1.1 	A bill for an act
1.2 	relating to financing and operation of state and local government; making changes 
1.3 	to individual income, corporate franchise, estate, property, sales and use, excise, 
1.4 	mineral, tobacco, special, local, and other miscellaneous taxes and tax-related 
1.5 	provisions; providing for new income tax subtractions, additions, and credits; 
1.6 	providing for a Social Security subtraction; providing a student loan credit; 
1.7 	modifying the research and development credit; establishing a first-time home 
1.8 	buyer savings account program; modifying the child and dependent care credit; 
1.9 	modifying residency definitions; modifying estate tax exemption amount and rates; 
1.10 	establishing and modifying property tax exemptions and classifications; establishing 
1.11 	school building bond agricultural credit; modifying state general levy; modifying 
1.12 	certain local government aids; establishing riparian protection aid; providing 
1.13 	exemption from certain property taxes for a Major League Soccer stadium; 
1.14 	authorizing assessor accreditation waivers; modifying provisions related to 
1.15 	tax-forfeited land; modifying sales tax definitions and exemptions; providing sales 
1.16 	tax exemptions; clarifying the appropriation for certain sales tax refunds; 
1.17 	establishing sales tax collection duties for marketplace providers and certain 
1.18 	retailers; dedicating certain sales and use tax revenues from the sale of fireworks; 
1.19 	providing an exemption from sales and use taxes for a Major League Soccer 
1.20 	stadium; providing sales tax exemptions for certain construction projects; modifying 
1.21 	the exemption for Super Bowl admission, events, and parking; providing 
1.22 	exemptions for suite licenses and stadium builder's licenses; authorizing certain 
1.23 	tax increment financing authority; authorizing and modifying certain local sales 
1.24 	and use taxes; modifying provisions related to taconite; modifying taxes on tobacco 
1.25 	products and cigarettes; modifying tax administration procedures; making minor 
1.26 	policy, technical, and conforming changes; requiring reports; appropriating money;
1.27 	amending Minnesota Statutes 2016, sections 13.51, subdivision 2; 16A.152, 
1.28 	subdivision 2; 40A.18, subdivision 2; 69.021, subdivision 5; 84.82, subdivision 
1.29 	10; 84.922, subdivision 11; 86B.401, subdivision 12; 116J.8738, subdivisions 3, 
1.30 	4; 128C.24; 270.071, subdivisions 2, 7, 8, by adding a subdivision; 270.072, 
1.31 	subdivisions 2, 3, by adding a subdivision; 270.074, subdivision 1; 270.078, 
1.32 	subdivision 1; 270.12, by adding a subdivision; 270.82, subdivision 1; 270A.03, 
1.33 	subdivision 5; 270B.14, subdivision 1, by adding subdivisions; 270C.171, 
1.34 	subdivision 1; 270C.30; 270C.33, subdivisions 5, 8; 270C.34, subdivision 2; 
1.35 	270C.35, subdivision 3, by adding a subdivision; 270C.38, subdivision 1; 270C.445, 
1.36 	subdivisions 2, 3, 5a, 6, 6a, 6b, 6c, 7, 8, by adding a subdivision; 270C.446, 
1.37 	subdivisions 2, 3, 4, 5; 270C.447, subdivisions 1, 2, 3, by adding a subdivision; 
1.38 	270C.72, subdivision 4; 270C.89, subdivision 1; 270C.9901; 271.06, subdivisions 
1.39 	2, 2a, 6, 7; 271.08, subdivision 1; 271.18; 272.02, subdivisions 9, 10, 86, by adding 
2.1 	subdivisions; 272.0211, subdivision 1; 272.0213; 272.025, subdivision 1; 272.029, 
2.2 	subdivisions 2, 4, by adding a subdivision; 272.0295, subdivision 4, by adding a 
2.3 	subdivision; 272.03, subdivision 1; 272.115, subdivisions 2, 3; 272.162; 273.061, 
2.4 	subdivision 7; 273.0755; 273.08; 273.121, by adding a subdivision; 273.124, 
2.5 	subdivisions 13, 13d; 273.125, subdivision 8; 273.13, subdivisions 22, 23, 25, 34; 
2.6 	273.135, subdivision 1; 273.1384, subdivision 2; 273.1392, as amended; 273.1393; 
2.7 	273.33, subdivisions 1, 2; 273.371; 273.372, subdivisions 2, 4, by adding 
2.8 	subdivisions; 274.01, subdivision 1; 274.014, subdivision 3; 274.13, subdivision 
2.9 	1; 274.135, subdivision 3; 275.025, subdivisions 1, 2, 4, by adding a subdivision; 
2.10 	275.065, subdivisions 1, 3; 275.07, subdivisions 1, 2; 275.08, subdivision 1b; 
2.11 	275.62, subdivision 2; 276.017, subdivision 3; 276.04, subdivision 2; 278.01, 
2.12 	subdivision 1; 279.01, subdivisions 1, 2, 3; 279.37, by adding a subdivision; 281.17; 
2.13 	281.173, subdivision 2; 281.174, subdivision 3; 282.01, subdivisions 1a, 1d, 4, by 
2.14 	adding a subdivision; 282.016; 282.018, subdivision 1; 282.02; 282.04, subdivision 
2.15 	2; 282.241, subdivision 1; 282.322; 287.08; 287.2205; 289A.08, subdivisions 11, 
2.16 	16, by adding a subdivision; 289A.09, subdivisions 1, 2; 289A.10, subdivision 1; 
2.17 	289A.11, subdivision 1; 289A.12, subdivision 14; 289A.18, subdivision 1, by 
2.18 	adding a subdivision; 289A.19, subdivision 7; 289A.20, subdivision 2; 289A.31, 
2.19 	subdivision 1; 289A.35; 289A.37, subdivision 2; 289A.38, subdivision 6; 289A.50, 
2.20 	subdivisions 2a, 7; 289A.60, subdivisions 13, 28, by adding a subdivision; 289A.63, 
2.21 	by adding a subdivision; 290.01, subdivisions 4a, 7; 290.0131, by adding a 
2.22 	subdivision; 290.0132, subdivision 21, by adding subdivisions; 290.05, subdivision 
2.23 	1; 290.06, subdivision 22, by adding subdivisions; 290.067, subdivisions 1, 2b; 
2.24 	290.0671, subdivision 1, as amended; 290.0672, subdivision 1; 290.0674, 
2.25 	subdivision 2, by adding a subdivision; 290.068, subdivisions 1, 2; 290.0692, by 
2.26 	adding a subdivision; 290.081; 290.091, subdivision 2, as amended; 290.0922, 
2.27 	subdivision 2; 290.17, subdivisions 2, 4; 290.31, subdivision 1; 290A.03, 
2.28 	subdivisions 3, 13; 290A.10; 290A.19; 290C.01; 290C.02, subdivisions 1, 3, 6; 
2.29 	290C.03; 290C.04; 290C.05; 290C.055; 290C.07; 290C.08, subdivision 1; 290C.10; 
2.30 	290C.11; 290C.13, subdivision 6; 291.005, subdivision 1, as amended; 291.016, 
2.31 	subdivisions 2, 3; 291.03, subdivisions 1, 9, 11; 291.075; 295.53, subdivision 1, 
2.32 	as amended; 295.54, subdivision 2; 295.55, subdivision 6; 296A.01, subdivisions 
2.33 	7, 12, 33, 42, by adding subdivisions; 296A.02, by adding a subdivision; 296A.07, 
2.34 	subdivisions 1, 4; 296A.08, subdivision 2; 296A.15, subdivisions 1, 4; 296A.17, 
2.35 	subdivision 3; 296A.19, subdivision 1; 296A.22, subdivision 9; 296A.26; 297A.61, 
2.36 	subdivisions 3, 10, 34, by adding a subdivision; 297A.66, subdivisions 1, 2, 4, by 
2.37 	adding a subdivision; 297A.67, subdivisions 2, 4, 5, 6, by adding subdivisions; 
2.38 	297A.68, subdivisions 5, 9, 19, 35a, by adding a subdivision; 297A.70, subdivisions 
2.39 	4, 12, 14, by adding subdivisions; 297A.71, subdivision 44, by adding subdivisions; 
2.40 	297A.75, subdivisions 1, 2, 3, 5; 297A.82, subdivisions 4, 4a; 297A.94; 297A.9905; 
2.41 	297B.07; 297D.02; 297E.02, subdivisions 3, 7; 297E.04, subdivision 1; 297E.05, 
2.42 	subdivision 4; 297E.06, subdivision 1; 297F.01, subdivision 13a; 297F.05, 
2.43 	subdivisions 1, 3, 3a, 4, 4a; 297F.09, subdivision 1; 297F.23; 297G.03, by adding 
2.44 	a subdivision; 297G.09, subdivision 1; 297G.22; 297H.04, subdivision 2; 297H.06, 
2.45 	subdivision 2; 297I.05, subdivision 2; 297I.10, subdivisions 1, 3; 297I.30, 
2.46 	subdivision 7, by adding a subdivision; 297I.60, subdivision 2; 298.01, subdivisions 
2.47 	3, 4, 4c; 298.227; 298.24, subdivision 1, as amended; 298.28, subdivisions 2, 5; 
2.48 	366.095, subdivision 1; 383B.117, subdivision 2; 410.32; 412.301; 414.09, 
2.49 	subdivision 2; 469.034, subdivision 2; 469.101, subdivision 1; 469.169, by adding 
2.50 	a subdivision; 469.174, subdivision 12; 469.175, subdivision 3; 469.176, 
2.51 	subdivision 4c; 469.1761, by adding a subdivision; 469.1763, subdivisions 1, 2, 
2.52 	3; 469.178, subdivision 7; 469.319, subdivision 5; 473.39, by adding subdivisions; 
2.53 	473H.09; 473H.17, subdivision 1a; 475.58, subdivision 3b; 475.60, subdivision 
2.54 	2; 477A.011, subdivisions 34, 45; 477A.0124, subdivisions 2, 4, by adding a 
2.55 	subdivision; 477A.013, subdivisions 1, 8, 9, by adding a subdivision; 477A.015; 
2.56 	477A.03, subdivisions 2a, 2b; 477A.12, subdivision 1; 477A.17; 477A.19, by 
2.57 	adding subdivisions; 504B.285, subdivision 1; 559.202, subdivision 2; 609.5316, 
2.58 	subdivision 3; Laws 1980, chapter 511, sections 1, subdivision 2, as amended; 2, 
3.1 	as amended; Laws 1991, chapter 291, article 8, section 27, subdivisions 3, as 
3.2 	amended, 4, as amended, 5; Laws 1996, chapter 471, article 2, section 29, 
3.3 	subdivisions 1, as amended, 4, as amended; article 3, section 51; Laws 1999, 
3.4 	chapter 243, article 4, sections 17, subdivisions 3, 5, by adding a subdivision; 18, 
3.5 	subdivision 1, as amended; Laws 2005, First Special Session chapter 3, article 5, 
3.6 	sections 38, subdivisions 2, as amended, 4, as amended; 44, subdivisions 3, as 
3.7 	amended, 4, 5, as amended; Laws 2008, chapter 154, article 9, section 21, 
3.8 	subdivision 2; Laws 2008, chapter 366, article 7, section 20; Laws 2009, chapter 
3.9 	88, article 5, section 17, as amended; Laws 2010, chapter 216, sections 12, as 
3.10 	amended; 58, as amended; Laws 2014, chapter 308, article 6, sections 8, subdivision 
3.11 	1; 9; article 9, section 94; Laws 2016, chapter 187, section 5; proposing coding 
3.12 	for new law in Minnesota Statutes, chapters 41B; 88; 273; 281; 289A; 290; 290B; 
3.13 	290C; 293; 297A; 473; 477A; proposing coding for new law as Minnesota Statutes, 
3.14 	chapter 462D; repealing Minnesota Statutes 2016, sections 136A.129; 270.074, 
3.15 	subdivision 2; 270C.445, subdivision 1; 270C.447, subdivision 4; 272.02, 
3.16 	subdivision 23; 281.22; 290.06, subdivision 36; 290.067, subdivision 2; 290.9743; 
3.17 	290.9744; 290C.02, subdivisions 5, 9; 297F.05, subdivision 1a; 477A.0124, 
3.18 	subdivision 5; 477A.20; Minnesota Rules, parts 8092.1400; 8092.2000; 8100.0700; 
3.19 	8125.1300, subpart 3.
3.20 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

3.21 	ARTICLE 1
3.22 	INDIVIDUAL INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES

3.23 	Section 1. [41B.0391] BEGINNING FARMER PROGRAM; TAX CREDITS.
3.24 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
3.25 	the meanings given.
3.26 	(b) "Agricultural assets" means agricultural land, livestock, facilities, buildings, and 
3.27 	machinery used for farming in Minnesota.
3.28 	(c) "Beginning farmer" means an individual who:
3.29 	(1) is a resident of Minnesota;
3.30 	(2) is seeking entry, or has entered within the last ten years, into farming;
3.31 	(3) intends to farm land located within the state borders of Minnesota;
3.32 	(4) is not and whose spouse is not a family member of the owner of the agricultural 
3.33 	assets from whom the beginning farmer is seeking to purchase or rent agricultural assets;
3.34 	(5) is not and whose spouse is not a family member of a partner, member, shareholder, 
3.35 	or trustee of the owner of agricultural assets from whom the beginning farmer is seeking to 
3.36 	purchase or rent agricultural assets; and
3.37 	(6) meets the following eligibility requirements as determined by the authority:
4.1 	(i) has a net worth that does not exceed the limit provided under section 41B.03, 
4.2 	subdivision 3, paragraph (a), clause (2);
4.3 	(ii) provides the majority of the day-to-day physical labor and management of the farm;
4.4 	(iii) has, by the judgment of the authority, adequate farming experience or demonstrates 
4.5 	knowledge in the type of farming for which the beginning farmer seeks assistance from the 
4.6 	authority;
4.7 	(iv) demonstrates to the authority a profit potential by submitting projected earnings 
4.8 	statements;
4.9 	(v) asserts to the satisfaction of the authority that farming will be a significant source 
4.10 	of income for the beginning farmer;
4.11 	(vi) participates in a financial management program approved by the authority or the 
4.12 	commissioner of agriculture;
4.13 	(vii) agrees to notify the authority if the beginning farmer no longer meets the eligibility 
4.14 	requirements within the three-year certification period, in which case the beginning farmer 
4.15 	is no longer eligible for credits under this section; and
4.16 	(viii) has other qualifications as specified by the authority.
4.17 	(d) "Family member" means a family member within the meaning of the Internal Revenue 
4.18 	Code, section 267(c)(4).
4.19 	(e) "Farm product" means plants and animals useful to humans and includes, but is not 
4.20 	limited to, forage and sod crops, oilseeds, grain and feed crops, dairy and dairy products, 
4.21 	poultry and poultry products, livestock, fruits, and vegetables.
4.22 	(f) "Farming" means the active use, management, and operation of real and personal 
4.23 	property for the production of a farm product.
4.24 	(g) "Owner of agricultural assets" means an individual, trust, or pass-through entity that 
4.25 	is the owner in fee of agricultural land or has legal title to any other agricultural asset. Owner 
4.26 	of agricultural assets does not mean an equipment dealer, livestock dealer defined in section 
4.27 	17A.03, subdivision 7, or comparable entity that is engaged in the business of selling 
4.28 	agricultural assets for profit and that is not engaged in farming as its primary business 
4.29 	activity. An owner of agricultural assets approved and certified by the authority under 
4.30 	subdivision 4 must notify the authority if the owner no longer meets the definition in this 
4.31 	paragraph within the three year certification period and is then no longer eligible for credits 
4.32 	under this section.
5.1 	(h) "Resident" has the meaning given in section 290.01, subdivision 7.
5.2 	(i) "Share rent agreement" means a rental agreement in which the principal consideration 
5.3 	given to the owner of agricultural assets is a predetermined portion of the production of 
5.4 	farm products produced from the rented agricultural assets and which provides for sharing 
5.5 	production costs or risk of loss, or both.
5.6 		Subd. 2.Tax credit for owners of agricultural assets. (a) An owner of agricultural 
5.7 	assets may take a credit against the tax due under chapter 290 for the sale or rental of 
5.8 	agricultural assets to a beginning farmer in the amount allocated by the authority under 
5.9 	subdivision 4. An owner of agricultural assets is eligible for allocation of a credit equal to:
5.10 	(1) five percent of the lesser of the sale price or the fair market value of the agricultural 
5.11 	asset, up to a maximum of $32,000;
5.12 	(2) ten percent of the gross rental income in each of the first, second, and third years of 
5.13 	a rental agreement, up to a maximum of $7,000 per year; or
5.14 	(3) 15 percent of the cash equivalent of the gross rental income in each of the first, 
5.15 	second, and third years of a share rent agreement, up to a maximum of $10,000 per year.
5.16 	(b) A qualifying rental agreement includes cash rent of agricultural assets or a share rent 
5.17 	agreement. The agricultural asset must be rented at prevailing community rates as determined 
5.18 	by the authority.
5.19 	(c) The credit may be claimed only after approval and certification by the authority, and 
5.20 	is limited to the amount stated on the certificate issued under subdivision 4. An owner of 
5.21 	agricultural assets must apply to the authority for certification and allocation of a credit, in 
5.22 	a form and manner prescribed by the authority.
5.23 	(d) An owner of agricultural assets or beginning farmer may terminate a rental agreement, 
5.24 	including a share rent agreement, for reasonable cause upon approval of the authority. If a 
5.25 	rental agreement is terminated without the fault of the owner of agricultural assets, the tax 
5.26 	credits shall not be retroactively disallowed. In determining reasonable cause, the authority 
5.27 	must look at which party was at fault in the termination of the agreement. If the authority 
5.28 	determines the owner of agricultural assets did not have reasonable cause, the owner of 
5.29 	agricultural assets must repay all credits received as a result of the rental agreement to the 
5.30 	commissioner of revenue. The repayment is additional income tax for the taxable year in 
5.31 	which the authority makes its decision or when a final adjudication under subdivision 5, 
5.32 	paragraph (a), is made, whichever is later.
6.1 	(e) The credit is limited to the liability for tax as computed under chapter 290 for the 
6.2 	taxable year. If the amount of the credit determined under this section for any taxable year 
6.3 	exceeds this limitation, the excess is a beginning farmer incentive credit carryover according 
6.4 	to section 290.06, subdivision 37.
6.5 		Subd. 3.Beginning farmer management tax credit. (a) A beginning farmer may take 
6.6 	a credit against the tax due under chapter 290 for participating in a financial management 
6.7 	program approved by the authority. A beginning farmer is eligible for allocation of a credit 
6.8 	equal to 100 percent of the amount paid for participating in the program, not to exceed 
6.9 	$1,500 per year. The credit is available for up to three years while the farmer is in the 
6.10 	program. The authority shall maintain a list of approved financial management programs 
6.11 	and establish a procedure for approving equivalent programs that are not on the list.
6.12 	(b) The credit may be claimed only after approval and certification by the authority.
6.13 	(c) The credit is limited to the liability for tax as computed under chapter 290 for the 
6.14 	taxable year. If the amount of the credit determined under this section for any taxable year 
6.15 	exceeds this limitation, the excess is a beginning farmer management credit carryover 
6.16 	according to section 290.06, subdivision 38.
6.17 		Subd. 4.Authority duties. (a) The authority shall:
6.18 	(1) approve and certify or recertify beginning farmers as eligible for the program under 
6.19 	this section;
6.20 	(2) approve and certify or recertify owners of agricultural assets as eligible for the tax 
6.21 	credit under subdivision 2 subject to the allocation limits in paragraph (c);
6.22 	(3) provide necessary and reasonable assistance and support to beginning farmers for 
6.23 	qualification and participation in financial management programs approved by the authority;
6.24 	(4) refer beginning farmers to agencies and organizations that may provide additional 
6.25 	pertinent information and assistance; and
6.26 	(5) notwithstanding section 41B.211, the Rural Finance Authority must share information 
6.27 	with the commissioner of revenue to the extent necessary to administer provisions under 
6.28 	this subdivision and section 290.06, subdivisions 37 and 38. The Rural Finance Authority 
6.29 	must annually notify the commissioner of revenue of approval and certification or 
6.30 	recertification of beginning farmers and owners of agricultural assets under this section. 
6.31 	For credits under subdivision 2, the notification must include the amount of credit approved 
6.32 	by the authority and stated on the credit certificate.
7.1 	(b) The certification of a beginning farmer or an owner of agricultural assets under this 
7.2 	section is valid for the year of the certification and the two following years, after which 
7.3 	time the beginning farmer or owner of agricultural assets must apply to the authority for 
7.4 	recertification.
7.5 	(c) For credits for owners of agricultural assets allowed under subdivision 2, the authority 
7.6 	must not allocate more than $5,000,000 for taxable years beginning after December 31, 
7.7 	2017, and before January 1, 2019, and must not allocate more than $6,000,000 for taxable 
7.8 	years beginning after December 31, 2018. The authority must allocate credits on a first-come, 
7.9 	first-served basis beginning on January 1 of each year, except that recertifications for the 
7.10 	second and third years of credits under subdivision 2, paragraph (a), clauses (1) and (2), 
7.11 	have first priority. Any amount authorized but not allocated in any taxable year does not 
7.12 	cancel and is added to the allocation for the next taxable year.
7.13 		Subd. 5.Appeals of authority determinations. (a) Any decision of the authority under 
7.14 	this section may be challenged as a contested case under chapter 14. The contested case 
7.15 	proceeding must be initiated within 60 days of the date of written notification by the office.
7.16 	(b) If a taxpayer challenges a decision of the authority under this subdivision, upon 
7.17 	perfection of the appeal the authority must notify the commissioner of revenue of the 
7.18 	challenge within 5 days.
7.19 	(c) Nothing in this subdivision affects the commissioner of revenue's authority to audit, 
7.20 	review, correct, or adjust returns claiming the credit.
7.21 		Subd. 6.Report to legislature. (a) No later than February 1, 2022, the Rural Finance 
7.22 	Authority, in consultation with the commissioner of revenue, must provide a report to the 
7.23 	chairs and ranking minority members of the legislative committees having jurisdiction over 
7.24 	agriculture, economic development, rural development, and taxes, in compliance with 
7.25 	sections 3.195 and 3.197, on the beginning farmer tax credits under this section issued in 
7.26 	tax years beginning after December 31, 2017, and before January 1, 2022.
7.27 	(b) The report must include background information on beginning farmers in Minnesota 
7.28 	and any other information the commissioner and authority find relevant to evaluating the 
7.29 	effect of the credits on increasing opportunities for and the number of beginning farmers.
7.30 	(c) For credits issued under subdivision 2, paragraph (a), clauses (1) to (3), the report 
7.31 	must include:
7.32 	(1) the number and amount of credits issued under each clause;
7.33 	(2) the geographic distribution of credits issued under each clause;
8.1 	(3) the type of agricultural assets for which credits were issued under clause (1);
8.2 	(4) the number and geographic distribution of beginning farmers whose purchase or 
8.3 	rental of assets resulted in credits for the seller or owner of the asset;
8.4 	(5) the number and amount of credits disallowed under subdivision 2, paragraph (d);
8.5 	(6) data on the number of beginning farmers by geographic region in calendar years 
8.6 	2017 through 2021; and
8.7 	(7) the number and amount of credit applications that exceeded the allocation available 
8.8 	in each year.
8.9 	(d) For credits issued under subdivision 3, the report must include:
8.10 	(1) the number and amount of credits issued;
8.11 	(2) the geographic distribution of credits;
8.12 	(3) a listing and description of each approved financial management program for which 
8.13 	credits were issued; and
8.14 	(4) a description of the approval procedure for financial management programs not on 
8.15 	the list maintained by the authority, as provided in subdivision 3, paragraph (a).
8.16 		Subd. 7.Sunset. This section expires for taxable years beginning after December 31, 
8.17 	2023.

8.18 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
8.19 	31, 2017.

8.20 	Sec. 2. Minnesota Statutes 2016, section 289A.10, subdivision 1, is amended to read:
8.21 		Subdivision 1.Return required. In the case of a decedent who has an interest in property 
8.22 	with a situs in Minnesota, the personal representative must submit a Minnesota estate tax 
8.23 	return to the commissioner, on a form prescribed by the commissioner, if:
8.24 	(1) a federal estate tax return is required to be filed; or
8.25 	(2) the sum of the federal gross estate and federal adjusted taxable gifts, as defined in 
8.26 	section 2001(b) of the Internal Revenue Code, made within three years of the date of the 
8.27 	decedent's death exceeds $1,200,000 for estates of decedents dying in 2014; $1,400,000 for 
8.28 	estates of decedents dying in 2015; $1,600,000 for estates of decedents dying in 2016; 
8.29 	$1,800,000 $2,100,000 for estates of decedents dying in 2017; $2,400,000 for estates of 
8.30 	decedents dying in 2018; $2,700,000 for estates of decedents dying in 2019; and $2,000,000
8.31 	$3,000,000 for estates of decedents dying in 2018 2020 and thereafter.
9.1 	The return must contain a computation of the Minnesota estate tax due. The return must 
9.2 	be signed by the personal representative.

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

9.5 	Sec. 3. Minnesota Statutes 2016, section 289A.19, subdivision 7, is amended to read:
9.6 		Subd. 7.Federal extensions. When an extension of time to file a partnership, fiduciary 
9.7 	income tax, or S corporation tax return is granted by the Internal Revenue Service, the 
9.8 	commissioner shall grant an automatic extension to file the comparable Minnesota return 
9.9 	for that period. An extension granted under this subdivision does not affect the due date for 
9.10 	making payments of tax.

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

9.12 	Sec. 4. Minnesota Statutes 2016, section 290.01, subdivision 4a, is amended to read:
9.13 		Subd. 4a.Financial institution. (a) "Financial institution" means:
9.14 	(1) a holding company any corporation or other business entity registered (i) under state 
9.15 	law as a bank holding company; (ii) under the federal Bank Holding Company Act of 1956, 
9.16 	as amended; or (iii) as a savings and loan holding company under the federal National 
9.17 	Housing Act, as amended;
9.18 	(2) any regulated financial corporation; or a national bank organized and existing as a 
9.19 	national bank association pursuant to the provisions of United States Code, title 12, chapter 
9.20 	2;
9.21 	(3) any other corporation organized under the laws of the United States or organized 
9.22 	under the laws of this state or any other state or country that is carrying on the business of 
9.23 	a financial institution. a savings association or federal savings bank as defined in United 
9.24 	States Code, title 12, section 1813(b)(1);
9.25 	(4) any bank or thrift institution incorporated or organized under the laws of any state;
9.26 	(5) any corporation organized under United States Code, title 12, sections 611 to 631;
9.27 	(6) any agency or branch of a foreign depository as defined under United States Code, 
9.28 	title 12, section 3101;
9.29 	(7) any corporation or other business entity that is more than 50 percent owned, directly 
9.30 	or indirectly, by any person or business entity described in clauses (1) to (6), other than an 
9.31 	insurance company taxable under chapter 297I;
10.1 	(8) a corporation or other business entity that derives more than 50 percent of its total 
10.2 	gross income for financial accounting purposes from finance leases. For the purposes of 
10.3 	this clause, "gross income" means the average from the current tax year and immediately 
10.4 	preceding two years and excludes gross income from incidental or occasional transactions. 
10.5 	For purposes of this clause, "finance lease" means any lease transaction that is the functional 
10.6 	equivalent of an extension of credit and that transfers substantially all the benefits and risks 
10.7 	incident to the ownership of property, including any direct financing lease or leverage lease 
10.8 	that meets the criteria of Financial Accounting Standards Board Statement No. 13, accounting 
10.9 	for leases, or any other lease that is accounted for as financing by a lessor under generally 
10.10 	accepted accounting principles; or
10.11 	(9) any other person or business entity, other than an insurance company taxable under 
10.12 	chapter 297I, that derives more than 50 percent of its gross income from activities that an 
10.13 	entity described in clauses (2) to (6) or (8) is authorized to transact. For the purposes of this 
10.14 	clause, gross income does not include income from nonrecurring, extraordinary items.
10.15 	(b) "Holding company" means any corporation registered under the Federal Bank Holding 
10.16 	Company Act of 1956, as amended, or registered as a savings and loan holding company 
10.17 	under the Federal National Housing Act, as amended, or a federal savings bank holding 
10.18 	company. The commissioner is authorized to exclude any person from the application of 
10.19 	paragraph (a), clause (9), if the person proves by clear and convincing evidence that the 
10.20 	person's income-producing activity is not in substantial competition with any person described 
10.21 	in paragraph (a), clauses (2) to (6) or (8).
10.22 	(c) "Regulated financial corporation" means an institution, the deposits or accounts of 
10.23 	which are insured under the Federal Deposit Insurance Act or by the Federal Savings and 
10.24 	Loan Insurance Corporation, any institution which is a member of a Federal Home Loan 
10.25 	Bank, any other bank or thrift institution incorporated or organized under the laws of any 
10.26 	state or any foreign country which is engaged in the business of receiving deposits, any 
10.27 	corporation organized under the provisions of United States Code, title 12, sections 611 to 
10.28 	631 (Edge Act Corporations), and any agency of a foreign depository as defined in United 
10.29 	States Code, title 12, section 3101.
10.30 	(d) "Business of a financial institution" means:
10.31 	(1) the business that any corporation organized under the authority of the United States 
10.32 	or organized under the laws of this state or any other state or country does or has authority 
10.33 	to do which is substantially similar to the business which a corporation may be created to 
11.1 	do under chapters 46 to 55 or any business which a corporation is authorized to do by those 
11.2 	laws; or
11.3 	(2) the business that any corporation organized under the authority of the United States 
11.4 	or organized under the laws of this state or any other state or country does or has authority 
11.5 	to do if the corporation derives more than 50 percent of its gross income from lending 
11.6 	activities (including discounting obligations) in substantial competition with the businesses 
11.7 	described in clause (1). For purposes of this clause, the computation of the gross income of 
11.8 	a corporation does not include income from nonrecurring, extraordinary items.

11.9 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
11.10 	31, 2016.

11.11 	Sec. 5. Minnesota Statutes 2016, section 290.01, subdivision 7, is amended to read:
11.12 		Subd. 7.Resident. (a) The term "resident" means any individual domiciled in Minnesota, 
11.13 	except that an individual is not a "resident" for the period of time that the individual is a 
11.14 	"qualified individual" as defined in section 911(d)(1) of the Internal Revenue Code, if the 
11.15 	qualified individual notifies the county within three months of moving out of the country 
11.16 	that homestead status be revoked for the Minnesota residence of the qualified individual, 
11.17 	and the property is not classified as a homestead while the individual remains a qualified 
11.18 	individual.
11.19 	(b) "Resident" also means any individual domiciled outside the state who maintains a 
11.20 	place of abode in the state and spends in the aggregate more than one-half of the tax year 
11.21 	in Minnesota, unless:
11.22 	(1) the individual or the spouse of the individual is in the armed forces of the United 
11.23 	States; or
11.24 	(2) the individual is covered under the reciprocity provisions in section 290.081.
11.25 	For purposes of this subdivision, presence within the state for any part of a calendar day 
11.26 	constitutes a day spent in the state. Individuals shall keep adequate records to substantiate 
11.27 	the days spent outside the state.
11.28 	The term "abode" means a dwelling maintained by an individual, whether or not owned 
11.29 	by the individual and whether or not occupied by the individual, and includes a dwelling 
11.30 	place owned or leased by the individual's spouse.
11.31 	(c) In determining where an individual is domiciled, neither the commissioner nor any 
11.32 	court shall consider:
12.1 	(1) charitable contributions made by an the individual within or without the state in 
12.2 	determining if the individual is domiciled in Minnesota;
12.3 	(2) the location of the individual's attorney, certified public accountant, or financial 
12.4 	adviser; or
12.5 	(3) the place of business of a financial institution at which the individual applies for any 
12.6 	new type of credit or at which the individual opens or maintains any type of account.
12.7 	(d) For purposes of this subdivision, the following terms have the meanings given them:
12.8 	(1) "financial adviser" means:
12.9 	(i) an individual or business entity engaged in business as a certified financial planner, 
12.10 	registered investment adviser, licensed insurance producer or agent, or registered securities 
12.11 	broker-dealer representative; or
12.12 	(ii) a financial institution providing services related to trust or estate administration, 
12.13 	investment management, or financial planning; and
12.14 	(2) "financial institution" means a financial institution as defined in section 47.015, 
12.15 	subdivision 1; a state or nationally chartered credit union; or a registered broker-dealer 
12.16 	under the Securities and Exchange Act of 1934.

12.17 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
12.18 	31, 2016.

12.19 	Sec. 6. Minnesota Statutes 2016, section 290.0131, is amended by adding a subdivision 
12.20 	to read:
12.21 		Subd. 14.First-time home buyer savings account. The amount for a first-time home 
12.22 	buyer savings account required by section 462D.06, subdivision 2, is an addition.

12.23 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
12.24 	31, 2016.

12.25 	Sec. 7. Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision 
12.26 	to read:
12.27 		Subd. 23.Contributions to a section 529 plan. (a) The amount equal to the contributions 
12.28 	made during the taxable year to a qualified account is a subtraction.
12.29 	(b) The definitions under section 290.0684 apply for the purposes of this subdivision.
13.1 	(c) The subtraction under this subdivision must not exceed $3,000 for married couples 
13.2 	filing joint returns and $1,500 for all other filers, and is limited to individuals who do not 
13.3 	claim the credit under section 290.0684.

13.4 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
13.5 	31, 2016.

13.6 	Sec. 8. Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision 
13.7 	to read:
13.8 		Subd. 24.Discharge of indebtedness; education loans. (a) The amount equal to the 
13.9 	discharge of indebtedness of the taxpayer is a subtraction if:
13.10 	(1) the indebtedness discharged is a qualified education loan; and
13.11 	(2) the indebtedness was discharged under section 136A.1791, or following the taxpayer's 
13.12 	completion of an income-driven repayment plan.
13.13 	(b) For the purposes of this subdivision, "qualified education loan" has the meaning 
13.14 	given in section 221 of the Internal Revenue Code.
13.15 	(c) For purposes of this subdivision, "income-driven repayment plan" means a payment 
13.16 	plan established by the United States Department of Education that sets monthly student 
13.17 	loan payments based on income and family size under United States Code, title 20, section 
13.18 	1087e, or similar authority and specifically includes, but is not limited to:
13.19 	(1) the income-based repayment plan under United States Code, title 20, section 1098e;
13.20 	(2) the income contingent repayment plan established under United States Code, title 
13.21 	20, section 1087e, subsection (e); and
13.22 	(3) the PAYE program or REPAYE program established by the Department of Education 
13.23 	under administrative regulations.

13.24 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
13.25 	31, 2016.

13.26 	Sec. 9. Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision 
13.27 	to read:
13.28 		Subd. 25.First-time home buyer savings account. (a) For purposes of this subdivision, 
13.29 	the terms defined in section 462D.02 have the meanings given in that section.
14.1 	(b) The earnings on a first-time home buyer savings account allowed by section 462D.06, 
14.2 	subdivision 1, is a subtraction.

14.3 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
14.4 	31, 2016.

14.5 	Sec. 10. Minnesota Statutes 2016, section 290.0132, is amended by adding a subdivision 
14.6 	to read:
14.7 		Subd. 26.Social Security benefits. (a) A portion of Social Security benefits is allowed 
14.8 	as a subtraction. The subtraction equals the lesser of Social Security benefits or a maximum 
14.9 	subtraction subject to the limits under paragraphs (b), (c), and (d).
14.10 	(b) For married taxpayers filing a joint return and surviving spouses, the maximum 
14.11 	subtraction equals $4,500. The maximum subtraction is reduced by 20 percent of provisional 
14.12 	income over $77,000. In no case is the subtraction less than zero.
14.13 	(c) For single or head-of-household taxpayers, the maximum subtraction equals $3,500. 
14.14 	The maximum subtraction is reduced by 20 percent of provisional income over $60,200. 
14.15 	In no case is the subtraction less than zero.
14.16 	(d) For married taxpayers filing separate returns, the maximum subtraction equals $2,250. 
14.17 	The maximum subtraction is reduced by 20 percent of provisional income over $38,500. 
14.18 	In no case is the subtraction less than zero.
14.19 	(e) For purposes of this subdivision, "provisional income" means modified adjusted 
14.20 	gross income as defined in section 86(b)(2) of the Internal Revenue Code, plus one-half of 
14.21 	the Social Security benefits received during the taxable year, and "Social Security benefits" 
14.22 	has the meaning given in section 86(d)(1) of the Internal Revenue Code.
14.23 	(f) The commissioner shall adjust the maximum subtraction and threshold amounts in 
14.24 	paragraphs (b) to (d) by the percentage determined pursuant to the provisions of section 
14.25 	1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B) of the Internal Revenue 
14.26 	Code the word "2016" shall be substituted for the word "1992." For 2018, the commissioner 
14.27 	shall then determine the percentage change from the 12 months ending on August 31, 2016, 
14.28 	to the 12 months ending on August 31, 2017, and in each subsequent year, from the 12 
14.29 	months ending on August 31, 2016, to the 12 months ending on August 31 of the year 
14.30 	preceding the taxable year. The determination of the commissioner pursuant to this 
14.31 	subdivision must not be considered a rule and is not subject to the Administrative Procedure 
14.32 	Act contained in chapter 14, including section 14.386. The maximum subtraction and 
15.1 	threshold amounts as adjusted must be rounded to the nearest $10 amount. If the amount 
15.2 	ends in $5, the amount is rounded up to the nearest $10 amount.

15.3 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
15.4 	31, 2016.

15.5 	Sec. 11. [290.0137] ACCELERATED RECOGNITION OF CERTAIN 
15.6 	INSTALLMENT SALE GAINS.
15.7 	(a) In the case of a nonresident individual or a person who becomes a nonresident 
15.8 	individual during the tax year, taxable net income shall include the allocable amount realized 
15.9 	upon a sale of the assets of, or any interest in, an S corporation or partnership that operated 
15.10 	in Minnesota during the year of sale, including any income or gain to be recognized in future 
15.11 	years pursuant to an installment sale method of reporting under the Internal Revenue Code.
15.12 	(1) For the purposes of this paragraph, an individual who becomes a nonresident of 
15.13 	Minnesota in any year after an installment sale is required to recognize the full amount of 
15.14 	any income or gain described in this paragraph on the individual's final Minnesota resident 
15.15 	tax return to the extent that such income has not been recognized in a prior year.
15.16 	(2) For the purposes of this section, "realized" has the meaning given in section 1001(b) 
15.17 	of the Internal Revenue Code.
15.18 	(3) For the purposes of this section, "installment sale" means any installment sale under 
15.19 	section 453 of the Internal Revenue Code and any other sale that is reported utilizing a 
15.20 	method of accounting authorized under subchapter E of the Internal Revenue Code that 
15.21 	allows taxpayers to delay reporting or recognizing a realized gain until a future year.
15.22 	(4) For the purposes of this section, "allocable amount" means the full amount to be 
15.23 	apportioned to Minnesota under section 290.191 or 290.20, or the full amount to be assigned 
15.24 	to Minnesota under section 290.17.
15.25 	(b) Notwithstanding paragraph (a), nonresident taxpayers may elect to defer recognizing 
15.26 	unrecognized installment sale gains by making an election under this paragraph. The election 
15.27 	must be filed on a form to be determined or prescribed by the commissioner and must be 
15.28 	filed by the due date of the individual income tax return, including any extension. Electing 
15.29 	taxpayers must make an irrevocable agreement to:
15.30 	(1) file Minnesota tax returns in all subsequent years when gains from the installment 
15.31 	sales are recognized and reported to the Internal Revenue Service;
16.1 	(2) allocate gains to the state of Minnesota as though the gains were realized in the year 
16.2 	of sale under section 290.17, 290.191, or 290.20; and
16.3 	(3) include all relevant federal tax documents reporting the installment sale with 
16.4 	subsequent Minnesota tax returns.
16.5 	(c) Income or gain recognized for Minnesota purposes pursuant to paragraph (a) must 
16.6 	be excluded from taxable net income in any future year that the taxpayer files a Minnesota 
16.7 	tax return to the extent that the income or gain has already been subject to tax pursuant to 
16.8 	paragraph (a).

16.9 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
16.10 	31, 2016.

16.11 	Sec. 12. Minnesota Statutes 2016, section 290.05, subdivision 1, is amended to read:
16.12 		Subdivision 1.Exempt entities. The following corporations, individuals, estates, trusts, 
16.13 	and organizations shall be exempted from taxation under this chapter, provided that every 
16.14 	such person or corporation claiming exemption under this chapter, in whole or in part, must 
16.15 	establish to the satisfaction of the commissioner the taxable status of any income or activity:
16.16 	(a) corporations, individuals, estates, and trusts engaged in the business of mining or 
16.17 	producing iron ore and mining, producing, or refining other ores, metals, and minerals, the 
16.18 	mining, production, or refining of which is subject to the occupation tax imposed by section 
16.19 	298.01; but if any such corporation, individual, estate, or trust engages in any other business 
16.20 	or activity or has income from any property not used in such business it shall be subject to 
16.21 	this tax computed on the net income from such property or such other business or activity. 
16.22 	Royalty shall not be considered as income from the business of mining or producing iron 
16.23 	ore within the meaning of this section;
16.24 	(b) the United States of America, the state of Minnesota or any political subdivision of 
16.25 	either agencies or instrumentalities, whether engaged in the discharge of governmental or 
16.26 	proprietary functions; and
16.27 	(c) any insurance company, as defined in section 290.17, subdivision 4, paragraph (j), 
16.28 	but including any insurance company licensed and domiciled in another state that grants, 
16.29 	on a reciprocal basis, exemption from retaliatory taxes.

16.30 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
16.31 	31, 2016.

17.1 	Sec. 13. Minnesota Statutes 2016, section 290.06, is amended by adding a subdivision to 
17.2 	read:
17.3 		Subd. 2g.First-time home buyer savings account. (a) For purposes of this subdivision, 
17.4 	the terms defined in section 462D.02 have the meanings given in that section.
17.5 	(b) In addition to the tax computed under subdivision 2c, an additional amount of tax 
17.6 	applies equal to the additional tax computed for the taxable year for the account holder of 
17.7 	a first-time home buyer account under section 462D.06, subdivision 3.

17.8 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
17.9 	31, 2016.

17.10 	Sec. 14. Minnesota Statutes 2016, section 290.06, is amended by adding a subdivision to 
17.11 	read:
17.12 		Subd. 2h.Section 529 plan recapture. (a) For the purposes of this subdivision:
17.13 	(1) the definitions under section 290.0684 apply;
17.14 	(2) "account owner" means an individual who owns one or more qualified accounts;
17.15 	(3) "credit ratio" means the ratio of (i) two times the total amount of credits that an 
17.16 	account owner claimed under section 290.0684 for contributions to the account owner's 
17.17 	qualified accounts to (ii) the total contributions in all taxable years to the account owner's 
17.18 	qualified accounts; and
17.19 	(4) "subtraction ratio" means the ratio of (i) the total amount of subtractions that an 
17.20 	account owner claimed under section 290.0132, subdivision 23, for contributions to the 
17.21 	account owner's qualified accounts to (ii) the total contributions in all taxable years to the 
17.22 	account owner's qualified accounts.
17.23 	(b) If a distribution from a qualified account is used for a purpose other than to pay for 
17.24 	qualified higher education expenses, the account owner must pay an additional tax equal 
17.25 	to:
17.26 	(1) 50 percent of the product of the credit ratio and the amount of the distribution; plus
17.27 	(2) 10 percent of the product of the subtraction ratio and the amount of the distribution.
17.28 	(c) The additional tax under this subdivision does not apply to any portion of a distribution 
17.29 	that is subject to the additional tax under section 529(c)(6) of the Internal Revenue Code.

17.30 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
17.31 	31, 2016.

18.1 	Sec. 15. Minnesota Statutes 2016, section 290.06, subdivision 22, is amended to read:
18.2 		Subd. 22.Credit for taxes paid to another state. (a) A taxpayer who is liable for taxes 
18.3 	based on net income to another state, as provided in paragraphs (b) through (f), upon income 
18.4 	allocated or apportioned to Minnesota, is entitled to a credit for the tax paid to another state 
18.5 	if the tax is actually paid in the taxable year or a subsequent taxable year. A taxpayer who 
18.6 	is a resident of this state pursuant to section 290.01, subdivision 7, paragraph (b), and who 
18.7 	is subject to income tax as a resident in the state of the individual's domicile is not allowed 
18.8 	this credit unless the state of domicile does not allow a similar credit.
18.9 	(b) For an individual, estate, or trust, the credit is determined by multiplying the tax 
18.10 	payable under this chapter by the ratio derived by dividing the income subject to tax in the 
18.11 	other state that is also subject to tax in Minnesota while a resident of Minnesota by the 
18.12 	taxpayer's federal adjusted gross income, as defined in section 62 of the Internal Revenue 
18.13 	Code, modified by the addition required by section 290.0131, subdivision 2, and the 
18.14 	subtraction allowed by section 290.0132, subdivision 2, to the extent the income is allocated 
18.15 	or assigned to Minnesota under sections 290.081 and 290.17.
18.16 	(c) If the taxpayer is an athletic team that apportions all of its income under section 
18.17 	290.17, subdivision 5, the credit is determined by multiplying the tax payable under this 
18.18 	chapter by the ratio derived from dividing the total net income subject to tax in the other 
18.19 	state by the taxpayer's Minnesota taxable income.
18.20 	(d)(1) The credit determined under paragraph (b) or (c) shall not exceed the amount of 
18.21 	tax so paid to the other state on the gross income earned within the other state subject to 
18.22 	tax under this chapter, nor shall; and
18.23 	(2) the allowance of the credit does not reduce the taxes paid under this chapter to an 
18.24 	amount less than what would be assessed if such income amount was the gross income 
18.25 	earned within the other state were excluded from taxable net income.
18.26 	(e) In the case of the tax assessed on a lump-sum distribution under section 290.032, the 
18.27 	credit allowed under paragraph (a) is the tax assessed by the other state on the lump-sum 
18.28 	distribution that is also subject to tax under section 290.032, and shall not exceed the tax 
18.29 	assessed under section 290.032. To the extent the total lump-sum distribution defined in 
18.30 	section 290.032, subdivision 1, includes lump-sum distributions received in prior years or 
18.31 	is all or in part an annuity contract, the reduction to the tax on the lump-sum distribution 
18.32 	allowed under section 290.032, subdivision 2, includes tax paid to another state that is 
18.33 	properly apportioned to that distribution.
19.1 	(f) If a Minnesota resident reported an item of income to Minnesota and is assessed tax 
19.2 	in such other state on that same income after the Minnesota statute of limitations has expired, 
19.3 	the taxpayer shall receive a credit for that year under paragraph (a), notwithstanding any 
19.4 	statute of limitations to the contrary. The claim for the credit must be submitted within one 
19.5 	year from the date the taxes were paid to the other state. The taxpayer must submit sufficient 
19.6 	proof to show entitlement to a credit.
19.7 	(g) For the purposes of this subdivision, a resident shareholder of a corporation treated 
19.8 	as an "S" corporation under section 290.9725, must be considered to have paid a tax imposed 
19.9 	on the shareholder in an amount equal to the shareholder's pro rata share of any net income 
19.10 	tax paid by the S corporation to another state. For the purposes of the preceding sentence, 
19.11 	the term "net income tax" means any tax imposed on or measured by a corporation's net 
19.12 	income.
19.13 	(h) For the purposes of this subdivision, a resident partner of an entity taxed as a 
19.14 	partnership under the Internal Revenue Code must be considered to have paid a tax imposed 
19.15 	on the partner in an amount equal to the partner's pro rata share of any net income tax paid 
19.16 	by the partnership to another state. For purposes of the preceding sentence, the term "net 
19.17 	income" tax means any tax imposed on or measured by a partnership's net income.
19.18 	(i) For the purposes of this subdivision, "another state":
19.19 	(1) includes:
19.20 	(i) the District of Columbia; and
19.21 	(ii) a province or territory of Canada; but
19.22 	(2) excludes Puerto Rico and the several territories organized by Congress.
19.23 	(j) The limitations on the credit in paragraphs (b), (c), and (d), are imposed on a state 
19.24 	by state basis.
19.25 	(k) For a tax imposed by a province or territory of Canada, the tax for purposes of this 
19.26 	subdivision is the excess of the tax over the amount of the foreign tax credit allowed under 
19.27 	section 27 of the Internal Revenue Code. In determining the amount of the foreign tax credit 
19.28 	allowed, the net income taxes imposed by Canada on the income are deducted first. Any 
19.29 	remaining amount of the allowable foreign tax credit reduces the provincial or territorial 
19.30 	tax that qualifies for the credit under this subdivision.
19.31 	(l)(1) The credit allowed to a qualifying individual under this section for tax paid to a 
19.32 	qualifying state equals the credit calculated under paragraphs (b) and (d), plus the amount 
19.33 	calculated by multiplying:
20.1 	(i) the difference between the preliminary credit and the credit calculated under paragraphs 
20.2 	(b) and (d), by
20.3 	(ii) the ratio derived by dividing the income subject to tax in the qualifying state that 
20.4 	consists of compensation for performance of personal or professional services by the total 
20.5 	amount of income subject to tax in the qualifying state.
20.6 	(2) If the amount of the credit that a qualifying individual is eligible to receive under 
20.7 	clause (1) for tax paid to a qualifying state exceeds the tax due under this chapter before 
20.8 	the application of the credit calculated under clause (1), the commissioner shall refund the 
20.9 	excess to the qualifying individual. An amount sufficient to pay the refunds required by this 
20.10 	subdivision is appropriated to the commissioner from the general fund.
20.11 	(3) For purposes of this paragraph, "preliminary credit" means the credit that a qualifying 
20.12 	individual is eligible to receive under paragraphs (b) and (d) for tax paid to a qualifying 
20.13 	state without regard to the limitation in paragraph (d), clause (2); "qualifying individual" 
20.14 	means a Minnesota resident under section 290.01, subdivision 7, paragraph (a), who received 
20.15 	compensation during the taxable year for the performance of personal or professional services 
20.16 	within a qualifying state; and "qualifying state" means a state with which an agreement 
20.17 	under section 290.081 is not in effect for the taxable year but was in effect for a taxable 
20.18 	year beginning before January 1, 2010.

20.19 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
20.20 	31, 2016.

20.21 	Sec. 16. Minnesota Statutes 2016, section 290.06, is amended by adding a subdivision to 
20.22 	read:
20.23 		Subd. 37.Beginning farmer incentive credit. (a) A beginning farmer incentive credit 
20.24 	is allowed against the tax due under this chapter for the sale or rental of agricultural assets 
20.25 	to a beginning farmer according to section 41B.0391, subdivision 2, and is limited to the 
20.26 	amount stated on the certificate issued under section 41B.0391, subdivision 4.
20.27 	(b) The credit may be claimed only after approval and certification by the Rural Finance 
20.28 	Authority according to section 41B.0391.
20.29 	(c) The credit is limited to the liability for tax, as computed under this chapter, for the 
20.30 	taxable year. If the amount of the credit determined under this subdivision for any taxable 
20.31 	year exceeds this limitation, the excess is a beginning farmer incentive credit carryover to 
20.32 	each of the 15 succeeding taxable years. The entire amount of the excess unused credit for 
20.33 	the taxable year is carried first to the earliest of the taxable years to which the credit may 
21.1 	be carried and then to each successive year to which the credit may be carried. The amount 
21.2 	of the unused credit which may be added under this paragraph must not exceed the taxpayer's 
21.3 	liability for tax, less the beginning farmer incentive credit for the taxable year.
21.4 	(d) Credits allowed to a partnership, a limited liability company taxed as a partnership, 
21.5 	an S corporation, or multiple owners of property are passed through to the partners, members, 
21.6 	shareholders, or owners, respectively, pro rata to each based on the partner's, member's, 
21.7 	shareholder's, or owner's share of the entity's assets or as specially allocated in the 
21.8 	organizational documents or any other executed agreement, as of the last day of the taxable 
21.9 	year.
21.10 	(e) For a nonresident or part-year resident, the credit under this section must be allocated 
21.11 	using the percentage calculated in section 290.06, subdivision 2c, paragraph (e).
21.12 	(f) Notwithstanding the approval and certification by the Rural Finance Authority under 
21.13 	section 41B.0391, the commissioner may utilize any audit and examination powers under 
21.14 	chapter 270C or 289A to the extent necessary to verify that the taxpayer is eligible for the 
21.15 	credit and to assess for the amount of any improperly claimed credit.
21.16 	(g) This section expires at the same time and on the same terms as section 41B.0391, 
21.17 	except that the expiration of this section does not affect the commissioner of revenue's 
21.18 	authority to audit or power of examination and assessment for credits claimed under this 
21.19 	section.

21.20 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
21.21 	31, 2017.

21.22 	Sec. 17. Minnesota Statutes 2016, section 290.06, is amended by adding a subdivision to 
21.23 	read:
21.24 		Subd. 38.Beginning farmer management credit. (a) A taxpayer who is a beginning 
21.25 	farmer may take a credit against the tax due under this chapter for participation in a financial 
21.26 	management program according to section 41B.0391, subdivision 3.
21.27 	(b) The credit may be claimed only after approval and certification by the Rural Finance 
21.28 	Authority according to section 41B.0391.
21.29 	(c) The credit is limited to the liability for tax, as computed under this chapter, for the 
21.30 	taxable year. If the amount of the credit determined under this subdivision for any taxable 
21.31 	year exceeds this limitation, the excess is a beginning farmer management credit carryover 
21.32 	to each of the three succeeding taxable years. The entire amount of the excess unused credit 
21.33 	for the taxable year is carried first to the earliest of the taxable years to which the credit 
22.1 	may be carried and then to each successive year to which the credit may be carried. The 
22.2 	amount of the unused credit which may be added under this paragraph must not exceed the 
22.3 	taxpayer's liability for tax, less the beginning farmer management credit for the taxable 
22.4 	year.
22.5 	(d) For a part-year resident, the credit under this section must be allocated using the 
22.6 	percentage calculated in section 290.06, subdivision 2c, paragraph (e).
22.7 	(e) Notwithstanding the approval and certification by the Rural Finance Authority under 
22.8 	section 41B.0391, the commissioner may utilize any audit and examination powers under 
22.9 	chapter 270C or 289A to the extent necessary to verify that the taxpayer is eligible for the 
22.10 	credit and to assess for the amount of any improperly claimed credit.
22.11 	(f) This section expires at the same time and on the same terms as section 41B.0391, 
22.12 	except that the expiration of this section does not affect the commissioner of revenue's 
22.13 	authority to audit or power of examination and assessment for credits claimed under this 
22.14 	section.

22.15 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
22.16 	31, 2017.

22.17 	Sec. 18. Minnesota Statutes 2016, section 290.067, subdivision 1, is amended to read:
22.18 		Subdivision 1.Amount of credit. (a) A taxpayer may take as a credit against the tax 
22.19 	due from the taxpayer and a spouse, if any, under this chapter an amount equal to the 
22.20 	dependent care credit for which the taxpayer is eligible pursuant to the provisions of section 
22.21 	21 of the Internal Revenue Code subject to the limitations provided in subdivision 2 except 
22.22 	that in determining whether the child qualified as a dependent, income received as a 
22.23 	Minnesota family investment program grant or allowance to or on behalf of the child must 
22.24 	not be taken into account in determining whether the child received more than half of the 
22.25 	child's support from the taxpayer, and the provisions of section 32(b)(1)(D) of the Internal 
22.26 	Revenue Code do not apply.
22.27 	(b) If a child who has not attained the age of six years at the close of the taxable year is 
22.28 	cared for at a licensed family day care home operated by the child's parent, the taxpayer is 
22.29 	deemed to have paid employment-related expenses. If the child is 16 months old or younger 
22.30 	at the close of the taxable year, the amount of expenses deemed to have been paid equals 
22.31 	the maximum limit for one qualified individual under section 21(c) and (d) of the Internal 
22.32 	Revenue Code. If the child is older than 16 months of age but has not attained the age of 
22.33 	six years at the close of the taxable year, the amount of expenses deemed to have been paid 
23.1 	equals the amount the licensee would charge for the care of a child of the same age for the 
23.2 	same number of hours of care.
23.3 	(c) If a married couple:
23.4 	(1) has a child who has not attained the age of one year at the close of the taxable year;
23.5 	(2) files a joint tax return for the taxable year; and
23.6 	(3) does not participate in a dependent care assistance program as defined in section 129 
23.7 	of the Internal Revenue Code, in lieu of the actual employment related expenses paid for 
23.8 	that child under paragraph (a) or the deemed amount under paragraph (b), the lesser of (i) 
23.9 	the combined earned income of the couple or (ii) the amount of the maximum limit for one 
23.10 	qualified individual under section 21(c) and (d) of the Internal Revenue Code will be deemed 
23.11 	to be the employment related expense paid for that child. The earned income limitation of 
23.12 	section 21(d) of the Internal Revenue Code shall not apply to this deemed amount. These 
23.13 	deemed amounts apply regardless of whether any employment-related expenses have been 
23.14 	paid.
23.15 	(d) If the taxpayer is not required and does not file a federal individual income tax return 
23.16 	for the tax year, no credit is allowed for any amount paid to any person unless:
23.17 	(1) the name, address, and taxpayer identification number of the person are included on 
23.18 	the return claiming the credit; or
23.19 	(2) if the person is an organization described in section 501(c)(3) of the Internal Revenue 
23.20 	Code and exempt from tax under section 501(a) of the Internal Revenue Code, the name 
23.21 	and address of the person are included on the return claiming the credit.
23.22 	In the case of a failure to provide the information required under the preceding sentence, 
23.23 	the preceding sentence does not apply if it is shown that the taxpayer exercised due diligence 
23.24 	in attempting to provide the information required.
23.25 	(e) In the case of a nonresident, part-year resident, or a person who has earned income 
23.26 	not subject to tax under this chapter including earned income excluded pursuant to section 
23.27 	290.0132, subdivision 10, the credit determined under section 21 of the Internal Revenue 
23.28 	Code must be allocated based on the ratio by which the earned income of the claimant and 
23.29 	the claimant's spouse from Minnesota sources bears to the total earned income of the claimant 
23.30 	and the claimant's spouse.
23.31 	(f) For residents of Minnesota, the subtractions for military pay under section 290.0132, 
23.32 	subdivisions 11 and 12, are not considered "earned income not subject to tax under this 
23.33 	chapter."
24.1 	(g) For residents of Minnesota, the exclusion of combat pay under section 112 of the 
24.2 	Internal Revenue Code is not considered "earned income not subject to tax under this 
24.3 	chapter."
24.4 	(h) For taxpayers with federal adjusted gross income in excess of $50,000, the credit is 
24.5 	equal to the lesser of the credit otherwise calculated under this subdivision, or the amount 
24.6 	equal to $600 minus five percent of federal adjusted gross income in excess of $50,000 for 
24.7 	taxpayers with one qualified individual, or $1,200 minus five percent of  federal adjusted 
24.8 	gross income in excess of $50,000 for taxpayers with two or more qualified individuals, 
24.9 	but in no case is the credit less than zero.

24.10 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
24.11 	31, 2016.

24.12 	Sec. 19. Minnesota Statutes 2016, section 290.067, subdivision 2b, is amended to read:
24.13 		Subd. 2b.Inflation adjustment. The commissioner shall adjust the dollar amount of 
24.14 	the income threshold at which the maximum credit begins to be reduced under subdivision 
24.15 	2 1 by the percentage determined pursuant to the provisions of section 1(f) of the Internal 
24.16 	Revenue Code, except that in section 1(f)(3)(B) the word "1999" "2016" shall be substituted 
24.17 	for the word "1992." For 2001 2018, the commissioner shall then determine the percent 
24.18 	change from the 12 months ending on August 31, 1999 2016, to the 12 months ending on 
24.19 	August 31, 2000 2017, and in each subsequent year, from the 12 months ending on August 
24.20 	31, 1999 2016, to the 12 months ending on August 31 of the year preceding the taxable 
24.21 	year. The determination of the commissioner pursuant to this subdivision must not be 
24.22 	considered a "rule" and is not subject to the Administrative Procedure Act contained in 
24.23 	chapter 14. The threshold amount as adjusted must be rounded to the nearest $10 amount. 
24.24 	If the amount ends in $5, the amount is rounded up to the nearest $10 amount.

24.25 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
24.26 	31, 2016.

24.27 	Sec. 20. Minnesota Statutes 2016, section 290.0671, subdivision 1, as amended by Laws 
24.28 	2017, chapter 1, section 6, is amended to read:
24.29 		Subdivision 1.Credit allowed. (a) An individual who is a resident of Minnesota is 
24.30 	allowed a credit against the tax imposed by this chapter equal to a percentage of earned 
24.31 	income. To receive a credit, a taxpayer must be eligible for a credit under section 32 of the 
24.32 	Internal Revenue Code, except that a taxpayer with no qualifying children who has attained 
25.1 	the age of 21, but not attained age 65 before the close of the taxable year and is otherwise 
25.2 	eligible for a credit under section 32 of the Internal Revenue Code may also receive a credit.
25.3 	(b) For individuals with no qualifying children, the credit equals 2.10 percent of the first 
25.4 	$6,180 of earned income. The credit is reduced by 2.01 percent of earned income or adjusted 
25.5 	gross income, whichever is greater, in excess of $8,130, but in no case is the credit less than 
25.6 	zero.
25.7 	(c) For individuals with one qualifying child, the credit equals 9.35 percent of the first 
25.8 	$11,120 of earned income. The credit is reduced by 6.02 percent of earned income or adjusted 
25.9 	gross income, whichever is greater, in excess of $21,190, but in no case is the credit less 
25.10 	than zero.
25.11 	(d) For individuals with two or more qualifying children, the credit equals 11 percent 
25.12 	of the first $18,240 of earned income. The credit is reduced by 10.82 percent of earned 
25.13 	income or adjusted gross income, whichever is greater, in excess of $25,130, but in no case 
25.14 	is the credit less than zero.
25.15 	(e) For a part-year resident, the credit must be allocated based on the percentage calculated 
25.16 	under section 290.06, subdivision 2c, paragraph (e).
25.17 	(f) For a person who was a resident for the entire tax year and has earned income not 
25.18 	subject to tax under this chapter, including income excluded under section 290.0132, 
25.19 	subdivision 10, the credit must be allocated based on the ratio of federal adjusted gross 
25.20 	income reduced by the earned income not subject to tax under this chapter over federal 
25.21 	adjusted gross income. For purposes of this paragraph, the following clauses are not 
25.22 	considered "earned income not subject to tax under this chapter":
25.23 	(1) the subtractions for military pay under section 290.0132, subdivisions 11 and 12, 
25.24 	are not considered "earned income not subject to tax under this chapter."For the purposes 
25.25 	of this paragraph,;
25.26 	(2) the exclusion of combat pay under section 112 of the Internal Revenue Code is not 
25.27 	considered "earned income not subject to tax under this chapter."; and
25.28 	(3) income derived from an Indian reservation by an enrolled member of the reservation 
25.29 	while living on the reservation.
25.30 	(g) For tax years beginning after December 31, 2013, the $8,130 in paragraph (b), the 
25.31 	$21,190 in paragraph (c), and the $25,130 in paragraph (d), after being adjusted for inflation 
25.32 	under subdivision 7, are each increased by $5,000 for married taxpayers filing joint returns. 
25.33 	For tax years beginning after December 31, 2013, the commissioner shall annually adjust 
26.1 	the $5,000 by the percentage determined pursuant to the provisions of section 1(f) of the 
26.2 	Internal Revenue Code, except that in section 1(f)(3)(B), the word "2008" shall be substituted 
26.3 	for the word "1992." For 2014, the commissioner shall then determine the percent change 
26.4 	from the 12 months ending on August 31, 2008, to the 12 months ending on August 31, 
26.5 	2013, and in each subsequent year, from the 12 months ending on August 31, 2008, to the 
26.6 	12 months ending on August 31 of the year preceding the taxable year. The earned income 
26.7 	thresholds as adjusted for inflation must be rounded to the nearest $10. If the amount ends 
26.8 	in $5, the amount is rounded up to the nearest $10. The determination of the commissioner 
26.9 	under this subdivision is not a rule under the Administrative Procedure Act.
26.10 	(h) The commissioner shall construct tables showing the amount of the credit at various 
26.11 	income levels and make them available to taxpayers. The tables shall follow the schedule 
26.12 	contained in this subdivision, except that the commissioner may graduate the transition 
26.13 	between income brackets.

26.14 	EFFECTIVE DATE. The amendment to paragraph (a) is effective for taxable years 
26.15 	beginning after December 31, 2018. The amendment to paragraph (f) is effective for taxable 
26.16 	years beginning after December 31, 2016.

26.17 	Sec. 21. Minnesota Statutes 2016, section 290.0674, subdivision 2, is amended to read:
26.18 		Subd. 2.Limitations. (a) For claimants with income not greater than $33,500, the 
26.19 	maximum credit allowed for a family is $1,000 multiplied by the number of qualifying 
26.20 	children in kindergarten through grade 12 in the family. The maximum credit for families 
26.21 	with one qualifying child in kindergarten through grade 12 is reduced by $1 for each $4 of 
26.22 	household income over $33,500, and the maximum credit for families with two or more 
26.23 	qualifying children in kindergarten through grade 12 is reduced by $2 for each $4 of 
26.24 	household income over $33,500, but in no case is the credit less than zero.
26.25 	For purposes of this section "income" has the meaning given in section 290.067, 
26.26 	subdivision 2a. In the case of a married claimant, a credit is not allowed unless a joint income 
26.27 	tax return is filed.
26.28 	(b) For a nonresident or part-year resident, the credit determined under subdivision 1 
26.29 	and the maximum credit amount in paragraph (a) must be allocated using the percentage 
26.30 	calculated in section 290.06, subdivision 2c, paragraph (e).

26.31 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
26.32 	31, 2016.

27.1 	Sec. 22. Minnesota Statutes 2016, section 290.0674, is amended by adding a subdivision 
27.2 	to read:
27.3 		Subd. 2a.Income. (a) For purposes of this section, "income" means the sum of the 
27.4 	following:
27.5 	(1) federal adjusted gross income as defined in section 62 of the Internal Revenue Code; 
27.6 	and
27.7 	(2) the sum of the following amounts to the extent not included in clause (1):
27.8 	(i) all nontaxable income;
27.9 	(ii) the amount of a passive activity loss that is not disallowed as a result of section 469, 
27.10 	paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss 
27.11 	carryover allowed under section 469(b) of the Internal Revenue Code;
27.12 	(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a 
27.13 	solvent individual excluded from gross income under section 108(g) of the Internal Revenue 
27.14 	Code;
27.15 	(iv) cash public assistance and relief;
27.16 	(v) any pension or annuity (including railroad retirement benefits, all payments received 
27.17 	under the federal Social Security Act, Supplemental Security Income, and veterans benefits), 
27.18 	which was not exclusively funded by the claimant or spouse, or which was funded exclusively 
27.19 	by the claimant or spouse and which funding payments were excluded from federal adjusted 
27.20 	gross income in the years when the payments were made;
27.21 	(vi) interest received from the federal or a state government or any instrumentality or 
27.22 	political subdivision thereof;
27.23 	(vii) workers' compensation;
27.24 	(viii) nontaxable strike benefits;
27.25 	(ix) the gross amounts of payments received in the nature of disability income or sick 
27.26 	pay as a result of accident, sickness, or other disability, whether funded through insurance 
27.27 	or otherwise;
27.28 	(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of 
27.29 	1986, as amended through December 31, 1995;
27.30 	(xi) contributions made by the claimant to an individual retirement account, including 
27.31 	a qualified voluntary employee contribution; simplified employee pension plan; 
28.1 	self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of 
28.2 	the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal 
28.3 	Revenue Code;
28.4 	(xii) nontaxable scholarship or fellowship grants;
28.5 	(xiii) the amount of deduction allowed under section 199 of the Internal Revenue Code;
28.6 	(xiv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue 
28.7 	Code;
28.8 	(xv) the amount deducted for tuition expenses under section 222 of the Internal Revenue 
28.9 	Code; and
28.10 	(xvi) the amount deducted for certain expenses of elementary and secondary school 
28.11 	teachers under section 62(a)(2)(D) of the Internal Revenue Code.
28.12 	In the case of an individual who files an income tax return on a fiscal year basis, the 
28.13 	term "federal adjusted gross income" means federal adjusted gross income reflected in the 
28.14 	fiscal year ending in the next calendar year. Federal adjusted gross income may not be 
28.15 	reduced by the amount of a net operating loss carryback or carryforward or a capital loss 
28.16 	carryback or carryforward allowed for the year.
28.17 	(b) "Income" does not include:
28.18 	(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
28.19 	(2) amounts of any pension or annuity that were exclusively funded by the claimant or 
28.20 	spouse if the funding payments were not excluded from federal adjusted gross income in 
28.21 	the years when the payments were made;
28.22 	(3) surplus food or other relief in kind supplied by a governmental agency;
28.23 	(4) relief granted under chapter 290A;
28.24 	(5) child support payments received under a temporary or final decree of dissolution or 
28.25 	legal separation; and
28.26 	(6) restitution payments received by eligible individuals and excludable interest as 
28.27 	defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001, 
28.28 	Public Law 107-16.

29.1 	Sec. 23. Minnesota Statutes 2016, section 290.068, subdivision 1, is amended to read:
29.2 		Subdivision 1.Credit allowed. A corporation, partners in a partnership, or shareholders 
29.3 	in a corporation treated as an "S" corporation under section 290.9725 are allowed a credit 
29.4 	against the tax computed under this chapter for the taxable year equal to:
29.5 	(a) ten percent of the first $2,000,000 of the excess (if any) of
29.6 	(1) the qualified research expenses for the taxable year, over
29.7 	(2) the base amount; and
29.8 	(b) 2.5 four percent on all of such excess expenses over $2,000,000.

29.9 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
29.10 	31, 2016.

29.11 	Sec. 24. [290.0682] STUDENT LOAN CREDIT.
29.12 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
29.13 	the meanings given.
29.14 	(b) "Adjusted gross income" means federal adjusted gross income as defined in section 
29.15 	62 of the Internal Revenue Code.
29.16 	(c) "Earned income" has the meaning given in section 32(c) of the Internal Revenue 
29.17 	Code.
29.18 	(d) "Eligible individual" means a resident individual with one or more qualified education 
29.19 	loans related to an undergraduate or graduate degree program at a postsecondary educational 
29.20 	institution.
29.21 	(e) "Eligible loan payments" means the amount the eligible individual paid during the 
29.22 	taxable year in principal and interest on qualified education loans.
29.23 	(f) "Postsecondary educational institution" means a public or nonprofit postsecondary 
29.24 	institution eligible for state student aid under section 136A.103 or, if the institution is not 
29.25 	located in this state, a public or nonprofit postsecondary institution participating in the 
29.26 	federal Pell Grant program under title IV of the Higher Education Act of 1965, Public Law 
29.27 	89-329, as amended.
29.28 	(g) "Qualified education loan" has the meaning given in section 221 of the Internal 
29.29 	Revenue Code, but is limited to indebtedness incurred on behalf of the eligible individual.
29.30 		Subd. 2.Credit allowed. (a) An eligible individual is allowed a credit against the tax 
29.31 	due under this chapter.
30.1 	(b) The credit for an eligible individual equals the least of:
30.2 	(1) eligible loan payments minus ten percent of an amount equal to adjusted gross income 
30.3 	in excess of $10,000, but in no case less than zero;
30.4 	(2) the earned income for the taxable year of the eligible individual, if any;
30.5 	(3) the sum of:
30.6 	(i) the interest portion of eligible loan payments made during the taxable year; and
30.7 	(ii) ten percent of the original loan amount of all qualified education loans of the eligible 
30.8 	individual; or
30.9 	(4) $500.
30.10 	(c) For a part-year resident, the credit must be allocated based on the percentage calculated 
30.11 	under section 290.06, subdivision 2c, paragraph (e).
30.12 	(d) In the case of a married couple, each spouse is eligible for the credit in this section.

30.13 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
30.14 	31, 2016.

30.15 	Sec. 25. [290.0684] SECTION 529 PLAN CREDIT.
30.16 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
30.17 	the meanings given them.
30.18 	(b) "Contribution" means the amount contributed to one or more qualified accounts 
30.19 	except that the amount:
30.20 	(1) is reduced by any withdrawals or distributions, other than transfers or rollovers to 
30.21 	another qualified account, from a qualified account during the taxable year; and
30.22 	(2) excludes the amount of any transfers or rollovers from a qualified account made 
30.23 	during the taxable year.
30.24 	(c) "Federal adjusted gross income" has the meaning given under section 62(a) of the 
30.25 	Internal Revenue Code.
30.26 	(d) "Qualified account" means an account qualifying under section 529 of the Internal 
30.27 	Revenue Code.
30.28 	(e) "Qualified higher education expenses" has the meaning given in section 529 of the 
30.29 	Internal Revenue Code.
31.1 		Subd. 2.Credit allowed. (a) An individual who is a resident of Minnesota is allowed a 
31.2 	credit against the tax imposed by this chapter. The credit is not allowed to an individual 
31.3 	who is eligible to be claimed as a dependent, as defined in sections 151 and 152 of the 
31.4 	Internal Revenue Code. The credit may not exceed the liability for tax under this chapter.
31.5 	(b) The amount of the credit allowed equals 50 percent of contributions for the taxable 
31.6 	year. The maximum credit is $500, subject to the phaseout in paragraphs (c) and (d). In no 
31.7 	case is the credit less than zero.
31.8 	(c) For individual filers, the maximum credit is reduced by two percent of adjusted gross 
31.9 	income in excess of $75,000.
31.10 	(d) For married couples filing a joint return, the maximum credit is phased out as follows:
31.11 	(1) for married couples with adjusted gross income in excess of $75,000, but not more 
31.12 	than $100,000, the maximum credit is reduced by one percent of adjusted gross income in 
31.13 	excess of $75,000;
31.14 	(2) for married couples with adjusted gross income in excess of $100,000, but not more 
31.15 	than $135,000, the maximum credit is $250; and
31.16 	(3) for married couples with adjusted gross income in excess of $135,000, the maximum 
31.17 	credit is $250, reduced by one percent of adjusted gross income in excess of $135,000.
31.18 	(e) The income thresholds in paragraphs (c) and (d) used to calculate the maximum 
31.19 	credit must be adjusted for inflation. The commissioner shall adjust the income thresholds 
31.20 	by the percentage determined under the provisions of section 1(f) of the Internal Revenue 
31.21 	Code, except that in section 1(f)(3)(B) the word "2016" is substituted for the word "1992." 
31.22 	For 2018, the commissioner shall then determine the percent change from the 12 months 
31.23 	ending on August 31, 2016, to the 12 months ending on August 31, 2017, and in each 
31.24 	subsequent year, from the 12 months ending on August 31, 2016, to the 12 months ending 
31.25 	on August 31 of the year preceding the taxable year. The income thresholds as adjusted for 
31.26 	inflation must be rounded to the nearest $10 amount. If the amount ends in $5, the amount 
31.27 	is rounded up to the nearest $10 amount. The determination of the commissioner under this 
31.28 	subdivision is not subject to chapter 14, including section 14.386.
31.29 		Subd. 3.Allocation. For a part-year resident, the credit must be allocated based on the 
31.30 	percentage calculated under section 290.06, subdivision 2c, paragraph (e).

31.31 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
31.32 	31, 2016.

32.1 	Sec. 26. [290.0686] CREDIT FOR ATTAINING MASTER'S DEGREE IN 
32.2 	TEACHER'S LICENSURE FIELD.
32.3 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
32.4 	the meanings given them.
32.5 	(b) "Master's degree program" means a graduate-level program at an accredited university 
32.6 	leading to a master of arts or science degree in a core content area directly related to a 
32.7 	qualified teacher's licensure field. The master's degree program may not include pedagogy 
32.8 	or a pedagogy component. To be eligible under this credit, a licensed elementary school 
32.9 	teacher must pursue and complete a master's degree program in a core content area in which 
32.10 	the teacher provides direct classroom instruction.
32.11 	(c) "Qualified teacher" means a person who:
32.12 	(1) holds a teaching license issued by the licensing division in the Department of 
32.13 	Education on behalf of the Minnesota Board of Teaching both when the teacher begins the 
32.14 	master's degree program and when the teacher completes the master's degree program;
32.15 	(2) began a master's degree program after June 30, 2017; and
32.16 	(3) completes the master's degree program during the taxable year.
32.17 	(d) "Core content area" means the academic subject of reading, English or language arts, 
32.18 	mathematics, science, foreign languages, civics and government, economics, arts, history, 
32.19 	or geography.
32.20 		Subd. 2.Credit allowed. (a) An individual who is a qualified teacher is allowed a credit 
32.21 	against the tax imposed under this chapter. The credit equals the lesser of $2,500 or the 
32.22 	amount the individual paid for tuition, fees, books, and instructional materials necessary to 
32.23 	completing the master's degree program and for which the individual did not receive 
32.24 	reimbursement from an employer or scholarship.
32.25 	(b) For a nonresident or a part-year resident, the credit under this subdivision must be 
32.26 	allocated based on the percentage calculated under section 290.06, subdivision 2c, paragraph 
32.27 	(e).
32.28 	(c) A qualified teacher may claim the credit in this section only one time for each master's 
32.29 	degree program completed in a core content area.

32.30 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
32.31 	31, 2016.

33.1 	Sec. 27. Minnesota Statutes 2016, section 290.0692, is amended by adding a subdivision 
33.2 	to read:
33.3 		Subd. 6.Sunset. This section expires at the same time and on the same terms as section 
33.4 	116J.8737, except that the expiration of this section does not affect the commissioner of 
33.5 	revenue's authority to audit or power of examination and assessment for credits claimed 
33.6 	under this section.

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

33.8 	Sec. 28. Minnesota Statutes 2016, section 290.081, is amended to read:
33.9 	290.081 INCOME OF NONRESIDENTS, RECIPROCITY.
33.10 	(a) The compensation received for the performance of personal or professional services 
33.11 	within this state by an individual whose residence, place of abode, and place customarily 
33.12 	returned to at least once a month is in another state, shall be excluded from gross income 
33.13 	to the extent such compensation is subject to an income tax imposed by the state of residence; 
33.14 	provided that such state allows a similar exclusion of compensation received by residents 
33.15 	of Minnesota for services performed therein.
33.16 	(b) When it is deemed to be in the best interests of the people of this state, the 
33.17 	commissioner may determine that the provisions of paragraph (a) shall not apply. As long 
33.18 	as the provisions of paragraph (a) apply between Minnesota and Wisconsin, the provisions 
33.19 	of paragraph (a) shall apply to any individual who is domiciled in Wisconsin.
33.20 	(c) For the purposes of paragraph (a), whenever the Wisconsin tax on Minnesota residents 
33.21 	which would have been paid Wisconsin without paragraph (a) exceeds the Minnesota tax 
33.22 	on Wisconsin residents which would have been paid Minnesota without paragraph (a), or 
33.23 	vice versa, then the state with the net revenue loss resulting from calculated under paragraph 
33.24 	(a) (e) shall receive from the other state the amount of such loss. This provision shall be 
33.25 	effective for all years beginning after December 31, 1972. The data used for computing the 
33.26 	loss to either state shall be determined on or before September 30 of the year following the 
33.27 	close of the previous calendar year.
33.28 	(d)(1) Interest is payable on all amounts calculated under paragraph (c) relating to taxable 
33.29 	years beginning after December 31, 2000. Interest accrues from July 1 of the taxable year.
33.30 	Payments for amounts calculated under paragraph (c) must equal one-quarter of the estimated 
33.31 	annual amount and must be paid at the midpoint of each quarter, on February 15, May 15, 
33.32 	August 15, and November 15.
34.1 	(2) (e)(1) The commissioner of revenue is authorized to enter into agreements with the 
34.2 	state of Wisconsin specifying the reciprocity payment due dates, conditions constituting 
34.3 	delinquency, interest rates, and a method for computing interest due.
34.4 	(3) (2) For agreements entered into before October 1, 2014 August 1, 2018, the annual 
34.5 	compensation required under paragraph (c) must equal at least the net revenue loss minus 
34.6 	$1,000,000 up to $3,000,000 per fiscal year.
34.7 	(4) For agreements entered into after September 30, 2014, the annual compensation 
34.8 	required under paragraph (c) must equal the net revenue loss per fiscal year.
34.9 	(5) (3) For the purposes of clauses (3) and (4) this section, "net revenue loss" means the 
34.10 	difference between the amount of Minnesota income taxes Minnesota forgoes by not taxing 
34.11 	Wisconsin residents on income subject to reciprocity and the credit Minnesota would have 
34.12 	been required to give under section 290.06, subdivision 22, to Minnesota residents working 
34.13 	in Wisconsin had there not been reciprocity.
34.14 	(4) All agreements must include provisions:
34.15 	(i) providing for a suspension of the agreement if one party to the agreement does not 
34.16 	pay in full by a time prescribed in the agreement;
34.17 	(ii) setting the interest rate that will be applied, and that interest shall run from the date 
34.18 	the payment is due until the day the payment is made, except that interest from the 
34.19 	reconciliation payments runs from July 1 of the tax year until paid;
34.20 	(iii) stating a time for annual reconciliation must be completed by October 31 of the 
34.21 	year following the tax year, and the time for payment of any amounts to be completed by 
34.22 	no later than December 1 of the year following the tax year;
34.23 	(iv) requiring the parties to jointly conduct updated benchmark studies every five years 
34.24 	beginning tax year 2018;
34.25 	(v) requiring each party to the agreement to require taxpayers who request exemption 
34.26 	from withholding in the state where they work to make an annual application and that a list 
34.27 	of participants will be exchanged annually; and
34.28 	(vi) the sum of the amount of the quarterly payments must be a reasonable estimate of 
34.29 	the revenue loss as defined in item (iii).
34.30 	(e)(f) If an agreement cannot be reached as to the amount of the loss, the commissioner 
34.31 	of revenue and the taxing official of the state of Wisconsin shall each appoint a member of 
34.32 	a board of arbitration and these members shall appoint the third member of the board. The 
35.1 	board shall select one of its members as chair. Such board may administer oaths, take 
35.2 	testimony, subpoena witnesses, and require their attendance, require the production of books, 
35.3 	papers and documents, and hold hearings at such places as are deemed necessary. The board 
35.4 	shall then make a determination as to the amount to be paid the other state which 
35.5 	determination shall be final and conclusive.
35.6 	(f) (g) The commissioner may furnish copies of returns, reports, or other information to 
35.7 	the taxing official of the state of Wisconsin, a member of the board of arbitration, or a 
35.8 	consultant under joint contract with the states of Minnesota and Wisconsin for the purpose 
35.9 	of making a determination as to the amount to be paid the other state under the provisions 
35.10 	of this section. Prior to the release of any information under the provisions of this section, 
35.11 	the person to whom the information is to be released shall sign an agreement which provides 
35.12 	that the person will protect the confidentiality of the returns and information revealed thereby 
35.13 	to the extent that it is protected under the laws of the state of Minnesota.

35.14 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
35.15 	31, 2017.

35.16 	Sec. 29. Minnesota Statutes 2016, section 290.091, subdivision 2, as amended by Laws 
35.17 	2017, chapter 40, article 1, section 100, is amended to read:
35.18 		Subd. 2.Definitions. For purposes of the tax imposed by this section, the following 
35.19 	terms have the meanings given:
35.20 	(a) "Alternative minimum taxable income" means the sum of the following for the taxable 
35.21 	year:
35.22 	(1) the taxpayer's federal alternative minimum taxable income as defined in section 
35.23 	55(b)(2) of the Internal Revenue Code;
35.24 	(2) the taxpayer's itemized deductions allowed in computing federal alternative minimum 
35.25 	taxable income, but excluding:
35.26 	(i) the charitable contribution deduction under section 170 of the Internal Revenue Code;
35.27 	(ii) the medical expense deduction;
35.28 	(iii) the casualty, theft, and disaster loss deduction; and
35.29 	(iv) the impairment-related work expenses of a disabled person;
35.30 	(3) for depletion allowances computed under section 613A(c) of the Internal Revenue 
35.31 	Code, with respect to each property (as defined in section 614 of the Internal Revenue Code), 
35.32 	to the extent not included in federal alternative minimum taxable income, the excess of the 
36.1 	deduction for depletion allowable under section 611 of the Internal Revenue Code for the 
36.2 	taxable year over the adjusted basis of the property at the end of the taxable year (determined 
36.3 	without regard to the depletion deduction for the taxable year);
36.4 	(4) to the extent not included in federal alternative minimum taxable income, the amount 
36.5 	of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal Revenue 
36.6 	Code determined without regard to subparagraph (E);
36.7 	(5) to the extent not included in federal alternative minimum taxable income, the amount 
36.8 	of interest income as provided by section 290.0131, subdivision 2; and
36.9 	(6) the amount of addition required by section 290.0131, subdivisions 9 to 11;
36.10 	less the sum of the amounts determined under the following:
36.11 	(i) interest income as defined in section 290.0132, subdivision 2;
36.12 	(ii) an overpayment of state income tax as provided by section 290.0132, subdivision 
36.13 	3, to the extent included in federal alternative minimum taxable income;
36.14 	(iii) the amount of investment interest paid or accrued within the taxable year on 
36.15 	indebtedness to the extent that the amount does not exceed net investment income, as defined 
36.16 	in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts deducted 
36.17 	in computing federal adjusted gross income;
36.18 	(iv) amounts subtracted from federal taxable income as provided by section 290.0132, 
36.19 	subdivisions 7, 9 to 15, 17, and 21, 24, and 26; and
36.20 	(v) the amount of the net operating loss allowed under section 290.095, subdivision 11, 
36.21 	paragraph (c).
36.22 	In the case of an estate or trust, alternative minimum taxable income must be computed 
36.23 	as provided in section 59(c) of the Internal Revenue Code.
36.24 	(b) "Investment interest" means investment interest as defined in section 163(d)(3) of 
36.25 	the Internal Revenue Code.
36.26 	(c) "Net minimum tax" means the minimum tax imposed by this section.
36.27 	(d) "Regular tax" means the tax that would be imposed under this chapter (without regard 
36.28 	to this section and section 290.032), reduced by the sum of the nonrefundable credits allowed 
36.29 	under this chapter.
36.30 	(e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable income 
36.31 	after subtracting the exemption amount determined under subdivision 3.

37.1 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
37.2 	31, 2016.

37.3 	Sec. 30. Minnesota Statutes 2016, section 290.17, subdivision 4, is amended to read:
37.4 		Subd. 4.Unitary business principle. (a) If a trade or business conducted wholly within 
37.5 	this state or partly within and partly without this state is part of a unitary business, the entire 
37.6 	income of the unitary business is subject to apportionment pursuant to section 290.191. 
37.7 	Notwithstanding subdivision 2, paragraph (c), none of the income of a unitary business is 
37.8 	considered to be derived from any particular source and none may be allocated to a particular 
37.9 	place except as provided by the applicable apportionment formula. The provisions of this 
37.10 	subdivision do not apply to business income subject to subdivision 5, income of an insurance 
37.11 	company, or income of an investment company determined under section 290.36.
37.12 	(b) The term "unitary business" means business activities or operations which result in 
37.13 	a flow of value between them. The term may be applied within a single legal entity or 
37.14 	between multiple entities and without regard to whether each entity is a sole proprietorship, 
37.15 	a corporation, a partnership or a trust.
37.16 	(c) Unity is presumed whenever there is unity of ownership, operation, and use, evidenced 
37.17 	by centralized management or executive force, centralized purchasing, advertising, 
37.18 	accounting, or other controlled interaction, but the absence of these centralized activities 
37.19 	will not necessarily evidence a nonunitary business. Unity is also presumed when business 
37.20 	activities or operations are of mutual benefit, dependent upon or contributory to one another, 
37.21 	either individually or as a group.
37.22 	(d) Where a business operation conducted in Minnesota is owned by a business entity 
37.23 	that carries on business activity outside the state different in kind from that conducted within 
37.24 	this state, and the other business is conducted entirely outside the state, it is presumed that 
37.25 	the two business operations are unitary in nature, interrelated, connected, and interdependent 
37.26 	unless it can be shown to the contrary.
37.27 	(e) Unity of ownership does not exist when two or more corporations are involved unless 
37.28 	more than 50 percent of the voting stock of each corporation is directly or indirectly owned 
37.29 	by a common owner or by common owners, either corporate or noncorporate, or by one or 
37.30 	more of the member corporations of the group. For this purpose, the term "voting stock" 
37.31 	shall include membership interests of mutual insurance holding companies formed under 
37.32 	section 66A.40.
38.1 	(f) The net income and apportionment factors under section 290.191 or 290.20 of foreign 
38.2 	corporations and other foreign entities which are part of a unitary business shall not be 
38.3 	included in the net income or the apportionment factors of the unitary business; except that 
38.4 	the income and apportionment factors of a foreign entity, other than an entity treated as a 
38.5 	C corporation for federal income tax purposes, that are included in the federal taxable 
38.6 	income, as defined in section 63 of the Internal Revenue Code as amended through the date 
38.7 	named in section 290.01, subdivision 19, of a domestic corporation, domestic entity, or 
38.8 	individual must be included in determining net income and the factors to be used in the 
38.9 	apportionment of net income pursuant to section 290.191 or 290.20. A foreign corporation 
38.10 	or other foreign entity which is not included on a combined report and which is required to 
38.11 	file a return under this chapter shall file on a separate return basis.
38.12 	(g) For purposes of determining the net income of a unitary business and the factors to 
38.13 	be used in the apportionment of net income pursuant to section 290.191 or 290.20, there 
38.14 	must be included only the income and apportionment factors of domestic corporations or 
38.15 	other domestic entities that are determined to be part of the unitary business pursuant to this 
38.16 	subdivision, notwithstanding that foreign corporations or other foreign entities might be 
38.17 	included in the unitary business; except that the income and apportionment factors of a 
38.18 	foreign entity, other than an entity treated as a C corporation for federal income tax purposes, 
38.19 	that is included in the federal taxable income, as defined in section 63 of the Internal Revenue 
38.20 	Code as amended through the date named in section 290.01, subdivision 19, of a domestic 
38.21 	corporation, domestic entity, or individual must be included in determining net income and 
38.22 	the factors to be used in the apportionment of net income pursuant to section 290.191 or 
38.23 	290.20.
38.24 	(h) Each corporation or other entity, except a sole proprietorship, that is part of a unitary 
38.25 	business must file combined reports as the commissioner determines. On the reports, all 
38.26 	intercompany transactions between entities included pursuant to paragraph (g) must be 
38.27 	eliminated and the entire net income of the unitary business determined in accordance with 
38.28 	this subdivision is apportioned among the entities by using each entity's Minnesota factors 
38.29 	for apportionment purposes in the numerators of the apportionment formula and the total 
38.30 	factors for apportionment purposes of all entities included pursuant to paragraph (g) in the 
38.31 	denominators of the apportionment formula. Except as otherwise provided by paragraph 
38.32 	(f), all sales of the unitary business made within this state pursuant to section 290.191 or 
38.33 	290.20 must be included on the combined report of a corporation or other entity that is a 
38.34 	member of the unitary business and is subject to the jurisdiction of this state to impose tax 
38.35 	under this chapter.
39.1 	(i) If a corporation has been divested from a unitary business and is included in a 
39.2 	combined report for a fractional part of the common accounting period of the combined 
39.3 	report:
39.4 	(1) its income includable in the combined report is its income incurred for that part of 
39.5 	the year determined by proration or separate accounting; and
39.6 	(2) its sales, property, and payroll included in the apportionment formula must be prorated 
39.7 	or accounted for separately.
39.8 	(j) For purposes of this subdivision, "insurance company" means an insurance company, 
39.9 	as defined in section 290.01, subdivision 5b, that is:
39.10 	(1) licensed to engage in the business of insurance in Minnesota pursuant to chapter 
39.11 	60A; or
39.12 	(2) domiciled and licensed to engage in the business of insurance in another state or 
39.13 	country that imposes retaliatory taxes, fines, deposits, penalties, licenses, or fees and that 
39.14 	does not grant, on a reciprocal basis, exemption from such retaliatory taxes to insurance 
39.15 	companies or their agents domiciled in Minnesota.
39.16 	(k) For purposes of this subdivision, "retaliatory taxes" means taxes imposed on insurance 
39.17 	companies organized in another state or country that result from the fact that an insurance 
39.18 	company organized in the taxing jurisdiction and doing business in the other jurisdiction is 
39.19 	subject to taxes, fines, deposits, penalties, licenses, or fees in an amount exceeding that 
39.20 	imposed by the taxing jurisdiction upon an insurance company organized in the other state 
39.21 	or country and doing business to the same extent in the taxing jurisdiction.

39.22 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
39.23 	31, 2016.

39.24 	Sec. 31. Minnesota Statutes 2016, section 290A.03, subdivision 13, is amended to read:
39.25 		Subd. 13.Property taxes payable. "Property taxes payable" means the property tax 
39.26 	exclusive of special assessments, penalties, and interest payable on a claimant's homestead 
39.27 	after deductions made under sections 273.135, 273.1384, 273.1391, 273.42, subdivision 2, 
39.28 	and any other state paid property tax credits in any calendar year, and after any refund 
39.29 	claimed and allowable under section 290A.04, subdivision 2h, that is first payable in the 
39.30 	year that the property tax is payable. In the case of a claimant who makes ground lease 
39.31 	payments, "property taxes payable" includes the amount of the payments directly attributable 
39.32 	to the property taxes assessed against the parcel on which the house is located. No 
39.33 	apportionment or reduction of the "property taxes payable" shall be required for the use of 
40.1 	a portion of the claimant's homestead for a business purpose if the claimant does not deduct 
40.2 	any business depreciation expenses for the use of a portion of the homestead in the 
40.3 	determination of federal adjusted gross income. Regardless of the limitations in section 
40.4 	280A(c)(5) of the Internal Revenue Code, "property taxes payable" must be apportioned or 
40.5 	reduced for the use of a portion of the claimant's homestead for a business purpose if the 
40.6 	claimant deducts any business depreciation expenses for the use of a portion of the homestead 
40.7 	or deducts expenses under section 280A of the Internal Revenue Code for a business operated 
40.8 	in the claimant's homestead. For homesteads which are manufactured homes as defined in 
40.9 	section 273.125, subdivision 8, and for homesteads which are park trailers taxed as 
40.10 	manufactured homes under section 168.012, subdivision 9, "property taxes payable" shall 
40.11 	also include 17 percent of the gross rent paid in the preceding year for the site on which the 
40.12 	homestead is located. When a homestead is owned by two or more persons as joint tenants 
40.13 	or tenants in common, such tenants shall determine between them which tenant may claim 
40.14 	the property taxes payable on the homestead. If they are unable to agree, the matter shall 
40.15 	be referred to the commissioner of revenue whose decision shall be final. Property taxes 
40.16 	are considered payable in the year prescribed by law for payment of the taxes.
40.17 	In the case of a claim relating to "property taxes payable," the claimant must have owned 
40.18 	and occupied the homestead on January 2 of the year in which the tax is payable and (i) the 
40.19 	property must have been classified as homestead property pursuant to section 273.124, on 
40.20 	or before December 15 of the assessment year to which the "property taxes payable" relate; 
40.21 	or (ii) the claimant must provide documentation from the local assessor that application for 
40.22 	homestead classification has been made on or before December 15 of the year in which the 
40.23 	"property taxes payable" were payable and that the assessor has approved the application.

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

40.26 	Sec. 32. Minnesota Statutes 2016, section 291.005, subdivision 1, as amended by Laws 
40.27 	2017, chapter 1, section 8, is amended to read:
40.28 		Subdivision 1.Scope. Unless the context otherwise clearly requires, the following terms 
40.29 	used in this chapter shall have the following meanings:
40.30 	(1) "Commissioner" means the commissioner of revenue or any person to whom the 
40.31 	commissioner has delegated functions under this chapter.
40.32 	(2) "Federal gross estate" means the gross estate of a decedent as required to be valued 
40.33 	and otherwise determined for federal estate tax purposes under the Internal Revenue Code, 
40.34 	increased by the value of any property in which the decedent had a qualifying income interest 
41.1 	for life and for which an election was made under section 291.03, subdivision 1d, for 
41.2 	Minnesota estate tax purposes, but was not made for federal estate tax purposes.
41.3 	(3) "Internal Revenue Code" means the United States Internal Revenue Code of 1986, 
41.4 	as amended through December 16, 2016.
41.5 	(4) "Minnesota gross estate" means the federal gross estate of a decedent after (a) 
41.6 	excluding therefrom any property included in the estate which has its situs outside Minnesota, 
41.7 	and (b) including any property omitted from the federal gross estate which is includable in 
41.8 	the estate, has its situs in Minnesota, and was not disclosed to federal taxing authorities.
41.9 	(5) "Nonresident decedent" means an individual whose domicile at the time of death 
41.10 	was not in Minnesota.
41.11 	(6) "Personal representative" means the executor, administrator or other person appointed 
41.12 	by the court to administer and dispose of the property of the decedent. If there is no executor, 
41.13 	administrator or other person appointed, qualified, and acting within this state, then any 
41.14 	person in actual or constructive possession of any property having a situs in this state which 
41.15 	is included in the federal gross estate of the decedent shall be deemed to be a personal 
41.16 	representative to the extent of the property and the Minnesota estate tax due with respect 
41.17 	to the property.
41.18 	(7) "Resident decedent" means an individual whose domicile at the time of death was 
41.19 	in Minnesota. The provisions of section 290.01, subdivision 7, paragraphs (c) and (d), apply 
41.20 	to determinations of domicile under this chapter.
41.21 	(8) "Situs of property" means, with respect to:
41.22 	(i) real property, the state or country in which it is located;
41.23 	(ii) tangible personal property, the state or country in which it was normally kept or 
41.24 	located at the time of the decedent's death or for a gift of tangible personal property within 
41.25 	three years of death, the state or country in which it was normally kept or located when the 
41.26 	gift was executed;
41.27 	(iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue 
41.28 	Code, owned by a nonresident decedent and that is normally kept or located in this state 
41.29 	because it is on loan to an organization, qualifying as exempt from taxation under section 
41.30 	501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is 
41.31 	deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and
42.1 	(iv) intangible personal property, the state or country in which the decedent was domiciled 
42.2 	at death or for a gift of intangible personal property within three years of death, the state or 
42.3 	country in which the decedent was domiciled when the gift was executed.
42.4 	For a nonresident decedent with an ownership interest in a pass-through entity with 
42.5 	assets that include real or tangible personal property, situs of the real or tangible personal 
42.6 	property, including qualified works of art, is determined as if the pass-through entity does 
42.7 	not exist and the real or tangible personal property is personally owned by the decedent. If 
42.8 	the pass-through entity is owned by a person or persons in addition to the decedent, ownership 
42.9 	of the property is attributed to the decedent in proportion to the decedent's capital ownership 
42.10 	share of the pass-through entity.
42.11 	(9) "Pass-through entity" includes the following:
42.12 	(i) an entity electing S corporation status under section 1362 of the Internal Revenue 
42.13 	Code;
42.14 	(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;
42.15 	(iii) a single-member limited liability company or similar entity, regardless of whether 
42.16 	it is taxed as an association or is disregarded for federal income tax purposes under Code 
42.17 	of Federal Regulations, title 26, section 301.7701-3; or
42.18 	(iv) a trust to the extent the property is includible in the decedent's federal gross estate; 
42.19 	but excludes
42.20 	(v) an entity whose ownership interest securities are traded on an exchange regulated 
42.21 	by the Securities and Exchange Commission as a national securities exchange under section 
42.22 	6 of the Securities Exchange Act, United States Code, title 15, section 78f.

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

42.25 	Sec. 33. Minnesota Statutes 2016, section 291.016, subdivision 3, is amended to read:
42.26 		Subd. 3.Subtraction. (a) For estates of decedents dying after December 31, 2016, a 
42.27 	subtraction is allowed in computing the Minnesota taxable estate, equal to the sum of:
42.28 	(1) the exclusion amount for the year of death under paragraph (b); and
42.29 	(2) the lesser of:
42.30 	(i) the value of qualified small business property under section 291.03, subdivision 9, 
42.31 	and the value of qualified farm property under section 291.03, subdivision 10, or the result 
43.1 	of $5,000,000 minus the amount for the year of death listed in clauses (1) to (5), whichever 
43.2 	is less, may be subtracted in computing the Minnesota taxable estate but must not reduce 
43.3 	the Minnesota taxable estate to less than zero:
43.4 	(1) $1,200,000 for estates of decedents dying in 2014;
43.5 	(2) $1,400,000 for estates of decedents dying in 2015;
43.6 	(3) $1,600,000 for estates of decedents dying in 2016;
43.7 	(4) $1,800,000 for estates of decedents dying in 2017; and
43.8 	(5) $2,000,000 for estates of decedents dying in 2018 and thereafter.; or
43.9 	(ii) $5,000,000 minus the exclusion amount for the year of death under paragraph (b).
43.10 	(b) The following exclusion amounts apply for the year of death:
43.11 	(1) $2,100,000 for decedents dying in 2017;
43.12 	(2) $2,400,000 for decedents dying in 2018;
43.13 	(3) $2,700,000 for decedents dying in 2019; and
43.14 	(4) $3,000,000 for decedents dying in 2020 and thereafter.
43.15 	(c) The subtraction under this subdivision must not reduce the Minnesota taxable estate 
43.16 	to less than zero.

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

43.19 	Sec. 34. Minnesota Statutes 2016, section 291.03, subdivision 1, is amended to read:
43.20 		Subdivision 1.Tax amount. The tax imposed must be computed by applying to the 
43.21 	Minnesota taxable estate the following schedule of rates and then the resulting amount 
43.22 	multiplied by a fraction, not greater than one, the numerator of which is the value of the 
43.23 	Minnesota gross estate plus the value of gifts under section 291.016, subdivision 2, clause 
43.24 	(3), with a Minnesota situs, and the denominator of which is the federal gross estate plus 
43.25 	the value of gifts under section 291.016, subdivision 2, clause (3):
43.26 	(a) For estates of decedents dying in 2014:

43.27	Amount of Minnesota Taxable Estate
	Rate of Tax
	
43.28	Not over $1,200,000
	None
	
43.29	Over $1,200,000 but not over $1,400,000
	nine percent of the excess over $1,200,000
	
43.3043.31	Over $1,400,000 but not over $3,600,000
	$18,000 plus ten percent of the excess over 
$1,400,000
	
44.144.2	Over $3,600,000 but not over $4,100,000
	$238,000 plus 10.4 percent of the excess over 
$3,600,000
	
44.344.4	Over $4,100,000 but not over $5,100,000
	$290,000 plus 11.2 percent of the excess over 
$4,100,000
	
44.544.6	Over $5,100,000 but not over $6,100,000
	$402,000 plus 12 percent of the excess over 
$5,100,000
	
44.744.8	Over $6,100,000 but not over $7,100,000
	$522,000 plus 12.8 percent of the excess over 
$6,100,000
	
44.944.10
	Over $7,100,000 but not over $8,100,000
	$650,000 plus 13.6 percent of the excess over 
$7,100,000
	
44.1144.12	Over $8,100,000 but not over $9,100,000
	$786,000 plus 14.4 percent of the excess over 
$8,100,000
	
44.1344.14	Over $9,100,000 but not over $10,100,000
	$930,000 plus 15.2 percent of the excess over 
$9,100,000
	
44.1544.16	Over $10,100,000
	$1,082,000 plus 16 percent of the excess over 
$10,100,000
	
44.17 	(b) For estates of decedents dying in 2015:

44.18	Amount of Minnesota Taxable Estate
	Rate of Tax
	
44.19	Not over $1,400,000
	None
	
44.20	Over $1,400,000 but not over $3,600,000
	ten percent of the excess over $1,400,000
	
44.2144.22	Over $3,600,000 but not over $6,100,000
	$220,000 plus 12 percent of the excess over 
$3,600,000
	
44.2344.24	Over $6,100,000 but not over $7,100,000
	$520,000 plus 12.8 percent of the excess over 
$6,100,000
	
44.2544.26	Over $7,100,000 but not over $8,100,000
	$648,000 plus 13.6 percent of the excess over 
$7,100,000
	
44.2744.28	Over $8,100,000 but not over $9,100,000
	$784,000 plus 14.4 percent of the excess over 
$8,100,000
	
44.2944.30	Over $9,100,000 but not over $10,100,000
	$928,000 plus 15.2 percent of the excess over 
$9,100,000
	
44.3144.32	Over $10,100,000
	$1,080,000 plus 16 percent of the excess over 
$10,100,000
	
44.33 	(c) For estates of decedents dying in 2016:

44.34	Amount of Minnesota Taxable Estate
	Rate of Tax
	
44.35	Not over $1,600,000
	None
	
44.36	Over $1,600,000 but not over $2,600,000
	ten percent of the excess over $1,600,000
	
44.3744.38	Over $2,600,000 but not over $6,100,000
	$100,000 plus 12 percent of the excess over 
$2,600,000
	
44.3944.40	Over $6,100,000 but not over $7,100,000
	$520,000 plus 12.8 percent of the excess over 
$6,100,000
	
44.4144.42	Over $7,100,000 but not over $8,100,000
	$648,000 plus 13.6 percent of the excess over 
$7,100,000
	
44.4344.44	Over $8,100,000 but not over $9,100,000
	$784,000 plus 14.4 percent of the excess over 
$8,100,000
	
44.4544.46	Over $9,100,000 but not over $10,100,000
	$928,000 plus 15.2 percent of the excess over 
$9,100,000
	
44.4744.48	Over $10,100,000
	$1,080,000 plus 16 percent of the excess over 
$10,100,000
	
45.1 	(d) (a) For estates of decedents dying in 2017:

45.2	Amount of Minnesota Taxable Estate
	Rate of Tax
	
45.3	Not over $1,800,000
	None
	
45.4	Over $1,800,000 but not over $2,100,000
	ten percent of the excess over $1,800,000
	
45.545.6	Over $2,100,000 but Not over $5,100,000
	$30,000 plus 12 percent of the excess over 
$2,100,000 12 percent
	
45.745.8	Over $5,100,000 but not over $7,100,000
	$390,000 $612,000 plus 12.8 percent of the 
excess over $5,100,000
	
45.945.10
	Over $7,100,000 but not over $8,100,000
	$646,000$868,000 plus 13.6 percent of the 
excess over $7,100,000
	
45.1145.12	Over $8,100,000 but not over $9,100,000
	$782,000 $1,004,000 plus 14.4 percent of the 
excess over $8,100,000
	
45.1345.14	Over $9,100,000 but not over $10,100,000
	$926,000$1,148,000 plus 15.2 percent of the 
excess over $9,100,000
	
45.1545.16	Over $10,100,000
	$1,078,000$1,300,000 plus 16 percent of the 
excess over $10,100,000
	
45.17 	(e)(b) For estates of decedents dying in 2018 and thereafter:

45.18	Amount of Minnesota Taxable Estate
	Rate of Tax
	
45.19	Not over $2,000,000 $7,100,000
	None 13 percent
	
45.20	Over $2,000,000 but not over $2,600,000
	ten percent of the excess over $2,000,000
	
45.2145.22	Over $2,600,000 but not over $7,100,000
	$60,000 plus 13 percent of the excess over 
$2,600,000
	
45.2345.24	Over $7,100,000 but not over $8,100,000
	$645,000 $923,000 plus 13.6 percent of the 
excess over $7,100,000
	
45.2545.26	Over $8,100,000 but not over $9,100,000
	$781,000 $1,059,000 plus 14.4 percent of the 
excess over $8,100,000
	
45.2745.28	Over $9,100,000 but not over $10,100,000
	$925,000 $1,203,000 plus 15.2 percent of the 
excess over $9,100,000
	
45.2945.30	Over $10,100,000
	$1,077,000 $1,355,000 plus 16 percent of the 
excess over $10,100,000

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

45.33 	Sec. 35. Minnesota Statutes 2016, section 291.03, subdivision 11, is amended to read:
45.34 		Subd. 11.Recapture tax. (a) If, within three years after the decedent's death and before 
45.35 	the death of the qualified heir, the qualified heir disposes of any interest in the qualified 
45.36 	property, other than by a disposition to a family member, or a family member ceases to 
45.37 	satisfy the requirement under subdivision 9, clause (7); or 10, clause (5), an additional estate 
45.38 	tax is imposed on the property. In the case of a sole proprietor, if the qualified heir replaces 
45.39 	qualified small business property excluded under subdivision 9 with similar property, then 
45.40 	the qualified heir will not be treated as having disposed of an interest in the qualified property.
46.1 	(b) The amount of the additional tax equals the amount of the exclusion claimed by the 
46.2 	estate under subdivision 8, paragraph (d), multiplied by 16 percent.
46.3 	(c) The additional tax under this subdivision is due on the day which is six months after 
46.4 	the date of the disposition or cessation in paragraph (a).
46.5 	(d) The tax under this subdivision does not apply to the acquisition of title or possession 
46.6 	of the qualified property by a federal, state, or local government unit, or any other entity 
46.7 	with the power of eminent domain for a public purpose, as defined in section 117.025, 
46.8 	subdivision 11, within the three-year holding period.

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

46.11 	Sec. 36. [462D.01] CITATION.
46.12 	This chapter may be cited as the "First-Time Home Buyer Savings Account Act."

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

46.14 	Sec. 37. [462D.02] DEFINITIONS.
46.15 		Subdivision 1.Definitions. For purposes of this chapter, the following terms have the 
46.16 	meanings given.
46.17 		Subd. 2.Account holder. "Account holder" means an individual who establishes, 
46.18 	individually or jointly with one or more other individuals, a first-time home buyer savings 
46.19 	account.
46.20 		Subd. 3.Allowable closing costs. "Allowable closing costs" means a disbursement listed 
46.21 	on a settlement statement for the purchase of a single-family residence in Minnesota by a 
46.22 	qualified beneficiary.
46.23 		Subd. 4.Commissioner. "Commissioner" means the commissioner of revenue.
46.24 		Subd. 5.Eligible costs. "Eligible costs" means the down payment and allowable closing 
46.25 	costs for the purchase of a single-family residence in Minnesota by a qualified beneficiary. 
46.26 	Eligible costs include paying for the cost of construction of or financing the construction 
46.27 	of a single-family residence.
46.28 		Subd. 6.Financial institution. "Financial institution" means a bank, bank and trust, 
46.29 	trust company with banking powers, savings bank, savings association, or credit union, 
46.30 	organized under the laws of this state, any other state, or the United States; an industrial 
46.31 	loan and thrift under chapter 53 or the laws of another state and authorized to accept deposits; 
47.1 	or a money market mutual fund registered under the federal Investment Company Act of 
47.2 	1940 and regulated under rule 2a-7, promulgated by the Securities and Exchange Commission 
47.3 	under that act.
47.4 		Subd. 7.First-time home buyer. "First-time home buyer" means an individual, and if 
47.5 	married, the individual's spouse, who has no present ownership interest in a principal 
47.6 	residence during the three-year period ending on the earlier of:
47.7 	(1) the date of the purchase of the single-family residence funded, in part, with proceeds 
47.8 	from the first-time home buyer savings account; or
47.9 	(2) the close of the taxable year for which a subtraction is claimed under sections 
47.10 	290.0132, subdivision 25, and 462D.06.
47.11 		Subd. 8.First-time home buyer savings account. "First-time home buyer savings 
47.12 	account" or "account" means an account with a financial institution that an account holder 
47.13 	designates as a first-time home buyer savings account, as provided in section 462D.03, to 
47.14 	pay or reimburse eligible costs for the purchase of a single-family residence by a qualified 
47.15 	beneficiary.
47.16 		Subd. 9.Internal Revenue Code. "Internal Revenue Code" has the meaning given in 
47.17 	section 290.01.
47.18 		Subd. 10.Principal residence. "Principal residence" has the meaning given in section 
47.19 	121 of the Internal Revenue Code.
47.20 		Subd. 11.Qualified beneficiary. "Qualified beneficiary" means a first-time home buyer 
47.21 	who is a Minnesota resident and is designated as the qualified beneficiary of a first-time 
47.22 	home buyer savings account by the account holder.
47.23 		Subd. 12.Single-family residence. "Single-family residence" means a single-family 
47.24 	residence located in this state and owned and occupied by or to be occupied by a qualified 
47.25 	beneficiary as the qualified beneficiary's principal residence, which may include a 
47.26 	manufactured home, trailer, mobile home, condominium unit, townhome, or cooperative.

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

47.28 	Sec. 38. [462D.03] ESTABLISHMENT OF ACCOUNTS.
47.29 		Subdivision 1.Accounts established. An individual may open an account with a financial 
47.30 	institution and designate the account as a first-time home buyer savings account to be used 
47.31 	to pay or reimburse the designated qualified beneficiary's eligible costs.
48.1 		Subd. 2.Designation of qualified beneficiary. (a) The account holder must designate  
48.2 	a first-time home buyer as the qualified beneficiary of the account by April 15 of the year 
48.3 	following the taxable year in which the account was established. The account holder may 
48.4 	be the qualified beneficiary. The account holder may change the designated qualified 
48.5 	beneficiary at any time, but no more than one qualified beneficiary may be designated for 
48.6 	an account at any one time. For purposes of the one beneficiary restriction, a married couple 
48.7 	qualifies as one beneficiary. Changing the designated qualified beneficiary of an account 
48.8 	does not affect computation of the ten-year period under section 462D.06, subdivision 2.
48.9 	(b) The commissioner shall establish a process for account holders to notify the state 
48.10 	that permits recording of the account, the account holder or holders, any transfers under 
48.11 	section 462D.04, subdivision 2, and the designated qualified beneficiary for each account. 
48.12 	This may be done upon filing the account holder's income tax return or in any other way 
48.13 	the commissioner determines to be appropriate.
48.14 		Subd. 3.Joint account holders. An individual may jointly own a first-time home buyer 
48.15 	account with another person if the joint account holders file a married joint income tax 
48.16 	return.
48.17 		Subd. 4.Multiple accounts. (a) An individual may be the account holder of more than 
48.18 	one first-time home buyer savings account, but must not hold or own multiple accounts that 
48.19 	designate the same qualified beneficiary.
48.20 	(b) An individual may be designated as the qualified beneficiary on more than one 
48.21 	first-time home buyer savings account.
48.22 		Subd. 5.Contributions. Only cash may be contributed to a first-time home buyer savings 
48.23 	account. Individuals other than the account holder may contribute to an account. No more 
48.24 	than $14,000 ($28,000 for married joint filers) may be contributed in any year and no more 
48.25 	than $50,000 ($100,000 for married joint filers) may be contributed in all years. The 
48.26 	maximum amount in any account is limited to $150,000.

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

48.28 	Sec. 39. [462D.04] ACCOUNT HOLDER RESPONSIBILITIES.
48.29 		Subdivision 1.Expenses; reporting. The account holder must:
48.30 	(1) not use funds in a first-time home buyer savings account to pay expenses of 
48.31 	administering the account, except that a service fee may be deducted from the account by 
48.32 	the financial institution in which the account is held; and
49.1 	(2) submit to the commissioner, in the form and manner required by the commissioner:
49.2 	(i) detailed information regarding the first-time home buyer savings account, including 
49.3 	a list of transactions for the account during the taxable year and the Form 1099 issued by 
49.4 	the financial institution for the account for the taxable year; and
49.5 	(ii) upon withdrawal of funds from the account, a detailed account of the eligible costs 
49.6 	for which the account funds were expended and a statement of the amount of funds remaining 
49.7 	in the account, if any.
49.8 		Subd. 2.Transfers. An account holder may withdraw funds, in whole or part, from a 
49.9 	first-time home buyer savings account and deposit the funds in another first-time home 
49.10 	buyer savings account held by a different financial institution or the same financial institution.

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

49.12 	Sec. 40. [462D.05] FINANCIAL INSTITUTIONS.
49.13 	(a) A financial institution is not required to take any action to ensure compliance with 
49.14 	this chapter, including to:
49.15 	(1) designate an account, designate qualified beneficiaries, or modify the financial 
49.16 	institution's account contracts or systems in any way;
49.17 	(2) track the use of money withdrawn from a first-time home buyer savings account;
49.18 	(3) allocate funds in a first-time home buyer savings account among joint account holders 
49.19 	or multiple qualified beneficiaries; or
49.20 	(4) report any information to the commissioner or any other government that is not 
49.21 	otherwise required by law.
49.22 	(b) A financial institution is not responsible or liable for:
49.23 	(1) determining or ensuring that an account satisfies the requirements of this chapter or 
49.24 	that its funds are used for eligible costs; or
49.25 	(2) reporting or remitting taxes or penalties related to the use of a first-time home buyer 
49.26 	savings account.

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

50.1 	Sec. 41. [462D.06] SUBTRACTION; ADDITION; ADDITIONAL TAX.
50.2 		Subdivision 1.Subtraction. (a) As provided in section 290.0132, subdivision 25, an 
50.3 	account holder is allowed a subtraction from the federal taxable income equal to interest or 
50.4 	dividends earned on the first-time home buyer savings account during the taxable year.
50.5 	(b) The subtraction under paragraph (a) is allowed each year for the taxable years 
50.6 	including and following the taxable year in which the account was established. No person 
50.7 	other than the account holder is allowed a subtraction under this section.
50.8 		Subd. 2.Addition. (a) As provided in section 290.0131, subdivision 14, an account 
50.9 	holder must add to federal taxable income the following amounts:
50.10 	(1) the amount in excess of the total contributions for all taxable years that is withdrawn 
50.11 	and used for other than eligible costs, or for a transfer permitted under section 462D.04, 
50.12 	subdivision 2; and
50.13 	(2) the amount remaining in the first-time home buyer savings account at the close of 
50.14 	the tenth taxable year that exceeds the total contributions to the account for all taxable years.
50.15 	(b) For an account that received a transfer under section 462D.04, subdivision 2, the 
50.16 	ten-year period under paragraph (a), clause (2), ends at the close of the earliest taxable year 
50.17 	that applies to either account under that clause.
50.18 		Subd. 3.Additional tax. The account holder is liable for an additional tax equal to ten 
50.19 	percent of the addition under subdivision 2 for the taxable year. This amount must be added 
50.20 	to the amount due under section 290.06. The tax under this subdivision does not apply to:
50.21 	(1) a withdrawal because of the account holder's or designated qualified beneficiary's 
50.22 	death or disability;
50.23 	(2) a disbursement of assets of the account under federal bankruptcy law; and
50.24 	(3) a disbursement of assets of the account under chapter 550 or 551.

50.25 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
50.26 	31, 2016.

50.27 	Sec. 42. Laws 2010, chapter 216, section 12, the effective date, as amended by Laws 2016, 
50.28 	chapter 158, article 1, section 212, is amended to read:

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

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

51.6 	Sec. 43. INCOME TAX RECIPROCITY BENCHMARK STUDY; 
51.7 	APPROPRIATION.
 51.8 		Subdivision 1.Study. (a) The Department of Revenue, in conjunction with the Wisconsin 
51.9 	Department of Revenue, must, provided the conditions of paragraph (d) are satisfied, conduct 
51.10 	a study to determine at least the following:
51.11 	(1) the number of residents of each state who earn income from personal services in the 
51.12 	other state;
51.13 	(2) the total amount of income earned by residents of each state who earn income from 
51.14 	personal services in the other state; and
51.15 	(3) the change in tax revenue in each state if an income tax reciprocity arrangement were 
51.16 	resumed between the two states under which the taxpayers were required to pay income 
51.17 	taxes on the income only in their state of residence.
51.18 	(b) The study must use information obtained from each state's income tax returns for 
51.19 	tax year 2017 and from any other source of information the departments determine is 
51.20 	necessary to complete the study.
51.21 	(c) No later than March 1, 2019, the Department of Revenue must submit a report 
51.22 	containing the results of the study to the governor and to the chairs and ranking minority 
51.23 	members of the legislative committees having jurisdiction over taxes, in compliance with 
51.24 	Minnesota Statutes, sections 3.195 and 3.197.
51.25 	(d) The department shall conduct the study only if the commissioner of revenue enters 
51.26 	an agreement under Minnesota Statutes, section 290.081, by April 1, 2018, and receives 
51.27 	notice from the secretary of revenue that the Wisconsin Department of Revenue will fully 
51.28 	participate in the study.
51.29 		Subd. 2.Appropriation. $300,000 in fiscal year 2018 is appropriated from the general 
51.30 	fund to the commissioner of revenue for the income tax reciprocity benchmark study in 
51.31 	subdivision 1. This is a onetime appropriation and is not added to the agency's base budget.

52.1 	EFFECTIVE DATE. This section is effective the day following final enactment. The 
52.2 	appropriation in subdivision 2 is only effective if the conditions of subdivision 1, paragraph 
52.3 	(d), are satisfied.

52.4 	Sec. 44.  REPEALER.
 52.5 	(a) Minnesota Statutes 2016, sections 136A.129; and 290.06, subdivision 36, are repealed.
52.6 	(b) Minnesota Statutes 2016, section 290.067, subdivision 2, is repealed.

52.7 	EFFECTIVE DATE. Paragraph (a) is effective for agreements entered into after June 
52.8 	30, 2017, and for taxable years beginning after December 31, 2017. Paragraph (b) is effective 
52.9 	for taxable years beginning after December 31, 2016.

52.10 	ARTICLE 2
52.11 	PROPERTY TAX

52.12 	Section 1. Minnesota Statutes 2016, section 40A.18, subdivision 2, is amended to read:
52.13 		Subd. 2.Allowed commercial and industrial operations. (a) Commercial and industrial 
52.14 	operations are not allowed on land within an agricultural preserve except:
52.15 	(1) small on-farm commercial or industrial operations normally associated with and 
52.16 	important to farming in the agricultural preserve area;
52.17 	(2) storage use of existing farm buildings that does not disrupt the integrity of the 
52.18 	agricultural preserve; and
52.19 	(3) small commercial use of existing farm buildings for trades not disruptive to the 
52.20 	integrity of the agricultural preserve such as a carpentry shop, small scale mechanics shop, 
52.21 	and similar activities that a farm operator might conduct.; and
52.22 	(4) wireless communication installments and related equipment and structure capable 
52.23 	of providing technology potentially beneficial to farming activities. A property owner who 
52.24 	installs wireless communication equipment does not violate a covenant made prior to January 
52.25 	1, 2018, under section 40A.10, subdivision 1.
52.26 	(b) For purposes of paragraph (a), clauses (2) and (3), "existing" in clauses (2) and (3)
52.27 	means existing on August 1, 1989.

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

53.1 	Sec. 2. Minnesota Statutes 2016, section 270C.9901, is amended to read:
53.2 	270C.9901 ASSESSOR ACCREDITATION; WAIVER.
53.3 		Subdivision 1.Accreditation. Every individual who appraises or physically inspects 
53.4 	real property for the purpose of determining its valuation or classification for property tax 
53.5 	purposes must obtain licensure as an accredited Minnesota assessor from the State Board 
53.6 	of Assessors by July 1, 2019 2022, or within four five years of that person having become 
53.7 	licensed as a certified Minnesota assessor, whichever is later.
53.8 		Subd. 2.Waiver. (a) An individual may apply to the State Board of Assessors for a 
53.9 	waiver from licensure as an accredited Minnesota assessor as required by subdivision 1 if 
53.10 	the individual:
53.11 	(1) was first licensed as a certified Minnesota assessor before July 1, 2004;
53.12 	(2) has had an assessor license since July 1, 2004;
53.13 	(3) has successfully passed a comprehensive examination substantially equivalent to the 
53.14 	requirements by the State Board of Assessors for the accredited Minnesota assessor license 
53.15 	designation before May 1, 2020; and
53.16 	(4) submits an application to the State Board of Assessors no later than July 1, 2022.
53.17 	The examination can only be taken once to fulfill the requirements of the waiver.
53.18 	(b) The commissioner of revenue, in consultation with the State Board of Assessors and 
53.19 	the Minnesota Association of Assessing Officers, must determine the contents of the waiver 
53.20 	application and the comprehensive examination.
53.21 	(c) A county assessor in any jurisdiction assessed by an applicant may submit additional 
53.22 	information to the State Board of Assessors to be considered as part of the waiver review 
53.23 	proceedings.
53.24 	(d) The State Board of Assessors must not grant a waiver unless the applicant has met 
53.25 	the requirements in paragraph (a) and has the ability to perform the duties of assessment 
53.26 	required in each jurisdiction in which the applicant appraises or physically inspects real 
53.27 	property for the purposes of determining its valuation or classification for property tax 
53.28 	purposes.
53.29 	(e) An individual granted a waiver under this subdivision is allowed to continue 
53.30 	assessment duties at the individual's licensure level, provided the individual complies with 
53.31 	the continuing education requirements for the accredited Minnesota assessor designation 
53.32 	as prescribed by the State Board of Assessors.
54.1 	(f) An individual granted a waiver under this section:
54.2 	(1) is not considered to have achieved the designation as an accredited Minnesota assessor 
54.3 	and may not represent himself or herself as an accredited Minnesota assessor; and
54.4 	(2) is not authorized to value income-producing property as defined in section 273.11, 
54.5 	subdivision 13, unless the individual meets the requirements of that section.
54.6 	(g) A waiver granted by the State Board of Assessors under this section remains in effect 
54.7 	unless the individual's licensure is revoked. If the individual's licensure is revoked, the 
54.8 	waiver is void and the individual is subject to the requirements of subdivision 1.
54.9 	(h) A decision of the State Board of Assessors to grant or deny a waiver under this 
54.10 	subdivision is final and is not subject to appeal.
54.11 	(i) Waivers granted under this subdivision expire on June 30, 2032.
54.12 	(j) This subdivision expires July 1, 2032.

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

54.14 	Sec. 3. Minnesota Statutes 2016, section 272.02, subdivision 86, is amended to read:
54.15 		Subd. 86.Apprenticeship training facilities. All or a portion of a building used 
54.16 	exclusively for a state-approved apprenticeship program through the Department of Labor 
54.17 	and Industry is exempt if:
54.18 	(1) it is owned by a nonprofit organization or a nonprofit trust, and operated by a nonprofit 
54.19 	organization or a nonprofit trust;
54.20 	(2) the program participants receive no compensation; and
54.21 	(3) it is located:
54.22 	(i) in the Minneapolis and St. Paul standard metropolitan statistical area as determined 
54.23 	by the 2000 federal census;
54.24 	(ii) in a city outside the Minneapolis and St. Paul standard metropolitan statistical area 
54.25 	that has a population of 7,400 or greater according to the most recent federal census; or
54.26 	(iii) in a township that has a population greater than 2,0001,400 but less than 3,000 
54.27 	determined by the 2000 federal census and the building was previously used by a school 
54.28 	and was exempt for taxes payable in 2010.
54.29 	Use of the property for advanced skills training of incumbent workers does not disqualify 
54.30 	the property for the exemption under this subdivision. This exemption includes up to five 
55.1 	acres of the land on which the building is located and associated parking areas on that land, 
55.2 	except that if the building meets the requirements of clause (3), item (iii), then the exemption 
55.3 	includes up to ten acres of land on which the building is located and associated parking 
55.4 	areas on that land. If a parking area associated with the facility is used for the purposes of 
55.5 	the facility and for other purposes, a portion of the parking area shall be exempt in proportion 
55.6 	to the square footage of the facility used for purposes of apprenticeship training.

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

55.8 	Sec. 4. Minnesota Statutes 2016, section 272.02, is amended by adding a subdivision to 
55.9 	read:
55.10 		Subd. 100.Electric generation facility; personal property. (a) Notwithstanding 
55.11 	subdivision 9, clause (a), attached machinery and other personal property that is part of an 
55.12 	electric generation facility with more than 35 megawatts and less than 40 megawatts of 
55.13 	installed capacity and that meets the requirements of this subdivision is exempt from taxation 
55.14 	and payments in lieu of taxation. The facility must:
55.15 	(1) be designed to utilize natural gas as a primary fuel;
55.16 	(2) be owned and operated by a municipal power agency as defined in section 453.52, 
55.17 	subdivision 8;
55.18 	(3) be located within 800 feet of an existing natural gas pipeline;
55.19 	(4) satisfy a resource deficiency identified in an approved integrated resource plan filed 
55.20 	under section 216B.2422;
55.21 	(5) be located outside the metropolitan area as defined under section 473.121, subdivision 
55.22 	2; and
55.23 	(6) have received, by resolution, the approval of the governing bodies of the city and 
55.24 	county in which it is located for the exemption of personal property provided by this 
55.25 	subdivision.
55.26 	(b) Construction of the facility must have been commenced after January 1, 2015, and 
55.27 	before January 1, 2017. Property eligible for this exemption does not include electric 
55.28 	transmission lines and interconnections or gas pipelines and interconnections appurtenant 
55.29 	to the property or the facility.

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

56.1 	Sec. 5. Minnesota Statutes 2016, section 272.02, is amended by adding a subdivision to 
56.2 	read:
56.3 		Subd. 101.Certain property owned by an Indian tribe. (a) Property is exempt that:
56.4 	(1) is located in a city of the first class with a population less than 100,000 as of the 
56.5 	2010 federal census;
56.6 	(2) was on January 1, 2016, and is for the current assessment, owned by a federally 
56.7 	recognized Indian tribe, or its instrumentality, that is located within the state of Minnesota; 
56.8 	and
56.9 	(3) is used exclusively as a medical clinic.
56.10 	(b) Property that qualifies for the exemption under this subdivision is limited to no more 
56.11 	than two contiguous parcels and structures that do not exceed, in the aggregate, 30,000 
56.12 	square feet. Property acquired for single-family housing, market-rate apartments, agriculture, 
56.13 	or forestry does not qualify for this exemption. The exemption created by this subdivision 
56.14 	expires with taxes payable in 2028.

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

56.16 	Sec. 6. Minnesota Statutes 2016, section 272.0213, is amended to read:
56.17 	272.0213 LEASED SEASONAL-RECREATIONAL LAND.
56.18 	(a) A county board may elect, by resolution, to Qualified lands, as defined in this section, 
56.19 	are  exempt from taxation, including the tax under section 273.19, qualified lands. "Qualified 
56.20 	lands" for purposes of this section means property land that:
56.21 	(1) is owned by a county, city, town, or the state; and
56.22 	(2) is rented by the entity for noncommercial seasonal-recreational or, noncommercial 
56.23 	seasonal-recreational residential use; and, or class 1c commercial seasonal-recreational 
56.24 	residential use.
56.25 	(3) was rented for the purposes specified in clause (2) and was exempt from taxation 
56.26 	for property taxes payable in 2008.
56.27 	(b) Lands owned by the federal government and rented for noncommercial 
56.28 	seasonal-recreational or, noncommercial seasonal-recreational residential, or class 1c 
56.29 	commercial seasonal-recreational residential use are exempt from taxation, including the 
56.30 	tax under section 273.19.

57.1 	EFFECTIVE DATE. This section is effective beginning with taxes assessed in 2018 
57.2 	and payable in 2019.

57.3 	Sec. 7. Minnesota Statutes 2016, section 272.03, subdivision 1, is amended to read:
57.4 		Subdivision 1.Real property. (a) For the purposes of taxation, but not for chapter 297A,
57.5 	"real property" includes the land itself, rails, ties, and other track materials annexed to the 
57.6 	land, and all buildings, structures, and improvements or other fixtures on it, bridges of bridge 
57.7 	companies, and all rights and privileges belonging or appertaining to the land, and all mines, 
57.8 	iron ore and taconite minerals not otherwise exempt, quarries, fossils, and trees on or under 
57.9 	it.
57.10 	(b) A building or structure shall include the building or structure itself, together with all 
57.11 	improvements or fixtures annexed to the building or structure, which are integrated with 
57.12 	and of permanent benefit to the building or structure, regardless of the present use of the 
57.13 	building, and which cannot be removed without substantial damage to itself or to the building 
57.14 	or structure.
57.15 	(c)(i) Real property does not include tools, implements, machinery, and equipment 
57.16 	attached to or installed in real property for use in the business or production activity 
57.17 	conducted thereon, regardless of size, weight or method of attachment, and mine shafts, 
57.18 	tunnels, and other underground openings used to extract ores and minerals taxed under 
57.19 	chapter 298 together with steel, concrete, and other materials used to support such openings.
57.20 	(ii) The exclusion provided in clause (i) shall not apply to machinery and equipment 
57.21 	includable as real estate by paragraphs (a) and (b) even though such machinery and equipment 
57.22 	is used in the business or production activity conducted on the real property if and to the 
57.23 	extent such business or production activity consists of furnishing services or products to 
57.24 	other buildings or structures which are subject to taxation under this chapter.
57.25 	(iii) The exclusion provided in clause (i) does not apply to the exterior shell of a structure 
57.26 	which constitutes walls, ceilings, roofs, or floors if the shell of the structure has structural, 
57.27 	insulation, or temperature control functions or provides protection from the elements, unless 
57.28 	the structure is primarily used in the production of biofuels, wine, beer, distilled beverages, 
57.29 	or dairy products. Such an exterior shell is included in the definition of real property even 
57.30 	if it also has special functions distinct from that of a building, or if such an exterior shell is 
57.31 	primarily used for the storage of ingredients or materials used in the production of biofuels, 
57.32 	wine, beer, distilled beverages, or dairy products, or for the storage of finished biofuels, 
57.33 	wine, beer, distilled beverages, or dairy products.
58.1 	(d) The term real property does not include tools, implements, machinery, equipment, 
58.2 	poles, lines, cables, wires, conduit, and station connections which are part of a telephone 
58.3 	communications system, regardless of attachment to or installation in real property and 
58.4 	regardless of size, weight, or method of attachment or installation.

58.5 	EFFECTIVE DATE. This section is effective for sales and purchases made after the 
58.6 	day of final enactment.

58.7 	Sec. 8. Minnesota Statutes 2016, section 272.162, is amended to read:
58.8 	272.162 RESTRICTIONS ON TRANSFERS OF SPECIFIC PARTS.
58.9 		Subdivision 1.Conditions restricting transfer. When a deed or other instrument 
58.10 	conveying a parcel of land is presented to the county auditor for transfer or division under 
58.11 	sections 272.12, 272.16, and 272.161, the auditor shall not transfer or divide the land or its 
58.12 	net tax capacity in the official records and shall not certify the instrument as provided in 
58.13 	section 272.12, if:
58.14 	(a) The land conveyed is less than a whole parcel of land as charged in the tax lists;
58.15 	(b) The part conveyed appears within the area of application of municipal or county
58.16 	subdivision regulations adopted and filed under section 394.35 or section 462.36, subdivision 
58.17 	1; and
58.18 	(c) The part conveyed is part of or constitutes a subdivision as defined in section 462.352, 
58.19 	subdivision 12.
58.20 		Subd. 2.Conditions allowing transfer. (a) Notwithstanding the provisions of subdivision 
58.21 	1, the county auditor may transfer or divide the land and its net tax capacity and may certify 
58.22 	the instrument if the instrument contains a certification by the clerk of the municipality or 
58.23 	designated county planning official:
58.24 	(a) (1) that the municipality's or county's subdivision regulations do not apply;
58.25 	(b) (2) that the subdivision has been approved by the governing body of the municipality
58.26 	or county; or
58.27 	(c) (3) that the restrictions on the division of taxes and filing and recording have been 
58.28 	waived by resolution of the governing body of the municipality or county in the particular 
58.29 	case because compliance would create an unnecessary hardship and failure to comply would 
58.30 	not interfere with the purpose of the regulations.
58.31 	(b) If any of the conditions for certification by the municipality or county as provided 
58.32 	in this subdivision exist and the municipality or county does not certify that they exist within 
59.1 	24 hours after the instrument of conveyance has been presented to the clerk of the 
59.2 	municipality or designated county planning official, the provisions of subdivision 1 do not 
59.3 	apply.
59.4 	(c) If an unexecuted instrument is presented to the municipality or county and any of 
59.5 	the conditions for certification by the municipality or county as provided in this subdivision 
59.6 	exist, the unexecuted instrument must be certified by the clerk of the municipality or the 
59.7 	designated county planning official.
59.8 		Subd. 3.Applicability of restrictions. (a) This section does not apply to the exceptions 
59.9 	set forth in section 272.12.
59.10 	(b) This section applies only to land within municipalities or counties which choose to 
59.11 	be governed by its provisions. A municipality or county may choose to have this section 
59.12 	apply to the property within its boundaries by filing a certified copy of a resolution of its 
59.13 	governing body making that choice with the auditor and recorder of the county in which it 
59.14 	is located.

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

59.16 	Sec. 9. Minnesota Statutes 2016, section 273.125, subdivision 8, is amended to read:
59.17 		Subd. 8.Manufactured homes; sectional structures. (a) In this section, "manufactured 
59.18 	home" means a structure transportable in one or more sections, which is built on a permanent 
59.19 	chassis, and designed to be used as a dwelling with or without a permanent foundation when 
59.20 	connected to the required utilities, and contains the plumbing, heating, air conditioning, and 
59.21 	electrical systems in it. Manufactured home includes any accessory structure that is an 
59.22 	addition or supplement to the manufactured home and, when installed, becomes a part of 
59.23 	the manufactured home.
59.24 	(b) Except as provided in paragraph (c), a manufactured home that meets each of the 
59.25 	following criteria must be valued and assessed as an improvement to real property, the 
59.26 	appropriate real property classification applies, and the valuation is subject to review and 
59.27 	the taxes payable in the manner provided for real property:
59.28 	(1) the owner of the unit holds title to the land on which it is situated;
59.29 	(2) the unit is affixed to the land by a permanent foundation or is installed at its location 
59.30 	in accordance with the Manufactured Home Building Code in sections 327.31 to 327.34, 
59.31 	and rules adopted under those sections, or is affixed to the land like other real property in 
59.32 	the taxing district; and
60.1 	(3) the unit is connected to public utilities, has a well and septic tank system, or is serviced 
60.2 	by water and sewer facilities comparable to other real property in the taxing district.
60.3 	(c) A manufactured home that meets each of the following criteria must be assessed at 
60.4 	the rate provided by the appropriate real property classification but must be treated as 
60.5 	personal property, and the valuation is subject to review and the taxes payable in the manner 
60.6 	provided in this section:
60.7 	(1) the owner of the unit is a lessee of the land under the terms of a lease, or the unit is 
60.8 	located in a manufactured home park but is not the homestead of the park owner;
60.9 	(2) the unit is affixed to the land by a permanent foundation or is installed at its location 
60.10 	in accordance with the Manufactured Home Building Code contained in sections 327.31 to 
60.11 	327.34, and the rules adopted under those sections, or is affixed to the land like other real 
60.12 	property in the taxing district; and
60.13 	(3) the unit is connected to public utilities, has a well and septic tank system, or is serviced 
60.14 	by water and sewer facilities comparable to other real property in the taxing district.
60.15 	(d) Sectional structures must be valued and assessed as an improvement to real property 
60.16 	if the owner of the structure holds title to the land on which it is located or is a qualifying 
60.17 	lessee of the land under section 273.19. In this paragraph "sectional structure" means a 
60.18 	building or structural unit that has been in whole or substantial part manufactured or 
60.19 	constructed at an off-site location to be wholly or partially assembled on site alone or with 
60.20 	other units and attached to a permanent foundation.
60.21 	(e) The commissioner of revenue may adopt rules under the Administrative Procedure 
60.22 	Act to establish additional criteria for the classification of manufactured homes and sectional 
60.23 	structures under this subdivision.
60.24 	(f) A storage shed, deck, or similar improvement constructed on property that is leased 
60.25 	or rented as a site for a manufactured home, sectional structure, park trailer, or travel trailer 
60.26 	is taxable as provided in this section. In the case of property that is leased or rented as a site 
60.27 	for a travel trailer, a storage shed, deck, or similar improvement on the site that is considered 
60.28 	personal property under this paragraph is taxable only if its total estimated market value is 
60.29 	over $1,000 $10,000. The property is taxable as personal property to the lessee of the site 
60.30 	if it is not owned by the owner of the site. The property is taxable as real estate if it is owned 
60.31 	by the owner of the site. As a condition of permitting the owner of the manufactured home, 
60.32 	sectional structure, park trailer, or travel trailer to construct improvements on the leased or 
60.33 	rented site, the owner of the site must obtain the permanent home address of the lessee or 
61.1 	user of the site. The site owner must provide the name and address to the assessor upon 
61.2 	request.

61.3 	EFFECTIVE DATE. This section is effective beginning for property taxes assessed 
61.4 	in 2018.

61.5 	Sec. 10. Minnesota Statutes 2016, section 273.13, subdivision 22, is amended to read:
61.6 		Subd. 22.Class 1. (a) Except as provided in subdivision 23 and in paragraphs (b) and 
61.7 	(c), real estate which is residential and used for homestead purposes is class 1a. In the case 
61.8 	of a duplex or triplex in which one of the units is used for homestead purposes, the entire 
61.9 	property is deemed to be used for homestead purposes. The market value of class 1a property 
61.10 	must be determined based upon the value of the house, garage, and land.
61.11 	The first $500,000 of market value of class 1a property has a net classification rate of 
61.12 	one percent of its market value; and the market value of class 1a property that exceeds 
61.13 	$500,000 has a classification rate of 1.25 percent of its market value.
61.14 	(b) Class 1b property includes homestead real estate or homestead manufactured homes 
61.15 	used for the purposes of a homestead by:
61.16 	(1) any person who is blind as defined in section 256D.35, or the blind person and the 
61.17 	blind person's spouse;
61.18 	(2) any person who is permanently and totally disabled or by the disabled person and 
61.19 	the disabled person's spouse; or
61.20 	(3) the surviving spouse of a permanently and totally disabled veteran homesteading a 
61.21 	property classified under this paragraph for taxes payable in 2008.
61.22 	Property is classified and assessed under clause (2) only if the government agency or 
61.23 	income-providing source certifies, upon the request of the homestead occupant, that the 
61.24 	homestead occupant satisfies the disability requirements of this paragraph, and that the 
61.25 	property is not eligible for the valuation exclusion under subdivision 34.
61.26 	Property is classified and assessed under paragraph (b) only if the commissioner of 
61.27 	revenue or the county assessor certifies that the homestead occupant satisfies the requirements 
61.28 	of this paragraph.
61.29 	Permanently and totally disabled for the purpose of this subdivision means a condition 
61.30 	which is permanent in nature and totally incapacitates the person from working at an 
61.31 	occupation which brings the person an income. The first $50,000 market value of class 1b 
61.32 	property has a net classification rate of .45 percent of its market value. The remaining market 
62.1 	value of class 1b property has a classification rate using the rates for class 1a or class 2a 
62.2 	property, whichever is appropriate, of similar market value.
62.3 	(c) Class 1c property is commercial use real and personal property that abuts public 
62.4 	water as defined in section 103G.005, subdivision 15, or abuts a state trail administered by 
62.5 	the Department of Natural Resources, and is devoted to temporary and seasonal residential 
62.6 	occupancy for recreational purposes but not devoted to commercial purposes for more than 
62.7 	250 days in the year preceding the year of assessment, and that includes a portion used as 
62.8 	a homestead by the owner, which includes a dwelling occupied as a homestead by a 
62.9 	shareholder of a corporation that owns the resort, a partner in a partnership that owns the 
62.10 	resort, or a member of a limited liability company that owns the resort even if the title to 
62.11 	the homestead is held by the corporation, partnership, or limited liability company. For 
62.12 	purposes of this paragraph, property is devoted to a commercial purpose on a specific day 
62.13 	if any portion of the property, excluding the portion used exclusively as a homestead, is 
62.14 	used for residential occupancy and a fee is charged for residential occupancy. Class 1c 
62.15 	property must contain three or more rental units. A "rental unit" is defined as a cabin, 
62.16 	condominium, townhouse, sleeping room, or individual camping site equipped with water 
62.17 	and electrical hookups for recreational vehicles. Class 1c property must provide recreational 
62.18 	activities such as the rental of ice fishing houses, boats and motors, snowmobiles, downhill 
62.19 	or cross-country ski equipment; provide marina services, launch services, or guide services; 
62.20 	or sell bait and fishing tackle. Any unit in which the right to use the property is transferred 
62.21 	to an individual or entity by deeded interest, or the sale of shares or stock, no longer qualifies 
62.22 	for class 1c even though it may remain available for rent. A camping pad offered for rent 
62.23 	by a property that otherwise qualifies for class 1c is also class 1c, regardless of the term of 
62.24 	the rental agreement, as long as the use of the camping pad does not exceed 250 days. If 
62.25 	the same owner owns two separate parcels that are located in the same township, and one 
62.26 	of those properties is classified as a class 1c property and the other would be eligible to be 
62.27 	classified as a class 1c property if it was used as the homestead of the owner, both properties 
62.28 	will be assessed as a single class 1c property; for purposes of this sentence, properties are 
62.29 	deemed to be owned by the same owner if each of them is owned by a limited liability 
62.30 	company, and both limited liability companies have the same membership. The portion of 
62.31 	the property used as a homestead is class 1a property under paragraph (a). The remainder 
62.32 	of the property is classified as follows: the first $600,000 of market value is tier I, the next 
62.33 	$1,700,000 of market value is tier II, and any remaining market value is tier III. The 
62.34 	classification rates for class 1c are: tier I, 0.50 percent; tier II, 1.0 percent; and tier III, 1.25 
62.35 	percent. Owners of real and personal property devoted to temporary and seasonal residential 
62.36 	occupancy for recreation purposes in which all or a portion of the property was devoted to 
63.1 	commercial purposes for not more than 250 days in the year preceding the year of assessment 
63.2 	desiring classification as class 1c, must submit a declaration to the assessor designating the 
63.3 	cabins or units occupied for 250 days or less in the year preceding the year of assessment 
63.4 	by January 15 of the assessment year. Those cabins or units and a proportionate share of 
63.5 	the land on which they are located must be designated as class 1c as otherwise provided. 
63.6 	The remainder of the cabins or units and a proportionate share of the land on which they 
63.7 	are located must be designated as class 3a commercial. The owner of property desiring 
63.8 	designation as class 1c property must provide guest registers or other records demonstrating 
63.9 	that the units for which class 1c designation is sought were not occupied for more than 250 
63.10 	days in the year preceding the assessment if so requested. The portion of a property operated 
63.11 	as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) 
63.12 	other nonresidential facility operated on a commercial basis not directly related to temporary 
63.13 	and seasonal residential occupancy for recreation purposes does not qualify for class 1c.
63.14 	(d) Class 1d property includes structures that meet all of the following criteria:
63.15 	(1) the structure is located on property that is classified as agricultural property under 
63.16 	section 273.13, subdivision 23;
63.17 	(2) the structure is occupied exclusively by seasonal farm workers during the time when 
63.18 	they work on that farm, and the occupants are not charged rent for the privilege of occupying 
63.19 	the property, provided that use of the structure for storage of farm equipment and produce 
63.20 	does not disqualify the property from classification under this paragraph;
63.21 	(3) the structure meets all applicable health and safety requirements for the appropriate 
63.22 	season; and
63.23 	(4) the structure is not salable as residential property because it does not comply with 
63.24 	local ordinances relating to location in relation to streets or roads.
63.25 	The market value of class 1d property has the same classification rates as class 1a property 
63.26 	under paragraph (a).

63.27 	EFFECTIVE DATE. This section is effective beginning with assessment year 2018 
63.28 	for taxes payable in 2019.

63.29 	Sec. 11. Minnesota Statutes 2016, section 273.13, subdivision 23, is amended to read:
63.30 		Subd. 23.Class 2. (a) An agricultural homestead consists of class 2a agricultural land 
63.31 	that is homesteaded, along with any class 2b rural vacant land that is contiguous to the class 
63.32 	2a land under the same ownership. The market value of the house and garage and immediately 
63.33 	surrounding one acre of land has the same classification rates as class 1a or 1b property 
64.1 	under subdivision 22. The value of the remaining land including improvements up to the 
64.2 	first tier valuation limit of agricultural homestead property has a classification rate of 0.5 
64.3 	percent of market value. The remaining property over the first tier has a classification rate 
64.4 	of one percent of market value. For purposes of this subdivision, the "first tier valuation 
64.5 	limit of agricultural homestead property" and "first tier" means the limit certified under 
64.6 	section 273.11, subdivision 23.
64.7 	(b) Class 2a agricultural land consists of parcels of property, or portions thereof, that 
64.8 	are agricultural land and buildings. Class 2a property has a classification rate of one percent 
64.9 	of market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a 
64.10 	property must also include any property that would otherwise be classified as 2b, but is 
64.11 	interspersed with class 2a property, including but not limited to sloughs, wooded wind 
64.12 	shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback requirement, 
64.13 	and other similar land that is impractical for the assessor to value separately from the rest 
64.14 	of the property or that is unlikely to be able to be sold separately from the rest of the property.
64.15 	An assessor may classify the part of a parcel described in this subdivision that is used 
64.16 	for agricultural purposes as class 2a and the remainder in the class appropriate to its use.
64.17 	(c) Class 2b rural vacant land consists of parcels of property, or portions thereof, that 
64.18 	are unplatted real estate, rural in character and not used for agricultural purposes, including 
64.19 	land used for growing trees for timber, lumber, and wood and wood products, that is not 
64.20 	improved with a structure. The presence of a minor, ancillary nonresidential structure as 
64.21 	defined by the commissioner of revenue does not disqualify the property from classification 
64.22 	under this paragraph. Any parcel of 20 acres or more improved with a structure that is not 
64.23 	a minor, ancillary nonresidential structure must be split-classified, and ten acres must be 
64.24 	assigned to the split parcel containing the structure. Class 2b property has a classification 
64.25 	rate of one percent of market value unless it is part of an agricultural homestead under 
64.26 	paragraph (a), or qualifies as class 2c under paragraph (d).
64.27 	(d) Class 2c managed forest land consists of no less than 20 and no more than 1,920 
64.28 	acres statewide per taxpayer that is being managed under a forest management plan that 
64.29 	meets the requirements of chapter 290C, but is not enrolled in the sustainable forest resource 
64.30 	management incentive program. It has a classification rate of .65 percent, provided that the 
64.31 	owner of the property must apply to the assessor in order for the property to initially qualify 
64.32 	for the reduced rate and provide the information required by the assessor to verify that the 
64.33 	property qualifies for the reduced rate. If the assessor receives the application and information 
64.34 	before May 1 in an assessment year, the property qualifies beginning with that assessment 
64.35 	year. If the assessor receives the application and information after April 30 in an assessment 
65.1 	year, the property may not qualify until the next assessment year. The commissioner of 
65.2 	natural resources must concur that the land is qualified. The commissioner of natural 
65.3 	resources shall annually provide county assessors verification information on a timely basis. 
65.4 	The presence of a minor, ancillary nonresidential structure as defined by the commissioner 
65.5 	of revenue does not disqualify the property from classification under this paragraph.
65.6 	(e) Agricultural land as used in this section means:
65.7 	(1) contiguous acreage of ten acres or more, used during the preceding year for 
65.8 	agricultural purposes; or
65.9 	(2) contiguous acreage used during the preceding year for an intensive livestock or 
65.10 	poultry confinement operation, provided that land used only for pasturing or grazing does 
65.11 	not qualify under this clause.
65.12 	"Agricultural purposes" as used in this section means the raising, cultivation, drying, or 
65.13 	storage of agricultural products for sale, or the storage of machinery or equipment used in 
65.14 	support of agricultural production by the same farm entity. For a property to be classified 
65.15 	as agricultural based only on the drying or storage of agricultural products, the products 
65.16 	being dried or stored must have been produced by the same farm entity as the entity operating 
65.17 	the drying or storage facility. "Agricultural purposes" also includes enrollment in a local 
65.18 	conservation program or the Reinvest in Minnesota program under sections 103F.501 to 
65.19 	103F.535 or the federal Conservation Reserve Program as contained in Public Law 99-198 
65.20 	or a similar state or federal conservation program if the property was classified as agricultural 
65.21 	(i) under this subdivision for taxes payable in 2003 because of its enrollment in a qualifying 
65.22 	program and the land remains enrolled or (ii) in the year prior to its enrollment. For purposes 
65.23 	of this section, a local conservation program means a program administered by a town, 
65.24 	statutory or home rule charter city, or county, including a watershed district, water 
65.25 	management organization, or soil and water conservation district, in which landowners 
65.26 	voluntarily enroll land and receive incentive payments equal to at least $50 per acre in 
65.27 	exchange for use or other restrictions placed on the land. In order for property to qualify 
65.28 	under the local conservation program provision, a taxpayer must apply to the assessor by 
65.29 	February 1 of the assessment year and must submit the information required by the assessor, 
65.30 	including but not limited to a copy of the program requirements, the specific agreement 
65.31 	between the land owner and the local agency, if applicable, and a map of the conservation 
65.32 	area. Agricultural classification shall not be based upon the market value of any residential 
65.33 	structures on the parcel or contiguous parcels under the same ownership.
66.1 	"Contiguous acreage," for purposes of this paragraph, means all of, or a contiguous 
66.2 	portion of, a tax parcel as described in section 272.193, or all of, or a contiguous portion 
66.3 	of, a set of contiguous tax parcels under that section that are owned by the same person.
66.4 	(f) Agricultural land under this section also includes:
66.5 	(1) contiguous acreage that is less than ten acres in size and exclusively used in the 
66.6 	preceding year for raising or cultivating agricultural products; or
66.7 	(2) contiguous acreage that contains a residence and is less than 11 acres in size, if the 
66.8 	contiguous acreage exclusive of the house, garage, and surrounding one acre of land was 
66.9 	used in the preceding year for one or more of the following three uses:
66.10 	(i) for an intensive grain drying or storage operation, or for intensive machinery or 
66.11 	equipment storage activities used to support agricultural activities on other parcels of property 
66.12 	operated by the same farming entity;
66.13 	(ii) as a nursery, provided that only those acres used intensively to produce nursery stock 
66.14 	are considered agricultural land; or
66.15 	(iii) for intensive market farming; for purposes of this paragraph, "market farming" 
66.16 	means the cultivation of one or more fruits or vegetables or production of animal or other 
66.17 	agricultural products for sale to local markets by the farmer or an organization with which 
66.18 	the farmer is affiliated.
66.19 	"Contiguous acreage," for purposes of this paragraph, means all of a tax parcel as 
66.20 	described in section 272.193, or all of a set of contiguous tax parcels under that section that 
66.21 	are owned by the same person.
66.22 	(g) Land shall be classified as agricultural even if all or a portion of the agricultural use 
66.23 	of that property is the leasing to, or use by another person for agricultural purposes.
66.24 	Classification under this subdivision is not determinative for qualifying under section 
66.25 	273.111.
66.26 	(h) The property classification under this section supersedes, for property tax purposes 
66.27 	only, any locally administered agricultural policies or land use restrictions that define 
66.28 	minimum or maximum farm acreage.
66.29 	(i) The term "agricultural products" as used in this subdivision includes production for 
66.30 	sale of:
67.1 	(1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing 
67.2 	animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, bees, 
67.3 	and apiary products by the owner;
67.4 	(2) fish bred aquacultural products for sale and consumption, as defined under section 
67.5 	17.47, if the fish breeding aquaculture occurs on land zoned for agricultural use;
67.6 	(3) the commercial boarding of horses, which may include related horse training and 
67.7 	riding instruction, if the boarding is done on property that is also used for raising pasture 
67.8 	to graze horses or raising or cultivating other agricultural products as defined in clause (1);
67.9 	(4) property which is owned and operated by nonprofit organizations used for equestrian 
67.10 	activities, excluding racing;
67.11 	(5) game birds and waterfowl bred and raised (i) on a game farm licensed under section 
67.12 	97A.105, provided that the annual licensing report to the Department of Natural Resources, 
67.13 	which must be submitted annually by March 30 to the assessor, indicates that at least 500 
67.14 	birds were raised or used for breeding stock on the property during the preceding year and 
67.15 	that the owner provides a copy of the owner's most recent schedule F; or (ii) for use on a 
67.16 	shooting preserve licensed under section 97A.115;
67.17 	(6) insects primarily bred to be used as food for animals;
67.18 	(7) trees, grown for sale as a crop, including short rotation woody crops, and not sold 
67.19 	for timber, lumber, wood, or wood products; and
67.20 	(8) maple syrup taken from trees grown by a person licensed by the Minnesota 
67.21 	Department of Agriculture under chapter 28A as a food processor.
67.22 	(j) If a parcel used for agricultural purposes is also used for commercial or industrial 
67.23 	purposes, including but not limited to:
67.24 	(1) wholesale and retail sales;
67.25 	(2) processing of raw agricultural products or other goods;
67.26 	(3) warehousing or storage of processed goods; and
67.27 	(4) office facilities for the support of the activities enumerated in clauses (1), (2), and 
67.28 	(3),
67.29 	the assessor shall classify the part of the parcel used for agricultural purposes as class 1b, 
67.30 	2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its use. 
67.31 	The grading, sorting, and packaging of raw agricultural products for first sale is considered 
67.32 	an agricultural purpose. A greenhouse or other building where horticultural or nursery 
68.1 	products are grown that is also used for the conduct of retail sales must be classified as 
68.2 	agricultural if it is primarily used for the growing of horticultural or nursery products from 
68.3 	seed, cuttings, or roots and occasionally as a showroom for the retail sale of those products. 
68.4 	Use of a greenhouse or building only for the display of already grown horticultural or nursery 
68.5 	products does not qualify as an agricultural purpose.
68.6 	(k) The assessor shall determine and list separately on the records the market value of 
68.7 	the homestead dwelling and the one acre of land on which that dwelling is located. If any 
68.8 	farm buildings or structures are located on this homesteaded acre of land, their market value 
68.9 	shall not be included in this separate determination.
68.10 	(l) Class 2d airport landing area consists of a landing area or public access area of a 
68.11 	privately owned public use airport. It has a classification rate of one percent of market value. 
68.12 	To qualify for classification under this paragraph, a privately owned public use airport must 
68.13 	be licensed as a public airport under section 360.018. For purposes of this paragraph, "landing 
68.14 	area" means that part of a privately owned public use airport properly cleared, regularly 
68.15 	maintained, and made available to the public for use by aircraft and includes runways, 
68.16 	taxiways, aprons, and sites upon which are situated landing or navigational aids. A landing 
68.17 	area also includes land underlying both the primary surface and the approach surfaces that 
68.18 	comply with all of the following:
68.19 	(i) the land is properly cleared and regularly maintained for the primary purposes of the 
68.20 	landing, taking off, and taxiing of aircraft; but that portion of the land that contains facilities 
68.21 	for servicing, repair, or maintenance of aircraft is not included as a landing area;
68.22 	(ii) the land is part of the airport property; and
68.23 	(iii) the land is not used for commercial or residential purposes.
68.24 	The land contained in a landing area under this paragraph must be described and certified 
68.25 	by the commissioner of transportation. The certification is effective until it is modified, or 
68.26 	until the airport or landing area no longer meets the requirements of this paragraph. For 
68.27 	purposes of this paragraph, "public access area" means property used as an aircraft parking 
68.28 	ramp, apron, or storage hangar, or an arrival and departure building in connection with the 
68.29 	airport.
68.30 	(m) Class 2e consists of land with a commercial aggregate deposit that is not actively 
68.31 	being mined and is not otherwise classified as class 2a or 2b, provided that the land is not 
68.32 	located in a county that has elected to opt-out of the aggregate preservation program as 
68.33 	provided in section 273.1115, subdivision 6. It has a classification rate of one percent of 
68.34 	market value. To qualify for classification under this paragraph, the property must be at 
69.1 	least ten contiguous acres in size and the owner of the property must record with the county 
69.2 	recorder of the county in which the property is located an affidavit containing:
69.3 	(1) a legal description of the property;
69.4 	(2) a disclosure that the property contains a commercial aggregate deposit that is not 
69.5 	actively being mined but is present on the entire parcel enrolled;
69.6 	(3) documentation that the conditional use under the county or local zoning ordinance 
69.7 	of this property is for mining; and
69.8 	(4) documentation that a permit has been issued by the local unit of government or the 
69.9 	mining activity is allowed under local ordinance. The disclosure must include a statement 
69.10 	from a registered professional geologist, engineer, or soil scientist delineating the deposit 
69.11 	and certifying that it is a commercial aggregate deposit.
69.12 	For purposes of this section and section 273.1115, "commercial aggregate deposit" 
69.13 	means a deposit that will yield crushed stone or sand and gravel that is suitable for use as 
69.14 	a construction aggregate; and "actively mined" means the removal of top soil and overburden 
69.15 	in preparation for excavation or excavation of a commercial deposit.
69.16 	(n) When any portion of the property under this subdivision or subdivision 22 begins to 
69.17 	be actively mined, the owner must file a supplemental affidavit within 60 days from the 
69.18 	day any aggregate is removed stating the number of acres of the property that is actively 
69.19 	being mined. The acres actively being mined must be (1) valued and classified under 
69.20 	subdivision 24 in the next subsequent assessment year, and (2) removed from the aggregate 
69.21 	resource preservation property tax program under section 273.1115, if the land was enrolled 
69.22 	in that program. Copies of the original affidavit and all supplemental affidavits must be 
69.23 	filed with the county assessor, the local zoning administrator, and the Department of Natural 
69.24 	Resources, Division of Land and Minerals. A supplemental affidavit must be filed each 
69.25 	time a subsequent portion of the property is actively mined, provided that the minimum 
69.26 	acreage change is five acres, even if the actual mining activity constitutes less than five 
69.27 	acres.
69.28 	(o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are not 
69.29 	rules and are exempt from the rulemaking provisions of chapter 14, and the provisions in 
69.30 	section 14.386 concerning exempt rules do not apply.

69.31 	EFFECTIVE DATE. This section is effective beginning with assessment year 2018.

70.1 	Sec. 12. Minnesota Statutes 2016, section 273.13, subdivision 25, is amended to read:
70.2 		Subd. 25.Class 4. (a) Class 4a is residential real estate containing four or more units 
70.3 	and used or held for use by the owner or by the tenants or lessees of the owner as a residence 
70.4 	for rental periods of 30 days or more, excluding property qualifying for class 4d. Class 4a 
70.5 	also includes hospitals licensed under sections 144.50 to 144.56, other than hospitals exempt 
70.6 	under section 272.02, and contiguous property used for hospital purposes, without regard 
70.7 	to whether the property has been platted or subdivided. The market value of class 4a property 
70.8 	has a classification rate of 1.25 percent.
70.9 	(b) Class 4b includes:
70.10 	(1) residential real estate containing less than four units that does not qualify as class 
70.11 	4bb, other than seasonal residential recreational property;
70.12 	(2) manufactured homes not classified under any other provision;
70.13 	(3) a dwelling, garage, and surrounding one acre of property on a nonhomestead farm 
70.14 	classified under subdivision 23, paragraph (b) containing two or three units; and
70.15 	(4) unimproved property that is classified residential as determined under subdivision 
70.16 	33.
70.17 	The market value of class 4b property has a classification rate of 1.25 percent.
70.18 	(c) Class 4bb includes:
70.19 	(1) nonhomestead residential real estate containing one unit, other than seasonal 
70.20 	residential recreational property, and;
70.21 	(2) a single family dwelling, garage, and surrounding one acre of property on a 
70.22 	nonhomestead farm classified under subdivision 23, paragraph (b).; and
70.23 	(3) a condominium-type storage unit having an individual property identification number 
70.24 	that is not used for a commercial purpose.
70.25 	Class 4bb property has the same classification rates as class 1a property under subdivision 
70.26 	22.
70.27 	Property that has been classified as seasonal residential recreational property at any time 
70.28 	during which it has been owned by the current owner or spouse of the current owner does 
70.29 	not qualify for class 4bb.
70.30 	(d) Class 4c property includes:
71.1 	(1) except as provided in subdivision 22, paragraph (c), real and personal property 
71.2 	devoted to commercial temporary and seasonal residential occupancy for recreation purposes, 
71.3 	for not more than 250 days in the year preceding the year of assessment. For purposes of 
71.4 	this clause, property is devoted to a commercial purpose on a specific day if any portion of 
71.5 	the property is used for residential occupancy, and a fee is charged for residential occupancy. 
71.6 	Class 4c property under this clause must contain three or more rental units. A "rental unit" 
71.7 	is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site 
71.8 	equipped with water and electrical hookups for recreational vehicles. A camping pad offered 
71.9 	for rent by a property that otherwise qualifies for class 4c under this clause is also class 4c 
71.10 	under this clause regardless of the term of the rental agreement, as long as the use of the 
71.11 	camping pad does not exceed 250 days. In order for a property to be classified under this 
71.12 	clause, either (i) the business located on the property must provide recreational activities, 
71.13 	at least 40 percent of the annual gross lodging receipts related to the property must be from 
71.14 	business conducted during 90 consecutive days, and either (A) at least 60 percent of all paid 
71.15 	bookings by lodging guests during the year must be for periods of at least two consecutive 
71.16 	nights; or (B) at least 20 percent of the annual gross receipts must be from charges for 
71.17 	providing recreational activities, or (ii) the business must contain 20 or fewer rental units, 
71.18 	and must be located in a township or a city with a population of 2,500 or less located outside 
71.19 	the metropolitan area, as defined under section 473.121, subdivision 2, that contains a portion 
71.20 	of a state trail administered by the Department of Natural Resources. For purposes of item 
71.21 	(i)(A), a paid booking of five or more nights shall be counted as two bookings. Class 4c 
71.22 	property also includes commercial use real property used exclusively for recreational 
71.23 	purposes in conjunction with other class 4c property classified under this clause and devoted 
71.24 	to temporary and seasonal residential occupancy for recreational purposes, up to a total of 
71.25 	two acres, provided the property is not devoted to commercial recreational use for more 
71.26 	than 250 days in the year preceding the year of assessment and is located within two miles 
71.27 	of the class 4c property with which it is used. In order for a property to qualify for 
71.28 	classification under this clause, the owner must submit a declaration to the assessor 
71.29 	designating the cabins or units occupied for 250 days or less in the year preceding the year 
71.30 	of assessment by January 15 of the assessment year. Those cabins or units and a proportionate 
71.31 	share of the land on which they are located must be designated class 4c under this clause 
71.32 	as otherwise provided. The remainder of the cabins or units and a proportionate share of 
71.33 	the land on which they are located will be designated as class 3a. The owner of property 
71.34 	desiring designation as class 4c property under this clause must provide guest registers or 
71.35 	other records demonstrating that the units for which class 4c designation is sought were not 
71.36 	occupied for more than 250 days in the year preceding the assessment if so requested. The 
72.1 	portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center 
72.2 	or meeting room, and (5) other nonresidential facility operated on a commercial basis not 
72.3 	directly related to temporary and seasonal residential occupancy for recreation purposes 
72.4 	does not qualify for class 4c. For the purposes of this paragraph, "recreational activities" 
72.5 	means renting ice fishing houses, boats and motors, snowmobiles, downhill or cross-country 
72.6 	ski equipment; providing marina services, launch services, or guide services; or selling bait 
72.7 	and fishing tackle;
72.8 	(2) qualified property used as a golf course if:
72.9 	(i) it is open to the public on a daily fee basis. It may charge membership fees or dues, 
72.10 	but a membership fee may not be required in order to use the property for golfing, and its 
72.11 	green fees for golfing must be comparable to green fees typically charged by municipal 
72.12 	courses; and
72.13 	(ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d).
72.14 	A structure used as a clubhouse, restaurant, or place of refreshment in conjunction with 
72.15 	the golf course is classified as class 3a property;
72.16 	(3) real property up to a maximum of three acres of land owned and used by a nonprofit 
72.17 	community service oriented organization and not used for residential purposes on either a 
72.18 	temporary or permanent basis, provided that:
72.19 	(i) the property is not used for a revenue-producing activity for more than six days in 
72.20 	the calendar year preceding the year of assessment; or
72.21 	(ii) the organization makes annual charitable contributions and donations at least equal 
72.22 	to the property's previous year's property taxes and the property is allowed to be used for 
72.23 	public and community meetings or events for no charge, as appropriate to the size of the 
72.24 	facility.
72.25 	For purposes of this clause:
72.26 	(A) "charitable contributions and donations" has the same meaning as lawful gambling 
72.27 	purposes under section 349.12, subdivision 25, excluding those purposes relating to the 
72.28 	payment of taxes, assessments, fees, auditing costs, and utility payments;
72.29 	(B) "property taxes" excludes the state general tax;
72.30 	(C) a "nonprofit community service oriented organization" means any corporation, 
72.31 	society, association, foundation, or institution organized and operated exclusively for 
72.32 	charitable, religious, fraternal, civic, or educational purposes, and which is exempt from 
73.1 	federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal 
73.2 	Revenue Code; and
73.3 	(D) "revenue-producing activities" shall include but not be limited to property or that 
73.4 	portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt 
73.5 	liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling 
73.6 	alley, a retail store, gambling conducted by organizations licensed under chapter 349, an 
73.7 	insurance business, or office or other space leased or rented to a lessee who conducts a 
73.8 	for-profit enterprise on the premises.
73.9 	Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The 
73.10 	use of the property for social events open exclusively to members and their guests for periods 
73.11 	of less than 24 hours, when an admission is not charged nor any revenues are received by 
73.12 	the organization shall not be considered a revenue-producing activity.
73.13 	The organization shall maintain records of its charitable contributions and donations 
73.14 	and of public meetings and events held on the property and make them available upon 
73.15 	request any time to the assessor to ensure eligibility. An organization meeting the requirement 
73.16 	under item (ii) must file an application by May 1 with the assessor for eligibility for the 
73.17 	current year's assessment. The commissioner shall prescribe a uniform application form 
73.18 	and instructions;
73.19 	(4) postsecondary student housing of not more than one acre of land that is owned by a 
73.20 	nonprofit corporation organized under chapter 317A and is used exclusively by a student 
73.21 	cooperative, sorority, or fraternity for on-campus housing or housing located within two 
73.22 	miles of the border of a college campus;
73.23 	(5)(i) manufactured home parks as defined in section 327.14, subdivision 3, excluding 
73.24 	manufactured home parks described in section 273.124, subdivision 3a items (ii) and (iii), 
73.25 	and (ii) manufactured home parks as defined in section 327.14, subdivision 3, that are 
73.26 	described in section 273.124, subdivision 3a, and (iii) class I manufactured home parks as 
73.27 	defined  in section 327C.01, subdivision 13;
73.28 	(6) real property that is actively and exclusively devoted to indoor fitness, health, social, 
73.29 	recreational, and related uses, is owned and operated by a not-for-profit corporation, and is 
73.30 	located within the metropolitan area as defined in section 473.121, subdivision 2;
73.31 	(7) a leased or privately owned noncommercial aircraft storage hangar not exempt under 
73.32 	section 272.01, subdivision 2, and the land on which it is located, provided that:
74.1 	(i) the land is on an airport owned or operated by a city, town, county, Metropolitan 
74.2 	Airports Commission, or group thereof; and
74.3 	(ii) the land lease, or any ordinance or signed agreement restricting the use of the leased 
74.4 	premise, prohibits commercial activity performed at the hangar.
74.5 	If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must be 
74.6 	filed by the new owner with the assessor of the county where the property is located within 
74.7 	60 days of the sale;
74.8 	(8) a privately owned noncommercial aircraft storage hangar not exempt under section 
74.9 	272.01, subdivision 2, and the land on which it is located, provided that:
74.10 	(i) the land abuts a public airport; and
74.11 	(ii) the owner of the aircraft storage hangar provides the assessor with a signed agreement 
74.12 	restricting the use of the premises, prohibiting commercial use or activity performed at the 
74.13 	hangar; and
74.14 	(9) residential real estate, a portion of which is used by the owner for homestead purposes, 
74.15 	and that is also a place of lodging, if all of the following criteria are met:
74.16 	(i) rooms are provided for rent to transient guests that generally stay for periods of 14 
74.17 	or fewer days;
74.18 	(ii) meals are provided to persons who rent rooms, the cost of which is incorporated in 
74.19 	the basic room rate;
74.20 	(iii) meals are not provided to the general public except for special events on fewer than 
74.21 	seven days in the calendar year preceding the year of the assessment; and
74.22 	(iv) the owner is the operator of the property.
74.23 	The market value subject to the 4c classification under this clause is limited to five rental 
74.24 	units. Any rental units on the property in excess of five, must be valued and assessed as 
74.25 	class 3a. The portion of the property used for purposes of a homestead by the owner must 
74.26 	be classified as class 1a property under subdivision 22;
74.27 	(10) real property up to a maximum of three acres and operated as a restaurant as defined 
74.28 	under section 157.15, subdivision 12, provided it: (i) is located on a lake as defined under 
74.29 	section 103G.005, subdivision 15, paragraph (a), clause (3); and (ii) is either devoted to 
74.30 	commercial purposes for not more than 250 consecutive days, or receives at least 60 percent 
74.31 	of its annual gross receipts from business conducted during four consecutive months. Gross 
74.32 	receipts from the sale of alcoholic beverages must be included in determining the property's 
75.1 	qualification under item (ii). The property's primary business must be as a restaurant and 
75.2 	not as a bar. Gross receipts from gift shop sales located on the premises must be excluded. 
75.3 	Owners of real property desiring 4c classification under this clause must submit an annual 
75.4 	declaration to the assessor by February 1 of the current assessment year, based on the 
75.5 	property's relevant information for the preceding assessment year;
75.6 	(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used as 
75.7 	a marina, as defined in section 86A.20, subdivision 5, which is made accessible to the public 
75.8 	and devoted to recreational use for marina services. The marina owner must annually provide 
75.9 	evidence to the assessor that it provides services, including lake or river access to the public 
75.10 	by means of an access ramp or other facility that is either located on the property of the 
75.11 	marina or at a publicly owned site that abuts the property of the marina. No more than 800 
75.12 	feet of lakeshore may be included in this classification. Buildings used in conjunction with 
75.13 	a marina for marina services, including but not limited to buildings used to provide food 
75.14 	and beverage services, fuel, boat repairs, or the sale of bait or fishing tackle, are classified 
75.15 	as class 3a property; and
75.16 	(12) real and personal property devoted to noncommercial temporary and seasonal 
75.17 	residential occupancy for recreation purposes.
75.18 	Class 4c property has a classification rate of 1.5 percent of market value, except that (i) 
75.19 	each parcel of noncommercial seasonal residential recreational property under clause (12) 
75.20 	has the same classification rates as class 4bb property, (ii) manufactured home parks assessed 
75.21 	under clause (5), item (i), have the same classification rate as class 4b property, and the 
75.22 	market value of manufactured home parks assessed under clause (5), item (ii), has have a 
75.23 	classification rate of 0.75 percent if more than 50 percent of the lots in the park are occupied 
75.24 	by shareholders in the cooperative corporation or association and a classification rate of 
75.25 	one percent if 50 percent or less of the lots are so occupied, and class I manufactured home 
75.26 	parks as defined in section 327C.01, subdivision 13, have a classification rate of 1.0 percent,
75.27 	(iii) commercial-use seasonal residential recreational property and marina recreational land 
75.28 	as described in clause (11), has a classification rate of one percent for the first $500,000 of 
75.29 	market value, and 1.25 percent for the remaining market value, (iv) the market value of 
75.30 	property described in clause (4) has a classification rate of one percent, (v) the market value 
75.31 	of property described in clauses (2), (6), and (10) has a classification rate of 1.25 percent, 
75.32 	and (vi) that portion of the market value of property in clause (9) qualifying for class 4c 
75.33 	property has a classification rate of 1.25 percent, and (vii) property qualifying for 
75.34 	classification under clause (3) that is owned or operated by a congressionally chartered 
75.35 	veterans organization has a classification rate of one percent. The commissioner of veterans 
76.1 	affairs must provide a list of congressionally chartered veterans organizations to the 
76.2 	commissioner of revenue by June 30, 2017, and by January 1, 2018, and each year thereafter.
76.3 	(e) Class 4d property is qualifying low-income rental housing certified to the assessor 
76.4 	by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion of 
76.5 	the units in the building qualify as low-income rental housing units as certified under section 
76.6 	273.128, subdivision 3, only the proportion of qualifying units to the total number of units 
76.7 	in the building qualify for class 4d. The remaining portion of the building shall be classified 
76.8 	by the assessor based upon its use. Class 4d also includes the same proportion of land as 
76.9 	the qualifying low-income rental housing units are to the total units in the building. For all 
76.10 	properties qualifying as class 4d, the market value determined by the assessor must be based 
76.11 	on the normal approach to value using normal unrestricted rents.
76.12 	(f) The first tier of market value of class 4d property has a classification rate of 0.75 
76.13 	percent. The remaining value of class 4d property has a classification rate of 0.25 percent. 
76.14 	For the purposes of this paragraph, the "first tier of market value of class 4d property" means 
76.15 	the market value of each housing unit up to the first tier limit. For the purposes of this 
76.16 	paragraph, all class 4d property value must be assigned to individual housing units. The 
76.17 	first tier limit is $100,000 for assessment year 2014. For subsequent years, the limit is 
76.18 	adjusted each year by the average statewide change in estimated market value of property 
76.19 	classified as class 4a and 4d under this section for the previous assessment year, excluding 
76.20 	valuation change due to new construction, rounded to the nearest $1,000, provided, however, 
76.21 	that the limit may never be less than $100,000. Beginning with assessment year 2015, the 
76.22 	commissioner of revenue must certify the limit for each assessment year by November 1 
76.23 	of the previous year.

76.24 	EFFECTIVE DATE. (a) Except as provided in paragraphs (b) and (c), this section is 
76.25 	effective beginning with taxes assessed in 2017 and payable in 2018.
76.26 	(b) The amendment to paragraph (d), clause (5), and the amendment to item (ii) of the 
76.27 	unlettered paragraph after paragraph (d), clause (12), are effective for taxes payable in 2019 
76.28 	and thereafter, but only become effective if the class I manufactured home park program 
76.29 	in chapter 327C is enacted during the 2017 legislative session.
76.30 	(c) The amendment to paragraph (c), clause (3), is effective beginning with taxes payable 
76.31 	in 2019.

77.1 	Sec. 13. Minnesota Statutes 2016, section 273.13, subdivision 34, is amended to read:
77.2 		Subd. 34.Homestead of disabled veteran or family caregiver. (a) All or a portion of 
77.3 	the market value of property owned by a veteran and serving as the veteran's homestead 
77.4 	under this section is excluded in determining the property's taxable market value if the 
77.5 	veteran has a service-connected disability of 70 percent or more as certified by the United 
77.6 	States Department of Veterans Affairs. To qualify for exclusion under this subdivision, the 
77.7 	veteran must have been honorably discharged from the United States armed forces, as 
77.8 	indicated by United States Government Form DD214 or other official military discharge 
77.9 	papers.
77.10 	(b)(1) For a disability rating of 70 percent or more, $150,000 of market value is excluded, 
77.11 	except as provided in clause (2); and
77.12 	(2) for a total (100 percent) and permanent disability, $300,000 of market value is 
77.13 	excluded.
77.14 	(c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b), clause 
77.15 	(2), predeceases the veteran's spouse, and if upon the death of the veteran the spouse holds 
77.16 	the legal or beneficial title to the homestead and permanently resides there, the exclusion 
77.17 	shall carry over to the benefit of the veteran's spouse for the current taxes payable year and 
77.18 	for eight additional taxes payable years or until such time as the spouse remarries, or sells, 
77.19 	transfers, or otherwise disposes of the property, whichever comes first. Qualification under 
77.20 	this paragraph requires an annual application under paragraph (h), and a spouse must notify 
77.21 	the assessor if there is a change in the spouse's marital status, ownership of the property, or 
77.22 	use of the property as a permanent residence.
77.23 	(d) If the spouse of a member of any branch or unit of the United States armed forces 
77.24 	who dies due to a service-connected cause while serving honorably in active service, as 
77.25 	indicated on United States Government Form DD1300 or DD2064, holds the legal or 
77.26 	beneficial title to a homestead and permanently resides there, the spouse is entitled to the 
77.27 	benefit described in paragraph (b), clause (2), for eight taxes payable years, or until such 
77.28 	time as the spouse remarries or sells, transfers, or otherwise disposes of the property, 
77.29 	whichever comes first.
77.30 	(e) If a veteran meets the disability criteria of paragraph (a) but does not own property 
77.31 	classified as homestead in the state of Minnesota, then the homestead of the veteran's primary 
77.32 	family caregiver, if any, is eligible for the exclusion that the veteran would otherwise qualify 
77.33 	for under paragraph (b).
78.1 	(f) In the case of an agricultural homestead, only the portion of the property consisting 
78.2 	of the house and garage and immediately surrounding one acre of land qualifies for the 
78.3 	valuation exclusion under this subdivision.
78.4 	(g) A property qualifying for a valuation exclusion under this subdivision is not eligible 
78.5 	for the market value exclusion under subdivision 35, or classification under subdivision 22, 
78.6 	paragraph (b).
78.7 	(h) To qualify for a valuation exclusion under this subdivision a property owner must 
78.8 	apply to the assessor by July 1 of each assessment year, except that an annual reapplication 
78.9 	is not required once a property has been accepted for a valuation exclusion under paragraph 
78.10 	(a) and qualifies for the benefit described in paragraph (b), clause (2), and the property 
78.11 	continues to qualify until there is a change in ownership of the first assessment year for 
78.12 	which the exclusion is sought. For an application received after July 1 of any calendar year, 
78.13 	the exclusion shall become effective for the following assessment year. Except as provided 
78.14 	in paragraph (c), the owner of a property that has been accepted for a valuation exclusion 
78.15 	must notify the assessor if there is a change in ownership of the property or in the use of 
78.16 	the property as a homestead.
78.17 	(i) A first-time application by a qualifying spouse for the market value exclusion under 
78.18 	paragraph (d) must be made any time within two years of the death of the service member.
78.19 	(j) For purposes of this subdivision:
78.20 	(1) "active service" has the meaning given in section 190.05;
78.21 	(2) "own" means that the person's name is present as an owner on the property deed;
78.22 	(3) "primary family caregiver" means a person who is approved by the secretary of the 
78.23 	United States Department of Veterans Affairs for assistance as the primary provider of 
78.24 	personal care services for an eligible veteran under the Program of Comprehensive Assistance 
78.25 	for Family Caregivers, codified as United States Code, title 38, section 1720G; and
78.26 	(4) "veteran" has the meaning given the term in section 197.447.
78.27 	(k) If a veteran dying after December 31, 2011, did not apply for or receive the exclusion 
78.28 	under paragraph (b), clause (2), before dying, the veteran's spouse is entitled to the benefit 
78.29 	under paragraph (b), clause (2), for eight taxes payable years or until the spouse remarries 
78.30 	or sells, transfers, or otherwise disposes of the property if:
78.31 	(1) the spouse files a first-time application within two years of the death of the service 
78.32 	member or by June 1, 2019, whichever is later;
79.1 	(2) upon the death of the veteran, the spouse holds the legal or beneficial title to the 
79.2 	homestead and permanently resides there;
79.3 	(3) the veteran met the honorable discharge requirements of paragraph (a); and
79.4 	(4) the United States Department of Veterans Affairs certifies that:
79.5 	(i) the veteran met the total (100 percent) and permanent disability requirement under 
79.6 	paragraph (b), clause (2); or
79.7 	(ii) the spouse has been awarded dependency and indemnity compensation.
79.8 	(l) The purpose of this provision of law providing a level of homestead property tax 
79.9 	relief for gravely disabled veterans, their primary family caregivers, and their surviving 
79.10 	spouses is to help ease the burdens of war for those among our state's citizens who bear 
79.11 	those burdens most heavily.
79.12 	(m) By July 1, the county veterans service officer must certify the disability rating and 
79.13 	permanent address of each veteran receiving the benefit under paragraph (b) to the assessor.

79.14 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2018, 
79.15 	provided that, for taxes payable in 2018, the first-time application required under paragraph 
79.16 	(k) is due by August 1, 2017.

79.17 	Sec. 14. Minnesota Statutes 2016, section 275.025, subdivision 1, is amended to read:
79.18 		Subdivision 1.Levy amount. The state general levy is levied against 
79.19 	commercial-industrial property and seasonal residential recreational property, as defined 
79.20 	in this section. The state general levy base amount is $592,000,000 for commercial-industrial 
79.21 	property is $784,590,000 for taxes payable in 2002 2018 and thereafter. For taxes payable 
79.22 	in subsequent years, the levy base amount is increased each year by multiplying the levy 
79.23 	base amount for the prior year by the sum of one plus the rate of increase, if any, in the 
79.24 	implicit price deflator for government consumption expenditures and gross investment for 
79.25 	state and local governments prepared by the Bureau of Economic Analysts of the United 
79.26 	States Department of Commerce for the 12-month period ending March 31 of the year prior 
79.27 	to the year the taxes are payable. The state general levy for seasonal-recreational property 
79.28 	is $44,190,000 for taxes payable in 2018 and thereafter. The tax under this section is not 
79.29 	treated as a local tax rate under section 469.177 and is not the levy of a governmental unit 
79.30 	under chapters 276A and 473F.
79.31 	The commissioner shall increase or decrease the preliminary or final rate for a year as 
79.32 	necessary to account for errors and tax base changes that affected a preliminary or final rate 
80.1 	for either of the two preceding years. Adjustments are allowed to the extent that the necessary 
80.2 	information is available to the commissioner at the time the rates for a year must be certified, 
80.3 	and for the following reasons:
80.4 	(1) an erroneous report of taxable value by a local official;
80.5 	(2) an erroneous calculation by the commissioner; and
80.6 	(3) an increase or decrease in taxable value for commercial-industrial or seasonal 
80.7 	residential recreational property reported on the abstracts of tax lists submitted under section 
80.8 	275.29 that was not reported on the abstracts of assessment submitted under section 270C.89
80.9 	for the same year.
80.10 	The commissioner may, but need not, make adjustments if the total difference in the tax 
80.11 	levied for the year would be less than $100,000.

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

80.13 	Sec. 15. Minnesota Statutes 2016, section 275.025, subdivision 2, is amended to read:
80.14 		Subd. 2.Commercial-industrial tax capacity. For the purposes of this section, 
80.15 	"commercial-industrial tax capacity" means the tax capacity of all taxable property classified 
80.16 	as class 3 or class 5(1) under section 273.13, except for excluding:
80.17 	(1) the tax capacity attributable to the first $100,000 of market value of each parcel of 
80.18 	commercial-industrial property as defined under section 273.13, subdivision 24, clauses (1) 
80.19 	and (2);
80.20 	(2) electric generation attached machinery under class 3; and
80.21 	(3) property described in section 473.625.
80.22 	County commercial-industrial tax capacity amounts are not adjusted for the captured 
80.23 	net tax capacity of a tax increment financing district under section 469.177, subdivision 2, 
80.24 	the net tax capacity of transmission lines deducted from a local government's total net tax 
80.25 	capacity under section 273.425, or fiscal disparities contribution and distribution net tax 
80.26 	capacities under chapter 276A or 473F. For purposes of this subdivision, the procedures 
80.27 	for determining eligibility for tier 1 under section 273.13, subdivision 24, clauses (1) and 
80.28 	(2), shall apply in determining the portion of a property eligible to be considered within the 
80.29 	first $100,000 of market value.

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

81.1 	Sec. 16. Minnesota Statutes 2016, section 275.025, subdivision 4, is amended to read:
81.2 		Subd. 4.Apportionment and levy of state general tax. Ninety-five percent of The 
81.3 	state general tax must be levied by applying a uniform rate to all commercial-industrial tax 
81.4 	capacity and five percent of the state general tax must be levied by applying a uniform rate 
81.5 	to all seasonal residential recreational tax capacity. On or before October 1 each year, the 
81.6 	commissioner of revenue shall certify the preliminary state general levy rates to each county 
81.7 	auditor that must be used to prepare the notices of proposed property taxes for taxes payable 
81.8 	in the following year. By January 1 of each year, the commissioner shall certify the final 
81.9 	state general levy rate rates to each county auditor that shall be used in spreading taxes.

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

81.11 	Sec. 17. Minnesota Statutes 2016, section 275.025, is amended by adding a subdivision 
81.12 	to read:
81.13 		Subd. 5.Underserved municipalities distribution. (a) Any municipality that:
81.14 	(1) lies wholly or partially within the metropolitan area as defined under section 473.121, 
81.15 	subdivision 2, but outside the transit taxing district as defined under section 473.446, 
81.16 	subdivision 2; and
81.17 	(2) has a net fiscal disparities contribution equal to or greater than eight percent of its 
81.18 	total taxable net tax capacity,
81.19 	is eligible for a distribution from the proceeds of the state general levy imposed on taxpayers 
81.20 	within the municipality.
81.21 	(b) The distribution is equal to (1) the municipality's net tax capacity tax rate, times (2) 
81.22 	the municipality's net fiscal disparities contribution in excess of eight percent of its total 
81.23 	taxable net tax capacity; provided, however, that the distribution may not exceed the tax 
81.24 	under this section imposed on taxpayers within the municipality. The amount of the 
81.25 	distribution to each municipality must be determined by the commissioner of revenue and 
81.26 	certified to each affected municipality and county by September 1 of the year in which taxes 
81.27 	are payable.
81.28 	(c) The distribution under this subdivision must be paid to the qualifying municipality 
81.29 	by the treasurer of the home county of the municipality by December 1 of the year the taxes 
81.30 	are payable. The amounts distributed under this subdivision must be deducted from the 
81.31 	settlement of the state general levy for the taxes payable year under section 276.112.
81.32 	(d) For purposes of this subdivision, the following terms have the meanings given.
82.1 	(1) "Municipality" means a home rule or statutory city, or a town, except that in the case 
82.2 	of a city that lies only partially within the metropolitan area, municipality means the portion 
82.3 	of the city lying within the metropolitan area.
82.4 	(2) "Net fiscal disparities contribution" means a municipality's fiscal disparities 
82.5 	contribution tax capacity minus its distribution net tax capacity.
82.6 	(3) "Total taxable net tax capacity" means the total net tax capacity of all properties in 
82.7 	the municipality under section 273.13 minus (i) the net fiscal disparities contribution, and 
82.8 	(ii) the municipality's tax increment captured net tax capacity.

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

82.10 	Sec. 18. Minnesota Statutes 2016, section 275.065, subdivision 1, is amended to read:
82.11 		Subdivision 1.Proposed levy. (a) Notwithstanding any law or charter to the contrary, 
82.12 	on or before September 30, each county and each, home rule charter or statutory city, town, 
82.13 	and special taxing district, excluding the Metropolitan Council and the Metropolitan Mosquito 
82.14 	Control Commission, shall certify to the county auditor the proposed property tax levy for 
82.15 	taxes payable in the following year. For towns, the final certified levy shall also be considered 
82.16 	the proposed levy.
82.17 	(b) Notwithstanding any law or charter to the contrary, on or before September 15, each 
82.18 	town and each special taxing district the Metropolitan Council and the Metropolitan Mosquito 
82.19 	Control Commission shall adopt and certify to the county auditor a proposed property tax 
82.20 	levy for taxes payable in the following year. For towns, the final certified levy shall also be 
82.21 	considered the proposed levy.
82.22 	(c) On or before September 30, each school district that has not mutually agreed with 
82.23 	its home county to extend this date shall certify to the county auditor the proposed property 
82.24 	tax levy for taxes payable in the following year. Each school district that has agreed with 
82.25 	its home county to delay the certification of its proposed property tax levy must certify its 
82.26 	proposed property tax levy for the following year no later than October 7. The school district 
82.27 	shall certify the proposed levy as:
82.28 	(1) a specific dollar amount by school district fund, broken down between voter-approved 
82.29 	and non-voter-approved levies and between referendum market value and tax capacity 
82.30 	levies; or
82.31 	(2) the maximum levy limitation certified by the commissioner of education according 
82.32 	to section 126C.48, subdivision 1.
83.1 	(d) If the board of estimate and taxation or any similar board that establishes maximum 
83.2 	tax levies for taxing jurisdictions within a first class city certifies the maximum property 
83.3 	tax levies for funds under its jurisdiction by charter to the county auditor by the date specified 
83.4 	in paragraph (a), the city shall be deemed to have certified its levies for those taxing 
83.5 	jurisdictions.
83.6 	(e) For purposes of this section, "special taxing district" means a special taxing district 
83.7 	as defined in section 275.066. Intermediate school districts that levy a tax under chapter 
83.8 	124 or 136D, joint powers boards established under sections 123A.44 to 123A.446, and 
83.9 	Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special 
83.10 	taxing districts for purposes of this section.
83.11 	(f) At the meeting at which a taxing authority, other than a town, adopts its proposed 
83.12 	tax levy under this subdivision, the taxing authority shall announce the time and place of 
83.13 	its subsequent regularly scheduled meetings at which the budget and levy will be discussed 
83.14 	and at which the public will be allowed to speak. The time and place of those meetings must 
83.15 	be included in the proceedings or summary of proceedings published in the official newspaper 
83.16 	of the taxing authority under section 123B.09, 375.12, or 412.191.

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

83.19 	Sec. 19. Minnesota Statutes 2016, section 275.07, subdivision 1, is amended to read:
83.20 		Subdivision 1.Certification of levy. (a) Except as provided under paragraph (b), the 
83.21 	taxes voted by cities, counties, school districts, and special districts shall be certified by the 
83.22 	proper authorities to the county auditor on or before five working days after December 20 
83.23 	in each year. A town must certify the levy adopted by the town board to the county auditor 
83.24 	by September 1530 each year. If the town board modifies the levy at a special town meeting 
83.25 	after September 15 30, the town board must recertify its levy to the county auditor on or 
83.26 	before five working days after December 20. If a city, town, county, school district, or 
83.27 	special district fails to certify its levy by that date, its levy shall be the amount levied by it 
83.28 	for the preceding year.
83.29 	(b)(i) The taxes voted by counties under sections 103B.241, 103B.245, and 103B.251
83.30 	shall be separately certified by the county to the county auditor on or before five working 
83.31 	days after December 20 in each year. The taxes certified shall not be reduced by the county 
83.32 	auditor by the aid received under section 273.1398, subdivision 3. If a county fails to certify 
83.33 	its levy by that date, its levy shall be the amount levied by it for the preceding year.
84.1 	(ii) For purposes of the proposed property tax notice under section 275.065 and the 
84.2 	property tax statement under section 276.04, for the first year in which the county implements 
84.3 	the provisions of this paragraph, the county auditor shall reduce the county's levy for the 
84.4 	preceding year to reflect any amount levied for water management purposes under clause 
84.5 	(i) included in the county's levy.

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

84.8 	Sec. 20. Minnesota Statutes 2016, section 276.017, subdivision 3, is amended to read:
84.9 		Subd. 3.United States Postal Service postmark Proof of timely payment. The 
84.10 	postmark or registration mark of the United States Postal Service qualifies as proof of timely 
84.11 	mailing for this section. If the payment is sent by United States registered mail, the date of 
84.12 	registration is the postmark date. If the payment is sent by United States certified mail, the 
84.13 	date of the United States Postal Service postmark on the receipt given to the person presenting 
84.14 	the payment for delivery is the date of mailing. Mailing, or the time of mailing, may also 
84.15 	be established by a delivery service's records or other available evidence except that. The 
84.16 	postmark of a private postage meter or an electronic stamp purchased online may not be 
84.17 	used as proof of a timely mailing made under this section.

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

84.19 	Sec. 21. Minnesota Statutes 2016, section 279.01, subdivision 1, is amended to read:
84.20 		Subdivision 1.Due dates; penalties. Except as provided in subdivisions 3 to 5, on May 
84.21 	16 or 21 days after the postmark date on the envelope containing the property tax statement, 
84.22 	whichever is later, a penalty accrues and thereafter is charged upon all unpaid taxes on real 
84.23 	estate on the current lists in the hands of the county treasurer. The (a) When the taxes against 
84.24 	any tract or lot exceed $100, one-half of the amount of tax due must be paid prior to May 
84.25 	16, and the remaining one-half must be paid prior to the following October 16. If either tax 
84.26 	amount is unpaid as of its due date, a penalty is imposed at a rate of two percent on homestead 
84.27 	property until May 31 and four percent on nonhomestead property. If complete payment 
84.28 	has not been made by the first day of the month following either due date, an additional 
84.29 	penalty of two percent on June 1. The penalty on nonhomestead property is at a rate of four 
84.30 	percent until May 31 homestead property  and eight four percent on June 1. This penalty 
84.31 	does not accrue until June 1 of each year, or 21 days after the postmark date on the envelope 
84.32 	containing the property tax statements, whichever is later, on commercial use real property 
84.33 	used for seasonal residential recreational purposes and classified as class 1c or 4c, and on 
85.1 	other commercial use real property classified as class 3a, provided that over 60 percent of 
85.2 	the gross income earned by the enterprise on the class 3a property is earned during the 
85.3 	months of May, June, July, and August. In order for the first half of the tax due on class 3a 
85.4 	property to be paid after May 15 and before June 1, or 21 days after the postmark date on 
85.5 	the envelope containing the property tax statement, whichever is later, without penalty, the 
85.6 	owner of the property must attach an affidavit to the payment attesting to compliance with 
85.7 	the income provision of this subdivision nonhomestead property is imposed. Thereafter, 
85.8 	for both homestead and nonhomestead property, on the first day of each subsequent month 
85.9 	beginning July 1, up to and including October 1 following through December, an additional 
85.10 	penalty of one percent for each month accrues and is charged on all such unpaid taxes 
85.11 	provided that if the due date was extended beyond May 15 as the result of any delay in 
85.12 	mailing property tax statements no additional penalty shall accrue if the tax is paid by the 
85.13 	extended due date. If the tax is not paid by the extended due date, then all penalties that 
85.14 	would have accrued if the due date had been May 15 shall be charged. When the taxes 
85.15 	against any tract or lot exceed $100, one-half thereof may be paid prior to May 16 or 21 
85.16 	days after the postmark date on the envelope containing the property tax statement, whichever 
85.17 	is later; and, if so paid, no penalty attaches; the remaining one-half may be paid at any time 
85.18 	prior to October 16 following, without penalty; but, if not so paid, then a penalty of two 
85.19 	percent accrues thereon for homestead property and a penalty of four percent on 
85.20 	nonhomestead property. Thereafter, for homestead property, on the first day of November 
85.21 	an additional penalty of four percent accrues and on the first day of December following, 
85.22 	an additional penalty of two percent accrues and is charged on all such unpaid taxes. 
85.23 	Thereafter, for nonhomestead property, on the first day of November and December 
85.24 	following, an additional penalty of four percent for each month accrues and is charged on 
85.25 	all such unpaid taxes. If one-half of such taxes are not paid prior to May 16 or 21 days after 
85.26 	the postmark date on the envelope containing the property tax statement, whichever is later, 
85.27 	the same may be paid at any time prior to October 16, with accrued penalties to the date of 
85.28 	payment added, and thereupon no penalty attaches to the remaining one-half until October 
85.29 	16 following the penalty must not exceed eight percent in the case of homestead property, 
85.30 	or 12 percent in the case of nonhomestead property.
85.31 	(b) If the property tax statement was not postmarked prior to April 25, the first half 
85.32 	payment due date in paragraph (a) shall be 21 days from the postmark date of the property 
85.33 	tax statement, and all penalties referenced in paragraph (a) shall be determined with regard 
85.34 	to the later due date.
86.1 	(c) In the case of a tract or lot with taxes of $100 or less, the due date and penalties as 
86.2 	specified in paragraph (a) or (b) for the first half payment shall apply to the entire amount 
86.3 	of the tax due.
86.4 	(d) For commercial use real property used for seasonal residential recreational purposes 
86.5 	and classified as class 1c or 4c, and on other commercial use real property classified as class 
86.6 	3a, provided that over 60 percent of the gross income earned by the enterprise on the class 
86.7 	3a property is earned during the months of May, June, July, and August, the first half 
86.8 	payment is due prior to June 1. For a class 3a property to qualify for the later due date, the 
86.9 	owner of the property must attach an affidavit to the payment attesting to compliance with 
86.10 	the income requirements of this paragraph.
86.11 	(e) This section applies to payment of personal property taxes assessed against 
86.12 	improvements to leased property, except as provided by section 277.01, subdivision 3.
86.13 	(f) A county may provide by resolution that in the case of a property owner that has 
86.14 	multiple tracts or parcels with aggregate taxes exceeding $100, payments may be made in 
86.15 	installments as provided in this subdivision.
86.16 	(g) The county treasurer may accept payments of more or less than the exact amount of 
86.17 	a tax installment due. Payments must be applied first to the oldest installment that is due 
86.18 	but which has not been fully paid. If the accepted payment is less than the amount due, 
86.19 	payments must be applied first to the penalty accrued for the year or the installment being 
86.20 	paid. Acceptance of partial payment of tax does not constitute a waiver of the minimum 
86.21 	payment required as a condition for filing an appeal under section 278.03 or any other law, 
86.22 	nor does it affect the order of payment of delinquent taxes under section 280.39.

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

86.24 	Sec. 22. Minnesota Statutes 2016, section 279.01, subdivision 2, is amended to read:
86.25 		Subd. 2.Abatement of penalty. (a) The county board may, with the concurrence of the 
86.26 	county treasurer, delegate to the county treasurer the power to abate the penalty provided 
86.27 	for late payment of taxes in the current year. Notwithstanding section 270C.86, if any county 
86.28 	board so elects, the county treasurer may abate the penalty on finding that the imposition 
86.29 	of the penalty would be unjust and unreasonable.
86.30 	(b) The county treasurer shall abate the penalty provided for late payment of taxes in 
86.31 	the current year if the property tax payment is delivered by mail to the county treasurer and 
86.32 	the envelope containing the payment is postmarked by the United States Postal Service 
86.33 	within one business day of the due date prescribed under this section, but only if the property 
87.1 	owner requesting the abatement has not previously received an abatement of penalty for 
87.2 	late payment of tax under this paragraph. If the envelope containing the payment does not 
87.3 	contain a postmark of the United States Postal Service, or the postmark is illegible, proof 
87.4 	of mailing within one business day of the due date may be provided by affidavit of the 
87.5 	property owner requesting the abatement.

87.6 	EFFECTIVE DATE. This section is effective for property taxes payable in 2018 and 
87.7 	thereafter.

87.8 	Sec. 23. Minnesota Statutes 2016, section 279.01, subdivision 3, is amended to read:
87.9 		Subd. 3.Agricultural property. (a) In the case of class 1b agricultural homestead, class 
87.10 	2a agricultural homestead property, and class 2a agricultural nonhomestead property, and 
87.11 	class 2b rural vacant land that is part of an agricultural homestead, no penalties shall attach 
87.12 	to the second one-half property tax payment as provided in this section if paid by November 
87.13 	15. Thereafter for class 1b agricultural homestead and class 2a homestead property, on 
87.14 	November 16 following, a penalty of six percent shall accrue and be charged on all such 
87.15 	unpaid taxes and on December 1 following, an additional two percent shall be charged on 
87.16 	all such unpaid taxes. Thereafter for class 2a agricultural nonhomestead property, on 
87.17 	November 16 following, a penalty of eight percent shall accrue and be charged on all such 
87.18 	unpaid taxes and on December 1 following, an additional four percent shall be charged on 
87.19 	all such unpaid taxes, penalties shall attach as provided in subdivision 1.
87.20 	If the owner of class 1b agricultural homestead or class 2a agricultural property receives 
87.21 	a consolidated property tax statement that shows only an aggregate of the taxes and special 
87.22 	assessments due on that property and on other property not classified as class 1b agricultural 
87.23 	homestead or class 2a agricultural property, the aggregate tax and special assessments shown 
87.24 	due on the property by the consolidated statement will be due on November 15.
87.25 	(b) Notwithstanding paragraph (a), for taxes payable in 2010 and 2011, for any class 2b 
87.26 	property that was subject to a second-half due date of November 15 for taxes payable in 
87.27 	2009, the county shall not impose, or if imposed, shall abate penalty amounts in excess of 
87.28 	those that would apply as if the second-half due date were November 15.

87.29 	EFFECTIVE DATE. (a) Except as provided in paragraph (b), this section is effective 
87.30 	beginning with taxes payable in 2018.
87.31 	(b) The provisions in this section applicable to class 2b rural vacant land are effective 
87.32 	beginning with taxes payable in 2019.

88.1 	Sec. 24. Minnesota Statutes 2016, section 279.37, is amended by adding a subdivision to 
88.2 	read:
88.3 		Subd. 1b.Conditions. The county auditor may offer on a voluntary basis financial 
88.4 	literacy counseling as part of entering into a confession of judgment. The county auditor 
88.5 	may fund the financial literacy counseling using the fee in subdivision 8. The counseling 
88.6 	shall not be at taxpayer expense.

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

88.8 	Sec. 25. Minnesota Statutes 2016, section 281.17, is amended to read:
88.9 	281.17 PERIOD FOROF REDEMPTION.
88.10 	(a) Except for properties described in paragraphs (b) and (c), or properties for which the 
88.11 	period of redemption has been limited under sections 281.173 and 281.174, the following 
88.12 	periods for period of redemption apply.
88.13 	The period of redemption for all lands sold to the state at a tax judgment sale shall be 
88.14 	three years from the date of sale to the state of Minnesota.
88.15 	The period of redemption for homesteaded lands as defined in section 273.13, subdivision 
88.16 	22, located in a targeted neighborhood as defined in Laws 1987, chapter 386, article 6, 
88.17 	section 4, and sold to the state at a tax judgment sale is three years from the date of sale.
88.18 	(b) The period of redemption for all lands located in a targeted neighborhood community
88.19 	as defined in Laws 1987, chapter 386, article 6, section 4 section 469.201, subdivision 10, 
88.20 	except homesteaded lands as defined in section 273.13, subdivision 22, is one year from 
88.21 	the date of sale.
88.22 	(c) The period of redemption for all real property constituting a mixed municipal solid 
88.23 	waste disposal facility that is a qualified facility under section 115B.39, subdivision 1, is 
88.24 	one year from the date of the sale to the state of Minnesota.
88.25 	(d) In determining the period of redemption, the county must use the property's 
88.26 	classification and homestead classification for the assessment year on which the tax judgment 
88.27 	is based. Any change in the property's classification or homestead classification after the 
88.28 	assessment year on which the tax judgment is based does not affect the period of redemption.

88.29 	EFFECTIVE DATE. This section is effective for tax judgment sales occurring after 
88.30 	January 1, 2018.

89.1 	Sec. 26. Minnesota Statutes 2016, section 281.173, subdivision 2, is amended to read:
89.2 		Subd. 2.Summons and complaint. Any city, county, housing and redevelopment 
89.3 	authority, port authority, or economic development authority, in which the premises are 
89.4 	located may commence an action in district court to reduce the period otherwise allowed 
89.5 	for redemption under this chapter. The action must be commenced by the filing of a 
89.6 	complaint, naming as defendants the record fee owners or the owner's personal representative, 
89.7 	or the owner's heirs as determined by a court of competent jurisdiction, contract for deed 
89.8 	purchasers, mortgagees, assigns of any of the above, the taxpayers as shown on the records 
89.9 	of the county auditor, the Internal Revenue Service of the United States and the Revenue 
89.10 	Department of the state of Minnesota if tax liens against the owners or contract for deed 
89.11 	purchasers have been recorded or filed; and any other person the plaintiff determines should 
89.12 	be made a party. The action shall be filed in district court for the county in which the premises 
89.13 	are located. The complaint must identify the premises by legal description. The complaint 
89.14 	must allege (1) that the premises are abandoned, (2) that the tax judgment sale pursuant to 
89.15 	section 280.01 has been made, and (3) notice of expiration of the time for redemption has 
89.16 	not been given.
89.17 	The complaint must request an order reducing the redemption period to five weeks. 
89.18 	When the complaint has been filed, the court shall issue a summons commanding the person 
89.19 	or persons named in the complaint to appear before the court on a day and at a place stated 
89.20 	in the summons. The appearance date shall be not less than 15 nor more than 25 days from 
89.21 	the date of the issuing of the summons. A copy of the filed complaint must be attached to 
89.22 	the summons.

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

89.24 	Sec. 27. Minnesota Statutes 2016, section 281.174, subdivision 3, is amended to read:
89.25 		Subd. 3.Summons and complaint. Any city, county, housing and redevelopment 
89.26 	authority, port authority, or economic development authority in which the property is located 
89.27 	may commence an action in district court to reduce the period otherwise allowed for 
89.28 	redemption under this chapter from the date of the requested order. The action must be 
89.29 	commenced by the filing of a complaint, naming as defendants the record fee owners or the 
89.30 	owner's personal representative, or the owner's heirs as determined by a court of competent 
89.31 	jurisdiction, contract for deed purchasers, mortgagees, assigns of any of the above, the 
89.32 	taxpayers as shown on the records of the county auditor, the Internal Revenue Service of 
89.33 	the United States and the revenue department of the state of Minnesota if tax liens against 
89.34 	the owners or contract for deed purchasers have been recorded or filed, and any other person 
90.1 	the plaintiff determines should be made a party. The action shall be filed in district court 
90.2 	for the county in which the property is located. The complaint must identify the property 
90.3 	by legal description. The complaint must allege (1) that the property is vacant, (2) that the 
90.4 	tax judgment sale under section 280.01 has been made, and (3) notice of expiration of the 
90.5 	time for redemption has not been given.
90.6 	The complaint must request an order reducing the redemption period to five weeks. 
90.7 	When the complaint has been filed, the court shall issue a summons commanding the person 
90.8 	or persons named in the complaint to appear before the court on a day and at a place stated 
90.9 	in the summons. The appearance date shall be not less than 15 nor more than 25 days from 
90.10 	the date of the issuing of the summons, except that, when the United States of America is 
90.11 	a party, the date shall be set in accordance with applicable federal law. A copy of the filed 
90.12 	complaint must be attached to the summons.

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

90.14 	Sec. 28. [281.231] MAINTENANCE; EXPENDITURE OF PUBLIC FUNDS.
90.15 	If the county auditor provides notice as required by section 281.23, the state, agency, 
90.16 	political subdivision, or other entity that becomes the fee owner or manager of a property 
90.17 	as a result of forfeiture due to nonpayment of real property taxes is not required to expend 
90.18 	public funds to maintain any servitude, agreement, easement, or other encumbrance affecting 
90.19 	the property. The fee owner or manager of a property may, at its discretion, spend public 
90.20 	funds necessary for the maintenance, security, or management of the property.

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

90.22 	Sec. 29. [281.70] LIMITED RIGHT OF ENTRY.
90.23 		Subdivision 1.Limited right of entry. If premises described in a real estate tax judgment 
90.24 	sale are vacant or unoccupied, the county auditor or a person acting on behalf of the county 
90.25 	auditor may, but is not obligated to, enter the premises to protect the premises from waste 
90.26 	or trespass until the county auditor is notified that the premises are occupied. An affidavit 
90.27 	of the sheriff, the county auditor, or a person acting on behalf of the county auditor describing 
90.28 	the premises and stating that the premises are vacant and unoccupied is prima facie evidence 
90.29 	of the facts stated in the affidavit. If the affidavit contains a legal description of the premises, 
90.30 	the affidavit may be recorded in the office of the county recorder or the registrar of titles in 
90.31 	the county where the premises are located.
91.1 		Subd. 2.Authorized actions. (a) The county auditor may take one or more of the 
91.2 	following actions to protect the premises from waste or trespass:
91.3 	(1) install or change locks on doors and windows;
91.4 	(2) board windows; and
91.5 	(3) other actions to prevent or minimize damage to the premises from the elements, 
91.6 	vandalism, trespass, or other illegal activities.
91.7 	(b) If the county auditor installs or changes locks on premises under paragraph (a), the 
91.8 	county auditor must promptly deliver a key to the premises to the taxpayer or any person 
91.9 	lawfully claiming a right of occupancy upon request.
91.10 		Subd. 3.Costs. Costs incurred by the county auditor in protecting the premises from 
91.11 	waste or trespass under this section may be added to the delinquent taxes due. The costs 
91.12 	may bear interest to the extent provided, and interest may be added to the delinquent taxes 
91.13 	due.
91.14 		Subd. 4.Scope. The actions authorized under this section are in addition to, and do not 
91.15 	limit or replace, any other rights or remedies available to the county auditor under Minnesota 
91.16 	law.

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

91.18 	Sec. 30. Minnesota Statutes 2016, section 282.01, subdivision 4, is amended to read:
91.19 		Subd. 4.Sale:; method,; requirements,; effects. (a) The sale authorized under 
91.20 	subdivision 3 must be conducted by the county auditor at the county seat of the county in 
91.21 	which the parcels lie, except that in St. Louis and Koochiching Counties, the sale may be 
91.22 	conducted in any county facility within the county. The sale must not be for less than the 
91.23 	appraised value except as provided in subdivision 7a. The parcels must be sold for cash 
91.24 	only, unless the county board of the county has adopted a resolution providing for their sale 
91.25 	on terms, in which event the resolution controls with respect to the sale. When the sale is 
91.26 	made on terms other than for cash only (1) a payment of at least ten percent of the purchase 
91.27 	price must be made at the time of purchase, and the balance must be paid in no more than 
91.28 	ten equal annual installments, or (2) the payments must be made in accordance with county 
91.29 	board policy, but in no event may the board require more than 12 installments annually, 
91.30 	and the contract term must not be for more than ten years. Standing timber or timber products 
91.31 	must not be removed from these lands until an amount equal to the appraised value of all 
91.32 	standing timber or timber products on the lands at the time of purchase has been paid by 
91.33 	the purchaser. If a parcel of land bearing standing timber or timber products is sold at public 
92.1 	auction for more than the appraised value, the amount bid in excess of the appraised value 
92.2 	must be allocated between the land and the timber in proportion to their respective appraised 
92.3 	values. In that case, standing timber or timber products must not be removed from the land 
92.4 	until the amount of the excess bid allocated to timber or timber products has been paid in 
92.5 	addition to the appraised value of the land. The purchaser is entitled to immediate possession, 
92.6 	subject to the provisions of any existing valid lease made in behalf of the state.
92.7 	(b) For sales occurring on or after July 1, 1982, the unpaid balance of the purchase price 
92.8 	is subject to interest at the rate determined pursuant to section 549.09. The unpaid balance 
92.9 	of the purchase price for sales occurring after December 31, 1990, is subject to interest at 
92.10 	the rate determined in section 279.03, subdivision 1a. The interest rate is subject to change 
92.11 	each year on the unpaid balance in the manner provided for rate changes in section 549.09
92.12 	or 279.03, subdivision 1a, whichever, is applicable. Interest on the unpaid contract balance 
92.13 	on sales occurring before July 1, 1982, is payable at the rate applicable to the sale at the 
92.14 	time that the sale occurred.
92.15 	(c) Notwithstanding subdivision 7, a county board may by resolution provide for the 
92.16 	listing and sale of individual parcels by other means, including through a real estate broker. 
92.17 	However, if the buyer under this paragraph could have repurchased a parcel of property 
92.18 	under section 282.012 or 282.241, that buyer may not purchase that same parcel of property 
92.19 	at the sale under this subdivision for a purchase price less than the sum of all taxes, 
92.20 	assessments, penalties, interest, and costs due at the time of forfeiture computed under 
92.21 	section 282.251, and any special assessments for improvements certified as of the date of 
92.22 	sale. This subdivision shall be liberally construed to encourage the sale and utilization of 
92.23 	tax-forfeited land in order to eliminate nuisances and dangerous conditions and to increase 
92.24 	compliance with land use ordinances.

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

92.26 	Sec. 31. Minnesota Statutes 2016, section 282.01, is amended by adding a subdivision to 
92.27 	read:
92.28 		Subd. 13.Online auction. A county board, or a county auditor if the auditor has been 
92.29 	delegated such authority under section 282.135, may sell tax-forfeited lands through an 
92.30 	online auction. When an online auction is used to sell tax-forfeited lands, the county auditor 
92.31 	shall post a physical notice of the online auction and shall publish a notice of the online 
92.32 	auction on its Web site not less than ten days before the online auction begins, in addition 
92.33 	to any other notice required.

93.1 	EFFECTIVE DATE. This section is effective for sales of tax-forfeited property that 
93.2 	occur on or after August 1, 2017.

93.3 	Sec. 32. Minnesota Statutes 2016, section 282.016, is amended to read:
93.4 	282.016 PROHIBITED PURCHASERS.
93.5 	(a) A county auditor, county treasurer, county attorney, court administrator of the district 
93.6 	court, county assessor, supervisor of assessments, deputy or clerk or an employee of such 
93.7 	officer, a commissioner for tax-forfeited lands or an assistant to such commissioner, must 
93.8 	not become a purchaser, either personally or as an agent or attorney for another person, of 
93.9 	the properties offered for sale under the provisions of this chapter in the county for which 
93.10 	the person performs duties. A person prohibited from purchasing property under this section 
93.11 	must not directly or indirectly have another person purchase it on behalf of the prohibited 
93.12 	purchaser for the prohibited purchaser's benefit or gain.
93.13 	(b) Notwithstanding paragraph (a), such officer, deputy, clerk, or employee or 
93.14 	commissioner for tax-forfeited lands or assistant to such commissioner may (1) purchase 
93.15 	lands owned by that official at the time the state became the absolute owner thereof or (2) 
93.16 	bid upon and purchase forfeited property offered for sale under the alternate sale procedure 
93.17 	described in section 282.01, subdivision 7a.
93.18 	(c) In addition to the persons identified in paragraph (a), a county auditor may prohibit 
93.19 	other persons and entities from becoming a purchaser, either personally or as an agent or 
93.20 	attorney for another person or entity, of the properties offered for sale under this chapter in 
93.21 	the following circumstances: (1) the person or entity owns another property within the 
93.22 	county for which there are delinquent taxes owing; (2) the person or entity has held a rental 
93.23 	license in the county and the license has been revoked within the last five years; or (3) the 
93.24 	person or entity has been the vendee of a contract for purchase of a property offered for sale 
93.25 	under this chapter, which contract has been canceled within the last five years.
93.26 	(d) A person prohibited from purchasing property under this section must not directly 
93.27 	or indirectly have another person purchase it on behalf of the prohibited purchaser for the 
93.28 	prohibited purchaser's benefit or gain.

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

93.30 	Sec. 33. Minnesota Statutes 2016, section 282.018, subdivision 1, is amended to read:
93.31 		Subdivision 1.Land on or adjacent to public waters. (a) All land which is the property 
93.32 	of the state as a result of forfeiture to the state for nonpayment of taxes, regardless of whether 
94.1 	the land is held in trust for taxing districts, and which borders on or is adjacent to meandered 
94.2 	lakes and other public waters and watercourses, and the live timber growing or being thereon, 
94.3 	is hereby withdrawn from sale except as hereinafter provided. The authority having 
94.4 	jurisdiction over the timber on any such lands may sell the timber as otherwise provided by 
94.5 	law for cutting and removal under such conditions as the authority may prescribe in 
94.6 	accordance with approved, sustained yield forestry practices. The authority having jurisdiction 
94.7 	over the timber shall reserve such timber and impose such conditions as the authority deems 
94.8 	necessary for the protection of watersheds, wildlife habitat, shorelines, and scenic features. 
94.9 	Within the area in Cook, Lake, and St. Louis counties described in the Act of Congress 
94.10 	approved July 10, 1930 (46 Stat. 1020), the timber on tax-forfeited lands shall be subject 
94.11 	to like restrictions as are now imposed by that act on federal lands.
94.12 	(b) Of all tax-forfeited land bordering on or adjacent to meandered lakes and other public 
94.13 	waters and watercourses and so withdrawn from sale, a strip two rods in width, the ordinary 
94.14 	high-water mark being the waterside boundary thereof, and the land side boundary thereof 
94.15 	being a line drawn parallel to the ordinary high-water mark and two rods distant landward 
94.16 	therefrom, hereby is reserved for public travel thereon, and whatever the conformation of 
94.17 	the shore line or conditions require, the authority having jurisdiction over such lands shall 
94.18 	reserve a wider strip for such purposes.
94.19 	(c) Any tract or parcel of land which has 150 feet or less of waterfront may be sold by 
94.20 	the authority having jurisdiction over the land, in the manner otherwise provided by law 
94.21 	for the sale of such lands, if the authority determines that it is in the public interest to do 
94.22 	so. If the authority having jurisdiction over the land is not the commissioner of natural 
94.23 	resources, the land may not be offered for sale without the prior approval of the commissioner 
94.24 	of natural resources.
94.25 	(d) Where the authority having jurisdiction over lands withdrawn from sale under this 
94.26 	section is not the commissioner of natural resources, the authority may submit proposals 
94.27 	for disposition of the lands to the commissioner. The commissioner of natural resources 
94.28 	shall evaluate the lands and their public benefits and make recommendations on the proposed 
94.29 	dispositions to the committees of the legislature with jurisdiction over natural resources. 
94.30 	The commissioner shall include any recommendations of the commissioner for disposition 
94.31 	of lands withdrawn from sale under this section over which the commissioner has jurisdiction. 
94.32 	The commissioner's recommendations may include a public sale, sale to a private party, 
94.33 	acquisition by the Department of Natural Resources for public purposes, or a cooperative 
94.34 	management agreement with, or transfer to, another unit of government.
95.1 	(e) Notwithstanding this subdivision, a county may sell property governed by this section 
95.2 	upon written authorization from the commissioner of natural resources. Prior to the sale or 
95.3 	conveyance of lands under this subdivision, the county board must give notice of its intent 
95.4 	to meet for that purpose as provided in section 282.01, subdivision 1.

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

95.6 	Sec. 34. Minnesota Statutes 2016, section 282.02, is amended to read:
95.7 	282.02 LIST OF LANDS FOR SALE; NOTICE; ONLINE AUCTIONS 
95.8 	PERMITTED.
95.9 	(a) Immediately after classification and appraisal of the land, and after approval by the 
95.10 	commissioner of natural resources when required pursuant to section 282.01, subdivision 
95.11 	3, the county board shall provide and file with the county auditor a list of parcels of land to 
95.12 	be offered for sale. This list shall contain a description of the parcels of land and the appraised 
95.13 	value thereof. The auditor shall publish a notice of the intended public sale of such parcels 
95.14 	of land and a copy of the resolution of the county board fixing the terms of the sale, if other 
95.15 	than for cash only, by publication once a week for two weeks in the official newspaper of 
95.16 	the county, the last publication to be not less than ten days previous to the commencement 
95.17 	of the sale.
95.18 	(b) The notice shall include the parcel's description and appraised value. The notice shall 
95.19 	also indicate the amount of any special assessments which may be the subject of a 
95.20 	reassessment or new assessment or which may result in the imposition of a fee or charge 
95.21 	pursuant to sections 429.071, subdivision 4, 435.23, and 444.076. The county auditor shall 
95.22 	also mail notice to the owners of land adjoining the parcel to be sold. For purposes of this 
95.23 	section, "owner" means the taxpayer as listed in the records of the county auditor.
95.24 	(c) If the county board of St. Louis or Koochiching Counties determines that the sale 
95.25 	shall take place in a county facility other than the courthouse, the notice shall specify the 
95.26 	facility and its location. If the county board determines that the sale shall take place as an 
95.27 	online auction under section 282.01, subdivision 13, the notice shall specify the auction 
95.28 	Web site and the date of the auction.

95.29 	EFFECTIVE DATE. This section is effective for sales of tax-forfeited property that 
95.30 	occur on or after August 1, 2017.

96.1 	Sec. 35. Minnesota Statutes 2016, section 282.04, subdivision 2, is amended to read:
96.2 		Subd. 2.Rights before sale; improvements, insurance, demolition. (a) Before the 
96.3 	sale of a parcel of forfeited land the county auditor may, with the approval of the county 
96.4 	board of commissioners, provide for the repair and improvement of any building or structure 
96.5 	located upon the parcel, and may provide for maintenance of tax-forfeited lands, if it is 
96.6 	determined by the county board that such repairs, improvements, or maintenance are 
96.7 	necessary for the operation, use, preservation, and safety of the building or structure.
96.8 	(b) If so authorized by the county board, the county auditor may insure the building or 
96.9 	structure against loss or damage resulting from fire or windstorm, may purchase workers' 
96.10 	compensation insurance to insure the county against claims for injury to the persons employed 
96.11 	in the building or structure by the county, and may insure the county, its officers and 
96.12 	employees against claims for injuries to persons or property because of the management, 
96.13 	use, or operation of the building or structure.
96.14 	(c) The county auditor may, with the approval of the county board, provide:
96.15 	(1) for the demolition of the building or structure, which has been determined by the 
96.16 	county board to be especially liable to fire or so situated as to endanger life or limb or other 
96.17 	buildings or property in the vicinity because of age, dilapidated condition, defective chimney, 
96.18 	defective electric wiring, any gas connection, heating apparatus, or other defect; and
96.19 	(2) for the sale of salvaged materials from the building or structure.
96.20 	(d) Notwithstanding any law to the contrary, the county auditor, with the approval of 
96.21 	the county board, may provide for the sale of abandoned personal property. The or disposal 
96.22 	of personal property remaining after the certificate under section 281.23, subdivision 9, has 
96.23 	been recorded. The county auditor must make reasonable efforts to provide at least 28 days' 
96.24 	notice of the sale or disposal to the former owner, taxpayer, and any occupants at the time 
96.25 	of forfeiture. A sale may be made by the sheriff using the procedures for the sale of 
96.26 	abandoned property in section 345.15 or by the county auditor using the procedures for the 
96.27 	sale of abandoned property in section 504B.271 a sale procedure approved by the county 
96.28 	board. A county may contract with a third party to assist with removal, disposal, or sale of 
96.29 	personal property. The net proceeds from any sale of the personal property, salvaged 
96.30 	materials, timber or other products, or leases made under this law must be deposited in the 
96.31 	forfeited tax sale fund and must be distributed in the same manner as if the parcel had been 
96.32 	sold.
96.33 	(e) The county auditor, with the approval of the county board, may provide for the 
96.34 	demolition of any structure on tax-forfeited lands, if in the opinion of the county board, the 
97.1 	county auditor, and the land commissioner, if there is one, the sale of the land with the 
97.2 	structure on it, or the continued existence of the structure by reason of age, dilapidated 
97.3 	condition or excessive size as compared with nearby structures, will result in a material 
97.4 	lessening of net tax capacities of real estate in the vicinity of the tax-forfeited lands, or if 
97.5 	the demolition of the structure or structures will aid in disposing of the tax-forfeited property.
97.6 	(f) Before the sale of a parcel of forfeited land located in an urban area, the county auditor 
97.7 	may with the approval of the county board provide for the grading of the land by filling or 
97.8 	the removal of any surplus material from it. If the physical condition of forfeited lands is 
97.9 	such that a reasonable grading of the lands is necessary for the protection and preservation 
97.10 	of the property of any adjoining owner, the adjoining property owner or owners may apply 
97.11 	to the county board to have the grading done. If, after considering the application, the county 
97.12 	board believes that the grading will enhance the value of the forfeited lands commensurate 
97.13 	with the cost involved, it may approve it, and the work must be performed under the 
97.14 	supervision of the county or city engineer, as the case may be, and the expense paid from 
97.15 	the forfeited tax sale fund.

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

97.17 	Sec. 36. Minnesota Statutes 2016, section 282.241, subdivision 1, is amended to read:
97.18 		Subdivision 1.Repurchase requirements. The owner at the time of forfeiture, or the 
97.19 	owner's heirs, devisees, or representatives, or any person to whom the right to pay taxes 
97.20 	was given by statute, mortgage, or other agreement, may repurchase any parcel of land 
97.21 	claimed by the state to be forfeited to the state for taxes unless before the time repurchase 
97.22 	is made the parcel is sold under installment payments, or otherwise, by the state as provided 
97.23 	by law, or is under mineral prospecting permit or lease, or proceedings have been commenced 
97.24 	by the state or any of its political subdivisions or by the United States to condemn the parcel 
97.25 	of land. The parcel of land may be repurchased for the sum of all delinquent taxes and 
97.26 	assessments computed under section 282.251, together with penalties, interest, and costs, 
97.27 	that accrued or would have accrued if the parcel of land had not forfeited to the state. Except 
97.28 	for property which was homesteaded on the date of forfeiture, repurchase is permitted during 
97.29 	one year six months only from the date of forfeiture, and in any case only after the adoption 
97.30 	of a resolution by the board of county commissioners determining that by repurchase undue 
97.31 	hardship or injustice resulting from the forfeiture will be corrected, or that permitting the 
97.32 	repurchase will promote the use of the lands that will best serve the public interest. If the 
97.33 	county board has good cause to believe that a repurchase installment payment plan for a 
97.34 	particular parcel is unnecessary and not in the public interest, the county board may require 
98.1 	as a condition of repurchase that the entire repurchase price be paid at the time of repurchase. 
98.2 	A repurchase is subject to any easement, lease, or other encumbrance granted by the state 
98.3 	before the repurchase, and if the land is located within a restricted area established by any 
98.4 	county under Laws 1939, chapter 340, the repurchase must not be permitted unless the 
98.5 	resolution approving the repurchase is adopted by the unanimous vote of the board of county 
98.6 	commissioners.
98.7 	The person seeking to repurchase under this section shall pay all maintenance costs 
98.8 	incurred by the county auditor during the time the property was tax-forfeited.

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

98.10 	Sec. 37. Minnesota Statutes 2016, section 282.322, is amended to read:
98.11 	282.322 FORFEITED LANDS LIST.
98.12 	The county board of any county may file a list of forfeited lands with the county auditor, 
98.13 	if the board is of the opinion that such lands may be acquired by the state or any municipal 
98.14 	subdivision thereof of the state for public purposes. Upon the filing of such the list of 
98.15 	forfeited lands, the county auditor shall withhold said lands from repurchase. If no proceeding 
98.16 	shall be is started to acquire such lands by the state or some municipal subdivision thereof
98.17 	of the state within one year after the filing of such the list of forfeited lands, the county 
98.18 	board shall withdraw said the list and thereafter, if the property was classified as 
98.19 	nonhomestead at the time of forfeiture, the owner shall have one year not more than six 
98.20 	months in which to repurchase.

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

98.22 	Sec. 38. Minnesota Statutes 2016, section 473H.09, is amended to read:
98.23 	473H.09 EARLY TERMINATION.
98.24 		Subdivision 1.Public emergency. Termination of an agricultural preserve earlier than 
98.25 	a date derived through application of section 473H.08 may be permitted only in the event 
98.26 	of a public emergency upon petition from the owner or authority to the governor. The 
98.27 	determination of a public emergency shall be by the governor through executive order 
98.28 	pursuant to sections 4.035 and 12.01 to 12.46. The executive order shall identify the preserve, 
98.29 	the reasons requiring the action and the date of termination.
98.30 		Subd. 2.Death of owner. (a) Within 365 days of the death of an owner, an owner's 
98.31 	spouse, or other qualifying person, the surviving owner may elect to terminate the agricultural 
98.32 	preserve and the covenant allowing the land to be enrolled as an agricultural preserve by 
99.1 	notifying the authority on a form provided by the commissioner of agriculture. Termination 
99.2 	of a covenant under this subdivision must be executed and acknowledged in the manner 
99.3 	required by law to execute and acknowledge a deed.
99.4 	(b) For purposes of this subdivision, the following definitions apply:
99.5 	(1) "qualifying person" includes a partner, shareholder, trustee for a trust that the decedent 
99.6 	was the settlor or a beneficiary of, or member of an entity permitted to own agricultural 
99.7 	land and engage in farming under section 500.24 that owned the agricultural preserve; and
99.8 	(2) "surviving owner" includes the executor of the estate of the decedent, trustee for a 
99.9 	trust that the decedent was the settlor or a beneficiary of, or an entity permitted to own farm 
99.10 	land under section 500.24 of which the decedent was a partner, shareholder, or member.
99.11 	(c) When an agricultural preserve is terminated under this subdivision, the property is 
99.12 	subject to additional taxes in an amount equal to 50 percent of the taxes actually levied 
99.13 	against the property for the current taxes payable year. The additional taxes are extended 
99.14 	against the property on the tax list for taxes payable in the current year. The additional taxes 
99.15 	must be distributed among the jurisdictions levying taxes on the property in proportion to 
99.16 	the current year's taxes.

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

99.18 	Sec. 39. Minnesota Statutes 2016, section 473H.17, subdivision 1a, is amended to read:
99.19 		Subd. 1a.Allowed commercial and industrial operations. (a) Commercial and industrial 
99.20 	operations are not allowed on land within an agricultural preserve except:
99.21 	(1) small on-farm commercial or industrial operations normally associated with and 
99.22 	important to farming in the agricultural preserve area;
99.23 	(2) storage use of existing farm buildings that does not disrupt the integrity of the 
99.24 	agricultural preserve; and
99.25 	(3) small commercial use of existing farm buildings for trades not disruptive to the 
99.26 	integrity of the agricultural preserve such as a carpentry shop, small scale mechanics shop, 
99.27 	and similar activities that a farm operator might conduct.; and
99.28 	(4) wireless communication installments and related equipment and structure capable 
99.29 	of providing technology potentially beneficial to farming activities. A property owner who 
99.30 	installs wireless communication equipment does not violate a covenant made prior to January 
99.31 	1, 2018, under section 473H.05, subdivision 1.
100.1 	(b) For purposes of paragraph (a), clauses (2) and (3), "existing" in paragraph (a), clauses 
100.2 	(2) and (3), means existing on August 1, 1987.

100.3 	EFFECTIVE DATE. This section is effective the day following enactment.

100.4 	Sec. 40. Minnesota Statutes 2016, section 504B.285, subdivision 1, is amended to read:
100.5 		Subdivision 1.Grounds. (a) The person entitled to the premises may recover possession 
100.6 	by eviction when:
100.7 	(1) any person holds over real property:
100.8 	(i) after a sale of the property on an execution or judgment; or
100.9 	(ii) after the expiration of the time for redemption on foreclosure of a mortgage, or after 
100.10 	termination of contract to convey the property; or
100.11 	(iii) after the expiration of the time for redemption on a real estate tax judgment sale;
100.12 	(2) any person holds over real property after termination of the time for which it is 
100.13 	demised or leased to that person or to the persons under whom that person holds possession, 
100.14 	contrary to the conditions or covenants of the lease or agreement under which that person 
100.15 	holds, or after any rent becomes due according to the terms of such lease or agreement; or
100.16 	(3) any tenant at will holds over after the termination of the tenancy by notice to quit.
100.17 	(b) A landlord may not commence an eviction action against a tenant or authorized 
100.18 	occupant solely on the basis that the tenant or authorized occupant has been the victim of 
100.19 	any of the acts listed in section 504B.206, subdivision 1, paragraph (a). Nothing in this 
100.20 	paragraph should be construed to prohibit an eviction action based on a breach of the lease.

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

100.22 	Sec. 41. Laws 1996, chapter 471, article 3, section 51, is amended to read:
100.23 	Sec. 51. RECREATION LEVY FOR SAWYER BY CARLTON COUNTY.
 100.24 		Subdivision 1.Levy authorized. Notwithstanding other law to the contrary, the Carlton 
100.25 	county board of commissioners may levy in and for the unorganized township of Sawyer 
100.26 	an amount up to $1,500 annually for recreational purposes, beginning with taxes payable 
100.27 	in 1997 and ending with taxes payable in 2006.
100.28 		Subd. 2.Effective date. This section is effective June 1, 1996, without local approval.

101.1 	EFFECTIVE DATE. This section applies to taxes payable in 2018 and thereafter, and 
101.2 	is effective the day after the Carlton County Board of Commissioners and its chief clerical 
101.3 	officer timely complete their compliance with section 645.021, subdivisions 2 and 3.

101.4 	Sec. 42. SOCCER STADIUM PROPERTY TAX EXEMPTION; SPECIAL 
101.5 	ASSESSMENT.
 101.6 	Any real or personal property acquired, owned, leased, controlled, used, or occupied by 
101.7 	the city of St. Paul for the primary purpose of providing a stadium for a Major League 
101.8 	Soccer team is declared to be acquired, owned, leased, controlled, used, and occupied for 
101.9 	public, governmental, and municipal purposes, and is exempt from ad valorem taxation by 
101.10 	the state or any political subdivision of the state, provided that the properties are subject to 
101.11 	special assessments levied by a political subdivision for a local improvement in amounts 
101.12 	proportionate to and not exceeding the special benefit received by the properties from the 
101.13 	improvement. In determining the special benefit received by the properties, no possible use 
101.14 	of any of the properties in any manner different from their intended use for providing a 
101.15 	Major League Soccer stadium at the time may be considered. Notwithstanding Minnesota 
101.16 	Statutes, section 272.01, subdivision 2, or 273.19, real or personal property subject to a 
101.17 	lease or use agreement between the city and another person for uses related to the purposes 
101.18 	of the operation of the stadium and related parking facilities is exempt from taxation 
101.19 	regardless of the length of the lease or use agreement. This section, insofar as it provides 
101.20 	an exemption or special treatment, does not apply to any real property that is leased for 
101.21 	residential, business, or commercial development or other purposes different from those 
101.22 	necessary to the provision and operation of the stadium.

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

101.25 	Sec. 43.  REPEALER.
 101.26 	(a) Minnesota Statutes 2016, section 281.22, is repealed.
101.27 	(b) Minnesota Statutes 2016, section 272.02, subdivision 23, is repealed.

101.28 	EFFECTIVE DATE. Paragraph (a) is effective the day following final enactment. 
101.29 	Paragraph (b) is effective beginning with taxes payable in 2016, provided that nothing in 
101.30 	paragraph (b) shall cause property that the assessor classified as exempt for property taxes 
101.31 	payable in 2016 or 2017 to lose its exempt status for taxes payable in those years.

102.1 	ARTICLE 3
102.2 	SALES AND USE TAXES

102.3 	Section 1. [88.068] VOLUNTEER FIRE ASSISTANCE GRANT ACCOUNT.
102.4 	A volunteer fire assistance grant account is established in the special revenue fund. Sales 
102.5 	taxes allocated under section 297A.94, for making grants under section 88.067, must be 
102.6 	deposited in the special revenue fund and credited to the volunteer fire assistance grant 
102.7 	account. Money in the account, including interest, is appropriated to the commissioner for 
102.8 	making grants under that section.

102.9 	EFFECTIVE DATE. This section is effective beginning with deposits made in fiscal 
102.10 	year 2018.

102.11 	Sec. 2. Minnesota Statutes 2016, section 116J.8738, subdivision 3, is amended to read:
102.12 		Subd. 3.Certification of qualified business. (a) A business may apply to the 
102.13 	commissioner for certification as a qualified business under this section. The commissioner 
102.14 	shall specify the form of the application, the manner and times for applying, and the 
102.15 	information required to be included in the application. The commissioner may impose an 
102.16 	application fee in an amount sufficient to defray the commissioner's cost of processing 
102.17 	certifications. Application fees are deposited in the greater Minnesota business expansion 
102.18 	administration account in the special revenue fund. A business must file a copy of its 
102.19 	application with the chief clerical officer of the city at the same time it applies to the 
102.20 	commissioner. For an agricultural processing facility located outside the boundaries of a 
102.21 	city, the business must file a copy of the application with the county auditor.
102.22 	(b) The commissioner shall certify each business as a qualified business that:
102.23 	(1) satisfies the requirements of subdivision 2;
102.24 	(2) the commissioner determines would not expand its operations in greater Minnesota 
102.25 	without the tax incentives available under subdivision 4; and
102.26 	(3) enters a business subsidy agreement with the commissioner that pledges to satisfy 
102.27 	the minimum expansion requirements of paragraph (c) within three years or less following 
102.28 	execution of the agreement.
102.29 	The commissioner must act on an application within 90 days after its filing. Failure by 
102.30 	the commissioner to take action within the 90-day period is deemed approval of the 
102.31 	application.
103.1 	(c) The business must increase the number of full-time equivalent employees in greater 
103.2 	Minnesota from the time the business subsidy agreement is executed by two employees or 
103.3 	ten percent, whichever is greater.
103.4 	(d) The city, or a county for an agricultural processing facility located outside the 
103.5 	boundaries of a city, in which the business proposes to expand its operations may file 
103.6 	comments supporting or opposing the application with the commissioner. The comments 
103.7 	must be filed within 30 days after receipt by the city of the application and may include a 
103.8 	notice of any contribution the city or county intends to make to encourage or support the 
103.9 	business expansion, such as the use of tax increment financing, property tax abatement, 
103.10 	additional city or county services, or other financial assistance.
103.11 	(e) Certification of a qualified business is effective for the seven-year period beginning 
103.12 	on the first day of the calendar month immediately following the date that the commissioner 
103.13 	informs the business of the award of the benefit unless the qualified business is investing 
103.14 	at least $200,000,000 over a ten-year period. Certification for a qualified business investing 
103.15 	at least $200,000,000 over a ten-year period is effective for the ten-year period beginning 
103.16 	on the first day of the calendar month immediately following the date that the commissioner 
103.17 	informs the business of the award of the benefit.

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

103.19 	Sec. 3. Minnesota Statutes 2016, section 116J.8738, subdivision 4, is amended to read:
103.20 		Subd. 4.Available tax incentives. A qualified business is entitled to a sales tax 
103.21 	exemption, up to $2,000,000 $5,000,000 annually and $10,000,000 $40,000,000 during the 
103.22 	total period of the agreement, as provided in section 297A.68, subdivision 44, for purchases 
103.23 	made during the period the business was certified as a qualified business under this section. 
103.24 	The commissioner has discretion to set the maximum amounts of the annual and total sales 
103.25 	tax exemption allowed for each qualifying business as part of the business subsidy agreement.

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

103.27 	Sec. 4. Minnesota Statutes 2016, section 128C.24, is amended to read:
103.28 	128C.24 LEAGUE FUNDS TRANSFER.
103.29 	Beginning July 1, 2007, the Minnesota State High School League shall annually determine 
103.30 	the sales tax savings attributable to section 297A.70, subdivision 11 11a, and annually 
103.31 	transfer that amount to a nonprofit charitable foundation created for the purpose of promoting 
103.32 	high school extracurricular activities. The funds must be used by the foundation to make 
104.1 	grants to fund, assist, recognize, or promote high school students' participation in 
104.2 	extracurricular activities. The first priority for funding will be grants for scholarships to 
104.3 	individuals to offset athletic fees. The foundation must equitably award grants based on 
104.4 	considerations of gender balance, school size, and geographic location, to the extent feasible.

104.5 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
104.6 	30, 2017, and before July 1, 2027.

104.7 	Sec. 5. Minnesota Statutes 2016, section 297A.61, subdivision 3, is amended to read:
104.8 		Subd. 3.Sale and purchase. (a) "Sale" and "purchase" include, but are not limited to, 
104.9 	each of the transactions listed in this subdivision. In applying the provisions of this chapter, 
104.10 	the terms "tangible personal property" and "retail sale" include the taxable services listed 
104.11 	in paragraph (g), clause (6), items (i) to (vi) and (viii), and the provision of these taxable 
104.12 	services, unless specifically provided otherwise. Services performed by an employee for 
104.13 	an employer are not taxable. Services performed by a partnership or association for another 
104.14 	partnership or association are not taxable if one of the entities owns or controls more than 
104.15 	80 percent of the voting power of the equity interest in the other entity. Services performed 
104.16 	between members of an affiliated group of corporations are not taxable. For purposes of 
104.17 	the preceding sentence, "affiliated group of corporations" means those entities that would 
104.18 	be classified as members of an affiliated group as defined under United States Code, title 
104.19 	26, section 1504, disregarding the exclusions in section 1504(b).
104.20 	(b) Sale and purchase include:
104.21 	(1) any transfer of title or possession, or both, of tangible personal property, whether 
104.22 	absolutely or conditionally, for a consideration in money or by exchange or barter; and
104.23 	(2) the leasing of or the granting of a license to use or consume, for a consideration in 
104.24 	money or by exchange or barter, tangible personal property, other than a manufactured 
104.25 	home used for residential purposes for a continuous period of 30 days or more.
104.26 	(c) Sale and purchase include the production, fabrication, printing, or processing of 
104.27 	tangible personal property for a consideration for consumers who furnish either directly or 
104.28 	indirectly the materials used in the production, fabrication, printing, or processing.
104.29 	(d) Sale and purchase include the preparing for a consideration of food. Notwithstanding 
104.30 	section 297A.67, subdivision 2, taxable food includes, but is not limited to, the following:
104.31 	(1) prepared food sold by the retailer;
104.32 	(2) soft drinks;
105.1 	(3) candy; and
105.2 	(4) dietary supplements; and.
105.3 	(5) all food sold through vending machines.
105.4 	(e) A sale and a purchase includes the furnishing for a consideration of electricity, gas, 
105.5 	water, or steam for use or consumption within this state.
105.6 	(f) A sale and a purchase includes the transfer for a consideration of prewritten computer 
105.7 	software whether delivered electronically, by load and leave, or otherwise.
105.8 	(g) A sale and a purchase includes the furnishing for a consideration of the following 
105.9 	services:
105.10 	(1) the privilege of admission to places of amusement, recreational areas, or athletic 
105.11 	events, and the making available of amusement devices, tanning facilities, reducing salons, 
105.12 	steam baths, health clubs, and spas or athletic facilities;
105.13 	(2) lodging and related services by a hotel, rooming house, resort, campground, motel, 
105.14 	or trailer camp, including furnishing the guest of the facility with access to telecommunication 
105.15 	services, and the granting of any similar license to use real property in a specific facility, 
105.16 	other than the renting or leasing of it for a continuous period of 30 days or more under an 
105.17 	enforceable written agreement that may not be terminated without prior notice and including 
105.18 	accommodations intermediary services provided in connection with other services provided 
105.19 	under this clause;
105.20 	(3) nonresidential parking services, whether on a contractual, hourly, or other periodic 
105.21 	basis, except for parking at a meter;
105.22 	(4) the granting of membership in a club, association, or other organization if:
105.23 	(i) the club, association, or other organization makes available for the use of its members 
105.24 	sports and athletic facilities, without regard to whether a separate charge is assessed for use 
105.25 	of the facilities; and
105.26 	(ii) use of the sports and athletic facility is not made available to the general public on 
105.27 	the same basis as it is made available to members.
105.28 	Granting of membership means both onetime initiation fees and periodic membership dues. 
105.29 	Sports and athletic facilities include golf courses; tennis, racquetball, handball, and squash 
105.30 	courts; basketball and volleyball facilities; running tracks; exercise equipment; swimming 
105.31 	pools; and other similar athletic or sports facilities;
106.1 	(5) delivery of aggregate materials by a third party, excluding delivery of aggregate 
106.2 	material used in road construction; and delivery of concrete block by a third party if the 
106.3 	delivery would be subject to the sales tax if provided by the seller of the concrete block. 
106.4 	For purposes of this clause, "road construction" means construction of:
106.5 	(i) public roads;
106.6 	(ii) cartways; and
106.7 	(iii) private roads in townships located outside of the seven-county metropolitan area 
106.8 	up to the point of the emergency response location sign; and
106.9 	(6) services as provided in this clause:
106.10 	(i) laundry and dry cleaning services including cleaning, pressing, repairing, altering, 
106.11 	and storing clothes, linen services and supply, cleaning and blocking hats, and carpet, 
106.12 	drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not 
106.13 	include services provided by coin operated facilities operated by the customer;
106.14 	(ii) motor vehicle washing, waxing, and cleaning services, including services provided 
106.15 	by coin operated facilities operated by the customer, and rustproofing, undercoating, and 
106.16 	towing of motor vehicles;
106.17 	(iii) building and residential cleaning, maintenance, and disinfecting services and pest 
106.18 	control and exterminating services;
106.19 	(iv) detective, security, burglar, fire alarm, and armored car services; but not including 
106.20 	services performed within the jurisdiction they serve by off-duty licensed peace officers as 
106.21 	defined in section 626.84, subdivision 1, or services provided by a nonprofit organization 
106.22 	or any organization at the direction of a county for monitoring and electronic surveillance 
106.23 	of persons placed on in-home detention pursuant to court order or under the direction of the 
106.24 	Minnesota Department of Corrections;
106.25 	(v) pet grooming services;
106.26 	(vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting 
106.27 	and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor plant 
106.28 	care; tree, bush, shrub, and stump removal, except when performed as part of a land clearing 
106.29 	contract as defined in section 297A.68, subdivision 40; and tree trimming for public utility 
106.30 	lines. Services performed under a construction contract for the installation of shrubbery, 
106.31 	plants, sod, trees, bushes, and similar items are not taxable;
107.1 	(vii) massages, except when provided by a licensed health care facility or professional 
107.2 	or upon written referral from a licensed health care facility or professional for treatment of 
107.3 	illness, injury, or disease; and
107.4 	(viii) the furnishing of lodging, board, and care services for animals in kennels and other 
107.5 	similar arrangements, but excluding veterinary and horse boarding services.
107.6 	(h) A sale and a purchase includes the furnishing for a consideration of tangible personal 
107.7 	property or taxable services by the United States or any of its agencies or instrumentalities, 
107.8 	or the state of Minnesota, its agencies, instrumentalities, or political subdivisions.
107.9 	(i) A sale and a purchase includes the furnishing for a consideration of 
107.10 	telecommunications services, ancillary services associated with telecommunication services, 
107.11 	and pay television services. Telecommunication services include, but are not limited to, the 
107.12 	following services, as defined in section 297A.669: air-to-ground radiotelephone service, 
107.13 	mobile telecommunication service, postpaid calling service, prepaid calling service, prepaid 
107.14 	wireless calling service, and private communication services. The services in this paragraph 
107.15 	are taxed to the extent allowed under federal law.
107.16 	(j) A sale and a purchase includes the furnishing for a consideration of installation if the 
107.17 	installation charges would be subject to the sales tax if the installation were provided by 
107.18 	the seller of the item being installed.
107.19 	(k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer to a 
107.20 	customer when (1) the vehicle is rented by the customer for a consideration, or (2) the motor 
107.21 	vehicle dealer is reimbursed pursuant to a service contract as defined in section 59B.02, 
107.22 	subdivision 11.
107.23 	(l) A sale and a purchase includes furnishing for a consideration of specified digital 
107.24 	products or other digital products or granting the right for a consideration to use specified 
107.25 	digital products or other digital products on a temporary or permanent basis and regardless 
107.26 	of whether the purchaser is required to make continued payments for such right. Wherever 
107.27 	the term "tangible personal property" is used in this chapter, other than in subdivisions 10 
107.28 	and 38, the provisions also apply to specified digital products, or other digital products, 
107.29 	unless specifically provided otherwise or the context indicates otherwise.
107.30 	(m) The sale of the privilege of admission under section 297A.61, subdivision 3, 
107.31 	paragraph (g), clause (1), to a place of amusement, recreational area, or athletic event 
107.32 	includes all charges included in the privilege of admission's sales price, without deduction 
107.33 	for amenities that may be provided, unless the amenities are separately stated and the 
108.1 	purchaser of the privilege of admission is entitled to add or decline the amenities, and the 
108.2 	amenities are not otherwise taxable.

108.3 	EFFECTIVE DATE. The amendment to paragraph (d) is effective for sales and 
108.4 	purchases made after June 30, 2017. The amendment adding paragraph (m) is effective the 
108.5 	day following final enactment.

108.6 	Sec. 6. Minnesota Statutes 2016, section 297A.61, subdivision 10, is amended to read:
108.7 		Subd. 10.Tangible personal property. (a) "Tangible personal property" means personal 
108.8 	property that can be seen, weighed, measured, felt, or touched, or that is in any other manner 
108.9 	perceptible to the senses. "Tangible personal property" includes, but is not limited to, 
108.10 	electricity, water, gas, steam, and prewritten computer software.
108.11 	(b) Tangible personal property does not include:
108.12 	(1) large ponderous machinery and equipment used in a business or production activity 
108.13 	which at common law would be considered to be real property;
108.14 	(2)(1) property which is subject to an ad valorem property tax;
108.15 	(3)(2) property described in section 272.02, subdivision 9, clauses (a) to (d);
108.16 	(4)(3) property described in section 272.03, subdivision 2, clauses (3) and (5); and
108.17 	(5)(4) specified digital products, or other digital products, transferred electronically.

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

108.19 	Sec. 7. Minnesota Statutes 2016, section 297A.61, subdivision 34, is amended to read:
108.20 		Subd. 34.Taxable food sold through vending machines. "Taxable food sold through 
108.21 	vending machines" means taxable food under section 297A.61, subdivision 3, paragraph 
108.22 	(d), dispensed from a machine or other device that accepts payment including honor 
108.23 	payments.

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

108.26 	Sec. 8. Minnesota Statutes 2016, section 297A.61, is amended by adding a subdivision to 
108.27 	read:
108.28 		Subd. 58.Real property. (a) "Real property" includes:
108.29 	(1) the land itself;
109.1 	(2) buildings and structures constructed or erected on the land and intended to be 
109.2 	permanent; and
109.3 	(3) improvements and fixtures if incorporated into and intended to be of a permanent 
109.4 	benefit to a building or structure given its present use, and that cannot be removed without 
109.5 	causing substantial damage to the building or structure.
109.6 	(b) Real property does not include tools, implements, machinery, and equipment attached 
109.7 	or installed into real property for use in the business or production activity conducted thereon, 
109.8 	that qualify for exemption under section 297A.68, regardless of size, weight, or method of 
109.9 	incorporation into the real property.
109.10 	(c) If the exclusion provided in paragraph (b) does not apply, then the definition in 
109.11 	paragraph (a) must be used to determine whether tools, implements, machinery, or equipment 
109.12 	are real property.

109.13 	EFFECTIVE DATE. This section is effective for sales and purchases made after the 
109.14 	day following final enactment.

109.15 	Sec. 9. Minnesota Statutes 2016, section 297A.66, subdivision 1, is amended to read:
109.16 		Subdivision 1.Definitions. (a) To the extent allowed by the United States Constitution 
109.17 	and the laws of the United States, "retailer maintaining a place of business in this state," or 
109.18 	a similar term, means a retailer:
109.19 	(1) having or maintaining within this state, directly or by a subsidiary or an affiliate, an 
109.20 	office, place of distribution, sales, storage, or sample room or place, warehouse, or other 
109.21 	place of business, including the employment of a resident of this state who works from a 
109.22 	home office in this state; or
109.23 	(2) having a representative, including, but not limited to, an affiliate, agent, salesperson, 
109.24 	canvasser, or marketplace provider, solicitor, or other third party operating in this state 
109.25 	under the authority of the retailer or its subsidiary, for any purpose, including the repairing, 
109.26 	selling, delivering, installing, facilitating sales, processing sales, or soliciting of orders for 
109.27 	the retailer's goods or services, or the leasing of tangible personal property located in this 
109.28 	state, whether the place of business or agent, representative, affiliate, salesperson, canvasser, 
109.29 	or solicitor is located in the state permanently or temporarily, or whether or not the retailer, 
109.30 	subsidiary, or affiliate is authorized to do business in this state. A retailer is represented by 
109.31 	a marketplace provider in this state if the retailer makes sales in this state facilitated by a 
109.32 	marketplace provider that maintains a place of business in this state.
110.1 	(b) "Destination of a sale" means the location to which the retailer makes delivery of 
110.2 	the property sold, or causes the property to be delivered, to the purchaser of the property, 
110.3 	or to the agent or designee of the purchaser. The delivery may be made by any means, 
110.4 	including the United States Postal Service or a for-hire carrier.
110.5 	(c) "Marketplace provider" means any person who facilitates a retail sale by a retailer 
110.6 	by:
110.7 	(1) listing or advertising for sale by the retailer in any forum, tangible personal property, 
110.8 	services, or digital goods that are subject to tax under this chapter; and
110.9 	(2) either directly or indirectly through agreements or arrangements with third parties 
110.10 	collecting payment from the customer and transmitting that payment to the retailer regardless 
110.11 	of whether the marketplace provider receives compensation or other consideration in 
110.12 	exchange for its services.
110.13 	(d) "Total taxable retail sales" means the gross receipts from the sale of all tangible 
110.14 	goods, services, and digital goods subject to sales and use tax under this chapter.

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

110.26 	Sec. 11. Minnesota Statutes 2016, section 297A.66, subdivision 4, is amended to read:
110.27 		Subd. 4.Affiliated entities. (a) An entity is an "affiliate" of the retailer for purposes of 
110.28 	subdivision 1, paragraph (a), if the entity:
110.29 	(1) the entity uses its facilities or employees in this state to advertise, promote, or facilitate 
110.30 	the establishment or maintenance of a market for sales of items by the retailer to purchasers 
110.31 	in this state or for the provision of services to the retailer's purchasers in this state, such as 
111.1 	accepting returns of purchases for the retailer, providing assistance in resolving customer 
111.2 	complaints of the retailer, or providing other services; and
111.3 	(2) the retailer and the entity are related parties. has the same or a similar business name 
111.4 	to the retailer and sells, from a location or locations in this state, tangible personal property, 
111.5 	digital goods, or services, taxable under this chapter, that are similar to that sold by the 
111.6 	retailer;
111.7 	(3) maintains an office, distribution facility, salesroom, warehouse, storage place, or 
111.8 	other similar place of business in this state to facilitate the delivery of tangible personal 
111.9 	property, digital goods, or services sold by the retailer to its customers in this state;
111.10 	(4) maintains a place of business in this state and uses trademarks, service marks, or 
111.11 	trade names in this state that are the same or substantially similar to those used by the retailer, 
111.12 	and that use is done with the express or implied consent of the holder of the marks or names;
111.13 	(5) delivers, installs, or assembles tangible personal property in this state, or performs 
111.14 	maintenance or repair services on tangible personal property in this state, for tangible 
111.15 	personal property sold by the retailer;
111.16 	(6) facilitates the delivery of tangible personal property to customers of the retailer by 
111.17 	allowing the customers to pick up tangible personal property sold by the retailer at a place 
111.18 	of business the entity maintains in this state; or
111.19 	(7) shares management, business systems, business practices, or employees with the 
111.20 	retailer, or engages in intercompany transactions with the retailer related to the activities 
111.21 	that establish or maintain the market in this state of the retailer.
111.22 	(b) Two entities are related parties under this section if one of the entities meets at least 
111.23 	one of the following tests with respect to the other entity:
111.24 	(1) one or both entities is a corporation, and one entity and any party related to that entity 
111.25 	in a manner that would require an attribution of stock from the corporation to the party or 
111.26 	from the party to the corporation under the attribution rules of section 318 of the Internal 
111.27 	Revenue Code owns directly, indirectly, beneficially, or constructively at least 50 percent 
111.28 	of the value of the corporation's outstanding stock;
111.29 	(2) one or both entities is a partnership, estate, or trust and any partner or beneficiary, 
111.30 	and the partnership, estate, or trust and its partners or beneficiaries own directly, indirectly, 
111.31 	beneficially, or constructively, in the aggregate, at least 50 percent of the profits, capital, 
111.32 	stock, or value of the other entity or both entities; or
112.1 	(3) an individual stockholder and the members of the stockholder's family (as defined 
112.2 	in section 318 of the Internal Revenue Code) owns directly, indirectly, beneficially, or 
112.3 	constructively, in the aggregate, at least 50 percent of the value of both entities' outstanding 
112.4 	stock.;
112.5 	(4) the entities are related within the meaning of subsections (b) and (c) of section 267 
112.6 	or 707(b)(1) of the Internal Revenue Code; or
112.7 	(5) the entities have one or more ownership relationships and the relationships were 
112.8 	designed with a principal purpose of avoiding the application of this section.
112.9 	(c) An entity is an affiliate under the provisions of this subdivision if the requirements 
112.10 	of paragraphs (a) and (b) are met during any part of the 12-month period ending on the first 
112.11 	day of the month before the month in which the sale was made.

112.12 	Sec. 12. Minnesota Statutes 2016, section 297A.66, is amended by adding a subdivision 
112.13 	to read:
112.14 		Subd. 4b.Collection and remittance requirements for marketplace providers and 
112.15 	marketplace retailers. (a) A marketplace provider shall collect sales and use taxes and 
112.16 	remit them to the commissioner under section 297A.77 for all facilitated sales for a retailer, 
112.17 	and is subject to audit on the retail sales it facilitates unless either:
112.18 	(1) the retailer provides a copy of the retailer's registration to collect sales and use tax 
112.19 	in this state to the marketplace provider before the marketplace provider facilitates a sale; 
112.20 	or
112.21 	(2) upon inquiry by the marketplace provider or its agent, the commissioner discloses 
112.22 	that the retailer is registered to collect sales and use taxes in this state.
112.23 	(b) Nothing in this subdivision shall be construed to interfere with the ability of a 
112.24 	marketplace provider and a retailer to enter into an agreement regarding fulfillment of the 
112.25 	requirements of this chapter.
112.26 	(c) A marketplace provider is not liable under this subdivision for failure to file and 
112.27 	collect and remit sales and use taxes if the marketplace provider demonstrates that the error 
112.28 	was due to incorrect or insufficient information given to the marketplace provider by the 
112.29 	retailer. This paragraph does not apply if the marketplace provider and the marketplace 
112.30 	retailer are related as defined in subdivision 4, paragraph (b).

113.1 	Sec. 13. Minnesota Statutes 2016, section 297A.67, subdivision 2, is amended to read:
113.2 		Subd. 2.Food and food ingredients. Except as otherwise provided in this subdivision, 
113.3 	food and food ingredients are exempt. For purposes of this subdivision, "food" and "food 
113.4 	ingredients" mean substances, whether in liquid, concentrated, solid, frozen, dried, or 
113.5 	dehydrated form, that are sold for ingestion or chewing by humans and are consumed for 
113.6 	their taste or nutritional value. Food and food ingredients exempt under this subdivision do 
113.7 	not include candy, soft drinks, food sold through vending machines, dietary supplements, 
113.8 	and prepared foods. Food and food ingredients do not include alcoholic beverages and 
113.9 	tobacco. For purposes of this subdivision, "alcoholic beverages" means beverages that are 
113.10 	suitable for human consumption and contain one-half of one percent or more of alcohol by 
113.11 	volume. For purposes of this subdivision, "tobacco" means cigarettes, cigars, chewing or 
113.12 	pipe tobacco, or any other item that contains tobacco. For purposes of this subdivision, 
113.13 	"dietary supplements" means any product, other than tobacco, intended to supplement the 
113.14 	diet that:
113.15 	(1) contains one or more of the following dietary ingredients:
113.16 	(i) a vitamin;
113.17 	(ii) a mineral;
113.18 	(iii) an herb or other botanical;
113.19 	(iv) an amino acid;
113.20 	(v) a dietary substance for use by humans to supplement the diet by increasing the total 
113.21 	dietary intake; and
113.22 	(vi) a concentrate, metabolite, constituent, extract, or combination of any ingredient 
113.23 	described in items (i) to (v);
113.24 	(2) is intended for ingestion in tablet, capsule, powder, softgel, gelcap, or liquid form, 
113.25 	or if not intended for ingestion in such form, is not represented as conventional food and is 
113.26 	not represented for use as a sole item of a meal or of the diet; and
113.27 	(3) is required to be labeled as a dietary supplement, identifiable by the supplement facts 
113.28 	box found on the label and as required pursuant to Code of Federal Regulations, title 21, 
113.29 	section 101.36.

113.30 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
113.31 	30, 2017.

114.1 	Sec. 14. Minnesota Statutes 2016, section 297A.67, subdivision 4, is amended to read:
114.2 		Subd. 4.Exempt meals at residential facilities.  Prepared food, candy, and soft drinks 
114.3 	served to patients, inmates, or persons residing at hospitals, sanitariums, nursing homes, 
114.4 	senior citizen homes, and correctional, detention, and detoxification facilities are exempt. 
114.5 	Taxable food sold through vending machines is not exempt.

114.6 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
114.7 	30, 2017.

114.8 	Sec. 15. Minnesota Statutes 2016, section 297A.67, subdivision 5, is amended to read:
114.9 		Subd. 5.Exempt meals at schools. Prepared food, candy, and soft drinks served at 
114.10 	public and private elementary, middle, or secondary schools as defined in section 120A.05
114.11 	are exempt. Prepared food, candy, and soft drinks served to students at a college, university, 
114.12 	or private career school under a board contract are exempt. Taxable food sold through 
114.13 	vending machines is not exempt.

114.14 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
114.15 	30, 2017.

114.16 	Sec. 16. Minnesota Statutes 2016, section 297A.67, subdivision 6, is amended to read:
114.17 		Subd. 6.Other exempt meals. (a) Prepared food, candy, and soft drinks purchased for 
114.18 	and served exclusively to individuals who are 60 years of age or over and their spouses or 
114.19 	to disabled persons and their spouses by governmental agencies, nonprofit organizations, 
114.20 	or churches, or pursuant to any program funded in whole or in part through United States 
114.21 	Code, title 42, sections 3001 through 3045, wherever delivered, prepared, or served, are 
114.22 	exempt. Taxable food sold through vending machines is not exempt.
114.23 	(b) Prepared food, candy, and soft drinks purchased for and served exclusively to children 
114.24 	who are less than 14 years of age or disabled children who are less than 16 years of age and 
114.25 	who are attending a child care or early childhood education program, are exempt if they 
114.26 	are:
114.27 	(1) purchased by a nonprofit child care facility that is exempt under section 297A.70, 
114.28 	subdivision 4, and that primarily serves families with income of 250 percent or less of 
114.29 	federal poverty guidelines; and
114.30 	(2) prepared at the site of the child care facility.

115.1 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
115.2 	30, 2017.

115.3 	Sec. 17. Minnesota Statutes 2016, section 297A.67, is amended by adding a subdivision 
115.4 	to read:
115.5 		Subd. 34.Precious metal bullion. (a) Precious metal bullion is exempt. For purposes 
115.6 	of this subdivision, "precious metal bullion" means bars or rounds that consist of 99.9 percent 
115.7 	or more by weight of either gold, silver, platinum, or palladium and are marked with weight, 
115.8 	purity, and content.
115.9 	(b) The exemption under this subdivision does not apply to sales and purchases of 
115.10 	jewelry, works of art, or scrap metal.
115.11 	(c) The intent of this subdivision is to eliminate the difference in tax treatment between 
115.12 	the sale of precious metal bullion and the sale of stock, bullion ETFs, bonds, and other 
115.13 	investment instruments.

115.14 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
115.15 	30, 2017.

115.16 	Sec. 18. Minnesota Statutes 2016, section 297A.67, is amended by adding a subdivision 
115.17 	to read:
115.18 		Subd. 35.Suite licenses. The sale of the privilege of admission under section 297A.61, 
115.19 	subdivision 3, paragraph (g), clause (1), to a place of amusement or athletic event does not 
115.20 	include consideration paid for a license to use a private suite, private skybox, or private box 
115.21 	seat, and the sale of the license is exempt provided that: (1) the lessee may use the private 
115.22 	suite, private skybox, or private box seat by mutual arrangement with the lessor on days 
115.23 	when there is no amusement or athletic event; and (2) the sales price for the privilege of 
115.24 	admission is separately stated and is equal to or greater than the highest priced general 
115.25 	admission ticket for the closest seat not in the private suite, private skybox, or private box 
115.26 	seat.

115.27 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
115.28 	30, 2017.

116.1 	Sec. 19. Minnesota Statutes 2016, section 297A.67, is amended by adding a subdivision 
116.2 	to read:
116.3 		Subd. 36.Stadium builder's licenses. The sale of the privilege of admission under 
116.4 	section 297A.61, subdivision 3, paragraph (g), clause (1), does not include consideration 
116.5 	paid for a stadium builder's license authorized under section 473J.15, subdivision 14, and 
116.6 	the sale of the license is exempt.

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

116.8 	Sec. 20. Minnesota Statutes 2016, section 297A.68, subdivision 5, is amended to read:
116.9 		Subd. 5.Capital equipment. (a) Capital equipment is exempt.
116.10 	"Capital equipment" means machinery and equipment purchased or leased, and used in 
116.11 	this state by the purchaser or lessee primarily for manufacturing, fabricating, mining, or 
116.12 	refining tangible personal property to be sold ultimately at retail if the machinery and 
116.13 	equipment are essential to the integrated production process of manufacturing, fabricating, 
116.14 	mining, or refining. Capital equipment also includes machinery and equipment used primarily 
116.15 	to electronically transmit results retrieved by a customer of an online computerized data 
116.16 	retrieval system.
116.17 	(b) Capital equipment includes, but is not limited to:
116.18 	(1) machinery and equipment used to operate, control, or regulate the production 
116.19 	equipment;
116.20 	(2) machinery and equipment used for research and development, design, quality control, 
116.21 	and testing activities;
116.22 	(3) environmental control devices that are used to maintain conditions such as 
116.23 	temperature, humidity, light, or air pressure when those conditions are essential to and are 
116.24 	part of the production process;
116.25 	(4) materials and supplies used to construct and install machinery or equipment;
116.26 	(5) repair and replacement parts, including accessories, whether purchased as spare parts, 
116.27 	repair parts, or as upgrades or modifications to machinery or equipment;
116.28 	(6) materials used for foundations that support machinery or equipment;
116.29 	(7) materials used to construct and install special purpose buildings used in the production 
116.30 	process;
117.1 	(8) ready-mixed concrete equipment in which the ready-mixed concrete is mixed as part 
117.2 	of the delivery process regardless if mounted on a chassis, repair parts for ready-mixed 
117.3 	concrete trucks, and leases of ready-mixed concrete trucks; and
117.4 	(9) machinery or equipment used for research, development, design, or production of 
117.5 	computer software.
117.6 	(c) Capital equipment does not include the following:
117.7 	(1) motor vehicles taxed under chapter 297B;
117.8 	(2) machinery or equipment used to receive or store raw materials;
117.9 	(3) building materials, except for materials included in paragraph (b), clauses (6) and 
117.10 	(7);
117.11 	(4) machinery or equipment used for nonproduction purposes, including, but not limited 
117.12 	to, the following: plant security, fire prevention, first aid, and hospital stations; support 
117.13 	operations or administration; pollution control; and plant cleaning, disposal of scrap and 
117.14 	waste, plant communications, space heating, cooling, lighting, or safety;
117.15 	(5) farm machinery and aquaculture production equipment as defined by section 297A.61, 
117.16 	subdivisions 12 and 13;
117.17 	(6) machinery or equipment purchased and installed by a contractor as part of an 
117.18 	improvement to real property;
117.19 	(7) machinery and equipment used by restaurants in the furnishing, preparing, or serving 
117.20 	of prepared foods as defined in section 297A.61, subdivision 31;
117.21 	(8) machinery and equipment used to furnish the services listed in section 297A.61, 
117.22 	subdivision 3, paragraph (g), clause (6), items (i) to (vi) and (viii);
117.23 	(9) machinery or equipment used in the transportation, transmission, or distribution of 
117.24 	petroleum, liquefied gas, natural gas, water, or steam, in, by, or through pipes, lines, tanks, 
117.25 	mains, or other means of transporting those products. This clause does not apply to machinery 
117.26 	or equipment used to blend petroleum or biodiesel fuel as defined in section 239.77; or
117.27 	(10) any other item that is not essential to the integrated process of manufacturing, 
117.28 	fabricating, mining, or refining.
117.29 	(d) For purposes of this subdivision:
117.30 	(1) "Equipment" means independent devices or tools separate from machinery but 
117.31 	essential to an integrated production process, including computers and computer software, 
118.1 	used in operating, controlling, or regulating machinery and equipment; and any subunit or 
118.2 	assembly comprising a component of any machinery or accessory or attachment parts of 
118.3 	machinery, such as tools, dies, jigs, patterns, and molds.
118.4 	(2) "Fabricating" means to make, build, create, produce, or assemble components or 
118.5 	property to work in a new or different manner.
118.6 	(3) "Integrated production process" means a process or series of operations through 
118.7 	which tangible personal property is manufactured, fabricated, mined, or refined. For purposes 
118.8 	of this clause, (i) manufacturing begins with the removal of raw materials from inventory 
118.9 	and ends when the last process prior to loading for shipment has been completed; (ii) 
118.10 	fabricating begins with the removal from storage or inventory of the property to be assembled, 
118.11 	processed, altered, or modified and ends with the creation or production of the new or 
118.12 	changed product; (iii) mining begins with the removal of overburden from the site of the 
118.13 	ores, minerals, stone, peat deposit, or surface materials and ends when the last process before 
118.14 	stockpiling is completed; and (iv) refining begins with the removal from inventory or storage 
118.15 	of a natural resource and ends with the conversion of the item to its completed form.
118.16 	(4) "Machinery" means mechanical, electronic, or electrical devices, including computers 
118.17 	and computer software, that are purchased or constructed to be used for the activities set 
118.18 	forth in paragraph (a), beginning with the removal of raw materials from inventory through 
118.19 	completion of the product, including packaging of the product.
118.20 	(5) "Machinery and equipment used for pollution control" means machinery and 
118.21 	equipment used solely to eliminate, prevent, or reduce pollution resulting from an activity 
118.22 	described in paragraph (a).
118.23 	(6) "Manufacturing" means an operation or series of operations where raw materials are 
118.24 	changed in form, composition, or condition by machinery and equipment and which results 
118.25 	in the production of a new article of tangible personal property. For purposes of this 
118.26 	subdivision, "manufacturing" includes the generation of electricity or steam to be sold at 
118.27 	retail.
118.28 	(7) "Mining" means the extraction of minerals, ores, stone, or peat.
118.29 	(8) "Online data retrieval system" means a system whose cumulation of information is 
118.30 	equally available and accessible to all its customers.
118.31 	(9) "Primarily" means machinery and equipment used 50 percent or more of the time in 
118.32 	an activity described in paragraph (a).
119.1 	(10) "Refining" means the process of converting a natural resource to an intermediate 
119.2 	or finished product, including the treatment of water to be sold at retail.
119.3 	(11) This subdivision does not apply to telecommunications equipment as provided in 
119.4 	subdivision 35a, and does not apply to wire, cable, fiber, or poles, or conduit for 
119.5 	telecommunications services.

119.6 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
119.7 	30, 2017.

119.8 	Sec. 21. Minnesota Statutes 2016, section 297A.68, subdivision 9, is amended to read:
119.9 		Subd. 9.Super Bowl admissions and related events. (a) The granting of the privilege 
119.10 	of admission to a world championship football game sponsored by the National Football 
119.11 	League is and to related events sponsored by the National Football League or its affiliates, 
119.12 	or the Minnesota Super Bowl Host Committee, are exempt.
119.13 	(b) The sale of nonresidential parking by the National Football League for attendance 
119.14 	at a world championship football game sponsored by the National Football League and for 
119.15 	related events sponsored by the National Football League or its affiliates, or the Minnesota 
119.16 	Super Bowl Host Committee, is exempt. Purchases of nonresidential parking services by 
119.17 	the Super Bowl Host Committee are purchases made exempt for resale.
119.18 	(c) For the purposes of this subdivision:
119.19 	(1) "related events sponsored by the National Football League or its affiliates" includes 
119.20 	but is not limited to preparatory advance visits, NFL Experience, NFL Tailgate, NFL On 
119.21 	Location, and NFL House; and
119.22 	(2) "affiliates" does not include National Football League teams.

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

119.25 	Sec. 22. Minnesota Statutes 2016, section 297A.68, subdivision 19, is amended to read:
119.26 		Subd. 19.Petroleum products. The following petroleum products are exempt:
119.27 	(1) products upon which a tax has been imposed and paid under chapter 296A, and for 
119.28 	which no refund has been or will be allowed because the buyer used the fuel for nonhighway 
119.29 	use;
120.1 	(2) products that are used in the improvement of agricultural land by constructing, 
120.2 	maintaining, and repairing drainage ditches, tile drainage systems, grass waterways, water 
120.3 	impoundment, and other erosion control structures;
120.4 	(3) products purchased by a transit system receiving financial assistance under section 
120.5 	174.24, 256B.0625, subdivision 17, or 473.384;
120.6 	(4) products purchased by an ambulance service licensed under chapter 144E;
120.7 	(5) products used in a passenger snowmobile, as defined in section 296A.01, subdivision 
120.8 	39, for off-highway business use as part of the operations of a resort as provided under 
120.9 	section 296A.16, subdivision 2, clause (2);
120.10 	(6) products purchased by a state or a political subdivision of a state for use in motor 
120.11 	vehicles exempt from registration under section 168.012, subdivision 1, paragraph (b);
120.12 	(7) products purchased by providers of transportation to recipients of medical assistance 
120.13 	home and community-based services waivers enrolled in day programs, including adult day 
120.14 	care, family adult day care, day treatment and habilitation, prevocational services, and 
120.15 	structured day services; or
120.16 	(8) products used in a motor vehicle used exclusively as a mobile medical unit for the 
120.17 	provision of medical or dental services by a federally qualified health center, as defined 
120.18 	under title 19 of the federal Social Security Act, as amended by Section 4161 of the Omnibus 
120.19 	Budget Reconciliation Act of 1990.; or
120.20 	(9) special fuel used for one of the following purposes:
120.21 	(i) to power a refrigeration unit mounted on a licensed motor vehicle, provided that the 
120.22 	unit has an engine separate from the one used to propel the vehicle and the fuel is used 
120.23 	exclusively for the unit;
120.24 	(ii) to power an unlicensed motor vehicle that is used solely or primarily to move 
120.25 	semitrailers within a cargo yard, warehouse facility, or intermodal facility; or
120.26 	(iii) to operate a power take-off unit or auxiliary engine in or on a licensed motor vehicle, 
120.27 	whether or not the unit or engine is fueled from the same or a different fuel tank as that 
120.28 	from which the motor vehicle is fueled.

120.29 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
120.30 	30, 2017.

121.1 	Sec. 23. Minnesota Statutes 2016, section 297A.68, subdivision 35a, is amended to read:
121.2 		Subd. 35a.Telecommunications or pay television services machinery and equipment.
 121.3 	(a) Telecommunications or pay television services machinery and equipment purchased or 
121.4 	leased for use directly by a telecommunications or pay television services provider primarily 
121.5 	in the provision of telecommunications or pay television services that are ultimately to be 
121.6 	sold at retail are exempt, regardless of whether purchased by the owner, a contractor, or a 
121.7 	subcontractor.
121.8 	(b) For purposes of this subdivision, "telecommunications or pay television machinery 
121.9 	and equipment" includes, but is not limited to:
121.10 	(1) machinery, equipment, and fixtures utilized in receiving, initiating, amplifying, 
121.11 	processing, transmitting, retransmitting, recording, switching, or monitoring 
121.12 	telecommunications or pay television services, such as computers, transformers, amplifiers, 
121.13 	routers, bridges, repeaters, multiplexers, and other items performing comparable functions;
121.14 	(2) machinery, equipment, and fixtures used in the transportation of telecommunications 
121.15 	or pay television services, such as radio transmitters and receivers, satellite equipment, 
121.16 	microwave equipment, fiber, conduit, and other transporting media, but not wire, cable, 
121.17 	fiber, or poles, or conduit;
121.18 	(3) ancillary machinery, equipment, and fixtures that regulate, control, protect, or enable 
121.19 	the machinery in clauses (1) and (2) to accomplish its intended function, such as auxiliary 
121.20 	power supply, test equipment, towers, heating, ventilating, and air conditioning equipment 
121.21 	necessary to the operation of the telecommunications or pay television equipment; and 
121.22 	software necessary to the operation of the telecommunications or pay television equipment; 
121.23 	and
121.24 	(4) repair and replacement parts, including accessories, whether purchased as spare parts, 
121.25 	repair parts, or as upgrades or modifications to qualified machinery or equipment.

121.26 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
121.27 	30, 2017.

121.28 	Sec. 24. Minnesota Statutes 2016, section 297A.68, is amended by adding a subdivision 
121.29 	to read:
121.30 		Subd. 45.Jukebox music. The purchase of music, either as a digital audio work or in 
121.31 	tangible form such as a record or compact disc, by operators that provide the service of 
121.32 	making available jukeboxes as amusement devices, as provided in section 297A.61, 
122.1 	subdivision 3, paragraph (g), clause (1), is exempt if the music is used exclusively for the 
122.2 	jukebox.

122.3 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
122.4 	30, 2017.

122.5 	Sec. 25. Minnesota Statutes 2016, section 297A.70, subdivision 4, is amended to read:
122.6 		Subd. 4.Sales to nonprofit groups. (a) All sales, except those listed in paragraph (b), 
122.7 	to the following "nonprofit organizations" are exempt:
122.8 	(1) a corporation, society, association, foundation, or institution organized and operated 
122.9 	exclusively for charitable, religious, or educational purposes if the item purchased is used 
122.10 	in the performance of charitable, religious, or educational functions; and
122.11 	(2) any senior citizen group or association of groups that:
122.12 	(i) in general limits membership to persons who are either age 55 or older, or physically 
122.13 	disabled;
122.14 	(ii) is organized and operated exclusively for pleasure, recreation, and other nonprofit 
122.15 	purposes, not including housing, no part of the net earnings of which inures to the benefit 
122.16 	of any private shareholders; and
122.17 	(iii) is an exempt organization under section 501(c) of the Internal Revenue Code.; and
122.18 	(3) an organization that qualifies for an exemption for memberships under subdivision 
122.19 	12 if the item is purchased and used in the performance of the organization's mission.
122.20 	For purposes of this subdivision, charitable purpose includes the maintenance of a cemetery 
122.21 	owned by a religious organization.
122.22 	(b) This exemption does not apply to the following sales:
122.23 	(1) building, construction, or reconstruction materials purchased by a contractor or a 
122.24 	subcontractor as a part of a lump-sum contract or similar type of contract with a guaranteed 
122.25 	maximum price covering both labor and materials for use in the construction, alteration, or 
122.26 	repair of a building or facility;
122.27 	(2) construction materials purchased by tax-exempt entities or their contractors to be 
122.28 	used in constructing buildings or facilities that will not be used principally by the tax-exempt 
122.29 	entities;
122.30 	(3) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause (2), 
122.31 	and prepared food, candy, soft drinks, and alcoholic beverages as defined in section 297A.67, 
123.1 	subdivision 2, except wine purchased by an established religious organization for sacramental 
123.2 	purposes or as allowed under subdivision 9a; and
123.3 	(4) leasing of a motor vehicle as defined in section 297B.01, subdivision 11, except as 
123.4 	provided in paragraph (c).
123.5 	(c) This exemption applies to the leasing of a motor vehicle as defined in section 297B.01, 
123.6 	subdivision 11, only if the vehicle is:
123.7 	(1) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or a 
123.8 	passenger automobile, as defined in section 168.002, if the automobile is designed and used 
123.9 	for carrying more than nine persons including the driver; and
123.10 	(2) intended to be used primarily to transport tangible personal property or individuals, 
123.11 	other than employees, to whom the organization provides service in performing its charitable, 
123.12 	religious, or educational purpose.
123.13 	(d) A limited liability company also qualifies for exemption under this subdivision if 
123.14 	(1) it consists of a sole member that would qualify for the exemption, and (2) the items 
123.15 	purchased qualify for the exemption.

123.16 	EFFECTIVE DATE.  This section is effective for sales and purchases made after June 
123.17 	30, 2017.

123.18 	Sec. 26. Minnesota Statutes 2016, section 297A.70, is amended by adding a subdivision 
123.19 	to read:
123.20 		Subd. 11a.Minnesota State High School League tickets and admissions. Tickets and 
123.21 	admissions to games, events, and activities sponsored by the Minnesota State High School 
123.22 	League under chapter 128C are exempt.

123.23 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
123.24 	30, 2017, and before July 1, 2027.

123.25 	Sec. 27. Minnesota Statutes 2016, section 297A.70, subdivision 12, is amended to read:
123.26 		Subd. 12.YMCA, YWCA, and JCC, and similar memberships. (a) The sale of 
123.27 	memberships, meaning both onetime initiation fees and periodic membership dues, to an 
123.28 	association incorporated under section 315.44 or an organization defined under section 
123.29 	315.51, or a nonprofit organization offering similar services are exempt. However, all 
123.30 	separate charges made for the privilege of having access to and the use of the association's 
123.31 	sports and athletic facilities are taxable.
124.1 	(b) For purposes of this subdivision, a "nonprofit organization offering similar services" 
124.2 	means an exempt organization under section 501(c)(3) of the Internal Revenue Code, whose 
124.3 	mission is to support youth and families through a variety of activities, including membership 
124.4 	allowing access to athletic facilities, and who provide free or reduced-price memberships 
124.5 	to seniors or low-income persons or families.

124.6 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
124.7 	30, 2017.

124.8 	Sec. 28. Minnesota Statutes 2016, section 297A.70, subdivision 14, is amended to read:
124.9 		Subd. 14.Fund-raising events sponsored by nonprofit groups. (a) Sales of tangible 
124.10 	personal property or services at, and admission charges for fund-raising events sponsored 
124.11 	by, a nonprofit organization are exempt if:
124.12 	(1) all gross receipts are recorded as such, in accordance with generally accepted 
124.13 	accounting practices, on the books of the nonprofit organization; and
124.14 	(2) the entire proceeds, less the necessary expenses for the event, will be used solely 
124.15 	and exclusively for charitable, religious, or educational purposes. Exempt sales include the 
124.16 	sale of prepared food, candy, and soft drinks at the fund-raising event.
124.17 	(b) This exemption is limited in the following manner:
124.18 	(1) it does not apply to admission charges for events involving bingo or other gambling 
124.19 	activities or to charges for use of amusement devices involving bingo or other gambling 
124.20 	activities;
124.21 	(2) all gross receipts are taxable if the profits are not used solely and exclusively for 
124.22 	charitable, religious, or educational purposes;
124.23 	(3) it does not apply unless the organization keeps a separate accounting record, including 
124.24 	receipts and disbursements from each fund-raising event that documents all deductions from 
124.25 	gross receipts with receipts and other records;
124.26 	(4) it does not apply to any sale made by or in the name of a nonprofit corporation as 
124.27 	the active or passive agent of a person that is not a nonprofit corporation;
124.28 	(5) all gross receipts are taxable if fund-raising events exceed 24 days per year;
124.29 	(6) it does not apply to fund-raising events conducted on premises leased for more than 
124.30 	five ten days but less than 30 days; and
125.1 	(7) it does not apply if the risk of the event is not borne by the nonprofit organization 
125.2 	and the benefit to the nonprofit organization is less than the total amount of the state and 
125.3 	local tax revenues forgone by this exemption.
125.4 	(c) For purposes of this subdivision, a "nonprofit organization" means any unit of 
125.5 	government, corporation, society, association, foundation, or institution organized and 
125.6 	operated for charitable, religious, educational, civic, fraternal, and senior citizens' or veterans' 
125.7 	purposes, no part of the net earnings of which inures to the benefit of a private individual.
125.8 	(d) For purposes of this subdivision, "fund-raising events" means activities of limited 
125.9 	duration, not regularly carried out in the normal course of business, that attract patrons for 
125.10 	community, social, and entertainment purposes, such as auctions, bake sales, ice cream 
125.11 	socials, block parties, carnivals, competitions, concerts, concession stands, craft sales, 
125.12 	bazaars, dinners, dances, door-to-door sales of merchandise, fairs, fashion shows, festivals, 
125.13 	galas, special event workshops, sporting activities such as marathons and tournaments, and 
125.14 	similar events. Fund-raising events do not include the operation of a regular place of business 
125.15 	in which services are provided or sales are made during regular hours such as bookstores, 
125.16 	thrift stores, gift shops, restaurants, ongoing Internet sales, regularly scheduled classes, or 
125.17 	other activities carried out in the normal course of business.

125.18 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
125.19 	30, 2017.

125.20 	Sec. 29. Minnesota Statutes 2016, section 297A.70, is amended by adding a subdivision 
125.21 	to read:
125.22 		Subd. 21.Ice arenas and rinks. Sales to organizations that exist primarily for the purpose 
125.23 	of operating ice arenas or rinks that are part of the Duluth Heritage Sports Center and are 
125.24 	used for youth and high school programs are exempt if the organization is a private, nonprofit 
125.25 	corporation exempt from federal income taxation under section 501(c)(3) of the Internal 
125.26 	Revenue Code.

125.27 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
125.28 	30, 2017.

125.29 	Sec. 30. Minnesota Statutes 2016, section 297A.71, subdivision 44, is amended to read:
125.30 		Subd. 44.Building materials, capital projects. (a) Materials and supplies used or 
125.31 	consumed in and equipment incorporated into the construction or improvement of a capital 
126.1 	project funded partially or wholly under section 297A.9905 are exempt, provided that the 
126.2 	project has either:
126.3 	(1) a total construction cost of at least $40,000,000 within a 24-month period.; or
126.4 	(2) a total construction cost of at least $100,000,000 for a sports facility project, including 
126.5 	infrastructure costs, if construction contracts are signed, that begins after July 1, 2016, and 
126.6 	before December 31, 2017.
126.7 	(b) Materials and supplies used or consumed in and equipment incorporated into the 
126.8 	construction, remodeling, expansion, or improvement of an ice arena or other buildings or 
126.9 	facilities owned and operated by the city of Plymouth are exempt. For purposes of this 
126.10 	paragraph, "facilities" include municipal streets and facilities associated with streets including 
126.11 	but not limited to lighting, curbs and gutters, and sidewalks. The total amount of refund on 
126.12 	all building materials, supplies, and equipment that the city may apply for under this 
126.13 	paragraph is $2,500,000.
126.14 	(c) The tax on purchases exempt under this provision paragraph (a), clause (1), and 
126.15 	paragraph (b), must be imposed and collected as if the rate under section 297A.62, 
126.16 	subdivision 1, applied and then refunded in the manner provided in section 297A.75.
126.17 	Notwithstanding section 289A.40, the city of Plymouth must file for refund by December 
126.18 	31, 2017, for sales tax paid on all eligible purchases under paragraph (b) made prior to 
126.19 	December 31, 2015.
126.20 	(d) The exemption under paragraph (a), clause (2), expires one year after the date that 
126.21 	the first major sports game is played at the sports facility.
126.22 	(e) For purposes of paragraph (a), clause (2), the term "infrastructure" means plazas, 
126.23 	parking structures, transit facilities, rights-of-way, sidewalks, pedestrian bridges, bicycle 
126.24 	paths, skyways, tunnels, lighting, landscaping, drainage improvements, utilities, sewer, and 
126.25 	other such facilities and improvements that are:
126.26 	(1) on land controlled by the city of St. Paul, when construction is complete;
126.27 	(2) located within the sports facility site within the boundary of Snelling Avenue to the 
126.28 	east, University Avenue to the north, marked Interstate Highway 94 to the south, and Pascal 
126.29 	Street to the west, in St. Paul, Minnesota; and
126.30 	(3) designed to facilitate public access to or to serve only the sports facility, and not to 
126.31 	provide access to or serve any adjoining commercial or residential properties.

126.32 	EFFECTIVE DATE. (a) The amendment adding paragraph (b) and to paragraph (c) is 
126.33 	effective retroactively for sales and purchases made after January 1, 2013.
127.1 	(b) The amendment adding paragraphs (d) and (e) and to paragraph (a) is effective the 
127.2 	day following final enactment.

127.3 	Sec. 31. Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision 
127.4 	to read:
127.5 		Subd. 49.Properties destroyed by fire. Building materials and supplies used in, and 
127.6 	equipment incorporated into, the construction or replacement of real property that is located 
127.7 	in Madelia affected by the fire on February 3, 2016, are exempt. The tax must be imposed 
127.8 	and collected as if the rate under section 297A.62, subdivision 1, applied and then refunded 
127.9 	in the manner provided in section 297A.75.

127.10 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
127.11 	made after December 31, 2015, and before July 1, 2018.

127.12 	Sec. 32. Minnesota Statutes 2016, section 297A.71, is amended by adding a subdivision 
127.13 	to read:
127.14 		Subd. 50.Properties destroyed by fire. (a) Building materials and supplies used in, 
127.15 	and equipment incorporated into, the construction or replacement of real property that is 
127.16 	located in Melrose affected by the fire on September 8, 2016, are exempt.
127.17 	(b) For sales and purchases made after September 30, 2016, and before July 1, 2017, 
127.18 	the tax must be imposed and collected as if the rate under section 297A.62, subdivision 1, 
127.19 	applied and then refunded in the manner provided in section 297A.75.

127.20 	EFFECTIVE DATE. Paragraph (a) is effective retroactively for sales and purchases 
127.21 	made after September 30, 2016, and before January 1, 2019. Paragraph (b) is effective for 
127.22 	sales and purchases made after September 30, 2016, and before July 1, 2017.

127.23 	Sec. 33. Minnesota Statutes 2016, section 297A.75, subdivision 1, is amended to read:
127.24 		Subdivision 1.Tax collected. The tax on the gross receipts from the sale of the following 
127.25 	exempt items must be imposed and collected as if the sale were taxable and the rate under 
127.26 	section 297A.62, subdivision 1, applied. The exempt items include:
127.27 	(1) building materials for an agricultural processing facility exempt under section 
127.28 	297A.71, subdivision 13;
127.29 	(2) building materials for mineral production facilities exempt under section 297A.71, 
127.30 	subdivision 14;
127.31 	(3) building materials for correctional facilities under section 297A.71, subdivision 3;
128.1 	(4) building materials used in a residence for disabled veterans exempt under section 
128.2 	297A.71, subdivision 11;
128.3 	(5) elevators and building materials exempt under section 297A.71, subdivision 12;
128.4 	(6) materials and supplies for qualified low-income housing under section 297A.71, 
128.5 	subdivision 23;
128.6 	(7) materials, supplies, and equipment for municipal electric utility facilities under 
128.7 	section 297A.71, subdivision 35;
128.8 	(8) equipment and materials used for the generation, transmission, and distribution of 
128.9 	electrical energy and an aerial camera package exempt under section 297A.68, subdivision 
128.10 	37;
128.11 	(9) commuter rail vehicle and repair parts under section 297A.70, subdivision 3, paragraph 
128.12 	(a), clause (10);
128.13 	(10) materials, supplies, and equipment for construction or improvement of projects and 
128.14 	facilities under section 297A.71, subdivision 40;
128.15 	(11) materials, supplies, and equipment for construction, improvement, or expansion 
128.16 	of:
128.17 	(i) an aerospace defense manufacturing facility exempt under Minnesota Statutes 2014, 
128.18 	section 297A.71, subdivision 42;
128.19 	(ii) a biopharmaceutical manufacturing facility exempt under section 297A.71, subdivision 
128.20 	45;
128.21 	(iii) a research and development facility exempt under Minnesota Statutes 2014, section 
128.22 	297A.71, subdivision 46; and
128.23 	(iv) an industrial measurement manufacturing and controls facility exempt under 
128.24 	Minnesota Statutes 2014, section 297A.71, subdivision 47;
128.25 	(12) enterprise information technology equipment and computer software for use in a 
128.26 	qualified data center exempt under section 297A.68, subdivision 42;
128.27 	(13) materials, supplies, and equipment for qualifying capital projects under section 
128.28 	297A.71, subdivision 44, paragraph (a), clause (1), and paragraph (b);
128.29 	(14) items purchased for use in providing critical access dental services exempt under 
128.30 	section 297A.70, subdivision 7, paragraph (c); and
129.1 	(15) items and services purchased under a business subsidy agreement for use or 
129.2 	consumption primarily in greater Minnesota exempt under section 297A.68, subdivision 
129.3 	44.;
129.4 	(16) building materials, equipment, and supplies for constructing or replacing real 
129.5 	property exempt under section 297A.71, subdivision 49; and
129.6 	(17) building materials, equipment, and supplies for constructing or replacing real 
129.7 	property exempt under section 297A.71, subdivision 50, paragraph (b).

129.8 	EFFECTIVE DATE. (a) The amendment to clause (13) is effective retroactively for 
129.9 	sales and purchases made after January 1, 2013.
129.10 	(b) The amendment adding clause (16) is effective retroactively for sales and purchases 
129.11 	made after December 31, 2015.
129.12 	(c) The amendment adding clause (17) is effective retroactively for sales and purchases 
129.13 	made after September 30, 2016.

129.14 	Sec. 34. Minnesota Statutes 2016, section 297A.75, subdivision 2, is amended to read:
129.15 		Subd. 2.Refund; eligible persons. Upon application on forms prescribed by the 
129.16 	commissioner, a refund equal to the tax paid on the gross receipts of the exempt items must 
129.17 	be paid to the applicant. Only the following persons may apply for the refund:
129.18 	(1) for subdivision 1, clauses (1), (2), and (14), the applicant must be the purchaser;
129.19 	(2) for subdivision 1, clause (3), the applicant must be the governmental subdivision;
129.20 	(3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits 
129.21 	provided in United States Code, title 38, chapter 21;
129.22 	(4) for subdivision 1, clause (5), the applicant must be the owner of the homestead 
129.23 	property;
129.24 	(5) for subdivision 1, clause (6), the owner of the qualified low-income housing project;
129.25 	(6) for subdivision 1, clause (7), the applicant must be a municipal electric utility or a 
129.26 	joint venture of municipal electric utilities;
129.27 	(7) for subdivision 1, clauses (8), (11), (12), and (15), the owner of the qualifying 
129.28 	business; and
129.29 	(8) for subdivision 1, clauses (9), (10), and (13), the applicant must be the governmental 
129.30 	entity that owns or contracts for the project or facility.;
130.1 	(9) for subdivision 1, clause (16), the applicant must be the owner or developer of the 
130.2 	building or project; and
130.3 	(10) for subdivision 1, clause (17), the applicant must be the owner or developer of the 
130.4 	building or project.

130.5 	EFFECTIVE DATE. (a) The amendment adding clause (9) is effective retroactively 
130.6 	for sales and purchases made after December 31, 2015.
130.7 	(b) The amendment adding clause (10) is effective retroactively for sales and purchases 
130.8 	made after September 30, 2016.

130.9 	Sec. 35. Minnesota Statutes 2016, section 297A.75, subdivision 3, is amended to read:
130.10 		Subd. 3.Application. (a) The application must include sufficient information to permit 
130.11 	the commissioner to verify the tax paid. If the tax was paid by a contractor, subcontractor, 
130.12 	or builder, under subdivision 1, clauses (3) to (13), or (15),to (17), the contractor, 
130.13 	subcontractor, or builder must furnish to the refund applicant a statement including the cost 
130.14 	of the exempt items and the taxes paid on the items unless otherwise specifically provided 
130.15 	by this subdivision. The provisions of sections 289A.40 and 289A.50 apply to refunds under 
130.16 	this section.
130.17 	(b) An applicant may not file more than two applications per calendar year for refunds 
130.18 	for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.

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

130.20 	Sec. 36. Minnesota Statutes 2016, section 297A.75, subdivision 5, is amended to read:
130.21 		Subd. 5.Appropriation. (a) The amount required to make the refunds is annually 
130.22 	appropriated to the commissioner.
130.23 	(b) For fiscal years 2018 and 2019 only, revenues dedicated under the Minnesota 
130.24 	Constitution, article XI, section 15, shall not be reduced for any portion of the refunds paid 
130.25 	for the following exemptions:
130.26 	(1) the exemption under section 297A.71, subdivision 44, paragraph (b);
130.27 	(2) the expansion of the exemption under section 297A.68, subdivision 44, due to sections 
130.28 	2 and 3; and
130.29 	(3) the exemptions in section 297A.71, subdivisions 49 and 50.

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

131.1 	Sec. 37. Minnesota Statutes 2016, section 297A.94, is amended to read:
131.2 	297A.94 DEPOSIT OF REVENUES.
131.3 	(a) Except as provided in this section, the commissioner shall deposit the revenues, 
131.4 	including interest and penalties, derived from the taxes imposed by this chapter in the state 
131.5 	treasury and credit them to the general fund.
131.6 	(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic 
131.7 	account in the special revenue fund if:
131.8 	(1) the taxes are derived from sales and use of property and services purchased for the 
131.9 	construction and operation of an agricultural resource project; and
131.10 	(2) the purchase was made on or after the date on which a conditional commitment was 
131.11 	made for a loan guaranty for the project under section 41A.04, subdivision 3.
131.12 	The commissioner of management and budget shall certify to the commissioner the date on 
131.13 	which the project received the conditional commitment. The amount deposited in the loan 
131.14 	guaranty account must be reduced by any refunds and by the costs incurred by the Department 
131.15 	of Revenue to administer and enforce the assessment and collection of the taxes.
131.16 	(c) The commissioner shall deposit the revenues, including interest and penalties, derived 
131.17 	from the taxes imposed on sales and purchases included in section 297A.61, subdivision 3, 
131.18 	paragraph (g), clauses (1) and (4), in the state treasury, and credit them as follows:
131.19 	(1) first to the general obligation special tax bond debt service account in each fiscal 
131.20 	year the amount required by section 16A.661, subdivision 3, paragraph (b); and
131.21 	(2) after the requirements of clause (1) have been met, the balance to the general fund.
131.22 	(d) The commissioner shall deposit the revenues, including interest and penalties, 
131.23 	collected under section 297A.64, subdivision 5, in the state treasury and credit them to the 
131.24 	general fund. By July 15 of each year the commissioner shall transfer to the highway user 
131.25 	tax distribution fund an amount equal to the excess fees collected under section 297A.64, 
131.26 	subdivision 5, for the previous calendar year.
131.27 	(e) 72.43 percent of the revenues, including interest and penalties, transmitted to the 
131.28 	commissioner under section 297A.65, must be deposited by the commissioner in the state 
131.29 	treasury as follows:
131.30 	(1) 50 percent of the receipts must be deposited in the heritage enhancement account in 
131.31 	the game and fish fund, and may be spent only on activities that improve, enhance, or protect 
132.1 	fish and wildlife resources, including conservation, restoration, and enhancement of land, 
132.2 	water, and other natural resources of the state;
132.3 	(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and may 
132.4 	be spent only for state parks and trails;
132.5 	(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and may 
132.6 	be spent only on metropolitan park and trail grants;
132.7 	(4) three percent of the receipts must be deposited in the natural resources fund, and 
132.8 	may be spent only on local trail grants; and
132.9 	(5) two percent of the receipts must be deposited in the natural resources fund, and may 
132.10 	be spent only for the Minnesota Zoological Garden, the Como Park Zoo and Conservatory, 
132.11 	and the Duluth Zoo.
132.12 	(f) The revenue dedicated under paragraph (e) may not be used as a substitute for 
132.13 	traditional sources of funding for the purposes specified, but the dedicated revenue shall 
132.14 	supplement traditional sources of funding for those purposes. Land acquired with money 
132.15 	deposited in the game and fish fund under paragraph (e) must be open to public hunting 
132.16 	and fishing during the open season, except that in aquatic management areas or on lands 
132.17 	where angling easements have been acquired, fishing may be prohibited during certain times 
132.18 	of the year and hunting may be prohibited. At least 87 percent of the money deposited in 
132.19 	the game and fish fund for improvement, enhancement, or protection of fish and wildlife 
132.20 	resources under paragraph (e) must be allocated for field operations.
132.21 	(g) The commissioner must deposit the revenues, including interest and penalties minus 
132.22 	any refunds, derived from the sale of items regulated under section 624.20, subdivision 1, 
132.23 	that may be sold to persons 18 years old or older and that are not prohibited from use by 
132.24 	the general public under section 624.21, in the state treasury and credit:
132.25 	(1) 25 percent to the volunteer fire assistance grant account established under section 
132.26 	88.068;
132.27 	(2) 25 percent to the fire safety account established under section 297I.06, subdivision 
132.28 	3; and
132.29 	(3) the remainder to the general fund.
132.30 	For purposes of this paragraph, the percentage of total sales and use tax revenue derived 
132.31 	from the sale of items regulated under section 624.20, subdivision 1, that are allowed to be 
132.32 	sold to persons 18 years old or older and are not prohibited from use by the general public 
133.1 	under section 624.21, is a set percentage of the total sales and use tax revenues collected in 
133.2 	the state, with the percentage determined under section 39.
133.3 	(g) (h) The revenues deposited under paragraphs (a) to (f) (g) do not include the revenues, 
133.4 	including interest and penalties, generated by the sales tax imposed under section 297A.62, 
133.5 	subdivision 1a, which must be deposited as provided under the Minnesota Constitution, 
133.6 	article XI, section 15.

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

133.9 	Sec. 38. Minnesota Statutes 2016, section 297A.9905, is amended to read:
133.10 	297A.9905 USE OF LOCAL TAX REVENUES BY CITIES OF THE FIRST CLASS.
133.11 	(a) Notwithstanding section 297A.99, or other general or special law or charter provision, 
133.12 	if the revenues from any local tax imposed on retail sales under special law by a city of the 
133.13 	first class exceeds the amount needed to fund the uses authorized in the special law, the city 
133.14 	may expend the excess revenue from the tax to fund other capital projects of regional 
133.15 	significance.
133.16 	(b) For purposes of this section:
133.17 	(1) "city of the first class" has the meaning given in section 410.01; and
133.18 	(2) "capital project of regional significance" means construction, expansion, or renovation 
133.19 	of a sports facility or convention or civic center, that has a construction cost of at least 
133.20 	$40,000,000 that meets the requirements of section 297A.71, subdivision 44, paragraph (a).

133.21 	EFFECTIVE DATE. This section is effective for sales and purchases made after the 
133.22 	day of final enactment.

133.23 	Sec. 39. CALCULATION OF THE PERCENT OF SALES TAX REVENUE 
133.24 	ATTRIBUTABLE TO THE SALE OF CERTAIN FIREWORKS-RELATED ITEMS.
 133.25 	By December 1, 2017, the commissioner of revenue must estimate the percentage of 
133.26 	total sales tax revenues collected in calendar year 2016 that is attributable to the sales and 
133.27 	purchases of items regulated under Minnesota Statutes, section 624.20, subdivision 1, that 
133.28 	are allowed to be sold to persons 18 years old or older and that are not prohibited from use 
133.29 	by the general public under section 624.21. When making the determination, the 
133.30 	commissioner may consult with representatives from producers and retailers, industry trade 
133.31 	groups, and the most recently available national and state information. The commissioner's 
134.1 	decision is final. The commissioner's determination under this section is not a rule and is 
134.2 	not subject to Minnesota Statutes, chapter 14, including section 14.386.

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

134.4 	Sec. 40. SALES TAX EXEMPTION FOR CONSTRUCTION MATERIALS USED 
134.5 	BY A NONPROFIT ECONOMIC DEVELOPMENT CORPORATION.
 134.6 		Subdivision 1.Exemption; refund. Materials and supplies used or consumed in and 
134.7 	equipment incorporated into the construction of a retail development consisting of retail 
134.8 	space for a grocery store, fueling center, and other retail space by a nonprofit economic 
134.9 	development corporation that is an exempt organization under section 501(c)(3) of the 
134.10 	Internal Revenue Code are exempt from sales and use tax under Minnesota Statutes, chapter 
134.11 	297A, provided that the development is located in a city with no grocery store and the city 
134.12 	is at least 20 miles from another city with a grocery store. The exemption applies to materials, 
134.13 	supplies, and equipment purchased after January 1, 2013, and before January 1, 2017. The 
134.14 	tax must be imposed and collected as if the rate in Minnesota Statutes, section 297A.62, 
134.15 	applied and the nonprofit economic development corporation must apply for the refund of 
134.16 	the tax in the same manner as provided under Minnesota Statutes, section 297A.75, 
134.17 	subdivision 1, clause (11). Notwithstanding Minnesota Statutes, section 289A.40, the 
134.18 	economic development corporation must file for refund by December 31, 2017, for the sales 
134.19 	and use tax paid on all eligible purchases under this section.
134.20 		Subd. 2.Appropriation. The amount required to pay the refunds under subdivision 1, 
134.21 	including refunds that would otherwise reduce the revenues transferred from the general 
134.22 	fund as required under the Minnesota Constitution, article XI, section 15, is appropriated 
134.23 	from the general fund to the commissioner of revenue.

134.24 	EFFECTIVE DATE. This section is effective the day following final enactment and 
134.25 	applies retroactively to sales and purchases made after January 1, 2013, and before January 
134.26 	1, 2017.

134.27 	Sec. 41. CERTAIN REIMBURSEMENT AUTHORIZED; CONSIDERED 
134.28 	OPERATING OR CAPITAL EXPENSES.
 134.29 		Subdivision 1.Reimbursement authorized. (a) An amount equivalent to the taxes paid 
134.30 	under Minnesota Statutes, chapter 297A, and any local taxes administered by the Department 
134.31 	of Revenue, on purchases of tangible personal property, nonresidential parking services, 
134.32 	and lodging, as these terms are defined in Minnesota Statutes, chapter 297A, used and 
134.33 	consumed in connection with Super Bowl LII or related events sponsored by the National 
135.1 	Football League or its affiliates, will be reimbursed by the Minnesota Sports Facilities 
135.2 	Authority up to $1,600,000, if made after June 30, 2016, and before March 1, 2018. Only 
135.3 	purchases made by the Minnesota Super Bowl Host Committee, the National Football 
135.4 	League or its affiliates, or their employees or independent contractors, qualify to be 
135.5 	reimbursed under this section.
135.6 	(b) For purposes of this subdivision:
135.7 	(1) "employee or independent contractor" means only those employees or independent 
135.8 	contractors that make qualifying purchases that are reimbursed by the Minnesota Super 
135.9 	Bowl Host Committee or the National Football League or its affiliates; and
135.10 	(2) "related events sponsored by the National Football League or its affiliates" includes 
135.11 	but is not limited to preparatory advance visits, NFL Experience, NFL Tailgate, NFL Honors, 
135.12 	and NFL House.
135.13 		Subd. 2.Operating reserve and capital reserve fund. Notwithstanding the requirements 
135.14 	of Minnesota Statutes, section 473J.13, subdivisions 2 and 4, up to $1,600,000 of the balance 
135.15 	in the operating reserve or capital reserve fund may be used for the purposes of paying 
135.16 	reimbursements authorized under subdivision 1.

135.17 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
135.18 	30, 2016, and before March 1, 2018.

135.19 	Sec. 42. REIMBURSEMENTS TO CERTAIN CONSTITUTIONALLY DEDICATED 
135.20 	FUNDS FOR EXPANDED SALES TAX EXEMPTIONS.
 135.21 	The commissioner of management and budget, by June 15 in fiscal years 2018 and 2019 
135.22 	only, shall increase the revenues transferred from the general fund as required under the 
135.23 	Minnesota Constitution, article XI, section 15, by an amount equal to the estimated amount 
135.24 	of reduction to these revenues for that fiscal year due to the enactment of new sales tax 
135.25 	exemptions or the expansion of existing sales tax exemptions provided in sections 5 to 8, 
135.26 	13 to 21, 23 to 29, and 33, the amendments to paragraph (a) and adding paragraph (d) to 
135.27 	Minnesota Statutes, section 297A.71, subdivision 44, in section 30, and changes in tobacco 
135.28 	taxes under Minnesota Statutes, chapter 297F, in article 9. The commissioner of revenue 
135.29 	shall make the estimate of this revenue reduction by June 1 of each fiscal year and inform 
135.30 	the commissioner of management and budget. In addition, the commissioner must increase 
135.31 	the revenues transferred from the general fund as required under the Minnesota Constitution, 
135.32 	article XI, section 15, by $30,000 in fiscal year 2017 to reflect the reduction in those funds 
136.1 	in that year due to sections 6 and 8. The appropriations under this section are onetime and 
136.2 	not added to the base budget.

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

136.4 	Sec. 43. SEVERABILITY.
 136.5 	If any provision of sections 9 to 12 or the application thereof is held invalid, such 
136.6 	invalidity shall not affect the provisions or applications of the sections that can be given 
136.7 	effect without the invalid provisions or applications.

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

136.9 	Sec. 44. EFFECTIVE DATE.
 136.10 	(a) The provisions of sections 9 to 12 are effective at the earlier of:
136.11 	(1) a decision by the United States Supreme Court modifying its decision in Quill Corp. 
136.12 	v. North Dakota, 504 U.S. 298 (1992) so that a state may require retailers without a physical 
136.13 	presence in the state to collect and remit sales tax; or
136.14 	(2) July 1, 2019.
136.15 	(b) Notwithstanding paragraph (a) or the provisions of sections 9 to 12, if a federal law 
136.16 	is enacted authorizing a state to impose a requirement to collect and remit sales tax on 
136.17 	retailers without a physical presence in the state, the commissioner must enforce the 
136.18 	provisions of this section and sections 9 to 12 to the extent allowed under federal law.
136.19 	(c) The commissioner of revenue shall notify the revisor of statutes when either of the 
136.20 	provisions in paragraph (a) or (b) apply.

136.21 	ARTICLE 4
136.22 	AIDS AND CREDITS

136.23 	Section 1. Minnesota Statutes 2016, section 273.1384, subdivision 2, is amended to read:
136.24 		Subd. 2.Agricultural homestead market value credit. Property classified as agricultural 
136.25 	homestead under section 273.13, subdivision 23, paragraph (a), is eligible for an agricultural 
136.26 	credit. The credit is computed using the property's agricultural credit market value, defined 
136.27 	for this purpose as the property's market value excluding the market value of the house, 
136.28 	garage, and immediately surrounding one acre of land. The credit is equal to 0.3 percent of 
136.29 	the first $115,000 of the property's agricultural credit market value plus 0.1 percent of the 
136.30 	property's agricultural credit market value in excess of $115,000, subject to a maximum 
137.1 	credit of $490. In the case of property that is classified as part homestead and part 
137.2 	nonhomestead solely because not all the owners occupy or farm the property, not all the 
137.3 	owners have qualifying relatives occupying or farming the property, or solely because not 
137.4 	all the spouses of owners occupy the property, the credit must be initially is computed as 
137.5 	if that nonhomestead agricultural land was also classified as agricultural homestead and 
137.6 	then prorated on the amount of agricultural credit market value corresponding to the 
137.7 	owner-occupant's percentage of ownership homestead. The percentage of homestead is 
137.8 	equal to 100 divided by the number of owners of the property, or, in the case of a trust, the 
137.9 	number of grantors of the trust that owns the property.

137.10 	EFFECTIVE DATE. This section is effective for taxes payable in 2019 and thereafter.

137.11 	Sec. 2. [273.1387] SCHOOL BUILDING BOND AGRICULTURAL CREDIT.
137.12 		Subdivision 1.Eligibility. All class 2a, 2b, and 2c property under section 273.13, 
137.13 	subdivision 23, other than property consisting of the house, garage, and immediately 
137.14 	surrounding one acre of land of an agricultural homestead, is eligible to receive the credit 
137.15 	under this section.
137.16 		Subd. 2.Credit amount. For each qualifying property, the school building bond 
137.17 	agricultural credit is equal to 40 percent of the property's eligible net tax capacity multiplied 
137.18 	by the school debt tax rate determined under section 275.08, subdivision 1b.
137.19 		Subd. 3.Credit reimbursements. The county auditor shall determine the tax reductions 
137.20 	allowed under this section within the county for each taxes payable year and shall certify 
137.21 	that amount to the commissioner of revenue as a part of the abstracts of tax lists submitted 
137.22 	under section 275.29. Any prior year adjustments shall also be certified on the abstracts of 
137.23 	tax lists. The commissioner shall review the certifications for accuracy, and may make such 
137.24 	changes as are deemed necessary, or return the certification to the county auditor for 
137.25 	correction. The credit under this section must be used to reduce the school district net tax 
137.26 	capacity-based property tax as provided in section 273.1393.
137.27 		Subd. 4.Payment. The commissioner of revenue shall certify the total of the tax 
137.28 	reductions granted under this section for each taxes payable year within each school district 
137.29 	to the commissioner of education, who shall pay the reimbursement amounts to each school 
137.30 	district as provided in section 273.1392.
137.31 		Subd. 5.Appropriation. An amount sufficient to make the payments required by this 
137.32 	section is annually appropriated from the general fund to the commissioner of education.

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

138.1 	Sec. 3. Minnesota Statutes 2016, section 273.1392, as amended by Laws 2017, chapter 
138.2 	40, article 1, section 93, is amended to read:
138.3 	273.1392 PAYMENT; SCHOOL DISTRICTS.
138.4 	The amounts of bovine tuberculosis credit reimbursements under section 273.113; 
138.5 	conservation tax credits under section 273.119; disaster or emergency reimbursement under 
138.6 	sections 273.1231 to 273.1235; agricultural credits under section sections273.1384 and 
138.7 	273.1387; aids and credits under section 273.1398; enterprise zone property credit payments 
138.8 	under section 469.171; and metropolitan agricultural preserve reduction under section 
138.9 	473H.10 for school districts, shall be certified to the Department of Education by the 
138.10 	Department of Revenue. The amounts so certified shall be paid according to section 127A.45, 
138.11 	subdivisions 9, 10, and 13.

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

138.13 	Sec. 4. Minnesota Statutes 2016, section 273.1393, is amended to read:
138.14 	273.1393 COMPUTATION OF NET PROPERTY TAXES.
138.15 	Notwithstanding any other provisions to the contrary, "net" property taxes are determined 
138.16 	by subtracting the credits in the order listed from the gross tax:
138.17 	(1) disaster credit as provided in sections 273.1231 to 273.1235;
138.18 	(2) powerline credit as provided in section 273.42;
138.19 	(3) agricultural preserves credit as provided in section 473H.10;
138.20 	(4) enterprise zone credit as provided in section 469.171;
138.21 	(5) disparity reduction credit;
138.22 	(6) conservation tax credit as provided in section 273.119;
138.23 	(7) the school bond credit as provided in section 273.1387;
138.24 	(8) agricultural credit as provided in section 273.1384;
138.25 	(8) (9) taconite homestead credit as provided in section 273.135;
138.26 	(9) (10) supplemental homestead credit as provided in section 273.1391; and
138.27 	(10) (11) the bovine tuberculosis zone credit, as provided in section 273.113.
138.28 	The combination of all property tax credits must not exceed the gross tax amount.

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

139.1 	Sec. 5. Minnesota Statutes 2016, section 275.065, subdivision 3, is amended to read:
139.2 		Subd. 3.Notice of proposed property taxes. (a) The county auditor shall prepare and 
139.3 	the county treasurer shall deliver after November 10 and on or before November 24 each 
139.4 	year, by first class mail to each taxpayer at the address listed on the county's current year's 
139.5 	assessment roll, a notice of proposed property taxes. Upon written request by the taxpayer, 
139.6 	the treasurer may send the notice in electronic form or by electronic mail instead of on paper 
139.7 	or by ordinary mail.
139.8 	(b) The commissioner of revenue shall prescribe the form of the notice.
139.9 	(c) The notice must inform taxpayers that it contains the amount of property taxes each 
139.10 	taxing authority proposes to collect for taxes payable the following year. In the case of a 
139.11 	town, or in the case of the state general tax, the final tax amount will be its proposed tax. 
139.12 	The notice must clearly state for each city that has a population over 500, county, school 
139.13 	district, regional library authority established under section 134.201, and metropolitan taxing 
139.14 	districts as defined in paragraph (i), the time and place of a meeting for each taxing authority 
139.15 	in which the budget and levy will be discussed and public input allowed, prior to the final 
139.16 	budget and levy determination. The taxing authorities must provide the county auditor with 
139.17 	the information to be included in the notice on or before the time it certifies its proposed 
139.18 	levy under subdivision 1. The public must be allowed to speak at that meeting, which must 
139.19 	occur after November 24 and must not be held before 6:00 p.m. It must provide a telephone 
139.20 	number for the taxing authority that taxpayers may call if they have questions related to the 
139.21 	notice and an address where comments will be received by mail, except that no notice 
139.22 	required under this section shall be interpreted as requiring the printing of a personal 
139.23 	telephone number or address as the contact information for a taxing authority. If a taxing 
139.24 	authority does not maintain public offices where telephone calls can be received by the 
139.25 	authority, the authority may inform the county of the lack of a public telephone number and 
139.26 	the county shall not list a telephone number for that taxing authority.
139.27 	(d) The notice must state for each parcel:
139.28 	(1) the market value of the property as determined under section 273.11, and used for 
139.29 	computing property taxes payable in the following year and for taxes payable in the current 
139.30 	year as each appears in the records of the county assessor on November 1 of the current 
139.31 	year; and, in the case of residential property, whether the property is classified as homestead 
139.32 	or nonhomestead. The notice must clearly inform taxpayers of the years to which the market 
139.33 	values apply and that the values are final values;
140.1 	(2) the items listed below, shown separately by county, city or town, and state general 
140.2 	tax, agricultural homestead credit under section 273.1384, school building bond agricultural 
140.3 	credit under section 273.1387, voter approved school levy, other local school levy, and the 
140.4 	sum of the special taxing districts, and as a total of all taxing authorities:
140.5 	(i) the actual tax for taxes payable in the current year; and
140.6 	(ii) the proposed tax amount.
140.7 	If the county levy under clause (2) includes an amount for a lake improvement district 
140.8 	as defined under sections 103B.501 to 103B.581, the amount attributable for that purpose 
140.9 	must be separately stated from the remaining county levy amount.
140.10 	In the case of a town or the state general tax, the final tax shall also be its proposed tax 
140.11 	unless the town changes its levy at a special town meeting under section 365.52. If a school 
140.12 	district has certified under section 126C.17, subdivision 9, that a referendum will be held 
140.13 	in the school district at the November general election, the county auditor must note next 
140.14 	to the school district's proposed amount that a referendum is pending and that, if approved 
140.15 	by the voters, the tax amount may be higher than shown on the notice. In the case of the 
140.16 	city of Minneapolis, the levy for Minneapolis Park and Recreation shall be listed separately 
140.17 	from the remaining amount of the city's levy. In the case of the city of St. Paul, the levy for 
140.18 	the St. Paul Library Agency must be listed separately from the remaining amount of the 
140.19 	city's levy. In the case of Ramsey County, any amount levied under section 134.07 may be 
140.20 	listed separately from the remaining amount of the county's levy. In the case of a parcel 
140.21 	where tax increment or the fiscal disparities areawide tax under chapter 276A or 473F 
140.22 	applies, the proposed tax levy on the captured value or the proposed tax levy on the tax 
140.23 	capacity subject to the areawide tax must each be stated separately and not included in the 
140.24 	sum of the special taxing districts; and
140.25 	(3) the increase or decrease between the total taxes payable in the current year and the 
140.26 	total proposed taxes, expressed as a percentage.
140.27 	For purposes of this section, the amount of the tax on homesteads qualifying under the 
140.28 	senior citizens' property tax deferral program under chapter 290B is the total amount of 
140.29 	property tax before subtraction of the deferred property tax amount.
140.30 	(e) The notice must clearly state that the proposed or final taxes do not include the 
140.31 	following:
140.32 	(1) special assessments;
141.1 	(2) levies approved by the voters after the date the proposed taxes are certified, including 
141.2 	bond referenda and school district levy referenda;
141.3 	(3) a levy limit increase approved by the voters by the first Tuesday after the first Monday 
141.4 	in November of the levy year as provided under section 275.73;
141.5 	(4) amounts necessary to pay cleanup or other costs due to a natural disaster occurring 
141.6 	after the date the proposed taxes are certified;
141.7 	(5) amounts necessary to pay tort judgments against the taxing authority that become 
141.8 	final after the date the proposed taxes are certified; and
141.9 	(6) the contamination tax imposed on properties which received market value reductions 
141.10 	for contamination.
141.11 	(f) Except as provided in subdivision 7, failure of the county auditor to prepare or the 
141.12 	county treasurer to deliver the notice as required in this section does not invalidate the 
141.13 	proposed or final tax levy or the taxes payable pursuant to the tax levy.
141.14 	(g) If the notice the taxpayer receives under this section lists the property as 
141.15 	nonhomestead, and satisfactory documentation is provided to the county assessor by the 
141.16 	applicable deadline, and the property qualifies for the homestead classification in that 
141.17 	assessment year, the assessor shall reclassify the property to homestead for taxes payable 
141.18 	in the following year.
141.19 	(h) In the case of class 4 residential property used as a residence for lease or rental 
141.20 	periods of 30 days or more, the taxpayer must either:
141.21 	(1) mail or deliver a copy of the notice of proposed property taxes to each tenant, renter, 
141.22 	or lessee; or
141.23 	(2) post a copy of the notice in a conspicuous place on the premises of the property.
141.24 	The notice must be mailed or posted by the taxpayer by November 27 or within three 
141.25 	days of receipt of the notice, whichever is later. A taxpayer may notify the county treasurer 
141.26 	of the address of the taxpayer, agent, caretaker, or manager of the premises to which the 
141.27 	notice must be mailed in order to fulfill the requirements of this paragraph.
141.28 	(i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing 
141.29 	districts" means the following taxing districts in the seven-county metropolitan area that 
141.30 	levy a property tax for any of the specified purposes listed below:
141.31 	(1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 473.446, 
141.32 	473.521, 473.547, or 473.834;
142.1 	(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; and
142.2 	(3) Metropolitan Mosquito Control Commission under section 473.711.
142.3 	For purposes of this section, any levies made by the regional rail authorities in the county 
142.4 	of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 398A 
142.5 	shall be included with the appropriate county's levy.
142.6 	(j) The governing body of a county, city, or school district may, with the consent of the 
142.7 	county board, include supplemental information with the statement of proposed property 
142.8 	taxes about the impact of state aid increases or decreases on property tax increases or 
142.9 	decreases and on the level of services provided in the affected jurisdiction. This supplemental 
142.10 	information may include information for the following year, the current year, and for as 
142.11 	many consecutive preceding years as deemed appropriate by the governing body of the 
142.12 	county, city, or school district. It may include only information regarding:
142.13 	(1) the impact of inflation as measured by the implicit price deflator for state and local 
142.14 	government purchases;
142.15 	(2) population growth and decline;
142.16 	(3) state or federal government action; and
142.17 	(4) other financial factors that affect the level of property taxation and local services 
142.18 	that the governing body of the county, city, or school district may deem appropriate to 
142.19 	include.
142.20 	The information may be presented using tables, written narrative, and graphic 
142.21 	representations and may contain instruction toward further sources of information or 
142.22 	opportunity for comment.

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

142.24 	Sec. 6. Minnesota Statutes 2016, section 275.07, subdivision 2, is amended to read:
142.25 		Subd. 2.School district in more than one county levies; special requirements. (a) In 
142.26 	school districts lying in more than one county, the clerk shall certify the tax levied to the 
142.27 	auditor of the county in which the administrative offices of the school district are located.
142.28 	(b) The district must identify the portion of the school district levy that is levied for debt 
142.29 	service at the time the levy is certified under this section. For the purposes of this paragraph, 
142.30 	"levied for debt service" means levies authorized under sections 123B.53, 123B.535, and 
142.31 	123B.55, as adjusted by sections 126C.46 and 126C.48, net of any debt excess levy reductions 
143.1 	under section 475.61, subdivision 4, excluding debt service amounts necessary for repayment 
143.2 	of other postemployment benefits under section 475.52, subdivision 6.

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

143.4 	Sec. 7. Minnesota Statutes 2016, section 275.08, subdivision 1b, is amended to read:
143.5 		Subd. 1b.Computation of tax rates. (a) The amounts certified to be levied against net 
143.6 	tax capacity under section 275.07 by an individual local government unit shall be divided 
143.7 	by the total net tax capacity of all taxable properties within the local government unit's 
143.8 	taxing jurisdiction. The resulting ratio, the local government's local tax rate, multiplied by 
143.9 	each property's net tax capacity shall be each property's net tax capacity tax for that local 
143.10 	government unit before reduction by any credits.
143.11 	(b) The auditor must also determine the school debt tax rate for each school district equal 
143.12 	to (1) the school debt service levy certified under section 275.07, subdivision 2, divided by 
143.13 	(2) the total net tax capacity of all taxable property within the district.
143.14 	(c) Any amount certified to the county auditor to be levied against market value shall 
143.15 	be divided by the total referendum market value of all taxable properties within the taxing 
143.16 	district. The resulting ratio, the taxing district's new referendum tax rate, multiplied by each 
143.17 	property's referendum market value shall be each property's new referendum tax before 
143.18 	reduction by any credits. For the purposes of this subdivision, "referendum market value" 
143.19 	means the market value as defined in section 126C.01, subdivision 3.

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

143.21 	Sec. 8. Minnesota Statutes 2016, section 276.04, subdivision 2, is amended to read:
143.22 		Subd. 2.Contents of tax statements. (a) The treasurer shall provide for the printing of 
143.23 	the tax statements. The commissioner of revenue shall prescribe the form of the property 
143.24 	tax statement and its contents. The tax statement must not state or imply that property tax 
143.25 	credits are paid by the state of Minnesota. The statement must contain a tabulated statement 
143.26 	of the dollar amount due to each taxing authority and the amount of the state tax from the 
143.27 	parcel of real property for which a particular tax statement is prepared. The dollar amounts 
143.28 	attributable to the county, the state tax, the voter approved school tax, the other local school 
143.29 	tax, the township or municipality, and the total of the metropolitan special taxing districts 
143.30 	as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. The 
143.31 	amounts due all other special taxing districts, if any, may be aggregated except that any 
143.32 	levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, Hennepin, 
144.1 	Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate line directly 
144.2 	under the appropriate county's levy. If the county levy under this paragraph includes an 
144.3 	amount for a lake improvement district as defined under sections 103B.501 to 103B.581, 
144.4 	the amount attributable for that purpose must be separately stated from the remaining county 
144.5 	levy amount. In the case of Ramsey County, if the county levy under this paragraph includes 
144.6 	an amount for public library service under section 134.07, the amount attributable for that 
144.7 	purpose may be separated from the remaining county levy amount. The amount of the tax 
144.8 	on homesteads qualifying under the senior citizens' property tax deferral program under 
144.9 	chapter 290B is the total amount of property tax before subtraction of the deferred property 
144.10 	tax amount. The amount of the tax on contamination value imposed under sections 270.91
144.11 	to 270.98, if any, must also be separately stated. The dollar amounts, including the dollar 
144.12 	amount of any special assessments, may be rounded to the nearest even whole dollar. For 
144.13 	purposes of this section whole odd-numbered dollars may be adjusted to the next higher 
144.14 	even-numbered dollar. The amount of market value excluded under section 273.11, 
144.15 	subdivision 16, if any, must also be listed on the tax statement.
144.16 	(b) The property tax statements for manufactured homes and sectional structures taxed 
144.17 	as personal property shall contain the same information that is required on the tax statements 
144.18 	for real property.
144.19 	(c) Real and personal property tax statements must contain the following information 
144.20 	in the order given in this paragraph. The information must contain the current year tax 
144.21 	information in the right column with the corresponding information for the previous year 
144.22 	in a column on the left:
144.23 	(1) the property's estimated market value under section 273.11, subdivision 1;
144.24 	(2) the property's homestead market value exclusion under section 273.13, subdivision 
144.25 	35;
144.26 	(3) the property's taxable market value under section 272.03, subdivision 15;
144.27 	(4) the property's gross tax, before credits;
144.28 	(5) for homestead agricultural properties, the credit credits under section sections
144.29 	273.1384 and 273.1387;
144.30 	(6) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135; 
144.31 	273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of credit 
144.32 	received under section 273.135 must be separately stated and identified as "taconite tax 
144.33 	relief"; and
145.1 	(7) the net tax payable in the manner required in paragraph (a).
145.2 	(d) If the county uses envelopes for mailing property tax statements and if the county 
145.3 	agrees, a taxing district may include a notice with the property tax statement notifying 
145.4 	taxpayers when the taxing district will begin its budget deliberations for the current year, 
145.5 	and encouraging taxpayers to attend the hearings. If the county allows notices to be included 
145.6 	in the envelope containing the property tax statement, and if more than one taxing district 
145.7 	relative to a given property decides to include a notice with the tax statement, the county 
145.8 	treasurer or auditor must coordinate the process and may combine the information on a 
145.9 	single announcement.

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

145.11 	Sec. 9. Minnesota Statutes 2016, section 469.169, is amended by adding a subdivision to 
145.12 	read:
145.13 		Subd. 20.Additional border city allocations. (a) In addition to the tax reductions 
145.14 	authorized in subdivisions 12 to 19, the commissioner shall allocate $3,000,000 for tax 
145.15 	reductions to border city enterprise zones in cities located on the western border of  the state. 
145.16 	The commissioner shall allocate this amount among cities on a per capita basis. Allocations 
145.17 	under this subdivision may be used for tax reductions under sections 469.171, 469.1732, 
145.18 	and 469.1734, or for other offsets of taxes imposed on or remitted by businesses located in 
145.19 	the enterprise zone, but only if the municipality determines that the granting of the tax 
145.20 	reduction or offset is necessary to retain a business within or attract a business to the zone.
145.21 	(b) The allocations under this subdivision do not cancel or expire, but remain available  
145.22 	until used by the city.

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

145.24 	Sec. 10. Minnesota Statutes 2016, section 477A.011, subdivision 34, is amended to read:
145.25 		Subd. 34.City revenue need. (a) For a city with a population equal to or greater than 
145.26 	10,000, "city revenue need" is 1.15 times the sum of (1) 4.59 times the pre-1940 housing 
145.27 	percentage; plus (2) 0.622 times the percent of housing built between 1940 and 1970; plus 
145.28 	(3) 169.415 times the jobs per capita; plus (4) the sparsity adjustment; plus (5) 307.664.
145.29 	(b) For a city with a population equal to or greater than 2,500 and less than 10,000, "city 
145.30 	revenue need" is 1.15 times the sum of (1) 572.62; plus (2) 5.026 times the pre-1940 housing 
145.31 	percentage; minus (3) 53.768 times household size; plus (4) 14.022 times peak population 
145.32 	decline; plus (5) the sparsity adjustment.
146.1 	(c) For a city with a population less than 2,500, "city revenue need" is the sum of (1) 
146.2 	410 plus; (2) 0.367 times the city's population over 100; plus (3) the sparsity adjustment. 
146.3 	The city revenue need for a city under this paragraph shall not exceed 630 plus the city's 
146.4 	sparsity adjustment.
146.5 	(d) For a city with a population of at least 2,500 but less than 3,000, the "city revenue 
146.6 	need" equals (1) the transition factor times the city's revenue need calculated in paragraph 
146.7 	(b); plus (2) 630 times the difference between one and the transition factor. For a city with 
146.8 	a population of at least 10,000 but less than 10,50011,000, the "city revenue need" equals 
146.9 	(1) the transition factor times the city's revenue need calculated in paragraph (a); plus (2) 
146.10 	the city's revenue need calculated under the formula in paragraph (b) times the difference 
146.11 	between one and the transition factor. For purposes of the first sentence of this paragraph 
146.12 	"transition factor" is 0.2 percent times the amount that the city's population exceeds the 
146.13 	minimum threshold in either of the first two sentences. For purposes of the second sentence 
146.14 	of this paragraph, "transition factor" is 0.1 percent times the amount that the city's population 
146.15 	exceeds the minimum threshold.
146.16 	(e) The city revenue need cannot be less than zero.
146.17 	(f) For calendar year 2015 and subsequent years, the city revenue need for a city, as 
146.18 	determined in paragraphs (a) to (e), is multiplied by the ratio of the annual implicit price 
146.19 	deflator for government consumption expenditures and gross investment for state and local 
146.20 	governments as prepared by the United States Department of Commerce, for the most 
146.21 	recently available year to the 2013 implicit price deflator for state and local government 
146.22 	purchases.

146.23 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2018 
146.24 	and thereafter.

146.25 	Sec. 11. Minnesota Statutes 2016, section 477A.011, subdivision 45, is amended to read:
146.26 		Subd. 45.Sparsity adjustment. For a city with a population of 10,000 or more, the 
146.27 	sparsity adjustment is 100 for any city with an average population density less than 150 per 
146.28 	square mile, according to the most recent federal census, and. For a city with a population 
146.29 	less than 10,000, the sparsity adjustment is 200 for any city with an average population 
146.30 	density less than 30 per square mile, according to the most recent federal census. The sparsity 
146.31 	adjustment is zero for all other cities.

146.32 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2018 
146.33 	and thereafter.

147.1 	Sec. 12. Minnesota Statutes 2016, section 477A.0124, subdivision 4, is amended to read:
147.2 		Subd. 4.County tax-base equalization aid. (a) For 2006 and subsequent years, the 
147.3 	money appropriated to county tax-base equalization aid each calendar year, after the payment 
147.4 	under paragraph (f), shall be apportioned among the counties according to each county's 
147.5 	tax-base equalization aid factor.
147.6 	(b) A county's tax-base equalization aid factor is equal to the amount by which (i) $185
147.7 	$190 times the county's population, exceeds (ii) 9.45 nine percent of the county's net tax 
147.8 	capacity.
147.9 	(c) In the case of a county with a population less than 10,000, the factor determined in 
147.10 	paragraph (b) shall be multiplied by a factor of three.
147.11 	(d) In the case of a county with a population greater than or equal to 10,000, but less 
147.12 	than 12,500, the factor determined in paragraph (b) shall be multiplied by a factor of two.
147.13 	(e) In the case of a county with a population greater than 500,000, the factor determined 
147.14 	in paragraph (b) shall be multiplied by a factor of 0.25.
147.15 	(f) Before the money appropriated to county base equalization aid is apportioned among 
147.16 	the counties as provided in paragraph (a), an amount up to $73,259 is allocated annually to 
147.17 	Anoka County and up to $59,664 is annually allocated to Washington County for the county 
147.18 	to pay postretirement costs of health insurance premiums for court employees. The allocation 
147.19 	under this paragraph is in addition to the allocations under paragraphs (a) to (e). Beginning 
147.20 	with aid payable in 2019, the amount under paragraph (b), item (i), shall be increased by 
147.21 	the ratio of the statewide net tax capacity per capita to the statewide net tax capacity per 
147.22 	capita in the 2016 assessment year, provided that in no case shall the ratio be less than one 
147.23 	or the ratio in the prior year, whichever is greater. The amount shall be rounded to the nearest 
147.24 	$10. The statewide net tax capacity per capita shall be calculated using the most recent 
147.25 	population available for the relevant assessment year at the time of the calculation of the 
147.26 	aid by the commissioner under section 477A.014.
147.27 	(g) For distributions in 2018 and subsequent years, the allocation to a county under 
147.28 	paragraphs (a) to (e) shall not be less than:
147.29 	(1) an amount equal to 0.27 percent of the total appropriation available for that year 
147.30 	under section 477A.03, subdivision 2b, paragraph (b); or
147.31 	(2) 95 percent of the tax base equalization aid for the county in the prior year, whichever 
147.32 	is greater.
148.1 	If the sum of aids payable to counties under this subdivision exceeds the limit under section 
148.2 	477A.03, subdivision 2b, paragraph (b), the distribution for those counties whose aid amounts 
148.3 	exceed their minimum aid must be proportionately reduced so that the amount of aid 
148.4 	distributed under this subdivision does not exceed the limit in section 477A.03, subdivision 
148.5 	2b, paragraph (b).

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

148.7 	Sec. 13. Minnesota Statutes 2016, section 477A.0124, is amended by adding a subdivision 
148.8 	to read:
148.9 		Subd. 7.County aid calculations. Data used in calculating aids to counties under this 
148.10 	section shall be the most recently available data as of January 1 in the year in which the aid 
148.11 	is calculated.

148.12 	EFFECTIVE DATE. This section is effective beginning with aid payable in 2018.

148.13 	Sec. 14. [477A.0126] REIMBURSEMENT TO COUNTIES AND TRIBES FOR 
148.14 	CERTAIN OUT-OF-HOME PLACEMENTS.
148.15 		Subdivision 1.Definition. For purposes of this section, "out-of-home placement" means 
148.16 	24-hour substitute care for an Indian child as defined by section 260C.007, subdivision 21, 
148.17 	away from the child's parent or guardian and for whom the county or tribal social services 
148.18 	agency has been assigned responsibility for the child's placement and care, which includes 
148.19 	placement in foster care under section 260C.007, subdivision 18.
148.20 		Subd. 2.Determination of nonfederal share of costs. (a) By July 1, 2017, and each 
148.21 	June 1 thereafter, each county shall report the following information to the commissioner 
148.22 	of human services:
148.23 	(1) the amount paid out of the county's social service agency budget for out-of-home 
148.24 	placement of Indian children in the calendar year immediately preceding the year in which 
148.25 	the report was made; and
148.26 	(2) the number of days foster care maintenance payments were made for each Indian 
148.27 	child the calendar year immediately preceding the year in which the report was made.
148.28 	(b) The commissioner of human services shall prescribe the format of the report. By 
148.29 	July 15, 2017, and each July 1 thereafter, the commissioner of human services shall certify 
148.30 	to the commissioner of revenue and to the legislative committees with jurisdiction over 
148.31 	local government aids and out-of-home placement funding the data reported under this 
148.32 	subdivision and whether it accurately reflects total expenditures by counties for out-of-home 
149.1 	placement costs of Indian children. The commissioner of human services shall also certify 
149.2 	to the commissioner of revenue the reimbursement amounts received from the federal 
149.3 	government for out-of-home placement costs for the previous calendar year received by 
149.4 	each initiative tribe under section 256.01, subdivision 14b.
149.5 	(c) Until the commissioner of human services develops another mechanism for collecting  
149.6 	and verifying data on out-of-home placements of Indian children, the data collected under 
149.7 	this subdivision must be used to calculate payments under subdivision 3.
149.8 		Subd. 3.Aid for counties. (a) For aids payable in calendar year 2018 and thereafter, the 
149.9 	Department of Revenue shall reimburse each county the  county's proportionate share of the 
149.10 	appropriation in subdivision 7 that remains after the aid for tribes in subdivision 4 has been 
149.11 	paid.
149.12 	(b) Each county's proportionate share is based on the county's nonfederal share of the 
149.13 	cost for out-of-home placement of Indian children for the calendar year that was certified 
149.14 	by the commissioner of human services under subdivision 2, paragraph (b), provided that:
149.15 	(1)	 the commissioner of human services certifies to the commissioner of revenue that 
149.16 	accurate data are available to make the aid determination under this section; and
149.17 	(2) 	the commissioner of human services certifies to the commissioner of revenue that 
149.18 	the county is in substantial compliance with the compliance review system developed in 
149.19 	accordance with subdivision 6.
149.20 	(c) If the commissioner of human services determines that a county is substantially out 
149.21 	of compliance with the Indian Child Welfare Act or the Minnesota Indian Family Preservation 
149.22 	Act, as determined under subdivision 6, the commissioner of human services shall provide 
149.23 	written notice to the county of its noncompliance, and what actions are necessary by the 
149.24 	county to improve and maintain compliance.
149.25 	(d) If the county remains substantially out of compliance with the Indian Child Welfare 
149.26 	Act or the Minnesota Indian Family Preservation Act as determined by the commissioner 
149.27 	of human services under subdivision 6 for a second consecutive year, the county shall be 
149.28 	eligible for 50 percent of the aid under this section beginning with the next certification and 
149.29 	until the commissioner of human services certifies to the commissioner of revenue that the 
149.30 	county is in substantial compliance and is eligible for the aid payment. The commissioner 
149.31 	of human services shall certify to the commissioner of revenue by July 1 of each year which 
149.32 	counties are eligible for an aid reduction in the following year.
150.1 		Subd. 4.Aid for tribes. For aids payable in 2018 and thereafter, the amount of 
150.2 	reimbursement to each initiative tribe under section 256.01, subdivision 14b, shall be the 
150.3 	greater of:
150.4 	(1) five percent of the reimbursement amount received from the federal  government for 
150.5 	out-of-home placement costs for the  previous calendar year that was certified under 
150.6 	subdivision 2, paragraph (b); or
150.7 	(2) $200,000.
150.8 		Subd. 5.Payments. The commissioner of revenue must compute the amount of the 
150.9 	reimbursement aid payable to each county and tribe under this section. On or before August 
150.10 	1 of each year, the commissioner shall certify the amount to be paid to each county and 
150.11 	tribe in the following year. The commissioner shall pay reimbursement aid annually at the 
150.12 	times provided in section 477A.015.
150.13 		Subd. 6.Indian Child Welfare Act compliance system review. (a) By January 1, 2018, 
150.14 	the commissioner of human services, in consultation with counties and tribes, shall develop 
150.15 	a system to review county compliance with the Indian Child Welfare Act and the Minnesota 
150.16 	Indian Family Preservation Act. The system may include, but is not limited to, the cases to 
150.17 	be reviewed, the criteria to be reviewed to demonstrate compliance, the rate of noncompliance 
150.18 	and the coordinating penalty, the program improvement plan, and training.
150.19 	(b) The commissioner of human services shall provide continuous review of cases 
150.20 	reported by counties for aid payments under this section for compliance with the Indian 
150.21 	Child Welfare Act and the Minnesota Indian Family Preservation Act.
150.22 	(c) The determination made by the commissioner of human services regarding a county's 
150.23 	compliance or noncompliance with the Indian Child Welfare Act and the Minnesota Indian 
150.24 	Family Preservation Act shall be final.
150.25 		Subd. 7.Appropriation. (a) $5,000,000 is annually appropriated to the commissioner 
150.26 	of revenue from the general fund to pay aid under this section.
150.27 	(b) $390,000 is appropriated annually from the general fund to the commissioner of 
150.28 	human services to implement subdivision 6.

150.29 	EFFECTIVE DATE. This section is effective beginning with aids payable in 2018, 
150.30 	except the appropriation in subdivision 7, paragraph (b), is effective beginning with fiscal 
150.31 	year 2019.

151.1 	Sec. 15. Minnesota Statutes 2016, section 477A.013, subdivision 8, is amended to read:
151.2 		Subd. 8.City formula aid. (a) For aids payable in 2015 2018 and thereafter, the formula 
151.3 	aid for a city is equal to the sum of (1) its formula aid in the previous year and (2) the product 
151.4 	of (i) (1) the difference between its unmet need and its formula certified aid in the previous 
151.5 	year and before any aid adjustment under subdivision 13, and (ii) (2) the aid gap percentage.
151.6 	(b) For aids payable in 2015 and thereafter, if a city's certified aid from the previous 
151.7 	year is greater than the sum of its unmet need plus its aid adjustment under subdivision 13, 
151.8 	its formula aid is adjusted to equal its unmet need.
151.9 	(c) No city may have a formula aid amount less than zero. The aid gap percentage must 
151.10 	be the same for all cities subject to paragraph (a).
151.11 	(d) (b) The applicable aid gap percentage must be calculated by the Department of 
151.12 	Revenue so that the total of the aid under subdivision 9 equals the total amount available 
151.13 	for aid under section 477A.03. The aid gap percentage must be the same for all cities subject 
151.14 	to paragraph (a). Data used in calculating aids to cities under sections 477A.011 to 477A.013
151.15 	shall be the most recently available data as of January 1 in the year in which the aid is 
151.16 	calculated.

151.17 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2018 
151.18 	and thereafter.

151.19 	Sec. 16. Minnesota Statutes 2016, section 477A.013, subdivision 9, is amended to read:
151.20 		Subd. 9.City aid distribution. (a) In calendar year 2014 2018 and thereafter, each city
151.21 	if a city's certified aid before any aid adjustment under subdivision 13 for the previous year 
151.22 	is less than its current unmet need, the city shall receive an aid distribution equal to the sum 
151.23 	of (1) its certified aid in the previous year before any aid adjustment under subdivision 13, 
151.24 	(2) the city formula aid under subdivision 8, and (2) (3) its aid adjustment under subdivision 
151.25 	13.
151.26 	(b) For aids payable in 2015 2018 and thereafter, if a city's certified aid before any aid 
151.27 	adjustment under subdivision 13 for the previous year is equal to or greater than its current 
151.28 	unmet need, the total aid for a city must not be less than is equal to the greater of (1) its 
151.29 	unmet need plus any aid adjustment under subdivision 13, or (2) the amount it was certified 
151.30 	to receive in the previous year minus the lesser of $10 multiplied by its population, or five 
151.31 	percent of its net levy in the year prior to the aid distribution. No city may have a total aid 
151.32 	amount less than $0.

152.1 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2018 
152.2 	and thereafter.

152.3 	Sec. 17. Minnesota Statutes 2016, section 477A.015, is amended to read:
152.4 	477A.015 PAYMENT DATES.
152.5 	(a) The commissioner of revenue shall make the payments of local government aid to 
152.6 	affected taxing authorities in two installments on July 20 and December 26 annually.
152.7 	(b) Notwithstanding paragraph (a), for aids payable in 2019 only, the commissioner of 
152.8 	revenue shall make payments of the aid payable under section 477A.013, subdivision 9, in 
152.9 	three installments as follows: (1) 14.6 percent of the aid shall be paid on June 15, 2019; (2) 
152.10 	35.4 percent of the aid shall be paid on July 20, 2019; and (3) 50 percent of the aid shall be 
152.11 	paid on December 26, 2019.
152.12 	(c) When the commissioner of public safety determines that a local government has 
152.13 	suffered financial hardship due to a natural disaster, the commissioner of public safety shall 
152.14 	notify the commissioner of revenue, who shall make payments of aids under sections 
152.15 	477A.011 to 477A.014, which are otherwise due on December 26, as soon as is practical 
152.16 	after the determination is made but not before July 20.
152.17 	(d) The commissioner may pay all or part of the payments of aids under sections 
152.18 	477A.011 to 477A.014, which are due on December 26 at any time after August 15 if a 
152.19 	local government requests such payment as being necessary for meeting its cash flow needs.

152.20 	EFFECTIVE DATE. This section is effective beginning with aids payable in 2019.

152.21 	Sec. 18. [477A.0175] AID REDUCTIONS FOR OPERATING AN UNAUTHORIZED 
152.22 	DIVERSION PROGRAM.
152.23 		Subdivision 1.Penalty for operating an unauthorized diversion program.
 152.24 	Notwithstanding any other law to the contrary, a county or city that operated a pretrial 
152.25 	diversion program that a court determines was not authorized under section 169.999 or 
152.26 	another statute or law must have its aid under sections 477A.011 to 477A.03 reduced by 
152.27 	the amount of fees paid by participants into the program for the years in which the program 
152.28 	operated. A court shall report any order that enjoins a county or city from operating a pretrial 
152.29 	diversion program to the state auditor as required under subdivision 2. The state auditor 
152.30 	shall determine the amount of fees collected under the diversion program and notify the 
152.31 	commissioner of the amount. The commissioner shall reduce the county program aid paid 
152.32 	to a county or the local government aid paid to a city by this amount beginning with the 
153.1 	first aid payment made after receiving notice of the reduction amount. No aid payment may 
153.2 	be less than zero but the amount of the reduction that cannot be made out of that payment 
153.3 	shall be applied to future payments until the total amount has been deducted.
153.4 		Subd. 2.Court challenge to authority to operate a pretrial diversion program. Any 
153.5 	taxpayer may challenge a city or county operation of a pretrial diversion program by filing 
153.6 	a declaratory judgment action or seeking other appropriate relief in the district court for the 
153.7 	county where the city is located or in any other court of competent jurisdiction. If the court 
153.8 	finds that the county or city has exceeded its authority under law in operating the pretrial 
153.9 	diversion program, the court must transmit a copy of the court order to the state auditor.

153.10 	EFFECTIVE DATE. This section is effective the day following final enactment and 
153.11 	applies beginning with aid payments under Minnesota Statutes, section 477A.015 in calendar 
153.12 	year 2018.

153.13 	Sec. 19. Minnesota Statutes 2016, section 477A.03, subdivision 2a, is amended to read:
153.14 		Subd. 2a.Cities. The total aid paid under section 477A.013, subdivision 9, is 
153.15 	$516,898,012 for aids payable in 2015. For aids payable in 2016 and thereafter 2017, the 
153.16 	total aid paid under section 477A.013, subdivision 9, is $519,398,012. For aids payable in 
153.17 	2018 and thereafter, the total aid paid under section 477A.013, subdivision 9, is 
153.18 	$534,398,012.

153.19 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 2018 
153.20 	and thereafter.

153.21 	Sec. 20. Minnesota Statutes 2016, section 477A.03, subdivision 2b, is amended to read:
153.22 		Subd. 2b.Counties. (a) For aids payable in 2014 and thereafter 2018 through 2024, the 
153.23 	total aid payable under section 477A.0124, subdivision 3, is $103,795,000, of which 
153.24 	$3,000,000 shall be allocated as required under Laws 2014, chapter 150, article 4, section 
153.25 	6. For aids payable in 2025 and thereafter, the total aid payable under section 477A.0124, 
153.26 	subdivision 3, is $100,795,000. Each calendar year, $500,000 of this appropriation shall be 
153.27 	retained by the commissioner of revenue to make reimbursements to the commissioner of 
153.28 	management and budget for payments made under section 611.27. The reimbursements 
153.29 	shall be to defray the additional costs associated with court-ordered counsel under section 
153.30 	611.27. Any retained amounts not used for reimbursement in a year shall be included in the 
153.31 	next distribution of county need aid that is certified to the county auditors for the purpose 
153.32 	of property tax reduction for the next taxes payable year.
154.1 	(b) For aids payable in 2014 2018 and thereafter, the total aid under section 477A.0124, 
154.2 	subdivision 4, is $104,909,575 $130,873,444. The commissioner of revenue shall transfer 
154.3 	to the commissioner of management and budget $207,000 annually for the cost of preparation 
154.4 	of local impact notes as required by section 3.987, and other local government activities. 
154.5 	The commissioner of revenue shall transfer to the commissioner of education $7,000 annually 
154.6 	for the cost of preparation of local impact notes for school districts as required by section 
154.7 	3.987. The commissioner of revenue shall deduct the amounts transferred under this 
154.8 	paragraph from the appropriation under this paragraph. The amounts transferred are 
154.9 	appropriated to the commissioner of management and budget and the commissioner of 
154.10 	education respectively.

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

154.12 	Sec. 21. [477A.09] MAXIMUM EFFORT LOAN AID.
154.13 	(a) For fiscal years 2018 to 2022, each school district with a maximum effort loan under 
154.14 	sections 126C.61 to 126C.72, outstanding as of June 30, 2016, is eligible for an aid payment 
154.15 	equal to one-fifth of the amount of interest that was paid on the loan between December 1, 
154.16 	1990, and June 30, 2016. A school district with a maximum effort capital loan outstanding 
154.17 	as of June 30, 2017, is eligible for an annual aid payment equal to one-fifth of the estimated 
154.18 	amount of interest that will be paid by the district on the loan between June 30, 2017, and 
154.19 	June 30, 2021. Aid payments under this section must be used to reduce current year property 
154.20 	taxes levied on net tax capacity within the district or to reduce future years' tax levies by:
154.21 	(1) retaining payments made under this section in the district's debt redemption fund for 
154.22 	up to 20 years, notwithstanding the two-year limit under section 475.61, subdivision 3; or
154.23 	(2) financing a defeasance of any future payments on outstanding bonded debt.
154.24 	(b) Aid under this section must be paid in fiscal years 2018 to 2022. An amount sufficient 
154.25 	to make aid payments under this section is annually appropriated from the general fund to 
154.26 	the commissioner of education.

154.27 	EFFECTIVE DATE. This section is effective for fiscal years 2018 to 2022.

154.28 	Sec. 22. Minnesota Statutes 2016, section 477A.12, subdivision 1, is amended to read:
154.29 		Subdivision 1.Types of land; payments.  The following amounts are annually 
154.30 	appropriated to the commissioner of natural resources from the general fund for transfer to 
154.31 	the commissioner of revenue. The commissioner of revenue shall pay the transferred funds 
155.1 	to counties as required by sections 477A.11 to 477A.14. The amounts, based on the acreage 
155.2 	as of July 1 of each year prior to the payment year, are:
155.3 	(1) $5.133 multiplied by the total number of acres of acquired natural resources land or, 
155.4 	at the county's option three-fourths of one percent of the appraised value of all acquired 
155.5 	natural resources land in the county, whichever is greater;
155.6 	(2) $5.133, multiplied by the total number of acres of transportation wetland or, at the 
155.7 	county's option, three-fourths of one percent of the appraised value of all transportation 
155.8 	wetland in the county, whichever is greater;
155.9 	(3) $5.133, multiplied by the total number of acres of wildlife management land, or, at 
155.10 	the county's option, three-fourths of one percent of the appraised value of all wildlife 
155.11 	management land in the county, whichever is greater;
155.12 	(4) 50 percent of the dollar amount as determined under clause (1), multiplied by the 
155.13 	number of acres of military refuge land in the county;
155.14 	(5) $1.50 $2, multiplied by the number of acres of county-administered other natural 
155.15 	resources land in the county;
155.16 	(6) $5.133, multiplied by the total number of acres of land utilization project land in the 
155.17 	county;
155.18 	(7) $1.50 $2, multiplied by the number of acres of commissioner-administered other 
155.19 	natural resources land in the county; and
155.20 	(8) without regard to acreage, and notwithstanding the rules adopted under section 
155.21 	84A.55, $300,000 for local assessments under section 84A.55, subdivision 9, that shall be 
155.22 	divided and distributed to the counties containing state-owned lands within a conservation 
155.23 	area in proportion to each county's percentage of the total annual ditch assessments.

155.24 	EFFECTIVE DATE. This section is effective for payments made in calendar year 2018 
155.25 	and thereafter.

155.26 	Sec. 23. Minnesota Statutes 2016, section 477A.17, is amended to read:
155.27 	477A.17 LAKE VERMILION-SOUDAN UNDERGROUND MINE STATE PARK; 
155.28 	ANNUAL PAYMENTS.
155.29 	(a) In lieu of the payment amount provided under section 477A.12, subdivision 1, clause 
155.30 	(1), the county shall receive an annual payment for state-owned land within the boundary 
155.31 	of Lake Vermilion-Soudan Underground Mine State Park, established in section 85.012, 
155.32 	subdivision 38a, equal to 1.5 percent of the appraised value of the state-owned land.
156.1 	(b) For the purposes of this section, the appraised value of the land acquired for Lake 
156.2 	Vermilion-Soudan Underground Mine State Park for the first five years after acquisition 
156.3 	shall be the purchase price of the land, plus the value of any portion of the land that is 
156.4 	acquired by donation. Thereafter, the appraised value of the state-owned land shall be as 
156.5 	determined under section 477A.12, subdivision 3, except that the appraised value of the 
156.6 	state-owned land within the park shall not be reduced below the 2010 appraised value of 
156.7 	the land.
156.8 	(c) The annual payments under this section shall be distributed to the taxing jurisdictions 
156.9 	containing the property as follows: one-third to the school districts; one-third to the town; 
156.10 	and one-third to the county. The payment to school districts is not a county apportionment 
156.11 	under section 127A.34 and is not subject to aid recapture. Each of those taxing jurisdictions 
156.12 	may use the payments for their general purposes.
156.13 	(d) Except as provided in this section, the payments shall be made as provided in sections 
156.14 	477A.11 to 477A.13.

156.15 	EFFECTIVE DATE. This section is effective beginning with aids payable in 2017. 
156.16 	For aids payable in 2017, the commissioner of natural resources must recertify the amounts 
156.17 	under this section to the commissioner of revenue by June 15, 2017.

156.18 	Sec. 24. [477A.21] RIPARIAN PROTECTION AID.
156.19 		Subdivision 1.Definitions. For purposes of this section, the following terms have the 
156.20 	meanings given:
156.21 	(1) "buffer protection map" has the meaning given under section 103F.48, subdivision 
156.22 	1; and
156.23 	(2) "public watercourses" means public waters and public drainage systems subject to 
156.24 	riparian protection requirements under section 103F.48.
156.25 		Subd. 2.Certifications to commissioner. (a) The Board of Water and Soil Resources 
156.26 	must certify to the commissioner of revenue, on or before July 1 each year, which counties 
156.27 	and watershed districts have affirmed their jurisdiction under section 103F.48 and the 
156.28 	proportion of centerline miles of public watercourses, and miles of public drainage system 
156.29 	ditches on the buffer protection map, within each county and each watershed district within 
156.30 	the county with affirmed jurisdiction.
156.31 	(b) On or before July 1 each year, the commissioner of natural resources shall certify to 
156.32 	the commissioner of revenue the statewide and countywide number of centerline miles of 
157.1 	public watercourses and miles of public drainage system ditches on the buffer protection 
157.2 	map.
157.3 		Subd. 3.Distribution. (a) A county that is certified under subdivision 2, or that portion 
157.4 	of a county containing a watershed district certified under subdivision 2, is eligible to receive 
157.5 	aid under this section to enforce and implement the riparian protection and water quality 
157.6 	practices under section 103F.48. Each county's preliminary aid amount is equal to the 
157.7 	proportion calculated under paragraph (b) multiplied by the appropriation received each 
157.8 	year by the commissioner for purposes of payments under this section.
157.9 	(b) The commissioner must compute each county's proportion. A county's proportion is 
157.10 	equal to the ratio of the sum in clause (1) to the sum in clause (2):
157.11 	(1) the sum of the total number of acres in the county classified as class 2a under section 
157.12 	273.13, subdivision 23, the countywide number of centerline miles of public watercourses 
157.13 	on the buffer protection map, and the countywide number of miles of public drainage system 
157.14 	ditches on the buffer protection map; and
157.15 	(2) the sum of the statewide total number of acres classified as class 2a under section 
157.16 	273.13, subdivision 23, the statewide total number of centerline miles of public watercourses 
157.17 	on the buffer protection map, and the statewide total number of public drainage system 
157.18 	miles on the buffer protection map.
157.19 	(c) Aid to a county must not be greater than $200,000 or less than $50,000. If the sum 
157.20 	of the preliminary aids payable to counties under paragraph (a) is greater or less than the 
157.21 	appropriation received by the commissioner, the commissioner of revenue must calculate 
157.22 	the percentage of adjustment necessary so that the total of the aid under paragraph (a) equals 
157.23 	the total amount received by the commissioner, subject to the minimum and maximum 
157.24 	amounts specified in this paragraph. The minimum and maximum amounts under this 
157.25 	paragraph must be adjusted by the ratio of the actual amount appropriated to $10,000,000.
157.26 	(d) If only a portion of a county is certified as eligible to receive aid under subdivision 
157.27 	2, the aid otherwise payable to that county under this section must be multiplied by a fraction, 
157.28 	the numerator of which is the buffer protection map miles of the certified watershed districts 
157.29 	contained within the county and the denominator of which is the total buffer protection map 
157.30 	miles of the county.
157.31 	(e) Any aid that would otherwise be paid to a county or portion of a county that is not 
157.32 	certified under subdivision 2 shall be paid to the Board of Water and Soil Resources for 
157.33 	enforcing and implementing the riparian protection and water quality practices under section 
157.34 	103F.48.
158.1 		Subd. 4.Payments. The commissioner of revenue must compute the amount of riparian 
158.2 	protection aid payable to each eligible county and to the Board of Water and Soil Resources 
158.3 	under this section. On or before August 1 each year, the commissioner must certify the 
158.4 	amount to be paid to each county and the Board of Water and Soil Resources in the following 
158.5 	year, except that the payments for 2017 must be certified by July 15, 2017. The commissioner 
158.6 	must pay riparian protection aid to counties and to the Board of Water and Soil Resources 
158.7 	in the same manner and at the same time as aid payments under section 477A.015.

158.8 	EFFECTIVE DATE. This section is effective the day following final enactment and 
158.9 	applies to aids payable in 2017 and thereafter.

158.10 	Sec. 25. [477A.22] APPROPRIATION; RIPARIAN PROTECTION AID.
158.11 	$6,000,000 in fiscal year 2018 and $8,000,000 in each fiscal year thereafter is 
158.12 	appropriated from the general fund to the commissioner of revenue for riparian protection 
158.13 	aid payments under Minnesota Statutes, section 477A.21. These amounts may be in addition 
158.14 	to other appropriations for the same purpose. Notwithstanding Minnesota Statutes, section 
158.15 	477A.21, subdivisions 3 and 4, the fiscal year 2018 appropriation may be paid only to 
158.16 	counties. Unexpended funds from fiscal year 2018 are available in fiscal year 2019.

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

158.18 	Sec. 26. BASE YEAR FORMULA AID FOR NEWLY INCORPORATED CITY.
 158.19 	For a city that incorporated on October 13, 2015, and first qualifies for aid under 
158.20 	Minnesota Statutes, section 477A.013, subdivisions 8 and 9, in 2017, the city's certified aid 
158.21 	for 2017, used in calculating aid payable in 2018, shall be deemed to equal $95 multiplied 
158.22 	by its 2014 population.

158.23 	EFFECTIVE DATE. This section is effective for aids payable in 2018.

158.24 	Sec. 27. 2013 CITY AID PENALTY FORGIVENESS; CITY OF OSLO.
 158.25 	Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of Oslo 
158.26 	shall receive the portion of its aid payment for calendar year 2013 under Minnesota Statutes, 
158.27 	section 477A.013, that was withheld under Minnesota Statutes, section 477A.017, subdivision 
158.28 	3, provided that the state auditor certifies to the commissioner of revenue that it received 
158.29 	audited financial statements from the city for calendar year 2012 by December 31, 2013. 
158.30 	The commissioner of revenue shall make a payment of $37,473.50 with the first payment 
158.31 	of aids under Minnesota Statutes, section 477A.015. $37,473.50 is appropriated from the 
158.32 	general fund to the commissioner of revenue in fiscal year 2018 to make this payment.

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

159.2 	Sec. 28. 2014 AID PENALTY FORGIVENESS.
 159.3 	(a) Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the cities of 
159.4 	Dundee, Jeffers, and Woodstock shall receive all of their calendar year 2014 aid payment 
159.5 	that was withheld under Minnesota Statutes, section 477A.017, subdivision 3, provided that 
159.6 	the state auditor certifies to the commissioner of revenue that the city complied with all 
159.7 	reporting requirements under Minnesota Statutes, section 477A.017, subdivision 3, for 
159.8 	calendar years 2013 and 2014 by June 1, 2015.
159.9 	(b) The commissioner of revenue shall make payment to each city no later than July 20, 
159.10 	2017. Up to $101,570 in fiscal year 2018 is appropriated from the general fund to the 
159.11 	commissioner of revenue to make the payments under this section.

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

159.13 	Sec. 29. CITY OF TAYLORS FALLS; DEVELOPMENT ZONE.
 159.14 		Subdivision 1.Authorization. The governing body of the city of Taylors Falls may 
159.15 	designate all or any part of the city as a development zone under Minnesota Statutes, section 
159.16 	469.1731.
159.17 		Subd. 2.Application of general law. (a) Minnesota Statutes, sections 469.1731 to 
159.18 	469.1735, apply to the development zones designated under this section. The governing 
159.19 	body of the city may exercise the powers granted under Minnesota Statutes, sections 469.1731 
159.20 	to 469.1735, including powers that apply outside of the zones.
159.21 	(b) The allocation under subdivision 3 for purposes of Minnesota Statutes, section 
159.22 	469.1735, subdivision 2, is appropriated to the commissioner of revenue.
159.23 		Subd. 3.Allocation of state tax reductions. (a) The cumulative total amount of the 
159.24 	state portion of the tax reductions for all years of the program under Minnesota Statutes, 
159.25 	sections 469.1731 to 469.1735, for the city of Taylors Falls, is limited to $50,000. To provide 
159.26 	the authority under this section, the amount of the allocation for border cities under Minnesota 
159.27 	Statutes, section 469.169, in this act is reduced by $50,000.
159.28 	(b) This allocation may be used for tax reductions provided in Minnesota Statutes, section 
159.29 	469.1732 or 469.1734, or for reimbursements under Minnesota Statutes, section 469.1735, 
159.30 	subdivision 3, but only if the governing body of the city of Taylors Falls determines that 
159.31 	the tax reduction or offset is necessary to enable a business to expand within the city or to 
159.32 	attract a business to the city.
160.1 	(c) The commissioner of revenue may waive the limit under this subdivision using the 
160.2 	same rules and standards provided in Minnesota Statutes, section 469.169, subdivision 12, 
160.3 	paragraph (b).

160.4 	EFFECTIVE DATE. This section is effective July 1, 2017, and does not require local 
160.5 	approval pursuant to Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).

160.6 	Sec. 30. REPORT ON RENT CONSTITUTING PROPERTY TAXES.
 160.7 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
160.8 	the meaning given.
160.9 	(b) "Commissioner" means the commissioner of revenue.
160.10 	(c) "Renter property tax refund" means the refund for renters allowed under Minnesota 
160.11 	Statutes, chapter 290A.
160.12 		Subd. 2.Report required. (a) By March 1, 2018, the commissioner must report to the 
160.13 	committees of the house of representatives and senate with jurisdiction over taxes on the 
160.14 	percentage of rent constituting property taxes used in determining the renter property tax 
160.15 	refund. The report must be in compliance with Minnesota Statutes, sections 3.195 and 3.197.
160.16 	(b) The report must include estimates of rent constituting property tax for the following 
160.17 	geographic regions:
160.18 	(1) the city of Minneapolis;
160.19 	(2) the city of St. Paul;
160.20 	(3) the counties of Anoka; Dakota; Hennepin, excluding the city of Minneapolis; and 
160.21 	Ramsey, excluding the city of St. Paul; and
160.22 	(4) the remainder of the state.
160.23 	The commissioner must prepare the estimates by determining the property taxes attributable 
160.24 	to rental units for which renters submitted claims for the renter property tax refund based 
160.25 	on rent paid in 2016. The commissioner must match the property ID number or parcel 
160.26 	number on form CRP filed with the claim to property tax data for taxes payable in 2016. 
160.27 	The commissioner must then calculate the percentage of rent constituting property taxes 
160.28 	using the rent amount reported on form CRP, adjusted by the total number of months the 
160.29 	unit was rented and the number of rental units on the property. The estimates for each 
160.30 	geographic region must be rounded to the nearest one-tenth of one percentage point.

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

161.1 	Sec. 31. APPROPRIATION; FIRE REMEDIATION GRANTS.
 161.2 	$1,392,258 is appropriated in fiscal year 2018 from the general fund to the commissioner 
161.3 	of public safety for grants to remediate the effects of fires in the city of Melrose on September 
161.4 	8, 2016. The commissioner must allocate the grants as follows:
161.5 	(1) $1,296,458 to the city of Melrose; and
161.6 	(2) $95,800 to Stearns County.
161.7 	A grant recipient must use the money appropriated under this section for remediation 
161.8 	costs, including disaster recovery, infrastructure, reimbursement for emergency personnel 
161.9 	costs, reimbursement for equipment costs, and reimbursements for property tax abatements, 
161.10 	incurred by public or private entities as a result of the fires. This is a onetime appropriation 
161.11 	and is available until June 30, 2018.

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

161.13 	Sec. 32. APPROPRIATION.
 161.14 	$600,000 in fiscal year 2018 and $600,000 in fiscal year 2019 are appropriated from the 
161.15 	general fund to the commissioner of revenue for a grant to Wadena County that shall be 
161.16 	paid on July 20, 2017, and July 20, 2018. These are onetime appropriations.

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

161.18 	Sec. 33.  REPEALER.
 161.19 	(a) Minnesota Statutes 2016, section 477A.0124, subdivision 5, is repealed.
161.20 	(b) Minnesota Statutes 2016, section 477A.20, is repealed.

161.21 	EFFECTIVE DATE. Paragraph (a) is effective beginning with aids payable in 2018. 
161.22 	Paragraph (b) is effective the day following final enactment.

161.23 	ARTICLE 5
161.24 	LOCAL OPTION SALES AND USE TAXES

161.25 	Section 1. Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991, 
161.26 	chapter 291, article 8, section 22, Laws 1998, chapter 389, article 8, section 25, Laws 2003, 
161.27 	First Special Session chapter 21, article 8, section 11, Laws 2008, chapter 154, article 5, 
161.28 	section 2, and Laws 2014, chapter 308, article 3, section 21, is amended to read:
162.1 		Subd. 2. (a) Notwithstanding Minnesota Statutes, section 477A.016, or any other law, 
162.2 	ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance, 
162.3 	impose an additional sales tax of up to one and three-quarter percent on sales transactions 
162.4 	which are described in Minnesota Statutes 2000, section 297A.01, subdivision 3, clause (c). 
162.5 	The imposition of this tax shall not be subject to voter referendum under either state law or 
162.6 	city charter provisions. When the city council determines that the taxes imposed under this 
162.7 	paragraph at a rate of three-quarters of one percent and other sources of revenue produce 
162.8 	revenue sufficient to pay debt service on bonds in the principal amount of $40,285,000 plus 
162.9 	issuance and discount costs, issued for capital improvements at the Duluth Entertainment 
162.10 	and Convention Center, which include a new arena, the rate of tax under this subdivision 
162.11 	must be reduced by three-quarters of one percent.
162.12 	(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, section 
162.13 	477A.016, or any other law, ordinance, or city charter provision to the contrary, the city of 
162.14 	Duluth may, by ordinance, impose an additional sales tax of up to one-half of one percent 
162.15 	on sales transactions which are described in Minnesota Statutes 2000, section 297A.01, 
162.16 	subdivision 3, clause (c). This tax expires when the city council determines that the tax 
162.17 	imposed under this paragraph, along with the tax imposed under section 22, paragraph (b), 
162.18 	has produced revenues sufficient to pay the debt service on bonds in a principal amount of 
162.19 	no more than $18,000,000, plus issuance and discount costs, to finance capital improvements 
162.20 	to public facilities to support tourism and recreational activities in that portion of the city 
162.21 	west of 34th 14th Avenue West and the area south of and including Skyline Parkway.
162.22 	(c) The city of Duluth may sell and issue up to $18,000,000 in general obligation bonds 
162.23 	under Minnesota Statutes, chapter 475, plus an additional amount to pay for the costs of 
162.24 	issuance and any premiums. The proceeds may be used to finance capital improvements to 
162.25 	public facilities that support tourism and recreational activities in the portion of the city 
162.26 	west of 34th 14th Avenue West and the area south of and including Skyline Parkway, as 
162.27 	described in paragraph (b). The issuance of the bonds is subject to the provisions of 
162.28 	Minnesota Statutes, chapter 475, except no election shall be required unless required by the 
162.29 	city charter. The bonds shall not be included in computing net debt. The revenues from the 
162.30 	taxes that the city of Duluth may impose under paragraph (b) and under section 22, paragraph 
162.31 	(b), may be pledged to pay principal of and interest on such bonds.

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

163.1 	Sec. 2. Laws 1980, chapter 511, section 2, as amended by Laws 1998, chapter 389, article 
163.2 	8, section 26, Laws 2003, First Special Session chapter 21, article 8, section 12, and Laws 
163.3 	2014, chapter 308, article 3, section 22, is amended to read:
163.4 	Sec. 22. CITY OF DULUTH; TAX ON RECEIPTS BY HOTELS AND MOTELS.
 163.5 	(a) Notwithstanding Minnesota Statutes, section 477A.016, or any other law, or ordinance, 
163.6 	or city charter provision to the contrary, the city of Duluth may, by ordinance, impose an 
163.7 	additional tax of one percent upon the gross receipts from the sale of lodging for periods of 
163.8 	less than 30 days in hotels and motels located in the city. The tax shall be collected in the 
163.9 	same manner as the tax set forth in the Duluth city charter, section 54(d), paragraph one. 
163.10 	The imposition of this tax shall not be subject to voter referendum under either state law or 
163.11 	city charter provisions.
163.12 	(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, section 
163.13 	477A.016, or any other law, ordinance, or city charter provision to the contrary, the city of 
163.14 	Duluth may, by ordinance, impose an additional sales tax of up to one-half of one percent 
163.15 	on the gross receipts from the sale of lodging for periods of less than 30 days in hotels and 
163.16 	motels located in the city. This tax expires when the city council first determines that the 
163.17 	tax imposed under this paragraph, along with the tax imposed under section 21, paragraph 
163.18 	(b), has produced revenues sufficient to pay the debt service on bonds in a principal amount 
163.19 	of no more than $18,000,000, plus issuance and discount costs, to finance capital 
163.20 	improvements to public facilities to support tourism and recreational activities in that portion 
163.21 	of the city west of 34th 14th Avenue West and the area south of and including Skyline 
163.22 	Parkway.

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

163.26 	Sec. 3. Laws 1991, chapter 291, article 8, section 27, subdivision 3, as amended by Laws 
163.27 	1998, chapter 389, article 8, section 28, Laws 2008, chapter 366, article 7, section 9, and 
163.28 	Laws 2009, chapter 88, article 4, section 14, is amended to read:
163.29 		Subd. 3. Use of revenues. (a) Revenues received from taxes authorized by subdivisions 
163.30 	1 and 2 shall be used by the city to pay the cost of collecting the tax and to pay all or a 
163.31 	portion of the expenses of constructing and improving facilities as part of an urban 
163.32 	revitalization project in downtown Mankato known as Riverfront 2000. Authorized expenses 
163.33 	include, but are not limited to, acquiring property and paying relocation expenses related 
163.34 	to the development of Riverfront 2000 and related facilities, and securing or paying debt 
164.1 	service on bonds or other obligations issued to finance the construction of Riverfront 2000 
164.2 	and related facilities. For purposes of this section, "Riverfront 2000 and related facilities" 
164.3 	means a civic-convention center, an arena, a riverfront park, a technology center and related 
164.4 	educational facilities, and all publicly owned real or personal property that the governing 
164.5 	body of the city determines will be necessary to facilitate the use of these facilities, including 
164.6 	but not limited to parking, skyways, pedestrian bridges, lighting, and landscaping. It also 
164.7 	includes the performing arts theatre and the Southern Minnesota Women's Hockey Exposition 
164.8 	Center, for use by Minnesota State University, Mankato.
164.9 	(b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and as approved 
164.10 	by voters at the November 8, 2016, general election, the city may by ordinance also use 
164.11 	revenues from taxes authorized under subdivisions 1 and 2, up to a maximum of $47,000,000, 
164.12 	plus associated bond costs, to pay all or a portion of the expenses of the following capital 
164.13 	projects:
164.14 	(1) construction and improvements to regional recreational facilities including existing 
164.15 	hockey and curling rinks, a baseball park, youth athletic fields and facilities, the municipal 
164.16 	swimming pool including improvements to make the pool compliant with the Americans 
164.17 	with Disabilities Act, and indoor regional athletic facilities;
164.18 	(2) improvements to flood control and the levee system;
164.19 	(3) water quality improvement projects in Blue Earth and Nicollet Counties;
164.20 	(4) expansion of the regional transit building and related multimodal transit 
164.21 	improvements;
164.22 	(5) regional public safety and emergency communications improvements and equipment; 
164.23 	and
164.24 	(6) matching funds for improvements to publicly owned regional facilities including a 
164.25 	historic museum, supportive housing, and a senior center.

164.26 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
164.27 	city of Mankato and its chief clerical officer comply with Minnesota Statutes, section 
164.28 	645.021, subdivisions 2 and 3.

165.1 	Sec. 4. Laws 1991, chapter 291, article 8, section 27, subdivision 4, as amended by Laws 
165.2 	2005, First Special Session chapter 3, article 5, section 25, and Laws 2008, chapter 366, 
165.3 	article 7, section 10, is amended to read:
165.4 		Subd. 4. Expiration of taxing authority and expenditure limitation. The authority 
165.5 	granted by subdivisions 1 and 2 to the city to impose a sales tax and an excise tax shall 
165.6 	expire on at the earlier of when revenues are sufficient to pay off the bonds, including 
165.7 	interest and all other associated bond costs authorized under subdivision 5, or  December 
165.8 	31, 2022 2038.

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

165.11 	Sec. 5. Laws 1991, chapter 291, article 8, section 27, subdivision 5, is amended to read:
165.12 		Subd. 5.Bonds. (a) The city of Mankato may issue general obligation bonds of the city 
165.13 	in an amount not to exceed $25,000,000 for Riverfront 2000 and related facilities, without 
165.14 	election under Minnesota Statutes, chapter 475, on the question of issuance of the bonds or 
165.15 	a tax to pay them. The debt represented by bonds issued for Riverfront 2000 and related 
165.16 	facilities shall not be included in computing any debt limitations applicable to the city of 
165.17 	Mankato, and the levy of taxes required by section 475.61 to pay principal of and interest 
165.18 	on the bonds shall not be subject to any levy limitation or be included in computing or 
165.19 	applying any levy limitation applicable to the city.
165.20 	(b) The city of Mankato may issue general obligation bonds of the city in an amount not 
165.21 	to exceed $47,000,000 for the projects listed under subdivision 3, paragraph (b), without 
165.22 	election under Minnesota Statutes, chapter 475, on the question of issuance of the bonds or 
165.23 	a tax to pay them. The debt represented by bonds under this paragraph shall not be included 
165.24 	in computing any debt limitations applicable to the city of Mankato, and the levy of taxes 
165.25 	required by Minnesota Statutes, section 475.61, to pay principal of and interest on the bonds, 
165.26 	and shall not be subject to any levy limitation or be included in computing or applying any 
165.27 	levy limitation applicable to the city. The city may use tax revenue in excess of one year's 
165.28 	principal interest reserve for intended annual bond payments to pay all or a portion of the 
165.29 	cost of capital improvements authorized in subdivision 3.

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

166.1 	Sec. 6. Laws 1996, chapter 471, article 2, section 29, subdivision 1, as amended by Laws 
166.2 	2006, chapter 259, article 3, section 3, and Laws 2011, First Special Session chapter 7, 
166.3 	article 4, section 4, is amended to read:
166.4 		Subdivision 1.Sales tax authorized. (a) Notwithstanding Minnesota Statutes, section 
166.5 	477A.016, or any other contrary provision of law, ordinance, or city charter, the city of 
166.6 	Hermantown may, by ordinance, impose an additional sales tax of up to one percent on 
166.7 	sales transactions taxable pursuant to Minnesota Statutes, chapter 297A, that occur within 
166.8 	the city. The proceeds of the tax imposed under this section must be used to meet the costs 
166.9 	of:
166.10 	(1) extending a sewer interceptor line;
166.11 	(2) construction of a booster pump station, reservoirs, and related improvements to the 
166.12 	water system; and
166.13 	(3) construction of a building containing a police and fire station and an administrative 
166.14 	services facility.
166.15 	(b) If the city imposed a sales tax of only one-half of one percent under paragraph (a), 
166.16 	it may increase the tax to one percent to fund the purposes under paragraph (a) provided it 
166.17 	is approved by the voters at a general election held before December 31, 2012.
166.18 	(c) As approved by the voters at the November 8, 2016, general election, the proceeds 
166.19 	under this section may also be used to meet the costs of debt service payments for 
166.20 	construction of the Hermantown Wellness Center.

166.21 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
166.22 	city of Hermantown and its chief clerical officer comply with Minnesota Statutes, section 
166.23 	645.021, subdivisions 2 and 3.

166.24 	Sec. 7. Laws 1996, chapter 471, article 2, section 29, subdivision 4, as amended by Laws 
166.25 	2006, chapter 259, article 3, section 4, is amended to read:
166.26 		Subd. 4.Termination. The tax authorized under this section terminates on March 31, 
166.27 	2026 at the earlier of (1) December 31, 2036, or (2) when the Hermantown City Council 
166.28 	first determines that sufficient funds have been received from the tax to fund the costs, 
166.29 	including bonds and associated bond costs for the uses specified in subdivision 1. Any funds 
166.30 	remaining after completion of the improvements and retirement or redemption of the bonds 
166.31 	may be placed in the general fund of the city.

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

167.3 	Sec. 8. Laws 1999, chapter 243, article 4, section 17, subdivision 3, is amended to read:
167.4 		Subd. 3.Use of revenues. (a) Revenues received from taxes authorized by subdivisions 
167.5 	1 and 2 must be used by the city to pay the cost of collecting the taxes and to pay for 
167.6 	construction and improvement of a civic and community center and recreational facilities 
167.7 	to serve all ages, including seniors and youth. Authorized expenses include, but are not 
167.8 	limited to, acquiring property, paying construction and operating expenses related to the 
167.9 	development of an authorized facility, funding facilities replacement reserves, and paying 
167.10 	debt service on bonds or other obligations issued to finance the construction or expansion 
167.11 	of an authorized facility. The capital expenses for all projects authorized under this 
167.12 	subdivision that may be paid with these taxes are limited to $9,000,000, plus an amount 
167.13 	equal to the costs related to issuance of the bonds and funding facilities replacement reserves.
167.14 	(b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and as approved 
167.15 	by the voters at the November 8, 2016, general election, the city of New Ulm may by 
167.16 	ordinance also use revenues from taxes authorized under subdivisions 1 and 2, up to a 
167.17 	maximum of $14,800,000, plus associated bond costs, to pay all or a portion of the expenses 
167.18 	of the following capital projects:
167.19 	(1) constructing an indoor water park and making safety improvements to the existing 
167.20 	recreational center pool;
167.21 	(2) constructing an indoor playground, a wellness center, and a gymnastics facility;
167.22 	(3) constructing a winter multipurpose dome;
167.23 	(4) making improvements to Johnson Park Grandstand; and
167.24 	(5) making improvements to the entrance road and parking at Hermann Heights Park.

167.25 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
167.26 	city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section 
167.27 	645.021, subdivisions 2 and 3.

167.28 	Sec. 9. Laws 1999, chapter 243, article 4, section 17, is amended by adding a subdivision 
167.29 	to read:
167.30 		Subd. 4a.Bonding authority; additional use and extension of tax. As approved by 
167.31 	the voters at the November 8, 2016, general election, and in addition to the bonds issued 
168.1 	under subdivision 4, the city of New Ulm may issue general obligation bonds of the city in 
168.2 	an amount not to exceed $14,800,000 for the projects listed in subdivision 3, paragraph (b). 
168.3 	The debt represented by bonds under this subdivision shall not be included in computing 
168.4 	any debt limitations applicable to the city of New Ulm, and the levy of taxes required by 
168.5 	Minnesota Statutes, section 475.61, to pay principal of and interest on the bonds, and shall 
168.6 	not be subject to any levy limitation or be included in computing or applying any levy 
168.7 	limitation applicable to the city.

168.8 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
168.9 	city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section 
168.10 	645.021, subdivisions 2 and 3.

168.11 	Sec. 10. Laws 1999, chapter 243, article 4, section 17, subdivision 5, is amended to read:
168.12 		Subd. 5.Termination of taxes. The taxes imposed under subdivisions 1 and 2 expire 
168.13 	when the city council determines that sufficient funds have been received from the taxes to 
168.14 	finance the capital and administrative costs for the acquisition, construction, and improvement 
168.15 	of facilities described in subdivision 3, including the additional use of revenues under 
168.16 	subdivision 3, paragraph (b), as approved by the voters at the November 8, 2016, general 
168.17 	election, and to prepay or retire at maturity the principal, interest, and premium due on any 
168.18 	bonds issued for the facilities under subdivision 4 subdivisions 4 and 4a. Any funds remaining 
168.19 	after completion of the project and retirement or redemption of the bonds may be placed in 
168.20 	the general fund of the city. The taxes imposed under subdivisions 1 and 2 may expire at 
168.21 	an earlier time if the city so determines by ordinance.

168.22 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
168.23 	city of New Ulm and its chief clerical officer comply with Minnesota Statutes, section 
168.24 	645.021, subdivisions 2 and 3.

168.25 	Sec. 11. Laws 1999, chapter 243, article 4, section 18, subdivision 1, as amended by Laws 
168.26 	2008, chapter 366, article 7, section 12, is amended to read:
168.27 		Subdivision 1.Sales and use tax. (a) Notwithstanding Minnesota Statutes, section 
168.28 	477A.016, or any other provision of law, ordinance, or city charter, if approved by the city 
168.29 	voters at the first municipal general election held after the date of final enactment of this 
168.30 	act or at a special election held November 2, 1999, the city of Proctor may impose by 
168.31 	ordinance a sales and use tax of up to one-half of one percent for the purposes specified in 
168.32 	subdivision 3. The provisions of Minnesota Statutes, section 297A.99, govern the imposition, 
168.33 	administration, collection, and enforcement of the tax authorized under this subdivision.
169.1 	(b) Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of 
169.2 	law, ordinance, or city charter, the city of Proctor may impose by ordinance an additional 
169.3 	sales and use tax of up to one-half of one percent as approved by the voters at the November 
169.4 	4, 2014, election. The revenues received from the additional tax must be used for the purposes 
169.5 	specified in subdivision 3, paragraph (b).

169.6 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
169.7 	city of Proctor and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
169.8 	subdivisions 2 and 3.

169.9 	Sec. 12. Laws 2005, First Special Session chapter 3, article 5, section 38, subdivision 2, 
169.10 	as amended by Laws 2006, chapter 259, article 3, section 6, is amended to read:
169.11 		Subd. 2.Use of revenues. The proceeds of the tax imposed under this section shall be 
169.12 	used to pay for lake water quality improvement projects as detailed in the Shell Rock River 
169.13 	watershed plan and as directed by the Shell Rock River Watershed Board. Notwithstanding 
169.14 	any provision of statute, other law, or city charter to the contrary, the city shall transfer all 
169.15 	revenues from the tax imposed under subdivision 1, as soon as they are received, to the 
169.16 	Shell Rock River Watershed District. The city is not required to review the intended uses 
169.17 	of the revenues by the watershed district, nor is the watershed district required to submit to 
169.18 	the city proposed budgets, statements, or invoices explaining the intended uses of the 
169.19 	revenues as a prerequisite for the transfer of the revenues. The Shell Rock River Watershed 
169.20 	District shall appear before the city of Albert Lea City Council on a biannual basis to present 
169.21 	a report of its activities, expenditures, and intended uses of the city sales tax revenue.

169.22 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
169.23 	city of Albert Lea and its chief clerical officer comply with Minnesota Statutes, section 
169.24 	645.021, subdivisions 2 and 3.

169.25 	Sec. 13. Laws 2005, First Special Session chapter 3, article 5, section 38, subdivision 4, 
169.26 	as amended by Laws 2014, chapter 308, article 3, section 23, is amended to read:
169.27 		Subd. 4.Termination of taxes. The taxes imposed under this section expire at the earlier 
169.28 	of (1) 15 30 years after the taxes are first imposed, or (2) when the city council first 
169.29 	determines that the amount of revenues raised to pay for the projects under subdivision 2, 
169.30 	shall meet or exceed the sum of $15,000,000 $30,000,000. Any funds remaining after 
169.31 	completion of the projects may be placed in the general fund of the city.

170.1 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
170.2 	city of Albert Lea and its chief clerical officer comply with Minnesota Statutes, section 
170.3 	645.021, subdivisions 2 and 3.

170.4 	Sec. 14. Laws 2005, First Special Session chapter 3, article 5, section 44, subdivision 3, 
170.5 	as amended by Laws 2014, chapter 308, article 7, section 3, is amended to read:
170.6 		Subd. 3.Use of revenues. (a) Revenues received from taxes authorized by subdivisions 
170.7 	1 and 2 must be used by the city (1) to pay the cost of collecting and administering the taxes 
170.8 	and; (2) to pay for the costs of a community center complex and; (3) to make renovations 
170.9 	to the Memorial Auditorium; and (4) to construct public athletic facilities, provided that 
170.10 	this use of the tax is subject to the same restrictions that apply to the issuance of debt provided 
170.11 	in subdivision 4, paragraph (c). Authorized expenses include, but are not limited to, acquiring 
170.12 	property and paying construction expenses related to these improvements, and paying debt 
170.13 	service on bonds or other obligations issued to finance acquisition and construction of these 
170.14 	improvements.
170.15 	(b) Notwithstanding Minnesota Statutes, section 297A.99, subdivisions 2 and 3, if the 
170.16 	city decides to extend the taxes in subdivisions 1 and 2, as allowed under subdivision 5, 
170.17 	paragraph (b), the city must use any amounts in excess of the amounts necessary to meet 
170.18 	the obligations under paragraph (a) to pay the city's share of debt service on bonds issued 
170.19 	under Minnesota Statutes, section 469.194, to fund the Lewis and Clark Regional Water 
170.20 	System Project.

170.21 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
170.22 	city of Worthington and its chief clerical officer comply with Minnesota Statutes, section 
170.23 	645.021, subdivisions 2 and 3.

170.24 	Sec. 15. Laws 2005, First Special Session chapter 3, article 5, section 44, subdivision 4, 
170.25 	is amended to read:
170.26 		Subd. 4.Bonding authority. (a) If the tax authorized under subdivision 1 is approved 
170.27 	by the voters, the city may issue bonds under Minnesota Statutes, chapter 475, to pay capital 
170.28 	and administrative expenses for the improvements described in subdivision 3 in an amount 
170.29 	that does not exceed $6,000,000 $7,300,000. An election to approve the bonds under 
170.30 	Minnesota Statutes, section 475.58, is not required.
170.31 	(b) The debt represented by the bonds is not included in computing any debt limitation 
170.32 	applicable to the city, and any levy of taxes under Minnesota Statutes, section 475.61, to 
170.33 	pay principal of and interest on the bonds is not subject to any levy limitation.
171.1 	(c) If the Worthington City Council intends to issue debt after June 30, 2017, for the 
171.2 	purposes of this subdivision, it must pass a resolution stating the intent to issue debt and 
171.3 	proposing a public hearing. The resolution must be published for two successive weeks in 
171.4 	the official newspaper of the city together with a notice setting a date for the public hearing. 
171.5 	The hearing must be held at least two weeks, but not more than four weeks, after the first 
171.6 	publication after passage of the resolution. Following the public hearing, if the city adopts 
171.7 	a resolution confirming its intention to issue additional debt, that resolution must also be 
171.8 	published in the official newspaper of the city, but the resolution is not effective for 30 days. 
171.9 	If within 30 days after publication of the resolution confirming the city's intention to issue 
171.10 	additional debt a petition signed by voters equal in number to ten percent of the votes cast 
171.11 	in the city in the last general election requesting a vote on the proposed resolution is filed 
171.12 	with the county auditor, the resolution is not effective until it has been submitted to the 
171.13 	voters in a general or special election and a majority of the votes cast on the question of 
171.14 	approving the resolution are in the affirmative. The commissioner of revenue shall prepare 
171.15 	a suggested form of question to be presented at the election.

171.16 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
171.17 	city of Worthington and its chief clerical officer comply with Minnesota Statutes, section 
171.18 	645.021, subdivisions 2 and 3.

171.19 	Sec. 16. Laws 2005, First Special Session chapter 3, article 5, section 44, subdivision 5, 
171.20 	as amended by Laws 2014, chapter 308, article 7, section 4, is amended to read:
171.21 		Subd. 5.Termination of taxes. (a) The taxes imposed under subdivisions 1 and 2 expire 
171.22 	at the earlier of (1) ten years, or (2) when the city council determines that the amount of 
171.23 	revenue received from the taxes is sufficient to pay for the projects under subdivision 3 
171.24 	equals or exceeds $6,000,000 $7,300,000 plus the additional amount needed to pay the costs 
171.25 	related to issuance of bonds under subdivision 4, including interest on the bonds. Any funds 
171.26 	remaining after completion of the project and retirement or redemption of the bonds shall 
171.27 	be placed in a capital project fund of the city. The taxes imposed under subdivisions 1 and 
171.28 	2 may expire at an earlier time if the city so determines by ordinance.
171.29 	(b) Notwithstanding paragraph (a), the city council may, by ordinance, extend the taxes 
171.30 	imposed under subdivisions 1 and 2 through December 31, 2039, provided that all additional 
171.31 	revenues that exceed those necessary to fund the projects and associated financing costs 
171.32 	listed in subdivision 3, paragraph (a), are committed to pay debt service on bonds issued 
171.33 	under Minnesota Statutes, section 469.194, to fund the Lewis and Clark Regional Water 
171.34 	System Project.

172.1 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
172.2 	city of Worthington and its chief clerical officer comply with Minnesota Statutes, section 
172.3 	645.021, subdivisions 2 and 3.

172.4 	Sec. 17. Laws 2008, chapter 366, article 7, section 20, is amended to read:
172.5 	Sec. 20. CITY OF NORTH MANKATO; TAXES AUTHORIZED.
 172.6 		Subdivision 1.Sales and use tax authorized. Notwithstanding Minnesota Statutes, 
172.7 	section 477A.016, or any other provision of law, ordinance, or city charter, pursuant to the 
172.8 	approval of the voters on November 7, 2006, the city of North Mankato may impose by 
172.9 	ordinance a sales and use tax of one-half of one percent for the purposes specified in 
172.10 	subdivision 2. The provisions of Minnesota Statutes, section 297A.99, govern the imposition, 
172.11 	administration, collection, and enforcement of the taxes authorized under this subdivision.
172.12 		Subd. 2.Use of revenues. Revenues received from the tax authorized by subdivision 1 
172.13 	must be used to pay all or part of the capital costs of the following projects:
172.14 	(1) the local share of the Trunk Highway 14/County State-Aid Highway 41 interchange 
172.15 	project;
172.16 	(2) development of regional parks and hiking and biking trails, including construction 
172.17 	of indoor regional athletic facilities;
172.18 	(3) expansion of the North Mankato Taylor Library;
172.19 	(4) riverfront redevelopment; and
172.20 	(5) lake improvement projects.
172.21 	The total amount of revenues from the tax in subdivision 1 that may be used to fund 
172.22 	these projects is $6,000,000 $15,000,000 plus any associated bond costs.
172.23 		Subd. 2a.Authorization to extend the tax. Notwithstanding Minnesota Statutes, section 
172.24 	297A.99, subdivision 3, the North Mankato city council may, by resolution, extend the tax 
172.25 	authorized under subdivision 1 to cover an additional $9,000,000 in bonds, plus associated 
172.26 	bond costs, to fund the projects in subdivision 2 pursuant to voter approval to extend the 
172.27 	tax at the November 8, 2016, general election.
172.28 		Subd. 3.Bonds. (a) The city of North Mankato, pursuant to the approval of the voters 
172.29 	at the November 7, 2006 referendum authorizing the imposition of the taxes in this section, 
172.30 	may issue bonds under Minnesota Statutes, chapter 475, to pay capital and administrative 
172.31 	expenses for the projects described in subdivision 2, in an amount that does not exceed 
173.1 	$6,000,000. A separate election to approve the bonds under Minnesota Statutes, section 
173.2 	475.58, is not required.
173.3 	(b) The city of North Mankato, pursuant to approval of the voters at the November 8, 
173.4 	2016, referendum extending the tax to provide additional revenue to be spent for the projects 
173.5 	in subdivision 2, may issue additional bonds under Minnesota Statutes, chapter 475, to pay 
173.6 	capital and administrative expenses for those projects in an amount that does not exceed 
173.7 	$9,000,000. A separate election to approve the bonds under Minnesota Statutes, section 
173.8 	475.58, is not required.
173.9 	(b) (c) The debt represented by the bonds is not included in computing any debt limitation 
173.10 	applicable to the city, and any levy of taxes under Minnesota Statutes, section 475.61, to 
173.11 	pay principal and interest on the bonds is not subject to any levy limitation.
173.12 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires when the 
173.13 	city council determines that the amount of revenues received from the taxes to pay for the 
173.14 	projects under subdivision 2 first equals or exceeds $6,000,000 plus the additional amount 
173.15 	needed to pay the costs related to issuance of bonds under subdivision 3, including interest 
173.16 	on the bonds at the earlier of December 31, 2038, or when revenues from the taxes first 
173.17 	equal or exceed $15,000,000 plus the additional amount needed to pay costs related to 
173.18 	issuance of bonds under subdivision 3, including interest. Any funds remaining after 
173.19 	completion of the projects and retirement or redemption of the bonds shall be placed in a 
173.20 	capital facilities and equipment replacement fund of the city. The tax imposed under 
173.21 	subdivision 1 may expire at an earlier time if the city so determines by ordinance.

173.22 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
173.23 	city of North Mankato and its chief clerical officer comply with Minnesota Statutes, section 
173.24 	645.021, subdivisions 2 and 3.

173.25 	Sec. 18. CITY OF EAST GRAND FORKS; TAXES AUTHORIZED.
 173.26 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
173.27 	section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city 
173.28 	charter, and as approved by the voters at a special election on March 7, 2016, the city of 
173.29 	East Grand Forks may impose, by ordinance, a sales and use tax of up to one percent for 
173.30 	the purposes specified in subdivision 2. Except as otherwise provided in this section, the 
173.31 	provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
173.32 	collection, and enforcement of the tax authorized under this subdivision.
174.1 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
174.2 	under subdivision 1 must be used by the city of East Grand Forks to pay the costs of 
174.3 	collecting and administering the tax and to finance the capital and administrative costs of 
174.4 	improvement to the city public swimming pool. Authorized expenses include, but are not 
174.5 	limited to, paying construction expenses related to the renovation and the development of 
174.6 	these facilities and improvements, and securing and paying debt service on bonds issued 
174.7 	under subdivision 3 or other obligations issued to finance improvement of the public 
174.8 	swimming pool in the city of East Grand Forks
174.9 		Subd. 3.Bonding authority. (a) The city of East Grand Forks may issue bonds under 
174.10 	Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities 
174.11 	authorized in subdivision 2. The aggregate principal amount of bonds issued under this 
174.12 	subdivision may not exceed $2,820,000, plus an amount to be applied to the payment of 
174.13 	the costs of issuing the bonds. The bonds may be paid from or secured by any funds available 
174.14 	to the city of East Grand Forks, including the tax authorized under subdivision 1. The 
174.15 	issuance of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 
174.16 	and 275.61.
174.17 	(b) The bonds are not included in computing any debt limitation applicable to the city 
174.18 	of East Grand Forks, and any levy of taxes under Minnesota Statutes, section 475.61, to 
174.19 	pay principal and interest on the bonds is not subject to any levy limitation. A separate 
174.20 	election to approve the bonds under Minnesota Statutes, section 475.58, is not required.
174.21 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the later 
174.22 	of: (1) five years after the tax is first imposed; or (2) when the city council determines that 
174.23 	$2,820,000 has been received from the tax to pay for the cost of the projects authorized 
174.24 	under subdivision 2, plus an amount sufficient to pay the costs related to issuance of the 
174.25 	bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining 
174.26 	after payment of all such costs and retirement or redemption of the bonds shall be placed 
174.27 	in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier 
174.28 	time if the city so determines by ordinance.

174.29 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
174.30 	city of East Grand Forks and its chief clerical officer comply with Minnesota Statutes, 
174.31 	section 645.021, subdivisions 2 and 3.

174.32 	Sec. 19. CITY OF FAIRMONT; LOCAL TAX AUTHORIZED.
 174.33 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
174.34 	section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city 
175.1 	charter, and as approved by the voters at the general election of November 8, 2016, the city 
175.2 	of Fairmont may impose, by ordinance, a sales and use tax of one-half of one percent for 
175.3 	the purposes specified in subdivision 2. Except as otherwise provided in this section, the 
175.4 	provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
175.5 	collection, and enforcement of the tax authorized under this subdivision.
175.6 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
175.7 	under subdivision 1 must be used by the city of Fairmont to pay the costs of collecting and 
175.8 	administering the tax and to finance the capital and administrative costs of constructing and 
175.9 	funding recreational amenities, trails, and a community center. The total that may be raised 
175.10 	from the tax to pay for these projects is limited to $15,000,000, plus the costs related to the 
175.11 	issuance and paying debt service on bonds for these projects.
175.12 		Subd. 3.Bonding authority. (a) The city of Fairmont may issue bonds under Minnesota 
175.13 	Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in 
175.14 	subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 
175.15 	not exceed $15,000,000, plus an amount to be applied to the payment of the costs of issuing 
175.16 	the bonds. The bonds may be paid from or secured by any funds available to the city of 
175.17 	Fairmont, including the tax authorized under subdivision 1. The issuance of bonds under 
175.18 	this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
175.19 	(b) The bonds are not included in computing any debt limitation applicable to the city 
175.20 	of Fairmont, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
175.21 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
175.22 	the bonds under Minnesota Statutes, section 475.58, is not required.
175.23 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
175.24 	earlier of: (1) 25 years after the tax is first imposed; or (2) when the city council determines 
175.25 	that $15,000,000, plus an amount sufficient to pay the costs related to issuing the bonds 
175.26 	authorized under subdivision 3, including interest on the bonds, has been received from the 
175.27 	tax to pay for the cost of the projects authorized under subdivision 2. Any funds remaining 
175.28 	after payment of all such costs and retirement or redemption of the bonds shall be placed 
175.29 	in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier 
175.30 	time if the city so determines by ordinance.

175.31 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
175.32 	city of Fairmont and its chief clerical officer comply with Minnesota Statutes, section 
175.33 	645.021, subdivisions 2 and 3.

176.1 	Sec. 20. CITY OF FERGUS FALLS; TAXES AUTHORIZED.
 176.2 		Subdivision 1.Sales and use tax authorized. Notwithstanding Minnesota Statutes, 
176.3 	section 297A.99, subdivision 1, section 477A.016, or any other law, ordinance, or city 
176.4 	charter, and as approved by the voters at the November 8, 2016, general election, the city 
176.5 	of Fergus Falls may impose, by ordinance, a sales and use tax of up to one-half of one 
176.6 	percent for the purposes specified in subdivision 2. Except as otherwise provided in this 
176.7 	section, the provisions of Minnesota Statutes, section 297A.99, govern the imposition, 
176.8 	administration, collection, and enforcement of the tax authorized under this subdivision.
176.9 		Subd. 2.Use of sales and use tax revenues. The revenues from the tax authorized under 
176.10 	subdivision 1 must be used by the city of Fergus Falls to pay the costs of collecting and 
176.11 	administering the tax and securing and paying debt service on bonds issued to finance all 
176.12 	or part of the costs of the expansion and betterment of the Fergus Falls Public Library located 
176.13 	at 205 East Hampden Avenue in the city of Fergus Falls.
176.14 		Subd. 3.Bonding authority. (a) The city of Fergus Falls may issue bonds under 
176.15 	Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the project 
176.16 	authorized in subdivision 2. The aggregate principal amount of bonds issued under this 
176.17 	subdivision may not exceed $9,800,000, plus an amount applied to the payment of costs of 
176.18 	issuing the bonds. The bonds may be paid from or secured by any funds available to the 
176.19 	city of Fergus Falls, including the tax authorized under subdivision 1. The issuance of bonds 
176.20 	under this subdivision is not subject to Minnesota Statutes, section 275.60 and 275.61.
176.21 	(b) The bonds are not included in computing any debt limitation applicable to the city, 
176.22 	and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal of and 
176.23 	interest on the bonds is not subject to any levy limitation. A separate election to approve 
176.24 	the bonds under Minnesota Statutes, section 475.58, is not required.
176.25 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
176.26 	earlier of: (1) 12 years after the tax is first imposed, or (2) when the city council determines 
176.27 	that $9,800,000 has been received from the tax to pay for the cost of the project authorized 
176.28 	under subdivision 2, plus an amount sufficient to pay the costs related to the issuance of the 
176.29 	bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining 
176.30 	after payment of all such costs and retirement or redemption of the bonds shall be placed 
176.31 	in the general fund of the city. The tax imposed under subdivision 1 may expire at any 
176.32 	earlier time if the city so determines by ordinance.

177.1 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
177.2 	city of Fergus Falls and its chief clerical officer comply with Minnesota Statutes, section 
177.3 	645.021, subdivisions 2 and 3.

177.4 	Sec. 21. CITY OF MOOSE LAKE; TAXES AUTHORIZED.
 177.5 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
177.6 	section 297A.99, subdivision 1, or 477A.016, or any other law, ordinance, or city charter, 
177.7 	as approved by the voters at the November 6, 2012, general election, the city of Moose Lake 
177.8 	may impose, by ordinance, a sales and use tax of up to one-half of one percent for the 
177.9 	purposes specified in subdivision 2. Except as otherwise provided in this section, the 
177.10 	provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
177.11 	collection, and enforcement of the tax authorized under this subdivision.
177.12 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
177.13 	under subdivision 1 must be used by the city of Moose Lake to pay the costs of collecting 
177.14 	and administering the tax and to finance the costs of: (1) improvements to the city's park 
177.15 	system; (2) street and related infrastructure improvements; and (3) municipal arena 
177.16 	improvements. Authorized costs include construction and engineering costs and associated 
177.17 	bond costs.
177.18 		Subd. 3.Bonding authority. The city of Moose Lake may issue bonds under Minnesota 
177.19 	Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in 
177.20 	subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 
177.21 	not exceed $3,000,000, plus an amount to be applied to the payment of the costs of issuing 
177.22 	the bonds. The bonds may be paid from or secured by any funds available to the city of 
177.23 	Moose Lake, including the tax authorized under subdivision 1. The issuance of bonds under 
177.24 	this subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
177.25 	The bonds are not included in computing any debt limitation applicable to the city of 
177.26 	Moose Lake, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
177.27 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
177.28 	the bonds under Minnesota Statutes, section 475.58, is not required.
177.29 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
177.30 	earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council determines 
177.31 	that $3,000,000 has been received from the tax to pay for the cost of the projects authorized 
177.32 	under subdivision 2, plus an amount sufficient to pay the costs related to issuance of the 
177.33 	bonds authorized under subdivision 3, including interest on the bonds. Any funds remaining 
177.34 	after payment of all such costs and retirement or redemption of the bonds shall be placed 
178.1 	in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier 
178.2 	time if the city so determines by ordinance.

178.3 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
178.4 	city of Moose Lake and its chief clerical officer comply with Minnesota Statutes, section 
178.5 	645.021, subdivisions 2 and 3.

178.6 	Sec. 22. CITY OF NEW LONDON; TAX AUTHORIZED.
 178.7 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
178.8 	section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city 
178.9 	charter, and as approved by the voters at the general election of November 8, 2016, the city 
178.10 	of New London may impose, by ordinance, a sales and use tax of one-half of one percent 
178.11 	for the purposes specified in subdivision 2. Except as otherwise provided in this section, 
178.12 	the provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
178.13 	collection, and enforcement of the tax authorized under this subdivision.
178.14 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
178.15 	under subdivision 1 must be used by the city of New London to pay the costs of collecting 
178.16 	and administering the tax and to finance the capital and administrative costs of the following 
178.17 	projects:
178.18 	(1) construction and equipping of a new library and community room;
178.19 	(2) construction of an ambulance bay at the fire hall; and
178.20 	(3) improvements to the New London Senior Citizen Center.
178.21 	The total that may be raised from the tax to pay for these projects is limited to $872,000 
178.22 	plus the costs related to the issuance and paying debt service on bonds for these projects.
178.23 		Subd. 3.Bonding authority. (a) The city of New London may issue bonds under 
178.24 	Minnesota Statutes, chapter 475, to finance all or a portion of the costs of the facilities 
178.25 	authorized in subdivision 2. The aggregate principal amount of bonds issued under this 
178.26 	subdivision may not exceed $872,000, plus an amount to be applied to the payment of the 
178.27 	costs of issuing the bonds. The bonds may be paid from or secured by any funds available 
178.28 	to the city of New London, including the tax authorized under subdivision 1. The issuance 
178.29 	of bonds under this subdivision is not subject to Minnesota Statutes, sections 275.60 and 
178.30 	275.61.
178.31 	(b) The bonds are not included in computing any debt limitation applicable to the city 
178.32 	of New London, and any levy of taxes under Minnesota Statutes, section 475.61, to pay 
179.1 	principal and interest on the bonds is not subject to any levy limitation. A separate election 
179.2 	to approve the bonds under Minnesota Statutes, section 475.58, is not required.
179.3 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
179.4 	earlier of: (1) 20 years after the tax is first imposed; or (2) when the city council determines 
179.5 	that $872,000, plus an amount sufficient to pay the costs related to issuing the bonds 
179.6 	authorized under subdivision 3, including interest on the bonds, has been received from the 
179.7 	tax to pay for the cost of the projects authorized under subdivision 2. Any funds remaining 
179.8 	after payment of all such costs and retirement or redemption of the bonds shall be placed 
179.9 	in the general fund of the city. The tax imposed under subdivision 1 may expire at an earlier 
179.10 	time if the city so determines by ordinance.

179.11 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
179.12 	city of New London and its chief clerical officer comply with Minnesota Statutes, section 
179.13 	645.021, subdivisions 2 and 3.

179.14 	Sec. 23. CITY OF SLEEPY EYE; LODGING TAX.
 179.15 	Notwithstanding Minnesota Statutes, section 477A.016, or any other provision of law, 
179.16 	ordinance, or city charter, the city council for the city of Sleepy Eye may impose, by 
179.17 	ordinance, a tax of up to two percent on the gross receipts subject to the lodging tax under 
179.18 	Minnesota Statutes, section 469.190. This tax is in addition to any tax imposed under 
179.19 	Minnesota Statutes, section 469.190, and the total tax imposed under that section and this 
179.20 	provision must not exceed five percent. Revenue from the tax imposed under this section 
179.21 	may only be used for the same purposes as a tax imposed under Minnesota Statutes, section 
179.22 	469.190.

179.23 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
179.24 	city of Sleepy Eye and its chief clerical officer comply with Minnesota Statutes, section 
179.25 	645.021, subdivisions 2 and 3.

179.26 	Sec. 24. CITY OF SPICER; TAX AUTHORIZED.
 179.27 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
179.28 	section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, ordinance, or city 
179.29 	charter, and as approved by the voters at the general election of November 8, 2016, the city 
179.30 	of Spicer may impose, by ordinance, a sales and use tax of one-half of one percent for the 
179.31 	purposes specified in subdivision 2. Except as otherwise provided in this section, the 
179.32 	provisions of Minnesota Statutes, section 297A.99, govern the imposition, administration, 
179.33 	collection, and enforcement of the tax authorized under this subdivision.
180.1 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
180.2 	under subdivision 1 must be used by the city of Spicer to pay the costs of collecting and 
180.3 	administering the tax and to finance the capital and administrative costs of the following 
180.4 	projects:
180.5 	(1) pedestrian public safety improvements such as a pedestrian bridge or crosswalk 
180.6 	signals at marked Trunk Highway 23;
180.7 	(2) park and trail capital improvements including signage for bicycle share the road 
180.8 	improvements and replacement of playground and related facilities; and
180.9 	(3) capital improvements to regional community facilities such as the Dethelfs roof and 
180.10 	window replacement and the Pioneerland branch library roof replacement.
180.11 		Subd. 3.Bonding authority. (a) The city of Spicer may issue bonds under Minnesota 
180.12 	Statutes, chapter 475, to finance all or a portion of the costs of the facilities authorized in 
180.13 	subdivision 2. The aggregate principal amount of bonds issued under this subdivision may 
180.14 	not exceed $800,000, plus an amount to be applied to the payment of the costs of issuing 
180.15 	the bonds. The bonds may be paid from or secured by any funds available to the city of 
180.16 	Spicer, including the tax authorized under subdivision 1. The issuance of bonds under this 
180.17 	subdivision is not subject to Minnesota Statutes, sections 275.60 and 275.61.
180.18 	(b) The bonds are not included in computing any debt limitation applicable to the city 
180.19 	of Spicer, and any levy of taxes under Minnesota Statutes, section 475.61, to pay principal 
180.20 	and interest on the bonds is not subject to any levy limitation. A separate election to approve 
180.21 	the bonds under Minnesota Statutes, section 475.58, is not required.
180.22 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
180.23 	earlier of: (1) ten years after the tax is first imposed; (2) December 31, 2027; or (3) when 
180.24 	the city council determines that $800,000, plus an amount sufficient to pay the costs related 
180.25 	to issuing the bonds authorized under subdivision 3, including interest on the bonds, has 
180.26 	been received from the tax to pay for the cost of the projects authorized under subdivision 
180.27 	2. All funds not used to pay collection and administration costs of the tax must be used for 
180.28 	projects listed in subdivision 2. The tax imposed under subdivision 1 may expire at an earlier 
180.29 	time if the city so determines by ordinance.

180.30 	EFFECTIVE DATE. This section is effective the day after compliance by the governing 
180.31 	body of the city of Spicer with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

181.1 	Sec. 25. CITY OF WALKER; LOCAL TAXES AUTHORIZED.
 181.2 		Subdivision 1.Sales and use tax authorized. Notwithstanding Minnesota Statutes, 
181.3 	section 477A.016, or any ordinance, city charter, or other provision of law, pursuant to the 
181.4 	approval of the voters at the general election on November 6, 2012, the city of Walker may 
181.5 	impose by ordinance a sales and use tax of 1-1/2 percent for the purposes specified in 
181.6 	subdivision 2. The provisions of Minnesota Statutes, section 297A.99, govern the imposition, 
181.7 	administration, collection, and enforcement of the taxes authorized under this subdivision.
181.8 		Subd. 2.Use of revenues. Revenues received from the tax authorized by subdivision 1 
181.9 	must be used to pay all or part of the capital and administrative costs of underground utility, 
181.10 	street, curb, gutter, and sidewalk improvements in the city of Walker as outlined in the 2012 
181.11 	capital improvement plan of the engineer of the city of Walker.
181.12 		Subd. 3.Bonding authority. The city of Walker, pursuant to the approval of the voters 
181.13 	at the November 6, 2012, referendum authorizing the imposition of the taxes in this section, 
181.14 	may issue bonds under Minnesota Statutes, chapter 475, to pay capital and administrative 
181.15 	expenses for the projects described in subdivision 2, in an amount that does not exceed 
181.16 	$20,000,000. A separate election to approve the bonds under Minnesota Statutes, section 
181.17 	475.58, is not required.
181.18 		Subd. 4.Termination of tax. (a) The tax authorized under subdivision 1 terminates at 
181.19 	the earlier of:
181.20 	(1) 20 years after the date of initial imposition of the tax; or
181.21 	(2) when the city council determines that sufficient funds have been raised from the tax 
181.22 	to finance the capital and administrative costs of the improvements described in subdivision 
181.23 	2, plus the additional amount needed to pay the costs related to issuance of bonds under 
181.24 	subdivision 3, including interest on the bonds.
181.25 	(b) Any funds remaining after completion of the projects specified in subdivision 2 and 
181.26 	retirement or redemption of bonds in subdivision 3 shall be placed in the general fund of 
181.27 	the city. The tax imposed under subdivision 1 may expire at an earlier time if the city so 
181.28 	determines by ordinance.

181.29 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
181.30 	city of Walker and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
181.31 	subdivisions 2 and 3.

182.1 	Sec. 26. CLAY COUNTY; TAX AUTHORIZED.
 182.2 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
182.3 	section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law or ordinance, and as 
182.4 	approved by the voters at the November 8, 2016, general election, Clay County may impose, 
182.5 	by ordinance, a sales and use tax of up to one-half of one percent for the purposes specified 
182.6 	in subdivision 2. Except as otherwise provided in this section, the provisions of Minnesota 
182.7 	Statutes, section 297A.99, govern the imposition, administration, collection, and enforcement 
182.8 	of the tax authorized under this subdivision.
182.9 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
182.10 	under subdivision 1 must be used by Clay County to pay the costs of collecting and 
182.11 	administering the tax and to finance the capital and administrative costs of constructing and 
182.12 	equipping a new correctional facility, law enforcement center, and related parking facility. 
182.13 	Authorized expenses include but are not limited to paying design, development, and 
182.14 	construction costs related to these facilities and improvements, and securing and paying 
182.15 	debt service on bonds issued under subdivision 3 or other obligations issued to finance the 
182.16 	facilities listed in this subdivision.
182.17 		Subd. 3.Bonding authority. Clay County may issue bonds under Minnesota Statutes, 
182.18 	chapter 475, to finance all or a portion of the costs of the facilities authorized in subdivision 
182.19 	2. The aggregate principal amount of bonds issued under this subdivision may not exceed 
182.20 	$52,000,000, plus an amount to be applied to the payment of the costs of issuing the bonds. 
182.21 	The bonds may be paid from or secured by any funds available to Clay County, including 
182.22 	the tax authorized under subdivision 1. The issuance of bonds under this subdivision is not 
182.23 	subject to Minnesota Statutes, sections 275.60 and 275.61.
182.24 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
182.25 	earlier of: (1) 20 years after the tax is first imposed; or (2) when the county board determines 
182.26 	that $52,000,000, plus an amount sufficient to pay the costs related to issuance of the bonds 
182.27 	authorized under subdivision 3, including interest on the bonds, has been received from the 
182.28 	tax to pay for the cost of the projects authorized under subdivision 2. Any funds remaining 
182.29 	after payment of all such costs and retirement or redemption of the bonds shall be placed 
182.30 	in the general fund of the county. The tax imposed under subdivision 1 may expire at an 
182.31 	earlier time if the county so determines by ordinance.

182.32 	EFFECTIVE DATE. This section is effective the day after the governing body of Clay 
182.33 	County and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
182.34 	subdivisions 2 and 3.

183.1 	Sec. 27. GARRISON, KATHIO, WEST MILLE LACS LAKE SANITARY 
183.2 	DISTRICT; TAXES AUTHORIZED.
 183.3 		Subdivision 1.Sales and use tax authorization. Notwithstanding Minnesota Statutes, 
183.4 	section 297A.99, subdivisions 1 and 2, or 477A.016, or any other law, and as approved by 
183.5 	the voters at the November 8, 2016, general election, the Garrison, Kathio, West Mille Lacs 
183.6 	Lake Sanitary District may impose, by majority vote of the governing body of the district, 
183.7 	a sales and use tax of up to one percent for the purposes specified in subdivision 2. Except 
183.8 	as otherwise provided in this section, the provisions of Minnesota Statutes, section 297A.99, 
183.9 	govern the imposition, administration, collection, and enforcement of the tax authorized 
183.10 	under this subdivision.
183.11 		Subd. 2.Use of sales and use tax revenues. The revenues derived from the tax authorized 
183.12 	under subdivision 1 must be used by the Garrison, Kathio, West Mille Lacs Lake Sanitary 
183.13 	District to pay the costs of collecting and administering the tax and to repay general obligation 
183.14 	revenue notes issued or other debt incurred for the construction of the wastewater collection 
183.15 	system through the Minnesota Public Facilities Authority, general obligation disposal system 
183.16 	bonds issued to finance the expense incurred in financing construction of sewer system 
183.17 	improvements, and notes payable issued for costs associated with the sewer services 
183.18 	agreement between the Garrison, Kathio, West Mille Lacs Lake Sanitary District and ML 
183.19 	Wastewater Inc., and any other costs associated with system maintenance and improvements, 
183.20 	including extension of the system to unserved customers as determined by the governing 
183.21 	body of the district.
183.22 		Subd. 3.Bonds. The Garrison, Kathio, West Mille Lacs Lake Sanitary District, pursuant 
183.23 	to the approval of the voters at the November 8, 2016, referendum authorizing the imposition 
183.24 	of the tax under this section, may issue general obligation disposal system bonds for financing 
183.25 	construction of sewer system improvements without a separate election required under 
183.26 	Minnesota Statutes, section 442.25 or 475.58. The amount of bonds that may be issued 
183.27 	without a separate election is equal to $10,000,000 minus the amount of the tax revenue 
183.28 	under this section committed to repay other notes as allowed under subdivision 2.
183.29 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires at the 
183.30 	earlier of: (1) 20 years after the tax is first imposed; or (2) when the governing body of the 
183.31 	Garrison, Kathio, West Mille Lacs Lake Sanitary District determines that $10,000,000 has 
183.32 	been received from the tax to pay for the costs authorized under subdivision 2. Any funds 
183.33 	remaining after payment of all such costs and retirement or redemption of the bonds shall 
183.34 	be placed in the general fund of the district. The tax imposed under subdivision 1 may expire 
183.35 	at an earlier time if the governing body of the district so determines.

184.1 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
184.2 	Garrison, Kathio, West Mille Lacs Lake Sanitary District and its chief clerical officer comply 
184.3 	with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

184.4 	Sec. 28. EFFECTIVE DATE; VALIDATION OF PRIOR ACT.
 184.5 	Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city of 
184.6 	Proctor may approve Laws 2008, chapter 366, article 7, section 13, and Laws 2010, chapter 
184.7 	389, article 5, sections 1 and 2, and file its approval with the secretary of state by January 
184.8 	1, 2015. If approved under this paragraph, actions undertaken by the city pursuant to the 
184.9 	approval of the voters on November 2, 2010, and otherwise in accordance with those laws 
184.10 	are validated.

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

184.12 	ARTICLE 6
184.13 	TAX INCREMENT FINANCING

184.14 	Section 1. Minnesota Statutes 2016, section 469.174, subdivision 12, is amended to read:
184.15 		Subd. 12.Economic development district. "Economic development district" means a 
184.16 	type of tax increment financing district which consists of any project, or portions of a project, 
184.17 	which the authority finds to be in the public interest because:
184.18 	(1) it will discourage commerce, industry, or manufacturing from moving their operations 
184.19 	to another state or municipality; or
184.20 	(2) it will result in increased employment in the state; or
184.21 	(3) it will result in preservation and enhancement of the tax base of the state; or
184.22 	(4) it satisfies the requirements of a workforce housing project under section 469.176, 
184.23 	subdivision 4c, paragraph (d).

184.24 	EFFECTIVE DATE. This section is effective for districts for which the request for 
184.25 	certification was made after June 30, 2017.

184.26 	Sec. 2. Minnesota Statutes 2016, section 469.175, subdivision 3, is amended to read:
184.27 		Subd. 3.Municipality approval. (a) A county auditor shall not certify the original net 
184.28 	tax capacity of a tax increment financing district until the tax increment financing plan 
184.29 	proposed for that district has been approved by the municipality in which the district is 
184.30 	located. If an authority that proposes to establish a tax increment financing district and the 
185.1 	municipality are not the same, the authority shall apply to the municipality in which the 
185.2 	district is proposed to be located and shall obtain the approval of its tax increment financing 
185.3 	plan by the municipality before the authority may use tax increment financing. The 
185.4 	municipality shall approve the tax increment financing plan only after a public hearing 
185.5 	thereon after published notice in a newspaper of general circulation in the municipality at 
185.6 	least once not less than ten days nor more than 30 days prior to the date of the hearing. The 
185.7 	published notice must include a map of the area of the district from which increments may 
185.8 	be collected and, if the project area includes additional area, a map of the project area in 
185.9 	which the increments may be expended. The hearing may be held before or after the approval 
185.10 	or creation of the project or it may be held in conjunction with a hearing to approve the 
185.11 	project.
185.12 	(b) Before or at the time of approval of the tax increment financing plan, the municipality 
185.13 	shall make the following findings, and shall set forth in writing the reasons and supporting 
185.14 	facts for each determination:
185.15 	(1) that the proposed tax increment financing district is a redevelopment district, a 
185.16 	renewal or renovation district, a housing district, a soils condition district, or an economic 
185.17 	development district; if the proposed district is a redevelopment district or a renewal or 
185.18 	renovation district, the reasons and supporting facts for the determination that the district 
185.19 	meets the criteria of section 469.174, subdivision 10, paragraph (a), clauses (1) and (2), or 
185.20 	subdivision 10a, must be documented in writing and retained and made available to the 
185.21 	public by the authority until the district has been terminated;
185.22 	(2) that, in the opinion of the municipality:
185.23 	(i) the proposed development or redevelopment would not reasonably be expected to 
185.24 	occur solely through private investment within the reasonably foreseeable future; and
185.25 	(ii) the increased market value of the site that could reasonably be expected to occur 
185.26 	without the use of tax increment financing would be less than the increase in the market 
185.27 	value estimated to result from the proposed development after subtracting the present value 
185.28 	of the projected tax increments for the maximum duration of the district permitted by the 
185.29 	plan. The requirements of this item do not apply if the district is a housing district;
185.30 	(3) that the tax increment financing plan conforms to the general plan for the development 
185.31 	or redevelopment of the municipality as a whole;
185.32 	(4) that the tax increment financing plan will afford maximum opportunity, consistent 
185.33 	with the sound needs of the municipality as a whole, for the development or redevelopment 
185.34 	of the project by private enterprise;
186.1 	(5) that the municipality elects the method of tax increment computation set forth in 
186.2 	section 469.177, subdivision 3, paragraph (b), if applicable.
186.3 	(c) When the municipality and the authority are not the same, the municipality shall 
186.4 	approve or disapprove the tax increment financing plan within 60 days of submission by 
186.5 	the authority. When the municipality and the authority are not the same, the municipality 
186.6 	may not amend or modify a tax increment financing plan except as proposed by the authority 
186.7 	pursuant to subdivision 4. Once approved, the determination of the authority to undertake 
186.8 	the project through the use of tax increment financing and the resolution of the governing 
186.9 	body shall be conclusive of the findings therein and of the public need for the financing.
186.10 	(d) For a district that is subject to the requirements of paragraph (b), clause (2), item 
186.11 	(ii), the municipality's statement of reasons and supporting facts must include all of the 
186.12 	following:
186.13 	(1) an estimate of the amount by which the market value of the site will increase without 
186.14 	the use of tax increment financing;
186.15 	(2) an estimate of the increase in the market value that will result from the development 
186.16 	or redevelopment to be assisted with tax increment financing; and
186.17 	(3) the present value of the projected tax increments for the maximum duration of the 
186.18 	district permitted by the tax increment financing plan.
186.19 	(e) For purposes of this subdivision, "site" means the parcels on which the development 
186.20 	or redevelopment to be assisted with tax increment financing will be located.
186.21 	(f) Before or at the time of approval of the tax increment financing plan for a district to 
186.22 	be used to fund a workforce housing project under section 469.176, subdivision 4c, paragraph 
186.23 	(d), the municipality shall make the following findings and set forth in writing the reasons 
186.24 	and supporting facts for each determination:
186.25 	(1) the city is located outside of the metropolitan area, as defined in section 473.121, 
186.26 	subdivision 2;
186.27 	(2) the average vacancy rate for rental housing located in the municipality and in any 
186.28 	statutory or home rule charter city located within 15 miles or less of the boundaries of the 
186.29 	municipality has been three percent or less for at least the immediately preceding two-year 
186.30 	period;
186.31 	(3) at least one business located in the municipality or within 15 miles of the municipality 
186.32 	that employs a minimum of 20 full-time equivalent employees in aggregate has provided a 
187.1 	written statement to the municipality indicating that the lack of available rental housing has 
187.2 	impeded the ability of the business to recruit and hire employees; and
187.3 	(4) the municipality and the development authority intend to use increments from the 
187.4 	district for the development of rental housing to serve employees of businesses located in 
187.5 	the municipality or surrounding area.
187.6 	(g) The county auditor may not certify the original tax capacity of an economic 
187.7 	development tax increment financing district for a workforce housing project if the request 
187.8 	for certification is made after June 30, 2027.

187.9 	EFFECTIVE DATE. This section is effective for districts for which the request for 
187.10 	certification was made after June 30, 2017.

187.11 	Sec. 3. Minnesota Statutes 2016, section 469.176, subdivision 4c, is amended to read:
187.12 		Subd. 4c.Economic development districts. (a) Revenue derived from tax increment 
187.13 	from an economic development district may not be used to provide improvements, loans, 
187.14 	subsidies, grants, interest rate subsidies, or assistance in any form to developments consisting 
187.15 	of buildings and ancillary facilities, if more than 15 percent of the buildings and facilities 
187.16 	(determined on the basis of square footage) are used for a purpose other than:
187.17 	(1) the manufacturing or production of tangible personal property, including processing 
187.18 	resulting in the change in condition of the property;
187.19 	(2) warehousing, storage, and distribution of tangible personal property, excluding retail 
187.20 	sales;
187.21 	(3) research and development related to the activities listed in clause (1) or (2);
187.22 	(4) telemarketing if that activity is the exclusive use of the property;
187.23 	(5) tourism facilities; or
187.24 	(6) space necessary for and related to the activities listed in clauses (1) to (5); or
187.25 	(7) a workforce housing project that satisfies the requirements of paragraph (d).
187.26 	(b) Notwithstanding the provisions of this subdivision, revenues derived from tax 
187.27 	increment from an economic development district may be used to provide improvements, 
187.28 	loans, subsidies, grants, interest rate subsidies, or assistance in any form for up to 15,000 
187.29 	square feet of any separately owned commercial facility located within the municipal 
187.30 	jurisdiction of a small city, if the revenues derived from increments are spent only to assist 
187.31 	the facility directly or for administrative expenses, the assistance is necessary to develop 
188.1 	the facility, and all of the increments, except those for administrative expenses, are spent 
188.2 	only for activities within the district.
188.3 	(c) A city is a small city for purposes of this subdivision if the city was a small city in 
188.4 	the year in which the request for certification was made and applies for the rest of the 
188.5 	duration of the district, regardless of whether the city qualifies or ceases to qualify as a 
188.6 	small city.
188.7 	(d) A project qualifies as a workforce housing project under this subdivision if:
188.8 	(1) increments from the district are used exclusively to assist in the acquisition of 
188.9 	property; construction of improvements; and provision of loans or subsidies, grants, interest 
188.10 	rate subsidies, public infrastructure, and related financing costs for rental housing 
188.11 	developments in the municipality;
188.12 	(2) the governing body of the municipality made the findings for the project required 
188.13 	by section 469.175, subdivision 3, paragraph (f); and
188.14 	(3) the governing bodies of the county and the school district, following receipt, review, 
188.15 	and discussion of the materials required by section 469.175, subdivision 2, for the tax 
188.16 	increment financing district, have each approved the tax increment financing plan, by 
188.17 	resolution.

188.18 	EFFECTIVE DATE. This section is effective for districts for which the request for 
188.19 	certification was made after June 30, 2017.

188.20 	Sec. 4. Minnesota Statutes 2016, section 469.1761, is amended by adding a subdivision 
188.21 	to read:
188.22 		Subd. 5.Income limits; Minnesota Housing Finance Agency challenge program.
 188.23 	For a project receiving a loan or grant from the Minnesota Housing Finance Agency challenge 
188.24 	program under section 462A.33, the income limits under section 462A.33 are substituted 
188.25 	for the applicable income limits for the project under subdivision 2 or 3.

188.26 	EFFECTIVE DATE. This section is effective for districts for which the request for 
188.27 	certification was made after June 30, 2017.

188.28 	Sec. 5. Minnesota Statutes 2016, section 469.1763, subdivision 1, is amended to read:
188.29 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
188.30 	the meanings given.
189.1 	(b) "Activities" means acquisition of property, clearing of land, site preparation, soils 
189.2 	correction, removal of hazardous waste or pollution, installation of utilities, construction 
189.3 	of public or private improvements, and other similar activities, but only to the extent that 
189.4 	tax increment revenues may be spent for such purposes under other law.
189.5 	(c) "Third party" means an entity other than (1) the person receiving the benefit of 
189.6 	assistance financed with tax increments, or (2) the municipality or the development authority 
189.7 	or other person substantially under the control of the municipality.
189.8 	(d) "Revenues derived from tax increments paid by properties in the district" means only 
189.9 	tax increment as defined in section 469.174, subdivision 25, clause (1), and does not include 
189.10 	tax increment as defined in section 469.174, subdivision 25, clauses (2), (3), and (4) to (5).

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

189.12 	Sec. 6. Minnesota Statutes 2016, section 469.1763, subdivision 2, is amended to read:
189.13 		Subd. 2.Expenditures outside district. (a) For each tax increment financing district, 
189.14 	an amount equal to at least 75 percent of the total revenue derived from tax increments paid 
189.15 	by properties in the district must be expended on activities in the district or to pay bonds, 
189.16 	to the extent that the proceeds of the bonds were used to finance activities in the district or 
189.17 	to pay, or secure payment of, debt service on credit enhanced bonds. For districts, other 
189.18 	than redevelopment districts for which the request for certification was made after June 30, 
189.19 	1995, the in-district percentage for purposes of the preceding sentence is 80 percent. Not 
189.20 	more than 25 percent of the total revenue derived from tax increments paid by properties 
189.21 	in the district may be expended, through a development fund or otherwise, on activities 
189.22 	outside of the district but within the defined geographic area of the project except to pay, 
189.23 	or secure payment of, debt service on credit enhanced bonds. For districts, other than 
189.24 	redevelopment districts for which the request for certification was made after June 30, 1995, 
189.25 	the pooling percentage for purposes of the preceding sentence is 20 percent. The revenue
189.26 	revenues derived from tax increments for paid by properties in the district that are expended 
189.27 	on costs under section 469.176, subdivision 4h, paragraph (b), may be deducted first before 
189.28 	calculating the percentages that must be expended within and without the district.
189.29 	(b) In the case of a housing district, a housing project, as defined in section 469.174, 
189.30 	subdivision 11, is an activity in the district.
189.31 	(c) All administrative expenses are for activities outside of the district, except that if the 
189.32 	only expenses for activities outside of the district under this subdivision are for the purposes 
190.1 	described in paragraph (d), administrative expenses will be considered as expenditures for 
190.2 	activities in the district.
190.3 	(d) The authority may elect, in the tax increment financing plan for the district, to increase 
190.4 	by up to ten percentage points the permitted amount of expenditures for activities located 
190.5 	outside the geographic area of the district under paragraph (a). As permitted by section 
190.6 	469.176, subdivision 4k, the expenditures, including the permitted expenditures under 
190.7 	paragraph (a), need not be made within the geographic area of the project. Expenditures 
190.8 	that meet the requirements of this paragraph are legally permitted expenditures of the district, 
190.9 	notwithstanding section 469.176, subdivisions 4b, 4c, and 4j. To qualify for the increase 
190.10 	under this paragraph, the expenditures must:
190.11 	(1) be used exclusively to assist housing that meets the requirement for a qualified 
190.12 	low-income building, as that term is used in section 42 of the Internal Revenue Code; and
190.13 	(2) not exceed the qualified basis of the housing, as defined under section 42(c) of the 
190.14 	Internal Revenue Code, less the amount of any credit allowed under section 42 of the Internal 
190.15 	Revenue Code; and
190.16 	(3) be used to:
190.17 	(i) acquire and prepare the site of the housing;
190.18 	(ii) acquire, construct, or rehabilitate the housing; or
190.19 	(iii) make public improvements directly related to the housing; or
190.20 	(4) be used to develop housing:
190.21 	(i) if the market value of the housing does not exceed the lesser of:
190.22 	(A) 150 percent of the average market value of single-family homes in that municipality; 
190.23 	or
190.24 	(B) $200,000 for municipalities located in the metropolitan area, as defined in section 
190.25 	473.121, or $125,000 for all other municipalities; and
190.26 	(ii) if the expenditures are used to pay the cost of site acquisition, relocation, demolition 
190.27 	of existing structures, site preparation, and pollution abatement on one or more parcels, if 
190.28 	the parcel contains a residence containing one to four family dwelling units that has been 
190.29 	vacant for six or more months and is in foreclosure as defined in section 325N.10, subdivision 
190.30 	7, but without regard to whether the residence is the owner's principal residence, and only 
190.31 	after the redemption period has expired.
191.1 	(e) The authority under paragraph (d), clause (4), expires on December 31, 2016. 
191.2 	Increments may continue to be expended under this authority after that date, if they are used 
191.3 	to pay bonds or binding contracts that would qualify under subdivision 3, paragraph (a), if 
191.4 	December 31, 2016, is considered to be the last date of the five-year period after certification 
191.5 	under that provision.

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

191.7 	Sec. 7. Minnesota Statutes 2016, section 469.1763, subdivision 3, is amended to read:
191.8 		Subd. 3.Five-year rule. (a) Revenues derived from tax increments paid by properties 
191.9 	in the district are considered to have been expended on an activity within the district under 
191.10 	subdivision 2 only if one of the following occurs:
191.11 	(1) before or within five years after certification of the district, the revenues are actually 
191.12 	paid to a third party with respect to the activity;
191.13 	(2) bonds, the proceeds of which must be used to finance the activity, are issued and 
191.14 	sold to a third party before or within five years after certification, the revenues are spent to 
191.15 	repay the bonds, and the proceeds of the bonds either are, on the date of issuance, reasonably 
191.16 	expected to be spent before the end of the later of (i) the five-year period, or (ii) a reasonable 
191.17 	temporary period within the meaning of the use of that term under section 148(c)(1) of the 
191.18 	Internal Revenue Code, or are deposited in a reasonably required reserve or replacement 
191.19 	fund;
191.20 	(3) binding contracts with a third party are entered into for performance of the activity 
191.21 	before or within five years after certification of the district and the revenues are spent under 
191.22 	the contractual obligation;
191.23 	(4) costs with respect to the activity are paid before or within five years after certification 
191.24 	of the district and the revenues are spent to reimburse a party for payment of the costs, 
191.25 	including interest on unreimbursed costs; or
191.26 	(5) expenditures are made for housing purposes as permitted by subdivision 2, paragraphs 
191.27 	(b) and (d), or for public infrastructure purposes within a zone as permitted by subdivision 
191.28 	2, paragraph (e).
191.29 	(b) For purposes of this subdivision, bonds include subsequent refunding bonds if the 
191.30 	original refunded bonds meet the requirements of paragraph (a), clause (2).
191.31 	(c) For a redevelopment district or a renewal and renovation district certified after June 
191.32 	30, 2003, and before April 20, 2009, the five-year periods described in paragraph (a) are 
192.1 	extended to ten years after certification of the district. For a redevelopment district certified 
192.2 	after April 20, 2009, and before June 30, 2012, the five-year periods described in paragraph 
192.3 	(a) are extended to eight years after certification of the district. This extension is provided 
192.4 	primarily to accommodate delays in development activities due to unanticipated economic 
192.5 	circumstances.

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

192.7 	Sec. 8. Minnesota Statutes 2016, section 469.178, subdivision 7, is amended to read:
192.8 		Subd. 7.Interfund loans. (a) The authority or municipality may advance or loan money 
192.9 	to finance expenditures under section 469.176, subdivision 4, from its general fund or any 
192.10 	other fund under which it has legal authority to do so.
192.11 	(b) Not later than 60 days after money is transferred, advanced, or spent, whichever is 
192.12 	earliest, the loan or advance must be authorized, by resolution of the governing body or of 
192.13 	the authority, whichever has jurisdiction over the fund from which the advance or loan is 
192.14 	authorized, before money is transferred, advanced, or spent, whichever is earliest.
192.15 	(c) The resolution may generally grant to the municipality or the authority the power to 
192.16 	make interfund loans under one or more tax increment financing plans or for one or more 
192.17 	districts. The resolution may be adopted before or after the adoption of the tax increment 
192.18 	financing plan or the creation of the tax increment financing district from which the advance 
192.19 	or loan is to be repaid.
192.20 	(d) The terms and conditions for repayment of the loan must be provided in writing and. 
192.21 	The written terms and conditions may be in any form, but must include, at a minimum, the 
192.22 	principal amount, the interest rate, and maximum term. Written terms may be modified or 
192.23 	amended in writing by the municipality or the authority before the latest decertification of 
192.24 	any tax increment financing district from which the interfund loan is to be repaid. The 
192.25 	maximum rate of interest permitted to be charged is limited to the greater of the rates 
192.26 	specified under section 270C.40 or 549.09 as of the date the loan or advance is authorized, 
192.27 	unless the written agreement states that the maximum interest rate will fluctuate as the 
192.28 	interest rates specified under section 270C.40 or 549.09 are from time to time adjusted.
192.29 	Loans or advances may be structured as draw-down or line-of-credit obligations of the 
192.30 	lending fund.
192.31 	(e) The authority shall report in the annual report submitted under section 469.175, 
192.32 	subdivision 6:
192.33 	(1) the amount of any interfund loan or advance made in a calendar year; and
193.1 	(2) any amendment of an interfund loan or advance made in a calendar year.

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

193.4 	Sec. 9. Laws 2008, chapter 154, article 9, section 21, subdivision 2, is amended to read:
193.5 		Subd. 2.Special rules. (a) If the city elects, upon the adoption of the tax increment 
193.6 	financing plan for a district, the rules under this section apply to a redevelopment district, 
193.7 	renewal and renovation district, economic development district, soil condition district, or 
193.8 	a soil deficiency district established by the city or a development authority of the city in the 
193.9 	project area.
193.10 	(b) Prior to or upon the adoption of the first tax increment plan subject to the special 
193.11 	rules under this subdivision, the city must find by resolution that parcels consisting of at 
193.12 	least 80 percent of the acreage of the project area (excluding street and railroad right of 
193.13 	way) are characterized by one or more of the following conditions:
193.14 	(1) peat or other soils with geotechnical deficiencies that impair development of 
193.15 	residential or commercial buildings or infrastructure;
193.16 	(2) soils or terrain that requires substantial filling in order to permit the development of 
193.17 	commercial or residential buildings or infrastructure;
193.18 	(3) landfills, dumps, or similar deposits of municipal or private waste;
193.19 	(4) quarries or similar resource extraction sites;
193.20 	(5) floodway; and
193.21 	(6) substandard buildings within the meaning of Minnesota Statutes, section 469.174, 
193.22 	subdivision 10.
193.23 	(c) For the purposes of paragraph (b), clauses (1) through (5), a parcel is deemed to be 
193.24 	characterized by the relevant condition if at least 70 percent of the area of the parcel contains 
193.25 	the relevant condition. For the purposes of paragraph (b), clause (6), a parcel is deemed to 
193.26 	be characterized by substandard buildings if the buildings occupy at least 30 percent of the 
193.27 	area of the parcel.
193.28 	(d) The four-year rule under Minnesota Statutes, section 469.176, subdivision 6, is 
193.29 	extended to nine years for any district. The five-year rule under Minnesota Statutes, section 
193.30 	469.1763, subdivision 3, is extended to ten years for any district, and section 469.1763, 
193.31 	subdivision 4, does not apply to any district.
194.1 	(e) Notwithstanding anything to the contrary in section 469.1763, subdivision 2, paragraph 
194.2 	(a), not more than 80 percent of the total revenue derived from tax increments paid by 
194.3 	properties in any district (measured over the life of the district) may be expended on activities 
194.4 	outside the district but within the project area.
194.5 	(f) For a soil deficiency district:
194.6 	(1) increments may be collected through 20 years after the receipt by the authority of 
194.7 	the first increment from the district; and
194.8 	(2) except as otherwise provided in this subdivision, increments may be used only to:
194.9 	(i) acquire parcels on which the improvements described in item (ii) will occur;
194.10 	(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional 
194.11 	cost of installing public improvements directly caused by the deficiencies; and
194.12 	(iii) pay for the administrative expenses of the authority allocable to the district.
194.13 	(g) Increments spent for any infrastructure costs, whether inside a district or outside a 
194.14 	district but within the project area, are deemed to satisfy the requirements of paragraph (f) 
194.15 	and Minnesota Statutes, section 469.176, subdivisions 4b, 4c, and 4j.
194.16 	(h) Increments from any district may not be used to pay the costs of landfill closure or 
194.17 	public infrastructure located on the following parcels within the plat known as Burnsville 
194.18 	Amphitheater: Lot 1, Block 1; Lots 1 and 2, Block 2; and Outlots A, B, C and D.
194.19 	(i) The authority to approve tax increment financing plans to establish tax increment 
194.20 	financing districts under this section expires on December 31, 2018 2020.

194.21 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
194.22 	city of Burnsville and its chief clerical officer comply with Minnesota Statutes, section 
194.23 	645.021, subdivisions 2 and 3.

194.24 	Sec. 10. Laws 2009, chapter 88, article 5, section 17, as amended by Laws 2010, chapter 
194.25 	382, section 84, is amended to read:
194.26 	Sec. 17. SEAWAY PORT AUTHORITY OF DULUTH; TAX INCREMENT 
194.27 	FINANCING DISTRICT; SPECIAL RULES.
 194.28 	(a) If the Seaway Port Authority of Duluth adopts a tax increment financing plan and 
194.29 	the governing body of the city of Duluth approves the plan for the tax increment financing 
194.30 	district consisting of one or more parcels identified as: 010-2730-00010; 010-2730-00020; 
194.31 	010-2730-00040; 010-2730-00050; 010-2730-00070; 010-2730-00080; 010-2730-00090; 
195.1 	010-2730-00100; 010-02730-00120; 010-02730-00130; 010-02730-00140; 010-2730-00160; 
195.2 	010-2730-00180; 010-2730-00200; 010-2730-00300; 010-02730-00320;  010-2746-01250; 
195.3 	010-2746-1330; 010-2746-01340; 010-2746-01350; 010-2746-1440; 010-2746-1380; 
195.4 	010-2746-01490; 010-2746-01500; 010-2746-01510; 010-2746-01520; 010-2746-01530; 
195.5 	010-2746-01540; 010-2746-01550; 010-2746-01560; 010-2746-01570; 010-2746-01580; 
195.6 	010-2746-01590; 010-3300-4560; 010-3300-4565; 010-3300-04570; 010-3300-04580; 
195.7 	010-3300-04640; 010-3300-04645; and 010-3300-04650, the five-year rule under Minnesota 
195.8 	Statutes, section 469.1763, subdivision 3, that activities must be undertaken within a five-year 
195.9 	period from the date of certification of the tax increment financing district, must be 
195.10 	considered to be met if the activities are undertaken within five years after the date all 
195.11 	qualifying parcels are delisted from the Federal Superfund list.
195.12 	(b) The requirements of Minnesota Statutes, section 469.1763, subdivision 4, beginning 
195.13 	in the sixth year following certification of the district requirement, will begin in the sixth 
195.14 	year following the date all qualifying parcels are delisted from the Federal Superfund list.
195.15 	(c) The action required under Minnesota Statutes, section 469.176, subdivision 6, are 
195.16 	satisfied if the action is commenced within four years after the date all qualifying parcels 
195.17 	are delisted from the Federal Superfund list and evidence of the action required is submitted 
195.18 	to the county auditor by February 1 of the fifth year following the year in which all qualifying 
195.19 	parcels are delisted from the Federal Superfund list.
195.20 	(d) For purposes of this section, "qualifying parcels" means United States Steel parcels 
195.21 	listed in paragraph (a) and shown by the Minnesota Pollution Control Agency as part of the 
195.22 	USS St. Louis River-U.S. Steel Superfund Site (USEPA OU 02) that are included in the 
195.23 	tax increment financing district.
195.24 	(e) In addition to the reporting requirements of Minnesota Statutes, section 469.175, 
195.25 	subdivision 5, the Seaway Port Authority of Duluth shall report the status of all parcels 
195.26 	listed in paragraph (a) and shown as part of the USS St. Louis River-U.S. Steel Superfund
195.27 	Site (USEPA OU 02). The status report must show the parcel numbers, the listed or delisted 
195.28 	status, and if delisted, the delisting date.
195.29 	(f) Notwithstanding Minnesota Statutes, section 469.178, subdivision 7, or any other 
195.30 	law to the contrary, the Seaway Port Authority of Duluth may establish an interfund loan 
195.31 	program before approval of the tax increment financing plan for or the establishment of the 
195.32 	district authorized by this section. The authority may make loans under this program. The 
195.33 	proceeds of the loans may be used for any permitted use of increments under this law or 
195.34 	Minnesota Statutes, section  469.176, for the district and may be repaid with increments 
196.1 	from the district established under this section. This paragraph applies to any action 
196.2 	authorized by the Seaway Port Authority of Duluth on or after March 25, 2010.

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

196.6 	Sec. 11. Laws 2014, chapter 308, article 6, section 8, subdivision 1, is amended to read:
196.7 		Subdivision 1.Authority to create districts. (a) The governing body of the city of 
196.8 	Edina or its development authority may establish one or more tax increment financing 
196.9 	housing districts in the Southeast Edina Redevelopment Project Area, as the boundaries 
196.10 	exist on March 31, 2014.
196.11 	(b) The authority to request certification of districts under this section expires on June 
196.12 	30, 2017 December 31, 2019.

196.13 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
196.14 	city of Edina and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
196.15 	subdivisions 2 and 3.

196.16 	Sec. 12. Laws 2014, chapter 308, article 6, section 9, is amended to read:
196.17 	Sec. 9. CITY OF MAPLE GROVE; TAX INCREMENT FINANCING DISTRICT.
 196.18 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
196.19 	the meanings given them.
196.20 	(b) "City" means the city of Maple Grove.
196.21 	(c) "Project area" means all or a portion of the area in the city commencing at a point 
196.22 	130 feet East and 120 feet North of the southwest corner of the Southeast Quarter of Section 
196.23 	23, Township 119, Range 22, Hennepin County, said point being on the easterly right-of-way 
196.24 	line of Hemlock Lane; thence northerly along said easterly right-of-way line of Hemlock 
196.25 	Lane to a point on the west line of the east one-half of the Southeast Quarter of section 23, 
196.26 	thence south along said west line a distance of 1,200 feet; thence easterly to the east line of 
196.27 	Section 23, 1,030 feet North from the southeast corner thereof; thence South 74 degrees 
196.28 	East 1,285 feet; thence East a distance of 1,000 feet; thence North 59 degrees West a distance 
196.29 	of 650 feet; thence northerly to a point on the northerly right-of-way line of 81st Avenue 
196.30 	North, 650 feet westerly measured at right angles, from the east line of the Northwest Quarter 
196.31 	of Section 24; thence North 13 degrees West a distance of 795 feet; thence West to the west 
196.32 	line of the Southeast Quarter of the Northwest Quarter of Section 24; thence North 55 
197.1 	degrees West to the south line of the Northwest Quarter of the Northwest Quarter of Section 
197.2 	24; thence West along said south line to the east right-of-way line of Zachary Lane; thence 
197.3 	North along the east right-of-way line of Zachary Lane to the southwest corner of Lot 1, 
197.4 	Block 1, Metropolitan Industrial Park 5th Addition; thence East along the south line of said 
197.5 	Lot 1 to the northeast corner of Outlot A, Metropolitan Industrial Park 5th Addition; thence 
197.6 	South along the east line of said Outlot A and its southerly extension to the south right-of-way 
197.7 	line of County State-Aid Highway (CSAH) 109; thence easterly along the south right-of-way 
197.8 	line of CSAH 109 to the east line of the Northwest Quarter of the Northeast Quarter of 
197.9 	Section 24; thence South along said east line to the north line of the South Half of the 
197.10 	Northeast Quarter of Section 24; thence East along said north line to the westerly right-of-way 
197.11 	line of Jefferson Highway North; thence southerly along the westerly right-of-way line of 
197.12 	Jefferson Highway to the centerline of CSAH 130; thence continuing South along the west 
197.13 	right-of-way line of Pilgrim Lane North to the westerly extension of the north line of Outlot 
197.14 	A, Park North Fourth Addition; thence easterly along the north line of Outlot A, Park North 
197.15 	Fourth Addition to the northeast corner of said Outlot A; thence southerly along the east 
197.16 	line of said Outlot A to the southeast corner of said Outlot A; thence easterly along the south 
197.17 	line of Lot 1, Block 1, Park North Fourth Addition to the westerly right-of-way line of State 
197.18 	Highway 169; thence southerly, southwesterly, westerly, and northwesterly along the 
197.19 	westerly right-of-way line of State Highway 169 and the northerly right-of-way line of 
197.20 	Interstate 694 to its intersection with the southerly extension of the easterly right-of-way 
197.21 	line of Zachary Lane North; thence northerly along the easterly right-of-way line of Zachary 
197.22 	Lane North and its northerly extension to the north right-of-way line of CSAH 130; thence 
197.23 	westerly, southerly, northerly, southwesterly, and northwesterly to the point of beginning 
197.24 	and there terminating, provided that the project area includes the rights-of-way for all present 
197.25 	and future highway interchanges abutting the area described in this paragraph, and may 
197.26 	include any additional property necessary to cause the property included in the tax increment 
197.27 	financing district to consist of complete parcels.
197.28 	(d) "Soil deficiency district" means a type of tax increment financing district consisting 
197.29 	of a portion of the project area in which the city finds by resolution that the following 
197.30 	conditions exist:
197.31 	(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in 
197.32 	the district require substantial filling, grading, or other physical preparation for use; and
197.33 	(2) the estimated cost of the physical preparation under clause (1), but excluding costs 
197.34 	directly related to roads as defined in Minnesota Statutes, section 160.01, and local 
197.35 	improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, clauses 
198.1 	(1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land before 
198.2 	completion of the preparation.
198.3 		Subd. 2.Special rules. (a) If the city elects, upon the adoption of the tax increment 
198.4 	financing plan for a district, the rules under this section apply to a redevelopment district, 
198.5 	renewal and renovation district, soil condition district, or soil deficiency district established 
198.6 	by the city or a development authority of the city in the project area.
198.7 	(b) Prior to or upon the adoption of the first tax increment plan subject to the special 
198.8 	rules under this subdivision, the city must find by resolution that parcels consisting of at 
198.9 	least 80 percent of the acreage of the project area, excluding street and railroad rights-of-way, 
198.10 	are characterized by one or more of the following conditions:
198.11 	(1) peat or other soils with geotechnical deficiencies that impair development of 
198.12 	commercial buildings or infrastructure;
198.13 	(2) soils or terrain that require substantial filling in order to permit the development of 
198.14 	commercial buildings or infrastructure;
198.15 	(3) landfills, dumps, or similar deposits of municipal or private waste;
198.16 	(4) quarries or similar resource extraction sites;
198.17 	(5) floodway; and
198.18 	(6) substandard buildings, within the meaning of Minnesota Statutes, section 469.174, 
198.19 	subdivision 10.
198.20 	(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by the 
198.21 	relevant condition if at least 70 percent of the area of the parcel contains the relevant 
198.22 	condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by 
198.23 	substandard buildings if substandard buildings occupy at least 30 percent of the area of the 
198.24 	parcel.
198.25 	(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, is 
198.26 	extended to eight years for any district, and Minnesota Statutes, section 469.1763, subdivision 
198.27 	4, does not apply to any district.
198.28 	(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section 469.1763, 
198.29 	subdivision 2, paragraph (a), not more than 40 percent of the total revenue derived from tax 
198.30 	increments paid by properties in any district, measured over the life of the district, may be 
198.31 	expended on activities outside the district but within the project area.
198.32 	(f) For a soil deficiency district:
199.1 	(1) increments may be collected through 20 years after the receipt by the authority of 
199.2 	the first increment from the district;
199.3 	(2) increments may be used only to:
199.4 	(i) acquire parcels on which the improvements described in item (ii) will occur;
199.5 	(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the additional 
199.6 	cost of installing public improvements directly caused by the deficiencies; and
199.7 	(iii) pay for the administrative expenses of the authority allocable to the district; and
199.8 	(3) any parcel acquired with increments from the district must be sold at no less than 
199.9 	their fair market value.
199.10 	(g) Increments spent for any infrastructure costs, whether inside a district or outside a 
199.11 	district but within the project area, are deemed to satisfy the requirements of Minnesota 
199.12 	Statutes, section 469.176, subdivision 4j.
199.13 	(h) The authority to approve tax increment financing plans to establish tax increment 
199.14 	financing districts under this section expires June 30, 2020.
199.15 	(i) Notwithstanding the restrictions in paragraph (f), clause (2), the city may use 
199.16 	increments from a soil deficiency district to acquire parcels and for other infrastructure costs 
199.17 	either inside or outside of the district, but within the project area, if the acquisition or 
199.18 	infrastructure is for a qualified development. For purposes of this paragraph, a development 
199.19 	is a qualified development only if all of the following requirements are satisfied:
199.20 	(1) the city finds, by resolution, that the land acquisition and infrastructure are undertaken 
199.21 	primarily to serve the development;
199.22 	(2) the city has a binding, written commitment and adequate financial assurances from 
199.23 	the developer that the development will be constructed; and
199.24 	(3) the development does not consist of retail trade or housing improvements.

199.25 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
199.26 	city of Maple Grove and its chief clerical officer comply with Minnesota Statutes, section 
199.27 	645.021, subdivisions 2 and 3.

199.28 	Sec. 13. CITY OF ANOKA; GREENS OF ANOKA TIF DISTRICT.
 199.29 	For purposes of Minnesota Statutes, section 469.1763, subdivision 3, paragraph (c), the 
199.30 	city of Anoka's Greens of Anoka redevelopment tax increment financing district is deemed 
199.31 	to be certified on June 29, 2012, rather than its actual certification date of July 2, 2012, and 
200.1 	the provisions of Minnesota Statutes, section 469.1763, subdivisions 3 and 4, apply as if 
200.2 	the district were certified on that date.

200.3 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
200.4 	city of Anoka and its chief clerical officer comply with Minnesota Statutes, section 645.021, 
200.5 	subdivisions 2 and 3.

200.6 	Sec. 14. CITY OF COON RAPIDS; TIF DISTRICT 6-1; PORT RIVERWALK.
 200.7 	Notwithstanding the provisions of Minnesota Statutes, section 469.176, subdivision 1b, 
200.8 	or any other law to the contrary, the city of Coon Rapids may collect tax increment from 
200.9 	District 6-1 Port Riverwalk through December 31, 2038.

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

200.14 	Sec. 15. CITY OF COTTAGE GROVE; TIF DISTRICT 1-12; GATEWAY NORTH.
 200.15 	The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that activities 
200.16 	must be undertaken within a five-year period from the date of certification of a tax increment 
200.17 	financing district, is considered to be met for Tax Increment Financing District No. 1-12 
200.18 	(Gateway North), administered by the Cottage Grove Economic Development Authority, 
200.19 	if the activities are undertaken prior to January 1, 2017.

200.20 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
200.21 	city of Cottage Grove and its chief clerical officer comply with Minnesota Statutes, section 
200.22 	645.021, subdivisions 2 and 3.

200.23 	Sec. 16. CITY OF EDINA; APPROVAL OF 2014 SPECIAL LAW.
 200.24 	Notwithstanding the provisions of Minnesota Statutes, section 645.021, subdivision 3, 
200.25 	the chief clerical officer of the city of Edina may file with the secretary of state certificate 
200.26 	of approval of Laws 2014, chapter 308, article 6, section 8, by December 31, 2016, and, if 
200.27 	the certificate is so filed and the requirements of Minnesota Statutes, section 645.021, 
200.28 	subdivision 3, are otherwise complied with, the special law is deemed approved, and all 
200.29 	actions taken by the city before the effective date of this section in reliance on Laws 2014, 
200.30 	chapter 308, article 6, section 8, are deemed consistent with Laws 2014, chapter 308, article 
200.31 	6, section 8, and this act.

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

201.2 	Sec. 17. CITY OF MOORHEAD; TIF DISTRICT; FIRST AVENUE NORTH.
 201.3 	For purposes of Minnesota Statutes, section 469.1763, subdivision 3, paragraph (c), the 
201.4 	city of Moorhead's 1st Avenue North (Central Corridors) Redevelopment Tax Increment 
201.5 	Financing District is deemed to be certified on June 29, 2012, rather than its actual 
201.6 	certification date of July 12, 2012, and Minnesota Statutes, section 469.1763, subdivisions 
201.7 	3 and 4, apply as if the district were certified on that date.

201.8 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
201.9 	city of Moorhead and its chief clerical officer comply with Minnesota Statutes, section 
201.10 	645.021, subdivisions 2 and 3.

201.11 	Sec. 18. CITY OF RICHFIELD; EXTENSION OF CEDAR AVENUE TIF 
201.12 	DISTRICT.
 201.13 	Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, or any other law 
201.14 	to the contrary, the city of Richfield and the Housing and Redevelopment Authority in and 
201.15 	for the city of Richfield may elect to extend the duration limit of the redevelopment tax 
201.16 	increment financing district known as the Cedar Avenue Tax Increment Financing District 
201.17 	established by Laws 2005, chapter 152, article 2, section 25, by ten years.

201.18 	EFFECTIVE DATE. This section is effective upon compliance by the governing bodies 
201.19 	of the city of Richfield, Hennepin County, and Independent School District No. 280 with 
201.20 	the requirements of Minnesota Statutes, sections 469.1782, subdivision 2; and 645.021, 
201.21 	subdivisions 2 and 3.

201.22 	Sec. 19. CITY OF RICHFIELD; LYNDALE GARDENS TIF DISTRICT; 
201.23 	FIVE-YEAR RULE EXTENSION.
 201.24 	The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that activities 
201.25 	must be undertaken within a five-year period from the date of certification of a tax increment 
201.26 	financing district, are considered to be met for the Lyndale Gardens Tax Increment Financing 
201.27 	District established by the city of Richfield and the housing and redevelopment authority 
201.28 	in and for the city of Richfield if the activities are undertaken within seven years from the 
201.29 	date of certification.

202.1 	EFFECTIVE DATE. This section is effective the day after the city of Richfield and 
202.2 	its chief clerical officer comply with Minnesota Statutes, sections 469.1782, subdivision 2, 
202.3 	and 645.021, subdivisions 2 and 3.

202.4 	Sec. 20. CITY OF SOUTH ST. PAUL; EXTENSION OF TIME TO ADOPT 
202.5 	INTERFUND LOAN RESOLUTION FOR 4TH AVENUE VILLAGE TIF DISTRICT.
 202.6 	Notwithstanding Minnesota Statutes, section 469.178, subdivision 7, the governing body 
202.7 	of the South St. Paul Economic Development Authority, successor to the Housing and 
202.8 	Redevelopment Authority in and for the city of South St. Paul, may retroactively approve 
202.9 	a previously established interfund loan for the 4th Avenue Village Tax Increment District 
202.10 	in the city of South St. Paul if the governing body adopts a resolution approving that loan 
202.11 	by August 1, 2017, and if the requirements of Minnesota Statutes, section 469.178, 
202.12 	subdivision 7, are otherwise complied with, the interfund loan authorization is deemed to 
202.13 	satisfy Minnesota Statutes, section 469.178, subdivision 7.

202.14 	EFFECTIVE DATE. This section is effective without local approval under Minnesota 
202.15 	Statutes, section 645.023, subdivision 1, paragraph (a), on the day following final enactment.

202.16 	Sec. 21. CITY OF ST. LOUIS PARK; ELMWOOD VILLAGE TIF DISTRICT; 
202.17 	POOLING PERCENTAGE INCREASE.
 202.18 	For purposes of the Elmwood Village Tax Increment Financing District in the city of 
202.19 	St. Louis Park, including the duration extension authorized by Laws 2009, chapter 88, article 
202.20 	5, section 19, the permitted percentage of increments that may be expended on activities 
202.21 	outside the district under Minnesota Statutes, section 469.1763, subdivision 2, is increased 
202.22 	to 30 percent for the district.

202.23 	EFFECTIVE DATE. This section is effective the day after the governing body of the 
202.24 	city of St. Louis Park and its chief clerical officer comply with Minnesota Statutes, section 
202.25 	645.021, subdivisions 2 and 3.

202.26 	Sec. 22. CITY OF ST. PAUL; FORD SITE REDEVELOPMENT TIF DISTRICT.
 202.27 	(a) For purposes of computing the duration limits under Minnesota Statutes, section 
202.28 	469.176, subdivision 1b, the housing and redevelopment authority of the city of St. Paul 
202.29 	may waive receipt of increment for the Ford Site Redevelopment Tax Increment Financing 
202.30 	District. This authority is limited to the first four years of increment or increments derived 
202.31 	from taxes payable in 2023, whichever occurs first.
203.1 	(b) If the city elects to waive receipt of increment under paragraph (a), for purposes of 
203.2 	applying any limits based on when the district was certified under Minnesota Statutes, 
203.3 	section 469.176, subdivision 6, or 469.1763, the date of certification for the district is deemed 
203.4 	to be January 2 of the property tax assessment year for which increment is first received 
203.5 	under the waiver.

203.6 	EFFECTIVE DATE. This section is effective July 1, 2017, without local approval 
203.7 	under Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).

203.8 	Sec. 23. WASHINGTON COUNTY; NEWPORT REDROCK CROSSING PROJECT 
203.9 	TIF DISTRICT; SPECIAL RULES AUTHORIZATION.
 203.10 	(a) If Washington County elects, upon the adoption of a tax increment financing plan 
203.11 	for a district, the rules under this section apply to one or more tax increment financing 
203.12 	districts established by the county or the community development agency of the county. 
203.13 	The area within which the tax increment districts may be created is located in the city of 
203.14 	Newport and is south of marked Interstate Highway 494, north of 15th Street extended to 
203.15 	the Mississippi River, east of the Mississippi River, and west of marked Trunk Highway 
203.16 	61 and the adjacent rights-of-way and shall be referred to as the "Newport Red Rock Crossing 
203.17 	Project Area" or "project area."
203.18 	(b) The requirements for qualifying a redevelopment district under Minnesota Statutes, 
203.19 	section 469.174, subdivision 10, do not apply to the parcels identified by parcel identification 
203.20 	numbers: 2602822440051, 260282244050, 260282244049, 260282244048, 2602822440046, 
203.21 	2602822440045, 260282244044, 2602822440043, 2602822440026, 2602822440025, 
203.22 	260282244024, and 2602822440023, which are deemed substandard for the purpose of 
203.23 	qualifying the district as a redevelopment district.
203.24 	(c) Increments spent outside a district shall only be spent within the project area and on 
203.25 	costs described in Minnesota Statutes, section 469.176, subdivision 4j.
203.26 	(d) Notwithstanding anything to the contrary in Minnesota Statutes, section 469.1763, 
203.27 	subdivision 2, paragraph (a), not more than 30 percent of the total revenue derived from tax 
203.28 	increments paid by properties in any district, measured over the life of the district, may be 
203.29 	expended on activities outside the district but within the project area. The five-year rule 
203.30 	under Minnesota Statutes, section 469.1763, subdivision 3, applies as if the limit is nine 
203.31 	years.
203.32 	(e) The authority to approve a tax increment financing plan and to establish a tax 
203.33 	increment financing district under this section expires December 31, 2027.

204.1 	EFFECTIVE DATE. This section is effective and shall retroactively include the 
204.2 	redevelopment district in the project area approved by Washington County on November 
204.3 	8, 2016, upon approval by the governing body of the city of Newport and upon compliance 
204.4 	by Washington County and its chief clerical officer with Minnesota Statutes, section 645.021, 
204.5 	subdivisions 2 and 3.

204.6 	Sec. 24. CITY OF WAYZATA; TIF DISTRICT 3; WIDSTEN.
 204.7 	(a) The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that 
204.8 	activities must be undertaken within a five-year period from the date of certification of a 
204.9 	tax increment financing district, are considered to be met for Tax Increment Financing 
204.10 	District 3 (Widsten) in the city of Wayzata if the revenues derived from tax increments from 
204.11 	the district are expended for any project contemplated by the original tax increment financing 
204.12 	plan for the district, including, without limitation, a municipal parking ramp within the 
204.13 	district.
204.14 	(b) The requirements of Minnesota Statutes, section 469.1763, subdivision 4, do not 
204.15 	apply to the district if the revenues derived from tax increment from the district are expended 
204.16 	for any project contemplated by the original tax increment financing plan for the district, 
204.17 	including, without limitation, a municipal parking ramp within the district.

204.18 	EFFECTIVE DATE. This section is effective upon compliance by the chief clerical 
204.19 	officer of the governing body of the city of Wayzata with the requirements of Minnesota 
204.20 	Statutes, section 645.021, subdivisions 2 and 3.

204.21 	ARTICLE 7
204.22 	PUBLIC FINANCE

204.23 	Section 1. Minnesota Statutes 2016, section 366.095, subdivision 1, is amended to read:
204.24 		Subdivision 1.Certificates of indebtedness. The town board may issue certificates of 
204.25 	indebtedness within the debt limits for a town purpose otherwise authorized by law. The 
204.26 	certificates shall be payable in not more than ten years and be issued on the terms and in 
204.27 	the manner as the board may determine, provided that notes issued for projects that eliminate 
204.28 	R-22, as defined in section 240A.09, paragraph (b), clause (2), must be payable in not more 
204.29 	than 20 years. If the amount of the certificates to be issued exceeds 0.25 percent of the 
204.30 	estimated market value of the town, they shall not be issued for at least ten days after 
204.31 	publication in a newspaper of general circulation in the town of the board's resolution 
204.32 	determining to issue them. If within that time, a petition asking for an election on the 
204.33 	proposition signed by voters equal to ten percent of the number of voters at the last regular 
205.1 	town election is filed with the clerk, the certificates shall not be issued until their issuance 
205.2 	has been approved by a majority of the votes cast on the question at a regular or special 
205.3 	election. A tax levy shall be made to pay the principal and interest on the certificates as in 
205.4 	the case of bonds.

205.5 	Sec. 2. Minnesota Statutes 2016, section 383B.117, subdivision 2, is amended to read:
205.6 		Subd. 2.Equipment acquisition; capital notes. The board may, by resolution and 
205.7 	without public referendum, issue capital notes within existing debt limits for the purpose 
205.8 	of purchasing ambulance and other medical equipment, road construction or maintenance 
205.9 	equipment, public safety equipment and other capital equipment having an expected useful 
205.10 	life at least equal to the term of the notes issued. The notes shall be payable in not more 
205.11 	than ten years and shall be issued on terms and in a manner as the board determines, provided 
205.12 	that notes issued for projects that eliminate R-22, as defined in section 240A.09, paragraph 
205.13 	(b), clause (2), must be payable in not more than 20 years. The total principal amount of 
205.14 	the notes issued for any fiscal year shall not exceed one percent of the total annual budget 
205.15 	for that year and shall be issued solely for the purchases authorized in this subdivision. A 
205.16 	tax levy shall be made for the payment of the principal and interest on such notes as in the 
205.17 	case of bonds. For purposes of this subdivision, "equipment" includes computer hardware 
205.18 	and software, whether bundled with machinery or equipment or unbundled. For purposes 
205.19 	of this subdivision, the term "medical equipment" includes computer hardware and software 
205.20 	and other intellectual property for use in medical diagnosis, medical procedures, research, 
205.21 	record keeping, billing, and other hospital applications, together with application development 
205.22 	services and training related to the use of the computer hardware and software and other 
205.23 	intellectual property, all without regard to their useful life. For purposes of determining the 
205.24 	amount of capital notes which the county may issue in any year, the budget of the county 
205.25 	and Hennepin Healthcare System, Inc. shall be combined and the notes issuable under this 
205.26 	subdivision shall be in addition to obligations issuable under section 373.01, subdivision 
205.27 	3.

205.28 	Sec. 3. Minnesota Statutes 2016, section 410.32, is amended to read:
205.29 	410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.
205.30 	(a) Notwithstanding any contrary provision of other law or charter, a home rule charter 
205.31 	city may, by resolution and without public referendum, issue capital notes subject to the 
205.32 	city debt limit to purchase capital equipment.
205.33 	(b) For purposes of this section, "capital equipment" means:
206.1 	(1) public safety equipment, ambulance and other medical equipment, road construction 
206.2 	and maintenance equipment, and other capital equipment; and
206.3 	(2) computer hardware and software, whether bundled with machinery or equipment or 
206.4 	unbundled, together with application development services and training related to the use 
206.5 	of the computer hardware and software.
206.6 	(c) The equipment or software must have an expected useful life at least as long as the 
206.7 	term of the notes.
206.8 	(d) The notes shall be payable in not more than ten years and be issued on terms and in 
206.9 	the manner the city determines, provided that notes issued for projects that eliminate R-22, 
206.10 	as defined in section 240A.09, paragraph (b), clause (2), must be payable in not more than 
206.11 	20 years. The total principal amount of the capital notes issued in a fiscal year shall not 
206.12 	exceed 0.03 percent of the estimated market value of taxable property in the city for that 
206.13 	year.
206.14 	(e) A tax levy shall be made for the payment of the principal and interest on the notes, 
206.15 	in accordance with section 475.61, as in the case of bonds.
206.16 	(f) Notes issued under this section shall require an affirmative vote of two-thirds of the 
206.17 	governing body of the city.
206.18 	(g) Notwithstanding a contrary provision of other law or charter, a home rule charter 
206.19 	city may also issue capital notes subject to its debt limit in the manner and subject to the 
206.20 	limitations applicable to statutory cities pursuant to section 412.301.

206.21 	Sec. 4. Minnesota Statutes 2016, section 412.301, is amended to read:
206.22 	412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.
206.23 	(a) The council may issue certificates of indebtedness or capital notes subject to the city 
206.24 	debt limits to purchase capital equipment.
206.25 	(b) For purposes of this section, "capital equipment" means:
206.26 	(1) public safety equipment, ambulance and other medical equipment, road construction 
206.27 	and maintenance equipment, and other capital equipment; and
206.28 	(2) computer hardware and software, whether bundled with machinery or equipment or 
206.29 	unbundled, together with application development services and training related to the use 
206.30 	of the computer hardware or software.
207.1 	(c) The equipment or software must have an expected useful life at least as long as the 
207.2 	terms of the certificates or notes.
207.3 	(d) Such certificates or notes shall be payable in not more than ten years and shall be 
207.4 	issued on such terms and in such manner as the council may determine, provided, however, 
207.5 	that notes issued for projects that eliminate R-22, as defined in section 240A.09, paragraph 
207.6 	(b), clause (2), must be payable in not more than 20 years.
207.7 	(e) If the amount of the certificates or notes to be issued to finance any such purchase 
207.8 	exceeds 0.25 percent of the estimated market value of taxable property in the city, they shall 
207.9 	not be issued for at least ten days after publication in the official newspaper of a council 
207.10 	resolution determining to issue them; and if before the end of that time, a petition asking 
207.11 	for an election on the proposition signed by voters equal to ten percent of the number of 
207.12 	voters at the last regular municipal election is filed with the clerk, such certificates or notes 
207.13 	shall not be issued until the proposition of their issuance has been approved by a majority 
207.14 	of the votes cast on the question at a regular or special election.
207.15 	(f) A tax levy shall be made for the payment of the principal and interest on such 
207.16 	certificates or notes, in accordance with section 475.61, as in the case of bonds.

207.17 	Sec. 5. Minnesota Statutes 2016, section 469.034, subdivision 2, is amended to read:
207.18 		Subd. 2.General obligation revenue bonds. (a) An authority may pledge the general 
207.19 	obligation of the general jurisdiction governmental unit as additional security for bonds 
207.20 	payable from income or revenues of the project or the authority. The authority must find 
207.21 	that the pledged revenues will equal or exceed 110 percent of the principal and interest due 
207.22 	on the bonds for each year. The proceeds of the bonds must be used for a qualified housing 
207.23 	development project or projects. The obligations must be issued and sold in the manner and 
207.24 	following the procedures provided by chapter 475, except the obligations are not subject to 
207.25 	approval by the electors, and the maturities may extend to not more than 35 years for 
207.26 	obligations sold to finance housing for the elderly and 40 years for other obligations issued 
207.27 	under this subdivision. The authority is the municipality for purposes of chapter 475.
207.28 	(b) The principal amount of the issue must be approved by the governing body of the 
207.29 	general jurisdiction governmental unit whose general obligation is pledged. Public hearings 
207.30 	must be held on issuance of the obligations by both the authority and the general jurisdiction 
207.31 	governmental unit. The hearings must be held at least 15 days, but not more than 120 days, 
207.32 	before the sale of the obligations.
208.1 	(c) The maximum amount of general obligation bonds that may be issued and outstanding 
208.2 	under this section equals the greater of (1) one-half of one percent of the estimated market 
208.3 	value of the general jurisdiction governmental unit whose general obligation is pledged, or 
208.4 	(2) $3,000,000 $5,000,000. In the case of county or multicounty general obligation bonds, 
208.5 	the outstanding general obligation bonds of all cities in the county or counties issued under 
208.6 	this subdivision must be added in calculating the limit under clause (1).
208.7 	(d) "General jurisdiction governmental unit" means the city in which the housing 
208.8 	development project is located. In the case of a county or multicounty authority, the county 
208.9 	or counties may act as the general jurisdiction governmental unit. In the case of a multicounty 
208.10 	authority, the pledge of the general obligation is a pledge of a tax on the taxable property 
208.11 	in each of the counties.
208.12 	(e) "Qualified housing development project" means a housing development project 
208.13 	providing housing either for the elderly or for individuals and families with incomes not 
208.14 	greater than 80 percent of the median family income as estimated by the United States 
208.15 	Department of Housing and Urban Development for the standard metropolitan statistical 
208.16 	area or the nonmetropolitan county in which the project is located. The project must be 
208.17 	owned for the term of the bonds either by the authority or by a limited partnership or other 
208.18 	entity in which the authority or another entity under the sole control of the authority is the 
208.19 	sole general partner and the partnership or other entity must receive (1) an allocation from 
208.20 	the Department of Management and Budget or an entitlement issuer of tax-exempt bonding 
208.21 	authority for the project and a preliminary determination by the Minnesota Housing Finance 
208.22 	Agency or the applicable suballocator of tax credits that the project will qualify for four 
208.23 	percent low-income housing tax credits or (2) a reservation of nine percent low-income 
208.24 	housing tax credits from the Minnesota Housing Finance Agency or a suballocator of tax 
208.25 	credits for the project. A qualified housing development project may admit nonelderly 
208.26 	individuals and families with higher incomes if:
208.27 	(1) three years have passed since initial occupancy;
208.28 	(2) the authority finds the project is experiencing unanticipated vacancies resulting in 
208.29 	insufficient revenues, because of changes in population or other unforeseen circumstances 
208.30 	that occurred after the initial finding of adequate revenues; and
208.31 	(3) the authority finds a tax levy or payment from general assets of the general jurisdiction 
208.32 	governmental unit will be necessary to pay debt service on the bonds if higher income 
208.33 	individuals or families are not admitted.
209.1 	(f) The authority may issue bonds to refund bonds issued under this subdivision in 
209.2 	accordance with section 475.67. The finding of the adequacy of pledged revenues required 
209.3 	by paragraph (a) and the public hearing required by paragraph (b) shall not apply to the 
209.4 	issuance of refunding bonds. This paragraph applies to refunding bonds issued on and after 
209.5 	July 1, 1992.

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

209.15 	Sec. 7. Minnesota Statutes 2016, section 473.39, is amended by adding a subdivision to 
209.16 	read:
209.17 		Subd. 1u.Obligations. In addition to other authority in this section, the council may 
209.18 	issue certificates of indebtedness, bonds, or other obligations under this section in an amount 
209.19 	not exceeding $126,000,000 for capital expenditures as prescribed in the council's transit 
209.20 	capital improvement program and for related costs, including the costs of issuance and sale 
209.21 	of the obligations. Of this authorization, after July 1, 2017, the council may issue certificates 
209.22 	of indebtedness, bonds, or other obligations in an amount not exceeding $82,100,000, and 
209.23 	after July 1, 2018, the council may issue certificates of indebtedness, bonds, or other 
209.24 	obligations in an additional amount not exceeding $43,900,000.

209.25 	EFFECTIVE DATE. This section is effective the day following final enactment and 
209.26 	applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

209.27 	Sec. 8. Minnesota Statutes 2016, section 473.39, is amended by adding a subdivision to 
209.28 	read:
209.29 		Subd. 6.Limitation; light rail transit. The council is prohibited from expending any 
209.30 	proceeds from certificates of indebtedness, bonds, or other obligations under this section 
209.31 	for project development, land acquisition, or construction to (1) establish a light rail transit 
210.1 	line; or (2) expand a light rail transit line, including by extending a line or adding additional 
210.2 	stops.

210.3 	EFFECTIVE DATE. This section applies to the expenditures made after the day 
210.4 	following final enactment, but does not apply to amounts expended under binding contracts 
210.5 	entered into before March 25, 2017. This section applies in the counties of Anoka, Carver, 
210.6 	Dakota, Hennepin, Ramsey, Scott, and Washington.

210.7 	Sec. 9. Minnesota Statutes 2016, section 475.58, subdivision 3b, is amended to read:
210.8 		Subd. 3b.Street reconstruction and bituminous overlays. (a) A municipality may, 
210.9 	without regard to the election requirement under subdivision 1, issue and sell obligations 
210.10 	for street reconstruction or bituminous overlays, if the following conditions are met:
210.11 	(1) the streets are reconstructed or overlaid under a street reconstruction or overlay plan 
210.12 	that describes the street reconstruction or overlay to be financed, the estimated costs, and 
210.13 	any planned reconstruction or overlay of other streets in the municipality over the next five 
210.14 	years, and the plan and issuance of the obligations has been approved by a vote of all a 
210.15 	two-thirds majority of the members of the governing body present at the meeting following 
210.16 	a public hearing for which notice has been published in the official newspaper at least ten 
210.17 	days but not more than 28 days prior to the hearing; and
210.18 	(2) if a petition requesting a vote on the issuance is signed by voters equal to five percent 
210.19 	of the votes cast in the last municipal general election and is filed with the municipal clerk 
210.20 	within 30 days of the public hearing, the municipality may issue the bonds only after 
210.21 	obtaining the approval of a majority of the voters voting on the question of the issuance of 
210.22 	the obligations. If the municipality elects not to submit the question to the voters, the 
210.23 	municipality shall not propose the issuance of bonds under this section for the same purpose 
210.24 	and in the same amount for a period of 365 days from the date of receipt of the petition. If 
210.25 	the question of issuing the bonds is submitted and not approved by the voters, the provisions 
210.26 	of section 475.58, subdivision 1a, shall apply.
210.27 	(b) Obligations issued under this subdivision are subject to the debt limit of the 
210.28 	municipality and are not excluded from net debt under section 475.51, subdivision 4.
210.29 	(c) For purposes of this subdivision, street reconstruction and bituminous overlays 
210.30 	includes utility replacement and relocation and other activities incidental to the street 
210.31 	reconstruction, turn lanes and other improvements having a substantial public safety function, 
210.32 	realignments, other modifications to intersect with state and county roads, and the local 
210.33 	share of state and county road projects. For purposes of this subdivision, "street 
211.1 	reconstruction" includes expenditures for street reconstruction that have been incurred by 
211.2 	a municipality before approval of a street reconstruction plan, if such expenditures are 
211.3 	included in a street reconstruction plan approved on or before the date of the public hearing 
211.4 	under paragraph (a), clause (1), regarding issuance of bonds for such expenditures.
211.5 	(d) Except in the case of turn lanes, safety improvements, realignments, intersection 
211.6 	modifications, and the local share of state and county road projects, street reconstruction 
211.7 	and bituminous overlays does not include the portion of project cost allocable to widening 
211.8 	a street or adding curbs and gutters where none previously existed.

211.9 	Sec. 10. Minnesota Statutes 2016, section 475.60, subdivision 2, is amended to read:
211.10 		Subd. 2.Requirements waived. The requirements as to public sale shall not apply:
211.11 	(1) to obligations issued under the provisions of a home rule charter or of a law 
211.12 	specifically authorizing a different method of sale, or authorizing them to be issued in such 
211.13 	manner or on such terms and conditions as the governing body may determine;
211.14 	(2) to obligations sold by an issuer in an amount not exceeding the total sum of 
211.15 	$1,200,000 in any 12-month period;
211.16 	(3) to obligations issued by a governing body other than a school board in anticipation 
211.17 	of the collection of taxes or other revenues appropriated for expenditure in a single year, if 
211.18 	sold in accordance with the most favorable of two or more proposals solicited privately;
211.19 	(4) to obligations sold to any board, department, or agency of the United States of 
211.20 	America or of the state of Minnesota, in accordance with rules or regulations promulgated 
211.21 	by such board, department, or agency;
211.22 	(5) to obligations issued to fund pension and retirement fund liabilities under section 
211.23 	475.52, subdivision 6, obligations issued with tender options under section 475.54, 
211.24 	subdivision 5a, crossover refunding obligations referred to in section 475.67, subdivision 
211.25 	13, and any issue of obligations comprised in whole or in part of obligations bearing interest 
211.26 	at a rate or rates which vary periodically referred to in section 475.56;
211.27 	(6) to obligations to be issued for a purpose, in a manner, and upon terms and conditions 
211.28 	authorized by law, if the governing body of the municipality, on the advice of bond counsel 
211.29 	or special tax counsel, determines that interest on the obligations cannot be represented to 
211.30 	be excluded from gross income for purposes of federal income taxation;
211.31 	(7) to obligations issued in the form of an installment purchase contract, lease purchase 
211.32 	agreement, or other similar agreement;
212.1 	(8) to obligations sold under a bond reinvestment program; and
212.2 	(9) if the municipality has retained an independent financial advisor municipal adviser, 
212.3 	obligations which the governing body determines shall be sold by private negotiation.

212.4 	ARTICLE 8
212.5 	TAX ADMINISTRATION

212.6 	Section 1. Minnesota Statutes 2016, section 271.06, subdivision 2a, is amended to read:
212.7 		Subd. 2a.Timely mailing treated as timely filing. (a) If, after the period prescribed by 
212.8 	subdivision 2, the original notice of appeal, proof of service upon the commissioner, and 
212.9 	filing fee are delivered by United States mail to the Tax Court administrator or the court 
212.10 	administrator of district court acting as court administrator of the Tax Court, then the date 
212.11 	of filing is the date of the United States postmark stamped on the envelope or other 
212.12 	appropriate wrapper in which the notice of appeal, proof of service upon the commissioner, 
212.13 	and filing fee are mailed.
212.14 	(b) This subdivision applies only if the postmark date falls within the period prescribed 
212.15 	by subdivision 2 and the original notice of appeal, proof of service upon the commissioner, 
212.16 	and filing fee are, within the time prescribed by subdivision 2, deposited in the mail in the 
212.17 	United States in an envelope or other appropriate wrapper, postage prepaid, properly 
212.18 	addressed to the Tax Court administrator or the court administrator of district court acting 
212.19 	as court administrator of the Tax Court.
212.20 	(c) Only the postmark of the United States Postal Service qualifies as proof of timely 
212.21 	mailing under this subdivision. Private postage meters do not qualify as proof of timely 
212.22 	filing under this subdivision. If the original notice of appeal, proof of service upon the 
212.23 	commissioner, and filing fee are sent by United States registered mail, the date of registration 
212.24 	is the postmark date. If the original notice of appeal, proof of service upon the commissioner, 
212.25 	and filing fee are sent by United States certified mail and the sender's receipt is postmarked 
212.26 	by the postal employee to whom the envelope containing the original notice of appeal, proof 
212.27 	of service upon the commissioner, and filing fee is presented, the date of the United States 
212.28 	postmark on the receipt is the postmark date. If the envelope or other wrapper in which the 
212.29 	notice of appeal, proof of service upon the commissioner, and filing fee are mailed does 
212.30 	not contain a postmark of the United States Postal Service but is delivered by United States 
212.31 	mail to the Tax Court administrator or the court administrator of the district court acting as 
212.32 	court administrator of the Tax Court, then the date of mailing qualifies as timely filed under 
212.33 	this subdivision, if proof of mailing within the time prescribed by subdivision 2 is provided 
213.1 	by affidavit of the petitioner or counsel and a dated receipt from the United States Postal 
213.2 	Service.
213.3 	(d) A reference in this section to the United States mail must be treated as including a 
213.4 	reference to any designated delivery service and a reference in this section to a postmark 
213.5 	by the United States Postal Service must be treated as including a reference to any date 
213.6 	recorded or marked by any designated delivery service in accordance with section 7502(f) 
213.7 	of the Internal Revenue Code.

213.8 	EFFECTIVE DATE. This section is effective the day following final enactment and 
213.9 	applies to notices mailed after June 30, 2017.

213.10 	Sec. 2. Minnesota Statutes 2016, section 271.06, subdivision 6, is amended to read:
213.11 		Subd. 6.Hearings; determination of issues; default. (a) The Tax Court shall hear, 
213.12 	consider, and determine without a jury every appeal de novo. A Tax Court judge may 
213.13 	empanel an advisory jury upon the judge's motion. The Tax Court shall hold a public hearing 
213.14 	in every case. All such parties shall have an opportunity to offer evidence and arguments 
213.15 	at the hearing; provided, that the order of the commissioner or the appropriate unit of 
213.16 	government in every case shall be prima facie valid. When an appeal to the Tax Court has 
213.17 	been taken from an order or determination of the commissioner or from the appropriate unit 
213.18 	of government, the proceeding shall be an original proceeding in the nature of a suit to set 
213.19 	aside or modify the order or determination. In case no appellant shall appear the Tax Court 
213.20 	shall enter its order affirming the order of the commissioner of revenue or the appropriate 
213.21 	unit of government from which the appeal was taken. If the Department of Revenue's sales 
213.22 	ratio study is introduced in Tax Court as evidence, the sales ratio data from the study shall 
213.23 	be admissible as evidence only as provided in section 278.05, subdivision 4.
213.24 	(b) The commissioner, the taxpayer, and any other party to an appeal to the Tax Court 
213.25 	may file all necessary notices, documents, and other necessary information with the Tax 
213.26 	Court in a manner approved by the Tax Court.

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

213.28 	Sec. 3. Minnesota Statutes 2016, section 271.08, subdivision 1, is amended to read:
213.29 		Subdivision 1.Written order. The Tax Court, except in Small Claims Division, shall 
213.30 	determine every appeal by written order containing findings of fact and the decision of the 
213.31 	Tax Court. A memorandum of the grounds of the decision shall be appended. Notice of the 
213.32 	entry of the order and of the substance of the decision shall be mailed to all parties. A motion 
214.1 	for rehearing, which includes a motion for amended findings of fact, conclusions of law, 
214.2 	or a new trial, must be served by the moving party within 15 30 days after mailing of the 
214.3 	notice by the court as specified in this subdivision, and the motion must be heard within 30 
214.4 	days thereafter, unless the time for hearing is extended by the court within the 30-day period 
214.5 	for good cause shown.

214.6 	EFFECTIVE DATE. This section is effective for petitions and appeals filed after June 
214.7 	30, 2017.

214.8 	Sec. 4. Minnesota Statutes 2016, section 271.18, is amended to read:
214.9 	271.18 EX-JUDGES NOT TO REPRESENT CLIENTS; EXCEPTION; 
214.10 	VIOLATION.
214.11 	No judge or employee of the Tax Court, except referees appointed for the Small Claims 
214.12 	Division, shall, within one year after the office or employment has terminated, act as counsel, 
214.13 	attorney, or agent for a taxpayer in connection with any claim or proceeding pending in the 
214.14 	department of revenue or in the Tax Court at the time of termination. No judge, referee, or 
214.15 	employee shall, at any time after the termination of the office or employment, act as counsel, 
214.16 	attorney, or agent in connection with any claim or proceeding of which the person terminated 
214.17 	has knowledge which was acquired in the course of a term of office or employment in the 
214.18 	Tax Court. Any violation of the provisions of this section shall be a gross misdemeanor.

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

214.20 	ARTICLE 9
214.21 	TOBACCO TAXES

214.22 	Section 1. Minnesota Statutes 2016, section 297F.01, subdivision 13a, is amended to read:
214.23 		Subd. 13a.Premium cigar. "Premium cigar" means any cigar that is hand-constructed 
214.24 	and hand-rolled, has a wrapper that is made entirely from whole tobacco leaf, has a filler 
214.25 	and binder that is made entirely of tobacco, except for adhesives or other materials used to 
214.26 	maintain size, texture, or flavor, and has a wholesale price of no less than $2.

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

214.28 	Sec. 2. Minnesota Statutes 2016, section 297F.05, subdivision 1, is amended to read:
214.29 		Subdivision 1.Rates; cigarettes. A tax is imposed upon the sale of cigarettes in this 
214.30 	state, upon having cigarettes in possession in this state with intent to sell, upon any person 
215.1 	engaged in business as a distributor, and upon the use or storage by consumers, at the rate 
215.2 	of 141.5 152 mills, or 14.15 15.2 cents, on each cigarette.

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

215.4 	Sec. 3. Minnesota Statutes 2016, section 297F.05, subdivision 3, is amended to read:
215.5 		Subd. 3.Rates; tobacco products. (a) Except as provided in paragraphs (b) and (c) and 
215.6 	subdivision 3a, a tax is imposed upon all tobacco products in this state and upon any person 
215.7 	engaged in business as a distributor, at the rate of 95 percent of the wholesale sales price 
215.8 	of the tobacco products. The tax is imposed at the time the distributor:
215.9 	(1) brings, or causes to be brought, into this state from outside the state tobacco products 
215.10 	for sale;
215.11 	(2) makes, manufactures, or fabricates tobacco products in this state for sale in this state; 
215.12 	or
215.13 	(3) ships or transports tobacco products to retailers in this state, to be sold by those 
215.14 	retailers.
215.15 	(b) Notwithstanding paragraph (a), A minimum tax equal to the greater of the tax imposed 
215.16 	under paragraph (a) or a minimum tax equal to the rate imposed on a pack of 20 cigarettes 
215.17 	weighing not more than three pounds per thousand, as established under subdivision 1, is 
215.18 	imposed on each container of moist snuff weighing not more than 1.2 ounces. When more 
215.19 	than one container subject to tax under this paragraph is packaged together, each container 
215.20 	is subject to the minimum tax.
215.21 	(c) Except as provided in paragraph (b), a tax equal to the greater of the tax imposed 
215.22 	under paragraph (a) or a minimum tax equal to the rate imposed on a pack of 20 cigarettes 
215.23 	weighing not more than three pounds per thousand, as established under subdivision 1, 
215.24 	multiplied by the number of ounces of moist snuff in the container, divided by 1.2, is imposed 
215.25 	on each container of moist snuff weighing more than 1.2 ounces.
215.26 	(d) For purposes of this subdivision, a "container" means the smallest a consumer-size 
215.27 	can, package, or other container that is marketed or packaged by the manufacturer, distributor, 
215.28 	or retailer for separate sale to a retail purchaser. When more than one container is packaged 
215.29 	together, each container is subject to tax.

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

216.1 	Sec. 4. Minnesota Statutes 2016, section 297F.05, subdivision 3a, is amended to read:
216.2 		Subd. 3a.Rates; premium cigars. (a) A tax is imposed upon all premium cigars in this 
216.3 	state and upon any person engaged in business as a tobacco product distributor, at the lesser 
216.4 	of:
216.5 	(1) the rate of 95 percent of the wholesale sales price of the premium cigars; or
216.6 	(2) $3.50 $0.50 per premium cigar.
216.7 	(b) The tax imposed under paragraph (a) is imposed at the time the tobacco products 
216.8 	distributor:
216.9 	(1) brings, or causes to be brought, into this state from outside the state premium cigars 
216.10 	for sale;
216.11 	(2) makes, manufactures, or fabricates premium cigars in this state for sale in this state; 
216.12 	or
216.13 	(3) ships or transports premium cigars to retailers in this state, to be sold by those retailers.

216.14 	EFFECTIVE DATE. This section is effective for cigars brought into the state or 
216.15 	manufactured in the state on or after July 1, 2017.

216.16 	Sec. 5. Minnesota Statutes 2016, section 297F.05, subdivision 4, is amended to read:
216.17 		Subd. 4.Use tax; tobacco products. Except as provided in subdivision 4a, a tax is 
216.18 	imposed upon the use or storage by consumers of tobacco products in this state, and upon 
216.19 	such consumers, at the rate of 95 percent of the cost to the consumer of the tobacco products 
216.20 	or the minimum tax under subdivision 3, paragraph (b) or (c), whichever is greater.

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

216.22 	Sec. 6. Minnesota Statutes 2016, section 297F.05, subdivision 4a, is amended to read:
216.23 		Subd. 4a.Use tax; premium cigars. A tax is imposed upon the use or storage by 
216.24 	consumers of all premium cigars in this state, and upon such consumers, at the lesser of:
216.25 	(1) the rate of 95 percent of the cost to the consumer of the premium cigars; or
216.26 	(2) $3.50 $0.50 per premium cigar.

216.27 	EFFECTIVE DATE. This section is effective for cigars for which the consumer has 
216.28 	acquired title to, or possession of, on or after July 1, 2017.

217.1 	Sec. 7.  REPEALER.
 217.2 	Minnesota Statutes 2016, section 297F.05, subdivision 1a, is repealed.

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

217.4 	ARTICLE 10
217.5 	SUSTAINABLE FOREST INCENTIVE ACT

217.6 	Section 1. Minnesota Statutes 2016, section 290C.01, is amended to read:
217.7 	290C.01 PURPOSE.
217.8 	It is the policy of this state to promote sustainable forest resource management on the 
217.9 	state's public and private lands. Recognizing that The state's private forests comprise 
217.10 	approximately one-half of the state forest land resources, that healthy and robust forest land 
217.11 	provides significant benefits to the state of Minnesota, and that ad. These forests play a 
217.12 	critical role in protecting water quality and soil resources, and provide extensive wildlife 
217.13 	habitat, diverse recreational experiences, and significant forest products that support the 
217.14 	state's economy. Ad valorem property taxes represent a significant annual cost that can 
217.15 	discourage long-term forest management investments. In order to foster silviculture 
217.16 	investments and retain these forests for their economic and ecological benefits, this chapter, 
217.17 	hereafter referred to as the "Sustainable Forest Incentive Act," is enacted to encourage the 
217.18 	state's private forest landowners to make a long-term commitment to sustainable forest 
217.19 	management.

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

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

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

217.25 	Sec. 3. Minnesota Statutes 2016, section 290C.02, subdivision 3, is amended to read:
217.26 		Subd. 3.Claimant. (a) "Claimant" means:
217.27 	(1) a person, as that term is defined in section 290.01, subdivision 2, who owns forest 
217.28 	land in Minnesota and files an application authorized by the Sustainable Forest Incentive 
217.29 	Act;
218.1 	(2) a purchaser or grantee if property enrolled in the program was sold or transferred 
218.2 	after the original application was filed and prior to the annual incentive payment being 
218.3 	made; or
218.4 	(3) an owner of land previously covered by an auxiliary forest contract that automatically 
218.5 	qualifies for inclusion in the Sustainable Forest Incentive Act program pursuant to section 
218.6 	88.49, subdivision 9a, or 88.491, subdivision 2.
218.7 	The purchaser or grantee must notify the commissioner in writing of the sale or transfer 
218.8 	of the property. (b) Owners of land that qualifies for inclusion pursuant to section 88.49, 
218.9 	subdivision 9a, or 88.491, subdivision 2, must notify the commissioner in writing of the 
218.10 	expiration of the auxiliary forest contract or land trade with a governmental unit and submit 
218.11 	an application to the commissioner by August 15 July 1 in order to be eligible to receive a 
218.12 	payment by October 1 of that same year. For purposes of section 290C.11, claimant also 
218.13 	includes any person bound by the covenant required in section 290C.04.
218.14 	(b) (c) No more than one claimant is entitled to a payment under this chapter with respect 
218.15 	to any tract, parcel, or piece of land enrolled under this chapter that has been assigned the 
218.16 	same parcel identification number. When enrolled forest land is owned by two or more 
218.17 	persons, the owners must determine between them which person is eligible to claim the 
218.18 	payments provided under sections 290C.01 to 290C.11 290C.13. In the case of property 
218.19 	sold or transferred, the former owner and the purchaser or grantee must determine between 
218.20 	them which person is eligible to claim the payments provided under sections 290C.01 to 
218.21 	290C.11 290C.13. The owners, transferees, or grantees must notify the commissioner in 
218.22 	writing which person is eligible to claim the payments.

218.23 	EFFECTIVE DATE. This section is effective for certifications and applications due 
218.24 	in 2018 and thereafter.

218.25 	Sec. 4. Minnesota Statutes 2016, section 290C.02, subdivision 6, is amended to read:
218.26 		Subd. 6.Forest land. "Forest land" means land containing a minimum of 20 contiguous 
218.27 	acres for which the owner has implemented a forest management plan that was prepared or 
218.28 	updated within the past ten years by an approved plan writer. For purposes of this subdivision, 
218.29 	acres are considered to be contiguous even if they are separated by a road, waterway, railroad 
218.30 	track, or other similar intervening property. At least 50 percent of the contiguous acreage 
218.31 	must meet the definition of forest land in section 88.01, subdivision 7. For the purposes of 
218.32 	sections 290C.01 to 290C.11 290C.13, forest land does not include (i) land used for 
218.33 	residential or agricultural purposes, (ii) land enrolled in the reinvest in Minnesota program, 
218.34 	a state or federal conservation reserve or easement reserve program under sections 103F.501
219.1 	to 103F.531, the Minnesota agricultural property tax law under section 273.111, or land 
219.2 	subject to agricultural land preservation controls or restrictions as defined in section 40A.02
219.3 	or under the Metropolitan Agricultural Preserves Act under chapter 473H, (iii) land exceeding 
219.4 	60,000 acres that is subject to a single conservation easement funded under section 97A.056
219.5 	or a comparable permanent easement conveyed to a governmental or nonprofit entity; (iv)
219.6 	any land that becomes subject to a conservation easement funded under section 97A.056
219.7 	or a comparable permanent easement conveyed to a governmental or nonprofit entity after 
219.8 	May 30, 2013; or (v) (iv) land improved with a structure,; pavement, other than a paved 
219.9 	trail under easement, lease, or terminable license to the state of Minnesota or a political 
219.10 	subdivision; sewer,; campsite,; or any road, other than a township road, used for purposes 
219.11 	not prescribed in the forest management plan.

219.12 	EFFECTIVE DATE; APPLICATION. This section is effective for applications made 
219.13 	in 2018 and thereafter, except the repeal of the exclusion of land under item (iii) is effective 
219.14 	retroactively for payments due under Minnesota Statutes, section 290C.08, beginning for 
219.15 	payments due to be made in 2014. In order to qualify for retroactive payments, the following 
219.16 	requirements must be met: (1) the owner of land exceeding 60,000 acres that is subject to 
219.17 	a single conservation easement funded under Minnesota Statutes, section 97A.056 or a 
219.18 	comparable permanent easement conveyed to a governmental or nonprofit entity, must 
219.19 	submit an application to the commissioner of revenue, in a form and manner and at a time 
219.20 	acceptable to the commissioner, establishing that the affected property and its use met the 
219.21 	requirement of Minnesota Statutes, chapter 290C, as amended by this section; (2) the owner 
219.22 	and each county in which the land is located must certify to the commissioner that no 
219.23 	petitions challenging the market value of the property are pending under Minnesota Statutes, 
219.24 	chapter 278; and (3) the requirements of clauses (1) and (2) must be satisfied by October 
219.25 	1, 2017. No interest accrues on payment under this section for periods before November 1, 
219.26 	2017.

219.27 	Sec. 5. Minnesota Statutes 2016, section 290C.03, is amended to read:
219.28 	290C.03 ELIGIBILITY REQUIREMENTS.
219.29 	(a) Land may be enrolled in the sustainable forest incentive program under this chapter 
219.30 	if all of the following conditions are met:
219.31 	(1) the land consists of at least 20 contiguous acres and at least 50 percent of the land 
219.32 	must meet the definition of forest land in section 88.01, subdivision 7, during the enrollment;
219.33 	(2) a forest management plan for the land must be prepared by an approved plan writer 
219.34 	and implemented during the period in which the land is enrolled;
220.1 	(3) timber harvesting and forest management guidelines must be used in conjunction 
220.2 	with any timber harvesting or forest management activities conducted on the land during 
220.3 	the period in which the land is enrolled;
220.4 	(4) the land must be enrolled for a minimum of eight years;
220.5 	(5) there are no delinquent property taxes on the land; and
220.6 	(6) claimants enrolling more than 1,920 acres or enrolling any land that is subject to a 
220.7 	conservation easement funded under section 97A.056, or a comparable permanent easement 
220.8 	conveyed to a governmental or nonprofit entity in the sustainable forest incentive program 
220.9 	must allow year-round, nonmotorized access to fish and wildlife resources and motorized 
220.10 	access on established and maintained roads and trails, unless the road or trail is temporarily 
220.11 	closed for safety, natural resource, or road damage reasons on enrolled land except within 
220.12 	one-fourth mile of a permanent dwelling or during periods of high fire hazard as determined 
220.13 	by the commissioner of natural resources.;
220.14 	(7) the claimant has registered the forest management plan under clause (2) with the 
220.15 	commissioner of natural resources, who has determined that the land meets qualifications 
220.16 	for enrollment and has issued the claimant a registration number; and
220.17 	(8) no portion of the tax parcel containing the enrolled land is classified as class 2c 
220.18 	managed forest land.
220.19 	(b) Claimants required to allow access under paragraph (a), clause (6), do not by that 
220.20 	action:
220.21 	(1) extend any assurance that the land is safe for any purpose;
220.22 	(2) confer upon the person the legal status of an invitee or licensee to whom a duty of 
220.23 	care is owed; or
220.24 	(3) assume responsibility for or incur liability for any injury to the person or property 
220.25 	caused by an act or omission of the person.
220.26 	(c) The commissioner of natural resources shall annually provide county assessors 
220.27 	verification information regarding plan registration under paragraph (a), clause (7), on a 
220.28 	timely basis.
220.29 	(d) A minimum of three acres must be excluded from enrolled land when the land is 
220.30 	improved with a structure that is not a minor, ancillary, and nonresidential structure.
221.1 	(e) An entire tax parcel is ineligible to be enrolled in the program if land contained within 
221.2 	the parcel does not meet the definition of forest land in section 290C.02, subdivision 6, for 
221.3 	any of the following reasons:
221.4 	(1) the land is subject to the Minnesota agricultural property tax under section 273.111; 
221.5 	or
221.6 	(2) the land is subject to agricultural land preservation controls or restrictions as defined 
221.7 	in section 40A.02, or the Metropolitan Agricultural Preserves Act under chapter 473H.
221.8 	(f) Any acres enrolled in a state or federal conservation reserve or easement program 
221.9 	under sections 103F.501 to 103F.531 are ineligible for inclusion in the program under this 
221.10 	chapter.

221.11 	EFFECTIVE DATE. This section is effective for certifications and applications due 
221.12 	in 2018 and thereafter.

221.13 	Sec. 6. Minnesota Statutes 2016, section 290C.04, is amended to read:
221.14 	290C.04 APPLICATIONS.
221.15 	(a) A landowner may apply to enroll forest land for the sustainable forest incentive 
221.16 	program under this chapter. The claimant must complete, sign, and submit an application 
221.17 	to the commissioner by September 30 October 31 in order for the land to become eligible 
221.18 	beginning in the next year. The application shall be on a form prescribed by the commissioner
221.19 	commissioners of revenue and natural resources and must include the information the 
221.20 	commissioner deems commissioners deem necessary. At a minimum, the application must 
221.21 	show the following information for the land and the claimant: (i) the claimant's Social 
221.22 	Security number or state or federal business tax registration number and date of birth, (ii) 
221.23 	the claimant's address, (iii) the claimant's signature, (iv) the county's parcel identification 
221.24 	numbers for the tax parcels that completely contain the claimant's forest land that is sought 
221.25 	to be enrolled, (v) the number of acres eligible for enrollment in the program, (vi) the 
221.26 	approved plan writer's signature and identification number, and (vii) proof, in a form specified 
221.27 	by the commissioner, that the claimant has executed and acknowledged in the manner 
221.28 	required by law for a deed, and recorded, a covenant that the land is not and shall not be 
221.29 	developed in a manner inconsistent with the requirements and conditions of this chapter, 
221.30 	and (viii) a registration number for the forest management plan, issued by the commissioner 
221.31 	of natural resources. The covenant shall state in writing that the covenant is binding on the 
221.32 	claimant and the claimant's successor or assignee, and that it runs with the land for a period 
221.33 	of not less than eight years unless the claimant requests termination of the covenant after a 
222.1 	reduction in payments due to changes in the payment formula under section 290C.07 or as 
222.2 	a result of executive action, the amount of payment a claimant is eligible to receive under 
222.3 	section 290C.07 is reduced or limited. The commissioner shall specify the form of the 
222.4 	covenant and provide copies upon request. The covenant must include a legal description 
222.5 	that encompasses all the forest land that the claimant wishes to enroll under this section or 
222.6 	the certificate of title number for that land if it is registered land. The commissioner of 
222.7 	natural resources shall record the area eligible for enrollment into the Sustainable Forest 
222.8 	Incentive Act as electronic geospatial data, as defined in section 16E.30, subdivision 10.
222.9 	(b) The commissioner shall provide by electronic means data sufficient for the 
222.10 	commissioner of natural resources to determine whether the land qualifies for enrollment. 
222.11 	The commissioner must make the data available within 30 days of receipt of the application 
222.12 	filed by the claimant or by October 1, whichever is sooner. The commissioner of natural 
222.13 	resources must notify the commissioner whether the land qualifies for enrollment within 
222.14 	30 days of the data being available, and if the land qualifies for enrollment, the commissioner 
222.15 	of natural resources shall specify the number of qualifying acres per tax parcel.
222.16 	(b) In all cases, (c) The commissioner shall notify the claimant within 90 days after 
222.17 	receipt of a completed application that either the land has or has not been approved for 
222.18 	enrollment. A claimant whose application is denied may appeal the denial as provided in 
222.19 	section 290C.13.
222.20 	(c) (d) Within 90 days after the denial of an application, or within 90 days after the final 
222.21 	resolution of any appeal related to the denial, the commissioner shall execute and 
222.22 	acknowledge a document releasing the land from the covenant required under this chapter. 
222.23 	The document must be mailed to the claimant and is entitled to be recorded.
222.24 	(d) (e) The Social Security numbers collected from individuals under this section are 
222.25 	private data as provided in section 13.355. The federal business tax registration number and 
222.26 	date of birth data collected under this section are also private data on individuals or nonpublic 
222.27 	data, as defined in section 13.02, subdivisions 9 and 12, but may be shared with county 
222.28 	assessors for purposes of tax administration and with county treasurers for purposes of the 
222.29 	revenue recapture under chapter 270A.

222.30 	EFFECTIVE DATE. This section is effective for certifications and applications due 
222.31 	in 2018 and thereafter.

222.32 	Sec. 7. Minnesota Statutes 2016, section 290C.05, is amended to read:
222.33 	290C.05 ANNUAL CERTIFICATION AND MONITORING.
223.1 	(a) On or before July 1 May 15 of each year, beginning with the year after the original 
223.2 	claimant has received an approved application, the commissioner shall send each claimant 
223.3 	enrolled under the sustainable forest incentive program a certification form. For purposes 
223.4 	of this section, the original claimant is the person that filed the first application under section 
223.5 	290C.04 to enroll the land in the program current property owner on record, or the person 
223.6 	designated by the owners in the case of multiple ownership. The claimant must sign and 
223.7 	return the certification, attesting to the commissioner by July 1 of that same year, and (1) 
223.8 	attest that the requirements and conditions for continued enrollment in the program are 
223.9 	currently being met, and must return the signed certification form to the commissioner by 
223.10 	August 15 of that same year (2) provide a report in the form and manner determined by the 
223.11 	commissioner of natural resources describing the management practices that have been 
223.12 	carried out on the enrolled property during the prior year. If the claimant does not return an 
223.13 	annual certification form by the due date, the provisions in section 290C.11 apply. The 
223.14 	commissioner of natural resources must verify that the land meets program requirements.
223.15 	(b) The commissioner must provide the certification form and annual report described 
223.16 	in paragraph (a), clause (2), to the commissioner of natural resources by August 1.
223.17 	(c) The commissioner of natural resources must conduct annual monitoring of a subset 
223.18 	of claimants, excluding land also enrolled in a conservation easement program. Claimants 
223.19 	will be selected for monitoring based on reported violations, annual certification, and random 
223.20 	selections. Monitoring will be conducted on ten percent of claimants as of July 1 of each 
223.21 	year. Monitoring may include, but is not limited to, a site visit by a Department of Natural 
223.22 	Resources or contracted forester. The commissioner of natural resources must develop a 
223.23 	monitoring form to record the monitoring data.

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

223.26 	Sec. 8. Minnesota Statutes 2016, section 290C.055, is amended to read:
223.27 	290C.055 LENGTH OF COVENANT.
223.28 	(a) The covenant remains in effect for a minimum of eight years. Claimants enrolling 
223.29 	any land that is subject to a conservation easement funded under section 97A.056 or a 
223.30 	comparable permanent easement conveyed to a governmental or nonprofit entity must enroll 
223.31 	their land under a covenant with a minimum duration of eight years. All other claimants 
223.32 	may choose to enroll their land under a covenant with a minimum duration of eight, 20, or 
223.33 	50 years. If land is removed the claimant requests removal of land from the program before 
223.34 	it has been enrolled for four years one-half the number of years of the covenant's duration, 
224.1 	the covenant remains in effect for eight years the entire duration of the covenant from the 
224.2 	date recorded.
224.3 	(b) If land that has been enrolled for four years one-half the number of years of the 
224.4 	covenant's minimum duration or more is removed from the program for any reason, there 
224.5 	is a waiting period before the covenant terminates. The covenant terminates on January 1 
224.6 	of the fifth, 11th, or 26th calendar year for the eight-, 20- or 50-year minimum covenant, 
224.7 	respectively, that begins after the date that:
224.8 	(1) the commissioner receives notification from the claimant that the claimant wishes 
224.9 	to remove the land from the program under section 290C.10; or
224.10 	(2) the date that the land is removed from the program under section 290C.11.
224.11 	(c) Notwithstanding the other provisions of this section, the covenant is terminated:
224.12 	(1) at the same time that the land is removed from the program due to acquisition of title 
224.13 	or possession for a public purpose under section 290C.10; or
224.14 	(2) at the request of the claimant after (i) if there is a reduction in payments due to 
224.15 	changes in the payment formula under section 290C.07; or (ii) if, as a result of executive 
224.16 	action, the amount of payment a claimant is eligible to receive under section 290C.07 is 
224.17 	reduced or limited.

224.18 	EFFECTIVE DATE. This section is effective for certifications and applications due 
224.19 	in 2018 and thereafter.

224.20 	Sec. 9. Minnesota Statutes 2016, section 290C.07, is amended to read:
224.21 	290C.07 CALCULATION OF INCENTIVE PAYMENT.
224.22 	(a) An approved claimant under the sustainable forest incentive program is eligible to 
224.23 	receive an annual payment for each acre of enrolled land, excluding any acre improved with 
224.24 	a paved trail under easement, lease, or terminable license to the state of Minnesota or a 
224.25 	political subdivision. The payment shall equal $7 per acre for each acre enrolled in the 
224.26 	sustainable forest incentive program. a percentage of the property tax that would be paid 
224.27 	on the land determined by using the previous year's statewide average total tax rate for all 
224.28 	taxes levied within townships and unorganized territories, the estimated market value per 
224.29 	acre as calculated in section 290C.06, and a class rate of one percent as follows: (1) for 
224.30 	claimants enrolling land that is subject to a conservation easement funded under section 
224.31 	97A.056 or a comparable permanent easement conveyed to a governmental or nonprofit 
224.32 	entity before May 31, 2013, 25 percent; (2) for claimants enrolling land that is not subject 
225.1 	to a conservation easement under an eight-year covenant, 65 percent; (3) for claimants 
225.2 	enrolling land that is not subject to a conservation easement under a 20-year covenant, 90 
225.3 	percent; and (4) for claimants enrolling land that is not subject to a conservation easement 
225.4 	under a 50-year covenant, 115 percent.
225.5 	(b) The calculated payment must not increase or decrease by more than ten percent 
225.6 	relative to the payment received for the previous year. In no case may the payment be less 
225.7 	than the amount paid to the claimant for the land enrolled in the program in 2017. If an 
225.8 	eligible claimant elects to change the length of the covenant on enrolled land on or before 
225.9 	May 15, 2019, the limits under this paragraph do not apply and the claimant must receive 
225.10 	payment in the amount corresponding to the new covenant length as calculated under 
225.11 	paragraph (a).
225.12 	(c) In addition to the payments provided under this section, a claimant enrolling more 
225.13 	than 1,920 acres shall be allowed an additional payment per acre equal to the amount 
225.14 	prescribed in paragraph (a), clause (1), for all acres of enrolled land on which public access 
225.15 	is allowed, as required under section 290C.03, paragraph (a), clause (6), excluding any land 
225.16 	subject to a conservation easement funded under section 97A.056, or a permanent easement 
225.17 	conveyed to a governmental or nonprofit entity that is required to allow for public access 
225.18 	under section 290C.03, paragraph (a), clause (6).

225.19 	EFFECTIVE DATE. This section is effective for calculations made in 2018 and 
225.20 	thereafter.

225.21 	Sec. 10. Minnesota Statutes 2016, section 290C.08, subdivision 1, is amended to read:
225.22 		Subdivision 1.Annual payment. An incentive payment for each acre of enrolled land 
225.23 	will be made annually to each claimant in the amount determined under section 290C.07.
225.24 	By September 15 of each year, the commissioner of natural resources must certify to the 
225.25 	commissioner the lands eligible for payment. The incentive payment shall be paid by the 
225.26 	commissioner on or before October 1 each year based on the certifications due August 15
225.27 	July 1 of that year. Interest at the annual rate determined under section 270C.40 shall be 
225.28 	included with any incentive payment not paid by the later of October 1 of the year the 
225.29 	certification was due, or 45 days after the completed certification was returned or filed if 
225.30 	the commissioner accepts a certification filed after August 15 July 1 of the taxes payable 
225.31 	year as the resolution of an appeal.

225.32 	EFFECTIVE DATE. This section is effective for certifications and applications due 
225.33 	in 2018 and thereafter.

226.1 	Sec. 11. Minnesota Statutes 2016, section 290C.10, is amended to read:
226.2 	290C.10 WITHDRAWAL PROCEDURES.
226.3 	An approved claimant (a) The current owner of land enrolled under the sustainable forest 
226.4 	incentive program for a minimum of four years one-half the number of years of the covenant's 
226.5 	minimum duration may notify the commissioner of the intent to terminate enrollment. Within 
226.6 	90 days of receipt of notice to terminate enrollment, the commissioner shall inform the 
226.7 	claimant in writing, acknowledging receipt of this notice and indicating the effective date 
226.8 	of termination from the sustainable forest incentive program. Termination of enrollment in 
226.9 	the sustainable forest incentive program occurs on January 1 of the fifth calendar year that 
226.10 	begins after following receipt by the commissioner of the termination notice, but no earlier 
226.11 	than January 1 of the fifth, 11th, or 26th calendar year for the eight-, 20-, or 50-year 
226.12 	respective minimum covenant, subject to the applicable covenant duration period under 
226.13 	section 290C.055. After the commissioner issues an effective date of termination, a claimant 
226.14 	wishing to continue the land's enrollment in the sustainable forest incentive program beyond 
226.15 	the termination date must apply for enrollment as prescribed in section 290C.04. A claimant 
226.16 	who withdraws a parcel of land from this program may not reenroll the parcel for a period 
226.17 	of three years. Within 90 days after the termination date, the commissioner shall execute 
226.18 	and acknowledge a document releasing the land from the covenant required under this 
226.19 	chapter. The document must be mailed to the claimant and is entitled to be recorded.
226.20 	(b) Not withstanding paragraph (a), on request of the claimant, the commissioner may 
226.21 	allow early withdrawal from the Sustainable Forest Incentive Act without penalty when the 
226.22 	state of Minnesota, any local government unit, or any other entity which has the power of 
226.23 	eminent domain acquires title or possession to the land for a public purpose notwithstanding 
226.24 	the provisions of this section. In the case of such an eligible acquisition under this paragraph, 
226.25 	the commissioner shall execute and acknowledge a document releasing the land acquired 
226.26 	by the state, local government unit, or other entity from the covenant.
226.27 	(c) Notwithstanding paragraph (a), upon request of the claimant, the commissioner shall 
226.28 	allow early withdrawal from the Sustainable Forest Incentive Act without penalty when a 
226.29 	government or nonprofit entity acquires a permanent conservation easement on the enrolled 
226.30 	property and the conservation easement is at least as restrictive as the covenant required 
226.31 	under section 290C.04. The commissioner of natural resources must notify the commissioner 
226.32 	of lands acquired under this paragraph that are eligible for withdrawal. In the case of an 
226.33 	eligible easement acquisition under this paragraph, the commissioner shall execute and 
226.34 	acknowledge a document releasing the land subject to the easement from the covenant.
227.1 	(d) Notwithstanding paragraph (a), upon request of the claimant, the commissioner shall 
227.2 	allow early withdrawal from the Sustainable Forest Incentive Act without penalty for land 
227.3 	that is subject to fee or easement acquisition or lease to the state of Minnesota or a political 
227.4 	subdivision of the state for the public purpose of a paved trail. The commissioner of natural 
227.5 	resources must notify the commissioner of lands acquired under this paragraph that are 
227.6 	eligible for withdrawal. In the case of an eligible fee or easement acquisition or lease under 
227.7 	this paragraph, the commissioner shall execute and acknowledge a document releasing the 
227.8 	land subject to fee or easement acquisition or lease by the state or political subdivision of 
227.9 	the state.
227.10 	(e) All other enrolled land must remain in the program.

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

227.14 	Sec. 12. [290C.101] TRANSFER OF OWNERSHIP.
227.15 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
227.16 	the meanings given.
227.17 	(b) "New owner" means a prospective purchaser or grantee.
227.18 	(c) "Owner" means a grantor or seller.
227.19 		Subd. 2.Notification to commissioner. (a) An owner must notify the commissioner if 
227.20 	the owner transfers any or all of the owner's land enrolled in the sustainable forest incentive 
227.21 	program to one or more new owners within 60 days of the transfer of title to the property. 
227.22 	The notification must include the legal descriptions of the transferred property, the tax parcel 
227.23 	numbers, and the name and address of the new owner. If transfer of ownership is a result 
227.24 	of the death of the claimant, the provisions of section 290C.12 apply.
227.25 	(b) Upon notification, the commissioner shall inform the new owner of the restrictions 
227.26 	of the covenant required by section 290C.04 and the withdrawal procedures under section 
227.27 	290C.10. In order for the new owner to receive payments pursuant to this chapter, the new 
227.28 	owner must file an application and register a new forest management plan with the 
227.29 	commissioner of natural resources within two years from the date the title of the property 
227.30 	was transferred to remain eligible.
227.31 		Subd. 3.Termination of enrollment. The commissioner will terminate enrollment 
227.32 	according to the procedure in section 290C.10 for failure of the new owner to register a 
227.33 	forest management plan within the time period of subdivision 2, paragraph (b).

228.1 	EFFECTIVE DATE. This section is effective for transfers of ownership after June 30, 
228.2 	2017.

228.3 	Sec. 13. Minnesota Statutes 2016, section 290C.11, is amended to read:
228.4 	290C.11 PENALTIES FOR REMOVAL.
228.5 	(a) If the commissioner determines that land enrolled in the sustainable forest incentive 
228.6 	program is in violation of the conditions for enrollment as specified in section 290C.03, or 
228.7 	upon notification by the commissioner of natural resources that land enrolled is in violation 
228.8 	of the conditions for enrollment, the commissioner shall notify the claimant current owner 
228.9 	of the land of the intent to remove all the tax parcel of the enrolled land where the violation 
228.10 	has occurred from the sustainable forest incentive program. The penalties described under 
228.11 	paragraph (c) apply. The claimant current owner has 60 days to appeal this determination 
228.12 	under the provisions of section 290C.13.
228.13 	(b) If the commissioner determines the land is to be removed from the sustainable forest 
228.14 	incentive program due to the construction or addition of an improvement to the property, 
228.15 	the claimant owner of the tax parcel that is in violation is liable for payment to the 
228.16 	commissioner in the amount equal to; (1) the payments received issued related to the enrolled 
228.17 	tax parcel under this chapter for the previous four-year period number of years the land has 
228.18 	been bound by the covenant, or one-half the covenant length, whichever is less, plus interest; 
228.19 	and (2) 25 percent of the estimated market value of the property as reclassified under section 
228.20 	273.13 due to the structure being on the tax parcel, as determined by the assessor.
228.21 	(c) If the commissioner of natural resources determines that the land is used for purposes 
228.22 	other than forestry purposes, the commissioner of natural resources shall notify the 
228.23 	commissioner of revenue, who shall notify the current owner of the tax parcel that is in 
228.24 	violation that the current owner is liable to the commissioner in an amount equal to: (1) 30 
228.25 	percent of the estimated market value as property reclassified under section 273.13, due to 
228.26 	the change in use, as determined by the assessor; and (2) the payments issued related to the 
228.27 	enrolled tax parcel under this chapter for the number of years the land has been bound by 
228.28 	the covenant, or one-half the covenant length, whichever is less, plus interest.
228.29 	(d) The claimant has 90 days to satisfy the payment for removal of land from the 
228.30 	sustainable forest incentive program under this section. If the penalty is not paid within the 
228.31 	90-day period under this paragraph, the commissioner shall certify the amount to the county 
228.32 	auditor for collection as a part of the general ad valorem real property taxes on the land in 
228.33 	the following taxes payable year.

229.1 	EFFECTIVE DATE. This section is effective for certifications and applications due 
229.2 	in 2018 and thereafter.

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

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

229.11 	Sec. 15. SUSTAINABLE FOREST INCENTIVE ACT; TRANSITION PROVISION.
 229.12 	(a) For lands enrolled in the Sustainable Forest Incentive Act on or before December 
229.13 	31, 2017, the owner of enrolled lands may elect through May 15, 2019, and without penalty, 
229.14 	to change the length of a covenant, if eligible, under Minnesota Statutes, section 290C.055. 
229.15 	The owner of the enrolled land must provide notice to the commissioner of revenue of its 
229.16 	intent to change the length of its covenant.
229.17 	(b) For lands enrolled in the Sustainable Forest Incentive Act on or before December 
229.18 	31, 2017, the owner of enrolled land must comply with the changes made in the act by 
229.19 	certifications due in 2019, as required under Minnesota Statutes, section 290C.05.
229.20 	(c) For lands enrolled in the Sustainable Forest Incentive Act on or before December 
229.21 	31, 2017, the owner may elect through July 1, 2018, and without penalty, to withdraw land 
229.22 	subject to a conservation easement funded under section 97A.056, or a comparable permanent 
229.23 	easement conveyed to a governmental or nonprofit entity, on which public access is not 
229.24 	required, so long as the total acreage of the land withdrawn is 1,920 acres or less. The owner 
229.25 	of the enrolled land must provide notice to the commissioner of revenue of its intent to 
229.26 	withdraw land from the program.

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

229.28 	Sec. 16. ADMINISTRATIVE APPROPRIATION.
 229.29 	$215,000 in fiscal year 2018 and $312,000 in fiscal year 2019 are appropriated from the 
229.30 	general fund to the commissioner of natural resources for administering this article. $312,000 
230.1 	shall be added to the base appropriations to the Department of Natural Resources for fiscal 
230.2 	years 2020 and 2021.

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

230.4 	Sec. 17.  REPEALER.
 230.5 	Minnesota Statutes 2016, section 290C.02, subdivisions 5 and 9, are repealed.

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

230.7 	ARTICLE 11
230.8 	MISCELLANEOUS

230.9 	Section 1. Minnesota Statutes 2016, section 16A.152, subdivision 2, is amended to read:
230.10 		Subd. 2.Additional revenues; priority. (a) If on the basis of a forecast of general fund 
230.11 	revenues and expenditures, the commissioner of management and budget determines that 
230.12 	there will be a positive unrestricted budgetary general fund balance at the close of the 
230.13 	biennium, the commissioner of management and budget must allocate money to the following 
230.14 	accounts and purposes in priority order:
230.15 	(1) the cash flow account established in subdivision 1 until that account reaches 
230.16 	$350,000,000;
230.17 	(2) the budget reserve account established in subdivision 1a until that account reaches 
230.18 	$1,596,522,000;
230.19 	(3) the amount necessary to increase the aid payment schedule for school district aids 
230.20 	and credits payments in section 127A.45 to not more than 90 percent rounded to the nearest 
230.21 	tenth of a percent without exceeding the amount available and with any remaining funds 
230.22 	deposited in the budget reserve; and
230.23 	(4) the amount necessary to restore all or a portion of the net aid reductions under section 
230.24 	127A.441 and to reduce the property tax revenue recognition shift under section 123B.75, 
230.25 	subdivision 5, by the same amount.; and
230.26 	(5) the clean water fund established in section 114D.50 until $22,000,000 has been 
230.27 	transferred into the fund.
230.28 	(b) The amounts necessary to meet the requirements of this section are appropriated 
230.29 	from the general fund within two weeks after the forecast is released or, in the case of 
230.30 	transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations 
230.31 	schedules otherwise established in statute.
231.1 	(c) The commissioner of management and budget shall certify the total dollar amount 
231.2 	of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of education. 
231.3 	The commissioner of education shall increase the aid payment percentage and reduce the 
231.4 	property tax shift percentage by these amounts and apply those reductions to the current 
231.5 	fiscal year and thereafter.
231.6 	(d) Paragraph (a), clause (5), expires after the entire amount of the transfer has been 
231.7 	made.

231.8 	Sec. 2. Minnesota Statutes 2016, section 287.08, is amended to read:
231.9 	287.08 TAX, HOW PAYABLE; RECEIPTS.
231.10 	(a) The tax imposed by sections 287.01 to 287.12 must be paid to the treasurer of any 
231.11 	county in this state in which the real property or some part is located at or before the time 
231.12 	of filing the mortgage for record. The treasurer shall endorse receipt on the mortgage and 
231.13 	the receipt is conclusive proof that the tax has been paid in the amount stated and authorizes 
231.14 	any county recorder or registrar of titles to record the mortgage. Its form, in substance, shall 
231.15 	be "registration tax hereon of ..................... dollars paid." If the mortgage is exempt from 
231.16 	taxation the endorsement shall, in substance, be "exempt from registration tax." In either 
231.17 	case the receipt must be signed by the treasurer. In case the treasurer is unable to determine 
231.18 	whether a claim of exemption should be allowed, the tax must be paid as in the case of a 
231.19 	taxable mortgage. For documents submitted electronically, the endorsements and tax amount 
231.20 	shall be affixed electronically and no signature by the treasurer will be required. The actual 
231.21 	payment method must be arranged in advance between the submitter and the receiving 
231.22 	county.
231.23 	(b) The county treasurer may refund in whole or in part any mortgage registry tax 
231.24 	overpayment if a written application by the taxpayer is submitted to the county treasurer 
231.25 	within 3-1/2 years from the date of the overpayment. If the county has not issued a denial 
231.26 	of the application, the taxpayer may bring an action in Tax Court in the county in which 
231.27 	the tax was paid at any time after the expiration of six months from the time that the 
231.28 	application was submitted. A denial of refund may be appealed within 60 days from the 
231.29 	date of the denial by bringing an action in Tax Court in the county in which the tax was 
231.30 	paid. The action is commenced by the serving of a petition for relief on the county treasurer, 
231.31 	and by filing a copy with the court. The county attorney shall defend the action. The county 
231.32 	treasurer shall notify the treasurer of each county that has or would receive a portion of the 
231.33 	tax as paid.
232.1 	(c) If the county treasurer determines a refund should be paid, or if a refund is ordered 
232.2 	by the court, the county treasurer of each county that actually received a portion of the tax 
232.3 	shall immediately pay a proportionate share of three percent of the refund using any available 
232.4 	county funds. The county treasurer of each county that received, or would have received, 
232.5 	a portion of the tax shall also pay their county's proportionate share of the remaining 97 
232.6 	percent of the court-ordered refund on or before the 20th day of the following month using 
232.7 	solely the mortgage registry tax funds that would be paid to the commissioner of revenue 
232.8 	on that date under section 287.12. If the funds on hand under this procedure are insufficient 
232.9 	to fully fund 97 percent of the court-ordered refund, the county treasurer of the county in 
232.10 	which the action was brought shall file a claim with the commissioner of revenue under 
232.11 	section 16A.48 for the remaining portion of 97 percent of the refund, and shall pay over the 
232.12 	remaining portion upon receipt of a warrant from the state issued pursuant to the claim.
232.13 	(d) When any mortgage covers real property located in more than one county in this 
232.14 	state the total tax must be paid to the treasurer of the county where the mortgage is first 
232.15 	presented for recording, and the payment must be receipted as provided in paragraph (a). 
232.16 	If the principal debt or obligation secured by such a multiple county mortgage exceeds 
232.17 	$10,000,000, the nonstate portion of the tax must be divided and paid over by the county 
232.18 	treasurer receiving it, on or before the 20th day of each month after receipt, to the county 
232.19 	or counties entitled remitted by the county treasurer receiving the tax to the commissioner 
232.20 	of revenue with the state tax due under section 287.12. The commissioner shall determine 
232.21 	the nonstate portion of the tax owed to each county in the ratio that the estimated market 
232.22 	value of the real property covered by the mortgage in each county bears to the estimated 
232.23 	market value of all the real property in this state described in the mortgage. The commissioner 
232.24 	shall pay each county within 60 days of receiving the tax from the county that collected the 
232.25 	tax. In making the division and payment the county treasurer commissioner of revenue shall 
232.26 	send a statement giving the description of the real property described in the mortgage and 
232.27 	the estimated market value of the part located in each county. For this purpose, the treasurer 
232.28 	of any county commissioner of revenue may require the treasurer of any other county to 
232.29 	certify to the former the estimated market value of any tract of real property in any mortgage
232.30 	in the county.
232.31 	(e) The mortgagor must pay the tax imposed by sections 287.01 to 287.12. The mortgagee 
232.32 	may undertake to collect and remit the tax on behalf of the mortgagor. If the mortgagee 
232.33 	collects money from the mortgagor to remit the tax on behalf of the mortgagor, the mortgagee 
232.34 	has a fiduciary duty to remit the tax on behalf of the mortgagor as to the amount of the tax 
233.1 	collected for that purpose and the mortgagor is relieved of any further obligation to pay the 
233.2 	tax as to the amount collected by the mortgagee for this purpose.

233.3 	EFFECTIVE DATE. This section is effective for tax collected after June 30, 2017.

233.4 	Sec. 3. Minnesota Statutes 2016, section 295.53, subdivision 1, as amended by Laws 2017, 
233.5 	chapter 40, article 1, section 102, is amended to read:
233.6 		Subdivision 1.Exemptions. (a) The following payments are excluded from the gross 
233.7 	revenues subject to the hospital, surgical center, or health care provider taxes under sections 
233.8 	295.50 to 295.59:
233.9 	(1) payments received for services provided under the Medicare program, including 
233.10 	payments received from the government, and organizations governed by sections 1833 and 
233.11 	1876 of title XVIII of the federal Social Security Act, United States Code, title 42, section 
233.12 	1395, and enrollee deductibles, coinsurance, and co-payments, whether paid by the Medicare 
233.13 	enrollee or by a Medicare supplemental coverage as defined in section 62A.011, subdivision 
233.14 	3, clause (10), or by Medicaid payments under title XIX of the federal Social Security Act. 
233.15 	Payments for services not covered by Medicare are taxable;
233.16 	(2) payments received for home health care services;
233.17 	(3) payments received from hospitals or surgical centers for goods and services on which 
233.18 	liability for tax is imposed under section 295.52 or the source of funds for the payment is 
233.19 	exempt under clause (1), (7), (10), or (14);
233.20 	(4) payments received from health care providers for goods and services on which 
233.21 	liability for tax is imposed under this chapter or the source of funds for the payment is 
233.22 	exempt under clause (1), (7), (10), or (14);
233.23 	(5) amounts paid for legend drugs, other than nutritional products and blood and blood 
233.24 	components, to a wholesale drug distributor who is subject to tax under section 295.52, 
233.25 	subdivision 3, reduced by reimbursements received for legend drugs otherwise exempt 
233.26 	under this chapter;
233.27 	(6) payments received by a health care provider or the wholly owned subsidiary of a 
233.28 	health care provider for care provided outside Minnesota;
233.29 	(7) payments received from the chemical dependency fund under chapter 254B;
233.30 	(8) payments received in the nature of charitable donations that are not designated for 
233.31 	providing patient services to a specific individual or group;
234.1 	(9) payments received for providing patient services incurred through a formal program 
234.2 	of health care research conducted in conformity with federal regulations governing research 
234.3 	on human subjects. Payments received from patients or from other persons paying on behalf 
234.4 	of the patients are subject to tax;
234.5 	(10) payments received from any governmental agency for services benefiting the public, 
234.6 	not including payments made by the government in its capacity as an employer or insurer 
234.7 	or payments made by the government for services provided under the MinnesotaCare 
234.8 	program or the medical assistance program governed by title XIX of the federal Social 
234.9 	Security Act, United States Code, title 42, sections 1396 to 1396v;
234.10 	(11) government payments received by the commissioner of human services for 
234.11 	state-operated services;
234.12 	(12) payments received by a health care provider for hearing aids and related equipment 
234.13 	or prescription eyewear delivered outside of Minnesota;
234.14 	(13) payments received by an educational institution from student tuition, student activity 
234.15 	fees, health care service fees, government appropriations, donations, or grants, and for 
234.16 	services identified in and provided under an individualized education program as defined 
234.17 	in section 256B.0625 or Code of Federal Regulations, chapter 34, section 300.340(a). Fee 
234.18 	for service payments and payments for extended coverage are taxable;
234.19 	(14) payments received under the federal Employees Health Benefits Act, United States 
234.20 	Code, title 5, section 8909(f), as amended by the Omnibus Reconciliation Act of 1990. 
234.21 	Enrollee deductibles, coinsurance, and co-payments are subject to tax; and
234.22 	(15) payments received under the federal Tricare program, Code of Federal Regulations, 
234.23 	title 32, section 199.17(a)(7). Enrollee deductibles, coinsurance, and co-payments are subject 
234.24 	to tax.
234.25 	(b) Payments received by wholesale drug distributors for legend drugs sold directly to 
234.26 	veterinarians or veterinary bulk purchasing organizations are excluded from the gross 
234.27 	revenues subject to the wholesale drug distributor tax under sections 295.50 to 295.59.
234.28 	(c) Supplemental or enhanced payments authorized under section 256B.19, subdivision 
234.29 	1c, 256B.196, or 256B.197 are excluded from gross revenues subject to the tax under sections 
234.30 	295.50 to 295.59.

234.31 	EFFECTIVE DATE. This section is effective retroactively for gross revenues received 
234.32 	on or after July 1, 2016.

235.1 	Sec. 4. Minnesota Statutes 2016, section 296A.01, subdivision 7, is amended to read:
235.2 		Subd. 7.Aviation gasoline. "Aviation gasoline" means any gasoline that is capable of 
235.3 	use for the purpose of producing or generatingused to produce or generate power for 
235.4 	propelling internal combustion engine aircraft, that meets the specifications in ASTM 
235.5 	specification D910-11, and that either.
235.6 	Aviation gasoline includes any gasoline:
235.7 	(1) is invoiced and billed by a producer, manufacturer, refiner, or blender to a distributor 
235.8 	or dealer, by a distributor to a dealer or consumer, or by a dealer to consumer, as "aviation 
235.9 	gasoline" that meets specifications in ASTM specification D910-16 or any other ASTM 
235.10 	specification as gasoline appropriate for use in producing or generating power for propelling 
235.11 	internal combustion engine aircraft; or
235.12 	(2) whether or not invoiced and billed as provided in clause (1), is received, sold, stored, 
235.13 	or withdrawn from storage by any person, to be used for the purpose of producing or 
235.14 	generating power for propelling internal combustion engine aircraft sold to a dealer of 
235.15 	aviation gasoline for dispensing directly into the fuel tank of an aircraft.

235.16 	EFFECTIVE DATE. This section is effective the day following final enactment except 
235.17 	that the change to clause (2) is effective for sales and purchases made after June 30, 2017.

235.18 	Sec. 5. Minnesota Statutes 2016, section 296A.01, subdivision 12, is amended to read:
235.19 		Subd. 12.Compressed natural gas or CNG. "Compressed natural gas" or "CNG" 
235.20 	means natural gas, primarily methane, condensed under high pressure and stored in specially 
235.21 	designed storage tanks at between 2,000 and 3,600 pounds per square inch. For purposes 
235.22 	of this chapter, the energy content of CNG is considered to be 1,000 900 BTUs per cubic 
235.23 	foot.

235.24 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
235.25 	30, 2017.

235.26 	Sec. 6. Minnesota Statutes 2016, section 296A.01, is amended by adding a subdivision to 
235.27 	read:
235.28 		Subd. 13a.Dealer of aviation gasoline. "Dealer of aviation gasoline" means any person 
235.29 	who sells gasoline on the premises of an airport as defined under section 360.013, subdivision 
235.30 	39, to be dispensed directly into the fuel tank of an aircraft.

236.1 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
236.2 	30, 2017.

236.3 	Sec. 7. Minnesota Statutes 2016, section 296A.07, subdivision 4, is amended to read:
236.4 		Subd. 4.Exemptions. The provisions of subdivision 1 do not apply to gasoline or 
236.5 	denatured ethanol purchased by:
236.6 	(1) a transit system or transit provider receiving financial assistance or reimbursement 
236.7 	under section 174.24, 256B.0625, subdivision 17, or 473.384;
236.8 	(2) providers of transportation to recipients of medical assistance home and 
236.9 	community-based services waivers enrolled in day programs, including adult day care, 
236.10 	family adult day care, day treatment and habilitation, prevocational services, and structured 
236.11 	day services;
236.12 	(3) an ambulance service licensed under chapter 144E;
236.13 	(4) providers of medical or dental services by a federally qualified health center, as 
236.14 	defined under title 19 of the Social Security Act, as amended by Section 4161 of the Omnibus 
236.15 	Budget Reconciliation Act of 1990, with a motor vehicle used exclusively as a mobile 
236.16 	medical unit; or
236.17 	(5) a licensed distributor to be delivered to a terminal for use in blending; or
236.18 	(6) a dealer of aviation gasoline, but only to the extent that the gasoline is intended to 
236.19 	be dispensed directly into the fuel tank of an aircraft.

236.20 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
236.21 	30, 2017.

236.22 	Sec. 8. Minnesota Statutes 2016, section 296A.08, subdivision 2, is amended to read:
236.23 		Subd. 2.Rate of tax. The special fuel excise tax is imposed at the following rates:
236.24 	(a) Liquefied petroleum gas or propane is taxed at the rate of 18.75 cents per gallon.
236.25 	(b) Liquefied natural gas is taxed at the rate of 15 cents per gallon.
236.26 	(c) Compressed natural gas is taxed at the rate of $2.174 $1.974 per thousand cubic feet; 
236.27 	or 25 cents per gasoline equivalent. For purposes of this paragraph, "gasoline equivalent," 
236.28 	as defined by the National Conference on Weights and Measures, is 5.66 pounds of natural 
236.29 	gas or 126.67 cubic feet.
237.1 	(d) All other special fuel is taxed at the same rate as the gasoline excise tax as specified 
237.2 	in section 296A.07, subdivision 2. The tax is payable in the form and manner prescribed 
237.3 	by the commissioner.

237.4 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
237.5 	30, 2017.

237.6 	Sec. 9. Minnesota Statutes 2016, section 296A.15, subdivision 1, is amended to read:
237.7 		Subdivision 1.Monthly gasoline report; shrinkage allowance. (a) Except as provided 
237.8 	in paragraph (e), on or before the 23rd day of each month, every person who is required to 
237.9 	pay a gasoline tax shall file with the commissioner a report, in the form and manner 
237.10 	prescribed by the commissioner, showing the number of gallons of petroleum products 
237.11 	received by the reporter during the preceding calendar month, and other information the 
237.12 	commissioner may require. A written report is deemed to have been filed as required in this 
237.13 	subdivision if postmarked on or before the 23rd day of the month in which the tax is payable.
237.14 	(b) The number of gallons of gasoline must be reported in United States standard liquid 
237.15 	gallons, 231 cubic inches, except that the commissioner may upon written application and 
237.16 	for cause shown permit the distributor to report the number of gallons of gasoline as corrected 
237.17 	to a temperature of 60-degrees Fahrenheit. If the application is granted, all gasoline covered 
237.18 	in the application and allowed by the commissioner must continue to be reported by the 
237.19 	distributor on the adjusted basis for a period of one year from the date of the granting of 
237.20 	the application. The number of gallons of petroleum products other than gasoline must be 
237.21 	reported as originally invoiced. Each report must show separately the number of gallons of 
237.22 	aviation gasoline received by the reporter during each calendar month and the number of 
237.23 	gallons of gasoline sold to a dealer of aviation gasoline during each calendar month.
237.24 	(c) Each report must also include the amount of gasoline tax on gasoline received by 
237.25 	the reporter during the preceding month. In computing the tax a deduction of 2.5 percent 
237.26 	of the quantity of gasoline received by a distributor shall be made for evaporation and loss. 
237.27 	At the time of reporting, the reporter shall submit satisfactory evidence that one-third of the 
237.28 	2.5 percent deduction has been credited or paid to dealers on quantities sold to them.
237.29 	(d) Each report shall contain a confession of judgment for the amount of the tax shown 
237.30 	due to the extent not timely paid.
237.31 	(e) Under certain circumstances and with the approval of the commissioner, taxpayers 
237.32 	may be allowed to file reports annually.

238.1 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
238.2 	30, 2017.

238.3 	Sec. 10. Minnesota Statutes 2016, section 296A.15, subdivision 4, is amended to read:
238.4 		Subd. 4.Failure to use or sell for intended purpose; report required. (a) Any person 
238.5 	who buys aviation gasoline, including from a dealer of aviation gasoline, or special fuel for 
238.6 	aircraft use, and who has paid the excise taxes due directly or indirectly through the amount 
238.7 	of the tax being included in the price, or otherwise, and uses said gasoline or special fuel 
238.8 	in motor vehicles or knowingly sells it to any person for use in motor vehicles shall, on or 
238.9 	before the 23rd day of the month following that in which such gasoline or special fuel was 
238.10 	so used or sold, report the fact of the use or sale to the commissioner in the form and manner 
238.11 	prescribed by the commissioner.
238.12 	(b) Any person who buys gasoline other than aviation gasoline and who has paid the 
238.13 	motor vehicle gasoline excise tax directly or indirectly through the amount of the tax being 
238.14 	included in the price of the gasoline, or otherwise, who knowingly sells such gasoline to 
238.15 	any person to be used for the purpose of producing or generating power for propelling 
238.16 	aircraft, or who receives, stores, or withdraws from storage gasoline to be used for that 
238.17 	purpose, shall, on or before the 23rd day of the month following that in which such gasoline 
238.18 	was so sold, stored, or withdrawn from storage, report the fact of the sale, storage, or 
238.19 	withdrawal from storage to the commissioner in the form and manner prescribed by the 
238.20 	commissioner.

238.21 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
238.22 	30, 2017.

238.23 	Sec. 11. Minnesota Statutes 2016, section 296A.17, subdivision 3, is amended to read:
238.24 		Subd. 3.Refund on graduated basis. Any person who has directly or indirectly paid 
238.25 	the excise tax on aviation gasoline or special fuel for aircraft use provided for by this chapter 
238.26 	and has either paid the airflight property tax under section 270.072 or is an aerial applicator 
238.27 	with a category B, general aerial license, under section 18B.33, shall, as to all such aviation 
238.28 	gasoline and special fuel received, stored, or withdrawn from storage by the person in this 
238.29 	state in any calendar year and not sold or otherwise disposed of to others, or intended for 
238.30 	sale or other disposition to others, on which such tax has been so paid, be entitled to the 
238.31 	following graduated reductions in such tax for that calendar year, to be obtained by means 
238.32 	of the following refunds:
239.1 	(1) on each gallon of such aviation gasoline or special fuel up to 50,000 gallons, all but 
239.2 	five cents per gallon;
239.3 	(2) on each gallon of such aviation gasoline or special fuel above 50,000 gallons and 
239.4 	not more than 150,000 gallons, all but two cents per gallon;
239.5 	(3) on each gallon of such aviation gasoline or special fuel above 150,000 gallons and 
239.6 	not more than 200,000 gallons, all but one cent per gallon;
239.7 	(4) on each gallon of such aviation gasoline or special fuel above 200,000, all but one-half 
239.8 	cent per gallon.

239.9 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
239.10 	30, 2017.

239.11 	Sec. 12. Minnesota Statutes 2016, section 296A.19, subdivision 1, is amended to read:
239.12 		Subdivision 1.Retention. All distributors, dealers, special fuel dealers, bulk purchasers,
239.13 	dealers of aviation gasoline, and all users of special fuel shall keep a true and accurate record 
239.14 	of all purchases, transfers, sales, and use of petroleum products and special fuel, including 
239.15 	copies of all sales tickets issued, in a form and manner approved by the commissioner, and 
239.16 	shall retain all such records for 3-1/2 years.

239.17 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
239.18 	30, 2017.

239.19 	Sec. 13. Minnesota Statutes 2016, section 297G.03, is amended by adding a subdivision 
239.20 	to read:
239.21 		Subd. 6.Small winery credit. (a) A qualified winery producing wine or cider is entitled 
239.22 	to a tax credit equal to the excise tax due under subdivision 1, paragraphs (b) to (g), on the 
239.23 	wine or cider sold in any fiscal year beginning July 1. A qualified winery may take the credit 
239.24 	on the 18th day of each month, but the total credit allowed may not exceed, in any fiscal 
239.25 	year, the lesser of:
239.26 	(1) the liability for tax; or
239.27 	(2) $136,275.
239.28 	(b) For purposes of this subdivision, "qualified winery" means a winery, whether or not 
239.29 	located in this state, that manufactured fewer than 75,000 gallons of wine and cider in the 
239.30 	calendar year immediately preceding the fiscal year for which the credit under this 
239.31 	subdivision is claimed.
240.1 	(c) By February 15 of each year, beginning in 2019, the commissioner of revenue shall 
240.2 	provide a report to the chairs and ranking minority members of the legislative committees 
240.3 	having jurisdiction over taxes that includes the following information for the previous fiscal 
240.4 	year, regarding the credit authorized under this subdivision:
240.5 	(1) the total amount of the tax expenditure for the credit, including the amount of credits 
240.6 	claimed by Minnesota small wineries and out-of-state small wineries; and
240.7 	(2) the number of claimants for the credit, including the number of Minnesota small 
240.8 	wineries and the number of out-of-state small wineries.

240.9 	EFFECTIVE DATE. This section is effective for tax due on sales of wine or cider 
240.10 	made after December 31, 2017.

240.11 	Sec. 14. Minnesota Statutes 2016, section 297H.04, subdivision 2, is amended to read:
240.12 		Subd. 2.Rate. (a) Commercial generators that generate nonmixed municipal solid waste 
240.13 	shall pay a solid waste management tax of 60 cents per noncompacted cubic yard of periodic 
240.14 	waste collection capacity purchased by the generator, based on the size of the container for 
240.15 	the nonmixed municipal solid waste, the actual volume, or the weight-to-volume conversion 
240.16 	schedule in paragraph (c). However, the tax must be calculated by the waste management 
240.17 	service provider using the same method for calculating the waste management service fee 
240.18 	so that both are calculated according to container capacity, actual volume, or weight.
240.19 	(b) Notwithstanding section 297H.02, a residential generator that generates nonmixed 
240.20 	municipal solid waste shall pay a solid waste management tax in the same manner as provided 
240.21 	in paragraph (a).
240.22 	(c) The weight-to-volume conversion schedule for:
240.23 	(1) construction debris as defined in section 115A.03, subdivision 7, is one ton equals 
240.24 	3.33 cubic yards, or $2 per ton equal to 60 cents per cubic yard. The commissioner of 
240.25 	revenue, after consultation with the commissioner of the Pollution Control Agency, shall 
240.26 	determine and may publish by notice a conversion schedule for construction debris;
240.27 	(2) industrial waste as defined in section 115A.03, subdivision 13a, is equal to 60 cents 
240.28 	per cubic yard. The commissioner of revenue after consultation with the commissioner of 
240.29 	the Pollution Control Agency, shall determine, and may publish by notice, a conversion 
240.30 	schedule for various industrial wastes; and
241.1 	(3) infectious waste as defined in section 116.76, subdivision 12, and pathological waste 
241.2 	as defined in section 116.76, subdivision 14, is 150 pounds equals one cubic yard, or 60 
241.3 	cents per 150 pounds.

241.4 	EFFECTIVE DATE. This section is effective for sales and purchases made after June 
241.5 	30, 2017.

241.6 	Sec. 15. Minnesota Statutes 2016, section 298.227, is amended to read:
241.7 	298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
241.8 	(a) An amount equal to that distributed pursuant to each taconite producer's taxable 
241.9 	production and qualifying sales under section 298.28, subdivision 9a, shall be held by the 
241.10 	Iron Range Resources and Rehabilitation Board in a separate taconite economic development 
241.11 	fund for each taconite and direct reduced ore producer. Money from the fund for each 
241.12 	producer shall be released by the commissioner after review by a joint committee consisting 
241.13 	of an equal number of representatives of the salaried employees and the nonsalaried 
241.14 	production and maintenance employees of that producer. The District 11 director of the 
241.15 	United States Steelworkers of America, on advice of each local employee president, shall 
241.16 	select the employee members. In nonorganized operations, the employee committee shall 
241.17 	be elected by the nonsalaried production and maintenance employees. The review must be 
241.18 	completed no later than six months after the producer presents a proposal for expenditure 
241.19 	of the funds to the committee. The funds held pursuant to this section may be released only 
241.20 	for workforce development and associated public facility improvement, concurrent 
241.21 	reclamation, or for acquisition of plant and stationary mining equipment and facilities for 
241.22 	the producer or for research and development in Minnesota on new mining, or taconite, 
241.23 	iron, or steel production technology, but only if the producer provides a matching expenditure 
241.24 	equal to the amount of the distribution to be used for the same purpose beginning with 
241.25 	distributions in 2014. Effective for proposals for expenditures of money from the fund 
241.26 	beginning May 26, 2007, the commissioner may not release the funds before the next 
241.27 	scheduled meeting of the board. If a proposed expenditure is not approved by the board, 
241.28 	the funds must be deposited in the Taconite Environmental Protection Fund under sections 
241.29 	298.222 to 298.225. If a producer uses money which has been released from the fund prior 
241.30 	to May 26, 2007 to procure haulage trucks, mobile equipment, or mining shovels, and the 
241.31 	producer removes the piece of equipment from the taconite tax relief area defined in section 
241.32 	273.134 within ten years from the date of receipt of the money from the fund, a portion of 
241.33 	the money granted from the fund must be repaid to the taconite economic development 
241.34 	fund. The portion of the money to be repaid is 100 percent of the grant if the equipment is 
242.1 	removed from the taconite tax relief area within 12 months after receipt of the money from 
242.2 	the fund, declining by ten percent for each of the subsequent nine years during which the 
242.3 	equipment remains within the taconite tax relief area. If a taconite production facility is sold 
242.4 	after operations at the facility had ceased, any money remaining in the fund for the former 
242.5 	producer may be released to the purchaser of the facility on the terms otherwise applicable 
242.6 	to the former producer under this section. If a producer fails to provide matching funds for 
242.7 	a proposed expenditure within six months after the commissioner approves release of the 
242.8 	funds, the funds are available for release to another producer in proportion to the distribution 
242.9 	provided and under the conditions of this section. Any portion of the fund which is not 
242.10 	released by the commissioner within one year of its deposit in the fund shall be divided 
242.11 	between the taconite environmental protection fund created in section 298.223 and the 
242.12 	Douglas J. Johnson economic protection trust fund created in section 298.292 for placement 
242.13 	in their respective special accounts. Two-thirds of the unreleased funds shall be distributed 
242.14 	to the taconite environmental protection fund and one-third to the Douglas J. Johnson 
242.15 	economic protection trust fund.
242.16 	(b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of 
242.17 	distributions and the review process, an amount equal to ten cents per taxable ton of 
242.18 	production in 2007, for distribution in 2008 only, that would otherwise be distributed under 
242.19 	paragraph (a), may be used for a loan or grant for the cost of providing for a value-added 
242.20 	wood product facility located in the taconite tax relief area and in a county that contains a 
242.21 	city of the first class. This amount must be deducted from the distribution under paragraph 
242.22 	(a) for which a matching expenditure by the producer is not required. The granting of the 
242.23 	loan or grant is subject to approval by the board. If the money is provided as a loan, interest 
242.24 	must be payable on the loan at the rate prescribed in section 298.2213, subdivision 3. (ii) 
242.25 	Repayments of the loan and interest, if any, must be deposited in the taconite environment 
242.26 	protection fund under sections 298.222 to 298.225. If a loan or grant is not made under this 
242.27 	paragraph by July 1, 2012, the amount that had been made available for the loan under this 
242.28 	paragraph must be transferred to the taconite environment protection fund under sections 
242.29 	298.222 to 298.225. (iii) Money distributed in 2008 to the fund established under this section 
242.30 	that exceeds ten cents per ton is available to qualifying producers under paragraph (a) on a 
242.31 	pro rata basis.
242.32 	(c) Repayment or transfer of money to the taconite environmental protection fund under 
242.33 	paragraph (b), item (ii), must be allocated by the Iron Range Resources and Rehabilitation 
242.34 	Board for public works projects in house legislative districts in the same proportion as 
242.35 	taxable tonnage of production in 2007 in each house legislative district, for distribution in 
243.1 	2008, bears to total taxable tonnage of production in 2007, for distribution in 2008. 
243.2 	Notwithstanding any other law to the contrary, expenditures under this paragraph do not 
243.3 	require approval by the governor. For purposes of this paragraph, "house legislative districts" 
243.4 	means the legislative districts in existence on May 15, 2009.

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

243.6 	Sec. 16. [473.1467] NO SPENDING FOR CERTAIN RAIL PROJECTS.
243.7 	(a) Except as provided in paragraph (b), the council must not spend or use any money 
243.8 	for any costs related to studying the feasibility of, planning for, designing, engineering, 
243.9 	acquiring property or constructing facilities for or related to, or development or operation 
243.10 	of intercity or interregional passenger rail facilities or operations between the city of 
243.11 	Rochester or locations in its metropolitan area and any location in the metropolitan area, as 
243.12 	defined in section 473.121, subdivision 2.
243.13 	(b) The restrictions under this section do not apply to:
243.14 	(1) funds the council obtains from contributions, grants, or other voluntary payments 
243.15 	made by nongovernmental entities from private sources; or
243.16 	(2) expenditures made after enactment of a law that explicitly adds the intercity or 
243.17 	interregional passenger rail project for which the expenditures are made to the statewide 
243.18 	freight and passenger rail plan under section 174.03, subdivision 1b.

243.19 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
243.20 	final enactment and applies in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, 
243.21 	Scott, and Washington.

243.22 	Sec. 17. Laws 2010, chapter 216, section 58, as amended by Laws 2010, chapter 347, 
243.23 	article 7, section 1, and Laws 2010, chapter 389, article 7, section 20, is amended to read:
243.24 	Sec. 58. 2010 DISTRIBUTIONS ONLY.
 243.25 	For distributions in 2010 only, a special fund is established to receive the sum of the 
243.26 	following amounts that otherwise would be allocated under Minnesota Statutes, section 
243.27 	298.28, subdivision 6. The following amounts are allocated to St. Louis County acting as 
243.28 	the fiscal agent for the recipients for the specific purposes:
243.29 	(1) 0.764 cent per ton must be paid to Northern Minnesota Dental to provide incentives 
243.30 	for at least two dentists to establish dental practices in high-need areas of the taconite tax 
243.31 	relief area;
244.1 	(2) 0.955 cent per ton must be paid to the city of Virginia for repairs and geothermal 
244.2 	heat at the Olcott Park Greenhouse/Virginia Commons project;
244.3 	(3) 0.796 cent per ton must be paid to the city of Virginia for health and safety repairs 
244.4 	at the Miners Memorial;
244.5 	(4) 1.114 cents per ton must be paid to the city of Eveleth for the reconstruction of 
244.6 	Highway 142/Grant and Park Avenues;
244.7 	(5) 0.478 cent per ton must be paid to the Greenway Joint Recreation Board for upgrades 
244.8 	and capital improvements to the public arena in Coleraine;
244.9 	(6) 0.796 cent per ton must be paid to the city of Calumet for water treatment and 
244.10 	pumphouse modifications;
244.11 	(7) 0.159 cent per ton must be paid to the city of Bovey for residential and commercial 
244.12 	claims for water damage due to water and flood-related damage caused by the Canisteo Pit;
244.13 	(8) 0.637 cent per ton must be paid to the city of Nashwauk for a community and child 
244.14 	care center;
244.15 	(9) 0.637 cent per ton must be paid to the city of Keewatin for water and sewer upgrades;
244.16 	(10) 0.637 cent per ton must be paid to the city of Marble for the city hall and library 
244.17 	project;
244.18 	(11) 0.955 cent per ton must be paid to the city of Grand Rapids for extension of water 
244.19 	and sewer services for Lakewood Housing;
244.20 	(12) 0.159 cent per ton must be paid to the city of Grand Rapids for exhibits at the 
244.21 	Children's Museum;
244.22 	(13) 0.637 cent per ton must be paid to the city of Grand Rapids for Block 20/21 soil 
244.23 	corrections. This amount must be matched by local sources;
244.24 	(14) 0.605 cent per ton must be paid to the city of Aitkin for three water loops;
244.25 	(15) 0.048 cent per ton must be paid to the city of Aitkin for signage;
244.26 	(16) 0.159 cent per ton must be paid to Aitkin County for a trail;
244.27 	(17) 0.637 cent per ton must be paid to the city of Cohasset for the Beiers Road railroad 
244.28 	crossing;
244.29 	(18) 0.088 cent per ton must be paid to the town of Clinton for expansion and striping 
244.30 	of the community center parking lot;
245.1 	(19) 0.398 cent per ton must be paid to the city of Kinney for water line replacement;
245.2 	(20) 0.796 cent per ton must be paid to the city of Gilbert for infrastructure improvements, 
245.3 	milling, and overlay for Summit Street between Alaska Avenue and Highway 135;
245.4 	(21) 0.318 cent per ton must be paid to the city of Gilbert for sanitary sewer main 
245.5 	replacements and improvements in the Northeast Lower Alley area;
245.6 	(22) 0.637 cent per ton must be paid to the town of White for replacement of the Stepetz 
245.7 	Road culvert;
245.8 	(23) 0.796 cent per ton must be paid to the city of Buhl for reconstruction of Sharon 
245.9 	Street and associated infrastructure;
245.10 	(24) 0.796 cent per ton must be paid to the city of Mountain Iron for site improvements 
245.11 	at the Park Ridge development;
245.12 	(25) 0.796 cent per ton must be paid to the city of Mountain Iron for infrastructure and 
245.13 	site preparation for its renewable and sustainable energy park;
245.14 	(26) 0.637 cent per ton must be paid to the city of Biwabik for sanitary sewer 
245.15 	improvements;
245.16 	(27) 0.796 cent per ton must be paid to the city of Aurora for alley and road rebuilding 
245.17 	for the Summit Addition;
245.18 	(28) 0.955 cent per ton must be paid to the city of Silver Bay for bioenergy facility 
245.19 	improvements;
245.20 	(29) 0.318 cent per ton must be paid to the city of Grand Marais for water and sewer 
245.21 	infrastructure improvements;
245.22 	(30) 0.318 cent per ton must be paid to the city of Orr for airport, water, and sewer 
245.23 	improvements;
245.24 	(31) 0.716 cent per ton must be paid to the city of Cook for street and bridge 
245.25 	improvements and land purchase, provided that if the city sells or otherwise disposes of any 
245.26 	of the land purchased with the money provided under this clause within a period of ten five
245.27 	years after it was purchased, the city must transfer a portion of the proceeds of the sale equal 
245.28 	to the amount of the purchase price paid from the money provided under this clause to the 
245.29 	commissioner of Iron Range Resources and Rehabilitation for deposit in the taconite 
245.30 	environmental protection fund to be used for the purposes of the fund under Minnesota 
245.31 	Statutes, section 298.223;
246.1 	(32) 0.955 cent per ton must be paid to the city of Ely for street, water, and sewer 
246.2 	improvements;
246.3 	(33) 0.318 cent per ton must be paid to the city of Tower for water and sewer 
246.4 	improvements;
246.5 	(34) 0.955 cent per ton must be paid to the city of Two Harbors for water and sewer 
246.6 	improvements;
246.7 	(35) 0.637 cent per ton must be paid to the city of Babbitt for water and sewer 
246.8 	improvements;
246.9 	(36) 0.096 cent per ton must be paid to the township of Duluth for infrastructure 
246.10 	improvements;
246.11 	(37) 0.096 cent per ton must be paid to the township of Tofte for infrastructure 
246.12 	improvements;
246.13 	(38) 3.184 cents per ton must be paid to the city of Hibbing for sewer improvements;
246.14 	(39) 1.273 cents per ton must be paid to the city of Chisholm for NW Area Project 
246.15 	infrastructure improvements;
246.16 	(40) 0.318 cent per ton must be paid to the city of Chisholm for health and safety 
246.17 	improvements at the athletic facility;
246.18 	(41) 0.796 cent per ton must be paid to the city of Hoyt Lakes for residential street 
246.19 	improvements;
246.20 	(42) 0.796 cent per ton must be paid to the Bois Forte Indian Reservation for infrastructure 
246.21 	related to a housing development;
246.22 	(43) 0.159 cent per ton must be paid to Balkan Township for building improvements;
246.23 	(44) 0.159 cent per ton must be paid to the city of Grand Rapids for a grant to a nonprofit 
246.24 	for a signage kiosk;
246.25 	(45) 0.318 cent per ton must be paid to the city of Crane Lake for sanitary sewer lines 
246.26 	and adjacent development near County State-Aid Highway 24; and
246.27 	(46) 0.159 cent per ton must be paid to the city of Chisholm to rehabilitate historic wall 
246.28 	infrastructure around the athletic complex.

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

247.1 	Sec. 18. CLARIFYING AUTHORITY TO USE PREVIOUSLY DISTRIBUTED 
247.2 	TACONITE TAX PROCEEDS.
 247.3 	The commissioner of Iron Range Resources and Rehabilitation may use any unspent 
247.4 	amounts allocated under Minnesota Statutes 2014, section 298.2961, subdivision 5, clause 
247.5 	(19), remaining as of May 22, 2016, for the specific purposes identified in that section. 
247.6 	Notwithstanding Minnesota Statutes, section 298.28, subdivision 11, paragraph (a), or any 
247.7 	other law to the contrary, interest accrued on this amount shall also be distributed to the 
247.8 	recipient. Amounts under this section are available until expended and do not lapse or cancel 
247.9 	under Minnesota Statutes, section 16A.28.

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

247.11 	Sec. 19. APPROPRIATION CANCELLATION.
 247.12 	All unspent funds, estimated to be $7,100,000, for a grant or forgivable loan to Hoyt 
247.13 	Lakes pursuant to Laws 2014, chapter 312, article 2, section 2, subdivision 6, are canceled 
247.14 	to the Minnesota 21st century fund on June 1, 2017.

247.15 	Sec. 20. APPROPRIATIONS.
 247.16 	In addition to other amounts appropriated, $2,500,000 in fiscal year 2018 and $2,500,000 
247.17 	in fiscal year 2019 are appropriated from the general fund to the commissioner of revenue 
247.18 	to administer this act.

247.19 	Sec. 21. HEALTH CARE ACCESS FUND TRANSFER.
 247.20 	On July 1, 2019, the commissioner of management and budget shall transfer $7,200,000 
247.21 	from the general fund to the health care access fund. This is a onetime transfer.

247.22 	Sec. 22.  REPEALER.
 247.23 	Minnesota Rules, part 8125.1300, subpart 3, is repealed.

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

247.25 	ARTICLE 12
247.26 	DEPARTMENT OF REVENUE 2015-2016 SALES SUPPRESSION PROVISIONS

247.27 	Section 1. [289A.14] USE OF AUTOMATED SALES SUPPRESSION DEVICES; 
247.28 	DEFINITIONS.
248.1 	(a) For the purposes of sections 289A.60, subdivision 32, 289A.63, subdivision 12, and 
248.2 	609.5316, subdivision 3, the following terms have the meanings given.
248.3 	(b) "Automated sales suppression device" or "zapper" means a software program, carried 
248.4 	on any tangible medium, or accessed through any other means, that falsifies the electronic 
248.5 	records of electronic cash registers and other point-of-sale systems including, but not limited 
248.6 	to, transaction data and transaction reports.
248.7 	(c) "Electronic cash register" means a device that keeps a register or supporting documents 
248.8 	through the means of an electronic device or computer system designed to record transaction 
248.9 	data for the purpose of computing, compiling, or processing retail sales transaction data in 
248.10 	whatever manner.
248.11 	(d) "Phantom-ware" means hidden preinstalled or later-installed programming option 
248.12 	embedded in the operating system of an electronic cash register or hardwired into the 
248.13 	electronic cash register that can be used to create a virtual second electronic cash register 
248.14 	or may eliminate or manipulate transaction records that may or may not be preserved in 
248.15 	digital formats to represent the true or manipulated record of transactions in the electronic 
248.16 	cash register.
248.17 	(e) "Transaction data" includes items purchased by a customer, the price of each item, 
248.18 	the taxability determination for each item, a segregated tax amount for each of the taxed 
248.19 	items, the date and time of the purchase, the name, address, and identification number of 
248.20 	the vendor, and the receipt or invoice number of the transaction.
248.21 	(f) "Transaction report" means a report documenting, but not limited to, the sales, taxes 
248.22 	collected, media totals, and discount voids at an electronic cash register that is printed on 
248.23 	cash register tape at the end of a day or shift, or a report documenting every action at an 
248.24 	electronic cash register that is stored electronically.

248.25 	EFFECTIVE DATE. This section is effective for activities enumerated in Minnesota 
248.26 	Statutes, section 289A.63, subdivision 12, or 289A.60, subdivision 32, that occur on or after 
248.27 	August 1, 2017.

248.28 	Sec. 2. Minnesota Statutes 2016, section 289A.60, is amended by adding a subdivision to 
248.29 	read:
248.30 		Subd. 32.Sales suppression. (a) A person who:
248.31 	(1) sells;
248.32 	(2) transfers;
249.1 	(3) develops;
249.2 	(4) manufactures; or
249.3 	(5) possesses with the intent to sell or transfer
249.4 	an automated sales suppression device, zapper, phantom-ware, or similar device capable of 
249.5 	being used to commit tax fraud or suppress sales is liable for a civil penalty calculated under 
249.6 	paragraph (b).
249.7 	(b) The amount of the civil penalty equals the greater of (1) $2,000, or (2) the total 
249.8 	amount of all taxes and penalties due that are attributable to the use of any automated sales 
249.9 	suppression device, zapper, phantom-ware, or similar device facilitated by the sale, transfer, 
249.10 	development, or manufacture of the automated sales suppression device, zapper, 
249.11 	phantom-ware, or similar device by the person.
249.12 	(c) The definitions in section 289A.14 apply to this subdivision.
249.13 	(d) This subdivision does not apply to the commissioner, a person acting at the direction 
249.14 	of the commissioner, an agent of the commissioner, law enforcement agencies, or 
249.15 	postsecondary education institutions that possess an automated sales suppression device, 
249.16 	zapper, or phantom-ware for study to combat the evasion of taxes by use of the automated 
249.17 	sales suppression devices, zappers, or phantom-ware.

249.18 	EFFECTIVE DATE. This section is effective for activities enumerated that occur on 
249.19 	or after August 1, 2017.

249.20 	Sec. 3. Minnesota Statutes 2016, section 289A.63, is amended by adding a subdivision to 
249.21 	read:
249.22 		Subd. 12.Felony. (a) A person who sells, purchases, installs, transfers, develops, 
249.23 	manufactures, or uses an automated sales suppression device, zapper, phantom-ware, or 
249.24 	similar device knowing that the device or phantom-ware is capable of being used to commit 
249.25 	tax fraud or suppress sales is guilty of a felony and may be sentenced to imprisonment for 
249.26 	not more than five years or to a payment of a fine of not more than $10,000, or both.
249.27 	(b) An automated sales suppression device, zapper, phantom-ware, and any other device 
249.28 	containing an automated sales suppression, zapper, or phantom-ware device or software is 
249.29 	contraband and subject to forfeiture under section 609.5316.
249.30 	(c) The definitions in section 289A.14 apply to this subdivision.
249.31 	(d) This subdivision does not apply to the commissioner, a person acting at the direction 
249.32 	of the commissioner, an agent of the commissioner, law enforcement agencies, or 
250.1 	postsecondary education institutions that possess an automated sales suppression device, 
250.2 	zapper, or phantom-ware for study to combat the evasion of taxes by use of the automated 
250.3 	sales suppression devices, zappers, or phantom-ware.

250.4 	EFFECTIVE DATE. This section is effective for activities enumerated that occur on 
250.5 	or after August 1, 2017.

250.6 	Sec. 4. Minnesota Statutes 2016, section 609.5316, subdivision 3, is amended to read:
250.7 		Subd. 3.Weapons, telephone cloning paraphernalia, automated sales suppression 
250.8 	devices, and bullet-resistant vests. Weapons used are contraband and must be summarily 
250.9 	forfeited to the appropriate agency upon conviction of the weapon's owner or possessor for 
250.10 	a controlled substance crime; for any offense of this chapter or chapter 624, or for a violation 
250.11 	of an order for protection under section 518B.01, subdivision 14. Bullet-resistant vests, as 
250.12 	defined in section 609.486, worn or possessed during the commission or attempted 
250.13 	commission of a crime are contraband and must be summarily forfeited to the appropriate 
250.14 	agency upon conviction of the owner or possessor for a controlled substance crime or for 
250.15 	any offense of this chapter. Telephone cloning paraphernalia used in a violation of section 
250.16 	609.894, and automated sales suppression devices, phantom-ware, and other devices 
250.17 	containing an automated sales suppression or phantom-ware device or software used in 
250.18 	violation of section 289A.63, subdivision 12, are contraband and must be summarily forfeited 
250.19 	to the appropriate agency upon a conviction.

250.20 	EFFECTIVE DATE. This section is effective for activities enumerated in Minnesota 
250.21 	Statutes, section 289A.63, subdivision 12, that occur on or after August 1, 2017.

250.22 	ARTICLE 13
250.23 	DEPARTMENT OF REVENUE 2015-2016 POLICY AND TECHNICAL 
250.24 	PROVISIONS; INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES

250.25 	Section 1. Minnesota Statutes 2016, section 289A.08, subdivision 11, is amended to read:
250.26 		Subd. 11.Information included in income tax return. (a) The return must state:
250.27 	(1) the name of the taxpayer, or taxpayers, if the return is a joint return, and the address 
250.28 	of the taxpayer in the same name or names and same address as the taxpayer has used in 
250.29 	making the taxpayer's income tax return to the United States;
250.30 	(2) the date or dates of birth of the taxpayer or taxpayers;
250.31 	(3) the Social Security number of the taxpayer, or taxpayers, if a Social Security number 
250.32 	has been issued by the United States with respect to the taxpayers; and
251.1 	(4) the amount of the taxable income of the taxpayer as it appears on the federal return 
251.2 	for the taxable year to which the Minnesota state return applies.
251.3 	(b) The taxpayer must attach to the taxpayer's Minnesota state income tax return a copy 
251.4 	of the federal income tax return that the taxpayer has filed or is about to file for the period, 
251.5 	unless the taxpayer is eligible to telefile the federal return and does file the Minnesota return 
251.6 	by telefiling.

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

251.8 	Sec. 2. Minnesota Statutes 2016, section 289A.08, subdivision 16, is amended to read:
251.9 		Subd. 16.Tax refund or return preparers; electronic filing; paper filing fee imposed.
 251.10 	(a) A "tax refund or returnpreparer" or "preparer," as defined in section 289A.60, subdivision 
251.11 	13, paragraph (f), 270C.445, subdivision 2, who is a tax return preparer for purposes of 
251.12 	section 6011(e) of the Internal Revenue Code, and who reasonably expects to prepare more 
251.13 	than ten Minnesota individual income, corporate franchise, S corporation, partnership, or 
251.14 	fiduciary income tax returns for the prior calendar year must file all Minnesota individual 
251.15 	income, corporate franchise, S corporation, partnership, or fiduciary income tax returns 
251.16 	prepared for that calendar year by electronic means.
251.17 	(b) Paragraph (a) does not apply to a return if the taxpayer has indicated on the return 
251.18 	that the taxpayer did not want the return filed by electronic means.
251.19 	(c) For each return that is not filed electronically by a tax refund or return preparer or 
251.20 	preparer under this subdivision, including returns filed under paragraph (b), a paper filing 
251.21 	fee of $5 is imposed upon the preparer. The fee is collected from the preparer in the same 
251.22 	manner as income tax. The fee does not apply to returns that the commissioner requires to 
251.23 	be filed in paper form.

251.24 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
251.25 	31, 2016, except the change from the definition of "tax refund or return preparer" to "tax 
251.26 	preparer" or "preparer" is effective for taxable years beginning after December 31, 2017.

251.27 	Sec. 3. Minnesota Statutes 2016, section 289A.09, subdivision 2, is amended to read:
251.28 		Subd. 2.Withholding statement. (a) A person required to deduct and withhold from 
251.29 	an employee a tax under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, or 
251.30 	who would have been required to deduct and withhold a tax under section 290.92, subdivision 
251.31 	2a or 3, or persons required to withhold tax under section 290.923, subdivision 2, determined 
251.32 	without regard to section 290.92, subdivision 19, if the employee or payee had claimed no 
252.1 	more than one withholding exemption, or who paid wages or made payments not subject 
252.2 	to withholding under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, to an 
252.3 	employee or person receiving royalty payments in excess of $600, or who has entered into 
252.4 	a voluntary withholding agreement with a payee under section 290.92, subdivision 20, must 
252.5 	give every employee or person receiving royalty payments in respect to the remuneration 
252.6 	paid by the person to the employee or person receiving royalty payments during the calendar 
252.7 	year, on or before January 31 of the succeeding year, or, if employment is terminated before 
252.8 	the close of the calendar year, within 30 days after the date of receipt of a written request 
252.9 	from the employee if the 30-day period ends before January 31, a written statement showing 
252.10 	the following:
252.11 	(1) name of the person;
252.12 	(2) the name of the employee or payee and the employee's or payee's Social Security 
252.13 	account number;
252.14 	(3) the total amount of wages as that term is defined in section 290.92, subdivision 1, 
252.15 	paragraph (1); the total amount of remuneration subject to withholding under section 290.92, 
252.16 	subdivision 20; the amount of sick pay as required under section 6051(f) of the Internal 
252.17 	Revenue Code; and the amount of royalties subject to withholding under section 290.923, 
252.18 	subdivision 2; and
252.19 	(4) the total amount deducted and withheld as tax under section 290.92, subdivision 2a
252.20 	or 3, or 290.923, subdivision 2.
252.21 	(b) The statement required to be furnished by paragraph (a) with respect to any 
252.22 	remuneration must be furnished at those times, must contain the information required, and 
252.23 	must be in the form the commissioner prescribes.
252.24 	(c) The commissioner may prescribe rules providing for reasonable extensions of time, 
252.25 	not in excess of 30 days, to employers or payers required to give the statements to their 
252.26 	employees or payees under this subdivision.
252.27 	(d) A duplicate of any statement made under this subdivision and in accordance with 
252.28 	rules prescribed by the commissioner, along with a reconciliation in the form the 
252.29 	commissioner prescribes of the statements for the calendar year, including a reconciliation 
252.30 	of the quarterly returns required to be filed under subdivision 1, must be filed with the 
252.31 	commissioner on or before February 28 January 31 of the year after the payments were 
252.32 	made.
253.1 	(e) If an employer cancels the employer's Minnesota withholding account number required 
253.2 	by section 290.92, subdivision 24, the information required by paragraph (d), must be filed 
253.3 	with the commissioner within 30 days of the end of the quarter in which the employer 
253.4 	cancels its account number.
253.5 	(f) The employer must submit the statements required to be sent to the commissioner in 
253.6 	the same manner required to satisfy the federal reporting requirements of section 6011(e) 
253.7 	of the Internal Revenue Code and the regulations issued under it. An employer must submit 
253.8 	statements to the commissioner required by this section by electronic means if the employer 
253.9 	is required to send more than 25 statements to the commissioner, even though the employer 
253.10 	is not required to submit the returns federally by electronic means. For statements issued 
253.11 	for wages paid in 2011 and after, the threshold is ten. All statements issued for withholding 
253.12 	required under section 290.92 are aggregated for purposes of determining whether the 
253.13 	electronic submission threshold is met. The commissioner shall prescribe the content, format, 
253.14 	and manner of the statement pursuant to section 270C.30.
253.15 	(g) A "third-party bulk filer" as defined in section 290.92, subdivision 30, paragraph 
253.16 	(a), clause (2), must submit the returns required by this subdivision and subdivision 1, 
253.17 	paragraph (a), with the commissioner by electronic means.

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

253.21 	Sec. 4. Minnesota Statutes 2016, section 289A.12, subdivision 14, is amended to read:
253.22 		Subd. 14.Regulated investment companies; Reporting exempt interest and
253.23 	exempt-interest dividends. (a) A regulated investment company paying $10 or more in 
253.24 	exempt-interest dividends to an individual who is a resident of Minnesota, or any person 
253.25 	receiving $10 or more of exempt interest or exempt-interest dividends and paying as nominee 
253.26 	to an individual who is a resident of Minnesota, must make a return indicating the amount 
253.27 	of the exempt interest or exempt-interest dividends, the name, address, and Social Security 
253.28 	number of the recipient, and any other information that the commissioner specifies. The 
253.29 	return must be provided to the shareholder recipient by February 15 of the year following 
253.30 	the year of the payment. The return provided to the shareholder recipient must include a 
253.31 	clear statement, in the form prescribed by the commissioner, that the exempt interest or
253.32 	exempt-interest dividends must be included in the computation of Minnesota taxable income. 
253.33 	By June 1 of each year, the regulated investment company payer must file a copy of the 
253.34 	return with the commissioner.
254.1 	(b) For purposes of this subdivision, the following definitions apply.
254.2 	(1) "Exempt-interest dividends" mean exempt-interest dividends as defined in section 
254.3 	852(b)(5) of the Internal Revenue Code, but does not include the portion of exempt-interest 
254.4 	dividends that are not required to be added to federal taxable income under section 290.0131, 
254.5 	subdivision 2, paragraph (b).
254.6 	(2) "Regulated investment company" means regulated investment company as defined 
254.7 	in section 851(a) of the Internal Revenue Code or a fund of the regulated investment company 
254.8 	as defined in section 851(g) of the Internal Revenue Code.
254.9 	(3) "Exempt interest" means income on obligations of any state other than Minnesota, 
254.10 	or a political or governmental subdivision, municipality, or governmental agency or 
254.11 	instrumentality of any state other than Minnesota, and exempt from federal income taxes 
254.12 	under the Internal Revenue Code or any other federal statute.

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

254.15 	Sec. 5. Minnesota Statutes 2016, section 289A.18, is amended by adding a subdivision to 
254.16 	read:
254.17 		Subd. 2a.Annual withholding returns; eligible employers. (a) An employer who 
254.18 	deducts and withholds an amount required to be withheld by section 290.92 may file an 
254.19 	annual return and make an annual payment of the amount required to be deducted and 
254.20 	withheld for that calendar year if the employer has received a notification under paragraph 
254.21 	(b). The ability to elect to file an annual return continues through the year following the 
254.22 	year where an employer is required to deduct and withhold more than $500.
254.23 	(b) The commissioner is authorized to determine which employers are eligible to file 
254.24 	an annual return and to notify employers who newly qualify to file an annual return because 
254.25 	the amount an employer is required to deduct and withhold for that calendar year is $500 
254.26 	or less based on the most recent period of four consecutive quarters for which the 
254.27 	commissioner has compiled data on that employer's withholding tax for that period. At the 
254.28 	time of notification, eligible employers may still decide to file returns and make deposits 
254.29 	quarterly. An employer who decides to file returns and make deposits quarterly is required 
254.30 	to make all returns and deposits required by this chapter and, notwithstanding paragraph 
254.31 	(a), is subject to all applicable penalties for failing to do so.
254.32 	(c) If, at the end of any calendar month other than the last month of the calendar year, 
254.33 	the aggregate amount of undeposited tax withheld by an employer who has elected to file 
255.1 	an annual return exceeds $500, the employer must deposit the aggregate amount with the 
255.2 	commissioner within 30 days of the end of the calendar month.
255.3 	(d) If an employer who has elected to file an annual return ceases to pay wages for which 
255.4 	withholding is required, the employer must file a final return and deposit any undeposited 
255.5 	tax within 30 days of the end of the calendar month following the month in which the 
255.6 	employer ceased paying wages.
255.7 	(e) An employer not subject to paragraph (c) or (d) who elects to file an annual return 
255.8 	must file the return and pay the tax not previously deposited before February 1 of the year 
255.9 	following the year in which the tax was withheld.
255.10 	(f) A notification to an employer regarding eligibility to file an annual return under 
255.11 	Minnesota Rules, part 8092.1400, is considered a notification under paragraph (a).

255.12 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
255.13 	31, 2016.

255.14 	Sec. 6. Minnesota Statutes 2016, section 289A.20, subdivision 2, is amended to read:
255.15 		Subd. 2.Withholding from wages, entertainer withholding, withholding from 
255.16 	payments to out-of-state contractors, and withholding by partnerships, small business 
255.17 	corporations, trusts. (a) Except as provided in section 289A.18, subdivision 2a, a tax 
255.18 	required to be deducted and withheld during the quarterly period must be paid on or before 
255.19 	the last day of the month following the close of the quarterly period, unless an earlier time 
255.20 	for payment is provided. A tax required to be deducted and withheld from compensation 
255.21 	of an entertainer and from a payment to an out-of-state contractor must be paid on or before 
255.22 	the date the return for such tax must be filed under section 289A.18, subdivision 2. Taxes 
255.23 	required to be deducted and withheld by partnerships, S corporations, and trusts must be 
255.24 	paid on a quarterly basis as estimated taxes under section 289A.25 for partnerships and 
255.25 	trusts and under section 289A.26 for S corporations.
255.26 	(b) An employer who, during the previous quarter, withheld more than $1,500 of tax 
255.27 	under section 290.92, subdivision 2a or 3, or 290.923, subdivision 2, must deposit tax 
255.28 	withheld under those sections with the commissioner within the time allowed to deposit the 
255.29 	employer's federal withheld employment taxes under Code of Federal Regulations, title 26, 
255.30 	section 31.6302-1, as amended through December 31, 2001, without regard to the safe 
255.31 	harbor or de minimis rules in paragraph (f) or the one-day rule in paragraph (c)(3). Taxpayers 
255.32 	must submit a copy of their federal notice of deposit status to the commissioner upon request 
255.33 	by the commissioner.
256.1 	(c) The commissioner may prescribe by rule other return periods or deposit requirements. 
256.2 	In prescribing the reporting period, the commissioner may classify payors according to the 
256.3 	amount of their tax liability and may adopt an appropriate reporting period for the class that 
256.4 	the commissioner judges to be consistent with efficient tax collection. In no event will the 
256.5 	duration of the reporting period be more than one year.
256.6 	(d) If less than the correct amount of tax is paid to the commissioner, proper adjustments 
256.7 	with respect to both the tax and the amount to be deducted must be made, without interest, 
256.8 	in the manner and at the times the commissioner prescribes. If the underpayment cannot be 
256.9 	adjusted, the amount of the underpayment will be assessed and collected in the manner and 
256.10 	at the times the commissioner prescribes.
256.11 	(e) If the aggregate amount of the tax withheld is $10,000 or more in a fiscal year ending 
256.12 	June 30, the employer must remit each required deposit for wages paid in all subsequent 
256.13 	calendar years by electronic means.
256.14 	(f) A third-party bulk filer as defined in section 290.92, subdivision 30, paragraph (a), 
256.15 	clause (2), who remits withholding deposits must remit all deposits by electronic means as 
256.16 	provided in paragraph (e), regardless of the aggregate amount of tax withheld during a fiscal 
256.17 	year for all of the employers.

256.18 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
256.19 	31, 2016.

256.20 	Sec. 7. Minnesota Statutes 2016, section 289A.31, subdivision 1, is amended to read:
256.21 		Subdivision 1.Individual income, fiduciary income, mining company, corporate 
256.22 	franchise, and entertainment taxes. (a) Individual income, fiduciary income, mining 
256.23 	company, and corporate franchise taxes, and interest and penalties, must be paid by the 
256.24 	taxpayer upon whom the tax is imposed, except in the following cases:
256.25 	(1) The tax due from a decedent for that part of the taxable year in which the decedent 
256.26 	died during which the decedent was alive and the taxes, interest, and penalty due for the 
256.27 	prior years must be paid by the decedent's personal representative, if any. If there is no 
256.28 	personal representative, the taxes, interest, and penalty must be paid by the transferees, as 
256.29 	defined in section 270C.58, subdivision 3, to the extent they receive property from the 
256.30 	decedent;
256.31 	(2) The tax due from an infant or other incompetent person must be paid by the person's 
256.32 	guardian or other person authorized or permitted by law to act for the person;
257.1 	(3) The tax due from the estate of a decedent must be paid by the estate's personal 
257.2 	representative;
257.3 	(4) The tax due from a trust, including those within the definition of a corporation, as 
257.4 	defined in section 290.01, subdivision 4, must be paid by a trustee; and
257.5 	(5) The tax due from a taxpayer whose business or property is in charge of a receiver, 
257.6 	trustee in bankruptcy, assignee, or other conservator, must be paid by the person in charge 
257.7 	of the business or property so far as the tax is due to the income from the business or property.
257.8 	(b) Entertainment taxes are the joint and several liability of the entertainer and the 
257.9 	entertainment entity. The payor is liable to the state for the payment of the tax required to 
257.10 	be deducted and withheld under section 290.9201, subdivision 7, and is not liable to the 
257.11 	entertainer for the amount of the payment.
257.12 	(c) The tax taxes imposed under section sections 289A.35 and290.0922 on partnerships 
257.13 	is are the joint and several liability of the partnership and the general partners.

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

257.15 	Sec. 8. Minnesota Statutes 2016, section 289A.35, is amended to read:
257.16 	289A.35 ASSESSMENTS ON RETURNS.
257.17 	(a) The commissioner may audit and adjust the taxpayer's computation of federal taxable 
257.18 	income, items of federal tax preferences, or federal credit amounts to make them conform 
257.19 	with the provisions of chapter 290 or section 298.01. If a return has been filed, the 
257.20 	commissioner shall enter the liability reported on the return and may make any audit or 
257.21 	investigation that is considered necessary.
257.22 	(b) Upon petition by a taxpayer, and when the commissioner determines that it is in the 
257.23 	best interest of the state, the commissioner may allow S corporations and partnerships to 
257.24 	receive orders of assessment issued under section 270C.33, subdivision 4, on behalf of their 
257.25 	owners, and to pay liabilities shown on such orders. In such cases, the owners' liability must 
257.26 	be calculated using the method provided in section 289A.08, subdivision 7, paragraph (b).
257.27 	(c) A taxpayer may petition the commissioner for the use of the method described in 
257.28 	paragraph (b) after the taxpayer is notified that an audit has been initiated and before an 
257.29 	order of assessment has been issued.
257.30 	(d) A determination of the commissioner under paragraph (b) to grant or deny the petition 
257.31 	of a taxpayer cannot be appealed to the Tax Court or any other court.
258.1 	(b) (e) The commissioner may audit and adjust the taxpayer's computation of tax under 
258.2 	chapter 291. In the case of a return filed pursuant to section 289A.10, the commissioner 
258.3 	shall notify the estate no later than nine months after the filing date, as provided by section 
258.4 	289A.38, subdivision 2, whether the return is under examination or the return has been 
258.5 	processed as filed.

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

258.7 	Sec. 9. Minnesota Statutes 2016, section 290.0672, subdivision 1, is amended to read:
258.8 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
258.9 	the meanings given.
258.10 	(b) "Long-term care insurance" means a policy that:
258.11 	(1) qualifies for a deduction under section 213 of the Internal Revenue Code, disregarding 
258.12 	the 7.5 percent adjusted gross income test; or meets the requirements given in section 62A.46; 
258.13 	or provides similar coverage issued under the laws of another jurisdiction; and
258.14 	(2) has a lifetime long-term care benefit limit of not less than $100,000; and
258.15 	(3) has been offered in compliance with the inflation protection requirements of section 
258.16 	62S.23.
258.17 	(c) "Qualified beneficiary" means the taxpayer or the taxpayer's spouse.
258.18 	(d) "Premiums deducted in determining federal taxable income" means the lesser of (1) 
258.19 	long-term care insurance premiums that qualify as deductions under section 213 of the 
258.20 	Internal Revenue Code; and (2) the total amount deductible for medical care under section 
258.21 	213 of the Internal Revenue Code.

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

258.24 	Sec. 10. Minnesota Statutes 2016, section 290.068, subdivision 2, is amended to read:
258.25 		Subd. 2.Definitions. For purposes of this section, the following terms have the meanings 
258.26 	given.
258.27 	(a) "Qualified research expenses" means (i) qualified research expenses and basic research 
258.28 	payments as defined in section 41(b) and (e) of the Internal Revenue Code, except it does 
258.29 	not include expenses incurred for qualified research or basic research conducted outside 
258.30 	the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue Code; and 
258.31 	(ii) contributions to a nonprofit corporation established and operated pursuant to the 
259.1 	provisions of chapter 317A for the purpose of promoting the establishment and expansion 
259.2 	of business in this state, provided the contributions are invested by the nonprofit corporation 
259.3 	for the purpose of providing funds for small, technologically innovative enterprises in 
259.4 	Minnesota during the early stages of their development.
259.5 	(b) "Qualified research" means qualified research as defined in section 41(d) of the 
259.6 	Internal Revenue Code, except that the term does not include qualified research conducted 
259.7 	outside the state of Minnesota.
259.8 	(c) "Base amount" means base amount as defined in section 41(c) of the Internal Revenue 
259.9 	Code, except that the average annual gross receipts and aggregate gross receipts must be 
259.10 	calculated using Minnesota sales or receipts under section 290.191 and the definitions 
259.11 	contained in clauses paragraphs (a) and (b) shall apply.

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

259.13 	Sec. 11. Minnesota Statutes 2016, section 290.17, subdivision 2, is amended to read:
259.14 		Subd. 2.Income not derived from conduct of a trade or business. The income of a 
259.15 	taxpayer subject to the allocation rules that is not derived from the conduct of a trade or 
259.16 	business must be assigned in accordance with paragraphs (a) to (f):
259.17 	(a)(1) Subject to paragraphs (a)(2) and (a)(3), income from wages as defined in section 
259.18 	3401(a) and (f) of the Internal Revenue Code is assigned to this state if, and to the extent 
259.19 	that, the work of the employee is performed within it; all other income from such sources 
259.20 	is treated as income from sources without this state.
259.21 	Severance pay shall be considered income from labor or personal or professional services.
259.22 	(2) In the case of an individual who is a nonresident of Minnesota and who is an athlete 
259.23 	or entertainer, income from compensation for labor or personal services performed within 
259.24 	this state shall be determined in the following manner:
259.25 	(i) The amount of income to be assigned to Minnesota for an individual who is a 
259.26 	nonresident salaried athletic team employee shall be determined by using a fraction in which 
259.27 	the denominator contains the total number of days in which the individual is under a duty 
259.28 	to perform for the employer, and the numerator is the total number of those days spent in 
259.29 	Minnesota. For purposes of this paragraph, off-season training activities, unless conducted 
259.30 	at the team's facilities as part of a team imposed program, are not included in the total number 
259.31 	of duty days. Bonuses earned as a result of play during the regular season or for participation 
259.32 	in championship, play-off, or all-star games must be allocated under the formula. Signing 
259.33 	bonuses are not subject to allocation under the formula if they are not conditional on playing 
260.1 	any games for the team, are payable separately from any other compensation, and are 
260.2 	nonrefundable; and
260.3 	(ii) The amount of income to be assigned to Minnesota for an individual who is a 
260.4 	nonresident, and who is an athlete or entertainer not listed in clause (i), for that person's 
260.5 	athletic or entertainment performance in Minnesota shall be determined by assigning to this 
260.6 	state all income from performances or athletic contests in this state.
260.7 	(3) For purposes of this section, amounts received by a nonresident as "retirement income" 
260.8 	as defined in section (b)(1) of the State Income Taxation of Pension Income Act, Public 
260.9 	Law 104-95, are not considered income derived from carrying on a trade or business or 
260.10 	from wages or other compensation for work an employee performed in Minnesota, and are 
260.11 	not taxable under this chapter.
260.12 	(b) Income or gains from tangible property located in this state that is not employed in 
260.13 	the business of the recipient of the income or gains must be assigned to this state.
260.14 	(c) Income or gains from intangible personal property not employed in the business of 
260.15 	the recipient of the income or gains must be assigned to this state if the recipient of the 
260.16 	income or gains is a resident of this state or is a resident trust or estate.
260.17 	Gain on the sale of a partnership interest is allocable to this state in the ratio of the 
260.18 	original cost of partnership tangible property in this state to the original cost of partnership 
260.19 	tangible property everywhere, determined at the time of the sale. If more than 50 percent 
260.20 	of the value of the partnership's assets consists of intangibles, gain or loss from the sale of 
260.21 	the partnership interest is allocated to this state in accordance with the sales factor of the 
260.22 	partnership for its first full tax period immediately preceding the tax period of the partnership 
260.23 	during which the partnership interest was sold.
260.24 	Gain on the sale of an interest in a single member limited liability company that is 
260.25 	disregarded for federal income tax purposes is allocable to this state as if the single member 
260.26 	limited liability company did not exist and the assets of the limited liability company are 
260.27 	personally owned by the sole member.
260.28 	Gain on the sale of goodwill or income from a covenant not to compete that is connected 
260.29 	with a business operating all or partially in Minnesota is allocated to this state to the extent 
260.30 	that the income from the business in the year preceding the year of sale was assignable
260.31 	allocable to Minnesota under subdivision 3.
260.32 	When an employer pays an employee for a covenant not to compete, the income allocated 
260.33 	to this state is in the ratio of the employee's service in Minnesota in the calendar year 
261.1 	preceding leaving the employment of the employer over the total services performed by the 
261.2 	employee for the employer in that year.
261.3 	(d) Income from winnings on a bet made by an individual while in Minnesota is assigned 
261.4 	to this state. In this paragraph, "bet" has the meaning given in section 609.75, subdivision 
261.5 	2, as limited by section 609.75, subdivision 3, clauses (1), (2), and (3).
261.6 	(e) All items of gross income not covered in paragraphs (a) to (d) and not part of the 
261.7 	taxpayer's income from a trade or business shall be assigned to the taxpayer's domicile.
261.8 	(f) For the purposes of this section, working as an employee shall not be considered to 
261.9 	be conducting a trade or business.

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

261.11 	Sec. 12. Minnesota Statutes 2016, section 290.31, subdivision 1, is amended to read:
261.12 		Subdivision 1.Partners, not partnership, subject to tax. Except as provided under 
261.13 	section 289A.35, paragraph (b), a partnership as such shall not be subject to the income tax 
261.14 	imposed by this chapter, but is subject to the tax imposed under section 290.0922. Persons 
261.15 	carrying on business as partners shall be liable for income tax only in their separate or 
261.16 	individual capacities.

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

261.18 	Sec. 13. Minnesota Statutes 2016, section 290A.19, is amended to read:
261.19 	290A.19 OWNER OR MANAGING AGENT TO FURNISH RENT CERTIFICATE.
261.20 	(a) The owner or managing agent of any property for which rent is paid for occupancy 
261.21 	as a homestead must furnish a certificate of rent paid to a person who is a renter on December 
261.22 	31, in the form prescribed by the commissioner. If the renter moves before December 31, 
261.23 	the owner or managing agent may give the certificate to the renter at the time of moving, 
261.24 	or mail the certificate to the forwarding address if an address has been provided by the 
261.25 	renter. The certificate must be made available to the renter before February 1 of the year 
261.26 	following the year in which the rent was paid. The owner or managing agent must retain a 
261.27 	duplicate of each certificate or an equivalent record showing the same information for a 
261.28 	period of three years. The duplicate or other record must be made available to the 
261.29 	commissioner upon request.
261.30 	(b) The commissioner may require the owner or managing agent, through a simple 
261.31 	process, to furnish to the commissioner on or before March 1 a copy of each certificate of 
262.1 	rent paid furnished to a renter for rent paid in the prior year, in the content, format, and 
262.2 	manner prescribed by the commissioner pursuant to section 270C.30. Prior to implementation, 
262.3 	the commissioner, after consulting with representatives of owners or managing agents, shall 
262.4 	develop an implementation and administration plan for the requirements of this paragraph 
262.5 	that attempts to minimize financial burdens, administration and compliance costs, and takes 
262.6 	into consideration existing systems of owners and managing agents.
262.7 	(c) For the purposes of this section, "owner" includes a park owner as defined under 
262.8 	section 327C.01, subdivision 6, and "property" includes a lot as defined under section 
262.9 	327C.01, subdivision 3.

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

262.12 	Sec. 14. Minnesota Statutes 2016, section 291.016, subdivision 2, is amended to read:
262.13 		Subd. 2.Additions. The following amounts, to the extent deducted in computing or 
262.14 	otherwise excluded from the federal taxable estate, must be added in computing the 
262.15 	Minnesota taxable estate:
262.16 	(1) the amount of the deduction for state death taxes allowed under section 2058 of the 
262.17 	Internal Revenue Code;
262.18 	(2) the amount of the deduction for foreign death taxes allowed under section 2053(d) 
262.19 	of the Internal Revenue Code; and
262.20 	(3) the aggregate amount of taxable gifts as defined in section 2503 of the Internal 
262.21 	Revenue Code, made by the decedent within three years of the date of death. For purposes 
262.22 	of this clause, the amount of the addition equals the value of the gift under section 2512 of 
262.23 	the Internal Revenue Code and excludes any value of the gift included in the federal estate.

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

262.26 	Sec. 15. Minnesota Statutes 2016, section 291.03, subdivision 9, is amended to read:
262.27 		Subd. 9.Qualified small business property. Property satisfying all of the following 
262.28 	requirements is qualified small business property:
262.29 	(1) The value of the property was included in the federal adjusted taxable estate.
262.30 	(2) The property consists of the assets of a trade or business or shares of stock or other 
262.31 	ownership interests in a corporation or other entity engaged in a trade or business. Shares 
263.1 	of stock in a corporation or an ownership interest in another type of entity do not qualify 
263.2 	under this subdivision if the shares or ownership interests are traded on a public stock 
263.3 	exchange at any time during the three-year period ending on the decedent's date of death. 
263.4 	For purposes of this subdivision, an ownership interest includes the interest the decedent is 
263.5 	deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code.
263.6 	(3) During the taxable year that ended before the decedent's death, the trade or business 
263.7 	must not have been a passive activity within the meaning of section 469(c) of the Internal 
263.8 	Revenue Code, and the decedent or the decedent's spouse must have materially participated 
263.9 	in the trade or business within the meaning of section 469(h) of the Internal Revenue Code, 
263.10 	excluding section 469(h)(3) of the Internal Revenue Code and any other provision provided 
263.11 	by United States Treasury Department regulation that substitutes material participation in 
263.12 	prior taxable years for material participation in the taxable year that ended before the 
263.13 	decedent's death.
263.14 	(4) The gross annual sales of the trade or business were $10,000,000 or less for the last 
263.15 	taxable year that ended before the date of the death of the decedent.
263.16 	(5) The property does not consist of include:
263.17 	(i) cash,;
263.18 	(ii) cash equivalents,;
263.19 	(iii) publicly traded securities,; or
263.20 	(iv) any assets not used in the operation of the trade or business.
263.21 	(6) For property consisting of shares of stock or other ownership interests in an entity, 
263.22 	the value of cash, cash equivalents, publicly traded securities, or assets not used in the 
263.23 	operation of the trade or business held by the corporation or other entity items described in 
263.24 	clause (5) must be deducted from the value of the property qualifying under this subdivision 
263.25 	in proportion to the decedent's share of ownership of the entity on the date of death excluded 
263.26 	in the valuation of the decedent's interest in the entity.
263.27 	(6) (7) The decedent continuously owned the property, including property the decedent 
263.28 	is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code, for 
263.29 	the three-year period ending on the date of death of the decedent. In the case of a sole 
263.30 	proprietor, if the property replaced similar property within the three-year period, the 
263.31 	replacement property will be treated as having been owned for the three-year period ending 
263.32 	on the date of death of the decedent.
264.1 	(7) (8) For three years following the date of death of the decedent, the trade or business 
264.2 	is not a passive activity within the meaning of section 469(c) of the Internal Revenue Code, 
264.3 	and a family member materially participates in the operation of the trade or business within 
264.4 	the meaning of section 469(h) of the Internal Revenue Code, excluding section 469(h)(3) 
264.5 	of the Internal Revenue Code and any other provision provided by United States Treasury 
264.6 	Department regulation that substitutes material participation in prior taxable years for 
264.7 	material participation in the three years following the date of death of the decedent.
264.8 	(8) (9) The estate and the qualified heir elect to treat the property as qualified small 
264.9 	business property and agree, in the form prescribed by the commissioner, to pay the recapture 
264.10 	tax under subdivision 11, if applicable.

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

264.13 	Sec. 16. Minnesota Statutes 2016, section 291.03, subdivision 11, is amended to read:
264.14 		Subd. 11.Recapture tax. (a) If, within three years after the decedent's death and before 
264.15 	the death of the qualified heir, the qualified heir disposes of any interest in the qualified 
264.16 	property, other than by a disposition to a family member, or a family member ceases to 
264.17 	satisfy the requirement under subdivision 9, clause (7); or 10, clause (5), an additional estate 
264.18 	tax is imposed on the property. In the case of a sole proprietor, if the qualified heir replaces 
264.19 	qualified small business property excluded under subdivision 9 with similar property, then 
264.20 	the qualified heir will not be treated as having disposed of an interest in the qualified property.
264.21 	(b) The amount of the additional tax equals the amount of the exclusion claimed by the 
264.22 	estate under subdivision 8, paragraph (d), multiplied by 16 percent.
264.23 	(c) The additional tax under this subdivision is due on the day which is six months after 
264.24 	the date of the disposition or cessation in paragraph (a).
264.25 	(d) This subdivision shall not apply as a result of any of the following:
264.26 	(1) a portion of qualified farm property consisting of less than one-fifth of the acreage 
264.27 	of the property is reclassified as class 2b property under section 273.13, subdivision 23, and 
264.28 	the qualified heir has not substantially altered the reclassified property during the three-year 
264.29 	holding period; or
264.30 	(2) a portion of qualified farm property classified as 2a property at the death of the 
264.31 	decedent pursuant to section 273.13, subdivision 23, paragraph (a), consisting of a residence, 
264.32 	garage, and immediately surrounding one acre of land is reclassified as 4bb property during 
264.33 	the three-year holding period, and the qualified heir has not substantially altered the property.

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

265.3 	Sec. 17.  REPEALER.
 265.4 	(a) Minnesota Rules, part 8092.1400, is repealed.
265.5 	(b) Minnesota Rules, part 8092.2000, is repealed.

265.6 	EFFECTIVE DATE. Paragraph (a) is effective for taxable years beginning after 
265.7 	December 31, 2016, except that notifications from the Department of Revenue to employers 
265.8 	regarding eligibility to file an annual return for taxes withheld in calendar year 2017 remain 
265.9 	in force. Paragraph (b) is effective the day following final enactment.

265.10 	ARTICLE 14
265.11 	DEPARTMENT OF REVENUE 2015-2016 POLICY AND TECHNICAL 
265.12 	PROVISIONS; SPECIAL TAXES AND SALES AND USE TAXES

265.13 	Section 1. Minnesota Statutes 2016, section 69.021, subdivision 5, is amended to read:
265.14 		Subd. 5.Calculation of state aid. (a) The amount of fire state aid available for 
265.15 	apportionment, before the addition of the minimum fire state aid allocation amount under 
265.16 	subdivision 7, is equal to 107 percent of the amount of premium taxes paid to the state upon 
265.17 	the fire, lightning, sprinkler leakage, and extended coverage premiums reported to the 
265.18 	commissioner by insurers on the Minnesota Firetown Premium Report. This amount must 
265.19 	be reduced by the amount required to pay the state auditor's costs and expenses of the audits 
265.20 	or exams of the firefighters relief associations.
265.21 	The total amount for apportionment in respect to fire state aid must not be less than two 
265.22 	percent of the premiums reported to the commissioner by insurers on the Minnesota Firetown 
265.23 	Premium Report after subtracting the following amounts:
265.24 	(1) the amount required to pay the state auditor's costs and expenses of the audits or 
265.25 	exams of the firefighters relief associations; and
265.26 	(2) one percent of the premiums reported by town and farmers' township mutual insurance 
265.27 	companies and mutual property and casualty companies with total assets of $5,000,000 or 
265.28 	less.
265.29 	(b) The total amount for apportionment as police state aid is equal to 104 percent of the 
265.30 	amount of premium taxes paid to the state on the premiums reported to the commissioner 
265.31 	by insurers on the Minnesota Aid to Police Premium Report. The total amount for 
265.32 	apportionment in respect to the police state aid program must not be less than two percent 
266.1 	of the amount of premiums reported to the commissioner by insurers on the Minnesota Aid 
266.2 	to Police Premium Report.
266.3 	(c) The commissioner shall calculate the percentage of increase or decrease reflected in 
266.4 	the apportionment over or under the previous year's available state aid using the same 
266.5 	premiums as a basis for comparison.
266.6 	(d) In addition to the amount for apportionment of police state aid under paragraph (b), 
266.7 	each year $100,000 must be apportioned for police state aid. An amount sufficient to pay 
266.8 	this increase is annually appropriated from the general fund.

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

266.10 	Sec. 2. Minnesota Statutes 2016, section 289A.38, subdivision 6, is amended to read:
266.11 		Subd. 6.Omission in excess of 25 percent. Additional taxes may be assessed within 
266.12 	6-1/2 years after the due date of the return or the date the return was filed, whichever is 
266.13 	later, if:
266.14 	(1) the taxpayer omits from gross income an amount properly includable in it that is in 
266.15 	excess of 25 percent of the amount of gross income stated in the return;
266.16 	(2) the taxpayer omits from a sales, use, or withholding tax return, or a return for a tax 
266.17 	imposed under section 295.52, an amount of taxes in excess of 25 percent of the taxes 
266.18 	reported in the return; or
266.19 	(3) the taxpayer omits from the gross estate assets in excess of 25 percent of the gross 
266.20 	estate reported in the return.

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

266.22 	Sec. 3. Minnesota Statutes 2016, section 290.0922, subdivision 2, is amended to read:
266.23 		Subd. 2.Exemptions. The following entities are exempt from the tax imposed by this 
266.24 	section:
266.25 	(1) corporations exempt from tax under section 290.05;
266.26 	(2) real estate investment trusts;
266.27 	(3) regulated investment companies or a fund thereof; and
266.28 	(4) entities having a valid election in effect under section 860D(b) of the Internal Revenue 
266.29 	Code;
266.30 	(5) town and farmers' township mutual insurance companies;
267.1 	(6) cooperatives organized under chapter 308A or 308B that provide housing exclusively 
267.2 	to persons age 55 and over and are classified as homesteads under section 273.124, 
267.3 	subdivision 3; and
267.4 	(7) a qualified business as defined under section 469.310, subdivision 11, if for the 
267.5 	taxable year all of its property is located in a job opportunity building zone designated under 
267.6 	section 469.314 and all of its payroll is a job opportunity building zone payroll under section 
267.7 	469.310.
267.8 	Entities not specifically exempted by this subdivision are subject to tax under this section, 
267.9 	notwithstanding section 290.05.

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

267.11 	Sec. 4. Minnesota Statutes 2016, section 295.54, subdivision 2, is amended to read:
267.12 		Subd. 2.Pharmacy refund. A pharmacy may claim an annual refund against the total 
267.13 	amount of tax, if any, the pharmacy owes during that calendar year under section 295.52, 
267.14 	subdivision 4. The refund shall equal the amount paid by the pharmacy to a wholesale drug 
267.15 	distributor subject to tax under section 295.52, subdivision 3, for legend drugs delivered by 
267.16 	the pharmacy outside of Minnesota, multiplied by the tax percentage specified in section 
267.17 	295.52, subdivision 3. If the amount of the refund exceeds the tax liability of the pharmacy 
267.18 	under section 295.52, subdivision 4, the commissioner shall provide the pharmacy with a 
267.19 	refund equal to the excess amount. Each qualifying pharmacy must apply for the refund on 
267.20 	the annual return as provided under section 295.55, subdivision 5 prescribed by the 
267.21 	commissioner, on or before March 15 of the year following the calendar year the legend 
267.22 	drugs were delivered outside Minnesota. The refund must be claimed within 18 months 
267.23 	from the date the drugs were delivered outside of Minnesota shall not be allowed if the 
267.24 	initial claim for refund is filed more than one year after the original due date of the return. 
267.25 	Interest on refunds paid under this subdivision will begin to accrue 60 days after the date a 
267.26 	claim for refund is filed. For purposes of this subdivision, the date a claim is filed is the due 
267.27 	date of the return if a return is due or the date of the actual claim for refund, whichever is 
267.28 	later.

267.29 	EFFECTIVE DATE. This section is effective for qualifying legend drugs delivered 
267.30 	outside Minnesota after December 31, 2016.

268.1 	Sec. 5. Minnesota Statutes 2016, section 296A.01, is amended by adding a subdivision to 
268.2 	read:
268.3 		Subd. 9a.Bulk storage or bulk storage facility. "Bulk storage" or "bulk storage facility" 
268.4 	means a single property, or contiguous or adjacent properties used for a common purpose 
268.5 	and owned or operated by the same person, on or in which are located one or more stationary 
268.6 	tanks that are used singularly or in combination for the storage or containment of more than 
268.7 	1,100 gallons of petroleum.

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

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

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

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

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

268.17 	Sec. 8. Minnesota Statutes 2016, section 296A.07, subdivision 1, is amended to read:
268.18 		Subdivision 1.Tax imposed. There is imposed an excise tax on gasoline, gasoline 
268.19 	blended with ethanol, and agricultural alcohol gasoline used in producing and generating 
268.20 	power for propelling motor vehicles used on the public highways of this state. The tax is 
268.21 	imposed on the first licensed distributor who received the product in Minnesota. For purposes 
268.22 	of this section, gasoline is defined in section 296A.01, subdivisions 8b, 10, 18, 20, 23, 24, 
268.23 	25, 32, and 34. The tax is payable at the time and in the form and manner prescribed by the 
268.24 	commissioner. The tax is payable at the rates specified in subdivision 3, subject to the 
268.25 	exceptions and reductions specified in section 296A.17.

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

268.27 	Sec. 9. Minnesota Statutes 2016, section 297A.82, subdivision 4, is amended to read:
268.28 		Subd. 4.Exemptions. (a) The following transactions are exempt from the tax imposed 
268.29 	in this chapter to the extent provided.
269.1 	(b) The purchase or use of aircraft previously registered in Minnesota by a corporation 
269.2 	or partnership is exempt if the transfer constitutes a transfer within the meaning of section 
269.3 	351 or 721 of the Internal Revenue Code.
269.4 	(c) The sale to or purchase, storage, use, or consumption by a licensed aircraft dealer of 
269.5 	an aircraft for which a commercial use permit has been issued pursuant to section 360.654
269.6 	is exempt, if the aircraft is resold while the permit is in effect.
269.7 	(d) Air flight equipment when sold to, or purchased, stored, used, or consumed by airline 
269.8 	companies, as defined in section 270.071, subdivision 4, is exempt. For purposes of this 
269.9 	subdivision, "air flight equipment" includes airplanes and parts necessary for the repair and 
269.10 	maintenance of such air flight equipment, and flight simulators, but does not include airplanes
269.11 	aircraft with a gross maximum takeoff weight of less than 30,000 pounds that are used on 
269.12 	intermittent or irregularly timed flights.
269.13 	(e) Sales of, and the storage, distribution, use, or consumption of aircraft, as defined in 
269.14 	section 360.511 and approved by the Federal Aviation Administration, and which the seller 
269.15 	delivers to a purchaser outside Minnesota or which, without intermediate use, is shipped or 
269.16 	transported outside Minnesota by the purchaser are exempt, but only if the purchaser is not 
269.17 	a resident of Minnesota and provided that the aircraft is not thereafter returned to a point 
269.18 	within Minnesota, except in the course of interstate commerce or isolated and occasional 
269.19 	use, and will be registered in another state or country upon its removal from Minnesota. 
269.20 	This exemption applies even if the purchaser takes possession of the aircraft in Minnesota 
269.21 	and uses the aircraft in the state exclusively for training purposes for a period not to exceed 
269.22 	ten days prior to removing the aircraft from this state.
269.23 	(f) The sale or purchase of the following items that relate to aircraft operated under 
269.24 	Federal Aviation Regulations, Parts 91 and 135, and associated installation charges: 
269.25 	equipment and parts necessary for repair and maintenance of aircraft; and equipment and 
269.26 	parts to upgrade and improve aircraft.

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

269.29 	Sec. 10. Minnesota Statutes 2016, section 297A.82, subdivision 4a, is amended to read:
269.30 		Subd. 4a.Deposit in state airports fund. Tax revenue, including interest and penalties,
269.31 	collected from the sale or purchase of an aircraft taxable under this chapter must be deposited 
269.32 	in the state airports fund established in section 360.017. For purposes of this subdivision, 
269.33 	"revenue" does not include the revenue, including interest and penalties, generated by the 
270.1 	sales tax imposed under section 297A.62, subdivision 1a, which must be deposited as 
270.2 	provided under article XI, section 15, of the Minnesota Constitution.

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

270.4 	Sec. 11. Minnesota Statutes 2016, section 297E.02, subdivision 7, is amended to read:
270.5 		Subd. 7.Untaxed gambling product. (a) In addition to penalties or criminal sanctions 
270.6 	imposed by this chapter, a person, organization, or business entity possessing or selling a 
270.7 	pull-tab, electronic pull-tab game, raffle board, or tipboard upon which the tax imposed by 
270.8 	this chapter has not been paid is liable for a tax of six percent of the ideal gross of each 
270.9 	pull-tab, electronic pull-tab game, raffle board, or tipboard. The tax on a partial deal must 
270.10 	be assessed as if it were a full deal.
270.11 	(b) In addition to penalties and criminal sanctions imposed by this chapter, a person (1)
270.12 	not licensed by the board who conducts bingo, linked bingo, electronic linked bingo, raffles, 
270.13 	or paddlewheel games, or (2) who conducts gambling prohibited under sections 609.75 to 
270.14 	609.763, other than activities subject to tax under section 297E.03, is liable for a tax of six 
270.15 	percent of the gross receipts from that activity.
270.16 	(c) The tax must may be assessed by the commissioner. An assessment must be considered 
270.17 	a jeopardy assessment or jeopardy collection as provided in section 270C.36. The 
270.18 	commissioner shall assess the tax based on personal knowledge or information available to 
270.19 	the commissioner. The commissioner shall mail to the taxpayer at the taxpayer's last known 
270.20 	address, or serve in person, a written notice of the amount of tax, demand its immediate 
270.21 	payment, and, if payment is not immediately made, collect the tax by any method described 
270.22 	in chapter 270C, except that the commissioner need not await the expiration of the times 
270.23 	specified in chapter 270C. The tax assessed by the commissioner is presumed to be valid 
270.24 	and correctly determined and assessed. The burden is upon the taxpayer to show its 
270.25 	incorrectness or invalidity. The tax imposed under this subdivision does not apply to gambling 
270.26 	that is exempt from taxation under subdivision 2.
270.27 	(d) A person, organization, or business entity conducting gambling activity under this 
270.28 	subdivision must file monthly tax returns with the commissioner, in the form required by 
270.29 	the commissioner. The returns must be filed on or before the 20th day of the month following 
270.30 	the month in which the gambling activity occurred. The tax imposed by this section is due 
270.31 	and payable at the time when the returns are required to be filed.
270.32 	(e) Notwithstanding any law to the contrary, neither the commissioner nor a public 
270.33 	employee may reveal facts contained in a tax return filed with the commissioner of revenue 
271.1 	as required by this subdivision, nor can any information contained in the report or return 
271.2 	be used against the tax obligor in any criminal proceeding, unless independently obtained, 
271.3 	except in connection with a proceeding involving taxes due under this section, or as provided 
271.4 	in section 270C.055, subdivision 1. However, this paragraph does not prohibit the 
271.5 	commissioner from publishing statistics that do not disclose the identity of tax obligors or 
271.6 	the contents of particular returns or reports. Any person violating this paragraph is guilty 
271.7 	of a gross misdemeanor.

271.8 	EFFECTIVE DATE. This section is effective for games played or purchased after June 
271.9 	30, 2017.

271.10 	Sec. 12. Minnesota Statutes 2016, section 297H.06, subdivision 2, is amended to read:
271.11 		Subd. 2.Materials. The tax is not imposed upon charges to generators of mixed municipal 
271.12 	solid waste or upon the volume of nonmixed municipal solid waste for waste management 
271.13 	services to manage the following materials:
271.14 	(1) mixed municipal solid waste and nonmixed municipal solid waste generated outside 
271.15 	of Minnesota;
271.16 	(2) recyclable materials that are separated for recycling by the generator, collected 
271.17 	separately from other waste, and recycled, to the extent the price of the service for handling 
271.18 	recyclable material is separately itemized on a bill to the generator;
271.19 	(3) recyclable nonmixed municipal solid waste that is separated for recycling by the 
271.20 	generator, collected separately from other waste, delivered to a waste facility for the purpose 
271.21 	of recycling, and recycled;
271.22 	(4) industrial waste, when it is transported to a facility owned and operated by the same 
271.23 	person that generated it;
271.24 	(5) mixed municipal solid waste from a recycling facility that separates or processes 
271.25 	recyclable materials and reduces the volume of the waste by at least 85 percent, provided 
271.26 	that the exempted waste is managed separately from other waste;
271.27 	(6) recyclable materials that are separated from mixed municipal solid waste by the 
271.28 	generator, collected and delivered to a waste facility that recycles at least 85 percent of its 
271.29 	waste, and are collected with mixed municipal solid waste that is segregated in leakproof 
271.30 	bags, provided that the mixed municipal solid waste does not exceed five percent of the 
271.31 	total weight of the materials delivered to the facility and is ultimately delivered to a waste 
271.32 	facility identified as a preferred waste management facility in county solid waste plans 
271.33 	under section 115A.46;
272.1 	(7) source-separated compostable waste materials, if the waste is materials are delivered 
272.2 	to a facility exempted as described in this clause. To initially qualify for an exemption, a 
272.3 	facility must apply for an exemption in its application for a new or amended solid waste 
272.4 	permit to the Pollution Control Agency. The first time a facility applies to the agency it 
272.5 	must certify in its application that it will comply with the criteria in items (i) to (v) and the 
272.6 	commissioner of the agency shall so certify to the commissioner of revenue who must grant 
272.7 	the exemption. The facility must annually apply to the agency for certification to renew its 
272.8 	exemption for the following year. The application must be filed according to the procedures 
272.9 	of, and contain the information required by, the agency. The commissioner of revenue shall 
272.10 	grant the exemption if the commissioner of the Pollution Control Agency finds and certifies 
272.11 	to the commissioner of revenue that based on an evaluation of the composition of incoming 
272.12 	waste and residuals and the quality and use of the product:
272.13 	(i) generators separate materials at the source;
272.14 	(ii) the separation is performed in a manner appropriate to the technology specific to the 
272.15 	facility that:
272.16 	(A) maximizes the quality of the product;
272.17 	(B) minimizes the toxicity and quantity of residuals rejects; and
272.18 	(C) provides an opportunity for significant improvement in the environmental efficiency 
272.19 	of the operation;
272.20 	(iii) the operator of the facility educates generators, in coordination with each county 
272.21 	using the facility, about separating the waste to maximize the quality of the waste stream 
272.22 	for technology specific to the facility;
272.23 	(iv) process residuals rejects do not exceed 15 percent of the weight of the total material 
272.24 	delivered to the facility; and
272.25 	(v) the final product is accepted for use;
272.26 	(8) waste and waste by-products for which the tax has been paid; and
272.27 	(9) daily cover for landfills that has been approved in writing by the Minnesota Pollution 
272.28 	Control Agency.

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

273.1 	Sec. 13. Minnesota Statutes 2016, section 297I.05, subdivision 2, is amended to read:
273.2 		Subd. 2.Town and farmers' Township mutual insurance. A tax is imposed on town 
273.3 	and farmers' township mutual insurance companies. The rate of tax is equal to one percent 
273.4 	of gross premiums less return premiums on all direct business received by the insurer or 
273.5 	agents of the insurer in Minnesota, in cash or otherwise, during the year.

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

273.7 	Sec. 14. Minnesota Statutes 2016, section 297I.10, subdivision 1, is amended to read:
273.8 		Subdivision 1.Cities of the first class. (a) The commissioner shall order and direct a 
273.9 	surcharge to be collected of two percent of the fire, lightning, and sprinkler leakage gross 
273.10 	premiums, less return premiums, on all direct business received by any licensed foreign or 
273.11 	domestic fire insurance company on property in a city of the first class, or by its agents for 
273.12 	it, in cash or otherwise.
273.13 	(b) By July 31 and December 31 of each year, the commissioner of management and 
273.14 	budget shall pay to each city of the first class a warrant for an amount equal to the total 
273.15 	amount of the surcharge on the premiums collected within that city since the previous 
273.16 	payment.
273.17 	(c) The treasurer of the city shall place the money received under this subdivision in a 
273.18 	special account or fund to defray all or a portion of the employer contribution requirement 
273.19 	of public employees police and fire plan coverage for city firefighters.

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

273.21 	Sec. 15. Minnesota Statutes 2016, section 297I.10, subdivision 3, is amended to read:
273.22 		Subd. 3.Appropriation. The amount necessary to make the payments required under 
273.23 	this section is appropriated to the commissioner of management and budget from the general 
273.24 	fund.

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

273.26 	Sec. 16. Minnesota Statutes 2016, section 298.01, subdivision 4c, is amended to read:
273.27 		Subd. 4c.Special deductions; net operating loss. (a) For purposes of determining 
273.28 	taxable income under subdivision 4, the provisions of sections 290.0133, subdivisions 7
273.29 	and 9, and 290.0134, subdivisions 7 and 9, are not used to determine taxable income.
274.1 	(b) The amount of net operating loss incurred in a taxable year beginning before January 
274.2 	1, 1990, that may be carried over to a taxable year beginning after December 31, 1989, is 
274.3 	the amount of net operating loss carryover determined in the calculation of the hypothetical 
274.4 	corporate franchise tax under Minnesota Statutes 1988, sections 298.40 and 298.402.

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

274.6 	ARTICLE 15
274.7 	DEPARTMENT OF REVENUE 2015-2016 POLICY AND TECHNICAL 
274.8 	PROVISIONS; PROPERTY TAX

274.9 	Section 1. Minnesota Statutes 2016, section 13.51, subdivision 2, is amended to read:
274.10 		Subd. 2.Income property assessment data. The following data collected by political 
274.11 	subdivisions and the state from individuals or business entities concerning income properties 
274.12 	are classified as private or nonpublic data pursuant to section 13.02, subdivisions 9 and 12:
274.13 	(a) detailed income and expense figures;
274.14 	(b) average vacancy factors;
274.15 	(c) verified net rentable areas or net usable areas, whichever is appropriate;
274.16 	(d) anticipated income and expenses;
274.17 	(e) projected vacancy factors; and
274.18 	(f) lease information.

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

274.20 	Sec. 2. Minnesota Statutes 2016, section 270.071, subdivision 2, is amended to read:
274.21 		Subd. 2.Air commerce. (a) "Air commerce" means the transportation by aircraft of 
274.22 	persons or property for hire in interstate, intrastate, or international transportation on regularly 
274.23 	scheduled flights or on intermittent or irregularly timed flights by airline companies and 
274.24 	includes transportation by any airline company making three or more flights in or out of 
274.25 	Minnesota, or within Minnesota, during a calendar year.
274.26 	(b) "Air commerce" includes but is not limited to an intermittent or irregularly timed 
274.27 	flight, a flight arranged at the convenience of an airline and the person contracting for the 
274.28 	transportation, or a charter flight. It includes any airline company making three or more 
274.29 	flights in or out of Minnesota during a calendar year.
275.1 	(c) "Air commerce" does not include casual transportation for hire by aircraft commonly 
275.2 	owned and used for private air flight purposes if the person furnishing the transportation 
275.3 	does not hold out to be engaged regularly in transportation for hire.

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

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

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

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

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

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

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

275.26 	Sec. 6. Minnesota Statutes 2016, section 270.072, subdivision 2, is amended to read:
275.27 		Subd. 2.Assessment of flight property.  Flight property that is owned by, or is leased, 
275.28 	loaned, or otherwise made available to an airline company operating in Minnesota shall be 
275.29 	assessed and appraised annually by the commissioner with reference to its value on January 
275.30 	2 of the assessment year in the manner prescribed by sections 270.071 to 270.079. Aircraft 
276.1 	with a gross weight of less than 30,000 pounds and used on intermittent or irregularly timed 
276.2 	flights shall be excluded from the provisions of sections 270.071 to 270.079.

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

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

276.17 	EFFECTIVE DATE. The amendment to paragraph (a) is effective for reports filed in 
276.18 	2018 and thereafter. The amendment adding paragraph (b) is effective the day following 
276.19 	final enactment.

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

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

276.27 	Sec. 9. Minnesota Statutes 2016, section 270.12, is amended by adding a subdivision to 
276.28 	read:
276.29 		Subd. 6.Reassessment orders. If the State Board of Equalization determines that a 
276.30 	considerable amount of property has been undervalued or overvalued compared to like 
276.31 	property such that the assessment is grossly unfair or inequitable, the State Board of 
277.1 	Equalization may, pursuant to its responsibilities under subdivisions 2 and 3, issue orders 
277.2 	to the county assessor to reassess all parcels or an identified set of parcels in a county.

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

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

277.14 	EFFECTIVE DATE. This section is effective for local and county boards of appeal 
277.15 	and equalization meetings held in 2017 and thereafter.

277.16 	Sec. 11. Minnesota Statutes 2016, section 272.02, subdivision 9, is amended to read:
277.17 		Subd. 9.Personal property; exceptions. Except for the taxable personal property 
277.18 	enumerated below, all personal property and the property described in section 272.03, 
277.19 	subdivision 1, paragraphs (c) and (d), shall be exempt.
277.20 	The following personal property shall be taxable:
277.21 	(a) personal property which is part of (1) an electric generating, transmission, or 
277.22 	distribution system or; (2) a pipeline system transporting or distributing water, gas, crude 
277.23 	oil, or petroleum products; or (3) mains and pipes used in the distribution of steam or hot 
277.24 	or chilled water for heating or cooling buildings and structures;
277.25 	(b) railroad docks and wharves which are part of the operating property of a railroad 
277.26 	company as defined in section 270.80;
277.27 	(c) personal property defined in section 272.03, subdivision 2, clause (3);
277.28 	(d) leasehold or other personal property interests which are taxed pursuant to section 
277.29 	272.01, subdivision 2; 273.124, subdivision 7; or 273.19, subdivision 1; or any other law 
277.30 	providing the property is taxable as if the lessee or user were the fee owner;
278.1 	(e) manufactured homes and sectional structures, including storage sheds, decks, and 
278.2 	similar removable improvements constructed on the site of a manufactured home, sectional 
278.3 	structure, park trailer or travel trailer as provided in section 273.125, subdivision 8, paragraph 
278.4 	(f); and
278.5 	(f) flight property as defined in section 270.071.

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

278.7 	Sec. 12. Minnesota Statutes 2016, section 272.029, subdivision 2, is amended to read:
278.8 		Subd. 2.Definitions. (a) For the purposes of this section, the term:
278.9 	(1) "wind energy conversion system" has the meaning given in section 216C.06, 
278.10 	subdivision 19, and also includes a substation that is used and owned by one or more wind 
278.11 	energy conversion facilities;
278.12 	(2) "large scale wind energy conversion system" means a wind energy conversion system 
278.13 	of more than 12 megawatts, as measured by the nameplate capacity of the system or as 
278.14 	combined with other systems as provided in paragraph (b);
278.15 	(3) "medium scale wind energy conversion system" means a wind energy conversion 
278.16 	system of over two and not more than 12 megawatts, as measured by the nameplate capacity 
278.17 	of the system or as combined with other systems as provided in paragraph (b); and
278.18 	(4) "small scale wind energy conversion system" means a wind energy conversion system 
278.19 	of two megawatts and under, as measured by the nameplate capacity of the system or as 
278.20 	combined with other systems as provided in paragraph (b).
278.21 	(b) For systems installed and contracted for after January 1, 2002, the total size of a 
278.22 	wind energy conversion system under this subdivision shall be determined according to this 
278.23 	paragraph. Unless the systems are interconnected with different distribution systems, the 
278.24 	nameplate capacity of one wind energy conversion system shall be combined with the 
278.25 	nameplate capacity of any other wind energy conversion system that is:
278.26 	(1) located within five miles of the wind energy conversion system;
278.27 	(2) constructed within the same calendar year 12-month period as the wind energy 
278.28 	conversion system; and
278.29 	(3) under common ownership.
278.30 	In the case of a dispute, the commissioner of commerce shall determine the total size of 
278.31 	the system, and shall draw all reasonable inferences in favor of combining the systems.
279.1 	(c) In making a determination under paragraph (b), the commissioner of commerce may 
279.2 	determine that two wind energy conversion systems are under common ownership when 
279.3 	the underlying ownership structure contains similar persons or entities, even if the ownership 
279.4 	shares differ between the two systems. Wind energy conversion systems are not under 
279.5 	common ownership solely because the same person or entity provided equity financing for 
279.6 	the systems.

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

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

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

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

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

279.23 	Sec. 15. Minnesota Statutes 2016, section 273.08, is amended to read:
279.24 	273.08 ASSESSOR'S DUTIES.
279.25 	The assessor shall actually view, and determine the market value of each tract or lot of 
279.26 	real property listed for taxation, including the value of all improvements and structures 
279.27 	thereon, at maximum intervals of five years and shall enter the value opposite each 
279.28 	description. When directed by the county assessor, local assessors must enter construction 
279.29 	and valuation data into the records in the manner prescribed by the county assessor.

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

280.1 	Sec. 16. Minnesota Statutes 2016, section 273.121, is amended by adding a subdivision 
280.2 	to read:
280.3 		Subd. 3.Compliance. A county assessor, or a city assessor having the powers of a 
280.4 	county assessor, who does not comply with the timely notice requirement under subdivision 
280.5 	1 must:
280.6 	(1) mail an additional valuation notice to each person who was not provided timely 
280.7 	notice; and
280.8 	(2) convene a supplemental local board of appeal and equalization or local review session 
280.9 	no sooner than ten days after sending the additional notices required by clause (1).

280.10 	EFFECTIVE DATE. This section is effective for valuation notices sent in 2018 and 
280.11 	thereafter.

280.12 	Sec. 17. Minnesota Statutes 2016, section 273.13, subdivision 22, is amended to read:
280.13 		Subd. 22.Class 1. (a) Except as provided in subdivision 23 and in paragraphs (b) and 
280.14 	(c), real estate which is residential and used for homestead purposes is class 1a. In the case 
280.15 	of a duplex or triplex in which one of the units is used for homestead purposes, the entire 
280.16 	property is deemed to be used for homestead purposes. The market value of class 1a property 
280.17 	must be determined based upon the value of the house, garage, and land.
280.18 	The first $500,000 of market value of class 1a property has a net classification rate of 
280.19 	one percent of its market value; and the market value of class 1a property that exceeds 
280.20 	$500,000 has a classification rate of 1.25 percent of its market value.
280.21 	(b) Class 1b property includes homestead real estate or homestead manufactured homes 
280.22 	used for the purposes of a homestead by:
280.23 	(1) any person who is blind as defined in section 256D.35, or the blind person and the 
280.24 	blind person's spouse;
280.25 	(2) any person who is permanently and totally disabled or by the disabled person and 
280.26 	the disabled person's spouse; or
280.27 	(3) the surviving spouse of a permanently and totally disabled veteran homesteading a 
280.28 	property classified under this paragraph for taxes payable in 2008.
280.29 	Property is classified and assessed under clause (2) only if the government agency or 
280.30 	income-providing source certifies, upon the request of the homestead occupant, that the 
280.31 	homestead occupant satisfies the disability requirements of this paragraph, and that the 
280.32 	property is not eligible for the valuation exclusion under subdivision 34.
281.1 	Property is classified and assessed under paragraph (b) only if the commissioner of 
281.2 	revenue or the county assessor certifies that the homestead occupant satisfies the requirements 
281.3 	of this paragraph.
281.4 	Permanently and totally disabled for the purpose of this subdivision means a condition 
281.5 	which is permanent in nature and totally incapacitates the person from working at an 
281.6 	occupation which brings the person an income. The first $50,000 market value of class 1b 
281.7 	property has a net classification rate of .45 percent of its market value. The remaining market 
281.8 	value of class 1b property has a classification rate using the rates for is classified as class 
281.9 	1a or class 2a property, whichever is appropriate, of similar market value.
281.10 	(c) Class 1c property is commercial use real and personal property that abuts public 
281.11 	water as defined in section 103G.005, subdivision 15, and is devoted to temporary and 
281.12 	seasonal residential occupancy for recreational purposes but not devoted to commercial 
281.13 	purposes for more than 250 days in the year preceding the year of assessment, and that 
281.14 	includes a portion used as a homestead by the owner, which includes a dwelling occupied 
281.15 	as a homestead by a shareholder of a corporation that owns the resort, a partner in a 
281.16 	partnership that owns the resort, or a member of a limited liability company that owns the 
281.17 	resort even if the title to the homestead is held by the corporation, partnership, or limited 
281.18 	liability company. For purposes of this paragraph, property is devoted to a commercial 
281.19 	purpose on a specific day if any portion of the property, excluding the portion used 
281.20 	exclusively as a homestead, is used for residential occupancy and a fee is charged for 
281.21 	residential occupancy. Class 1c property must contain three or more rental units. A "rental 
281.22 	unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual camping 
281.23 	site equipped with water and electrical hookups for recreational vehicles. Class 1c property 
281.24 	must provide recreational activities such as the rental of ice fishing houses, boats and motors, 
281.25 	snowmobiles, downhill or cross-country ski equipment; provide marina services, launch 
281.26 	services, or guide services; or sell bait and fishing tackle. Any unit in which the right to use 
281.27 	the property is transferred to an individual or entity by deeded interest, or the sale of shares 
281.28 	or stock, no longer qualifies for class 1c even though it may remain available for rent. A 
281.29 	camping pad offered for rent by a property that otherwise qualifies for class 1c is also class 
281.30 	1c, regardless of the term of the rental agreement, as long as the use of the camping pad 
281.31 	does not exceed 250 days. If the same owner owns two separate parcels that are located in 
281.32 	the same township, and one of those properties is classified as a class 1c property and the 
281.33 	other would be eligible to be classified as a class 1c property if it was used as the homestead 
281.34 	of the owner, both properties will be assessed as a single class 1c property; for purposes of 
281.35 	this sentence, properties are deemed to be owned by the same owner if each of them is 
282.1 	owned by a limited liability company, and both limited liability companies have the same 
282.2 	membership. The portion of the property used as a homestead is class 1a property under 
282.3 	paragraph (a). The remainder of the property is classified as follows: the first $600,000 of 
282.4 	market value is tier I, the next $1,700,000 of market value is tier II, and any remaining 
282.5 	market value is tier III. The classification rates for class 1c are: tier I, 0.50 percent; tier II, 
282.6 	1.0 percent; and tier III, 1.25 percent. Owners of real and personal property devoted to 
282.7 	temporary and seasonal residential occupancy for recreation purposes in which all or a 
282.8 	portion of the property was devoted to commercial purposes for not more than 250 days in 
282.9 	the year preceding the year of assessment desiring classification as class 1c, must submit a 
282.10 	declaration to the assessor designating the cabins or units occupied for 250 days or less in 
282.11 	the year preceding the year of assessment by January 15 of the assessment year. Those 
282.12 	cabins or units and a proportionate share of the land on which they are located must be 
282.13 	designated as class 1c as otherwise provided. The remainder of the cabins or units and a 
282.14 	proportionate share of the land on which they are located must be designated as class 3a 
282.15 	commercial. The owner of property desiring designation as class 1c property must provide 
282.16 	guest registers or other records demonstrating that the units for which class 1c designation 
282.17 	is sought were not occupied for more than 250 days in the year preceding the assessment 
282.18 	if so requested. The portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, 
282.19 	(4) conference center or meeting room, and (5) other nonresidential facility operated on a 
282.20 	commercial basis not directly related to temporary and seasonal residential occupancy for 
282.21 	recreation purposes does not qualify for class 1c.
282.22 	(d) Class 1d property includes structures that meet all of the following criteria:
282.23 	(1) the structure is located on property that is classified as agricultural property under 
282.24 	section 273.13, subdivision 23;
282.25 	(2) the structure is occupied exclusively by seasonal farm workers during the time when 
282.26 	they work on that farm, and the occupants are not charged rent for the privilege of occupying 
282.27 	the property, provided that use of the structure for storage of farm equipment and produce 
282.28 	does not disqualify the property from classification under this paragraph;
282.29 	(3) the structure meets all applicable health and safety requirements for the appropriate 
282.30 	season; and
282.31 	(4) the structure is not salable as residential property because it does not comply with 
282.32 	local ordinances relating to location in relation to streets or roads.
282.33 	The market value of class 1d property has the same classification rates as class 1a property 
282.34 	under paragraph (a).

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

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

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

283.9 	Sec. 19. Minnesota Statutes 2016, section 273.33, subdivision 2, is amended to read:
283.10 		Subd. 2.Listing and assessment by commissioner. The personal property, consisting 
283.11 	of the pipeline system of mains, pipes, and equipment attached thereto, of pipeline companies 
283.12 	and others engaged in the operations or business of transporting natural gas, gasoline, crude 
283.13 	oil, or other petroleum products by pipelines, shall be listed with and assessed by the 
283.14 	commissioner of revenue and the values provided to the city or county assessor by order. 
283.15 	This subdivision shall not apply to the assessment of the products transported through the 
283.16 	pipelines nor to the lines of local commercial gas companies engaged primarily in the 
283.17 	business of distributing gas products to consumers at retail nor to pipelines used by the 
283.18 	owner thereof to supply natural gas or other petroleum products exclusively for such owner's 
283.19 	own consumption and not for resale to others. If more than 85 percent of the natural gas or 
283.20 	other petroleum products actually transported over the pipeline is used for the owner's own 
283.21 	consumption and not for resale to others, then this subdivision shall not apply; provided, 
283.22 	however, that in that event, the pipeline shall be assessed in proportion to the percentage 
283.23 	of gas products actually transported over such pipeline that is not used for the owner's own 
283.24 	consumption. On or before August 1, the commissioner shall certify to the auditor of each 
283.25 	county, the amount of such personal property assessment against each company in each 
283.26 	district in which such property is located. If the commissioner determines that the amount 
283.27 	of personal property assessment certified on or before August 1 is in error, the commissioner 
283.28 	may issue a corrected certification on or before October 1. The commissioner may correct 
283.29 	errors that are merely clerical in nature until December 31.

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

284.1 	Sec. 20. Minnesota Statutes 2016, section 273.372, subdivision 2, is amended to read:
284.2 		Subd. 2.Contents and filing of petition. (a) In all appeals to court that are required to 
284.3 	be brought against the commissioner under this section, the petition initiating the appeal 
284.4 	must be served on the commissioner and must be filed with the Tax Court in Ramsey County, 
284.5 	as provided in paragraph (b) or (c).
284.6 	(b) If the appeal to court is from an order of the commissioner, it must be brought under 
284.7 	chapter 271 and filed within the time period prescribed in section 271.06, subdivision 2, 
284.8 	except that when the provisions of this section conflict with chapter 271 or 278, this section 
284.9 	prevails. In addition, the petition must include all the parcels encompassed by that order 
284.10 	which the petitioner claims have been partially, unfairly, or unequally assessed, assessed 
284.11 	at a valuation greater than their real or actual value, misclassified, or are exempt. For this 
284.12 	purpose, an order of the commissioner is either (1) a certification or notice of value by the 
284.13 	commissioner for property described in subdivision 1, or (2) the final determination by the 
284.14 	commissioner of either an administrative appeal conference or informal administrative 
284.15 	appeal described in subdivision 4.
284.16 	(c) If the appeal is from the tax that results from implementation of the commissioner's 
284.17 	order, certification, or recommendation, it must be brought under chapter 278, and the 
284.18 	provisions in that chapter apply, except that service shall be on the commissioner only and 
284.19 	not on the local officials specified in section 278.01, subdivision 1, and if any other provision 
284.20 	of this section conflicts with chapter 278, this section prevails. In addition, the petition must 
284.21 	include either all the utility parcels or all the railroad parcels in the state in which the 
284.22 	petitioner claims an interest and which the petitioner claims have been partially, unfairly, 
284.23 	or unequally assessed, assessed at a valuation greater than their real or actual value, 
284.24 	misclassified, or are exempt.

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

284.26 	Sec. 21. Minnesota Statutes 2016, section 273.372, subdivision 4, is amended to read:
284.27 		Subd. 4.Administrative appeals. (a) Companies that submit the reports under section 
284.28 	270.82 or 273.371 by the date specified in that section, or by the date specified by the 
284.29 	commissioner in an extension, may appeal administratively to the commissioner prior to 
284.30 	bringing an action in court.
284.31 	(b) Companies that must submit reports under section 270.82 must submit file a written 
284.32 	request to for an appeal with the commissioner for a conference within ten 30 days after 
284.33 	the notice date of the commissioner's valuation certification or other notice to the company, 
285.1 	or by June 15, whichever is earlier. For purposes of this section, "notice date" means the 
285.2 	notice date of the valuation certification, commissioner's order, recommendation, or other 
285.3 	notice.
285.4 	(c) Companies that submit reports under section 273.371 must submit a written request 
285.5 	to the commissioner for a conference within ten days after the date of the commissioner's 
285.6 	valuation certification or notice to the company, or by July 1, whichever is earlier. The 
285.7 	appeal need not be in any particular form but must contain the following information:
285.8 	(1) name and address of the company;
285.9 	(2) the date;
285.10 	(3) its Minnesota identification number;
285.11 	(4) the assessment year or period involved;
285.12 	(5) the findings in the valuation that the company disputes;
285.13 	(6) a summary statement specifying its reasons for disputing each item; and
285.14 	(7) the signature of the company's duly authorized agent or representative.
285.15 	(d) When requested in writing and within the time allowed for filing an administrative 
285.16 	appeal, the commissioner may extend the time for filing an appeal for a period of not more 
285.17 	than 15 days from the expiration of the time for filing the appeal.
285.18 	(d) (e) The commissioner shall conduct the conference either in person or by telephone 
285.19 	upon the commissioner's entire files and records and such further information as may be 
285.20 	offered. The conference must be held no later than 20 days after the date of the 
285.21 	commissioner's valuation certification or notice to the company, or by the date specified by 
285.22 	the commissioner in an extension request for an appeal. Within 60 30 days after the 
285.23 	conference the commissioner shall make a final determination of the matter and shall notify 
285.24 	the company promptly of the determination. The conference is not a contested case hearing
285.25 	subject to chapter 14.
285.26 	(e) In addition to the opportunity for a conference under paragraph (a), the commissioner 
285.27 	shall also provide the railroad and utility companies the opportunity to discuss any questions 
285.28 	or concerns relating to the values established by the commissioner through certification or 
285.29 	notice in a less formal manner. This does not change or modify the deadline for requesting 
285.30 	a conference under paragraph (a), the deadline in section 271.06 for appealing an order of 
285.31 	the commissioner, or the deadline in section 278.01 for appealing property taxes in court.

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

286.1 	Sec. 22. Minnesota Statutes 2016, section 273.372, is amended by adding a subdivision 
286.2 	to read:
286.3 		Subd. 5.Agreement determining valuation. When it appears to be in the best interest 
286.4 	of the state, the commissioner may settle any matter under consideration regarding an appeal 
286.5 	filed under this section. The agreement must be in writing and signed by the commissioner 
286.6 	and the company or the company's authorized representative. The agreement is final and 
286.7 	conclusive, and except upon a showing of fraud, malfeasance, or misrepresentation of a 
286.8 	material fact, the case may not be reopened as to the matters agreed upon.

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

286.10 	Sec. 23. Minnesota Statutes 2016, section 273.372, is amended by adding a subdivision 
286.11 	to read:
286.12 		Subd. 6.Dismissal of administrative appeal. If a taxpayer files an administrative appeal 
286.13 	from an order of the commissioner and also files an appeal to the tax court for that same 
286.14 	order of the commissioner, the administrative appeal is dismissed and the commissioner is 
286.15 	no longer required to make the determination of appeal under subdivision 4.

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

286.17 	Sec. 24. [273.88] EQUALIZATION OF PUBLIC UTILITY STRUCTURES.
286.18 	After making the apportionment provided in Minnesota Rules, part 8100.0600, the 
286.19 	commissioner must equalize the values of the operating structures to the level accepted by 
286.20 	the State Board of Equalization if the appropriate sales ratio for each county, as conducted 
286.21 	by the Department of Revenue pursuant to section 270.12, subdivision 2, clause (6), is 
286.22 	outside the range accepted by the State Board of Equalization. The commissioner must not 
286.23 	equalize the value of the operating structures if the sales ratio determined pursuant to this 
286.24 	subdivision is within the range accepted by the State Board of Equalization.

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

286.26 	Sec. 25. Minnesota Statutes 2016, section 274.01, subdivision 1, is amended to read:
286.27 		Subdivision 1.Ordinary board; meetings, deadlines, grievances. (a) The town board 
286.28 	of a town, or the council or other governing body of a city, is the local board of appeal and 
286.29 	equalization except (1) in cities whose charters provide for a board of equalization or (2) 
286.30 	in any city or town that has transferred its local board of review power and duties to the 
286.31 	county board as provided in subdivision 3. The county assessor shall fix a day and time 
287.1 	when the board or the local board of equalization shall meet in the assessment districts of 
287.2 	the county. Notwithstanding any law or city charter to the contrary, a city board of 
287.3 	equalization shall be referred to as a local board of appeal and equalization. On or before 
287.4 	February 15 of each year the assessor shall give written notice of the time to the city or 
287.5 	town clerk. Notwithstanding the provisions of any charter to the contrary, the meetings must 
287.6 	be held between April 1 and May 31 each year. The clerk shall give published and posted 
287.7 	notice of the meeting at least ten days before the date of the meeting.
287.8 	The board shall meet either at a central location within the county or at the office of the 
287.9 	clerk to review the assessment and classification of property in the town or city. No changes 
287.10 	in valuation or classification which are intended to correct errors in judgment by the county 
287.11 	assessor may be made by the county assessor after the board has adjourned in those cities 
287.12 	or towns that hold a local board of review; however, corrections of errors that are merely 
287.13 	clerical in nature or changes that extend homestead treatment to property are permitted after 
287.14 	adjournment until the tax extension date for that assessment year. The changes must be fully 
287.15 	documented and maintained in the assessor's office and must be available for review by any 
287.16 	person. A copy of the changes made during this period in those cities or towns that hold a 
287.17 	local board of review must be sent to the county board no later than December 31 of the 
287.18 	assessment year.
287.19 	(b) The board shall determine whether the taxable property in the town or city has been 
287.20 	properly placed on the list and properly valued by the assessor. If real or personal property 
287.21 	has been omitted, the board shall place it on the list with its market value, and correct the 
287.22 	assessment so that each tract or lot of real property, and each article, parcel, or class of 
287.23 	personal property, is entered on the assessment list at its market value. No assessment of 
287.24 	the property of any person may be raised unless the person has been duly notified of the 
287.25 	intent of the board to do so. On application of any person feeling aggrieved, the board shall 
287.26 	review the assessment or classification, or both, and correct it as appears just. The board 
287.27 	may not make an individual market value adjustment or classification change that would 
287.28 	benefit the property if the owner or other person having control over the property has refused 
287.29 	the assessor access to inspect the property and the interior of any buildings or structures as 
287.30 	provided in section 273.20. A board member shall not participate in any actions of the board 
287.31 	which result in market value adjustments or classification changes to property owned by 
287.32 	the board member, the spouse, parent, stepparent, child, stepchild, grandparent, grandchild, 
287.33 	brother, sister, uncle, aunt, nephew, or niece of a board member, or property in which a 
287.34 	board member has a financial interest. The relationship may be by blood or marriage.
288.1 	(c) A local board may reduce assessments upon petition of the taxpayer but the total 
288.2 	reductions must not reduce the aggregate assessment made by the county assessor by more 
288.3 	than one percent. If the total reductions would lower the aggregate assessments made by 
288.4 	the county assessor by more than one percent, none of the adjustments may be made. The 
288.5 	assessor shall correct any clerical errors or double assessments discovered by the board 
288.6 	without regard to the one percent limitation.
288.7 	(d) A local board does not have authority to grant an exemption or to order property 
288.8 	removed from the tax rolls.
288.9 	(e) A majority of the members may act at the meeting, and adjourn from day to day until 
288.10 	they finish hearing the cases presented. The assessor shall attend and take part in the 
288.11 	proceedings, but must not vote. The county assessor, or an assistant delegated by the county 
288.12 	assessor shall attend the meetings. The board shall list separately all omitted property added 
288.13 	to the list by the board and all items of property increased or decreased, with the market 
288.14 	value of each item of property, added or changed by the board. The county assessor shall 
288.15 	enter all changes made by the board.
288.16 	(f) Except as provided in subdivision 3, if a person fails to appear in person, by counsel, 
288.17 	or by written communication before the board after being duly notified of the board's intent 
288.18 	to raise the assessment of the property, or if a person feeling aggrieved by an assessment 
288.19 	or classification fails to apply for a review of the assessment or classification, the person 
288.20 	may not appear before the county board of appeal and equalization for a review. This 
288.21 	paragraph does not apply if an assessment was made after the local board meeting, as 
288.22 	provided in section 273.01, or if the person can establish not having received notice of 
288.23 	market value at least five days before the local board meeting.
288.24 	(g) The local board must complete its work and adjourn within 20 days from the time 
288.25 	of convening stated in the notice of the clerk, unless a longer period is approved by the 
288.26 	commissioner of revenue. No action taken after that date is valid. All complaints about an 
288.27 	assessment or classification made after the meeting of the board must be heard and 
288.28 	determined by the county board of equalization. A nonresident may, at any time, before the 
288.29 	meeting of the board file written objections to an assessment or classification with the county 
288.30 	assessor. The objections must be presented to the board at its meeting by the county assessor 
288.31 	for its consideration.

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

289.1 	Sec. 26. Minnesota Statutes 2016, section 274.13, subdivision 1, is amended to read:
289.2 		Subdivision 1.Members; meetings; rules for equalizing assessments. The county 
289.3 	commissioners, or a majority of them, with the county auditor, or, if the auditor cannot be 
289.4 	present, the deputy county auditor, or, if there is no deputy, the court administrator of the 
289.5 	district court, shall form a board for the equalization of the assessment of the property of 
289.6 	the county, including the property of all cities whose charters provide for a board of 
289.7 	equalization. This board shall be referred to as the county board of appeal and equalization. 
289.8 	The board shall meet annually, on the date specified in section 274.14, at the office of the 
289.9 	auditor. Each member shall take an oath to fairly and impartially perform duties as a member. 
289.10 	Members shall not participate in any actions of the board which result in market value 
289.11 	adjustments or classification changes to property owned by the board member, the spouse, 
289.12 	parent, stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, 
289.13 	nephew, or niece of a board member, or property in which a board member has a financial 
289.14 	interest. The relationship may be by blood or marriage. The board shall examine and compare 
289.15 	the returns of the assessment of property of the towns or districts, and equalize them so that 
289.16 	each tract or lot of real property and each article or class of personal property is entered on 
289.17 	the assessment list at its market value, subject to the following rules:
289.18 	(1) The board shall raise the valuation of each tract or lot of real property which in its 
289.19 	opinion is returned below its market value to the sum believed to be its market value. The 
289.20 	board must first give notice of intention to raise the valuation to the person in whose name 
289.21 	it is assessed, if the person is a resident of the county. The notice must fix a time and place 
289.22 	for a hearing.
289.23 	(2) The board shall reduce the valuation of each tract or lot which in its opinion is returned 
289.24 	above its market value to the sum believed to be its market value.
289.25 	(3) The board shall raise the valuation of each class of personal property which in its 
289.26 	opinion is returned below its market value to the sum believed to be its market value. It 
289.27 	shall raise the aggregate value of the personal property of individuals, firms, or corporations, 
289.28 	when it believes that the aggregate valuation, as returned, is less than the market value of 
289.29 	the taxable personal property possessed by the individuals, firms, or corporations, to the 
289.30 	sum it believes to be the market value. The board must first give notice to the persons of 
289.31 	intention to do so. The notice must set a time and place for a hearing.
289.32 	(4) The board shall reduce the valuation of each class of personal property that is returned 
289.33 	above its market value to the sum it believes to be its market value. Upon complaint of a 
289.34 	party aggrieved, the board shall reduce the aggregate valuation of the individual's personal 
290.1 	property, or of any class of personal property for which the individual is assessed, which 
290.2 	in its opinion has been assessed at too large a sum, to the sum it believes was the market 
290.3 	value of the individual's personal property of that class.
290.4 	(5) The board must not reduce the aggregate value of all the property of its county, as 
290.5 	submitted to the county board of equalization, with the additions made by the auditor under 
290.6 	this chapter, by more than one percent of its whole valuation. The board may raise the 
290.7 	aggregate valuation of real property, and of each class of personal property, of the county, 
290.8 	or of any town or district of the county, when it believes it is below the market value of the 
290.9 	property, or class of property, to the aggregate amount it believes to be its market value.
290.10 	(6) The board shall change the classification of any property which in its opinion is not 
290.11 	properly classified.
290.12 	(7) The board does not have the authority to grant an exemption or to order property 
290.13 	removed from the tax rolls.
290.14 	(8) The board may not make an individual market value adjustment or classification 
290.15 	change that would benefit property if the owner or other person having control over the 
290.16 	property has refused the assessor access to inspect the property and the interior of any 
290.17 	buildings or structures as provided in section 273.20.

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

290.20 	Sec. 27. Minnesota Statutes 2016, section 275.065, subdivision 1, is amended to read:
290.21 		Subdivision 1.Proposed levy. (a) Notwithstanding any law or charter to the contrary, 
290.22 	on or before September 30, each county and each home rule charter or statutory city shall 
290.23 	certify to the county auditor the proposed property tax levy for taxes payable in the following 
290.24 	year.
290.25 	(b) Notwithstanding any law or charter to the contrary, on or before September 15, each 
290.26 	town and each special taxing district shall adopt and certify to the county auditor a proposed 
290.27 	property tax levy for taxes payable in the following year. For towns, the final certified levy 
290.28 	shall also be considered the proposed levy.
290.29 	(c) On or before September 30, each school district that has not mutually agreed with 
290.30 	its home county to extend this date shall certify to the county auditor the proposed property 
290.31 	tax levy for taxes payable in the following year. Each school district that has agreed with 
290.32 	its home county to delay the certification of its proposed property tax levy must certify its 
291.1 	proposed property tax levy for the following year no later than October 7. The school district 
291.2 	shall certify the proposed levy as:
291.3 	(1) a specific dollar amount by school district fund, broken down between voter-approved 
291.4 	and non-voter-approved levies and between referendum market value and tax capacity 
291.5 	levies; or
291.6 	(2) the maximum levy limitation certified by the commissioner of education according 
291.7 	to section 126C.48, subdivision 1.
291.8 	(d) If the board of estimate and taxation or any similar board that establishes maximum 
291.9 	tax levies for taxing jurisdictions within a first class city certifies the maximum property 
291.10 	tax levies for funds under its jurisdiction by charter to the county auditor by the date specified 
291.11 	in paragraph (a), the city shall be deemed to have certified its levies for those taxing 
291.12 	jurisdictions.
291.13 	(e) For purposes of this section, "special taxing district" means a special taxing district 
291.14 	as defined in section 275.066. Intermediate school districts that levy a tax under chapter 
291.15 	124 or 136D, joint powers boards established under sections 123A.44 to 123A.446, and 
291.16 	Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special 
291.17 	taxing districts for purposes of this section.
291.18 	(f) At the meeting at which a taxing authority, other than a town, adopts its proposed 
291.19 	tax levy under this subdivision, the taxing authority shall announce the time and place of 
291.20 	its any subsequent regularly scheduled meetings at which the budget and levy will be 
291.21 	discussed and at which the public will be allowed to speak. The time and place of those 
291.22 	meetings must be included in the proceedings or summary of proceedings published in the 
291.23 	official newspaper of the taxing authority under section 123B.09, 375.12, or 412.191.

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

291.25 	Sec. 28. Minnesota Statutes 2016, section 275.62, subdivision 2, is amended to read:
291.26 		Subd. 2.Local governments required to report. For purposes of this section, "local 
291.27 	governmental unit" means a county, home rule charter or statutory city with a population 
291.28 	greater than 2,500, a town with a population greater than 5,000, or a home rule charter or 
291.29 	statutory city or town that receives a distribution from the taconite municipal aid account 
291.30 	in the levy year.

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

292.1 	Sec. 29. Minnesota Statutes 2016, section 278.01, subdivision 1, is amended to read:
292.2 		Subdivision 1.Determination of validity. (a) Any person having personal property, or 
292.3 	any estate, right, title, or interest in or lien upon any parcel of land, who claims that such 
292.4 	property has been partially, unfairly, or unequally assessed in comparison with other property 
292.5 	in the (1) city, or (2) county, or (3) in the case of a county containing a city of the first class, 
292.6 	the portion of the county excluding the first class city, or that the parcel has been assessed 
292.7 	at a valuation greater than its real or actual value, or that the tax levied against the same is 
292.8 	illegal, in whole or in part, or has been paid, or that the property is exempt from the tax so 
292.9 	levied, may have the validity of the claim, defense, or objection determined by the district 
292.10 	court of the county in which the tax is levied or by the Tax Court by serving one copy of a 
292.11 	petition for such determination upon the county auditor, one copy on the county attorney, 
292.12 	one copy on the county treasurer, and three copies on the county assessor. The county 
292.13 	assessor shall immediately forward one copy of the petition to the appropriate governmental 
292.14 	authority in a home rule charter or statutory city or town in which the property is located if 
292.15 	that city or town employs its own certified assessor. A copy of the petition shall also be 
292.16 	forwarded by the assessor to the school board of the school district in which the property 
292.17 	is located.
292.18 	(b) In counties where the office of county treasurer has been combined with the office 
292.19 	of county auditor, the county may elect to require the petitioner to serve the number of 
292.20 	copies as determined by the county. The county assessor shall immediately forward one 
292.21 	copy of the petition to the appropriate governmental authority in a home rule charter or 
292.22 	statutory city or town in which the property is located if that city or town employs its own 
292.23 	certified assessor. A list of petitioned properties, including the name of the petitioner, the 
292.24 	identification number of the property, and the estimated market value, shall be sent on or 
292.25 	before the first day of July by the county auditor/treasurer to the school board of the school 
292.26 	district in which the property is located.
292.27 	(c) For all counties, the petitioner must file the copies with proof of service, in the office 
292.28 	of the court administrator of the district court on or before April 30 of the year in which the 
292.29 	tax becomes payable. A petition for determination under this section may be transferred by 
292.30 	the district court to the Tax Court. An appeal may also be taken to the Tax Court under 
292.31 	chapter 271 at any time following receipt of the valuation notice that county assessors or 
292.32 	city assessors having the powers of a county assessor are required by section 273.121 to 
292.33 	send to persons whose property is to be included on the assessment roll that year, but prior 
292.34 	to May 1 of the year in which the taxes are payable.

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

293.1 	Sec. 30. Minnesota Statutes 2016, section 282.01, subdivision 1a, is amended to read:
293.2 		Subd. 1a.Conveyance to public entities. (a) Upon written request from a state agency 
293.3 	or a governmental subdivision of the state, a parcel of unsold tax-forfeited land must be 
293.4 	withheld from sale or lease to others for a maximum of six months. The request must be 
293.5 	submitted to the county auditor. Upon receipt, the county auditor must withhold the parcel 
293.6 	from sale or lease to any other party for six months, and must confirm the starting date of 
293.7 	the six-month withholding period to the requesting agency or subdivision. If the request is 
293.8 	from a governmental subdivision of the state, the governmental subdivision must pay the 
293.9 	maintenance costs incurred by the county during the period the parcel is withheld. The 
293.10 	county board may approve a sale or conveyance to the requesting party during the 
293.11 	withholding period. A conveyance of the property to the requesting party terminates the 
293.12 	withholding period.
293.13 	A governmental subdivision of the state must not make, and a county auditor must not 
293.14 	act upon, a second request to withhold a parcel from sale or lease within 18 months of a 
293.15 	previous request for that parcel. A county may reject a request made under this paragraph 
293.16 	if the request is made more than 30 days after the county has given notice to the requesting 
293.17 	state agency or governmental subdivision of the state that the county intends to sell or 
293.18 	otherwise dispose of the property.
293.19 	(b) Nonconservation tax-forfeited lands may be sold by the county board, for their market 
293.20 	value as determined by the county board, to an organized or incorporated governmental 
293.21 	subdivision of the state for any public purpose for which the subdivision is authorized to 
293.22 	acquire property. When the term "market value" is used in this section, it means an estimate 
293.23 	of the full and actual market value of the parcel as determined by the county board, but in 
293.24 	making this determination, the board and the persons employed by or under contract with 
293.25 	the board in order to perform, conduct, or assist in the determination, are exempt from the 
293.26 	licensure requirements of chapter 82B.
293.27 	(c) Nonconservation tax-forfeited lands may be released from the trust in favor of the 
293.28 	taxing districts on application to sold by the county board by, for their market value as 
293.29 	determined by the county board, to a state agency for an authorized use at not less than their 
293.30 	market value as determined by the county board any public purpose for which the agency 
293.31 	is authorized to acquire property.
293.32 	(d) Nonconservation tax-forfeited lands may be sold by the county board to an organized 
293.33 	or incorporated governmental subdivision of the state or state agency for less than their 
293.34 	market value if:
294.1 	(1) the county board determines that a sale at a reduced price is in the public interest 
294.2 	because a reduced price is necessary to provide an incentive to correct the blighted conditions 
294.3 	that make the lands undesirable in the open market, or the reduced price will lead to the 
294.4 	development of affordable housing; and
294.5 	(2) the governmental subdivision or state agency has documented its specific plans for 
294.6 	correcting the blighted conditions or developing affordable housing, and the specific law 
294.7 	or laws that empower it to acquire real property in furtherance of the plans.
294.8 	If the sale under this paragraph is to a governmental subdivision of the state, the 
294.9 	commissioner of revenue must convey the property on behalf of the state by quitclaim deed. 
294.10 	If the sale under this paragraph is to a state agency, the property is released from the trust 
294.11 	in favor of the taxing districts and the commissioner of revenue must issue a conveyance 
294.12 	document that releases the property from the trust in favor of the taxing districts convey the 
294.13 	property on behalf of the state by quitclaim deed to the agency.
294.14 	(e) Nonconservation tax-forfeited land held in trust in favor of the taxing districts may 
294.15 	be conveyed by the commissioner of revenue in the name of the state to a governmental 
294.16 	subdivision for an authorized public use, if an application is submitted to the commissioner 
294.17 	which includes a statement of facts as to the use to be made of the tract and the favorable 
294.18 	recommendation of the county board. For the purposes of this paragraph, "authorized public 
294.19 	use" means a use that allows an indefinite segment of the public to physically use and enjoy 
294.20 	the property in numbers appropriate to its size and use, or is for a public service facility. 
294.21 	Authorized public uses as defined in this paragraph are limited to:
294.22 	(1) a road, or right-of-way for a road;
294.23 	(2) a park that is both available to, and accessible by, the public that contains 
294.24 	improvements such as campgrounds, playgrounds, athletic fields, trails, or shelters;
294.25 	(3) trails for walking, bicycling, snowmobiling, or other recreational purposes, along 
294.26 	with a reasonable amount of surrounding land maintained in its natural state;
294.27 	(4) transit facilities for buses, light rail transit, commuter rail or passenger rail, including 
294.28 	transit ways, park-and-ride lots, transit stations, maintenance and garage facilities, and other 
294.29 	facilities related to a public transit system;
294.30 	(5) public beaches or boat launches;
294.31 	(6) public parking;
294.32 	(7) civic recreation or conference facilities; and
295.1 	(8) public service facilities such as fire halls, police stations, lift stations, water towers, 
295.2 	sanitation facilities, water treatment facilities, and administrative offices.
295.3 	No monetary compensation or consideration is required for the conveyance, except as 
295.4 	provided in subdivision 1g, but the conveyance is subject to the conditions provided in law, 
295.5 	including, but not limited to, the reversion provisions of subdivisions 1c and 1d.
295.6 	(f) The commissioner of revenue shall convey a parcel of nonconservation tax-forfeited 
295.7 	land to a local governmental subdivision of the state by quitclaim deed on behalf of the state 
295.8 	upon the favorable recommendation of the county board if the governmental subdivision 
295.9 	has certified to the board that prior to forfeiture the subdivision was entitled to the parcel 
295.10 	under a written development agreement or instrument, but the conveyance failed to occur 
295.11 	prior to forfeiture. No compensation or consideration is required for, and no conditions 
295.12 	attach to, the conveyance.
295.13 	(g) The commissioner of revenue shall convey a parcel of nonconservation tax-forfeited 
295.14 	land to the association of a common interest community by quitclaim deed upon the favorable 
295.15 	recommendation of the county board if the association certifies to the board that prior to 
295.16 	forfeiture the association was entitled to the parcel under a written agreement, but the 
295.17 	conveyance failed to occur prior to forfeiture. No compensation or consideration is required 
295.18 	for, and no conditions attach to, the conveyance.
295.19 	(h) Conservation tax-forfeited land may be sold to a governmental subdivision of the 
295.20 	state for less than its market value for either: (1) creation or preservation of wetlands; (2) 
295.21 	drainage or storage of storm water under a storm water management plan; or (3) preservation, 
295.22 	or restoration and preservation, of the land in its natural state. The deed must contain a 
295.23 	restrictive covenant limiting the use of the land to one of these purposes for 30 years or 
295.24 	until the property is reconveyed back to the state in trust. At any time, the governmental 
295.25 	subdivision may reconvey the property to the state in trust for the taxing districts. The deed 
295.26 	of reconveyance is subject to approval by the commissioner of revenue. No part of a purchase 
295.27 	price determined under this paragraph shall be refunded upon a reconveyance, but the 
295.28 	amount paid for a conveyance under this paragraph may be taken into account by the county 
295.29 	board when setting the terms of a future sale of the same property to the same governmental 
295.30 	subdivision under paragraph (b) or (d). If the lands are unplatted and located outside of an 
295.31 	incorporated municipality and the commissioner of natural resources determines there is a 
295.32 	mineral use potential, the sale is subject to the approval of the commissioner of natural 
295.33 	resources.
296.1 	(i) A park and recreation board in a city of the first class is a governmental subdivision 
296.2 	for the purposes of this section.
296.3 	(j) Tax-forfeited land held in trust in favor of the taxing districts may be conveyed by 
296.4 	the commissioner of revenue in the name of the state to a governmental subdivision for a 
296.5 	school forest under section 89.41. An application that includes a statement of facts as to the 
296.6 	use to be made of the tract and the favorable recommendation of the county board and the 
296.7 	commissioner of natural resources must be submitted to the commissioner of revenue. No 
296.8 	monetary compensation or consideration is required for the conveyance, but the conveyance 
296.9 	is subject to the conditional use and reversion provisions of subdivisions 1c and 1d, paragraph 
296.10 	(e). At any time, the governmental subdivision may reconvey the property back to the state 
296.11 	in trust for the taxing districts. The deed of reconveyance is subject to approval by the 
296.12 	commissioner of revenue.

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

296.14 	Sec. 31. Minnesota Statutes 2016, section 282.01, subdivision 1d, is amended to read:
296.15 		Subd. 1d.Reverter for failure to use; conveyance to state. (a) After three years from 
296.16 	the date of any conveyance of tax-forfeited land to a governmental subdivision for an 
296.17 	authorized public use as provided in this section, regardless of when the deed for the 
296.18 	authorized public use was executed, if the governmental subdivision has failed to put the 
296.19 	land to that use, or abandons that use, the governing body of the subdivision must: (1) with 
296.20 	the approval of the county board, purchase the property for an authorized public purpose 
296.21 	at the present market value as determined by the county board, or (2) authorize the proper 
296.22 	officers to convey the land, or the part of the land not required for an authorized public use, 
296.23 	to the state of Minnesota in trust for the taxing districts. If the governing body purchases 
296.24 	the property under clause (1), the commissioner of revenue shall, upon proper application 
296.25 	submitted by the county auditor and upon the reconveyance of the land subject to the 
296.26 	conditional use deed to the state, convey the property on behalf of the state by quitclaim 
296.27 	deed to the subdivision free of a use restriction and the possibility of reversion or 
296.28 	defeasement. If the governing body decides to reconvey the property to the state under this 
296.29 	clause, the officers shall execute a deed of conveyance immediately. The conveyance is 
296.30 	subject to the approval of the commissioner and its form must be approved by the attorney 
296.31 	general. For 15 years from the date of the conveyance, there is no failure to put the land to 
296.32 	the authorized public use and no abandonment of that use if a formal plan of the governmental 
296.33 	subdivision, including, but not limited to, a comprehensive plan or land use plan, shows an 
296.34 	intended future use of the land for the authorized public use.
297.1 	(b) Property held by a governmental subdivision of the state under a conditional use 
297.2 	deed executed under this section by the commissioner of revenue on or after January 1, 
297.3 	2007, may be acquired by that governmental subdivision after 15 years from the date of the 
297.4 	conveyance if the commissioner determines upon written application from the subdivision 
297.5 	that the subdivision has in fact put the property to the authorized public use for which it 
297.6 	was conveyed, and the subdivision has made a finding that it has no current plans to change 
297.7 	the use of the lands. Prior to conveying the property, the commissioner shall inquire whether 
297.8 	the county board where the land is located objects to a conveyance of the property to the 
297.9 	subdivision without conditions and without further act by or obligation of the subdivision. 
297.10 	If the county does not object within 60 days, and the commissioner makes a favorable 
297.11 	determination, the commissioner shall issue a quitclaim deed on behalf of the state 
297.12 	unconditionally conveying the property to the governmental subdivision. For purposes of 
297.13 	this paragraph, demonstration of an intended future use for the authorized public use in a 
297.14 	formal plan of the governmental subdivision does not constitute use for that authorized 
297.15 	public use.
297.16 	(c) Property held by a governmental subdivision of the state under a conditional use 
297.17 	deed executed under this section by the commissioner of revenue before January 1, 2007, 
297.18 	is released from the use restriction and possibility of reversion on January 1, 2022, if the 
297.19 	county board records a resolution describing the land and citing this paragraph. The county 
297.20 	board may authorize the county treasurer to deduct the amount of the recording fees from 
297.21 	future settlements of property taxes to the subdivision.
297.22 	(d) Except for tax-forfeited land conveyed to establish a school forest under section 
297.23 	89.41, property conveyed under a conditional use deed executed under this section by the 
297.24 	commissioner of revenue, regardless of when the deed for the authorized public use was 
297.25 	executed, is released from the use restriction and reverter, and any use restriction or reverter 
297.26 	for which no declaration of reversion has been recorded with the county recorder or registrar 
297.27 	of titles, as appropriate, is nullified on the later of: (1) January 1, 2015; (2) 30 years from 
297.28 	the date the deed was acknowledged; or (3) final resolution of an appeal to district court 
297.29 	under subdivision 1e, if a lis pendens related to the appeal is recorded in the office of the 
297.30 	county recorder or registrar of titles, as appropriate, prior to January 1, 2015.
297.31 	(e) Notwithstanding paragraphs (a) to (d), tax-forfeited land conveyed to establish a 
297.32 	school forest under section 89.41 is subject to a perpetual conditional use deed and reverter. 
297.33 	The property reverts to the state in trust for the taxing districts by operation of law if the 
297.34 	commissioner of natural resources determines and reports to the commissioner of revenue 
297.35 	under section 89.41, subdivision 3, that the governmental subdivision has failed to use the 
298.1 	land for school forest purposes for three consecutive years. The commissioner of revenue 
298.2 	shall record a declaration of reversion for land that has reverted under this paragraph.

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

298.4 	Sec. 32. Minnesota Statutes 2016, section 477A.013, is amended by adding a subdivision 
298.5 	to read:
298.6 		Subd. 14.Communication by electronic mail. Prior to receiving aid pursuant to this 
298.7 	section, a city must register an official electronic mail address with the commissioner, which 
298.8 	the commissioner may use as an exclusive means to communicate with the city.

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

298.10 	Sec. 33. Minnesota Statutes 2016, section 477A.19, is amended by adding a subdivision 
298.11 	to read:
298.12 		Subd. 3a.Certification. On or before June 1 of each year, the commissioner of natural 
298.13 	resources shall certify to the commissioner of revenue the number of watercraft launches 
298.14 	and the number of watercraft trailer parking spaces in each county.

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

298.16 	Sec. 34. Minnesota Statutes 2016, section 477A.19, is amended by adding a subdivision 
298.17 	to read:
298.18 		Subd. 3b.Certification. On or before June 1 of each year, the commissioner of natural 
298.19 	resources shall certify to the commissioner of revenue the counties that complied with the 
298.20 	requirements of subdivision 3 the prior year and are eligible to receive aid under this section.

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

298.22 	Sec. 35. Minnesota Statutes 2016, section 559.202, subdivision 2, is amended to read:
298.23 		Subd. 2.Exception. This section does not apply to sales made under chapter 282 or if 
298.24 	the purchaser is represented throughout the transaction by either:
298.25 	(1) a person licensed to practice law in this state; or
298.26 	(2) a person licensed as a real estate broker or salesperson under chapter 82, provided 
298.27 	that the representation does not create a dual agency, as that term is defined in section 82.55, 
298.28 	subdivision 6.

299.1 	EFFECTIVE DATE. This section is effective for sales of tax-forfeited land occurring 
299.2 	the day following final enactment and thereafter.

299.3 	Sec. 36. Laws 2014, chapter 308, article 9, section 94, is amended to read:
299.4 	Sec. 94. REPEALER.
 299.5 	(a) Minnesota Statutes 2012, sections 273.1398, subdivision 4b; 290.01, subdivision 
299.6 	19e; 290.0674, subdivision 3; 290.191, subdivision 4; and 290.33, and Minnesota Rules, 
299.7 	part 8007.0200, are repealed.
299.8 	(b) Minnesota Statutes 2012, sections 16D.02, subdivisions 5 and 8; 16D.11, subdivision 
299.9 	2; 270C.53; 270C.991, subdivision 4; 272.02, subdivisions 1, 1a, 43, 48, 51, 53, 67, 72, and 
299.10 	82; 272.027, subdivision 2; 272.031; 273.015, subdivision 1; 273.03, subdivision 3; 273.075; 
299.11 	273.13, subdivision 21a; 273.1383; 273.1386; 273.80; 275.77; 279.32; 281.173, subdivision 
299.12 	8; 281.174, subdivision 8; 281.328; 282.10; 282.23; 287.20, subdivision 4; 287.27, 
299.13 	subdivision 2; 290.01, subdivisions 4b and 20e; 295.52, subdivision 7; 297A.666; 297A.71, 
299.14 	subdivisions 4, 5, 7, 9, 10, 17, 18, 20, 32, and 41; 297F.08, subdivision 11; 297H.10, 
299.15 	subdivision 2; 469.174, subdivision 10c; 469.175, subdivision 2b; 469.176, subdivision 1i; 
299.16 	469.177, subdivision 10; 477A.0124, subdivisions 1 and 6; and 505.173, Minnesota Statutes 
299.17 	2013 Supplement, section 273.1103, Laws 1993, chapter 375, article 9, section 47, and 
299.18 	Minnesota Rules, parts 8002.0200, subpart 8; 8100.0800; and 8130.7500, subpart 7, are 
299.19 	repealed.
299.20 	(c) Minnesota Statutes 2012, section 469.1764, is repealed.
299.21 	(d) Minnesota Statutes 2012, sections 289A.56, subdivision 7; 297A.68, subdivision 38; 
299.22 	469.330; 469.331; 469.332; 469.333; 469.334; 469.335; 469.336; 469.337; 469.338; 469.339; 
299.23 	469.340, subdivisions 1, 2, 3, and 5; and 469.341, and Minnesota Statutes 2013 Supplement, 
299.24 	section 469.340, subdivision 4, are repealed.
299.25 	(e) Minnesota Statutes 2012, section 290.06, subdivisions 30 and 31, are repealed.

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

299.29 	Sec. 37.  REPEALER.
 299.30 	(a) Minnesota Statutes 2016, section 281.22, is repealed.
299.31 	(b) Minnesota Rules, part 8100.0700, is repealed.

300.1 	EFFECTIVE DATE. Paragraph (a) is effective the day following final enactment. 
300.2 	Paragraph (b) is effective for assessment year 2017 and thereafter.

300.3 	ARTICLE 16
300.4 	DEPARTMENT OF REVENUE 2015-2016 POLICY AND TECHNICAL 
300.5 	PROVISIONS; MISCELLANEOUS

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

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

300.17 	Sec. 2. Minnesota Statutes 2016, section 270A.03, subdivision 5, is amended to read:
300.18 		Subd. 5.Debt. (a) "Debt" means a legal obligation of a natural person to pay a fixed and 
300.19 	certain amount of money, which equals or exceeds $25 and which is due and payable to a 
300.20 	claimant agency. The term includes criminal fines imposed under section 609.10 or 609.125, 
300.21 	fines imposed for petty misdemeanors as defined in section 609.02, subdivision 4a, and 
300.22 	restitution. A debt may arise under a contractual or statutory obligation, a court order, or 
300.23 	other legal obligation, but need not have been reduced to judgment.
300.24 	A debt includes any legal obligation of a current recipient of assistance which is based 
300.25 	on overpayment of an assistance grant where that payment is based on a client waiver or 
300.26 	an administrative or judicial finding of an intentional program violation; or where the debt 
300.27 	is owed to a program wherein the debtor is not a client at the time notification is provided 
300.28 	to initiate recovery under this chapter and the debtor is not a current recipient of food support, 
300.29 	transitional child care, or transitional medical assistance.
300.30 	(b) A debt does not include any legal obligation to pay a claimant agency for medical 
300.31 	care, including hospitalization if the income of the debtor at the time when the medical care 
300.32 	was rendered does not exceed the following amount:
301.1 	(1) for an unmarried debtor, an income of $8,800 $12,560 or less;
301.2 	(2) for a debtor with one dependent, an income of $11,270 $16,080 or less;
301.3 	(3) for a debtor with two dependents, an income of $13,330 $19,020 or less;
301.4 	(4) for a debtor with three dependents, an income of $15,120 $21,580 or less;
301.5 	(5) for a debtor with four dependents, an income of $15,950 $22,760 or less; and
301.6 	(6) for a debtor with five or more dependents, an income of $16,630 $23,730 or less.
301.7 	For purposes of this paragraph, "debtor" means the individual whose income, together 
301.8 	with the income of the individual's spouse, other than a separated spouse, brings the 
301.9 	individual within the income provisions of this paragraph. For purposes of this paragraph, 
301.10 	a spouse, other than a separated spouse, shall be considered a dependent.
301.11 	(c) The commissioner shall adjust the income amounts in paragraph (b) by the percentage 
301.12 	determined pursuant to the provisions of section 1(f) of the Internal Revenue Code, except 
301.13 	that in section 1(f)(3)(B) the word "1999 2014" shall be substituted for the word "1992." 
301.14 	For 2001 2016, the commissioner shall then determine the percent change from the 12 
301.15 	months ending on August 31, 1999 2014, to the 12 months ending on August 31, 2000 2015, 
301.16 	and in each subsequent year, from the 12 months ending on August 31, 1999 2014, to the 
301.17 	12 months ending on August 31 of the year preceding the taxable year. The determination 
301.18 	of the commissioner pursuant to this subdivision shall not be considered a "rule" and shall 
301.19 	not be subject to the Administrative Procedure Act contained in chapter 14. The income 
301.20 	amount as adjusted must be rounded to the nearest $10 amount. If the amount ends in $5, 
301.21 	the amount is rounded up to the nearest $10 amount.
301.22 	(d) Debt also includes an agreement to pay a MinnesotaCare premium, regardless of the 
301.23 	dollar amount of the premium authorized under section 256L.15, subdivision 1a.

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

301.26 	Sec. 3. Minnesota Statutes 2016, section 270B.14, subdivision 1, is amended to read:
301.27 		Subdivision 1.Disclosure to commissioner of human services. (a) On the request of 
301.28 	the commissioner of human services, the commissioner shall disclose return information 
301.29 	regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A, to the 
301.30 	extent provided in paragraph (b) and for the purposes set forth in paragraph (c).
302.1 	(b) Data that may be disclosed are limited to data relating to the identity, whereabouts, 
302.2 	employment, income, and property of a person owing or alleged to be owing an obligation 
302.3 	of child support.
302.4 	(c) The commissioner of human services may request data only for the purposes of 
302.5 	carrying out the child support enforcement program and to assist in the location of parents 
302.6 	who have, or appear to have, deserted their children. Data received may be used only as set 
302.7 	forth in section 256.978.
302.8 	(d) The commissioner shall provide the records and information necessary to administer 
302.9 	the supplemental housing allowance to the commissioner of human services.
302.10 	(e) At the request of the commissioner of human services, the commissioner of revenue 
302.11 	shall electronically match the Social Security numbers and names of participants in the 
302.12 	telephone assistance plan operated under sections 237.69 to 237.71, with those of property 
302.13 	tax refund filers, and determine whether each participant's household income is within the 
302.14 	eligibility standards for the telephone assistance plan.
302.15 	(f) The commissioner may provide records and information collected under sections 
302.16 	295.50 to 295.59 to the commissioner of human services for purposes of the Medicaid 
302.17 	Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law 
302.18 	102-234. Upon the written agreement by the United States Department of Health and Human 
302.19 	Services to maintain the confidentiality of the data, the commissioner may provide records 
302.20 	and information collected under sections 295.50 to 295.59 to the Centers for Medicare and 
302.21 	Medicaid Services section of the United States Department of Health and Human Services 
302.22 	for purposes of meeting federal reporting requirements.
302.23 	(g) The commissioner may provide records and information to the commissioner of 
302.24 	human services as necessary to administer the early refund of refundable tax credits.
302.25 	(h) The commissioner may disclose information to the commissioner of human services 
302.26 	as necessary to verify income for income verification for eligibility and premium payment 
302.27 	under the MinnesotaCare program, under section 256L.05, subdivision 2, as well as the 
302.28 	medical assistance program under chapter 256B.
302.29 	(i) The commissioner may disclose information to the commissioner of human services 
302.30 	necessary to verify whether applicants or recipients for the Minnesota family investment 
302.31 	program, general assistance, food support, Minnesota supplemental aid program, and child 
302.32 	care assistance have claimed refundable tax credits under chapter 290 and the property tax 
302.33 	refund under chapter 290A, and the amounts of the credits.
303.1 	(j) The commissioner may disclose information to the commissioner of human services 
303.2 	necessary to verify income for purposes of calculating parental contribution amounts under 
303.3 	section 252.27, subdivision 2a.

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

303.5 	Sec. 4. Minnesota Statutes 2016, section 270C.30, is amended to read:
303.6 	270C.30 RETURNS AND OTHER DOCUMENTS; FORMAT; FURNISHING.
303.7 	Except as otherwise provided by law, the commissioner shall prescribe the content and,
303.8 	format, and manner of all returns and other forms required to be filed under a law 
303.9 	administered by the commissioner, and may furnish them subject to charge on application.

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

303.11 	Sec. 5. Minnesota Statutes 2016, section 270C.33, subdivision 5, is amended to read:
303.12 		Subd. 5.Prohibition against collection during appeal period of an order. No collection 
303.13 	action can be taken on an order of assessment, or any other order imposing a liability, 
303.14 	including the filing of liens under section 270C.63, and no late payment penalties may be 
303.15 	imposed when a return has been filed for the tax type and period upon which the order is 
303.16 	based, during the appeal period of an order. The appeal period of an order ends: (1) 60 days 
303.17 	after the order has been mailed to the taxpayer notice date designated by the commissioner
303.18 	on the order; (2) if an administrative appeal is filed under section 270C.35, 60 days after
303.19 	the notice date designated by the commissioner on the written determination of the 
303.20 	administrative appeal; (3) if an appeal to Tax Court is filed under chapter 271, when the 
303.21 	decision of the Tax Court is made; or (4) if an appeal to Tax Court is filed and the appeal 
303.22 	is based upon a constitutional challenge to the tax, 60 days after final determination of the 
303.23 	appeal. This subdivision does not apply to a jeopardy assessment under section 270C.36, 
303.24 	or a jeopardy collection under section 270C.36.

303.25 	EFFECTIVE DATE. This section is effective for orders dated after December 31, 
303.26 	2017.

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

304.5 	EFFECTIVE DATE. This section is effective for assessments dated after December 
304.6 	31, 2017.

304.7 	Sec. 7. Minnesota Statutes 2016, section 270C.34, subdivision 2, is amended to read:
304.8 		Subd. 2.Procedure. (a) A request for abatement of penalty under subdivision 1 or 
304.9 	section 289A.60, subdivision 4, or a request for abatement of interest or additional tax 
304.10 	charge, must be filed with the commissioner within 60 days of the notice date of the notice 
304.11 	was mailed to the taxpayer's last known address, stating that a penalty has been imposed or 
304.12 	additional tax charge. For purposes of this section, "notice date" means the notice date 
304.13 	designated by the commissioner on the order or other notice that a penalty or additional tax 
304.14 	charge has been imposed.
304.15 	(b) If the commissioner issues an order denying a request for abatement of penalty, 
304.16 	interest, or additional tax charge, the taxpayer may file an administrative appeal as provided 
304.17 	in section 270C.35 or appeal to Tax Court as provided in section 271.06.
304.18 	(c) If the commissioner does not issue an order on the abatement request within 60 days 
304.19 	from the date the request is received, the taxpayer may appeal to Tax Court as provided in 
304.20 	section 271.06.

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

304.23 	Sec. 8. Minnesota Statutes 2016, section 270C.35, subdivision 3, is amended to read:
304.24 		Subd. 3.Notice date. For purposes of this section, the term "notice date" means the
304.25 	notice date of designated by the commissioner on the order adjusting the tax or order denying 
304.26 	a request for abatement, or, in the case of a denied refund, the notice date of designated by 
304.27 	the commissioner on the notice of denial.

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

305.1 	Sec. 9. Minnesota Statutes 2016, section 270C.35, is amended by adding a subdivision to 
305.2 	read:
305.3 		Subd. 11.Dismissal of administrative appeal. If a taxpayer files an administrative 
305.4 	appeal for an order of the commissioner and also files an appeal to the Tax Court for that 
305.5 	same order of the commissioner, the administrative appeal is dismissed and the commissioner 
305.6 	is no longer required to make a determination of appeal under subdivision 6.

305.7 	EFFECTIVE DATE. This section is effective for all administrative appeals filed after 
305.8 	June 30, 2017.

305.9 	Sec. 10. Minnesota Statutes 2016, section 270C.38, subdivision 1, is amended to read:
305.10 		Subdivision 1.Sufficient notice. (a) If no method of notification of a written 
305.11 	determination or action of the commissioner is otherwise specifically provided for by law, 
305.12 	notice of the determination or action sent postage prepaid by United States mail to the 
305.13 	taxpayer or other person affected by the determination or action at the taxpayer's or person's 
305.14 	last known address, is sufficient. If the taxpayer or person being notified is deceased or is 
305.15 	under a legal disability, or, in the case of a corporation being notified that has terminated 
305.16 	its existence, notice to the last known address of the taxpayer, person, or corporation is 
305.17 	sufficient, unless the department has been provided with a new address by a party authorized 
305.18 	to receive notices from the commissioner.
305.19 	(b) If a taxpayer or other person agrees to accept notification by electronic means, notice 
305.20 	of a determination or action of the commissioner sent by electronic mail to the taxpayer's 
305.21 	or person's last known electronic mailing address as provided for in section 325L.08 is 
305.22 	sufficient.
305.23 	(c) Notice of a determination or action of the commissioner is sufficient if it is sent on 
305.24 	or before the notice date designated by the commissioner on the notice.

305.25 	EFFECTIVE DATE. This section is effective for notices dated after December 31, 
305.26 	2017.

305.27 	Sec. 11. Minnesota Statutes 2016, section 270C.72, subdivision 4, is amended to read:
305.28 		Subd. 4.Licensing authority; duties. All licensing authorities must require the applicant 
305.29 	to provide the applicant's Social Security number or individual taxpayer identification 
305.30 	number and Minnesota business identification number, as applicable, on all license 
305.31 	applications. Upon request of the commissioner, the licensing authority must provide the 
305.32 	commissioner with a list of all applicants, including the name, address, business name and 
306.1 	address, and Social Security number, or individual taxpayer identification number and 
306.2 	business identification number, as applicable, of each applicant. The commissioner may 
306.3 	request from a licensing authority a list of the applicants no more than once each calendar 
306.4 	year.

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

306.6 	Sec. 12. Minnesota Statutes 2016, section 271.06, subdivision 2, is amended to read:
306.7 		Subd. 2.Time; notice; intervention. Except as otherwise provided by law, within 60 
306.8 	days after the notice of the making and filing date of an order of the commissioner of revenue, 
306.9 	the appellant, or the appellant's attorney, shall serve a notice of appeal upon the commissioner 
306.10 	and file the original, with proof of such service, with the Tax Court administrator or with 
306.11 	the court administrator of district court acting as court administrator of the Tax Court; 
306.12 	provided, that the Tax Court, for cause shown, may by written order extend the time for 
306.13 	appealing for an additional period not exceeding 30 days. For purposes of this section, 
306.14 	"notice date" means the notice date designated by the commissioner on the order. The notice 
306.15 	of appeal shall be in the form prescribed by the Tax Court. Within five days after receipt, 
306.16 	the commissioner shall transmit a copy of the notice of appeal to the attorney general. The 
306.17 	attorney general shall represent the commissioner, if requested, upon all such appeals except 
306.18 	in cases where the attorney general has appealed in behalf of the state, or in other cases 
306.19 	where the attorney general deems it against the interests of the state to represent the 
306.20 	commissioner, in which event the attorney general may intervene or be substituted as an 
306.21 	appellant in behalf of the state at any stage of the proceedings.
306.22 	Upon a final determination of any other matter over which the court is granted jurisdiction 
306.23 	under section 271.01, subdivision 5, the taxpayer or the taxpayer's attorney shall file a 
306.24 	petition or notice of appeal as provided by law with the court administrator of district court, 
306.25 	acting in the capacity of court administrator of the Tax Court, with proof of service of the 
306.26 	petition or notice of appeal as required by law and within the time required by law. As used 
306.27 	in this subdivision, "final determination" includes a notice of assessment and equalization 
306.28 	for the year in question received from the local assessor, an order of the local board of 
306.29 	equalization, or an order of a county board of equalization.
306.30 	The Tax Court shall prescribe a filing system so that the notice of appeal or petition filed 
306.31 	with the district court administrator acting as court administrator of the Tax Court is 
306.32 	forwarded to the Tax Court administrator. In the case of an appeal or a petition concerning 
306.33 	property valuation for which the assessor, a local board of equalization, a county board of 
306.34 	equalization or the commissioner of revenue has issued an order, the officer issuing the 
307.1 	order shall be notified of the filing of the appeal. The notice of appeal or petition shall be 
307.2 	in the form prescribed by the Tax Court.

307.3 	EFFECTIVE DATE. This section is effective for orders dated after December 31, 
307.4 	2017.

307.5 	Sec. 13. Minnesota Statutes 2016, section 271.06, subdivision 7, is amended to read:
307.6 		Subd. 7.Rules. Except as provided in section 278.05, subdivision 6, the Rules of 
307.7 	Evidence and Civil Procedure for the district court of Minnesota shall govern the procedures 
307.8 	in the Tax Court, where practicable. The Rules of Civil Procedure do not apply to alter the 
307.9 	60-day period of time to file a notice of appeal provided in subdivision 2. The Tax Court 
307.10 	may adopt rules under chapter 14.

307.11 	EFFECTIVE DATE. This section is effective for orders dated after December 31, 
307.12 	2017.

307.13 	Sec. 14. Minnesota Statutes 2016, section 272.02, subdivision 10, is amended to read:
307.14 		Subd. 10.Personal property used for pollution control. Personal property used 
307.15 	primarily for the abatement and control of air, water, or land pollution is exempt to the 
307.16 	extent that it is so used, and real property is exempt if it is used primarily for abatement and 
307.17 	control of air, water, or land pollution as part of an agricultural operation, as a part of a 
307.18 	centralized treatment and recovery facility operating under a permit issued by the Minnesota 
307.19 	Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota Rules, parts 
307.20 	7001.0500 to 7001.0730, and 7045.0020 to 7045.1030, as a wastewater treatment facility 
307.21 	and for the treatment, recovery, and stabilization of metals, oils, chemicals, water, sludges, 
307.22 	or inorganic materials from hazardous industrial wastes, or as part of an electric generation 
307.23 	system. For purposes of this subdivision, personal property includes ponderous machinery 
307.24 	and equipment used in a business or production activity that at common law is considered 
307.25 	real property.
307.26 	Any taxpayer requesting exemption of all or a portion of any real property or any 
307.27 	equipment or device, or part thereof, operated primarily for the control or abatement of air, 
307.28 	water, or land pollution shall file an application with the commissioner of revenue. The 
307.29 	commissioner shall develop an electronic means to notify interested parties when electric 
307.30 	power generation facilities have filed an application. The commissioner shall prescribe the 
307.31 	content, format, and manner of the application pursuant to section 270C.30, except that a 
307.32 	"law administered by the commissioner" includes the property tax laws, and if an application 
307.33 	is made by electronic means, the taxpayer's signature is defined pursuant to section 270C.304, 
308.1 	except that a "law administered by the commissioner" includes the property tax laws. The 
308.2 	Minnesota Pollution Control Agency shall upon request of the commissioner furnish 
308.3 	information and advice to the commissioner.
308.4 	The information and advice furnished by the Minnesota Pollution Control Agency must 
308.5 	include statements as to whether the equipment, device, or real property meets a standard, 
308.6 	rule, criteria, guideline, policy, or order of the Minnesota Pollution Control Agency, and 
308.7 	whether the equipment, device, or real property is installed or operated in accordance with 
308.8 	it. On determining that property qualifies for exemption, the commissioner shall issue an 
308.9 	order exempting the property from taxation. The commissioner shall develop an electronic 
308.10 	means to notify interested parties when the commissioner has issued an order exempting 
308.11 	property from taxation under this subdivision. The equipment, device, or real property shall 
308.12 	continue to be exempt from taxation as long as the order issued by the commissioner remains 
308.13 	in effect.

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

308.15 	Sec. 15. Minnesota Statutes 2016, section 272.0211, subdivision 1, is amended to read:
308.16 		Subdivision 1.Efficiency determination and certification. An owner or operator of a 
308.17 	new or existing electric power generation facility, excluding wind energy conversion systems, 
308.18 	may apply to the commissioner of revenue for a market value exclusion on the property as 
308.19 	provided for in this section. This exclusion shall apply only to the market value of the 
308.20 	equipment of the facility, and shall not apply to the structures and the land upon which the 
308.21 	facility is located. The commissioner of revenue shall prescribe the forms content, format, 
308.22 	manner, and procedures for this application pursuant to section 270C.30, except that a "law 
308.23 	administered by the commissioner" includes the property tax laws. If an application is made 
308.24 	by electronic means, the taxpayer's signature is defined pursuant to section 270C.304, except 
308.25 	that a "law administered by the commissioner" includes the property tax laws. Upon receiving 
308.26 	the application, the commissioner of revenue shall: (1) request the commissioner of commerce 
308.27 	to make a determination of the efficiency of the applicant's electric power generation facility; 
308.28 	and (2) shall develop an electronic means to notify interested parties when electric power 
308.29 	generation facilities have filed an application. The commissioner of commerce shall calculate 
308.30 	efficiency as the ratio of useful energy outputs to energy inputs, expressed as a percentage, 
308.31 	based on the performance of the facility's equipment during normal full load operation. The 
308.32 	commissioner must include in this formula the energy used in any on-site preparation of 
308.33 	materials necessary to convert the materials into the fuel used to generate electricity, such 
308.34 	as a process to gasify petroleum coke. The commissioner shall use the Higher Heating Value 
309.1 	(HHV) for all substances in the commissioner's efficiency calculations, except for wood 
309.2 	for fuel in a biomass-eligible project under section 216B.2424; for these instances, the 
309.3 	commissioner shall adjust the heating value to allow for energy consumed for evaporation 
309.4 	of the moisture in the wood. The applicant shall provide the commissioner of commerce 
309.5 	with whatever information the commissioner deems necessary to make the determination. 
309.6 	Within 30 days of the receipt of the necessary information, the commissioner of commerce 
309.7 	shall certify the findings of the efficiency determination to the commissioner of revenue 
309.8 	and to the applicant. The commissioner of commerce shall determine the efficiency of the 
309.9 	facility and certify the findings of that determination to the commissioner of revenue every 
309.10 	two years thereafter from the date of the original certification.

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

309.12 	Sec. 16. Minnesota Statutes 2016, section 272.025, subdivision 1, is amended to read:
309.13 		Subdivision 1.Statement of exemption. (a) Except in the case of property owned by 
309.14 	the state of Minnesota or any political subdivision thereof, and property exempt from taxation 
309.15 	under section 272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22 to 25, and at the times 
309.16 	provided in subdivision 3, a taxpayer claiming an exemption from taxation on property 
309.17 	described in section 272.02, subdivisions 2 to 33, must file a statement of exemption with 
309.18 	the assessor of the assessment district in which the property is located.
309.19 	(b) A taxpayer claiming an exemption from taxation on property described in section 
309.20 	272.02, subdivision 10, must file a statement of exemption with the commissioner of revenue, 
309.21 	on or before February 15 of each year for which the taxpayer claims an exemption.
309.22 	(c) In case of sickness, absence or other disability or for good cause, the assessor or the 
309.23 	commissioner may extend the time for filing the statement of exemption for a period not to 
309.24 	exceed 60 days.
309.25 	(d) The commissioner of revenue shall prescribe the form and contents content, format, 
309.26 	and manner of the statement of exemption pursuant to section 270C.30, except that a "law 
309.27 	administered by the commissioner" includes the property tax laws.
309.28 	(e) If a statement is made by electronic means, the taxpayer's signature is defined pursuant 
309.29 	to section 270C.304, except that a "law administered by the commissioner" includes the 
309.30 	property tax laws.

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

310.1 	Sec. 17. Minnesota Statutes 2016, section 272.029, subdivision 4, is amended to read:
310.2 		Subd. 4.Reports. (a) An owner of a wind energy conversion system subject to tax under 
310.3 	subdivision 3 shall file a report with the commissioner of revenue annually on or before 
310.4 	February 1 January 15 detailing the amount of electricity in kilowatt-hours that was produced 
310.5 	by the wind energy conversion system for the previous calendar year. The commissioner 
310.6 	shall prescribe the form content, format, and manner of the report pursuant to section 
310.7 	270C.30, except that a "law administered by the commissioner" includes the property tax 
310.8 	laws. The report must contain the information required by the commissioner to determine 
310.9 	the tax due to each county under this section for the current year. If an owner of a wind 
310.10 	energy conversion system subject to taxation under this section fails to file the report by 
310.11 	the due date, the commissioner of revenue shall determine the tax based upon the nameplate 
310.12 	capacity of the system multiplied by a capacity factor of 60 percent.
310.13 	(b) If a report is made by electronic means, the taxpayer's signature is defined pursuant 
310.14 	to section 270C.304, except that a "law administered by the commissioner" includes the 
310.15 	property tax laws.
310.16 	(b) (c) On or before February 28, the commissioner of revenue shall notify the owner 
310.17 	of the wind energy conversion systems of the tax due to each county for the current year 
310.18 	and shall certify to the county auditor of each county in which the systems are located the 
310.19 	tax due from each owner for the current year.

310.20 	EFFECTIVE DATE. This section is effective the day following final enactment, except 
310.21 	that the amendment in paragraph (a) moving the date to file the report is effective for reports 
310.22 	filed in 2018 and thereafter.

310.23 	Sec. 18. Minnesota Statutes 2016, section 272.0295, subdivision 4, is amended to read:
310.24 		Subd. 4.Reports. An owner of a solar energy generating system subject to tax under 
310.25 	this section shall file a report with the commissioner of revenue annually on or before 
310.26 	January 15 detailing the amount of electricity in megawatt-hours that was produced by the 
310.27 	system in the previous calendar year. The commissioner shall prescribe the form content, 
310.28 	format, and manner of the report pursuant to section 270C.30. The report must contain the 
310.29 	information required by the commissioner to determine the tax due to each county under 
310.30 	this section for the current year. If an owner of a solar energy generating system subject to 
310.31 	taxation under this section fails to file the report by the due date, the commissioner of 
310.32 	revenue shall determine the tax based upon the nameplate capacity of the system multiplied 
310.33 	by a capacity factor of 30 percent.

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

311.2 	Sec. 19. Minnesota Statutes 2016, section 272.115, subdivision 2, is amended to read:
311.3 		Subd. 2.Form; information required. The certificate of value shall require such facts 
311.4 	and information as may be determined by the commissioner to be reasonably necessary in 
311.5 	the administration of the state education aid formulas. The form commissioner shall prescribe 
311.6 	the content, format, and manner of the certificate of value shall be prescribed by the 
311.7 	Department of Revenue which shall provide an adequate supply of forms to each county 
311.8 	auditor pursuant to section 270C.30, except that a "law administered by the commissioner" 
311.9 	includes the property tax laws.

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

311.11 	Sec. 20. Minnesota Statutes 2016, section 273.124, subdivision 13, is amended to read:
311.12 		Subd. 13.Homestead application. (a) A person who meets the homestead requirements 
311.13 	under subdivision 1 must file a homestead application with the county assessor to initially 
311.14 	obtain homestead classification.
311.15 	(b) The format and contents of a uniform homestead application shall be prescribed by 
311.16 	the commissioner of revenue. The commissioner shall prescribe the content, format, and 
311.17 	manner of the homestead application required to be filed under this chapter pursuant to 
311.18 	section 270C.30. The application must clearly inform the taxpayer that this application must 
311.19 	be signed by all owners who occupy the property or by the qualifying relative and returned 
311.20 	to the county assessor in order for the property to receive homestead treatment.
311.21 	(c) Every property owner applying for homestead classification must furnish to the 
311.22 	county assessor the Social Security number of each occupant who is listed as an owner of 
311.23 	the property on the deed of record, the name and address of each owner who does not occupy 
311.24 	the property, and the name and Social Security number of each owner's spouse who occupies 
311.25 	the property. The application must be signed by each owner who occupies the property and 
311.26 	by each owner's spouse who occupies the property, or, in the case of property that qualifies 
311.27 	as a homestead under subdivision 1, paragraph (c), by the qualifying relative.
311.28 	If a property owner occupies a homestead, the property owner's spouse may not claim 
311.29 	another property as a homestead unless the property owner and the property owner's spouse 
311.30 	file with the assessor an affidavit or other proof required by the assessor stating that the 
311.31 	property qualifies as a homestead under subdivision 1, paragraph (e).
312.1 	Owners or spouses occupying residences owned by their spouses and previously occupied 
312.2 	with the other spouse, either of whom fail to include the other spouse's name and Social 
312.3 	Security number on the homestead application or provide the affidavits or other proof 
312.4 	requested, will be deemed to have elected to receive only partial homestead treatment of 
312.5 	their residence. The remainder of the residence will be classified as nonhomestead residential. 
312.6 	When an owner or spouse's name and Social Security number appear on homestead 
312.7 	applications for two separate residences and only one application is signed, the owner or 
312.8 	spouse will be deemed to have elected to homestead the residence for which the application 
312.9 	was signed.
312.10 	(d) If residential real estate is occupied and used for purposes of a homestead by a relative 
312.11 	of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in order for 
312.12 	the property to receive homestead status, a homestead application must be filed with the 
312.13 	assessor. The Social Security number of each relative and spouse of a relative occupying 
312.14 	the property shall be required on the homestead application filed under this subdivision. If 
312.15 	a different relative of the owner subsequently occupies the property, the owner of the property 
312.16 	must notify the assessor within 30 days of the change in occupancy. The Social Security 
312.17 	number of a relative or relative's spouse occupying the property is private data on individuals 
312.18 	as defined by section 13.02, subdivision 12, but may be disclosed to the commissioner of 
312.19 	revenue, or, for the purposes of proceeding under the Revenue Recapture Act to recover 
312.20 	personal property taxes owing, to the county treasurer.
312.21 	(e) The homestead application shall also notify the property owners that if the property 
312.22 	is granted homestead status for any assessment year, that same property shall remain 
312.23 	classified as homestead until the property is sold or transferred to another person, or the 
312.24 	owners, the spouse of the owner, or the relatives no longer use the property as their 
312.25 	homestead. Upon the sale or transfer of the homestead property, a certificate of value must 
312.26 	be timely filed with the county auditor as provided under section 272.115. Failure to notify 
312.27 	the assessor within 30 days that the property has been sold, transferred, or that the owner, 
312.28 	the spouse of the owner, or the relative is no longer occupying the property as a homestead, 
312.29 	shall result in the penalty provided under this subdivision and the property will lose its 
312.30 	current homestead status.
312.31 	(f) If a homestead application has not been filed with the county by December 15, the 
312.32 	assessor shall classify the property as nonhomestead for the current assessment year for 
312.33 	taxes payable in the following year, provided that the owner may be entitled to receive the 
312.34 	homestead classification by proper application under section 375.192.

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

313.1 	Sec. 21. Minnesota Statutes 2016, section 273.371, is amended to read:
313.2 	273.371 REPORTS OF UTILITY COMPANIES.
313.3 		Subdivision 1.Report required. Every electric light, power, gas, water, express, stage, 
313.4 	and transportation company, and pipeline company doing business in Minnesota shall 
313.5 	annually file with the commissioner on or before March 31 a report under oath setting forth 
313.6 	the information prescribed by the commissioner to enable the commissioner to make 
313.7 	valuations, recommended valuations, and equalization required under sections 273.33, 
313.8 	273.35, 273.36, 273.37, and 273.3711. The commissioner shall prescribe the content, format, 
313.9 	and manner of the report pursuant to section 270C.30, except that a "law administered by 
313.10 	the commissioner" includes the property tax laws. If all the required information is not 
313.11 	available on March 31, the company or pipeline shall file the information that is available 
313.12 	on or before March 31, and the balance of the information as soon as it becomes available.
313.13 	If a report is made by electronic means, the taxpayer's signature is defined pursuant to section 
313.14 	270C.304, except that a "law administered by the commissioner" includes the property tax 
313.15 	laws.
313.16 		Subd. 2.Extension. The commissioner for good cause may extend the time for filing 
313.17 	the report required by subdivision 1. The extension may must not exceed 15 days.
313.18 		Subd. 3.Reports filed by the commissioner. If a company fails to file a report required 
313.19 	by subdivision 1, the commissioner may, from information in the commissioner's possession 
313.20 	or obtainable by the commissioner, make and file a report for the company or make the 
313.21 	valuations, recommended valuations, and equalizations required under sections 273.33, 
313.22 	273.35 to 273.37, and 273.3711.

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

313.24 	Sec. 22. Minnesota Statutes 2016, section 287.2205, is amended to read:
313.25 	287.2205 TAX-FORFEITED LAND.
313.26 	Before a state deed for tax-forfeited land may be issued, the deed tax must be paid by 
313.27 	the purchaser of tax-forfeited land whether the purchase is the result of a public auction or 
313.28 	private sale or a repurchase of tax-forfeited land. State agencies and local units of government 
313.29 	that acquire tax-forfeited land by purchase or any other means are subject to this section. 
313.30 	The deed tax is $1.65 for a conveyance of tax-forfeited lands to a governmental subdivision 
313.31 	for an authorized public use under section 282.01, subdivision 1a, for a school forest under 
313.32 	section 282.01, subdivision 1a, or for redevelopment purposes under section 282.01, 
313.33 	subdivision 1b.

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

314.2 	Sec. 23. Minnesota Statutes 2016, section 289A.08, is amended by adding a subdivision 
314.3 	to read:
314.4 		Subd. 17.Format. The commissioner shall prescribe the content, format, and manner 
314.5 	of the returns and other documents pursuant to section 270C.30. This does not authorize 
314.6 	the commissioner to require individual income taxpayers to file individual income tax returns 
314.7 	electronically.

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

314.9 	Sec. 24. Minnesota Statutes 2016, section 289A.09, subdivision 1, is amended to read:
314.10 		Subdivision 1.Returns. (a) An employer who is required to deduct and withhold tax 
314.11 	under section 290.92, subdivision 2a or 3, and a person required to deduct and withhold tax 
314.12 	under section 290.923, subdivision 2, must file a return with the commissioner for each 
314.13 	quarterly period unless otherwise prescribed by the commissioner.
314.14 	(b) A person or corporation required to make deposits under section 290.9201, subdivision 
314.15 	8, must file an entertainer withholding tax return with the commissioner.
314.16 	(c) A person required to withhold an amount under section 290.9705, subdivision 1, 
314.17 	must file a return.
314.18 	(d) A partnership required to deduct and withhold tax under section 290.92, subdivision 
314.19 	4b, must file a return.
314.20 	(e) An S corporation required to deduct and withhold tax under section 290.92, 
314.21 	subdivision 4c, must also file a return.
314.22 	(f) Returns must be filed in the form and manner, and contain the information prescribed 
314.23 	by the commissioner. The commissioner shall prescribe the content, format, and manner 
314.24 	of the returns pursuant to section 270C.30. Every return for taxes withheld must be signed 
314.25 	by the employer, entertainment entity, contract payor, partnership, or S corporation, or a 
314.26 	designee.

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

314.28 	Sec. 25. Minnesota Statutes 2016, section 289A.11, subdivision 1, is amended to read:
314.29 		Subdivision 1.Return required. (a) Except as provided in section 289A.18, subdivision 
314.30 	4, for the month in which taxes imposed by chapter 297A are payable, or for which a return 
315.1 	is due, a return for the preceding reporting period must be filed with the commissioner in 
315.2 	the form and manner the commissioner prescribes. The commissioner shall prescribe the 
315.3 	content, format, and manner of the returns pursuant to section 270C.30. A person making 
315.4 	sales at retail at two or more places of business may file a consolidated return subject to 
315.5 	rules prescribed by the commissioner. In computing the dollar amount of items on the return, 
315.6 	the amounts are rounded off to the nearest whole dollar, disregarding amounts less than 50 
315.7 	cents and increasing amounts of 50 cents to 99 cents to the next highest dollar.
315.8 	(b) Notwithstanding this subdivision, a person who is not required to hold a sales tax 
315.9 	permit under chapter 297A and who makes annual purchases, for use in a trade or business, 
315.10 	of less than $18,500, or a person who is not required to hold a sales tax permit and who 
315.11 	makes purchases for personal use, that are subject to the use tax imposed by section 297A.63, 
315.12 	may file an annual use tax return on a form prescribed by the commissioner. The 
315.13 	commissioner shall prescribe the content, format, and manner of the return pursuant to 
315.14 	section 270C.30. If a person who qualifies for an annual use tax reporting period is required 
315.15 	to obtain a sales tax permit or makes use tax purchases, for use in a trade or business, in 
315.16 	excess of $18,500 during the calendar year, the reporting period must be considered ended 
315.17 	at the end of the month in which the permit is applied for or the purchase in excess of 
315.18 	$18,500 is made and a return must be filed for the preceding reporting period.
315.19 	(c) Notwithstanding paragraph paragraphs (a) and (b), a person prohibited by the person's 
315.20 	religious beliefs from using electronics shall be allowed to file by mail, without any additional 
315.21 	fees. The filer must notify the commissioner of revenue of the intent to file by mail on a 
315.22 	form prescribed by the commissioner. A return filed under this paragraph must be postmarked 
315.23 	no later than the day the return is due in order to be considered filed on a timely basis.

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

315.25 	Sec. 26. Minnesota Statutes 2016, section 289A.18, subdivision 1, is amended to read:
315.26 		Subdivision 1.Individual income, fiduciary income, corporate franchise, and 
315.27 	entertainment taxes; partnership and S corporation returns; information returns; 
315.28 	mining company returns. The returns required to be made under sections 289A.08 and 
315.29 	289A.12 must be filed at the following times:
315.30 	(1) returns made on the basis of the calendar year must be filed on April 15 following 
315.31 	the close of the calendar year, except that returns of corporations and partnerships must be 
315.32 	filed on the due date for filing the federal income tax return;
316.1 	(2) returns made on the basis of the fiscal year must be filed on the 15th day of the fourth 
316.2 	month following the close of the fiscal year, except that returns of corporations and 
316.3 	partnerships must be filed on the due date for filing the federal income tax return;
316.4 	(3) returns for a fractional part of a year must be filed on the due date for filing the 
316.5 	federal income tax return;
316.6 	(4) in the case of a final return of a decedent for a fractional part of a year, the return 
316.7 	must be filed on the 15th day of the fourth month following the close of the 12-month period 
316.8 	that began with the first day of that fractional part of a year;
316.9 	(5) in the case of the return of a cooperative association, returns must be filed on or 
316.10 	before the 15th day of the ninth month following the close of the taxable year;
316.11 	(6) if a corporation has been divested from a unitary group and files a return for a 
316.12 	fractional part of a year in which it was a member of a unitary business that files a combined 
316.13 	report under section 290.17, subdivision 4, the divested corporation's return must be filed 
316.14 	on the 15th day of the third month following the close of the common accounting period 
316.15 	that includes the fractional year;
316.16 	(7) returns of entertainment entities must be filed on April 15 following the close of the 
316.17 	calendar year;
316.18 	(8) returns required to be filed under section 289A.08, subdivision 4, must be filed on 
316.19 	the 15th day of the fifth month following the close of the taxable year;
316.20 	(9) returns of mining companies must be filed on May 1 following the close of the 
316.21 	calendar year; and
316.22 	(10) returns required to be filed with the commissioner under section 289A.12, 
316.23 	subdivision 2, 4 to 10, or 16 must be filed within 30 days after being demanded by the 
316.24 	commissioner.

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

316.26 	Sec. 27. Minnesota Statutes 2016, section 289A.37, subdivision 2, is amended to read:
316.27 		Subd. 2.Erroneous refunds. An erroneous refund is considered an underpayment of 
316.28 	tax on the date made. An assessment of a deficiency arising out of an erroneous refund may 
316.29 	be made at any time within two years from the making of the refund. If part of the refund 
316.30 	was induced by fraud or misrepresentation of a material fact, the assessment may be made 
316.31 	at any time. (a) Except as provided in paragraph (b), an erroneous refund occurs when the 
316.32 	commissioner issues a payment to a person that exceeds the amount the person is entitled 
317.1 	to receive under law. An erroneous refund is considered an underpayment of tax on the date 
317.2 	issued.
317.3 	(b) To the extent that the amount paid does not exceed the amount claimed by the 
317.4 	taxpayer, an erroneous refund does not include the following:
317.5 	(1) any amount of a refund or credit paid pursuant to a claim for refund filed by a 
317.6 	taxpayer, including but not limited to refunds of claims made under section 290.06, 
317.7 	subdivision 23; 290.067; 290.0671; 290.0672; 290.0674; 290.0675; 290.0677; 290.068; 
317.8 	290.0681; or 290.0692; or chapter 290A; or
317.9 	(2) any amount paid pursuant to a claim for refund of an overpayment of tax filed by a 
317.10 	taxpayer.
317.11 	(c) The commissioner may make an assessment to recover an erroneous refund at any 
317.12 	time within two years from the issuance of the erroneous refund. If all or part of the erroneous 
317.13 	refund was induced by fraud or misrepresentation of a material fact, the assessment may 
317.14 	be made at any time.
317.15 	(d) Assessments of amounts that are not erroneous refunds under paragraph (b) must be 
317.16 	conducted under section 289A.38.

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

317.18 	Sec. 28. Minnesota Statutes 2016, section 289A.50, subdivision 7, is amended to read:
317.19 		Subd. 7.Remedies. (a) If the taxpayer is notified by the commissioner that the refund 
317.20 	claim is denied in whole or in part, the taxpayer may:
317.21 	(1) file an administrative appeal as provided in section 270C.35, or an appeal with the 
317.22 	Tax Court, within 60 days after issuance the notice date of the commissioner's notice of 
317.23 	denial; or
317.24 	(2) file an action in the district court to recover the refund.
317.25 	(b) An action in the district court on a denied claim for refund must be brought within 
317.26 	18 months of the notice date of the denial of the claim by the commissioner. For the purposes 
317.27 	of this section, "notice date" has the meaning given in section 270C.35, subdivision 3.
317.28 	(c) No action in the district court or the Tax Court shall be brought within six months 
317.29 	of the filing of the refund claim unless the commissioner denies the claim within that period.
318.1 	(d) If a taxpayer files a claim for refund and the commissioner has not issued a denial 
318.2 	of the claim, the taxpayer may bring an action in the district court or the Tax Court at any 
318.3 	time after the expiration of six months from the time the claim was filed.
318.4 	(e) The commissioner and the taxpayer may agree to extend the period for bringing an 
318.5 	action in the district court.
318.6 	(f) An action for refund of tax by the taxpayer must be brought in the district court of 
318.7 	the district in which lies the county of the taxpayer's residence or principal place of business. 
318.8 	In the case of an estate or trust, the action must be brought at the principal place of its 
318.9 	administration. Any action may be brought in the district court for Ramsey County.

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

318.12 	Sec. 29. [290B.11] FORMS.
318.13 	The commissioner shall prescribe the content, format, and manner of all forms and other 
318.14 	documents required to be filed under this chapter pursuant to section 270C.30.

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

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

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

318.20 	Sec. 31. Minnesota Statutes 2016, section 295.55, subdivision 6, is amended to read:
318.21 		Subd. 6.Form of returns. The estimated payments and annual return must contain the 
318.22 	information and be in the form prescribed by the commissioner. The commissioner shall 
318.23 	prescribe the content, format, and manner of the estimated payment forms and annual return 
318.24 	pursuant to section 270C.30.

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

319.1 	Sec. 32. Minnesota Statutes 2016, section 296A.02, is amended by adding a subdivision 
319.2 	to read:
319.3 		Subd. 5.Forms.  The commissioner shall prescribe the content, format, and manner of 
319.4 	all forms and other documents required to be filed under this chapter pursuant to section 
319.5 	270C.30.

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

319.7 	Sec. 33. Minnesota Statutes 2016, section 296A.22, subdivision 9, is amended to read:
319.8 		Subd. 9.Abatement of penalty. (a) The commissioner may by written order abate any 
319.9 	penalty imposed under this section, if in the commissioner's opinion there is reasonable 
319.10 	cause to do so.
319.11 	(b) A request for abatement of penalty must be filed with the commissioner within 60 
319.12 	days of the notice date of the notice stating that a penalty has been imposed was mailed to 
319.13 	the taxpayer's last known address. For purposes of this section, "notice date" means the 
319.14 	notice date designated by the commissioner on the order or other notice that a penalty has 
319.15 	been imposed.
319.16 	(c) If the commissioner issues an order denying a request for abatement of penalty, the 
319.17 	taxpayer may file an administrative appeal as provided in section 270C.35 or appeal to Tax 
319.18 	Court as provided in section 271.06. If the commissioner does not issue an order on the 
319.19 	abatement request within 60 days from the date the request is received, the taxpayer may 
319.20 	appeal to Tax Court as provided in section 271.06.

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

319.23 	Sec. 34. Minnesota Statutes 2016, section 296A.26, is amended to read:
319.24 	296A.26 JUDICIAL REVIEW; APPEAL TO TAX COURT.
319.25 	In lieu of an administrative appeal under section 270C.35, any person aggrieved by an 
319.26 	order of the commissioner fixing a tax, penalty, or interest under this chapter may, within 
319.27 	60 days from the notice date of the notice of the order, appeal to the Tax Court in the manner 
319.28 	provided under section 271.06. For purposes of this section, "notice date" means the notice 
319.29 	date designated by the commissioner on the order fixing a tax, penalty, or interest.

319.30 	EFFECTIVE DATE. This section is effective for orders dated after December 31, 
319.31 	2017.

320.1 	Sec. 35. Minnesota Statutes 2016, section 297D.02, is amended to read:
320.2 	297D.02 ADMINISTRATION.
320.3 	The commissioner of revenue shall administer this chapter. The commissioner shall 
320.4 	prescribe the content, format, and manner of all forms and other documents required to be 
320.5 	filed under this chapter pursuant to section 270C.30. Payments required by this chapter 
320.6 	must be made to the commissioner on the form provided by the commissioner. Tax obligors 
320.7 	are not required to give their name, address, Social Security number, or other identifying 
320.8 	information on the form. The commissioner shall collect all taxes under this chapter.

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

320.10 	Sec. 36. Minnesota Statutes 2016, section 297E.02, subdivision 3, is amended to read:
320.11 		Subd. 3.Collection; disposition. (a) Taxes imposed by this section are due and payable 
320.12 	to the commissioner when the gambling tax return is required to be filed. Distributors must 
320.13 	file their monthly sales figures with the commissioner on a form prescribed by the 
320.14 	commissioner. Returns covering the taxes imposed under this section must be filed with 
320.15 	the commissioner on or before the 20th day of the month following the close of the previous 
320.16 	calendar month. The commissioner may require that the returns be filed via magnetic media 
320.17 	or electronic data transfer. The commissioner shall prescribe the content, format, and manner 
320.18 	of returns or other documents pursuant to section 270C.30. The proceeds, along with the 
320.19 	revenue received from all license fees and other fees under sections 349.11 to 349.191, 
320.20 	349.211, and 349.213, must be paid to the commissioner of management and budget for 
320.21 	deposit in the general fund.
320.22 	(b) The sales tax imposed by chapter 297A on the sale of pull-tabs and tipboards by the 
320.23 	distributor is imposed on the retail sales price. The retail sale of pull-tabs or tipboards by 
320.24 	the organization is exempt from taxes imposed by chapter 297A and is exempt from all 
320.25 	local taxes and license fees except a fee authorized under section 349.16, subdivision 8.
320.26 	(c) One-half of one percent of the revenue deposited in the general fund under paragraph 
320.27 	(a), is appropriated to the commissioner of human services for the compulsive gambling 
320.28 	treatment program established under section 245.98. One-half of one percent of the revenue 
320.29 	deposited in the general fund under paragraph (a), is appropriated to the commissioner of 
320.30 	human services for a grant to the state affiliate recognized by the National Council on 
320.31 	Problem Gambling to increase public awareness of problem gambling, education and training 
320.32 	for individuals and organizations providing effective treatment services to problem gamblers 
321.1 	and their families, and research relating to problem gambling. Money appropriated by this 
321.2 	paragraph must supplement and must not replace existing state funding for these programs.

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

321.4 	Sec. 37. Minnesota Statutes 2016, section 297E.04, subdivision 1, is amended to read:
321.5 		Subdivision 1.Reports of sales. A manufacturer who sells gambling product for use or 
321.6 	resale in this state, or for receipt by a person or entity in this state, shall file with the 
321.7 	commissioner, on a form prescribed by the commissioner, a report of gambling product 
321.8 	sold to any person in the state, including the established governing body of an Indian tribe 
321.9 	recognized by the United States Department of the Interior. The report must be filed monthly 
321.10 	on or before the 20th day of the month succeeding the month in which the sale was made. 
321.11 	The commissioner may require that the report be submitted via magnetic media or electronic 
321.12 	data transfer. The commissioner shall prescribe the content, format, and manner of returns 
321.13 	or other documents pursuant to section 270C.30. The commissioner may inspect the premises, 
321.14 	books, records, and inventory of a manufacturer without notice during the normal business 
321.15 	hours of the manufacturer. A person violating this section is guilty of a misdemeanor.

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

321.17 	Sec. 38. Minnesota Statutes 2016, section 297E.05, subdivision 4, is amended to read:
321.18 		Subd. 4.Reports. A distributor shall report monthly to the commissioner, on a form the 
321.19 	commissioner prescribes, its sales of each type of gambling product. This report must be 
321.20 	filed monthly on or before the 20th day of the month succeeding the month in which the 
321.21 	sale was made. The commissioner may require that a distributor submit the monthly report 
321.22 	and invoices required in this subdivision via magnetic media or electronic data transfer.
321.23 	The commissioner shall prescribe the content, format, and manner of returns or other 
321.24 	documents pursuant to section 270C.30.

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

321.26 	Sec. 39. Minnesota Statutes 2016, section 297E.06, subdivision 1, is amended to read:
321.27 		Subdivision 1.Reports. An organization must file with the commissioner, on a form 
321.28 	prescribed by the commissioner, a report showing all gambling activity conducted by that 
321.29 	organization for each month. Gambling activity includes all gross receipts, prizes, all 
321.30 	gambling taxes owed or paid to the commissioner, all gambling expenses, and all lawful 
321.31 	purpose and board-approved expenditures. The report must be filed with the commissioner 
321.32 	on or before the 20th day of the month following the month in which the gambling activity 
322.1 	takes place. The commissioner may require that the reports be filed via magnetic media or 
322.2 	electronic data transfer. The commissioner shall prescribe the content, format, and manner 
322.3 	of returns or other documents pursuant to section 270C.30.

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

322.5 	Sec. 40. Minnesota Statutes 2016, section 297F.09, subdivision 1, is amended to read:
322.6 		Subdivision 1.Monthly return; cigarette distributor. On or before the 18th day of 
322.7 	each calendar month, a distributor with a place of business in this state shall file a return 
322.8 	with the commissioner showing the quantity of cigarettes manufactured or brought in from 
322.9 	outside the state or purchased during the preceding calendar month and the quantity of 
322.10 	cigarettes sold or otherwise disposed of in this state and outside this state during that month. 
322.11 	A licensed distributor outside this state shall in like manner file a return showing the quantity 
322.12 	of cigarettes shipped or transported into this state during the preceding calendar month. 
322.13 	Returns must be made in the form and manner prescribed by The commissioner  shall 
322.14 	prescribe the content, format, and manner of returns pursuant to section 270C.30, and the 
322.15 	returns must contain any other information required by the commissioner. The return must 
322.16 	be accompanied by a remittance for the full unpaid tax liability shown by it. For distributors 
322.17 	subject to the accelerated tax payment requirements in subdivision 10, the return for the 
322.18 	May liability is due two business days before June 30th of the year and the return for the 
322.19 	June liability is due on or before August 18th of the year.

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

322.21 	Sec. 41. Minnesota Statutes 2016, section 297F.23, is amended to read:
322.22 	297F.23 JUDICIAL REVIEW.
322.23 	In lieu of an administrative appeal under section 270C.35, a person aggrieved by an 
322.24 	order of the commissioner fixing a tax, penalty, or interest under this chapter may, within 
322.25 	60 days from the notice date of the notice of the order, appeal to the Tax Court in the manner 
322.26 	provided under section 271.06. For purposes of this section, "notice date" means the notice 
322.27 	date designated by the commissioner on the order fixing a tax, penalty, or interest.

322.28 	EFFECTIVE DATE. This section is effective for orders dated after December 31, 
322.29 	2017.

323.1 	Sec. 42. Minnesota Statutes 2016, section 297G.09, subdivision 1, is amended to read:
323.2 		Subdivision 1.Monthly returns; manufacturers, wholesalers, brewers, or importers.
 323.3 	On or before the 18th day of each calendar month following the month in which a licensed 
323.4 	manufacturer or wholesaler first sells wine and distilled spirits within the state, or a brewer 
323.5 	or importer first sells or imports fermented malt beverages, or a wholesaler knowingly 
323.6 	acquires title to or possession of untaxed fermented malt beverages, the licensed 
323.7 	manufacturer, wholesaler, brewer, or importer liable for the excise tax must file a return 
323.8 	with the commissioner, and in addition must keep records and render reports as required 
323.9 	by the commissioner. Returns must be made in a form and manner prescribed by the 
323.10 	commissioner, and  The commissioner shall prescribe the content, format, and manner of 
323.11 	returns pursuant to section 270C.30. The returns must contain any other information required 
323.12 	by the commissioner. Returns must be accompanied by a remittance for the full unpaid tax 
323.13 	liability. Returns must be filed regardless of whether a tax is due.

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

323.15 	Sec. 43. Minnesota Statutes 2016, section 297G.22, is amended to read:
323.16 	297G.22 JUDICIAL REVIEW.
323.17 	In lieu of an administrative appeal under this chapter, a person aggrieved by an order of 
323.18 	the commissioner fixing a tax, penalty, or interest under this chapter may, within 60 days 
323.19 	from the date of the notice date of the order, appeal to the Tax Court in the manner provided 
323.20 	under section 271.06. For purposes of this section, "notice date" means the notice date 
323.21 	designated by the commissioner on the order fixing a tax, penalty, or interest.

323.22 	EFFECTIVE DATE. This section is effective for orders dated after December 31, 
323.23 	2017.

323.24 	Sec. 44. Minnesota Statutes 2016, section 297I.30, is amended by adding a subdivision 
323.25 	to read:
323.26 		Subd. 11.Format.  The commissioner shall prescribe the content, format, and manner 
323.27 	of returns or other documents pursuant to section 270C.30.

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

323.29 	Sec. 45. Minnesota Statutes 2016, section 297I.60, subdivision 2, is amended to read:
323.30 		Subd. 2.Remedies. (a) If the taxpayer is notified that the refund claim is denied in whole 
323.31 	or in part, the taxpayer may contest the denial by:
324.1 	(1) filing an administrative appeal with the commissioner under section 270C.35;
324.2 	(2) filing an appeal in Tax Court within 60 days of the notice date of the notice of denial; 
324.3 	or
324.4 	(3) filing an action in the district court to recover the refund.
324.5 	(b) An action in the district court must be brought within 18 months following of the 
324.6 	notice date of the notice of denial. For purposes of this section, "notice date" has the meaning 
324.7 	given in section 270C.35, subdivision 3. An action for refund of tax or surcharge must be 
324.8 	brought in the district court of the district in which lies the taxpayer's principal place of 
324.9 	business or in the District Court for Ramsey County. If a taxpayer files a claim for refund 
324.10 	and the commissioner has not issued a denial of the claim, the taxpayer may bring an action 
324.11 	in the district court or the Tax Court at any time after the expiration of six months from the 
324.12 	time the claim was filed.

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

324.15 	Sec. 46. Minnesota Statutes 2016, section 469.319, subdivision 5, is amended to read:
324.16 		Subd. 5.Waiver authority. (a) The commissioner may waive all or part of a repayment 
324.17 	required under subdivision 1, if the commissioner, in consultation with the commissioner 
324.18 	of employment and economic development and appropriate officials from the local 
324.19 	government units in which the qualified business is located, determines that requiring 
324.20 	repayment of the tax is not in the best interest of the state or the local government units and 
324.21 	the business ceased operating as a result of circumstances beyond its control including, but 
324.22 	not limited to:
324.23 	(1) a natural disaster;
324.24 	(2) unforeseen industry trends; or
324.25 	(3) loss of a major supplier or customer.
324.26 	(b)(1) The commissioner shall waive repayment required under subdivision 1a if the 
324.27 	commissioner has waived repayment by the operating business under subdivision 1, unless 
324.28 	the person that received benefits without having to operate a business in the zone was a 
324.29 	contributing factor in the qualified business becoming subject to repayment under subdivision 
324.30 	1;
324.31 	(2) the commissioner shall waive the repayment required under subdivision 1a, even if 
324.32 	the repayment has not been waived for the operating business if:
325.1 	(i) the person that received benefits without having to operate a business in the zone and 
325.2 	the business that operated in the zone are not related parties as defined in section 267(b) of 
325.3 	the Internal Revenue Code of 1986, as amended through December 31, 2007; and
325.4 	(ii) actions of the person were not a contributing factor in the qualified business becoming 
325.5 	subject to repayment under subdivision 1.
325.6 	(c) Requests for waiver must be made no later than 60 days after the earlier of the notice 
325.7 	date of an order issued under subdivision 4, paragraph (d), or the date of a tax statement 
325.8 	issued under subdivision 4, paragraph (c). For purposes of this section, "notice date" means 
325.9 	the notice date designated by the commissioner on the order.

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

325.12 	Sec. 47. Laws 2016, chapter 187, section 5, the effective date, is amended to read:

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

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

325.16 	ARTICLE 17
325.17 	DEPARTMENT OF REVENUE INDIVIDUAL INCOME, CORPORATE 
325.18 	FRANCHISE, AND ESTATE TAX TECHNICAL PROVISIONS

325.19 	Section 1. Minnesota Statutes 2016, section 290.0132, subdivision 21, is amended to read:
325.20 		Subd. 21.Military service pension; retirement pay.  To the extent included in federal 
325.21 	taxable income, compensation received from a pension or other retirement pay from the 
325.22 	federal government for service in the military, as computed under United States Code, title 
325.23 	10, sections 1401 to 1414, 1447 to 1455, and 12733, is a subtraction. The subtraction must 
325.24 	not include any amount used to claim the credit allowed under section 290.0677 is limited 
325.25 	to individuals who do not claim the credit under section 290.0677.

325.26 	EFFECTIVE DATE. This section is effective retroactively for taxable years beginning 
325.27 	after December 31, 2015.

325.28 	Sec. 2. Minnesota Statutes 2016, section 290A.03, subdivision 3, is amended to read:
325.29 		Subd. 3.Income. (a) "Income" means the sum of the following:
325.30 	(1) federal adjusted gross income as defined in the Internal Revenue Code; and
326.1 	(2) the sum of the following amounts to the extent not included in clause (1):
326.2 	(i) all nontaxable income;
326.3 	(ii) the amount of a passive activity loss that is not disallowed as a result of section 469, 
326.4 	paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss 
326.5 	carryover allowed under section 469(b) of the Internal Revenue Code;
326.6 	(iii) an amount equal to the total of any discharge of qualified farm indebtedness of a 
326.7 	solvent individual excluded from gross income under section 108(g) of the Internal Revenue 
326.8 	Code;
326.9 	(iv) cash public assistance and relief;
326.10 	(v) any pension or annuity (including railroad retirement benefits, all payments received 
326.11 	under the federal Social Security Act, Supplemental Security Income, and veterans benefits), 
326.12 	which was not exclusively funded by the claimant or spouse, or which was funded exclusively 
326.13 	by the claimant or spouse and which funding payments were excluded from federal adjusted 
326.14 	gross income in the years when the payments were made;
326.15 	(vi) interest received from the federal or a state government or any instrumentality or 
326.16 	political subdivision thereof;
326.17 	(vii) workers' compensation;
326.18 	(viii) nontaxable strike benefits;
326.19 	(ix) the gross amounts of payments received in the nature of disability income or sick 
326.20 	pay as a result of accident, sickness, or other disability, whether funded through insurance 
326.21 	or otherwise;
326.22 	(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of 
326.23 	1986, as amended through December 31, 1995;
326.24 	(xi) contributions made by the claimant to an individual retirement account, including 
326.25 	a qualified voluntary employee contribution; simplified employee pension plan; 
326.26 	self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of 
326.27 	the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal 
326.28 	Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for 
326.29 	the claimant and spouse;
326.30 	(xii) to the extent not included in federal adjusted gross income, distributions received 
326.31 	by the claimant or spouse from a traditional or Roth style retirement account or plan;
326.32 	(xiii) nontaxable scholarship or fellowship grants;
327.1 	(xiv) the amount of deduction allowed under section 199 of the Internal Revenue Code;
327.2 	(xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue 
327.3 	Code;
327.4 	(xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue 
327.5 	Code; and
327.6 	(xvii) the amount deducted for certain expenses of elementary and secondary school 
327.7 	teachers under section 62(a)(2)(D) of the Internal Revenue Code.
327.8 	In the case of an individual who files an income tax return on a fiscal year basis, the 
327.9 	term "federal adjusted gross income" shall mean federal adjusted gross income reflected in 
327.10 	the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced 
327.11 	by the amount of a net operating loss carryback or carryforward or a capital loss carryback 
327.12 	or carryforward allowed for the year.
327.13 	(b) "Income" does not include:
327.14 	(1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
327.15 	(2) amounts of any pension or annuity which was exclusively funded by the claimant 
327.16 	or spouse and which funding payments were not excluded from federal adjusted gross 
327.17 	income in the years when the payments were made;
327.18 	(3) to the extent included in federal adjusted gross income, amounts contributed by the 
327.19 	claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed 
327.20 	the retirement base amount reduced by the amount of contributions excluded from federal 
327.21 	adjusted gross income, but not less than zero;
327.22 	(4) surplus food or other relief in kind supplied by a governmental agency;
327.23 	(5) relief granted under this chapter;
327.24 	(6) child support payments received under a temporary or final decree of dissolution or 
327.25 	legal separation; or
327.26 	(7) restitution payments received by eligible individuals and excludable interest as 
327.27 	defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001, 
327.28 	Public Law 107-16.
327.29 	(c) The sum of the following amounts may be subtracted from income:
327.30 	(1) for the claimant's first dependent, the exemption amount multiplied by 1.4;
327.31 	(2) for the claimant's second dependent, the exemption amount multiplied by 1.3;
328.1 	(3) for the claimant's third dependent, the exemption amount multiplied by 1.2;
328.2 	(4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
328.3 	(5) for the claimant's fifth dependent, the exemption amount; and
328.4 	(6) if the claimant or claimant's spouse was disabled or attained the age of 65 on or 
328.5 	before December 31 of the year for which the taxes were levied or rent paid, the exemption 
328.6 	amount.
328.7 	(d) For purposes of this subdivision, the "exemption amount" means the exemption 
328.8 	amount under section 151(d) of the Internal Revenue Code for the taxable year for which 
328.9 	the income is reported; "retirement base amount" means the deductible amount for the 
328.10 	taxable year for the claimant and spouse under section 219(b)(5)(A) of the Internal Revenue 
328.11 	Code, adjusted for inflation as provided in section 219(b)(5)(D)(C) of the Internal Revenue 
328.12 	Code, without regard to whether the claimant or spouse claimed a deduction; and "traditional 
328.13 	or Roth style retirement account or plan" means retirement plans under sections 401, 403, 
328.14 	408, 408A, and 457 of the Internal Revenue Code.

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

328.16 	Sec. 3. Minnesota Statutes 2016, section 290A.10, is amended to read:
328.17 	290A.10 PROOF OF TAXES PAID.
328.18 	Every If requested by the commissioner of revenue, a claimant who files a claim for 
328.19 	relief for property taxes payable shall include with the claim provide a property tax statement 
328.20 	or a reproduction thereof in a form deemed satisfactory by the commissioner of revenue 
328.21 	indicating that there are no delinquent property taxes on the homestead. Indication on the 
328.22 	property tax statement from the county treasurer that there are no delinquent taxes on the 
328.23 	homestead shall be sufficient proof. Taxes included in a confession of judgment under 
328.24 	section 277.23 or 279.37 shall not constitute delinquent taxes as long as the claimant is 
328.25 	current on the payments required to be made under section 277.23 or 279.37.

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

328.28 	Sec. 4. Minnesota Statutes 2016, section 291.075, is amended to read:
328.29 	291.075 SPECIAL USE VALUATION OF QUALIFIED PROPERTY.
328.30 	If, after the final determination of the tax imposed by this chapter, the property valued 
328.31 	pursuant to section 2032A of the Internal Revenue Code is disposed of or fails to qualify 
329.1 	and an additional tax is imposed pursuant to section 2032A(c), any increase in the credit 
329.2 	for state death taxes federal gross or taxable estate shall be reported to the commissioner 
329.3 	within 90 days after final determination of the increased credit of the federal adjustment. 
329.4 	Upon notification the commissioner may assess an additional tax in accordance with section 
329.5 	291.03, subdivision 1.

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

329.7 	Sec. 5.  REPEALER.
 329.8 	Minnesota Statutes 2016, sections 290.9743; and 290.9744, are repealed.

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

329.10 	ARTICLE 18
329.11 	DEPARTMENT OF REVENUE PROPERTY TAX AND LOCAL GOVERNMENT 
329.12 	AID TECHNICAL PROVISIONS

329.13 	Section 1. Minnesota Statutes 2016, section 270.078, subdivision 1, is amended to read:
329.14 		Subdivision 1.Conformance to federal law. If any provision of sections 270.071 to 
329.15 	270.079 is contrary to any provision of any law of the United States of America, hereinafter 
329.16 	enacted, providing for or relating to the ad valorem taxation by a state of aircraft or flying 
329.17 	equipment of an airline company, such provision shall be of no effect and the commissioner 
329.18 	is authorized and directed to prescribe by rule such provisions as may be necessary to make 
329.19 	sections 270.071 to 270.079 conform to the federal act and to effectuate the purposes of 
329.20 	sections 270.071 to 270.079, provided such rules do not prescribe a rate of taxation higher 
329.21 	than that provided in section 270.075 or a net tax capacity based on a percentage higher 
329.22 	than that provided in section 270.074, subdivision 2 3.

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

329.24 	Sec. 2. Minnesota Statutes 2016, section 273.135, subdivision 1, is amended to read:
329.25 		Subdivision 1.Reduction in tax; tax relief area. The property tax to be paid in respect 
329.26 	to property taxable within a tax relief area as defined in section 273.134, paragraph (b), on 
329.27 	homestead property, as otherwise determined by law and regardless of the market value of 
329.28 	the property, and on nonhomestead portions of property classified as both homestead and 
329.29 	nonhomestead property as provided in section 273.124, subdivision 11, for all purposes 
329.30 	shall be reduced in the amount prescribed by subdivision 2, subject to the limitations 
329.31 	contained therein.

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

330.2 	Sec. 3. Minnesota Statutes 2016, section 414.09, subdivision 2, is amended to read:
330.3 		Subd. 2.Transmittal of order. The chief administrative law judge shall see that copies 
330.4 	of the order are mailed to all parties entitled to mailed notice of hearing under subdivision 
330.5 	1, the secretary of state, the Department of Revenue, the state demographer, individual 
330.6 	property owners if initiated in that manner, affected county auditor, and any other party of 
330.7 	record. The affected county auditor shall record the order against the affected property.

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

330.9 	Sec. 4. Minnesota Statutes 2016, section 477A.0124, subdivision 2, is amended to read:
330.10 		Subd. 2.Definitions. (a) For the purposes of this section, the following terms have the 
330.11 	meanings given them.
330.12 	(b) "County program aid" means the sum of "county need aid," "county tax base 
330.13 	equalization aid," and "county transition aid."
330.14 	(c) "Age-adjusted population" means a county's population multiplied by the county age 
330.15 	index.
330.16 	(d) "County age index" means the percentage of the population over age 65 and over 
330.17 	within the county divided by the percentage of the population over age 65 and over within 
330.18 	the state, except that the age index for any county may not be greater than 1.8 nor less than 
330.19 	0.8.
330.20 	(e) "Population over age 65 and over" means the population over age 65 and over 
330.21 	established as of July 15 in an aid calculation year by the most recent federal census, by a 
330.22 	special census conducted under contract with the United States Bureau of the Census, by a 
330.23 	population estimate made by the Metropolitan Council, or by a population estimate of the 
330.24 	state demographer made pursuant to section 4A.02, whichever is the most recent as to the 
330.25 	stated date of the count or estimate for the preceding calendar year and which has been 
330.26 	certified to the commissioner of revenue on or before July 15 of the aid calculation year. A 
330.27 	revision to an estimate or count is effective for these purposes only if certified to the 
330.28 	commissioner on or before July 15 of the aid calculation year. Clerical errors in the 
330.29 	certification or use of estimates and counts established as of July 15 in the aid calculation 
330.30 	year are subject to correction within the time periods allowed under section 477A.014.
330.31 	(f) "Part I crimes" means the three-year average annual number of Part I crimes reported 
330.32 	for each county by the Department of Public Safety for the most recent years available. By 
331.1 	July 1 of each year, the commissioner of public safety shall certify to the commissioner of 
331.2 	revenue the number of Part I crimes reported for each county for the three most recent 
331.3 	calendar years available.
331.4 	(g) "Households receiving food stamps" means the average monthly number of 
331.5 	households receiving food stamps for the three most recent years for which data is available. 
331.6 	By July 1 of each year, the commissioner of human services must certify to the commissioner 
331.7 	of revenue the average monthly number of households in the state and in each county that 
331.8 	receive food stamps, for the three most recent calendar years available.
331.9 	(h) "County net tax capacity" means the county's adjusted net tax capacity under section 
331.10 	273.1325.

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

331.12 	Sec. 5. Minnesota Statutes 2016, section 477A.013, subdivision 1, is amended to read:
331.13 		Subdivision 1.Towns. (a) In 2014 and thereafter, each town is eligible for a distribution 
331.14 	under this subdivision equal to the product of (i) its agricultural property factor, (ii) its town 
331.15 	area factor, (iii) its population factor, and (iv) 0.0045. As used in this subdivision, the 
331.16 	following terms have the meanings given them:
331.17 	(1) "agricultural property factor" means the ratio of the adjusted net tax capacity of 
331.18 	agricultural property located in a town, divided by to the adjusted net tax capacity of all 
331.19 	other property located in the town. The agricultural property factor cannot exceed eight;
331.20 	(2) "agricultural property" means property classified under section 273.13, as homestead 
331.21 	and nonhomestead agricultural property, rural vacant land, and noncommercial seasonal 
331.22 	recreational property;
331.23 	(3) "town area factor" means the most recent estimate of total acreage, not to exceed 
331.24 	50,000 acres, located in the township available as of July 1 in the aid calculation year, 
331.25 	estimated or established by:
331.26 	(i) the United States Bureau of the Census;
331.27 	(ii) the State Land Management Information Center; or
331.28 	(iii) the secretary of state; and
331.29 	(4) "population factor" means the square root of the towns' population.
331.30 	(b) If the sum of the aids payable to all towns under this subdivision exceeds the limit 
331.31 	under section 477A.03, subdivision 2c, the distribution to each town must be reduced 
332.1 	proportionately so that the total amount of aids distributed under this section does not exceed 
332.2 	the limit in section 477A.03, subdivision 2c.
332.3 	(c) Data used in calculating aids to towns under this subdivision, other than acreage, 
332.4 	shall be the most recently available data as of January 1 in the year in which the aid is 
332.5 	calculated.

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

332.7 	ARTICLE 19
332.8 	DEPARTMENT OF REVENUE SALES AND USE, AND SPECIAL TAXES 
332.9 	TECHNICAL PROVISIONS

332.10 	Section 1. Minnesota Statutes 2016, section 270C.171, subdivision 1, is amended to read:
332.11 		Subdivision 1.Definitions. (a) If a special law grants a local government unit or group 
332.12 	of units the authority to impose a local tax other than sales tax, including but not limited to 
332.13 	taxes such as lodging, entertainment, admissions, or food and beverage taxes, and the 
332.14 	Department of Revenue either has agreed to or is required to administer the tax, such that 
332.15 	the tax is reported and paid with the chapter 297A taxes, then the local government unit or 
332.16 	group of units must adopt each definition term used in the special law is defined as follows:
332.17 	(1) the definition must be identical to the definition found as defined in chapter 297A 
332.18 	or in Minnesota Rules, chapter 8130; or
332.19 	(2) if the specific term is not defined either in chapter 297A or in Minnesota Rules, 
332.20 	chapter 8130, then the definition must be defined consistent with the position of the 
332.21 	Department of Revenue as to the extent of the tax base.
332.22 	(b) This subdivision does not apply to terms that are defined by the authorizing special 
332.23 	law.
332.24 	(c) This subdivision applies notwithstanding whether a local government unit or group 
332.25 	of units adopts consistent definitions into local law.

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

332.27 	Sec. 2. Minnesota Statutes 2016, section 298.01, subdivision 3, is amended to read:
332.28 		Subd. 3.Occupation tax; other ores.  Every person engaged in the business of mining, 
332.29 	refining, or producing ores, metals, or minerals in this state, except iron ore or taconite 
332.30 	concentrates, shall pay an occupation tax to the state of Minnesota as provided in this 
332.31 	subdivision. For purposes of this subdivision, mining includes the application of 
333.1 	hydrometallurgical processes. Hydrometallurgical processes are processes that extract the 
333.2 	ores, metals, or minerals, by use of aqueous solutions that leach, concentrate, and recover 
333.3 	the ore, metal, or mineral. The tax is determined in the same manner as the tax imposed by 
333.4 	section 290.02, except that sections 290.05, subdivision 1, clause (a), 290.17, subdivision 
333.5 	4, and 290.191, subdivision 2, do not apply, and the occupation tax must be computed by 
333.6 	applying to taxable income the rate of 2.45 percent. A person subject to occupation tax 
333.7 	under this section shall apportion its net income on the basis of the percentage obtained by 
333.8 	taking the sum of:
333.9 	(1) 75 percent of the percentage which the sales made within this state in connection 
333.10 	with the trade or business during the tax period are of the total sales wherever made in 
333.11 	connection with the trade or business during the tax period;
333.12 	(2) 12.5 percent of the percentage which the total tangible property used by the taxpayer 
333.13 	in this state in connection with the trade or business during the tax period is of the total 
333.14 	tangible property, wherever located, used by the taxpayer in connection with the trade or 
333.15 	business during the tax period; and
333.16 	(3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred 
333.17 	in this state or paid in respect to labor performed in this state in connection with the trade 
333.18 	or business during the tax period are of the taxpayer's total payrolls paid or incurred in 
333.19 	connection with the trade or business during the tax period.
333.20 	The tax is in addition to all other taxes.

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

333.22 	Sec. 3. Minnesota Statutes 2016, section 298.01, subdivision 4, is amended to read:
333.23 		Subd. 4.Occupation tax; iron ore; taconite concentrates. A person engaged in the 
333.24 	business of mining or producing of iron ore, taconite concentrates or direct reduced ore in 
333.25 	this state shall pay an occupation tax to the state of Minnesota. The tax is determined in the 
333.26 	same manner as the tax imposed by section 290.02, except that sections 290.05, subdivision 
333.27 	1, clause (a), 290.17, subdivision 4, and 290.191, subdivision 2, do not apply, and the 
333.28 	occupation tax shall be computed by applying to taxable income the rate of 2.45 percent. 
333.29 	A person subject to occupation tax under this section shall apportion its net income on the 
333.30 	basis of the percentage obtained by taking the sum of:
333.31 	(1) 75 percent of the percentage which the sales made within this state in connection 
333.32 	with the trade or business during the tax period are of the total sales wherever made in 
333.33 	connection with the trade or business during the tax period;
334.1 	(2) 12.5 percent of the percentage which the total tangible property used by the taxpayer 
334.2 	in this state in connection with the trade or business during the tax period is of the total 
334.3 	tangible property, wherever located, used by the taxpayer in connection with the trade or 
334.4 	business during the tax period; and
334.5 	(3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred 
334.6 	in this state or paid in respect to labor performed in this state in connection with the trade 
334.7 	or business during the tax period are of the taxpayer's total payrolls paid or incurred in 
334.8 	connection with the trade or business during the tax period.
334.9 	The tax is in addition to all other taxes.

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

334.11 	Sec. 4. Minnesota Statutes 2016, section 298.24, subdivision 1, as amended by Laws 2017, 
334.12 	chapter 40, article 1, section 107, is amended to read:
334.13 		Subdivision 1.Imposed; calculation. (a) For concentrate produced in 2013, there is 
334.14 	imposed upon taconite and iron sulphides, and upon the mining and quarrying thereof, and 
334.15 	upon the production of iron ore concentrate therefrom, and upon the concentrate so produced, 
334.16 	a tax of $2.56 per gross ton of merchantable iron ore concentrate produced therefrom. The 
334.17 	tax is also imposed upon other iron-bearing material.
334.18 	(b) For concentrates produced in 2014 and subsequent years, the tax rate shall be equal 
334.19 	to the preceding year's tax rate plus an amount equal to the preceding year's tax rate multiplied 
334.20 	by the percentage increase in the implicit price deflator from the fourth quarter of the second 
334.21 	preceding year to the fourth quarter of the preceding year. "Implicit price deflator" means 
334.22 	the implicit price deflator for the gross domestic product prepared by the Bureau of Economic 
334.23 	Analysis of the United States Department of Commerce.
334.24 	(c) An additional tax is imposed equal to three cents per gross ton of merchantable iron 
334.25 	ore concentrate for each one percent that the iron content of the product exceeds 72 percent, 
334.26 	when dried at 212 degrees Fahrenheit.
334.27 	(d) The tax on taconite and iron sulphides shall be imposed on the average of the 
334.28 	production for the current year and the previous two years. The rate of the tax imposed will 
334.29 	be the current year's tax rate. This clause shall not apply in the case of the closing of a 
334.30 	taconite facility if the property taxes on the facility would be higher if this clause and section 
334.31 	298.25 were not applicable. The tax on other iron-bearing material shall be imposed on the 
334.32 	current year production.
335.1 	(e) The tax under paragraph (a) is also imposed upon other iron-bearing material. The 
335.2 	tax on other iron-bearing material shall be imposed on the current year production. The rate 
335.3 	of the tax imposed is the current year's tax rate.
335.4 	(e) (f) If the tax or any part of the tax imposed by this subdivision is held to be 
335.5 	unconstitutional, a tax of $2.56 per gross ton of merchantable iron ore concentrate produced 
335.6 	shall be imposed.
335.7 	(f) (g) Consistent with the intent of this subdivision to impose a tax based upon the 
335.8 	weight of merchantable iron ore concentrate, the commissioner of revenue may indirectly 
335.9 	determine the weight of merchantable iron ore concentrate included in fluxed pellets by 
335.10 	subtracting the weight of the limestone, dolomite, or olivine derivatives or other basic flux 
335.11 	additives included in the pellets from the weight of the pellets. For purposes of this paragraph, 
335.12 	"fluxed pellets" are pellets produced in a process in which limestone, dolomite, olivine, or 
335.13 	other basic flux additives are combined with merchantable iron ore concentrate. No 
335.14 	subtraction from the weight of the pellets shall be allowed for binders, mineral and chemical 
335.15 	additives other than basic flux additives, or moisture.
335.16 	(g) (h)(1) Notwithstanding any other provision of this subdivision, for the first two years 
335.17 	of a plant's commercial production of direct reduced ore from ore mined in this state, no 
335.18 	tax is imposed under this section. For the third year of a plant's commercial production of 
335.19 	direct reduced ore, the rate to be applied to direct reduced ore is 25 percent of the rate 
335.20 	otherwise determined under this subdivision. For the fourth commercial production year, 
335.21 	the rate is 50 percent of the rate otherwise determined under this subdivision; for the fifth 
335.22 	commercial production year, the rate is 75 percent of the rate otherwise determined under 
335.23 	this subdivision; and for all subsequent commercial production years, the full rate is imposed.
335.24 	(2) Subject to clause (1), production of direct reduced ore in this state is subject to the 
335.25 	tax imposed by this section, but if that production is not produced by a producer of taconite, 
335.26 	iron sulfides, or other iron-bearing material, the production of taconite, iron sulfides, or 
335.27 	other iron-bearing material, that is consumed in the production of direct reduced iron ore
335.28 	in this state is not subject to the tax imposed by this section on taconite, iron sulfides, or 
335.29 	other iron-bearing material.
335.30 	(3) Notwithstanding any other provision of this subdivision, no tax is imposed on direct 
335.31 	reduced ore under this section during the facility's noncommercial production of direct 
335.32 	reduced ore. The taconite or iron sulphides consumed in the noncommercial production of 
335.33 	direct reduced ore is subject to the tax imposed by this section on taconite and iron sulphides. 
336.1 	Three-year average production of direct reduced ore does not include production of direct 
336.2 	reduced ore in any noncommercial year.
336.3 	(4) Three-year average production for a direct reduced ore facility that has noncommercial 
336.4 	production is the average of the commercial production of direct reduced ore for the current 
336.5 	year and the previous two commercial years.
336.6 	(5) As used in this paragraph, "commercial production" means production of more than 
336.7 	50,000 tons of direct reduced ore in the current year or in any prior year, and "noncommercial 
336.8 	production" means production of 50,000 tons or less of direct reduced ore in any year.
336.9 	(6) This paragraph applies only to plants for which all environmental permits have been 
336.10 	obtained and construction has begun before July 1, 2008.

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

336.12 	Sec. 5. Minnesota Statutes 2016, section 298.28, subdivision 2, is amended to read:
336.13 		Subd. 2.City or town where quarried or produced. (a) 4.5 cents per gross ton of 
336.14 	merchantable iron ore concentrate, hereinafter referred to as "taxable ton," plus the amount 
336.15 	provided in paragraph (c), must be allocated to the city or town in the county in which the 
336.16 	lands from which taconite was mined or quarried were located or within which the 
336.17 	concentrate was produced. If the mining, quarrying, and concentration, or different steps 
336.18 	in either thereof are carried on in more than one taxing district, the commissioner shall 
336.19 	apportion equitably the proceeds of the part of the tax going to cities and towns among such 
336.20 	subdivisions upon the basis of attributing 50 percent of the proceeds of the tax to the operation 
336.21 	of mining or quarrying the taconite, and the remainder to the concentrating plant and to the 
336.22 	processes of concentration, and with respect to each thereof giving due consideration to the 
336.23 	relative extent of such operations performed in each such taxing district. The commissioner's 
336.24 	order making such apportionment shall be subject to review by the Tax Court at the instance 
336.25 	of any of the interested taxing districts, in the same manner as other orders of the 
336.26 	commissioner.
336.27 	(b)(1) Four cents per taxable ton shall be allocated to cities and organized townships 
336.28 	affected by mining because their boundaries are within three miles of a taconite mine pit 
336.29 	that:
336.30 	(i) was actively mined by LTV Steel Mining Company in 1999; or
336.31 	(ii) has been actively mined in at least one of the prior three years.
337.1 	(2) If a city or town is located near more than one mine meeting these the criteria under 
337.2 	this paragraph, the city or town is eligible to receive aid calculated from only the mine 
337.3 	producing the largest taxable tonnage. When more than one municipality qualifies for aid 
337.4 	based on one company's production, the aid must be apportioned among the municipalities 
337.5 	in proportion to their populations. The amounts distributed under this paragraph to each 
337.6 	municipality must be used for infrastructure improvement projects.
337.7 	(c) The amount that would have been computed for the current year under Minnesota 
337.8 	Statutes 2008, section 126C.21, subdivision 4, for a school district shall be distributed to 
337.9 	the cities and townships within the school district in the proportion that their taxable net tax 
337.10 	capacity within the school district bears to the taxable net tax capacity of the school district 
337.11 	for property taxes payable in the year prior to distribution.

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

337.13 	Sec. 6. Minnesota Statutes 2016, section 298.28, subdivision 5, is amended to read:
337.14 		Subd. 5.Counties. (a) 21.05 cents per taxable ton for distributions in 2015 through 2023, 
337.15 	and 26.05 cents per taxable ton for distributions beginning in 2024, is allocated to counties 
337.16 	to be distributed, based upon certification by the commissioner of revenue, under paragraphs 
337.17 	(b) to (d).
337.18 	(b) 10.525 cents per taxable ton shall be distributed to the county in which the taconite 
337.19 	is mined or quarried or in which the concentrate is produced, less any amount which is to 
337.20 	be distributed pursuant to paragraph (c). The apportionment formula prescribed in subdivision 
337.21 	2 is the basis for the distribution.
337.22 	(c) If 1.0 cent per taxable ton of the tax distributed to the counties under paragraph (b) 
337.23 	shall be paid to a county that received a distribution under this section in 2000 because there 
337.24 	was located in the county an electric power plant owned by and providing the primary source 
337.25 	of power for a taxpayer mining and concentrating taconite is located in a different county 
337.26 	other than the county in which the mining and the concentrating processes are conducted, 
337.27 	one cent per taxable ton of the tax distributed to the counties pursuant to paragraph (b) and 
337.28 	imposed on and collected from such taxpayer shall be paid to the county in which the power 
337.29 	plant is located.
337.30 	(d) 10.525 cents per taxable ton for distributions in 2015 through 2023, and 15.525 cents 
337.31 	per taxable ton for distributions beginning in 2024, shall be paid to the county from which 
337.32 	the taconite was mined, quarried or concentrated to be deposited in the county road and 
337.33 	bridge fund. If the mining, quarrying and concentrating, or separate steps in any of those 
338.1 	processes are carried on in more than one county, the commissioner shall follow the 
338.2 	apportionment formula prescribed in subdivision 2.

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

338.4 	ARTICLE 20
338.5 	DEPARTMENT OF REVENUE PROPERTY TAX AND LOCAL GOVERNMENT 
338.6 	AID POLICY PROVISIONS

338.7 	Section 1. Minnesota Statutes 2016, section 270.074, subdivision 1, is amended to read:
338.8 		Subdivision 1.Valuation. The commissioner shall determine the market valuation of 
338.9 	all flight property operated or used by every airline company in air commerce in this state. 
338.10 	The valuation apportioned to this state of such flight property shall be the proportion of the 
338.11 	total valuation thereof determined on the basis of the total of the following percentages:
338.12 	(1) 33-1/3 percent of the percentage which the total tonnage of passengers, express and 
338.13 	freight first received by the airline company in this state during the preceding calendar year 
338.14 	plus the total tonnage of passengers, express and freight finally discharged by it within this 
338.15 	state during the preceding calendar year is of the total of such tonnage first received by the 
338.16 	airline company or finally discharged by it, within and without this state during the preceding 
338.17 	calendar year.
338.18 	(2) 33-1/3 percent of the percentage which, in equated plane hours, the total time of all 
338.19 	aircraft of the airline company in flight in this state during the preceding calendar year, is 
338.20 	of the total of such time in flight within and without this state during the preceding calendar 
338.21 	year.
338.22 	(3) 33-1/3 (1) 50 percent of the percentage which the number of revenue ton miles of 
338.23 	passengers, mail, express and freight flown by the airline company within this state during 
338.24 	the preceding calendar year is of the total number of such miles flown by it within and 
338.25 	without this state during the preceding calendar year.
338.26 	(2) 50 percent of the percentage that the total departures performed by the airline company 
338.27 	within this state during the preceding calendar year is of the total departures performed 
338.28 	within and without this state during the preceding calendar year.

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

338.30 	Sec. 2. Minnesota Statutes 2016, section 272.025, subdivision 1, is amended to read:
338.31 		Subdivision 1.Statement of exemption. (a) Except in the case of property owned by 
338.32 	the state of Minnesota or any political subdivision thereof, and property exempt from taxation 
339.1 	under section 272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22 to 25, and at the times 
339.2 	provided in subdivision 3, a taxpayer claiming an exemption from taxation on property 
339.3 	described in section 272.02, subdivisions 2 to 33, must file a statement of exemption with 
339.4 	the assessor of the assessment district in which the property is located. By January 2, 2018, 
339.5 	and each third year thereafter, the commissioner of revenue shall publish on its Web site a 
339.6 	list of the exemptions for which a taxpayer claiming an exemption must file a statement of 
339.7 	exemption. The commissioner's requirement that a taxpayer file a statement of exemption 
339.8 	pursuant to this subdivision shall not be considered a rule and is not subject to the 
339.9 	Administrative Procedure Act, chapter 14.
339.10 	(b) A taxpayer claiming an exemption from taxation on property described in section 
339.11 	272.02, subdivision 10, must file a statement of exemption with the commissioner of revenue, 
339.12 	on or before February 15 of each year for which the taxpayer claims an exemption.
339.13 	(c) In case of sickness, absence or other disability or for good cause, the assessor or the 
339.14 	commissioner may extend the time for filing the statement of exemption for a period not to 
339.15 	exceed 60 days.
339.16 	(d) The commissioner of revenue shall prescribe the form and contents of the statement 
339.17 	of exemption.

339.18 	EFFECTIVE DATE. This section is effective for applications for exemption submitted 
339.19 	in 2018 and thereafter.

339.20 	Sec. 3. Minnesota Statutes 2016, section 272.0295, is amended by adding a subdivision 
339.21 	to read:
339.22 		Subd. 8.Extension. The commissioner may, for good cause, extend the time for filing 
339.23 	the report required by subdivision 4. The extension must not exceed 15 days.

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

339.25 	Sec. 4. Minnesota Statutes 2016, section 272.115, subdivision 3, is amended to read:
339.26 		Subd. 3.Copies transmitted; homestead status. The county auditor shall transmit two 
339.27 	true copies of the certificate of value to the assessor who shall insert into the certificate of 
339.28 	value the most recent market value and when available, the year of original construction of 
339.29 	each parcel of property on both copies, and shall transmit one copythe certificate of value 
339.30 	to the Department of Revenue. Upon the request of a city council located within the county, 
339.31 	a copy of each certificate of value for property located in that city shall be made available 
339.32 	to the governing body of the city. The assessor shall remove the homestead classification 
340.1 	for the following assessment year from a property which is sold or transferred, unless the 
340.2 	grantee or the person to whom the property is transferred completes a homestead application 
340.3 	under section 273.124, subdivision 13, and qualifies for homestead status.

340.4 	EFFECTIVE DATE. This section is effective for certificates of value filed after 
340.5 	December 31, 2017.

340.6 	Sec. 5. Minnesota Statutes 2016, section 273.0755, is amended to read:
340.7 	273.0755 TRAINING AND EDUCATION OF PROPERTY TAX PERSONNEL.
340.8 	(a) Beginning with the four-year period starting on July 1, 2000, every person licensed 
340.9 	by the state Board of Assessors at the Accredited Minnesota Assessor level or higher, shall 
340.10 	successfully complete a weeklong Minnesota laws course sponsored by the Department of 
340.11 	Revenue at least once in every four-year period. An assessor need not attend the course if 
340.12 	they successfully pass the test for the course.
340.13 	(b) The commissioner of revenue may require that each county, and each city for which 
340.14 	the city assessor performs the duties of county assessor, have (i) a person on the assessor's 
340.15 	staff who is certified by the Department of Revenue in sales ratio calculations, (ii) an officer 
340.16 	or employee who is certified by the Department of Revenue in tax calculations, and (iii) an 
340.17 	officer or employee who is certified by the Department of Revenue in the proper preparation 
340.18 	of abstracts of assessment. The commissioner of revenue may require that each county have 
340.19 	an officer or employee who is certified by the Department of Revenue in the proper 
340.20 	preparation of abstracts of tax lists.  Certifications under this paragraph expire after four 
340.21 	years.
340.22 	(c) Beginning with the four-year educational licensing period starting on July 1, 2004, 
340.23 	every Minnesota assessor licensed by the State Board of Assessors must attend and participate 
340.24 	in a seminar that focuses on ethics, professional conduct and the need for standardized 
340.25 	assessment practices developed and presented by the commissioner of revenue. This 
340.26 	requirement must be met at least once in every subsequent four-year period. This requirement 
340.27 	applies to all assessors licensed for one year or more in the four-year period.
340.28 	(d) When the commissioner of revenue determines that an individual or board that 
340.29 	performs functions related to property tax administration has performed those functions in 
340.30 	a manner that is not uniform or equitable, the commissioner may require that the individual 
340.31 	or members of the board complete supplemental training. The commissioner may not require 
340.32 	that an individual complete more than 32 hours of supplemental training pursuant to this 
340.33 	paragraph. If the individual is required to complete supplemental training due to that 
341.1 	individual's membership on a local or county board of appeal and equalization, the 
341.2 	commissioner may not require that the individual complete more than two hours of 
341.3 	supplemental training.

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

341.5 	Sec. 6. Minnesota Statutes 2016, section 273.124, subdivision 13, is amended to read:
341.6 		Subd. 13.Homestead application. (a) A person who meets the homestead requirements 
341.7 	under subdivision 1 must file a homestead application with the county assessor to initially 
341.8 	obtain homestead classification.
341.9 	(b) The format and contents of a uniform homestead application shall be prescribed by 
341.10 	the commissioner of revenue. The application must clearly inform the taxpayer that this 
341.11 	application must be signed by all owners who occupy the property or by the qualifying 
341.12 	relative and returned to the county assessor in order for the property to receive homestead 
341.13 	treatment.
341.14 	(c) Every property owner applying for homestead classification must furnish to the 
341.15 	county assessor the Social Security number of each occupant who is listed as an owner of 
341.16 	the property on the deed of record, the name and address of each owner who does not occupy 
341.17 	the property, and the name and Social Security number of each owner's spouse who occupies 
341.18 	the property. The application must be signed by each owner who occupies the property and 
341.19 	by each owner's spouse who occupies the property, or, in the case of property that qualifies 
341.20 	as a homestead under subdivision 1, paragraph (c), by the qualifying relative.
341.21 	If a property owner occupies a homestead, the property owner's spouse may not claim 
341.22 	another property as a homestead unless the property owner and the property owner's spouse 
341.23 	file with the assessor an affidavit or other proof required by the assessor stating that the 
341.24 	property qualifies as a homestead under subdivision 1, paragraph (e).
341.25 	Owners or spouses occupying residences owned by their spouses and previously occupied 
341.26 	with the other spouse, either of whom fail to include the other spouse's name and Social 
341.27 	Security number on the homestead application or provide the affidavits or other proof 
341.28 	requested, will be deemed to have elected to receive only partial homestead treatment of 
341.29 	their residence. The remainder of the residence will be classified as nonhomestead residential. 
341.30 	When an owner or spouse's name and Social Security number appear on homestead 
341.31 	applications for two separate residences and only one application is signed, the owner or 
341.32 	spouse will be deemed to have elected to homestead the residence for which the application 
341.33 	was signed.
342.1 	(d) If residential real estate is occupied and used for purposes of a homestead by a relative 
342.2 	of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in order for 
342.3 	the property to receive homestead status, a homestead application must be filed with the 
342.4 	assessor. The Social Security number of each relative occupying the property and the name 
342.5 	and Social Security number of the spouse of a relative occupying the property shall be 
342.6 	required on the homestead application filed under this subdivision. If a different relative of 
342.7 	the owner subsequently occupies the property, the owner of the property must notify the 
342.8 	assessor within 30 days of the change in occupancy. The Social Security number of a relative 
342.9 	occupying the property or relative's the spouse of a relative occupying the property is private 
342.10 	data on individuals as defined by section 13.02, subdivision 12, but may be disclosed to the 
342.11 	commissioner of revenue, or, for the purposes of proceeding under the Revenue Recapture 
342.12 	Act to recover personal property taxes owing, to the county treasurer.
342.13 	(e) The homestead application shall also notify the property owners that if the property 
342.14 	is granted homestead status for any assessment year, that same property shall remain 
342.15 	classified as homestead until the property is sold or transferred to another person, or the 
342.16 	owners, the spouse of the owner, or the relatives no longer use the property as their 
342.17 	homestead. Upon the sale or transfer of the homestead property, a certificate of value must 
342.18 	be timely filed with the county auditor as provided under section 272.115. Failure to notify 
342.19 	the assessor within 30 days that the property has been sold, transferred, or that the owner, 
342.20 	the spouse of the owner, or the relative is no longer occupying the property as a homestead, 
342.21 	shall result in the penalty provided under this subdivision and the property will lose its 
342.22 	current homestead status.
342.23 	(f) If a homestead application has not been filed with the county by December 15, the 
342.24 	assessor shall classify the property as nonhomestead for the current assessment year for 
342.25 	taxes payable in the following year, provided that the owner may be entitled to receive the 
342.26 	homestead classification by proper application under section 375.192.

342.27 	EFFECTIVE DATE. This section is effective for applications for homestead filed in 
342.28 	2018 and thereafter.

342.29 	Sec. 7. Minnesota Statutes 2016, section 273.124, subdivision 13d, is amended to read:
342.30 		Subd. 13d.Homestead data.  On or before April 30 each year beginning in 2007, each 
342.31 	county must provide the commissioner with the following data for each parcel of homestead 
342.32 	property by electronic means as defined in section 289A.02, subdivision 8:
342.33 	(1) the property identification number assigned to the parcel for purposes of taxes payable 
342.34 	in the current year;
343.1 	(2) the name and Social Security number of each occupant of homestead property who 
343.2 	is the property owner, property owner's spouse,or qualifying relative of a property owner,
343.3 	and the spouse of the property owner who occupies homestead property or spouse of a 
343.4 	qualifying relative of a property owner who occupies homestead property;
343.5 	(3) the classification of the property under section 273.13 for taxes payable in the current 
343.6 	year and in the prior year;
343.7 	(4) an indication of whether the property was classified as a homestead for taxes payable 
343.8 	in the current year because of occupancy by a relative of the owner or by a spouse of a 
343.9 	relative;
343.10 	(5) the property taxes payable as defined in section 290A.03, subdivision 13, for the 
343.11 	current year and the prior year;
343.12 	(6) the market value of improvements to the property first assessed for tax purposes for 
343.13 	taxes payable in the current year;
343.14 	(7) the assessor's estimated market value assigned to the property for taxes payable in 
343.15 	the current year and the prior year;
343.16 	(8) the taxable market value assigned to the property for taxes payable in the current 
343.17 	year and the prior year;
343.18 	(9) whether there are delinquent property taxes owing on the homestead;
343.19 	(10) the unique taxing district in which the property is located; and
343.20 	(11) such other information as the commissioner decides is necessary.
343.21 	The commissioner shall use the information provided on the lists as appropriate under 
343.22 	the law, including for the detection of improper claims by owners, or relatives of owners, 
343.23 	under chapter 290A.

343.24 	EFFECTIVE DATE. This section is effective for applications for homestead filed in 
343.25 	2018 and thereafter.

343.26 	Sec. 8. Minnesota Statutes 2016, section 274.014, subdivision 3, is amended to read:
343.27 		Subd. 3.Proof of compliance; transfer of duties. (a) Any city or town that conducts 
343.28 	local boards of appeal and equalization meetings must provide proof to the county assessor 
343.29 	by February 1 that it is in compliance comply with the training requirements of subdivision 
343.30 	2 by February 1, by having at least one member who has attended an appeals and equalization 
343.31 	course described in subdivision 2 within the last four years. This notice must also verify 
344.1 	that there was a quorum of voting members at each meeting of the board of appeal and 
344.2 	equalization in the previous year. A city or town that does not comply with these requirements 
344.3 	is deemed to have transferred its board of appeal and equalization powers to the county for 
344.4 	a minimum of two assessment years, beginning with the current year's assessment and 
344.5 	continuing thereafter unless the powers are reinstated under paragraph (c).
344.6 	(b) The county shall notify the taxpayers when the board of appeal and equalization for 
344.7 	a city or town has been transferred to the county under this subdivision and, prior to the 
344.8 	meeting time of the county board of equalization, the county shall make available to those 
344.9 	taxpayers a procedure for a review of the assessments, including, but not limited to, open 
344.10 	book meetings. This alternate review process shall take place in April and May.
344.11 	(c) A local board whose powers are transferred to the county under this subdivision may 
344.12 	be reinstated by resolution of the governing body of the city or town and upon proof of 
344.13 	compliance with the requirements of subdivision 2. The resolution and proofs must be 
344.14 	provided to the county assessor by February 1 in order to be effective for the following 
344.15 	year's assessment.
344.16 	(d) A local board whose powers are transferred to the county under this subdivision may 
344.17 	continue to employ a local assessor and is not deemed to have transferred its powers to 
344.18 	make assessments.

344.19 	EFFECTIVE DATE. This section is effective for board of appeal and equalization 
344.20 	meetings held in 2018 and thereafter.

344.21 	Sec. 9. Minnesota Statutes 2016, section 274.135, subdivision 3, is amended to read:
344.22 		Subd. 3.Proof of compliance; transfer of duties. (a) Any county that conducts county 
344.23 	boards of appeal and equalization meetings must provide proof to the commissioner by 
344.24 	December 1, 2009, and each year thereafter, that it is in compliance comply with the training 
344.25 	requirements of subdivision 2 by February 1, by having at least one member who has attended 
344.26 	an appeals and equalization course described in subdivision 2 within the last four years. 
344.27 	Beginning in 2009, this notice must also verify that there was a quorum of voting members 
344.28 	at each meeting of the board of appeal and equalization in the current year. A county that 
344.29 	does not comply with these requirements is deemed to have transferred its board of appeal 
344.30 	and equalization powers to the special board of equalization appointed pursuant to section 
344.31 	274.13, subdivision 2, for a minimum of two assessment years, beginning with the following
344.32 	current year's assessment and continuing thereafter unless the powers are reinstated under 
344.33 	paragraph (c). A county that does not comply with the requirements of subdivision 2 and 
345.1 	has not appointed a special board of equalization shall appoint a special board of equalization 
345.2 	before the following year's assessment.
345.3 	(b) The county shall notify the taxpayers when the board of appeal and equalization for 
345.4 	a county has been transferred to the special board of equalization under this subdivision 
345.5 	and, prior to the meeting time of the special board of equalization, the county shall make 
345.6 	available to those taxpayers a procedure for a review of the assessments, including, but not 
345.7 	limited to, open book meetings. This alternate review process must take place in April and 
345.8 	May.
345.9 	(c) A county board whose powers are transferred to the special board of equalization 
345.10 	under this subdivision may be reinstated by resolution of the county board and upon proof 
345.11 	of compliance with the requirements of subdivision 2. The resolution and proofs must be 
345.12 	provided to the commissioner by December February 1 in order to be effective for the 
345.13 	following current year's assessment.
345.14 	(d) If a person who was entitled to appeal to the county board of appeal and equalization 
345.15 	or to the county special board of equalization is not able to do so in a particular year because 
345.16 	the county board or special board did not meet the quorum and training requirements in this 
345.17 	section and section 274.13, or because the special board was not appointed, that person may 
345.18 	instead appeal to the commissioner of revenue, provided that the appeal is received by the 
345.19 	commissioner prior to August 1. The appeal is not subject to either chapter 14 or section 
345.20 	270C.92. The commissioner must issue an appropriate order to the county assessor in 
345.21 	response to each timely appeal, either upholding or changing the valuation or classification 
345.22 	of the property. Prior to October 1 of each year, the commissioner must charge and bill the 
345.23 	county where the property is located $500 for each tax parcel covered by an order issued 
345.24 	under this paragraph in that year. Amounts received by the commissioner under this paragraph 
345.25 	must be deposited in the state's general fund. If payment of a billed amount is not received 
345.26 	by the commissioner before December 1 of the year when billed, the commissioner must 
345.27 	deduct that unpaid amount from any state aid the commissioner would otherwise pay to the 
345.28 	county under chapter 477A in the next year. Late payments may either be returned to the 
345.29 	county uncashed and undeposited or may be accepted. If a late payment is accepted, the 
345.30 	state aid paid to the county under chapter 477A must be adjusted within 12 months to 
345.31 	eliminate any reduction that occurred because the payment was late. Amounts needed to 
345.32 	make these adjustments are included in the appropriation under section 477A.03, subdivision 
345.33 	2.

345.34 	EFFECTIVE DATE. This section is effective for board of appeal and equalization 
345.35 	meetings held in 2018 and thereafter.

346.1 	Sec. 10.  REPEALER.
 346.2 	Minnesota Statutes 2016, section 270.074, subdivision 2, is repealed.

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

346.4 	ARTICLE 21
346.5 	DEPARTMENT OF REVENUE SALES AND USE, AND SPECIAL TAXES POLICY 
346.6 	PROVISIONS

346.7 	Section 1. Minnesota Statutes 2016, section 84.82, subdivision 10, is amended to read:
346.8 		Subd. 10.Proof of sales tax payment; collection and refund. (a) A person applying 
346.9 	for initial registration of a snowmobile must provide a snowmobile purchaser's certificate, 
346.10 	showing a complete description of the snowmobile, the seller's name and address, the full 
346.11 	purchase price of the snowmobile, and the trade-in allowance, if any. The certificate must 
346.12 	include information showing either receipt, invoice, or other document to prove that:
346.13 	(1) that the sales and use tax under chapter 297A was paid or;
346.14 	(2) the purchase was exempt from tax under chapter 297A. The commissioner of public 
346.15 	safety, in consultation with the commissioner and the commissioner of revenue, shall 
346.16 	prescribe the form of the certificate.The certificate is not required if the applicant provides 
346.17 	a receipt, invoice, or other document that shows; or
346.18 	(3) the snowmobile was purchased from a retailer that is maintaining a place of business 
346.19 	in this state as defined in section 297A.66, subdivision 1, and is a dealer.
346.20 	(b) The commissioner or authorized deputy registrars, acting as agents of the 
346.21 	commissioner of revenue under an agreement between the commissioner and the 
346.22 	commissioner of revenue, as provided in section 297A.825:
346.23 	(1) must collect use tax from the applicant if the applicant does not provide the proof 
346.24 	required under paragraph (a); and
346.25 	(2) are authorized to issue refunds of use tax paid to them in error.
346.26 	(c) Subdivision 11 does not apply to refunds under this subdivision.

346.27 	EFFECTIVE DATE. This section is effective for snowmobiles registered after June 
346.28 	30, 2017.

347.1 	Sec. 2. Minnesota Statutes 2016, section 84.922, subdivision 11, is amended to read:
347.2 		Subd. 11.Proof of sales tax payment; collection and refund. (a) A person applying 
347.3 	for initial registration in Minnesota of an all-terrain vehicle shall must provide a purchaser's 
347.4 	certificate showing a complete description of the all-terrain vehicle, the seller's name and 
347.5 	address, the full purchase price of the all-terrain vehicle, and the trade-in allowance, if any. 
347.6 	The certificate also must include information showing either receipt, invoice, or other 
347.7 	document to prove that:
347.8 	(1) the sales and use tax under chapter 297A was paid, or;
347.9 	(2) the purchase was exempt from tax under chapter 297A. The certificate is not required 
347.10 	if the applicant provides a receipt, invoice, or other document that shows; or
347.11 	(3) the all-terrain vehicle was purchased from a retailer that is maintaining a place of 
347.12 	business in this state as defined in section 297A.66, subdivision 1, and is a dealer.
347.13 	(b) The commissioner or authorized deputy registrars, acting as agents of the 
347.14 	commissioner of revenue under an agreement between the commissioner and the 
347.15 	commissioner of revenue, as provided in section 297A.825:
347.16 	(1) must collect use tax from the applicant if the applicant does not provide the proof 
347.17 	required under paragraph (a); and
347.18 	(2) are authorized to issue refunds of use tax paid to them in error.
347.19 	(c) Subdivision 12 does not apply to refunds under this subdivision.

347.20 	EFFECTIVE DATE. This section is effective for all-terrain vehicles registered after 
347.21 	June 30, 2017.

347.22 	Sec. 3. Minnesota Statutes 2016, section 86B.401, subdivision 12, is amended to read:
347.23 		Subd. 12.Proof of sales tax payment; collection and refund. (a) A person applying 
347.24 	for initial licensing of a watercraft must provide a watercraft purchaser's certificate, showing 
347.25 	a complete description of the watercraft, the seller's name and address, the full purchase 
347.26 	price of the watercraft, and the trade-in allowance, if any. The certificate must include 
347.27 	information showing either receipt, invoice, or other document to prove that:
347.28 	(1) that the sales and use tax under chapter 297A was paid or;
347.29 	(2) the purchase was exempt from tax under chapter 297A. The commissioner of public 
347.30 	safety, in consultation with the commissioner and the commissioner of revenue, shall 
348.1 	prescribe the form of the certificate.The certificate is not required if the applicant provides 
348.2 	a receipt, invoice, or other document that shows; or
348.3 	(3) the watercraft was purchased from a retailer that is maintaining a place of business 
348.4 	in this state as defined in section 297A.66, subdivision 1, and is a dealer.
348.5 	(b) The commissioner or authorized deputy registrars, acting as agents of the 
348.6 	commissioner of revenue under an agreement between the commissioner and the 
348.7 	commissioner of revenue, as provided in section 297A.825:
348.8 	(1) must collect use tax from the applicant if the applicant does not provide the proof 
348.9 	required under paragraph (a); and
348.10 	(2) are authorized to issue refunds of use tax paid to them in error.
348.11 	(c) Section 86B.415, subdivision 11, does not apply to refunds under this subdivision.

348.12 	EFFECTIVE DATE. This section is effective for watercraft licensed after June 30, 
348.13 	2017.

348.14 	Sec. 4. Minnesota Statutes 2016, section 270B.14, is amended by adding a subdivision to 
348.15 	read:
348.16 		Subd. 20.Department of Natural Resources; authorized deputy registrars of motor 
348.17 	vehicles. The commissioner may disclose return information related to the taxes imposed 
348.18 	by chapter 297A to the Department of Natural Resources or an authorized deputy registrar 
348.19 	of motor vehicles only:
348.20 	(1) if the commissioner has an agreement with the commissioner of natural resources 
348.21 	under section 297A.825, subdivision 1; and
348.22 	(2) to the extent necessary for the Department of Natural Resources or an authorized 
348.23 	deputy registrar of motor vehicles, as agents for the commissioner, to verify that the 
348.24 	applicable sales or use tax has been paid or that a sales tax exemption applies on the purchase 
348.25 	of a snowmobile, all-terrain vehicle, or watercraft, and to administer sections 84.82, 
348.26 	subdivision 10; 84.922, subdivision 11; 86B.401, subdivision 12; and 297A.825, regarding 
348.27 	either their collection of use tax or their issuance of refunds to applicants of use tax paid to 
348.28 	them in error.

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

349.1 	Sec. 5. Minnesota Statutes 2016, section 270B.14, is amended by adding a subdivision to 
349.2 	read:
349.3 		Subd. 21.Department of Transportation. The commissioner may disclose return 
349.4 	information related to the taxes imposed by chapter 297A to the Department of Transportation 
349.5 	only:
349.6 	(1) if the commissioner has an agreement with the commissioner of transportation under 
349.7 	section 297A.82, subdivision 7; and
349.8 	(2) to the extent necessary for the Department of Transportation, as agent for the 
349.9 	commissioner, to verify that the applicable sales or use tax has been paid or that a sales tax 
349.10 	exemption applies on the lease, purchase, or sale of an aircraft by an individual or business 
349.11 	who owns and operates the aircraft that must be registered or licensed in Minnesota under 
349.12 	section 360.018, and to otherwise administer section 297A.82, regarding the collection of 
349.13 	tax by the Department of Transportation.

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

349.15 	Sec. 6. Minnesota Statutes 2016, section 289A.50, subdivision 2a, is amended to read:
349.16 		Subd. 2a.Refund of sales tax to purchasers. (a) If a vendor has collected from a 
349.17 	purchaser a tax on a transaction that is not subject to the tax imposed by chapter 297A, the 
349.18 	purchaser may apply directly to the commissioner for a refund under this section if:
349.19 	(1) the purchaser is currently registered or was registered during the period of the claim, 
349.20 	to collect and remit the sales tax or to remit the use tax; and
349.21 	(2) either
349.22 	(i) the amount of the refund to be applied for exceeds $500, or
349.23 	(ii) the amount of the refund to be applied for does not exceed $500, but the purchaser 
349.24 	also applies for a capital equipment claim at the same time, and the total of the two refunds 
349.25 	exceeds $500.
349.26 	(b) The purchaser may not file more than two applications for refund under this 
349.27 	subdivision in a calendar year.
349.28 	(c) Refunds shall not be issued for sales for resale where the vendor has a published no 
349.29 	resale policy.

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

350.1 	Sec. 7. [297A.825] SNOWMOBILES; ALL-TERRAIN VEHICLES; WATERCRAFT; 
350.2 	PAYMENT OF TAXES; REFUNDS.
350.3 		Subdivision 1.Agreement with commissioners of natural resources and public 
350.4 	safety; collection and refunds. The commissioner may enter into an agreement with the 
350.5 	commissioner of natural resources, in consultation with the commissioner of public safety, 
350.6 	that provides that:
350.7 	(1) the commissioner of natural resources and authorized deputy registrars of motor 
350.8 	vehicles must collect use tax on snowmobiles, all-terrain vehicles, and watercraft from 
350.9 	persons applying for initial registration or license of the item unless the applicant provides 
350.10 	a receipt, invoice, or other document to prove that:
350.11 	(i) sales tax was paid on the purchase;
350.12 	(ii) the purchase was exempt under this chapter;
350.13 	(iii) use tax was paid to the commissioner in a form prescribed by the commissioner; or
350.14 	(iv) the item was purchased from a retailer that is maintaining a place of business in this 
350.15 	state as defined in section 297A.66, subdivision 1, and is a dealer as defined in section 
350.16 	84.81, subdivision 10; 84.92, subdivision 3; or 86B.005, subdivision 4; and
350.17 	(2) the commissioner of natural resources and authorized deputy registrars of motor 
350.18 	vehicles are authorized to issue refunds of use tax paid to them in error, meaning that either 
350.19 	the sales or use tax had already been paid or that the purchase was exempt from tax under 
350.20 	this chapter.
350.21 		Subd. 2.Agents. For the purposes of collecting or refunding the tax under this section, 
350.22 	the commissioner of natural resources and authorized deputy registrars of motor vehicles 
350.23 	are the agents of the commissioner and are subject to, and must strictly comply with, all 
350.24 	rules consistent with this chapter prescribed by the commissioner.

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

350.26 	Sec. 8. Minnesota Statutes 2016, section 297B.07, is amended to read:
350.27 	297B.07 PRESUMPTIONS.
350.28 		Subdivision 1.Presumption; sale and registration. For the purpose of the proper 
350.29 	administration of Laws 1971, chapter 853 this chapter, and to prevent evasion of the tax, 
350.30 	the following presumptions shall apply:
351.1 	(a) Evidence that a motor vehicle was sold for delivery in this state shall be prima facie 
351.2 	evidence that it was sold for use in this state.
351.3 	(b) When an application for registration plates for a motor vehicle is received by the 
351.4 	motor vehicle registrar within 30 days of the date it was purchased or acquired by the 
351.5 	purchaser, it shall be presumed, until the contrary is shown by the purchaser, that it was 
351.6 	purchased or acquired for use in this state. This presumption shall apply whether or not such 
351.7 	vehicle was previously titled or registered in another state.
351.8 		Subd. 2.Presumption; ownership. (a) When a business entity not organized under the 
351.9 	laws of this state owns a motor vehicle that is under the control of a Minnesota resident, it 
351.10 	is presumed that the Minnesota resident is the owner of the motor vehicle if two or more 
351.11 	of the following are true:
351.12 	(1) the business entity lacks a specific business activity or purpose other than the 
351.13 	avoidance of tax;
351.14 	(2) the business entity maintains no physical location in the jurisdiction where it is 
351.15 	organized;
351.16 	(3) the business entity earns de minimis or no revenue;
351.17 	(4) the business entity maintains minimal or no business records;
351.18 	(5) the business entity fails to employ individual persons and provide those persons with 
351.19 	federal income tax W-2 wage and tax statements; or
351.20 	(6) the business entity fails to file federal income tax returns or fails to file a required 
351.21 	state tax return where it is organized.
351.22 	(b) For purposes of this subdivision, a motor vehicle is under the control of a Minnesota 
351.23 	resident if the Minnesota resident:
351.24 	(1) is a partner, member, or shareholder of the business entity;
351.25 	(2) is insured to drive the vehicle; and
351.26 	(3) operates or stores the vehicle in Minnesota for any period of time.

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

351.28 	Sec. 9. Minnesota Statutes 2016, section 297I.30, subdivision 7, is amended to read:
351.29 		Subd. 7.Surcharge. (a) By April 30 of each year, every company required to pay the 
351.30 	surcharge under section 297I.10, subdivision 1, shall file a return for the five-month period 
351.31 	ending March 31 in the form prescribed by the commissioner.
352.1 	(b) (a) By June 30 of each year, every company required to pay the surcharge under 
352.2 	section 297I.10, subdivision 1, shall file a return for the two-month seven-month period 
352.3 	ending May 31 in the form prescribed by the commissioner.
352.4 	(c) (b) By November 30 of each year, every company required to pay the surcharge 
352.5 	under section 297I.10, subdivision 1, shall file a return for the five-month period ending 
352.6 	October 31 in the form prescribed by the commissioner.

352.7 	EFFECTIVE DATE. This section is effective for returns due after October 31, 2017.

352.8 	Sec. 10.  REPEALER.
 352.9 	Minnesota Rules, part 8125.1300, subpart 3, is repealed.

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

352.11 	ARTICLE 22
352.12 	DEPARTMENT OF REVENUE PAID PREPARER POLICY PROVISIONS

352.13 	Section 1. Minnesota Statutes 2016, section 270C.445, subdivision 2, is amended to read:
352.14 		Subd. 2.Definitions. (a) For purposes of this section and sections 270C.4451 to 
352.15 	270C.447, the following terms have the meanings given.
352.16 	(b) "Advertise" means to solicit business through any means or medium.
352.17 	(c) "Client" means an individual a person for whom a tax preparer performs or agrees 
352.18 	to perform tax preparation services.
352.19 	(d) "Facilitate" means to individually or in conjunction or cooperation with another 
352.20 	person:
352.21 	(1) accept an application for a refund anticipation loan;
352.22 	(2) pay to a client the proceeds, through direct deposit, a negotiable instrument, or any 
352.23 	other means, of a refund anticipation loan; or
352.24 	(3) offer, arrange, process, provide, or in any other manner act to allow the making of, 
352.25 	a refund anticipation loan.
352.26 	(e) "Person" means an individual, corporation, partnership, limited liability company, 
352.27 	association, trustee, or other legal entity.
352.28 	(f) (e) "Refund anticipation check" means a negotiable instrument provided to a client 
352.29 	by the tax preparer or another person, which is issued from the proceeds of a taxpayer's 
353.1 	federal or state income tax refund or both and represents the net of the refund minus the tax 
353.2 	preparation fee and any other fees. A refund anticipation check includes a refund transfer.
353.3 	(g) (f) "Refund anticipation loan" means a loan or any other extension of credit, whether 
353.4 	provided by the tax preparer or another entity such as a financial institution, in anticipation 
353.5 	of, and whose payment is secured by, a client's federal or state income tax refund or both.
353.6 	(h) (g) "Tax preparation services" means services provided for a fee or other consideration
353.7 	compensation to a client to:
353.8 	(1) assist with preparing or filing state or federal individual income tax returns a return;
353.9 	(2) assume final responsibility for completed work on an individual income tax a return 
353.10 	on which preliminary work has been done by another; or
353.11 	(3) sign or include on a return the preparer tax identification number required under 
353.12 	section 6109(a)(4) of the Internal Revenue Code; or
353.13 	(3) (4) facilitate the provision of a refund anticipation loans and loan or a refund 
353.14 	anticipation checks check.
353.15 	(i) (h) "Tax preparer" or "preparer" means a person providing tax preparation services 
353.16 	subject to this section. except:
353.17 	(1) an employee who prepares their employer's return;
353.18 	(2) any fiduciary, or the regular employees of a fiduciary, while acting on behalf of the 
353.19 	fiduciary estate, testator, trustor, grantor, or beneficiaries of them;
353.20 	(3) nonprofit organizations providing tax preparation services under the Internal Revenue 
353.21 	Service Volunteer Income Tax Assistance Program or Tax Counseling for the Elderly 
353.22 	Program;
353.23 	(4) a person who merely furnishes typing, reproducing, or other mechanical assistance;
353.24 	(5) a third-party bulk filer as defined in section 290.92, subdivision 30, that is currently 
353.25 	registered with the commissioner; and
353.26 	(6) a certified service provider as defined in section 297A.995, subdivision 2, paragraph 
353.27 	(c), that provides all of the sales tax functions for a retailer not maintaining a place of 
353.28 	business in this state as described in section 297A.66.
353.29 	(i) Except as otherwise provided, "return" means:
353.30 	(1) a return as defined in section 270C.01, subdivision 8;
353.31 	(2) a claim for refund of an overpayment;
354.1 	(3) a claim filed pursuant to chapter 290A; and
354.2 	(4) a claim for a credit filed under section 290.0677, subdivision 1.

354.3 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
354.4 	31, 2017.

354.5 	Sec. 2. Minnesota Statutes 2016, section 270C.445, subdivision 3, is amended to read:
354.6 		Subd. 3.Standards of conduct. No tax preparer shall:
354.7 	(1) without good cause fail to promptly, diligently, and without unreasonable delay 
354.8 	complete a client's tax return;
354.9 	(2) obtain the signature of a client to a tax return or authorizing document that contains 
354.10 	blank spaces to be filled in after it has been signed;
354.11 	(3) fail to sign a client's tax return when payment compensation for services rendered 
354.12 	has been made;
354.13 	(4) fail to provide on a client's return the preparer tax identification number when required 
354.14 	under section 6109(a)(4) of the Internal Revenue Code or section 289A.60, subdivision 28;
354.15 	(4) (5) fail or refuse to give a client a copy of any document requiring the client's signature 
354.16 	within a reasonable time after the client signs the document;
354.17 	(5) (6) fail to retain for at least four years a copy of individual income tax a client's
354.18 	returns;
354.19 	(6) (7) fail to maintain a confidential relationship with clients or former clients;
354.20 	(7) (8) fail to take commercially reasonable measures to safeguard a client's nonpublic 
354.21 	personal information;
354.22 	(8) (9) make, authorize, publish, disseminate, circulate, or cause to make, either directly 
354.23 	or indirectly, any false, deceptive, or misleading statement or representation relating to or 
354.24 	in connection with the offering or provision of tax preparation services;
354.25 	(9) (10) require a client to enter into a loan arrangement in order to complete a tax client's
354.26 	return;
354.27 	(10) (11) claim credits or deductions on a client's tax return for which the tax preparer 
354.28 	knows or reasonably should know the client does not qualify;
354.29 	(12) report a household income on a client's claim filed under chapter 290A that the tax 
354.30 	preparer knows or reasonably should know is not accurate;
355.1 	(13) engage in any conduct that is subject to a penalty under section 289A.60, subdivision 
355.2 	13, 20, 20a, 26, or 28;
355.3 	(14) whether or not acting as a taxpayer representative, fail to conform to the standards 
355.4 	of conduct required by Minnesota Rules, part 8052.0300, subpart 4;
355.5 	(15) whether or not acting as a taxpayer representative, engage in any conduct that is 
355.6 	incompetent conduct under Minnesota Rules, part 8052.0300, subpart 5;
355.7 	(16) whether or not acting as a taxpayer representative, engage in any conduct that is 
355.8 	disreputable conduct under Minnesota Rules, part 8052.0300, subpart 6;
355.9 	(11) (17) charge, offer to accept, or accept a fee based upon a percentage of an anticipated 
355.10 	refund for tax preparation services;
355.11 	(12) (18) under any circumstances, withhold or fail to return to a client a document 
355.12 	provided by the client for use in preparing the client's tax return;
355.13 	(13) (19) establish an account in the preparer's name to receive a client's refund through 
355.14 	a direct deposit or any other instrument unless the client's name is also on the account, 
355.15 	except that a taxpayer may assign the portion of a refund representing the Minnesota 
355.16 	education credit available under section 290.0674 to a bank account without the client's 
355.17 	name, as provided under section 290.0679;
355.18 	(14) (20) fail to act in the best interests of the client;
355.19 	(15) (21) fail to safeguard and account for any money handled for the client;
355.20 	(16) (22) fail to disclose all material facts of which the preparer has knowledge which 
355.21 	might reasonably affect the client's rights and interests;
355.22 	(17) (23) violate any provision of section 332.37;
355.23 	(18) (24) include any of the following in any document provided or signed in connection 
355.24 	with the provision of tax preparation services:
355.25 	(i) a hold harmless clause;
355.26 	(ii) a confession of judgment or a power of attorney to confess judgment against the 
355.27 	client or appear as the client in any judicial proceeding;
355.28 	(iii) a waiver of the right to a jury trial, if applicable, in any action brought by or against 
355.29 	a debtor;
355.30 	(iv) an assignment of or an order for payment of wages or other compensation for 
355.31 	services;
356.1 	(v) a provision in which the client agrees not to assert any claim or defense otherwise 
356.2 	available;
356.3 	(vi) a waiver of any provision of this section or a release of any obligation required to 
356.4 	be performed on the part of the tax preparer; or
356.5 	(vii) a waiver of the right to injunctive, declaratory, or other equitable relief or relief on 
356.6 	a class basis; or
356.7 	(19) (25) if making, providing, or facilitating a refund anticipation loan, fail to provide 
356.8 	all disclosures required by the federal Truth in Lending Act, United States Code, title 15, 
356.9 	in a form that may be retained by the client.

356.10 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
356.11 	31, 2017.

356.12 	Sec. 3. Minnesota Statutes 2016, section 270C.445, subdivision 5a, is amended to read:
356.13 		Subd. 5a.Nongame wildlife checkoff. A tax preparer must give written notice of the 
356.14 	option to contribute to the nongame wildlife management account in section 290.431 to 
356.15 	corporate clients that file an income tax return and to individual clients who file an income 
356.16 	tax return or property tax refund claim form under chapter 290A. This notification must be 
356.17 	included with information sent to the client at the same time as the preliminary worksheets 
356.18 	or other documents used in preparing the client's return and must include a line for displaying 
356.19 	contributions.

356.20 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
356.21 	31, 2017.

356.22 	Sec. 4. Minnesota Statutes 2016, section 270C.445, subdivision 6, is amended to read:
356.23 		Subd. 6.Enforcement; administrative order; penalties; cease and desist. (a) The 
356.24 	commissioner may impose an administrative penalty of not more than $1,000 per violation 
356.25 	of subdivision 3, 3a, 4, 5, or 5b or 5, or section 270C.4451, provided that a penalty may not 
356.26 	be imposed for any conduct that is also subject to the for which a tax return preparer penalties 
356.27 	inpenalty is imposed under section 289A.60, subdivision 13. The commissioner may 
356.28 	terminate a tax preparer's authority to transmit returns electronically to the state, if the 
356.29 	commissioner determines the tax preparer engaged in a pattern and practice of violating 
356.30 	this section. Imposition of a penalty under this subdivision paragraph is subject to the 
356.31 	contested case procedure under chapter 14. The commissioner shall collect the penalty in 
356.32 	the same manner as the income tax. There is no right to make a claim for refund under 
357.1 	section 289A.50 of the penalty imposed under this paragraph. Penalties imposed under this 
357.2 	subdivision paragraph are public data.
357.3 	(b) In addition to the penalty under paragraph (a), if the commissioner determines that 
357.4 	a tax preparer has violated subdivision 3 or 5, or section 270C.4451, the commissioner may 
357.5 	issue an administrative order to the tax preparer requiring the tax preparer to cease and 
357.6 	desist from committing the violation. The administrative order may include an administrative 
357.7 	penalty provided in paragraph (a).
357.8 	(c) If the commissioner issues an administrative order under paragraph (b), the 
357.9 	commissioner must send the order to the tax preparer addressed to the last known address 
357.10 	of the tax preparer.
357.11 	(d) A cease and desist order under paragraph (b) must:
357.12 	(1) describe the act, conduct, or practice committed and include a reference to the law 
357.13 	that the act, conduct, or practice violates; and
357.14 	(2) provide notice that the tax preparer may request a hearing as provided in this 
357.15 	subdivision.
357.16 	(e) Within 30 days after the commissioner issues an administrative order under paragraph 
357.17 	(b), the tax preparer may request a hearing to review the commissioner's action. The request 
357.18 	for hearing must be made in writing and must be served on the commissioner at the address 
357.19 	specified in the order. The hearing request must specifically state the reasons for seeking 
357.20 	review of the order. The date on which a request for hearing is served by mail is the postmark 
357.21 	date on the envelope in which the request for hearing is mailed.
357.22 	(f) If a tax preparer does not timely request a hearing regarding an administrative order 
357.23 	issued under paragraph (b), the order becomes a final order of the commissioner and is not 
357.24 	subject to review by any court or agency.
357.25 	(g) If a tax preparer timely requests a hearing regarding an administrative order issued 
357.26 	under paragraph (b), the hearing must be commenced within ten days after the commissioner 
357.27 	receives the request for a hearing.
357.28 	(h) A hearing timely requested under paragraph (e) is subject to the contested case 
357.29 	procedure under chapter 14, as modified by this subdivision. The administrative law judge 
357.30 	must issue a report containing findings of fact, conclusions of law, and a recommended 
357.31 	order within ten days after the completion of the hearing, the receipt of late-filed exhibits, 
357.32 	or the submission of written arguments, whichever is later.
358.1 	(i) Within five days of the date of the administrative law judge's report issued under 
358.2 	paragraph (h), any party aggrieved by the administrative law judge's report may submit 
358.3 	written exceptions and arguments to the commissioner. Within 15 days after receiving the 
358.4 	administrative law judge's report, the commissioner must issue an order vacating, modifying, 
358.5 	or making final the administrative order.
358.6 	(j) The commissioner and the tax preparer requesting a hearing may by agreement 
358.7 	lengthen any time periods prescribed in paragraphs (g) to (i).
358.8 	(k) An administrative order issued under paragraph (b) is in effect until it is modified 
358.9 	or vacated by the commissioner or an appellate court. The administrative hearing provided 
358.10 	by paragraphs (e) to (i) and any appellate judicial review as provided in chapter 14 constitute 
358.11 	the exclusive remedy for a tax preparer aggrieved by the order.
358.12 	(l) The commissioner may impose an administrative penalty, in addition to the penalty 
358.13 	under paragraph (a), up to $5,000 per violation of a cease and desist order issued under 
358.14 	paragraph (b). Imposition of a penalty under this paragraph is subject to the contested case 
358.15 	procedure under chapter 14. Within 30 days after the commissioner imposes a penalty under 
358.16 	this paragraph, the tax preparer assessed the penalty may request a hearing to review the 
358.17 	penalty order. The request for hearing must be made in writing and must be served on the 
358.18 	commissioner at the address specified in the order. The hearing request must specifically 
358.19 	state the reasons for seeking review of the order. The cease and desist order issued under 
358.20 	paragraph (b) is not subject to review in a proceeding to challenge the penalty order under 
358.21 	this paragraph. The date on which a request for hearing is served by mail is the postmark 
358.22 	date on the envelope in which the request for hearing is mailed. If the tax preparer does not 
358.23 	timely request a hearing, the penalty order becomes a final order of the commissioner and 
358.24 	is not subject to review by any court or agency. A penalty imposed by the commissioner 
358.25 	under this paragraph may be collected and enforced by the commissioner as an income tax 
358.26 	liability. There is no right to make a claim for refund under section 289A.50 of the penalty 
358.27 	imposed under this paragraph. A penalty imposed under this paragraph is public data.
358.28 	(m) If a tax preparer violates a cease and desist order issued under paragraph (b), the 
358.29 	commissioner may terminate the tax preparer's authority to transmit returns electronically 
358.30 	to the state. Termination under this paragraph is public data.
358.31 	(n) A cease and desist order issued under paragraph (b) is public data when it is a final 
358.32 	order.
359.1 	(o) Notwithstanding any other law, the commissioner may impose a penalty or take other 
359.2 	action under this subdivision against a tax preparer, with respect to a return, within the 
359.3 	period to assess tax on that return as provided by section 289A.38.
359.4 	(p) Notwithstanding any other law, the imposition of a penalty or any other action against 
359.5 	a tax preparer under this subdivision, other than with respect to a return, must be taken by 
359.6 	the commissioner within five years of the violation of statute.

359.7 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
359.8 	31, 2017.

359.9 	Sec. 5. Minnesota Statutes 2016, section 270C.445, subdivision 6a, is amended to read:
359.10 		Subd. 6a.Exchange of data; State Board of Accountancy. The State Board of 
359.11 	Accountancy shall refer to the commissioner complaints it receives about tax preparers who 
359.12 	are not subject to the jurisdiction of the State Board of Accountancy and who are alleged 
359.13 	to have violated the provisions of subdivisions 3, 3a, 4, 4a, 4b, 5, and 5b this section, except 
359.14 	subdivision 5a, or section 270C.4451.

359.15 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
359.16 	31, 2017.

359.17 	Sec. 6. Minnesota Statutes 2016, section 270C.445, subdivision 6b, is amended to read:
359.18 		Subd. 6b.Exchange of data; Lawyers Board of Professional Responsibility. The 
359.19 	Lawyers Board of Professional Responsibility may refer to the commissioner complaints 
359.20 	it receives about tax preparers who are not subject to its jurisdiction and who are alleged to 
359.21 	have violated the provisions of subdivisions 3, 3a, 4, 4a, 4b, 5, and 5b this section, except 
359.22 	subdivision 5a, or section 270C.4451.

359.23 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
359.24 	31, 2017.

359.25 	Sec. 7. Minnesota Statutes 2016, section 270C.445, subdivision 6c, is amended to read:
359.26 		Subd. 6c.Exchange of data; commissioner. The commissioner shall refer information 
359.27 	and complaints about tax preparers who are alleged to have violated the provisions of 
359.28 	subdivisions 3, 3a, 4, 4a, 4b, 5, and 5b this section, except subdivision 5a, or section 
359.29 	270C.4451, to:
359.30 	(1) the State Board of Accountancy, if the tax preparer is under its jurisdiction; and
360.1 	(2) the Lawyers Board of Professional Responsibility, if the tax preparer is under its 
360.2 	jurisdiction.

360.3 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
360.4 	31, 2017.

360.5 	Sec. 8. Minnesota Statutes 2016, section 270C.445, subdivision 7, is amended to read:
360.6 		Subd. 7.Enforcement; civil actions. (a) Any violation of this section or section 
360.7 	270C.4451 is an unfair, deceptive, and unlawful trade practice within the meaning of section 
360.8 	8.31. An action taken under this section is in the public interest.
360.9 	(b) A client may bring a civil action seeking redress for a violation of this section in the 
360.10 	conciliation or the district court of the county in which unlawful action is alleged to have 
360.11 	been committed or where the respondent resides or has a principal place of business.
360.12 	(c) A court finding for the plaintiff must award:
360.13 	(1) actual damages;
360.14 	(2) incidental and consequential damages;
360.15 	(3) statutory damages of twice the sum of: (i) the tax preparation fees; and (ii) if the 
360.16 	plaintiff violated subdivision 3a, 4, or 5b section 270C.4451, subdivision 1, 2, or 5, all 
360.17 	interest and fees for a refund anticipation loan;
360.18 	(4) reasonable attorney fees;
360.19 	(5) court costs; and
360.20 	(6) any other equitable relief as the court considers appropriate.

360.21 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
360.22 	31, 2017.

360.23 	Sec. 9. Minnesota Statutes 2016, section 270C.445, subdivision 8, is amended to read:
360.24 		Subd. 8.Limited exemptions. (a) Except as provided in paragraph (b), the provisions 
360.25 	of this section, except for subdivisions 3a, 4, and 5b, subdivisions 3; 5; 5a; 6, paragraphs 
360.26 	(a) to (n); and 7, do not apply to:
360.27 	(1) an attorney admitted to practice under section 481.01;
360.28 	(2) a registered accounting practitioner, a registered accounting practitioner firm, a 
360.29 	certified public accountant, or other person who is subject to the jurisdiction of the State 
361.1 	Board of Accountancy a certified public accountant firm, licensed in accordance with chapter 
361.2 	326A;
361.3 	(3) an enrolled agent who has passed the special enrollment examination administered 
361.4 	by the Internal Revenue Service; or
361.5 	(4) anyone a person who provides, or assists in providing, tax preparation services within 
361.6 	the scope of duties as an employee or supervisor under the direction or supervision of a 
361.7 	person who is exempt under this subdivision.; or
361.8 	(5) a person acting as a supervisor to a tax preparer who is exempt under this subdivision.
361.9 	(b) The provisions of subdivisions 3; 6, paragraphs (a) to (n); and 7, apply to a tax 
361.10 	preparer who would otherwise be exempt under paragraph (a) if the tax preparer has:
361.11 	(1) had a professional license suspended or revoked for cause, not including a failure to 
361.12 	pay a professional licensing fee, by any authority of any state, territory, or possession of 
361.13 	the United States, including a commonwealth, or the District of Columbia, any federal court 
361.14 	of record, or any federal agency, body, or board;
361.15 	(2) irrespective of whether an appeal has been taken, been convicted of any crime 
361.16 	involving dishonesty or breach of trust;
361.17 	(3) been censured, suspended, or disbarred under United States Treasury Department 
361.18 	Circular 230;
361.19 	(4) been sanctioned by a court of competent jurisdiction, whether in a civil or criminal 
361.20 	proceeding, including suits for injunctive relief, relating to any taxpayer's tax liability or 
361.21 	the tax preparer's own tax liability, for:
361.22 	(i) instituting or maintaining proceedings primarily for delay;
361.23 	(ii) advancing frivolous or groundless arguments; or
361.24 	(iii) failing to pursue available administrative remedies; or
361.25 	(5) demonstrated a pattern of willful disreputable conduct by:
361.26 	(i) failing to file a return that the tax preparer was required to file annually for two of 
361.27 	the three immediately preceding tax periods; or
361.28 	(ii) failing to file a return that the tax preparer was required to file more frequently than 
361.29 	annually for three of the six immediately preceding tax periods.

361.30 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
361.31 	31, 2017.

362.1 	Sec. 10. Minnesota Statutes 2016, section 270C.445, is amended by adding a subdivision 
362.2 	to read:
362.3 		Subd. 10.Powers additional. The powers and authority granted in this section are in 
362.4 	addition to all other powers of the commissioner. The use of the powers granted in this 
362.5 	section does not preclude the use of any other power or authority of the commissioner.

362.6 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
362.7 	31, 2017.

362.8 	Sec. 11. Minnesota Statutes 2016, section 270C.446, subdivision 2, is amended to read:
362.9 		Subd. 2.Required and excluded tax preparers. (a) Subject to the limitations of 
362.10 	paragraph (b), the commissioner must publish lists of tax preparers as defined in section 
362.11 	289A.60, subdivision 13, paragraph (f) 270C.445, subdivision 2, paragraph (h), who have 
362.12 	been:
362.13 	(1) convicted under section 289A.63for returns or claims prepared as a tax preparer or;
362.14 	(2) assessed penalties in excess of $1,000 under section 289A.60, subdivision 13, 
362.15 	paragraph (a).;
362.16 	(3) convicted for identity theft under section 609.527, or a similar statute, for a return 
362.17 	filed with the commissioner, the Internal Revenue Service, or another state;
362.18 	(4) assessed a penalty under section 270C.445, subdivision 6, paragraph (a), in excess 
362.19 	of $1,000;
362.20 	(5) issued a cease and desist order under section 270C.445, subdivision 6, paragraph 
362.21 	(b), that has become a final order; or
362.22 	(6) assessed a penalty under section 270C.445, subdivision 6, paragraph (l), for violating 
362.23 	a cease and desist order.
362.24 	(b) For the purposes of this section, tax preparers are not subject to publication if:
362.25 	(1) an administrative or court action contesting the or appealing a penalty described in 
362.26 	paragraph (a), clause (2), (4), or (6), has been filed or served and is unresolved at the time 
362.27 	when notice would be given under subdivision 3;
362.28 	(2) an appeal period to contest the a penalty described in paragraph (a), clause (2), (4), 
362.29 	or (6), has not expired; or
362.30 	(3) the commissioner has been notified that the tax preparer is deceased.;
363.1 	(4) an appeal period to contest a cease and desist order issued under section 270C.445, 
363.2 	subdivision 6, paragraph (b), has not expired;
363.3 	(5) an administrative or court action contesting or appealing a cease and desist order 
363.4 	issued under section 270C.445, subdivision 6, paragraph (b), has been filed or served and 
363.5 	is unresolved at the time when notice would be given under subdivision 3;
363.6 	(6) a direct appeal of a conviction described in paragraph (a), clause (1) or (3), has been 
363.7 	filed or served and is unresolved at the time when the notice would be given under 
363.8 	subdivision 3; or
363.9 	(7) an appeal period to contest a conviction described in paragraph (a), clause (1) or (3), 
363.10 	has not expired.

363.11 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
363.12 	31, 2017.

363.13 	Sec. 12. Minnesota Statutes 2016, section 270C.446, subdivision 3, is amended to read:
363.14 		Subd. 3.Notice to tax preparer. (a) At least 30 days before publishing the name of a 
363.15 	tax preparer subject to penalty publication under this section, the commissioner shall mail 
363.16 	a written notice to the tax preparer, detailing the amount and nature of each penalty basis 
363.17 	for the publication and the intended publication of the information listed in subdivision 4 
363.18 	related to the penalty. The notice must be mailed by first class and certified mail sent to the 
363.19 	tax preparer addressed to the last known address of the tax preparer. The notice must include 
363.20 	information regarding the exceptions listed in subdivision 2, paragraph (b), and must state 
363.21 	that the tax preparer's information will not be published if the tax preparer provides 
363.22 	information establishing that subdivision 2, paragraph (b), prohibits publication of the tax 
363.23 	preparer's name.
363.24 	(b) Thirty days after the notice is mailed and if the tax preparer has not proved to the 
363.25 	commissioner that subdivision 2, paragraph (b), prohibits publication, the commissioner 
363.26 	may publish in a list of tax preparers subject to penalty the information about the tax preparer 
363.27 	that is listed in subdivision 4.

363.28 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
363.29 	31, 2017.

363.30 	Sec. 13. Minnesota Statutes 2016, section 270C.446, subdivision 4, is amended to read:
363.31 		Subd. 4.Form of list. The list may be published by any medium or method. The list 
363.32 	must contain the name, associated business name or names, address or addresses, and 
364.1 	violation or violations for which a penalty was imposed of that make each tax preparer 
364.2 	subject to penalty publication.

364.3 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
364.4 	31, 2017.

364.5 	Sec. 14. Minnesota Statutes 2016, section 270C.446, subdivision 5, is amended to read:
364.6 		Subd. 5.Removal from list. The commissioner shall remove the name of a tax preparer 
364.7 	from the list of tax preparers published under this section:
364.8 	(1) when the commissioner determines that the name was included on the list in error;
364.9 	(2) within 90 days three years after the preparer has demonstrated to the commissioner 
364.10 	that the preparer fully paid all fines and penalties imposed, served any suspension, satisfied 
364.11 	any sentence imposed, successfully completed any probationary period imposed, and 
364.12 	successfully completed any remedial actions required by the commissioner, the State Board 
364.13 	of Accountancy, or the Lawyers Board of Professional Responsibility; or
364.14 	(3) when the commissioner has been notified that the tax preparer is deceased.

364.15 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
364.16 	31, 2017.

364.17 	Sec. 15. Minnesota Statutes 2016, section 270C.447, subdivision 1, is amended to read:
364.18 		Subdivision 1.Commencement of action. (a) Whenever it appears to the commissioner 
364.19 	that a tax preparer doing business in Minnesota has engaged in any conduct described in 
364.20 	subdivision 2, a civil action in the name of the state of Minnesota may be commenced to 
364.21 	enjoin any person who is a tax return preparer doing business in this state from further 
364.22 	engaging in any conduct described in subdivision 2 the conduct and enforce compliance.
364.23 	(b) An action under this subdivision must be brought by the attorney general in:
364.24 	(1) the district court for the judicial district of the tax return preparer's residence or 
364.25 	principal place of business, or in which the;
364.26 	(2) the district court for the judicial district of the residence of any taxpayer with respect 
364.27 	to whose tax return the action is brought resides; or
364.28 	(3) Ramsey County District Court.
364.29 	(c) The court may exercise its jurisdiction over the action separate and apart from any 
364.30 	other action brought by the state of Minnesota against the tax return preparer or any taxpayer.
365.1 	The court must grant a permanent injunction or other appropriate relief if the commissioner 
365.2 	shows that the person has engaged in conduct constituting a violation of a law administered 
365.3 	by the commissioner or a cease and desist order issued by the commissioner. The 
365.4 	commissioner shall not be required to show irreparable harm.

365.5 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
365.6 	31, 2017.

365.7 	Sec. 16. Minnesota Statutes 2016, section 270C.447, subdivision 2, is amended to read:
365.8 		Subd. 2.Injunction prohibiting specific conduct. In an action under subdivision 1,
365.9 	the court may enjoin the person from further engaging in that conduct if the court finds that 
365.10 	a tax return preparer has:
365.11 	(1) engaged in any conduct subject to a civil penalty under section 289A.60or, a criminal 
365.12 	penalty under section 289A.63, or a criminal penalty under section 609.527 or a similar 
365.13 	statute for a return filed with the commissioner, the Internal Revenue Service, or another 
365.14 	state;
365.15 	(2) misrepresented the preparer's eligibility to practice before the Department of Revenue, 
365.16 	or otherwise misrepresented the preparer's experience or education as a tax return preparer;
365.17 	(3) guaranteed the payment of any tax refund or the allowance of any tax credit; or
365.18 	(4) violated a cease and desist order issued by the commissioner; or
365.19 	(4) (5) engaged in any other fraudulent or deceptive conduct that substantially interferes 
365.20 	with the proper administration of a law administered by the commissioner, and injunctive 
365.21 	relief is appropriate to prevent the recurrence of that conduct,.
365.22 	the court may enjoin the person from further engaging in that conduct.

365.23 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
365.24 	31, 2017.

365.25 	Sec. 17. Minnesota Statutes 2016, section 270C.447, subdivision 3, is amended to read:
365.26 		Subd. 3.Injunction prohibiting all business activities. If the court finds that a tax 
365.27 	return preparer has continually or repeatedly engaged in conduct described in subdivision 
365.28 	2, and that an injunction prohibiting that conduct would not be sufficient to prevent the 
365.29 	person's interference with the proper administration of a law administered by the 
365.30 	commissioner, the court may enjoin the person from acting as a tax return preparer. The 
365.31 	court may not enjoin the employer of a tax return preparer for conduct described in 
366.1 	subdivision 2 engaged in by one or more of the employer's employees unless the employer 
366.2 	was also actively involved in that conduct.

366.3 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
366.4 	31, 2017.

366.5 	Sec. 18. Minnesota Statutes 2016, section 270C.447, is amended by adding a subdivision 
366.6 	to read:
366.7 		Subd. 3a.Enforcement of cease and desist orders. (a) Whenever the commissioner 
366.8 	under subdivision 1 or 3 seeks to enforce compliance with a cease and desist order, the court 
366.9 	must consider the allegations in the cease and desist order conclusively established if the 
366.10 	order is a final order.
366.11 	(b) If the court finds the tax preparer was not in compliance with a cease and desist order, 
366.12 	the court may impose a further civil penalty against the tax preparer for contempt in an 
366.13 	amount up to $10,000 for each violation and may grant any other relief the court determines 
366.14 	is just and proper in the circumstances. A civil penalty imposed by a court under this section 
366.15 	may be collected and enforced by the commissioner as an income tax liability.
366.16 	(c) The court may not require the commissioner to post a bond in an action or proceeding 
366.17 	under this section.

366.18 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
366.19 	31, 2017.

366.20 	Sec. 19. Minnesota Statutes 2016, section 289A.60, subdivision 13, is amended to read:
366.21 		Subd. 13.Penalties for tax return preparers. (a) If an understatement of liability with 
366.22 	respect to a return or claim for refund is due to a reckless disregard of laws and rules or 
366.23 	willful attempt in any manner to understate the liability for a tax by a person who is a tax 
366.24 	return preparer with respect to the return or claim, the person shall pay to the commissioner 
366.25 	a penalty of $500. If a part of a property tax refund claim filed under section 290.0677, 
366.26 	subdivision 1, or chapter 290A is excessive due to a reckless disregard or willful attempt 
366.27 	in any manner to overstate the claim for relief allowed under chapter 290A by a person who 
366.28 	is a tax refund or return preparer, the person tax preparer shall pay to the commissioner a 
366.29 	penalty of $500 with respect to the claim. These penalties may not be assessed against the 
366.30 	employer of a tax return preparer unless the employer was actively involved in the reckless 
366.31 	disregard or willful attempt to understate the liability for a tax or to overstate the claim for 
367.1 	refund. These penalties are income tax liabilities and may be assessed at any time as provided 
367.2 	in section 289A.38, subdivision 5.
367.3 	(b) A civil action in the name of the state of Minnesota may be commenced to enjoin 
367.4 	any person who is a tax return preparer doing business in this state as provided in section 
367.5 	270C.447.
367.6 	(c) The commissioner may terminate or suspend a tax preparer's authority to transmit 
367.7 	returns electronically to the state, if the commissioner determines that the tax preparer has 
367.8 	engaged in a pattern and practice of conduct in violation of paragraph (a) of this subdivision 
367.9 	or has been convicted under section 289A.63.
367.10 	(d) For purposes of this subdivision, the term "understatement of liability" means an 
367.11 	understatement of the net amount payable with respect to a tax imposed by state tax law, 
367.12 	or an overstatement of the net amount creditable or refundable with respect to a tax. The 
367.13 	determination of whether or not there is an understatement of liability must be made without 
367.14 	regard to any administrative or judicial action involving the taxpayer. For purposes of this 
367.15 	subdivision, the amount determined for underpayment of estimated tax under either section 
367.16 	289A.25 or 289A.26 is not considered an understatement of liability.
367.17 	(e) For purposes of this subdivision, the term "overstatement of claim" means an 
367.18 	overstatement of the net amount refundable with respect to a claim for property tax relief 
367.19 	provided by filed under section 290.0677, subdivision 1, or chapter 290A. The determination 
367.20 	of whether or not there is an overstatement of a claim must be made without regard to 
367.21 	administrative or judicial action involving the claimant.
367.22 	(f) For purposes of this section, the term "tax refund or return preparer"means an 
367.23 	individual who prepares for compensation, or who employs one or more individuals to 
367.24 	prepare for compensation, a return of tax, or a claim for refund of tax. The preparation of 
367.25 	a substantial part of a return or claim for refund is treated as if it were the preparation of 
367.26 	the entire return or claim for refund. An individual is not considered a tax return preparer 
367.27 	merely because the individual:
367.28 	(1) gives typing, reproducing, or other mechanical assistance;
367.29 	(2) prepares a return or claim for refund of the employer, or an officer or employee of 
367.30 	the employer, by whom the individual is regularly and continuously employed;
367.31 	(3) prepares a return or claim for refund of any person as a fiduciary for that person; or
368.1 	(4) prepares a claim for refund for a taxpayer in response to a tax order issued to the 
368.2 	taxpayer. "tax preparer" or "preparer" has the meaning given in section 270C.445, subdivision 
368.3 	2, paragraph (h).

368.4 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
368.5 	31, 2017.

368.6 	Sec. 20. Minnesota Statutes 2016, section 289A.60, subdivision 28, is amended to read:
368.7 		Subd. 28.Preparer identification number. Any Minnesota individual income tax return 
368.8 	or claim for refund prepared by a "tax refund or return preparer" as defined in subdivision 
368.9 	13, paragraph (f), shall bear the identification number the preparer is required to use federally 
368.10 	under section 6109(a)(4) of the Internal Revenue Code. (a) Each of the following that is 
368.11 	prepared by a tax preparer must include the tax preparer's tax identification number:
368.12 	(1) a tax return required to be filed under this chapter;
368.13 	(2) a claim filed under section 290.0677, subdivision 1, or chapter 290A; and
368.14 	(3) a claim for refund of an overpayment.
368.15 	(b) A tax preparer is not required to include their preparer tax identification number on 
368.16 	a filing if the number is not required in the forms or filing requirements provided by the 
368.17 	commissioner.
368.18 	(c) A tax refund or return preparer who prepares a Minnesota individual income tax 
368.19 	return or claim for refund and fails to include the requiredpreparer tax identification number 
368.20 	on the return or claim as required by this section is subject to a penalty of $50 for each 
368.21 	failure.
368.22 	(d) A tax preparer who fails to include the preparer tax identification number as required 
368.23 	by this section, and who is required to have a valid preparer tax identification number issued 
368.24 	under section 6109(a)(4) of the Internal Revenue Code, but does not have one, is subject to 
368.25 	a $500 penalty for each failure. A tax preparer subject to the penalty in this paragraph is 
368.26 	not subject to the penalty in paragraph (c).
368.27 	(e) For the purposes of this subdivision, "tax preparer" has the meaning given in section 
368.28 	270C.445, subdivision 2, paragraph (h), and "preparer tax identification number" means 
368.29 	the number the tax preparer is required to use federally under section 6109(a)(4) of the 
368.30 	Internal Revenue Code.

368.31 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
368.32 	31, 2017.

369.1 	Sec. 21. REVISOR'S INSTRUCTION.
 369.2 	(a) The revisor of statutes shall renumber the provisions of Minnesota Statutes listed in 
369.3 	column A to the references listed in column B.

369.4		Column A
	Column B
	
369.5		270C.445, subdivision 3a
	270C.4451, subdivision 1
	
369.6		270C.445, subdivision 4
	270C.4451, subdivision 2
	
369.7		270C.445, subdivision 4a
	270C.4451, subdivision 3
	
369.8		270C.445, subdivision 4b
	270C.4451, subdivision 4
	
369.9		270C.445, subdivision 5b
	270C.4451, subdivision 5
	
369.10 	(b) The revisor shall make necessary cross-reference changes in Minnesota Statutes and 
369.11 	Minnesota Rules consistent with the renumbering of Minnesota Statutes, section 270C.445, 
369.12 	subdivisions 3a, 4, 4a, 4b, and 5b.
369.13 	(c) The revisor shall publish the statutory derivations of the laws renumbered in this act 
369.14 	in Laws of Minnesota and report the derivations in Minnesota Statutes.
369.15 	(d) If Minnesota Statutes, section 270C.445, subdivisions 3a, 4, 4a, 4b, and 5b, are further 
369.16 	amended in the 2017 legislative session, the revisor shall codify the amendments in a manner 
369.17 	consistent with this act. The revisor may make necessary changes to sentence structure to 
369.18 	preserve the meaning of the text.

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

369.20 	Sec. 22.  REPEALER.
 369.21 	Minnesota Statutes 2016, sections 270C.445, subdivision 1; and 270C.447, subdivision 
369.22 	4, are repealed.

369.23 	EFFECTIVE DATE. This section is effective for claims and returns filed after December 
369.24 	31, 2017.

APPENDIX 

Repealed Minnesota Statutes: 17-4727 

136A.129 GREATER MINNESOTA INTERNSHIP PROGRAM.Subdivision 1.Definitions. 
(a) For the purposes of this section, the terms defined in this subdivision have the meanings given to them. 

(b) "Eligible employer" means a taxpayer under section 290.01 with employees located in greater Minnesota. 

(c) "Eligible institution" means a Minnesota public postsecondary institution or a Minnesota private, nonprofit, baccalaureate, or graduate degree-granting college or university. 

(d) "Eligible student" means a student enrolled in an eligible institution who has completed one-half of the credits necessary for the respective degree or certification, including a graduate degree. 

(e) "Greater Minnesota" means the area of the state outside of the counties of Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington, and Wright. 

Subd. 2.Program established. 
The office shall administer a greater Minnesota internship program through eligible institutions to provide credit at the eligible institution for internships and tax credits for eligible employers who hire interns for employment in greater Minnesota. 

Subd. 3.Program components. 
(a) An intern must be an eligible student who has been admitted to a major program that is related to the intern experience as determined by the eligible institution. 

(b) To participate in the program, an eligible institution must: 

(1) enter into written agreements with eligible employers to provide internships that are at least eight weeks long and located in greater Minnesota; and 

(2) provide academic credit for the successful completion of the internship or ensure that it fulfills requirements necessary to complete a vocational technical education program. 

(c) To participate in the program, an eligible employer must enter into a written agreement with an eligible institution specifying that the intern: 

(1) would not have been hired without the tax credit described in subdivision 4; 

(2) did not work for the employer in the same or a similar job prior to entering the agreement; 

(3) does not replace an existing employee; 

(4) has not previously participated in the program; 

(5) will be employed at a location in greater Minnesota; 

(6) will be paid at least minimum wage for a minimum of 16 hours per week for a period of at least eight weeks; and 

(7) will be supervised and evaluated by the employer. 

(d) The written agreement between the eligible institution and the eligible employer must certify a credit amount to the employer, not to exceed $2,000 per intern. The total dollar amount of credits that an eligible institution certifies to eligible employers in a calendar year may not exceed the amount of its allocation under subdivision 4. 

(e) Participating eligible institutions and eligible employers must report annually to the office. The report must include at least the following: 

(1) the number of interns hired; 

(2) the number of hours and weeks worked by interns; and 

(3) the compensation paid to interns. 

(f) An internship required to complete an academic program does not qualify for the greater Minnesota internship program under this section. 

Subd. 4.Tax credit allowed. 
An employer is entitled to a tax credit as provided in section 290.06, subdivision 36. The total amount of credits allocated in a calendar year must not exceed $2,000,000. The office shall determine relevant criteria to allocate the tax credits including the geographic distribution of credits to work locations outside the metropolitan area, and shall allocate credits to eligible institutions that meet the criteria on a first-come, first-served basis. Any credits allocated to an institution but not used may be reallocated to eligible institutions. The office shall allocate a portion of the administrative fee under section 290.06, subdivision 36, to participating eligible institutions for their administrative costs. 

Subd. 5.Reports to the legislature. 
(a) By February 1, 2016, the office and the Department of Revenue shall report to the legislature on the greater Minnesota internship program. The report must include at least the following: 

(1) the number and dollar amount of credits allowed; 

(2) the number of interns employed under the program; and 

(3) the cost of administering the program. 

(b) By February 1, 2017, the office and the Department of Revenue shall report to the legislature with an analysis of the effectiveness of the program in stimulating businesses to hire interns and in assisting participating interns in finding permanent career positions. This report must include the number of students who participated in the program who were subsequently employed full-time by the employer. 

270.074 VALUATION OF FLIGHT PROPERTY; METHODS OF APPORTIONMENT; RATIO OF TAX.Subd. 2.Other apportionment methods. 
The method prescribed by subdivision 1 shall be presumed to determine fairly and correctly the value of the flight property of an airline allocable to this state. Any airline aggrieved by the valuation of the flight property or the application to its case of the apportionment methods prescribed by subdivision 1, may petition the commissioner for determination of the valuation or the apportionment thereof to this state by the use of some other method. Thereupon, if the commissioner finds that the application of the methods prescribed by subdivision 1 will be unjust to the airline, the commissioner may allow the use of the methods so petitioned for by the airline, or may determine the valuation or apportionment thereof by other methods if satisfied that such other methods will fairly reflect such valuation or apportionment thereof. 

270C.445 TAX PREPARATION SERVICES.Subdivision 1.Scope. 
This section applies to a person who provides tax preparation services, except: 

(1) a person who provides tax preparation services for fewer than ten clients in a calendar year; 

(2) a person who provides tax preparation services only to immediate family members. For the purposes of this section, "immediate family members" means a spouse, parent, grandparent, child, or sibling; 

(3) an employee who prepares a tax return for an employer's business; 

(4) any fiduciary, or the regular employees of a fiduciary, while acting on behalf of the fiduciary estate, testator, trustor, grantor, or beneficiaries of them; and 

(5) nonprofit organizations providing tax preparation services under the Internal Revenue Service Volunteer Income Tax Assistance Program or Tax Counseling for the Elderly Program. 

270C.447 LEGAL ACTION TO ENJOIN TAX RETURN PREPARER.Subd. 4.Tax return preparer. 
For purposes of this section, the term "tax return preparer" means an individual who prepares for compensation, or who employs one or more individuals to prepare for compensation, a return of tax or a claim for refund of tax. The preparation of a substantial part of a return or claim for refund is treated as if it were the preparation of the entire return or claim for refund. An individual is not considered a tax return preparer merely because the individual: 

(1) gives typing, reproducing, or other mechanical assistance; 

(2) prepares a return or claim for refund of the employer, or an officer or employee of the employer, by whom the individual is regularly and continuously employed; 

(3) prepares a return or claim for refund of any person as a fiduciary for that person; or 

(4) prepares a claim for refund for a taxpayer in response to a tax order issued to the taxpayer. 

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

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

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

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

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

290.06 RATES OF TAX; CREDITS.Subd. 36.Greater Minnesota internship credit. 
(a) A taxpayer who is an eligible employer may take a credit against the tax due under this chapter equal to the lesser of: 

(1) 40 percent of the compensation paid to an intern qualifying under the program established under section 136A.129, but not to exceed $2,000 per intern; or 

(2) the amount certified to the taxpayer by an eligible institution out of the institution's allocation of credits for the calendar year, as provided in section 136A.129. 

(b) Credits allowed to a partnership, a limited liability company taxed as a partnership, an S corporation, or multiple owners of property are passed through to the partners, members, shareholders, or owners, respectively, pro rata to each partner, member, shareholder, or owner based on their share of the entity's income for the taxable year. 

(c) If the amount of credit which the taxpayer is eligible to receive under this subdivision exceeds the taxpayer's tax liability under this chapter, the commissioner of revenue shall refund the excess to the taxpayer. 

(d) An amount necessary to pay claims for refund provided in this subdivision is appropriated from the general fund to the commissioner of revenue. 

(e) An amount equal to one percent of the total amount of the credits authorized under section 136A.129, subdivision 4, for an administrative fee for the Office of Higher Education and participating eligible institutions is appropriated from the general fund to the commissioner of revenue, for a transfer to the Office of Higher Education. 

(f) For purposes of this subdivision, the terms "eligible employer" and "eligible institution" have the meanings given in section 136A.129. 

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

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

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

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

290.9743 ELECTION BY FASIT.
An entity having a valid election as a financial asset securitization investment trust in effect for a taxable year under section 860L(a) of the Internal Revenue Code shall not be subject to the taxes imposed by this chapter, except the tax imposed under section 290.92. 

290.9744 FASIT INCOME TAXABLE TO HOLDERS OF INTERESTS.
The income of a financial asset securitization investment trust is taxable to the holders of interests in the financial asset securitization investment trust as provided in sections 860H to 860L of the Internal Revenue Code. The income of the holders must be computed under the provisions of this chapter. 

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

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

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

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

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

477A.0124 COUNTY PROGRAM AID.Subd. 5.County transition aid. 
 A county is eligible to receive the transition aid it received in 2007. 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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