternative
18.24minimum taxable income as defined in this subdivision, determined without regard to the
18.25adjustment for adjusted current earnings in section 56(g) of the Internal Revenue Code.
18.26(13)
new text begin (12)new text end For purposes of determining the amount of adjusted current earnings
18.27under section 56(g)(3) of the Internal Revenue Code, no adjustment shall be made under
18.28section 56(g)(4) of the Internal Revenue Code with respect to (i) the amount of foreign
18.29dividend gross-up subtracted as provided in section
290.01, subdivision 19d, clause (1),
18.30(ii) the amount of refunds of income, excise, or franchise taxes subtracted as provided in
18.31section
290.01, subdivision 19d, clause (9), or (iii) the amount of royalties, fees or other
18.32like income subtracted as provided in section
290.01, subdivision 19d, clause (10).
18.33(14)
new text begin (13)new text end Alternative minimum taxable income excludes the income from operating
18.34in a job opportunity building zone as provided under section
469.317.
18.35(15)
new text begin (14)new text end Alternative minimum taxable income excludes the income from operating
18.36in a biotechnology and health sciences industry zone as provided under section
469.337.
19.1(16)
new text begin (15)new text end Alternative minimum taxable income excludes the income from operating
19.2in an international economic development zone as provided under section
469.326.
19.3Items of tax preference must not be reduced below zero as a result of the
19.4modifications in this subdivision.
19.5
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxable years beginning after new text end
19.6
new text begin December 31, 2011.new text end
19.7 Sec. 16. Minnesota Statutes 2010, section 290.17, subdivision 4, is amended to read:
19.8 Subd. 4.
Unitary business principle. (a) If a trade or business conducted wholly
19.9within this state or partly within and partly without this state is part of a unitary business,
19.10the entire income of the unitary business is subject to apportionment pursuant to section
19.11290.191
. Notwithstanding subdivision 2, paragraph (c), none of the income of a unitary
19.12business is considered to be derived from any particular source and none may be allocated
19.13to a particular place except as provided by the applicable apportionment formula. The
19.14provisions of this subdivision do not apply to business income subject to subdivision 5,
19.15income of an insurance company, or income of an investment company determined under
19.16section
290.36.
19.17(b) The term "unitary business" means business activities or operations which
19.18result in a flow of value between them. The term may be applied within a single legal
19.19entity or between multiple entities and without regard to whether each entity is a sole
19.20proprietorship, a corporation, a partnership or a trust.
19.21(c) Unity is presumed whenever there is unity of ownership, operation, and use,
19.22evidenced by centralized management or executive force, centralized purchasing,
19.23advertising, accounting, or other controlled interaction, but the absence of these
19.24centralized activities will not necessarily evidence a nonunitary business. Unity is also
19.25presumed when business activities or operations are of mutual benefit, dependent upon or
19.26contributory to one another, either individually or as a group.
19.27(d) Where a business operation conducted in Minnesota is owned by a business
19.28entity that carries on business activity outside the state different in kind from that
19.29conducted within this state, and the other business is conducted entirely outside the state, it
19.30is presumed that the two business operations are unitary in nature, interrelated, connected,
19.31and interdependent unless it can be shown to the contrary.
19.32(e) Unity of ownership is
new text begin doesnew text end not deemed to exist when a corporation is
new text begin two or new text end
19.33
new text begin more corporations are new text end involved unless that corporation is a member of a group of two or
19.34more business entities and more than 50 percent of the voting stock of each member of
19.35the group
new text begin corporationnew text end is directly or indirectly owned by a common owner or by common
20.1owners, either corporate or noncorporate, or by one or more of the member corporations
20.2of the group. For this purpose, the term "voting stock" shall include membership interests
20.3of mutual insurance holding companies formed under section
66A.40.
20.4(f) The net income and apportionment factors under section
290.191 or
290.20 of
20.5foreign corporations and other foreign entities which are part of a unitary business shall
20.6not be included in the net income or the apportionment factors of the unitary business.
20.7A foreign corporation or other foreign entity which is required to file a return under this
20.8chapter shall file on a separate return basis. The net income and apportionment factors
20.9under section
290.191 or
290.20 of foreign operating corporations shall not be included in
20.10the net income or the apportionment factors of the unitary business except as provided in
20.11paragraph (g).
20.12(g) The adjusted net income of a foreign operating corporation shall be deemed to
20.13be paid as a dividend on the last day of its taxable year to each shareholder thereof, in
20.14proportion to each shareholder's ownership, with which such corporation is engaged in
20.15a unitary business. Such deemed dividend shall be treated as a dividend under section
20.16290.21, subdivision 4
.
20.17Dividends actually paid by a foreign operating corporation to a corporate shareholder
20.18which is a member of the same unitary business as the foreign operating corporation shall
20.19be eliminated from the net income of the unitary business in preparing a combined report
20.20for the unitary business. The adjusted net income of a foreign operating corporation
20.21shall be its net income adjusted as follows:
20.22(1) any taxes paid or accrued to a foreign country, the commonwealth of Puerto
20.23Rico, or a United States possession or political subdivision of any of the foregoing shall
20.24be a deduction; and
20.25(2) the subtraction from federal taxable income for payments received from foreign
20.26corporations or foreign operating corporations under section
290.01, subdivision 19d,
20.27clause (10), shall not be allowed.
20.28If a foreign operating corporation incurs a net loss, neither income nor deduction
20.29from that corporation shall be included in determining the net income of the unitary
20.30business.
20.31(h) For purposes of determining the net income of a unitary business and the factors
20.32to be used in the apportionment of net income pursuant to section
290.191 or
290.20, there
20.33must be included only the income and apportionment factors of domestic corporations or
20.34other domestic entities other than foreign operating corporations that are determined to
20.35be part of the unitary business pursuant to this subdivision, notwithstanding that foreign
20.36corporations or other foreign entities might be included in the unitary business.
21.1(i) Deductions for expenses, interest, or taxes otherwise allowable under this chapter
21.2that are connected with or allocable against dividends, deemed dividends described
21.3in paragraph (g), or royalties, fees, or other like income described in section
290.01,
21.4subdivision 19d
, clause (10), shall not be disallowed.
21.5(j) Each corporation or other entity, except a sole proprietorship, that is part of a
21.6unitary business must file combined reports as the commissioner determines. On the
21.7reports, all intercompany transactions between entities included pursuant to paragraph
21.8(h) must be eliminated and the entire net income of the unitary business determined in
21.9accordance with this subdivision is apportioned among the entities by using each entity's
21.10Minnesota factors for apportionment purposes in the numerators of the apportionment
21.11formula and the total factors for apportionment purposes of all entities included pursuant
21.12to paragraph (h) in the denominators of the apportionment formula.
21.13(k) If a corporation has been divested from a unitary business and is included in a
21.14combined report for a fractional part of the common accounting period of the combined
21.15report:
21.16(1) its income includable in the combined report is its income incurred for that part
21.17of the year determined by proration or separate accounting; and
21.18(2) its sales, property, and payroll included in the apportionment formula must
21.19be prorated or accounted for separately.
21.20
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
21.21
ARTICLE 2
21.22
DEPARTMENT POLICY AND TECHNICAL: PROPERTY TAX
21.23 Section 1. Minnesota Statutes 2010, section 13.4965, subdivision 3, is amended to read:
21.24 Subd. 3.
Homestead new text begin and other new text end applications. The classification and disclosure of
21.25certain information collected to determine
new text begin eligibility of property for a new text end homestead
new text begin or other new text end
21.26classification
new text begin or benefit under section 273.13new text end are governed by section
new text begin sectionsnew text end 273.124,
21.27subdivision
new text begin subdivisionsnew text end 13
new text begin , 13a, 13c, and 13d, and 273.1315new text end .
21.28
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
21.29 Sec. 2. Minnesota Statutes 2010, section 270.077, is amended to read:
21.30
270.077 TAXES CREDITED TO STATE AIRPORTS FUND.
21.31All taxes levied under sections
270.071 to
270.079 must be
new text begin collected by the new text end
21.32
new text begin commissioner andnew text end credited to the state airports fund created in section
360.017.
22.1
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for reports filed on July 1, 2012, new text end
22.2
new text begin and thereafter.new text end
22.3 Sec. 3. Minnesota Statutes 2010, section 270.41, subdivision 5, is amended to read:
22.4 Subd. 5.
Prohibited activity. A licensed assessor or other person employed by an
22.5assessment jurisdiction or contracting with an assessment jurisdiction for the purpose
22.6of valuing or classifying property for property tax purposes is prohibited from making
22.7appraisals or analyses, accepting an appraisal assignment, or preparing an appraisal report
22.8as defined in section
82B.021, subdivisions 2, 4, 6, and 7, on any property within the
22.9assessment jurisdiction where the individual is employed or performing the duties of the
22.10assessor under contract. Violation of this prohibition shall result in immediate revocation
22.11of the individual's license to assess property for property tax purposes. This prohibition
22.12must not be construed to prohibit an individual from carrying out any duties required
22.13for the proper assessment of property for property tax purposes or performing duties
22.14enumerated in section
273.061, subdivision 7 or 8. If a formal resolution has been adopted
22.15by the governing body of a governmental unit, which specifies the purposes for which
22.16such work will be done, this prohibition does not apply to appraisal activities undertaken
22.17on behalf of and at the request of the governmental unit that has employed or contracted
22.18with the individual. The resolution may only allow appraisal activities which are related to
22.19condemnations, right-of-way acquisitions,
new text begin land exchanges,new text end or special assessments.
22.20
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
22.21 Sec. 4. Minnesota Statutes 2011 Supplement, section 270C.34, subdivision 1, is
22.22amended to read:
22.23 Subdivision 1.
Authority. (a) The commissioner may abate, reduce, or refund any
22.24penalty or interest that is imposed by a law administered by the commissioner, or imposed
22.25by section
270.0725, subdivision 1 or 2,
new text begin or 270.075, new text end as a result of the late payment of tax
22.26or late filing of a return, or any part of an additional tax charge under section
289A.25,
22.27subdivision 2
, or
289A.26, subdivision 4, if the failure to timely pay the tax or failure
22.28to timely file the return is due to reasonable cause, or if the taxpayer is located in a
22.29presidentially declared disaster or in a presidentially declared state of emergency area or
22.30in an area declared to be in a state of emergency by the governor under section
12.31.
22.31 (b) The commissioner shall abate any part of a penalty or additional tax charge
22.32under section
289A.25, subdivision 2, or
289A.26, subdivision 4, attributable to erroneous
22.33advice given to the taxpayer in writing by an employee of the department acting in
22.34an official capacity, if the advice:
23.1 (1) was reasonably relied on and was in response to a specific written request of the
23.2taxpayer; and
23.3 (2) was not the result of failure by the taxpayer to provide adequate or accurate
23.4information.
23.5
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
23.6 Sec. 5. Minnesota Statutes 2010, section 272.01, subdivision 2, is amended to read:
23.7 Subd. 2.
Exempt property used by private entity for profit. (a) When any real or
23.8personal property which is exempt from ad valorem taxes, and taxes in lieu thereof, is
23.9leased, loaned, or otherwise made available and used by a private individual, association,
23.10or corporation in connection with a business conducted for profit, there shall be imposed a
23.11tax, for the privilege of so using or possessing such real or personal property, in the same
23.12amount and to the same extent as though the lessee or user was the owner of such property.
23.13 (b) The tax imposed by this subdivision shall not apply to:
23.14 (1) property leased or used as a concession in or relative to the use in whole
23.15or part of a public park, market, fairgrounds, port authority, economic development
23.16authority established under chapter 469, municipal auditorium, municipal parking facility,
23.17municipal museum, or municipal stadium;
23.18 (2) property of an airport owned by a city, town, county, or group thereof which is:
23.19 (i) leased to or used by any person or entity including a fixed base operator; and
23.20 (ii) used as a hangar for the storage or repair of aircraft or to provide aviation goods,
23.21services, or facilities to the airport or general public;
23.22the exception from taxation provided in this clause does not apply to:
23.23 (i) property located at an airport owned or operated by the Metropolitan Airports
23.24Commission or by a city of over 50,000 population according to the most recent federal
23.25census or such a city's airport authority; or
23.26 (ii) hangars leased by a private individual, association, or corporation in connection
23.27with a business conducted for profit other than an aviation-related business;
23.28 (3) property constituting or used as a public pedestrian ramp or concourse in
23.29connection with a public airport;
23.30 (4) property constituting or used as a passenger check-in area or ticket sale counter,
23.31boarding area, or luggage claim area in connection with a public airport but not the
23.32airports owned or operated by the Metropolitan Airports Commission or cities of over
23.3350,000 population or an airport authority therein. Real estate owned by a municipality
23.34in connection with the operation of a public airport and leased or used for agricultural
23.35purposes is not exempt;
24.1 (5) property leased, loaned, or otherwise made available to a private individual,
24.2corporation, or association under a cooperative farming agreement made pursuant to
24.3section
97A.135; or
24.4 (6) property leased, loaned, or otherwise made available to a private individual,
24.5corporation, or association under section
272.68, subdivision 4.
24.6 (c) Taxes imposed by this subdivision are payable as in the case of personal property
24.7taxes and shall be assessed to the lessees or users of real or personal property in the same
24.8manner as taxes assessed to owners of real or personal property, except that such taxes
24.9shall not become a lien against the property. When due, the taxes shall constitute a debt
24.10due from the lessee or user to the state, township, city, county, and school district for
24.11which the taxes were assessed and shall be collected in the same manner as personal
24.12property taxes. If property subject to the tax imposed by this subdivision is leased or used
24.13jointly by two or more persons, each lessee or user shall be jointly and severally liable for
24.14payment of the tax.
24.15 (d) The tax on real property of the
new text begin federal government, thenew text end state or any of its political
24.16subdivisions that is leased by a private individual, association, or corporation and becomes
24.17taxable under this subdivision or other provision of law must be assessed and collected as
24.18a personal property assessment. The taxes do not become a lien against the real property.
24.19
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
24.20 Sec. 6. Minnesota Statutes 2011 Supplement, section 273.114, subdivision 6, is
24.21amended to read:
24.22 Subd. 6.
Additional taxes. new text begin (a) new text end When real property which is being, or has been
24.23valued and assessed under this section
new text begin is sold, transferred, or new text end no longer qualifies under
24.24subdivision 2, the portion
new text begin sold, transferred, ornew text end no longer qualifying shall be subject to
24.25additional taxes in the amount equal to the difference between the taxes determined in
24.26accordance with subdivision 3 and the amount determined under subdivision 4, provided
24.27that the amount determined under subdivision 4 shall not be greater than it would have
24.28been had the actual bona fide sale price of the real property at an arm's-length transaction
24.29been used in lieu of the market value determined under subdivision 4. The additional taxes
24.30shall be extended against the property on the tax list for
new text begin taxes payable innew text end the current year,
24.31provided that no interest or penalties shall be levied on the additional taxes if timely paid
24.32and
new text begin providednew text end that the additional taxes shall only be levied with respect to the current year
24.33plus two prior years that the property has been valued and assessed under this section.
25.1
new text begin (b) In the case of a sale or transfer, the additional taxes under paragraph (a) shall not new text end
25.2
new text begin be extended against the property if the new owner submits a successful application by the new text end
25.3
new text begin later of May 1 of the current year or 30 days after the sale or transfer.new text end
25.4
new text begin (c) For the purposes of this section, the following events do not constitute a sale or new text end
25.5
new text begin transfer for property that qualified under subdivision 2 prior to the event:new text end
25.6
new text begin (1) death of a property owner when the surviving owners retain ownership of the new text end
25.7
new text begin property;new text end
25.8
new text begin (2) divorce of a married couple when one of the spouses retains ownership of the new text end
25.9
new text begin property;new text end
25.10
new text begin (3) marriage of a single property owner when that owner retains ownership of the new text end
25.11
new text begin property in whole or in part;new text end
25.12
new text begin (4) the organization or reorganization of a farm ownership entity that is not prohibited new text end
25.13
new text begin from owning agricultural land in this state under section 500.24, if all owners maintain the new text end
25.14
new text begin same beneficial interest both before and after the organization or reorganization; andnew text end
25.15
new text begin (5) transfer of the property to a trust or trustee, provided that the individual owners new text end
25.16
new text begin of the property are the grantors of the trust and they maintain the same beneficial interest new text end
25.17
new text begin both before and after placement of the property in trust.new text end
25.18
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
25.19 Sec. 7. Minnesota Statutes 2010, section 273.124, subdivision 13, is amended to read:
25.20 Subd. 13.
Homestead application. (a) A person who meets the homestead
25.21requirements under subdivision 1 must file a homestead application with the county
25.22assessor to initially obtain homestead classification.
25.23 (b) The format and contents of a uniform homestead application shall be prescribed
25.24by the commissioner of revenue. The application must clearly inform the taxpayer that
25.25this application must be signed by all owners who occupy the property or by the qualifying
25.26relative and returned to the county assessor in order for the property to receive homestead
25.27treatment.
25.28 (c) Every property owner applying for homestead classification must furnish to the
25.29county assessor the Social Security number of each occupant who is listed as an owner
25.30of the property on the deed of record, the name and address of each owner who does not
25.31occupy the property, and the name and Social Security number of each owner's spouse who
25.32occupies the property. The application must be signed by each owner who occupies the
25.33property and by each owner's spouse who occupies the property, or, in the case of property
25.34that qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative.
26.1 If a property owner occupies a homestead, the property owner's spouse may not
26.2claim another property as a homestead unless the property owner and the property owner's
26.3spouse file with the assessor an affidavit or other proof required by the assessor stating that
26.4the property qualifies as a homestead under subdivision 1, paragraph (e).
26.5 Owners or spouses occupying residences owned by their spouses and previously
26.6occupied with the other spouse, either of whom fail to include the other spouse's name
26.7and Social Security number on the homestead application or provide the affidavits or
26.8other proof requested, will be deemed to have elected to receive only partial homestead
26.9treatment of their residence. The remainder of the residence will be classified as
26.10nonhomestead residential. When an owner or spouse's name and Social Security number
26.11appear on homestead applications for two separate residences and only one application is
26.12signed, the owner or spouse will be deemed to have elected to homestead the residence for
26.13which the application was signed.
26.14 The Social Security numbers, state or federal tax returns or tax return information,
26.15including the federal income tax schedule F
new text begin ,new text end required by this section, or
new text begin section 273.13, new text end
26.16
new text begin andnew text end affidavits or other proofs of the property owners and spouses submitted under this
26.17or another section to support a claim for a property tax homestead classification
new text begin or other new text end
26.18
new text begin classification or benefit under section 273.13,new text end are private data on individuals as defined by
26.19section
13.02, subdivision 12,
new text begin or nonpublic data as defined in section 13.02, subdivision 9,new text end
26.20but, notwithstanding that section, the private
new text begin and nonpublicnew text end data may be disclosed to the
26.21commissioner of revenue, or, for purposes of proceeding under the Revenue Recapture
26.22Act to recover personal property taxes owing, to the county treasurer.
26.23 (d) If residential real estate is occupied and used for purposes of a homestead by a
26.24relative of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in
26.25order for the property to receive homestead status, a homestead application must be filed
26.26with the assessor. The Social Security number of each relative and spouse of a relative
26.27occupying the property shall be required on the homestead application filed under this
26.28subdivision. If a different relative of the owner subsequently occupies the property, the
26.29owner of the property must notify the assessor within 30 days of the change in occupancy.
26.30The Social Security number of a relative or relative's spouse occupying the property
26.31is private data on individuals as defined by section
13.02, subdivision 12, but may be
26.32disclosed to the commissioner of revenue, or, for the purposes of proceeding under the
26.33Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.
26.34 (e) The homestead application shall also notify the property owners that the
26.35application filed under this section will not be mailed annually and that if the property
26.36is granted homestead status for any assessment year, that same property shall remain
27.1classified as homestead until the property is sold or transferred to another person, or
27.2the owners, the spouse of the owner, or the relatives no longer use the property as their
27.3homestead. Upon the sale or transfer of the homestead property, a certificate of value must
27.4be timely filed with the county auditor as provided under section
272.115. Failure to
27.5notify the assessor within 30 days that the property has been sold, transferred, or that the
27.6owner, the spouse of the owner, or the relative is no longer occupying the property as a
27.7homestead, shall result in the penalty provided under this subdivision and the property
27.8will lose its current homestead status.
27.9 (f) If the homestead application is not returned within 30 days, the county will send a
27.10second application to the present owners of record. The notice of proposed property taxes
27.11prepared under section
275.065, subdivision 3, shall reflect the property's classification. If
27.12a homestead application has not been filed with the county by December 15, the assessor
27.13shall classify the property as nonhomestead for the current assessment year for taxes
27.14payable in the following year, provided that the owner may be entitled to receive the
27.15homestead classification by proper application under section
375.192.
27.16
new text begin Subd. 13a.new text end new text begin Occupant list.new text end (g) At the request of the commissioner, each county
27.17must give the commissioner a list that includes the name and Social Security number
27.18of each occupant of homestead property who is the property owner, property owner's
27.19spouse, qualifying relative of a property owner, or a spouse of a qualifying relative. The
27.20commissioner shall use the information provided on the lists as appropriate under the law,
27.21including for the detection of improper claims by owners, or relatives of owners, under
27.22chapter 290A.
27.23
new text begin Subd. 13b.new text end new text begin Improper homestead.new text end (h)
new text begin (a)new text end If the commissioner finds that a
27.24property owner may be claiming a fraudulent homestead, the commissioner shall notify
27.25the appropriate counties. Within 90 days of the notification, the county assessor shall
27.26investigate to determine if the homestead classification was properly claimed. If the
27.27property owner does not qualify, the county assessor shall notify the county auditor who
27.28will determine the amount of homestead benefits that had been improperly allowed. For the
27.29purpose of this section
new text begin subdivisionnew text end , "homestead benefits" means the tax reduction resulting
27.30from the classification as a homestead under section
273.13, the taconite homestead credit
27.31under section
273.135, the residential homestead and agricultural homestead credits under
27.32section
273.1384, and the supplemental homestead credit under section
273.1391.
27.33 The county auditor shall send a notice to the person who owned the affected property
27.34at the time the homestead application related to the improper homestead was filed,
27.35demanding reimbursement of the homestead benefits plus a penalty equal to 100 percent
27.36of the homestead benefits. The person notified may appeal the county's determination
28.1by serving copies of a petition for review with county officials as provided in section
28.2278.01
and filing proof of service as provided in section
278.01 with the Minnesota Tax
28.3Court within 60 days of the date of the notice from the county. Procedurally, the appeal
28.4is governed by the provisions in chapter 271 which apply to the appeal of a property tax
28.5assessment or levy, but without requiring any prepayment of the amount in controversy. If
28.6the amount of homestead benefits and penalty is not paid within 60 days, and if no appeal
28.7has been filed, the county auditor shall certify the amount of taxes and penalty to the county
28.8treasurer. The county treasurer will add interest to the unpaid homestead benefits and
28.9penalty amounts at the rate provided in section
279.03 for real property taxes becoming
28.10delinquent in the calendar year during which the amount remains unpaid. Interest may be
28.11assessed for the period beginning 60 days after demand for payment was made.
28.12 If the person notified is the current owner of the property, the treasurer may add the
28.13total amount of homestead benefits, penalty, interest, and costs to the ad valorem taxes
28.14otherwise payable on the property by including the amounts on the property tax statements
28.15under section
276.04, subdivision 3. The amounts added under this paragraph to the ad
28.16valorem taxes shall include interest accrued through December 31 of the year preceding
28.17the taxes payable year for which the amounts are first added. These amounts, when added
28.18to the property tax statement, become subject to all the laws for the enforcement of real or
28.19personal property taxes for that year, and for any subsequent year.
28.20 If the person notified is not the current owner of the property, the treasurer may
28.21collect the amounts due under the Revenue Recapture Act in chapter 270A, or use any of
28.22the powers granted in sections
277.20 and
277.21 without exclusion, to enforce payment
28.23of the homestead benefits, penalty, interest, and costs, as if those amounts were delinquent
28.24tax obligations of the person who owned the property at the time the application related
28.25to the improperly allowed homestead was filed. The treasurer may relieve a prior owner
28.26of personal liability for the homestead benefits, penalty, interest, and costs, and instead
28.27extend those amounts on the tax lists against the property as provided in this paragraph
28.28to the extent that the current owner agrees in writing. On all demands, billings, property
28.29tax statements, and related correspondence, the county must list and state separately the
28.30amounts of homestead benefits, penalty, interest and costs being demanded, billed or
28.31assessed.
28.32 (i)
new text begin (b)new text end Any amount of homestead benefits recovered by the county from the property
28.33owner shall be distributed to the county, city or town, and school district where the
28.34property is located in the same proportion that each taxing district's levy was to the total
28.35of the three taxing districts' levy for the current year. Any amount recovered attributable
28.36to taconite homestead credit shall be transmitted to the St. Louis County auditor to be
29.1deposited in the taconite property tax relief account. Any amount recovered that is
29.2attributable to supplemental homestead credit is to be transmitted to the commissioner of
29.3revenue for deposit in the general fund of the state treasury. The total amount of penalty
29.4collected must be deposited in the county general fund.
29.5 (j)
new text begin (c)new text end If a property owner has applied for more than one homestead and the county
29.6assessors cannot determine which property should be classified as homestead, the county
29.7assessors will refer the information to the commissioner. The commissioner shall make
29.8the determination and notify the counties within 60 days.
29.9
new text begin Subd. 13c.new text end new text begin Property lists.new text end (k) In addition to lists of homestead properties, the
29.10commissioner may ask the counties to furnish lists of all properties and the record owners.
29.11The Social Security numbers and federal identification numbers that are maintained by
29.12a county or city assessor for property tax administration purposes, and that may appear
29.13on the lists retain their classification as private or nonpublic data; but may be viewed,
29.14accessed, and used by the county auditor or treasurer of the same county for the limited
29.15purpose of assisting the commissioner in the preparation of microdata samples under
29.16section
270C.12.
new text begin The commissioner shall use the information provided on the lists as new text end
29.17
new text begin appropriate under the law, including for the detection of improper claims by owners, or new text end
29.18
new text begin relatives of owners, under chapter 290A.new text end
29.19
new text begin Subd. 13d.new text end new text begin Homestead data.new text end (l) On or before April 30 each year beginning in 2007,
29.20each county must provide the commissioner with the following data for each parcel of
29.21homestead property by electronic means as defined in section
289A.02, subdivision 8:
29.22 (i)
new text begin (1)new text end the property identification number assigned to the parcel for purposes of
29.23taxes payable in the current year;
29.24 (ii)
new text begin (2)new text end the name and Social Security number of each occupant of homestead property
29.25who is the property owner, property owner's spouse, qualifying relative of a property
29.26owner, or spouse of a qualifying relative;
29.27 (iii)
new text begin (3)new text end the classification of the property under section
273.13 for taxes payable
29.28in the current year and in the prior year;
29.29 (iv)
new text begin (4)new text end an indication of whether the property was classified as a homestead for
29.30taxes payable in the current year because of occupancy by a relative of the owner or
29.31by a spouse of a relative;
29.32 (v)
new text begin (5)new text end the property taxes payable as defined in section
290A.03, subdivision 13, for
29.33the current year and the prior year;
29.34 (vi)
new text begin (6)new text end the market value of improvements to the property first assessed for tax
29.35purposes for taxes payable in the current year;
30.1 (vii)
new text begin (7)new text end the assessor's estimated market value assigned to the property for taxes
30.2payable in the current year and the prior year;
30.3 (viii)
new text begin (8)new text end the taxable market value assigned to the property for taxes payable in the
30.4current year and the prior year;
30.5 (ix)
new text begin (9)new text end whether there are delinquent property taxes owing on the homestead;
30.6 (x)
new text begin (10)new text end the unique taxing district in which the property is located; and
30.7 (xi)
new text begin (11)new text end such other information as the commissioner decides is necessary.
30.8 The commissioner shall use the information provided on the lists as appropriate
30.9under the law, including for the detection of improper claims by owners, or relatives
30.10of owners, under chapter 290A.
30.11
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
30.12 Sec. 8. Minnesota Statutes 2011 Supplement, section 273.13, subdivision 25, is
30.13amended to read:
30.14 Subd. 25.
Class 4. (a) Class 4a is residential real estate containing four or more
30.15units and used or held for use by the owner or by the tenants or lessees of the owner
30.16as a residence for rental periods of 30 days or more, excluding property qualifying for
30.17class 4d. Class 4a also includes hospitals licensed under sections
144.50 to
144.56, other
30.18than hospitals exempt under section
272.02, and contiguous property used for hospital
30.19purposes, without regard to whether the property has been platted or subdivided. The
30.20market value of class 4a property has a class rate of 1.25 percent.
30.21 (b) Class 4b includes:
30.22 (1) residential real estate containing less than four units that does not qualify as class
30.234bb, other than seasonal residential recreational property;
30.24 (2) manufactured homes not classified under any other provision;
30.25 (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead
30.26farm classified under subdivision 23, paragraph (b) containing two or three units; and
30.27 (4) unimproved property that is classified residential as determined under subdivision
30.2833.
30.29 The market value of class 4b property has a class rate of 1.25 percent.
30.30 (c) Class 4bb includes:
30.31 (1) nonhomestead residential real estate containing one unit, other than seasonal
30.32residential recreational property; and
30.33 (2) a single family dwelling, garage, and surrounding one acre of property on a
30.34nonhomestead farm classified under subdivision 23, paragraph (b).
30.35 Class 4bb property has the same class rates as class 1a property under subdivision 22.
31.1 Property that has been classified as seasonal residential recreational property at
31.2any time during which it has been owned by the current owner or spouse of the current
31.3owner does not qualify for class 4bb.
31.4 (d) Class 4c property includes:
31.5 (1) except as provided in subdivision 22, paragraph (c), real and personal property
31.6devoted to commercial temporary and seasonal residential occupancy for recreation
31.7purposes, for not more than 250 days in the year preceding the year of assessment. For
31.8purposes of this clause, property is devoted to a commercial purpose on a specific day
31.9if any portion of the property is used for residential occupancy, and a fee is charged for
31.10residential occupancy. Class 4c property under this clause must contain three or more
31.11rental units. A "rental unit" is defined as a cabin, condominium, townhouse, sleeping room,
31.12or individual camping site equipped with water and electrical hookups for recreational
31.13vehicles. A camping pad offered for rent by a property that otherwise qualifies for class
31.144c under this clause is also class 4c under this clause regardless of the term of the rental
31.15agreement, as long as the use of the camping pad does not exceed 250 days. In order for a
31.16property to be classified under this clause, either (i) the business located on the property
31.17must provide recreational activities, at least 40 percent of the annual gross lodging receipts
31.18related to the property must be from business conducted during 90 consecutive days,
31.19and either (A) at least 60 percent of all paid bookings by lodging guests during the year
31.20must be for periods of at least two consecutive nights; or (B) at least 20 percent of the
31.21annual gross receipts must be from charges for providing recreational activities, or (ii) the
31.22business must contain 20 or fewer rental units, and must be located in a township or a city
31.23with a population of 2,500 or less located outside the metropolitan area, as defined under
31.24section
473.121, subdivision 2, that contains a portion of a state trail administered by the
31.25Department of Natural Resources. For purposes of item (i)(A), a paid booking of five or
31.26more nights shall be counted as two bookings. Class 4c property also includes commercial
31.27use real property used exclusively for recreational purposes in conjunction with other class
31.284c property classified under this clause and devoted to temporary and seasonal residential
31.29occupancy for recreational purposes, up to a total of two acres, provided the property is
31.30not devoted to commercial recreational use for more than 250 days in the year preceding
31.31the year of assessment and is located within two miles of the class 4c property with which
31.32it is used. In order for a property to qualify for classification under this clause, the owner
31.33must submit a declaration to the assessor designating the cabins or units occupied for 250
31.34days or less in the year preceding the year of assessment by January 15 of the assessment
31.35year. Those cabins or units and a proportionate share of the land on which they are located
31.36must be designated class 4c under this clause as otherwise provided. The remainder of the
32.1cabins or units and a proportionate share of the land on which they are located will be
32.2designated as class 3a. The owner of property desiring designation as class 4c property
32.3under this clause must provide guest registers or other records demonstrating that the units
32.4for which class 4c designation is sought were not occupied for more than 250 days in the
32.5year preceding the assessment if so requested. The portion of a property operated as a
32.6(1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) other
32.7nonresidential facility operated on a commercial basis not directly related to temporary and
32.8seasonal residential occupancy for recreation purposes does not qualify for class 4c. For
32.9the purposes of this paragraph, "recreational activities" means renting ice fishing houses,
32.10boats and motors, snowmobiles, downhill or cross-country ski equipment; providing
32.11marina services, launch services, or guide services; or selling bait and fishing tackle;
32.12 (2) qualified property used as a golf course if:
32.13 (i) it is open to the public on a daily fee basis. It may charge membership fees or
32.14dues, but a membership fee may not be required in order to use the property for golfing,
32.15and its green fees for golfing must be comparable to green fees typically charged by
32.16municipal courses; and
32.17 (ii) it meets the requirements of section
273.112, subdivision 3, paragraph (d).
32.18 A structure used as a clubhouse, restaurant, or place of refreshment in conjunction
32.19with the golf course is classified as class 3a property;
32.20 (3) real property up to a maximum of three acres of land owned and used by a
32.21nonprofit community service oriented organization and not used for residential purposes
32.22on either a temporary or permanent basis, provided that:
32.23 (i) the property is not used for a revenue-producing activity for more than six days
32.24in the calendar year preceding the year of assessment; or
32.25 (ii) the organization makes annual charitable contributions and donations at least
32.26equal to the property's previous year's property taxes and the property is allowed to be
32.27used for public and community meetings or events for no charge, as appropriate to the
32.28size of the facility.
32.29 For purposes of this clause:
32.30 (A) "charitable contributions and donations" has the same meaning as lawful
32.31gambling purposes under section
349.12, subdivision 25, excluding those purposes
32.32relating to the payment of taxes, assessments, fees, auditing costs, and utility payments;
32.33 (B) "property taxes" excludes the state general tax;
32.34 (C) a "nonprofit community service oriented organization" means any corporation,
32.35society, association, foundation, or institution organized and operated exclusively for
32.36charitable, religious, fraternal, civic, or educational purposes, and which is exempt from
33.1federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal
33.2Revenue Code; and
33.3 (D) "revenue-producing activities" shall include but not be limited to property or that
33.4portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt
33.5liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling
33.6alley, a retail store, gambling conducted by organizations licensed under chapter 349, an
33.7insurance business, or office or other space leased or rented to a lessee who conducts a
33.8for-profit enterprise on the premises.
33.9Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The use
33.10of the property for social events open exclusively to members and their guests for periods
33.11of less than 24 hours, when an admission is not charged nor any revenues are received by
33.12the organization shall not be considered a revenue-producing activity.
33.13 The organization shall maintain records of its charitable contributions and donations
33.14and of public meetings and events held on the property and make them available upon
33.15request any time to the assessor to ensure eligibility. An organization meeting the
33.16requirement under item (ii) must file an application by May 1 with the assessor for
33.17eligibility for the current year's assessment. The commissioner shall prescribe a uniform
33.18application form and instructions;
33.19 (4) postsecondary student housing of not more than one acre of land that is owned by
33.20a nonprofit corporation organized under chapter 317A and is used exclusively by a student
33.21cooperative, sorority, or fraternity for on-campus housing or housing located within two
33.22miles of the border of a college campus;
33.23 (5)(i) manufactured home parks as defined in section
327.14, subdivision 3,
33.24excluding manufactured home parks described in section
273.124, subdivision 3a, and (ii)
33.25manufactured home parks as defined in section
327.14, subdivision 3, that are described in
33.26section
273.124, subdivision 3a;
33.27 (6) real property that is actively and exclusively devoted to indoor fitness, health,
33.28social, recreational, and related uses, is owned and operated by a not-for-profit corporation,
33.29and is located within the metropolitan area as defined in section
473.121, subdivision 2;
33.30 (7) a leased or privately owned noncommercial aircraft storage hangar not exempt
33.31under section
272.01, subdivision 2, and the land on which it is located, provided that:
33.32 (i) the land is on an airport owned or operated by a city, town, county, Metropolitan
33.33Airports Commission, or group thereof; and
33.34 (ii) the land lease, or any ordinance or signed agreement restricting the use of the
33.35leased premise, prohibits commercial activity performed at the hangar.
34.1 If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must
34.2be filed by the new owner with the assessor of the county where the property is located
34.3within 60 days of the sale;
34.4 (8) a privately owned noncommercial aircraft storage hangar not exempt under
34.5section
272.01, subdivision 2, and the land on which it is located, provided that:
34.6 (i) the land abuts a public airport; and
34.7 (ii) the owner of the aircraft storage hangar provides the assessor with a signed
34.8agreement restricting the use of the premises, prohibiting commercial use or activity
34.9performed at the hangar; and
34.10 (9) residential real estate, a portion of which is used by the owner for homestead
34.11purposes, and that is also a place of lodging, if all of the following criteria are met:
34.12 (i) rooms are provided for rent to transient guests that generally stay for periods
34.13of 14 or fewer days;
34.14 (ii) meals are provided to persons who rent rooms, the cost of which is incorporated
34.15in the basic room rate;
34.16 (iii) meals are not provided to the general public except for special events on fewer
34.17than seven days in the calendar year preceding the year of the assessment; and
34.18 (iv) the owner is the operator of the property.
34.19The market value subject to the 4c classification under this clause is limited to five rental
34.20units. Any rental units on the property in excess of five, must be valued and assessed as
34.21class 3a. The portion of the property used for purposes of a homestead by the owner must
34.22be classified as class 1a property under subdivision 22;
34.23 (10) real property up to a maximum of three acres and operated as a restaurant
34.24as defined under section
157.15, subdivision 12, provided it: (A) is located on a lake
34.25as defined under section
103G.005, subdivision 15, paragraph (a), clause (3); and (B)
34.26is either devoted to commercial purposes for not more than 250 consecutive days, or
34.27receives at least 60 percent of its annual gross receipts from business conducted during
34.28four consecutive months. Gross receipts from the sale of alcoholic beverages must be
34.29included in determining the property's qualification under subitem (B). The property's
34.30primary business must be as a restaurant and not as a bar. Gross receipts from gift shop
34.31sales located on the premises must be excluded. Owners of real property desiring 4c
34.32classification under this clause must submit an annual declaration to the assessor by
34.33February 1 of the current assessment year, based on the property's relevant information for
34.34the preceding assessment year;
34.35(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used
34.36as a marina, as defined in section
86A.20, subdivision 5, which is made accessible to
35.1the public and devoted to recreational use for marina services. The marina owner must
35.2annually provide evidence to the assessor that it provides services, including lake or river
35.3access to the public by means of an access ramp or other facility that is either located on
35.4the property of the marina or at a publicly owned site that abuts the property of the marina.
35.5No more than 800 feet of lakeshore may be included in this classification. Buildings used
35.6in conjunction with a marina for marina services, including but not limited to buildings
35.7used to provide food and beverage services, fuel, boat repairs, or the sale of bait or fishing
35.8tackle, are classified as class 3a property; and
35.9(12) real and personal property devoted to noncommercial temporary and seasonal
35.10residential occupancy for recreation purposes.
35.11 Class 4c property has a class rate of 1.5 percent of market value, except that (i) each
35.12parcel of noncommercial seasonal residential recreational property under clause (12)
35.13has the same class rates as class 4bb property, (ii) manufactured home parks assessed
35.14under clause (5), item (i), have the same class rate as class 4b property, and the market
35.15value of manufactured home parks assessed under clause (5), item (ii), has the same class
35.16rate as class 4d property if more than 50 percent of the lots in the park are occupied by
35.17shareholders in the cooperative corporation or association and a class rate of one percent if
35.1850 percent or less of the lots are so occupied, (iii) commercial-use seasonal residential
35.19recreational property and marina recreational land as described in clause (11), has a
35.20class rate of one percent for the first $500,000 of market value, and 1.25 percent for the
35.21remaining market value, (iv) the market value of property described in clause (4) has a
35.22class rate of one percent, (v) the market value of property described in clauses (2), (6), and
35.23(10) has a class rate of 1.25 percent, and (vi) that portion of the market value of property
35.24in clause (9) qualifying for class 4c property has a class rate of 1.25 percent.
35.25 (e) Class 4d property is qualifying low-income rental housing certified to the assessor
35.26by the Housing Finance Agency under section
273.128, subdivision 3. If only a portion
35.27of the units in the building qualify as low-income rental housing units as certified under
35.28section
273.128, subdivision 3, only the proportion of qualifying units to the total number
35.29of units in the building qualify for class 4d. The remaining portion of the building shall be
35.30classified by the assessor based upon its use. Class 4d also includes the same proportion of
35.31land as the qualifying low-income rental housing units are to the total units in the building.
35.32For all properties qualifying as class 4d, the market value determined by the assessor must
35.33be based on the normal approach to value using normal unrestricted rents.
35.34 Class 4d property has a class rate of 0.75 percent.
35.35
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxes payable in 2013 and new text end
35.36
new text begin thereafter.new text end
36.1 Sec. 9. Minnesota Statutes 2010, section 273.1315, subdivision 1, is amended to read:
36.2 Subdivision 1.
Class 1b homestead declaration before 2009. Any property owner
36.3seeking classification and assessment of the owner's homestead as class 1b property
36.4pursuant to section
273.13, subdivision 22, paragraph (b), on or before October 1, 2008,
36.5shall file with the commissioner of revenue a 1b homestead declaration, on a form
36.6prescribed by the commissioner. The declaration shall contain the following information:
36.7 (a)
new text begin (1)new text end the information necessary to verify that on or before June 30 of the filing year,
36.8the property owner or the owner's spouse satisfies the requirements of section
273.13,
36.9subdivision 22
, paragraph (b), for 1b classification; and
36.10 (b)
new text begin (2)new text end any additional information prescribed by the commissioner.
36.11 The declaration must be filed on or before October 1 to be effective for property
36.12taxes payable during the succeeding calendar year. The declaration and any supplementary
36.13information received from the property owner pursuant to this subdivision shall be subject
36.14to chapter 270B. If approved by the commissioner, the declaration remains in effect until
36.15the property no longer qualifies under section
273.13, subdivision 22, paragraph (b).
36.16Failure to notify the commissioner within 30 days that the property no longer qualifies
36.17under that paragraph because of a sale, change in occupancy, or change in the status
36.18or condition of an occupant shall result in the penalty provided in section 273.124,
36.19subdivision 13
new text begin 13bnew text end , computed on the basis of the class 1b benefits for the property, and
36.20the property shall lose its current class 1b classification.
36.21 The commissioner shall provide to the assessor on or before November 1 a listing
36.22of the parcels of property qualifying for 1b classification.
36.23
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
36.24 Sec. 10. Minnesota Statutes 2010, section 273.1315, subdivision 2, is amended to read:
36.25 Subd. 2.
Class 1b homestead declaration 2009 and thereafter. (a) Any property
36.26owner seeking classification and assessment of the owner's homestead as class 1b property
36.27pursuant to section
273.13, subdivision 22, paragraph (b), after October 1, 2008, shall file
36.28with the county assessor a class 1b homestead declaration, on a form prescribed by the
36.29commissioner of revenue. The declaration must contain the following information:
36.30 (1) the information necessary to verify that, on or before June 30 of the filing year,
36.31the property owner or the owner's spouse satisfies the requirements of section
273.13,
36.32subdivision 22, paragraph (b), for class 1b classification; and
36.33 (2) any additional information prescribed by the commissioner.
36.34 (b) The declaration must be filed on or before October 1 to be effective for property
36.35taxes payable during the succeeding calendar year. The Social Security numbers and
37.1income and medical information received from the property owner pursuant to this
37.2subdivision are private data on individuals as defined in section
13.02. If approved by
37.3the assessor, the declaration remains in effect until the property no longer qualifies under
37.4section
273.13, subdivision 22, paragraph (b). Failure to notify the assessor within 30
37.5days that the property no longer qualifies under that paragraph because of a sale, change in
37.6occupancy, or change in the status or condition of an occupant shall result in the penalty
37.7provided in section
273.124, subdivision 13new text begin 13bnew text end , computed on the basis of the class 1b
37.8benefits for the property, and the property shall lose its current class 1b classification.
37.9
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
37.10 Sec. 11. Minnesota Statutes 2010, section 273.19, subdivision 1, is amended to read:
37.11 Subdivision 1.
Tax-exempt property; lease. Except as provided in subdivision 3 or
37.124, tax-exempt property held under a lease for a term of at least one year, and not taxable
37.13under section
272.01, subdivision 2, or under a contract for the purchase thereof, shall
37.14be considered, for all purposes of taxation, as the property of the person holding it. In
37.15this subdivision, "tax-exempt property" means property owned by the United States, the
37.16state
new text begin or any of its political subdivisionsnew text end , a school, or any religious, scientific, or benevolent
37.17society or institution, incorporated or unincorporated, or any corporation whose property
37.18is not taxed in the same manner as other property. This subdivision does not apply to
37.19property exempt from taxation under section
272.01, subdivision 2, paragraph (b), clauses
37.20(2), (3), and (4), or to property exempt from taxation under section
272.0213.
37.21
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
37.22 Sec. 12. Minnesota Statutes 2010, section 273.372, subdivision 4, is amended to read:
37.23 Subd. 4.
Administrative appeals. (a) Companies that submit the reports under
37.24section
270.82 or
273.371 by the date specified in that section, or by the date specified by
37.25the commissioner in an extension, may appeal administratively to the commissioner prior
37.26to bringing an action in court by submitting
new text begin .new text end
37.27
new text begin (b) Companies that must submit reports under section 270.82 must submitnew text end a written
37.28request with
new text begin tonew text end the commissioner for a conference within ten days after the date of the
37.29commissioner's valuation certification or notice to the company, or by May
new text begin Junenew text end 15,
37.30whichever is earlier.
37.31
new text begin (c) Companies that submit reports under section 273.371 must submit a written new text end
37.32
new text begin request to the commissioner for a conference within ten days after the date of the new text end
38.1
new text begin commissioner's valuation certification or notice to the company, or by July 1, whichever new text end
38.2
new text begin is earlier.new text end
38.3
new text begin (d)new text end The commissioner shall conduct the conference upon the commissioner's entire
38.4files and records and such further information as may be offered. The conference must
38.5be held no later than 20 days after the date of the commissioner's valuation certification
38.6or notice to the company, or by the date specified by the commissioner in an extension.
38.7Within 60 days after the conference the commissioner shall make a final determination of
38.8the matter and shall notify the company promptly of the determination. The conference
38.9is not a contested case hearing.
38.10(b)
new text begin (e)new text end In addition to the opportunity for a conference under paragraph (a), the
38.11commissioner shall also provide the railroad and utility companies the opportunity to
38.12discuss any questions or concerns relating to the values established by the commissioner
38.13through certification or notice in a less formal manner. This does not change or modify
38.14the deadline for requesting a conference under paragraph (a), the deadline in section
38.15271.06
for appealing an order of the commissioner, or the deadline in section
278.01 for
38.16appealing property taxes in court.
38.17
new text begin EFFECTIVE DATE.new text end new text begin This section is effective beginning with assessment year 2013.new text end
38.18 Sec. 13. Minnesota Statutes 2010, section 273.39, is amended to read:
38.19
273.39 RURAL AREA.
38.20As used in sections
273.39 to
273.41, the term "rural area" shall be deemed to mean
38.21any area of the state not included within the boundaries of any incorporated
new text begin statutory new text end
38.22
new text begin city or home rule charternew text end city, and such term shall be deemed to include both farm and
38.23nonfarm population thereof.
38.24
new text begin EFFECTIVE DATE.new text end new text begin This section is effective beginning with assessment year 2012.new text end
38.25 Sec. 14. Minnesota Statutes 2010, section 279.06, subdivision 1, is amended to read:
38.26 Subdivision 1.
List and notice. Within five days after the filing of such list, the
38.27court administrator shall return a copy thereof to the county auditor, with a notice prepared
38.28and signed by the court administrator, and attached thereto, which may be substantially in
38.29the following form:
38.30
State of Minnesota
)
38.31
) ss.
38.32
County of
.....
)
39.1
District Court
39.2
.....
Judicial District.
39.3The state of Minnesota, to all persons, companies, or corporations who have or claim
39.4any estate, right, title, or interest in, claim to, or lien upon, any of the several parcels of
39.5land described in the list hereto attached:
39.6The list of taxes and penalties on real property for the county of ...............................
39.7remaining delinquent on the first Monday in January, ......., has been filed in the office of
39.8the court administrator of the district court of said county, of which that hereto attached is a
39.9copy. Therefore, you, and each of you, are hereby required to file in the office of said court
39.10administrator, on or before the 20th day after the publication of this notice and list, your
39.11answer, in writing, setting forth any objection or defense you may have to the taxes, or any
39.12part thereof, upon any parcel of land described in the list, in, to, or on which you have or
39.13claim any estate, right, title, interest, claim, or lien, and, in default thereof, judgment will
39.14be entered against such parcel of land for the taxes on such list appearing against it, and
39.15for all penalties, interest, and costs. Based upon said judgment, the land shall be sold to
39.16the state of Minnesota on the second Monday in May, ....... The period of redemption for
39.17all lands sold to the state at a tax judgment sale shall be three years from the date of sale to
39.18the state of Minnesota if the land is within an incorporated area unless it is:
39.19(a) nonagricultural homesteaded land as defined in section
273.13, subdivision 22;
39.20(b) homesteaded agricultural land as defined in section
273.13, subdivision 23,
39.21paragraph (a);
39.22(c) seasonal residential recreational land as defined in section
273.13, subdivisions
39.2322, paragraph (c)
, and 25, paragraph (d), clause (1), in which event the period of
39.24redemption is five years from the date of sale to the state of Minnesota;
39.25(d) abandoned property and pursuant to section
a court order has been
39.26entered shortening the redemption period to five weeks; or
39.27(e) vacant property as described under section
281.174, subdivision 2, and for which
39.28a court order is entered shortening the redemption period under section
.
39.29The period of redemption for all other lands sold to the state at a tax judgment sale
39.30shall be five years from the date of sale.
39.31Inquiries as to the proceedings set forth above can be made to the county auditor of
39.32..... county whose address is ......
39.33
(Signed)
.....
,
39.34
39.35
Court Administrator of the District Court of the
County of
.....
39.36
(Here insert list.)
40.1
new text begin The notice must contain a narrative description of the various periods to redeem new text end
40.2
new text begin specified in sections 281.17, 281.173, and 281.174, in the manner prescribed by the new text end
40.3
new text begin commissioner of revenue under subdivision 2.new text end
40.4The list referred to in the notice shall be substantially in the following form:
40.5List of real property for the county of ......................., on which taxes remain
40.6delinquent on the first Monday in January, .......
40.7Town of (Fairfield),
40.8Township (40), Range (20),
40.9
40.10
40.11
40.12
40.13
40.14
40.15
40.16
Names (and Current
Filed Addresses) for
the Taxpayers and Fee
Owners and in Addition
Those Parties Who Have
Filed Their Addresses
Pursuant to section
276.041
Subdivision of
Section
Section
Tax Parcel
Number
Total Tax
and Penalty
40.17
$ cts.
40.18
40.19
John Jones (825 Fremont
Fairfield, MN 55000)
S.E. 1/4 of S.W. 1/4
10
23101
2.20
40.20
40.21
40.22
40.23
40.24
40.25
40.26
40.27
40.28
40.29
40.30
40.31
40.32
40.33
40.34
40.35
40.36
40.37
40.38
Bruce Smith (2059 Hand
Fairfield, MN 55000)
and Fairfield State
Bank (100 Main Street
Fairfield, MN 55000)
That part of N.E. 1/4
of S.W. 1/4 desc. as
follows: Beg. at the
S.E. corner of said N.E.
1/4 of S.W. 1/4; thence
N. along the E. line of
said N.E. 1/4 of S.W.
1/4 a distance of 600
ft.; thence W. parallel
with the S. line of said
N.E. 1/4 of S.W. 1/4
a distance of 600 ft.;
thence S. parallel with
said E. line a distance of
600 ft. to S. line of said
N.E. 1/4 of S.W. 1/4;
thence E. along said S.
line a distance of 600 ft.
to the point of beg.
21
33211
3.15
40.39As to platted property, the form of heading shall conform to circumstances and be
40.40substantially in the following form:
40.41City of (Smithtown)
40.42Brown's Addition, or Subdivision
41.1
41.2
41.3
41.4
41.5
41.6
41.7
41.8
Names (and Current
Filed Addresses) for
the Taxpayers and Fee
Owners and in Addition
Those Parties Who Have
Filed Their Addresses
Pursuant to section
276.041
Lot
Block
Tax Parcel
Number
Total Tax
and Penalty
41.9
$ cts.
41.10
41.11
John Jones (825 Fremont
Fairfield, MN 55000)
15
9
58243
2.20
41.12
41.13
41.14
41.15
41.16
Bruce Smith (2059 Hand
Fairfield, MN 55000)
and Fairfield State
Bank (100 Main Street
Fairfield, MN 55000)
16
9
58244
3.15
41.17The names, descriptions, and figures employed in parentheses in the above forms are
41.18merely for purposes of illustration.
41.19The name of the town, township, range or city, and addition or subdivision, as the
41.20case may be, shall be repeated at the head of each column of the printed lists as brought
41.21forward from the preceding column.
41.22Errors in the list shall not be deemed to be a material defect to affect the validity
41.23of the judgment and sale.
41.24
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for lists and notices required after new text end
41.25
new text begin December 31, 2012.new text end
41.26 Sec. 15. Minnesota Statutes 2010, section 290A.25, is amended to read:
41.27
290A.25 VERIFICATION OF SOCIAL SECURITY NUMBERS.
41.28Annually, the commissioner of revenue shall furnish a list to the county assessor
41.29containing the names and Social Security numbers of persons who have applied for both
41.30homestead classification under section
273.13 and a property tax refund as a renter
41.31under this chapter.
41.32Within 90 days of the notification, the county assessor shall investigate to determine
41.33if the homestead classification was improperly claimed. If the property owner does
41.34not qualify, the county assessor shall notify the county auditor who will determine the
41.35amount of homestead benefits that has been improperly allowed. For the purpose of this
41.36section, "homestead benefits" has the meaning given in section
273.124, subdivision
41.3713
, paragraph (h)
new text begin 13bnew text end . The county auditor shall send a notice to persons who owned the
41.38affected property at the time the homestead application related to the improper homestead
41.39was filed, demanding reimbursement of the homestead benefits plus a penalty equal to
42.1100 percent of the homestead benefits. The person notified may appeal the county's
42.2determination with the Minnesota Tax Court within 60 days of the date of the notice from
42.3the county as provided in section
273.124, subdivision 13, paragraph (h)
new text begin 13bnew text end .
42.4If the amount of homestead benefits and penalty is not paid within 60 days, and if
42.5no appeal has been filed, the county auditor shall certify the amount of taxes and penalty
42.6to the county treasurer. The county treasurer will add interest to the unpaid homestead
42.7benefits and penalty amounts at the rate provided for delinquent personal property taxes
42.8for the period beginning 60 days after demand for payment was made until payment. If
42.9the person notified is the current owner of the property, the treasurer may add the total
42.10amount of benefits, penalty, interest, and costs to the real estate taxes otherwise payable on
42.11the property in the following year. If the person notified is not the current owner of the
42.12property, the treasurer may collect the amounts due under the Revenue Recapture Act in
42.13chapter 270A, or use any of the powers granted in sections
277.20 and
277.21 without
42.14exclusion, to enforce payment of the benefits, penalty, interest, and costs, as if those
42.15amounts were delinquent tax obligations of the person who owned the property at the time
42.16the application related to the improperly allowed homestead was filed. The treasurer may
42.17relieve a prior owner of personal liability for the benefits, penalty, interest, and costs, and
42.18instead extend those amounts on the tax lists against the property for taxes payable in the
42.19following year to the extent that the current owner agrees in writing.
42.20Any amount of homestead benefits recovered by the county from the property owner
42.21shall be distributed to the county, city or town, and school district where the property is
42.22located in the same proportion that each taxing district's levy was to the total of the three
42.23taxing districts' levy for the current year. Any amount recovered attributable to taconite
42.24homestead credit shall be transmitted to the St. Louis County auditor to be deposited in
42.25the taconite property tax relief account. Any amount recovered that is attributable to
42.26supplemental homestead credit is to be transmitted to the commissioner of revenue for
42.27deposit in the general fund of the state treasury. The total amount of penalty collected
42.28must be deposited in the county general fund.
42.29
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
42.30 Sec. 16. Minnesota Statutes 2010, section 290B.04, subdivision 2, is amended to read:
42.31 Subd. 2.
Approval; recording. The commissioner shall approve all initial
42.32applications that qualify under this chapter and shall notify qualifying homeowners on or
42.33before December 1. The commissioner may investigate the facts or require confirmation
42.34in regard to an application. The commissioner shall record or file a notice of qualification
42.35for deferral, including the names of the qualifying homeowners and a legal description
43.1of the property, in the office of the county recorder, or registrar of titles, whichever is
43.2applicable, in the county where the qualifying property is located. The notice must state
43.3that it serves as a notice of lien and that it includes deferrals under this section for future
43.4years.
new text begin The commissioner shall prescribe the form of the notice. Execution of the notice new text end
43.5
new text begin by the original or facsimile signature of the commissioner or a delegate entitles them to new text end
43.6
new text begin be recorded, and no other attestation, certification, or acknowledgment is necessary.new text end The
43.7homeowner shall pay the recording or filing fees for the notice, which, notwithstanding
43.8section
357.18, shall be paid by the homeowner at the time of satisfaction of the lien.
43.9
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for notices that are both executed new text end
43.10
new text begin and recorded after June 30, 2012.new text end
43.11 Sec. 17. Minnesota Statutes 2011 Supplement, section 373.01, subdivision 1, is
43.12amended to read:
43.13 Subdivision 1.
Public corporation; listed powers. (a) Each county is a body politic
43.14and corporate and may:
43.15 (1) Sue and be sued.
43.16 (2) Acquire and hold real and personal property for the use of the county, and lands
43.17sold for taxes as provided by law.
43.18 (3) Purchase and hold for the benefit of the county real estate sold by virtue of
43.19judicial proceedings, to which the county is a party.
43.20 (4) Sell, lease, and convey real or personal estate owned by the county, and give
43.21contracts or options to sell, lease, or convey it, and make orders respecting it as deemed
43.22conducive to the interests of the county's inhabitants.
43.23 (5) Make all contracts and do all other acts in relation to the property and concerns
43.24of the county necessary to the exercise of its corporate powers.
43.25 (b) No sale, lease, or conveyance of real estate owned by the county, except the lease
43.26of a residence acquired for the furtherance of an approved capital improvement project, nor
43.27any contract or option for it, shall be valid, without first advertising for bids or proposals in
43.28the official newspaper of the county for three consecutive weeks and once in a newspaper
43.29of general circulation in the area where the property is located. The notice shall state the
43.30time and place of considering the proposals, contain a legal description of any real estate,
43.31and a brief description of any personal property. Leases that do not exceed $15,000 for any
43.32one year may be negotiated and are not subject to the competitive bid procedures of this
43.33section. All proposals estimated to exceed $15,000 in any one year shall be considered at
43.34the time set for the bid opening, and the one most favorable to the county accepted, but the
43.35county board may, in the interest of the county, reject any or all proposals.
44.1 (c) Sales of personal property the value of which is estimated to be $15,000 or
44.2more shall be made only after advertising for bids or proposals in the county's official
44.3newspaper, on the county's Web site, or in a recognized industry trade journal. At the same
44.4time it posts on its Web site or publishes in a trade journal, the county must publish in the
44.5official newspaper, either as part of the minutes of a regular meeting of the county board
44.6or in a separate notice, a summary of all requests for bids or proposals that the county
44.7advertises on its Web site or in a trade journal. After publication in the official newspaper,
44.8on the Web site, or in a trade journal, bids or proposals may be solicited and accepted by
44.9the electronic selling process authorized in section
471.345, subdivision 17. Sales of
44.10personal property the value of which is estimated to be less than $15,000 may be made
44.11either on competitive bids or in the open market, in the discretion of the county board.
44.12"Web site" means a specific, addressable location provided on a server connected to the
44.13Internet and hosting World Wide Web pages and other files that are generally accessible
44.14on the Internet all or most of a day.
44.15 (d) Notwithstanding anything to the contrary herein, the county may, when acquiring
44.16real property for county highway right-of-way, exchange parcels of real property of
44.17substantially similar or equal value without advertising for bids. The estimated values for
44.18these parcels shall be determined by the county assessor.
44.19(e) Notwithstanding anything in this section to the contrary, the county may, when
44.20acquiring real property for purposes other than county highway right-of-way, exchange
44.21parcels of real property of substantially similar or equal value without advertising for bids.
44.22The estimated values for these parcels must be determined by the county assessor or a
44.23private appraisal performed by a licensed Minnesota real estate appraiser.
new text begin For the purpose new text end
44.24
new text begin of making these estimates, the county assessor need not be licensed under chapter 82B. new text end
44.25Before giving final approval to any exchange of land, the county board shall hold a public
44.26hearing on the exchange. At least two weeks before the hearing, the county auditor shall
44.27post a notice in the auditor's office and the official newspaper of the county of the hearing
44.28that contains a description of the lands affected.
44.29 (f) If real estate or personal property remains unsold after advertising for and
44.30consideration of bids or proposals the county may employ a broker to sell the property.
44.31The broker may sell the property for not less than 90 percent of its appraised market value
44.32as determined by the county. The broker's fee shall be set by agreement with the county but
44.33may not exceed ten percent of the sale price and must be paid from the proceeds of the sale.
44.34 (g) A county or its agent may rent a county-owned residence acquired for the
44.35furtherance of an approved capital improvement project subject to the conditions set
45.1by the county board and not subject to the conditions for lease otherwise provided by
45.2paragraph (a), clause (4), and paragraphs (b), (c), (d), (f), and (h).
45.3 (h) In no case shall lands be disposed of without there being reserved to the county
45.4all iron ore and other valuable minerals in and upon the lands, with right to explore for,
45.5mine and remove the iron ore and other valuable minerals, nor shall the minerals and
45.6mineral rights be disposed of, either before or after disposition of the surface rights,
45.7otherwise than by mining lease, in similar general form to that provided by section
93.20
45.8for mining leases affecting state lands. The lease shall be for a term not exceeding 50
45.9years, and be issued on a royalty basis, the royalty to be not less than 25 cents per ton of
45.102,240 pounds, and fix a minimum amount of royalty payable during each year, whether
45.11mineral is removed or not. Prospecting options for mining leases may be granted for
45.12periods not exceeding one year. The options shall require, among other things, periodical
45.13showings to the county board of the results of exploration work done.
45.14 (i) Notwithstanding anything in this subdivision to the contrary, the county may,
45.15when selling real property owned in fee simple that cannot be improved because of
45.16noncompliance with local ordinances regarding minimum area, shape, frontage, or access,
45.17proceed to sell the nonconforming parcel without advertising for bid. At the county's
45.18discretion, the real property may be restricted to sale to adjoining landowners or may be
45.19sold to any other interested party. The property shall be sold to the highest bidder, but
45.20in no case shall the property be sold for less than 90 percent of its fair market value as
45.21determined by the county assessor. All owners of land adjoining the land to be sold shall
45.22be given a written notice at least 30 days before the sale. This paragraph shall be liberally
45.23construed to encourage the sale of nonconforming real property and promote its return to
45.24the tax roles.
45.25
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
45.26 Sec. 18.
new text begin REPEALER.new text end
45.27
new text begin (a)new text end new text begin Minnesota Statutes 2010, section 272.69,new text end new text begin is repealed.new text end
45.28
new text begin (b)new text end new text begin Minnesota Statutes 2010, section 273.11, subdivision 22,new text end new text begin is repealed.new text end
45.29
new text begin EFFECTIVE DATE.new text end new text begin Paragraph (a) is effective the day following final enactment. new text end
45.30
new text begin Paragraph (b) is effective for taxes payable in 2013 and thereafter.new text end
45.31
ARTICLE 3
45.32
DEPARTMENT POLICY AND TECHNICAL: SALES AND USE
45.33
TAXES; SPECIAL TAXES
45.34 Section 1. Minnesota Statutes 2010, section 65B.84, subdivision 1, is amended to read:
46.1 Subdivision 1.
Program described; commissioner's duties; appropriation. (a)
46.2The commissioner of commerce shall:
46.3(1) develop and sponsor the implementation of statewide plans, programs, and
46.4strategies to combat automobile theft, improve the administration of the automobile theft
46.5laws, and provide a forum for identification of critical problems for those persons dealing
46.6with automobile theft;
46.7(2) coordinate the development, adoption, and implementation of plans, programs,
46.8and strategies relating to interagency and intergovernmental cooperation with respect
46.9to automobile theft enforcement;
46.10(3) annually audit the plans and programs that have been funded in whole or in part
46.11to evaluate the effectiveness of the plans and programs and withdraw funding should the
46.12commissioner determine that a plan or program is ineffective or is no longer in need
46.13of further financial support from the fund;
46.14(4) develop a plan of operation including:
46.15(i) an assessment of the scope of the problem of automobile theft, including areas
46.16of the state where the problem is greatest;
46.17(ii) an analysis of various methods of combating the problem of automobile theft;
46.18(iii) a plan for providing financial support to combat automobile theft;
46.19(iv) a plan for eliminating car hijacking; and
46.20(v) an estimate of the funds required to implement the plan; and
46.21(5) distribute money, in consultation with the commissioner of public safety,
46.22pursuant to subdivision 3 from the automobile theft prevention special revenue account
46.23for automobile theft prevention activities, including:
46.24(i) paying the administrative costs of the program;
46.25(ii) providing financial support to the State Patrol and local law enforcement
46.26agencies for automobile theft enforcement teams;
46.27(iii) providing financial support to state or local law enforcement agencies for
46.28programs designed to reduce the incidence of automobile theft and for improved
46.29equipment and techniques for responding to automobile thefts;
46.30(iv) providing financial support to local prosecutors for programs designed to reduce
46.31the incidence of automobile theft;
46.32(v) providing financial support to judicial agencies for programs designed to reduce
46.33the incidence of automobile theft;
46.34(vi) providing financial support for neighborhood or community organizations or
46.35business organizations for programs designed to reduce the incidence of automobile
46.36theft and to educate people about the common methods of automobile theft, the models
47.1of automobiles most likely to be stolen, and the times and places automobile theft is
47.2most likely to occur; and
47.3(vii) providing financial support for automobile theft educational and training
47.4programs for state and local law enforcement officials, driver and vehicle services exam
47.5and inspections staff, and members of the judiciary.
47.6(b) The commissioner may not spend in any fiscal year more than ten percent of the
47.7money in the fund for the program's administrative and operating costs. The commissioner
47.8is annually appropriated and must distribute the amount of the proceeds credited to
47.9the automobile theft prevention special revenue account each year, less the transfer
47.10of $1,300,000 each year to the general fund described in section
168A.40, subdivision
47.114
new text begin 297I.11, subdivision 2new text end .
47.12
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for premiums collected after June new text end
47.13
new text begin 30, 2012.new text end
47.14 Sec. 2. Minnesota Statutes 2010, section 287.20, is amended by adding a subdivision
47.15to read:
47.16
new text begin Subd. 11.new text end new text begin Partition.new text end new text begin "Partition" means the division by conveyance of real property new text end
47.17
new text begin that is held jointly or in common by two or more persons into individually owned interests. new text end
47.18
new text begin If one of the co-owners gives consideration for all or a part of the individually owned new text end
47.19
new text begin interest conveyed to them, that portion of the conveyance is not a part of the partition.new text end
47.20
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
47.21 Sec. 3. Minnesota Statutes 2010, section 297A.665, is amended to read:
47.22
297A.665 PRESUMPTION OF TAX; BURDEN OF PROOF.
47.23 (a) For the purpose of the proper administration of this chapter and to prevent
47.24evasion of the tax, until the contrary is established, it is presumed that:
47.25 (1) all gross receipts are subject to the tax; and
47.26 (2) all retail sales for delivery in Minnesota are for storage, use, or other consumption
47.27in Minnesota.
47.28 (b) The burden of proving that a sale is not a taxable retail sale is on the seller.
47.29However, a seller is relieved of liability if:
47.30 (1) the seller obtains a fully completed exemption certificate or all the relevant
47.31information required by section
297A.72, subdivision 2, at the time of the sale or within
47.3290 days after the date of the sale; or
48.1 (2) if the seller has not obtained a fully completed exemption certificate or all the
48.2relevant information required by section
297A.72, subdivision 2, within the time provided
48.3in clause (1), within 120 days after a request for substantiation by the commissioner,
48.4the seller either:
48.5 (i) obtains in good faith
new text begin from the purchasernew text end a fully completed exemption certificate
48.6or all the relevant information required by section
297A.72, subdivision 2, from the
48.7purchaser
new text begin taken in good faith which means that the exemption certificate claims an new text end
48.8
new text begin exemption that (A) was statutorily available on the date of the transaction, (B) could be new text end
48.9
new text begin applicable to the item for which the exemption is claimed, and (C) is reasonable for the new text end
48.10
new text begin purchaser's type of businessnew text end ; or
48.11 (ii) proves by other means that the transaction was not subject to tax.
48.12 (c) Notwithstanding paragraph (b), relief from liability does not apply to a seller who:
48.13 (1) fraudulently fails to collect the tax; or
48.14 (2) solicits purchasers to participate in the unlawful claim of an exemption.
48.15
new text begin (d) Notwithstanding paragraph (b), relief from liability does not apply to a seller new text end
48.16
new text begin who has obtained information under paragraph (b), clause (2), if through the audit process new text end
48.17
new text begin the commissioner finds the following:new text end
48.18
new text begin (1) that at the time the information was provided the seller had knowledge or had new text end
48.19
new text begin reason to know that the information relating to the exemption was materially false; ornew text end
48.20
new text begin (2) that the seller knowingly participated in activity intended to purposefully evade new text end
48.21
new text begin the sales tax due on the transaction.new text end
48.22 (d)
new text begin (e)new text end A certified service provider, as defined in section
297A.995, subdivision 2, is
48.23relieved of liability under this section to the extent a seller who is its client is relieved of
48.24liability.
48.25 (e)
new text begin (f)new text end A purchaser of tangible personal property or any items listed in section
48.26297A.63
that are shipped or brought to Minnesota by the purchaser has the burden
48.27of proving that the property was not purchased from a retailer for storage, use, or
48.28consumption in Minnesota.
48.29(f)
new text begin (g)new text end If a seller claims that certain sales are exempt and does not provide the
48.30certificate, information, or proof required by paragraph (b), clause (2), within 120 days
48.31after the date of the commissioner's request for substantiation, then the exemptions
48.32claimed by the seller that required substantiation are disallowed.
48.33
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
48.34 Sec. 4. Minnesota Statutes 2010, section 297F.01, subdivision 23, is amended to read:
49.1 Subd. 23.
Wholesale sales price. "Wholesale sales price" means the price stated on
49.2the price list in effect at the time of sale for which a manufacturer or person sells a tobacco
49.3product to a distributor, exclusive of any discount, promotional offer, or other reduction.
49.4For purposes of this subdivision, "price list" means the manufacturer's price at which
49.5tobacco products are made available for sale to all distributors on an ongoing basis
new text begin at which new text end
49.6
new text begin a distributor purchases a tobacco product without any reduction for federal excise taxes, new text end
49.7
new text begin freight charges, discounts, packaging, or other reductions. Wholesale sales price includes new text end
49.8
new text begin the applicable federal excise tax regardless of whether it is included in the purchase pricenew text end .
49.9
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for purchases made after December new text end
49.10
new text begin 31, 2012.new text end
49.11 Sec. 5. Minnesota Statutes 2010, section 297G.04, subdivision 2, is amended to read:
49.12 Subd. 2.
Tax credit. A qualified brewer producing fermented malt beverages
49.13is entitled to a tax credit of $4.60 per barrel on 25,000 barrels sold in any fiscal year
49.14beginning July 1, regardless of the alcohol content of the product. Qualified brewers may
49.15take the credit on the 18th day of each month, but the total credit allowed may not exceed
49.16in any fiscal year the lesser of:
49.17(1) the liability for tax; or
49.18(2) $115,000.
49.19For purposes of this subdivision, a "qualified brewer" means a brewer, whether
49.20or not located in this state, manufacturing less than 100,000 barrels of fermented malt
49.21beverages in the calendar year immediately preceding the calendar
new text begin fiscalnew text end year for which
49.22the credit under this subdivision is claimed. In determining the number of barrels, all
49.23brands or labels of a brewer must be combined. All facilities for the manufacture of
49.24fermented malt beverages owned or controlled by the same person, corporation, or other
49.25entity must be treated as a single brewer.
new text begin A brewer is owned or controlled when more than new text end
49.26
new text begin 50 percent of the voting stock of each member of the group is directly or indirectly owned new text end
49.27
new text begin by a common owner or by common owners, whether they are corporate or noncorporate.new text end
49.28
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for claims filed after December new text end
49.29
new text begin 31, 2012.new text end
49.30 Sec. 6. Minnesota Statutes 2011 Supplement, section 297I.05, subdivision 7, is
49.31amended to read:
50.1 Subd. 7.
Nonadmitted insurance premium tax. (a) A tax is imposed on surplus
50.2lines brokers. The rate of tax is equal to three percent of the gross premiums less return
50.3premiums paid by an insured whose home state is Minnesota.
50.4(b) A tax is imposed on persons, firms, or corporations
new text begin a person, firm, corporation, new text end
50.5
new text begin or purchasing group as defined in section 60E.02, or any member of a purchasing group,new text end
50.6that procure insurance directly from a nonadmitted insurer. The rate of tax is equal to two
50.7percent of the gross premiums less return premiums paid by an insured whose home
50.8state is Minnesota.
50.9(c) No state other than the home state of an insured may require any premium tax
50.10payment for nonadmitted insurance. When Minnesota is the home state of the insured,
50.11as provided under section
297I.01, 100 percent of the gross premiums are taxable in
50.12Minnesota with no allocation of the tax to other states.
50.13
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for premiums received after new text end
50.14
new text begin December 31, 2012.new text end
50.15 Sec. 7. Minnesota Statutes 2010, section 297I.05, subdivision 11, is amended to read:
50.16 Subd. 11.
Retaliatory provisions. (a) If any other state or country imposes any
50.17taxes, fines, deposits, penalties, licenses, or fees upon any insurance companies of this
50.18state and their agents doing business in another state or country that are in addition to or in
50.19excess of those imposed by the laws of this state upon foreign insurance companies and
50.20their agents doing business in this state, the same taxes, fines, deposits, penalties, licenses,
50.21and fees are imposed upon every similar insurance company of that state or country and
50.22their agents doing or applying to do business in this state.
50.23(b) If any conditions precedent to the right to do business in any other state or
50.24country are imposed by the laws of that state or country, beyond those imposed upon
50.25foreign companies by the laws of this state, the same conditions precedent are imposed
50.26upon every similar insurance company of that state or country and their agents doing or
50.27applying to do business in that state.
50.28(c) For purposes of this subdivision, "taxes, fines, deposits, penalties, licenses, or
50.29fees" means an amount of money that is deposited in the general revenue fund of the state
50.30or other similar fund in another state or country and is not dedicated to a special purpose
50.31or use or money deposited in the general revenue fund of the state or other similar fund in
50.32another state or country and appropriated to the commissioner of commerce or insurance
50.33for the operation of the Department of Commerce or other similar agency with jurisdiction
50.34over insurance. Taxes, fines, deposits, penalties, licenses, or fees do not include:
51.1(1) special purpose obligations or assessments imposed in connection with particular
51.2kinds of insurance, including but not limited to assessments imposed in connection with
51.3residual market mechanisms; or
51.4(2) assessments made by the insurance guaranty association, life and health
51.5guarantee association, or similar association.
51.6(d) This subdivision applies to taxes imposed under subdivisions 1,
new text begin ;new text end 3,
new text begin ;new text end 4, 6, and
new text begin ;new text end 12,
51.7paragraph (a), clauses (1) and (2)
new text begin ; and 14new text end .
51.8(e) This subdivision does not apply to insurance companies organized or domiciled
51.9in a state or country, the laws of which do not impose retaliatory taxes, fines, deposits,
51.10penalties, licenses, or fees or which grant, on a reciprocal basis, exemptions from
51.11retaliatory taxes, fines, deposits, penalties, licenses, or fees to insurance companies
51.12domiciled in this state.
51.13
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
51.14 Sec. 8. Minnesota Statutes 2011 Supplement, section 297I.05, subdivision 12, is
51.15amended to read:
51.16 Subd. 12.
Other entities. (a) A tax is imposed equal to two percent of:
51.17 (1) gross premiums less return premiums written for risks resident or located in
51.18Minnesota by a risk retention group;
51.19 (2) gross premiums less return premiums received by an attorney in fact acting
51.20in accordance with chapter 71A;
51.21 (3) gross premiums less return premiums received pursuant to assigned risk policies
51.22and contracts of coverage under chapter 79;
new text begin andnew text end
51.23 (4) the direct funded premium received by the reinsurance association under section
51.2479.34
from self-insurers approved under section
176.181 and political subdivisions that
51.25self-insure; and
new text begin .new text end
51.26 (5) gross premiums less return premiums paid to an insurer other than a licensed
51.27insurance company or a surplus lines broker for coverage of risks resident or located in
51.28Minnesota by a purchasing group or any members of the purchasing group to a broker or
51.29agent for the purchasing group.
51.30 (b) A tax is imposed on a joint self-insurance plan operating under chapter 60F. The
51.31rate of tax is equal to two percent of the total amount of claims paid during the fund year,
51.32with no deduction for claims wholly or partially reimbursed through stop-loss insurance.
51.33 (c) A tax is imposed on a joint self-insurance plan operating under chapter 62H.
51.34The rate of tax is equal to two percent of the total amount of claims paid during the
52.1fund's fiscal year, with no deduction for claims wholly or partially reimbursed through
52.2stop-loss insurance.
52.3 (d) A tax is imposed equal to the tax imposed under section
297I.05, subdivision 5,
52.4on the gross premiums less return premiums on all coverages received by an accountable
52.5provider network or agents of an accountable provider network in Minnesota, in cash or
52.6otherwise, during the year.
52.7
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for premiums received after new text end
52.8
new text begin December 31, 2012.new text end
52.9 Sec. 9.
new text begin [297I.11] AUTOMOBILE THEFT PREVENTION SURCHARGE.new text end
52.10
new text begin Subdivision 1.new text end new text begin Surcharge.new text end new text begin Each insurer engaged in the writing of policies of new text end
52.11
new text begin automobile insurance shall collect a surcharge, at the rate of 50 cents per vehicle new text end
52.12
new text begin for every six months of coverage, on each policy of automobile insurance providing new text end
52.13
new text begin comprehensive insurance coverage issued or renewed in this state. The surcharge may not new text end
52.14
new text begin be considered premium for any purpose, including the computation of premium tax or new text end
52.15
new text begin agents' commissions. The amount of the surcharge must be separately stated on either a new text end
52.16
new text begin billing or policy declaration sent to an insured. Insurers shall remit the revenue derived new text end
52.17
new text begin from this surcharge to the commissioner of revenue for purposes of the automobile theft new text end
52.18
new text begin prevention program described in section 65B.84. For purposes of this subdivision, "policy new text end
52.19
new text begin of automobile insurance" has the meaning given it in section 65B.14, covering only the new text end
52.20
new text begin following types of vehicles as defined in section 168.002:new text end
52.21
new text begin (1) a passenger automobile;new text end
52.22
new text begin (2) a pickup truck;new text end
52.23
new text begin (3) a van but not commuter vans as defined in section 168.126; ornew text end
52.24
new text begin (4) a motorcycle,new text end
52.25
new text begin except that no vehicle with a gross vehicle weight in excess of 10,000 pounds is included new text end
52.26
new text begin within this definition.new text end
52.27
new text begin Subd. 2.new text end new text begin Automobile theft prevention account.new text end new text begin A special revenue account in new text end
52.28
new text begin the state treasury shall be credited with the proceeds of the surcharge imposed under new text end
52.29
new text begin subdivision 1. Of the revenue in the account, $1,300,000 each year must be transferred to new text end
52.30
new text begin the general fund. Revenues in excess of $1,300,000 each year may be used only for the new text end
52.31
new text begin automobile theft prevention program described in section 65B.84.new text end
52.32
new text begin Subd. 3.new text end new text begin Collection and administration.new text end new text begin The commissioner shall collect and new text end
52.33
new text begin administer the surcharge imposed by this section in the same manner as the taxes imposed new text end
52.34
new text begin by this chapter. The commissioner is appropriated annually, from the automobile theft new text end
52.35
new text begin prevention special revenue account, an amount to reimburse the Department of Revenue new text end
53.1
new text begin for the costs incurred in administering and collecting the surcharge imposed under new text end
53.2
new text begin subdivision 1.new text end
53.3
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for premiums collected after June new text end
53.4
new text begin 30, 2012.new text end
53.5 Sec. 10. Minnesota Statutes 2011 Supplement, section 297I.30, subdivision 1, is
53.6amended to read:
53.7 Subdivision 1.
General rule. On or before March 1, every taxpayer subject to
53.8taxation under section
297I.05, subdivisions 1 to
5,
new text begin ;new text end 7, paragraph (b),
new text begin ;new text end 12, paragraphs (a),
53.9clauses (1) to (4), (b), (c), and (d),
new text begin ;new text end and 14, shall file an annual return for the preceding
53.10calendar year in the form prescribed by the commissioner.
53.11
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for premiums received after new text end
53.12
new text begin December 31, 2012.new text end
53.13 Sec. 11. Minnesota Statutes 2011 Supplement, section 297I.30, subdivision 2, is
53.14amended to read:
53.15 Subd. 2.
Surplus lines brokers and purchasing groups. On or before February
53.1615 and August 15 of each year, every surplus lines broker subject to taxation under
53.17section
297I.05, subdivision 7, paragraph (a), and every purchasing group or member of
53.18a purchasing group subject to tax under section
297I.05, subdivision 12, paragraph (a),
53.19clause (5), shall file a return with the commissioner for the preceding six-month period
53.20ending December 31, or June 30, in the form prescribed by the commissioner.
53.21
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for premiums received after new text end
53.22
new text begin December 31, 2012.new text end
53.23 Sec. 12. Minnesota Statutes 2010, section 297I.30, is amended by adding a subdivision
53.24to read:
53.25
new text begin Subd. 10.new text end new text begin Automobile theft prevention surcharge.new text end new text begin On or before May 1, August new text end
53.26
new text begin 1, November 1, and February 1 of each year, every insurer required to pay the surcharge new text end
53.27
new text begin under section 297I.11 shall file a return with the commissioner for the preceding new text end
53.28
new text begin three-month period ending March 31, June 30, September 30, and December 31, in the new text end
53.29
new text begin form prescribed by the commissioner.new text end
53.30
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for premiums collected after June new text end
53.31
new text begin 30, 2012.new text end
54.1 Sec. 13.
new text begin REPEALER.new text end
54.2
new text begin Minnesota Statutes 2010, section 168A.40, subdivisions 3 and 4,new text end new text begin are repealed.new text end
54.3
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for premiums collected after June new text end
54.4
new text begin 30, 2012. new text end
54.5
ARTICLE 4
54.6
DEPARTMENT POLICY AND TECHNICAL: MINERALS
54.7 Section 1. Minnesota Statutes 2011 Supplement, section 272.02, subdivision 97,
54.8is amended to read:
54.9 Subd. 97.
Property used in business of mining subject to net proceeds tax. The
54.10following property used in the business of mining that is subject to the net proceeds tax
54.11under section
298.015 is exempt:
54.12(1) deposits of ores, metals, and minerals and the lands in which they are contained;
54.13(2) all real and personal property used in mining, quarrying, producing, or refining
54.14ores, minerals, or metals, including lands occupied by or used in connection with the
54.15mining, quarrying, production, or ore refining facilities; and
54.16(3) concentrate or direct reduced ore.
54.17This exemption applies for each year that a person subject to tax under section
54.18298.015
uses the property for mining, quarrying, producing, or refining ores, metals, or
54.19minerals.
54.20
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
54.21 Sec. 2. Minnesota Statutes 2011 Supplement, section 298.01, subdivision 3, is
54.22amended to read:
54.23 Subd. 3.
Occupation tax; other ores. Every person engaged in the business of
54.24mining, refining, or producing ores, metals, or minerals in this state, except iron ore or
54.25taconite concentrates, shall pay an occupation tax to the state of Minnesota as provided
54.26in this subdivision. For purposes of this subdivision, mining includes the application of
54.27hydrometallurgical processes.
new text begin Hydrometallurgical processes are processes that extract new text end
54.28
new text begin the ores, metals, or minerals, by use of aqueous solutions that leach, concentrate, and new text end
54.29
new text begin recover the ore, metal, or mineral.new text end The tax is determined in the same manner as the tax
54.30imposed by section
290.02, except that sections
290.05, subdivision 1, clause (a),
290.17,
54.31subdivision 4
, and
290.191, subdivision 2, do not apply, and the occupation tax must
54.32be computed by applying to taxable income the rate of 2.45 percent. A person subject
55.1to occupation tax under this section shall apportion its net income on the basis of the
55.2percentage obtained by taking the sum of:
55.3(1) 75 percent of the percentage which the sales made within this state in connection
55.4with the trade or business during the tax period are of the total sales wherever made in
55.5connection with the trade or business during the tax period;
55.6(2) 12.5 percent of the percentage which the total tangible property used by the
55.7taxpayer in this state in connection with the trade or business during the tax period is of
55.8the total tangible property, wherever located, used by the taxpayer in connection with the
55.9trade or business during the tax period; and
55.10(3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred
55.11in this state or paid in respect to labor performed in this state in connection with the trade
55.12or business during the tax period are of the taxpayer's total payrolls paid or incurred in
55.13connection with the trade or business during the tax period.
55.14The tax is in addition to all other taxes.
55.15
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
55.16 Sec. 3. Minnesota Statutes 2010, section 298.018, subdivision 2, is amended to read:
55.17 Subd. 2.
Outside taconite assistance area. The proceeds of the tax paid under
55.18sections
298.015 to
298.017 on
new text begin ores, metals, or new text end minerals and energy resources mined
55.19or extracted outside of the taconite assistance area defined in section
273.1341, shall
55.20be deposited in the general fund.
55.21
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
55.22
ARTICLE 5
55.23
DEPARTMENT POLICY AND TECHNICAL: MISCELLANEOUS
55.24 Section 1. Minnesota Statutes 2010, section 16A.46, is amended to read:
55.25
16A.46 LOST OR DESTROYED WARRANT DUPLICATE; INDEMNITY.
55.26
new text begin Subdivision 1.new text end new text begin Duplicate warrant.new text end The commissioner may issue a duplicate
55.27of an unpaid warrant to an owner if the owner certifies that the original was lost or
55.28destroyed. The commissioner may require certification be documented by affidavit.
new text begin new text end
55.29
new text begin The commissioner may refuse to issue a duplicate of an unpaid state warrant. If the new text end
55.30
new text begin commissioner acts in good faith the commissioner is not liable, whether the application is new text end
55.31
new text begin granted or denied.new text end
55.32
new text begin Subd. 2.new text end new text begin Original warrant is void.new text end When the duplicate is issued, the original is
55.33void. The commissioner may require an indemnity bond from the applicant to the state for
56.1double the amount of the warrant for anyone damaged by the issuance of the duplicate.
56.2The commissioner may refuse to issue a duplicate of an unpaid state warrant. If the
56.3commissioner acts in good faith the commissioner is not liable, whether the application is
56.4granted or denied
new text begin is not liable to any holder who took the void original warrant for value, new text end
56.5
new text begin whether the commissioner required an indemnity bond from the applicant or notnew text end .
56.6
new text begin Subd. 3.new text end new text begin Unpaid refund or rebate.new text end For an unpaid refund or rebate issued under a
56.7tax law administered by the commissioner of revenue that has been lost or destroyed, an
56.8affidavit is not required for the commissioner to issue a duplicate if the duplicate is issued
56.9to the same name and Social Security number as the original warrant and that information
56.10is verified on a tax return filed by the recipient.
56.11
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
56.12 Sec. 2. Minnesota Statutes 2010, section 270C.38, subdivision 1, is amended to read:
56.13 Subdivision 1.
Sufficient notice. new text begin (a) new text end If no method of notification of a written
56.14determination or action of the commissioner is otherwise specifically provided for by
56.15law, notice of the determination or action sent postage prepaid by United States mail to
56.16the taxpayer or other person affected by the determination or action at the taxpayer's
56.17or person's last known address, is sufficient. If the taxpayer or person being notified is
56.18deceased or is under a legal disability, or, in the case of a corporation being notified that
56.19has terminated its existence, notice to the last known address of the taxpayer, person, or
56.20corporation is sufficient, unless the department has been provided with a new address by a
56.21party authorized to receive notices from the commissioner.
56.22
new text begin (b) If a taxpayer or other person agrees to accept notification by electronic means, new text end
56.23
new text begin notice of a determination or action of the commissioner sent by electronic mail to the new text end
56.24
new text begin taxpayer's or person's last known electronic mailing address as provided for in section new text end
56.25
new text begin 325L.08 is sufficient.new text end
56.26
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
56.27 Sec. 3. Minnesota Statutes 2010, section 270C.42, subdivision 2, is amended to read:
56.28 Subd. 2.
Penalty for failure to pay electronically. In addition to other applicable
56.29penalties imposed by law, after notification from the commissioner to the taxpayer that
56.30payments for a tax payable to the commissioner are required to be made by electronic
56.31means, and the payments are remitted by some other means, there is a penalty in the
56.32amount of five percent of each payment that should have been remitted electronically.
56.33After the commissioner's initial notification to the taxpayer that payments are required to
57.1be made by electronic means, the commissioner is not required to notify the taxpayer in
57.2subsequent periods if the initial notification specified the amount of tax liability at which a
57.3taxpayer is required to remit payments by electronic means. The penalty can be abated
57.4under the abatement procedures prescribed in section
270C.34 if the failure to remit the
57.5payment electronically is due to reasonable cause. The penalty bears interest at the rate
57.6specified in section
270C.40 from the due date of the payment of the tax
new text begin provided in new text end
57.7
new text begin section 270C.40, subdivision 3,new text end to the date of payment of the penalty.
57.8
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
57.9 Sec. 4. Minnesota Statutes 2010, section 270C.69, subdivision 1, is amended to read:
57.10 Subdivision 1.
Notice and procedures. (a) The commissioner may, within five years
57.11after the date of assessment of the tax, or if a lien has been filed under section
270C.63,
57.12within the statutory period for enforcement of the lien, give notice to any employer
57.13deriving income which has a taxable situs in this state regardless of whether the income is
57.14exempt from taxation, that an employee of that employer is delinquent in a certain amount
57.15with respect to any taxes, including penalties, interest, and costs. The commissioner can
57.16proceed under this section only if the tax is uncontested or if the time for appeal of the tax
57.17has expired. The commissioner shall not proceed under this section until the expiration of
57.1830 days after mailing to the taxpayer, at the taxpayer's last known address, a written notice
57.19of (1) the amount of taxes, interest, and penalties due from the taxpayer and demand for
57.20their payment, and (2) the commissioner's intention to require additional withholding by
57.21the taxpayer's employer pursuant to this section. The effect of the notice shall expire one
57.22year after it has been mailed to the taxpayer provided that the notice may be renewed by
57.23mailing a new notice which is in accordance with this section. The renewed notice shall
57.24have the effect of reinstating the priority of the original claim. The notice to the taxpayer
57.25shall be in substantially the same form as that provided in section
571.72. The notice
57.26shall further inform the taxpayer of the wage exemptions contained in section
550.37,
57.27subdivision 14
. If no statement of exemption is received by the commissioner within 30
57.28days from the mailing of the notice, the commissioner may proceed under this section.
57.29The notice to the taxpayer's employer may be served by mail or by delivery by an agent of
57.30the department and shall be in substantially the same form as provided in section
571.75.
57.31Upon receipt of notice, the employer shall withhold from compensation due or to become
57.32due to the employee, the total amount shown by the notice, subject to the provisions of
57.33section
571.922. The employer shall continue to withhold each pay period until the notice
57.34is released by the commissioner under section
270C.7109. Upon receipt of notice by the
57.35employer, the claim of the state of Minnesota shall have priority over any subsequent
58.1garnishments or wage assignments. The commissioner may arrange between the employer
58.2and the employee for withholding a portion of the total amount due the employee each pay
58.3period, until the total amount shown by the notice plus accrued interest has been withheld.
58.4(b) The "compensation due" any employee is defined in accordance with the
58.5provisions of section
571.921. The maximum withholding allowed under this section for
58.6any one pay period shall be decreased by any amounts payable pursuant to a garnishment
58.7action with respect to which the employer was served prior to being served with the notice
58.8of delinquency and any amounts covered by any irrevocable and previously effective
58.9assignment of wages; the employer shall give notice to the commissioner of the amounts
58.10and the facts relating to such assignments within ten days after the service of the notice of
58.11delinquency on the form provided by the commissioner as noted in this section.
58.12(c) Within ten days after the expiration of such pay period, the employer shall remit
58.13to the commissioner, on a form and in the manner prescribed by the commissioner, the
58.14amount withheld during each pay period under this section.
new text begin The employer must file all new text end
58.15
new text begin wage levy disclosure forms and remit all wage levy payments by electronic means.new text end
58.16
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for wage levy disclosures or wage new text end
58.17
new text begin levy payments filed or made after December 31, 2012.new text end
58.18 Sec. 5. Minnesota Statutes 2010, section 287.385, subdivision 7, is amended to read:
58.19 Subd. 7.
Interest on penalties. A penalty imposed under this chapter bears interest
58.20from the date payment was required to be paid, including any extensions,
new text begin provided in new text end
58.21
new text begin section 270C.40, subdivision 3, new text end to the date of payment of the penalty.
58.22
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
58.23 Sec. 6. Minnesota Statutes 2010, section 289A.55, subdivision 9, is amended to read:
58.24 Subd. 9.
Interest on penalties. (a) A penalty imposed under section
289A.60,
58.25subdivision 1
, 2, 2a, 4, 5, 6, or 21 bears interest from the date the return or payment
58.26was required to be filed or paid, including any extensions
new text begin provided in section 270C.40, new text end
58.27
new text begin subdivision 3new text end , to the date of payment of the penalty.
58.28(b) A penalty not included in paragraph (a) bears interest only if it is not paid within
58.2960 days from the date of notice. In that case interest is imposed from the date of notice
58.30to the date of payment.
58.31
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
58.32 Sec. 7. Minnesota Statutes 2010, section 289A.60, subdivision 4, is amended to read:
59.1 Subd. 4.
Substantial understatement of liability; penalty. (a) The commissioner
59.2of revenue shall impose a penalty for substantial understatement of any tax payable to the
59.3commissioner, except a tax imposed under chapter 297A.
59.4(b) There must be added to the tax an amount equal to 20 percent of the amount of any
59.5underpayment attributable to the understatement. There is a substantial understatement of
59.6tax for the period if the amount of the understatement for the period exceeds the greater of:
59.7(1) ten percent of the tax required to be shown on the return for the period; or
59.8(2)(i) $10,000 in the case of a mining company or a corporation, other than an S
59.9corporation as defined in section
290.9725, when the tax is imposed by chapter 290 or
59.10section
298.01 or
298.015, or
59.11(ii) $5,000 in the case of any other taxpayer, and in the case of a mining company or
59.12a corporation any tax not imposed by chapter 290 or section
298.01 or
298.015.
59.13(c) For a corporation, other than an S corporation, there is also a substantial
59.14understatement of tax for any taxable year if the amount of the understatement for the
59.15taxable year exceeds the lesser of:
59.16(1) ten percent of the tax required to be shown on the return for the taxable year
59.17(or, if greater, $10,000); or
59.18(2) $10,000,000.
59.19(d) The term "understatement" means the excess of the amount of the tax required
59.20to be shown on the return for the period, over the amount of the tax imposed that is
59.21shown on the return. The excess must be determined without regard to items to which
59.22subdivision 27 applies. The amount of the understatement shall be reduced by that part of
59.23the understatement that is attributable to the tax treatment of any item by the taxpayer if
59.24(1) there is or was substantial authority for the treatment, or (2)(i) any item with respect to
59.25which the relevant facts affecting the item's tax treatment are adequately disclosed in the
59.26return or in a statement attached to the return and (ii) there is a reasonable basis for the tax
59.27treatment of the item. The exception for substantial authority under clause (1) does not
59.28apply to positions listed by the Secretary of the Treasury under section 6662(d)(3) of the
59.29Internal Revenue Code. A corporation does not have a reasonable basis for its tax treatment
59.30of an item attributable to a multiple-party financing transaction if the treatment does not
59.31clearly reflect the income of the corporation within the meaning of section 6662(d)(2)(B)
59.32of the Internal Revenue Code. The special rules in cases involving tax shelters provided in
59.33section 6662(d)(2)(C) of the Internal Revenue Code shall apply and shall apply to a tax
59.34shelter the principal purpose of which is the avoidance or evasion of state taxes.
59.35(e) The commissioner may abate all or any part of the addition to the tax provided
59.36by this section on a showing by the taxpayer that there was reasonable cause for the
60.1understatement, or part of it, and that the taxpayer acted in good faith. The additional tax
60.2and penalty shall bear interest at the rate
new text begin asnew text end specified in section
270C.40 from the time
60.3the tax should have been paid until paid.
60.4
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
60.5 Sec. 8. Minnesota Statutes 2010, section 296A.22, is amended to read:
60.6
296A.22 NONPAYMENT OF TAX; CIVIL PENALTIES.
60.7 Subdivision 1.
Penalty for failure to pay tax, general rule. Upon the failure of
60.8any person to pay any tax or fee when due, a penalty of one percent per day for the first
60.9ten days of delinquency shall accrue, and thereafter the tax, fees, and penalty shall bear
60.10interest at the rate specified in section
270C.40new text begin until paidnew text end .
60.11 Subd. 2.
Collection authority. Upon such a failure to pay any tax or fees within the
60.12time provided by this chapter, all taxes and fees imposed by this chapter shall become
60.13immediately due and payable, and may be collected as provided in chapter 270C.
60.14 Subd. 3.
Operating without license. If any person operates as a distributor, special
60.15fuel dealer, bulk purchaser, or motor carrier without first securing the license required
60.16under this chapter, any tax or fee imposed by this chapter shall become immediately due
60.17and payable. A penalty of 25 percent is imposed upon the tax and fee due. The tax,
new text begin andnew text end
60.18fees, and penalty shall bear interest at the rate specified in section
270C.40.
new text begin The penalty new text end
60.19
new text begin imposed in this subdivision shall bear interest from the date provided in section 270C.40, new text end
60.20
new text begin subdivision 3, to the date of payment of the penalty.new text end
60.21 Subd. 4.
Unlawful use of dyed fuel. (a) If any dyed fuel is sold or held for sale by a
60.22person for any use which the person knows or has reason to know is not a nontaxable use
60.23of the fuel; or if any dyed fuel is held for use or used in a licensed motor vehicle or for any
60.24other use by a person for a use other than a nontaxable use and the person knew, or had
60.25reason to know, that the fuel was so dyed; or if a person willfully alters, or attempts to
60.26alter, the strength or composition of any dye or marking in any dyed fuel, then the person
60.27shall pay a penalty in addition to the tax, if any.
60.28(b) Except as provided in paragraph (c), the amount of penalty under paragraph (a)
60.29for each act is the greater of $1,000, or $10 for each gallon of dyed fuel involved.
60.30(c) With regard to a multiple violation under paragraph (a), the penalty shall be
60.31applied by increasing the amount in paragraph (b) by the product of (1) such amount, and
60.32(2) the number of prior penalties, if any, imposed by this section on the person, or a related
60.33person, or any predecessor of the person or related person.
61.1(d) If a penalty is imposed under this subdivision on a business entity, each officer,
61.2employee, or agent of the entity who willfully participated in any act giving rise to the
61.3penalty is jointly and severally liable with the entity for the penalty.
61.4 Subd. 5.
Receiver appointed. In the event a suit is instituted as provided in
61.5subdivision 2, the court shall, upon application, appoint a receiver of the property and
61.6business of the delinquent defendant for the purpose of impounding the same as security
61.7for any judgment which has been or may be recovered.
61.8 Subd. 6.
Sale prohibited under certain conditions. No petroleum product shall
61.9be unloaded or sold by any person or distributor whose tax and fees are the basis for
61.10collection action under subdivision 2.
61.11 Subd. 7.
Payment of penalties. The penalties imposed by this section are collected
61.12and paid in the same manner as taxes.
61.13 Subd. 8.
Penalties are additional. The civil penalties imposed by this section are in
61.14addition to the criminal penalties imposed by this chapter.
61.15 Subd. 9.
Abatement of penalty. (a) The commissioner may by written order
61.16abate any penalty imposed under this section, if in the commissioner's opinion there is
61.17reasonable cause to do so.
61.18(b) A request for abatement of penalty must be filed with the commissioner within
61.1960 days of the date the notice stating that a penalty has been imposed was mailed to
61.20the taxpayer's last known address.
61.21(c) If the commissioner issues an order denying a request for abatement of penalty,
61.22the taxpayer may file an administrative appeal as provided in section 270C.35 or appeal to
61.23Tax Court as provided in section
271.06. If the commissioner does not issue an order on
61.24the abatement request within 60 days from the date the request is received, the taxpayer
61.25may appeal to Tax Court as provided in section
271.06.
61.26
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
61.27 Sec. 9. Minnesota Statutes 2010, section 297E.14, subdivision 7, is amended to read:
61.28 Subd. 7.
Interest on penalties. (a) A penalty imposed under section
297E.12,
61.29subdivision 1
, 2, 3, 4, or 5, bears interest from the date the return or payment was required
61.30to be filed or paid, including any extensions
new text begin provided in section 270C.40, subdivision 3new text end , to
61.31the date of payment of the penalty.
61.32(b) A penalty not included in paragraph (a) bears interest only if it is not paid within
61.33ten days from the date of notice. In that case interest is imposed from the date of notice
61.34to the date of payment.
62.1
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
62.2 Sec. 10. Minnesota Statutes 2010, section 297F.09, subdivision 9, is amended to read:
62.3 Subd. 9.
Interest. The amount of tax not timely paid, together with any penalty
62.4imposed in this section, bears interest at the rate specified in section
270C.40 from the
62.5time such tax should have been paid until paid.
new text begin The penalty imposed in this section bears new text end
62.6
new text begin interest at the rate specified in section 270C.40 from the date provided in section 270C.40, new text end
62.7
new text begin subdivision 3, to the date of payment of the penalty. new text end Any interest and penalty is added to
62.8the tax and collected as a part of it.
62.9
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
62.10 Sec. 11. Minnesota Statutes 2010, section 297F.18, subdivision 7, is amended to read:
62.11 Subd. 7.
Interest on penalties. (a) A penalty imposed under section
297F.19,
62.12subdivisions 2 to 7
, bears interest from the date the return or payment was required to be
62.13filed or paid, including any extensions
new text begin provided in section 270C.40, subdivision 3new text end , to the
62.14date of payment of the penalty.
62.15(b) A penalty not included in paragraph (a) bears interest only if it is not paid within
62.16ten days from the date of the notice. In that case interest is imposed from the date of notice
62.17to the date of payment.
62.18
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
62.19 Sec. 12. Minnesota Statutes 2010, section 297G.09, subdivision 8, is amended to read:
62.20 Subd. 8.
Interest. The amount of tax not timely paid, together with any penalty
62.21imposed by this chapter, bears interest at the rate specified in section
270C.40 from the
62.22time the tax should have been paid until paid.
new text begin Any penalty imposed by this chapter bears new text end
62.23
new text begin interest from the date provided in section 270C.40, subdivision 3, to the date of payment new text end
62.24
new text begin of the penalty. new text end Any interest and penalty is added to the tax and collected as a part of it.
62.25
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
62.26 Sec. 13. Minnesota Statutes 2010, section 297G.17, subdivision 7, is amended to read:
62.27 Subd. 7.
Interest on penalties. (a) A penalty imposed under section
297G.18,
62.28subdivisions 2 to 7
, bears interest from the date the return or payment was required to be
62.29filed or paid, including any extensions
new text begin provided in section 270C.40, subdivision 3new text end , to the
62.30date of payment of the penalty.
63.1(b) A penalty not included in paragraph (a) bears interest only if it is not paid within
63.2ten days from the date of the notice. In that case interest is imposed from the date of notice
63.3to the date of payment.
63.4
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
63.5 Sec. 14. Minnesota Statutes 2010, section 297I.80, subdivision 1, is amended to read:
63.6 Subdivision 1.
Payable to commissioner. (a) When interest is required under this
63.7section, interest is computed at the rate specified in section
270C.40.
63.8(b) If a tax or surcharge is not paid within the time named by law for payment, the
63.9unpaid tax or surcharge bears interest from the date the tax or surcharge should have been
63.10paid until the date the tax or surcharge is paid.
63.11(c) Whenever a taxpayer is liable for additional tax or surcharge because of a
63.12redetermination by the commissioner or other reason, the additional tax or surcharge
63.13bears interest from the time the tax or surcharge should have been paid until the date the
63.14tax or surcharge is paid.
63.15(d) A penalty bears interest from the date the return or payment was required to be
63.16filed or paid
new text begin provided in section 270C.40, subdivision 3,new text end to the date of payment of the
63.17penalty.
63.18
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
63.19
ARTICLE 6
63.20
PUBLIC FINANCE
63.21 Section 1. Minnesota Statutes 2010, section 373.40, subdivision 1, is amended to read:
63.22 Subdivision 1.
Definitions. For purposes of this section, the following terms have
63.23the meanings given.
63.24(a) "Bonds" means an obligation as defined under section
475.51.
63.25(b) "Capital improvement" means acquisition or betterment of public lands,
63.26buildings, or other improvements within the county for the purpose of a county courthouse,
63.27administrative building, health or social service facility, correctional facility, jail, law
63.28enforcement center, hospital, morgue, library, park, qualified indoor ice arena, roads
63.29and bridges,
new text begin public works facilities, fairgrounds buildings, and records and data storage new text end
63.30
new text begin facilities,new text end and the acquisition of development rights in the form of conservation easements
63.31under chapter 84C. An improvement must have an expected useful life of five years or
63.32more to qualify. "Capital improvement" does not include a recreation or sports facility
63.33building (such as, but not limited to, a gymnasium, ice arena, racquet sports facility,
64.1swimming pool, exercise room or health spa), unless the building is part of an outdoor
64.2park facility and is incidental to the primary purpose of outdoor recreation.
64.3(c) "Metropolitan county" means a county located in the seven-county metropolitan
64.4area as defined in section
473.121 or a county with a population of 90,000 or more.
64.5(d) "Population" means the population established by the most recent of the
64.6following (determined as of the date the resolution authorizing the bonds was adopted):
64.7(1) the federal decennial census,
64.8(2) a special census conducted under contract by the United States Bureau of the
64.9Census, or
64.10(3) a population estimate made either by the Metropolitan Council or by the state
64.11demographer under section
4A.02.
64.12(e) "Qualified indoor ice arena" means a facility that meets the requirements of
64.13section
373.43.
64.14(f) "Tax capacity" means total taxable market value, but does not include captured
64.15market value.
64.16 Sec. 2. Minnesota Statutes 2010, section 373.40, subdivision 2, is amended to read:
64.17 Subd. 2.
Application of election requirement. (a) Bonds issued by a county
64.18to finance capital improvements under an approved capital improvement plan are not
64.19subject to the election requirements of section
375.18 or
475.58. The bonds must be
64.20approved by vote of at least three-fifths of the members of the county board. In the case
64.21of a metropolitan county, the bonds must be approved by vote of at least two-thirds of
64.22the members of the county board.
64.23(b) Before issuance of bonds qualifying under this section, the county must publish
64.24a notice of its intention to issue the bonds and the date and time of a hearing to obtain
64.25public comment on the matter. The notice must be published in the official newspaper
64.26of the county or in a newspaper of general circulation in the county. The notice must be
64.27published at least 14, but not more than 28, days before the date of the hearing.
64.28(c) A county may issue the bonds only upon obtaining the approval of a majority of
64.29the voters voting on the question of issuing the obligations, if a petition requesting a vote
64.30on the issuance is signed by voters equal to five percent of the votes cast in the county in
64.31the last
new text begin county new text end general election and is filed with the county auditor within 30 days after
64.32the public hearing. The commissioner of revenue shall prepare a suggested form of the
64.33question to be presented at the election
new text begin If the county elects not to submit the question to new text end
64.34
new text begin the voters, the county shall not propose the issuance of bonds under this section for the new text end
64.35
new text begin same purpose and in the same amount for a period of 365 days from the date of receipt new text end
65.1
new text begin of the petition. If the question of issuing the bonds is submitted and not approved by the new text end
65.2
new text begin voters, the provisions of section 475.58, subdivision 1a, applynew text end .
65.3 Sec. 3. Minnesota Statutes 2010, section 373.40, subdivision 4, is amended to read:
65.4 Subd. 4.
Limitations on amount. A county may not issue bonds under this section
65.5if the maximum amount of principal and interest to become due in any year on all the
65.6outstanding bonds issued pursuant to this section (including the bonds to be issued) will
65.7equal or exceed 0.12 percent of taxable market value of property in the county. Calculation
65.8of the limit must be made using the taxable market value for the taxes payable year in
65.9which the obligations are issued and sold
new text begin , provided that, for purposes of determining new text end
65.10
new text begin the principal and interest due in any year, the county may deduct the amount of interest new text end
65.11
new text begin expected to be paid or reimbursed to the county by the federal government in that year on new text end
65.12
new text begin any outstanding bonds or the bonds to be issuednew text end . This section does not limit the authority
65.13to issue bonds under any other special or general law.
65.14 Sec. 4. Minnesota Statutes 2010, section 474A.02, subdivision 23a, is amended to read:
65.15 Subd. 23a.
Qualified bonds. "Qualified bonds" means the specific type or types
65.16of obligations that are subject to the annual volume cap. Qualified bonds include the
65.17following types of obligations as defined in federal tax law:
65.18(a) "public facility bonds" means "exempt facility bonds" as defined in federal
65.19tax law, except for residential rental project bonds, which are those obligations issued
65.20to finance airports, docks and wharves, mass commuting facilities, facilities for the
65.21furnishing of water, sewage facilities, solid waste disposal facilities, facilities for the
65.22local furnishing of electric energy or gas, local district heating or cooling facilities, and
65.23qualified hazardous waste facilities. New bonds and other obligations are ineligible to
65.24receive state allocations or entitlement authority for public facility projects under this
65.25section if they have been issued:
65.26(1) for the purpose of refinancing, refunding, or otherwise defeasing existing debt;
65.27and
65.28(2) more than one calendar year prior to the date of application;
65.29(b) "residential rental project bonds" which are those obligations issued to finance
65.30qualified residential rental projects;
65.31(c) "mortgage bonds";
65.32(d) "small issue bonds" issued to finance manufacturing projects and the acquisition
65.33or improvement of agricultural real or personal property under sections
41C.01 to
41C.13;
66.1(e) "student loan bonds" issued by or on behalf of the Minnesota Office of Higher
66.2Education;
66.3(f) "redevelopment bonds";
66.4(g) "governmental bonds" with a nonqualified amount in excess of $15,000,000 as
66.5set forth in section 141(b)5 of federal tax law; and
66.6(h) "enterprise zone facility bonds" issued to finance facilities located within
66.7empowerment zones or enterprise communities, as authorized under Public Law 103-66,
66.8section 13301
new text begin section 1394 of the Internal Revenue Codenew text end .
66.9 Sec. 5. Minnesota Statutes 2010, section 474A.04, subdivision 1a, is amended to read:
66.10 Subd. 1a.
Entitlement reservations; carryforward; deduction. Any amount
66.11returned by an entitlement issuer before July 15 shall be reallocated through the housing
66.12pool. Any amount returned on or after July 15 shall be reallocated through the unified
66.13pool. An amount returned after the last Monday in November shall be reallocated to the
66.14Minnesota housing finance agency. Any amount of bonding authority that an entitlement
66.15issuer carries forward under federal tax law that is not permanently issued or for which
66.16the governing body of the entitlement issuer has not enacted a resolution electing to use
66.17the authority for mortgage credit certificates and has not provided a notice of issue to the
66.18commissioner before 4:30 p.m. on the last business day in December of the succeeding
66.19calendar year shall be deducted from the entitlement allocation for that entitlement issuer
66.20in the next succeeding calendar year. Any amount deducted from an entitlement issuer's
66.21allocation under this subdivision shall be reallocated to other entitlement issuers, the
66.22housing pool, the small issue pool, and the public facilities pool on a proportional basis
66.23consistent with section
.
66.24
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment new text end
66.25
new text begin and applies to any bonding authority allocated in 2011 and subsequent years.new text end
66.26 Sec. 6. Minnesota Statutes 2010, section 474A.062, is amended to read:
66.27
474A.062 MINNESOTA OFFICE OF HIGHER EDUCATION 120-DAY
66.28
ISSUANCE EXEMPTION.
66.29The Minnesota Office of Higher Education is exempt from the 120-day issuance
66.30requirements in this chapter and may carry forward allocations for student loan bonds
66.31into one successive calendar year, subject to carryforward notice requirements of section
66.32474A.131, subdivision 2
.
67.1
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment new text end
67.2
new text begin and applies to any bonding authority allocated in 2011 and subsequent years.new text end
67.3 Sec. 7. Minnesota Statutes 2010, section 474A.091, subdivision 3a, is amended to read:
67.4 Subd. 3a.
Mortgage bonds. (a) Bonding authority remaining in the unified pool on
67.5October 1 is available for single-family housing programs for cities that applied in January
67.6and received an allocation under section
474A.061, subdivision 2a, in the same calendar
67.7year. The Minnesota Housing Finance Agency shall receive an allocation for mortgage
67.8bonds pursuant to this section, minus any amounts for a city or consortium that intends to
67.9issue bonds on its own behalf under paragraph (c).
67.10(b) The agency may issue bonds on behalf of participating cities. The agency shall
67.11request an allocation from the commissioner for all applicants who choose to have the
67.12agency issue bonds on their behalf and the commissioner shall allocate the requested
67.13amount to the agency. Allocations shall be awarded by the commissioner each Monday
67.14commencing on the first Monday in October through the last Monday in November for
67.15applications received by 4:30 p.m. on the Monday of the week preceding an allocation.
67.16For cities who choose to have the agency issue bonds on their behalf, allocations
67.17will be made loan by loan, on a first-come, first-served basis among the cities. The
67.18agency shall submit an application fee pursuant to section
474A.03, subdivision 4, and an
67.19application deposit equal to two percent of the requested allocation to the commissioner
67.20when requesting an allocation from the unified pool. After awarding an allocation and
67.21receiving a notice of issuance for mortgage bonds issued on behalf of the participating
67.22cities, the commissioner shall transfer the application deposit to the Minnesota Housing
67.23Finance Agency.
67.24For purposes of paragraphs (a) to (d), "city" means a county or a consortium of
67.25local government units that agree through a joint powers agreement to apply together
67.26for single-family housing programs, and has the meaning given it in section
462C.02,
67.27subdivision 6
. "Agency" means the Minnesota Housing Finance Agency.
67.28(c) Any city that received an allocation pursuant to section
474A.061, subdivision
67.292a, paragraph (f)
, in the current year that wishes to receive an additional allocation from
67.30the unified pool and issue bonds on its own behalf or pursuant to a joint powers agreement
67.31shall notify the Minnesota Housing Finance Agency by the third Monday in September.
67.32The total amount of allocation for mortgage bonds for a city choosing to issue bonds on its
67.33own behalf or through a joint powers agreement is limited to the lesser of: (i) the amount
67.34requested, or (ii) the product of the total amount available for mortgage bonds from the
67.35unified pool, multiplied by the ratio of the population of each city that applied in January
68.1and received an allocation under section
474A.061, subdivision 2a, in the same calendar
68.2year, as determined by the most recent estimate of the city's population released by the
68.3state demographer's office to the total of the population of all the cities that applied in
68.4January and received an allocation under section
474A.061, subdivision 2a, in the same
68.5calendar year. If a city choosing to issue bonds on its own behalf or through a joint powers
68.6agreement is located within a county that has also chosen to issue bonds on its own behalf
68.7or through a joint powers agreement, the city's population will be deducted from the
68.8county's population in calculating the amount of allocations under this paragraph.
68.9The Minnesota Housing Finance Agency shall notify each city choosing to issue
68.10bonds on its own behalf or pursuant to a joint powers agreement of the amount of its
68.11allocation by October 15. Upon determining the amount of the allocation of each choosing
68.12to issue bonds on its own behalf or through a joint powers agreement, the agency shall
68.13forward a list specifying the amounts allotted to each city.
68.14A city that chooses to issue bonds on its own behalf or through a joint powers
68.15agreement may request an allocation from the commissioner by forwarding an application
68.16with an application fee pursuant to section
474A.03, subdivision 4, and an application
68.17deposit equal to two percent of the requested amount to the commissioner no later than
68.184:30 p.m. on the Monday of the week preceding an allocation. Allocations to cities that
68.19choose to issue bonds on their own behalf shall be awarded by the commissioner on
68.20the first Monday after October 15 through the last Monday in November. No city may
68.21receive an allocation from the commissioner after the last Monday in November. The
68.22commissioner shall allocate the requested amount to the city or cities subject to the
68.23limitations under this subdivision.
68.24If a city issues mortgage bonds from an allocation received under this paragraph,
68.25the issuer must provide for the recycling of funds into new loans. If the issuer is not
68.26able to provide for recycling, the issuer must notify the commissioner in writing of the
68.27reason that recycling was not possible and the reason the issuer elected not to have the
68.28Minnesota Housing Finance Agency issue the bonds. "Recycling" means the use of money
68.29generated from the repayment and prepayment of loans for further eligible loans or for the
68.30redemption of bonds and the issuance of current refunding bonds.
68.31(d) No entitlement city or county or city in an entitlement county may apply for or
68.32be allocated authority to issue mortgage bonds or use mortgage credit certificates from
68.33the unified pool.
68.34(e) An allocation awarded to the agency for mortgage bonds under this section
68.35may be carried forward by the agency into the next succeeding calendar year subject to
69.1notice requirements under section
474A.131 and is available until the last business day in
69.2December of that succeeding calendar year.
69.3
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment new text end
69.4
new text begin and applies to any bonding authority allocated in 2011 and subsequent years.new text end
69.5 Sec. 8. Minnesota Statutes 2010, section 475.521, subdivision 2, is amended to read:
69.6 Subd. 2.
Election requirement. (a) Bonds issued by a municipality to finance
69.7capital improvements under an approved capital improvements plan are not subject to the
69.8election requirements of section
475.58. The bonds must be approved by an affirmative
69.9vote of three-fifths of the members of a five-member governing body. In the case of a
69.10governing body having more or less than five members, the bonds must be approved by a
69.11vote of at least two-thirds of the members of the governing body.
69.12(b) Before the issuance of bonds qualifying under this section, the municipality
69.13must publish a notice of its intention to issue the bonds and the date and time of the
69.14hearing to obtain public comment on the matter. The notice must be published in the
69.15official newspaper of the municipality or in a newspaper of general circulation in the
69.16municipality. Additionally, the notice may be posted on the official Web site, if any, of the
69.17municipality. The notice must be published at least 14 but not more than 28 days before
69.18the date of the hearing.
69.19(c) A municipality may issue the bonds only after obtaining the approval of a
69.20majority of the voters voting on the question of issuing the obligations, if a petition
69.21requesting a vote on the issuance is signed by voters equal to five percent of the votes cast
69.22in the municipality in the last
new text begin municipal new text end general election and is filed with the clerk within
69.2330 days after the public hearing. The commissioner of revenue shall prepare a suggested
69.24form of the question to be presented at the election
new text begin If the municipality elects not to submit new text end
69.25
new text begin the question to the voters, the municipality shall not propose the issuance of bonds under new text end
69.26
new text begin this section for the same purpose and in the same amount for a period of 365 days from the new text end
69.27
new text begin date of receipt of the petition. If the question of issuing the bonds is submitted and not new text end
69.28
new text begin approved by the voters, the provisions of section 475.58, subdivision 1a, applynew text end .
69.29 Sec. 9. Minnesota Statutes 2010, section 475.521, subdivision 4, is amended to read:
69.30 Subd. 4.
Limitations on amount. A municipality may not issue bonds under
69.31this section if the maximum amount of principal and interest to become due in any
69.32year on all the outstanding bonds issued under this section, including the bonds to be
69.33issued, will equal or exceed 0.16 percent of the taxable market value of property in the
69.34municipality. Calculation of the limit must be made using the taxable market value for
70.1the taxes payable year in which the obligations are issued and sold
new text begin , provided that, for new text end
70.2
new text begin purposes of determining the principal and interest due in any year, the municipality may new text end
70.3
new text begin deduct the amount of interest expected to be paid or reimbursed to the municipality by the new text end
70.4
new text begin federal government in that year on any outstanding bonds or the bonds to be issuednew text end . In
70.5the case of a municipality with a population of 2,500 or more, the bonds are subject to
70.6the net debt limits under section
475.53. In the case of a shared facility in which more
70.7than one municipality participates, upon compliance by each participating municipality
70.8with the requirements of subdivision 2, the limitations in this subdivision and the net debt
70.9represented by the bonds shall be allocated to each participating municipality in proportion
70.10to its required financial contribution to the financing of the shared facility, as set forth in
70.11the joint powers agreement relating to the shared facility. This section does not limit the
70.12authority to issue bonds under any other special or general law.
70.13 Sec. 10. Minnesota Statutes 2010, section 475.58, subdivision 3b, is amended to read:
70.14 Subd. 3b.
Street reconstruction. (a) A municipality may, without regard to
70.15the election requirement under subdivision 1, issue and sell obligations for street
70.16reconstruction, if the following conditions are met:
70.17 (1) the streets are reconstructed under a street reconstruction plan that describes the
70.18street reconstruction to be financed, the estimated costs, and any planned reconstruction
70.19of other streets in the municipality over the next five years, and the plan and issuance of
70.20the obligations has been approved by a vote of all of the members of the governing body
70.21present at the meeting following a public hearing for which notice has been published in
70.22the official newspaper at least ten days but not more than 28 days prior to the hearing; and
70.23 (2) if a petition requesting a vote on the issuance is signed by voters equal to
70.24five percent of the votes cast in the last municipal general election and is filed with the
70.25municipal clerk within 30 days of the public hearing, the municipality may issue the bonds
70.26only after obtaining the approval of a majority of the voters voting on the question of the
70.27issuance of the obligations
new text begin . If the municipality elects not to submit the question to the new text end
70.28
new text begin voters, the municipality shall not propose the issuance of bonds under this section for the new text end
70.29
new text begin same purpose and in the same amount for a period of 365 days from the date of receipt new text end
70.30
new text begin of the petition. If the question of issuing the bonds is submitted and not approved by the new text end
70.31
new text begin voters, the provisions of subdivision 1a, applynew text end .
70.32 (b) Obligations issued under this subdivision are subject to the debt limit of the
70.33municipality and are not excluded from net debt under section
475.51, subdivision 4.
70.34 (c) For purposes of this subdivision, street reconstruction includes utility
70.35replacement and relocation and other activities incidental to the street reconstruction, turn
71.1lanes and other improvements having a substantial public safety function, realignments,
71.2other modifications to intersect with state and county roads, and the local share of state
71.3and county road projects.
71.4 (d) Except in the case of turn lanes, safety improvements, realignments, intersection
71.5modifications, and the local share of state and county road projects, street reconstruction
71.6does not include the portion of project cost allocable to widening a street or adding curbs
71.7and gutters where none previously existed.
71.8 Sec. 11. Laws 1971, chapter 773, section 1, subdivision 2, as amended by Laws 1974,
71.9chapter 351, section 5, Laws 1976, chapter 234, sections 1 and 7, Laws 1978, chapter 788,
71.10section 1, Laws 1981, chapter 369, section 1, Laws 1983, chapter 302, section 1, Laws
71.111988, chapter 513, section 1, Laws 1992, chapter 511, article 9, section 23, Laws 1998,
71.12chapter 389, article 3, section 27, and Laws 2002, chapter 390, section 23, is amended to
71.13read:
71.14 Subd. 2. For each of the years 2003 to 2013
new text begin 2012 to 2024new text end , the city of St. Paul is
71.15authorized to issue bonds in the aggregate principal amount of $20,000,000 for each year.
71.16
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
71.17 Sec. 12. Laws 2003, chapter 127, article 12, section 28, is amended to read:
71.18 Sec. 28.
NURSING HOME BONDS AUTHORIZED.
71.19
new text begin (a) new text end Itasca County may issue bonds under Minnesota Statutes, sections
376.55 and
71.20376.56
, to finance the construction of a 35-bed nursing home facility to replace an existing
71.2135-bed private facility located in the county. The bonds issued under this section must
new text begin new text end
71.22
new text begin maynew text end be payable solely from revenues and
new text begin ornew text end may not be general obligations of the county.
71.23
new text begin (b) Before issuing general obligation bonds under this section, the county must new text end
71.24
new text begin publish a notice of its intention to issue the bonds and the date and time of a hearing to new text end
71.25
new text begin obtain public comment on the matter. The notice must be published on the official Web new text end
71.26
new text begin site of the county or in a newspaper of general circulation in the county. The notice must new text end
71.27
new text begin be published at least 14 but not more than 28 days before the date of the hearing. The new text end
71.28
new text begin county may issue the bonds only upon obtaining the approval of a majority of the voters new text end
71.29
new text begin voting on the question of issuing the obligations, if a petition requesting a vote on the new text end
71.30
new text begin issuance is signed by voters equal to five percent of the votes cast in the county in the last new text end
71.31
new text begin general election and is filed with the county auditor within 30 days after the public hearing.new text end
72.1
new text begin EFFECTIVE DATE; LOCAL APPROVAL.new text end new text begin This section is effective the day after new text end
72.2
new text begin the governing body of Itasca County and its chief clerical officer timely complete their new text end
72.3
new text begin compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.new text end
72.4 Sec. 13.
new text begin CARRYFORWARD OF BONDING AUTHORITY FOR 2008, 2009, new text end
72.5
new text begin AND 2010; NO DEDUCTION FROM ENTITLEMENT ALLOCATION.new text end
72.6
new text begin Notwithstanding Minnesota Statutes, section 474A.04, subdivision 1a, and Laws new text end
72.7
new text begin 2009, chapter 88, article 6, section 27, bonding authority that was allocated to an new text end
72.8
new text begin entitlement issuer in 2008, 2009, and 2010 and that was carried forward under federal new text end
72.9
new text begin tax law, but for which the entitlement issuer did not provide a notice of issue to the new text end
72.10
new text begin commissioner of management and budget before 4:30 p.m. on the last business day of new text end
72.11
new text begin December 2011 must not be deducted from the entitlement allocation for that entitlement new text end
72.12
new text begin issuer in 2012.new text end
72.13
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment new text end
72.14
new text begin and applies retroactively to rescind any reallocation by the commissioner of management new text end
72.15
new text begin and budget under Minnesota Statutes, section 474A.04, subdivision 1a, of any amounts so new text end
72.16
new text begin deducted.new text end
72.17 Sec. 14.
new text begin WOODBURY; EXEMPTION FROM REFERENDUM.new text end
72.18
new text begin (a) Notwithstanding the referendum requirement in Minnesota Statutes, section new text end
72.19
new text begin 475.58, subdivision 1, or any other provision of law, the city of Woodbury may issue and new text end
72.20
new text begin sell obligations to pay for the cost of renovating, improving, expanding, and equipping the new text end
72.21
new text begin Bielenberg Sports Center, along with costs of issuance of the obligations and capitalized new text end
72.22
new text begin interest, if:new text end
72.23
new text begin (1) the obligations are secured by a pledge of revenues from the facility; andnew text end
72.24
new text begin (2) the city finds, based on analysis provided by a professional experienced in new text end
72.25
new text begin finance, that the facility's revenues and a property tax levy equal to the maximum annual new text end
72.26
new text begin property tax levy used to pay the bonds previously issued to finance, in whole or in part, new text end
72.27
new text begin the facility will in the aggregate be sufficient to pay the obligations without the imposition new text end
72.28
new text begin of an additional property tax levy pledged to the obligations.new text end
72.29
new text begin (b) Before issuing bonds under this section, the city must publish a notice of its new text end
72.30
new text begin intention to issue the bonds and the date and time of a hearing to obtain public comment new text end
72.31
new text begin on the matter. The notice must be published on the official Web site of the city or in a new text end
72.32
new text begin newspaper of general circulation in the city. The notice must be published at least 14 but new text end
72.33
new text begin not more than 28 days before the date of the hearing. The city may issue the bonds only new text end
72.34
new text begin upon obtaining the approval of a majority of the voters voting on the question of issuing new text end
73.1
new text begin the obligations, if a petition requesting a vote on the issuance is signed by voters equal to new text end
73.2
new text begin five percent of the votes cast in the city in the last general election and is filed with the city new text end
73.3
new text begin clerk within 30 days after the public hearing.new text end
73.4
new text begin EFFECTIVE DATE; LOCAL APPROVAL.new text end new text begin This section is effective the day after new text end
73.5
new text begin the governing body of the city of Woodbury and its chief clerical officer timely complete new text end
73.6
new text begin their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.new text end
73.7
ARTICLE 7
73.8
PROPERTY TAXES
73.9 Section 1. Minnesota Statutes 2010, section 6.91, subdivision 2, is amended to read:
73.10 Subd. 2.
Benefits of participation. (a) A county or city that elects to participate in
73.11the standard measures program for 2011 is: (1) eligible for per capita reimbursement of
73.12$0.14 per capita, but not to exceed $25,000 for any government entity; and (2) exempt
73.13from levy limits under sections
275.70 to
275.74 for taxes payable in 2012, if levy limits
73.14are in effect.
73.15(b) Any county or city that elects to participate in the standard measures program
73.16for 2012 is eligible for per capita reimbursement of $0.14 per capita, but not to exceed
73.17$25,000 for any government entity
new text begin , provided that for 2012, a county or city with a new text end
73.18
new text begin population over 5,000 must also participate in the expenditure-type reporting under section new text end
73.19
new text begin 471.703 in order to be eligiblenew text end . Any jurisdiction participating in the comprehensive
73.20performance measurement program is exempt from levy limits under sections
275.70 to
73.21275.74
for taxes payable in 2013 if levy limits are in effect.
73.22(c) Any county or city that elects to participate in the standard measures program for
73.232013 or any year thereafter is eligible for per capita reimbursement of $0.14 per capita,
73.24but not to exceed $25,000 for any government entity. Any jurisdiction participating in
73.25the comprehensive performance measurement program for 2013 or any year thereafter is
73.26exempt from levy limits under sections
275.70 to
275.74 for taxes payable in the following
73.27year, if levy limits are in effect.
73.28
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
73.29 Sec. 2. Minnesota Statutes 2011 Supplement, section 270C.991, subdivision 4, as
73.30amended by Laws 2012, chapter 187, article 1, section 45, is amended to read:
73.31 Subd. 4.
Property tax working group. (a) A property tax working group is
73.32established as provided in this subdivision. The goals of the working group are:
74.1(1) to investigate ways to simplify the property tax system and make advisory
74.2recommendations on ways to make the system more understandable;
74.3(2) to reexamine the property tax calendar to determine what changes could be made
74.4to shorten the two-year cycle from assessment through property tax collection; and
74.5(3) to determine the cost versus the benefits of the various property tax components,
74.6including property classifications, credits, aids, exclusions, exemptions, and abatements,
74.7and to suggest ways to achieve some of the goals in simpler and more cost-efficient ways.
74.8(b) The 12-member working group shall consist of the following members:
74.9(1) two state representatives, both appointed by the chair of the house of
74.10representatives Taxes Committee, one from the majority party and one from the largest
74.11minority party;
74.12(2) two senators appointed by the Subcommittee on Committees of the Senate Rules
74.13and Administration Committee, one from the majority party and one from the largest
74.14minority party;
74.15(3) one person appointed by the Association of Minnesota Counties;
74.16(4) one person appointed by the League of Minnesota Cities;
74.17(5) one person appointed by the Minnesota Association of Townships;
74.18(6) one person appointed by the Minnesota Chamber of Commerce;
74.19(7) one person appointed by the Minnesota Association of Assessing Officers;
74.20(8) two homeowners, one who is under 65 years of age, and one who is 65 years of
74.21age or older, both appointed by the commissioner of revenue; and
74.22(9) one person jointly appointed by the Minnesota Farm Bureau and the Minnesota
74.23Farmers Union.
74.24The commissioner of revenue shall chair the initial meeting, and the working
74.25group shall elect a chair at that initial meeting. The working group will meet at the call
74.26of the chair. Members of the working group shall serve without compensation. The
74.27commissioner of revenue must provide administrative support to the working group.
74.28Chapter 13D does not apply to meetings of the working group. Meetings of the working
74.29group must be open to the public and the working group must provide notice of a meeting
74.30to potentially interested persons at least seven days before the meeting. A meeting of the
74.31working group occurs when a quorum is present.
74.32(c) The working group shall make its advisory recommendations to the chairs of the
74.33house of representatives and senate Taxes Committees on or before February 1, 2013, at
74.34which time the working group shall be finished and this subdivision expires. The advisory
74.35recommendations should be reviewed by the Taxes Committees under subdivision 5.
75.1 Sec. 3. Minnesota Statutes 2010, section 273.113, is amended to read:
75.2
273.113 TAX CREDIT FOR PROPERTY IN PROPOSED BOVINE
75.3
TUBERCULOSIS MODIFIED ACCREDITEDnew text begin MANAGEMENTnew text end ZONE.
75.4 Subdivision 1.
Definitions. For the purposes of this section, the following terms
75.5have the meanings given to them:
75.6 (1) "bovine tuberculosis modified accredited
new text begin managementnew text end zone" means the modified
75.7accredited
new text begin managementnew text end zone designated by the Board of Animal Health under section
75.835.244
;
75.9 (2) "located within" means that the herd is kept in the area for at least a part of
75.10calendar year 2006, 2007, or 2008; and
75.11 (3) "animal" means cattle, bison, goats, and farmed cervidae.
75.12 Subd. 2.
Eligibility; amount of credit. Agricultural and rural vacant land classified
75.13under section
273.13, subdivision 23, located within a bovine tuberculosis modified
75.14accredited
new text begin managementnew text end zone is eligible for a property tax credit equal to the greater of: (1)
75.15$5 per acre on the first 160 acres of the property where the herd had been located; or (2) an
75.16amount equal to $5 per acre times five acres times the highest number of animals tested
75.17on the property for bovine tuberculosis in a whole-herd test as reported by the Board of
75.18Animal Health in 2006, 2007, or 2008
new text begin the amount of credit received under this section for new text end
75.19
new text begin taxes payable in 2011new text end . The amount of the credit cannot exceed the property tax payable on
75.20the property where the herd had been located, excluding any tax attributable to residential
75.21structures. To begin to qualify for the tax credit
new text begin for taxes payable in 2012new text end , the owner shall
75.22file an application with the county by December 1 of the levy year
new text begin July 1, 2012new text end .
new text begin For new text end
75.23
new text begin taxes payable in 2012, the credit shall be paid as a direct payment to the property owner, new text end
75.24
new text begin issued by the county within 30 days of receipt of the application, provided that there are new text end
75.25
new text begin no delinquent taxes on the property. new text end The credit must be given for each subsequent taxes
75.26payable year until the credit terminates under subdivision 4.
new text begin For taxes payable in 2013 new text end
75.27
new text begin and thereafter, new text end the assessor shall indicate the amount of the property tax reduction on the
75.28property tax statement of each taxpayer receiving a credit under this section.
new text begin For taxes new text end
75.29
new text begin payable in 2013 and thereafter, new text end the credit paid pursuant to this section shall be deducted
75.30from the tax due on the property as provided in section
273.1393.
75.31 Subd. 3.
Reimbursement for lost revenue. The county auditor shall certify to the
75.32commissioner of revenue, as part of the abstracts of tax lists required to be filed with the
75.33commissioner under section
275.29, the amount of tax lost to the county from the property
75.34tax credit under subdivision 2
new text begin , except that for taxes payable in 2012 only, the county shall new text end
75.35
new text begin submit the credit amounts to the commissioner of revenue in a separate report, in a form new text end
75.36
new text begin prescribed by the commissioner, prior to August 15, 2012new text end . Any prior year adjustments
76.1must also be certified in the abstracts of tax lists. The commissioner of revenue shall
76.2review the certifications to determine their accuracy. The commissioner may make the
76.3changes in the certification that are considered necessary or return a certification to the
76.4county auditor for corrections. The commissioner shall reimburse each taxing district,
76.5other than school districts, for the taxes lost. The payments must be made at the time
76.6provided in section
473H.10 for payment to taxing jurisdictions in the same proportion
76.7that the ad valorem tax is distributed
new text begin , except that for taxes payable in 2012 the entire new text end
76.8
new text begin reimbursement must be made to the countynew text end . Reimbursements to school districts must be
76.9made as provided in section
273.1392. The amount necessary to make the reimbursements
76.10under this section is annually appropriated from the general fund to the commissioner of
76.11revenue.
76.12 Subd. 4.
Termination of credit. The credits provided under this section cease to
76.13be available beginning with taxes payable in the year following the date when the Board
76.14of Animal Health
new text begin notifies the commissioner of revenue in writing that the board new text end has
76.15certified that the state is free of
new text begin discontinued all required new text end bovine tuberculosis
new text begin related new text end
76.16
new text begin activities within the bovine tuberculosis management zonenew text end .
76.17
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxes payable in 2012 and new text end
76.18
new text begin thereafter.new text end
76.19 Sec. 4. Minnesota Statutes 2010, section 275.025, subdivision 1, is amended to read:
76.20 Subdivision 1.
Levy amount. The state general levy is levied against
76.21commercial-industrial property and seasonal residential recreational property, as defined in
76.22this section. The state general levy base amount is $592,000,000
new text begin $817,423,000new text end for taxes
76.23payable in 2002
new text begin 2013new text end . For taxes payable in subsequent years, the levy base amount is
76.24increased each year by multiplying the levy base amount for the prior year by the sum
76.25of one plus the rate of increase, if any, in the implicit price deflator for government
76.26consumption expenditures and gross investment for state and local governments prepared
76.27by the Bureau of Economic Analysts of the United States Department of Commerce for
76.28the 12-month period ending March 31 of the year prior to the year the taxes are payable.
76.29The tax under this section is not treated as a local tax rate under section
469.177 and is not
76.30the levy of a governmental unit under chapters 276A and 473F.
76.31The commissioner shall increase or decrease the preliminary or final rate
new text begin ratesnew text end for a
76.32year as necessary to account for errors and tax base changes that affected a preliminary or
76.33final rate for either of the two preceding years. Adjustments are allowed to the extent that
76.34the necessary information is available to the commissioner at the time the rates for a year
76.35must be certified, and for the following reasons:
77.1(1) an erroneous report of taxable value by a local official;
77.2(2) an erroneous calculation by the commissioner; and
77.3(3) an increase or decrease in taxable value for commercial-industrial or seasonal
77.4residential recreational property reported on the abstracts of tax lists submitted under
77.5section
275.29 that was not reported on the abstracts of assessment submitted under
77.6section
270C.89 for the same year.
77.7The commissioner may, but need not, make adjustments if the total difference in the tax
77.8levied for the year would be less than $100,000.
77.9
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxes payable in 2013 and new text end
77.10
new text begin thereafter.new text end
77.11 Sec. 5. Minnesota Statutes 2010, section 275.065, subdivision 1, is amended to read:
77.12 Subdivision 1.
Proposed levy. (a) Notwithstanding any law or charter to the
77.13contrary, on or before September 15, each taxing authority, other than a school district,
77.14shall adopt a proposed budget and shall certify to the county auditor the proposed or, in
77.15the case of a town, the final property tax levy for taxes payable in the following year.
new text begin All new text end
77.16
new text begin counties with a population of more than 5,000 and home rule charter or statutory cities new text end
77.17
new text begin with a population of more than 5,000, shall also provide to the county auditor the county new text end
77.18
new text begin or city Web site, if there is one, where the public is able to access the budget information new text end
77.19
new text begin required to be reported under section 471.703.new text end
77.20 (b) On or before September 30, each school district that has not mutually agreed
77.21with its home county to extend this date shall certify to the county auditor the proposed
77.22property tax levy for taxes payable in the following year. Each school district that has
77.23agreed with its home county to delay the certification of its proposed property tax levy
77.24must certify its proposed property tax levy for the following year no later than October
77.257. The school district shall certify the proposed levy as:
77.26 (1) a specific dollar amount by school district fund, broken down between
77.27voter-approved and non-voter-approved levies and between referendum market value
77.28and tax capacity levies; or
77.29 (2) the maximum levy limitation certified by the commissioner of education
77.30according to section
126C.48, subdivision 1.
77.31 (c) If the board of estimate and taxation or any similar board that establishes
77.32maximum tax levies for taxing jurisdictions within a first class city certifies the maximum
77.33property tax levies for funds under its jurisdiction by charter to the county auditor by
77.34September 15, the city shall be deemed to have certified its levies for those taxing
77.35jurisdictions.
78.1 (d) For purposes of this section, "taxing authority" includes all home rule and
78.2statutory cities, towns, counties, school districts, and special taxing districts as defined
78.3in section
275.066. Intermediate school districts that levy a tax under chapter 124 or
78.4136D, joint powers boards established under sections
123A.44 to
123A.446, and Common
78.5School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special taxing
78.6districts for purposes of this section.
78.7(e) At the meeting at which the taxing authority, other than a town, adopts its
78.8proposed tax levy under paragraph (a) or (b), the taxing authority shall announce the
78.9time and place of its subsequent regularly scheduled meetings at which the budget and
78.10levy will be discussed and at which the public will be allowed to speak. The time and
78.11place of those meetings
new text begin The following information new text end must be included in the proceedings
78.12or summary of proceedings published in the official newspaper of the taxing authority
78.13under section
123B.09,
375.12, or
412.191new text begin :new text end
78.14
new text begin (1) the time and place of the meetings described in this paragraph; andnew text end
78.15
new text begin (2) a statement that the budget information required to be reported under section new text end
78.16
new text begin 471.703 is available on the county or city Web site, if there is onenew text end .
78.17
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2012.new text end
78.18 Sec. 6. Minnesota Statutes 2010, section 275.065, subdivision 3, is amended to read:
78.19 Subd. 3.
Notice of proposed property taxes. (a) The county auditor shall prepare
78.20and the county treasurer shall deliver after November 10 and on or before November 24
78.21each year, by first class mail to each taxpayer at the address listed on the county's current
78.22year's assessment roll, a notice of proposed property taxes. Upon written request by
78.23the taxpayer, the treasurer may send the notice in electronic form or by electronic mail
78.24instead of on paper or by ordinary mail.
78.25 (b) The commissioner of revenue shall prescribe the form of the notice.
78.26 (c) The notice must inform taxpayers that it contains the amount of property taxes
78.27each taxing authority proposes to collect for taxes payable the following year. In the
78.28case of a town, or in the case of the state general tax, the final tax amount will be its
78.29proposed tax. The notice must clearly state for each city that has a population over 500,
78.30county, school district, regional library authority established under section
134.201, and
78.31metropolitan taxing districts as defined in paragraph (i), the time and place of a meeting
78.32for each taxing authority in which the budget and levy will be discussed and public input
78.33allowed, prior to the final budget and levy determination.
new text begin The notice must clearly state new text end
78.34
new text begin for each county with a population of more than 5,000 and for each city with a population new text end
78.35
new text begin of more than 5,000 that the budget information required to be reported under section new text end
79.1
new text begin 471.703 is available on the county or city Web site, if there is one. new text end The taxing authorities
79.2must provide the county auditor with the information to be included in the notice on or
79.3before the time it certifies its proposed levy under subdivision 1. The public must be
79.4allowed to speak at that meeting, which must occur after November 24 and must not be
79.5held before 6:00 p.m. It must provide a telephone number for the taxing authority that
79.6taxpayers may call if they have questions related to the notice and an address where
79.7comments will be received by mail, except that no notice required under this section
79.8shall be interpreted as requiring the printing of a personal telephone number or address
79.9as the contact information for a taxing authority. If a taxing authority does not maintain
79.10public offices where telephone calls can be received by the authority, the authority may
79.11inform the county of the lack of a public telephone number and the county shall not list a
79.12telephone number for that taxing authority.
79.13 (d) The notice must state for each parcel:
79.14 (1) the market value of the property as determined under section
273.11, and used
79.15for computing property taxes payable in the following year and for taxes payable in the
79.16current year as each appears in the records of the county assessor on November 1 of the
79.17current year; and, in the case of residential property, whether the property is classified as
79.18homestead or nonhomestead. The notice must clearly inform taxpayers of the years to
79.19which the market values apply and that the values are final values;
79.20 (2) the items listed below, shown separately by county, city or town, and state general
79.21tax, net of the residential and agricultural homestead credit under section
273.1384, voter
79.22approved school levy, other local school levy, and the sum of the special taxing districts,
79.23and as a total of all taxing authorities:
79.24 (i) the actual tax for taxes payable in the current year; and
79.25 (ii) the proposed tax amount.
79.26 If the county levy under clause (2) includes an amount for a lake improvement
79.27district as defined under sections
103B.501 to
103B.581, the amount attributable for that
79.28purpose must be separately stated from the remaining county levy amount.
79.29 In the case of a town or the state general tax, the final tax shall also be its proposed
79.30tax unless the town changes its levy at a special town meeting under section
365.52. If a
79.31school district has certified under section
126C.17, subdivision 9, that a referendum will
79.32be held in the school district at the November general election, the county auditor must
79.33note next to the school district's proposed amount that a referendum is pending and that, if
79.34approved by the voters, the tax amount may be higher than shown on the notice. In the
79.35case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be
79.36listed separately from the remaining amount of the city's levy. In the case of the city of
80.1St. Paul, the levy for the St. Paul Library Agency must be listed separately from the
80.2remaining amount of the city's levy. In the case of Ramsey County, any amount levied
80.3under section
134.07 may be listed separately from the remaining amount of the county's
80.4levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax
80.5under chapter 276A or 473F applies, the proposed tax levy on the captured value or the
80.6proposed tax levy on the tax capacity subject to the areawide tax must each be stated
80.7separately and not included in the sum of the special taxing districts; and
80.8 (3) the increase or decrease between the total taxes payable in the current year and
80.9the total proposed taxes, expressed as a percentage.
80.10 For purposes of this section, the amount of the tax on homesteads qualifying under
80.11the senior citizens' property tax deferral program under chapter 290B is the total amount
80.12of property tax before subtraction of the deferred property tax amount.
80.13 (e) The notice must clearly state that the proposed or final taxes do not include
80.14the following:
80.15 (1) special assessments;
80.16 (2) levies approved by the voters after the date the proposed taxes are certified,
80.17including bond referenda and school district levy referenda;
80.18 (3) a levy limit increase approved by the voters by the first Tuesday after the first
80.19Monday in November of the levy year as provided under section
275.73;
80.20 (4) amounts necessary to pay cleanup or other costs due to a natural disaster
80.21occurring after the date the proposed taxes are certified;
80.22 (5) amounts necessary to pay tort judgments against the taxing authority that become
80.23final after the date the proposed taxes are certified; and
80.24 (6) the contamination tax imposed on properties which received market value
80.25reductions for contamination.
80.26 (f) Except as provided in subdivision 7, failure of the county auditor to prepare or
80.27the county treasurer to deliver the notice as required in this section does not invalidate the
80.28proposed or final tax levy or the taxes payable pursuant to the tax levy.
80.29 (g) If the notice the taxpayer receives under this section lists the property as
80.30nonhomestead, and satisfactory documentation is provided to the county assessor by the
80.31applicable deadline, and the property qualifies for the homestead classification in that
80.32assessment year, the assessor shall reclassify the property to homestead for taxes payable
80.33in the following year.
80.34 (h) In the case of class 4 residential property used as a residence for lease or rental
80.35periods of 30 days or more, the taxpayer must either:
81.1 (1) mail or deliver a copy of the notice of proposed property taxes to each tenant,
81.2renter, or lessee; or
81.3 (2) post a copy of the notice in a conspicuous place on the premises of the property.
81.4 The notice must be mailed or posted by the taxpayer by November 27 or within
81.5three days of receipt of the notice, whichever is later. A taxpayer may notify the county
81.6treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to
81.7which the notice must be mailed in order to fulfill the requirements of this paragraph.
81.8 (i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing
81.9districts" means the following taxing districts in the seven-county metropolitan area that
81.10levy a property tax for any of the specified purposes listed below:
81.11 (1) Metropolitan Council under section
473.132,
473.167,
473.249,
473.325,
81.12473.446
,
473.521,
473.547, or
473.834;
81.13 (2) Metropolitan Airports Commission under section
473.667,
473.671, or
473.672;
81.14and
81.15 (3) Metropolitan Mosquito Control Commission under section
473.711.
81.16 For purposes of this section, any levies made by the regional rail authorities in the
81.17county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
81.18398A shall be included with the appropriate county's levy.
81.19 (j) The governing body of a county, city, or school district may, with the consent
81.20of the county board, include supplemental information with the statement of proposed
81.21property taxes about the impact of state aid increases or decreases on property tax
81.22increases or decreases and on the level of services provided in the affected jurisdiction.
81.23This supplemental information may include information for the following year, the current
81.24year, and for as many consecutive preceding years as deemed appropriate by the governing
81.25body of the county, city, or school district. It may include only information regarding:
81.26 (1) the impact of inflation as measured by the implicit price deflator for state and
81.27local government purchases;
81.28 (2) population growth and decline;
81.29 (3) state or federal government action; and
81.30 (4) other financial factors that affect the level of property taxation and local services
81.31that the governing body of the county, city, or school district may deem appropriate to
81.32include.
81.33 The information may be presented using tables, written narrative, and graphic
81.34representations and may contain instruction toward further sources of information or
81.35opportunity for comment.
81.36
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2012.new text end
82.1 Sec. 7. Minnesota Statutes 2010, section 275.065, subdivision 3, is amended to read:
82.2 Subd. 3.
Notice of proposed property taxes. (a) The county auditor shall prepare
82.3and the county treasurer shall deliver after November 10 and on or before November 24
82.4each year, by first class mail to each taxpayer at the address listed on the county's current
82.5year's assessment roll, a notice of proposed property taxes. Upon written request by
82.6the taxpayer, the treasurer may send the notice in electronic form or by electronic mail
82.7instead of on paper or by ordinary mail.
82.8 (b) The commissioner of revenue shall prescribe the form of the notice.
82.9 (c) The notice must inform taxpayers that it contains the amount of property taxes
82.10each taxing authority proposes to collect for taxes payable the following year. In the
82.11case of a town, or in the case of the state general tax, the final tax amount will be its
82.12proposed tax. The notice must clearly state For each city that has a population over 500,
82.13county, school district, regional library authority established under section
134.201, and
82.14metropolitan taxing districts as defined in paragraph (i),
new text begin the notice must state new text end the time and
82.15place of a meeting for each taxing authority in which the budget and levy will be discussed
82.16and public input allowed, prior to the final budget and levy determination.
new text begin For each special new text end
82.17
new text begin taxing district, the notice must: (1) list separately any levy by a special taxing district that new text end
82.18
new text begin exceeds 25 percent of the total of all special taxing district levies; and (2) provide county new text end
82.19
new text begin government contact information where additional information may be obtained for each new text end
82.20
new text begin special taxing district. new text end The taxing authorities must provide the county auditor with the
82.21information to be included in the notice on or before the time it certifies its proposed
82.22levy under subdivision 1. The public must be allowed to speak at that meeting, which
82.23must occur after November 24 and must not be held before 6:00 p.m. It must provide a
82.24telephone number for the taxing authority that taxpayers may call if they have questions
82.25related to the notice and an address where comments will be received by mail, except that
82.26no notice required under this section shall be interpreted as requiring the printing of a
82.27personal telephone number or address as the contact information for a taxing authority. If
82.28a taxing authority does not maintain public offices where telephone calls can be received
82.29by the authority, the authority may inform the county of the lack of a public telephone
82.30number and the county shall not list a telephone number for that taxing authority.
82.31 (d) The notice must state for each parcel:
82.32 (1) the market value of the property as determined under section
273.11, and used
82.33for computing property taxes payable in the following year and for taxes payable in the
82.34current year as each appears in the records of the county assessor on November 1 of the
82.35current year; and, in the case of residential property, whether the property is classified as
83.1homestead or nonhomestead. The notice must clearly inform taxpayers of the years to
83.2which the market values apply and that the values are final values;
83.3 (2) the items listed below, shown separately by county, city or town, and state
83.4general tax, net of the residential and agricultural homestead credit under section
83.5273.1384
, voter approved school levy, other local school levy, and the sum of the
new text begin eachnew text end
83.6special taxing districts
new text begin districtnew text end ,
new text begin provided that the levies of all special taxing districts whose new text end
83.7
new text begin levies do not exceed 25 percent of the total amount of all special taxing district levies may new text end
83.8
new text begin be aggregated, new text end and as a total of
new text begin fornew text end all taxing authorities:
83.9 (i) the actual tax for taxes payable in the current year; and
83.10 (ii) the proposed tax amount.
83.11 If the county levy under clause (2) includes an amount for a lake improvement
83.12district as defined under sections
103B.501 to
103B.581, the amount attributable for that
83.13purpose must be separately stated from the remaining county levy amount.
83.14 In the case of a town or the state general tax, the final tax shall also be its proposed
83.15tax unless the town changes its levy at a special town meeting under section
365.52. If a
83.16school district has certified under section
126C.17, subdivision 9, that a referendum will
83.17be held in the school district at the November general election, the county auditor must
83.18note next to the school district's proposed amount that a referendum is pending and that, if
83.19approved by the voters, the tax amount may be higher than shown on the notice. In the
83.20case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be
83.21listed separately from the remaining amount of the city's levy. In the case of the city of
83.22St. Paul, the levy for the St. Paul Library Agency must be listed separately from the
83.23remaining amount of the city's levy. In the case of Ramsey County, any amount levied
83.24under section
134.07 may be listed separately from the remaining amount of the county's
83.25levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax
83.26under chapter 276A or 473F applies, the proposed tax levy on the captured value or the
83.27proposed tax levy on the tax capacity subject to the areawide tax must each be stated
83.28separately and not included in the sum of the special taxing districts; and
83.29 (3) the increase or decrease between the total taxes payable in the current year and
83.30the total proposed taxes, expressed as a percentage.
83.31 For purposes of this section, the amount of the tax on homesteads qualifying under
83.32the senior citizens' property tax deferral program under chapter 290B is the total amount
83.33of property tax before subtraction of the deferred property tax amount.
83.34 (e) The notice must clearly state that the proposed or final taxes do not include
83.35the following:
83.36 (1) special assessments;
84.1 (2) levies approved by the voters after the date the proposed taxes are certified,
84.2including bond referenda and school district levy referenda;
84.3 (3) a levy limit increase approved by the voters by the first Tuesday after the first
84.4Monday in November of the levy year as provided under section
275.73;
84.5 (4) amounts necessary to pay cleanup or other costs due to a natural disaster
84.6occurring after the date the proposed taxes are certified;
84.7 (5) amounts necessary to pay tort judgments against the taxing authority that become
84.8final after the date the proposed taxes are certified; and
84.9 (6) the contamination tax imposed on properties which received market value
84.10reductions for contamination.
84.11 (f) Except as provided in subdivision 7, failure of the county auditor to prepare or
84.12the county treasurer to deliver the notice as required in this section does not invalidate the
84.13proposed or final tax levy or the taxes payable pursuant to the tax levy.
84.14 (g) If the notice the taxpayer receives under this section lists the property as
84.15nonhomestead, and satisfactory documentation is provided to the county assessor by the
84.16applicable deadline, and the property qualifies for the homestead classification in that
84.17assessment year, the assessor shall reclassify the property to homestead for taxes payable
84.18in the following year.
84.19 (h) In the case of class 4 residential property used as a residence for lease or rental
84.20periods of 30 days or more, the taxpayer must either:
84.21 (1) mail or deliver a copy of the notice of proposed property taxes to each tenant,
84.22renter, or lessee; or
84.23 (2) post a copy of the notice in a conspicuous place on the premises of the property.
84.24 The notice must be mailed or posted by the taxpayer by November 27 or within
84.25three days of receipt of the notice, whichever is later. A taxpayer may notify the county
84.26treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to
84.27which the notice must be mailed in order to fulfill the requirements of this paragraph.
84.28 (i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing
84.29districts" means the following taxing districts in the seven-county metropolitan area that
84.30levy a property tax for any of the specified purposes listed below:
84.31 (1) Metropolitan Council under section
473.132,
473.167,
473.249,
473.325,
84.32473.446
,
473.521,
473.547, or
473.834;
84.33 (2) Metropolitan Airports Commission under section
473.667,
473.671, or
473.672;
84.34and
84.35 (3) Metropolitan Mosquito Control Commission under section
473.711.
85.1 For purposes of this section, any levies made by the regional rail authorities in the
85.2county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
85.3398A shall be included with the appropriate county's levy.
85.4 (j) The governing body of a county, city, or school district may, with the consent
85.5of the county board, include supplemental information with the statement of proposed
85.6property taxes about the impact of state aid increases or decreases on property tax
85.7increases or decreases and on the level of services provided in the affected jurisdiction.
85.8This supplemental information may include information for the following year, the current
85.9year, and for as many consecutive preceding years as deemed appropriate by the governing
85.10body of the county, city, or school district. It may include only information regarding:
85.11 (1) the impact of inflation as measured by the implicit price deflator for state and
85.12local government purchases;
85.13 (2) population growth and decline;
85.14 (3) state or federal government action; and
85.15 (4) other financial factors that affect the level of property taxation and local services
85.16that the governing body of the county, city, or school district may deem appropriate to
85.17include.
85.18 The information may be presented using tables, written narrative, and graphic
85.19representations and may contain instruction toward further sources of information or
85.20opportunity for comment.
85.21
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for tax statements relating to taxes new text end
85.22
new text begin payable in 2014 and thereafter.new text end
85.23 Sec. 8. Minnesota Statutes 2011 Supplement, section 276.04, subdivision 2, is
85.24amended to read:
85.25 Subd. 2.
Contents of tax statements. (a) The treasurer shall provide for the
85.26printing of the tax statements. The commissioner of revenue shall prescribe the form of
85.27the property tax statement and its contents. The tax statement must not state or imply
85.28that property tax credits are paid by the state of Minnesota. The statement must contain
85.29a tabulated statement of the dollar amount due to each taxing authority and the amount
85.30of the state tax from the parcel of real property for which a particular tax statement is
85.31prepared. The dollar amounts attributable to the county, the state tax, the voter approved
85.32school tax, the other local school tax, the township or municipality, and the total of
85.33the metropolitan special taxing districts as defined in section
275.065, subdivision 3,
85.34paragraph (i), must be separately stated. The amounts due all other special taxing districts,
85.35if any, may be aggregated except that
new text begin (1)new text end any levies made by the regional rail authorities
86.1in the county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under
86.2chapter 398A shall be listed on a separate line directly under the appropriate county's
86.3levy
new text begin , and (2) any levy by a special taxing district that exceeds 25 percent of the total of all new text end
86.4
new text begin special taxing district levies on a tax statement must be separately statednew text end . If the county
86.5levy under this paragraph includes an amount for a lake improvement district as defined
86.6under sections
103B.501 to
103B.581, the amount attributable for that purpose must be
86.7separately stated from the remaining county levy amount. In the case of Ramsey County,
86.8if the county levy under this paragraph includes an amount for public library service
86.9under section
134.07, the amount attributable for that purpose may be separated from the
86.10remaining county levy amount. The amount of the tax on homesteads qualifying under the
86.11senior citizens' property tax deferral program under chapter 290B is the total amount of
86.12property tax before subtraction of the deferred property tax amount. The amount of the
86.13tax on contamination value imposed under sections
270.91 to
270.98, if any, must also
86.14be separately stated. The dollar amounts, including the dollar amount of any special
86.15assessments, may be rounded to the nearest even whole dollar. For purposes of this section
86.16whole odd-numbered dollars may be adjusted to the next higher even-numbered dollar.
86.17The amount of market value excluded under section
273.11, subdivision 16, if any, must
86.18also be listed on the tax statement.
86.19 (b) The property tax statements for manufactured homes and sectional structures
86.20taxed as personal property shall contain the same information that is required on the
86.21tax statements for real property.
86.22 (c) Real and personal property tax statements must contain the following information
86.23in the order given in this paragraph. The information must contain the current year tax
86.24information in the right column with the corresponding information for the previous year
86.25in a column on the left:
86.26 (1) the property's estimated market value under section
273.11, subdivision 1;
86.27(2) the property's homestead market value exclusion under section
273.13,
86.28subdivision 35;
86.29 (3) the property's taxable market value after reductions under sections
273.11,
86.30subdivisions 1a and 16, and
273.13, subdivision 35;
86.31 (4) the property's gross tax, before credits;
86.32 (5) for homestead agricultural properties, the credit under section
273.1384;
86.33 (6) any credits received under sections
273.119;
273.1234 or
273.1235;
273.135;
86.34273.1391
;
273.1398, subdivision 4;
469.171; and
473H.10, except that the amount of
86.35credit received under section
273.135 must be separately stated and identified as "taconite
86.36tax relief"; and
87.1 (7) the net tax payable in the manner required in paragraph (a).
87.2 (d) If the county uses envelopes for mailing property tax statements and if the county
87.3agrees, a taxing district may include a notice with the property tax statement notifying
87.4taxpayers when the taxing district will begin its budget deliberations for the current
87.5year, and encouraging taxpayers to attend the hearings. If the county allows notices to
87.6be included in the envelope containing the property tax statement, and if more than
87.7one taxing district relative to a given property decides to include a notice with the tax
87.8statement, the county treasurer or auditor must coordinate the process and may combine
87.9the information on a single announcement.
87.10
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for tax statements relating to taxes new text end
87.11
new text begin payable in 2014 and thereafter.new text end
87.12 Sec. 9. Minnesota Statutes 2010, section 290A.04, subdivision 2h, is amended to read:
87.13 Subd. 2h.
Additional refund. (a) If the gross property taxes payable on a homestead
87.14increase more than 12 percent over the property taxes payable in the prior year on the same
87.15property that is owned and occupied by the same owner on January 2 of both years, and the
87.16amount of that increase is $100 or more, a claimant who is a homeowner shall be allowed
87.17an additional refund equal to 60
new text begin 75new text end percent of the amount of the increase over the greater
87.18of 12 percent of the prior year's property taxes payable or $100. This subdivision shall not
87.19apply to any increase in the gross property taxes payable attributable to improvements
87.20made to the homestead after the assessment date for the prior year's taxes. This subdivision
87.21shall not apply to any increase in the gross property taxes payable attributable to the
87.22termination of valuation exclusions under section
273.11, subdivision 16.
87.23The maximum refund allowed under this subdivision is $1,000.
87.24(b) For purposes of this subdivision "gross property taxes payable" means property
87.25taxes payable determined without regard to the refund allowed under this subdivision.
87.26(c) In addition to the other proofs required by this chapter, each claimant under
87.27this subdivision shall file with the property tax refund return a copy of the property tax
87.28statement for taxes payable in the preceding year or other documents required by the
87.29commissioner.
87.30(d) Upon request, the appropriate county official shall make available the names and
87.31addresses of the property taxpayers who may be eligible for the additional property tax
87.32refund under this section. The information shall be provided on a magnetic computer
87.33disk. The county may recover its costs by charging the person requesting the information
87.34the reasonable cost for preparing the data. The information may not be used for any
88.1purpose other than for notifying the homeowner of potential eligibility and assisting the
88.2homeowner, without charge, in preparing a refund claim.
88.3
new text begin EFFECTIVE DATE.new text end new text begin This section is effective beginning with refunds based on new text end
88.4
new text begin taxes payable in 2013.new text end
88.5 Sec. 10.
new text begin [471.703] EXPENDITURE TYPE REPORTING.new text end
88.6
new text begin Subdivision 1.new text end new text begin Purpose.new text end new text begin In order to facilitate involvement of the public in local new text end
88.7
new text begin government budgeting, municipalities shall provide the following budgetary information new text end
88.8
new text begin on a municipal Web site, except as provided in subdivision 4, and publicize the availability new text end
88.9
new text begin of this information as part of the property tax and budget notices required in section new text end
88.10
new text begin 275.065.new text end
88.11
new text begin Subd. 2.new text end new text begin Definitions.new text end new text begin (a) For purposes of this section, the following terms have the new text end
88.12
new text begin meanings given in this subdivision.new text end
88.13
new text begin (b) "Municipality" means a county with a population of more than 5,000 or a home new text end
88.14
new text begin rule charter or statutory city with a population of more than 5,000.new text end
88.15
new text begin (c) "Population" means the population of the municipality as established by the last new text end
88.16
new text begin federal census, by a special census conducted under contract with the United States Bureau new text end
88.17
new text begin of the Census, by a population estimate made by the Metropolitan Council pursuant to new text end
88.18
new text begin section new text end
new text begin , or by a population estimate of the state demographer made pursuant to new text end
88.19
new text begin section new text end
new text begin , whichever is the most recent as to the stated date of the count or estimate for new text end
88.20
new text begin the preceding calendar year, and which has been certified to the commissioner of revenue new text end
88.21
new text begin on or before July 15 of the year in which the information is required to be reported.new text end
88.22
new text begin Subd. 3.new text end new text begin Electronic budgetary information.new text end new text begin (a) By July 31 of each year, a new text end
88.23
new text begin municipality shall publish on its Web site, except as provided in subdivision 4, four years new text end
88.24
new text begin of budget information on both revenues and expenditures organized by function and by new text end
88.25
new text begin expenditure type. The four years shall include actual data from the three most recently new text end
88.26
new text begin concluded budget years and estimated data for the current budget year.new text end
88.27
new text begin (b) The governmental funds included in the budget information required under new text end
88.28
new text begin this section shall include the municipality's general fund, debt service fund, and special new text end
88.29
new text begin revenue funds, except for special revenue funds specifically used for the acquisition and new text end
88.30
new text begin construction of major capital facilities. The reported information shall also exclude new text end
88.31
new text begin enterprise funds and fiduciary funds.new text end
88.32
new text begin (c) The forms and reporting requirements for revenues and expenditures by function new text end
88.33
new text begin shall be established by the state auditor's office and shall be based on the revenue and new text end
88.34
new text begin expenditure breakdowns used by that office in the five-year summary tables for annual new text end
89.1
new text begin revenue, expenditure, and debt reports for counties and cities with a population over new text end
89.2
new text begin 2,500, under section 6.75.new text end
89.3
new text begin (d) The forms and reporting requirements for expenditures by expenditure type shall new text end
89.4
new text begin be established by the state auditor's office and at minimum shall include the following line new text end
89.5
new text begin items: employee costs, purchased services, supplies, central services, capital items, debt new text end
89.6
new text begin service, transfer to other funds, and miscellaneous; with employee costs further subdivided new text end
89.7
new text begin into the following items: wages and salaries, pensions, Social Security, health care, and new text end
89.8
new text begin other benefits. The state auditor shall consult with the commissioner of management and new text end
89.9
new text begin budget, city and county representatives, and members of the governmental accounting new text end
89.10
new text begin community in developing the definition of expenditure types for reporting purposes.new text end
89.11
new text begin Subd. 4.new text end new text begin Alternative publication of budgetary information.new text end new text begin A municipality new text end
89.12
new text begin that does not maintain an official Web site must either (1) set up a separate Web site to new text end
89.13
new text begin make accessible the budgetary information as required in subdivision 3, or (2) publish the new text end
89.14
new text begin same information required in subdivision 3 by August 31 of each year in one issue of the new text end
89.15
new text begin official newspaper of the municipality. If a county publishes the information in its official new text end
89.16
new text begin newspaper it must also publish the same information in one other newspaper, if one of new text end
89.17
new text begin general circulation is located in a different city in the county than the official newspaper. new text end
89.18
new text begin The state auditor must prescribe the form for the newspaper notice.new text end
89.19
new text begin Subd. 5.new text end new text begin Incentives.new text end new text begin In 2012 only, a city or county that complies with the new text end
89.20
new text begin requirement of this section and section 6.91, subdivision 1, shall receive the benefits new text end
89.21
new text begin pursuant to section 6.91, subdivision 2.new text end
89.22
new text begin Subd. 6.new text end new text begin Penalties.new text end new text begin In 2013 and thereafter, failure of a municipality to provide new text end
89.23
new text begin the information required in this section shall result in the withholding of aids payable new text end
89.24
new text begin the following calendar year under sections 162.01 to 162.14, 423A.02, and 477A.011 new text end
89.25
new text begin to 477A.014.new text end
89.26
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2012.new text end
89.27 Sec. 11. Minnesota Statutes 2010, section 477A.017, subdivision 3, is amended to read:
89.28 Subd. 3.
Conformity. Other law to the contrary notwithstanding, in order to receive
89.29distributions under sections
477A.011 to
477A.03, counties and cities must conform to
89.30the standards set in subdivision 2 in making all financial reports required to be made to
89.31the state auditor after June 30, 1984
new text begin by the deadline set by the state auditor. Counties and new text end
89.32
new text begin cities that fail to submit the required information to the state auditor within 45 days of new text end
89.33
new text begin the reporting deadline shall forfeit an amount equal to ten percent of the distributions new text end
89.34
new text begin under sections 477A.011 to 477A.03. Counties and cities that fail to submit the required new text end
89.35
new text begin information within 60 days of the reporting deadline shall forfeit an amount equal to 30 new text end
90.1
new text begin percent of the distributions. Counties and cities that fail to submit the required information new text end
90.2
new text begin within 90 days of the reporting deadline shall forfeit an amount equal to 50 percent of the new text end
90.3
new text begin distributionsnew text end .
90.4
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for financial reports for calendar new text end
90.5
new text begin year 2012 and thereafter.new text end
90.6 Sec. 12. Laws 1988, chapter 645, section 3, as amended by Laws 1999, chapter 243,
90.7article 6, section 9, Laws 2000, chapter 490, article 6, section 15, and Laws 2008, chapter
90.8154, article 2, section 30, is amended to read:
90.9 Sec. 3.
TAX; PAYMENT OF EXPENSES.
90.10 (a) The tax levied by the hospital district under Minnesota Statutes, section
447.34,
90.11must not be levied at a rate that exceeds the amount authorized to be levied under that
90.12section. The proceeds of the tax may be used for all purposes of the hospital district,
90.13except as provided in paragraph (b).
90.14 (b) 0.015 percent of taxable market value of the tax in paragraph (a) may be used
90.15solely
new text begin by the Cook ambulance service and the Orr ambulance servicenew text end for the purpose of
90.16capital expenditures as it relates to
new text begin :new text end
90.17
new text begin (1)new text end ambulance acquisitions for the Cook ambulance service and the Orr ambulance
90.18service and not
new text begin ;new text end
90.19
new text begin (2) attached and portable equipment for use in and for the ambulances; andnew text end
90.20
new text begin (3) parts and replacement parts for maintenance and repair of the ambulances.new text end
90.21
new text begin The money may not be usednew text end for administrative
new text begin , operation, new text end or salary expenses.
90.22
new text begin (c) new text end The part of the levy referred to in paragraph (b) must be administered by the Cook
90.23Hospital and passed on directly to the Cook area ambulance service board and the city of
90.24Orr to be held in trust until funding for a new ambulance is needed by either the Cook
90.25ambulance service or the Orr ambulance service
new text begin used for the purposes in paragraph (b)new text end .
90.26 Sec. 13. Laws 1999, chapter 243, article 6, section 11, is amended to read:
90.27 Sec. 11.
CEMETERY LEVY FOR SAWYER BY CARLTON COUNTY.
90.28 Subdivision 1.
Levy authorized. Notwithstanding other law to the contrary, the
90.29Carlton county board of commissioners may
new text begin annuallynew text end levy in and for the unorganized
90.30township of Sawyer an amount up to $1,000 annually for cemetery purposes, beginning
90.31with taxes payable in 2000 and ending with taxes payable in 2009.
90.32 Subd. 2.
Effective date. This section is effective June 1, 1999, without local
90.33approval.
91.1
new text begin EFFECTIVE DATE; LOCAL APPROVAL.new text end new text begin This section applies to taxes new text end
91.2
new text begin payable in 2013 and thereafter, and is effective the day after the Carlton county board new text end
91.3
new text begin of commissioners and its chief clerical officer timely complete their compliance with new text end
91.4
new text begin Minnesota Statutes, section 645.021, subdivisions 2 and 3.new text end
91.5 Sec. 14. Laws 2010, chapter 389, article 1, section 12, the effective date, is amended to
91.6read:
91.7
EFFECTIVE DATE.This section is effective for assessment years
new text begin yearnew text end 2010 and
91.82011, for taxes payable in 2011 and 2012
new text begin thereafternew text end .
91.9
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for assessment year 2012 and new text end
91.10
new text begin thereafter.new text end
91.11 Sec. 15.
new text begin HOLDING OF PROPERTY FOR ECONOMIC DEVELOPMENT; new text end
91.12
new text begin TEMPORARY EXTENSION.new text end
91.13
new text begin (a) For purposes of Minnesota Statutes, section 272.02, subdivision 39, a political new text end
91.14
new text begin subdivision's holding for resale for economic development of a property that is located in new text end
91.15
new text begin a city in the metropolitan area, or in a city with a population of more than 5,000 outside new text end
91.16
new text begin of the metropolitan area, as defined in Minnesota Statutes, section 473.121, subdivision new text end
91.17
new text begin 2, for up to ten years, is a public purpose.new text end
91.18
new text begin (b) The authority under this section expires on December 31, 2015.new text end
91.19
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
91.20 Sec. 16.
new text begin REPEALER.new text end
91.21
new text begin Minnesota Statutes 2010, section 270C.991, subdivision 5,new text end new text begin is repealed.new text end
91.22
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
91.23
ARTICLE 8
91.24
INDIVIDUAL INCOME AND CORPORATE FRANCHISE TAXES
91.25 Section 1. Minnesota Statutes 2011 Supplement, section 116J.8737, subdivision 1,
91.26is amended to read:
91.27 Subdivision 1.
Definitions. (a) For the purposes of this section, the following terms
91.28have the meanings given.
91.29(b) "Qualified small business" means a business that has been certified by the
91.30commissioner under subdivision 2.
92.1(c) "Qualified investor" means an investor who has been certified by the
92.2commissioner under subdivision 3.
92.3(d) "Qualified fund" means a pooled angel investment network fund that has been
92.4certified by the commissioner under subdivision 4.
92.5(e) "Qualified investment" means a cash investment in a qualified small business
92.6of a minimum of:
92.7(1) $10,000 in a calendar year by a qualified investor; or
92.8(2) $30,000 in a calendar year by a qualified fund.
92.9A qualified investment must be made in exchange for common stock, a partnership
92.10or membership interest, preferred stock, debt with mandatory conversion to equity, or an
92.11equivalent ownership interest as determined by the commissioner.
92.12(f) "Family" means a family member within the meaning of the Internal Revenue
92.13Code, section 267(c)(4).
92.14(g) "Pass-through entity" means a corporation that for the applicable taxable year is
92.15treated as an S corporation or a general partnership, limited partnership, limited liability
92.16partnership, trust, or limited liability company and which for the applicable taxable year is
92.17not taxed as a corporation under chapter 290.
92.18(h) "Intern" means a student of an accredited institution of higher education, or a
92.19former student who has graduated in the past six months from an accredited institution
92.20of higher education, who is employed by a qualified small business in a nonpermanent
92.21position for a duration of nine months or less that provides training and experience in the
92.22primary business activity of the business.
92.23
new text begin (i) "Liquidation event" means a conversion of qualified investment for cash, cash new text end
92.24
new text begin and other consideration, or any other form of equity or debt interest.new text end
92.25
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for qualified small businesses new text end
92.26
new text begin certified after June 30, 2012.new text end
92.27 Sec. 2. Minnesota Statutes 2011 Supplement, section 116J.8737, subdivision 2, is
92.28amended to read:
92.29 Subd. 2.
Certification of qualified small businesses. (a) Businesses may apply
92.30to the commissioner for certification as a qualified small business for a calendar year.
92.31The application must be in the form and be made under the procedures specified by the
92.32commissioner, accompanied by an application fee of $150. Application fees are deposited
92.33in the small business investment tax credit administration account in the special revenue
92.34fund. The application for certification for 2010 must be made available on the department's
93.1Web site by August 1, 2010. Applications for subsequent years' certification must be made
93.2available on the department's Web site by November 1 of the preceding year.
93.3(b) Within 30 days of receiving an application for certification under this subdivision,
93.4the commissioner must either certify the business as satisfying the conditions required of a
93.5qualified small business, request additional information from the business, or reject the
93.6application for certification. If the commissioner requests additional information from the
93.7business, the commissioner must either certify the business or reject the application within
93.830 days of receiving the additional information. If the commissioner neither certifies the
93.9business nor rejects the application within 30 days of receiving the original application or
93.10within 30 days of receiving the additional information requested, whichever is later, then
93.11the application is deemed rejected, and the commissioner must refund the $150 application
93.12fee. A business that applies for certification and is rejected may reapply.
93.13(c) To receive certification, a business must satisfy all of the following conditions:
93.14(1) the business has its headquarters in Minnesota;
93.15(2) at least 51 percent of the business's employees are employed in Minnesota, and
93.1651 percent of the business's total payroll is paid or incurred in the state;
93.17(3) the business is engaged in, or is committed to engage in, innovation in Minnesota
93.18in one of the following as its primary business activity:
93.19(i) using proprietary technology to add value to a product, process, or service in a
93.20qualified high-technology field;
93.21(ii) researching or developing a proprietary product, process, or service in a qualified
93.22high-technology field; or
93.23(iii) researching, developing, or producing a new proprietary technology for use in
93.24the fields of agriculture, tourism, forestry, mining, manufacturing, or transportation;
93.25(4) other than the activities specifically listed in clause (3), the business is not
93.26engaged in real estate development, insurance, banking, lending, lobbying, political
93.27consulting, information technology consulting, wholesale or retail trade, leisure,
93.28hospitality, transportation, construction, ethanol production from corn, or professional
93.29services provided by attorneys, accountants, business consultants, physicians, or health
93.30care consultants;
93.31(5) the business has fewer than 25 employees;
93.32(6) the business must pay its employees annual wages of at least 175 percent of the
93.33federal poverty guideline for the year for a family of four and must pay its interns annual
93.34wages of at least 175 percent of the federal minimum wage used for federally covered
93.35employers, except that this requirement must be reduced proportionately for employees
93.36and interns who work less than full-time, and does not apply to an executive, officer, or
94.1member of the board of the business, or to any employee who owns, controls, or holds
94.2power to vote more than 20 percent of the outstanding securities of the business;
94.3(7) the business has not been in operation for more than ten years
new text begin , except as provided new text end
94.4
new text begin in clause (8)new text end ;
94.5
new text begin (8) the business has not been in operation for more than 20 years if the business is new text end
94.6
new text begin engaged in the research, development, or production of medical devices or pharmaceuticals new text end
94.7
new text begin for which U.S. Food and Drug Administration approval is required for use in the treatment new text end
94.8
new text begin or diagnosis of a disease or condition;new text end
94.9(8)
new text begin (9)new text end the business has not previously received private equity investments of more
94.10than $4,000,000; and
94.11 (9)
new text begin (10)new text end the business is not an entity disqualified under section
80A.50, paragraph
94.12(b), clause (3)
new text begin ; andnew text end
94.13
new text begin (11) the business has not issued securities that are traded on a public exchangenew text end .
94.14(d) In applying the limit under paragraph (c), clause (5), the employees in all
94.15members of the unitary business, as defined in section
290.17, subdivision 4, must be
94.16included.
94.17(e) In order for a qualified investment in a business to be eligible for tax credits,
new text begin :new text end
94.18
new text begin (1)new text end the business must have applied for and received certification for the calendar
94.19year in which the investment was made prior to the date on which the qualified investment
94.20was made.
new text begin ;new text end
94.21
new text begin (2) the business must not have issued securities that are traded on a public exchange;new text end
94.22
new text begin (3) the business must not issue securities that are traded on a public exchange within new text end
94.23
new text begin 180 days subsequent to the date on which the qualified investment was made; andnew text end
94.24
new text begin (4) the business must not have a liquidation event within 180 days subsequent to the new text end
94.25
new text begin date on which the qualified investment was made.new text end
94.26(f) The commissioner must maintain a list of businesses certified under this
94.27subdivision for the calendar year and make the list accessible to the public on the
94.28department's Web site.
94.29(g) For purposes of this subdivision, the following terms have the meanings given:
94.30(1) "qualified high-technology field" includes aerospace, agricultural processing,
94.31renewable energy, energy efficiency and conservation, environmental engineering, food
94.32technology, cellulosic ethanol, information technology, materials science technology,
94.33nanotechnology, telecommunications, biotechnology, medical device products,
94.34pharmaceuticals, diagnostics, biologicals, chemistry, veterinary science, and similar
94.35fields; and
95.1(2) "proprietary technology" means the technical innovations that are unique and
95.2legally owned or licensed by a business and includes, without limitation, those innovations
95.3that are patented, patent pending, a subject of trade secrets, or copyrighted.
95.4
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for qualified small businesses new text end
95.5
new text begin certified after June 30, 2012, except the amendments to paragraph (c), clause (7), and new text end
95.6
new text begin paragraph (c), adding clause (8), are effective the day following final enactment.new text end
95.7 Sec. 3. Minnesota Statutes 2010, section 116J.8737, subdivision 5, is amended to read:
95.8 Subd. 5.
Credit allowed. (a) A qualified investor or qualified fund is eligible for
95.9a credit equal to 25 percent of the qualified investment in a qualified small business.
95.10Investments made by a pass-through entity qualify for a credit only if the entity is a
95.11qualified fund. The commissioner must not allocate more than $11,000,000 in credits to
95.12qualified investors or qualified funds for taxable years beginning after December 31,
95.132009, and before January 1, 2011, and must not allocate more than $12,000,000 in credits
95.14per year for taxable years beginning after December 31, 2010, and before January 1,
95.152015
new text begin 2012, must not allocate more than $16,500,000 in credits per year for taxable years new text end
95.16
new text begin beginning after December 31, 2011, and before January 1, 2013, and must not allocate new text end
95.17
new text begin more than $12,000,000 in credits per year for taxable years beginning after December 31, new text end
95.18
new text begin 2012, and before January 1, 2015new text end . Any portion of a taxable year's credits that is not
95.19allocated by the commissioner does not cancel and may be carried forward to subsequent
95.20taxable years until all credits have been allocated.
95.21(b) The commissioner may not allocate more than a total maximum amount in credits
95.22for a taxable year to a qualified investor for the investor's cumulative qualified investments
95.23as an individual qualified investor and as an investor in a qualified fund; for married
95.24couples filing joint returns the maximum is $250,000, and for all other filers the maximum
95.25is $125,000. The commissioner may not allocate more than a total of $1,000,000 in credits
95.26over all taxable years for qualified investments in any one qualified small business.
95.27(c) The commissioner may not allocate a credit to a qualified investor either as an
95.28individual qualified investor or as an investor in a qualified fund if the investor receives
95.29more than 50 percent of the investor's gross annual income from the qualified small
95.30business in which the qualified investment is proposed. A member of the family of an
95.31individual disqualified by this paragraph is not eligible for a credit under this section. For
95.32a married couple filing a joint return, the limitations in this paragraph apply collectively
95.33to the investor and spouse. For purposes of determining the ownership interest of an
95.34investor under this paragraph, the rules under section 267(c) and 267(e) of the Internal
95.35Revenue Code apply.
96.1(d) Applications for tax credits for 2010 must be made available on the department's
96.2Web site by September 1, 2010, and the department must begin accepting applications
96.3by September 1, 2010. Applications for subsequent years must be made available by
96.4November 1 of the preceding year.
96.5(e) Qualified investors and qualified funds must apply to the commissioner for tax
96.6credits. Tax credits must be allocated to qualified investors or qualified funds in the order
96.7that the tax credit request applications are filed with the department. The commissioner
96.8must approve or reject tax credit request applications within 15 days of receiving the
96.9application. The investment specified in the application must be made within 60 days of
96.10the allocation of the credits. If the investment is not made within 60 days, the credit
96.11allocation is canceled and available for reallocation. A qualified investor or qualified fund
96.12that fails to invest as specified in the application, within 60 days of allocation of the
96.13credits, must notify the commissioner of the failure to invest within five business days of
96.14the expiration of the 60-day investment period.
96.15(f) All tax credit request applications filed with the department on the same day must
96.16be treated as having been filed contemporaneously. If two or more qualified investors or
96.17qualified funds file tax credit request applications on the same day, and the aggregate
96.18amount of credit allocation claims exceeds the aggregate limit of credits under this section
96.19or the lesser amount of credits that remain unallocated on that day, then the credits must
96.20be allocated among the qualified investors or qualified funds who filed on that day on a
96.21pro rata basis with respect to the amounts claimed. The pro rata allocation for any one
96.22qualified investor or qualified fund is the product obtained by multiplying a fraction,
96.23the numerator of which is the amount of the credit allocation claim filed on behalf of
96.24a qualified investor and the denominator of which is the total of all credit allocation
96.25claims filed on behalf of all applicants on that day, by the amount of credits that remain
96.26unallocated on that day for the taxable year.
96.27(g) A qualified investor or qualified fund, or a qualified small business acting on their
96.28behalf, must notify the commissioner when an investment for which credits were allocated
96.29has been made, and the taxable year in which the investment was made. A qualified fund
96.30must also provide the commissioner with a statement indicating the amount invested by
96.31each investor in the qualified fund based on each investor's share of the assets of the
96.32qualified fund at the time of the qualified investment. After receiving notification that the
96.33investment was made, the commissioner must issue credit certificates for the taxable year
96.34in which the investment was made to the qualified investor or, for an investment made by
96.35a qualified fund, to each qualified investor who is an investor in the fund. The certificate
96.36must state that the credit is subject to revocation if the qualified investor or qualified
97.1fund does not hold the investment in the qualified small business for at least three years,
97.2consisting of the calendar year in which the investment was made and the two following
97.3years. The three-year holding period does not apply if:
97.4(1) the investment by the qualified investor or qualified fund becomes worthless
97.5before the end of the three-year period;
97.6(2) 80 percent or more of the assets of the qualified small business is sold before
97.7the end of the three-year period;
97.8(3) the qualified small business is sold before the end of the three-year period; or
97.9(4) the qualified small business's common stock begins trading on a public exchange
97.10before the end of the three-year period.
97.11(h) The commissioner must notify the commissioner of revenue of credit certificates
97.12issued under this section.
97.13
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxable years beginning after new text end
97.14
new text begin December 31, 2011.new text end
97.15 Sec. 4. Minnesota Statutes 2010, section 116J.8737, is amended by adding a
97.16subdivision to read:
97.17
new text begin Subd. 5a.new text end new text begin Promotion of credit in greater Minnesota.new text end new text begin (a) By July 1, 2012, the new text end
97.18
new text begin commissioner shall develop a plan to increase awareness of and use of the credit for new text end
97.19
new text begin investments in greater Minnesota businesses with a target goal that a minimum of 30 new text end
97.20
new text begin percent of the credit will be awarded for those investments during the second half new text end
97.21
new text begin of calendar year 2013 and for each full calendar year thereafter. Beginning with the new text end
97.22
new text begin legislative report due on March 15, 2013, under subdivision 9, the commissioner shall new text end
97.23
new text begin report on its plan under this subdivision and the results achieved.new text end
97.24
new text begin (b) If the target goal of 30 percent under paragraph (a) is not achieved for the new text end
97.25
new text begin six-month period ending on December 31, 2013, the credit percentage under subdivision new text end
97.26
new text begin 5, paragraph (a), is increased to 40 percent for a qualified investment made after December new text end
97.27
new text begin 31, 2013, in a greater Minnesota business. This paragraph does not apply and the credit new text end
97.28
new text begin percentage for all qualified investments is the rate provided under subdivision 5 for any new text end
97.29
new text begin calendar year beginning after a calendar year for which the commissioner determines the new text end
97.30
new text begin 30 percent target has been satisfied. The commissioner shall timely post notification of new text end
97.31
new text begin changes in the credit rate under this paragraph on the department's website.new text end
97.32
new text begin (c) For purposes of this section, a "greater Minnesota business" means a qualified new text end
97.33
new text begin small business with its headquarters and 51 percent or more of its employees employed new text end
97.34
new text begin at Minnesota locations outside of the metropolitan area as defined in section 473.121, new text end
97.35
new text begin subdivision 2.new text end
98.1
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
98.2 Sec. 5. Minnesota Statutes 2010, section 116J.8737, subdivision 8, is amended to read:
98.3 Subd. 8.
Data privacy. (a) Data contained in an application submitted to the
98.4commissioner under subdivision 2, 3, or 4 are nonpublic data, or private data on
98.5individuals, as defined in section
13.02, subdivision 9 or 12, except that the following
98.6data items are public:
98.7(1) the name
new text begin , mailing address, telephone number, e-mail address, contact person's new text end
98.8
new text begin name, and industry typenew text end of a qualified small business upon approval of the application
98.9and certification by the commissioner under subdivision 2;
98.10(2) the name of a qualified investor upon approval of the application and certification
98.11by the commissioner under subdivision 3;
98.12(3) the name of a qualified fund upon approval of the application and certification
98.13by the commissioner under subdivision 4;
98.14(4) for credit certificates issued under subdivision 5, the amount of the credit
98.15certificate issued, amount of the qualifying investment, the name of the qualifying investor
98.16or qualifying fund that received the certificate, and the name of the qualifying small
98.17business in which the qualifying investment was made;
98.18(5) for credits revoked under subdivision 7, paragraph (a), the amount revoked and
98.19the name of the qualified investor or qualified fund; and
98.20(6) for credits revoked under subdivision 7, paragraphs (b) and (c), the amount
98.21revoked and the name of the qualified small business.
98.22(b) The following data, including data classified as nonpublic or private, must be
98.23provided to the consultant for use in conducting the program evaluation under subdivision
98.2410:
98.25(1) the commissioner of employment and economic development shall provide data
98.26contained in an application for certification received from a qualified small business,
98.27qualified investor, or qualified fund, and any annual reporting information received on a
98.28qualified small business, qualified investor, or qualified fund; and
98.29(2) the commissioner of revenue shall provide data contained in any applicable tax
98.30returns of a qualified small business, qualified investor, or qualified fund.
98.31
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for businesses requesting certification new text end
98.32
new text begin starting on the day following final enactment.new text end
98.33 Sec. 6. Minnesota Statutes 2011 Supplement, section 289A.02, subdivision 7, is
98.34amended to read:
99.1 Subd. 7.
Internal Revenue Code. Unless specifically defined otherwise, "Internal
99.2Revenue Code" means the Internal Revenue Code of 1986, as amended through April 14,
99.32011
new text begin February 14, 2012new text end .
99.4
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
99.5 Sec. 7. Minnesota Statutes 2011 Supplement, section 290.01, subdivision 19, is
99.6amended to read:
99.7 Subd. 19.
Net income. The term "net income" means the federal taxable income,
99.8as defined in section 63 of the Internal Revenue Code of 1986, as amended through the
99.9date named in this subdivision, incorporating the federal effective dates of changes to the
99.10Internal Revenue Code and any elections made by the taxpayer in accordance with the
99.11Internal Revenue Code in determining federal taxable income for federal income tax
99.12purposes, and with the modifications provided in subdivisions 19a to 19f.
99.13 In the case of a regulated investment company or a fund thereof, as defined in section
99.14851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
99.15company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
99.16except that:
99.17 (1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
99.18Revenue Code does not apply;
99.19 (2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal
99.20Revenue Code must be applied by allowing a deduction for capital gain dividends and
99.21exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal
99.22Revenue Code; and
99.23 (3) the deduction for dividends paid must also be applied in the amount of any
99.24undistributed capital gains which the regulated investment company elects to have treated
99.25as provided in section 852(b)(3)(D) of the Internal Revenue Code.
99.26 The net income of a real estate investment trust as defined and limited by section
99.27856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
99.28taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
99.29 The net income of a designated settlement fund as defined in section 468B(d) of
99.30the Internal Revenue Code means the gross income as defined in section 468B(b) of the
99.31Internal Revenue Code.
99.32 The Internal Revenue Code of 1986, as amended through April 14, 2011
new text begin February new text end
99.33
new text begin 14, 2012new text end , shall be in effect for taxable years beginning after December 31, 1996. The
99.34provisions of the act of January 22, 2010, Public Law 111-126, to accelerate the benefits
99.35for charitable cash contributions for the relief of victims of the Haitian earthquake, are
100.1effective at the same time they became effective for federal purposes and apply to the
100.2subtraction under subdivision 19b, clause (6). The provisions of title II, section 2112, of
100.3the act of September 27, 2010, Public Law 111-240, rollovers from elective deferral plans
100.4to designated Roth accounts, are effective at the same time they became effective for
100.5federal purposes and taxable rollovers are included in net income at the same time they are
100.6included in gross income for federal purposes.
100.7 Except as otherwise provided, references to the Internal Revenue Code in
100.8subdivisions 19 to 19f mean the code in effect for purposes of determining net income for
100.9the applicable year.
100.10
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
100.11 Sec. 8. Minnesota Statutes 2011 Supplement, section 290.01, subdivision 31, is
100.12amended to read:
100.13 Subd. 31.
Internal Revenue Code. Unless specifically defined otherwise, "Internal
100.14Revenue Code" means the Internal Revenue Code of 1986, as amended through April 14,
100.152011
new text begin February 14, 2012new text end . Internal Revenue Code also includes any uncodified provision in
100.16federal law that relates to provisions of the Internal Revenue Code that are incorporated
100.17into Minnesota law. When used in this chapter, the reference to "subtitle A, chapter 1,
100.18subchapter N, part 1, of the Internal Revenue Code" is to the Internal Revenue Code as
100.19amended through March 18, 2010.
100.20
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
100.21 Sec. 9. Minnesota Statutes 2010, section 290.068, subdivision 1, is amended to read:
100.22 Subdivision 1.
Credit allowed. A corporation, partners in a partnership, or
100.23shareholders in a corporation treated as an "S" corporation under section
290.9725 are
100.24allowed a credit against the tax computed under this chapter for the taxable year equal to:
100.25 (a) ten percent of the first $2,000,000 of the excess (if any) of
100.26 (1) the qualified research expenses for the taxable year, over
100.27 (2) the base amount; and
100.28 (b) 2.5
new text begin 2.8new text end percent on all of such excess expenses over $2,000,000
new text begin for taxable years new text end
100.29
new text begin beginning after December 31, 2011new text end .
100.30
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxable years beginning after new text end
100.31
new text begin December 31, 2011.new text end
100.32 Sec. 10. Minnesota Statutes 2010, section 290.0681, subdivision 1, is amended to read:
101.1 Subdivision 1.
Definitions. (a) For purposes of this section, the following terms
101.2have the meanings given.
101.3(b) "Account" means the historic credit administration account in the special
101.4revenue fund.
101.5(c) "Office" means the State Historic Preservation Office of the Minnesota Historical
101.6Society.
101.7(d) "Project" means rehabilitation of a certified historic structure, as defined in
101.8section 47(c)(3)(A) of the Internal Revenue Code, that is located in Minnesota and is
101.9allowed a federal credit under section 47(a)(2) of the Internal Revenue Code.
101.10(e) "Society" means the Minnesota Historical Society.
101.11
new text begin (f) "Federal credit" means the credit allowed under section 47(a)(2) of the Internal new text end
101.12
new text begin Revenue Code.new text end
101.13
new text begin (g) "Placed in service" has the meaning used in section 47 of the Internal Revenue new text end
101.14
new text begin Code.new text end
101.15
new text begin (h) "Qualified rehabilitation expenditures" has the meaning given in section 47 of new text end
101.16
new text begin the Internal Revenue Code.new text end
101.17
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
101.18 Sec. 11. Minnesota Statutes 2010, section 290.0681, subdivision 3, is amended to read:
101.19 Subd. 3.
Applications; allocations. (a) To qualify for a credit or grant under this
101.20section, the developer of a project must apply to the office before the rehabilitation begins.
101.21The application must contain the information and be in the form prescribed by the office.
101.22The office may collect a fee for application of up to $5,000, based on estimated qualified
101.23rehabilitation expenses
new text begin expendituresnew text end , to offset costs associated with personnel and
101.24administrative expenses related to administering the credit and preparing the economic
101.25impact report in subdivision 9. Application fees are deposited in the account. The
101.26application must indicate if the application is for a credit or a grant in lieu of the credit
101.27or a combination of the two and designate the taxpayer qualifying for the credit or the
101.28recipient of the grant.
101.29 (b) Upon approving an application for credit, the office shall issue allocation
101.30certificates that:
101.31 (1) verify eligibility for the credit or grant;
101.32 (2) state the amount of credit or grant anticipated with the project, with the credit
101.33amount equal to 100 percent and the grant amount equal to 90 percent of the federal
101.34credit anticipated in the application;
102.1 (3) state that the credit or grant allowed may increase or decrease if the federal
102.2credit the project receives at the time it is placed in service is different than the amount
102.3anticipated at the time the allocation certificate is issued; and
102.4 (4) state the fiscal year in which the credit or grant is allocated, and that the taxpayer
102.5or grant recipient is entitled to receive the credit or grant at the time the project is placed
102.6in service, provided that date is within three calendar years following the issuance of
102.7the allocation certificate.
102.8 (c) The office, in consultation with the commissioner of revenue, shall determine
102.9if the project is eligible for a credit or a grant under this section
new text begin and must notify the new text end
102.10
new text begin developer in writing of its determinationnew text end . Eligibility for the credit is subject to review
102.11and audit by the commissioner of revenue.
102.12 (d) The federal credit recapture and repayment requirements under section 50 of the
102.13Internal Revenue Code do not apply to the credit allowed under this section.
102.14
new text begin (e) Any decision of the office under paragraph (c) of this subdivision may be new text end
102.15
new text begin challenged as a contested case under chapter 14. The contested case proceeding must be new text end
102.16
new text begin initiated within 45 days of the date of written notification by the office.new text end
102.17
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
102.18 Sec. 12. Minnesota Statutes 2010, section 290.0681, subdivision 4, is amended to read:
102.19 Subd. 4.
Credit certificatesnew text begin ; grantsnew text end . (a)(1) The developer of a project for which the
102.20office has issued an allocation certificate must notify the office when the project is placed
102.21in service. Upon verifying that the project has been placed in service, and was allowed a
102.22federal credit, the office must issue a credit certificate to the taxpayer designated in the
102.23application or must issue a grant to the recipient designated in the application. The credit
102.24certificate must state the amount of the credit.
102.25 (2) The credit amount equals the federal credit allowed for the project.
102.26 (3) The grant amount equals 90 percent of the federal credit allowed for the project.
102.27 (b) The recipient of a credit certificate may assign the certificate to another taxpayer,
102.28which is then allowed the credit under this section or section
297I.20, subdivision 3.
new text begin An new text end
102.29
new text begin assignment is not valid unless the assignee notifies the commissioner within 30 days of the new text end
102.30
new text begin date that the assignment is made. new text end The commissioner shall prescribe the forms necessary
102.31for
new text begin notifying the commissioner of the assignment of a credit certificate and for new text end claiming
102.32a credit by assignment.
102.33
new text begin (c) Credits passed through pursuant to subdivision 5 of this section are not an new text end
102.34
new text begin assignment of a credit certificate under this subdivision.new text end
103.1
new text begin (d) A grant agreement between the office and the recipient of a grant may allow the new text end
103.2
new text begin grant to be issued to another individual or entity.new text end
103.3
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
103.4 Sec. 13. Minnesota Statutes 2010, section 290.0681, subdivision 5, is amended to read:
103.5 Subd. 5.
Partnerships; multiple owners. Credits granted to a partnership, a limited
103.6liability company taxed as a partnership, S corporation, or multiple owners of property
103.7are passed through to the partners, members, shareholders, or owners, respectively, pro
103.8rata to each partner, member, shareholder, or owner based on their share of the entity's
103.9assets or as specially allocated in their organizational documents
new text begin or any other executed new text end
103.10
new text begin agreementnew text end , as of the last day of the taxable year.
103.11
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
103.12 Sec. 14. Minnesota Statutes 2010, section 290.0681, subdivision 10, is amended to
103.13read:
103.14 Subd. 10.
Sunset. This section expires after fiscal year 2015
new text begin 2021new text end , except that
103.15the office's authority to issue credit certificates under subdivision 4 based on allocation
103.16certificates that were issued before fiscal year 2016
new text begin 2022new text end remains in effect through 2018
new text begin new text end
103.17
new text begin 2024new text end , and the reporting requirements in subdivision 9 remain in effect through the year
103.18following the year in which all allocation certificates have either been canceled or resulted
103.19in issuance of credit certificates, or 2019
new text begin 2025new text end , whichever is earlier.
103.20
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
103.21 Sec. 15.
new text begin [290.0693] VETERANS JOBS TAX CREDIT.new text end
103.22
new text begin Subdivision 1.new text end new text begin Definitions.new text end new text begin (a) For purposes of this section, the following terms new text end
103.23
new text begin have the meanings given.new text end
103.24
new text begin (b)(1) "Full-time employee" means an employee as defined in section 290.92, new text end
103.25
new text begin subdivision 1, who meets the following criteria:new text end
103.26
new text begin (i) the employee is paid wages as defined in section 290.92, subdivision 1, for at new text end
103.27
new text begin least 1,820 hours during the 12-month period that starts on the date of hire;new text end
103.28
new text begin (ii) the employee's wages are attributable to Minnesota under section 290.191, new text end
103.29
new text begin subdivision 12;new text end
103.30
new text begin (iii) the employee performs services for the employer in at least 50 weeks during the new text end
103.31
new text begin 12-month period that starts on the date of hire; and new text end
104.1
new text begin (iv) the employee's total compensation, including benefits not mandated by law, is at new text end
104.2
new text begin least $25,000 for the 12-month period that starts on the date of hire.new text end
104.3
new text begin (2) "Full-time employee" does not include:new text end
104.4
new text begin (i) any employee who bears any of the relationships described in subparagraphs (A) new text end
104.5
new text begin to (G) of section 152(d)(2) of the Internal Revenue Code to the employer;new text end
104.6
new text begin (ii) if the employer is a corporation, any employee who owns, directly or indirectly, new text end
104.7
new text begin more than 50 percent in value of the outstanding stock of the corporation, or if the new text end
104.8
new text begin employer is an entity other than a corporation, an employee who owns, directly or new text end
104.9
new text begin indirectly, more than 50 percent of the capital and profits interests in the entity, as new text end
104.10
new text begin determined with the application of section 267(c) of the Internal Revenue Code; ornew text end
104.11
new text begin (iii) if the employer is an estate or trust, any employee who is a fiduciary of the estate new text end
104.12
new text begin or trust, or is an individual who bears any of the relationships described in subparagraphs new text end
104.13
new text begin (A) to (G) of section 152(d)(2) of the Internal Revenue Code to a grantor, beneficiary, new text end
104.14
new text begin or fiduciary of the estate or trust.new text end
104.15
new text begin (c) "Qualified employer" means an employer that:new text end
104.16
new text begin (1) employed a total of five or more full-time employees on December 31, 2011; andnew text end
104.17
new text begin (2) hired one or more qualified full-time employees after March 31, 2012.new text end
104.18
new text begin (d) "Qualified full-time employee" means a full-time employee who:new text end
104.19
new text begin (1) has completed 12 consecutive months of service as a full-time employee for a new text end
104.20
new text begin qualified employer;new text end
104.21
new text begin (2) is a qualified unemployed veteran; andnew text end
104.22
new text begin (3) is a resident of Minnesota on the date of hire.new text end
104.23
new text begin (e) "Qualified unemployed veteran" is a person who:new text end
104.24
new text begin (1) was in active military service in a designated area after September 11, 2001, new text end
104.25
new text begin as defined in section 290.0677;new text end
104.26
new text begin (2) was separated from active military service at any time during the five-year period new text end
104.27
new text begin prior to the date of hire;new text end
104.28
new text begin (3) received unemployment compensation under state or federal law for not less than new text end
104.29
new text begin four weeks during the one-year period prior to the date of hire; andnew text end
104.30
new text begin (4) was unemployed on the date of hire.new text end
104.31
new text begin (f) "Date of hire" means the day that the qualified full-time employee begins new text end
104.32
new text begin performing services as an employee for the qualified employer.new text end
104.33
new text begin (g) "Construction trades employer" means a person carrying on a trade or business new text end
104.34
new text begin described in industry code numbers 23 through 238990 of the North American Industry new text end
104.35
new text begin Classification System.new text end
105.1
new text begin Subd. 2.new text end new text begin Credit for new full-time employees.new text end new text begin (a) A qualified employer who is new text end
105.2
new text begin required to file a return under section 289A.08, subdivision 1, 2, or 3, is allowed a credit new text end
105.3
new text begin against the tax imposed by this chapter for the net increase in qualified full-time employees.new text end
105.4
new text begin (b)(1) For hiring qualified full-time employees after March 30, 2012, but before new text end
105.5
new text begin January 1, 2013, the credit is equal to $3,000 times the net increase in full-time employees. new text end
105.6
new text begin The net increase in full-time employees is the difference between:new text end
105.7
new text begin (i) the total number of full-time employees employed by the employer on December new text end
105.8
new text begin 31, 2011; andnew text end
105.9
new text begin (ii) the number of full-time employees employed by the employer on December new text end
105.10
new text begin 31, 2012.new text end
105.11
new text begin The net increase in full-time employees cannot exceed the number of qualified full-time new text end
105.12
new text begin employees hired after March 31, 2012, but before January 1, 2013.new text end
105.13
new text begin (2) For hiring qualified full-time employees after December 31, 2012, but before new text end
105.14
new text begin July 1, 2013, the credit is equal to $1,500 times the net increase in full-time employees. new text end
105.15
new text begin The net increase in full-time employees is the difference between:new text end
105.16
new text begin (i) the total number of full-time employees employed by the taxpayer on December new text end
105.17
new text begin 31, 2011; andnew text end
105.18
new text begin (ii) the number of full-time employees employed by the taxpayer on December new text end
105.19
new text begin 31, 2013.new text end
105.20
new text begin The net increase in full-time employees cannot exceed the number of qualified full-time new text end
105.21
new text begin employees hired after December 31, 2012, but before July 1, 2013.new text end
105.22
new text begin (c) The credit may be claimed in the taxable year in which the qualified full-time new text end
105.23
new text begin employee completes 12 consecutive months of continuous service as a full-time employee new text end
105.24
new text begin of the qualified employer.new text end
105.25
new text begin (d) The maximum aggregate credits allowed to a qualified employer under this new text end
105.26
new text begin section for all taxable years is $50,000.new text end
105.27
new text begin (e) For members of a unitary business whose income and factors are included on a new text end
105.28
new text begin combined income report under section 289A.08, subdivision 3, the number of full-time new text end
105.29
new text begin employees and the maximum allowable credit are not determined at the individual new text end
105.30
new text begin member level but are instead determined at the group level.new text end
105.31
new text begin Subd. 3.new text end new text begin Allocation of credits.new text end new text begin (a) By July 1, 2012, the commissioner shall develop new text end
105.32
new text begin an Internet application that allows employers to apply for tentative credits. The application new text end
105.33
new text begin must include the employer's name, tax identification number, and North American Industry new text end
105.34
new text begin Classification System industry code, and the name and date of hire of the employee.new text end
106.1
new text begin (b) The credit is available only to employers who apply for a tentative credit using new text end
106.2
new text begin the application in paragraph (a) and who receive notice that their application has been new text end
106.3
new text begin approved for a tentative credit.new text end
106.4
new text begin (c) Employers may apply for a tentative credit no earlier than the date of hire of new text end
106.5
new text begin each qualified full-time employee. Any employer may file more than one tentative credit new text end
106.6
new text begin application, but no employer may apply for tentative credits for more than a total of 16 new text end
106.7
new text begin employees hired in 2012 or 33 employees hired in 2013.new text end
106.8
new text begin (d) The commissioner shall approve applications seeking tentative credits for the new text end
106.9
new text begin first 1,250 full-time employees based on the order in which the applications are received.new text end
106.10
new text begin (e) The commissioner must promptly notify employers if they are eligible for a new text end
106.11
new text begin tentative credit. The notice must state that the employer is eligible for a credit only after new text end
106.12
new text begin the employee named in the application has worked for 12 consecutive months and all other new text end
106.13
new text begin conditions of eligibility are met.new text end
106.14
new text begin (f) The commissioner shall promptly publish public notice when all 2,500 tentative new text end
106.15
new text begin credits have been applied for.new text end
106.16
new text begin Subd. 4.new text end new text begin Tentative credits for construction trades employers.new text end new text begin (a) Any new text end
106.17
new text begin construction trades employer may apply for a tentative credit.new text end
106.18
new text begin (b) To remain eligible for a credit, a construction trades employer who has received new text end
106.19
new text begin a tentative credit must renew the tentative credit by filing an application with the new text end
106.20
new text begin commissioner no earlier than 180 days after date of hire and no more than 210 days after new text end
106.21
new text begin date of hire. The renewal notice must state that the employee for whom the tentative credit new text end
106.22
new text begin was originally granted is still an employee and that the employer reasonably believes that new text end
106.23
new text begin all qualifications of eligibility for a credit will be met.new text end
106.24
new text begin (c) Any tentative credit issued to a construction trades employer that is not renewed new text end
106.25
new text begin within the time required for renewal is canceled. Any canceled tentative credits are new text end
106.26
new text begin available to be reissued by the commissioner to employers under subdivision 3.new text end
106.27
new text begin Subd. 5.new text end new text begin Flow-through entities.new text end new text begin Credits granted to a partnership, limited liability new text end
106.28
new text begin company taxed as a partnership, S corporation, or multiple owners of a business are passed new text end
106.29
new text begin through to the partners, members, shareholders, or owners, respectively, pro rata to each new text end
106.30
new text begin partner, member, shareholder, or owner based on their share of the entity's assets or as new text end
106.31
new text begin specially allocated in their organizational documents, as of the last day of the taxable year.new text end
106.32
new text begin Subd. 6.new text end new text begin Refundable.new text end new text begin If the amount of the credit allowed under this section exceeds new text end
106.33
new text begin the liability for tax under this chapter, the commissioner shall refund the excess to the new text end
106.34
new text begin taxpayer.new text end
106.35
new text begin Subd. 7.new text end new text begin Appropriation.new text end new text begin An amount sufficient to pay the refunds authorized by this new text end
106.36
new text begin section is appropriated to the commissioner from the general fund.new text end
107.1
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
107.2 Sec. 16. Minnesota Statutes 2011 Supplement, section 290A.03, subdivision 15,
107.3is amended to read:
107.4 Subd. 15.
Internal Revenue Code. "Internal Revenue Code" means the Internal
107.5Revenue Code of 1986, as amended through April 14, 2011
new text begin February 14, 2012new text end .
107.6
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
107.7 Sec. 17. Minnesota Statutes 2011 Supplement, section 291.005, subdivision 1, is
107.8amended to read:
107.9 Subdivision 1.
Scope. Unless the context otherwise clearly requires, the following
107.10terms used in this chapter shall have the following meanings:
107.11 (1) "Commissioner" means the commissioner of revenue or any person to whom the
107.12commissioner has delegated functions under this chapter.
107.13 (2) "Federal gross estate" means the gross estate of a decedent as required to be
107.14valued and otherwise determined for federal estate tax purposes under the Internal
107.15Revenue Code.
107.16 (3) "Internal Revenue Code" means the United States Internal Revenue Code of
107.171986, as amended through April 14, 2011
new text begin February 14, 2012new text end , but without regard to the
107.18provisions of sections 501 and 901 of Public Law 107-16, as amended by Public Law
107.19111-312, and section 301(c) of Public Law 111-312.
107.20 (4) "Minnesota adjusted taxable estate" means federal adjusted taxable estate as
107.21defined by section 2011(b)(3) of the Internal Revenue Code, plus
107.22(i) the amount of deduction for state death taxes allowed under section 2058 of
107.23the Internal Revenue Code; less
107.24(ii)(A) the value of qualified small business property under section
291.03,
107.25subdivision 9
, and the value of qualified farm property under section
291.03, subdivision
107.2610
, or (B) $4,000,000, whichever is less.
107.27 (5) "Minnesota gross estate" means the federal gross estate of a decedent after (a)
107.28excluding therefrom any property included therein which has its situs outside Minnesota,
107.29and (b) including therein any property omitted from the federal gross estate which is
107.30includable therein, has its situs in Minnesota, and was not disclosed to federal taxing
107.31authorities.
107.32 (6) "Nonresident decedent" means an individual whose domicile at the time of
107.33death was not in Minnesota.
108.1 (7) "Personal representative" means the executor, administrator or other person
108.2appointed by the court to administer and dispose of the property of the decedent. If there
108.3is no executor, administrator or other person appointed, qualified, and acting within this
108.4state, then any person in actual or constructive possession of any property having a situs in
108.5this state which is included in the federal gross estate of the decedent shall be deemed
108.6to be a personal representative to the extent of the property and the Minnesota estate tax
108.7due with respect to the property.
108.8 (8) "Resident decedent" means an individual whose domicile at the time of death
108.9was in Minnesota.
108.10 (9) "Situs of property" means, with respect to real property, the state or country in
108.11which it is located; with respect to tangible personal property, the state or country in which
108.12it was normally kept or located at the time of the decedent's death; and with respect to
108.13intangible personal property, the state or country in which the decedent was domiciled
108.14at death.
108.15
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
108.16 Sec. 18. Laws 2010, chapter 216, section 11, the effective date, is amended to read:
108.17
EFFECTIVE DATE.This section is effective for taxable years beginning
108.18after December 31, 2009, for certified historic structures for which qualified costs of
108.19rehabilitation are first paid under construction contracts entered into after May 1, 2010
new text begin new text end
108.20
new text begin rehabilitation expenditures are first paid by the developer or taxpayer after May 1, 2010, new text end
108.21
new text begin for rehabilitation that occurs after May 1, 2010, provided that the application under new text end
108.22
new text begin subdivision 3 is submitted before the project is placed in servicenew text end .
108.23
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment new text end
108.24
new text begin and applies retroactively for taxable years beginning after December 31, 2009, and for new text end
108.25
new text begin certified historic structures placed in service after May 1, 2010, but the office may not new text end
108.26
new text begin issue certificates allowed under the change to this section until July 1, 2012.new text end
108.27 Sec. 19.
new text begin AMENDED RETURNS; CERTAIN IRA ROLLOVERS.new text end
108.28
new text begin An individual who excludes an amount from net income in a prior taxable year new text end
108.29
new text begin through rollover of an airline payment amount to a traditional IRA, as authorized under new text end
108.30
new text begin Public Law 112-95, section 1106, may file an amended individual income tax return and new text end
108.31
new text begin claim for refund of state taxes as provided under Minnesota Statutes, section 289A.40, new text end
108.32
new text begin subdivision 1, or, if later, by April 15, 2013.new text end
109.1
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
109.2
ARTICLE 9
109.3
SALES AND SPECIAL TAXES
109.4 Section 1. Minnesota Statutes 2010, section 289A.20, subdivision 4, is amended to
109.5read:
109.6 Subd. 4.
Sales and use tax. (a) The taxes imposed by chapter 297A are due and
109.7payable to the commissioner monthly on or before the 20th day of the month following
109.8the month in which the taxable event occurred, or following another reporting period
109.9as the commissioner prescribes or as allowed under section
289A.18, subdivision 4,
109.10paragraph (f) or (g), except that:
109.11(1) use taxes due on an annual use tax return as provided under section
289A.11,
109.12subdivision 1
, are payable by April 15 following the close of the calendar year; and
new text begin .new text end
109.13(2) except as provided in paragraph (f), for a vendor having a liability of $120,000
109.14or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the taxes
109.15imposed by chapter 297A, except as provided in paragraph (b), are due and payable to the
109.16commissioner monthly in the following manner:
109.17(i) On or before the 14th day of the month following the month in which the taxable
109.18event occurred, the vendor must remit to the commissioner 90 percent of the estimated
109.19liability for the month in which the taxable event occurred.
109.20(ii) On or before the 20th day of the month in which the taxable event occurs, the
109.21vendor must remit to the commissioner a prepayment for the month in which the taxable
109.22event occurs equal to 67 percent of the liability for the previous month.
109.23(iii) On or before the 20th day of the month following the month in which the taxable
109.24event occurred, the vendor must pay any additional amount of tax not previously remitted
109.25under either item (i) or (ii ) or, if the payment made under item (i) or (ii) was greater than
109.26the vendor's liability for the month in which the taxable event occurred, the vendor may
109.27take a credit against the next month's liability in a manner prescribed by the commissioner.
109.28(iv) Once the vendor first pays under either item (i) or (ii), the vendor is required to
109.29continue to make payments in the same manner, as long as the vendor continues having a
109.30liability of $120,000 or more during the most recent fiscal year ending June 30.
109.31(v) Notwithstanding items (i), (ii), and (iv), if a vendor fails to make the required
109.32payment in the first month that the vendor is required to make a payment under either item
109.33(i) or (ii), then the vendor is deemed to have elected to pay under item (ii) and must make
109.34subsequent monthly payments in the manner provided in item (ii).
110.1(vi) For vendors making an accelerated payment under item (ii), for the first month
110.2that the vendor is required to make the accelerated payment, on the 20th of that month, the
110.3vendor will pay 100 percent of the liability for the previous month and a prepayment for
110.4the first month equal to 67 percent of the liability for the previous month.
110.5 (b) Notwithstanding paragraph (a), A vendor having a liability of $120,000 or more
110.6during a fiscal year ending June 30 must remit the June liability for the next year in the
110.7following manner:
110.8 (1) Two business days before June 30 of the year, the vendor must remit 90 percent
110.9of the estimated June liability to the commissioner.
110.10 (2) On or before August 20 of the year, the vendor must pay any additional amount
110.11of tax not remitted in June.
110.12 (c) A vendor having a liability of:
110.13 (1) $10,000 or more, but less than $120,000 during a fiscal year ending June 30,
110.142009, and fiscal years thereafter, must remit by electronic means all liabilities on returns
110.15due for periods beginning in the subsequent calendar year on or before the 20th day of
110.16the month following the month in which the taxable event occurred, or on or before the
110.1720th day of the month following the month in which the sale is reported under section
110.18289A.18, subdivision 4
; or
110.19(2) $120,000 or more, during a fiscal year ending June 30, 2009, and fiscal years
110.20thereafter, must remit by electronic means all liabilities in the manner provided in
110.21paragraph (a), clause (2), on returns due for periods beginning in the subsequent calendar
110.22year, except for 90 percent of the estimated June liability, which is due two business days
110.23before June 30. The remaining amount of the June liability is due on August 20.
110.24(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's
110.25religious beliefs from paying electronically shall be allowed to remit the payment by mail.
110.26The filer must notify the commissioner of revenue of the intent to pay by mail before
110.27doing so on a form prescribed by the commissioner. No extra fee may be charged to a
110.28person making payment by mail under this paragraph. The payment must be postmarked
110.29at least two business days before the due date for making the payment in order to be
110.30considered paid on a timely basis.
110.31(e) Whenever the liability is $120,000 or more separately for: (1) the tax imposed
110.32under chapter 297A; (2) a fee that is to be reported on the same return as and paid with the
110.33chapter 297A taxes; or (3) any other tax that is to be reported on the same return as and
110.34paid with the chapter 297A taxes, then the payment of all the liabilities on the return must
110.35be accelerated as provided in this subdivision.
111.1(f) At the start of the first calendar quarter at least 90 days after the cash flow
111.2account established in section
16A.152, subdivision 1, and the budget reserve account
111.3established in section
16A.152, subdivision 1a, reach the amounts listed in section
111.4
16A.152, subdivision 2, paragraph (a), the remittance of the accelerated payments required
111.5under paragraph (a), clause (2), must be suspended. The commissioner of management
111.6and budget shall notify the commissioner of revenue when the accounts have reached
111.7the required amounts. Beginning with the suspension of paragraph (a), clause (2), for a
111.8vendor with a liability of $120,000 or more during a fiscal year ending June 30, 2009,
111.9and fiscal years thereafter, the taxes imposed by chapter 297A are due and payable to the
111.10commissioner on the 20th day of the month following the month in which the taxable
111.11event occurred. Payments of tax liabilities for taxable events occurring in June under
111.12paragraph (b) are not changed.
111.13
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxes due and payable after new text end
111.14
new text begin June 30, 2012.new text end
111.15 Sec. 2. Minnesota Statutes 2011 Supplement, section 295.53, subdivision 1, is
111.16amended to read:
111.17 Subdivision 1.
Exemptions. (a) The following payments are excluded from the
111.18gross revenues subject to the hospital, surgical center, or health care provider taxes under
111.19sections
295.50 to
295.59:
111.20(1) payments received for services provided under the Medicare program, including
111.21payments received from the government, and organizations governed by sections 1833
111.22and 1876 of title XVIII of the federal Social Security Act, United States Code, title 42,
111.23section 1395, and enrollee deductibles, coinsurance, and co-payments, whether paid by the
111.24Medicare enrollee or by a Medicare supplemental coverage as defined in section
62A.011,
111.25subdivision 3
, clause (10), or by Medicaid payments under title XIX of the federal Social
111.26Security Act. Payments for services not covered by Medicare are taxable;
111.27(2) payments received for home health care services;
111.28(3) payments received from hospitals or surgical centers for goods and services on
111.29which liability for tax is imposed under section
295.52 or the source of funds for the
111.30payment is exempt under clause (1), (7), (10), or (14);
111.31(4) payments received from health care providers for goods and services on which
111.32liability for tax is imposed under this chapter or the source of funds for the payment is
111.33exempt under clause (1), (7), (10), or (14);
111.34(5) amounts paid for legend drugs, other than nutritional products and blood and
111.35blood components, to a wholesale drug distributor who is subject to tax under section
112.1295.52, subdivision 3
, reduced by reimbursements received for legend drugs otherwise
112.2exempt under this chapter;
112.3(6) payments received by a health care provider or the wholly owned subsidiary of a
112.4health care provider for care provided outside Minnesota;
112.5(7) payments received from the chemical dependency fund under chapter 254B;
112.6(8) payments received in the nature of charitable donations that are not designated
112.7for providing patient services to a specific individual or group;
112.8(9) payments received for providing patient services incurred through a formal
112.9program of health care research conducted in conformity with federal regulations
112.10governing research on human subjects. Payments received from patients or from other
112.11persons paying on behalf of the patients are subject to tax;
112.12(10) payments received from any governmental agency for services benefiting the
112.13public, not including payments made by the government in its capacity as an employer
112.14or insurer or payments made by the government for services provided under general
112.15assistance medical care, the MinnesotaCare program, or the medical assistance program
112.16governed by title XIX of the federal Social Security Act, United States Code, title 42,
112.17sections 1396 to 1396v;
112.18(11) government payments received by the commissioner of human services for
112.19state-operated services;
112.20(12) payments received by a health care provider for hearing aids and related
112.21equipment or prescription eyewear delivered outside of Minnesota;
112.22(13) payments received by an educational institution from student tuition, student
112.23activity fees, health care service fees, government appropriations, donations, or grants,
112.24and for services identified in and provided under an individualized education program
112.25as defined in section
256B.0625 or Code of Federal Regulations, chapter 34, section
112.26300.340(a). Fee for service payments and payments for extended coverage are taxable;
112.27(14) payments received under the federal Employees Health Benefits Act, United
112.28States Code, title 5, section 8909(f), as amended by the Omnibus Reconciliation Act of
112.291990. Enrollee deductibles, coinsurance, and co-payments are subject to tax; and
112.30(15) payments received under the federal Tricare program, Code of Federal
112.31Regulations, title 32, section 199.17(a)(7). Enrollee deductibles, coinsurance, and
112.32co-payments are subject to tax.
new text begin ; andnew text end
112.33
new text begin (16) payments for laboratory services to examine and report results for a biological new text end
112.34
new text begin specimen that is collected outside the state. The entity claiming the exemption is required new text end
112.35
new text begin to keep adequate records demonstrating that the specimen was collected outside the state, new text end
112.36
new text begin so that the commissioner can ensure that the correct amount of tax is paid.new text end
113.1(b) Payments received by wholesale drug distributors for legend drugs sold directly
113.2to veterinarians or veterinary bulk purchasing organizations are excluded from the gross
113.3revenues subject to the wholesale drug distributor tax under sections
295.50 to
295.59.
113.4
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for gross revenues received from new text end
113.5
new text begin laboratory services provided on or after July 1, 2013.new text end
113.6 Sec. 3. Minnesota Statutes 2010, section 297A.61, subdivision 4, is amended to read:
113.7 Subd. 4.
Retail sale. (a) A "retail sale" means any sale, lease, or rental for any
113.8purpose, other than resale, sublease, or subrent of items by the purchaser in the normal
113.9course of business as defined in subdivision 21.
113.10 (b) A sale of property used by the owner only by leasing it to others or by holding it
113.11in an effort to lease it, and put to no use by the owner other than resale after the lease or
113.12effort to lease, is a sale of property for resale.
113.13 (c) A sale of master computer software that is purchased and used to make copies for
113.14sale or lease is a sale of property for resale.
113.15 (d) A sale of building materials, supplies, and equipment to owners, contractors,
113.16subcontractors, or builders for the erection of buildings or the alteration, repair, or
113.17improvement of real property is a retail sale in whatever quantity sold, whether the sale is
113.18for purposes of resale in the form of real property or otherwise.
113.19 (e) A sale of carpeting, linoleum, or similar floor covering to a person who provides
113.20for installation of the floor covering is a retail sale and not a sale for resale since a sale
113.21of floor covering which includes installation is a contract for the improvement of real
113.22property.
113.23 (f) A sale of shrubbery, plants, sod, trees, and similar items to a person who provides
113.24for installation of the items is a retail sale and not a sale for resale since a sale of
113.25shrubbery, plants, sod, trees, and similar items that includes installation is a contract for
113.26the improvement of real property.
113.27 (g) A sale of tangible personal property that is awarded as prizes is a retail sale and
113.28is not considered a sale of property for resale.
113.29 (h) A sale of tangible personal property utilized or employed in the furnishing or
113.30providing of services under subdivision 3, paragraph (g), clause (1), including, but not
113.31limited to, property given as promotional items, is a retail sale and is not considered a
113.32sale of property for resale.
113.33 (i) A sale of tangible personal property used in conducting lawful gambling under
113.34chapter 349 or the State Lottery under chapter 349A, including, but not limited to,
114.1property given as promotional items, is a retail sale and is not considered a sale of
114.2property for resale.
114.3 (j) A sale of machines, equipment, or devices that are used to furnish, provide, or
114.4dispense goods or services, including, but not limited to, coin-operated devices, is a retail
114.5sale and is not considered a sale of property for resale.
114.6 (k) In the case of a lease, a retail sale occurs (1) when an obligation to make a lease
114.7payment becomes due under the terms of the agreement or the trade practices of the lessor
114.8or
new text begin ;new text end (2) in the case of a lease of a motor vehicle, as defined in section
297B.01, subdivision
114.911
, but excluding vehicles with a manufacturer's gross vehicle weight rating greater than
114.1010,000 pounds and rentals of vehicles for not more than 28 days, at the time the lease is
114.11executed
new text begin ; or (3) for rent-to-own or lease-to-own used vehicles where the lessee may new text end
114.12
new text begin purchase or return the vehicle at any time without penalty, at the time each payment is new text end
114.13
new text begin made under the terms of the agreementnew text end .
114.14 (l) In the case of a conditional sales contract, a retail sale occurs upon the transfer of
114.15title or possession of the tangible personal property.
114.16 (m) A sale of a bundled transaction in which one or more of the products included
114.17in the bundle is a taxable product is a retail sale, except that if one of the products
114.18is a telecommunication service, ancillary service, Internet access, or audio or video
114.19programming service, and the seller has maintained books and records identifying through
114.20reasonable and verifiable standards the portions of the price that are attributable to the
114.21distinct and separately identifiable products, then the products are not considered part of a
114.22bundled transaction. For purposes of this paragraph:
114.23 (1) the books and records maintained by the seller must be maintained in the regular
114.24course of business, and do not include books and records created and maintained by the
114.25seller primarily for tax purposes;
114.26 (2) books and records maintained in the regular course of business include, but are
114.27not limited to, financial statements, general ledgers, invoicing and billing systems and
114.28reports, and reports for regulatory tariffs and other regulatory matters; and
114.29 (3) books and records are maintained primarily for tax purposes when the books
114.30and records identify taxable and nontaxable portions of the price, but the seller maintains
114.31other books and records that identify different prices attributable to the distinct products
114.32included in the same bundled transaction.
114.33
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for leases entered into after June new text end
114.34
new text begin 30, 2012.new text end
114.35 Sec. 4. Minnesota Statutes 2010, section 297A.68, subdivision 5, is amended to read:
115.1 Subd. 5.
Capital equipment. (a) Capital equipment is exempt.
new text begin Except as provided new text end
115.2
new text begin in paragraph (e),new text end the tax must be imposed and collected as if the rate under section
115.3297A.62, subdivision 1
, applied, and then refunded in the manner provided in section
115.4297A.75
.
115.5"Capital equipment" means machinery and equipment purchased or leased, and used
115.6in this state by the purchaser or lessee primarily for manufacturing, fabricating, mining,
115.7or refining tangible personal property to be sold ultimately at retail if the machinery and
115.8equipment are essential to the integrated production process of manufacturing, fabricating,
115.9mining, or refining. Capital equipment also includes machinery and equipment
115.10used primarily to electronically transmit results retrieved by a customer of an online
115.11computerized data retrieval system.
115.12(b) Capital equipment includes, but is not limited to:
115.13(1) machinery and equipment used to operate, control, or regulate the production
115.14equipment;
115.15(2) machinery and equipment used for research and development, design, quality
115.16control, and testing activities;
115.17(3) environmental control devices that are used to maintain conditions such as
115.18temperature, humidity, light, or air pressure when those conditions are essential to and are
115.19part of the production process;
115.20(4) materials and supplies used to construct and install machinery or equipment;
115.21(5) repair and replacement parts, including accessories, whether purchased as spare
115.22parts, repair parts, or as upgrades or modifications to machinery or equipment;
115.23(6) materials used for foundations that support machinery or equipment;
115.24(7) materials used to construct and install special purpose buildings used in the
115.25production process;
115.26(8) ready-mixed concrete equipment in which the ready-mixed concrete is mixed
115.27as part of the delivery process regardless if mounted on a chassis, repair parts for
115.28ready-mixed concrete trucks, and leases of ready-mixed concrete trucks; and
115.29(9) machinery or equipment used for research, development, design, or production
115.30of computer software.
115.31(c) Capital equipment does not include the following:
115.32(1) motor vehicles taxed under chapter 297B;
115.33(2) machinery or equipment used to receive or store raw materials;
115.34(3) building materials, except for materials included in paragraph (b), clauses (6)
115.35and (7);
116.1(4) machinery or equipment used for nonproduction purposes, including, but not
116.2limited to, the following: plant security, fire prevention, first aid, and hospital stations;
116.3support operations or administration; pollution control; and plant cleaning, disposal of
116.4scrap and waste, plant communications, space heating, cooling, lighting, or safety;
116.5(5) farm machinery and aquaculture production equipment as defined by section
116.6297A.61
, subdivisions 12 and 13;
116.7(6) machinery or equipment purchased and installed by a contractor as part of an
116.8improvement to real property;
116.9(7) machinery and equipment used by restaurants in the furnishing, preparing, or
116.10serving of prepared foods as defined in section
297A.61, subdivision 31;
116.11(8) machinery and equipment used to furnish the services listed in section
297A.61,
116.12subdivision 3
, paragraph (g), clause (6), items (i) to (vi) and (viii);
116.13(9) machinery or equipment used in the transportation, transmission, or distribution
116.14of petroleum, liquefied gas, natural gas, water, or steam, in, by, or through pipes, lines,
116.15tanks, mains, or other means of transporting those products. This clause does not apply to
116.16machinery or equipment used to blend petroleum or biodiesel fuel as defined in section
116.17239.77
; or
116.18(10) any other item that is not essential to the integrated process of manufacturing,
116.19fabricating, mining, or refining.
116.20(d) For purposes of this subdivision:
116.21(1) "Equipment" means independent devices or tools separate from machinery but
116.22essential to an integrated production process, including computers and computer software,
116.23used in operating, controlling, or regulating machinery and equipment; and any subunit or
116.24assembly comprising a component of any machinery or accessory or attachment parts of
116.25machinery, such as tools, dies, jigs, patterns, and molds.
116.26(2) "Fabricating" means to make, build, create, produce, or assemble components or
116.27property to work in a new or different manner.
116.28(3) "Integrated production process" means a process or series of operations through
116.29which tangible personal property is manufactured, fabricated, mined, or refined. For
116.30purposes of this clause, (i) manufacturing begins with the removal of raw materials
116.31from inventory and ends when the last process prior to loading for shipment has been
116.32completed; (ii) fabricating begins with the removal from storage or inventory of the
116.33property to be assembled, processed, altered, or modified and ends with the creation
116.34or production of the new or changed product; (iii) mining begins with the removal of
116.35overburden from the site of the ores, minerals, stone, peat deposit, or surface materials and
116.36ends when the last process before stockpiling is completed; and (iv) refining begins with
117.1the removal from inventory or storage of a natural resource and ends with the conversion
117.2of the item to its completed form.
117.3(4) "Machinery" means mechanical, electronic, or electrical devices, including
117.4computers and computer software, that are purchased or constructed to be used for the
117.5activities set forth in paragraph (a), beginning with the removal of raw materials from
117.6inventory through completion of the product, including packaging of the product.
117.7(5) "Machinery and equipment used for pollution control" means machinery and
117.8equipment used solely to eliminate, prevent, or reduce pollution resulting from an activity
117.9described in paragraph (a).
117.10(6) "Manufacturing" means an operation or series of operations where raw materials
117.11are changed in form, composition, or condition by machinery and equipment and which
117.12results in the production of a new article of tangible personal property. For purposes of
117.13this subdivision, "manufacturing" includes the generation of electricity or steam to be
117.14sold at retail.
117.15(7) "Mining" means the extraction of minerals, ores, stone, or peat.
117.16(8) "Online data retrieval system" means a system whose cumulation of information
117.17is equally available and accessible to all its customers.
117.18(9) "Primarily" means machinery and equipment used 50 percent or more of the time
117.19in an activity described in paragraph (a).
117.20(10) "Refining" means the process of converting a natural resource to an intermediate
117.21or finished product, including the treatment of water to be sold at retail.
117.22(11) This subdivision does not apply to telecommunications equipment as
117.23provided in subdivision 35, and does not apply to wire, cable, fiber, poles, or conduit
117.24for telecommunications services.
117.25
new text begin (e) Materials exempt under this section may be purchased without imposing and new text end
117.26
new text begin collecting the tax and applying for a refund under section 297A.75, provided that:new text end
117.27
new text begin (1) the purchaser employed not more than 50 full-time employees at any time new text end
117.28
new text begin during the calendar year that is immediately prior to the calendar year of the sale and new text end
117.29
new text begin purchase; and new text end
117.30
new text begin (2) if another business owns at least 20 percent of the purchaser, then the sum of the new text end
117.31
new text begin number of full-time employees employed by the purchaser and the number of full-time new text end
117.32
new text begin employees employed by any other business that owns at least 20 percent of the purchaser's new text end
117.33
new text begin business is not more than 50 full-time employees at any time during the calendar year that new text end
117.34
new text begin is immediately prior to the calendar year of the sale and purchase. This clause must be new text end
117.35
new text begin applied for each business that owns at least 20 percent of the purchaser.new text end
118.1
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for sales and purchases made after new text end
118.2
new text begin June 30, 2012.new text end
118.3 Sec. 5. Minnesota Statutes 2011 Supplement, section 297A.68, subdivision 42, is
118.4amended to read:
118.5 Subd. 42.
Qualified data centers. (a) Purchases of enterprise information
118.6technology equipment and computer software for use in a qualified data center are exempt.
118.7The tax on purchases exempt under this paragraph must be imposed and collected as if
118.8the rate under section
297A.62, subdivision 1, applied, and then refunded after June 30,
118.92013, in the manner provided in section
297A.75. This exemption includes enterprise
118.10information technology equipment and computer software purchased to replace or upgrade
118.11enterprise information technology equipment and computer software in a qualified data
118.12center.
118.13(b) Electricity used or consumed in the operation of a qualified data center is exempt.
118.14(c) For purposes of this subdivision, "qualified data center" means a facility in
118.15Minnesota:
118.16(1) that is comprised of one or more buildings that consist in the aggregate of
118.17at least 30,000 square feet, and that are located on a single parcel or on contiguous
118.18parcels, where the total cost of construction or refurbishment, investment in enterprise
118.19information technology equipment, and computer software is at least $50,000,000 within
118.20a 24-month period;
118.21(2) that is constructed or substantially refurbished after June 30, 2012, where
118.22"substantially refurbished" means that at least 30,000
new text begin 25,000new text end square feet have been rebuilt
118.23or modified; and
new text begin , including:new text end
118.24
new text begin (i) installation of enterprise information technology equipment, computer software, new text end
118.25
new text begin environmental control and energy efficiency improvements; andnew text end
118.26
new text begin (ii) building improvements; andnew text end
118.27(3) that is used to house enterprise information technology equipment, where the
118.28facility has the following characteristics:
118.29(i) uninterruptible power supplies, generator backup power, or both;
118.30(ii) sophisticated fire suppression and prevention systems; and
118.31(iii) enhanced security. A facility will be considered to have enhanced security if it
118.32has restricted access to the facility to selected personnel; permanent security guards; video
118.33camera surveillance; an electronic system requiring pass codes, keycards, or biometric
118.34scans, such as hand scans and retinal or fingerprint recognition; or similar security features.
119.1In determining whether the facility has the required square footage, the square
119.2footage of the following spaces shall be included if the spaces support the operation
119.3of enterprise information technology equipment: office space, meeting space, and
119.4mechanical and other support facilities.
new text begin For purposes of this subdivision, "computer new text end
119.5
new text begin software" includes, but is not limited to, software utilized or loaded at the qualified data new text end
119.6
new text begin center, including maintenance, licensing, and software customization.new text end
119.7(d) For purposes of this subdivision, "enterprise information technology equipment"
119.8means computers and equipment supporting computing, networking, or data storage,
119.9including servers and routers. It includes, but is not limited to: cooling systems,
119.10cooling towers, and other temperature control infrastructure; power infrastructure for
119.11transformation, distribution, or management of electricity used for the maintenance
119.12and operation of a qualified data center, including but not limited to exterior dedicated
119.13business-owned substations, backup power generation systems, battery systems, and
119.14related infrastructure; and racking systems, cabling, and trays, which are necessary for
119.15the maintenance and operation of the qualified data center.
119.16(e) A qualified data center may claim the exemptions in this subdivision for
119.17purchases made either within 20 years of the date of its first purchase qualifying for the
119.18exemption under paragraph (a), or by June 30, 2042, whichever is earlier.
119.19(f) The purpose of this exemption is to create jobs in the construction and data
119.20center industries.
119.21(g) This subdivision is effective for sales and purchases made after June 30, 2012,
119.22and before July 1, 2042.
119.23
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for sales and purchases made after new text end
119.24
new text begin June 30, 2012.new text end
119.25 Sec. 6. Minnesota Statutes 2010, section 297A.70, subdivision 4, is amended to read:
119.26 Subd. 4.
Sales to nonprofit groups. (a) All sales, except those listed in paragraph
119.27(b), to the following "nonprofit organizations" are exempt:
119.28(1) a corporation, society, association, foundation, or institution organized and
119.29operated exclusively for charitable, religious, or educational purposes if the item
119.30purchased is used in the performance of charitable, religious, or educational functions; and
119.31(2) any senior citizen group or association of groups that:
119.32(i) in general limits membership to persons who are either age 55 or older, or
119.33physically disabled;
120.1(ii) is organized and operated exclusively for pleasure, recreation, and other
120.2nonprofit purposes, not including housing, no part of the net earnings of which inures to
120.3the benefit of any private shareholders; and
120.4(iii) is an exempt organization under section 501(c) of the Internal Revenue Code.
120.5For purposes of this subdivision, charitable purpose includes the maintenance of a
120.6cemetery owned by a religious organization.
120.7(b) This exemption does not apply to the following sales:
120.8(1) building, construction, or reconstruction materials purchased by a contractor
120.9or a subcontractor as a part of a lump-sum contract or similar type of contract with a
120.10guaranteed maximum price covering both labor and materials for use in the construction,
120.11alteration, or repair of a building or facility;
120.12(2) construction materials purchased by tax-exempt entities or their contractors to
120.13be used in constructing buildings or facilities that will not be used principally by the
120.14tax-exempt entities; and
120.15(3) lodging as defined under section
297A.61, subdivision 3, paragraph (g), clause
120.16(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section
120.17297A.67, subdivision 2
, except wine purchased by an established religious organization
120.18for sacramental purposes
new text begin or as allowed under subdivision 9anew text end ; and
120.19(4) leasing of a motor vehicle as defined in section
297B.01, subdivision 11, except
120.20as provided in paragraph (c).
120.21(c) This exemption applies to the leasing of a motor vehicle as defined in section
120.22297B.01, subdivision 11
, only if the vehicle is:
120.23(1) a truck, as defined in section
168.002, a bus, as defined in section
168.002, or a
120.24passenger automobile, as defined in section
168.002, if the automobile is designed and
120.25used for carrying more than nine persons including the driver; and
120.26(2) intended to be used primarily to transport tangible personal property or
120.27individuals, other than employees, to whom the organization provides service in
120.28performing its charitable, religious, or educational purpose.
120.29(d) A limited liability company also qualifies for exemption under this subdivision if
120.30(1) it consists of a sole member that would qualify for the exemption, and (2) the items
120.31purchased qualify for the exemption.
120.32
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for sales and purchases made after new text end
120.33
new text begin June 30, 2012.new text end
120.34 Sec. 7. Minnesota Statutes 2010, section 297A.70, is amended by adding a subdivision
120.35to read:
121.1
new text begin Subd. 9a.new text end new text begin Established religious orders.new text end new text begin (a) Sales of lodging, prepared food, candy, new text end
121.2
new text begin soft drinks, and alcoholic beverages at noncatered events between an established religious new text end
121.3
new text begin order and an affiliated institution of higher education are exempt.new text end
121.4
new text begin (b) For purposes of this subdivision, "established religious order" means an new text end
121.5
new text begin organization directly or indirectly under the control or supervision of a church or new text end
121.6
new text begin convention or association of churches, where members of the organization (1) normally new text end
121.7
new text begin live together as part of a community, (2) make long-term commitments to live under a new text end
121.8
new text begin strict set of moral and spiritual rules, and (3) work or engage full time in a combination new text end
121.9
new text begin of prayer, religious study, church reform or renewal, or other religious, educational, or new text end
121.10
new text begin charitable goals of the organization.new text end
121.11
new text begin (c) For purposes of this subdivision, an institution of higher education is "affiliated" new text end
121.12
new text begin with an established religious order if members of the religious order are represented new text end
121.13
new text begin on the governing board of the institution of higher education and the two organization new text end
121.14
new text begin share campus space and common facilities.new text end
121.15
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for sales and purchases made after new text end
121.16
new text begin June 30, 2012.new text end
121.17 Sec. 8. Minnesota Statutes 2010, section 297A.70, is amended by adding a subdivision
121.18to read:
121.19
new text begin Subd. 18.new text end new text begin Nursing homes and boarding care homes.new text end new text begin (a) All sales, except those new text end
121.20
new text begin listed in paragraph (b), to a nursing home licensed under section 144A.02 or a boarding new text end
121.21
new text begin care home certified as a nursing facility under title 19 of the Social Security Act are new text end
121.22
new text begin exempt if the facility:new text end
121.23
new text begin (1) is exempt from federal income taxation pursuant to section 501(c)(3) of the new text end
121.24
new text begin Internal Revenue Code; andnew text end
121.25
new text begin (2) is certified to participate in the medical assistance program under title 19 of the new text end
121.26
new text begin Social Security Act, or certifies to the commissioner that it does not discharge residents new text end
121.27
new text begin due to the inability to pay.new text end
121.28
new text begin (b) This exemption does not apply to the following sales:new text end
121.29
new text begin (1) building, construction, or reconstruction materials purchased by a contractor new text end
121.30
new text begin or a subcontractor as a part of a lump-sum contract or similar type of contract with a new text end
121.31
new text begin guaranteed maximum price covering both labor and materials for use in the construction, new text end
121.32
new text begin alteration, or repair of a building or facility;new text end
121.33
new text begin (2) construction materials purchased by tax-exempt entities or their contractors to new text end
121.34
new text begin be used in constructing buildings or facilities that will not be used principally by the new text end
121.35
new text begin tax-exempt entities;new text end
122.1
new text begin (3) lodging as defined under section new text end
new text begin 297A.61, subdivision 3new text end new text begin , paragraph (g), clause new text end
122.2
new text begin (2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section new text end
122.3
new text begin 297A.67, subdivision 2new text end new text begin ; andnew text end
122.4
new text begin (4) leasing of a motor vehicle as defined in section new text end
new text begin 297B.01, subdivision 11new text end new text begin , except new text end
122.5
new text begin as provided in paragraph (c).new text end
122.6
new text begin (c) This exemption applies to the leasing of a motor vehicle as defined in section new text end
122.7
new text begin 297B.01, subdivision 11new text end new text begin , only if the vehicle is:new text end
122.8
new text begin (1) a truck, as defined in section new text end
new text begin ; a bus, as defined in section new text end
new text begin ; or a new text end
122.9
new text begin passenger automobile, as defined in section new text end
new text begin , if the automobile is designed and new text end
122.10
new text begin used for carrying more than nine persons including the driver; andnew text end
122.11
new text begin (2) intended to be used primarily to transport tangible personal property or residents new text end
122.12
new text begin of the nursing home or boarding care home.new text end
122.13
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for sales and purchases made after new text end
122.14
new text begin June 30, 2012.new text end
122.15 Sec. 9. Minnesota Statutes 2010, section 297A.815, subdivision 3, is amended to read:
122.16 Subd. 3.
Motor vehicle lease sales tax revenue. (a) For purposes of this
122.17subdivision, "net revenue" means an amount equal to:
122.18 (1) the revenues, including interest and penalties, collected under this section
new text begin and new text end
122.19
new text begin on the leases under section 297A.61, subdivision 4, paragraph (k), clause (3)new text end , during
122.20the fiscal year; less
122.21 (2) in fiscal year 2011, $30,100,000; in fiscal year 2012, $31,100,000; and in fiscal
122.22year 2013 and following fiscal years, $32,000,000.
122.23 (b) On or before June 30 of each fiscal year, the commissioner of revenue shall
122.24estimate the amount of the revenues and subtraction under paragraph (a) for the current
122.25fiscal year.
122.26 (c) On or after July 1 of the subsequent fiscal year, the commissioner of management
122.27and budget shall transfer the net revenue as estimated in paragraph (b) from the general
122.28fund, as follows:
122.29 (1) 50 percent to the greater Minnesota transit account; and
122.30 (2) 50 percent to the county state-aid highway fund. Notwithstanding any other law
122.31to the contrary, the commissioner of transportation shall allocate the funds transferred
122.32under this clause to the counties in the metropolitan area, as defined in section
473.121,
122.33subdivision 4, excluding the counties of Hennepin and Ramsey, so that each county shall
122.34receive of such amount the percentage that its population, as defined in section
477A.011,
123.1subdivision 3, estimated or established by July 15 of the year prior to the current calendar
123.2year, bears to the total population of the counties receiving funds under this clause.
123.3 (d) For fiscal years 2010 and 2011, the amount under paragraph (a), clause (1), must
123.4be calculated using the following percentages of the total revenues:
123.5 (1) for fiscal year 2010, 83.75 percent; and
123.6 (2) for fiscal year 2011, 93.75 percent.
123.7
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for leases entered into after June new text end
123.8
new text begin 30, 2012.new text end
123.9 Sec. 10. Minnesota Statutes 2010, section 297A.8155, is amended to read:
123.10
297A.8155 LIQUOR REPORTING REQUIREMENTS; PENALTY.
123.11 A person who sells liquor, as defined in section
295.75, subdivision 1, in Minnesota
123.12to a retailer that sells liquor, shall file with the commissioner an annual informational
123.13report, in the form and manner prescribed by the commissioner, indicating the name,
123.14address, and Minnesota business identification number of each retailer, and the total
123.15dollar amount of liquor sold to each retailer in the previous calendar year. The report
123.16must be filed on or before March 31 following the close of the calendar year. A person
123.17failing to file this report is subject to the penalty imposed under section
289A.60.
new text begin A new text end
123.18
new text begin person required to file a report under this section is not required to provide a copy of an new text end
123.19
new text begin exemption certificate, as defined in section 297A.72, provided to the person by a retailer, new text end
123.20
new text begin along with the annual informational report.new text end
123.21
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for reports required to be filed new text end
123.22
new text begin beginning in calendar year 2012 and thereafter.new text end
123.23 Sec. 11. Laws 1998, chapter 389, article 8, section 43, subdivision 3, as amended by
123.24Laws 2005, First Special Session chapter 3, article 5, section 28, and Laws 2011, First
123.25Special Session chapter 7, article 4, section 5, is amended to read:
123.26 Subd. 3.
Use of revenues. (a) Revenues received from the taxes authorized by
123.27subdivisions 1 and 2 must be used by the city to pay for the cost of collecting and
123.28administering the taxes and to pay for the following projects:
123.29 (1) transportation infrastructure improvements including regional highway and
123.30airport improvements;
123.31 (2) improvements to the civic center complex;
123.32 (3) a municipal water, sewer, and storm sewer project necessary to improve regional
123.33ground water quality; and
124.1 (4) construction of a regional recreation and sports center and other higher education
124.2facilities available for both community and student use.
124.3 (b) The total amount of capital expenditures or bonds for projects listed in paragraph
124.4(a) that may be paid from the revenues raised from the taxes authorized in this section
124.5may not exceed $111,500,000. The total amount of capital expenditures or bonds for the
124.6project in clause (4) that may be paid from the revenues raised from the taxes authorized
124.7in this section may not exceed $28,000,000.
124.8 (c) In addition to the projects authorized in paragraph (a) and not subject to the
124.9amount stated in paragraph (b), the city of Rochester may, if approved by the voters at an
124.10election under subdivision 5, paragraph (c), use the revenues received from the taxes and
124.11bonds authorized in this section to pay the costs of or bonds for the following purposes:
124.12 (1) $17,000,000 for capital expenditures and bonds for the following Olmsted
124.13County transportation infrastructure improvements:
124.14 (i) County State Aid Highway 34 reconstruction;
124.15 (ii) Trunk Highway 63 and County State Aid Highway 16 interchange;
124.16 (iii) phase II of the Trunk Highway 52 and County State Aid Highway 22
124.17interchange;
124.18 (iv) widening of County State Aid Highway 22 West Circle Drive; and
124.19 (v) 60th Avenue Northwest corridor preservation;
124.20 (2) $30,000,000 for city transportation projects including:
124.21 (i) Trunk Highway 52 and 65th Street interchange;
124.22 (ii) NW transportation corridor acquisition;
124.23 (iii) Phase I of the Trunk Highway 52 and County State Aid Highway 22 interchange;
124.24 (iv) Trunk Highway 14 and Trunk Highway 63 intersection;
124.25 (v) Southeast transportation corridor acquisition;
124.26 (vi) Rochester International Airport expansion; and
124.27 (vii) a transit operations center bus facility;
124.28 (3) $14,000,000 for the University of Minnesota Rochester academic and
124.29complementary facilities;
124.30 (4) $6,500,000 for the Rochester Community and Technical College/Winona State
124.31University career technical education and science and math facilities;
124.32 (5) $6,000,000 for the Rochester Community and Technical College regional
124.33recreation facilities at University Center Rochester;
124.34 (6) $20,000,000 for the Destination Medical Community Initiative;
124.35 (7) $8,000,000 for the regional public safety and 911 dispatch center facilities;
124.36 (8) $20,000,000 for a regional recreation/senior center;
125.1 (9) $10,000,000 for an economic development fund; and
125.2 (10) $8,000,000 for downtown infrastructure.
125.3 (d) No revenues from the taxes raised from the taxes authorized in subdivisions 1
125.4and 2 may be used to fund transportation improvements related to a railroad bypass that
125.5would divert traffic from the city of Rochester.
125.6 (e) The city shall use $5,000,000 of the money allocated to the purpose in paragraph
125.7(c), clause (9), for grants to the cities of Byron, Chatfield, Dodge Center, Dover, Elgin,
125.8Eyota, Kasson, Mantorville, Oronoco, Pine Island, Plainview, St. Charles, Stewartville,
125.9Zumbrota, Spring Valley, West Concord, and Hayfield
new text begin , and any other city with a 2010 new text end
125.10
new text begin population of at least 1,000 that has a city boundary within 25 miles of the geographic new text end
125.11
new text begin center of Rochester and is closer to Rochester than to any other city located wholly new text end
125.12
new text begin outside of the seven-county metropolitan area with a population of 20,000 or more,new text end
125.13for economic development projects that these communities would fund through their
125.14economic development authority or housing and redevelopment authority.
125.15
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
125.16 Sec. 12. Laws 2002, chapter 377, article 3, section 25, as amended by Laws 2009,
125.17chapter 88, article 4, section 19, and Laws 2010, chapter 389, article 5, section 3, is
125.18amended to read:
125.19 Sec. 25.
ROCHESTER LODGING TAX.
125.20 Subdivision 1.
Authorization. Notwithstanding Minnesota Statutes, section
125.21469.190
or
477A.016, or any other law, the city of Rochester may impose an additional
125.22tax of one percent on the gross receipts from the furnishing for consideration of lodging at
125.23a hotel, motel, rooming house, tourist court, or resort, other than the renting or leasing of it
125.24for a continuous period of 30 days or more.
125.25 Subd. 1a.
Authorization. Notwithstanding Minnesota Statutes, section
469.190
125.26or
477A.016, or any other law, and in addition to the tax authorized by subdivision 1,
125.27the city of Rochester may impose an additional tax of one
new text begin threenew text end percent on the gross
125.28receipts from the furnishing for consideration of lodging at a hotel, motel, rooming house,
125.29tourist court, or resort, other than the renting or leasing of it for a continuous period of
125.3030 days or more only upon the approval of the city governing body of a total financial
125.31package for the project.
125.32 Subd. 2.
Disposition of proceeds. (a) The gross proceeds from the tax imposed
125.33under subdivision 1 must be used by the city to fund a local convention or tourism bureau
125.34for the purpose of marketing and promoting the city as a tourist or convention center.
126.1 (b) The gross proceeds from the one
new text begin threenew text end percent tax imposed under subdivision
126.21a shall be used to pay for (1) construction, renovation, improvement, and expansion of
126.3the Mayo Civic Center and related skyway access, lighting, parking, or landscaping; and
126.4(2) for payment of any principal, interest, or premium on bonds issued to finance the
126.5construction, renovation, improvement, and expansion of the Mayo Civic Center Complex.
126.6 Subd. 2a.
Bonds. The city of Rochester may issue, without an election, general
126.7obligation bonds of the city, in one or more series, in the aggregate principal amount
126.8not to exceed $43,500,000, to pay for capital and administrative costs for the design,
126.9construction, renovation, improvement, and expansion of the Mayo Civic Center Complex,
126.10and related skyway, access, lighting, parking, and landscaping. The city may pledge
126.11the lodging tax authorized by subdivision 1a and the food and beverage tax authorized
126.12under Laws 2009, chapter 88, article 4, section 23, to the payment of the bonds. The debt
126.13represented by the bonds is not included in computing any debt limitations applicable to
126.14the city, and the levy of taxes required by Minnesota Statutes, section
475.61, to pay the
126.15principal of and interest on the bonds is not subject to any levy limitation or included in
126.16computing or applying any levy limitation applicable to the city.
126.17 Subd. 3.
Expiration of taxing authority. The authority of the city to impose a
126.18tax under subdivision 1a shall expire when the principal and interest on any bonds or
126.19other obligations issued prior to December 31, 2014
new text begin 2016new text end , to finance the construction,
126.20renovation, improvement, and expansion of the Mayo Civic Center Complex and related
126.21skyway access, lighting, parking, or landscaping have been paid, including any bonds
126.22issued to refund such bonds, or at an earlier time as the city shall, by ordinance, determine.
126.23Any funds remaining after completion of the project and retirement or redemption of the
126.24bonds shall be placed in the general fund of the city.
126.25
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day after the governing body of new text end
126.26
new text begin the city of Rochester and its chief clerical officer comply with Minnesota Statutes, section new text end
126.27
new text begin 645.021, subdivisions 2 and 3.new text end
126.28 Sec. 13. Laws 2005, First Special Session chapter 3, article 5, section 37, subdivision
126.292, is amended to read:
126.30 Subd. 2.
Use of revenues. (a) Revenues received from the tax authorized by
126.31subdivision 1 by the city of St. Cloud must be used for the cost of collecting and
126.32administering the tax and to pay all or part of the capital or administrative costs of the
126.33development, acquisition, construction, improvement, and securing and paying debt
126.34service on bonds or other obligations issued to finance the following regional projects as
127.1approved by the voters and specifically detailed in the referendum authorizing the tax
new text begin or new text end
127.2
new text begin extending the taxnew text end :
127.3 (1) St. Cloud Regional Airport;
127.4 (2) regional transportation improvements;
127.5 (3)
new text begin regional new text end community and aquatics centers
new text begin and facilitiesnew text end ;
127.6 (4) regional public libraries; and
127.7 (5) acquisition and improvement of regional park land and open space.
127.8 (b) Revenues received from the tax authorized by subdivision 1 by the cities of St.
127.9Joseph, Waite Park, Sartell, Sauk Rapids, and St. Augusta must be used for the cost of
127.10collecting and administering the tax and to pay all or part of the capital or administrative
127.11costs of the development, acquisition, construction, improvement, and securing and paying
127.12debt service on bonds or other obligations issued to fund the projects specifically approved
127.13by the voters at the referendum authorizing the tax
new text begin or extending the taxnew text end . The portion of
127.14revenues from the city going to fund the regional airport or regional library located in the
127.15city of St. Cloud will be as required under the applicable joint powers agreement.
127.16 (c) The use of revenues received from the taxes authorized in subdivision 1 for
127.17projects allowed under paragraphs (a) and (b) are limited to the amount authorized for
127.18each project under the enabling referendum.
127.19
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for the city that approves them the new text end
127.20
new text begin day after compliance by the governing body of each city with Minnesota Statutes, section new text end
127.21
new text begin 645.021, subdivision 3.new text end
127.22 Sec. 14. Laws 2005, First Special Session chapter 3, article 5, section 37, subdivision
127.234, is amended to read:
127.24 Subd. 4.
Termination of tax. The tax imposed in the cities of St. Joseph, St. Cloud,
127.25St. Augusta, Sartell, Sauk Rapids, and Waite Park under subdivision 1 expires when the
127.26city council determines that sufficient funds have been collected from the tax to retire or
127.27redeem the bonds and obligations authorized under subdivision 2, paragraph (a), but no
127.28later than December 31, 2018.
new text begin Notwithstanding Minnesota Statutes, section 297A.99, new text end
127.29
new text begin subdivision 3, paragraphs (a), (c), and (d), a city may extend the tax imposed under new text end
127.30
new text begin subdivision 1 through December 31, 2038, if approved under the referendum authorizing new text end
127.31
new text begin the tax under subdivision 1 or if approved by voters of the city at a general election held new text end
127.32
new text begin no later than November 6, 2017.new text end
128.1
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for the city that approves them the new text end
128.2
new text begin day after compliance by the governing body of each city with Minnesota Statutes, section new text end
128.3
new text begin 645.021, subdivision 3.new text end
128.4 Sec. 15. Laws 2008, chapter 366, article 7, section 19, subdivision 3, as amended by
128.5Laws 2011, First Special Session chapter 7, article 4, section 8, is amended to read:
128.6 Subd. 3.
Use of revenues. Notwithstanding Minnesota Statutes, section
297A.99,
128.7subdivision 3
, paragraph (b), the proceeds of the tax imposed under this section shall be
128.8used to pay for the costs of
new text begin improvements to the Sportsman Park/Ballfields, Riverside new text end
128.9
new text begin Park, Lions Park/Pavilion, Cedar South Park also known as Eldorado Park, and Spring new text end
128.10
new text begin Street Park; improvements to and extension of the River County bike trail; new text end acquisition,
new text begin new text end
128.11
new text begin andnew text end construction, improvement, and development of regional parks, bicycle trails, park
128.12land, open space, and
new text begin of a new text end pedestrian walkways, as described in the city improvement plan
128.13adopted by the city council by resolution on December 12, 2006, and
new text begin walkway over new text end
128.14
new text begin Interstate 94 and State Highway 24; and the acquisition ofnew text end land and
new text begin construction of new text end
128.15buildings for a community and recreation center. The total amount of revenues from the
128.16taxes in subdivisions 1 and 2 that may be used to fund these projects is $12,000,000
128.17plus any associated bond costs.
128.18
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day after compliance by the new text end
128.19
new text begin governing body of the city of Clearwater with Minnesota Statutes, section 645.021, new text end
128.20
new text begin subdivisions 2 and 3.new text end
128.21 Sec. 16.
new text begin LIQUOR REPORTING REQUIREMENTS.new text end
128.22
new text begin A person who was required to submit an annual informational report under new text end
128.23
new text begin Minnesota Statutes, section 297A.8155, to the commissioner of revenue during calendar new text end
128.24
new text begin year 2010 or 2011 is not required to provide a copy of an exemption certificate or a new text end
128.25
new text begin retailer's tax identification number along with the informational report.new text end
128.26
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment new text end
128.27
new text begin and applies to reports required to be filed in calendar year 2010 or 2011.new text end
128.28 Sec. 17.
new text begin REPEALER.new text end
128.29
new text begin (a)new text end new text begin Minnesota Statutes 2011 Supplement, section 289A.60, subdivision 31,new text end new text begin is new text end
128.30
new text begin repealed. new text end
128.31
new text begin (b)new text end new text begin Laws 2009, chapter 88, article 4, section 23, as amended by Laws 2010, chapter new text end
128.32
new text begin 389, article 5, section 4, new text end new text begin is repealed.new text end
129.1
new text begin EFFECTIVE DATE.new text end new text begin Paragraph (a) is effective for taxes due and payable after June new text end
129.2
new text begin 30, 2012. Paragraph (b) is effective the day following final enactment.new text end
129.3
ARTICLE 10
129.4
LOCAL DEVELOPMENT
129.5 Section 1. Minnesota Statutes 2010, section 469.174, subdivision 2, is amended to read:
129.6 Subd. 2.
Authority. "Authority" means a rural development financing authority
129.7created pursuant to sections
469.142 to
469.151; a housing and redevelopment authority
129.8created pursuant to sections
469.001 to
469.047; a port authority created pursuant to
129.9sections
469.048 to
469.068; an economic development authority created pursuant to
129.10sections
469.090 to
469.108; a redevelopment agency as defined in sections
469.152 to
129.11469.165
; a municipality that is administering a development district created pursuant to
129.12sections
469.124 to
469.134 or any special law; a municipality that undertakes a project
129.13pursuant to sections
469.152 to
469.165, except a town located outside the metropolitan
129.14area or with a population of 5,000 persons or less;
new text begin a municipality that undertakes a project new text end
129.15
new text begin located in an area designated under subdivision 30; new text end or a municipality that exercises the
129.16powers of a port authority pursuant to any general or special law.
129.17
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
129.18 Sec. 2. Minnesota Statutes 2010, section 469.174, subdivision 10, is amended to read:
129.19 Subd. 10.
Redevelopment district. (a) "Redevelopment district" means a type of
129.20tax increment financing district consisting of a project, or portions of a project, within
129.21which the authority finds by resolution that one or more of the following conditions,
129.22reasonably distributed throughout the district, exists:
129.23 (1) parcels consisting of 70 percent of the area of the district are occupied by
129.24buildings, streets, utilities, paved or gravel parking lots, or other similar structures and
129.25more than 50 percent
new text begin or morenew text end of the buildings, not including outbuildings, are structurally
129.26substandard to a degree requiring substantial renovation or clearance;
129.27 (2) the property consists of vacant, unused, underused, inappropriately used, or
129.28infrequently used rail yards, rail storage facilities, or excessive or vacated railroad
129.29rights-of-way;
129.30 (3) tank facilities, or property whose immediately previous use was for tank
129.31facilities, as defined in section
115C.02, subdivision 15, if the tank facilities:
129.32 (i) have or had a capacity of more than 1,000,000 gallons;
129.33 (ii) are located adjacent to rail facilities; and
130.1 (iii) have been removed or are unused, underused, inappropriately used, or
130.2infrequently used; or
130.3 (4) a qualifying disaster area, as defined in subdivision 10b.
130.4 (b) For purposes of this subdivision, "structurally substandard" shall mean
130.5containing defects in structural elements or a combination of deficiencies in essential
130.6utilities and facilities, light and ventilation, fire protection including adequate egress,
130.7layout and condition of interior partitions, or similar factors, which defects or deficiencies
130.8are of sufficient total significance to justify substantial renovation or clearance.
130.9 (c) A building is not structurally substandard if it is in compliance with the building
130.10code applicable to new buildings or could be modified to satisfy the building code at
130.11a cost of less than 15 percent of the cost of constructing a new structure of the same
130.12square footage and type on the site. The municipality may find that a building is not
130.13disqualified as structurally substandard under the preceding sentence on the basis of
130.14reasonably available evidence, such as the size, type, and age of the building, the average
130.15cost of plumbing, electrical, or structural repairs, or other similar reliable evidence. The
130.16municipality may not make such a determination without an interior inspection of the
130.17property, but need not have an independent, expert appraisal prepared of the cost of repair
130.18and rehabilitation of the building. An interior inspection of the property is not required,
130.19if the municipality finds that (1) the municipality or authority is unable to gain access to
130.20the property after using its best efforts to obtain permission from the party that owns or
130.21controls the property; and (2) the evidence otherwise supports a reasonable conclusion that
130.22the building is structurally substandard. Items of evidence that support such a conclusion
130.23include recent fire or police inspections, on-site property tax appraisals or housing
130.24inspections, exterior evidence of deterioration, or other similar reliable evidence. Written
130.25documentation of the findings and reasons why an interior inspection was not conducted
130.26must be made and retained under section
469.175, subdivision 3, clause (1). Failure of a
130.27building to be disqualified under the provisions of this paragraph is a necessary, but not a
130.28sufficient, condition to determining that the building is substandard.
130.29 (d) A parcel is deemed to be occupied by a structurally substandard building
130.30for purposes of the finding under paragraph (a) or by the improvements described in
130.31paragraph (e) if all of the following conditions are met:
130.32 (1) the parcel was occupied by a substandard building or met the requirements
130.33of paragraph (e), as the case may be, within three years of the filing of the request for
130.34certification of the parcel as part of the district with the county auditor;
131.1 (2) the substandard building or the improvements described in paragraph (e) were
131.2demolished or removed by the authority or the demolition or removal was financed by the
131.3authority or was done by a developer under a development agreement with the authority;
131.4 (3) the authority found by resolution before the demolition or removal that the
131.5parcel was occupied by a structurally substandard building or met the requirements of
131.6paragraph (e) and that after demolition and clearance the authority intended to include
131.7the parcel within a district; and
131.8 (4) upon filing the request for certification of the tax capacity of the parcel as part
131.9of a district, the authority notifies the county auditor that the original tax capacity of the
131.10parcel must be adjusted as provided by section
469.177, subdivision 1, paragraph (f).
131.11 (e) For purposes of this subdivision, a parcel is not occupied by buildings, streets,
131.12utilities, paved or gravel parking lots, or other similar structures unless 15 percent of the
131.13area of the parcel contains buildings, streets, utilities, paved or gravel parking lots, or
131.14other similar structures.
131.15 (f) For districts consisting of two or more noncontiguous areas, each area must
131.16qualify as a redevelopment district under paragraph (a) to be included in the district, and
131.17the entire area of the district must satisfy paragraph (a).
131.18
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
131.19 Sec. 3. Minnesota Statutes 2010, section 469.174, is amended by adding a subdivision
131.20to read:
131.21
new text begin Subd. 19a.new text end new text begin Soil deficiency district.new text end new text begin "Soil deficiency district" means a type of tax new text end
131.22
new text begin increment financing district consisting of a project, or portions of a project, within which new text end
131.23
new text begin the authority finds by resolution that the following conditions exist:new text end
131.24
new text begin (1) parcels consisting of 70 percent of the area of the district contain unusual terrain new text end
131.25
new text begin or soil deficiencies which require substantial filling, grading, or other physical preparation new text end
131.26
new text begin for use and a parcel is eligible for inclusion if at least 50 percent of the area of the parcel new text end
131.27
new text begin requires substantial filling, grading, or other physical preparation for use; andnew text end
131.28
new text begin (2) the estimated cost of the physical preparation under clause (1), but excluding new text end
131.29
new text begin costs directly related to roads as defined in section 160.01, and local improvements as new text end
131.30
new text begin described in sections 429.021, subdivision 1, clauses (1) to (7), (11), and (12), and 430.01, new text end
131.31
new text begin exceeds the fair market value of the land before completion of the preparation.new text end
131.32
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for districts for which the request for new text end
131.33
new text begin certification is made after April 30, 2012.new text end
132.1 Sec. 4. Minnesota Statutes 2010, section 469.174, is amended by adding a subdivision
132.2to read:
132.3
new text begin Subd. 30.new text end new text begin Mining reclamation project area.new text end new text begin (a) An authority may designate an new text end
132.4
new text begin area within its jurisdiction as a mining reclamation project area by finding by resolution, new text end
132.5
new text begin that parcels consisting of at least 70 percent of the acreage, excluding street and railroad new text end
132.6
new text begin rights-of-way, are characterized by one or more of the following conditions:new text end
132.7
new text begin (1) peat or other soils with geotechnical deficiencies that impair development of new text end
132.8
new text begin buildings or infrastructure;new text end
132.9
new text begin (2) soils or terrain that requires substantial filling in order to permit the development new text end
132.10
new text begin of buildings or infrastructure;new text end
132.11
new text begin (3) landfills, dumps, or similar deposits of municipal or private waste;new text end
132.12
new text begin (4) quarries or similar resource extraction sites;new text end
132.13
new text begin (5) floodway; andnew text end
132.14
new text begin (6) substandard buildings, within the meaning of section 469.174, subdivision 10.new text end
132.15
new text begin (b) For the purposes of paragraph (a), clauses (1) to (5), a parcel is characterized by new text end
132.16
new text begin the relevant condition if at least 50 percent of the area of the parcel contains the relevant new text end
132.17
new text begin condition. For the purposes of paragraph (a), clause (6), a parcel is characterized by new text end
132.18
new text begin substandard buildings if substandard buildings occupy at least 30 percent of the area new text end
132.19
new text begin of the parcel.new text end
132.20
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for districts for which the request for new text end
132.21
new text begin certification is made after April 30, 2012.new text end
132.22 Sec. 5. Minnesota Statutes 2010, section 469.175, subdivision 3, is amended to read:
132.23 Subd. 3.
Municipality approval. (a) A county auditor shall not certify the original
132.24net tax capacity of a tax increment financing district until the tax increment financing plan
132.25proposed for that district has been approved by the municipality in which the district
132.26is located. If an authority that proposes to establish a tax increment financing district
132.27and the municipality are not the same, the authority shall apply to the municipality in
132.28which the district is proposed to be located and shall obtain the approval of its tax
132.29increment financing plan by the municipality before the authority may use tax increment
132.30financing. The municipality shall approve the tax increment financing plan only after a
132.31public hearing thereon after published notice in a newspaper of general circulation in the
132.32municipality at least once not less than ten days nor more than 30 days prior to the date
132.33of the hearing. The published notice must include a map of the area of the district from
132.34which increments may be collected and, if the project area includes additional area, a map
132.35of the project area in which the increments may be expended. The hearing may be held
133.1before or after the approval or creation of the project or it may be held in conjunction with
133.2a hearing to approve the project.
133.3 (b) Before or at the time of approval of the tax increment financing plan, the
133.4municipality shall make the following findings, and shall set forth in writing the reasons
133.5and supporting facts for each determination:
133.6 (1) that the proposed tax increment financing district is a redevelopment district, a
133.7renewal or renovation district, a housing district, a soils condition district,
new text begin soil deficiency new text end
133.8
new text begin district, new text end or an economic development district; if the proposed district is a redevelopment
133.9district or a renewal or renovation district, the reasons and supporting facts for the
133.10determination that the district meets the criteria of section
469.174, subdivision 10,
133.11paragraph (a), clauses (1) and (2), or subdivision 10a, must be documented in writing
133.12and retained and made available to the public by the authority until the district has been
133.13terminated;
133.14 (2) that, in the opinion of the municipality:
133.15 (i) the proposed development or redevelopment would not reasonably be expected to
133.16occur solely through private investment within the reasonably foreseeable future; and
133.17 (ii) the increased market value of the site that could reasonably be expected to occur
133.18without the use of tax increment financing would be less than the increase in the market
133.19value estimated to result from the proposed development after subtracting the present
133.20value of the projected tax increments for the maximum duration of the district permitted
133.21by the plan. The requirements of this item do not apply if the district is a housing district;
133.22 (3) that the tax increment financing plan conforms to the general plan for the
133.23development or redevelopment of the municipality as a whole;
133.24 (4) that the tax increment financing plan will afford maximum opportunity,
133.25consistent with the sound needs of the municipality as a whole, for the development or
133.26redevelopment of the project by private enterprise;
133.27 (5) that the municipality elects the method of tax increment computation set forth in
133.28section
469.177, subdivision 3, paragraph (b), if applicable
new text begin ; andnew text end
133.29
new text begin (6) that for a redevelopment district, renewal and renovation district, soils condition new text end
133.30
new text begin district, or soil deficiency district established by the authority in a mining reclamation new text end
133.31
new text begin project area, the reasons and supporting facts for the determination that the mining new text end
133.32
new text begin reclamation project area meets the requirements under section 469.174, subdivision 30, new text end
133.33
new text begin must be documented in writing and retained and made available to the public by the new text end
133.34
new text begin authority until two years after the district is decertified. These findings must have been new text end
133.35
new text begin made and documented no more than ten years before approval of the tax increment new text end
133.36
new text begin financing plan for the districtnew text end .
134.1 (c) When the municipality and the authority are not the same, the municipality shall
134.2approve or disapprove the tax increment financing plan within 60 days of submission by
134.3the authority. When the municipality and the authority are not the same, the municipality
134.4may not amend or modify a tax increment financing plan except as proposed by the
134.5authority pursuant to subdivision 4. Once approved, the determination of the authority
134.6to undertake the project through the use of tax increment financing and the resolution of
134.7the governing body shall be conclusive of the findings therein and of the public need for
134.8the financing.
134.9 (d) For a district that is subject to the requirements of paragraph (b), clause (2),
134.10item (ii), the municipality's statement of reasons and supporting facts must include all of
134.11the following:
134.12 (1) an estimate of the amount by which the market value of the site will increase
134.13without the use of tax increment financing;
134.14 (2) an estimate of the increase in the market value that will result from the
134.15development or redevelopment to be assisted with tax increment financing; and
134.16 (3) the present value of the projected tax increments for the maximum duration of
134.17the district permitted by the tax increment financing plan.
134.18 (e) For purposes of this subdivision, "site" means the parcels on which the
134.19development or redevelopment to be assisted with tax increment financing will be located.
134.20
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for districts for which the request for new text end
134.21
new text begin certification is made after April 30, 2012.new text end
134.22 Sec. 6. Minnesota Statutes 2010, section 469.176, subdivision 1b, is amended to read:
134.23 Subd. 1b.
Duration limits; terms. (a) No tax increment shall in any event be
134.24paid to the authority:
134.25(1) after 15 years after receipt by the authority of the first increment for a renewal
134.26and renovation district;
134.27(2) after 20 years after receipt by the authority of the first increment for a soils
134.28condition district
new text begin or a soil deficiency districtnew text end ;
134.29(3) after eight years after receipt by the authority of the first increment for an
134.30economic development district;
134.31(4) for a housing district, a compact development district, or a redevelopment
134.32district, after 25 years from the date of receipt by the authority of the first increment.
134.33(b) For purposes of determining a duration limit under this subdivision or subdivision
134.341e that is based on the receipt of an increment, any increments from taxes payable in
134.35the year in which the district terminates shall be paid to the authority. This paragraph
135.1does not affect a duration limit calculated from the date of approval of the tax increment
135.2financing plan or based on the recovery of costs or to a duration limit under subdivision
135.31c. This paragraph does not supersede the restrictions on payment of delinquent taxes in
135.4subdivision 1f.
135.5(c) An action by the authority to waive or decline to accept an increment has no
135.6effect for purposes of computing a duration limit based on the receipt of increment under
135.7this subdivision or any other provision of law. The authority is deemed to have received an
135.8increment for any year in which it waived or declined to accept an increment, regardless
135.9of whether the increment was paid to the authority.
135.10(d) Receipt by a hazardous substance subdistrict of an increment as a result of a
135.11reduction in original net tax capacity under section
469.174, subdivision 7, paragraph
135.12(b), does not constitute receipt of increment by the overlying district for the purpose of
135.13calculating the duration limit under this section.
135.14
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for districts for which the request for new text end
135.15
new text begin certification is made after April 30, 2012.new text end
135.16 Sec. 7. Minnesota Statutes 2010, section 469.176, subdivision 4b, is amended to read:
135.17 Subd. 4b.
Soils condition districts. Revenue derived from Tax increment from a
135.18soils condition district may be used only to (1) acquire parcels on which the improvements
135.19described in clause (2) will occur; (2) pay for the cost of removal or remedial action; and
135.20(3) pay for the administrative expenses of the authority allocable to the district, including
135.21the cost of preparation of the development action response plan.
new text begin For a soils condition new text end
135.22
new text begin district located in a mining reclamation project area, tax increments may also be expended new text end
135.23
new text begin on the additional cost of public improvements directly caused by the removal or remedial new text end
135.24
new text begin action and located within the mining reclamation project area.new text end
135.25
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for districts for which the request for new text end
135.26
new text begin certification is made after April 30, 2012.new text end
135.27 Sec. 8. Minnesota Statutes 2011 Supplement, section 469.176, subdivision 4c, is
135.28amended to read:
135.29 Subd. 4c.
Economic development districts. (a) Revenue derived from tax
135.30increment from an economic development district may not be used to provide
135.31improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form
135.32to developments consisting of buildings and ancillary facilities, if more than 15 percent
136.1of the buildings and facilities (determined on the basis of square footage) are used for a
136.2purpose other than:
136.3 (1) the manufacturing or production of tangible personal property, including
136.4processing resulting in the change in condition of the property;
136.5 (2) warehousing, storage, and distribution of tangible personal property, excluding
136.6retail sales;
136.7 (3) research and development related to the activities listed in clause (1) or (2);
136.8 (4) telemarketing if that activity is the exclusive use of the property;
136.9 (5) tourism facilities;
136.10 (6) qualified border retail facilities; or
136.11 (7) space necessary for and related to the activities listed in clauses (1) to (6).
136.12 (b) Notwithstanding the provisions of this subdivision, revenues derived from tax
136.13increment from an economic development district may be used to provide improvements,
136.14loans, subsidies, grants, interest rate subsidies, or assistance in any form for up to 15,000
136.15square feet of any separately owned commercial facility located within the municipal
136.16jurisdiction of a small city, if the revenues derived from increments are spent only to
136.17assist the facility directly or for administrative expenses, the assistance is necessary to
136.18develop the facility, and all of the increments, except those for administrative expenses,
136.19are spent only for activities within the district.
136.20 (c) A city is a small city for purposes of this subdivision if the city was a small city
136.21in the year in which the request for certification was made and applies for the rest of
136.22the duration of the district, regardless of whether the city qualifies or ceases to qualify
136.23as a small city.
136.24 (d) Notwithstanding the requirements of paragraph (a) and the finding requirements
136.25of section
469.174, subdivision 12, tax increments from an economic development district
136.26may be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or
136.27assistance in any form to developments consisting of buildings and ancillary facilities, if
136.28all the following conditions are met:
136.29 (1) the municipality finds that the project will create or retain jobs in this state,
136.30including construction jobs, and that construction of the project would not have
136.31commenced before July 1, 2012
new text begin January 1, 2014new text end , without the authority providing
136.32assistance under the provisions of this paragraph;
136.33 (2) construction of the project begins no later than July 1, 2012
new text begin January 1, 2014new text end ;
136.34 (3) the request for certification of the district is made no later than June 30, 2012
new text begin new text end
136.35
new text begin December 31, 2013new text end ; and
137.1 (4) for development of housing under this paragraph, the construction must begin
137.2before January 1, 2012.
137.3 The provisions of this paragraph may not be used to assist housing that is developed
137.4to qualify under section
469.1761, subdivision 2 or 3, or similar requirements of other law,
137.5if construction of the project begins later than July 1, 2011.
137.6
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
137.7 Sec. 9. Minnesota Statutes 2011 Supplement, section 469.176, subdivision 4m, is
137.8amended to read:
137.9 Subd. 4m.
Temporary authority to stimulate construction. (a) Notwithstanding
137.10the restrictions in any other subdivision of this section or any other law to the contrary,
137.11except the requirement to pay bonds to which the increments are pledged and the
137.12provisions of subdivisions 4g and 4h, the authority may spend tax increments for one or
137.13more of the following purposes:
137.14 (1) to provide improvements, loans, interest rate subsidies, or assistance in any
137.15form to private development consisting of the construction or substantial rehabilitation of
137.16buildings and ancillary facilities, if doing so will create or retain jobs in this state, including
137.17construction jobs, and that the construction commences before July 1, 2012
new text begin January 1, new text end
137.18
new text begin 2014new text end , and would not have commenced before that date without the assistance; or
137.19 (2) to make an equity or similar investment in a corporation, partnership, or limited
137.20liability company that the authority determines is necessary to make construction of a
137.21development that meets the requirements of clause (1) financially feasible.
137.22 (b) The authority may undertake actions under the authority of this subdivision only
137.23after approval by the municipality of a written spending plan that specifically authorizes
137.24the authority to take the actions.
new text begin The spending plan must contain a detailed description new text end
137.25
new text begin of each action to be undertaken. new text end The municipality shall approve the spending plan only
137.26after a public hearing after published notice in a newspaper of general circulation in
137.27the municipality at least once, not less than ten days nor more than 30 days prior to the
137.28date of the hearing.
137.29 (c) The authority to spend tax increments under this subdivision expires December
137.3031, 2012
new text begin June 30, 2014new text end .
137.31 (d) For a development consisting of housing, the authority to spend tax increments
137.32under this subdivision expires December 31, 2011, and construction must commence
137.33before July 1, 2011, except the authority to spend tax increments on market rate housing
137.34developments under this subdivision expires July 31, 2012, and construction must
137.35commence before January 1, 2012.
138.1
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment new text end
138.2
new text begin and applies to all tax increment financing districts, regardless of when the request for new text end
138.3
new text begin certification was made. The amendments to paragraph (b) apply to projects approved new text end
138.4
new text begin after June 30, 2012.new text end
138.5 Sec. 10. Minnesota Statutes 2010, section 469.176, is amended by adding a subdivision
138.6to read:
138.7
new text begin Subd. 4n.new text end new text begin Soil deficiency district.new text end new text begin Tax increments from a soil deficiency district new text end
138.8
new text begin may only be used to pay for the following costs for activities located within the mining new text end
138.9
new text begin reclamation project area:new text end
138.10
new text begin (1) acquisition of parcels on which the improvements described in clause (2) will new text end
138.11
new text begin occur;new text end
138.12
new text begin (2) the cost of correcting the unusual terrain or soil deficiencies and the additional new text end
138.13
new text begin cost of installing public improvements directly caused by the deficiencies;new text end
138.14
new text begin (3) administrative expenses of the authority allocable to the district; andnew text end
138.15
new text begin (4) costs described in subdivision 4j for the district, if these payments do not exceed new text end
138.16
new text begin 25 percent of the tax increment from the district.new text end
138.17
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for districts for which the request for new text end
138.18
new text begin certification is made after April 30, 2012.new text end
138.19 Sec. 11. Minnesota Statutes 2011 Supplement, section 469.1763, subdivision 2,
138.20is amended to read:
138.21 Subd. 2.
Expenditures outside district. (a) For each tax increment financing
138.22district, an amount equal to at least 75 percent of the total revenue derived from tax
138.23increments paid by properties in the district must be expended on activities in the district
138.24or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities
138.25in the district or to pay, or secure payment of, debt service on credit enhanced bonds.
138.26For districts, other than redevelopment districts for which the request for certification
138.27was made after June 30, 1995, the in-district percentage for purposes of the preceding
138.28sentence is 80 percent. Not more than 25 percent of the total revenue derived from tax
138.29increments paid by properties in the district may be expended, through a development fund
138.30or otherwise, on activities outside of the district but within the defined geographic area of
138.31the project except to pay, or secure payment of, debt service on credit enhanced bonds.
138.32For districts, other than redevelopment districts for which the request for certification was
138.33made after June 30, 1995, the pooling percentage for purposes of the preceding sentence is
138.3420 percent. The revenue derived from tax increments for the district that are expended on
139.1costs under section
469.176, subdivision 4h, paragraph (b), may be deducted first before
139.2calculating the percentages that must be expended within and without the district.
139.3 (b) In the case of a housing district, a housing project, as defined in section
469.174,
139.4subdivision 11
, is an activity in the district.
139.5 (c) All administrative expenses are for activities outside of the district, except that
139.6if the only expenses for activities outside of the district under this subdivision are for
139.7the purposes described in paragraph (d), administrative expenses will be considered as
139.8expenditures for activities in the district.
139.9 (d) The authority may elect, in the tax increment financing plan for the district,
139.10to increase by up to ten percentage points the permitted amount of expenditures for
139.11activities located outside the geographic area of the district under paragraph (a). As
139.12permitted by section
469.176, subdivision 4k, the expenditures, including the permitted
139.13expenditures under paragraph (a), need not be made within the geographic area of the
139.14project. Expenditures that meet the requirements of this paragraph are legally permitted
139.15expenditures of the district, notwithstanding section
469.176, subdivisions 4b, 4c,new text begin 4d,new text end and
139.164j
. To qualify for the increase under this paragraph, the expenditures must:
139.17 (1) be used exclusively to assist housing that
139.18
new text begin (i)new text end meets the requirement for a qualified low-income building, as that term is used in
139.19section 42 of the Internal Revenue Code; and
139.20 (2)
new text begin (ii) doesnew text end not exceed the qualified basis of the housing, as defined under section
139.2142(c) of the Internal Revenue Code, less the amount of any credit allowed under section
139.2242 of the Internal Revenue Code; and
139.23 (3) be
new text begin (iii) isnew text end used to:
139.24 (i)
new text begin (A)new text end acquire and prepare the site of the housing;
139.25 (ii)
new text begin (B)new text end acquire, construct, or rehabilitate the housing; or
139.26 (iii)
new text begin (C)new text end make public improvements directly related to the housing; or
139.27(4)
new text begin (2)new text end be used to develop housing:
139.28(i) if the market value of the housing
new text begin prior to demolition or rehabilitation new text end does
139.29not exceed the lesser of:
139.30(A) 150 percent of the average market value of single-family homes in that
139.31municipality; or
139.32(B) $200,000 for municipalities located in the metropolitan area, as defined in
139.33section
473.121, or $125,000 for all other municipalities; and
139.34(ii) if the expenditures are used to pay the cost of site acquisition, relocation,
139.35demolition of existing structures, site preparation,
new text begin rehabilitation,new text end and pollution abatement
139.36on one or more parcels, if
new text begin provided thatnew text end the parcel contains a residence containing
new text begin is new text end
140.1
new text begin occupied bynew text end one to four family dwelling units that has been vacant for six or more months
140.2and is in foreclosure as defined in section
325N.10, subdivision 7, but without regard to
140.3whether the residence is the owner's principal residence, and only after the redemption
140.4period stated in the notice provided under section
has expired
new text begin with respect to which new text end
140.5
new text begin a mortgage was foreclosed under chapter 580, 581, or 582; any applicable redemption new text end
140.6
new text begin period has expired without redemptionnew text end new text begin ; and the authority or developer enters into a new text end
140.7
new text begin purchase agreement to acquire the parcel no earlier than 30 days after expiration of the new text end
140.8
new text begin redemption periodnew text end .
140.9 (e) For a district created within a biotechnology and health sciences industry zone
140.10as defined in section
469.330, subdivision 6, or for an existing district located within
140.11such a zone, tax increment derived from such a district may be expended outside of the
140.12district but within the zone only for expenditures required for the construction of public
140.13infrastructure necessary to support the activities of the zone, land acquisition, and other
140.14redevelopment costs as defined in section
469.176, subdivision 4j. These expenditures are
140.15considered as expenditures for activities within the district.
140.16(f) The authority under paragraph (d), clause (4)
new text begin (2)new text end , expires on December 31, 2016.
140.17Increments may continue to be expended under this authority after that date, if they are
140.18used to pay bonds or binding contracts that would qualify under subdivision 3, paragraph
140.19(a), if December 31, 2016, is considered to be the last date of the five-year period after
140.20certification under that provision.
140.21
new text begin (g) The authority may elect, in the tax increment financing plan, for a district located new text end
140.22
new text begin in a mining reclamation area that "activities within the district" under paragraph (a) new text end
140.23
new text begin includes activities within the geographic area of the mining reclamation area.new text end
140.24
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for any district that is subject to new text end
140.25
new text begin the provisions of Minnesota Statutes, section 469.1763, regardless of when the request new text end
140.26
new text begin for certification was made, except the amendment adding paragraph (g) is effective for new text end
140.27
new text begin districts for which the request for certification was made after April 30, 2012.new text end
140.28 Sec. 12. Minnesota Statutes 2010, section 469.1763, subdivision 3, is amended to read:
140.29 Subd. 3.
Five-year rule. (a) Revenues derived from tax increments are considered
140.30to have been expended on an activity within the district under subdivision 2 only if one
140.31of the following occurs:
140.32(1) before or within five years after certification of the district, the revenues are
140.33actually paid to a third party with respect to the activity;
140.34(2) bonds, the proceeds of which must be used to finance the activity, are issued and
140.35sold to a third party before or within five years after certification, the revenues are spent
141.1to repay the bonds, and the proceeds of the bonds either are, on the date of issuance,
141.2reasonably expected to be spent before the end of the later of (i) the five-year period, or
141.3(ii) a reasonable temporary period within the meaning of the use of that term under section
141.4148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required reserve
141.5or replacement fund;
141.6(3) binding contracts with a third party are entered into for performance of the
141.7activity before or within five years after certification of the district and the revenues are
141.8spent under the contractual obligation;
141.9(4) costs with respect to the activity are paid before or within five years after
141.10certification of the district and the revenues are spent to reimburse a party for payment
141.11of the costs, including interest on unreimbursed costs; or
141.12(5) expenditures are made for housing purposes as permitted by subdivision 2,
141.13paragraphs (b) and (d), or for public infrastructure purposes within a zone as permitted
141.14by subdivision 2, paragraph (e).
141.15(b) For purposes of this subdivision, bonds include subsequent refunding bonds if
141.16the original refunded bonds meet the requirements of paragraph (a), clause (2).
141.17(c) For a redevelopment district or a renewal and renovation district certified after
141.18June 30, 2003, and before April 20, 2009, the five-year periods described in paragraph
141.19(a) are extended to ten years after certification of the district. This extension is provided
141.20primarily to accommodate delays in development activities due to unanticipated economic
141.21circumstances.
141.22
new text begin (d) If the authority so elects in the tax increment financing plan for a redevelopment new text end
141.23
new text begin district, renewal and renovation district, soils condition district, or soil deficiency district new text end
141.24
new text begin located in a mining reclamation project area, the five-year periods described in paragraph new text end
141.25
new text begin (a) do not apply.new text end
141.26
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for districts for which the request for new text end
141.27
new text begin certification is made after April 30, 2012.new text end
141.28 Sec. 13. Minnesota Statutes 2010, section 469.1763, subdivision 4, is amended to read:
141.29 Subd. 4.
Use of revenues for decertification. (a) In each year beginning with the
141.30sixth year following certification of the district, if the applicable in-district percent of the
141.31revenues derived from tax increments paid by properties in the district exceeds the amount
141.32of expenditures that have been made for costs permitted under subdivision 3, an amount
141.33equal to the difference between the in-district percent of the revenues derived from tax
141.34increments paid by properties in the district and the amount of expenditures that have
142.1been made for costs permitted under subdivision 3 must be used and only used to pay or
142.2defease the following or be set aside to pay the following:
142.3(1) outstanding bonds, as defined in subdivision 3, paragraphs (a), clause (2), and (b);
142.4(2) contracts, as defined in subdivision 3, paragraph (a), clauses (3) and (4);
142.5(3) credit enhanced bonds to which the revenues derived from tax increments are
142.6pledged, but only to the extent that revenues of the district for which the credit enhanced
142.7bonds were issued are insufficient to pay the bonds and to the extent that the increments
142.8from the applicable pooling percent share for the district are insufficient; or
142.9(4) the amount provided by the tax increment financing plan to be paid under
142.10subdivision 2, paragraphs (b), (d), and (e).
142.11(b) The district must be decertified and the pledge of tax increment discharged
142.12when the outstanding bonds have been defeased and when sufficient money has been set
142.13aside to pay, based on the increment to be collected through the end of the calendar year,
142.14the following amounts:
142.15(1) contractual obligations as defined in subdivision 3, paragraph (a), clauses (3)
142.16and (4);
142.17(2) the amount specified in the tax increment financing plan for activities qualifying
142.18under subdivision 2, paragraph (b), that have not been funded with the proceeds of bonds
142.19qualifying under paragraph (a), clause (1); and
142.20(3) the additional expenditures permitted by the tax increment financing plan for
142.21housing activities under an election under subdivision 2, paragraph (d), that have not been
142.22funded with the proceeds of bonds qualifying under paragraph (a), clause (1).
142.23
new text begin (c) If the authority so elects in the tax increment financing plan for a redevelopment new text end
142.24
new text begin district, renewal and renovation district, soils condition district, or soil deficiency district new text end
142.25
new text begin located in a mining reclamation project area, the provisions of this section do not apply.new text end
142.26
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for districts for which the request for new text end
142.27
new text begin certification is made after April 30, 2012.new text end
142.28 Sec. 14. Laws 2008, chapter 366, article 5, section 34, as amended by Laws 2009,
142.29chapter 88, article 5, section 11, is amended to read:
142.30 Sec. 34.
CITY OF OAKDALE; ORIGINAL TAX CAPACITY.
142.31
new text begin Subdivision 1.new text end new text begin Original tax capacity election.new text end (a) The provisions of this section
142.32apply to redevelopment tax increment financing districts created by the Housing and
142.33Redevelopment Authority in and for the city of Oakdale in the areas comprised of
142.34the parcels with the following parcel identification numbers: (1) 3102921320053;
142.353102921320054; 3102921320055; 3102921320056; 3102921320057; 3102921320058;
143.13102921320062; 3102921320063; 3102921320059; 3102921320060; 3102921320061;
143.23102921330005; and 3102921330004; and (2) 2902921330001 and 2902921330005.
143.3 (b) For a district subject to this section, the Housing and Redevelopment Authority
143.4may, when requesting certification of the original tax capacity of the district under
143.5Minnesota Statutes, section
469.177, elect to have the original tax capacity of the district
143.6be certified as the tax capacity of the land.
143.7 (c) The authority to request certification of a district under this section expires on
143.8July 1, 2013
new text begin December 31, 2017new text end .
143.9
new text begin Subd. 2.new text end new text begin Parcels deemed occupied.new text end new text begin (a) Parcel numbers 3102921320054, new text end
143.10
new text begin 3102921320055, 3102921320056, 3102921320057, 3102921320061, and 3102921330004 new text end
143.11
new text begin are deemed to meet the requirements of Minnesota Statutes, section 469.174, subdivision new text end
143.12
new text begin 10, paragraph (d), notwithstanding any contrary provisions of that paragraph, if the new text end
143.13
new text begin following conditions are met:new text end
143.14
new text begin (1) a building located on any part of each of the specified parcels was demolished new text end
143.15
new text begin after the authority adopted a resolution under Minnesota Statutes, section 469.174, new text end
143.16
new text begin subdivision 10, paragraph (d), clause (3);new text end
143.17
new text begin (2) the building was removed either by the authority, by a developer under a new text end
143.18
new text begin development agreement with the authority, or by the owner of the property without new text end
143.19
new text begin entering into a development agreement with the authority; andnew text end
143.20
new text begin (3) the request for certification of the parcel as part of a district is filed with the new text end
143.21
new text begin county auditor by December 31, 2017.new text end
143.22
new text begin (b) The provisions of subdivision 1 apply to allow an election by the authority new text end
143.23
new text begin for the parcels deemed occupied under paragraph (a), notwithstanding the provisions new text end
143.24
new text begin of Minnesota Statutes, sections 469.174, subdivision 10, paragraph (d), and 469.177, new text end
143.25
new text begin subdivision 1, paragraph (f).new text end
143.26
new text begin EFFECTIVE DATE.new text end new text begin This section is effective upon compliance by the governing new text end
143.27
new text begin body of the city of Oakdale with the requirements of Minnesota Statutes, section 645.021, new text end
143.28
new text begin subdivision 3.new text end
143.29 Sec. 15.
new text begin CITY OF BLOOMINGTON; TAX INCREMENT FINANCING.new text end
143.30
new text begin Notwithstanding Minnesota Statutes, section 469.176, or Laws 1996, chapter 464, new text end
143.31
new text begin article 1, section 8, or any other law to the contrary, the city of Bloomington and its port new text end
143.32
new text begin authority may extend the duration limits of tax increment financing district No. 1-G, new text end
143.33
new text begin containing the former Met Center property, including Lindau Lane and that portion of tax new text end
143.34
new text begin increment financing district No. 1-C north of the existing building line on Lot 1, Block 1, new text end
143.35
new text begin Mall of America 7th Addition, exclusive of Lots 2 and 3, through December 31, 2038.new text end
144.1
new text begin EFFECTIVE DATE.new text end new text begin This section is effective upon compliance of the governing new text end
144.2
new text begin bodies of the city of Bloomington, Hennepin County, and Independent School District new text end
144.3
new text begin No. 271, Bloomington, with the requirements of Minnesota Statutes, sections 469.1782, new text end
144.4
new text begin subdivision 2, and 645.021, subdivision 3.new text end
144.5 Sec. 16.
new text begin CITY OF BLOOMINGTON; TAX INCREMENT FINANCING new text end
144.6
new text begin EXTENSION.new text end
144.7
new text begin Notwithstanding the provisions of Minnesota Statutes, section 469.176, or any other new text end
144.8
new text begin law to the contrary, the city of Bloomington and its port authority may extend the duration new text end
144.9
new text begin limits of Tax Increment Financing District No. 1-I, containing the Bloomington Central new text end
144.10
new text begin Station property for a period through December 31, 2038.new text end
144.11
new text begin EFFECTIVE DATE.new text end new text begin This section is effective upon compliance of the governing new text end
144.12
new text begin body of the city of Bloomington with the requirements of Minnesota Statutes, sections new text end
144.13
new text begin 469.1782, subdivision 2, and 645.021, subdivision 3.new text end
144.14 Sec. 17.
new text begin DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY; TAX new text end
144.15
new text begin INCREMENT FINANCING DISTRICT.new text end
144.16
new text begin Subdivision 1.new text end new text begin Authorization.new text end new text begin Notwithstanding the provisions of any other law, new text end
144.17
new text begin the Dakota County Community Development Agency may establish a redevelopment tax new text end
144.18
new text begin increment financing district comprised of the properties that (1) were included in the new text end
144.19
new text begin CDA 10 Robert and South Street district in the city of West St. Paul, and (2) were not new text end
144.20
new text begin decertified before July 1, 2012. The district created under this section terminates no later new text end
144.21
new text begin than December 31, 2027.new text end
144.22
new text begin Subd. 2.new text end new text begin Special rules.new text end new text begin The requirements for qualifying a redevelopment district new text end
144.23
new text begin under Minnesota Statutes, section 469.174, subdivision 10, do not apply to parcels located new text end
144.24
new text begin within the district. Minnesota Statutes, section 469.176, subdivisions 4g, paragraph (c), new text end
144.25
new text begin clause (1), item (ii), 4j, and 4l, do not apply to the district. The original tax capacity new text end
144.26
new text begin of the district is $93,239.new text end
144.27
new text begin Subd. 3.new text end new text begin Authorized expenditures.new text end new text begin Tax increment from the district may be new text end
144.28
new text begin expended to pay for any eligible activities authorized by Minnesota Statutes, chapter new text end
144.29
new text begin 469, within the redevelopment area that includes the district. All such expenditures are new text end
144.30
new text begin deemed to be activities within the district under Minnesota Statutes, section 469.1763, new text end
144.31
new text begin subdivisions 2, 3, and 4.new text end
145.1
new text begin Subd. 4.new text end new text begin Adjusted net tax capacity.new text end new text begin The captured tax capacity of the district must new text end
145.2
new text begin be included in the adjusted net tax capacity of the city, county, and school district for the new text end
145.3
new text begin purposes of determining local government aid, education aid, and county program aid. new text end
145.4
new text begin The county auditor shall report to the commissioner of revenue the amount of the captured new text end
145.5
new text begin tax capacity for the district at the time the assessment abstracts are filed.new text end
145.6
new text begin EFFECTIVE DATE.new text end new text begin This section is effective upon compliance by the governing new text end
145.7
new text begin body of the Dakota County Community Development Agency with the requirements of new text end
145.8
new text begin Minnesota Statutes, section 645.021, subdivision 3.new text end
145.9 Sec. 18.
new text begin CITY OF BROOKLYN PARK; TAX INCREMENT FINANCING; new text end
145.10
new text begin SPECIAL RULES.new text end
145.11
new text begin The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that new text end
145.12
new text begin activities must be undertaken within a five-year period from the date of certification of a tax new text end
145.13
new text begin increment financing district, is considered to be met for Tax Increment Financing District new text end
145.14
new text begin No. 23 in the city of Brooklyn Park if the activities were undertaken by July 1, 2014.new text end
145.15
new text begin EFFECTIVE DATE.new text end new text begin This section is effective upon compliance by the governing new text end
145.16
new text begin body of the city of Brooklyn Park with the requirements of Minnesota Statutes, section new text end
145.17
new text begin 645.021, subdivision 3.new text end
145.18 Sec. 19.
new text begin ST. CLOUD; TAX INCREMENT FINANCING.new text end
145.19
new text begin The request for certification of Tax Increment District No. 2, commonly referred to new text end
145.20
new text begin as the Norwest District, in the city of St. Cloud is deemed to have been made on or after new text end
145.21
new text begin August 1, 1979, and before July 1, 1982. Revenues derived from tax increment for that new text end
145.22
new text begin district must be treated for purposes of any law as revenue of a tax increment financing new text end
145.23
new text begin district for which the request for certification was made during that time period.new text end
145.24
new text begin EFFECTIVE DATE.new text end new text begin This section is effective upon approval by the governing new text end
145.25
new text begin body of the city of St. Cloud and compliance with Minnesota Statutes, section 645.021, new text end
145.26
new text begin subdivision 3.new text end
145.27
ARTICLE 11
145.28
ESTATE TAXES
145.29 Section 1. Minnesota Statutes 2010, section 289A.10, is amended by adding a
145.30subdivision to read:
145.31
new text begin Subd. 1a.new text end new text begin Recapture tax return required.new text end new text begin If a disposition or cessation as provided new text end
145.32
new text begin by section 291.03, subdivision 11, paragraph (a), has occurred, the qualified heir, as new text end
146.1
new text begin defined under section 291.03, subdivision 8, paragraph (c), or personal representative of new text end
146.2
new text begin the decedent's estate must submit a recapture tax return to the commissioner.new text end
146.3
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for estates of decedents dying after new text end
146.4
new text begin June 30, 2011.new text end
146.5 Sec. 2. Minnesota Statutes 2010, section 289A.12, is amended by adding a subdivision
146.6to read:
146.7
new text begin Subd. 18.new text end new text begin Returns by qualified heirs.new text end new text begin Within 24 months and within 36 months new text end
146.8
new text begin after a decedent's death, a qualified heir, as defined under section 291.03, subdivision 8, new text end
146.9
new text begin paragraph (c), must file a return with the commissioner relating to the qualified property new text end
146.10
new text begin received from the decedent.new text end
146.11
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for estates of decedents dying after new text end
146.12
new text begin June 30, 2011.new text end
146.13 Sec. 3. Minnesota Statutes 2010, section 289A.18, is amended by adding a subdivision
146.14to read:
146.15
new text begin Subd. 3a.new text end new text begin Recapture tax return.new text end new text begin A recapture tax return is due within six months new text end
146.16
new text begin after the date of the disposition or cessation as provided by section 291.03, subdivision new text end
146.17
new text begin 11, paragraph (a).new text end
146.18
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for estates of decedents dying after new text end
146.19
new text begin June 30, 2011.new text end
146.20 Sec. 4. Minnesota Statutes 2010, section 289A.20, subdivision 3, is amended to read:
146.21 Subd. 3.
Estate tax. Taxes imposed by chapter 291
new text begin section 291.03, subdivision 1,new text end
146.22take effect at and upon the death of the person whose estate is subject to taxation and are
146.23due and payable on or before the expiration of nine months from that death.
146.24
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for estates of decedents dying after new text end
146.25
new text begin June 30, 2011.new text end
146.26 Sec. 5. Minnesota Statutes 2010, section 289A.20, is amended by adding a subdivision
146.27to read:
146.28
new text begin Subd. 3a.new text end new text begin Recapture tax.new text end new text begin Taxes imposed by section 291.03, subdivision 11, new text end
146.29
new text begin paragraph (b), are due and payable on or before the expiration of six months from the date new text end
146.30
new text begin of disposition or cessation as provided by section 291.03, subdivision 11, paragraph (a).new text end
147.1
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for estates of decedents dying after new text end
147.2
new text begin June 30, 2011.new text end
147.3 Sec. 6. Minnesota Statutes 2011 Supplement, section 291.03, subdivision 8, is
147.4amended to read:
147.5 Subd. 8.
Definitions. (a) For purposes of this section, the following terms have the
147.6meanings given in this subdivision.
147.7(b) "Family member" means a family member as defined in section 2032A(e)(2) of
147.8the Internal Revenue Code
new text begin or a trust whose present beneficiaries are all family members as new text end
147.9
new text begin defined in section 2032A(e)(2) of the Internal Revenue Codenew text end .
147.10(c) "Qualified heir" means a family member who acquired qualified property from
new text begin new text end
147.11
new text begin upon the death ofnew text end the decedent and satisfies the requirement under subdivision 9, clause
147.12(6)
new text begin (8)new text end , or subdivision 10, clause (4)
new text begin (5)new text end , for the property.
147.13(d) "Qualified property" means qualified small business property under subdivision
147.149 and qualified farm property under subdivision 10.
147.15
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for estates of decedents dying after new text end
147.16
new text begin June 30, 2011.new text end
147.17 Sec. 7. Minnesota Statutes 2011 Supplement, section 291.03, subdivision 9, is
147.18amended to read:
147.19 Subd. 9.
Qualified small business property. Property satisfying all of the following
147.20requirements is qualified small business property:
147.21(1) The value of the property was included in the federal adjusted taxable estate.
147.22(2) The property consists of the assets of a trade or business or shares of stock or
147.23other ownership interests in a corporation or other entity engaged in a trade or business.
147.24The decedent or the decedent's spouse must have materially participated in the trade or
147.25business within the meaning of section 469 of the Internal Revenue Code during the
147.26taxable year that ended before the date of the decedent's death. Shares of stock in a
147.27corporation or an ownership interest in another type of entity do not qualify under this
147.28subdivision if the shares or ownership interests are traded on a public stock exchange at
147.29any time during the three-year period ending on the decedent's date of death.
new text begin For purposes new text end
147.30
new text begin of this subdivision, an ownership interest includes the interest the decedent is deemed to new text end
147.31
new text begin own under sections 2036, 2037, and 2038 of the Internal Revenue Code.new text end
147.32
new text begin (3) During the decedent's taxable year that ended before the decedent's death, the new text end
147.33
new text begin trade or business must not have been a passive activity within the meaning of section new text end
147.34
new text begin 469(c) of the Internal Revenue Code and the decedent or the decedent's spouse must have new text end
148.1
new text begin materially participated in the trade or business within the meaning of section 469(h) of the new text end
148.2
new text begin Internal Revenue Code, excluding section 469(h)(3) of the Internal Revenue Code and new text end
148.3
new text begin any other provision provided by Treasury Department regulation that substitutes material new text end
148.4
new text begin participation in prior taxable years for material participation in the taxable year that ended new text end
148.5
new text begin before the decedent's death.new text end
148.6(3)
new text begin (4)new text end The gross annual sales of the trade or business were $10,000,000 or less for
148.7the last taxable year that ended before the date of the death of the decedent.
148.8(4)
new text begin (5)new text end The property does not consist of cash or
new text begin ,new text end cash equivalents
new text begin , publicly traded new text end
148.9
new text begin securities, or assets not used in the operation of the trade or businessnew text end . For property
148.10consisting of shares of stock or other ownership interests in an entity, the amount
new text begin valuenew text end of
148.11cash or
new text begin ,new text end cash equivalents
new text begin , publicly traded securities, or assets not used in the operation of new text end
148.12
new text begin the trade or businessnew text end held by the corporation or other entity must be deducted from the
148.13value of the property qualifying under this subdivision in proportion to the decedent's
148.14share of ownership of the entity on the date of death.
148.15
new text begin (6) The property does not consist of qualified farm property. For property consisting new text end
148.16
new text begin of shares of stock or other ownership interests in an entity, the value of the qualified new text end
148.17
new text begin farm property held by the corporation or other entity must be deducted from the value new text end
148.18
new text begin of the property qualifying under this subdivision in proportion to the decedent's share of new text end
148.19
new text begin ownership of the entity on the date of death.new text end
148.20(5)
new text begin (7)new text end The decedent continuously owned the property
new text begin , including property the new text end
148.21
new text begin decedent is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue new text end
148.22
new text begin Code,new text end for the three-year period ending on the date of death of the decedent.
new text begin In the case of new text end
148.23
new text begin a sole proprietor, if the property replaced similar property within the three-year period, new text end
148.24
new text begin the replacement property will be treated as having been owned for the three-year period new text end
148.25
new text begin ending on the date of death of the decedent.new text end
148.26(6) A family member continuously uses the property in the operation of the trade or
148.27business for three years following the date of death of the decedent.
148.28
new text begin (8) For three years following the date of death of the decedent, the trade or business new text end
148.29
new text begin is not a passive activity within the meaning of section 469(c) of the Internal Revenue new text end
148.30
new text begin Code and a family member materially participates in the operation of the trade or business new text end
148.31
new text begin within the meaning of section 469(h) of the Internal Revenue Code, excluding section new text end
148.32
new text begin 469(h)(3) of the Internal Revenue Code and any other provision provided by Treasury new text end
148.33
new text begin Department regulation that substitutes material participation in prior taxable years for new text end
148.34
new text begin material participation in the three years following the date of death of the decedent.new text end
149.1(7)
new text begin (9)new text end The estate and the qualified heir elect to treat the property as qualified small
149.2business property and agree, in the form prescribed by the commissioner, to pay the
149.3recapture tax under subdivision 11, if applicable.
149.4
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for estates of decedents dying after new text end
149.5
new text begin June 30, 2011.new text end
149.6 Sec. 8. Minnesota Statutes 2011 Supplement, section 291.03, subdivision 10, is
149.7amended to read:
149.8 Subd. 10.
Qualified farm property. Property satisfying all of the following
149.9requirements is qualified farm property:
149.10(1) The value of the property was included in the federal adjusted taxable estate.
149.11(2) The property consists of
new text begin agricultural land as defined by section 500.24, new text end
149.12
new text begin subdivision 2, paragraph (g), and owned bynew text end a farm meeting the requirements of
new text begin person new text end
149.13
new text begin or entity that is not excluded from owning agricultural land bynew text end section
500.24, and was
149.14classified for property tax purposes as the homestead of the decedent or the decedent's
149.15spouse or both under section
, and as class 2a property under section
273.13,
149.16subdivision 23
.
149.17(3)
new text begin For property taxes payable in the year of decedent's death, the decedent's interest new text end
149.18
new text begin in the property was classified as the homestead of the decedent or the decedent's spouse or new text end
149.19
new text begin both under section 273.124, and as class 2a property under section 273.13, subdivision 23.new text end
149.20
new text begin (4)new text end The decedent continuously owned the property
new text begin , including property the decedent new text end
149.21
new text begin is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code,new text end for
149.22the three-year period ending on the date of death of the decedent
new text begin either by ownership of new text end
149.23
new text begin the agricultural land or pursuant to holding an interest in an entity that is not excluded new text end
149.24
new text begin from owning agricultural land under section 500.24new text end .
149.25(4) A family member continuously uses the property in the operation of the trade or
149.26business
new text begin (5) The property is classified for property tax purposes as class 2a property under new text end
149.27
new text begin section 273.13, subdivision 23,new text end for three years following the date of death of the decedent.
149.28(5)
new text begin (6)new text end The estate and the qualified heir elect to treat the property as qualified farm
149.29property and agree, in a form prescribed by the commissioner, to pay the recapture tax
149.30under subdivision 11, if applicable.
149.31
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for estates of decedents dying after new text end
149.32
new text begin June 30, 2011.new text end
150.1 Sec. 9. Minnesota Statutes 2011 Supplement, section 291.03, subdivision 11, is
150.2amended to read:
150.3 Subd. 11.
Recapture tax. (a) If, within three years after the decedent's death and
150.4before the death of the qualified heir, the qualified heir disposes of any interest in the
150.5qualified property, other than by a disposition to a family member
new text begin or qualifying entitynew text end ,
150.6or a family member ceases to use the qualified property which was acquired or passed
150.7from the decedent
new text begin satisfy the requirement under subdivision 9, clause (7); or 10, clause new text end
150.8
new text begin (5)new text end , an additional estate tax is imposed on the property.
new text begin In the case of a sole proprietor, if new text end
150.9
new text begin the qualified heir replaces qualified small business property excluded under subdivision 9 new text end
150.10
new text begin with similar property, then the qualified heir will not be treated as having disposed of an new text end
150.11
new text begin interest in the qualified property.new text end
150.12(b) The amount of the additional tax equals the amount of the exclusion claimed
new text begin with new text end
150.13
new text begin respect to the qualified interest disposed ofnew text end by the estate under subdivision 8, paragraph
150.14(d), multiplied by 16 percent.
150.15(c) The additional tax under this subdivision is due on the day which is six months
150.16after the date of the disposition or cessation in paragraph (a).
150.17
new text begin (c) For purposes of paragraph (a), "qualifying entity" means a corporation or other new text end
150.18
new text begin entity that is owned by a family member or family members and, for qualified farm new text end
150.19
new text begin property, that is not excluded from owning agricultural land under section 500.24.new text end
150.20
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for estates of decedents dying after new text end
150.21
new text begin June 30, 2011.new text end
150.22
ARTICLE 12
150.23
HOMESTEAD MARKET VALUE CLEANUP
150.24 Section 1. Minnesota Statutes 2010, section 38.18, is amended to read:
150.25
38.18 COUNTY FAIRGROUNDS; IMPROVEMENT AIDED.
150.26Any
new text begin Eachnew text end town, statutory city, or school district in this state, now or hereafter
new text begin at new text end
150.27
new text begin any timenew text end having a
new text begin an estimatednew text end market value of all its taxable property, exclusive of
150.28money and credits, of more than $105,000,000, and having a county fair located within its
150.29corporate limits, is hereby authorized to aid in defraying
new text begin may paynew text end part of the expense of
150.30improving any such
new text begin thenew text end fairground, by appropriating and paying over to the treasurer of
150.31the county owning the fairground such sum of money, not exceeding $10,000, for each
150.32of the political subdivisions, as the
new text begin itsnew text end governing body of the town, statutory city, or
150.33school district may, by resolution, determine
new text begin determinesnew text end to be for the best interest of the
150.34political subdivision,
new text begin .new text end The sums so appropriated to
new text begin amounts paid to the county mustnew text end be
150.35used solely for the purpose of aiding in the improvement of
new text begin to improvenew text end the fairground
151.1in such
new text begin thenew text end manner as the county board of the county shall determine
new text begin determinesnew text end to be
151.2for the best interest of the county.
151.3 Sec. 2. Minnesota Statutes 2010, section 40A.15, subdivision 2, is amended to read:
151.4 Subd. 2.
Eligible recipients. All counties within the state, municipalities that
151.5prepare plans and official controls instead of a county, and districts are eligible for
151.6assistance under the program. Counties and districts may apply for assistance on behalf
151.7of other municipalities. In order to be eligible for financial assistance a county or
151.8municipality must agree to levy at least 0.01209 percent of taxable
new text begin estimatednew text end market
151.9value for agricultural land preservation and conservation activities or otherwise spend the
151.10equivalent amount of local money on those activities, or spend $15,000 of local money,
151.11whichever is less.
151.12 Sec. 3. Minnesota Statutes 2010, section 69.011, subdivision 1, is amended to read:
151.13 Subdivision 1.
Definitions. Unless the language or context clearly indicates that
151.14a different meaning is intended, the following words and terms, for the purposes of this
151.15chapter and chapters 423, 423A, 424 and 424A, have the meanings ascribed to them:
151.16 (a) "Commissioner" means the commissioner of revenue.
151.17 (b) "Municipality" means:
151.18 (1) a home rule charter or statutory city;
151.19 (2) an organized town;
151.20 (3) a park district subject to chapter 398;
151.21 (4) the University of Minnesota;
151.22 (5) for purposes of the fire state aid program only, an American Indian tribal
151.23government entity located within a federally recognized American Indian reservation;
151.24 (6) for purposes of the police state aid program only, an American Indian tribal
151.25government with a tribal police department which exercises state arrest powers under
151.26section
626.90,
626.91,
626.92, or
626.93;
151.27 (7) for purposes of the police state aid program only, the Metropolitan Airports
151.28Commission; and
151.29 (8) for purposes of the police state aid program only, the Department of Natural
151.30Resources and the Department of Public Safety with respect to peace officers covered
151.31under chapter 352B.
151.32 (c) "Minnesota Firetown Premium Report" means a form prescribed by the
151.33commissioner containing space for reporting by insurers of fire, lightning, sprinkler
152.1leakage and extended coverage premiums received upon risks located or to be performed
152.2in this state less return premiums and dividends.
152.3 (d) "Firetown" means the area serviced by any municipality having a qualified fire
152.4department or a qualified incorporated fire department having a subsidiary volunteer
152.5firefighters' relief association.
152.6 (e) "
new text begin Estimated new text end market value" means latest available
new text begin estimated new text end market value of all
152.7property in a taxing jurisdiction, whether the property is subject to taxation, or exempt
152.8from ad valorem taxation obtained from information which appears on abstracts filed with
152.9the commissioner of revenue or equalized by the State Board of Equalization.
152.10 (f) "Minnesota Aid to Police Premium Report" means a form prescribed by the
152.11commissioner for reporting by each fire and casualty insurer of all premiums received
152.12upon direct business received by it in this state, or by its agents for it, in cash or otherwise,
152.13during the preceding calendar year, with reference to insurance written for insuring against
152.14the perils contained in auto insurance coverages as reported in the Minnesota business
152.15schedule of the annual financial statement which each insurer is required to file with
152.16the commissioner in accordance with the governing laws or rules less return premiums
152.17and dividends.
152.18 (g) "Peace officer" means any person:
152.19 (1) whose primary source of income derived from wages is from direct employment
152.20by a municipality or county as a law enforcement officer on a full-time basis of not less
152.21than 30 hours per week;
152.22 (2) who has been employed for a minimum of six months prior to December 31
152.23preceding the date of the current year's certification under subdivision 2, clause (b);
152.24 (3) who is sworn to enforce the general criminal laws of the state and local
152.25ordinances;
152.26 (4) who is licensed by the Peace Officers Standards and Training Board and is
152.27authorized to arrest with a warrant; and
152.28 (5) who is a member of the Minneapolis Police Relief Association, the State Patrol
152.29retirement plan, or the public employees police and fire fund.
152.30 (h) "Full-time equivalent number of peace officers providing contract service" means
152.31the integral or fractional number of peace officers which would be necessary to provide
152.32the contract service if all peace officers providing service were employed on a full-time
152.33basis as defined by the employing unit and the municipality receiving the contract service.
152.34 (i) "Retirement benefits other than a service pension" means any disbursement
152.35authorized under section
424A.05, subdivision 3, clauses (3) and (4).
153.1 (j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means the person
153.2who was elected or appointed to the specified position or, in the absence of the person,
153.3another person who is designated by the applicable governing body. In a park district,
153.4the clerk is the secretary of the board of park district commissioners. In the case of the
153.5University of Minnesota, the clerk is that official designated by the Board of Regents.
153.6For the Metropolitan Airports Commission, the clerk is the person designated by the
153.7commission. For the Department of Natural Resources or the Department of Public Safety,
153.8the clerk is the respective commissioner. For a tribal police department which exercises
153.9state arrest powers under section
626.90,
626.91,
626.92, or
626.93, the clerk is the person
153.10designated by the applicable American Indian tribal government.
153.11(k) "Voluntary statewide lump-sum volunteer firefighter retirement plan" means the
153.12retirement plan established by chapter 353G.
153.13 Sec. 4. Minnesota Statutes 2010, section 69.021, subdivision 7, is amended to read:
153.14 Subd. 7.
Apportionment of fire state aid to municipalities and relief associations.
153.15(a) The commissioner shall apportion the fire state aid relative to the premiums reported
153.16on the Minnesota Firetown Premium Reports filed under this chapter to each municipality
153.17and/or firefighters relief association.
153.18(b) The commissioner shall calculate an initial fire state aid allocation amount for
153.19each municipality or fire department under paragraph (c) and a minimum fire state aid
153.20allocation amount for each municipality or fire department under paragraph (d). The
153.21municipality or fire department must receive the larger fire state aid amount.
153.22(c) The initial fire state aid allocation amount is the amount available for
153.23apportionment as fire state aid under subdivision 5, without inclusion of any additional
153.24funding amount to support a minimum fire state aid amount under section
423A.02,
153.25subdivision 3
, allocated one-half in proportion to the population as shown in the last
153.26official statewide federal census for each fire town and one-half in proportion to the
153.27
new text begin estimated new text end market value of each fire town, including (1) the
new text begin estimated new text end market value of
153.28tax-exempt property and (2) the
new text begin estimated new text end market value of natural resources lands
153.29receiving in lieu payments under sections
477A.11 to
477A.14, but excluding the
153.30
new text begin estimated new text end market value of minerals. In the case of incorporated or municipal fire
153.31departments furnishing fire protection to other cities, towns, or townships as evidenced
153.32by valid fire service contracts filed with the commissioner, the distribution must be
153.33adjusted proportionately to take into consideration the crossover fire protection service.
153.34Necessary adjustments must be made to subsequent apportionments. In the case of
153.35municipalities or independent fire departments qualifying for the aid, the commissioner
154.1shall calculate the state aid for the municipality or relief association on the basis of the
154.2population and the
new text begin estimated new text end market value of the area furnished fire protection service
154.3by the fire department as evidenced by duly executed and valid fire service agreements
154.4filed with the commissioner. If one or more fire departments are furnishing contracted fire
154.5service to a city, town, or township, only the population and
new text begin estimated new text end market value of the
154.6area served by each fire department may be considered in calculating the state aid and
154.7the fire departments furnishing service shall enter into an agreement apportioning among
154.8themselves the percent of the population and the
new text begin estimatednew text end market value of each service
154.9area. The agreement must be in writing and must be filed with the commissioner.
154.10(d) The minimum fire state aid allocation amount is the amount in addition to the
154.11initial fire state allocation amount that is derived from any additional funding amount
154.12to support a minimum fire state aid amount under section
423A.02, subdivision 3, and
154.13allocated to municipalities with volunteer firefighters relief associations or covered by the
154.14voluntary statewide lump-sum volunteer firefighter retirement plan based on the number
154.15of active volunteer firefighters who are members of the relief association as reported
154.16in the annual financial reporting for the calendar year 1993 to the Office of the State
154.17Auditor, but not to exceed 30 active volunteer firefighters, so that all municipalities or
154.18fire departments with volunteer firefighters relief associations receive in total at least a
154.19minimum fire state aid amount per 1993 active volunteer firefighter to a maximum of
154.2030 firefighters. If a relief association is established after calendar year 1993 and before
154.21calendar year 2000, the number of active volunteer firefighters who are members of the
154.22relief association as reported in the annual financial reporting for calendar year 1998
154.23to the Office of the State Auditor, but not to exceed 30 active volunteer firefighters,
154.24shall be used in this determination. If a relief association is established after calendar
154.25year 1999, the number of active volunteer firefighters who are members of the relief
154.26association as reported in the first annual financial reporting submitted to the Office of
154.27the State Auditor, but not to exceed 20 active volunteer firefighters, must be used in this
154.28determination. If a relief association is terminated as a result of providing retirement
154.29coverage for volunteer firefighters by the voluntary statewide lump-sum volunteer
154.30firefighter retirement plan under chapter 353G, the number of active volunteer firefighters
154.31of the municipality covered by the statewide plan as certified by the executive director of
154.32the Public Employees Retirement Association to the commissioner and the state auditor,
154.33but not to exceed 30 active firefighters, must be used in this determination.
154.34(e) Unless the firefighters of the applicable fire department are members of the
154.35voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid must
154.36be paid to the treasurer of the municipality where the fire department is located and the
155.1treasurer of the municipality shall, within 30 days of receipt of the fire state aid, transmit
155.2the aid to the relief association if the relief association has filed a financial report with the
155.3treasurer of the municipality and has met all other statutory provisions pertaining to the
155.4aid apportionment. If the firefighters of the applicable fire department are members of
155.5the voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid
155.6must be paid to the executive director of the Public Employees Retirement Association
155.7and deposited in the voluntary statewide lump-sum volunteer firefighter retirement fund.
155.8(f) The commissioner may make rules to permit the administration of the provisions
155.9of this section.
155.10(g) Any adjustments needed to correct prior misallocations must be made to
155.11subsequent apportionments.
155.12 Sec. 5. Minnesota Statutes 2010, section 69.021, subdivision 8, is amended to read:
155.13 Subd. 8.
Population and new text begin estimated new text end market value. (a) In computations relating to
155.14fire state aid requiring the use of population figures, only official statewide federal census
155.15figures are to be used. Increases or decreases in population disclosed by reason of any
155.16special census must not be taken into consideration.
155.17(b) In calculations relating to fire state aid requiring the use of
new text begin estimated new text end market
155.18value property figures, only the latest available
new text begin estimated new text end market value property figures
155.19may be used.
155.20 Sec. 6. Minnesota Statutes 2010, section 88.51, subdivision 3, is amended to read:
155.21 Subd. 3.
Determination of market value. In determining the net tax capacity of
155.22property within any taxing district the value of the surface of lands within any auxiliary
155.23forest therein, as determined by the county board under the provisions of section
88.48,
155.24subdivision 3
, shall, for all purposes except the levying of taxes on lands within any such
155.25forest, be deemed the
new text begin estimated new text end market value thereof.
155.26 Sec. 7. Minnesota Statutes 2010, section 103B.245, subdivision 3, is amended to read:
155.27 Subd. 3.
Tax. After adoption of the ordinance under subdivision 2, a local
155.28government unit may annually levy a tax on all taxable property in the district for the
155.29purposes for which the tax district is established. The tax may not exceed 0.02418 percent
155.30of
new text begin estimated new text end market value on taxable property located in rural towns other than urban
155.31towns, unless allowed by resolution of the town electors. The proceeds of the tax shall
155.32be paid into a fund reserved for these purposes. Any proceeds remaining in the reserve
155.33fund at the time the tax is terminated or the district is dissolved shall be transferred and
156.1irrevocably pledged to the debt service fund of the local unit to be used solely to reduce
156.2tax levies for bonded indebtedness of taxable property in the district.
156.3 Sec. 8. Minnesota Statutes 2010, section 103B.251, subdivision 8, is amended to read:
156.4 Subd. 8.
Tax. (a) For the payment of principal and interest on the bonds issued
156.5under subdivision 7 and the payment required under subdivision 6, the county shall
156.6irrevocably pledge and appropriate the proceeds of a tax levied on all taxable property
156.7located within the territory of the watershed management organization or subwatershed
156.8unit for which the bonds are issued. Each year until the reserve for payment of the bonds
156.9is sufficient to retire the bonds, the county shall levy on all taxable property in the territory
156.10of the organization or unit, without respect to any statutory or other limitation on taxes, an
156.11amount of taxes sufficient to pay principal and interest on the bonds and to restore any
156.12deficiencies in reserves required to be maintained for payment of the bonds.
156.13(b) The tax levied on rural towns other than urban towns may not exceed 0.02418
156.14percent of taxable
new text begin estimatednew text end market value, unless approved by resolution of the town
156.15electors.
156.16(c) If at any time the amounts available from the levy on property in the territory of
156.17the organization are insufficient to pay principal and interest on the bonds when due, the
156.18county shall make payment from any available funds in the county treasury.
156.19(d) The amount of any taxes which are required to be levied outside of the territory
156.20of the watershed management organization or unit or taken from the general funds of the
156.21county to pay principal or interest on the bonds shall be reimbursed to the county from
156.22taxes levied within the territory of the watershed management organization or unit.
156.23 Sec. 9. Minnesota Statutes 2010, section 103B.635, subdivision 2, is amended to read:
156.24 Subd. 2.
Municipal funding of district. (a) The governing body or board of
156.25supervisors of each municipality in the district must provide the funds necessary to meet
156.26its proportion of the total cost determined by the board, provided the total funding from
156.27all municipalities in the district for the costs shall not exceed an amount equal to .00242
156.28percent of the total taxable
new text begin estimatednew text end market value within the district, unless three-fourths
156.29of the municipalities in the district pass a resolution concurring to the additional costs.
156.30(b) The funds must be deposited in the treasury of the district in amounts and at
156.31times as the treasurer of the district requires.
156.32 Sec. 10. Minnesota Statutes 2010, section 103B.691, subdivision 2, is amended to read:
157.1 Subd. 2.
Municipal funding of district. (a) The governing body or board of
157.2supervisors of each municipality in the district shall provide the funds necessary to
157.3meet its proportion of the total cost to be borne by the municipalities as finally certified
157.4by the board.
157.5(b) The municipality's funds may be raised by any means within the authority of
157.6the municipality. The municipalities may each levy a tax not to exceed .02418 percent of
157.7taxable
new text begin estimatednew text end market value on the taxable property located in the district to provide
157.8the funds. The levy shall be within all other limitations provided by law.
157.9(c) The funds must be deposited into the treasury of the district in amounts and at
157.10times as the treasurer of the district requires.
157.11 Sec. 11. Minnesota Statutes 2010, section 103D.905, subdivision 2, is amended to read:
157.12 Subd. 2.
Organizational expense fund. (a) An organizational expense fund,
157.13consisting of an ad valorem tax levy, shall not exceed 0.01596 percent of taxable
new text begin estimated new text end
157.14market value, or $60,000, whichever is less. The money in the fund shall be used for
157.15organizational expenses and preparation of the watershed management plan for projects.
157.16(b) The managers may borrow from the affected counties up to 75 percent of the
157.17anticipated funds to be collected from the organizational expense fund levy and the
157.18counties affected may make the advancements.
157.19(c) The advancement of anticipated funds shall be apportioned among affected
157.20counties in the same ratio as the net tax capacity of the area of the counties within
157.21the watershed district bears to the net tax capacity of the entire watershed district. If a
157.22watershed district is enlarged, an organizational expense fund may be levied against the
157.23area added to the watershed district in the same manner as provided in this subdivision.
157.24(d) Unexpended funds collected for the organizational expense may be transferred to
157.25the administrative fund and used for the purposes of the administrative fund.
157.26 Sec. 12. Minnesota Statutes 2010, section 103D.905, subdivision 3, is amended to read:
157.27 Subd. 3.
General fund. A general fund, consisting of an ad valorem tax levy, may
157.28not exceed 0.048 percent of taxable
new text begin estimatednew text end market value, or $250,000, whichever is
157.29less. The money in the fund shall be used for general administrative expenses and for
157.30the construction or implementation and maintenance of projects of common benefit to
157.31the watershed district. The managers may make an annual levy for the general fund as
157.32provided in section
103D.911. In addition to the annual general levy, the managers may
157.33annually levy a tax not to exceed 0.00798 percent of taxable
new text begin estimatednew text end market value
157.34for a period not to exceed 15 consecutive years to pay the cost attributable to the basic
158.1water management features of projects initiated by petition of a political subdivision
158.2within the watershed district or by petition of at least 50 resident owners whose property
158.3is within the watershed district.
158.4 Sec. 13. Minnesota Statutes 2010, section 103D.905, subdivision 8, is amended to read:
158.5 Subd. 8.
Survey and data acquisition fund. (a) A survey and data acquisition fund
158.6is established and used only if other funds are not available to the watershed district to pay
158.7for making necessary surveys and acquiring data.
158.8(b) The survey and data acquisition fund consists of the proceeds of a property tax
158.9that can be levied only once every five years. The levy may not exceed 0.02418 percent of
158.10taxable
new text begin estimatednew text end market value.
158.11(c) The balance of the survey and data acquisition fund may not exceed $50,000.
158.12(d) In a subsequent proceeding for a project where a survey has been made, the
158.13attributable cost of the survey as determined by the managers shall be included as a part of
158.14the cost of the work and the sum shall be repaid to the survey and data acquisition fund.
158.15 Sec. 14. Minnesota Statutes 2010, section 117.025, subdivision 7, is amended to read:
158.16 Subd. 7.
Structurally substandard. "Structurally substandard" means a building:
158.17(1) that was inspected by the appropriate local government and cited for one or more
158.18enforceable housing, maintenance, or building code violations;
158.19(2) in which the cited building code violations involve one or more of the following:
158.20(i) a roof and roof framing element;
158.21(ii) support walls, beams, and headers;
158.22(iii) foundation, footings, and subgrade conditions;
158.23(iv) light and ventilation;
158.24(v) fire protection, including egress;
158.25(vi) internal utilities, including electricity, gas, and water;
158.26(vii) flooring and flooring elements; or
158.27(viii) walls, insulation, and exterior envelope;
158.28(3) in which the cited housing, maintenance, or building code violations have not
158.29been remedied after two notices to cure the noncompliance; and
158.30(4) has uncured housing, maintenance, and building code violations, satisfaction of
158.31which would cost more than 50 percent of the assessor's taxable
new text begin estimatednew text end market value
158.32for the building, excluding land value, as determined under section
273.11 for property
158.33taxes payable in the year in which the condemnation is commenced.
159.1A local government is authorized to seek from a judge or magistrate an administrative
159.2warrant to gain access to inspect a specific building in a proposed development or
159.3redevelopment area upon showing of probable cause that a specific code violation has
159.4occurred and that the violation has not been cured, and that the owner has denied the local
159.5government access to the property. Items of evidence that may support a conclusion of
159.6probable cause may include recent fire or police inspections, housing inspection, exterior
159.7evidence of deterioration, or other similar reliable evidence of deterioration in the specific
159.8building.
159.9 Sec. 15. Minnesota Statutes 2010, section 127A.48, subdivision 1, is amended to read:
159.10 Subdivision 1.
Computation. The Department of Revenue must annually conduct
159.11an assessment/sales ratio study of the taxable property in each
new text begin county, city, town, and new text end
159.12school district in accordance with the procedures in subdivisions 2 and 3. Based upon the
159.13results of this assessment/sales ratio study, the Department of Revenue must determine an
159.14aggregate equalized net tax capacity for the various classes of taxable property in each
159.15
new text begin taxing new text end district,
new text begin the aggregate of new text end which tax capacity shall be
new text begin is new text end designated as the adjusted
159.16net tax capacity.
new text begin The adjusted net tax capacity must be reduced by the captured tax new text end
159.17
new text begin capacity of tax increment districts under section 469.177, subdivision 2, fiscal disparities new text end
159.18
new text begin contribution tax capacities under sections 276A.06 and 473F.08, and the tax capacity of new text end
159.19
new text begin transmission lines required to be subtracted from the local tax base under section 273.425; new text end
159.20
new text begin and increased by fiscal disparities distribution tax capacities under sections 276A.06 and new text end
159.21
new text begin 473F.08. new text end The adjusted net tax capacities shall be determined using the net tax capacity
159.22percentages in effect for the assessment year following the assessment year of the study.
159.23The Department of Revenue must make whatever estimates are necessary to account for
159.24changes in the classification system. The Department of Revenue may incur the expense
159.25necessary to make the determinations. The commissioner of revenue may reimburse any
159.26county or governmental official for requested services performed in ascertaining the
159.27adjusted net tax capacity. On or before March 15 annually, the Department of Revenue
159.28shall file with the chair of the Tax Committee of the house of representatives and the
159.29chair of the Committee on Taxes and Tax laws of the senate a report of adjusted net tax
159.30capacities
new text begin for school districtsnew text end . On or before June 15 annually, the Department of Revenue
159.31shall file its final report on the adjusted net tax capacities
new text begin for school districtsnew text end established
159.32by the previous year's assessments and the current year's net tax capacity percentages with
159.33the commissioner of education and each county auditor for those
new text begin school new text end districts for
159.34which the auditor has the responsibility for determination of local tax rates. A copy of
159.35the report so filed shall be mailed to the clerk of each
new text begin school new text end district involved and to the
160.1county assessor or supervisor of assessments of the county or counties in which each
160.2
new text begin school new text end district is located.
160.3
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
160.4 Sec. 16. Minnesota Statutes 2010, section 138.053, is amended to read:
160.5
138.053 COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR
160.6
TOWNS.
160.7The governing body of any home rule charter or statutory city or town may annually
160.8appropriate from its general fund an amount not to exceed 0.02418 percent of taxable
new text begin new text end
160.9
new text begin estimatednew text end market value, derived from ad valorem taxes on property or other revenues,
160.10to be paid to the historical society of its respective county to be used for the promotion
160.11of historical work and to aid in defraying the expenses of carrying on the historical
160.12work in the county. No city or town may appropriate any funds for the benefit of any
160.13historical society unless the society is affiliated with and approved by the Minnesota
160.14Historical Society.
160.15 Sec. 17. Minnesota Statutes 2010, section 144F.01, subdivision 4, is amended to read:
160.16 Subd. 4.
Property tax levy authority. The district's board may levy a tax on the
160.17taxable real and personal property in the district. The ad valorem tax levy may not
160.18exceed 0.048 percent of the taxable
new text begin estimatednew text end market value of the district or $400,000,
160.19whichever is less. The proceeds of the levy must be used as provided in subdivision 5.
160.20The board shall certify the levy at the times as provided under section
275.07. The board
160.21shall provide the county with whatever information is necessary to identify the property
160.22that is located within the district. If the boundaries include a part of a parcel, the entire
160.23parcel shall be included in the district. The county auditors must spread, collect, and
160.24distribute the proceeds of the tax at the same time and in the same manner as provided by
160.25law for all other property taxes.
160.26 Sec. 18. Minnesota Statutes 2010, section 162.07, subdivision 3, is amended to read:
160.27 Subd. 3.
Computation for rural counties. An amount equal to a levy of 0.01596
160.28percent on each rural county's total taxable
new text begin estimatednew text end market value for the last preceding
160.29calendar year shall be computed and shall be subtracted from the county's total estimated
160.30construction costs. The result thereof shall be the money needs of the county. For the
160.31purpose of this section, "rural counties" means all counties having a population of less
160.32than 175,000.
161.1 Sec. 19. Minnesota Statutes 2010, section 162.07, subdivision 4, is amended to read:
161.2 Subd. 4.
Computation for urban counties. An amount equal to a levy of 0.00967
161.3percent on each urban county's total taxable
new text begin estimatednew text end market value for the last preceding
161.4calendar year shall be computed and shall be subtracted from the county's total estimated
161.5construction costs. The result thereof shall be the money needs of the county. For
161.6the purpose of this section, "urban counties" means all counties having a population
161.7of 175,000 or more.
161.8 Sec. 20. Minnesota Statutes 2010, section 163.04, subdivision 3, is amended to read:
161.9 Subd. 3.
Bridges within certain cities. When the council of any statutory city or
161.10city of the third or fourth class may determine that it is necessary to build or improve any
161.11bridge or bridges, including approaches thereto, and any dam or retaining works connected
161.12therewith, upon or forming a part of streets or highways either wholly or partly within
161.13its limits, the county board shall appropriate one-half of the money as may be necessary
161.14therefor from the county road and bridge fund, not exceeding during any year one-half
161.15the amount of taxes paid into the county road and bridge fund during the preceding year,
161.16on property within the corporate limits of the city. The appropriation shall be made upon
161.17the petition of the council, which petition shall be filed by the council with the county
161.18board prior to the fixing by the board of the annual county tax levy. The county board
161.19shall determine the plans and specifications, shall let all necessary contracts, shall have
161.20charge of construction, and upon its request, warrants in payment thereof shall be issued
161.21by the county auditor, from time to time, as the construction work proceeds. Any unpaid
161.22balance may be paid or advanced by the city. On petition of the council, the appropriations
161.23of the county board, during not to exceed three successive years, may be made to apply
161.24on the construction of the same items and to repay any money advanced by the city in
161.25the construction thereof. None of the provisions of this section shall be construed to
161.26be mandatory as applied to any city whose
new text begin estimated new text end market value exceeds $2,100 per
161.27capita of its population.
161.28 Sec. 21. Minnesota Statutes 2010, section 163.06, subdivision 6, is amended to read:
161.29 Subd. 6.
Expenditure in certain counties. In any county having not less than 95
161.30nor more than 105 full and fractional townships, and having a
new text begin an estimatednew text end market value
161.31of not less than $12,000,000 nor more than $21,000,000, exclusive of money and credits,
161.32the county board, by resolution, may expend the funds provided in subdivision 4 in any
161.33organized or unorganized township or portion thereof in such county.
162.1 Sec. 22. Minnesota Statutes 2010, section 165.10, subdivision 1, is amended to read:
162.2 Subdivision 1.
Certain counties may issue and sell. The county board of any
162.3county having no outstanding road and bridge bonds may issue and sell county road bonds
162.4in an amount not exceeding 0.12089 percent of the
new text begin estimated new text end market value of the taxable
162.5property within the county exclusive of money and credits, for the purpose of constructing,
162.6reconstructing, improving, or maintaining any bridge or bridges on any highway under its
162.7jurisdiction, without submitting the matter to a vote of the electors of the county.
162.8 Sec. 23. Minnesota Statutes 2010, section 272.03, is amended by adding a subdivision
162.9to read:
162.10
new text begin Subd. 14.new text end new text begin Estimated market value.new text end new text begin "Estimated market value" means the assessor's new text end
162.11
new text begin determination of market value, including the effects of any orders made under section new text end
162.12
new text begin 270.12 or chapter 274, for the parcel. The provisions of section 273.032 apply for certain new text end
162.13
new text begin uses in determining the total estimated market value for the taxing jurisdiction.new text end
162.14 Sec. 24. Minnesota Statutes 2010, section 272.03, is amended by adding a subdivision
162.15to read:
162.16
new text begin Subd. 15.new text end new text begin Taxable market value.new text end new text begin "Taxable market value" means estimated market new text end
162.17
new text begin value for the parcel as reduced by market value exclusions, deferments of value, or other new text end
162.18
new text begin adjustments, required by law, that reduce market value before the application of class rates.new text end
162.19 Sec. 25. Minnesota Statutes 2010, section 273.032, is amended to read:
162.20
273.032 MARKET VALUE DEFINITION.
162.21
new text begin (a) Unless otherwise provided, new text end for the purpose of determining any property tax
162.22levy limitation based on market value
new text begin or any limit on net debt, the issuance of bonds, new text end
162.23
new text begin certificates of indebtedness, or capital notes based on market valuenew text end , any qualification to
162.24receive state aid based on market value, or any state aid amount based on market value,
162.25the terms "market value," "taxable
new text begin estimatednew text end market value," and "market valuation,"
162.26whether equalized or unequalized, mean the total taxable
new text begin estimatednew text end market value of
162.27
new text begin taxable new text end property within the local unit of government before any
new text begin of the following or new text end
162.28
new text begin similar new text end adjustments for
new text begin :new text end
162.29
new text begin (1) the market value exclusions under:new text end
162.30
new text begin (i) section 273.11, subdivisions 14a and 14c (vacant platted land);new text end
162.31
new text begin (ii) section new text end
new text begin 273.11, subdivision 16new text end new text begin (certain improvements to homestead property);new text end
162.32
new text begin (iii) section 273.11, subdivisions 19 and 20 (certain improvements to business new text end
162.33
new text begin properties);new text end
163.1
new text begin (iv) section 273.11, subdivision 21 (homestead property damaged by mold);new text end
163.2
new text begin (v) section 273.11, subdivision 22 (qualifying lead hazardous reduction projects);new text end
163.3
new text begin (vi) section 273.13, subdivision 34 (homestead of a disabled veteran, spouse, or new text end
163.4
new text begin caregiver);new text end
163.5
new text begin (vii) section 273.13, subdivision 35 (homestead market value exclusion); ornew text end
163.6
new text begin (2) the deferment of value under:new text end
163.7
new text begin (i) the Minnesota Agricultural Property Tax Law, section 273.111;new text end
163.8
new text begin (ii) the aggregate resource preservation law, section 273.1115;new text end
163.9
new text begin (iii) the Minnesota Open Space Property Tax Law, section 273.112;new text end
163.10
new text begin (iv) the rural preserves property tax program, section 273.114; ornew text end
163.11
new text begin (v) the Metropolitan Agricultural Preserves Act, section 473H.10; ornew text end
163.12
new text begin (3) the adjustments to tax capacity for:new text end
163.13
new text begin (i) new text end tax increment,
new text begin financing under sections 469.174 to 469.1794;new text end
163.14
new text begin (ii)new text end fiscal disparity,
new text begin disparities under chapter 276A or 473F; ornew text end
163.15
new text begin (iii) new text end powerline credit, or wind energy values, but after the limited market adjustments
163.16under section
273.11, subdivision 1a, and after the market value exclusions of certain
163.17improvements to homestead property under section
273.11, subdivision 16new text begin under section new text end
163.18
new text begin 273.425new text end .
163.19
new text begin (b) Estimated market value under paragraph (a) also includes the market value new text end
163.20
new text begin of tax exempt property if the applicable law specifically provides that the limitation, new text end
163.21
new text begin qualification, or aid calculation includes tax exempt property.new text end
163.22
new text begin (c)new text end Unless otherwise provided, "market value," "taxable
new text begin estimatednew text end market value,"
163.23and "market valuation" for purposes of this paragraph
new text begin property tax levy limitations and new text end
163.24
new text begin calculation of state aidnew text end , refer to the taxable
new text begin estimatednew text end market value for the previous
163.25assessment year
new text begin and for purposes of limits on net debt, the issuance of bonds, certificates of new text end
163.26
new text begin indebtedness, or capital notes refer to the estimated market value as last finally equalizednew text end .
163.27For the purpose of determining any net debt limit based on market value, or any limit
163.28on the issuance of bonds, certificates of indebtedness, or capital notes based on market
163.29value, the terms "market value," "taxable market value," and "market valuation," whether
163.30equalized or unequalized, mean the total taxable market value of property within the local
163.31unit of government before any adjustments for tax increment, fiscal disparity, powerline
163.32credit, or wind energy values, but after the limited market value adjustments under section
163.33, subdivision 1a, and after the market value exclusions of certain improvements to
163.34homestead property under section
, subdivision 16. Unless otherwise provided,
163.35"market value," "taxable market value," and "market valuation" for purposes of this
163.36paragraph, mean the taxable market value as last finally equalized.
164.1
new text begin (d) For purposes of a provision of a home rule charter or of any special law that is new text end
164.2
new text begin not codified in the statutes and that imposes a levy limitation based on market value or new text end
164.3
new text begin any limit on debt, the issuance of bonds, certificates of indebtedness, or capital notes new text end
164.4
new text begin based on market value, the terms "market value," "taxable market value," and "market new text end
164.5
new text begin valuation," whether equalized or unequalized, mean "estimated market value" as defined new text end
164.6
new text begin in paragraph (a).new text end
164.7 Sec. 26. Minnesota Statutes 2010, section 273.11, subdivision 1, is amended to read:
164.8 Subdivision 1.
Generally. Except as provided in this section or section
273.17,
164.9subdivision 1
, all property shall be valued at its market value. The market value as
164.10determined pursuant to this section shall be stated such that any amount under $100 is
164.11rounded up to $100 and any amount exceeding $100 shall be rounded to the nearest $100.
164.12In estimating and determining such value, the assessor shall not adopt a lower or different
164.13standard of value because the same is to serve as a basis of taxation, nor shall the assessor
164.14adopt as a criterion of value the price for which such property would sell at a forced sale,
164.15or in the aggregate with all the property in the town or district; but the assessor shall value
164.16each article or description of property by itself, and at such sum or price as the assessor
164.17believes the same to be fairly worth in money. The assessor shall take into account the
164.18effect on the market value of property of environmental factors in the vicinity of the
164.19property. In assessing any tract or lot of real property, the value of the land, exclusive of
164.20structures and improvements, shall be determined, and also the value of all structures and
164.21improvements thereon, and the aggregate value of the property, including all structures
164.22and improvements, excluding the value of crops growing upon cultivated land. In valuing
164.23real property upon which there is a mine or quarry, it shall be valued at such price as such
164.24property, including the mine or quarry, would sell for at a fair, voluntary sale, for cash,
164.25if the material being mined or quarried is not subject to taxation under section
298.015
164.26and the mine or quarry is not exempt from the general property tax under section
298.25.
164.27In valuing real property which is vacant, platted property shall be assessed as provided
164.28in subdivision 14
new text begin subdivisions 14a and 14cnew text end . All property, or the use thereof, which is
164.29taxable under section
272.01, subdivision 2, or
273.19, shall be valued at the market
164.30value of such property and not at the value of a leasehold estate in such property, or at
164.31some lesser value than its market value.
164.32 Sec. 27. Minnesota Statutes 2010, section 273.124, subdivision 3a, is amended to read:
164.33 Subd. 3a.
Manufactured home park cooperative. (a) When a manufactured home
164.34park is owned by a corporation or association organized under chapter 308A or 308B,
165.1and each person who owns a share or shares in the corporation or association is entitled
165.2to occupy a lot within the park, the corporation or association may claim homestead
165.3treatment for the park. Each lot must be designated by legal description or number, and
165.4each lot is limited to not more than one-half acre of land.
165.5(b) The manufactured home park shall be entitled to homestead treatment if all
165.6of the following criteria are met:
165.7(1) the occupant or the cooperative corporation or association is paying the ad
165.8valorem property taxes and any special assessments levied against the land and structure
165.9either directly, or indirectly through dues to the corporation or association; and
165.10(2) the corporation or association organized under chapter 308A or 308B is wholly
165.11owned by persons having a right to occupy a lot owned by the corporation or association.
165.12(c) A charitable corporation, organized under the laws of Minnesota with no
165.13outstanding stock, and granted a ruling by the Internal Revenue Service for 501(c)(3)
165.14tax-exempt status, qualifies for homestead treatment with respect to a manufactured home
165.15park if its members hold residential participation warrants entitling them to occupy a lot
165.16in the manufactured home park.
165.17(d) "Homestead treatment" under this subdivision means the class rate provided for
165.18class 4c property classified under section
273.13, subdivision 25, paragraph (d), clause (5),
165.19item (ii). The homestead market value credit
new text begin exclusionnew text end under section
new text begin 273.13, new text end
165.20
new text begin subdivision 35,new text end does not apply and the property taxes assessed against the park shall not
165.21be included in the determination of taxes payable for rent paid under section
290A.03.
165.22
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxes payable in 2012 and new text end
165.23
new text begin thereafter.new text end
165.24 Sec. 28. Minnesota Statutes 2010, section 273.124, subdivision 13, is amended to read:
165.25 Subd. 13.
Homestead application. (a) A person who meets the homestead
165.26requirements under subdivision 1 must file a homestead application with the county
165.27assessor to initially obtain homestead classification.
165.28 (b) The format and contents of a uniform homestead application shall be prescribed
165.29by the commissioner of revenue. The application must clearly inform the taxpayer that
165.30this application must be signed by all owners who occupy the property or by the qualifying
165.31relative and returned to the county assessor in order for the property to receive homestead
165.32treatment.
165.33 (c) Every property owner applying for homestead classification must furnish to the
165.34county assessor the Social Security number of each occupant who is listed as an owner
165.35of the property on the deed of record, the name and address of each owner who does not
166.1occupy the property, and the name and Social Security number of each owner's spouse who
166.2occupies the property. The application must be signed by each owner who occupies the
166.3property and by each owner's spouse who occupies the property, or, in the case of property
166.4that qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative.
166.5 If a property owner occupies a homestead, the property owner's spouse may not
166.6claim another property as a homestead unless the property owner and the property owner's
166.7spouse file with the assessor an affidavit or other proof required by the assessor stating that
166.8the property qualifies as a homestead under subdivision 1, paragraph (e).
166.9 Owners or spouses occupying residences owned by their spouses and previously
166.10occupied with the other spouse, either of whom fail to include the other spouse's name
166.11and Social Security number on the homestead application or provide the affidavits or
166.12other proof requested, will be deemed to have elected to receive only partial homestead
166.13treatment of their residence. The remainder of the residence will be classified as
166.14nonhomestead residential. When an owner or spouse's name and Social Security number
166.15appear on homestead applications for two separate residences and only one application is
166.16signed, the owner or spouse will be deemed to have elected to homestead the residence for
166.17which the application was signed.
166.18 The Social Security numbers, state or federal tax returns or tax return information,
166.19including the federal income tax schedule F required by this section, or affidavits or other
166.20proofs of the property owners and spouses submitted under this or another section to
166.21support a claim for a property tax homestead classification are private data on individuals
166.22as defined by section
13.02, subdivision 12, but, notwithstanding that section, the private
166.23data may be disclosed to the commissioner of revenue, or, for purposes of proceeding
166.24under the Revenue Recapture Act to recover personal property taxes owing, to the county
166.25treasurer.
166.26 (d) If residential real estate is occupied and used for purposes of a homestead by a
166.27relative of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in
166.28order for the property to receive homestead status, a homestead application must be filed
166.29with the assessor. The Social Security number of each relative and spouse of a relative
166.30occupying the property shall be required on the homestead application filed under this
166.31subdivision. If a different relative of the owner subsequently occupies the property, the
166.32owner of the property must notify the assessor within 30 days of the change in occupancy.
166.33The Social Security number of a relative or relative's spouse occupying the property
166.34is private data on individuals as defined by section
13.02, subdivision 12, but may be
166.35disclosed to the commissioner of revenue, or, for the purposes of proceeding under the
166.36Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.
167.1 (e) The homestead application shall also notify the property owners that the
167.2application filed under this section will not be mailed annually and that if the property
167.3is granted homestead status for any assessment year, that same property shall remain
167.4classified as homestead until the property is sold or transferred to another person, or
167.5the owners, the spouse of the owner, or the relatives no longer use the property as their
167.6homestead. Upon the sale or transfer of the homestead property, a certificate of value must
167.7be timely filed with the county auditor as provided under section
272.115. Failure to
167.8notify the assessor within 30 days that the property has been sold, transferred, or that the
167.9owner, the spouse of the owner, or the relative is no longer occupying the property as a
167.10homestead, shall result in the penalty provided under this subdivision and the property
167.11will lose its current homestead status.
167.12 (f) If the homestead application is not returned within 30 days, the county will send a
167.13second application to the present owners of record. The notice of proposed property taxes
167.14prepared under section
275.065, subdivision 3, shall reflect the property's classification. If
167.15a homestead application has not been filed with the county by December 15, the assessor
167.16shall classify the property as nonhomestead for the current assessment year for taxes
167.17payable in the following year, provided that the owner may be entitled to receive the
167.18homestead classification by proper application under section
375.192.
167.19 (g) At the request of the commissioner, each county must give the commissioner a
167.20list that includes the name and Social Security number of each occupant of homestead
167.21property who is the property owner, property owner's spouse, qualifying relative of a
167.22property owner, or a spouse of a qualifying relative. The commissioner shall use the
167.23information provided on the lists as appropriate under the law, including for the detection
167.24of improper claims by owners, or relatives of owners, under chapter 290A.
167.25 (h) If the commissioner finds that a property owner may be claiming a fraudulent
167.26homestead, the commissioner shall notify the appropriate counties. Within 90 days of
167.27the notification, the county assessor shall investigate to determine if the homestead
167.28classification was properly claimed. If the property owner does not qualify, the county
167.29assessor shall notify the county auditor who will determine the amount of homestead
167.30benefits that had been improperly allowed. For the purpose of this section, "homestead
167.31benefits" means the tax reduction resulting from the classification as a homestead
new text begin and the new text end
167.32
new text begin homestead market value exclusion new text end under section
273.13, the taconite homestead credit
167.33under section
273.135, the residential homestead and agricultural homestead credits
new text begin creditnew text end
167.34under section
273.1384, and the supplemental homestead credit under section
273.1391.
167.35 The county auditor shall send a notice to the person who owned the affected property
167.36at the time the homestead application related to the improper homestead was filed,
168.1demanding reimbursement of the homestead benefits plus a penalty equal to 100 percent
168.2of the homestead benefits. The person notified may appeal the county's determination
168.3by serving copies of a petition for review with county officials as provided in section
168.4278.01
and filing proof of service as provided in section
278.01 with the Minnesota Tax
168.5Court within 60 days of the date of the notice from the county. Procedurally, the appeal
168.6is governed by the provisions in chapter 271 which apply to the appeal of a property tax
168.7assessment or levy, but without requiring any prepayment of the amount in controversy. If
168.8the amount of homestead benefits and penalty is not paid within 60 days, and if no appeal
168.9has been filed, the county auditor shall certify the amount of taxes and penalty to the county
168.10treasurer. The county treasurer will add interest to the unpaid homestead benefits and
168.11penalty amounts at the rate provided in section
279.03 for real property taxes becoming
168.12delinquent in the calendar year during which the amount remains unpaid. Interest may be
168.13assessed for the period beginning 60 days after demand for payment was made.
168.14 If the person notified is the current owner of the property, the treasurer may add the
168.15total amount of homestead benefits, penalty, interest, and costs to the ad valorem taxes
168.16otherwise payable on the property by including the amounts on the property tax statements
168.17under section
276.04, subdivision 3. The amounts added under this paragraph to the ad
168.18valorem taxes shall include interest accrued through December 31 of the year preceding
168.19the taxes payable year for which the amounts are first added. These amounts, when added
168.20to the property tax statement, become subject to all the laws for the enforcement of real or
168.21personal property taxes for that year, and for any subsequent year.
168.22 If the person notified is not the current owner of the property, the treasurer may
168.23collect the amounts due under the Revenue Recapture Act in chapter 270A, or use any of
168.24the powers granted in sections
277.20 and
277.21 without exclusion, to enforce payment
168.25of the homestead benefits, penalty, interest, and costs, as if those amounts were delinquent
168.26tax obligations of the person who owned the property at the time the application related
168.27to the improperly allowed homestead was filed. The treasurer may relieve a prior owner
168.28of personal liability for the homestead benefits, penalty, interest, and costs, and instead
168.29extend those amounts on the tax lists against the property as provided in this paragraph
168.30to the extent that the current owner agrees in writing. On all demands, billings, property
168.31tax statements, and related correspondence, the county must list and state separately the
168.32amounts of homestead benefits, penalty, interest and costs being demanded, billed or
168.33assessed.
168.34 (i) Any amount of homestead benefits recovered by the county from the property
168.35owner shall be distributed to the county, city or town, and school district where the
168.36property is located in the same proportion that each taxing district's levy was to the total
169.1of the three taxing districts' levy for the current year. Any amount recovered attributable
169.2to taconite homestead credit shall be transmitted to the St. Louis County auditor to be
169.3deposited in the taconite property tax relief account. Any amount recovered that is
169.4attributable to supplemental homestead credit is to be transmitted to the commissioner of
169.5revenue for deposit in the general fund of the state treasury. The total amount of penalty
169.6collected must be deposited in the county general fund.
169.7 (j) If a property owner has applied for more than one homestead and the county
169.8assessors cannot determine which property should be classified as homestead, the county
169.9assessors will refer the information to the commissioner. The commissioner shall make
169.10the determination and notify the counties within 60 days.
169.11 (k) In addition to lists of homestead properties, the commissioner may ask the
169.12counties to furnish lists of all properties and the record owners. The Social Security
169.13numbers and federal identification numbers that are maintained by a county or city
169.14assessor for property tax administration purposes, and that may appear on the lists retain
169.15their classification as private or nonpublic data; but may be viewed, accessed, and used by
169.16the county auditor or treasurer of the same county for the limited purpose of assisting the
169.17commissioner in the preparation of microdata samples under section
270C.12.
169.18 (l) On or before April 30 each year beginning in 2007, each county must provide the
169.19commissioner with the following data for each parcel of homestead property by electronic
169.20means as defined in section
289A.02, subdivision 8:
169.21 (i) the property identification number assigned to the parcel for purposes of taxes
169.22payable in the current year;
169.23 (ii) the name and Social Security number of each occupant of homestead property
169.24who is the property owner, property owner's spouse, qualifying relative of a property
169.25owner, or spouse of a qualifying relative;
169.26 (iii) the classification of the property under section
273.13 for taxes payable in the
169.27current year and in the prior year;
169.28 (iv) an indication of whether the property was classified as a homestead for taxes
169.29payable in the current year because of occupancy by a relative of the owner or by a
169.30spouse of a relative;
169.31 (v) the property taxes payable as defined in section
290A.03, subdivision 13, for the
169.32current year and the prior year;
169.33 (vi) the market value of improvements to the property first assessed for tax purposes
169.34for taxes payable in the current year;
169.35 (vii) the assessor's estimated market value assigned to the property for taxes payable
169.36in the current year and the prior year;
170.1 (viii) the taxable market value assigned to the property for taxes payable in the
170.2current year and the prior year;
170.3 (ix) whether there are delinquent property taxes owing on the homestead;
170.4 (x) the unique taxing district in which the property is located; and
170.5 (xi) such other information as the commissioner decides is necessary.
170.6 The commissioner shall use the information provided on the lists as appropriate
170.7under the law, including for the detection of improper claims by owners, or relatives
170.8of owners, under chapter 290A.
170.9
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for taxes payable in 2012 and new text end
170.10
new text begin thereafter.new text end
170.11 Sec. 29. Minnesota Statutes 2010, section 273.13, subdivision 21b, is amended to read:
170.12 Subd. 21b.
new text begin Net new text end tax capacity. (a) Gross tax capacity means the product of the
170.13appropriate gross class rates in this section and market values.
170.14(b) Net tax capacity means the product of the appropriate net class rates in this
170.15section and
new text begin taxable new text end market values.
170.16
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
170.17 Sec. 30. Minnesota Statutes 2010, section 273.1398, subdivision 3, is amended to read:
170.18 Subd. 3.
Disparity reduction aid. The amount of disparity aid certified for each
170.19taxing district within each unique taxing jurisdiction for taxes payable in the prior year
170.20shall be multiplied by the ratio of (1) the jurisdiction's tax capacity using the class rates for
170.21taxes payable in the year for which aid is being computed, to (2) its tax capacity using
170.22the class rates for taxes payable in the year prior to that for which aid is being computed,
170.23both based upon
new text begin taxable new text end market values for taxes payable in the year prior to that for which
170.24aid is being computed. If the commissioner determines that insufficient information is
170.25available to reasonably and timely calculate the numerator in this ratio for the first taxes
170.26payable year that a class rate change or new class rate is effective, the commissioner shall
170.27omit the effects of that class rate change or new class rate when calculating this ratio for
170.28aid payable in that taxes payable year. For aid payable in the year following a year for
170.29which such omission was made, the commissioner shall use in the denominator for the
170.30class that was changed or created, the tax capacity for taxes payable two years prior to that
170.31in which the aid is payable, based on
new text begin taxable new text end market values for taxes payable in the year
170.32prior to that for which aid is being computed.
171.1 Sec. 31. Minnesota Statutes 2010, section 273.1398, subdivision 4, is amended to read:
171.2 Subd. 4.
Disparity reduction credit. (a) Beginning with taxes payable in 1989,
171.3class 4a, class 3a, and class 3b property qualifies for a disparity reduction credit if: (1)
171.4the property is located in a border city that has an enterprise zone designated pursuant
171.5to section
469.168, subdivision 4; (2) the property is located in a city with a population
171.6greater than 2,500 and less than 35,000 according to the 1980 decennial census; (3) the
171.7city is adjacent to a city in another state or immediately adjacent to a city adjacent to a city
171.8in another state; and (4) the adjacent city in the other state has a population of greater than
171.95,000 and less than 75,000 according to the 1980 decennial census.
171.10 (b) The credit is an amount sufficient to reduce (i) the taxes levied on class 4a
171.11property to 2.3 percent of the property's
new text begin taxable new text end market value and (ii) the tax on class 3a
171.12and class 3b property to 2.3 percent of
new text begin taxable new text end market value.
171.13 (c) The county auditor shall annually certify the costs of the credits to the
171.14Department of Revenue. The department shall reimburse local governments for the
171.15property taxes forgone as the result of the credits in proportion to their total levies.
171.16 Sec. 32. Minnesota Statutes 2010, section 275.011, subdivision 1, is amended to read:
171.17 Subdivision 1.
Determination of levy limit. The property tax levied for any
171.18purpose under a special law that is not codified in Minnesota Statutes or a city charter
171.19provision and that is subject to a mill rate limitation imposed by the special law or city
171.20charter provision, excluding levies subject to mill rate limitations that use adjusted
171.21assessed values determined by the commissioner of revenue under section
124.2131, must
171.22not exceed the following amount for the years specified:
171.23(a) for taxes payable in 1988, the product of the applicable mill rate limitation
171.24imposed by special law or city charter provision multiplied by the total assessed valuation
171.25of all taxable property subject to the tax as adjusted by the provisions of Minnesota
171.26Statutes 1986, sections
272.64;
273.13, subdivision 7a; and
275.49;
171.27(b) for taxes payable in 1989, the product of (1) the property tax levy limitation for
171.28the taxes payable year 1988 determined under clause (a) multiplied by (2) an index for
171.29market valuation changes equal to the assessment year 1988 total market valuation of all
171.30taxable property subject to the tax divided by the assessment year 1987 total market
171.31valuation of all taxable property subject to the tax; and
171.32(c) for taxes payable in 1990 and subsequent years, the product of (1) the property
171.33tax levy limitation for the previous year determined pursuant to this subdivision multiplied
171.34by (2) an index for market valuation changes equal to the total market valuation of all
172.1taxable property subject to the tax for the current assessment year divided by the total
172.2market valuation of all taxable property subject to the tax for the previous assessment year.
172.3For the purpose of determining the property tax levy limitation for the taxes payable
172.4year 1988
new text begin 2013new text end and subsequent years under this subdivision, "total market valuation"
172.5means the total
new text begin estimatednew text end market valuation
new text begin valuenew text end of all taxable property subject to the
172.6tax without valuation adjustments for fiscal disparities (chapters 276A and 473F), tax
172.7increment financing (sections
to 469.179), or powerline credit (section 273.425)
new text begin new text end
172.8
new text begin as provided under section 273.032new text end .
172.9 Sec. 33. Minnesota Statutes 2010, section 275.077, subdivision 2, is amended to read:
172.10 Subd. 2.
Correction of levy amount. The difference between the correct levy and
172.11the erroneous levy shall be added to the township levy for the subsequent levy year;
172.12provided that if the amount of the difference exceeds 0.12089 percent of taxable
new text begin estimatednew text end
172.13market value, the excess shall be added to the township levy for the second and later
172.14subsequent levy years, not to exceed an additional levy of 0.12089 percent of taxable
new text begin new text end
172.15
new text begin estimatednew text end market value in any year, until the full amount of the difference has been levied.
172.16The funds collected from the corrected levies shall be used to reimburse the county for the
172.17payment required by subdivision 1.
172.18 Sec. 34. Minnesota Statutes 2010, section 275.71, subdivision 4, is amended to read:
172.19 Subd. 4.
Adjusted levy limit base. For taxes levied in 2008 through 2010, the
172.20adjusted levy limit base is equal to the levy limit base computed under subdivision 2
172.21or section
275.72, multiplied by:
172.22 (1) one plus the percentage growth in the implicit price deflator, but the percentage
172.23shall not be less than zero or exceed 3.9 percent;
172.24 (2) one plus a percentage equal to 50 percent of the percentage increase in the number
172.25of households, if any, for the most recent 12-month period for which data is available; and
172.26 (3) one plus a percentage equal to 50 percent of the percentage increase in the
172.27taxable
new text begin estimatednew text end market value of the jurisdiction due to new construction of class 3
172.28property, as defined in section
273.13, subdivision 4, except for state-assessed utility and
172.29railroad property, for the most recent year for which data is available.
172.30 Sec. 35. Minnesota Statutes 2011 Supplement, section 276.04, subdivision 2, is
172.31amended to read:
172.32 Subd. 2.
Contents of tax statements. (a) The treasurer shall provide for the
172.33printing of the tax statements. The commissioner of revenue shall prescribe the form of
173.1the property tax statement and its contents. The tax statement must not state or imply
173.2that property tax credits are paid by the state of Minnesota. The statement must contain
173.3a tabulated statement of the dollar amount due to each taxing authority and the amount
173.4of the state tax from the parcel of real property for which a particular tax statement is
173.5prepared. The dollar amounts attributable to the county, the state tax, the voter approved
173.6school tax, the other local school tax, the township or municipality, and the total of
173.7the metropolitan special taxing districts as defined in section
275.065, subdivision 3,
173.8paragraph (i), must be separately stated. The amounts due all other special taxing districts,
173.9if any, may be aggregated except that any levies made by the regional rail authorities in the
173.10county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter
173.11398A shall be listed on a separate line directly under the appropriate county's levy. If the
173.12county levy under this paragraph includes an amount for a lake improvement district as
173.13defined under sections
103B.501 to
103B.581, the amount attributable for that purpose
173.14must be separately stated from the remaining county levy amount. In the case of Ramsey
173.15County, if the county levy under this paragraph includes an amount for public library
173.16service under section
134.07, the amount attributable for that purpose may be separated
173.17from the remaining county levy amount. The amount of the tax on homesteads qualifying
173.18under the senior citizens' property tax deferral program under chapter 290B is the total
173.19amount of property tax before subtraction of the deferred property tax amount. The
173.20amount of the tax on contamination value imposed under sections
270.91 to
270.98, if any,
173.21must also be separately stated. The dollar amounts, including the dollar amount of any
173.22special assessments, may be rounded to the nearest even whole dollar. For purposes of this
173.23section whole odd-numbered dollars may be adjusted to the next higher even-numbered
173.24dollar. The amount of market value excluded under section
273.11, subdivision 16, if any,
173.25must also be listed on the tax statement.
173.26 (b) The property tax statements for manufactured homes and sectional structures
173.27taxed as personal property shall contain the same information that is required on the
173.28tax statements for real property.
173.29 (c) Real and personal property tax statements must contain the following information
173.30in the order given in this paragraph. The information must contain the current year tax
173.31information in the right column with the corresponding information for the previous year
173.32in a column on the left:
173.33 (1) the property's estimated market value under section
273.11, subdivision 1;
173.34(2) the property's homestead market value exclusion under section
273.13,
173.35subdivision 35;
174.1 (3) the property's taxable market value after reductions under sections
,
174.2subdivisions 1a and 16, and
273.13, subdivision 35new text begin section 272.03, subdivision 15new text end ;
174.3 (4) the property's gross tax, before credits;
174.4 (5) for homestead agricultural properties, the credit under section
273.1384;
174.5 (6) any credits received under sections
273.119;
273.1234 or
273.1235;
273.135;
174.6273.1391
;
273.1398, subdivision 4;
469.171; and
473H.10, except that the amount of
174.7credit received under section
273.135 must be separately stated and identified as "taconite
174.8tax relief"; and
174.9 (7) the net tax payable in the manner required in paragraph (a).
174.10 (d) If the county uses envelopes for mailing property tax statements and if the county
174.11agrees, a taxing district may include a notice with the property tax statement notifying
174.12taxpayers when the taxing district will begin its budget deliberations for the current
174.13year, and encouraging taxpayers to attend the hearings. If the county allows notices to
174.14be included in the envelope containing the property tax statement, and if more than
174.15one taxing district relative to a given property decides to include a notice with the tax
174.16statement, the county treasurer or auditor must coordinate the process and may combine
174.17the information on a single announcement.
174.18 Sec. 36. Minnesota Statutes 2010, section 276A.01, subdivision 10, is amended to read:
174.19 Subd. 10.
new text begin Adjusted new text end market value. "
new text begin Adjusted new text end market value" of real and personal
174.20property within a municipality means the assessor's estimated
new text begin taxablenew text end market value
new text begin , new text end
174.21
new text begin as defined in section 272.03,new text end of all real and personal property, including the value of
174.22manufactured housing, within the municipality. For purposes of sections
to
174.23, the commissioner of revenue shall annually make determinations and reports
174.24with respect to each municipality which are comparable to those it makes for school
174.25districts
new text begin , adjusted for sales ratios in a manner similar to the adjustments made to city and new text end
174.26
new text begin town net tax capacities new text end under section
127A.48, subdivisions 1 to 6, in the same manner
174.27and at the same times prescribed by the subdivision. The commissioner of revenue shall
174.28annually determine, for each municipality, information comparable to that required by
174.29section
475.53, subdivision 4, for school districts, as soon as practicable after it becomes
174.30available. The commissioner of revenue shall then compute the equalized market value of
174.31property within each municipality.
174.32
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
174.33 Sec. 37. Minnesota Statutes 2010, section 276A.01, subdivision 12, is amended to read:
175.1 Subd. 12.
Fiscal capacity. "Fiscal capacity" of a municipality means its valuation
new text begin new text end
175.2
new text begin adjusted market valuenew text end , determined as of January 2 of any year, divided by its population,
175.3determined as of a date in the same year.
175.4 Sec. 38. Minnesota Statutes 2010, section 276A.01, subdivision 13, is amended to read:
175.5 Subd. 13.
Average fiscal capacity. "Average fiscal capacity" of municipalities
175.6means the sum of the valuations
new text begin adjusted market valuesnew text end of all municipalities, determined
175.7as of January 2 of any year, divided by the sum of their populations, determined as of
175.8a date in the same year.
175.9 Sec. 39. Minnesota Statutes 2010, section 276A.01, subdivision 15, is amended to read:
175.10 Subd. 15.
Net tax capacity. "Net tax capacity" means the
new text begin taxablenew text end market value of
175.11real and personal property multiplied by its net tax capacity rates in section
273.13.
175.12 Sec. 40. Minnesota Statutes 2010, section 287.08, is amended to read:
175.13
287.08 TAX, HOW PAYABLE; RECEIPTS.
175.14 (a) The tax imposed by sections
287.01 to
287.12 must be paid to the treasurer of
175.15any county in this state in which the real property or some part is located at or before
175.16the time of filing the mortgage for record. The treasurer shall endorse receipt on the
175.17mortgage and the receipt is conclusive proof that the tax has been paid in the amount
175.18stated and authorizes any county recorder or registrar of titles to record the mortgage. Its
175.19form, in substance, shall be "registration tax hereon of ..................... dollars paid." If the
175.20mortgage is exempt from taxation the endorsement shall, in substance, be "exempt from
175.21registration tax." In either case the receipt must be signed by the treasurer. In case the
175.22treasurer is unable to determine whether a claim of exemption should be allowed, the tax
175.23must be paid as in the case of a taxable mortgage. For documents submitted electronically,
175.24the endorsements and tax amount shall be affixed electronically and no signature by the
175.25treasurer will be required. The actual payment method must be arranged in advance
175.26between the submitter and the receiving county.
175.27 (b) The county treasurer may refund in whole or in part any mortgage registry tax
175.28overpayment if a written application by the taxpayer is submitted to the county treasurer
175.29within 3-1/2 years from the date of the overpayment. If the county has not issued a denial
175.30of the application, the taxpayer may bring an action in Tax Court in the county in which
175.31the tax was paid at any time after the expiration of six months from the time that the
175.32application was submitted. A denial of refund may be appealed within 60 days from
175.33the date of the denial by bringing an action in Tax Court in the county in which the tax
176.1was paid. The action is commenced by the serving of a petition for relief on the county
176.2treasurer, and by filing a copy with the court. The county attorney shall defend the action.
176.3The county treasurer shall notify the treasurer of each county that has or would receive a
176.4portion of the tax as paid.
176.5 (c) If the county treasurer determines a refund should be paid, or if a refund is
176.6ordered by the court, the county treasurer of each county that actually received a portion
176.7of the tax shall immediately pay a proportionate share of three percent of the refund
176.8using any available county funds. The county treasurer of each county that received, or
176.9would have received, a portion of the tax shall also pay their county's proportionate share
176.10of the remaining 97 percent of the court-ordered refund on or before the 20th day of the
176.11following month using solely the mortgage registry tax funds that would be paid to the
176.12commissioner of revenue on that date under section
287.12. If the funds on hand under
176.13this procedure are insufficient to fully fund 97 percent of the court-ordered refund, the
176.14county treasurer of the county in which the action was brought shall file a claim with the
176.15commissioner of revenue under section
16A.48 for the remaining portion of 97 percent of
176.16the refund, and shall pay over the remaining portion upon receipt of a warrant from the
176.17state issued pursuant to the claim.
176.18 (d) When any mortgage covers real property located in more than one county in this
176.19state the total tax must be paid to the treasurer of the county where the mortgage is first
176.20presented for recording, and the payment must be receipted as provided in paragraph
176.21(a). If the principal debt or obligation secured by such a multiple county mortgage
176.22exceeds $10,000,000, the nonstate portion of the tax must be divided and paid over by
176.23the county treasurer receiving it, on or before the 20th day of each month after receipt,
176.24to the county or counties entitled in the ratio that the
new text begin estimated new text end market value of the real
176.25property covered by the mortgage in each county bears to the
new text begin estimated new text end market value of
176.26all the real property in this state described in the mortgage. In making the division and
176.27payment the county treasurer shall send a statement giving the description of the real
176.28property described in the mortgage and the
new text begin estimated new text end market value of the part located in
176.29each county. For this purpose, the treasurer of any county may require the treasurer of
176.30any other county to certify to the former the
new text begin estimated new text end market valuation
new text begin valuenew text end of any tract
176.31of real property in any mortgage.
176.32 (e) The mortgagor must pay the tax imposed by sections
287.01 to
287.12. The
176.33mortgagee may undertake to collect and remit the tax on behalf of the mortgagor. If the
176.34mortgagee collects money from the mortgagor to remit the tax on behalf of the mortgagor,
176.35the mortgagee has a fiduciary duty to remit the tax on behalf of the mortgagor as to the
177.1amount of the tax collected for that purpose and the mortgagor is relieved of any further
177.2obligation to pay the tax as to the amount collected by the mortgagee for this purpose.
177.3 Sec. 41. Minnesota Statutes 2010, section 287.23, subdivision 1, is amended to read:
177.4 Subdivision 1.
Real property outside county. If any taxable deed or instrument
177.5describes any real property located in more than one county in this state, the total tax must
177.6be paid to the treasurer of the county where the document is first presented for recording,
177.7and the payment must be receipted as provided in section
287.08. If the net consideration
177.8exceeds $700,000, the nonstate portion of the tax must be divided and paid over by the
177.9county treasurer receiving it, on or before the 20th day of each month after receipt, to
177.10the county or counties entitled in the ratio which the
new text begin estimated new text end market value of the real
177.11property covered by the document in each county bears to the
new text begin estimated new text end market value of
177.12all the real property in this state described in the document. In making the division and
177.13payment the county treasurer shall send a statement to the other involved counties giving
177.14the description of the real property described in the document and the
new text begin estimatednew text end market
177.15value of the part located in each county. The treasurer of any county may require the
177.16treasurer of any other county to certify to the former the
new text begin estimated new text end market valuation
new text begin valuenew text end
177.17of any parcel of real property for this purpose.
177.18 Sec. 42. Minnesota Statutes 2010, section 353G.08, subdivision 2, is amended to read:
177.19 Subd. 2.
Cash flow funding requirement. If the executive director determines that
177.20an account in the voluntary statewide lump-sum volunteer firefighter retirement plan has
177.21insufficient assets to meet the service pensions determined payable from the account,
177.22the executive director shall certify the amount of the potential service pension shortfall
177.23to the municipality or municipalities and the municipality or municipalities shall make
177.24an additional employer contribution to the account within ten days of the certification.
177.25If more than one municipality is associated with the account, unless the municipalities
177.26agree to a different allocation, the municipalities shall allocate the additional employer
177.27contribution one-half in proportion to the population of each municipality and one-half in
177.28proportion to the
new text begin estimated new text end market value of the property of each municipality.
177.29 Sec. 43. Minnesota Statutes 2010, section 365.025, subdivision 4, is amended to read:
177.30 Subd. 4.
Major purchases: notice, petition, election. Before buying anything
177.31under subdivision 2 that costs more than 0.24177 percent of the
new text begin estimatednew text end market value of
177.32the town, the town must follow this subdivision.
178.1The town must publish in its official newspaper the board's resolution to pay for the
178.2property over time. Then a petition for an election on the contract may be filed with the
178.3clerk. The petition must be filed within ten days after the resolution is published. To
178.4require the election the petition must be signed by a number of voters equal to ten percent
178.5of the voters at the last regular town election. The contract then must be approved by a
178.6majority of those voting on the question. The question may be voted on at a regular
178.7or special election.
178.8 Sec. 44. Minnesota Statutes 2010, section 366.095, subdivision 1, is amended to read:
178.9 Subdivision 1.
Certificates of indebtedness. The town board may issue certificates
178.10of indebtedness within the debt limits for a town purpose otherwise authorized by law.
178.11The certificates shall be payable in not more than ten years and be issued on the terms and
178.12in the manner as the board may determine. If the amount of the certificates to be issued
178.13exceeds 0.25 percent of the
new text begin estimated new text end market value of the town, they shall not be issued
178.14for at least ten days after publication in a newspaper of general circulation in the town of
178.15the board's resolution determining to issue them. If within that time, a petition asking for
178.16an election on the proposition signed by voters equal to ten percent of the number of voters
178.17at the last regular town election is filed with the clerk, the certificates shall not be issued
178.18until their issuance has been approved by a majority of the votes cast on the question at
178.19a regular or special election. A tax levy shall be made to pay the principal and interest
178.20on the certificates as in the case of bonds.
178.21 Sec. 45. Minnesota Statutes 2010, section 366.27, is amended to read:
178.22
366.27 FIREFIGHTERS' RELIEF; TAX LEVY.
178.23The town board of any town in this state having therein a platted portion on
178.24which resides 1,200 or more people, and wherein a duly incorporated firefighters' relief
178.25association is located may each year levy a tax not to exceed 0.00806 percent of taxable
new text begin new text end
178.26
new text begin estimatednew text end market value for the benefit of the relief association.
178.27 Sec. 46. Minnesota Statutes 2010, section 368.01, subdivision 23, is amended to read:
178.28 Subd. 23.
Financing purchase of certain equipment. The town board may issue
178.29certificates of indebtedness within debt limits to purchase fire or police equipment or
178.30ambulance equipment or street construction or maintenance equipment. The certificates
178.31shall be payable in not more than five years and be issued on terms and in the manner
178.32as the board may determine. If the amount of the certificates to be issued to finance a
178.33purchase exceeds 0.24177 percent of the
new text begin estimated new text end market value of the town, excluding
179.1money and credits, they shall not be issued for at least ten days after publication in the
179.2official newspaper of a town board resolution determining to issue them. If before the end
179.3of that time, a petition asking for an election on the proposition signed by voters equal
179.4to ten percent of the number of voters at the last regular town election is filed with the
179.5clerk, the certificates shall not be issued until the proposition of their issuance has been
179.6approved by a majority of the votes cast on the question at a regular or special election.
179.7A tax levy shall be made for the payment of the principal and interest on the certificates
179.8as in the case of bonds.
179.9 Sec. 47. Minnesota Statutes 2010, section 368.47, is amended to read:
179.10
368.47 TOWNS MAY BE DISSOLVED.
179.11(1) When the voters residing within a town have failed to elect any town officials for
179.12more than ten years continuously;
179.13(2) when a town has failed for a period of ten years to exercise any of the powers
179.14and functions of a town;
179.15(3) when the
new text begin estimated new text end market value of a town drops to less than $165,000;
179.16(4) when the tax delinquency of a town, exclusive of taxes that are delinquent or
179.17unpaid because they are contested in proceedings for the enforcement of taxes, amounts to
179.1812 percent of its market value; or
179.19(5) when the state or federal government has acquired title to 50 percent of the
179.20real estate of a town,
179.21which facts, or any of them, may be found and determined by the resolution of the county
179.22board of the county in which the town is located, according to the official records in the
179.23office of the county auditor, the county board by resolution may declare the town, naming
179.24it, dissolved and no longer entitled to exercise any of the powers or functions of a town.
179.25In Cass, Itasca, and St. Louis Counties, before the dissolution is effective the voters
179.26of the town shall express their approval or disapproval. The town clerk shall, upon a
179.27petition signed by a majority of the registered voters of the town, filed with the clerk at
179.28least 60 days before a regular or special town election, give notice at the same time and
179.29in the same manner of the election that the question of dissolution of the town will be
179.30submitted for determination at the election. At the election the question shall be voted
179.31upon by a separate ballot, the terms of which shall be either "for dissolution" or "against
179.32dissolution." The ballot shall be deposited in a separate ballot box and the result of the
179.33voting canvassed, certified, and returned in the same manner and at the same time as
179.34other facts and returns of the election. If a majority of the votes cast at the election are
180.1for dissolution, the town shall be dissolved. If a majority of the votes cast at the election
180.2are against dissolution, the town shall not be dissolved.
180.3When a town is dissolved under sections
368.47 to
368.49 the county shall acquire
180.4title to any telephone company or other business conducted by the town. The business
180.5shall be operated by the board of county commissioners until it can be sold. The
180.6subscribers or patrons of the business shall have the first opportunity of purchase. If the
180.7town has any outstanding indebtedness chargeable to the business, the county auditor shall
180.8levy a tax against the property situated in the dissolved town to pay the indebtedness
180.9as it becomes due.
180.10 Sec. 48. Minnesota Statutes 2010, section 370.01, is amended to read:
180.11
370.01 CHANGE OF BOUNDARIES; CREATION OF NEW COUNTIES.
180.12The boundaries of counties may be changed by taking territory from a county and
180.13attaching it to an adjoining county, and new counties may be established out of territory of
180.14one or more existing counties. A new county shall contain at least 400 square miles and
180.15have at least 4,000 inhabitants. A proposed new county must have a total taxable
new text begin estimatednew text end
180.16market value of at least 35 percent of (i) the total taxable
new text begin estimatednew text end market value of the
180.17existing county, or (ii) the average total taxable
new text begin estimatednew text end market value of the existing
180.18counties, included in the proposition. The determination of the taxable
new text begin estimatednew text end market
180.19value of a county must be made by the commissioner of revenue. An existing county shall
180.20not be reduced in area below 400 square miles, have less than 4,000 inhabitants, or have a
180.21total taxable
new text begin estimatednew text end market value of less than that required of a new county.
180.22No change in the boundaries of any county having an area of more than 2,500 square
180.23miles, whether by the creation of a new county, or otherwise, shall detach from the existing
180.24county any territory within 12 miles of the county seat.
180.25 Sec. 49. Minnesota Statutes 2010, section 373.40, subdivision 1, is amended to read:
180.26 Subdivision 1.
Definitions. For purposes of this section, the following terms have
180.27the meanings given.
180.28(a) "Bonds" means an obligation as defined under section
475.51.
180.29(b) "Capital improvement" means acquisition or betterment of public lands,
180.30buildings, or other improvements within the county for the purpose of a county courthouse,
180.31administrative building, health or social service facility, correctional facility, jail, law
180.32enforcement center, hospital, morgue, library, park, qualified indoor ice arena, roads and
180.33bridges, and the acquisition of development rights in the form of conservation easements
180.34under chapter 84C. An improvement must have an expected useful life of five years or
181.1more to qualify. "Capital improvement" does not include a recreation or sports facility
181.2building (such as, but not limited to, a gymnasium, ice arena, racquet sports facility,
181.3swimming pool, exercise room or health spa), unless the building is part of an outdoor
181.4park facility and is incidental to the primary purpose of outdoor recreation.
181.5(c) "Metropolitan county" means a county located in the seven-county metropolitan
181.6area as defined in section
473.121 or a county with a population of 90,000 or more.
181.7(d) "Population" means the population established by the most recent of the
181.8following (determined as of the date the resolution authorizing the bonds was adopted):
181.9(1) the federal decennial census,
181.10(2) a special census conducted under contract by the United States Bureau of the
181.11Census, or
181.12(3) a population estimate made either by the Metropolitan Council or by the state
181.13demographer under section
4A.02.
181.14(e) "Qualified indoor ice arena" means a facility that meets the requirements of
181.15section
373.43.
181.16(f) "Tax capacity" means total taxable market value, but does not include captured
181.17market value.
181.18 Sec. 50. Minnesota Statutes 2010, section 373.40, subdivision 4, is amended to read:
181.19 Subd. 4.
Limitations on amount. A county may not issue bonds under this section
181.20if the maximum amount of principal and interest to become due in any year on all the
181.21outstanding bonds issued pursuant to this section (including the bonds to be issued) will
181.22equal or exceed 0.12 percent of taxable
new text begin the estimatednew text end market value of property in the
181.23county. Calculation of the limit must be made using the taxable
new text begin estimatednew text end market value for
181.24the taxes payable year in which the obligations are issued and sold. This section does not
181.25limit the authority to issue bonds under any other special or general law.
181.26 Sec. 51. Minnesota Statutes 2010, section 375.167, subdivision 1, is amended to read:
181.27 Subdivision 1.
Appropriations. Notwithstanding any contrary law, a county board
181.28may appropriate from the general revenue fund to any nonprofit corporation a sum not
181.29to exceed 0.00604 percent of taxable
new text begin estimatednew text end market value to provide legal assistance
181.30to persons who are unable to afford private legal counsel.
181.31 Sec. 52. Minnesota Statutes 2010, section 375.18, subdivision 3, is amended to read:
181.32 Subd. 3.
Courthouse. Each county board may erect, furnish, and maintain a
181.33suitable courthouse. No indebtedness shall be created for a courthouse in excess of an
182.1amount equal to a levy of 0.04030 percent of taxable
new text begin estimatednew text end market value without the
182.2approval of a majority of the voters of the county voting on the question of issuing the
182.3obligation at an election.
182.4 Sec. 53. Minnesota Statutes 2010, section 375.555, is amended to read:
182.5
375.555 FUNDING.
182.6To implement the county emergency jobs program, the county board may expend
182.7an amount equal to what would be generated by a levy of 0.01209 percent of taxable
new text begin new text end
182.8
new text begin estimatednew text end market value. The money to be expended may be from any available funds
182.9not otherwise earmarked.
182.10 Sec. 54. Minnesota Statutes 2010, section 383B.152, is amended to read:
182.11
383B.152 BUILDING AND MAINTENANCE FUND.
182.12The county board may by resolution levy a tax to provide money which shall be kept
182.13in a fund known as the county reserve building and maintenance fund. Money in the fund
182.14shall be used solely for the construction, maintenance, and equipping of county buildings
182.15that are constructed or maintained by the board. The levy shall not be subject to any limit
182.16fixed by any other law or by any board of tax levy or other corresponding body, but shall
182.17not exceed 0.02215 percent of taxable
new text begin estimatednew text end market value, less the amount required by
182.18chapter 475 to be levied in the year for the payment of the principal of and interest on all
182.19bonds issued pursuant to Extra Session Laws 1967, chapter 47, section 1.
182.20 Sec. 55. Minnesota Statutes 2010, section 383B.245, is amended to read:
182.21
383B.245 LIBRARY LEVY.
182.22 (a) The county board may levy a tax on the taxable property within the county to
182.23acquire, better, and construct county library buildings and branches and to pay principal
182.24and interest on bonds issued for that purpose.
182.25 (b) The county board may by resolution adopted by a five-sevenths vote issue and
182.26sell general obligation bonds of the county in the manner provided in sections
475.60 to
182.27475.73
. The bonds shall not be subject to the limitations of sections
475.51 to
475.59,
182.28but the maturity years and amounts and interest rates of each series of bonds shall be
182.29fixed so that the maximum amount of principal and interest to become due in any year,
182.30on the bonds of that series and of all outstanding series issued by or for the purposes of
182.31libraries, shall not exceed an amount equal to 0.01612 percent of
new text begin estimated new text end market value
182.32of all taxable property in the county as last finally equalized before the issuance of the new
183.1series. When the tax levy authorized in this section is collected it shall be appropriated
183.2and credited to a debt service fund for the bonds in amounts required each year in lieu of a
183.3countywide tax levy for the debt service fund under section
475.61.
183.4 Sec. 56. Minnesota Statutes 2010, section 383B.73, subdivision 1, is amended to read:
183.5 Subdivision 1.
Levy. To provide funds for the purposes of the Three Rivers Park
183.6District as set forth in its annual budget, in lieu of the levies authorized by any other
183.7special law for such purposes, the Board of Park District Commissioners may levy
183.8taxes on all the taxable property in the county and park district at a rate not exceeding
183.90.03224 percent of
new text begin estimatednew text end market value. Notwithstanding section
398.16, on or before
183.10October 1 of each year, after public hearing, the Board of Park District Commissioners
183.11shall adopt a budget for the ensuing year and shall determine the total amount necessary
183.12to be raised from ad valorem tax levies to meet its budget. The Board of Park District
183.13Commissioners shall submit the budget to the county board. The county board may veto
183.14or modify an item contained in the budget. If the county board determines to veto or to
183.15modify an item in the budget, it must, within 15 days after the budget was submitted by
183.16the district board, state in writing the specific reasons for its objection to the item vetoed
183.17or the reason for the modification. The Park District Board, after consideration of the
183.18county board's objections and proposed modifications, may reapprove a vetoed item or the
183.19original version of an item with respect to which a modification has been proposed, by a
183.20two-thirds majority. If the district board does not reapprove a vetoed item, the item shall
183.21be deleted from the budget. If the district board does not reapprove the original version
183.22of a modified item, the item shall be included in the budget as modified by the county
183.23board. After adoption of the final budget and no later than October 1, the superintendent
183.24of the park district shall certify to the office of the Hennepin County director of tax and
183.25public records exercising the functions of the county auditor the total amount to be raised
183.26from ad valorem tax levies to meet its budget for the ensuing year. The director of tax
183.27and public records shall add the amount of any levy certified by the district to other tax
183.28levies on the property of the county within the district for collection by the director of tax
183.29and public records with other taxes. When collected, the director shall make settlement of
183.30such taxes with the district in the same manner as other taxes are distributed to the other
183.31political subdivisions in Hennepin County.
183.32 Sec. 57. Minnesota Statutes 2010, section 383E.20, is amended to read:
183.33
383E.20 BONDING FOR COUNTY LIBRARY BUILDINGS.
184.1 The Anoka County Board may, by resolution adopted by a four-sevenths vote, issue
184.2and sell general obligation bonds of the county in the manner provided in chapter 475 to
184.3acquire, better, and construct county library buildings. The bonds shall not be subject to the
184.4requirements of sections 475.57 to 475.59. The maturity years and amounts and interest
184.5rates of each series of bonds shall be fixed so that the maximum amount of principal and
184.6interest to become due in any year, on the bonds of that series and of all outstanding series
184.7issued by or for the purposes of libraries, shall not exceed an amount equal to .01 percent
184.8of the taxable
new text begin estimatednew text end market value of all taxable property in the county, excluding any
184.9taxable property taxed by any city for the support of any free public library. When the tax
184.10levy authorized in this section is collected, it shall be appropriated and credited to a debt
184.11service fund for the bonds. The tax levy for the debt service fund under section 475.61
184.12shall be reduced by the amount available or reasonably anticipated to be available in the
184.13fund to make payments otherwise payable from the levy pursuant to section 475.61.
184.14 Sec. 58. Minnesota Statutes 2010, section 383E.23, is amended to read:
184.15
383E.23 LIBRARY TAX.
184.16The Anoka County Board may levy a tax of not more than .01 percent of the taxable
new text begin new text end
184.17
new text begin estimatednew text end market value of taxable property located within the county excluding any
184.18taxable property taxed by any city for the support of any free public library, to acquire,
184.19better, and construct county library buildings and to pay principal and interest on bonds
184.20issued for that purpose. The tax shall be disregarded in the calculation of levies or limits
184.21on levies provided by section 373.40, or other law.
184.22 Sec. 59. Minnesota Statutes 2010, section 385.31, is amended to read:
184.23
385.31 PAYMENT OF COUNTY ORDERS OR WARRANTS.
184.24When any order or warrant drawn on the treasurer is presented for payment, if there
184.25is money in the treasury for that purpose, the county treasurer shall redeem the same, and
184.26write across the entire face thereof the word "redeemed," the date of the redemption, and
184.27the treasurer's official signature. If there is not sufficient funds in the proper accounts to
184.28pay such orders they shall be numbered and registered in their order of presentation,
184.29and proper endorsement thereof shall be made on such orders and they shall be entitled
184.30to payment in like order. Such orders shall bear interest at not to exceed the rate of six
184.31percent per annum from such date of presentment. The treasurer, as soon as there is
184.32sufficient money in the treasury, shall appropriate and set apart a sum sufficient for the
184.33payment of the orders so presented and registered, and, if entitled to interest, issue to the
184.34original holder a notice that interest will cease in 30 days from the date of such notice; and,
185.1if orders thus entitled to priority of payment are not then presented, the next in order of
185.2registry may be paid until such orders are presented. No interest shall be paid on any order,
185.3except upon a warrant drawn by the county auditor for that purpose, giving the number
185.4and the date of the order on account of which the interest warrant is drawn. In any county
185.5in this state now or hereafter having a
new text begin an estimatednew text end market value of all taxable property,
185.6exclusive of money and credits, of not less than $1,033,000,000, the county treasurer, in
185.7order to save payment of interest on county warrants drawn upon a fund in which there
185.8shall be temporarily insufficient money in the treasury to redeem the same, may borrow
185.9temporarily from any other fund in the county treasury in which there is a sufficient balance
185.10to care for the needs of such fund and allow a temporary loan or transfer to any other fund,
185.11and may pay such warrants out of such funds. Any such money so transferred and used in
185.12redeeming such county warrants shall be returned to the fund from which drawn as soon
185.13as money shall come in to the credit of such fund on which any such warrant was drawn
185.14and paid as aforesaid. Any county operating on a cash basis may use a combined form of
185.15warrant or order and check, which, when signed by the chair of the county board and by
185.16the auditor, is an order or warrant for the payment of the claim, and, when countersigned
185.17by the county treasurer, is a check for the payment of the amount thereof.
185.18 Sec. 60. Minnesota Statutes 2010, section 394.36, subdivision 1, is amended to read:
185.19 Subdivision 1.
Continuation of nonconformity; limitations. Except as provided in
185.20subdivision 2, 3, or 4, any nonconformity, including the lawful use or occupation of land
185.21or premises existing at the time of the adoption of an official control under this chapter,
185.22may be continued, although the use or occupation does not conform to the official control.
185.23If the nonconformity or occupancy is discontinued for a period of more than one year, or
185.24any nonconforming building or structure is destroyed by fire or other peril to the extent of
185.2550 percent of its
new text begin estimated new text end market value, any subsequent use or occupancy of the land or
185.26premises shall be a conforming use or occupancy.
185.27 Sec. 61. Minnesota Statutes 2010, section 398A.04, subdivision 8, is amended to read:
185.28 Subd. 8.
Taxation. Before deciding to exercise the power to tax, the authority shall
185.29give six weeks' published notice in all municipalities in the region. If a number of voters
185.30in the region equal to five percent of those who voted for candidates for governor at the
185.31last gubernatorial election present a petition within nine weeks of the first published notice
185.32to the secretary of state requesting that the matter be submitted to popular vote, it shall be
185.33submitted at the next general election. The question prepared shall be:
185.34"Shall the regional rail authority have the power to impose a property tax?
186.1
Yes
.....
186.2
No
.....
"
186.3If a majority of those voting on the question approve or if no petition is presented
186.4within the prescribed time the authority may levy a tax at any annual rate not exceeding
186.50.04835 percent of
new text begin estimated new text end market value of all taxable property situated within the
186.6municipality or municipalities named in its organization resolution. Its recording officer
186.7shall file, on or before September 15, in the office of the county auditor of each county
186.8in which territory under the jurisdiction of the authority is located a certified copy of the
186.9board of commissioners' resolution levying the tax, and each county auditor shall assess
186.10and extend upon the tax rolls of each municipality named in the organization resolution the
186.11portion of the tax that bears the same ratio to the whole amount that the net tax capacity of
186.12taxable property in that municipality bears to the net tax capacity of taxable property in
186.13all municipalities named in the organization resolution. Collections of the tax shall be
186.14remitted by each county treasurer to the treasurer of the authority. For taxes levied in 1991,
186.15the amount levied for light rail transit purposes under this subdivision shall not exceed 75
186.16percent of the amount levied in 1990 for light rail transit purposes under this subdivision.
186.17 Sec. 62. Minnesota Statutes 2010, section 401.05, subdivision 3, is amended to read:
186.18 Subd. 3.
Leasing. (a) A county or joint powers board of a group of counties
186.19which acquires or constructs and equips or improves facilities under this chapter may,
186.20with the approval of the board of county commissioners of each county, enter into a
186.21lease agreement with a city situated within any of the counties, or a county housing and
186.22redevelopment authority established under chapter 469 or any special law. Under the lease
186.23agreement, the city or county housing and redevelopment authority shall:
186.24(1) construct or acquire and equip or improve a facility in accordance with plans
186.25prepared by or at the request of a county or joint powers board of the group of counties
186.26and approved by the commissioner of corrections; and
186.27(2) finance the facility by the issuance of revenue bonds.
186.28(b) The county or joint powers board of a group of counties may lease the facility
186.29site, improvements, and equipment for a term upon rental sufficient to produce revenue
186.30for the prompt payment of the revenue bonds and all interest accruing on them. Upon
186.31completion of payment, the lessee shall acquire title. The real and personal property
186.32acquired for the facility constitutes a project and the lease agreement constitutes a revenue
186.33agreement as provided in sections
469.152 to
469.165. All proceedings by the city or
186.34county housing and redevelopment authority and the county or joint powers board shall be
186.35as provided in sections
469.152 to
469.165, with the following adjustments:
187.1(1) no tax may be imposed upon the property;
187.2(2) the approval of the project by the commissioner of employment and economic
187.3development is not required;
187.4(3) the Department of Corrections shall be furnished and shall record information
187.5concerning each project as it may prescribe, in lieu of reports required on other projects to
187.6the commissioner of employment and economic development;
187.7(4) the rentals required to be paid under the lease agreement shall not exceed in any
187.8year one-tenth of one percent of the
new text begin estimated new text end market value of property within the county
187.9or group of counties as last equalized before the execution of the lease agreement;
187.10(5) the county or group of counties shall provide for payment of all rentals due
187.11during the term of the lease agreement in the manner required in subdivision 4;
187.12(6) no mortgage on the facilities shall be granted for the security of the bonds, but
187.13compliance with clause (5) may be enforced as a nondiscretionary duty of the county
187.14or group of counties; and
187.15(7) the county or the joint powers board of the group of counties may sublease any
187.16part of the facilities for purposes consistent with their maintenance and operation.
187.17 Sec. 63. Minnesota Statutes 2010, section 410.32, is amended to read:
187.18
410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.
187.19 (a) Notwithstanding any contrary provision of other law or charter, a home rule
187.20charter city may, by resolution and without public referendum, issue capital notes subject
187.21to the city debt limit to purchase capital equipment.
187.22 (b) For purposes of this section, "capital equipment" means:
187.23 (1) public safety equipment, ambulance and other medical equipment, road
187.24construction and maintenance equipment, and other capital equipment; and
187.25 (2) computer hardware and software, whether bundled with machinery or equipment
187.26or unbundled.
187.27 (c) The equipment or software must have an expected useful life at least as long
187.28as the term of the notes.
187.29 (d) The notes shall be payable in not more than ten years and be issued on terms
187.30and in the manner the city determines. The total principal amount of the capital notes
187.31issued in a fiscal year shall not exceed 0.03 percent of the
new text begin estimated new text end market value of
187.32taxable property in the city for that year.
187.33 (e) A tax levy shall be made for the payment of the principal and interest on the
187.34notes, in accordance with section
475.61, as in the case of bonds.
188.1 (f) Notes issued under this section shall require an affirmative vote of two-thirds of
188.2the governing body of the city.
188.3 (g) Notwithstanding a contrary provision of other law or charter, a home rule charter
188.4city may also issue capital notes subject to its debt limit in the manner and subject to the
188.5limitations applicable to statutory cities pursuant to section
412.301.
188.6 Sec. 64. Minnesota Statutes 2010, section 412.221, subdivision 2, is amended to read:
188.7 Subd. 2.
Contracts. The council shall have power to make such contracts as may
188.8be deemed necessary or desirable to make effective any power possessed by the council.
188.9The city may purchase personal property through a conditional sales contract and real
188.10property through a contract for deed under which contracts the seller is confined to the
188.11remedy of recovery of the property in case of nonpayment of all or part of the purchase
188.12price, which shall be payable over a period of not to exceed five years. When the contract
188.13price of property to be purchased by contract for deed or conditional sales contract
188.14exceeds 0.24177 percent of the
new text begin estimated new text end market value of the city, the city may not enter
188.15into such a contract for at least ten days after publication in the official newspaper of a
188.16council resolution determining to purchase property by such a contract; and, if before the
188.17end of that time a petition asking for an election on the proposition signed by voters equal
188.18to ten percent of the number of voters at the last regular city election is filed with the clerk,
188.19the city may not enter into such a contract until the proposition has been approved by a
188.20majority of the votes cast on the question at a regular or special election.
188.21 Sec. 65. Minnesota Statutes 2010, section 412.301, is amended to read:
188.22
412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.
188.23 (a) The council may issue certificates of indebtedness or capital notes subject to the
188.24city debt limits to purchase capital equipment.
188.25 (b) For purposes of this section, "capital equipment" means:
188.26 (1) public safety equipment, ambulance and other medical equipment, road
188.27construction and maintenance equipment, and other capital equipment; and
188.28 (2) computer hardware and software, whether bundled with machinery or equipment
188.29or unbundled.
188.30 (c) The equipment or software must have an expected useful life at least as long as
188.31the terms of the certificates or notes.
188.32 (d) Such certificates or notes shall be payable in not more than ten years and shall be
188.33issued on such terms and in such manner as the council may determine.
189.1 (e) If the amount of the certificates or notes to be issued to finance any such purchase
189.2exceeds 0.25 percent of the
new text begin estimated new text end market value of taxable property in the city, they
189.3shall not be issued for at least ten days after publication in the official newspaper of
189.4a council resolution determining to issue them; and if before the end of that time, a
189.5petition asking for an election on the proposition signed by voters equal to ten percent
189.6of the number of voters at the last regular municipal election is filed with the clerk, such
189.7certificates or notes shall not be issued until the proposition of their issuance has been
189.8approved by a majority of the votes cast on the question at a regular or special election.
189.9 (f) A tax levy shall be made for the payment of the principal and interest on such
189.10certificates or notes, in accordance with section
475.61, as in the case of bonds.
189.11 Sec. 66. Minnesota Statutes 2010, section 428A.02, subdivision 1, is amended to read:
189.12 Subdivision 1.
Ordinance. The governing body of a city may adopt an ordinance
189.13establishing a special service district. Only property that is classified under section
273.13
189.14and used for commercial, industrial, or public utility purposes, or is vacant land zoned or
189.15designated on a land use plan for commercial or industrial use and located in the special
189.16service district, may be subject to the charges imposed by the city on the special service
189.17district. Other types of property may be included within the boundaries of the special
189.18service district but are not subject to the levies or charges imposed by the city on the
189.19special service district. If 50 percent or more of the
new text begin estimated new text end market value of a parcel of
189.20property is classified under section
273.13 as commercial, industrial, or vacant land zoned
189.21or designated on a land use plan for commercial or industrial use, or public utility for the
189.22current assessment year, then the entire
new text begin taxable new text end market value of the property is subject to a
189.23service charge based on net tax capacity for purposes of sections
428A.01 to
428A.10.
189.24The ordinance shall describe with particularity the area within the city to be included in
189.25the district and the special services to be furnished in the district. The ordinance may not
189.26be adopted until after a public hearing has been held on the question. Notice of the hearing
189.27shall include the time and place of hearing, a map showing the boundaries of the proposed
189.28district, and a statement that all persons owning property in the proposed district that
189.29would be subject to a service charge will be given opportunity to be heard at the hearing.
189.30Within 30 days after adoption of the ordinance under this subdivision, the governing body
189.31shall send a copy of the ordinance to the commissioner of revenue.
189.32 Sec. 67. Minnesota Statutes 2010, section 430.102, subdivision 2, is amended to read:
189.33 Subd. 2.
Council approval; special tax levy limitation. The council shall receive
189.34and consider the estimate required in subdivision 1 and the items of cost after notice and
190.1hearing before it or its appropriate committee as it considers necessary or expedient,
190.2and shall approve the estimate, with necessary amendments. The amounts of each item
190.3of cost estimated are then appropriated to operate, maintain, and improve the pedestrian
190.4mall during the next fiscal year. The amount of the special tax to be charged under
190.5subdivision 1, clause (3), must not, however, exceed 0.12089 percent of
new text begin estimated new text end market
190.6value of taxable property in the district. The council shall make any necessary adjustment
190.7in costs of operating and maintaining the district to keep the amount of the tax within
190.8this limitation.
190.9 Sec. 68. Minnesota Statutes 2010, section 447.10, is amended to read:
190.10
447.10 TAX LEVY FOR OPERATING AND MAINTAINING HOSPITAL.
190.11The governing body of a city of the first class owning a hospital may annually levy
190.12a tax to operate and maintain the hospital. The tax must not exceed 0.00806 percent of
190.13taxable
new text begin estimatednew text end market value.
190.14 Sec. 69. Minnesota Statutes 2010, section 450.19, is amended to read:
190.15
450.19 TOURIST CAMPING GROUNDS.
190.16A home rule charter or statutory city or town may establish and maintain public
190.17tourist camping grounds. The governing body thereof may acquire by lease, purchase, or
190.18gift, suitable lands located either within or without the corporate limits for use as public
190.19tourist camping grounds and provide for the equipment, operation, and maintenance
190.20of the same. The amount that may be expended for the maintenance, improvement, or
190.21operation of tourist camping grounds shall not exceed, in any year, a sum equal to 0.00806
190.22percent of taxable
new text begin estimatednew text end market value.
190.23 Sec. 70. Minnesota Statutes 2010, section 450.25, is amended to read:
190.24
450.25 MUSEUM, GALLERY, OR SCHOOL OF ARTS OR CRAFTS; TAX
190.25
LEVY.
190.26After the acquisition of any museum, gallery, or school of arts or crafts, the board
190.27of park commissioners of the city in which it is located shall cause to be included in the
190.28annual tax levy upon all the taxable property of the county in which the museum, gallery,
190.29or school of arts or crafts is located, a tax of 0.00846 percent of
new text begin estimated new text end market value.
190.30The board shall certify the levy to the county auditor and it shall be added to, and collected
190.31with and as part of, the general, real, and personal property taxes, with like penalties and
190.32interest, in case of nonpayment and default, and all provisions of law in respect to the
191.1levy, collection, and enforcement of other taxes shall, so far as applicable, be followed in
191.2respect of these taxes. All of these taxes, penalties, and interest, when collected, shall be
191.3paid to the city treasurer of the city in which is located the museum, gallery, or school
191.4of arts or crafts and credited to a fund to be known as the park museum fund, and shall
191.5be used only for the purposes specified in sections
450.23 to
450.25. Any part of the
191.6proceeds of the levy not expended for the purposes specified in section
450.24 may be
191.7used for the erection of new buildings for the same purposes.
191.8 Sec. 71. Minnesota Statutes 2010, section 458A.10, is amended to read:
191.9
458A.10 PROPERTY TAX.
191.10The commission shall annually levy a tax not to exceed 0.12089 percent of
new text begin estimated new text end
191.11market value on all the taxable property in the transit area at a rate sufficient to produce
191.12an amount necessary for the purposes of sections
458A.01 to
458A.15, other than the
191.13payment of principal and interest due on any revenue bonds issued pursuant to section
191.14458A.05
. Property taxes levied under this section shall be certified by the commission to
191.15the county auditors of the transit area, extended, assessed, and collected in the manner
191.16provided by law for the property taxes levied by the governing bodies of cities. The
191.17proceeds of the taxes levied under this section shall be remitted by the respective county
191.18treasurers to the treasurer of the commission, who shall credit the same to the funds of
191.19the commission for use for the purposes of sections
458A.01 to
458A.15 subject to any
191.20applicable pledges or limitations on account of tax anticipation certificates or other
191.21specific purposes. At any time after making a tax levy under this section and certifying
191.22it to the county auditors, the commission may issue general obligation certificates of
191.23indebtedness in anticipation of the collection of the taxes as provided by section
412.261.
191.24 Sec. 72. Minnesota Statutes 2010, section 458A.31, subdivision 1, is amended to read:
191.25 Subdivision 1.
Levy limit. Notwithstanding anything to the contrary contained in
191.26the charter of the city of Duluth, any ordinance thereof, or any statute applicable thereto,
191.27limiting the amount levied in any one year for general or special purposes, the city council
191.28of the city of Duluth shall each year levy a tax in an amount not to exceed 0.07253
191.29percent of taxable
new text begin estimatednew text end market value, by ordinance. An ordinance fixing the levy
191.30shall take effect immediately upon its passage and approval. The proceeds of the levy
191.31shall be paid into the city treasury and deposited in the operating fund provided for in
191.32section
458A.24, subdivision 3.
191.33 Sec. 73. Minnesota Statutes 2010, section 465.04, is amended to read:
192.1
465.04 ACCEPTANCE OF GIFTS.
192.2Cities of the second, third, or fourth class, having at any time a
new text begin an estimatednew text end
192.3market value of not more than $41,000,000, exclusive of money and credits, as officially
192.4equalized by the commissioner of revenue, either under home rule charter or under the
192.5laws of this state, in addition to all other powers possessed by them, hereby are authorized
192.6and empowered to receive and accept gifts and donations for the use and benefit of
192.7such cities and the inhabitants thereof upon terms and conditions to be approved by the
192.8governing bodies of such cities; and such cities are authorized to comply with and perform
192.9such terms and conditions, which may include payment to the donor or donors of interest
192.10on the value of the gift at not exceeding five percent per annum payable annually or
192.11semiannually, during the remainder of the natural life or lives of such donor or donors.
192.12 Sec. 74. Minnesota Statutes 2010, section 469.033, subdivision 6, is amended to read:
192.13 Subd. 6.
Operation area as taxing district, special tax. All of the territory
192.14included within the area of operation of any authority shall constitute a taxing district for
192.15the purpose of levying and collecting special benefit taxes as provided in this subdivision.
192.16All of the taxable property, both real and personal, within that taxing district shall be
192.17deemed to be benefited by projects to the extent of the special taxes levied under this
192.18subdivision. Subject to the consent by resolution of the governing body of the city in and
192.19for which it was created, an authority may levy a tax upon all taxable property within that
192.20taxing district. The tax shall be extended, spread, and included with and as a part of
192.21the general taxes for state, county, and municipal purposes by the county auditor, to be
192.22collected and enforced therewith, together with the penalty, interest, and costs. As the tax,
192.23including any penalties, interest, and costs, is collected by the county treasurer it shall be
192.24accumulated and kept in a separate fund to be known as the "housing and redevelopment
192.25project fund." The money in the fund shall be turned over to the authority at the same time
192.26and in the same manner that the tax collections for the city are turned over to the city, and
192.27shall be expended only for the purposes of sections
469.001 to
469.047. It shall be paid
192.28out upon vouchers signed by the chair of the authority or an authorized representative.
192.29The amount of the levy shall be an amount approved by the governing body of the city, but
192.30shall not exceed 0.0185 percent of taxable
new text begin estimated new text end market value. The authority shall
192.31each year formulate and file a budget in accordance with the budget procedure of the city
192.32in the same manner as required of executive departments of the city or, if no budgets are
192.33required to be filed, by August 1. The amount of the tax levy for the following year shall
192.34be based on that budget.
193.1 Sec. 75. Minnesota Statutes 2010, section 469.034, subdivision 2, is amended to read:
193.2 Subd. 2.
General obligation revenue bonds. (a) An authority may pledge the
193.3general obligation of the general jurisdiction governmental unit as additional security for
193.4bonds payable from income or revenues of the project or the authority. The authority
193.5must find that the pledged revenues will equal or exceed 110 percent of the principal and
193.6interest due on the bonds for each year. The proceeds of the bonds must be used for a
193.7qualified housing development project or projects. The obligations must be issued and
193.8sold in the manner and following the procedures provided by chapter 475, except the
193.9obligations are not subject to approval by the electors, and the maturities may extend to
193.10not more than 35 years for obligations sold to finance housing for the elderly and 40 years
193.11for other obligations issued under this subdivision. The authority is the municipality for
193.12purposes of chapter 475.
193.13(b) The principal amount of the issue must be approved by the governing body of
193.14the general jurisdiction governmental unit whose general obligation is pledged. Public
193.15hearings must be held on issuance of the obligations by both the authority and the general
193.16jurisdiction governmental unit. The hearings must be held at least 15 days, but not more
193.17than 120 days, before the sale of the obligations.
193.18(c) The maximum amount of general obligation bonds that may be issued and
193.19outstanding under this section equals the greater of (1) one-half of one percent of the
193.20taxable
new text begin estimatednew text end market value of the general jurisdiction governmental unit whose
193.21general obligation is pledged, or (2) $3,000,000. In the case of county or multicounty
193.22general obligation bonds, the outstanding general obligation bonds of all cities in the
193.23county or counties issued under this subdivision must be added in calculating the limit
193.24under clause (1).
193.25(d) "General jurisdiction governmental unit" means the city in which the housing
193.26development project is located. In the case of a county or multicounty authority, the
193.27county or counties may act as the general jurisdiction governmental unit. In the case of
193.28a multicounty authority, the pledge of the general obligation is a pledge of a tax on the
193.29taxable property in each of the counties.
193.30(e) "Qualified housing development project" means a housing development project
193.31providing housing either for the elderly or for individuals and families with incomes not
193.32greater than 80 percent of the median family income as estimated by the United States
193.33Department of Housing and Urban Development for the standard metropolitan statistical
193.34area or the nonmetropolitan county in which the project is located. The project must be
193.35owned for the term of the bonds either by the authority or by a limited partnership or other
193.36entity in which the authority or another entity under the sole control of the authority is
194.1the sole general partner and the partnership or other entity must receive (1) an allocation
194.2from the Department of Management and Budget or an entitlement issuer of tax-exempt
194.3bonding authority for the project and a preliminary determination by the Minnesota
194.4Housing Finance Agency or the applicable suballocator of tax credits that the project
194.5will qualify for four percent low-income housing tax credits or (2) a reservation of nine
194.6percent low-income housing tax credits from the Minnesota Housing Finance Agency or a
194.7suballocator of tax credits for the project. A qualified housing development project may
194.8admit nonelderly individuals and families with higher incomes if:
194.9(1) three years have passed since initial occupancy;
194.10(2) the authority finds the project is experiencing unanticipated vacancies resulting in
194.11insufficient revenues, because of changes in population or other unforeseen circumstances
194.12that occurred after the initial finding of adequate revenues; and
194.13(3) the authority finds a tax levy or payment from general assets of the general
194.14jurisdiction governmental unit will be necessary to pay debt service on the bonds if higher
194.15income individuals or families are not admitted.
194.16(f) The authority may issue bonds to refund bonds issued under this subdivision in
194.17accordance with section
475.67. The finding of the adequacy of pledged revenues required
194.18by paragraph (a) and the public hearing required by paragraph (b) shall not apply to the
194.19issuance of refunding bonds. This paragraph applies to refunding bonds issued on and
194.20after July 1, 1992.
194.21 Sec. 76. Minnesota Statutes 2010, section 469.053, subdivision 4, is amended to read:
194.22 Subd. 4.
Mandatory city levy. A city shall, at the request of the port authority, levy
194.23a tax in any year for the benefit of the port authority. The tax must not exceed 0.01813
194.24percent of taxable
new text begin estimatednew text end market value. The amount levied must be paid by the city
194.25treasurer to the treasurer of the port authority, to be spent by the authority.
194.26 Sec. 77. Minnesota Statutes 2010, section 469.053, subdivision 4a, is amended to read:
194.27 Subd. 4a.
Seaway port authority levy. A levy made under this subdivision shall
194.28replace the mandatory city levy under subdivision 4. A seaway port authority is a special
194.29taxing district under section
275.066 and may levy a tax in any year for the benefit of the
194.30seaway port authority. The tax must not exceed 0.01813 percent of taxable
new text begin estimatednew text end
194.31market value. The county auditor shall distribute the proceeds of the property tax levy to
194.32the seaway port authority.
194.33 Sec. 78. Minnesota Statutes 2010, section 469.053, subdivision 6, is amended to read:
195.1 Subd. 6.
Discretionary city levy. Upon request of a port authority, the port
195.2authority's city may levy a tax to be spent by and for its port authority. The tax must
195.3enable the port authority to carry out efficiently and in the public interest sections
469.048
195.4to
469.068 to create and develop industrial development districts. The levy must not be
195.5more than 0.00282 percent of taxable
new text begin estimatednew text end market value. The county treasurer shall
195.6pay the proceeds of the tax to the port authority treasurer. The money may be spent by
195.7the authority in performance of its duties to create and develop industrial development
195.8districts. In spending the money the authority must judge what best serves the public
195.9interest. The levy in this subdivision is in addition to the levy in subdivision 4.
195.10 Sec. 79. Minnesota Statutes 2010, section 469.107, subdivision 1, is amended to read:
195.11 Subdivision 1.
City tax levy. A city may, at the request of the authority, levy a tax in
195.12any year for the benefit of the authority. The tax must be not more than 0.01813 percent of
195.13taxable
new text begin estimatednew text end market value. The amount levied must be paid by the city treasurer to
195.14the treasurer of the authority, to be spent by the authority.
195.15 Sec. 80. Minnesota Statutes 2010, section 469.180, subdivision 2, is amended to read:
195.16 Subd. 2.
Tax levies. Notwithstanding any law, the county board of any county may
195.17appropriate from the general revenue fund a sum not to exceed a county levy of 0.00080
195.18percent of taxable
new text begin estimatednew text end market value to carry out the purposes of this section.
195.19 Sec. 81. Minnesota Statutes 2010, section 469.187, is amended to read:
195.20
469.187 FIRST CLASS CITY SPENDING FOR PUBLICITY; PUBLICITY
195.21
BOARD.
195.22Any city of the first class may expend money for city publicity purposes. The city
195.23may levy a tax, not exceeding 0.00080 percent of taxable
new text begin estimatednew text end market value. The
195.24proceeds of the levy shall be expended in the manner and for the city publicity purposes
195.25the council directs. The council may establish and provide for a publicity board or bureau
195.26to administer the fund, subject to the conditions and limitations the council prescribes
195.27by ordinance.
195.28 Sec. 82. Minnesota Statutes 2010, section 469.206, is amended to read:
195.29
469.206 HAZARDOUS PROPERTY PENALTY.
195.30A city may assess a penalty up to one percent of the
new text begin estimatednew text end market value of
195.31real property, including any building located within the city that the city determines to
195.32be hazardous as defined in section
463.15, subdivision 3. The city shall send a written
196.1notice to the address to which the property tax statement is sent at least 90 days before it
196.2may assess the penalty. If the owner of the property has not paid the penalty or fixed the
196.3property within 90 days after receiving notice of the penalty, the penalty is considered
196.4delinquent and is increased by 25 percent each 60 days the penalty is not paid and the
196.5property remains hazardous. For the purposes of this section, a penalty that is delinquent
196.6is considered a delinquent property tax and subject to chapters 279, 280, and 281, in the
196.7same manner as delinquent property taxes.
196.8 Sec. 83. Minnesota Statutes 2010, section 471.24, is amended to read:
196.9
471.24 TOWNS, STATUTORY CITIES; JOINT MAINTENANCE OF
196.10
CEMETERY.
196.11Where a statutory city or town owns and maintains an established cemetery or burial
196.12ground, either within or without the municipal limits, the statutory city or town may, by
196.13mutual agreement with contiguous statutory cities and towns, each having a
new text begin an estimatednew text end
196.14market value of not less than $2,000,000, join together in the maintenance of such public
196.15cemetery or burial ground for the use of the inhabitants of each of such municipalities; and
196.16each such municipality is hereby authorized, by action of its council or governing body,
196.17to levy a tax or make an appropriation for the annual support and maintenance of such
196.18cemetery or burial ground; provided, the amount thus appropriated by each municipality
196.19shall not exceed a total of $10,000 in any one year.
196.20 Sec. 84. Minnesota Statutes 2010, section 471.571, subdivision 1, is amended to read:
196.21 Subdivision 1.
Application. This section applies to each city in which the net tax
196.22capacity of real and personal property consists in part of iron ore or lands containing
196.23taconite or semitaconite and in which the total taxable
new text begin estimatednew text end market value of real
196.24and personal property exceeds $2,500,000.
196.25 Sec. 85. Minnesota Statutes 2010, section 471.571, subdivision 2, is amended to read:
196.26 Subd. 2.
Creation of fund, tax levy. The governing body of the city may create a
196.27permanent improvement and replacement fund to be maintained by an annual tax levy.
196.28The governing body may levy a tax in excess of any charter limitation for the support of
196.29the permanent improvement and replacement fund, but not exceeding the following:
196.30(a) in cities having a population of not more than 500 inhabitants, the lesser of $20
196.31per capita or 0.08059 percent of taxable
new text begin estimatednew text end market value;
197.1(b) in cities having a population of more than 500 and less than 2500
new text begin 2,500new text end , the
197.2greater of $12.50 per capita or $10,000 but not exceeding 0.08059 percent of taxable
new text begin new text end
197.3
new text begin estimatednew text end market value;
197.4(c) in cities having a population of more than 2500
new text begin 2,500 or morenew text end inhabitants,
197.5the greater of $10 per capita or $31,500 but not exceeding 0.08059 percent of taxable
new text begin new text end
197.6
new text begin estimatednew text end market value.
197.7 Sec. 86. Minnesota Statutes 2010, section 471.73, is amended to read:
197.8
471.73 ACCEPTANCE OF PROVISIONS.
197.9In the case of any city within the class specified in
new text begin section new text end
471.72 having a
new text begin an new text end
197.10
new text begin estimated new text end market value, as defined in section
, in excess of $37,000,000; and in the
197.11case of any statutory city within such class having a
new text begin an estimatednew text end market value, as defined
197.12in section
, of less than $5,000,000; and in the case of any statutory city within such
197.13class which is governed by Laws 1933, chapter 211, or Laws 1937, chapter 356; and in
197.14the case of any statutory city within such class which is governed by Laws 1929, chapter
197.15208, and has a
new text begin an estimatednew text end market value of less than $83,000,000; and in the case of
197.16any school district within such class having a
new text begin an estimatednew text end market value, as defined in
197.17section
, of more than $54,000,000; and in the case of all towns within said class;
197.18sections
471.71 to
471.83 apply only if the governing body of the city or statutory city, the
197.19board of the school district, or the town board of the town shall have adopted a resolution
197.20determining to issue bonds under the provisions of sections
471.71 to
471.83 or to go
197.21upon a cash basis in accordance with the provisions thereof.
197.22 Sec. 87. Minnesota Statutes 2010, section 473.325, subdivision 2, is amended to read:
197.23 Subd. 2.
Chapter 475 applies; exceptions. The Metropolitan Council shall sell and
197.24issue the bonds in the manner provided in chapter 475, and shall have the same powers
197.25and duties as a municipality issuing bonds under that law, except that the approval of a
197.26majority of the electors shall not be required and the net debt limitations shall not apply.
197.27The terms of each series of bonds shall be fixed so that the amount of principal and interest
197.28on all outstanding and undischarged bonds, together with the bonds proposed to be issued,
197.29due in any year shall not exceed 0.01209 percent of
new text begin estimated new text end market value of all taxable
197.30property in the metropolitan area as last finally equalized prior to a proposed issue. The
197.31bonds shall be secured in accordance with section
475.61, subdivision 1, and any taxes
197.32required for their payment shall be levied by the council, shall not affect the amount or rate
197.33of taxes which may be levied by the council for other purposes, shall be spread against all
197.34taxable property in the metropolitan area and shall not be subject to limitation as to rate or
198.1amount. Any taxes certified by the council to the county auditors for collection shall be
198.2reduced by the amount received by the council from the commissioner of management and
198.3budget or the federal government for the purpose of paying the principal and interest on
198.4bonds to which the levy relates. The council shall certify the fact and amount of all money
198.5so received to the county auditors, and the auditors shall reduce the levies previously made
198.6for the bonds in the manner and to the extent provided in section
475.61, subdivision 3.
198.7 Sec. 88. Minnesota Statutes 2010, section 473.629, is amended to read:
198.8
473.629 VALUE OF PROPERTY FOR BOND ISSUES BY SCHOOL
198.9
DISTRICTS.
198.10As to any lands to be detached from any school district under the provisions hereof
new text begin new text end
198.11
new text begin section 473.625new text end , notwithstanding such prospective
new text begin thenew text end detachment, the
new text begin estimated market new text end
198.12value of such
new text begin the detachednew text end lands and the net tax capacity of taxable properties now located
198.13therein or thereon shall be and
new text begin on the lands on the date of the detachmentnew text end constitute
198.14from and after the date of the enactment hereof a part of the
new text begin estimated market new text end value of
198.15properties upon the basis of which such
new text begin used to calculate the net debt limit of thenew text end school
198.16district may issue its bonds,
new text begin .new text end The value of such
new text begin thenew text end lands for such purpose to be
new text begin and other new text end
198.17
new text begin taxable properties for purposes of the school district's net debt limit are new text end 33-1/3 percent of
198.18the
new text begin estimated new text end market value thereof as determined and certified by said
new text begin thenew text end assessor to said
new text begin new text end
198.19
new text begin thenew text end school district, and it shall be the duty of such
new text begin thenew text end assessor annually on or before the
198.20tenth day of October from and after the passage hereof, to so
new text begin of each year, shallnew text end determine
198.21and certify
new text begin that valuenew text end ; provided, however, that the value of such
new text begin thenew text end detached lands and
198.22such taxable properties shall never exceed 20 percent of the
new text begin estimated market new text end value of
198.23all properties constituting and making up the basis aforesaid
new text begin used to calculate the net new text end
198.24
new text begin debt limit of the school districtnew text end .
198.25 Sec. 89. Minnesota Statutes 2010, section 473.661, subdivision 3, is amended to read:
198.26 Subd. 3.
Levy limit. In any budget certified by the commissioners under this
198.27section, the amount included for operation and maintenance shall not exceed an amount
198.28which, when extended against the property taxable therefor under section
473.621,
198.29subdivision 5
, will require a levy at a rate of 0.00806 percent of
new text begin estimated new text end market value.
198.30Taxes levied by the corporation shall not affect the amount or rate of taxes which may
198.31be levied by any other local government unit within the metropolitan area under the
198.32provisions of any charter.
198.33 Sec. 90. Minnesota Statutes 2010, section 473.667, subdivision 9, is amended to read:
199.1 Subd. 9.
Additional taxes. Nothing herein shall prevent the commission from
199.2levying a tax not to exceed 0.00121 percent of
new text begin estimated new text end market value on taxable property
199.3within its taxing jurisdiction, in addition to any levies found necessary for the debt
199.4service fund authorized by section
473.671. Nothing herein shall prevent the levy and
199.5appropriation for purposes of the commission of any other tax on property or on any
199.6income, transaction, or privilege, when and if authorized by law. All collections of any
199.7taxes so levied shall be included in the revenues appropriated for the purposes referred
199.8to in this section, unless otherwise provided in the law authorizing the levies; but no
199.9covenant as to the continuance or as to the rate and amount of any such levy shall be made
199.10with the holders of the commission's bonds unless specifically authorized by law.
199.11 Sec. 91. Minnesota Statutes 2010, section 473.671, is amended to read:
199.12
473.671 LIMIT OF TAX LEVY.
199.13The taxes levied against the property of the metropolitan area in any one year shall
199.14not exceed 0.00806 percent of taxable
new text begin estimatednew text end market value, exclusive of taxes levied
199.15to pay the principal or interest on any bonds or indebtedness of the city issued under
199.16Laws 1943, chapter 500, and exclusive of any taxes levied to pay the share of the city for
199.17payments on bonded indebtedness of the corporation provided for in Laws 1943, chapter
199.18500. The levy of taxes authorized in Laws 1943, chapter 500, shall be in addition to the
199.19maximum rate allowed to be levied to defray the cost of government under the provisions
199.20of the charter of any city affected by Laws 1943, chapter 500.
199.21 Sec. 92. Minnesota Statutes 2010, section 473.711, subdivision 2a, is amended to read:
199.22 Subd. 2a.
Tax levy. (a) The commission may levy a tax on all taxable property in
199.23the district as defined in section
473.702 to provide funds for the purposes of sections
199.24473.701
to
473.716. The tax shall not exceed the property tax levy limitation determined
199.25in this subdivision. A participating county may agree to levy an additional tax to be used
199.26by the commission for the purposes of sections
473.701 to
473.716 but the sum of the
199.27county's and commission's taxes may not exceed the county's proportionate share of
199.28the property tax levy limitation determined under this subdivision based on the ratio of
199.29its total net tax capacity to the total net tax capacity of the entire district as adjusted by
199.30section
270.12, subdivision 3. The auditor of each county in the district shall add the
199.31amount of the levy made by the district to other taxes of the county for collection by
199.32the county treasurer with other taxes. When collected, the county treasurer shall make
199.33settlement of the tax with the district in the same manner as other taxes are distributed
199.34to political subdivisions. No county shall levy any tax for mosquito, disease vectoring
200.1tick, and black gnat (Simuliidae) control except under this section. The levy shall be in
200.2addition to other taxes authorized by law.
200.3(b) The property tax levied by the Metropolitan Mosquito Control Commission shall
200.4not exceed the product of (i) the commission's property tax levy limitation for the previous
200.5year determined under this subdivision multiplied by (ii) an index for market valuation
200.6changes equal to the total
new text begin estimated new text end market valuation
new text begin valuenew text end of all taxable property for the
200.7current tax payable year located within the district plus any area that has been added to the
200.8district since the previous year, divided by the total
new text begin estimated new text end market valuation
new text begin valuenew text end of all
200.9taxable property located within the district for the previous taxes payable year.
200.10(c) For the purpose of determining the commission's property tax levy limitation
200.11under this subdivision, "total market valuation" means the total market valuation of all
200.12taxable property within the district without valuation adjustments for fiscal disparities
200.13(chapter 473F), tax increment financing (sections
to 469.179), and high voltage
200.14transmission lines (section 273.425).
200.15 Sec. 93. Minnesota Statutes 2010, section 473F.02, subdivision 12, is amended to read:
200.16 Subd. 12.
new text begin Adjusted new text end market value. "
new text begin Adjusted new text end market value" of real and personal
200.17property within a municipality means the assessor's estimated
new text begin taxablenew text end market value
new text begin , new text end
200.18
new text begin as defined in section 272.03,new text end of all real and personal property, including the value of
200.19manufactured housing, within the municipality
new text begin , adjusted for sales ratios in a manner new text end
200.20
new text begin similar to the adjustments made to city and town net tax capacities new text end . For purposes
200.21of sections
to
, the commissioner of revenue shall annually make
200.22determinations and reports with respect to each municipality which are comparable to
200.23those it makes for school districts under section
127A.48, subdivisions 1 to 6, in the same
200.24manner and at the same times as are prescribed by the subdivisions. The commissioner
200.25of revenue shall annually determine, for each municipality, information comparable to
200.26that required by section
475.53, subdivision 4, for school districts, as soon as practicable
200.27after it becomes available. The commissioner of revenue shall then compute the equalized
200.28market value of property within each municipality using the aggregate sales ratios from
200.29the Department of Revenue's sales ratio study.
200.30 Sec. 94. Minnesota Statutes 2010, section 473F.02, subdivision 14, is amended to read:
200.31 Subd. 14.
Fiscal capacity. "Fiscal capacity" of a municipality means its valuation
new text begin new text end
200.32
new text begin adjusted market valuenew text end , determined as of January 2 of any year, divided by its population,
200.33determined as of a date in the same year.
201.1 Sec. 95. Minnesota Statutes 2010, section 473F.02, subdivision 15, is amended to read:
201.2 Subd. 15.
Average fiscal capacity. "Average fiscal capacity" of municipalities
201.3means the sum of the valuations
new text begin adjusted market valuesnew text end of all municipalities, determined
201.4as of January 2 of any year, divided by the sum of their populations, determined as of
201.5a date in the same year.
201.6 Sec. 96. Minnesota Statutes 2010, section 473F.02, subdivision 23, is amended to read:
201.7 Subd. 23.
Net tax capacity. "Net tax capacity" means the
new text begin taxable new text end market value of
201.8real and personal property multiplied by its net tax capacity rates in section
273.13.
201.9 Sec. 97. Minnesota Statutes 2010, section 475.521, subdivision 4, is amended to read:
201.10 Subd. 4.
Limitations on amount. A municipality may not issue bonds under this
201.11section if the maximum amount of principal and interest to become due in any year on
201.12all the outstanding bonds issued under this section, including the bonds to be issued,
201.13will equal or exceed 0.16 percent of the taxable
new text begin estimatednew text end market value of property
201.14in the municipality. Calculation of the limit must be made using the taxable
new text begin estimatednew text end
201.15market value for the taxes payable year in which the obligations are issued and sold. In
201.16the case of a municipality with a population of 2,500 or more, the bonds are subject to
201.17the net debt limits under section
475.53. In the case of a shared facility in which more
201.18than one municipality participates, upon compliance by each participating municipality
201.19with the requirements of subdivision 2, the limitations in this subdivision and the net debt
201.20represented by the bonds shall be allocated to each participating municipality in proportion
201.21to its required financial contribution to the financing of the shared facility, as set forth in
201.22the joint powers agreement relating to the shared facility. This section does not limit the
201.23authority to issue bonds under any other special or general law.
201.24 Sec. 98. Minnesota Statutes 2010, section 475.53, subdivision 1, is amended to read:
201.25 Subdivision 1.
Generally. Except as otherwise provided in sections
475.51 to
201.26475.74
, no municipality, except a school district or a city of the first class, shall incur or be
201.27subject to a net debt in excess of three percent of the
new text begin estimated new text end market value of taxable
201.28property in the municipality.
201.29 Sec. 99. Minnesota Statutes 2010, section 475.53, subdivision 3, is amended to read:
201.30 Subd. 3.
Cities first class. Unless its charter permits a greater net debt a city of
201.31the first class may not incur a net debt in excess of two percent of the
new text begin estimated new text end market
201.32value of all taxable property therein. If the charter of the city permits a net debt of the city
202.1in excess of two percent of its valuation, it may not incur a net debt in excess of 3-2/3
202.2percent of the
new text begin estimated new text end market value of the taxable property therein.
202.3The county auditor, at the time of preparing the tax list of the city, shall compile a
202.4statement setting forth the total net tax capacity and the total
new text begin estimatednew text end market value of
202.5each class of taxable property in such city for such year.
202.6 Sec. 100. Minnesota Statutes 2010, section 475.53, subdivision 4, is amended to read:
202.7 Subd. 4.
School districts. Except as otherwise provided by law, no school district
202.8shall be subject to a net debt in excess of 15 percent of the actual
new text begin estimated new text end market value
202.9of all taxable property situated within its corporate limits, as computed in accordance with
202.10this subdivision. The county auditor of each county containing taxable real or personal
202.11property situated within any school district shall certify to the district upon request the
202.12
new text begin estimated new text end market value of all such property. Whenever the commissioner of revenue, in
202.13accordance with section
127A.48, subdivisions 1 to 6, has determined that the net tax
202.14capacity of any district furnished by county auditors is not based upon the
new text begin adjusted new text end market
202.15value of taxable property in the district
new text begin exceeds the estimated market value of property new text end
202.16
new text begin within the districtnew text end , the commissioner of revenue shall certify to the district upon request
202.17the ratio most recently ascertained to exist between such
new text begin the estimated market new text end value and
202.18the actual
new text begin adjustednew text end market value of property within the district.
new text begin , andnew text end the actual market
202.19value of property within a district, on which its debt limit under this subdivision is
new text begin will new text end
202.20
new text begin be new text end based, is (a) the value certified by the county auditors, or (b) this
new text begin on the estimated new text end
202.21
new text begin marketnew text end value divided by the ratio certified by the commissioner of revenue, whichever
202.22results in a higher value.
202.23 Sec. 101. Minnesota Statutes 2010, section 475.58, subdivision 2, is amended to read:
202.24 Subd. 2.
Funding, refunding. Any county, city, town, or school district whose
202.25outstanding gross debt, including all items referred to in section
475.51, subdivision
202.264
, exceed in amount 1.62 percent of its
new text begin estimated new text end market value may issue bonds under
202.27this subdivision for the purpose of funding or refunding such indebtedness or any part
202.28thereof. A list of the items of indebtedness to be funded or refunded shall be made by the
202.29recording officer and treasurer and filed in the office of the recording officer. The initial
202.30resolution of the governing body shall refer to this subdivision as authority for the issue,
202.31state the amount of bonds to be issued and refer to the list of indebtedness to be funded or
202.32refunded. This resolution shall be published once each week for two successive weeks
202.33in a legal newspaper published in the municipality or if there be no such newspaper, in
202.34a legal newspaper published in the county seat. Such bonds may be issued without the
203.1submission of the question of their issue to the electors unless within ten days after the
203.2second publication of the resolution a petition requesting such election signed by ten or
203.3more voters who are taxpayers of the municipality, shall be filed with the recording officer.
203.4In event such petition is filed, no bonds shall be issued hereunder unless authorized by a
203.5majority of the electors voting on the question.
203.6 Sec. 102. Minnesota Statutes 2010, section 475.73, subdivision 1, is amended to read:
203.7 Subdivision 1.
May purchase these bonds; conditions. Obligations sold under the
203.8provisions of section
475.60 may be purchased by the State Board of Investment if the
203.9obligations meet the requirements of section
11A.24, subdivision 2, upon the approval of
203.10the attorney general as to form and execution of the application therefor, and under rules
203.11as the board may specify, and the state board shall have authority to purchase the same
203.12to an amount not exceeding
3.63 percent of the
new text begin estimated new text end market value of the taxable
203.13property of the municipality, according to the last preceding assessment. The obligations
203.14shall not run for a shorter period than one year, nor for a longer period than 30 years and
203.15shall bear interest at a rate to be fixed by the state board but not less than two percent per
203.16annum. Forthwith upon the delivery to the state of Minnesota of any obligations issued by
203.17virtue thereof, the commissioner of management and budget shall certify to the respective
203.18auditors of the various counties wherein are situated the municipalities issuing the same,
203.19the number, denomination, amount, rate of interest and date of maturity of each obligation.
203.20 Sec. 103. Minnesota Statutes 2011 Supplement, section 477A.011, subdivision 20,
203.21is amended to read:
203.22 Subd. 20.
City net tax capacity. "City net tax capacity" means (1) the net tax
203.23capacity computed using the net tax capacity rates in section
for taxes payable
203.24in the year of the aid distribution, and the market values, after the exclusion in section
203.25
273.13, subdivision 35, for taxes payable in the year prior to the aid distribution plus (2)
203.26a city's fiscal disparities distribution tax capacity under section
276A.06, subdivision 2,
203.27paragraph (b), or
473F.08, subdivision 2, paragraph (b), for taxes payable in the year prior
203.28to that for which aids are being calculated. The market value utilized in computing city
203.29net tax capacity shall be reduced by the sum of (1) a city's market value of commercial
203.30industrial property as defined in section
276A.01, subdivision 3, or
473F.02, subdivision 3,
203.31multiplied by the ratio determined pursuant to section
276A.06, subdivision 2, paragraph
203.32(a), or
473F.08, subdivision 2, paragraph (a), (2) the market value of the captured value
203.33of tax increment financing districts as defined in section
469.177, subdivision 2, and (3)
203.34the market value of transmission lines deducted from a city's total net tax capacity under
204.1section
. The city net tax capacity will be computed using equalized market values
new text begin new text end
204.2
new text begin the city's adjusted net tax capacity under section 273.1325new text end .
204.3
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
204.4 Sec. 104. Minnesota Statutes 2010, section 477A.011, subdivision 32, is amended to
204.5read:
204.6 Subd. 32.
Commercial industrial percentage. "Commercial industrial percentage"
204.7for a city is 100 times the sum of the estimated market values of all real property in the
204.8city classified as class 3 under section
273.13, subdivision 24, excluding public utility
204.9property, to the total
new text begin estimated new text end market value of all taxable real and personal property in
204.10the city. The
new text begin estimated new text end market values are the amounts computed before any adjustments
204.11for fiscal disparities under section
276A.06 or
473F.08. The
new text begin estimated new text end market values
204.12used for this subdivision are not equalized.
204.13
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for aids payable in 2014 and new text end
204.14
new text begin thereafter.new text end
204.15 Sec. 105. Minnesota Statutes 2010, section 477A.0124, subdivision 2, is amended to
204.16read:
204.17 Subd. 2.
Definitions. (a) For the purposes of this section, the following terms
204.18have the meanings given them.
204.19(b) "County program aid" means the sum of "county need aid," "county tax base
204.20equalization aid," and "county transition aid."
204.21(c) "Age-adjusted population" means a county's population multiplied by the county
204.22age index.
204.23(d) "County age index" means the percentage of the population over age 65 within
204.24the county divided by the percentage of the population over age 65 within the state, except
204.25that the age index for any county may not be greater than 1.8 nor less than 0.8.
204.26(e) "Population over age 65" means the population over age 65 established as of
204.27July 15 in an aid calculation year by the most recent federal census, by a special census
204.28conducted under contract with the United States Bureau of the Census, by a population
204.29estimate made by the Metropolitan Council, or by a population estimate of the state
204.30demographer made pursuant to section
4A.02, whichever is the most recent as to the stated
204.31date of the count or estimate for the preceding calendar year and which has been certified
204.32to the commissioner of revenue on or before July 15 of the aid calculation year. A revision
204.33to an estimate or count is effective for these purposes only if certified to the commissioner
205.1on or before July 15 of the aid calculation year. Clerical errors in the certification or use of
205.2estimates and counts established as of July 15 in the aid calculation year are subject to
205.3correction within the time periods allowed under section
477A.014.
205.4(f) "Part I crimes" means the three-year average annual number of Part I crimes
205.5reported for each county by the Department of Public Safety for the most recent years
205.6available. By July 1 of each year, the commissioner of public safety shall certify to the
205.7commissioner of revenue the number of Part I crimes reported for each county for the
205.8three most recent calendar years available.
205.9(g) "Households receiving food stamps" means the average monthly number of
205.10households receiving food stamps for the three most recent years for which data is
205.11available. By July 1 of each year, the commissioner of human services must certify to the
205.12commissioner of revenue the average monthly number of households in the state and in
205.13each county that receive food stamps, for the three most recent calendar years available.
205.14(h) "County net tax capacity" means the net tax capacity of the county, computed
205.15analogously to city net tax capacity under section
477A.011, subdivision 20new text begin county's new text end
205.16
new text begin adjusted net tax capacity under section 273.1325new text end .
205.17
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
205.18 Sec. 106. Minnesota Statutes 2010, section 641.23, is amended to read:
205.19
641.23 FUNDS; HOW PROVIDED.
205.20Before any contract is made for the erection of a county jail, sheriff's residence, or
205.21both, the county board shall either levy a sufficient tax to provide the necessary funds, or
205.22issue county bonds therefor in accordance with the provisions of chapter 475, provided
205.23that no election is required if the amount of all bonds issued for this purpose and interest
205.24on them which are due and payable in any year does not exceed an amount equal to
205.250.09671 percent of
new text begin estimated new text end market value of taxable property within the county, as last
205.26determined before the bonds are issued.
205.27 Sec. 107. Minnesota Statutes 2010, section 641.24, is amended to read:
205.28
641.24 LEASING.
205.29The county may, by resolution of the county board, enter into a lease agreement with
205.30any statutory or home rule charter city situated within the county, or a county housing and
205.31redevelopment authority established pursuant to chapter 469 or any special law whereby
205.32the city or county housing and redevelopment authority will construct a jail or other law
205.33enforcement facilities for the county sheriff, deputy sheriffs, and other employees of the
206.1sheriff and other law enforcement agencies, in accordance with plans prepared by or at
206.2the request of the county board and, when required, approved by the commissioner of
206.3corrections and will finance it by the issuance of revenue bonds, and the county may lease
206.4the site and improvements for a term and upon rentals sufficient to produce revenue for the
206.5prompt payment of the bonds and all interest accruing thereon and, upon completion of
206.6payment, will acquire title thereto. The real and personal property acquired for the jail
206.7shall constitute a project and the lease agreement shall constitute a revenue agreement
206.8as contemplated in chapter 469, and all proceedings shall be taken by the city or county
206.9housing and redevelopment authority and the county in the manner and with the force and
206.10effect provided in chapter 469; provided that:
206.11(1) no tax shall be imposed upon or in lieu of a tax upon the property;
206.12(2) the approval of the project by the commissioner of commerce shall not be
206.13required;
206.14(3) the Department of Corrections shall be furnished and shall record such
206.15information concerning each project as it may prescribe;
206.16(4) the rentals required to be paid under the lease agreement shall not exceed in any
206.17year one-tenth of one percent of the
new text begin estimated new text end market value of property within the county,
206.18as last finally equalized before the execution of the agreement;
206.19(5) the county board shall provide for the payment of all rentals due during the term
206.20of the lease, in the manner required in section
641.264, subdivision 2;
206.21(6) no mortgage on the property shall be granted for the security of the bonds, but
206.22compliance with clause (5) hereof may be enforced as a nondiscretionary duty of the
206.23county board; and
206.24(7) the county board may sublease any part of the jail property for purposes consistent
206.25with the maintenance and operation of a county jail or other law enforcement facility.
206.26 Sec. 108. Minnesota Statutes 2010, section 645.44, is amended by adding a subdivision
206.27to read:
206.28
new text begin Subd. 20.new text end new text begin Estimated market value.new text end new text begin When used in determining or calculating a new text end
206.29
new text begin limit on taxation, spending, state aid amounts, or debt, bond, certificate of indebtedness, or new text end
206.30
new text begin capital note issuance by or for a local government unit, "estimated market value" has the new text end
206.31
new text begin meaning given in section 273.032. new text end
206.32 Sec. 109.
new text begin REVISOR'S INSTRUCTION.new text end
207.1
new text begin The revisor of statutes shall recodify Minnesota Statutes, section 127A.48, new text end
207.2
new text begin subdivisions 1 to 6, as section 273.1325, subdivisions 1 to 6, and change all new text end
207.3
new text begin cross-references to the affected subdivisions accordingly.new text end
207.4
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
207.5 Sec. 110.
new text begin REPEALER.new text end
207.6
new text begin Minnesota Statutes 2010, sections 273.11, subdivision 1a; 276A.01, subdivision new text end
207.7
new text begin 11; 276A.06, subdivision 10; 473F.02, subdivision 13; 473F.08, subdivision 10; and new text end
207.8
new text begin 477A.011, subdivision 21,new text end new text begin are repealed.new text end
207.9 Sec. 111.
new text begin EFFECTIVE DATE.new text end
207.10
new text begin Unless otherwise specifically provided, this article is effective the day following new text end
207.11
new text begin final enactment for purposes of limits on net debt, the issuance of bonds, certificates of new text end
207.12
new text begin indebtedness, and capital notes and is effective beginning for taxes payable in 2013 for new text end
207.13
new text begin all other purposes.new text end
207.14
ARTICLE 13
207.15
MISCELLANEOUS TAXES
207.16 Section 1.
new text begin [136A.129] GREATER MINNESOTA INTERNSHIP PROGRAM.new text end
207.17
new text begin Subdivision 1.new text end new text begin Definitions.new text end new text begin (a) For the purposes of this section, the terms defined in new text end
207.18
new text begin this subdivision have the meanings given them.new text end
207.19
new text begin (b) "Eligible employer" means a taxpayer under section 290.01 with employees new text end
207.20
new text begin located in greater Minnesota.new text end
207.21
new text begin (c) "Eligible institution" means a Minnesota public postsecondary institution, or a new text end
207.22
new text begin Minnesota private, nonprofit, baccalaureate degree granting college or university.new text end
207.23
new text begin (d) "Eligible student" means a student enrolled in an eligible institution who is a new text end
207.24
new text begin junior or senior in a degree program or has completed one-half of the credits necessary for new text end
207.25
new text begin an associate degree or certification.new text end
207.26
new text begin (e) "Greater Minnesota" means the area located outside of the metropolitan area, as new text end
207.27
new text begin defined in section 473.121, subdivision 2.new text end
207.28
new text begin (f) "Office" means the Office of Higher Education.new text end
207.29
new text begin Subd. 2.new text end new text begin Program established.new text end new text begin The office, in cooperation with the Department of new text end
207.30
new text begin Employment and Economic Development, shall administer a greater Minnesota internship new text end
207.31
new text begin grant program for eligible employers who hire interns in greater Minnesota through new text end
207.32
new text begin eligible institutions that provide academic credit. The purpose of the program is to new text end
207.33
new text begin encourage Minnesota businesses to:new text end
208.1
new text begin (1) employ and provide valuable experience to Minnesota students; andnew text end
208.2
new text begin (2) foster long-term relationships between the students and greater Minnesota new text end
208.3
new text begin employers.new text end
208.4
new text begin Subd. 3.new text end new text begin Program components.new text end new text begin (a) An intern must be an eligible student who new text end
208.5
new text begin has been admitted to a major program that is closely related to the intern experience new text end
208.6
new text begin as determined by the eligible institution.new text end
208.7
new text begin (b) To participate in the program, an eligible institution must:new text end
208.8
new text begin (1) enter into written agreements with eligible employers to provide paid internships new text end
208.9
new text begin that are at least 12 weeks long and located in greater Minnesota;new text end
208.10
new text begin (2) determine that the work experience of the internship is closely related to the new text end
208.11
new text begin eligible student's course of study; andnew text end
208.12
new text begin (3) provide academic credit for the successful completion of the internship or new text end
208.13
new text begin ensure that it fulfills requirements necessary to complete a vocational technical education new text end
208.14
new text begin program.new text end
208.15
new text begin (c) To participate in the program, an eligible employer must enter into a written new text end
208.16
new text begin agreement with an eligible institution specifying that the intern:new text end
208.17
new text begin (1) would not have been hired without the grant described in subdivision 4;new text end
208.18
new text begin (2) did not work for the employer prior to entering the agreement;new text end
208.19
new text begin (3) does not replace an existing employee;new text end
208.20
new text begin (4) has not previously participated in the program;new text end
208.21
new text begin (5) will be employed at a location in greater Minnesota;new text end
208.22
new text begin (6) will be paid at least minimum wage for a minimum of 16 hours per week for at new text end
208.23
new text begin least a 12-week period; andnew text end
208.24
new text begin (7) will be supervised and evaluated by the employer.new text end
208.25
new text begin (d) Participating eligible institutions and eligible employers must report annually to new text end
208.26
new text begin the office. The report must include at least the following:new text end
208.27
new text begin (1) the number of interns hired;new text end
208.28
new text begin (2) the number of hours and weeks worked by interns; andnew text end
208.29
new text begin (3) the compensation paid to interns.new text end
208.30
new text begin (e) An internship with clinical experience currently required for completion of new text end
208.31
new text begin an academic program does not qualify for the greater Minnesota internship program new text end
208.32
new text begin under this section.new text end
208.33
new text begin Subd. 4.new text end new text begin Employer grants for internships; maximum limits.new text end new text begin (a) A grant for an new text end
208.34
new text begin eligible employer equals 40 percent of the compensation paid to each qualifying intern, new text end
208.35
new text begin not to exceed $1,250. An employer may receive a grant for a maximum of five interns new text end
208.36
new text begin in any fiscal year.new text end
209.1
new text begin (b) The total amount of grants authorized under this section is limited to $1,000,000 new text end
209.2
new text begin per fiscal year less administrative expense as provided in law. The office shall allocate new text end
209.3
new text begin grants to eligible institutions for participating employers and certify to the Department of new text end
209.4
new text begin Employment and Economic Development the amount of the grant.new text end
209.5
new text begin Subd. 5.new text end new text begin Allocations to institutions.new text end new text begin The office shall allocate employer grants new text end
209.6
new text begin authorized in subdivision 4 to eligible institutions. The office shall determine relevant new text end
209.7
new text begin criteria to allocate the grants, including the geographic distribution of grants to work new text end
209.8
new text begin locations outside the metropolitan area. Any grant amount allocated to an institution but new text end
209.9
new text begin not used may be reallocated to other eligible institutions. The office shall allocate a portion new text end
209.10
new text begin of any administrative fee to participating eligible institutions for their administrative costs.new text end
209.11
new text begin Subd. 6.new text end new text begin Reports to the legislature.new text end new text begin (a) By February 1, 2013, the office and the new text end
209.12
new text begin Department of Employment and Economic Development shall report to the legislature on new text end
209.13
new text begin the greater Minnesota internship program. The report must include at least the following:new text end
209.14
new text begin (1) the number and dollar amount of grants allocated to employers;new text end
209.15
new text begin (2) the number of interns employed under the program; andnew text end
209.16
new text begin (3) the cost of administering the program.new text end
209.17
new text begin (b) By February 1, 2014, the office and the Department of Employment and new text end
209.18
new text begin Economic Development shall report to the legislature with an analysis of the effectiveness new text end
209.19
new text begin of the program in stimulating businesses to hire interns and in assisting participating new text end
209.20
new text begin interns in finding permanent career positions. The report must include the number of new text end
209.21
new text begin students who participated in the program who were subsequently employed full-time by new text end
209.22
new text begin the employer.new text end
209.23
new text begin Subd. 7.new text end new text begin Sunset.new text end new text begin This section expires on June 30, 2015.new text end
209.24
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2012.new text end
209.25 Sec. 2. Minnesota Statutes 2010, section 297G.04, subdivision 2, is amended to read:
209.26 Subd. 2.
Tax credit. A qualified brewer producing fermented malt beverages
209.27is entitled to a tax credit of $4.60 per barrel on 25,000 barrels sold in any fiscal year
209.28beginning July 1, regardless of the alcohol content of the product. Qualified brewers may
209.29take the credit on the 18th day of each month, but the total credit allowed may not exceed
209.30in any fiscal year the lesser of:
209.31(1) the liability for tax; or
209.32(2) $115,000.
209.33For purposes of this subdivision, a "qualified brewer" means a brewer, whether or
209.34not located in this state, manufacturing less than 100,000
new text begin 250,000new text end barrels of fermented
209.35malt beverages in the calendar year immediately preceding the calendar year for which
210.1the credit under this subdivision is claimed. In determining the number of barrels, all
210.2brands or labels of a brewer must be combined. All facilities for the manufacture of
210.3fermented malt beverages owned or controlled by the same person, corporation, or other
210.4entity must be treated as a single brewer.
210.5
new text begin EFFECTIVE DATE.new text end new text begin This section is effective for determinations based on calendar new text end
210.6
new text begin year 2011 production and thereafter.new text end
210.7 Sec. 3. Minnesota Statutes 2010, section 298.75, is amended by adding a subdivision
210.8to read:
210.9
new text begin Subd. 12.new text end new text begin Tax may be imposed; Otter Tail County.new text end new text begin (a) If Otter Tail County new text end
210.10
new text begin does not impose a tax under this section and approves imposition of the tax under this new text end
210.11
new text begin subdivision, the city of Vergas in Otter Tail County may impose the aggregate materials new text end
210.12
new text begin tax under this section.new text end
210.13
new text begin (b) For purposes of exercising the powers contained in this section, the "city" is new text end
210.14
new text begin deemed to be the "county."new text end
210.15
new text begin (c) All provisions in this section apply to the city of Vergas, except that in lieu of the new text end
210.16
new text begin tax proceeds under subdivision 7, all proceeds of the tax must be retained by the city.new text end
210.17
new text begin (d) If Otter Tail County imposes an aggregate materials tax under this section, the new text end
210.18
new text begin tax imposed by the city of Vergas under this subdivision is repealed on the effective new text end
210.19
new text begin date of the Otter Tail County tax.new text end
210.20
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day after the governing body of new text end
210.21
new text begin the city of Vergas and its chief clerical officer comply with Minnesota Statutes, section new text end
210.22
new text begin 645.021, subdivisions 2 and 3.new text end
210.23 Sec. 4. Minnesota Statutes 2010, section 469.169, is amended by adding a subdivision
210.24to read:
210.25
new text begin Subd. 19.new text end new text begin Additional border city allocation; 2012.new text end new text begin (a) In addition to tax new text end
210.26
new text begin reductions authorized in subdivisions 7 to 18, the commissioner shall allocate $125,000 new text end
210.27
new text begin for tax reductions to border city enterprise zones in cities located on the western border new text end
210.28
new text begin of the state. The commissioner shall make allocations to zones in cities on the western new text end
210.29
new text begin border on a per capita basis. Allocations made under this subdivision may be used for new text end
210.30
new text begin tax reductions as provided in section 469.171, or for other offsets of taxes imposed on new text end
210.31
new text begin or remitted by businesses located in the enterprise zone, but only if the municipality new text end
210.32
new text begin determines that the granting of the tax reduction or offset is necessary in order to retain a new text end
210.33
new text begin business within or attract a business to the zone. The city alternatively may elect to use new text end
211.1
new text begin any portion of the allocation provided in this paragraph for tax reductions under section new text end
211.2
new text begin 469.1732 or 469.1734.new text end
211.3
new text begin (b) The commissioner shall allocate $125,000 for tax reductions under section new text end
211.4
new text begin 469.1732 or 469.1734 to cities with border city enterprise zones located on the western new text end
211.5
new text begin border of the state. The commissioner shall allocate this amount among the cities on a per new text end
211.6
new text begin capita basis. The city alternatively may elect to use any portion of the allocation provided new text end
211.7
new text begin in this paragraph for tax reductions as provided in section 469.171.new text end
211.8 Sec. 5.
new text begin PURPOSE STATEMENTS; TAX EXPENDITURES.new text end
211.9
new text begin Subdivision 1.new text end new text begin Authority.new text end new text begin This section is intended to fulfill the requirement under new text end
211.10
new text begin Minnesota Statutes, section 3.192, that a bill creating, renewing, or continuing a tax new text end
211.11
new text begin expenditure provide a purpose for the tax expenditure and a standard or goal against new text end
211.12
new text begin which its effectiveness may be measured.new text end
211.13
new text begin Subd. 2.new text end new text begin Federal conformity.new text end new text begin The provisions of article 8 conforming Minnesota new text end
211.14
new text begin individual income tax to changes in federal law are intended to simplify compliance with new text end
211.15
new text begin and administration of the individual income tax.new text end
211.16
new text begin Subd. 3.new text end new text begin Employment of qualified veterans tax credit.new text end new text begin The provisions of article 8, new text end
211.17
new text begin section 15, providing a tax credit for the employment of qualified veterans, are intended new text end
211.18
new text begin to give an incentive to employers to hire returning veterans who would otherwise be new text end
211.19
new text begin unemployed and to encourage their reintegration into the community. The standard against new text end
211.20
new text begin which the effectiveness of the credit is to be measured is the additional number of veterans new text end
211.21
new text begin who are hired as a result of the tax credit.new text end
211.22
new text begin Subd. 4.new text end new text begin Extension of historic structure rehabilitation credit.new text end new text begin The provisions new text end
211.23
new text begin of article 8, section 14, extending the sunset of the historic structure rehabilitation credit new text end
211.24
new text begin are intended to create and retain jobs related to rehabilitation of historic structures in new text end
211.25
new text begin Minnesota. The standard against which the effectiveness of the extension of the credit is to new text end
211.26
new text begin be measured is the number of jobs created through the rehabilitation of historic structures new text end
211.27
new text begin and the number of historic structures rehabilitated and placed in service.new text end
211.28
new text begin Subd. 5.new text end new text begin Exemption of certain laboratory services from the health care provider new text end
211.29
new text begin tax.new text end new text begin The provisions of article 9, section 2, exempting laboratory services on specimens new text end
211.30
new text begin collected outside the state from the health care provider tax is intended to eliminate new text end
211.31
new text begin a competitive disadvantage for laboratories located in Minnesota when competing to new text end
211.32
new text begin provide services with laboratories located outside of the state.new text end
212.1
new text begin Subd. 6.new text end new text begin Sales tax exemption for established religious orders.new text end new text begin The provisions new text end
212.2
new text begin of article 9, section 7, exempting certain sales between a religious order and an affiliated new text end
212.3
new text begin institute of higher education is intended to retain an existing sales tax exemption that new text end
212.4
new text begin exists between St. John's Abbey and St. John's University after a governing restructure new text end
212.5
new text begin between the two entities.new text end
212.6
new text begin Subd. 7.new text end new text begin Sales tax exemption for nursing homes and boarding care homes.new text end
212.7
new text begin The provisions of article 9, section 8, exempting certain nursing homes and boarding new text end
212.8
new text begin care homes is intended to clarify that an existing exemption for these facilities is not new text end
212.9
new text begin affected by a recent property tax case related to defining nonprofit organizations engaged new text end
212.10
new text begin in charitable activities.new text end
212.11
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
212.12 Sec. 6.
new text begin BUDGET RESERVE.new text end
212.13
new text begin The commissioner of management and budget shall cancel $27,900,000 to the new text end
212.14
new text begin general fund from the budget reserve account in Minnesota Statutes, section 16A.152.new text end
212.15
new text begin EFFECTIVE DATE.new text end new text begin This section is effective the day following final enactment.new text end
212.16 Sec. 7.
new text begin APPROPRIATION; GREATER MINNESOTA INTERNSHIP new text end
212.17
new text begin PROGRAM.new text end
212.18
new text begin $1,000,000 for fiscal year 2013 is appropriated from the general fund to the new text end
212.19
new text begin commissioner of employment and economic development for grants under Minnesota new text end
212.20
new text begin Statutes, section 136A.129, for employers who hire interns. Up to five percent of new text end
212.21
new text begin the appropriation is for an administrative fee for the Office of Higher Education and new text end
212.22
new text begin participating eligible institutions. The base for the Department of Employment and new text end
212.23
new text begin Economic Development for the greater Minnesota internship program is $1,000,000 in new text end
212.24
new text begin fiscal year 2014, $1,000,000 in fiscal year 2015, and $0 beginning in fiscal year 2016.new text end
212.25
new text begin EFFECTIVE DATE.new text end new text begin This section is effective July 1, 2012.new text end
212.26 Sec. 8.
new text begin APPROPRIATION; MINNESOTA INVESTMENT FUND.new text end
212.27
new text begin $7,000,000 for fiscal year 2013 is appropriated from the general fund to the new text end
212.28
new text begin commissioner of employment and economic development for the Minnesota investment new text end
212.29
new text begin fund under Minnesota Statutes, section 116J.8731. The commissioner of employment new text end
212.30
new text begin and economic development must consult with the Science and Technology Initiative new text end
212.31
new text begin Advisory Commission established in Minnesota Statutes, section 116W.06, and must new text end
213.1
new text begin obtain approval of a simple majority of the commission in determining how to use 25 new text end
213.2
new text begin percent of this amount. This is a onetime appropriation and is available until spent.new text end "
213.3Delete the title and insert:
213.4"A bill for an act
213.5relating to financing of state and local government; making policy, technical, and
213.6other changes to individual income, corporate franchise, property, sales and
213.7use, special, mineral, liquor, aggregate materials, gross receipts, estate, local,
213.8and other taxes and tax-related provisions; updating references to the Internal
213.9Revenue Code; changing and providing income and franchise tax credits,
213.10exemptions, and deductions; changing income tax withholding requirements;
213.11establishing a veterans jobs tax credit; permitting the filing of certain amended
213.12returns; modifying property tax levies, credits, exemptions, refunds, proposed
213.13levies and property tax notices, and tax statements; providing for use of a local
213.14levy; changing the state general levy; modifying city aid reporting requirements;
213.15modifying tax increment financing district requirements; authorizing, changing,
213.16and extending tax increment financing districts in certain local governments;
213.17changing sales and use tax payment requirements and changing and providing
213.18exemptions; modifying use of revenues and authorizing extension of certain
213.19sales and lodging taxes and other local taxes for certain cities and making other
213.20local tax changes; modifying filing, compliance, and payment requirements
213.21for estate tax returns; modifying requirements for qualified farms and small
213.22business property; modifying definitions and making clarifying, technical, and
213.23other changes relating to the issuance of municipal bonds; authorizing certain
213.24local governments to issue public debt; clarifying limits on taxation, spending,
213.25and incurring debt based on market values; making technical and clarifying
213.26changes, and repealing obsolete provisions related to the homestead market value
213.27credit; changing liquor tax reporting and credits; allocating funds to border city
213.28enterprise zones; changing local standard measures program reimbursement
213.29requirements; requiring certain local budgetary information on local Web sites;
213.30establishing a greater Minnesota internship program; requiring reports; canceling
213.31funds to the general fund from the budget reserve account; appropriating money;
213.32amending Minnesota Statutes 2010, sections 6.91, subdivision 2; 13.4965,
213.33subdivision 3; 16A.46; 38.18; 40A.15, subdivision 2; 65B.84, subdivision 1;
213.3469.011, subdivision 1; 69.021, subdivisions 7, 8; 88.51, subdivision 3; 103B.245,
213.35subdivision 3; 103B.251, subdivision 8; 103B.635, subdivision 2; 103B.691,
213.36subdivision 2; 103D.905, subdivisions 2, 3, 8; 116J.8737, subdivisions 5, 8,
213.37by adding a subdivision; 117.025, subdivision 7; 127A.48, subdivision 1;
213.38138.053; 144F.01, subdivision 4; 162.07, subdivisions 3, 4; 163.04, subdivision
213.393; 163.06, subdivision 6; 165.10, subdivision 1; 270.077; 270.41, subdivision 5;
213.40270C.38, subdivision 1; 270C.42, subdivision 2; 270C.69, subdivision 1; 272.01,
213.41subdivision 2; 272.03, by adding subdivisions; 273.032; 273.11, subdivision
213.421; 273.113; 273.124, subdivisions 3a, 13; 273.13, subdivision 21b; 273.1315,
213.43subdivisions 1, 2; 273.1398, subdivisions 3, 4; 273.19, subdivision 1; 273.372,
213.44subdivision 4; 273.39; 275.011, subdivision 1; 275.025, subdivision 1; 275.065,
213.45subdivisions 1, 3; 275.077, subdivision 2; 275.71, subdivision 4; 276A.01,
213.46subdivisions 10, 12, 13, 15; 279.06, subdivision 1; 287.08; 287.20, by adding
213.47a subdivision; 287.23, subdivision 1; 287.385, subdivision 7; 289A.02, by
213.48adding a subdivision; 289A.10, by adding a subdivision; 289A.12, by adding a
213.49subdivision; 289A.18, by adding a subdivision; 289A.20, subdivisions 3, 4, by
213.50adding a subdivision; 289A.26, subdivisions 3, 4, 7, 9; 289A.38, subdivisions
213.517, 8, 9; 289A.42, subdivision 2; 289A.55, subdivision 9; 289A.60, subdivisions
213.524, 24; 290.01, subdivisions 6b, 19d; 290.068, subdivision 1; 290.0681,
213.53subdivisions 1, 3, 4, 5, 10; 290.0921, subdivision 3; 290.17, subdivision 4;
213.54290A.04, subdivision 2h; 290A.25; 290B.04, subdivision 2; 296A.22; 297A.61,
213.55subdivision 4; 297A.665; 297A.68, subdivision 5; 297A.70, subdivision 4, by
213.56adding subdivisions; 297A.815, subdivision 3; 297A.8155; 297E.14, subdivision
214.17; 297F.01, subdivision 23; 297F.09, subdivision 9; 297F.18, subdivision 7;
214.2297G.04, subdivision 2; 297G.09, subdivision 8; 297G.17, subdivision 7;
214.3297I.05, subdivision 11; 297I.30, by adding a subdivision; 297I.80, subdivision
214.41; 298.018, subdivision 2; 298.75, by adding a subdivision; 353G.08, subdivision
214.52; 365.025, subdivision 4; 366.095, subdivision 1; 366.27; 368.01, subdivision
214.623; 368.47; 370.01; 373.40, subdivisions 1, 2, 4; 375.167, subdivision 1; 375.18,
214.7subdivision 3; 375.555; 383B.152; 383B.245; 383B.73, subdivision 1; 383E.20;
214.8383E.23; 385.31; 394.36, subdivision 1; 398A.04, subdivision 8; 401.05,
214.9subdivision 3; 410.32; 412.221, subdivision 2; 412.301; 428A.02, subdivision 1;
214.10430.102, subdivision 2; 447.10; 450.19; 450.25; 458A.10; 458A.31, subdivision
214.111; 465.04; 469.033, subdivision 6; 469.034, subdivision 2; 469.053, subdivisions
214.124, 4a, 6; 469.107, subdivision 1; 469.169, by adding a subdivision; 469.174,
214.13subdivisions 2, 10, by adding subdivisions; 469.175, subdivision 3; 469.176,
214.14subdivisions 1b, 4b, by adding a subdivision; 469.1763, subdivisions 3, 4;
214.15469.180, subdivision 2; 469.187; 469.206; 471.24; 471.571, subdivisions 1,
214.162; 471.73; 473.325, subdivision 2; 473.629; 473.661, subdivision 3; 473.667,
214.17subdivision 9; 473.671; 473.711, subdivision 2a; 473F.02, subdivisions 12,
214.1814, 15, 23; 474A.02, subdivision 23a; 474A.04, subdivision 1a; 474A.062;
214.19474A.091, subdivision 3a; 475.521, subdivisions 2, 4; 475.53, subdivisions 1, 3,
214.204; 475.58, subdivisions 2, 3b; 475.73, subdivision 1; 477A.011, subdivision 32;
214.21477A.0124, subdivision 2; 477A.017, subdivision 3; 641.23; 641.24; 645.44, by
214.22adding a subdivision; Minnesota Statutes 2011 Supplement, sections 116J.8737,
214.23subdivisions 1, 2; 270C.34, subdivision 1; 270C.991, subdivision 4, as amended;
214.24272.02, subdivision 97; 273.114, subdivision 6; 273.13, subdivision 25; 276.04,
214.25subdivision 2; 289A.02, subdivision 7; 290.01, subdivisions 19, 19b, 19c, 31;
214.26290A.03, subdivision 15; 291.005, subdivision 1; 291.03, subdivisions 8, 9, 10,
214.2711; 295.53, subdivision 1; 297A.68, subdivision 42; 297I.05, subdivisions 7, 12;
214.28297I.30, subdivisions 1, 2; 298.01, subdivision 3; 373.01, subdivision 1; 469.176,
214.29subdivisions 4c, 4m; 469.1763, subdivision 2; 477A.011, subdivision 20; Laws
214.301971, chapter 773, section 1, subdivision 2, as amended; Laws 1988, chapter 645,
214.31section 3, as amended; Laws 1998, chapter 389, article 8, section 43, subdivision
214.323, as amended; Laws 1999, chapter 243, article 6, section 11; Laws 2002, chapter
214.33377, article 3, section 25, as amended; Laws 2003, chapter 127, article 12, section
214.3428; Laws 2005, First Special Session chapter 3, article 5, section 37, subdivisions
214.352, 4; Laws 2008, chapter 366, article 5, section 34, as amended; article 7, section
214.3619, subdivision 3, as amended; Laws 2010, chapter 216, section 11; Laws 2010,
214.37chapter 389, article 1, section 12; proposing coding for new law in Minnesota
214.38Statutes, chapters 136A; 290; 297I; 471; repealing Minnesota Statutes 2010,
214.39sections 168A.40, subdivisions 3, 4; 270C.991, subdivision 5; 272.69; 273.11,
214.40subdivisions 1a, 22; 276A.01, subdivision 11; 276A.06, subdivision 10; 473F.02,
214.41subdivision 13; 473F.08, subdivision 10; 477A.011, subdivision 21; Minnesota
214.42Statutes 2011 Supplement, section 289A.60, subdivision 31; Laws 2009, chapter
214.4388, article 4, section 23, as amended."
215.1
We request the adoption of this report and repassage of the bill.
215.2
House Conferees:
215.3
.....
.....
215.4
Greg Davids
Sarah Anderson
215.5
.....
215.6
Jenifer Loon
215.7
Senate Conferees:
215.8
.....
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215.9
Julianne E. Ortman
Warren Limmer
215.10
.....
215.11
Geoff Michel
