<div class="xtend"><a id="pl.1.1"></a><var>1.1</var>CONFERENCE COMMITTEE REPORT ON H. F. No. 247<br />
         		
         <div class="xtend_ce"><a id="pl.1.2"></a><var>1.2</var>A bill for an act<br />
            		
         </div><a id="pl.1.3"></a><var>1.3</var>relating to taxation; providing for voluntary contributions to the state on the <br />
         		<a id="pl.1.4"></a><var>1.4</var>income tax form; proposing coding for new law in Minnesota Statutes, chapter <br />
         		<a id="pl.1.5"></a><var>1.5</var>290.<br />
         		<a id="pl.1.6"></a><var>1.6</var>May 9, 2012<br />
         		<a id="pl.1.7"></a><var>1.7</var>The Honorable Kurt Zellers<br />
         		<a id="pl.1.8"></a><var>1.8</var>Speaker of the House of Representatives<br />
         		<a id="pl.1.9"></a><var>1.9</var>The Honorable Michelle L. Fischbach<br />
         		<a id="pl.1.10"></a><var>1.10</var>President of the Senate<br />
         		<a id="pl.1.11"></a><var>1.11</var>We, the undersigned conferees for H. F. No. 247 report that we have agreed upon the <br />
         		<a id="pl.1.12"></a><var>1.12</var>items in dispute and recommend as follows:<br />
         		<a id="pl.1.13"></a><var>1.13</var>That the Senate recede from its amendments and that H. F. No. 247 be further <br />
         		<a id="pl.1.14"></a><var>1.14</var>amended as follows:<br />
         		<a id="pl.1.15"></a><var>1.15</var>Delete everything after the enacting clause and insert:<br />
         		<br />
         		<a id="bill.1.0.0"></a><div class="xtend_ce"><a id="pl.1.16"></a><var>1.16</var>"<b>ARTICLE 1</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.1.17"></a><var>1.17</var><b>DEPARTMENT POLICY AND TECHNICAL: INCOME AND </b><br />
            		<a id="pl.1.18"></a><var>1.18</var><b>CORPORATE FRANCHISE TAXES</b><br />
            		
         </div><br />
         		<a id="bill.1.1.0"></a><a id="pl.1.19"></a><var>1.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. Minnesota Statutes 2010, section 289A.02, is amended by adding a <br />
         		<a id="pl.1.20"></a><var>1.20</var>subdivision to read:<br />
         		<a id="pl.1.21"></a><var>1.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 9. <b>Field audit.</b> "Field audit" means the physical presence of examiners <br />
         		<a id="pl.1.22"></a><var>1.22</var>in the taxpayer's or taxpayer's representative's office conducting an examination of the <br />
         		<a id="pl.1.23"></a><var>1.23</var>taxpayer with the intention of issuing an assessment or notice of change in tax or which <br />
         		<a id="pl.1.24"></a><var>1.24</var>results in the issuing of an assessment or notice of change in tax. The examination may <br />
         		<a id="pl.1.25"></a><var>1.25</var>include inspecting a taxpayer's place of business, tangible personal property, equipment, <br />
         		<a id="pl.1.26"></a><var>1.26</var>computer systems and facilities, pertinent books, records, papers, vouchers, computer <br />
         		<a id="pl.1.27"></a><var>1.27</var>printouts, accounts, and documents. <br />
         		<a id="pl.1.28"></a><var>1.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.1.2.0"></a><a id="pl.2.1"></a><var>2.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. Minnesota Statutes 2010, section 289A.26, subdivision 3, is amended to read:<br />
         		<a id="pl.2.2"></a><var>2.2</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Short taxable year.</b> (a) A corporation or an entity with a short taxable <br />
         		<a id="pl.2.3"></a><var>2.3</var>year of less than 12 months, but at least four months, must pay estimated tax in equal <br />
         		<a id="pl.2.4"></a><var>2.4</var>installments on or before the 15th day of the third, sixth, ninth, and final month of the <br />
         		<a id="pl.2.5"></a><var>2.5</var>short taxable year, to the extent applicable based on the number of months in the short <br />
         		<a id="pl.2.6"></a><var>2.6</var>taxable year.<br />
         		<a id="pl.2.7"></a><var>2.7</var>(b) A corporation or an entity is not required to make estimated tax payments for a <br />
         		<a id="pl.2.8"></a><var>2.8</var>short taxable year unless its tax liability before the first day of the last month of the taxable <br />
         		<a id="pl.2.9"></a><var>2.9</var>year can reasonably be expected to exceed $500.<br />
         		<a id="pl.2.10"></a><var>2.10</var>(c) No payment is required for a short taxable year of less than four months.<br />
         		<a id="pl.2.11"></a><var>2.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.1.3.0"></a><a id="pl.2.12"></a><var>2.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. Minnesota Statutes 2010, section 289A.26, subdivision 4, is amended to read:<br />
         		<a id="pl.2.13"></a><var>2.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Underpayment of estimated tax.</b> If there is an underpayment of estimated <br />
         		<a id="pl.2.14"></a><var>2.14</var>tax by a corporation or an entity, there shall be added to the tax for the taxable year an <br />
         		<a id="pl.2.15"></a><var>2.15</var>amount determined at the rate in section 
         <statute_ref>270C.40</statute_ref> on the amount of the underpayment, <br />
         		<a id="pl.2.16"></a><var>2.16</var>determined under subdivision 5, for the period of the underpayment determined under <br />
         		<a id="pl.2.17"></a><var>2.17</var>subdivision 6. This subdivision does not apply in the first taxable year that a corporation is <br />
         		<a id="pl.2.18"></a><var>2.18</var>subject to the tax imposed under section 
         <statute_ref>290.02</statute_ref> or an entity is subject to the tax imposed <br />
         		<a id="pl.2.19"></a><var>2.19</var>under section 290.05, subdivision 3.<br />
         		<a id="pl.2.20"></a><var>2.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.1.4.0"></a><a id="pl.2.21"></a><var>2.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 4. Minnesota Statutes 2010, section 289A.26, subdivision 7, is amended to read:<br />
         		<a id="pl.2.22"></a><var>2.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Required installments.</b> (a) Except as otherwise provided in this <br />
         		<a id="pl.2.23"></a><var>2.23</var>subdivision, the amount of a required installment is 25 percent of the required annual <br />
         		<a id="pl.2.24"></a><var>2.24</var>payment.<br />
         		<a id="pl.2.25"></a><var>2.25</var>(b) Except as otherwise provided in this subdivision, the term "required annual <br />
         		<a id="pl.2.26"></a><var>2.26</var>payment" means the lesser of:<br />
         		<a id="pl.2.27"></a><var>2.27</var>(1) 100 percent of the tax shown on the return for the taxable year, or, if no return is <br />
         		<a id="pl.2.28"></a><var>2.28</var>filed, 100 percent of the tax for that year; or<br />
         		<a id="pl.2.29"></a><var>2.29</var>(2) 100 percent of the tax shown on the return of the corporation or entity for the <br />
         		<a id="pl.2.30"></a><var>2.30</var>preceding taxable year provided the return was for a full 12-month period, showed a <br />
         		<a id="pl.2.31"></a><var>2.31</var>liability, and was filed by the corporation or entity.<br />
         		<a id="pl.2.32"></a><var>2.32</var>(c) Except for determining the first required installment for any taxable year, <br />
         		<a id="pl.2.33"></a><var>2.33</var>paragraph (b), clause (2), does not apply in the case of a large corporation. The term <br />
         		<a id="pl.3.1"></a><var>3.1</var>"large corporation" means a corporation or any predecessor corporation that had taxable <br />
         		<a id="pl.3.2"></a><var>3.2</var>net income of $1,000,000 or more for any taxable year during the testing period. The <br />
         		<a id="pl.3.3"></a><var>3.3</var>term "testing period" means the three taxable years immediately preceding the taxable <br />
         		<a id="pl.3.4"></a><var>3.4</var>year involved. A reduction allowed to a large corporation for the first installment that is <br />
         		<a id="pl.3.5"></a><var>3.5</var>allowed by applying paragraph (b), clause (2), must be recaptured by increasing the next <br />
         		<a id="pl.3.6"></a><var>3.6</var>required installment by the amount of the reduction.<br />
         		<a id="pl.3.7"></a><var>3.7</var>(d) In the case of a required installment, if the corporation or entity establishes that <br />
         		<a id="pl.3.8"></a><var>3.8</var>the annualized income installment is less than the amount determined in paragraph (a), the <br />
         		<a id="pl.3.9"></a><var>3.9</var>amount of the required installment is the annualized income installment and the recapture <br />
         		<a id="pl.3.10"></a><var>3.10</var>of previous quarters' reductions allowed by this paragraph must be recovered by increasing <br />
         		<a id="pl.3.11"></a><var>3.11</var>later required installments to the extent the reductions have not previously been recovered.<br />
         		<a id="pl.3.12"></a><var>3.12</var>(e) The "annualized income installment" is the excess, if any, of:<br />
         		<a id="pl.3.13"></a><var>3.13</var>(1) an amount equal to the applicable percentage of the tax for the taxable year <br />
         		<a id="pl.3.14"></a><var>3.14</var>computed by placing on an annualized basis the taxable income:<br />
         		<a id="pl.3.15"></a><var>3.15</var>(i) for the first two months of the taxable year, in the case of the first required <br />
         		<a id="pl.3.16"></a><var>3.16</var>installment;<br />
         		<a id="pl.3.17"></a><var>3.17</var>(ii) for the first two months or for the first five months of the taxable year, in the <br />
         		<a id="pl.3.18"></a><var>3.18</var>case of the second required installment;<br />
         		<a id="pl.3.19"></a><var>3.19</var>(iii) for the first six months or for the first eight months of the taxable year, in the <br />
         		<a id="pl.3.20"></a><var>3.20</var>case of the third required installment; and<br />
         		<a id="pl.3.21"></a><var>3.21</var>(iv) for the first nine months or for the first 11 months of the taxable year, in the <br />
         		<a id="pl.3.22"></a><var>3.22</var>case of the fourth required installment, over<br />
         		<a id="pl.3.23"></a><var>3.23</var>(2) the aggregate amount of any prior required installments for the taxable year.<br />
         		<a id="pl.3.24"></a><var>3.24</var>(3) For the purpose of this paragraph, the annualized income shall be computed <br />
         		<a id="pl.3.25"></a><var>3.25</var>by placing on an annualized basis the taxable income for the year up to the end of the <br />
         		<a id="pl.3.26"></a><var>3.26</var>month preceding the due date for the quarterly payment multiplied by 12 and dividing <br />
         		<a id="pl.3.27"></a><var>3.27</var>the resulting amount by the number of months in the taxable year (2, 5, 6, 8, 9, or 11 as <br />
         		<a id="pl.3.28"></a><var>3.28</var>the case may be) referred to in clause (1).<br />
         		<a id="pl.3.29"></a><var>3.29</var>(4) The "applicable percentage" used in clause (1) is:<br />
         		
         <table>
            <col width="50px"></col>
            <col width="5"></col>
            <col width="5"></col>
            <col width="10"></col>
            <col width="15"></col>
            <col width="7.5"></col>
            <col width="20"></col>
            <tr>
               <td><a id="pl.3.30"></a><var>3.30</var><br />
                  		<a id="pl.3.31"></a><var>3.31</var><br />
                  		<a id="pl.3.32"></a><var>3.32</var><br />
                  		
               </td>
               <td></td>
               <td colspan="2">For the following <br />
                  		required <br />
                  		installments:<br />
                  		
               </td>
               <td></td>
               <td colspan="2">The applicable<br />
                  		percentage is:<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.3.33"></a><var>3.33</var><br />
                  		
               </td>
               <td></td>
               <td></td>
               <td>1st<br />
                  		
               </td>
               <td></td>
               <td align="right">25<br />
                  		
               </td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.3.34"></a><var>3.34</var><br />
                  		
               </td>
               <td></td>
               <td></td>
               <td>2nd<br />
                  		
               </td>
               <td></td>
               <td align="right">50<br />
                  		
               </td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.3.35"></a><var>3.35</var><br />
                  		
               </td>
               <td></td>
               <td></td>
               <td>3rd<br />
                  		
               </td>
               <td></td>
               <td align="right">75<br />
                  		
               </td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.3.36"></a><var>3.36</var><br />
                  		
               </td>
               <td></td>
               <td></td>
               <td valign="top">4th<br />
                  		
               </td>
               <td></td>
               <td align="right">100<br />
                  		
               </td>
               <td></td>
            </tr>
         </table><a id="pl.4.1"></a><var>4.1</var>(f)(1) If this paragraph applies, the amount determined for any installment must <br />
         		<a id="pl.4.2"></a><var>4.2</var>be determined in the following manner:<br />
         		<a id="pl.4.3"></a><var>4.3</var>(i) take the taxable income for the months during the taxable year preceding the <br />
         		<a id="pl.4.4"></a><var>4.4</var>filing month;<br />
         		<a id="pl.4.5"></a><var>4.5</var>(ii) divide that amount by the base period percentage for the months during the <br />
         		<a id="pl.4.6"></a><var>4.6</var>taxable year preceding the filing month;<br />
         		<a id="pl.4.7"></a><var>4.7</var>(iii) determine the tax on the amount determined under item (ii); and<br />
         		<a id="pl.4.8"></a><var>4.8</var>(iv) multiply the tax computed under item (iii) by the base period percentage for the <br />
         		<a id="pl.4.9"></a><var>4.9</var>filing month and the months during the taxable year preceding the filing month.<br />
         		<a id="pl.4.10"></a><var>4.10</var>(2) For purposes of this paragraph:<br />
         		<a id="pl.4.11"></a><var>4.11</var>(i) the "base period percentage" for a period of months is the average percent that the <br />
         		<a id="pl.4.12"></a><var>4.12</var>taxable income for the corresponding months in each of the three preceding taxable years <br />
         		<a id="pl.4.13"></a><var>4.13</var>bears to the taxable income for the three preceding taxable years;<br />
         		<a id="pl.4.14"></a><var>4.14</var>(ii) the term "filing month" means the month in which the installment is required <br />
         		<a id="pl.4.15"></a><var>4.15</var>to be paid;<br />
         		<a id="pl.4.16"></a><var>4.16</var>(iii) this paragraph only applies if the base period percentage for any six consecutive <br />
         		<a id="pl.4.17"></a><var>4.17</var>months of the taxable year equals or exceeds 70 percent; and<br />
         		<a id="pl.4.18"></a><var>4.18</var>(iv) the commissioner may provide by rule for the determination of the base period <br />
         		<a id="pl.4.19"></a><var>4.19</var>percentage in the case of reorganizations, new corporations or entities, and other similar <br />
         		<a id="pl.4.20"></a><var>4.20</var>circumstances.<br />
         		<a id="pl.4.21"></a><var>4.21</var>(3) In the case of a required installment determined under this paragraph, if the <br />
         		<a id="pl.4.22"></a><var>4.22</var>corporation or entity determines that the installment is less than the amount determined in <br />
         		<a id="pl.4.23"></a><var>4.23</var>paragraph (a), the amount of the required installment is the amount determined under this <br />
         		<a id="pl.4.24"></a><var>4.24</var>paragraph and the recapture of previous quarters' reductions allowed by this paragraph <br />
         		<a id="pl.4.25"></a><var>4.25</var>must be recovered by increasing later required installments to the extent the reductions <br />
         		<a id="pl.4.26"></a><var>4.26</var>have not previously been recovered.<br />
         		<a id="pl.4.27"></a><var>4.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.1.5.0"></a><a id="pl.4.28"></a><var>4.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 5. Minnesota Statutes 2010, section 289A.26, subdivision 9, is amended to read:<br />
         		<a id="pl.4.29"></a><var>4.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 9. <b>Failure to file an estimate.</b> In the case of a corporation or an entity <br />
         		<a id="pl.4.30"></a><var>4.30</var>that fails to file an estimated tax for a taxable year when one is required, the period of <br />
         		<a id="pl.4.31"></a><var>4.31</var>the underpayment runs from the four installment dates in subdivision 2 or 3, whichever <br />
         		<a id="pl.4.32"></a><var>4.32</var>applies, to the earlier of the periods in subdivision 6, clauses (1) and (2).<br />
         		<a id="pl.4.33"></a><var>4.33</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.1.6.0"></a><a id="pl.5.1"></a><var>5.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 6. Minnesota Statutes 2010, section 289A.38, subdivision 7, is amended to read:<br />
         		<a id="pl.5.2"></a><var>5.2</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Federal tax changes.</b> If the amount of income, items of tax preference, <br />
         		<a id="pl.5.3"></a><var>5.3</var>deductions, or credits for any year of a taxpayer, or the wages paid by a taxpayer for <br />
         		<a id="pl.5.4"></a><var>5.4</var>any period, as reported to the Internal Revenue Service is changed or corrected by the <br />
         		<a id="pl.5.5"></a><var>5.5</var>commissioner of Internal Revenue or other officer of the United States or other competent <br />
         		<a id="pl.5.6"></a><var>5.6</var>authority, or where a renegotiation of a contract or subcontract with the United States <br />
         		<a id="pl.5.7"></a><var>5.7</var>results in a change in income, items of tax preference, deductions, credits, or withholding <br />
         		<a id="pl.5.8"></a><var>5.8</var>tax, or, in the case of estate tax, where there are adjustments to the taxable estate, the <br />
         		<a id="pl.5.9"></a><var>5.9</var>taxpayer shall report the change or correction or renegotiation results in writing to the <br />
         		<a id="pl.5.10"></a><var>5.10</var>commissioner of revenue. The report must be submitted within 180 days after the <br />
         		<a id="pl.5.11"></a><var>5.11</var>final determination and must be in the form of either an amended Minnesota estate, <br />
         		<a id="pl.5.12"></a><var>5.12</var>withholding tax, corporate franchise tax, or income tax return conceding the accuracy of <br />
         		<a id="pl.5.13"></a><var>5.13</var>the federal determination or a letter detailing how the federal determination is incorrect <br />
         		<a id="pl.5.14"></a><var>5.14</var>or does not change the Minnesota tax. An amended Minnesota income tax return must <br />
         		<a id="pl.5.15"></a><var>5.15</var>be accompanied by an amended property tax refund return, if necessary. A taxpayer <br />
         		<a id="pl.5.16"></a><var>5.16</var>filing an amended federal tax return must also file a copy of the amended return with the <br />
         		<a id="pl.5.17"></a><var>5.17</var>commissioner of revenue within 180 days after filing the amended return.<br />
         		<a id="pl.5.18"></a><var>5.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.1.7.0"></a><a id="pl.5.19"></a><var>5.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 7. Minnesota Statutes 2010, section 289A.38, subdivision 8, is amended to read:<br />
         		<a id="pl.5.20"></a><var>5.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 8. <b>Failure to report change or correction of federal return</b><b> Time </b><br />
         		<a id="pl.5.21"></a><var>5.21</var><b>requirement to report federal tax changes</b><b>.</b> If a taxpayer fails to make a report as <br />
         		<a id="pl.5.22"></a><var>5.22</var>required by subdivision 7, the commissioner may recompute the tax, including a refund, <br />
         		<a id="pl.5.23"></a><var>5.23</var>based on information available to the commissioner. The tax may be recomputed within <br />
         		<a id="pl.5.24"></a><var>5.24</var>six years after the report should have been filed, notwithstanding any period of limitations <br />
         		<a id="pl.5.25"></a><var>5.25</var>to the contrary. A taxpayer must submit the report or file the amended return required by <br />
         		<a id="pl.5.26"></a><var>5.26</var>subdivision 7 within 180 days after the final determination by the commissioner of internal <br />
         		<a id="pl.5.27"></a><var>5.27</var>revenue or other officer of the United States or other competent authority of a change or <br />
         		<a id="pl.5.28"></a><var>5.28</var>correction of the person's federal tax return or the filing of an amended federal tax return.<br />
         		<a id="pl.5.29"></a><var>5.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.1.8.0"></a><a id="pl.5.30"></a><var>5.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 8. Minnesota Statutes 2010, section 289A.38, subdivision 9, is amended to read:<br />
         		<a id="pl.5.31"></a><var>5.31</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 9. <b>Report made of change or correction of federal return</b><b> Limitations </b><br />
         		<a id="pl.5.32"></a><var>5.32</var><b>on time for assessment for federal tax changes</b><b>.</b> (a) If a taxpayer is required to make a <br />
         		<a id="pl.5.33"></a><var>5.33</var>submits the report under or files the amended return as required by subdivision 7, and does <br />
         		<a id="pl.6.1"></a><var>6.1</var>report the change or files a copy of the amended return at any time within six years after <br />
         		<a id="pl.6.2"></a><var>6.2</var>the time period provided by subdivision 8, the commissioner may recompute and reassess <br />
         		<a id="pl.6.3"></a><var>6.3</var>the tax due, including a refund (1) within one year after the report or amended return is <br />
         		<a id="pl.6.4"></a><var>6.4</var>filed with the commissioner, notwithstanding any period of limitations to the contrary, or <br />
         		<a id="pl.6.5"></a><var>6.5</var>(2) within any other applicable period stated in this section, whichever period is longer. <br />
         		<a id="pl.6.6"></a><var>6.6</var>The period provided for the carryback of any amount of loss or credit is also extended as <br />
         		<a id="pl.6.7"></a><var>6.7</var>provided in this subdivision, notwithstanding any law to the contrary.<br />
         		<a id="pl.6.8"></a><var>6.8</var>(b) If a taxpayer fails to submit the report or file the amended return as required by <br />
         		<a id="pl.6.9"></a><var>6.9</var>subdivision 7, the commissioner may recompute the tax, including a refund, based on <br />
         		<a id="pl.6.10"></a><var>6.10</var>information available to the commissioner. The tax may be recomputed within six years <br />
         		<a id="pl.6.11"></a><var>6.11</var>after the time period provided by subdivision 8, notwithstanding any period of limitations <br />
         		<a id="pl.6.12"></a><var>6.12</var>to the contrary.<br />
         		<a id="pl.6.13"></a><var>6.13</var>(c) If the commissioner has completed a field audit of the taxpayer, and, but for this <br />
         		<a id="pl.6.14"></a><var>6.14</var>subdivision, the commissioner's time period to adjust the tax has expired, the additional <br />
         		<a id="pl.6.15"></a><var>6.15</var>tax due or refund is limited to only those changes that are required to be made to the <br />
         		<a id="pl.6.16"></a><var>6.16</var>return which relate to the changes made on the federal return. This subdivision does not <br />
         		<a id="pl.6.17"></a><var>6.17</var>apply to sales and use tax.<br />
         		<a id="pl.6.18"></a><var>6.18</var>For purposes of this subdivision and section 
         <statute_ref>289A.42, subdivision 2</statute_ref>, a "field audit" <br />
         		<a id="pl.6.19"></a><var>6.19</var>is the physical presence of examiners in the taxpayer's or taxpayer's representative's office <br />
         		<a id="pl.6.20"></a><var>6.20</var>conducting an examination of the taxpayer with the intention of issuing an assessment or <br />
         		<a id="pl.6.21"></a><var>6.21</var>notice of change in tax or which results in the issuing of an assessment or notice of change <br />
         		<a id="pl.6.22"></a><var>6.22</var>in tax. The examination may include inspecting a taxpayer's place of business, tangible <br />
         		<a id="pl.6.23"></a><var>6.23</var>personal property, equipment, computer systems and facilities, pertinent books, records, <br />
         		<a id="pl.6.24"></a><var>6.24</var>papers, vouchers, computer printouts, accounts, and documents.<br />
         		<a id="pl.6.25"></a><var>6.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.1.9.0"></a><a id="pl.6.26"></a><var>6.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 9. Minnesota Statutes 2010, section 289A.42, subdivision 2, is amended to read:<br />
         		<a id="pl.6.27"></a><var>6.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Federal extensions.</b> When a taxpayer consents to an extension of time <br />
         		<a id="pl.6.28"></a><var>6.28</var>for the assessment of federal withholding or income taxes, the period in which the <br />
         		<a id="pl.6.29"></a><var>6.29</var>commissioner may recompute the tax is also extended, notwithstanding any period of <br />
         		<a id="pl.6.30"></a><var>6.30</var>limitations to the contrary, as follows:<br />
         		<a id="pl.6.31"></a><var>6.31</var>(1) for the periods provided in section 
         <statute_ref>289A.38, subdivisions 8 and 9</statute_ref>;<br />
         		<a id="pl.6.32"></a><var>6.32</var>(2) for six months following the expiration of the extended federal period of <br />
         		<a id="pl.6.33"></a><var>6.33</var>limitations when no change is made by the federal authority. If no change is made by the <br />
         		<a id="pl.6.34"></a><var>6.34</var>federal authority, and, but for this subdivision, the commissioner's time period to adjust <br />
         		<a id="pl.6.35"></a><var>6.35</var>the tax has expired, and if the commissioner has completed a field audit of the taxpayer, no <br />
         		<a id="pl.7.1"></a><var>7.1</var>additional changes resulting in additional tax due or a refund may be made. For purposes <br />
         		<a id="pl.7.2"></a><var>7.2</var>of this subdivision, "field audit" has the meaning given it in section 
         <statute_ref>289A.38, subdivision 9</statute_ref>.<br />
         		<a id="pl.7.3"></a><var>7.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.1.10.0"></a><a id="pl.7.4"></a><var>7.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 10. Minnesota Statutes 2010, section 289A.60, subdivision 24, is amended to read:<br />
         		<a id="pl.7.5"></a><var>7.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 24. <b>Penalty for failure to notify of federal change.</b> If a person fails to <br />
         		<a id="pl.7.6"></a><var>7.6</var>report to the commissioner a change or correction of the person's federal return in the <br />
         		<a id="pl.7.7"></a><var>7.7</var>manner prescribed by section 289A.38, subdivision 7, and within the 180-day time period <br />
         		<a id="pl.7.8"></a><var>7.8</var>prescribed in section 
         <statute_ref>289A.38, subdivision 7 8</statute_ref>, there must be added to the tax an amount <br />
         		<a id="pl.7.9"></a><var>7.9</var>equal to ten percent of the amount of any underpayment of Minnesota tax attributable to <br />
         		<a id="pl.7.10"></a><var>7.10</var>the federal change.<br />
         		<a id="pl.7.11"></a><var>7.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.1.11.0"></a><a id="pl.7.12"></a><var>7.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 11. Minnesota Statutes 2010, section 290.01, subdivision 6b, is amended to read:<br />
         		<a id="pl.7.13"></a><var>7.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6b. <b>Foreign operating corporation.</b> The term "foreign operating <br />
         		<a id="pl.7.14"></a><var>7.14</var>corporation," when applied to a corporation, means a domestic corporation with the <br />
         		<a id="pl.7.15"></a><var>7.15</var>following characteristics:<br />
         		<a id="pl.7.16"></a><var>7.16</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) it is part of a unitary business at least one member of which is taxable in this state;<br />
         		<a id="pl.7.17"></a><var>7.17</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) it is not a foreign sales corporation under section 922 of the Internal Revenue <br />
         		<a id="pl.7.18"></a><var>7.18</var>Code, as amended through December 31, 1999, for the taxable year;<br />
         		<a id="pl.7.19"></a><var>7.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) it is not an interest charge domestic international sales corporation under sections <br />
         		<a id="pl.7.20"></a><var>7.20</var>992, 993, 994, and 995 of the Internal Revenue Code;<br />
         		<a id="pl.7.21"></a><var>7.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) either (i) it has in effect a valid election under section 936 of the Internal Revenue <br />
         		<a id="pl.7.22"></a><var>7.22</var>Code; or (ii) at least 80 percent of the gross income from all sources of the corporation in <br />
         		<a id="pl.7.23"></a><var>7.23</var>the tax year is active foreign business income; and<br />
         		<a id="pl.7.24"></a><var>7.24</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) for purposes of this subdivision, active foreign business income means gross <br />
         		<a id="pl.7.25"></a><var>7.25</var>income that is (i) derived from sources without the United States, as defined in subtitle A, <br />
         		<a id="pl.7.26"></a><var>7.26</var>chapter 1, subchapter N, part 1, of the Internal Revenue Code; and (ii) attributable to the <br />
         		<a id="pl.7.27"></a><var>7.27</var>active conduct of a trade or business in a foreign country.<br />
         		<a id="pl.7.28"></a><var>7.28</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.7.29"></a><var>7.29</var>December 31, 2011.<br />
         		<br />
         		<a id="bill.1.12.0"></a><a id="pl.7.30"></a><var>7.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 12. Minnesota Statutes 2011 Supplement, section 290.01, subdivision 19b, <br />
         		<a id="pl.7.31"></a><var>7.31</var>is amended to read:<br />
         		<a id="pl.8.1"></a><var>8.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 19b. <b>Subtractions from federal taxable income.</b> For individuals, estates, <br />
         		<a id="pl.8.2"></a><var>8.2</var>and trusts, there shall be subtracted from federal taxable income:<br />
         		<a id="pl.8.3"></a><var>8.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) net interest income on obligations of any authority, commission, or <br />
         		<a id="pl.8.4"></a><var>8.4</var>instrumentality of the United States to the extent includable in taxable income for federal <br />
         		<a id="pl.8.5"></a><var>8.5</var>income tax purposes but exempt from state income tax under the laws of the United States;<br />
         		<a id="pl.8.6"></a><var>8.6</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) if included in federal taxable income, the amount of any overpayment of income <br />
         		<a id="pl.8.7"></a><var>8.7</var>tax to Minnesota or to any other state, for any previous taxable year, whether the amount <br />
         		<a id="pl.8.8"></a><var>8.8</var>is received as a refund or as a credit to another taxable year's income tax liability;<br />
         		<a id="pl.8.9"></a><var>8.9</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) the amount paid to others, less the amount used to claim the credit allowed under <br />
         		<a id="pl.8.10"></a><var>8.10</var>section 
         <statute_ref>290.0674</statute_ref>, not to exceed $1,625 for each qualifying child in grades kindergarten <br />
         		<a id="pl.8.11"></a><var>8.11</var>to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and <br />
         		<a id="pl.8.12"></a><var>8.12</var>transportation of each qualifying child in attending an elementary or secondary school <br />
         		<a id="pl.8.13"></a><var>8.13</var>situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a <br />
         		<a id="pl.8.14"></a><var>8.14</var>resident of this state may legally fulfill the state's compulsory attendance laws, which <br />
         		<a id="pl.8.15"></a><var>8.15</var>is not operated for profit, and which adheres to the provisions of the Civil Rights Act <br />
         		<a id="pl.8.16"></a><var>8.16</var>of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or <br />
         		<a id="pl.8.17"></a><var>8.17</var>tuition as defined in section 
         <statute_ref>290.0674, subdivision 1</statute_ref>, clause (1). As used in this clause, <br />
         		<a id="pl.8.18"></a><var>8.18</var>"textbooks" includes books and other instructional materials and equipment purchased <br />
         		<a id="pl.8.19"></a><var>8.19</var>or leased for use in elementary and secondary schools in teaching only those subjects <br />
         		<a id="pl.8.20"></a><var>8.20</var>legally and commonly taught in public elementary and secondary schools in this state. <br />
         		<a id="pl.8.21"></a><var>8.21</var>Equipment expenses qualifying for deduction includes expenses as defined and limited in <br />
         		<a id="pl.8.22"></a><var>8.22</var>section 
         <statute_ref>290.0674, subdivision 1</statute_ref>, clause (3). "Textbooks" does not include instructional <br />
         		<a id="pl.8.23"></a><var>8.23</var>books and materials used in the teaching of religious tenets, doctrines, or worship, the <br />
         		<a id="pl.8.24"></a><var>8.24</var>purpose of which is to instill such tenets, doctrines, or worship, nor does it include books <br />
         		<a id="pl.8.25"></a><var>8.25</var>or materials for, or transportation to, extracurricular activities including sporting events, <br />
         		<a id="pl.8.26"></a><var>8.26</var>musical or dramatic events, speech activities, driver's education, or similar programs. No <br />
         		<a id="pl.8.27"></a><var>8.27</var>deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or <br />
         		<a id="pl.8.28"></a><var>8.28</var>the qualifying child's vehicle to provide such transportation for a qualifying child. For <br />
         		<a id="pl.8.29"></a><var>8.29</var>purposes of the subtraction provided by this clause, "qualifying child" has the meaning <br />
         		<a id="pl.8.30"></a><var>8.30</var>given in section 32(c)(3) of the Internal Revenue Code;<br />
         		<a id="pl.8.31"></a><var>8.31</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) income as provided under section 
         <statute_ref>290.0802</statute_ref>;<br />
         		<a id="pl.8.32"></a><var>8.32</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) to the extent included in federal adjusted gross income, income realized on <br />
         		<a id="pl.8.33"></a><var>8.33</var>disposition of property exempt from tax under section 
         <statute_ref>290.491</statute_ref>;<br />
         		<a id="pl.8.34"></a><var>8.34</var>&nbsp;&nbsp;&nbsp;&nbsp;(6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E) <br />
         		<a id="pl.8.35"></a><var>8.35</var>of the Internal Revenue Code in determining federal taxable income by an individual <br />
         		<a id="pl.8.36"></a><var>8.36</var>who does not itemize deductions for federal income tax purposes for the taxable year, an <br />
         		<a id="pl.9.1"></a><var>9.1</var>amount equal to 50 percent of the excess of charitable contributions over $500 allowable <br />
         		<a id="pl.9.2"></a><var>9.2</var>as a deduction for the taxable year under section 170(a) of the Internal Revenue Code, <br />
         		<a id="pl.9.3"></a><var>9.3</var>under the provisions of Public Law 109-1 and Public Law 111-126;<br />
         		<a id="pl.9.4"></a><var>9.4</var>&nbsp;&nbsp;&nbsp;&nbsp;(7) for individuals who are allowed a federal foreign tax credit for taxes that do not <br />
         		<a id="pl.9.5"></a><var>9.5</var>qualify for a credit under section 
         <statute_ref>290.06, subdivision 22</statute_ref>, an amount equal to the carryover <br />
         		<a id="pl.9.6"></a><var>9.6</var>of subnational foreign taxes for the taxable year, but not to exceed the total subnational <br />
         		<a id="pl.9.7"></a><var>9.7</var>foreign taxes reported in claiming the foreign tax credit. For purposes of this clause, <br />
         		<a id="pl.9.8"></a><var>9.8</var>"federal foreign tax credit" means the credit allowed under section 27 of the Internal <br />
         		<a id="pl.9.9"></a><var>9.9</var>Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed <br />
         		<a id="pl.9.10"></a><var>9.10</var>under section 904(c) of the Internal Revenue Code minus national level foreign taxes to <br />
         		<a id="pl.9.11"></a><var>9.11</var>the extent they exceed the federal foreign tax credit;<br />
         		<a id="pl.9.12"></a><var>9.12</var>&nbsp;&nbsp;&nbsp;&nbsp;(8) in each of the five tax years immediately following the tax year in which an <br />
         		<a id="pl.9.13"></a><var>9.13</var>addition is required under subdivision 19a, clause (7), or 19c, clause (15) (14), in the case <br />
         		<a id="pl.9.14"></a><var>9.14</var>of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth <br />
         		<a id="pl.9.15"></a><var>9.15</var>of the delayed depreciation. For purposes of this clause, "delayed depreciation" means <br />
         		<a id="pl.9.16"></a><var>9.16</var>the amount of the addition made by the taxpayer under subdivision 19a, clause (7), or <br />
         		<a id="pl.9.17"></a><var>9.17</var>subdivision 19c, clause (15) (14), in the case of a shareholder of an S corporation, minus <br />
         		<a id="pl.9.18"></a><var>9.18</var>the positive value of any net operating loss under section 172 of the Internal Revenue <br />
         		<a id="pl.9.19"></a><var>9.19</var>Code generated for the tax year of the addition. The resulting delayed depreciation <br />
         		<a id="pl.9.20"></a><var>9.20</var>cannot be less than zero;<br />
         		<a id="pl.9.21"></a><var>9.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(9) job opportunity building zone income as provided under section 
         <statute_ref>469.316</statute_ref>;<br />
         		<a id="pl.9.22"></a><var>9.22</var>&nbsp;&nbsp;&nbsp;&nbsp;(10) to the extent included in federal taxable income, the amount of compensation <br />
         		<a id="pl.9.23"></a><var>9.23</var>paid to members of the Minnesota National Guard or other reserve components of the <br />
         		<a id="pl.9.24"></a><var>9.24</var>United States military for active service, excluding compensation for services performed <br />
         		<a id="pl.9.25"></a><var>9.25</var>under the Active Guard Reserve (AGR) program. For purposes of this clause, "active <br />
         		<a id="pl.9.26"></a><var>9.26</var>service" means (i) state active service as defined in section 
         <statute_ref>190.05, subdivision 5a</statute_ref>, clause <br />
         		<a id="pl.9.27"></a><var>9.27</var>(1); or (ii) federally funded state active service as defined in section 
         <statute_ref>190.05, subdivision <br />
            		<a id="pl.9.28"></a><var>9.28</var>5b
         </statute_ref>, but "active service" excludes service performed in accordance with section 
         <statute_ref>190.08, <br />
            		<a id="pl.9.29"></a><var>9.29</var>subdivision 3
         </statute_ref>;<br />
         		<a id="pl.9.30"></a><var>9.30</var>&nbsp;&nbsp;&nbsp;&nbsp;(11) to the extent included in federal taxable income, the amount of compensation <br />
         		<a id="pl.9.31"></a><var>9.31</var>paid to Minnesota residents who are members of the armed forces of the United States <br />
         		<a id="pl.9.32"></a><var>9.32</var>or United Nations for active duty performed under United States Code, title 10; or the <br />
         		<a id="pl.9.33"></a><var>9.33</var>authority of the United Nations;<br />
         		<a id="pl.9.34"></a><var>9.34</var>&nbsp;&nbsp;&nbsp;&nbsp;(12) an amount, not to exceed $10,000, equal to qualified expenses related to a <br />
         		<a id="pl.9.35"></a><var>9.35</var>qualified donor's donation, while living, of one or more of the qualified donor's organs <br />
         		<a id="pl.9.36"></a><var>9.36</var>to another person for human organ transplantation. For purposes of this clause, "organ" <br />
         		<a id="pl.10.1"></a><var>10.1</var>means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow; <br />
         		<a id="pl.10.2"></a><var>10.2</var>"human organ transplantation" means the medical procedure by which transfer of a human <br />
         		<a id="pl.10.3"></a><var>10.3</var>organ is made from the body of one person to the body of another person; "qualified <br />
         		<a id="pl.10.4"></a><var>10.4</var>expenses" means unreimbursed expenses for both the individual and the qualified donor <br />
         		<a id="pl.10.5"></a><var>10.5</var>for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses <br />
         		<a id="pl.10.6"></a><var>10.6</var>may be subtracted under this clause only once; and "qualified donor" means the individual <br />
         		<a id="pl.10.7"></a><var>10.7</var>or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An <br />
         		<a id="pl.10.8"></a><var>10.8</var>individual may claim the subtraction in this clause for each instance of organ donation for <br />
         		<a id="pl.10.9"></a><var>10.9</var>transplantation during the taxable year in which the qualified expenses occur;<br />
         		<a id="pl.10.10"></a><var>10.10</var>&nbsp;&nbsp;&nbsp;&nbsp;(13) in each of the five tax years immediately following the tax year in which an <br />
         		<a id="pl.10.11"></a><var>10.11</var>addition is required under subdivision 19a, clause (8), or 19c, clause (16) (15), in the case <br />
         		<a id="pl.10.12"></a><var>10.12</var>of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth <br />
         		<a id="pl.10.13"></a><var>10.13</var>of the addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause <br />
         		<a id="pl.10.14"></a><var>10.14</var>(16) (15), in the case of a shareholder of a corporation that is an S corporation, minus the <br />
         		<a id="pl.10.15"></a><var>10.15</var>positive value of any net operating loss under section 172 of the Internal Revenue Code <br />
         		<a id="pl.10.16"></a><var>10.16</var>generated for the tax year of the addition. If the net operating loss exceeds the addition for <br />
         		<a id="pl.10.17"></a><var>10.17</var>the tax year, a subtraction is not allowed under this clause;<br />
         		<a id="pl.10.18"></a><var>10.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(14) to the extent included in the federal taxable income of a nonresident of <br />
         		<a id="pl.10.19"></a><var>10.19</var>Minnesota, compensation paid to a service member as defined in United States Code, title <br />
         		<a id="pl.10.20"></a><var>10.20</var>10, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief <br />
         		<a id="pl.10.21"></a><var>10.21</var>Act, Public Law 108-189, section 101(2);<br />
         		<a id="pl.10.22"></a><var>10.22</var>&nbsp;&nbsp;&nbsp;&nbsp;(15) international economic development zone income as provided under section <br />
         		
         <statute_ref><a id="pl.10.23"></a><var>10.23</var>469.325
         </statute_ref>;<br />
         		<a id="pl.10.24"></a><var>10.24</var>&nbsp;&nbsp;&nbsp;&nbsp;(16) to the extent included in federal taxable income, the amount of national service <br />
         		<a id="pl.10.25"></a><var>10.25</var>educational awards received from the National Service Trust under United States Code, <br />
         		<a id="pl.10.26"></a><var>10.26</var>title 42, sections 12601 to 12604, for service in an approved Americorps National Service <br />
         		<a id="pl.10.27"></a><var>10.27</var>program;<br />
         		<a id="pl.10.28"></a><var>10.28</var>(17) to the extent included in federal taxable income, discharge of indebtedness <br />
         		<a id="pl.10.29"></a><var>10.29</var>income resulting from reacquisition of business indebtedness included in federal taxable <br />
         		<a id="pl.10.30"></a><var>10.30</var>income under section 108(i) of the Internal Revenue Code. This subtraction applies only <br />
         		<a id="pl.10.31"></a><var>10.31</var>to the extent that the income was included in net income in a prior year as a result of the <br />
         		<a id="pl.10.32"></a><var>10.32</var>addition under section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clause (16); and<br />
         		<a id="pl.10.33"></a><var>10.33</var>(18) the amount of the net operating loss allowed under section 
         <statute_ref>290.095, subdivision <br />
            		
         </statute_ref><a id="pl.10.34"></a><var>10.34</var>11, paragraph (c).<br />
         		<a id="pl.10.35"></a><var>10.35</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.10.36"></a><var>10.36</var>December 31, 2011.<br />
         		<br />
         		<a id="bill.1.13.0"></a><a id="pl.11.1"></a><var>11.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 13. Minnesota Statutes 2011 Supplement, section 290.01, subdivision 19c, <br />
         		<a id="pl.11.2"></a><var>11.2</var>is amended to read:<br />
         		<a id="pl.11.3"></a><var>11.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 19c. <b>Corporations; additions to federal taxable income.</b> For corporations, <br />
         		<a id="pl.11.4"></a><var>11.4</var>there shall be added to federal taxable income:<br />
         		<a id="pl.11.5"></a><var>11.5</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) the amount of any deduction taken for federal income tax purposes for income, <br />
         		<a id="pl.11.6"></a><var>11.6</var>excise, or franchise taxes based on net income or related minimum taxes, including but not <br />
         		<a id="pl.11.7"></a><var>11.7</var>limited to the tax imposed under section 
         <statute_ref>290.0922</statute_ref>, paid by the corporation to Minnesota, <br />
         		<a id="pl.11.8"></a><var>11.8</var>another state, a political subdivision of another state, the District of Columbia, or any <br />
         		<a id="pl.11.9"></a><var>11.9</var>foreign country or possession of the United States;<br />
         		<a id="pl.11.10"></a><var>11.10</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) interest not subject to federal tax upon obligations of: the United States, its <br />
         		<a id="pl.11.11"></a><var>11.11</var>possessions, its agencies, or its instrumentalities; the state of Minnesota or any other <br />
         		<a id="pl.11.12"></a><var>11.12</var>state, any of its political or governmental subdivisions, any of its municipalities, or any <br />
         		<a id="pl.11.13"></a><var>11.13</var>of its governmental agencies or instrumentalities; the District of Columbia; or Indian <br />
         		<a id="pl.11.14"></a><var>11.14</var>tribal governments;<br />
         		<a id="pl.11.15"></a><var>11.15</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal <br />
         		<a id="pl.11.16"></a><var>11.16</var>Revenue Code;<br />
         		<a id="pl.11.17"></a><var>11.17</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) the amount of any net operating loss deduction taken for federal income tax <br />
         		<a id="pl.11.18"></a><var>11.18</var>purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss <br />
         		<a id="pl.11.19"></a><var>11.19</var>deduction under section 810 of the Internal Revenue Code;<br />
         		<a id="pl.11.20"></a><var>11.20</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) the amount of any special deductions taken for federal income tax purposes <br />
         		<a id="pl.11.21"></a><var>11.21</var>under sections 241 to 247 and 965 of the Internal Revenue Code;<br />
         		<a id="pl.11.22"></a><var>11.22</var>&nbsp;&nbsp;&nbsp;&nbsp;(6) losses from the business of mining, as defined in section 
         <statute_ref>290.05, subdivision 1</statute_ref>, <br />
         		<a id="pl.11.23"></a><var>11.23</var>clause (a), that are not subject to Minnesota income tax;<br />
         		<a id="pl.11.24"></a><var>11.24</var>&nbsp;&nbsp;&nbsp;&nbsp;(7) the amount of any capital losses deducted for federal income tax purposes under <br />
         		<a id="pl.11.25"></a><var>11.25</var>sections 1211 and 1212 of the Internal Revenue Code;<br />
         		<a id="pl.11.26"></a><var>11.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(8) the exempt foreign trade income of a foreign sales corporation under sections <br />
         		<a id="pl.11.27"></a><var>11.27</var>921(a) and 291 of the Internal Revenue Code;<br />
         		<a id="pl.11.28"></a><var>11.28</var>&nbsp;&nbsp;&nbsp;&nbsp;(9) the amount of percentage depletion deducted under sections 611 through 614 and <br />
         		<a id="pl.11.29"></a><var>11.29</var>291 of the Internal Revenue Code;<br />
         		<a id="pl.11.30"></a><var>11.30</var>&nbsp;&nbsp;&nbsp;&nbsp;(10) for certified pollution control facilities placed in service in a taxable year <br />
         		<a id="pl.11.31"></a><var>11.31</var>beginning before December 31, 1986, and for which amortization deductions were elected <br />
         		<a id="pl.11.32"></a><var>11.32</var>under section 169 of the Internal Revenue Code of 1954, as amended through December <br />
         		<a id="pl.11.33"></a><var>11.33</var>31, 1985, the amount of the amortization deduction allowed in computing federal taxable <br />
         		<a id="pl.11.34"></a><var>11.34</var>income for those facilities;<br />
         		<a id="pl.11.35"></a><var>11.35</var>&nbsp;&nbsp;&nbsp;&nbsp;(11) the amount of any deemed dividend from a foreign operating corporation <br />
         		<a id="pl.11.36"></a><var>11.36</var>determined pursuant to section 
         <statute_ref>290.17, subdivision 4</statute_ref>, paragraph (g). The deemed dividend <br />
         		<a id="pl.12.1"></a><var>12.1</var>shall be reduced by the amount of the addition to income required by clauses (19), (20), <br />
         		<a id="pl.12.2"></a><var>12.2</var>(21), and (22), and (23);<br />
         		<a id="pl.12.3"></a><var>12.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(12) the amount of a partner's pro rata share of net income which does not flow <br />
         		<a id="pl.12.4"></a><var>12.4</var>through to the partner because the partnership elected to pay the tax on the income under <br />
         		<a id="pl.12.5"></a><var>12.5</var>section 6242(a)(2) of the Internal Revenue Code;<br />
         		<a id="pl.12.6"></a><var>12.6</var>&nbsp;&nbsp;&nbsp;&nbsp;(13) the amount of net income excluded under section 114 of the Internal Revenue <br />
         		<a id="pl.12.7"></a><var>12.7</var>Code;<br />
         		<a id="pl.12.8"></a><var>12.8</var>&nbsp;&nbsp;&nbsp;&nbsp;(14) (13) any increase in subpart F income, as defined in section 952(a) of the <br />
         		<a id="pl.12.9"></a><var>12.9</var>Internal Revenue Code, for the taxable year when subpart F income is calculated without <br />
         		<a id="pl.12.10"></a><var>12.10</var>regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;<br />
         		<a id="pl.12.11"></a><var>12.11</var>&nbsp;&nbsp;&nbsp;&nbsp;(15) (14) 80 percent of the depreciation deduction allowed under section <br />
         		<a id="pl.12.12"></a><var>12.12</var>168(k)(1)(A) and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if <br />
         		<a id="pl.12.13"></a><var>12.13</var>the taxpayer has an activity that in the taxable year generates a deduction for depreciation <br />
         		<a id="pl.12.14"></a><var>12.14</var>under section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable <br />
         		<a id="pl.12.15"></a><var>12.15</var>year that the taxpayer is not allowed to claim for the taxable year, "the depreciation <br />
         		<a id="pl.12.16"></a><var>12.16</var>allowed under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess <br />
         		<a id="pl.12.17"></a><var>12.17</var>of the depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A) <br />
         		<a id="pl.12.18"></a><var>12.18</var>over the amount of the loss from the activity that is not allowed in the taxable year. In <br />
         		<a id="pl.12.19"></a><var>12.19</var>succeeding taxable years when the losses not allowed in the taxable year are allowed, the <br />
         		<a id="pl.12.20"></a><var>12.20</var>depreciation under section 168(k)(1)(A) and (k)(4)(A) is allowed;<br />
         		<a id="pl.12.21"></a><var>12.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(16) (15) 80 percent of the amount by which the deduction allowed by section 179 of <br />
         		<a id="pl.12.22"></a><var>12.22</var>the Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal <br />
         		<a id="pl.12.23"></a><var>12.23</var>Revenue Code of 1986, as amended through December 31, 2003;<br />
         		<a id="pl.12.24"></a><var>12.24</var>&nbsp;&nbsp;&nbsp;&nbsp;(17) (16) to the extent deducted in computing federal taxable income, the amount of <br />
         		<a id="pl.12.25"></a><var>12.25</var>the deduction allowable under section 199 of the Internal Revenue Code;<br />
         		<a id="pl.12.26"></a><var>12.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(18) (17) for taxable years beginning before January 1, 2013, the exclusion allowed <br />
         		<a id="pl.12.27"></a><var>12.27</var>under section 139A of the Internal Revenue Code for federal subsidies for prescription <br />
         		<a id="pl.12.28"></a><var>12.28</var>drug plans;<br />
         		<a id="pl.12.29"></a><var>12.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(19) (18) the amount of expenses disallowed under section 
         <statute_ref>290.10, subdivision 2</statute_ref>;<br />
         		<a id="pl.12.30"></a><var>12.30</var>&nbsp;&nbsp;&nbsp;&nbsp;(20) (19) an amount equal to the interest and intangible expenses, losses, and <br />
         		<a id="pl.12.31"></a><var>12.31</var>costs paid, accrued, or incurred by any member of the taxpayer's unitary group to or for <br />
         		<a id="pl.12.32"></a><var>12.32</var>the benefit of a corporation that is a member of the taxpayer's unitary business group <br />
         		<a id="pl.12.33"></a><var>12.33</var>that qualifies as a foreign operating corporation. For purposes of this clause, intangible <br />
         		<a id="pl.12.34"></a><var>12.34</var>expenses and costs include:<br />
         		<a id="pl.13.1"></a><var>13.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) expenses, losses, and costs for, or related to, the direct or indirect acquisition, <br />
         		<a id="pl.13.2"></a><var>13.2</var>use, maintenance or management, ownership, sale, exchange, or any other disposition of <br />
         		<a id="pl.13.3"></a><var>13.3</var>intangible property;<br />
         		<a id="pl.13.4"></a><var>13.4</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) losses incurred, directly or indirectly, from factoring transactions or discounting <br />
         		<a id="pl.13.5"></a><var>13.5</var>transactions;<br />
         		<a id="pl.13.6"></a><var>13.6</var>&nbsp;&nbsp;&nbsp;&nbsp;(iii) royalty, patent, technical, and copyright fees;<br />
         		<a id="pl.13.7"></a><var>13.7</var>&nbsp;&nbsp;&nbsp;&nbsp;(iv) licensing fees; and<br />
         		<a id="pl.13.8"></a><var>13.8</var>&nbsp;&nbsp;&nbsp;&nbsp;(v) other similar expenses and costs.<br />
         		<a id="pl.13.9"></a><var>13.9</var>For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent <br />
         		<a id="pl.13.10"></a><var>13.10</var>applications, trade names, trademarks, service marks, copyrights, mask works, trade <br />
         		<a id="pl.13.11"></a><var>13.11</var>secrets, and similar types of intangible assets.<br />
         		<a id="pl.13.12"></a><var>13.12</var>This clause does not apply to any item of interest or intangible expenses or costs paid, <br />
         		<a id="pl.13.13"></a><var>13.13</var>accrued, or incurred, directly or indirectly, to a foreign operating corporation with respect <br />
         		<a id="pl.13.14"></a><var>13.14</var>to such item of income to the extent that the income to the foreign operating corporation <br />
         		<a id="pl.13.15"></a><var>13.15</var>is income from sources without the United States as defined in subtitle A, chapter 1, <br />
         		<a id="pl.13.16"></a><var>13.16</var>subchapter N, part 1, of the Internal Revenue Code;<br />
         		<a id="pl.13.17"></a><var>13.17</var>&nbsp;&nbsp;&nbsp;&nbsp;(21) (20) except as already included in the taxpayer's taxable income pursuant to <br />
         		<a id="pl.13.18"></a><var>13.18</var>clause (20) (19), any interest income and income generated from intangible property <br />
         		<a id="pl.13.19"></a><var>13.19</var>received or accrued by a foreign operating corporation that is a member of the taxpayer's <br />
         		<a id="pl.13.20"></a><var>13.20</var>unitary group. For purposes of this clause, income generated from intangible property <br />
         		<a id="pl.13.21"></a><var>13.21</var>includes:<br />
         		<a id="pl.13.22"></a><var>13.22</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) income related to the direct or indirect acquisition, use, maintenance or <br />
         		<a id="pl.13.23"></a><var>13.23</var>management, ownership, sale, exchange, or any other disposition of intangible property;<br />
         		<a id="pl.13.24"></a><var>13.24</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) income from factoring transactions or discounting transactions;<br />
         		<a id="pl.13.25"></a><var>13.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(iii) royalty, patent, technical, and copyright fees;<br />
         		<a id="pl.13.26"></a><var>13.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(iv) licensing fees; and<br />
         		<a id="pl.13.27"></a><var>13.27</var>&nbsp;&nbsp;&nbsp;&nbsp;(v) other similar income.<br />
         		<a id="pl.13.28"></a><var>13.28</var>For purposes of this clause, "intangible property" includes stocks, bonds, patents, patent <br />
         		<a id="pl.13.29"></a><var>13.29</var>applications, trade names, trademarks, service marks, copyrights, mask works, trade <br />
         		<a id="pl.13.30"></a><var>13.30</var>secrets, and similar types of intangible assets.<br />
         		<a id="pl.13.31"></a><var>13.31</var>This clause does not apply to any item of interest or intangible income received or accrued <br />
         		<a id="pl.13.32"></a><var>13.32</var>by a foreign operating corporation with respect to such item of income to the extent that <br />
         		<a id="pl.13.33"></a><var>13.33</var>the income is income from sources without the United States as defined in subtitle A, <br />
         		<a id="pl.13.34"></a><var>13.34</var>chapter 1, subchapter N, part 1, of the Internal Revenue Code;<br />
         		<a id="pl.13.35"></a><var>13.35</var>&nbsp;&nbsp;&nbsp;&nbsp;(22) (21) the dividends attributable to the income of a foreign operating corporation <br />
         		<a id="pl.13.36"></a><var>13.36</var>that is a member of the taxpayer's unitary group in an amount that is equal to the dividends <br />
         		<a id="pl.14.1"></a><var>14.1</var>paid deduction of a real estate investment trust under section 561(a) of the Internal <br />
         		<a id="pl.14.2"></a><var>14.2</var>Revenue Code for amounts paid or accrued by the real estate investment trust to the <br />
         		<a id="pl.14.3"></a><var>14.3</var>foreign operating corporation;<br />
         		<a id="pl.14.4"></a><var>14.4</var>&nbsp;&nbsp;&nbsp;&nbsp;(23) (22) the income of a foreign operating corporation that is a member of the <br />
         		<a id="pl.14.5"></a><var>14.5</var>taxpayer's unitary group in an amount that is equal to gains derived from the sale of real or <br />
         		<a id="pl.14.6"></a><var>14.6</var>personal property located in the United States;<br />
         		<a id="pl.14.7"></a><var>14.7</var>&nbsp;&nbsp;&nbsp;&nbsp;(24) (23) for taxable years beginning before January 1, 2010, the additional amount <br />
         		<a id="pl.14.8"></a><var>14.8</var>allowed as a deduction for donation of computer technology and equipment under section <br />
         		<a id="pl.14.9"></a><var>14.9</var>170(e)(6) of the Internal Revenue Code, to the extent deducted from taxable income; and<br />
         		<a id="pl.14.10"></a><var>14.10</var>(25) (24) discharge of indebtedness income resulting from reacquisition of business <br />
         		<a id="pl.14.11"></a><var>14.11</var>indebtedness and deferred under section 108(i) of the Internal Revenue Code.<br />
         		<a id="pl.14.12"></a><var>14.12</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.14.13"></a><var>14.13</var>December 31, 2011.<br />
         		<br />
         		<a id="bill.1.14.0"></a><a id="pl.14.14"></a><var>14.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 14. Minnesota Statutes 2010, section 290.01, subdivision 19d, is amended to read:<br />
         		<a id="pl.14.15"></a><var>14.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 19d. <b>Corporations; modifications decreasing federal taxable income.</b> For <br />
         		<a id="pl.14.16"></a><var>14.16</var>corporations, there shall be subtracted from federal taxable income after the increases <br />
         		<a id="pl.14.17"></a><var>14.17</var>provided in subdivision 19c:<br />
         		<a id="pl.14.18"></a><var>14.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) the amount of foreign dividend gross-up added to gross income for federal <br />
         		<a id="pl.14.19"></a><var>14.19</var>income tax purposes under section 78 of the Internal Revenue Code;<br />
         		<a id="pl.14.20"></a><var>14.20</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) the amount of salary expense not allowed for federal income tax purposes due to <br />
         		<a id="pl.14.21"></a><var>14.21</var>claiming the work opportunity credit under section 51 of the Internal Revenue Code;<br />
         		<a id="pl.14.22"></a><var>14.22</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) any dividend (not including any distribution in liquidation) paid within the <br />
         		<a id="pl.14.23"></a><var>14.23</var>taxable year by a national or state bank to the United States, or to any instrumentality of <br />
         		<a id="pl.14.24"></a><var>14.24</var>the United States exempt from federal income taxes, on the preferred stock of the bank <br />
         		<a id="pl.14.25"></a><var>14.25</var>owned by the United States or the instrumentality;<br />
         		<a id="pl.14.26"></a><var>14.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) amounts disallowed for intangible drilling costs due to differences between <br />
         		<a id="pl.14.27"></a><var>14.27</var>this chapter and the Internal Revenue Code in taxable years beginning before January <br />
         		<a id="pl.14.28"></a><var>14.28</var>1, 1987, as follows:<br />
         		<a id="pl.14.29"></a><var>14.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) to the extent the disallowed costs are represented by physical property, an amount <br />
         		<a id="pl.14.30"></a><var>14.30</var>equal to the allowance for depreciation under Minnesota Statutes 1986, section 
         <statute_ref>290.09, <br />
            		<a id="pl.14.31"></a><var>14.31</var>subdivision 7
         </statute_ref>, subject to the modifications contained in subdivision 19e; and<br />
         		<a id="pl.14.32"></a><var>14.32</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) to the extent the disallowed costs are not represented by physical property, an <br />
         		<a id="pl.14.33"></a><var>14.33</var>amount equal to the allowance for cost depletion under Minnesota Statutes 1986, section <br />
         		
         <statute_ref><a id="pl.14.34"></a><var>14.34</var>290.09, subdivision 8
         </statute_ref>;<br />
         		<a id="pl.15.1"></a><var>15.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) the deduction for capital losses pursuant to sections 1211 and 1212 of the <br />
         		<a id="pl.15.2"></a><var>15.2</var>Internal Revenue Code, except that:<br />
         		<a id="pl.15.3"></a><var>15.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) for capital losses incurred in taxable years beginning after December 31, 1986, <br />
         		<a id="pl.15.4"></a><var>15.4</var>capital loss carrybacks shall not be allowed;<br />
         		<a id="pl.15.5"></a><var>15.5</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) for capital losses incurred in taxable years beginning after December 31, 1986, <br />
         		<a id="pl.15.6"></a><var>15.6</var>a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be <br />
         		<a id="pl.15.7"></a><var>15.7</var>allowed;<br />
         		<a id="pl.15.8"></a><var>15.8</var>&nbsp;&nbsp;&nbsp;&nbsp;(iii) for capital losses incurred in taxable years beginning before January 1, 1987, a <br />
         		<a id="pl.15.9"></a><var>15.9</var>capital loss carryback to each of the three taxable years preceding the loss year, subject to <br />
         		<a id="pl.15.10"></a><var>15.10</var>the provisions of Minnesota Statutes 1986, section 
         <statute_ref>290.16</statute_ref>, shall be allowed; and<br />
         		<a id="pl.15.11"></a><var>15.11</var>&nbsp;&nbsp;&nbsp;&nbsp;(iv) for capital losses incurred in taxable years beginning before January 1, 1987, <br />
         		<a id="pl.15.12"></a><var>15.12</var>a capital loss carryover to each of the five taxable years succeeding the loss year to the <br />
         		<a id="pl.15.13"></a><var>15.13</var>extent such loss was not used in a prior taxable year and subject to the provisions of <br />
         		<a id="pl.15.14"></a><var>15.14</var>Minnesota Statutes 1986, section 
         <statute_ref>290.16</statute_ref>, shall be allowed;<br />
         		<a id="pl.15.15"></a><var>15.15</var>&nbsp;&nbsp;&nbsp;&nbsp;(6) an amount for interest and expenses relating to income not taxable for federal <br />
         		<a id="pl.15.16"></a><var>15.16</var>income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and <br />
         		<a id="pl.15.17"></a><var>15.17</var>expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or <br />
         		<a id="pl.15.18"></a><var>15.18</var>291 of the Internal Revenue Code in computing federal taxable income;<br />
         		<a id="pl.15.19"></a><var>15.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(7) in the case of mines, oil and gas wells, other natural deposits, and timber for <br />
         		<a id="pl.15.20"></a><var>15.20</var>which percentage depletion was disallowed pursuant to subdivision 19c, clause (9), a <br />
         		<a id="pl.15.21"></a><var>15.21</var>reasonable allowance for depletion based on actual cost. In the case of leases the deduction <br />
         		<a id="pl.15.22"></a><var>15.22</var>must be apportioned between the lessor and lessee in accordance with rules prescribed <br />
         		<a id="pl.15.23"></a><var>15.23</var>by the commissioner. In the case of property held in trust, the allowable deduction must <br />
         		<a id="pl.15.24"></a><var>15.24</var>be apportioned between the income beneficiaries and the trustee in accordance with the <br />
         		<a id="pl.15.25"></a><var>15.25</var>pertinent provisions of the trust, or if there is no provision in the instrument, on the basis <br />
         		<a id="pl.15.26"></a><var>15.26</var>of the trust's income allocable to each;<br />
         		<a id="pl.15.27"></a><var>15.27</var>&nbsp;&nbsp;&nbsp;&nbsp;(8) for certified pollution control facilities placed in service in a taxable year <br />
         		<a id="pl.15.28"></a><var>15.28</var>beginning before December 31, 1986, and for which amortization deductions were elected <br />
         		<a id="pl.15.29"></a><var>15.29</var>under section 169 of the Internal Revenue Code of 1954, as amended through December <br />
         		<a id="pl.15.30"></a><var>15.30</var>31, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes <br />
         		<a id="pl.15.31"></a><var>15.31</var>1986, section 
         <statute_ref>290.09, subdivision 7</statute_ref>;<br />
         		<a id="pl.15.32"></a><var>15.32</var>&nbsp;&nbsp;&nbsp;&nbsp;(9) amounts included in federal taxable income that are due to refunds of income, <br />
         		<a id="pl.15.33"></a><var>15.33</var>excise, or franchise taxes based on net income or related minimum taxes paid by the <br />
         		<a id="pl.15.34"></a><var>15.34</var>corporation to Minnesota, another state, a political subdivision of another state, the <br />
         		<a id="pl.15.35"></a><var>15.35</var>District of Columbia, or a foreign country or possession of the United States to the extent <br />
         		<a id="pl.16.1"></a><var>16.1</var>that the taxes were added to federal taxable income under section 
         <statute_ref>290.01, subdivision 19c</statute_ref>, <br />
         		<a id="pl.16.2"></a><var>16.2</var>clause (1), in a prior taxable year;<br />
         		<a id="pl.16.3"></a><var>16.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(10) 80 percent of royalties, fees, or other like income accrued or received from a <br />
         		<a id="pl.16.4"></a><var>16.4</var>foreign operating corporation or a foreign corporation which is part of the same unitary <br />
         		<a id="pl.16.5"></a><var>16.5</var>business as the receiving corporation, unless the income resulting from such payments or <br />
         		<a id="pl.16.6"></a><var>16.6</var>accruals is income from sources within the United States as defined in subtitle A, chapter <br />
         		<a id="pl.16.7"></a><var>16.7</var>1, subchapter N, part 1, of the Internal Revenue Code;<br />
         		<a id="pl.16.8"></a><var>16.8</var>&nbsp;&nbsp;&nbsp;&nbsp;(11) income or gains from the business of mining as defined in section 
         <statute_ref>290.05, <br />
            		<a id="pl.16.9"></a><var>16.9</var>subdivision 1
         </statute_ref>, clause (a), that are not subject to Minnesota franchise tax;<br />
         		<a id="pl.16.10"></a><var>16.10</var>&nbsp;&nbsp;&nbsp;&nbsp;(12) the amount of disability access expenditures in the taxable year which are not <br />
         		<a id="pl.16.11"></a><var>16.11</var>allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code;<br />
         		<a id="pl.16.12"></a><var>16.12</var>&nbsp;&nbsp;&nbsp;&nbsp;(13) the amount of qualified research expenses not allowed for federal income tax <br />
         		<a id="pl.16.13"></a><var>16.13</var>purposes under section 280C(c) of the Internal Revenue Code, but only to the extent that <br />
         		<a id="pl.16.14"></a><var>16.14</var>the amount exceeds the amount of the credit allowed under section 
         <statute_ref>290.068</statute_ref>;<br />
         		<a id="pl.16.15"></a><var>16.15</var>&nbsp;&nbsp;&nbsp;&nbsp;(14) the amount of salary expenses not allowed for federal income tax purposes due <br />
         		<a id="pl.16.16"></a><var>16.16</var>to claiming the Indian employment credit under section 45A(a) of the Internal Revenue <br />
         		<a id="pl.16.17"></a><var>16.17</var>Code;<br />
         		<a id="pl.16.18"></a><var>16.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(15) for a corporation whose foreign sales corporation, as defined in section 922 <br />
         		<a id="pl.16.19"></a><var>16.19</var>of the Internal Revenue Code, constituted a foreign operating corporation during any <br />
         		<a id="pl.16.20"></a><var>16.20</var>taxable year ending before January 1, 1995, and a return was filed by August 15, 1996, <br />
         		<a id="pl.16.21"></a><var>16.21</var>claiming the deduction under section 
         <statute_ref>290.21, subdivision 4</statute_ref>, for income received from <br />
         		<a id="pl.16.22"></a><var>16.22</var>the foreign operating corporation, an amount equal to 
         <statute_ref>1.23</statute_ref> multiplied by the amount of <br />
         		<a id="pl.16.23"></a><var>16.23</var>income excluded under section 114 of the Internal Revenue Code, provided the income is <br />
         		<a id="pl.16.24"></a><var>16.24</var>not income of a foreign operating company;<br />
         		<a id="pl.16.25"></a><var>16.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(16) (15) any decrease in subpart F income, as defined in section 952(a) of the <br />
         		<a id="pl.16.26"></a><var>16.26</var>Internal Revenue Code, for the taxable year when subpart F income is calculated without <br />
         		<a id="pl.16.27"></a><var>16.27</var>regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;<br />
         		<a id="pl.16.28"></a><var>16.28</var>&nbsp;&nbsp;&nbsp;&nbsp;(17) (16) in each of the five tax years immediately following the tax year in which an <br />
         		<a id="pl.16.29"></a><var>16.29</var>addition is required under subdivision 19c, clause (15) (14), an amount equal to one-fifth <br />
         		<a id="pl.16.30"></a><var>16.30</var>of the delayed depreciation. For purposes of this clause, "delayed depreciation" means the <br />
         		<a id="pl.16.31"></a><var>16.31</var>amount of the addition made by the taxpayer under subdivision 19c, clause (15) (14). The <br />
         		<a id="pl.16.32"></a><var>16.32</var>resulting delayed depreciation cannot be less than zero;<br />
         		<a id="pl.16.33"></a><var>16.33</var>&nbsp;&nbsp;&nbsp;&nbsp;(18) (17) in each of the five tax years immediately following the tax year in which an <br />
         		<a id="pl.16.34"></a><var>16.34</var>addition is required under subdivision 19c, clause (16) (15), an amount equal to one-fifth <br />
         		<a id="pl.16.35"></a><var>16.35</var>of the amount of the addition; and<br />
         		<a id="pl.17.1"></a><var>17.1</var>(19) (18) to the extent included in federal taxable income, discharge of indebtedness <br />
         		<a id="pl.17.2"></a><var>17.2</var>income resulting from reacquisition of business indebtedness included in federal taxable <br />
         		<a id="pl.17.3"></a><var>17.3</var>income under section 108(i) of the Internal Revenue Code. This subtraction applies only <br />
         		<a id="pl.17.4"></a><var>17.4</var>to the extent that the income was included in net income in a prior year as a result of the <br />
         		<a id="pl.17.5"></a><var>17.5</var>addition under section 
         <statute_ref>290.01, subdivision 19c</statute_ref>, clause (25) (24).<br />
         		<a id="pl.17.6"></a><var>17.6</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.17.7"></a><var>17.7</var>December 31, 2011.<br />
         		<br />
         		<a id="bill.1.15.0"></a><a id="pl.17.8"></a><var>17.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 15. Minnesota Statutes 2010, section 290.0921, subdivision 3, is amended to read:<br />
         		<a id="pl.17.9"></a><var>17.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Alternative minimum taxable income.</b> "Alternative minimum taxable <br />
         		<a id="pl.17.10"></a><var>17.10</var>income" is Minnesota net income as defined in section 
         <statute_ref>290.01, subdivision 19</statute_ref>, and <br />
         		<a id="pl.17.11"></a><var>17.11</var>includes the adjustments and tax preference items in sections 56, 57, 58, and 59(d), (e), <br />
         		<a id="pl.17.12"></a><var>17.12</var>(f), and (h) of the Internal Revenue Code. If a corporation files a separate company <br />
         		<a id="pl.17.13"></a><var>17.13</var>Minnesota tax return, the minimum tax must be computed on a separate company basis. <br />
         		<a id="pl.17.14"></a><var>17.14</var>If a corporation is part of a tax group filing a unitary return, the minimum tax must be <br />
         		<a id="pl.17.15"></a><var>17.15</var>computed on a unitary basis. The following adjustments must be made.<br />
         		<a id="pl.17.16"></a><var>17.16</var>(1) For purposes of the depreciation adjustments under section 56(a)(1) and <br />
         		<a id="pl.17.17"></a><var>17.17</var>56(g)(4)(A) of the Internal Revenue Code, the basis for depreciable property placed in <br />
         		<a id="pl.17.18"></a><var>17.18</var>service in a taxable year beginning before January 1, 1990, is the adjusted basis for federal <br />
         		<a id="pl.17.19"></a><var>17.19</var>income tax purposes, including any modification made in a taxable year under section <br />
         		
         <statute_ref><a id="pl.17.20"></a><var>17.20</var>290.01, subdivision 19e
         </statute_ref>, or Minnesota Statutes 1986, section 
         <statute_ref>290.09, subdivision 7</statute_ref>, <br />
         		<a id="pl.17.21"></a><var>17.21</var>paragraph (c).<br />
         		<a id="pl.17.22"></a><var>17.22</var>For taxable years beginning after December 31, 2000, the amount of any remaining <br />
         		<a id="pl.17.23"></a><var>17.23</var>modification made under section 
         <statute_ref>290.01, subdivision 19e</statute_ref>, or Minnesota Statutes 1986, <br />
         		<a id="pl.17.24"></a><var>17.24</var>section 
         <statute_ref>290.09, subdivision 7</statute_ref>, paragraph (c), not previously deducted is a depreciation <br />
         		<a id="pl.17.25"></a><var>17.25</var>allowance in the first taxable year after December 31, 2000.<br />
         		<a id="pl.17.26"></a><var>17.26</var>(2) The portion of the depreciation deduction allowed for federal income tax <br />
         		<a id="pl.17.27"></a><var>17.27</var>purposes under section 168(k) of the Internal Revenue Code that is required as an addition <br />
         		<a id="pl.17.28"></a><var>17.28</var>under section 
         <statute_ref>290.01, subdivision 19c</statute_ref>, clause (15) (14), is disallowed in determining <br />
         		<a id="pl.17.29"></a><var>17.29</var>alternative minimum taxable income.<br />
         		<a id="pl.17.30"></a><var>17.30</var>(3) The subtraction for depreciation allowed under section 
         <statute_ref>290.01, subdivision <br />
            		<a id="pl.17.31"></a><var>17.31</var>19d
         </statute_ref>, clause (17) (16), is allowed as a depreciation deduction in determining alternative <br />
         		<a id="pl.17.32"></a><var>17.32</var>minimum taxable income.<br />
         		<a id="pl.17.33"></a><var>17.33</var>(4) The alternative tax net operating loss deduction under sections 56(a)(4) and 56(d) <br />
         		<a id="pl.17.34"></a><var>17.34</var>of the Internal Revenue Code does not apply.<br />
         		<a id="pl.18.1"></a><var>18.1</var>(5) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the Internal <br />
         		<a id="pl.18.2"></a><var>18.2</var>Revenue Code does not apply.<br />
         		<a id="pl.18.3"></a><var>18.3</var>(6) The special rule for dividends from section 936 companies under section <br />
         		<a id="pl.18.4"></a><var>18.4</var>56(g)(4)(C)(iii) does not apply.<br />
         		<a id="pl.18.5"></a><var>18.5</var>(7) (6) The tax preference for depletion under section 57(a)(1) of the Internal <br />
         		<a id="pl.18.6"></a><var>18.6</var>Revenue Code does not apply.<br />
         		<a id="pl.18.7"></a><var>18.7</var>(8) (7) The tax preference for intangible drilling costs under section 57(a)(2) of the <br />
         		<a id="pl.18.8"></a><var>18.8</var>Internal Revenue Code must be calculated without regard to subparagraph (E) and the <br />
         		<a id="pl.18.9"></a><var>18.9</var>subtraction under section 
         <statute_ref>290.01, subdivision 19d</statute_ref>, clause (4).<br />
         		<a id="pl.18.10"></a><var>18.10</var>(9) (8) The tax preference for tax exempt interest under section 57(a)(5) of the <br />
         		<a id="pl.18.11"></a><var>18.11</var>Internal Revenue Code does not apply.<br />
         		<a id="pl.18.12"></a><var>18.12</var>(10) (9) The tax preference for charitable contributions of appreciated property <br />
         		<a id="pl.18.13"></a><var>18.13</var>under section 57(a)(6) of the Internal Revenue Code does not apply.<br />
         		<a id="pl.18.14"></a><var>18.14</var>(11) (10) For purposes of calculating the tax preference for accelerated depreciation <br />
         		<a id="pl.18.15"></a><var>18.15</var>or amortization on certain property placed in service before January 1, 1987, under section <br />
         		<a id="pl.18.16"></a><var>18.16</var>57(a)(7) of the Internal Revenue Code, the deduction allowable for the taxable year is the <br />
         		<a id="pl.18.17"></a><var>18.17</var>deduction allowed under section 
         <statute_ref>290.01, subdivision 19e</statute_ref>.<br />
         		<a id="pl.18.18"></a><var>18.18</var>For taxable years beginning after December 31, 2000, the amount of any remaining <br />
         		<a id="pl.18.19"></a><var>18.19</var>modification made under section 
         <statute_ref>290.01, subdivision 19e</statute_ref>, not previously deducted is a <br />
         		<a id="pl.18.20"></a><var>18.20</var>depreciation or amortization allowance in the first taxable year after December 31, 2004.<br />
         		<a id="pl.18.21"></a><var>18.21</var>(12) (11) For purposes of calculating the adjustment for adjusted current earnings <br />
         		<a id="pl.18.22"></a><var>18.22</var>in section 56(g) of the Internal Revenue Code, the term "alternative minimum taxable <br />
         		<a id="pl.18.23"></a><var>18.23</var>income" as it is used in section 56(g) of the Internal Revenue Code, means alternative <br />
         		<a id="pl.18.24"></a><var>18.24</var>minimum taxable income as defined in this subdivision, determined without regard to the <br />
         		<a id="pl.18.25"></a><var>18.25</var>adjustment for adjusted current earnings in section 56(g) of the Internal Revenue Code.<br />
         		<a id="pl.18.26"></a><var>18.26</var>(13) (12) For purposes of determining the amount of adjusted current earnings <br />
         		<a id="pl.18.27"></a><var>18.27</var>under section 56(g)(3) of the Internal Revenue Code, no adjustment shall be made under <br />
         		<a id="pl.18.28"></a><var>18.28</var>section 56(g)(4) of the Internal Revenue Code with respect to (i) the amount of foreign <br />
         		<a id="pl.18.29"></a><var>18.29</var>dividend gross-up subtracted as provided in section 
         <statute_ref>290.01, subdivision 19d</statute_ref>, clause (1), <br />
         		<a id="pl.18.30"></a><var>18.30</var>(ii) the amount of refunds of income, excise, or franchise taxes subtracted as provided in <br />
         		<a id="pl.18.31"></a><var>18.31</var>section 
         <statute_ref>290.01, subdivision 19d</statute_ref>, clause (9), or (iii) the amount of royalties, fees or other <br />
         		<a id="pl.18.32"></a><var>18.32</var>like income subtracted as provided in section 
         <statute_ref>290.01, subdivision 19d</statute_ref>, clause (10).<br />
         		<a id="pl.18.33"></a><var>18.33</var>(14) (13) Alternative minimum taxable income excludes the income from operating <br />
         		<a id="pl.18.34"></a><var>18.34</var>in a job opportunity building zone as provided under section 
         <statute_ref>469.317</statute_ref>.<br />
         		<a id="pl.18.35"></a><var>18.35</var>(15) (14) Alternative minimum taxable income excludes the income from operating <br />
         		<a id="pl.18.36"></a><var>18.36</var>in a biotechnology and health sciences industry zone as provided under section 
         <statute_ref>469.337</statute_ref>.<br />
         		<a id="pl.19.1"></a><var>19.1</var>(16) (15) Alternative minimum taxable income excludes the income from operating <br />
         		<a id="pl.19.2"></a><var>19.2</var>in an international economic development zone as provided under section 
         <statute_ref>469.326</statute_ref>.<br />
         		<a id="pl.19.3"></a><var>19.3</var>Items of tax preference must not be reduced below zero as a result of the <br />
         		<a id="pl.19.4"></a><var>19.4</var>modifications in this subdivision.<br />
         		<a id="pl.19.5"></a><var>19.5</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.19.6"></a><var>19.6</var>December 31, 2011.<br />
         		<br />
         		<a id="bill.1.16.0"></a><a id="pl.19.7"></a><var>19.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 16. Minnesota Statutes 2010, section 290.17, subdivision 4, is amended to read:<br />
         		<a id="pl.19.8"></a><var>19.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Unitary business principle.</b> (a) If a trade or business conducted wholly <br />
         		<a id="pl.19.9"></a><var>19.9</var>within this state or partly within and partly without this state is part of a unitary business, <br />
         		<a id="pl.19.10"></a><var>19.10</var>the entire income of the unitary business is subject to apportionment pursuant to section <br />
         		
         <statute_ref><a id="pl.19.11"></a><var>19.11</var>290.191
         </statute_ref>. Notwithstanding subdivision 2, paragraph (c), none of the income of a unitary <br />
         		<a id="pl.19.12"></a><var>19.12</var>business is considered to be derived from any particular source and none may be allocated <br />
         		<a id="pl.19.13"></a><var>19.13</var>to a particular place except as provided by the applicable apportionment formula. The <br />
         		<a id="pl.19.14"></a><var>19.14</var>provisions of this subdivision do not apply to business income subject to subdivision 5, <br />
         		<a id="pl.19.15"></a><var>19.15</var>income of an insurance company, or income of an investment company determined under <br />
         		<a id="pl.19.16"></a><var>19.16</var>section 
         <statute_ref>290.36</statute_ref>.<br />
         		<a id="pl.19.17"></a><var>19.17</var>(b) The term "unitary business" means business activities or operations which <br />
         		<a id="pl.19.18"></a><var>19.18</var>result in a flow of value between them. The term may be applied within a single legal <br />
         		<a id="pl.19.19"></a><var>19.19</var>entity or between multiple entities and without regard to whether each entity is a sole <br />
         		<a id="pl.19.20"></a><var>19.20</var>proprietorship, a corporation, a partnership or a trust.<br />
         		<a id="pl.19.21"></a><var>19.21</var>(c) Unity is presumed whenever there is unity of ownership, operation, and use, <br />
         		<a id="pl.19.22"></a><var>19.22</var>evidenced by centralized management or executive force, centralized purchasing, <br />
         		<a id="pl.19.23"></a><var>19.23</var>advertising, accounting, or other controlled interaction, but the absence of these <br />
         		<a id="pl.19.24"></a><var>19.24</var>centralized activities will not necessarily evidence a nonunitary business. Unity is also <br />
         		<a id="pl.19.25"></a><var>19.25</var>presumed when business activities or operations are of mutual benefit, dependent upon or <br />
         		<a id="pl.19.26"></a><var>19.26</var>contributory to one another, either individually or as a group.<br />
         		<a id="pl.19.27"></a><var>19.27</var>(d) Where a business operation conducted in Minnesota is owned by a business <br />
         		<a id="pl.19.28"></a><var>19.28</var>entity that carries on business activity outside the state different in kind from that <br />
         		<a id="pl.19.29"></a><var>19.29</var>conducted within this state, and the other business is conducted entirely outside the state, it <br />
         		<a id="pl.19.30"></a><var>19.30</var>is presumed that the two business operations are unitary in nature, interrelated, connected, <br />
         		<a id="pl.19.31"></a><var>19.31</var>and interdependent unless it can be shown to the contrary.<br />
         		<a id="pl.19.32"></a><var>19.32</var>(e) Unity of ownership is does not deemed to exist when a corporation is two or <br />
         		<a id="pl.19.33"></a><var>19.33</var>more corporations are involved unless that corporation is a member of a group of two or <br />
         		<a id="pl.19.34"></a><var>19.34</var>more business entities and more than 50 percent of the voting stock of each member of <br />
         		<a id="pl.19.35"></a><var>19.35</var>the group corporation is directly or indirectly owned by a common owner or by common <br />
         		<a id="pl.20.1"></a><var>20.1</var>owners, either corporate or noncorporate, or by one or more of the member corporations <br />
         		<a id="pl.20.2"></a><var>20.2</var>of the group. For this purpose, the term "voting stock" shall include membership interests <br />
         		<a id="pl.20.3"></a><var>20.3</var>of mutual insurance holding companies formed under section 
         <statute_ref>66A.40</statute_ref>.<br />
         		<a id="pl.20.4"></a><var>20.4</var>(f) The net income and apportionment factors under section 
         <statute_ref>290.191</statute_ref> or 
         <statute_ref>290.20</statute_ref> of <br />
         		<a id="pl.20.5"></a><var>20.5</var>foreign corporations and other foreign entities which are part of a unitary business shall <br />
         		<a id="pl.20.6"></a><var>20.6</var>not be included in the net income or the apportionment factors of the unitary business. <br />
         		<a id="pl.20.7"></a><var>20.7</var>A foreign corporation or other foreign entity which is required to file a return under this <br />
         		<a id="pl.20.8"></a><var>20.8</var>chapter shall file on a separate return basis. The net income and apportionment factors <br />
         		<a id="pl.20.9"></a><var>20.9</var>under section 
         <statute_ref>290.191</statute_ref> or 
         <statute_ref>290.20</statute_ref> of foreign operating corporations shall not be included in <br />
         		<a id="pl.20.10"></a><var>20.10</var>the net income or the apportionment factors of the unitary business except as provided in <br />
         		<a id="pl.20.11"></a><var>20.11</var>paragraph (g).<br />
         		<a id="pl.20.12"></a><var>20.12</var>(g) The adjusted net income of a foreign operating corporation shall be deemed to <br />
         		<a id="pl.20.13"></a><var>20.13</var>be paid as a dividend on the last day of its taxable year to each shareholder thereof, in <br />
         		<a id="pl.20.14"></a><var>20.14</var>proportion to each shareholder's ownership, with which such corporation is engaged in <br />
         		<a id="pl.20.15"></a><var>20.15</var>a unitary business. Such deemed dividend shall be treated as a dividend under section <br />
         		
         <statute_ref><a id="pl.20.16"></a><var>20.16</var>290.21, subdivision 4
         </statute_ref>.<br />
         		<a id="pl.20.17"></a><var>20.17</var>Dividends actually paid by a foreign operating corporation to a corporate shareholder <br />
         		<a id="pl.20.18"></a><var>20.18</var>which is a member of the same unitary business as the foreign operating corporation shall <br />
         		<a id="pl.20.19"></a><var>20.19</var>be eliminated from the net income of the unitary business in preparing a combined report <br />
         		<a id="pl.20.20"></a><var>20.20</var>for the unitary business. The adjusted net income of a foreign operating corporation <br />
         		<a id="pl.20.21"></a><var>20.21</var>shall be its net income adjusted as follows:<br />
         		<a id="pl.20.22"></a><var>20.22</var>(1) any taxes paid or accrued to a foreign country, the commonwealth of Puerto <br />
         		<a id="pl.20.23"></a><var>20.23</var>Rico, or a United States possession or political subdivision of any of the foregoing shall <br />
         		<a id="pl.20.24"></a><var>20.24</var>be a deduction; and<br />
         		<a id="pl.20.25"></a><var>20.25</var>(2) the subtraction from federal taxable income for payments received from foreign <br />
         		<a id="pl.20.26"></a><var>20.26</var>corporations or foreign operating corporations under section 
         <statute_ref>290.01, subdivision 19d</statute_ref>, <br />
         		<a id="pl.20.27"></a><var>20.27</var>clause (10), shall not be allowed.<br />
         		<a id="pl.20.28"></a><var>20.28</var>If a foreign operating corporation incurs a net loss, neither income nor deduction <br />
         		<a id="pl.20.29"></a><var>20.29</var>from that corporation shall be included in determining the net income of the unitary <br />
         		<a id="pl.20.30"></a><var>20.30</var>business.<br />
         		<a id="pl.20.31"></a><var>20.31</var>(h) For purposes of determining the net income of a unitary business and the factors <br />
         		<a id="pl.20.32"></a><var>20.32</var>to be used in the apportionment of net income pursuant to section 
         <statute_ref>290.191</statute_ref> or 
         <statute_ref>290.20</statute_ref>, there <br />
         		<a id="pl.20.33"></a><var>20.33</var>must be included only the income and apportionment factors of domestic corporations or <br />
         		<a id="pl.20.34"></a><var>20.34</var>other domestic entities other than foreign operating corporations that are determined to <br />
         		<a id="pl.20.35"></a><var>20.35</var>be part of the unitary business pursuant to this subdivision, notwithstanding that foreign <br />
         		<a id="pl.20.36"></a><var>20.36</var>corporations or other foreign entities might be included in the unitary business.<br />
         		<a id="pl.21.1"></a><var>21.1</var>(i) Deductions for expenses, interest, or taxes otherwise allowable under this chapter <br />
         		<a id="pl.21.2"></a><var>21.2</var>that are connected with or allocable against dividends, deemed dividends described <br />
         		<a id="pl.21.3"></a><var>21.3</var>in paragraph (g), or royalties, fees, or other like income described in section 
         <statute_ref>290.01, <br />
            		<a id="pl.21.4"></a><var>21.4</var>subdivision 19d
         </statute_ref>, clause (10), shall not be disallowed.<br />
         		<a id="pl.21.5"></a><var>21.5</var>(j) Each corporation or other entity, except a sole proprietorship, that is part of a <br />
         		<a id="pl.21.6"></a><var>21.6</var>unitary business must file combined reports as the commissioner determines. On the <br />
         		<a id="pl.21.7"></a><var>21.7</var>reports, all intercompany transactions between entities included pursuant to paragraph <br />
         		<a id="pl.21.8"></a><var>21.8</var>(h) must be eliminated and the entire net income of the unitary business determined in <br />
         		<a id="pl.21.9"></a><var>21.9</var>accordance with this subdivision is apportioned among the entities by using each entity's <br />
         		<a id="pl.21.10"></a><var>21.10</var>Minnesota factors for apportionment purposes in the numerators of the apportionment <br />
         		<a id="pl.21.11"></a><var>21.11</var>formula and the total factors for apportionment purposes of all entities included pursuant <br />
         		<a id="pl.21.12"></a><var>21.12</var>to paragraph (h) in the denominators of the apportionment formula.<br />
         		<a id="pl.21.13"></a><var>21.13</var>(k) If a corporation has been divested from a unitary business and is included in a <br />
         		<a id="pl.21.14"></a><var>21.14</var>combined report for a fractional part of the common accounting period of the combined <br />
         		<a id="pl.21.15"></a><var>21.15</var>report:<br />
         		<a id="pl.21.16"></a><var>21.16</var>(1) its income includable in the combined report is its income incurred for that part <br />
         		<a id="pl.21.17"></a><var>21.17</var>of the year determined by proration or separate accounting; and<br />
         		<a id="pl.21.18"></a><var>21.18</var>(2) its sales, property, and payroll included in the apportionment formula must <br />
         		<a id="pl.21.19"></a><var>21.19</var>be prorated or accounted for separately.<br />
         		<a id="pl.21.20"></a><var>21.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.2.0.0"></a><div class="xtend_ce"><a id="pl.21.21"></a><var>21.21</var><b>ARTICLE 2</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.21.22"></a><var>21.22</var><b>DEPARTMENT POLICY AND TECHNICAL: PROPERTY TAX</b><br />
            		
         </div><br />
         		<a id="bill.2.1.0"></a><a id="pl.21.23"></a><var>21.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. Minnesota Statutes 2010, section 13.4965, subdivision 3, is amended to read:<br />
         		<a id="pl.21.24"></a><var>21.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Homestead </b><b>and other </b><b>applications.</b> The classification and disclosure of <br />
         		<a id="pl.21.25"></a><var>21.25</var>certain information collected to determine eligibility of property for a homestead or other <br />
         		<a id="pl.21.26"></a><var>21.26</var>classification or benefit under section 273.13 are governed by section sections 273.124, <br />
         		<a id="pl.21.27"></a><var>21.27</var>subdivision subdivisions 13, 13a, 13c, and 13d, and 273.1315.<br />
         		<a id="pl.21.28"></a><var>21.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.2.2.0"></a><a id="pl.21.29"></a><var>21.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. Minnesota Statutes 2010, section 270.077, is amended to read:<br />
         		<a id="pl.21.30"></a><var>21.30</var><b>270.077 TAXES CREDITED TO STATE AIRPORTS FUND.</b><br />
         		<a id="pl.21.31"></a><var>21.31</var>All taxes levied under sections 
         <statute_ref>270.071</statute_ref> to 
         <statute_ref>270.079</statute_ref> must be collected by the <br />
         		<a id="pl.21.32"></a><var>21.32</var>commissioner and credited to the state airports fund created in section 
         <statute_ref>360.017</statute_ref>.<br />
         		<a id="pl.22.1"></a><var>22.1</var><b>EFFECTIVE DATE.</b>This section is effective for reports filed on July 1, 2012, <br />
         		<a id="pl.22.2"></a><var>22.2</var>and thereafter.<br />
         		<br />
         		<a id="bill.2.3.0"></a><a id="pl.22.3"></a><var>22.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. Minnesota Statutes 2010, section 270.41, subdivision 5, is amended to read:<br />
         		<a id="pl.22.4"></a><var>22.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Prohibited activity.</b> A licensed assessor or other person employed by an <br />
         		<a id="pl.22.5"></a><var>22.5</var>assessment jurisdiction or contracting with an assessment jurisdiction for the purpose <br />
         		<a id="pl.22.6"></a><var>22.6</var>of valuing or classifying property for property tax purposes is prohibited from making <br />
         		<a id="pl.22.7"></a><var>22.7</var>appraisals or analyses, accepting an appraisal assignment, or preparing an appraisal report <br />
         		<a id="pl.22.8"></a><var>22.8</var>as defined in section 
         <statute_ref>82B.021, subdivisions 2</statute_ref>, 4, 6, and 7, on any property within the <br />
         		<a id="pl.22.9"></a><var>22.9</var>assessment jurisdiction where the individual is employed or performing the duties of the <br />
         		<a id="pl.22.10"></a><var>22.10</var>assessor under contract. Violation of this prohibition shall result in immediate revocation <br />
         		<a id="pl.22.11"></a><var>22.11</var>of the individual's license to assess property for property tax purposes. This prohibition <br />
         		<a id="pl.22.12"></a><var>22.12</var>must not be construed to prohibit an individual from carrying out any duties required <br />
         		<a id="pl.22.13"></a><var>22.13</var>for the proper assessment of property for property tax purposes or performing duties <br />
         		<a id="pl.22.14"></a><var>22.14</var>enumerated in section 
         <statute_ref>273.061, subdivision 7</statute_ref> or 8. If a formal resolution has been adopted <br />
         		<a id="pl.22.15"></a><var>22.15</var>by the governing body of a governmental unit, which specifies the purposes for which <br />
         		<a id="pl.22.16"></a><var>22.16</var>such work will be done, this prohibition does not apply to appraisal activities undertaken <br />
         		<a id="pl.22.17"></a><var>22.17</var>on behalf of and at the request of the governmental unit that has employed or contracted <br />
         		<a id="pl.22.18"></a><var>22.18</var>with the individual. The resolution may only allow appraisal activities which are related to <br />
         		<a id="pl.22.19"></a><var>22.19</var>condemnations, right-of-way acquisitions, land exchanges, or special assessments.<br />
         		<a id="pl.22.20"></a><var>22.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.2.4.0"></a><a id="pl.22.21"></a><var>22.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 4. Minnesota Statutes 2011 Supplement, section 270C.34, subdivision 1, is <br />
         		<a id="pl.22.22"></a><var>22.22</var>amended to read:<br />
         		<a id="pl.22.23"></a><var>22.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Authority.</b> (a) The commissioner may abate, reduce, or refund any <br />
         		<a id="pl.22.24"></a><var>22.24</var>penalty or interest that is imposed by a law administered by the commissioner, or imposed <br />
         		<a id="pl.22.25"></a><var>22.25</var>by section 
         <statute_ref>270.0725, subdivision 1</statute_ref> or 2, or 270.075, as a result of the late payment of tax <br />
         		<a id="pl.22.26"></a><var>22.26</var>or late filing of a return, or any part of an additional tax charge under section 
         <statute_ref>289A.25, <br />
            		<a id="pl.22.27"></a><var>22.27</var>subdivision 2
         </statute_ref>, or 
         <statute_ref>289A.26, subdivision 4</statute_ref>, if the failure to timely pay the tax or failure <br />
         		<a id="pl.22.28"></a><var>22.28</var>to timely file the return is due to reasonable cause, or if the taxpayer is located in a <br />
         		<a id="pl.22.29"></a><var>22.29</var>presidentially declared disaster or in a presidentially declared state of emergency area or <br />
         		<a id="pl.22.30"></a><var>22.30</var>in an area declared to be in a state of emergency by the governor under section 
         <statute_ref>12.31</statute_ref>.<br />
         		<a id="pl.22.31"></a><var>22.31</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) The commissioner shall abate any part of a penalty or additional tax charge <br />
         		<a id="pl.22.32"></a><var>22.32</var>under section 
         <statute_ref>289A.25, subdivision 2</statute_ref>, or 
         <statute_ref>289A.26, subdivision 4</statute_ref>, attributable to erroneous <br />
         		<a id="pl.22.33"></a><var>22.33</var>advice given to the taxpayer in writing by an employee of the department acting in <br />
         		<a id="pl.22.34"></a><var>22.34</var>an official capacity, if the advice:<br />
         		<a id="pl.23.1"></a><var>23.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) was reasonably relied on and was in response to a specific written request of the <br />
         		<a id="pl.23.2"></a><var>23.2</var>taxpayer; and<br />
         		<a id="pl.23.3"></a><var>23.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) was not the result of failure by the taxpayer to provide adequate or accurate <br />
         		<a id="pl.23.4"></a><var>23.4</var>information.<br />
         		<a id="pl.23.5"></a><var>23.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.2.5.0"></a><a id="pl.23.6"></a><var>23.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 5. Minnesota Statutes 2010, section 272.01, subdivision 2, is amended to read:<br />
         		<a id="pl.23.7"></a><var>23.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Exempt property used by private entity for profit.</b> (a) When any real or <br />
         		<a id="pl.23.8"></a><var>23.8</var>personal property which is exempt from ad valorem taxes, and taxes in lieu thereof, is <br />
         		<a id="pl.23.9"></a><var>23.9</var>leased, loaned, or otherwise made available and used by a private individual, association, <br />
         		<a id="pl.23.10"></a><var>23.10</var>or corporation in connection with a business conducted for profit, there shall be imposed a <br />
         		<a id="pl.23.11"></a><var>23.11</var>tax, for the privilege of so using or possessing such real or personal property, in the same <br />
         		<a id="pl.23.12"></a><var>23.12</var>amount and to the same extent as though the lessee or user was the owner of such property.<br />
         		<a id="pl.23.13"></a><var>23.13</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) The tax imposed by this subdivision shall not apply to:<br />
         		<a id="pl.23.14"></a><var>23.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) property leased or used as a concession in or relative to the use in whole <br />
         		<a id="pl.23.15"></a><var>23.15</var>or part of a public park, market, fairgrounds, port authority, economic development <br />
         		<a id="pl.23.16"></a><var>23.16</var>authority established under chapter 469, municipal auditorium, municipal parking facility, <br />
         		<a id="pl.23.17"></a><var>23.17</var>municipal museum, or municipal stadium;<br />
         		<a id="pl.23.18"></a><var>23.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) property of an airport owned by a city, town, county, or group thereof which is:<br />
         		<a id="pl.23.19"></a><var>23.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) leased to or used by any person or entity including a fixed base operator; and<br />
         		<a id="pl.23.20"></a><var>23.20</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) used as a hangar for the storage or repair of aircraft or to provide aviation goods, <br />
         		<a id="pl.23.21"></a><var>23.21</var>services, or facilities to the airport or general public;<br />
         		<a id="pl.23.22"></a><var>23.22</var>the exception from taxation provided in this clause does not apply to:<br />
         		<a id="pl.23.23"></a><var>23.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) property located at an airport owned or operated by the Metropolitan Airports <br />
         		<a id="pl.23.24"></a><var>23.24</var>Commission or by a city of over 50,000 population according to the most recent federal <br />
         		<a id="pl.23.25"></a><var>23.25</var>census or such a city's airport authority; or<br />
         		<a id="pl.23.26"></a><var>23.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) hangars leased by a private individual, association, or corporation in connection <br />
         		<a id="pl.23.27"></a><var>23.27</var>with a business conducted for profit other than an aviation-related business;<br />
         		<a id="pl.23.28"></a><var>23.28</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) property constituting or used as a public pedestrian ramp or concourse in <br />
         		<a id="pl.23.29"></a><var>23.29</var>connection with a public airport;<br />
         		<a id="pl.23.30"></a><var>23.30</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) property constituting or used as a passenger check-in area or ticket sale counter, <br />
         		<a id="pl.23.31"></a><var>23.31</var>boarding area, or luggage claim area in connection with a public airport but not the <br />
         		<a id="pl.23.32"></a><var>23.32</var>airports owned or operated by the Metropolitan Airports Commission or cities of over <br />
         		<a id="pl.23.33"></a><var>23.33</var>50,000 population or an airport authority therein. Real estate owned by a municipality <br />
         		<a id="pl.23.34"></a><var>23.34</var>in connection with the operation of a public airport and leased or used for agricultural <br />
         		<a id="pl.23.35"></a><var>23.35</var>purposes is not exempt;<br />
         		<a id="pl.24.1"></a><var>24.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) property leased, loaned, or otherwise made available to a private individual, <br />
         		<a id="pl.24.2"></a><var>24.2</var>corporation, or association under a cooperative farming agreement made pursuant to <br />
         		<a id="pl.24.3"></a><var>24.3</var>section 
         <statute_ref>97A.135</statute_ref>; or<br />
         		<a id="pl.24.4"></a><var>24.4</var>&nbsp;&nbsp;&nbsp;&nbsp;(6) property leased, loaned, or otherwise made available to a private individual, <br />
         		<a id="pl.24.5"></a><var>24.5</var>corporation, or association under section 
         <statute_ref>272.68, subdivision 4</statute_ref>.<br />
         		<a id="pl.24.6"></a><var>24.6</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) Taxes imposed by this subdivision are payable as in the case of personal property <br />
         		<a id="pl.24.7"></a><var>24.7</var>taxes and shall be assessed to the lessees or users of real or personal property in the same <br />
         		<a id="pl.24.8"></a><var>24.8</var>manner as taxes assessed to owners of real or personal property, except that such taxes <br />
         		<a id="pl.24.9"></a><var>24.9</var>shall not become a lien against the property. When due, the taxes shall constitute a debt <br />
         		<a id="pl.24.10"></a><var>24.10</var>due from the lessee or user to the state, township, city, county, and school district for <br />
         		<a id="pl.24.11"></a><var>24.11</var>which the taxes were assessed and shall be collected in the same manner as personal <br />
         		<a id="pl.24.12"></a><var>24.12</var>property taxes. If property subject to the tax imposed by this subdivision is leased or used <br />
         		<a id="pl.24.13"></a><var>24.13</var>jointly by two or more persons, each lessee or user shall be jointly and severally liable for <br />
         		<a id="pl.24.14"></a><var>24.14</var>payment of the tax.<br />
         		<a id="pl.24.15"></a><var>24.15</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) The tax on real property of the federal government, the state or any of its political <br />
         		<a id="pl.24.16"></a><var>24.16</var>subdivisions that is leased by a private individual, association, or corporation and becomes <br />
         		<a id="pl.24.17"></a><var>24.17</var>taxable under this subdivision or other provision of law must be assessed and collected as <br />
         		<a id="pl.24.18"></a><var>24.18</var>a personal property assessment. The taxes do not become a lien against the real property.<br />
         		<a id="pl.24.19"></a><var>24.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.2.6.0"></a><a id="pl.24.20"></a><var>24.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 6. Minnesota Statutes 2011 Supplement, section 273.114, subdivision 6, is <br />
         		<a id="pl.24.21"></a><var>24.21</var>amended to read:<br />
         		<a id="pl.24.22"></a><var>24.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <b>Additional taxes.</b> (a) When real property which is being, or has been <br />
         		<a id="pl.24.23"></a><var>24.23</var>valued and assessed under this section is sold, transferred, or no longer qualifies under <br />
         		<a id="pl.24.24"></a><var>24.24</var>subdivision 2, the portion sold, transferred, or no longer qualifying shall be subject to <br />
         		<a id="pl.24.25"></a><var>24.25</var>additional taxes in the amount equal to the difference between the taxes determined in <br />
         		<a id="pl.24.26"></a><var>24.26</var>accordance with subdivision 3 and the amount determined under subdivision 4, provided <br />
         		<a id="pl.24.27"></a><var>24.27</var>that the amount determined under subdivision 4 shall not be greater than it would have <br />
         		<a id="pl.24.28"></a><var>24.28</var>been had the actual bona fide sale price of the real property at an arm's-length transaction <br />
         		<a id="pl.24.29"></a><var>24.29</var>been used in lieu of the market value determined under subdivision 4. The additional taxes <br />
         		<a id="pl.24.30"></a><var>24.30</var>shall be extended against the property on the tax list for taxes payable in the current year, <br />
         		<a id="pl.24.31"></a><var>24.31</var>provided that no interest or penalties shall be levied on the additional taxes if timely paid <br />
         		<a id="pl.24.32"></a><var>24.32</var>and provided that the additional taxes shall only be levied with respect to the current year <br />
         		<a id="pl.24.33"></a><var>24.33</var>plus two prior years that the property has been valued and assessed under this section.<br />
         		<a id="pl.25.1"></a><var>25.1</var>(b) In the case of a sale or transfer, the additional taxes under paragraph (a) shall not <br />
         		<a id="pl.25.2"></a><var>25.2</var>be extended against the property if the new owner submits a successful application by the <br />
         		<a id="pl.25.3"></a><var>25.3</var>later of May 1 of the current year or 30 days after the sale or transfer.<br />
         		<a id="pl.25.4"></a><var>25.4</var>(c) For the purposes of this section, the following events do not constitute a sale or <br />
         		<a id="pl.25.5"></a><var>25.5</var>transfer for property that qualified under subdivision 2 prior to the event:<br />
         		<a id="pl.25.6"></a><var>25.6</var>(1) death of a property owner when the surviving owners retain ownership of the <br />
         		<a id="pl.25.7"></a><var>25.7</var>property;<br />
         		<a id="pl.25.8"></a><var>25.8</var>(2) divorce of a married couple when one of the spouses retains ownership of the <br />
         		<a id="pl.25.9"></a><var>25.9</var>property;<br />
         		<a id="pl.25.10"></a><var>25.10</var>(3) marriage of a single property owner when that owner retains ownership of the <br />
         		<a id="pl.25.11"></a><var>25.11</var>property in whole or in part;<br />
         		<a id="pl.25.12"></a><var>25.12</var>(4) the organization or reorganization of a farm ownership entity that is not prohibited <br />
         		<a id="pl.25.13"></a><var>25.13</var>from owning agricultural land in this state under section 500.24, if all owners maintain the <br />
         		<a id="pl.25.14"></a><var>25.14</var>same beneficial interest both before and after the organization or reorganization; and<br />
         		<a id="pl.25.15"></a><var>25.15</var>(5) transfer of the property to a trust or trustee, provided that the individual owners <br />
         		<a id="pl.25.16"></a><var>25.16</var>of the property are the grantors of the trust and they maintain the same beneficial interest <br />
         		<a id="pl.25.17"></a><var>25.17</var>both before and after placement of the property in trust.<br />
         		<a id="pl.25.18"></a><var>25.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.2.7.0"></a><a id="pl.25.19"></a><var>25.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 7. Minnesota Statutes 2010, section 273.124, subdivision 13, is amended to read:<br />
         		<a id="pl.25.20"></a><var>25.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 13. <b>Homestead application.</b> (a) A person who meets the homestead <br />
         		<a id="pl.25.21"></a><var>25.21</var>requirements under subdivision 1 must file a homestead application with the county <br />
         		<a id="pl.25.22"></a><var>25.22</var>assessor to initially obtain homestead classification.<br />
         		<a id="pl.25.23"></a><var>25.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) The format and contents of a uniform homestead application shall be prescribed <br />
         		<a id="pl.25.24"></a><var>25.24</var>by the commissioner of revenue. The application must clearly inform the taxpayer that <br />
         		<a id="pl.25.25"></a><var>25.25</var>this application must be signed by all owners who occupy the property or by the qualifying <br />
         		<a id="pl.25.26"></a><var>25.26</var>relative and returned to the county assessor in order for the property to receive homestead <br />
         		<a id="pl.25.27"></a><var>25.27</var>treatment.<br />
         		<a id="pl.25.28"></a><var>25.28</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) Every property owner applying for homestead classification must furnish to the <br />
         		<a id="pl.25.29"></a><var>25.29</var>county assessor the Social Security number of each occupant who is listed as an owner <br />
         		<a id="pl.25.30"></a><var>25.30</var>of the property on the deed of record, the name and address of each owner who does not <br />
         		<a id="pl.25.31"></a><var>25.31</var>occupy the property, and the name and Social Security number of each owner's spouse who <br />
         		<a id="pl.25.32"></a><var>25.32</var>occupies the property. The application must be signed by each owner who occupies the <br />
         		<a id="pl.25.33"></a><var>25.33</var>property and by each owner's spouse who occupies the property, or, in the case of property <br />
         		<a id="pl.25.34"></a><var>25.34</var>that qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative.<br />
         		<a id="pl.26.1"></a><var>26.1</var>&nbsp;&nbsp;&nbsp;&nbsp;If a property owner occupies a homestead, the property owner's spouse may not <br />
         		<a id="pl.26.2"></a><var>26.2</var>claim another property as a homestead unless the property owner and the property owner's <br />
         		<a id="pl.26.3"></a><var>26.3</var>spouse file with the assessor an affidavit or other proof required by the assessor stating that <br />
         		<a id="pl.26.4"></a><var>26.4</var>the property qualifies as a homestead under subdivision 1, paragraph (e).<br />
         		<a id="pl.26.5"></a><var>26.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Owners or spouses occupying residences owned by their spouses and previously <br />
         		<a id="pl.26.6"></a><var>26.6</var>occupied with the other spouse, either of whom fail to include the other spouse's name <br />
         		<a id="pl.26.7"></a><var>26.7</var>and Social Security number on the homestead application or provide the affidavits or <br />
         		<a id="pl.26.8"></a><var>26.8</var>other proof requested, will be deemed to have elected to receive only partial homestead <br />
         		<a id="pl.26.9"></a><var>26.9</var>treatment of their residence. The remainder of the residence will be classified as <br />
         		<a id="pl.26.10"></a><var>26.10</var>nonhomestead residential. When an owner or spouse's name and Social Security number <br />
         		<a id="pl.26.11"></a><var>26.11</var>appear on homestead applications for two separate residences and only one application is <br />
         		<a id="pl.26.12"></a><var>26.12</var>signed, the owner or spouse will be deemed to have elected to homestead the residence for <br />
         		<a id="pl.26.13"></a><var>26.13</var>which the application was signed.<br />
         		<a id="pl.26.14"></a><var>26.14</var>&nbsp;&nbsp;&nbsp;&nbsp;The Social Security numbers, state or federal tax returns or tax return information, <br />
         		<a id="pl.26.15"></a><var>26.15</var>including the federal income tax schedule F, required by this section, or section 273.13, <br />
         		<a id="pl.26.16"></a><var>26.16</var>and affidavits or other proofs of the property owners and spouses submitted under this <br />
         		<a id="pl.26.17"></a><var>26.17</var>or another section to support a claim for a property tax homestead classification or other <br />
         		<a id="pl.26.18"></a><var>26.18</var>classification or benefit under section 273.13, are private data on individuals as defined by <br />
         		<a id="pl.26.19"></a><var>26.19</var>section 
         <statute_ref>13.02, subdivision 12</statute_ref>, or nonpublic data as defined in section 13.02, subdivision 9, <br />
         		<a id="pl.26.20"></a><var>26.20</var>but, notwithstanding that section, the private and nonpublic data may be disclosed to the <br />
         		<a id="pl.26.21"></a><var>26.21</var>commissioner of revenue, or, for purposes of proceeding under the Revenue Recapture <br />
         		<a id="pl.26.22"></a><var>26.22</var>Act to recover personal property taxes owing, to the county treasurer.<br />
         		<a id="pl.26.23"></a><var>26.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) If residential real estate is occupied and used for purposes of a homestead by a <br />
         		<a id="pl.26.24"></a><var>26.24</var>relative of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in <br />
         		<a id="pl.26.25"></a><var>26.25</var>order for the property to receive homestead status, a homestead application must be filed <br />
         		<a id="pl.26.26"></a><var>26.26</var>with the assessor. The Social Security number of each relative and spouse of a relative <br />
         		<a id="pl.26.27"></a><var>26.27</var>occupying the property shall be required on the homestead application filed under this <br />
         		<a id="pl.26.28"></a><var>26.28</var>subdivision. If a different relative of the owner subsequently occupies the property, the <br />
         		<a id="pl.26.29"></a><var>26.29</var>owner of the property must notify the assessor within 30 days of the change in occupancy. <br />
         		<a id="pl.26.30"></a><var>26.30</var>The Social Security number of a relative or relative's spouse occupying the property <br />
         		<a id="pl.26.31"></a><var>26.31</var>is private data on individuals as defined by section 
         <statute_ref>13.02, subdivision 12</statute_ref>, but may be <br />
         		<a id="pl.26.32"></a><var>26.32</var>disclosed to the commissioner of revenue, or, for the purposes of proceeding under the <br />
         		<a id="pl.26.33"></a><var>26.33</var>Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.<br />
         		<a id="pl.26.34"></a><var>26.34</var>&nbsp;&nbsp;&nbsp;&nbsp;(e) The homestead application shall also notify the property owners that the <br />
         		<a id="pl.26.35"></a><var>26.35</var>application filed under this section will not be mailed annually and that if the property <br />
         		<a id="pl.26.36"></a><var>26.36</var>is granted homestead status for any assessment year, that same property shall remain <br />
         		<a id="pl.27.1"></a><var>27.1</var>classified as homestead until the property is sold or transferred to another person, or <br />
         		<a id="pl.27.2"></a><var>27.2</var>the owners, the spouse of the owner, or the relatives no longer use the property as their <br />
         		<a id="pl.27.3"></a><var>27.3</var>homestead. Upon the sale or transfer of the homestead property, a certificate of value must <br />
         		<a id="pl.27.4"></a><var>27.4</var>be timely filed with the county auditor as provided under section 
         <statute_ref>272.115</statute_ref>. Failure to <br />
         		<a id="pl.27.5"></a><var>27.5</var>notify the assessor within 30 days that the property has been sold, transferred, or that the <br />
         		<a id="pl.27.6"></a><var>27.6</var>owner, the spouse of the owner, or the relative is no longer occupying the property as a <br />
         		<a id="pl.27.7"></a><var>27.7</var>homestead, shall result in the penalty provided under this subdivision and the property <br />
         		<a id="pl.27.8"></a><var>27.8</var>will lose its current homestead status.<br />
         		<a id="pl.27.9"></a><var>27.9</var>&nbsp;&nbsp;&nbsp;&nbsp;(f) If the homestead application is not returned within 30 days, the county will send a <br />
         		<a id="pl.27.10"></a><var>27.10</var>second application to the present owners of record. The notice of proposed property taxes <br />
         		<a id="pl.27.11"></a><var>27.11</var>prepared under section 
         <statute_ref>275.065, subdivision 3</statute_ref>, shall reflect the property's classification. If <br />
         		<a id="pl.27.12"></a><var>27.12</var>a homestead application has not been filed with the county by December 15, the assessor <br />
         		<a id="pl.27.13"></a><var>27.13</var>shall classify the property as nonhomestead for the current assessment year for taxes <br />
         		<a id="pl.27.14"></a><var>27.14</var>payable in the following year, provided that the owner may be entitled to receive the <br />
         		<a id="pl.27.15"></a><var>27.15</var>homestead classification by proper application under section 
         <statute_ref>375.192</statute_ref>.<br />
         		<a id="pl.27.16"></a><var>27.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 13a. <b>Occupant list.</b> (g) At the request of the commissioner, each county <br />
         		<a id="pl.27.17"></a><var>27.17</var>must give the commissioner a list that includes the name and Social Security number <br />
         		<a id="pl.27.18"></a><var>27.18</var>of each occupant of homestead property who is the property owner, property owner's <br />
         		<a id="pl.27.19"></a><var>27.19</var>spouse, qualifying relative of a property owner, or a spouse of a qualifying relative. The <br />
         		<a id="pl.27.20"></a><var>27.20</var>commissioner shall use the information provided on the lists as appropriate under the law, <br />
         		<a id="pl.27.21"></a><var>27.21</var>including for the detection of improper claims by owners, or relatives of owners, under <br />
         		<a id="pl.27.22"></a><var>27.22</var>chapter 290A.<br />
         		<a id="pl.27.23"></a><var>27.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 13b. <b>Improper homestead.</b> (h) (a) If the commissioner finds that a <br />
         		<a id="pl.27.24"></a><var>27.24</var>property owner may be claiming a fraudulent homestead, the commissioner shall notify <br />
         		<a id="pl.27.25"></a><var>27.25</var>the appropriate counties. Within 90 days of the notification, the county assessor shall <br />
         		<a id="pl.27.26"></a><var>27.26</var>investigate to determine if the homestead classification was properly claimed. If the <br />
         		<a id="pl.27.27"></a><var>27.27</var>property owner does not qualify, the county assessor shall notify the county auditor who <br />
         		<a id="pl.27.28"></a><var>27.28</var>will determine the amount of homestead benefits that had been improperly allowed. For the <br />
         		<a id="pl.27.29"></a><var>27.29</var>purpose of this section subdivision, "homestead benefits" means the tax reduction resulting <br />
         		<a id="pl.27.30"></a><var>27.30</var>from the classification as a homestead under section 
         <statute_ref>273.13</statute_ref>, the taconite homestead credit <br />
         		<a id="pl.27.31"></a><var>27.31</var>under section 
         <statute_ref>273.135</statute_ref>, the residential homestead and agricultural homestead credits under <br />
         		<a id="pl.27.32"></a><var>27.32</var>section 
         <statute_ref>273.1384</statute_ref>, and the supplemental homestead credit under section 
         <statute_ref>273.1391</statute_ref>.<br />
         		<a id="pl.27.33"></a><var>27.33</var>&nbsp;&nbsp;&nbsp;&nbsp;The county auditor shall send a notice to the person who owned the affected property <br />
         		<a id="pl.27.34"></a><var>27.34</var>at the time the homestead application related to the improper homestead was filed, <br />
         		<a id="pl.27.35"></a><var>27.35</var>demanding reimbursement of the homestead benefits plus a penalty equal to 100 percent <br />
         		<a id="pl.27.36"></a><var>27.36</var>of the homestead benefits. The person notified may appeal the county's determination <br />
         		<a id="pl.28.1"></a><var>28.1</var>by serving copies of a petition for review with county officials as provided in section <br />
         		
         <statute_ref><a id="pl.28.2"></a><var>28.2</var>278.01
         </statute_ref> and filing proof of service as provided in section 
         <statute_ref>278.01</statute_ref> with the Minnesota Tax <br />
         		<a id="pl.28.3"></a><var>28.3</var>Court within 60 days of the date of the notice from the county. Procedurally, the appeal <br />
         		<a id="pl.28.4"></a><var>28.4</var>is governed by the provisions in chapter 271 which apply to the appeal of a property tax <br />
         		<a id="pl.28.5"></a><var>28.5</var>assessment or levy, but without requiring any prepayment of the amount in controversy. If <br />
         		<a id="pl.28.6"></a><var>28.6</var>the amount of homestead benefits and penalty is not paid within 60 days, and if no appeal <br />
         		<a id="pl.28.7"></a><var>28.7</var>has been filed, the county auditor shall certify the amount of taxes and penalty to the county <br />
         		<a id="pl.28.8"></a><var>28.8</var>treasurer. The county treasurer will add interest to the unpaid homestead benefits and <br />
         		<a id="pl.28.9"></a><var>28.9</var>penalty amounts at the rate provided in section 
         <statute_ref>279.03</statute_ref> for real property taxes becoming <br />
         		<a id="pl.28.10"></a><var>28.10</var>delinquent in the calendar year during which the amount remains unpaid. Interest may be <br />
         		<a id="pl.28.11"></a><var>28.11</var>assessed for the period beginning 60 days after demand for payment was made.<br />
         		<a id="pl.28.12"></a><var>28.12</var>&nbsp;&nbsp;&nbsp;&nbsp;If the person notified is the current owner of the property, the treasurer may add the <br />
         		<a id="pl.28.13"></a><var>28.13</var>total amount of homestead benefits, penalty, interest, and costs to the ad valorem taxes <br />
         		<a id="pl.28.14"></a><var>28.14</var>otherwise payable on the property by including the amounts on the property tax statements <br />
         		<a id="pl.28.15"></a><var>28.15</var>under section 
         <statute_ref>276.04, subdivision 3</statute_ref>. The amounts added under this paragraph to the ad <br />
         		<a id="pl.28.16"></a><var>28.16</var>valorem taxes shall include interest accrued through December 31 of the year preceding <br />
         		<a id="pl.28.17"></a><var>28.17</var>the taxes payable year for which the amounts are first added. These amounts, when added <br />
         		<a id="pl.28.18"></a><var>28.18</var>to the property tax statement, become subject to all the laws for the enforcement of real or <br />
         		<a id="pl.28.19"></a><var>28.19</var>personal property taxes for that year, and for any subsequent year.<br />
         		<a id="pl.28.20"></a><var>28.20</var>&nbsp;&nbsp;&nbsp;&nbsp;If the person notified is not the current owner of the property, the treasurer may <br />
         		<a id="pl.28.21"></a><var>28.21</var>collect the amounts due under the Revenue Recapture Act in chapter 270A, or use any of <br />
         		<a id="pl.28.22"></a><var>28.22</var>the powers granted in sections 
         <statute_ref>277.20</statute_ref> and 
         <statute_ref>277.21</statute_ref> without exclusion, to enforce payment <br />
         		<a id="pl.28.23"></a><var>28.23</var>of the homestead benefits, penalty, interest, and costs, as if those amounts were delinquent <br />
         		<a id="pl.28.24"></a><var>28.24</var>tax obligations of the person who owned the property at the time the application related <br />
         		<a id="pl.28.25"></a><var>28.25</var>to the improperly allowed homestead was filed. The treasurer may relieve a prior owner <br />
         		<a id="pl.28.26"></a><var>28.26</var>of personal liability for the homestead benefits, penalty, interest, and costs, and instead <br />
         		<a id="pl.28.27"></a><var>28.27</var>extend those amounts on the tax lists against the property as provided in this paragraph <br />
         		<a id="pl.28.28"></a><var>28.28</var>to the extent that the current owner agrees in writing. On all demands, billings, property <br />
         		<a id="pl.28.29"></a><var>28.29</var>tax statements, and related correspondence, the county must list and state separately the <br />
         		<a id="pl.28.30"></a><var>28.30</var>amounts of homestead benefits, penalty, interest and costs being demanded, billed or <br />
         		<a id="pl.28.31"></a><var>28.31</var>assessed.<br />
         		<a id="pl.28.32"></a><var>28.32</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) (b) Any amount of homestead benefits recovered by the county from the property <br />
         		<a id="pl.28.33"></a><var>28.33</var>owner shall be distributed to the county, city or town, and school district where the <br />
         		<a id="pl.28.34"></a><var>28.34</var>property is located in the same proportion that each taxing district's levy was to the total <br />
         		<a id="pl.28.35"></a><var>28.35</var>of the three taxing districts' levy for the current year. Any amount recovered attributable <br />
         		<a id="pl.28.36"></a><var>28.36</var>to taconite homestead credit shall be transmitted to the St. Louis County auditor to be <br />
         		<a id="pl.29.1"></a><var>29.1</var>deposited in the taconite property tax relief account. Any amount recovered that is <br />
         		<a id="pl.29.2"></a><var>29.2</var>attributable to supplemental homestead credit is to be transmitted to the commissioner of <br />
         		<a id="pl.29.3"></a><var>29.3</var>revenue for deposit in the general fund of the state treasury. The total amount of penalty <br />
         		<a id="pl.29.4"></a><var>29.4</var>collected must be deposited in the county general fund.<br />
         		<a id="pl.29.5"></a><var>29.5</var>&nbsp;&nbsp;&nbsp;&nbsp;(j) (c) If a property owner has applied for more than one homestead and the county <br />
         		<a id="pl.29.6"></a><var>29.6</var>assessors cannot determine which property should be classified as homestead, the county <br />
         		<a id="pl.29.7"></a><var>29.7</var>assessors will refer the information to the commissioner. The commissioner shall make <br />
         		<a id="pl.29.8"></a><var>29.8</var>the determination and notify the counties within 60 days.<br />
         		<a id="pl.29.9"></a><var>29.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 13c. <b>Property lists.</b> (k) In addition to lists of homestead properties, the <br />
         		<a id="pl.29.10"></a><var>29.10</var>commissioner may ask the counties to furnish lists of all properties and the record owners. <br />
         		<a id="pl.29.11"></a><var>29.11</var>The Social Security numbers and federal identification numbers that are maintained by <br />
         		<a id="pl.29.12"></a><var>29.12</var>a county or city assessor for property tax administration purposes, and that may appear <br />
         		<a id="pl.29.13"></a><var>29.13</var>on the lists retain their classification as private or nonpublic data; but may be viewed, <br />
         		<a id="pl.29.14"></a><var>29.14</var>accessed, and used by the county auditor or treasurer of the same county for the limited <br />
         		<a id="pl.29.15"></a><var>29.15</var>purpose of assisting the commissioner in the preparation of microdata samples under <br />
         		<a id="pl.29.16"></a><var>29.16</var>section 
         <statute_ref>270C.12</statute_ref>. The commissioner shall use the information provided on the lists as <br />
         		<a id="pl.29.17"></a><var>29.17</var>appropriate under the law, including for the detection of improper claims by owners, or <br />
         		<a id="pl.29.18"></a><var>29.18</var>relatives of owners, under chapter 290A.<br />
         		<a id="pl.29.19"></a><var>29.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 13d. <b>Homestead data.</b> (l) On or before April 30 each year beginning in 2007, <br />
         		<a id="pl.29.20"></a><var>29.20</var>each county must provide the commissioner with the following data for each parcel of <br />
         		<a id="pl.29.21"></a><var>29.21</var>homestead property by electronic means as defined in section 
         <statute_ref>289A.02, subdivision 8</statute_ref>:<br />
         		<a id="pl.29.22"></a><var>29.22</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) (1) the property identification number assigned to the parcel for purposes of <br />
         		<a id="pl.29.23"></a><var>29.23</var>taxes payable in the current year;<br />
         		<a id="pl.29.24"></a><var>29.24</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) (2) the name and Social Security number of each occupant of homestead property <br />
         		<a id="pl.29.25"></a><var>29.25</var>who is the property owner, property owner's spouse, qualifying relative of a property <br />
         		<a id="pl.29.26"></a><var>29.26</var>owner, or spouse of a qualifying relative;<br />
         		<a id="pl.29.27"></a><var>29.27</var>&nbsp;&nbsp;&nbsp;&nbsp;(iii) (3) the classification of the property under section 
         <statute_ref>273.13</statute_ref> for taxes payable <br />
         		<a id="pl.29.28"></a><var>29.28</var>in the current year and in the prior year;<br />
         		<a id="pl.29.29"></a><var>29.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(iv) (4) an indication of whether the property was classified as a homestead for <br />
         		<a id="pl.29.30"></a><var>29.30</var>taxes payable in the current year because of occupancy by a relative of the owner or <br />
         		<a id="pl.29.31"></a><var>29.31</var>by a spouse of a relative;<br />
         		<a id="pl.29.32"></a><var>29.32</var>&nbsp;&nbsp;&nbsp;&nbsp;(v) (5) the property taxes payable as defined in section 
         <statute_ref>290A.03, subdivision 13</statute_ref>, for <br />
         		<a id="pl.29.33"></a><var>29.33</var>the current year and the prior year;<br />
         		<a id="pl.29.34"></a><var>29.34</var>&nbsp;&nbsp;&nbsp;&nbsp;(vi) (6) the market value of improvements to the property first assessed for tax <br />
         		<a id="pl.29.35"></a><var>29.35</var>purposes for taxes payable in the current year;<br />
         		<a id="pl.30.1"></a><var>30.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(vii) (7) the assessor's estimated market value assigned to the property for taxes <br />
         		<a id="pl.30.2"></a><var>30.2</var>payable in the current year and the prior year;<br />
         		<a id="pl.30.3"></a><var>30.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(viii) (8) the taxable market value assigned to the property for taxes payable in the <br />
         		<a id="pl.30.4"></a><var>30.4</var>current year and the prior year;<br />
         		<a id="pl.30.5"></a><var>30.5</var>&nbsp;&nbsp;&nbsp;&nbsp;(ix) (9) whether there are delinquent property taxes owing on the homestead;<br />
         		<a id="pl.30.6"></a><var>30.6</var>&nbsp;&nbsp;&nbsp;&nbsp;(x) (10) the unique taxing district in which the property is located; and<br />
         		<a id="pl.30.7"></a><var>30.7</var>&nbsp;&nbsp;&nbsp;&nbsp;(xi) (11) such other information as the commissioner decides is necessary.<br />
         		<a id="pl.30.8"></a><var>30.8</var>&nbsp;&nbsp;&nbsp;&nbsp;The commissioner shall use the information provided on the lists as appropriate <br />
         		<a id="pl.30.9"></a><var>30.9</var>under the law, including for the detection of improper claims by owners, or relatives <br />
         		<a id="pl.30.10"></a><var>30.10</var>of owners, under chapter 290A.<br />
         		<a id="pl.30.11"></a><var>30.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.2.8.0"></a><a id="pl.30.12"></a><var>30.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 8. Minnesota Statutes 2011 Supplement, section 273.13, subdivision 25, is <br />
         		<a id="pl.30.13"></a><var>30.13</var>amended to read:<br />
         		<a id="pl.30.14"></a><var>30.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 25. <b>Class 4.</b> (a) Class 4a is residential real estate containing four or more <br />
         		<a id="pl.30.15"></a><var>30.15</var>units and used or held for use by the owner or by the tenants or lessees of the owner <br />
         		<a id="pl.30.16"></a><var>30.16</var>as a residence for rental periods of 30 days or more, excluding property qualifying for <br />
         		<a id="pl.30.17"></a><var>30.17</var>class 4d. Class 4a also includes hospitals licensed under sections 
         <statute_ref>144.50</statute_ref> to 
         <statute_ref>144.56</statute_ref>, other <br />
         		<a id="pl.30.18"></a><var>30.18</var>than hospitals exempt under section 
         <statute_ref>272.02</statute_ref>, and contiguous property used for hospital <br />
         		<a id="pl.30.19"></a><var>30.19</var>purposes, without regard to whether the property has been platted or subdivided. The <br />
         		<a id="pl.30.20"></a><var>30.20</var>market value of class 4a property has a class rate of 1.25 percent.<br />
         		<a id="pl.30.21"></a><var>30.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) Class 4b includes:<br />
         		<a id="pl.30.22"></a><var>30.22</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) residential real estate containing less than four units that does not qualify as class <br />
         		<a id="pl.30.23"></a><var>30.23</var>4bb, other than seasonal residential recreational property;<br />
         		<a id="pl.30.24"></a><var>30.24</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) manufactured homes not classified under any other provision;<br />
         		<a id="pl.30.25"></a><var>30.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) a dwelling, garage, and surrounding one acre of property on a nonhomestead <br />
         		<a id="pl.30.26"></a><var>30.26</var>farm classified under subdivision 23, paragraph (b) containing two or three units; and<br />
         		<a id="pl.30.27"></a><var>30.27</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) unimproved property that is classified residential as determined under subdivision <br />
         		<a id="pl.30.28"></a><var>30.28</var>33.<br />
         		<a id="pl.30.29"></a><var>30.29</var>&nbsp;&nbsp;&nbsp;&nbsp;The market value of class 4b property has a class rate of 1.25 percent.<br />
         		<a id="pl.30.30"></a><var>30.30</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) Class 4bb includes:<br />
         		<a id="pl.30.31"></a><var>30.31</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) nonhomestead residential real estate containing one unit, other than seasonal <br />
         		<a id="pl.30.32"></a><var>30.32</var>residential recreational property; and<br />
         		<a id="pl.30.33"></a><var>30.33</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) a single family dwelling, garage, and surrounding one acre of property on a <br />
         		<a id="pl.30.34"></a><var>30.34</var>nonhomestead farm classified under subdivision 23, paragraph (b).<br />
         		<a id="pl.30.35"></a><var>30.35</var>&nbsp;&nbsp;&nbsp;&nbsp;Class 4bb property has the same class rates as class 1a property under subdivision 22.<br />
         		<a id="pl.31.1"></a><var>31.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Property that has been classified as seasonal residential recreational property at <br />
         		<a id="pl.31.2"></a><var>31.2</var>any time during which it has been owned by the current owner or spouse of the current <br />
         		<a id="pl.31.3"></a><var>31.3</var>owner does not qualify for class 4bb.<br />
         		<a id="pl.31.4"></a><var>31.4</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) Class 4c property includes:<br />
         		<a id="pl.31.5"></a><var>31.5</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) except as provided in subdivision 22, paragraph (c), real and personal property <br />
         		<a id="pl.31.6"></a><var>31.6</var>devoted to commercial temporary and seasonal residential occupancy for recreation <br />
         		<a id="pl.31.7"></a><var>31.7</var>purposes, for not more than 250 days in the year preceding the year of assessment. For <br />
         		<a id="pl.31.8"></a><var>31.8</var>purposes of this clause, property is devoted to a commercial purpose on a specific day <br />
         		<a id="pl.31.9"></a><var>31.9</var>if any portion of the property is used for residential occupancy, and a fee is charged for <br />
         		<a id="pl.31.10"></a><var>31.10</var>residential occupancy. Class 4c property under this clause must contain three or more <br />
         		<a id="pl.31.11"></a><var>31.11</var>rental units. A "rental unit" is defined as a cabin, condominium, townhouse, sleeping room, <br />
         		<a id="pl.31.12"></a><var>31.12</var>or individual camping site equipped with water and electrical hookups for recreational <br />
         		<a id="pl.31.13"></a><var>31.13</var>vehicles. A camping pad offered for rent by a property that otherwise qualifies for class <br />
         		<a id="pl.31.14"></a><var>31.14</var>4c under this clause is also class 4c under this clause regardless of the term of the rental <br />
         		<a id="pl.31.15"></a><var>31.15</var>agreement, as long as the use of the camping pad does not exceed 250 days. In order for a <br />
         		<a id="pl.31.16"></a><var>31.16</var>property to be classified under this clause, either (i) the business located on the property <br />
         		<a id="pl.31.17"></a><var>31.17</var>must provide recreational activities, at least 40 percent of the annual gross lodging receipts <br />
         		<a id="pl.31.18"></a><var>31.18</var>related to the property must be from business conducted during 90 consecutive days, <br />
         		<a id="pl.31.19"></a><var>31.19</var>and either (A) at least 60 percent of all paid bookings by lodging guests during the year <br />
         		<a id="pl.31.20"></a><var>31.20</var>must be for periods of at least two consecutive nights; or (B) at least 20 percent of the <br />
         		<a id="pl.31.21"></a><var>31.21</var>annual gross receipts must be from charges for providing recreational activities, or (ii) the <br />
         		<a id="pl.31.22"></a><var>31.22</var>business must contain 20 or fewer rental units, and must be located in a township or a city <br />
         		<a id="pl.31.23"></a><var>31.23</var>with a population of 2,500 or less located outside the metropolitan area, as defined under <br />
         		<a id="pl.31.24"></a><var>31.24</var>section 
         <statute_ref>473.121</statute_ref>, subdivision 2, that contains a portion of a state trail administered by the <br />
         		<a id="pl.31.25"></a><var>31.25</var>Department of Natural Resources. For purposes of item (i)(A), a paid booking of five or <br />
         		<a id="pl.31.26"></a><var>31.26</var>more nights shall be counted as two bookings. Class 4c property also includes commercial <br />
         		<a id="pl.31.27"></a><var>31.27</var>use real property used exclusively for recreational purposes in conjunction with other class <br />
         		<a id="pl.31.28"></a><var>31.28</var>4c property classified under this clause and devoted to temporary and seasonal residential <br />
         		<a id="pl.31.29"></a><var>31.29</var>occupancy for recreational purposes, up to a total of two acres, provided the property is <br />
         		<a id="pl.31.30"></a><var>31.30</var>not devoted to commercial recreational use for more than 250 days in the year preceding <br />
         		<a id="pl.31.31"></a><var>31.31</var>the year of assessment and is located within two miles of the class 4c property with which <br />
         		<a id="pl.31.32"></a><var>31.32</var>it is used. In order for a property to qualify for classification under this clause, the owner <br />
         		<a id="pl.31.33"></a><var>31.33</var>must submit a declaration to the assessor designating the cabins or units occupied for 250 <br />
         		<a id="pl.31.34"></a><var>31.34</var>days or less in the year preceding the year of assessment by January 15 of the assessment <br />
         		<a id="pl.31.35"></a><var>31.35</var>year. Those cabins or units and a proportionate share of the land on which they are located <br />
         		<a id="pl.31.36"></a><var>31.36</var>must be designated class 4c under this clause as otherwise provided. The remainder of the <br />
         		<a id="pl.32.1"></a><var>32.1</var>cabins or units and a proportionate share of the land on which they are located will be <br />
         		<a id="pl.32.2"></a><var>32.2</var>designated as class 3a. The owner of property desiring designation as class 4c property <br />
         		<a id="pl.32.3"></a><var>32.3</var>under this clause must provide guest registers or other records demonstrating that the units <br />
         		<a id="pl.32.4"></a><var>32.4</var>for which class 4c designation is sought were not occupied for more than 250 days in the <br />
         		<a id="pl.32.5"></a><var>32.5</var>year preceding the assessment if so requested. The portion of a property operated as a <br />
         		<a id="pl.32.6"></a><var>32.6</var>(1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) other <br />
         		<a id="pl.32.7"></a><var>32.7</var>nonresidential facility operated on a commercial basis not directly related to temporary and <br />
         		<a id="pl.32.8"></a><var>32.8</var>seasonal residential occupancy for recreation purposes does not qualify for class 4c. For <br />
         		<a id="pl.32.9"></a><var>32.9</var>the purposes of this paragraph, "recreational activities" means renting ice fishing houses, <br />
         		<a id="pl.32.10"></a><var>32.10</var>boats and motors, snowmobiles, downhill or cross-country ski equipment; providing <br />
         		<a id="pl.32.11"></a><var>32.11</var>marina services, launch services, or guide services; or selling bait and fishing tackle;<br />
         		<a id="pl.32.12"></a><var>32.12</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) qualified property used as a golf course if:<br />
         		<a id="pl.32.13"></a><var>32.13</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) it is open to the public on a daily fee basis. It may charge membership fees or <br />
         		<a id="pl.32.14"></a><var>32.14</var>dues, but a membership fee may not be required in order to use the property for golfing, <br />
         		<a id="pl.32.15"></a><var>32.15</var>and its green fees for golfing must be comparable to green fees typically charged by <br />
         		<a id="pl.32.16"></a><var>32.16</var>municipal courses; and<br />
         		<a id="pl.32.17"></a><var>32.17</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) it meets the requirements of section 
         <statute_ref>273.112, subdivision 3</statute_ref>, paragraph (d).<br />
         		<a id="pl.32.18"></a><var>32.18</var>&nbsp;&nbsp;&nbsp;&nbsp;A structure used as a clubhouse, restaurant, or place of refreshment in conjunction <br />
         		<a id="pl.32.19"></a><var>32.19</var>with the golf course is classified as class 3a property;<br />
         		<a id="pl.32.20"></a><var>32.20</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) real property up to a maximum of three acres of land owned and used by a <br />
         		<a id="pl.32.21"></a><var>32.21</var>nonprofit community service oriented organization and not used for residential purposes <br />
         		<a id="pl.32.22"></a><var>32.22</var>on either a temporary or permanent basis, provided that:<br />
         		<a id="pl.32.23"></a><var>32.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) the property is not used for a revenue-producing activity for more than six days <br />
         		<a id="pl.32.24"></a><var>32.24</var>in the calendar year preceding the year of assessment; or<br />
         		<a id="pl.32.25"></a><var>32.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) the organization makes annual charitable contributions and donations at least <br />
         		<a id="pl.32.26"></a><var>32.26</var>equal to the property's previous year's property taxes and the property is allowed to be <br />
         		<a id="pl.32.27"></a><var>32.27</var>used for public and community meetings or events for no charge, as appropriate to the <br />
         		<a id="pl.32.28"></a><var>32.28</var>size of the facility.<br />
         		<a id="pl.32.29"></a><var>32.29</var>&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this clause:<br />
         		<a id="pl.32.30"></a><var>32.30</var>&nbsp;&nbsp;&nbsp;&nbsp;(A) "charitable contributions and donations" has the same meaning as lawful <br />
         		<a id="pl.32.31"></a><var>32.31</var>gambling purposes under section 
         <statute_ref>349.12, subdivision 25</statute_ref>, excluding those purposes <br />
         		<a id="pl.32.32"></a><var>32.32</var>relating to the payment of taxes, assessments, fees, auditing costs, and utility payments;<br />
         		<a id="pl.32.33"></a><var>32.33</var>&nbsp;&nbsp;&nbsp;&nbsp;(B) "property taxes" excludes the state general tax;<br />
         		<a id="pl.32.34"></a><var>32.34</var>&nbsp;&nbsp;&nbsp;&nbsp;(C) a "nonprofit community service oriented organization" means any corporation, <br />
         		<a id="pl.32.35"></a><var>32.35</var>society, association, foundation, or institution organized and operated exclusively for <br />
         		<a id="pl.32.36"></a><var>32.36</var>charitable, religious, fraternal, civic, or educational purposes, and which is exempt from <br />
         		<a id="pl.33.1"></a><var>33.1</var>federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal <br />
         		<a id="pl.33.2"></a><var>33.2</var>Revenue Code; and<br />
         		<a id="pl.33.3"></a><var>33.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(D) "revenue-producing activities" shall include but not be limited to property or that <br />
         		<a id="pl.33.4"></a><var>33.4</var>portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt <br />
         		<a id="pl.33.5"></a><var>33.5</var>liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling <br />
         		<a id="pl.33.6"></a><var>33.6</var>alley, a retail store, gambling conducted by organizations licensed under chapter 349, an <br />
         		<a id="pl.33.7"></a><var>33.7</var>insurance business, or office or other space leased or rented to a lessee who conducts a <br />
         		<a id="pl.33.8"></a><var>33.8</var>for-profit enterprise on the premises.<br />
         		<a id="pl.33.9"></a><var>33.9</var>Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The use <br />
         		<a id="pl.33.10"></a><var>33.10</var>of the property for social events open exclusively to members and their guests for periods <br />
         		<a id="pl.33.11"></a><var>33.11</var>of less than 24 hours, when an admission is not charged nor any revenues are received by <br />
         		<a id="pl.33.12"></a><var>33.12</var>the organization shall not be considered a revenue-producing activity.<br />
         		<a id="pl.33.13"></a><var>33.13</var>&nbsp;&nbsp;&nbsp;&nbsp;The organization shall maintain records of its charitable contributions and donations <br />
         		<a id="pl.33.14"></a><var>33.14</var>and of public meetings and events held on the property and make them available upon <br />
         		<a id="pl.33.15"></a><var>33.15</var>request any time to the assessor to ensure eligibility. An organization meeting the <br />
         		<a id="pl.33.16"></a><var>33.16</var>requirement under item (ii) must file an application by May 1 with the assessor for <br />
         		<a id="pl.33.17"></a><var>33.17</var>eligibility for the current year's assessment. The commissioner shall prescribe a uniform <br />
         		<a id="pl.33.18"></a><var>33.18</var>application form and instructions;<br />
         		<a id="pl.33.19"></a><var>33.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) postsecondary student housing of not more than one acre of land that is owned by <br />
         		<a id="pl.33.20"></a><var>33.20</var>a nonprofit corporation organized under chapter 317A and is used exclusively by a student <br />
         		<a id="pl.33.21"></a><var>33.21</var>cooperative, sorority, or fraternity for on-campus housing or housing located within two <br />
         		<a id="pl.33.22"></a><var>33.22</var>miles of the border of a college campus;<br />
         		<a id="pl.33.23"></a><var>33.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(5)(i) manufactured home parks as defined in section 
         <statute_ref>327.14, subdivision 3</statute_ref>, <br />
         		<a id="pl.33.24"></a><var>33.24</var>excluding manufactured home parks described in section 
         <statute_ref>273.124, subdivision 3a</statute_ref>, and (ii) <br />
         		<a id="pl.33.25"></a><var>33.25</var>manufactured home parks as defined in section 
         <statute_ref>327.14, subdivision 3</statute_ref>, that are described in <br />
         		<a id="pl.33.26"></a><var>33.26</var>section 
         <statute_ref>273.124, subdivision 3a</statute_ref>;<br />
         		<a id="pl.33.27"></a><var>33.27</var>&nbsp;&nbsp;&nbsp;&nbsp;(6) real property that is actively and exclusively devoted to indoor fitness, health, <br />
         		<a id="pl.33.28"></a><var>33.28</var>social, recreational, and related uses, is owned and operated by a not-for-profit corporation, <br />
         		<a id="pl.33.29"></a><var>33.29</var>and is located within the metropolitan area as defined in section 
         <statute_ref>473.121, subdivision 2</statute_ref>;<br />
         		<a id="pl.33.30"></a><var>33.30</var>&nbsp;&nbsp;&nbsp;&nbsp;(7) a leased or privately owned noncommercial aircraft storage hangar not exempt <br />
         		<a id="pl.33.31"></a><var>33.31</var>under section 
         <statute_ref>272.01, subdivision 2</statute_ref>, and the land on which it is located, provided that:<br />
         		<a id="pl.33.32"></a><var>33.32</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) the land is on an airport owned or operated by a city, town, county, Metropolitan <br />
         		<a id="pl.33.33"></a><var>33.33</var>Airports Commission, or group thereof; and<br />
         		<a id="pl.33.34"></a><var>33.34</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) the land lease, or any ordinance or signed agreement restricting the use of the <br />
         		<a id="pl.33.35"></a><var>33.35</var>leased premise, prohibits commercial activity performed at the hangar.<br />
         		<a id="pl.34.1"></a><var>34.1</var>&nbsp;&nbsp;&nbsp;&nbsp;If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must <br />
         		<a id="pl.34.2"></a><var>34.2</var>be filed by the new owner with the assessor of the county where the property is located <br />
         		<a id="pl.34.3"></a><var>34.3</var>within 60 days of the sale;<br />
         		<a id="pl.34.4"></a><var>34.4</var>&nbsp;&nbsp;&nbsp;&nbsp;(8) a privately owned noncommercial aircraft storage hangar not exempt under <br />
         		<a id="pl.34.5"></a><var>34.5</var>section 
         <statute_ref>272.01, subdivision 2</statute_ref>, and the land on which it is located, provided that:<br />
         		<a id="pl.34.6"></a><var>34.6</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) the land abuts a public airport; and<br />
         		<a id="pl.34.7"></a><var>34.7</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) the owner of the aircraft storage hangar provides the assessor with a signed <br />
         		<a id="pl.34.8"></a><var>34.8</var>agreement restricting the use of the premises, prohibiting commercial use or activity <br />
         		<a id="pl.34.9"></a><var>34.9</var>performed at the hangar; and<br />
         		<a id="pl.34.10"></a><var>34.10</var>&nbsp;&nbsp;&nbsp;&nbsp;(9) residential real estate, a portion of which is used by the owner for homestead <br />
         		<a id="pl.34.11"></a><var>34.11</var>purposes, and that is also a place of lodging, if all of the following criteria are met:<br />
         		<a id="pl.34.12"></a><var>34.12</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) rooms are provided for rent to transient guests that generally stay for periods <br />
         		<a id="pl.34.13"></a><var>34.13</var>of 14 or fewer days;<br />
         		<a id="pl.34.14"></a><var>34.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) meals are provided to persons who rent rooms, the cost of which is incorporated <br />
         		<a id="pl.34.15"></a><var>34.15</var>in the basic room rate;<br />
         		<a id="pl.34.16"></a><var>34.16</var>&nbsp;&nbsp;&nbsp;&nbsp;(iii) meals are not provided to the general public except for special events on fewer <br />
         		<a id="pl.34.17"></a><var>34.17</var>than seven days in the calendar year preceding the year of the assessment; and<br />
         		<a id="pl.34.18"></a><var>34.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(iv) the owner is the operator of the property.<br />
         		<a id="pl.34.19"></a><var>34.19</var>The market value subject to the 4c classification under this clause is limited to five rental <br />
         		<a id="pl.34.20"></a><var>34.20</var>units. Any rental units on the property in excess of five, must be valued and assessed as <br />
         		<a id="pl.34.21"></a><var>34.21</var>class 3a. The portion of the property used for purposes of a homestead by the owner must <br />
         		<a id="pl.34.22"></a><var>34.22</var>be classified as class 1a property under subdivision 22;<br />
         		<a id="pl.34.23"></a><var>34.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(10) real property up to a maximum of three acres and operated as a restaurant <br />
         		<a id="pl.34.24"></a><var>34.24</var>as defined under section 
         <statute_ref>157.15, subdivision 12</statute_ref>, provided it: (A) is located on a lake <br />
         		<a id="pl.34.25"></a><var>34.25</var>as defined under section 
         <statute_ref>103G.005, subdivision 15</statute_ref>, paragraph (a), clause (3); and (B) <br />
         		<a id="pl.34.26"></a><var>34.26</var>is either devoted to commercial purposes for not more than 250 consecutive days, or <br />
         		<a id="pl.34.27"></a><var>34.27</var>receives at least 60 percent of its annual gross receipts from business conducted during <br />
         		<a id="pl.34.28"></a><var>34.28</var>four consecutive months. Gross receipts from the sale of alcoholic beverages must be <br />
         		<a id="pl.34.29"></a><var>34.29</var>included in determining the property's qualification under subitem (B). The property's <br />
         		<a id="pl.34.30"></a><var>34.30</var>primary business must be as a restaurant and not as a bar. Gross receipts from gift shop <br />
         		<a id="pl.34.31"></a><var>34.31</var>sales located on the premises must be excluded. Owners of real property desiring 4c <br />
         		<a id="pl.34.32"></a><var>34.32</var>classification under this clause must submit an annual declaration to the assessor by <br />
         		<a id="pl.34.33"></a><var>34.33</var>February 1 of the current assessment year, based on the property's relevant information for <br />
         		<a id="pl.34.34"></a><var>34.34</var>the preceding assessment year;<br />
         		<a id="pl.34.35"></a><var>34.35</var>(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used <br />
         		<a id="pl.34.36"></a><var>34.36</var>as a marina, as defined in section 
         <statute_ref>86A.20, subdivision 5</statute_ref>, which is made accessible to <br />
         		<a id="pl.35.1"></a><var>35.1</var>the public and devoted to recreational use for marina services. The marina owner must <br />
         		<a id="pl.35.2"></a><var>35.2</var>annually provide evidence to the assessor that it provides services, including lake or river <br />
         		<a id="pl.35.3"></a><var>35.3</var>access to the public by means of an access ramp or other facility that is either located on <br />
         		<a id="pl.35.4"></a><var>35.4</var>the property of the marina or at a publicly owned site that abuts the property of the marina. <br />
         		<a id="pl.35.5"></a><var>35.5</var>No more than 800 feet of lakeshore may be included in this classification. Buildings used <br />
         		<a id="pl.35.6"></a><var>35.6</var>in conjunction with a marina for marina services, including but not limited to buildings <br />
         		<a id="pl.35.7"></a><var>35.7</var>used to provide food and beverage services, fuel, boat repairs, or the sale of bait or fishing <br />
         		<a id="pl.35.8"></a><var>35.8</var>tackle, are classified as class 3a property; and<br />
         		<a id="pl.35.9"></a><var>35.9</var>(12) real and personal property devoted to noncommercial temporary and seasonal <br />
         		<a id="pl.35.10"></a><var>35.10</var>residential occupancy for recreation purposes.<br />
         		<a id="pl.35.11"></a><var>35.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Class 4c property has a class rate of 1.5 percent of market value, except that (i) each <br />
         		<a id="pl.35.12"></a><var>35.12</var>parcel of noncommercial seasonal residential recreational property under clause (12) <br />
         		<a id="pl.35.13"></a><var>35.13</var>has the same class rates as class 4bb property, (ii) manufactured home parks assessed <br />
         		<a id="pl.35.14"></a><var>35.14</var>under clause (5), item (i), have the same class rate as class 4b property, and the market <br />
         		<a id="pl.35.15"></a><var>35.15</var>value of manufactured home parks assessed under clause (5), item (ii), has the same class <br />
         		<a id="pl.35.16"></a><var>35.16</var>rate as class 4d property if more than 50 percent of the lots in the park are occupied by <br />
         		<a id="pl.35.17"></a><var>35.17</var>shareholders in the cooperative corporation or association and a class rate of one percent if <br />
         		<a id="pl.35.18"></a><var>35.18</var>50 percent or less of the lots are so occupied, (iii) commercial-use seasonal residential <br />
         		<a id="pl.35.19"></a><var>35.19</var>recreational property and marina recreational land as described in clause (11), has a <br />
         		<a id="pl.35.20"></a><var>35.20</var>class rate of one percent for the first $500,000 of market value, and 1.25 percent for the <br />
         		<a id="pl.35.21"></a><var>35.21</var>remaining market value, (iv) the market value of property described in clause (4) has a <br />
         		<a id="pl.35.22"></a><var>35.22</var>class rate of one percent, (v) the market value of property described in clauses (2), (6), and <br />
         		<a id="pl.35.23"></a><var>35.23</var>(10) has a class rate of 1.25 percent, and (vi) that portion of the market value of property <br />
         		<a id="pl.35.24"></a><var>35.24</var>in clause (9) qualifying for class 4c property has a class rate of 1.25 percent.<br />
         		<a id="pl.35.25"></a><var>35.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(e) Class 4d property is qualifying low-income rental housing certified to the assessor <br />
         		<a id="pl.35.26"></a><var>35.26</var>by the Housing Finance Agency under section 
         <statute_ref>273.128, subdivision 3</statute_ref>. If only a portion <br />
         		<a id="pl.35.27"></a><var>35.27</var>of the units in the building qualify as low-income rental housing units as certified under <br />
         		<a id="pl.35.28"></a><var>35.28</var>section 
         <statute_ref>273.128, subdivision 3</statute_ref>, only the proportion of qualifying units to the total number <br />
         		<a id="pl.35.29"></a><var>35.29</var>of units in the building qualify for class 4d. The remaining portion of the building shall be <br />
         		<a id="pl.35.30"></a><var>35.30</var>classified by the assessor based upon its use. Class 4d also includes the same proportion of <br />
         		<a id="pl.35.31"></a><var>35.31</var>land as the qualifying low-income rental housing units are to the total units in the building. <br />
         		<a id="pl.35.32"></a><var>35.32</var>For all properties qualifying as class 4d, the market value determined by the assessor must <br />
         		<a id="pl.35.33"></a><var>35.33</var>be based on the normal approach to value using normal unrestricted rents.<br />
         		<a id="pl.35.34"></a><var>35.34</var>&nbsp;&nbsp;&nbsp;&nbsp;Class 4d property has a class rate of 0.75 percent.<br />
         		<a id="pl.35.35"></a><var>35.35</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2013 and <br />
         		<a id="pl.35.36"></a><var>35.36</var>thereafter.<br />
         		<br />
         		<a id="bill.2.9.0"></a><a id="pl.36.1"></a><var>36.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 9. Minnesota Statutes 2010, section 273.1315, subdivision 1, is amended to read:<br />
         		<a id="pl.36.2"></a><var>36.2</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Class 1b homestead declaration before 2009.</b> Any property owner <br />
         		<a id="pl.36.3"></a><var>36.3</var>seeking classification and assessment of the owner's homestead as class 1b property <br />
         		<a id="pl.36.4"></a><var>36.4</var>pursuant to section 
         <statute_ref>273.13, subdivision 22</statute_ref>, paragraph (b), on or before October 1, 2008, <br />
         		<a id="pl.36.5"></a><var>36.5</var>shall file with the commissioner of revenue a 1b homestead declaration, on a form <br />
         		<a id="pl.36.6"></a><var>36.6</var>prescribed by the commissioner. The declaration shall contain the following information:<br />
         		<a id="pl.36.7"></a><var>36.7</var>&nbsp;&nbsp;&nbsp;&nbsp;(a) (1) the information necessary to verify that on or before June 30 of the filing year, <br />
         		<a id="pl.36.8"></a><var>36.8</var>the property owner or the owner's spouse satisfies the requirements of section 
         <statute_ref>273.13, <br />
            		<a id="pl.36.9"></a><var>36.9</var>subdivision 22
         </statute_ref>, paragraph (b), for 1b classification; and<br />
         		<a id="pl.36.10"></a><var>36.10</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) (2) any additional information prescribed by the commissioner.<br />
         		<a id="pl.36.11"></a><var>36.11</var>&nbsp;&nbsp;&nbsp;&nbsp;The declaration must be filed on or before October 1 to be effective for property <br />
         		<a id="pl.36.12"></a><var>36.12</var>taxes payable during the succeeding calendar year. The declaration and any supplementary <br />
         		<a id="pl.36.13"></a><var>36.13</var>information received from the property owner pursuant to this subdivision shall be subject <br />
         		<a id="pl.36.14"></a><var>36.14</var>to chapter 270B. If approved by the commissioner, the declaration remains in effect until <br />
         		<a id="pl.36.15"></a><var>36.15</var>the property no longer qualifies under section 
         <statute_ref>273.13, subdivision 22</statute_ref>, paragraph (b). <br />
         		<a id="pl.36.16"></a><var>36.16</var>Failure to notify the commissioner within 30 days that the property no longer qualifies <br />
         		<a id="pl.36.17"></a><var>36.17</var>under that paragraph because of a sale, change in occupancy, or change in the status <br />
         		<a id="pl.36.18"></a><var>36.18</var>or condition of an occupant shall result in the penalty provided in section 273.124, <br />
         		<a id="pl.36.19"></a><var>36.19</var>subdivision 13 13b, computed on the basis of the class 1b benefits for the property, and <br />
         		<a id="pl.36.20"></a><var>36.20</var>the property shall lose its current class 1b classification.<br />
         		<a id="pl.36.21"></a><var>36.21</var>&nbsp;&nbsp;&nbsp;&nbsp;The commissioner shall provide to the assessor on or before November 1 a listing <br />
         		<a id="pl.36.22"></a><var>36.22</var>of the parcels of property qualifying for 1b classification.<br />
         		<a id="pl.36.23"></a><var>36.23</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.2.10.0"></a><a id="pl.36.24"></a><var>36.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 10. Minnesota Statutes 2010, section 273.1315, subdivision 2, is amended to read:<br />
         		<a id="pl.36.25"></a><var>36.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Class 1b homestead declaration 2009 and thereafter.</b> (a) Any property <br />
         		<a id="pl.36.26"></a><var>36.26</var>owner seeking classification and assessment of the owner's homestead as class 1b property <br />
         		<a id="pl.36.27"></a><var>36.27</var>pursuant to section 
         <statute_ref>273.13, subdivision 22</statute_ref>, paragraph (b), after October 1, 2008, shall file <br />
         		<a id="pl.36.28"></a><var>36.28</var>with the county assessor a class 1b homestead declaration, on a form prescribed by the <br />
         		<a id="pl.36.29"></a><var>36.29</var>commissioner of revenue. The declaration must contain the following information:<br />
         		<a id="pl.36.30"></a><var>36.30</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) the information necessary to verify that, on or before June 30 of the filing year, <br />
         		<a id="pl.36.31"></a><var>36.31</var>the property owner or the owner's spouse satisfies the requirements of section 
         <statute_ref>273.13</statute_ref>, <br />
         		<a id="pl.36.32"></a><var>36.32</var>subdivision 22, paragraph (b), for class 1b classification; and<br />
         		<a id="pl.36.33"></a><var>36.33</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) any additional information prescribed by the commissioner.<br />
         		<a id="pl.36.34"></a><var>36.34</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) The declaration must be filed on or before October 1 to be effective for property <br />
         		<a id="pl.36.35"></a><var>36.35</var>taxes payable during the succeeding calendar year. The Social Security numbers and <br />
         		<a id="pl.37.1"></a><var>37.1</var>income and medical information received from the property owner pursuant to this <br />
         		<a id="pl.37.2"></a><var>37.2</var>subdivision are private data on individuals as defined in section 
         <statute_ref>13.02</statute_ref>. If approved by <br />
         		<a id="pl.37.3"></a><var>37.3</var>the assessor, the declaration remains in effect until the property no longer qualifies under <br />
         		<a id="pl.37.4"></a><var>37.4</var>section 
         <statute_ref>273.13, subdivision 22</statute_ref>, paragraph (b). Failure to notify the assessor within 30 <br />
         		<a id="pl.37.5"></a><var>37.5</var>days that the property no longer qualifies under that paragraph because of a sale, change in <br />
         		<a id="pl.37.6"></a><var>37.6</var>occupancy, or change in the status or condition of an occupant shall result in the penalty <br />
         		<a id="pl.37.7"></a><var>37.7</var>provided in section 
         <statute_ref>273.124, subdivision 13 13b</statute_ref>, computed on the basis of the class 1b <br />
         		<a id="pl.37.8"></a><var>37.8</var>benefits for the property, and the property shall lose its current class 1b classification.<br />
         		<a id="pl.37.9"></a><var>37.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.2.11.0"></a><a id="pl.37.10"></a><var>37.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 11. Minnesota Statutes 2010, section 273.19, subdivision 1, is amended to read:<br />
         		<a id="pl.37.11"></a><var>37.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Tax-exempt property; lease.</b> Except as provided in subdivision 3 or <br />
         		<a id="pl.37.12"></a><var>37.12</var>4, tax-exempt property held under a lease for a term of at least one year, and not taxable <br />
         		<a id="pl.37.13"></a><var>37.13</var>under section 
         <statute_ref>272.01, subdivision 2</statute_ref>, or under a contract for the purchase thereof, shall <br />
         		<a id="pl.37.14"></a><var>37.14</var>be considered, for all purposes of taxation, as the property of the person holding it. In <br />
         		<a id="pl.37.15"></a><var>37.15</var>this subdivision, "tax-exempt property" means property owned by the United States, the <br />
         		<a id="pl.37.16"></a><var>37.16</var>state or any of its political subdivisions, a school, or any religious, scientific, or benevolent <br />
         		<a id="pl.37.17"></a><var>37.17</var>society or institution, incorporated or unincorporated, or any corporation whose property <br />
         		<a id="pl.37.18"></a><var>37.18</var>is not taxed in the same manner as other property. This subdivision does not apply to <br />
         		<a id="pl.37.19"></a><var>37.19</var>property exempt from taxation under section 
         <statute_ref>272.01, subdivision 2</statute_ref>, paragraph (b), clauses <br />
         		<a id="pl.37.20"></a><var>37.20</var>(2), (3), and (4), or to property exempt from taxation under section 
         <statute_ref>272.0213</statute_ref>.<br />
         		<a id="pl.37.21"></a><var>37.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.2.12.0"></a><a id="pl.37.22"></a><var>37.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 12. Minnesota Statutes 2010, section 273.372, subdivision 4, is amended to read:<br />
         		<a id="pl.37.23"></a><var>37.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Administrative appeals.</b> (a) Companies that submit the reports under <br />
         		<a id="pl.37.24"></a><var>37.24</var>section 
         <statute_ref>270.82</statute_ref> or 
         <statute_ref>273.371</statute_ref> by the date specified in that section, or by the date specified by <br />
         		<a id="pl.37.25"></a><var>37.25</var>the commissioner in an extension, may appeal administratively to the commissioner prior <br />
         		<a id="pl.37.26"></a><var>37.26</var>to bringing an action in court by submitting.<br />
         		<a id="pl.37.27"></a><var>37.27</var>(b) Companies that must submit reports under section 270.82 must submit a written <br />
         		<a id="pl.37.28"></a><var>37.28</var>request with to the commissioner for a conference within ten days after the date of the <br />
         		<a id="pl.37.29"></a><var>37.29</var>commissioner's valuation certification or notice to the company, or by May June 15, <br />
         		<a id="pl.37.30"></a><var>37.30</var>whichever is earlier.<br />
         		<a id="pl.37.31"></a><var>37.31</var>(c) Companies that submit reports under section 273.371 must submit a written <br />
         		<a id="pl.37.32"></a><var>37.32</var>request to the commissioner for a conference within ten days after the date of the <br />
         		<a id="pl.38.1"></a><var>38.1</var>commissioner's valuation certification or notice to the company, or by July 1, whichever <br />
         		<a id="pl.38.2"></a><var>38.2</var>is earlier.<br />
         		<a id="pl.38.3"></a><var>38.3</var>(d) The commissioner shall conduct the conference upon the commissioner's entire <br />
         		<a id="pl.38.4"></a><var>38.4</var>files and records and such further information as may be offered. The conference must <br />
         		<a id="pl.38.5"></a><var>38.5</var>be held no later than 20 days after the date of the commissioner's valuation certification <br />
         		<a id="pl.38.6"></a><var>38.6</var>or notice to the company, or by the date specified by the commissioner in an extension. <br />
         		<a id="pl.38.7"></a><var>38.7</var>Within 60 days after the conference the commissioner shall make a final determination of <br />
         		<a id="pl.38.8"></a><var>38.8</var>the matter and shall notify the company promptly of the determination. The conference <br />
         		<a id="pl.38.9"></a><var>38.9</var>is not a contested case hearing.<br />
         		<a id="pl.38.10"></a><var>38.10</var>(b) (e) In addition to the opportunity for a conference under paragraph (a), the <br />
         		<a id="pl.38.11"></a><var>38.11</var>commissioner shall also provide the railroad and utility companies the opportunity to <br />
         		<a id="pl.38.12"></a><var>38.12</var>discuss any questions or concerns relating to the values established by the commissioner <br />
         		<a id="pl.38.13"></a><var>38.13</var>through certification or notice in a less formal manner. This does not change or modify <br />
         		<a id="pl.38.14"></a><var>38.14</var>the deadline for requesting a conference under paragraph (a), the deadline in section <br />
         		
         <statute_ref><a id="pl.38.15"></a><var>38.15</var>271.06
         </statute_ref> for appealing an order of the commissioner, or the deadline in section 
         <statute_ref>278.01</statute_ref> for <br />
         		<a id="pl.38.16"></a><var>38.16</var>appealing property taxes in court.<br />
         		<a id="pl.38.17"></a><var>38.17</var><b>EFFECTIVE DATE.</b>This section is effective beginning with assessment year 2013.<br />
         		<br />
         		<a id="bill.2.13.0"></a><a id="pl.38.18"></a><var>38.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 13. Minnesota Statutes 2010, section 273.39, is amended to read:<br />
         		<a id="pl.38.19"></a><var>38.19</var><b>273.39 RURAL AREA.</b><br />
         		<a id="pl.38.20"></a><var>38.20</var>As used in sections 
         <statute_ref>273.39</statute_ref> to 
         <statute_ref>273.41</statute_ref>, the term "rural area" shall be deemed to mean <br />
         		<a id="pl.38.21"></a><var>38.21</var>any area of the state not included within the boundaries of any incorporated statutory <br />
         		<a id="pl.38.22"></a><var>38.22</var>city or home rule charter city, and such term shall be deemed to include both farm and <br />
         		<a id="pl.38.23"></a><var>38.23</var>nonfarm population thereof.<br />
         		<a id="pl.38.24"></a><var>38.24</var><b>EFFECTIVE DATE.</b>This section is effective beginning with assessment year 2012.<br />
         		<br />
         		<a id="bill.2.14.0"></a><a id="pl.38.25"></a><var>38.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 14. Minnesota Statutes 2010, section 279.06, subdivision 1, is amended to read:<br />
         		<a id="pl.38.26"></a><var>38.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>List and notice.</b> Within five days after the filing of such list, the <br />
         		<a id="pl.38.27"></a><var>38.27</var>court administrator shall return a copy thereof to the county auditor, with a notice prepared <br />
         		<a id="pl.38.28"></a><var>38.28</var>and signed by the court administrator, and attached thereto, which may be substantially in <br />
         		<a id="pl.38.29"></a><var>38.29</var>the following form:<br />
         		
         <table>
            <col width="50px"></col>
            <col width="15"></col>
            <col width="5"></col>
            <col width="20"></col>
            <col width="22.5"></col>
            <tr>
               <td><a id="pl.38.30"></a><var>38.30</var><br />
                  		
               </td>
               <td>State of Minnesota<br />
                  		
               </td>
               <td>)<br />
                  		
               </td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.38.31"></a><var>38.31</var><br />
                  		
               </td>
               <td></td>
               <td>) ss.<br />
                  		
               </td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.38.32"></a><var>38.32</var><br />
                  		
               </td>
               <td>County of <br />
                  		<span>
                     							.....
                     						</span></td>
               <td>)<br />
                  		
               </td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.39.1"></a><var>39.1</var><br />
                  		
               </td>
               <td></td>
               <td></td>
               <td></td>
               <td align="right">District Court<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.39.2"></a><var>39.2</var><br />
                  		
               </td>
               <td></td>
               <td></td>
               <td></td>
               <td align="right"><span>
                     							.....
                     						</span>Judicial District.<br />
                  		
               </td>
            </tr>
         </table><a id="pl.39.3"></a><var>39.3</var>The state of Minnesota, to all persons, companies, or corporations who have or claim <br />
         		<a id="pl.39.4"></a><var>39.4</var>any estate, right, title, or interest in, claim to, or lien upon, any of the several parcels of <br />
         		<a id="pl.39.5"></a><var>39.5</var>land described in the list hereto attached:<br />
         		<a id="pl.39.6"></a><var>39.6</var>The list of taxes and penalties on real property for the county of ............................... <br />
         		<a id="pl.39.7"></a><var>39.7</var>remaining delinquent on the first Monday in January, ......., has been filed in the office of <br />
         		<a id="pl.39.8"></a><var>39.8</var>the court administrator of the district court of said county, of which that hereto attached is a <br />
         		<a id="pl.39.9"></a><var>39.9</var>copy. Therefore, you, and each of you, are hereby required to file in the office of said court <br />
         		<a id="pl.39.10"></a><var>39.10</var>administrator, on or before the 20th day after the publication of this notice and list, your <br />
         		<a id="pl.39.11"></a><var>39.11</var>answer, in writing, setting forth any objection or defense you may have to the taxes, or any <br />
         		<a id="pl.39.12"></a><var>39.12</var>part thereof, upon any parcel of land described in the list, in, to, or on which you have or <br />
         		<a id="pl.39.13"></a><var>39.13</var>claim any estate, right, title, interest, claim, or lien, and, in default thereof, judgment will <br />
         		<a id="pl.39.14"></a><var>39.14</var>be entered against such parcel of land for the taxes on such list appearing against it, and <br />
         		<a id="pl.39.15"></a><var>39.15</var>for all penalties, interest, and costs. Based upon said judgment, the land shall be sold to <br />
         		<a id="pl.39.16"></a><var>39.16</var>the state of Minnesota on the second Monday in May, ....... The period of redemption for <br />
         		<a id="pl.39.17"></a><var>39.17</var>all lands sold to the state at a tax judgment sale shall be three years from the date of sale to <br />
         		<a id="pl.39.18"></a><var>39.18</var>the state of Minnesota if the land is within an incorporated area unless it is:<br />
         		<a id="pl.39.19"></a><var>39.19</var>(a) nonagricultural homesteaded land as defined in section 
         <statute_ref>273.13, subdivision 22</statute_ref>;<br />
         		<a id="pl.39.20"></a><var>39.20</var>(b) homesteaded agricultural land as defined in section 
         <statute_ref>273.13, subdivision 23</statute_ref>, <br />
         		<a id="pl.39.21"></a><var>39.21</var>paragraph (a);<br />
         		<a id="pl.39.22"></a><var>39.22</var>(c) seasonal residential recreational land as defined in section 
         <statute_ref>273.13, subdivisions <br />
            		<a id="pl.39.23"></a><var>39.23</var>22, paragraph (c)
         </statute_ref>, and 25, paragraph (d), clause (1), in which event the period of <br />
         		<a id="pl.39.24"></a><var>39.24</var>redemption is five years from the date of sale to the state of Minnesota;<br />
         		<a id="pl.39.25"></a><var>39.25</var>(d) abandoned property and pursuant to section 
         <statute_ref>281.173</statute_ref> a court order has been <br />
         		<a id="pl.39.26"></a><var>39.26</var>entered shortening the redemption period to five weeks; or<br />
         		<a id="pl.39.27"></a><var>39.27</var>(e) vacant property as described under section 
         <statute_ref>281.174, subdivision 2</statute_ref>, and for which <br />
         		<a id="pl.39.28"></a><var>39.28</var>a court order is entered shortening the redemption period under section 
         <statute_ref>281.174</statute_ref>.<br />
         		<a id="pl.39.29"></a><var>39.29</var>The period of redemption for all other lands sold to the state at a tax judgment sale <br />
         		<a id="pl.39.30"></a><var>39.30</var>shall be five years from the date of sale.<br />
         		<a id="pl.39.31"></a><var>39.31</var>Inquiries as to the proceedings set forth above can be made to the county auditor of <br />
         		<a id="pl.39.32"></a><var>39.32</var>..... county whose address is ......<br />
         		
         <table>
            <col width="50px"></col>
            <col width="25"></col>
            <col width="40"></col>
            <tr>
               <td><a id="pl.39.33"></a><var>39.33</var><br />
                  		
               </td>
               <td></td>
               <td align="right">(Signed) <span>
                     							.....
                     						</span>,<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.39.34"></a><var>39.34</var><br />
                  		<a id="pl.39.35"></a><var>39.35</var><br />
                  		
               </td>
               <td></td>
               <td align="left">Court Administrator of the District Court of the<br />
                  		County of <br />
                  		<span>
                     							.....
                     						</span></td>
            </tr>
            <tr>
               <td><a id="pl.39.36"></a><var>39.36</var><br />
                  		
               </td>
               <td></td>
               <td align="left">(Here insert list.)<br />
                  		
               </td>
            </tr>
         </table><a id="pl.40.1"></a><var>40.1</var>The notice must contain a narrative description of the various periods to redeem <br />
         		<a id="pl.40.2"></a><var>40.2</var>specified in sections 281.17, 281.173, and 281.174, in the manner prescribed by the <br />
         		<a id="pl.40.3"></a><var>40.3</var>commissioner of revenue under subdivision 2.<br />
         		<a id="pl.40.4"></a><var>40.4</var>The list referred to in the notice shall be substantially in the following form:<br />
         		<a id="pl.40.5"></a><var>40.5</var>List of real property for the county of ......................., on which taxes remain <br />
         		<a id="pl.40.6"></a><var>40.6</var>delinquent on the first Monday in January, .......<br />
         		
         <div class="xtend_ce"><a id="pl.40.7"></a><var>40.7</var>Town of (Fairfield),<br />
            		
         </div><a id="pl.40.8"></a><var>40.8</var>Township (40), Range (20),<br />
         		
         <table>
            <col width="50px"></col>
            <col width="18.5"></col>
            <col width="18.5"></col>
            <col width="10"></col>
            <col width="9"></col>
            <col width="9"></col>
            <tr>
               <td><a id="pl.40.9"></a><var>40.9</var><br />
                  		<a id="pl.40.10"></a><var>40.10</var><br />
                  		<a id="pl.40.11"></a><var>40.11</var><br />
                  		<a id="pl.40.12"></a><var>40.12</var><br />
                  		<a id="pl.40.13"></a><var>40.13</var><br />
                  		<a id="pl.40.14"></a><var>40.14</var><br />
                  		<a id="pl.40.15"></a><var>40.15</var><br />
                  		<a id="pl.40.16"></a><var>40.16</var><br />
                  		
               </td>
               <td>Names (and Current <br />
                  		Filed Addresses) for <br />
                  		the Taxpayers and Fee <br />
                  		Owners and in Addition <br />
                  		Those Parties Who Have <br />
                  		Filed Their Addresses <br />
                  		Pursuant to section <br />
                  		
                  <statute_ref>276.041</statute_ref> <br />
                  		
               </td>
               <td align="center">Subdivision of<br />
                  		Section<br />
                  		
               </td>
               <td align="center">Section<br />
                  		
               </td>
               <td align="center">Tax Parcel<br />
                  		Number<br />
                  		
               </td>
               <td align="center">Total Tax <br />
                  		and Penalty<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.40.17"></a><var>40.17</var><br />
                  		
               </td>
               <td></td>
               <td align="center"></td>
               <td align="center"></td>
               <td align="center"></td>
               <td align="center">$ cts.<br />
                  		
               </td>
            </tr>
            <tr>
               <td></td>
               <td></td>
               <td align="center"></td>
               <td align="center"></td>
               <td align="center"></td>
               <td align="center"></td>
            </tr>
            <tr>
               <td><a id="pl.40.18"></a><var>40.18</var><br />
                  		<a id="pl.40.19"></a><var>40.19</var><br />
                  		
               </td>
               <td>John Jones (825 Fremont <br />
                  		Fairfield, MN 55000)<br />
                  		
               </td>
               <td align="center" valign="top">S.E. 1/4 of S.W. 1/4<br />
                  		
               </td>
               <td align="center" valign="top">10<br />
                  		
               </td>
               <td align="center" valign="top">23101<br />
                  		
               </td>
               <td align="center" valign="top">2.20<br />
                  		
               </td>
            </tr>
            <tr>
               <td></td>
               <td></td>
               <td align="center" valign="top"></td>
               <td align="center" valign="top"></td>
               <td align="center" valign="top"></td>
               <td align="center" valign="top"></td>
            </tr>
            <tr>
               <td><a id="pl.40.20"></a><var>40.20</var><br />
                  		<a id="pl.40.21"></a><var>40.21</var><br />
                  		<a id="pl.40.22"></a><var>40.22</var><br />
                  		<a id="pl.40.23"></a><var>40.23</var><br />
                  		<a id="pl.40.24"></a><var>40.24</var><br />
                  		<a id="pl.40.25"></a><var>40.25</var><br />
                  		<a id="pl.40.26"></a><var>40.26</var><br />
                  		<a id="pl.40.27"></a><var>40.27</var><br />
                  		<a id="pl.40.28"></a><var>40.28</var><br />
                  		<a id="pl.40.29"></a><var>40.29</var><br />
                  		<a id="pl.40.30"></a><var>40.30</var><br />
                  		<a id="pl.40.31"></a><var>40.31</var><br />
                  		<a id="pl.40.32"></a><var>40.32</var><br />
                  		<a id="pl.40.33"></a><var>40.33</var><br />
                  		<a id="pl.40.34"></a><var>40.34</var><br />
                  		<a id="pl.40.35"></a><var>40.35</var><br />
                  		<a id="pl.40.36"></a><var>40.36</var><br />
                  		<a id="pl.40.37"></a><var>40.37</var><br />
                  		<a id="pl.40.38"></a><var>40.38</var><br />
                  		
               </td>
               <td valign="top">Bruce Smith (2059 Hand <br />
                  		Fairfield, MN 55000) <br />
                  		and Fairfield State <br />
                  		Bank (100 Main Street <br />
                  		Fairfield, MN 55000)<br />
                  		
               </td>
               <td>That part of N.E. 1/4 <br />
                  		of S.W. 1/4 desc. as <br />
                  		follows: Beg. at the <br />
                  		S.E. corner of said N.E. <br />
                  		1/4 of S.W. 1/4; thence <br />
                  		N. along the E. line of <br />
                  		said N.E. 1/4 of S.W. <br />
                  		1/4 a distance of 600 <br />
                  		ft.; thence W. parallel <br />
                  		with the S. line of said <br />
                  		N.E. 1/4 of S.W. 1/4 <br />
                  		a distance of 600 ft.; <br />
                  		thence S. parallel with <br />
                  		said E. line a distance of <br />
                  		600 ft. to S. line of said <br />
                  		N.E. 1/4 of S.W. 1/4; <br />
                  		thence E. along said S. <br />
                  		line a distance of 600 ft. <br />
                  		to the point of beg.<br />
                  		
               </td>
               <td align="center" valign="top">21<br />
                  		
               </td>
               <td align="center" valign="top">33211<br />
                  		
               </td>
               <td align="center" valign="top">3.15<br />
                  		
               </td>
            </tr>
         </table><a id="pl.40.39"></a><var>40.39</var>As to platted property, the form of heading shall conform to circumstances and be <br />
         		<a id="pl.40.40"></a><var>40.40</var>substantially in the following form:<br />
         		
         <div class="xtend_ce"><a id="pl.40.41"></a><var>40.41</var>City of (Smithtown)<br />
            		
         </div><a id="pl.40.42"></a><var>40.42</var>Brown's Addition, or Subdivision<br />
         		
         <table>
            <col width="50px"></col>
            <col width="18.5"></col>
            <col width="18.5"></col>
            <col width="10"></col>
            <col width="9"></col>
            <col width="9"></col>
            <tr>
               <td><a id="pl.41.1"></a><var>41.1</var><br />
                  		<a id="pl.41.2"></a><var>41.2</var><br />
                  		<a id="pl.41.3"></a><var>41.3</var><br />
                  		<a id="pl.41.4"></a><var>41.4</var><br />
                  		<a id="pl.41.5"></a><var>41.5</var><br />
                  		<a id="pl.41.6"></a><var>41.6</var><br />
                  		<a id="pl.41.7"></a><var>41.7</var><br />
                  		<a id="pl.41.8"></a><var>41.8</var><br />
                  		
               </td>
               <td>Names (and Current <br />
                  		Filed Addresses) for <br />
                  		the Taxpayers and Fee <br />
                  		Owners and in Addition <br />
                  		Those Parties Who Have <br />
                  		Filed Their Addresses <br />
                  		Pursuant to section <br />
                  		
                  <statute_ref>276.041<br />
                     		
                  </statute_ref>
               </td>
               <td align="center">Lot<br />
                  		
               </td>
               <td align="center">Block<br />
                  		
               </td>
               <td align="center">Tax Parcel<br />
                  		Number<br />
                  		
               </td>
               <td align="center">Total Tax<br />
                  		and Penalty<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.41.9"></a><var>41.9</var><br />
                  		
               </td>
               <td></td>
               <td></td>
               <td></td>
               <td align="center"></td>
               <td align="center">$ cts.<br />
                  		
               </td>
            </tr>
            <tr>
               <td></td>
               <td></td>
               <td></td>
               <td></td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.41.10"></a><var>41.10</var><br />
                  		<a id="pl.41.11"></a><var>41.11</var><br />
                  		
               </td>
               <td>John Jones (825 Fremont <br />
                  		Fairfield, MN 55000)<br />
                  		
               </td>
               <td align="center" valign="top">15<br />
                  		
               </td>
               <td align="center" valign="top">9<br />
                  		
               </td>
               <td align="center" valign="top">58243<br />
                  		
               </td>
               <td align="center" valign="top">2.20<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.41.12"></a><var>41.12</var><br />
                  		<a id="pl.41.13"></a><var>41.13</var><br />
                  		<a id="pl.41.14"></a><var>41.14</var><br />
                  		<a id="pl.41.15"></a><var>41.15</var><br />
                  		<a id="pl.41.16"></a><var>41.16</var><br />
                  		
               </td>
               <td>Bruce Smith (2059 Hand <br />
                  		Fairfield, MN 55000) <br />
                  		and Fairfield State <br />
                  		Bank (100 Main Street <br />
                  		Fairfield, MN 55000)<br />
                  		
               </td>
               <td align="center" valign="top">16<br />
                  		
               </td>
               <td align="center" valign="top">9<br />
                  		
               </td>
               <td align="center" valign="top">58244<br />
                  		
               </td>
               <td align="center" valign="top">3.15<br />
                  		
               </td>
            </tr>
         </table><a id="pl.41.17"></a><var>41.17</var>The names, descriptions, and figures employed in parentheses in the above forms are <br />
         		<a id="pl.41.18"></a><var>41.18</var>merely for purposes of illustration.<br />
         		<a id="pl.41.19"></a><var>41.19</var>The name of the town, township, range or city, and addition or subdivision, as the <br />
         		<a id="pl.41.20"></a><var>41.20</var>case may be, shall be repeated at the head of each column of the printed lists as brought <br />
         		<a id="pl.41.21"></a><var>41.21</var>forward from the preceding column.<br />
         		<a id="pl.41.22"></a><var>41.22</var>Errors in the list shall not be deemed to be a material defect to affect the validity <br />
         		<a id="pl.41.23"></a><var>41.23</var>of the judgment and sale.<br />
         		<a id="pl.41.24"></a><var>41.24</var><b>EFFECTIVE DATE.</b>This section is effective for lists and notices required after <br />
         		<a id="pl.41.25"></a><var>41.25</var>December 31, 2012.<br />
         		<br />
         		<a id="bill.2.15.0"></a><a id="pl.41.26"></a><var>41.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 15. Minnesota Statutes 2010, section 290A.25, is amended to read:<br />
         		<a id="pl.41.27"></a><var>41.27</var><b>290A.25 VERIFICATION OF SOCIAL SECURITY NUMBERS.</b><br />
         		<a id="pl.41.28"></a><var>41.28</var>Annually, the commissioner of revenue shall furnish a list to the county assessor <br />
         		<a id="pl.41.29"></a><var>41.29</var>containing the names and Social Security numbers of persons who have applied for both <br />
         		<a id="pl.41.30"></a><var>41.30</var>homestead classification under section 
         <statute_ref>273.13</statute_ref> and a property tax refund as a renter <br />
         		<a id="pl.41.31"></a><var>41.31</var>under this chapter.<br />
         		<a id="pl.41.32"></a><var>41.32</var>Within 90 days of the notification, the county assessor shall investigate to determine <br />
         		<a id="pl.41.33"></a><var>41.33</var>if the homestead classification was improperly claimed. If the property owner does <br />
         		<a id="pl.41.34"></a><var>41.34</var>not qualify, the county assessor shall notify the county auditor who will determine the <br />
         		<a id="pl.41.35"></a><var>41.35</var>amount of homestead benefits that has been improperly allowed. For the purpose of this <br />
         		<a id="pl.41.36"></a><var>41.36</var>section, "homestead benefits" has the meaning given in section 
         <statute_ref>273.124, subdivision <br />
            		<a id="pl.41.37"></a><var>41.37</var>13
         </statute_ref>, paragraph (h) 13b. The county auditor shall send a notice to persons who owned the <br />
         		<a id="pl.41.38"></a><var>41.38</var>affected property at the time the homestead application related to the improper homestead <br />
         		<a id="pl.41.39"></a><var>41.39</var>was filed, demanding reimbursement of the homestead benefits plus a penalty equal to <br />
         		<a id="pl.42.1"></a><var>42.1</var>100 percent of the homestead benefits. The person notified may appeal the county's <br />
         		<a id="pl.42.2"></a><var>42.2</var>determination with the Minnesota Tax Court within 60 days of the date of the notice from <br />
         		<a id="pl.42.3"></a><var>42.3</var>the county as provided in section 
         <statute_ref>273.124, subdivision 13</statute_ref>, paragraph (h) 13b.<br />
         		<a id="pl.42.4"></a><var>42.4</var>If the amount of homestead benefits and penalty is not paid within 60 days, and if <br />
         		<a id="pl.42.5"></a><var>42.5</var>no appeal has been filed, the county auditor shall certify the amount of taxes and penalty <br />
         		<a id="pl.42.6"></a><var>42.6</var>to the county treasurer. The county treasurer will add interest to the unpaid homestead <br />
         		<a id="pl.42.7"></a><var>42.7</var>benefits and penalty amounts at the rate provided for delinquent personal property taxes <br />
         		<a id="pl.42.8"></a><var>42.8</var>for the period beginning 60 days after demand for payment was made until payment. If <br />
         		<a id="pl.42.9"></a><var>42.9</var>the person notified is the current owner of the property, the treasurer may add the total <br />
         		<a id="pl.42.10"></a><var>42.10</var>amount of benefits, penalty, interest, and costs to the real estate taxes otherwise payable on <br />
         		<a id="pl.42.11"></a><var>42.11</var>the property in the following year. If the person notified is not the current owner of the <br />
         		<a id="pl.42.12"></a><var>42.12</var>property, the treasurer may collect the amounts due under the Revenue Recapture Act in <br />
         		<a id="pl.42.13"></a><var>42.13</var>chapter 270A, or use any of the powers granted in sections 
         <statute_ref>277.20</statute_ref> and 
         <statute_ref>277.21</statute_ref> without <br />
         		<a id="pl.42.14"></a><var>42.14</var>exclusion, to enforce payment of the benefits, penalty, interest, and costs, as if those <br />
         		<a id="pl.42.15"></a><var>42.15</var>amounts were delinquent tax obligations of the person who owned the property at the time <br />
         		<a id="pl.42.16"></a><var>42.16</var>the application related to the improperly allowed homestead was filed. The treasurer may <br />
         		<a id="pl.42.17"></a><var>42.17</var>relieve a prior owner of personal liability for the benefits, penalty, interest, and costs, and <br />
         		<a id="pl.42.18"></a><var>42.18</var>instead extend those amounts on the tax lists against the property for taxes payable in the <br />
         		<a id="pl.42.19"></a><var>42.19</var>following year to the extent that the current owner agrees in writing.<br />
         		<a id="pl.42.20"></a><var>42.20</var>Any amount of homestead benefits recovered by the county from the property owner <br />
         		<a id="pl.42.21"></a><var>42.21</var>shall be distributed to the county, city or town, and school district where the property is <br />
         		<a id="pl.42.22"></a><var>42.22</var>located in the same proportion that each taxing district's levy was to the total of the three <br />
         		<a id="pl.42.23"></a><var>42.23</var>taxing districts' levy for the current year. Any amount recovered attributable to taconite <br />
         		<a id="pl.42.24"></a><var>42.24</var>homestead credit shall be transmitted to the St. Louis County auditor to be deposited in <br />
         		<a id="pl.42.25"></a><var>42.25</var>the taconite property tax relief account. Any amount recovered that is attributable to <br />
         		<a id="pl.42.26"></a><var>42.26</var>supplemental homestead credit is to be transmitted to the commissioner of revenue for <br />
         		<a id="pl.42.27"></a><var>42.27</var>deposit in the general fund of the state treasury. The total amount of penalty collected <br />
         		<a id="pl.42.28"></a><var>42.28</var>must be deposited in the county general fund.<br />
         		<a id="pl.42.29"></a><var>42.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.2.16.0"></a><a id="pl.42.30"></a><var>42.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 16. Minnesota Statutes 2010, section 290B.04, subdivision 2, is amended to read:<br />
         		<a id="pl.42.31"></a><var>42.31</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Approval; recording.</b> The commissioner shall approve all initial <br />
         		<a id="pl.42.32"></a><var>42.32</var>applications that qualify under this chapter and shall notify qualifying homeowners on or <br />
         		<a id="pl.42.33"></a><var>42.33</var>before December 1. The commissioner may investigate the facts or require confirmation <br />
         		<a id="pl.42.34"></a><var>42.34</var>in regard to an application. The commissioner shall record or file a notice of qualification <br />
         		<a id="pl.42.35"></a><var>42.35</var>for deferral, including the names of the qualifying homeowners and a legal description <br />
         		<a id="pl.43.1"></a><var>43.1</var>of the property, in the office of the county recorder, or registrar of titles, whichever is <br />
         		<a id="pl.43.2"></a><var>43.2</var>applicable, in the county where the qualifying property is located. The notice must state <br />
         		<a id="pl.43.3"></a><var>43.3</var>that it serves as a notice of lien and that it includes deferrals under this section for future <br />
         		<a id="pl.43.4"></a><var>43.4</var>years. The commissioner shall prescribe the form of the notice. Execution of the notice <br />
         		<a id="pl.43.5"></a><var>43.5</var>by the original or facsimile signature of the commissioner or a delegate entitles them to <br />
         		<a id="pl.43.6"></a><var>43.6</var>be recorded, and no other attestation, certification, or acknowledgment is necessary. The <br />
         		<a id="pl.43.7"></a><var>43.7</var>homeowner shall pay the recording or filing fees for the notice, which, notwithstanding <br />
         		<a id="pl.43.8"></a><var>43.8</var>section 
         <statute_ref>357.18</statute_ref>, shall be paid by the homeowner at the time of satisfaction of the lien.<br />
         		<a id="pl.43.9"></a><var>43.9</var><b>EFFECTIVE DATE.</b>This section is effective for notices that are both executed <br />
         		<a id="pl.43.10"></a><var>43.10</var>and recorded after June 30, 2012.<br />
         		<br />
         		<a id="bill.2.17.0"></a><a id="pl.43.11"></a><var>43.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 17. Minnesota Statutes 2011 Supplement, section 373.01, subdivision 1, is <br />
         		<a id="pl.43.12"></a><var>43.12</var>amended to read:<br />
         		<a id="pl.43.13"></a><var>43.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Public corporation; listed powers.</b> (a) Each county is a body politic <br />
         		<a id="pl.43.14"></a><var>43.14</var>and corporate and may:<br />
         		<a id="pl.43.15"></a><var>43.15</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) Sue and be sued.<br />
         		<a id="pl.43.16"></a><var>43.16</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) Acquire and hold real and personal property for the use of the county, and lands <br />
         		<a id="pl.43.17"></a><var>43.17</var>sold for taxes as provided by law.<br />
         		<a id="pl.43.18"></a><var>43.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) Purchase and hold for the benefit of the county real estate sold by virtue of <br />
         		<a id="pl.43.19"></a><var>43.19</var>judicial proceedings, to which the county is a party.<br />
         		<a id="pl.43.20"></a><var>43.20</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) Sell, lease, and convey real or personal estate owned by the county, and give <br />
         		<a id="pl.43.21"></a><var>43.21</var>contracts or options to sell, lease, or convey it, and make orders respecting it as deemed <br />
         		<a id="pl.43.22"></a><var>43.22</var>conducive to the interests of the county's inhabitants.<br />
         		<a id="pl.43.23"></a><var>43.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) Make all contracts and do all other acts in relation to the property and concerns <br />
         		<a id="pl.43.24"></a><var>43.24</var>of the county necessary to the exercise of its corporate powers.<br />
         		<a id="pl.43.25"></a><var>43.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) No sale, lease, or conveyance of real estate owned by the county, except the lease <br />
         		<a id="pl.43.26"></a><var>43.26</var>of a residence acquired for the furtherance of an approved capital improvement project, nor <br />
         		<a id="pl.43.27"></a><var>43.27</var>any contract or option for it, shall be valid, without first advertising for bids or proposals in <br />
         		<a id="pl.43.28"></a><var>43.28</var>the official newspaper of the county for three consecutive weeks and once in a newspaper <br />
         		<a id="pl.43.29"></a><var>43.29</var>of general circulation in the area where the property is located. The notice shall state the <br />
         		<a id="pl.43.30"></a><var>43.30</var>time and place of considering the proposals, contain a legal description of any real estate, <br />
         		<a id="pl.43.31"></a><var>43.31</var>and a brief description of any personal property. Leases that do not exceed $15,000 for any <br />
         		<a id="pl.43.32"></a><var>43.32</var>one year may be negotiated and are not subject to the competitive bid procedures of this <br />
         		<a id="pl.43.33"></a><var>43.33</var>section. All proposals estimated to exceed $15,000 in any one year shall be considered at <br />
         		<a id="pl.43.34"></a><var>43.34</var>the time set for the bid opening, and the one most favorable to the county accepted, but the <br />
         		<a id="pl.43.35"></a><var>43.35</var>county board may, in the interest of the county, reject any or all proposals.<br />
         		<a id="pl.44.1"></a><var>44.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) Sales of personal property the value of which is estimated to be $15,000 or <br />
         		<a id="pl.44.2"></a><var>44.2</var>more shall be made only after advertising for bids or proposals in the county's official <br />
         		<a id="pl.44.3"></a><var>44.3</var>newspaper, on the county's Web site, or in a recognized industry trade journal. At the same <br />
         		<a id="pl.44.4"></a><var>44.4</var>time it posts on its Web site or publishes in a trade journal, the county must publish in the <br />
         		<a id="pl.44.5"></a><var>44.5</var>official newspaper, either as part of the minutes of a regular meeting of the county board <br />
         		<a id="pl.44.6"></a><var>44.6</var>or in a separate notice, a summary of all requests for bids or proposals that the county <br />
         		<a id="pl.44.7"></a><var>44.7</var>advertises on its Web site or in a trade journal. After publication in the official newspaper, <br />
         		<a id="pl.44.8"></a><var>44.8</var>on the Web site, or in a trade journal, bids or proposals may be solicited and accepted by <br />
         		<a id="pl.44.9"></a><var>44.9</var>the electronic selling process authorized in section 
         <statute_ref>471.345, subdivision 17</statute_ref>. Sales of <br />
         		<a id="pl.44.10"></a><var>44.10</var>personal property the value of which is estimated to be less than $15,000 may be made <br />
         		<a id="pl.44.11"></a><var>44.11</var>either on competitive bids or in the open market, in the discretion of the county board. <br />
         		<a id="pl.44.12"></a><var>44.12</var>"Web site" means a specific, addressable location provided on a server connected to the <br />
         		<a id="pl.44.13"></a><var>44.13</var>Internet and hosting World Wide Web pages and other files that are generally accessible <br />
         		<a id="pl.44.14"></a><var>44.14</var>on the Internet all or most of a day.<br />
         		<a id="pl.44.15"></a><var>44.15</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding anything to the contrary herein, the county may, when acquiring <br />
         		<a id="pl.44.16"></a><var>44.16</var>real property for county highway right-of-way, exchange parcels of real property of <br />
         		<a id="pl.44.17"></a><var>44.17</var>substantially similar or equal value without advertising for bids. The estimated values for <br />
         		<a id="pl.44.18"></a><var>44.18</var>these parcels shall be determined by the county assessor.<br />
         		<a id="pl.44.19"></a><var>44.19</var>(e) Notwithstanding anything in this section to the contrary, the county may, when <br />
         		<a id="pl.44.20"></a><var>44.20</var>acquiring real property for purposes other than county highway right-of-way, exchange <br />
         		<a id="pl.44.21"></a><var>44.21</var>parcels of real property of substantially similar or equal value without advertising for bids. <br />
         		<a id="pl.44.22"></a><var>44.22</var>The estimated values for these parcels must be determined by the county assessor or a <br />
         		<a id="pl.44.23"></a><var>44.23</var>private appraisal performed by a licensed Minnesota real estate appraiser. For the purpose <br />
         		<a id="pl.44.24"></a><var>44.24</var>of making these estimates, the county assessor need not be licensed under chapter 82B. <br />
         		<a id="pl.44.25"></a><var>44.25</var>Before giving final approval to any exchange of land, the county board shall hold a public <br />
         		<a id="pl.44.26"></a><var>44.26</var>hearing on the exchange. At least two weeks before the hearing, the county auditor shall <br />
         		<a id="pl.44.27"></a><var>44.27</var>post a notice in the auditor's office and the official newspaper of the county of the hearing <br />
         		<a id="pl.44.28"></a><var>44.28</var>that contains a description of the lands affected.<br />
         		<a id="pl.44.29"></a><var>44.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(f) If real estate or personal property remains unsold after advertising for and <br />
         		<a id="pl.44.30"></a><var>44.30</var>consideration of bids or proposals the county may employ a broker to sell the property. <br />
         		<a id="pl.44.31"></a><var>44.31</var>The broker may sell the property for not less than 90 percent of its appraised market value <br />
         		<a id="pl.44.32"></a><var>44.32</var>as determined by the county. The broker's fee shall be set by agreement with the county but <br />
         		<a id="pl.44.33"></a><var>44.33</var>may not exceed ten percent of the sale price and must be paid from the proceeds of the sale.<br />
         		<a id="pl.44.34"></a><var>44.34</var>&nbsp;&nbsp;&nbsp;&nbsp;(g) A county or its agent may rent a county-owned residence acquired for the <br />
         		<a id="pl.44.35"></a><var>44.35</var>furtherance of an approved capital improvement project subject to the conditions set <br />
         		<a id="pl.45.1"></a><var>45.1</var>by the county board and not subject to the conditions for lease otherwise provided by <br />
         		<a id="pl.45.2"></a><var>45.2</var>paragraph (a), clause (4), and paragraphs (b), (c), (d), (f), and (h).<br />
         		<a id="pl.45.3"></a><var>45.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(h) In no case shall lands be disposed of without there being reserved to the county <br />
         		<a id="pl.45.4"></a><var>45.4</var>all iron ore and other valuable minerals in and upon the lands, with right to explore for, <br />
         		<a id="pl.45.5"></a><var>45.5</var>mine and remove the iron ore and other valuable minerals, nor shall the minerals and <br />
         		<a id="pl.45.6"></a><var>45.6</var>mineral rights be disposed of, either before or after disposition of the surface rights, <br />
         		<a id="pl.45.7"></a><var>45.7</var>otherwise than by mining lease, in similar general form to that provided by section 
         <statute_ref>93.20 <br />
            		
         </statute_ref><a id="pl.45.8"></a><var>45.8</var>for mining leases affecting state lands. The lease shall be for a term not exceeding 50 <br />
         		<a id="pl.45.9"></a><var>45.9</var>years, and be issued on a royalty basis, the royalty to be not less than 25 cents per ton of <br />
         		<a id="pl.45.10"></a><var>45.10</var>2,240 pounds, and fix a minimum amount of royalty payable during each year, whether <br />
         		<a id="pl.45.11"></a><var>45.11</var>mineral is removed or not. Prospecting options for mining leases may be granted for <br />
         		<a id="pl.45.12"></a><var>45.12</var>periods not exceeding one year. The options shall require, among other things, periodical <br />
         		<a id="pl.45.13"></a><var>45.13</var>showings to the county board of the results of exploration work done.<br />
         		<a id="pl.45.14"></a><var>45.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) Notwithstanding anything in this subdivision to the contrary, the county may, <br />
         		<a id="pl.45.15"></a><var>45.15</var>when selling real property owned in fee simple that cannot be improved because of <br />
         		<a id="pl.45.16"></a><var>45.16</var>noncompliance with local ordinances regarding minimum area, shape, frontage, or access, <br />
         		<a id="pl.45.17"></a><var>45.17</var>proceed to sell the nonconforming parcel without advertising for bid. At the county's <br />
         		<a id="pl.45.18"></a><var>45.18</var>discretion, the real property may be restricted to sale to adjoining landowners or may be <br />
         		<a id="pl.45.19"></a><var>45.19</var>sold to any other interested party. The property shall be sold to the highest bidder, but <br />
         		<a id="pl.45.20"></a><var>45.20</var>in no case shall the property be sold for less than 90 percent of its fair market value as <br />
         		<a id="pl.45.21"></a><var>45.21</var>determined by the county assessor. All owners of land adjoining the land to be sold shall <br />
         		<a id="pl.45.22"></a><var>45.22</var>be given a written notice at least 30 days before the sale. This paragraph shall be liberally <br />
         		<a id="pl.45.23"></a><var>45.23</var>construed to encourage the sale of nonconforming real property and promote its return to <br />
         		<a id="pl.45.24"></a><var>45.24</var>the tax roles.<br />
         		<a id="pl.45.25"></a><var>45.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.2.18.0"></a><a id="pl.45.26"></a><var>45.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 18. <b> REPEALER.</b><br />
         		<a id="pl.45.27"></a><var>45.27</var>(a) Minnesota Statutes 2010, section 272.69, is repealed.<br />
         		<a id="pl.45.28"></a><var>45.28</var>(b) Minnesota Statutes 2010, section 273.11, subdivision 22, is repealed.<br />
         		<a id="pl.45.29"></a><var>45.29</var><b>EFFECTIVE DATE.</b>Paragraph (a) is effective the day following final enactment. <br />
         		<a id="pl.45.30"></a><var>45.30</var>Paragraph (b) is effective for taxes payable in 2013 and thereafter.<br />
         		<br />
         		<a id="bill.3.0.0"></a><div class="xtend_ce"><a id="pl.45.31"></a><var>45.31</var><b>ARTICLE 3</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.45.32"></a><var>45.32</var><b>DEPARTMENT POLICY AND TECHNICAL: SALES AND USE </b><br />
            		<a id="pl.45.33"></a><var>45.33</var><b>TAXES; SPECIAL TAXES</b><br />
            		
         </div><br />
         		<a id="bill.3.1.0"></a><a id="pl.45.34"></a><var>45.34</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. Minnesota Statutes 2010, section 65B.84, subdivision 1, is amended to read:<br />
         		<a id="pl.46.1"></a><var>46.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Program described; commissioner's duties; appropriation.</b> (a) <br />
         		<a id="pl.46.2"></a><var>46.2</var>The commissioner of commerce shall:<br />
         		<a id="pl.46.3"></a><var>46.3</var>(1) develop and sponsor the implementation of statewide plans, programs, and <br />
         		<a id="pl.46.4"></a><var>46.4</var>strategies to combat automobile theft, improve the administration of the automobile theft <br />
         		<a id="pl.46.5"></a><var>46.5</var>laws, and provide a forum for identification of critical problems for those persons dealing <br />
         		<a id="pl.46.6"></a><var>46.6</var>with automobile theft;<br />
         		<a id="pl.46.7"></a><var>46.7</var>(2) coordinate the development, adoption, and implementation of plans, programs, <br />
         		<a id="pl.46.8"></a><var>46.8</var>and strategies relating to interagency and intergovernmental cooperation with respect <br />
         		<a id="pl.46.9"></a><var>46.9</var>to automobile theft enforcement;<br />
         		<a id="pl.46.10"></a><var>46.10</var>(3) annually audit the plans and programs that have been funded in whole or in part <br />
         		<a id="pl.46.11"></a><var>46.11</var>to evaluate the effectiveness of the plans and programs and withdraw funding should the <br />
         		<a id="pl.46.12"></a><var>46.12</var>commissioner determine that a plan or program is ineffective or is no longer in need <br />
         		<a id="pl.46.13"></a><var>46.13</var>of further financial support from the fund;<br />
         		<a id="pl.46.14"></a><var>46.14</var>(4) develop a plan of operation including:<br />
         		<a id="pl.46.15"></a><var>46.15</var>(i) an assessment of the scope of the problem of automobile theft, including areas <br />
         		<a id="pl.46.16"></a><var>46.16</var>of the state where the problem is greatest;<br />
         		<a id="pl.46.17"></a><var>46.17</var>(ii) an analysis of various methods of combating the problem of automobile theft;<br />
         		<a id="pl.46.18"></a><var>46.18</var>(iii) a plan for providing financial support to combat automobile theft;<br />
         		<a id="pl.46.19"></a><var>46.19</var>(iv) a plan for eliminating car hijacking; and<br />
         		<a id="pl.46.20"></a><var>46.20</var>(v) an estimate of the funds required to implement the plan; and<br />
         		<a id="pl.46.21"></a><var>46.21</var>(5) distribute money, in consultation with the commissioner of public safety, <br />
         		<a id="pl.46.22"></a><var>46.22</var>pursuant to subdivision 3 from the automobile theft prevention special revenue account <br />
         		<a id="pl.46.23"></a><var>46.23</var>for automobile theft prevention activities, including:<br />
         		<a id="pl.46.24"></a><var>46.24</var>(i) paying the administrative costs of the program;<br />
         		<a id="pl.46.25"></a><var>46.25</var>(ii) providing financial support to the State Patrol and local law enforcement <br />
         		<a id="pl.46.26"></a><var>46.26</var>agencies for automobile theft enforcement teams;<br />
         		<a id="pl.46.27"></a><var>46.27</var>(iii) providing financial support to state or local law enforcement agencies for <br />
         		<a id="pl.46.28"></a><var>46.28</var>programs designed to reduce the incidence of automobile theft and for improved <br />
         		<a id="pl.46.29"></a><var>46.29</var>equipment and techniques for responding to automobile thefts;<br />
         		<a id="pl.46.30"></a><var>46.30</var>(iv) providing financial support to local prosecutors for programs designed to reduce <br />
         		<a id="pl.46.31"></a><var>46.31</var>the incidence of automobile theft;<br />
         		<a id="pl.46.32"></a><var>46.32</var>(v) providing financial support to judicial agencies for programs designed to reduce <br />
         		<a id="pl.46.33"></a><var>46.33</var>the incidence of automobile theft;<br />
         		<a id="pl.46.34"></a><var>46.34</var>(vi) providing financial support for neighborhood or community organizations or <br />
         		<a id="pl.46.35"></a><var>46.35</var>business organizations for programs designed to reduce the incidence of automobile <br />
         		<a id="pl.46.36"></a><var>46.36</var>theft and to educate people about the common methods of automobile theft, the models <br />
         		<a id="pl.47.1"></a><var>47.1</var>of automobiles most likely to be stolen, and the times and places automobile theft is <br />
         		<a id="pl.47.2"></a><var>47.2</var>most likely to occur; and<br />
         		<a id="pl.47.3"></a><var>47.3</var>(vii) providing financial support for automobile theft educational and training <br />
         		<a id="pl.47.4"></a><var>47.4</var>programs for state and local law enforcement officials, driver and vehicle services exam <br />
         		<a id="pl.47.5"></a><var>47.5</var>and inspections staff, and members of the judiciary.<br />
         		<a id="pl.47.6"></a><var>47.6</var>(b) The commissioner may not spend in any fiscal year more than ten percent of the <br />
         		<a id="pl.47.7"></a><var>47.7</var>money in the fund for the program's administrative and operating costs. The commissioner <br />
         		<a id="pl.47.8"></a><var>47.8</var>is annually appropriated and must distribute the amount of the proceeds credited to <br />
         		<a id="pl.47.9"></a><var>47.9</var>the automobile theft prevention special revenue account each year, less the transfer <br />
         		<a id="pl.47.10"></a><var>47.10</var>of $1,300,000 each year to the general fund described in section 
         <statute_ref>168A.40, subdivision <br />
            		<a id="pl.47.11"></a><var>47.11</var>4
         </statute_ref> 297I.11, subdivision 2.<br />
         		<a id="pl.47.12"></a><var>47.12</var><b>EFFECTIVE DATE.</b>This section is effective for premiums collected after June <br />
         		<a id="pl.47.13"></a><var>47.13</var>30, 2012.<br />
         		<br />
         		<a id="bill.3.2.0"></a><a id="pl.47.14"></a><var>47.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. Minnesota Statutes 2010, section 287.20, is amended by adding a subdivision <br />
         		<a id="pl.47.15"></a><var>47.15</var>to read:<br />
         		<a id="pl.47.16"></a><var>47.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 11. <b>Partition.</b> "Partition" means the division by conveyance of real property <br />
         		<a id="pl.47.17"></a><var>47.17</var>that is held jointly or in common by two or more persons into individually owned interests. <br />
         		<a id="pl.47.18"></a><var>47.18</var>If one of the co-owners gives consideration for all or a part of the individually owned <br />
         		<a id="pl.47.19"></a><var>47.19</var>interest conveyed to them, that portion of the conveyance is not a part of the partition.<br />
         		<a id="pl.47.20"></a><var>47.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.3.3.0"></a><a id="pl.47.21"></a><var>47.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. Minnesota Statutes 2010, section 297A.665, is amended to read:<br />
         		<a id="pl.47.22"></a><var>47.22</var><b>297A.665 PRESUMPTION OF TAX; BURDEN OF PROOF.</b><br />
         		<a id="pl.47.23"></a><var>47.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(a) For the purpose of the proper administration of this chapter and to prevent <br />
         		<a id="pl.47.24"></a><var>47.24</var>evasion of the tax, until the contrary is established, it is presumed that:<br />
         		<a id="pl.47.25"></a><var>47.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) all gross receipts are subject to the tax; and<br />
         		<a id="pl.47.26"></a><var>47.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) all retail sales for delivery in Minnesota are for storage, use, or other consumption <br />
         		<a id="pl.47.27"></a><var>47.27</var>in Minnesota.<br />
         		<a id="pl.47.28"></a><var>47.28</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) The burden of proving that a sale is not a taxable retail sale is on the seller. <br />
         		<a id="pl.47.29"></a><var>47.29</var>However, a seller is relieved of liability if:<br />
         		<a id="pl.47.30"></a><var>47.30</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) the seller obtains a fully completed exemption certificate or all the relevant <br />
         		<a id="pl.47.31"></a><var>47.31</var>information required by section 
         <statute_ref>297A.72, subdivision 2</statute_ref>, at the time of the sale or within <br />
         		<a id="pl.47.32"></a><var>47.32</var>90 days after the date of the sale; or<br />
         		<a id="pl.48.1"></a><var>48.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) if the seller has not obtained a fully completed exemption certificate or all the <br />
         		<a id="pl.48.2"></a><var>48.2</var>relevant information required by section 
         <statute_ref>297A.72, subdivision 2</statute_ref>, within the time provided <br />
         		<a id="pl.48.3"></a><var>48.3</var>in clause (1), within 120 days after a request for substantiation by the commissioner, <br />
         		<a id="pl.48.4"></a><var>48.4</var>the seller either:<br />
         		<a id="pl.48.5"></a><var>48.5</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) obtains in good faith from the purchaser a fully completed exemption certificate <br />
         		<a id="pl.48.6"></a><var>48.6</var>or all the relevant information required by section 
         <statute_ref>297A.72, subdivision 2</statute_ref>, from the <br />
         		<a id="pl.48.7"></a><var>48.7</var>purchaser taken in good faith which means that the exemption certificate claims an <br />
         		<a id="pl.48.8"></a><var>48.8</var>exemption that (A) was statutorily available on the date of the transaction, (B) could be <br />
         		<a id="pl.48.9"></a><var>48.9</var>applicable to the item for which the exemption is claimed, and (C) is reasonable for the <br />
         		<a id="pl.48.10"></a><var>48.10</var>purchaser's type of business; or<br />
         		<a id="pl.48.11"></a><var>48.11</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) proves by other means that the transaction was not subject to tax.<br />
         		<a id="pl.48.12"></a><var>48.12</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding paragraph (b), relief from liability does not apply to a seller who:<br />
         		<a id="pl.48.13"></a><var>48.13</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) fraudulently fails to collect the tax; or<br />
         		<a id="pl.48.14"></a><var>48.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) solicits purchasers to participate in the unlawful claim of an exemption.<br />
         		<a id="pl.48.15"></a><var>48.15</var>(d) Notwithstanding paragraph (b), relief from liability does not apply to a seller <br />
         		<a id="pl.48.16"></a><var>48.16</var>who has obtained information under paragraph (b), clause (2), if through the audit process <br />
         		<a id="pl.48.17"></a><var>48.17</var>the commissioner finds the following:<br />
         		<a id="pl.48.18"></a><var>48.18</var>(1) that at the time the information was provided the seller had knowledge or had <br />
         		<a id="pl.48.19"></a><var>48.19</var>reason to know that the information relating to the exemption was materially false; or<br />
         		<a id="pl.48.20"></a><var>48.20</var>(2) that the seller knowingly participated in activity intended to purposefully evade <br />
         		<a id="pl.48.21"></a><var>48.21</var>the sales tax due on the transaction.<br />
         		<a id="pl.48.22"></a><var>48.22</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) (e) A certified service provider, as defined in section 
         <statute_ref>297A.995, subdivision 2</statute_ref>, is <br />
         		<a id="pl.48.23"></a><var>48.23</var>relieved of liability under this section to the extent a seller who is its client is relieved of <br />
         		<a id="pl.48.24"></a><var>48.24</var>liability.<br />
         		<a id="pl.48.25"></a><var>48.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(e) (f) A purchaser of tangible personal property or any items listed in section <br />
         		
         <statute_ref><a id="pl.48.26"></a><var>48.26</var>297A.63 
         </statute_ref>that are shipped or brought to Minnesota by the purchaser has the burden <br />
         		<a id="pl.48.27"></a><var>48.27</var>of proving that the property was not purchased from a retailer for storage, use, or <br />
         		<a id="pl.48.28"></a><var>48.28</var>consumption in Minnesota.<br />
         		<a id="pl.48.29"></a><var>48.29</var>(f) (g) If a seller claims that certain sales are exempt and does not provide the <br />
         		<a id="pl.48.30"></a><var>48.30</var>certificate, information, or proof required by paragraph (b), clause (2), within 120 days <br />
         		<a id="pl.48.31"></a><var>48.31</var>after the date of the commissioner's request for substantiation, then the exemptions <br />
         		<a id="pl.48.32"></a><var>48.32</var>claimed by the seller that required substantiation are disallowed.<br />
         		<a id="pl.48.33"></a><var>48.33</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.3.4.0"></a><a id="pl.48.34"></a><var>48.34</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 4. Minnesota Statutes 2010, section 297F.01, subdivision 23, is amended to read:<br />
         		<a id="pl.49.1"></a><var>49.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 23. <b>Wholesale sales price.</b> "Wholesale sales price" means the price stated on <br />
         		<a id="pl.49.2"></a><var>49.2</var>the price list in effect at the time of sale for which a manufacturer or person sells a tobacco <br />
         		<a id="pl.49.3"></a><var>49.3</var>product to a distributor, exclusive of any discount, promotional offer, or other reduction. <br />
         		<a id="pl.49.4"></a><var>49.4</var>For purposes of this subdivision, "price list" means the manufacturer's price at which <br />
         		<a id="pl.49.5"></a><var>49.5</var>tobacco products are made available for sale to all distributors on an ongoing basis at which <br />
         		<a id="pl.49.6"></a><var>49.6</var>a distributor purchases a tobacco product without any reduction for federal excise taxes, <br />
         		<a id="pl.49.7"></a><var>49.7</var>freight charges, discounts, packaging, or other reductions. Wholesale sales price includes <br />
         		<a id="pl.49.8"></a><var>49.8</var>the applicable federal excise tax regardless of whether it is included in the purchase price.<br />
         		<a id="pl.49.9"></a><var>49.9</var><b>EFFECTIVE DATE.</b>This section is effective for purchases made after December <br />
         		<a id="pl.49.10"></a><var>49.10</var>31, 2012.<br />
         		<br />
         		<a id="bill.3.5.0"></a><a id="pl.49.11"></a><var>49.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 5. Minnesota Statutes 2010, section 297G.04, subdivision 2, is amended to read:<br />
         		<a id="pl.49.12"></a><var>49.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Tax credit.</b> A qualified brewer producing fermented malt beverages <br />
         		<a id="pl.49.13"></a><var>49.13</var>is entitled to a tax credit of $4.60 per barrel on 25,000 barrels sold in any fiscal year <br />
         		<a id="pl.49.14"></a><var>49.14</var>beginning July 1, regardless of the alcohol content of the product. Qualified brewers may <br />
         		<a id="pl.49.15"></a><var>49.15</var>take the credit on the 18th day of each month, but the total credit allowed may not exceed <br />
         		<a id="pl.49.16"></a><var>49.16</var>in any fiscal year the lesser of:<br />
         		<a id="pl.49.17"></a><var>49.17</var>(1) the liability for tax; or<br />
         		<a id="pl.49.18"></a><var>49.18</var>(2) $115,000.<br />
         		<a id="pl.49.19"></a><var>49.19</var>For purposes of this subdivision, a "qualified brewer" means a brewer, whether <br />
         		<a id="pl.49.20"></a><var>49.20</var>or not located in this state, manufacturing less than 100,000 barrels of fermented malt <br />
         		<a id="pl.49.21"></a><var>49.21</var>beverages in the calendar year immediately preceding the calendar fiscal year for which <br />
         		<a id="pl.49.22"></a><var>49.22</var>the credit under this subdivision is claimed. In determining the number of barrels, all <br />
         		<a id="pl.49.23"></a><var>49.23</var>brands or labels of a brewer must be combined. All facilities for the manufacture of <br />
         		<a id="pl.49.24"></a><var>49.24</var>fermented malt beverages owned or controlled by the same person, corporation, or other <br />
         		<a id="pl.49.25"></a><var>49.25</var>entity must be treated as a single brewer. A brewer is owned or controlled when more than <br />
         		<a id="pl.49.26"></a><var>49.26</var>50 percent of the voting stock of each member of the group is directly or indirectly owned <br />
         		<a id="pl.49.27"></a><var>49.27</var>by a common owner or by common owners, whether they are corporate or noncorporate.<br />
         		<a id="pl.49.28"></a><var>49.28</var><b>EFFECTIVE DATE.</b>This section is effective for claims filed after December <br />
         		<a id="pl.49.29"></a><var>49.29</var>31, 2012.<br />
         		<br />
         		<a id="bill.3.6.0"></a><a id="pl.49.30"></a><var>49.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 6. Minnesota Statutes 2011 Supplement, section 297I.05, subdivision 7, is <br />
         		<a id="pl.49.31"></a><var>49.31</var>amended to read:<br />
         		<a id="pl.50.1"></a><var>50.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Nonadmitted insurance premium tax.</b> (a) A tax is imposed on surplus <br />
         		<a id="pl.50.2"></a><var>50.2</var>lines brokers. The rate of tax is equal to three percent of the gross premiums less return <br />
         		<a id="pl.50.3"></a><var>50.3</var>premiums paid by an insured whose home state is Minnesota.<br />
         		<a id="pl.50.4"></a><var>50.4</var>(b) A tax is imposed on persons, firms, or corporations a person, firm, corporation, <br />
         		<a id="pl.50.5"></a><var>50.5</var>or purchasing group as defined in section 60E.02, or any member of a purchasing group, <br />
         		<a id="pl.50.6"></a><var>50.6</var>that procure insurance directly from a nonadmitted insurer. The rate of tax is equal to two <br />
         		<a id="pl.50.7"></a><var>50.7</var>percent of the gross premiums less return premiums paid by an insured whose home <br />
         		<a id="pl.50.8"></a><var>50.8</var>state is Minnesota.<br />
         		<a id="pl.50.9"></a><var>50.9</var>(c) No state other than the home state of an insured may require any premium tax <br />
         		<a id="pl.50.10"></a><var>50.10</var>payment for nonadmitted insurance. When Minnesota is the home state of the insured, <br />
         		<a id="pl.50.11"></a><var>50.11</var>as provided under section 
         <statute_ref>297I.01</statute_ref>, 100 percent of the gross premiums are taxable in <br />
         		<a id="pl.50.12"></a><var>50.12</var>Minnesota with no allocation of the tax to other states.<br />
         		<a id="pl.50.13"></a><var>50.13</var><b>EFFECTIVE DATE.</b>This section is effective for premiums received after <br />
         		<a id="pl.50.14"></a><var>50.14</var>December 31, 2012.<br />
         		<br />
         		<a id="bill.3.7.0"></a><a id="pl.50.15"></a><var>50.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 7. Minnesota Statutes 2010, section 297I.05, subdivision 11, is amended to read:<br />
         		<a id="pl.50.16"></a><var>50.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 11. <b>Retaliatory provisions.</b> (a) If any other state or country imposes any <br />
         		<a id="pl.50.17"></a><var>50.17</var>taxes, fines, deposits, penalties, licenses, or fees upon any insurance companies of this <br />
         		<a id="pl.50.18"></a><var>50.18</var>state and their agents doing business in another state or country that are in addition to or in <br />
         		<a id="pl.50.19"></a><var>50.19</var>excess of those imposed by the laws of this state upon foreign insurance companies and <br />
         		<a id="pl.50.20"></a><var>50.20</var>their agents doing business in this state, the same taxes, fines, deposits, penalties, licenses, <br />
         		<a id="pl.50.21"></a><var>50.21</var>and fees are imposed upon every similar insurance company of that state or country and <br />
         		<a id="pl.50.22"></a><var>50.22</var>their agents doing or applying to do business in this state.<br />
         		<a id="pl.50.23"></a><var>50.23</var>(b) If any conditions precedent to the right to do business in any other state or <br />
         		<a id="pl.50.24"></a><var>50.24</var>country are imposed by the laws of that state or country, beyond those imposed upon <br />
         		<a id="pl.50.25"></a><var>50.25</var>foreign companies by the laws of this state, the same conditions precedent are imposed <br />
         		<a id="pl.50.26"></a><var>50.26</var>upon every similar insurance company of that state or country and their agents doing or <br />
         		<a id="pl.50.27"></a><var>50.27</var>applying to do business in that state.<br />
         		<a id="pl.50.28"></a><var>50.28</var>(c) For purposes of this subdivision, "taxes, fines, deposits, penalties, licenses, or <br />
         		<a id="pl.50.29"></a><var>50.29</var>fees" means an amount of money that is deposited in the general revenue fund of the state <br />
         		<a id="pl.50.30"></a><var>50.30</var>or other similar fund in another state or country and is not dedicated to a special purpose <br />
         		<a id="pl.50.31"></a><var>50.31</var>or use or money deposited in the general revenue fund of the state or other similar fund in <br />
         		<a id="pl.50.32"></a><var>50.32</var>another state or country and appropriated to the commissioner of commerce or insurance <br />
         		<a id="pl.50.33"></a><var>50.33</var>for the operation of the Department of Commerce or other similar agency with jurisdiction <br />
         		<a id="pl.50.34"></a><var>50.34</var>over insurance. Taxes, fines, deposits, penalties, licenses, or fees do not include:<br />
         		<a id="pl.51.1"></a><var>51.1</var>(1) special purpose obligations or assessments imposed in connection with particular <br />
         		<a id="pl.51.2"></a><var>51.2</var>kinds of insurance, including but not limited to assessments imposed in connection with <br />
         		<a id="pl.51.3"></a><var>51.3</var>residual market mechanisms; or<br />
         		<a id="pl.51.4"></a><var>51.4</var>(2) assessments made by the insurance guaranty association, life and health <br />
         		<a id="pl.51.5"></a><var>51.5</var>guarantee association, or similar association.<br />
         		<a id="pl.51.6"></a><var>51.6</var>(d) This subdivision applies to taxes imposed under subdivisions 1,; 3,; 4, 6, and; 12, <br />
         		<a id="pl.51.7"></a><var>51.7</var>paragraph (a), clauses (1) and (2); and 14.<br />
         		<a id="pl.51.8"></a><var>51.8</var>(e) This subdivision does not apply to insurance companies organized or domiciled <br />
         		<a id="pl.51.9"></a><var>51.9</var>in a state or country, the laws of which do not impose retaliatory taxes, fines, deposits, <br />
         		<a id="pl.51.10"></a><var>51.10</var>penalties, licenses, or fees or which grant, on a reciprocal basis, exemptions from <br />
         		<a id="pl.51.11"></a><var>51.11</var>retaliatory taxes, fines, deposits, penalties, licenses, or fees to insurance companies <br />
         		<a id="pl.51.12"></a><var>51.12</var>domiciled in this state.<br />
         		<a id="pl.51.13"></a><var>51.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.3.8.0"></a><a id="pl.51.14"></a><var>51.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 8. Minnesota Statutes 2011 Supplement, section 297I.05, subdivision 12, is <br />
         		<a id="pl.51.15"></a><var>51.15</var>amended to read:<br />
         		<a id="pl.51.16"></a><var>51.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 12. <b>Other entities.</b> (a) A tax is imposed equal to two percent of:<br />
         		<a id="pl.51.17"></a><var>51.17</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) gross premiums less return premiums written for risks resident or located in <br />
         		<a id="pl.51.18"></a><var>51.18</var>Minnesota by a risk retention group;<br />
         		<a id="pl.51.19"></a><var>51.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) gross premiums less return premiums received by an attorney in fact acting <br />
         		<a id="pl.51.20"></a><var>51.20</var>in accordance with chapter 71A;<br />
         		<a id="pl.51.21"></a><var>51.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) gross premiums less return premiums received pursuant to assigned risk policies <br />
         		<a id="pl.51.22"></a><var>51.22</var>and contracts of coverage under chapter 79; and<br />
         		<a id="pl.51.23"></a><var>51.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) the direct funded premium received by the reinsurance association under section <br />
         		
         <statute_ref><a id="pl.51.24"></a><var>51.24</var>79.34
         </statute_ref> from self-insurers approved under section 
         <statute_ref>176.181</statute_ref> and political subdivisions that <br />
         		<a id="pl.51.25"></a><var>51.25</var>self-insure; and.<br />
         		<a id="pl.51.26"></a><var>51.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) gross premiums less return premiums paid to an insurer other than a licensed <br />
         		<a id="pl.51.27"></a><var>51.27</var>insurance company or a surplus lines broker for coverage of risks resident or located in <br />
         		<a id="pl.51.28"></a><var>51.28</var>Minnesota by a purchasing group or any members of the purchasing group to a broker or <br />
         		<a id="pl.51.29"></a><var>51.29</var>agent for the purchasing group.<br />
         		<a id="pl.51.30"></a><var>51.30</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) A tax is imposed on a joint self-insurance plan operating under chapter 60F. The <br />
         		<a id="pl.51.31"></a><var>51.31</var>rate of tax is equal to two percent of the total amount of claims paid during the fund year, <br />
         		<a id="pl.51.32"></a><var>51.32</var>with no deduction for claims wholly or partially reimbursed through stop-loss insurance.<br />
         		<a id="pl.51.33"></a><var>51.33</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) A tax is imposed on a joint self-insurance plan operating under chapter 62H. <br />
         		<a id="pl.51.34"></a><var>51.34</var>The rate of tax is equal to two percent of the total amount of claims paid during the <br />
         		<a id="pl.52.1"></a><var>52.1</var>fund's fiscal year, with no deduction for claims wholly or partially reimbursed through <br />
         		<a id="pl.52.2"></a><var>52.2</var>stop-loss insurance.<br />
         		<a id="pl.52.3"></a><var>52.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) A tax is imposed equal to the tax imposed under section 
         <statute_ref>297I.05, subdivision 5</statute_ref>, <br />
         		<a id="pl.52.4"></a><var>52.4</var>on the gross premiums less return premiums on all coverages received by an accountable <br />
         		<a id="pl.52.5"></a><var>52.5</var>provider network or agents of an accountable provider network in Minnesota, in cash or <br />
         		<a id="pl.52.6"></a><var>52.6</var>otherwise, during the year.<br />
         		<a id="pl.52.7"></a><var>52.7</var><b>EFFECTIVE DATE.</b>This section is effective for premiums received after <br />
         		<a id="pl.52.8"></a><var>52.8</var>December 31, 2012.<br />
         		<br />
         		<a id="bill.3.9.0"></a><a id="pl.52.9"></a><var>52.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 9. <b>[297I.11] AUTOMOBILE THEFT PREVENTION SURCHARGE.</b><br />
         		<a id="pl.52.10"></a><var>52.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Surcharge.</b> Each insurer engaged in the writing of policies of <br />
         		<a id="pl.52.11"></a><var>52.11</var>automobile insurance shall collect a surcharge, at the rate of 50 cents per vehicle <br />
         		<a id="pl.52.12"></a><var>52.12</var>for every six months of coverage, on each policy of automobile insurance providing <br />
         		<a id="pl.52.13"></a><var>52.13</var>comprehensive insurance coverage issued or renewed in this state. The surcharge may not <br />
         		<a id="pl.52.14"></a><var>52.14</var>be considered premium for any purpose, including the computation of premium tax or <br />
         		<a id="pl.52.15"></a><var>52.15</var>agents' commissions. The amount of the surcharge must be separately stated on either a <br />
         		<a id="pl.52.16"></a><var>52.16</var>billing or policy declaration sent to an insured. Insurers shall remit the revenue derived <br />
         		<a id="pl.52.17"></a><var>52.17</var>from this surcharge to the commissioner of revenue for purposes of the automobile theft <br />
         		<a id="pl.52.18"></a><var>52.18</var>prevention program described in section 65B.84. For purposes of this subdivision, "policy <br />
         		<a id="pl.52.19"></a><var>52.19</var>of automobile insurance" has the meaning given it in section 65B.14, covering only the <br />
         		<a id="pl.52.20"></a><var>52.20</var>following types of vehicles as defined in section 168.002:<br />
         		<a id="pl.52.21"></a><var>52.21</var>(1) a passenger automobile;<br />
         		<a id="pl.52.22"></a><var>52.22</var>(2) a pickup truck;<br />
         		<a id="pl.52.23"></a><var>52.23</var>(3) a van but not commuter vans as defined in section 168.126; or<br />
         		<a id="pl.52.24"></a><var>52.24</var>(4) a motorcycle,<br />
         		<a id="pl.52.25"></a><var>52.25</var>except that no vehicle with a gross vehicle weight in excess of 10,000 pounds is included <br />
         		<a id="pl.52.26"></a><var>52.26</var>within this definition.<br />
         		<a id="pl.52.27"></a><var>52.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Automobile theft prevention account.</b> A special revenue account in <br />
         		<a id="pl.52.28"></a><var>52.28</var>the state treasury shall be credited with the proceeds of the surcharge imposed under <br />
         		<a id="pl.52.29"></a><var>52.29</var>subdivision 1. Of the revenue in the account, $1,300,000 each year must be transferred to <br />
         		<a id="pl.52.30"></a><var>52.30</var>the general fund. Revenues in excess of $1,300,000 each year may be used only for the <br />
         		<a id="pl.52.31"></a><var>52.31</var>automobile theft prevention program described in section 65B.84.<br />
         		<a id="pl.52.32"></a><var>52.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Collection and administration.</b> The commissioner shall collect and <br />
         		<a id="pl.52.33"></a><var>52.33</var>administer the surcharge imposed by this section in the same manner as the taxes imposed <br />
         		<a id="pl.52.34"></a><var>52.34</var>by this chapter. The commissioner is appropriated annually, from the automobile theft <br />
         		<a id="pl.52.35"></a><var>52.35</var>prevention special revenue account, an amount to reimburse the Department of Revenue <br />
         		<a id="pl.53.1"></a><var>53.1</var>for the costs incurred in administering and collecting the surcharge imposed under <br />
         		<a id="pl.53.2"></a><var>53.2</var>subdivision 1.<br />
         		<a id="pl.53.3"></a><var>53.3</var><b>EFFECTIVE DATE.</b>This section is effective for premiums collected after June <br />
         		<a id="pl.53.4"></a><var>53.4</var>30, 2012.<br />
         		<br />
         		<a id="bill.3.10.0"></a><a id="pl.53.5"></a><var>53.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 10. Minnesota Statutes 2011 Supplement, section 297I.30, subdivision 1, is <br />
         		<a id="pl.53.6"></a><var>53.6</var>amended to read:<br />
         		<a id="pl.53.7"></a><var>53.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>General rule.</b> On or before March 1, every taxpayer subject to <br />
         		<a id="pl.53.8"></a><var>53.8</var>taxation under section 
         <statute_ref>297I.05, subdivisions 1 to </statute_ref>
         <statute_ref>5</statute_ref>,; 7, paragraph (b),; 12, paragraphs (a), <br />
         		<a id="pl.53.9"></a><var>53.9</var>clauses (1) to (4), (b), (c), and (d),; and 14, shall file an annual return for the preceding <br />
         		<a id="pl.53.10"></a><var>53.10</var>calendar year in the form prescribed by the commissioner.<br />
         		<a id="pl.53.11"></a><var>53.11</var><b>EFFECTIVE DATE.</b>This section is effective for premiums received after <br />
         		<a id="pl.53.12"></a><var>53.12</var>December 31, 2012.<br />
         		<br />
         		<a id="bill.3.11.0"></a><a id="pl.53.13"></a><var>53.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 11. Minnesota Statutes 2011 Supplement, section 297I.30, subdivision 2, is <br />
         		<a id="pl.53.14"></a><var>53.14</var>amended to read:<br />
         		<a id="pl.53.15"></a><var>53.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Surplus lines brokers </b><b>and purchasing groups</b><b>.</b> On or before February <br />
         		<a id="pl.53.16"></a><var>53.16</var>15 and August 15 of each year, every surplus lines broker subject to taxation under <br />
         		<a id="pl.53.17"></a><var>53.17</var>section 
         <statute_ref>297I.05, subdivision 7</statute_ref>, paragraph (a), and every purchasing group or member of <br />
         		<a id="pl.53.18"></a><var>53.18</var>a purchasing group subject to tax under section 
         <statute_ref>297I.05, subdivision 12</statute_ref>, paragraph (a), <br />
         		<a id="pl.53.19"></a><var>53.19</var>clause (5), shall file a return with the commissioner for the preceding six-month period <br />
         		<a id="pl.53.20"></a><var>53.20</var>ending December 31, or June 30, in the form prescribed by the commissioner.<br />
         		<a id="pl.53.21"></a><var>53.21</var><b>EFFECTIVE DATE.</b>This section is effective for premiums received after <br />
         		<a id="pl.53.22"></a><var>53.22</var>December 31, 2012.<br />
         		<br />
         		<a id="bill.3.12.0"></a><a id="pl.53.23"></a><var>53.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 12. Minnesota Statutes 2010, section 297I.30, is amended by adding a subdivision <br />
         		<a id="pl.53.24"></a><var>53.24</var>to read:<br />
         		<a id="pl.53.25"></a><var>53.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 10. <b>Automobile theft prevention surcharge.</b> On or before May 1, August <br />
         		<a id="pl.53.26"></a><var>53.26</var>1, November 1, and February 1 of each year, every insurer required to pay the surcharge <br />
         		<a id="pl.53.27"></a><var>53.27</var>under section 297I.11 shall file a return with the commissioner for the preceding <br />
         		<a id="pl.53.28"></a><var>53.28</var>three-month period ending March 31, June 30, September 30, and December 31, in the <br />
         		<a id="pl.53.29"></a><var>53.29</var>form prescribed by the commissioner.<br />
         		<a id="pl.53.30"></a><var>53.30</var><b>EFFECTIVE DATE.</b>This section is effective for premiums collected after June <br />
         		<a id="pl.53.31"></a><var>53.31</var>30, 2012.<br />
         		<br />
         		<a id="bill.3.13.0"></a><a id="pl.54.1"></a><var>54.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 13. <b> REPEALER.</b><br />
         		<a id="pl.54.2"></a><var>54.2</var>Minnesota Statutes 2010, section 168A.40, subdivisions 3 and 4, are repealed.<br />
         		<a id="pl.54.3"></a><var>54.3</var><b>EFFECTIVE DATE.</b>This section is effective for premiums collected after June <br />
         		<a id="pl.54.4"></a><var>54.4</var>30, 2012. <br />
         		<br />
         		<a id="bill.4.0.0"></a><div class="xtend_ce"><a id="pl.54.5"></a><var>54.5</var><b>ARTICLE 4</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.54.6"></a><var>54.6</var><b>DEPARTMENT POLICY AND TECHNICAL: MINERALS</b><br />
            		
         </div><br />
         		<a id="bill.4.1.0"></a><a id="pl.54.7"></a><var>54.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. Minnesota Statutes 2011 Supplement, section 272.02, subdivision 97, <br />
         		<a id="pl.54.8"></a><var>54.8</var>is amended to read:<br />
         		<a id="pl.54.9"></a><var>54.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 97. <b>Property used in business of mining subject to net proceeds tax.</b> The <br />
         		<a id="pl.54.10"></a><var>54.10</var>following property used in the business of mining that is subject to the net proceeds tax <br />
         		<a id="pl.54.11"></a><var>54.11</var>under section 
         <statute_ref>298.015</statute_ref> is exempt:<br />
         		<a id="pl.54.12"></a><var>54.12</var>(1) deposits of ores, metals, and minerals and the lands in which they are contained;<br />
         		<a id="pl.54.13"></a><var>54.13</var>(2) all real and personal property used in mining, quarrying, producing, or refining <br />
         		<a id="pl.54.14"></a><var>54.14</var>ores, minerals, or metals, including lands occupied by or used in connection with the <br />
         		<a id="pl.54.15"></a><var>54.15</var>mining, quarrying, production, or ore refining facilities; and<br />
         		<a id="pl.54.16"></a><var>54.16</var>(3) concentrate or direct reduced ore.<br />
         		<a id="pl.54.17"></a><var>54.17</var>This exemption applies for each year that a person subject to tax under section <br />
         		
         <statute_ref><a id="pl.54.18"></a><var>54.18</var>298.015
         </statute_ref> uses the property for mining, quarrying, producing, or refining ores, metals, or <br />
         		<a id="pl.54.19"></a><var>54.19</var>minerals.<br />
         		<a id="pl.54.20"></a><var>54.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.4.2.0"></a><a id="pl.54.21"></a><var>54.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. Minnesota Statutes 2011 Supplement, section 298.01, subdivision 3, is <br />
         		<a id="pl.54.22"></a><var>54.22</var>amended to read:<br />
         		<a id="pl.54.23"></a><var>54.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Occupation tax; other ores.</b>  Every person engaged in the business of <br />
         		<a id="pl.54.24"></a><var>54.24</var>mining, refining, or producing ores, metals, or minerals in this state, except iron ore or <br />
         		<a id="pl.54.25"></a><var>54.25</var>taconite concentrates, shall pay an occupation tax to the state of Minnesota as provided <br />
         		<a id="pl.54.26"></a><var>54.26</var>in this subdivision. For purposes of this subdivision, mining includes the application of <br />
         		<a id="pl.54.27"></a><var>54.27</var>hydrometallurgical processes. Hydrometallurgical processes are processes that extract <br />
         		<a id="pl.54.28"></a><var>54.28</var>the ores, metals, or minerals, by use of aqueous solutions that leach, concentrate, and <br />
         		<a id="pl.54.29"></a><var>54.29</var>recover the ore, metal, or mineral. The tax is determined in the same manner as the tax <br />
         		<a id="pl.54.30"></a><var>54.30</var>imposed by section 
         <statute_ref>290.02</statute_ref>, except that sections 
         <statute_ref>290.05, subdivision 1</statute_ref>, clause (a), 
         <statute_ref>290.17, <br />
            		<a id="pl.54.31"></a><var>54.31</var>subdivision 4
         </statute_ref>, and 
         <statute_ref>290.191, subdivision 2</statute_ref>, do not apply, and the occupation tax must <br />
         		<a id="pl.54.32"></a><var>54.32</var>be computed by applying to taxable income the rate of 2.45 percent. A person subject <br />
         		<a id="pl.55.1"></a><var>55.1</var>to occupation tax under this section shall apportion its net income on the basis of the <br />
         		<a id="pl.55.2"></a><var>55.2</var>percentage obtained by taking the sum of:<br />
         		<a id="pl.55.3"></a><var>55.3</var>(1) 75 percent of the percentage which the sales made within this state in connection <br />
         		<a id="pl.55.4"></a><var>55.4</var>with the trade or business during the tax period are of the total sales wherever made in <br />
         		<a id="pl.55.5"></a><var>55.5</var>connection with the trade or business during the tax period;<br />
         		<a id="pl.55.6"></a><var>55.6</var>(2) 12.5 percent of the percentage which the total tangible property used by the <br />
         		<a id="pl.55.7"></a><var>55.7</var>taxpayer in this state in connection with the trade or business during the tax period is of <br />
         		<a id="pl.55.8"></a><var>55.8</var>the total tangible property, wherever located, used by the taxpayer in connection with the <br />
         		<a id="pl.55.9"></a><var>55.9</var>trade or business during the tax period; and<br />
         		<a id="pl.55.10"></a><var>55.10</var>(3) 12.5 percent of the percentage which the taxpayer's total payrolls paid or incurred <br />
         		<a id="pl.55.11"></a><var>55.11</var>in this state or paid in respect to labor performed in this state in connection with the trade <br />
         		<a id="pl.55.12"></a><var>55.12</var>or business during the tax period are of the taxpayer's total payrolls paid or incurred in <br />
         		<a id="pl.55.13"></a><var>55.13</var>connection with the trade or business during the tax period.<br />
         		<a id="pl.55.14"></a><var>55.14</var>The tax is in addition to all other taxes.<br />
         		<a id="pl.55.15"></a><var>55.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.4.3.0"></a><a id="pl.55.16"></a><var>55.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. Minnesota Statutes 2010, section 298.018, subdivision 2, is amended to read:<br />
         		<a id="pl.55.17"></a><var>55.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Outside taconite assistance area.</b> The proceeds of the tax paid under <br />
         		<a id="pl.55.18"></a><var>55.18</var>sections 
         <statute_ref>298.015</statute_ref> to 
         <statute_ref>298.017</statute_ref> on ores, metals, or minerals and energy resources mined <br />
         		<a id="pl.55.19"></a><var>55.19</var>or extracted outside of the taconite assistance area defined in section 
         <statute_ref>273.1341</statute_ref>, shall <br />
         		<a id="pl.55.20"></a><var>55.20</var>be deposited in the general fund.<br />
         		<a id="pl.55.21"></a><var>55.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.5.0.0"></a><div class="xtend_ce"><a id="pl.55.22"></a><var>55.22</var><b>ARTICLE 5</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.55.23"></a><var>55.23</var><b>DEPARTMENT POLICY AND TECHNICAL: MISCELLANEOUS</b><br />
            		
         </div><br />
         		<a id="bill.5.1.0"></a><a id="pl.55.24"></a><var>55.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. Minnesota Statutes 2010, section 16A.46, is amended to read:<br />
         		<a id="pl.55.25"></a><var>55.25</var><b>16A.46 LOST OR DESTROYED WARRANT DUPLICATE; INDEMNITY.</b><br />
         		<a id="pl.55.26"></a><var>55.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Duplicate warrant.</b> The commissioner may issue a duplicate <br />
         		<a id="pl.55.27"></a><var>55.27</var>of an unpaid warrant to an owner if the owner certifies that the original was lost or <br />
         		<a id="pl.55.28"></a><var>55.28</var>destroyed. The commissioner may require certification be documented by affidavit. <br />
         		<a id="pl.55.29"></a><var>55.29</var>The commissioner may refuse to issue a duplicate of an unpaid state warrant. If the <br />
         		<a id="pl.55.30"></a><var>55.30</var>commissioner acts in good faith the commissioner is not liable, whether the application is <br />
         		<a id="pl.55.31"></a><var>55.31</var>granted or denied. <br />
         		<a id="pl.55.32"></a><var>55.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Original warrant is void.</b> When the duplicate is issued, the original is <br />
         		<a id="pl.55.33"></a><var>55.33</var>void. The commissioner may require an indemnity bond from the applicant to the state for <br />
         		<a id="pl.56.1"></a><var>56.1</var>double the amount of the warrant for anyone damaged by the issuance of the duplicate. <br />
         		<a id="pl.56.2"></a><var>56.2</var>The commissioner may refuse to issue a duplicate of an unpaid state warrant. If the <br />
         		<a id="pl.56.3"></a><var>56.3</var>commissioner acts in good faith the commissioner is not liable, whether the application is <br />
         		<a id="pl.56.4"></a><var>56.4</var>granted or denied is not liable to any holder who took the void original warrant for value, <br />
         		<a id="pl.56.5"></a><var>56.5</var>whether the commissioner required an indemnity bond from the applicant or not.<br />
         		<a id="pl.56.6"></a><var>56.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Unpaid refund or rebate.</b> For an unpaid refund or rebate issued under a <br />
         		<a id="pl.56.7"></a><var>56.7</var>tax law administered by the commissioner of revenue that has been lost or destroyed, an <br />
         		<a id="pl.56.8"></a><var>56.8</var>affidavit is not required for the commissioner to issue a duplicate if the duplicate is issued <br />
         		<a id="pl.56.9"></a><var>56.9</var>to the same name and Social Security number as the original warrant and that information <br />
         		<a id="pl.56.10"></a><var>56.10</var>is verified on a tax return filed by the recipient.<br />
         		<a id="pl.56.11"></a><var>56.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.5.2.0"></a><a id="pl.56.12"></a><var>56.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. Minnesota Statutes 2010, section 270C.38, subdivision 1, is amended to read:<br />
         		<a id="pl.56.13"></a><var>56.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Sufficient notice.</b> (a) If no method of notification of a written <br />
         		<a id="pl.56.14"></a><var>56.14</var>determination or action of the commissioner is otherwise specifically provided for by <br />
         		<a id="pl.56.15"></a><var>56.15</var>law, notice of the determination or action sent postage prepaid by United States mail to <br />
         		<a id="pl.56.16"></a><var>56.16</var>the taxpayer or other person affected by the determination or action at the taxpayer's <br />
         		<a id="pl.56.17"></a><var>56.17</var>or person's last known address, is sufficient. If the taxpayer or person being notified is <br />
         		<a id="pl.56.18"></a><var>56.18</var>deceased or is under a legal disability, or, in the case of a corporation being notified that <br />
         		<a id="pl.56.19"></a><var>56.19</var>has terminated its existence, notice to the last known address of the taxpayer, person, or <br />
         		<a id="pl.56.20"></a><var>56.20</var>corporation is sufficient, unless the department has been provided with a new address by a <br />
         		<a id="pl.56.21"></a><var>56.21</var>party authorized to receive notices from the commissioner.<br />
         		<a id="pl.56.22"></a><var>56.22</var>(b) If a taxpayer or other person agrees to accept notification by electronic means, <br />
         		<a id="pl.56.23"></a><var>56.23</var>notice of a determination or action of the commissioner sent by electronic mail to the <br />
         		<a id="pl.56.24"></a><var>56.24</var>taxpayer's or person's last known electronic mailing address as provided for in section <br />
         		<a id="pl.56.25"></a><var>56.25</var>325L.08 is sufficient.<br />
         		<a id="pl.56.26"></a><var>56.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.5.3.0"></a><a id="pl.56.27"></a><var>56.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. Minnesota Statutes 2010, section 270C.42, subdivision 2, is amended to read:<br />
         		<a id="pl.56.28"></a><var>56.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Penalty for failure to pay electronically.</b> In addition to other applicable <br />
         		<a id="pl.56.29"></a><var>56.29</var>penalties imposed by law, after notification from the commissioner to the taxpayer that <br />
         		<a id="pl.56.30"></a><var>56.30</var>payments for a tax payable to the commissioner are required to be made by electronic <br />
         		<a id="pl.56.31"></a><var>56.31</var>means, and the payments are remitted by some other means, there is a penalty in the <br />
         		<a id="pl.56.32"></a><var>56.32</var>amount of five percent of each payment that should have been remitted electronically. <br />
         		<a id="pl.56.33"></a><var>56.33</var>After the commissioner's initial notification to the taxpayer that payments are required to <br />
         		<a id="pl.57.1"></a><var>57.1</var>be made by electronic means, the commissioner is not required to notify the taxpayer in <br />
         		<a id="pl.57.2"></a><var>57.2</var>subsequent periods if the initial notification specified the amount of tax liability at which a <br />
         		<a id="pl.57.3"></a><var>57.3</var>taxpayer is required to remit payments by electronic means. The penalty can be abated <br />
         		<a id="pl.57.4"></a><var>57.4</var>under the abatement procedures prescribed in section 
         <statute_ref>270C.34</statute_ref> if the failure to remit the <br />
         		<a id="pl.57.5"></a><var>57.5</var>payment electronically is due to reasonable cause. The penalty bears interest at the rate <br />
         		<a id="pl.57.6"></a><var>57.6</var>specified in section 
         <statute_ref>270C.40</statute_ref> from the due date of the payment of the tax provided in <br />
         		<a id="pl.57.7"></a><var>57.7</var>section 270C.40, subdivision 3, to the date of payment of the penalty.<br />
         		<a id="pl.57.8"></a><var>57.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.5.4.0"></a><a id="pl.57.9"></a><var>57.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 4. Minnesota Statutes 2010, section 270C.69, subdivision 1, is amended to read:<br />
         		<a id="pl.57.10"></a><var>57.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Notice and procedures.</b> (a) The commissioner may, within five years <br />
         		<a id="pl.57.11"></a><var>57.11</var>after the date of assessment of the tax, or if a lien has been filed under section 
         <statute_ref>270C.63</statute_ref>, <br />
         		<a id="pl.57.12"></a><var>57.12</var>within the statutory period for enforcement of the lien, give notice to any employer <br />
         		<a id="pl.57.13"></a><var>57.13</var>deriving income which has a taxable situs in this state regardless of whether the income is <br />
         		<a id="pl.57.14"></a><var>57.14</var>exempt from taxation, that an employee of that employer is delinquent in a certain amount <br />
         		<a id="pl.57.15"></a><var>57.15</var>with respect to any taxes, including penalties, interest, and costs. The commissioner can <br />
         		<a id="pl.57.16"></a><var>57.16</var>proceed under this section only if the tax is uncontested or if the time for appeal of the tax <br />
         		<a id="pl.57.17"></a><var>57.17</var>has expired. The commissioner shall not proceed under this section until the expiration of <br />
         		<a id="pl.57.18"></a><var>57.18</var>30 days after mailing to the taxpayer, at the taxpayer's last known address, a written notice <br />
         		<a id="pl.57.19"></a><var>57.19</var>of (1) the amount of taxes, interest, and penalties due from the taxpayer and demand for <br />
         		<a id="pl.57.20"></a><var>57.20</var>their payment, and (2) the commissioner's intention to require additional withholding by <br />
         		<a id="pl.57.21"></a><var>57.21</var>the taxpayer's employer pursuant to this section. The effect of the notice shall expire one <br />
         		<a id="pl.57.22"></a><var>57.22</var>year after it has been mailed to the taxpayer provided that the notice may be renewed by <br />
         		<a id="pl.57.23"></a><var>57.23</var>mailing a new notice which is in accordance with this section. The renewed notice shall <br />
         		<a id="pl.57.24"></a><var>57.24</var>have the effect of reinstating the priority of the original claim. The notice to the taxpayer <br />
         		<a id="pl.57.25"></a><var>57.25</var>shall be in substantially the same form as that provided in section 
         <statute_ref>571.72</statute_ref>. The notice <br />
         		<a id="pl.57.26"></a><var>57.26</var>shall further inform the taxpayer of the wage exemptions contained in section 
         <statute_ref>550.37, <br />
            		<a id="pl.57.27"></a><var>57.27</var>subdivision 14
         </statute_ref>. If no statement of exemption is received by the commissioner within 30 <br />
         		<a id="pl.57.28"></a><var>57.28</var>days from the mailing of the notice, the commissioner may proceed under this section. <br />
         		<a id="pl.57.29"></a><var>57.29</var>The notice to the taxpayer's employer may be served by mail or by delivery by an agent of <br />
         		<a id="pl.57.30"></a><var>57.30</var>the department and shall be in substantially the same form as provided in section 
         <statute_ref>571.75</statute_ref>. <br />
         		<a id="pl.57.31"></a><var>57.31</var>Upon receipt of notice, the employer shall withhold from compensation due or to become <br />
         		<a id="pl.57.32"></a><var>57.32</var>due to the employee, the total amount shown by the notice, subject to the provisions of <br />
         		<a id="pl.57.33"></a><var>57.33</var>section 
         <statute_ref>571.922</statute_ref>. The employer shall continue to withhold each pay period until the notice <br />
         		<a id="pl.57.34"></a><var>57.34</var>is released by the commissioner under section 
         <statute_ref>270C.7109</statute_ref>. Upon receipt of notice by the <br />
         		<a id="pl.57.35"></a><var>57.35</var>employer, the claim of the state of Minnesota shall have priority over any subsequent <br />
         		<a id="pl.58.1"></a><var>58.1</var>garnishments or wage assignments. The commissioner may arrange between the employer <br />
         		<a id="pl.58.2"></a><var>58.2</var>and the employee for withholding a portion of the total amount due the employee each pay <br />
         		<a id="pl.58.3"></a><var>58.3</var>period, until the total amount shown by the notice plus accrued interest has been withheld.<br />
         		<a id="pl.58.4"></a><var>58.4</var>(b) The "compensation due" any employee is defined in accordance with the <br />
         		<a id="pl.58.5"></a><var>58.5</var>provisions of section 
         <statute_ref>571.921</statute_ref>. The maximum withholding allowed under this section for <br />
         		<a id="pl.58.6"></a><var>58.6</var>any one pay period shall be decreased by any amounts payable pursuant to a garnishment <br />
         		<a id="pl.58.7"></a><var>58.7</var>action with respect to which the employer was served prior to being served with the notice <br />
         		<a id="pl.58.8"></a><var>58.8</var>of delinquency and any amounts covered by any irrevocable and previously effective <br />
         		<a id="pl.58.9"></a><var>58.9</var>assignment of wages; the employer shall give notice to the commissioner of the amounts <br />
         		<a id="pl.58.10"></a><var>58.10</var>and the facts relating to such assignments within ten days after the service of the notice of <br />
         		<a id="pl.58.11"></a><var>58.11</var>delinquency on the form provided by the commissioner as noted in this section.<br />
         		<a id="pl.58.12"></a><var>58.12</var>(c) Within ten days after the expiration of such pay period, the employer shall remit <br />
         		<a id="pl.58.13"></a><var>58.13</var>to the commissioner, on a form and in the manner prescribed by the commissioner, the <br />
         		<a id="pl.58.14"></a><var>58.14</var>amount withheld during each pay period under this section. The employer must file all <br />
         		<a id="pl.58.15"></a><var>58.15</var>wage levy disclosure forms and remit all wage levy payments by electronic means.<br />
         		<a id="pl.58.16"></a><var>58.16</var><b>EFFECTIVE DATE.</b>This section is effective for wage levy disclosures or wage <br />
         		<a id="pl.58.17"></a><var>58.17</var>levy payments filed or made after December 31, 2012.<br />
         		<br />
         		<a id="bill.5.5.0"></a><a id="pl.58.18"></a><var>58.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 5. Minnesota Statutes 2010, section 287.385, subdivision 7, is amended to read:<br />
         		<a id="pl.58.19"></a><var>58.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Interest on penalties.</b> A penalty imposed under this chapter bears interest <br />
         		<a id="pl.58.20"></a><var>58.20</var>from the date payment was required to be paid, including any extensions, provided in <br />
         		<a id="pl.58.21"></a><var>58.21</var>section 270C.40, subdivision 3, to the date of payment of the penalty.<br />
         		<a id="pl.58.22"></a><var>58.22</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.5.6.0"></a><a id="pl.58.23"></a><var>58.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 6. Minnesota Statutes 2010, section 289A.55, subdivision 9, is amended to read:<br />
         		<a id="pl.58.24"></a><var>58.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 9. <b>Interest on penalties.</b> (a) A penalty imposed under section 
         <statute_ref>289A.60, <br />
            		<a id="pl.58.25"></a><var>58.25</var>subdivision 1
         </statute_ref>, 2, 2a, 4, 5, 6, or 21 bears interest from the date the return or payment <br />
         		<a id="pl.58.26"></a><var>58.26</var>was required to be filed or paid, including any extensions provided in section 270C.40, <br />
         		<a id="pl.58.27"></a><var>58.27</var>subdivision 3, to the date of payment of the penalty.<br />
         		<a id="pl.58.28"></a><var>58.28</var>(b) A penalty not included in paragraph (a) bears interest only if it is not paid within <br />
         		<a id="pl.58.29"></a><var>58.29</var>60 days from the date of notice. In that case interest is imposed from the date of notice <br />
         		<a id="pl.58.30"></a><var>58.30</var>to the date of payment.<br />
         		<a id="pl.58.31"></a><var>58.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.5.7.0"></a><a id="pl.58.32"></a><var>58.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 7. Minnesota Statutes 2010, section 289A.60, subdivision 4, is amended to read:<br />
         		<a id="pl.59.1"></a><var>59.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Substantial understatement of liability; penalty.</b> (a) The commissioner <br />
         		<a id="pl.59.2"></a><var>59.2</var>of revenue shall impose a penalty for substantial understatement of any tax payable to the <br />
         		<a id="pl.59.3"></a><var>59.3</var>commissioner, except a tax imposed under chapter 297A.<br />
         		<a id="pl.59.4"></a><var>59.4</var>(b) There must be added to the tax an amount equal to 20 percent of the amount of any <br />
         		<a id="pl.59.5"></a><var>59.5</var>underpayment attributable to the understatement. There is a substantial understatement of <br />
         		<a id="pl.59.6"></a><var>59.6</var>tax for the period if the amount of the understatement for the period exceeds the greater of:<br />
         		<a id="pl.59.7"></a><var>59.7</var>(1) ten percent of the tax required to be shown on the return for the period; or<br />
         		<a id="pl.59.8"></a><var>59.8</var>(2)(i) $10,000 in the case of a mining company or a corporation, other than an S <br />
         		<a id="pl.59.9"></a><var>59.9</var>corporation as defined in section 
         <statute_ref>290.9725</statute_ref>, when the tax is imposed by chapter 290 or <br />
         		<a id="pl.59.10"></a><var>59.10</var>section 
         <statute_ref>298.01</statute_ref> or 
         <statute_ref>298.015</statute_ref>, or<br />
         		<a id="pl.59.11"></a><var>59.11</var>(ii) $5,000 in the case of any other taxpayer, and in the case of a mining company or <br />
         		<a id="pl.59.12"></a><var>59.12</var>a corporation any tax not imposed by chapter 290 or section 
         <statute_ref>298.01</statute_ref> or 
         <statute_ref>298.015</statute_ref>.<br />
         		<a id="pl.59.13"></a><var>59.13</var>(c) For a corporation, other than an S corporation, there is also a substantial <br />
         		<a id="pl.59.14"></a><var>59.14</var>understatement of tax for any taxable year if the amount of the understatement for the <br />
         		<a id="pl.59.15"></a><var>59.15</var>taxable year exceeds the lesser of:<br />
         		<a id="pl.59.16"></a><var>59.16</var>(1) ten percent of the tax required to be shown on the return for the taxable year <br />
         		<a id="pl.59.17"></a><var>59.17</var>(or, if greater, $10,000); or<br />
         		<a id="pl.59.18"></a><var>59.18</var>(2) $10,000,000.<br />
         		<a id="pl.59.19"></a><var>59.19</var>(d) The term "understatement" means the excess of the amount of the tax required <br />
         		<a id="pl.59.20"></a><var>59.20</var>to be shown on the return for the period, over the amount of the tax imposed that is <br />
         		<a id="pl.59.21"></a><var>59.21</var>shown on the return. The excess must be determined without regard to items to which <br />
         		<a id="pl.59.22"></a><var>59.22</var>subdivision 27 applies. The amount of the understatement shall be reduced by that part of <br />
         		<a id="pl.59.23"></a><var>59.23</var>the understatement that is attributable to the tax treatment of any item by the taxpayer if <br />
         		<a id="pl.59.24"></a><var>59.24</var>(1) there is or was substantial authority for the treatment, or (2)(i) any item with respect to <br />
         		<a id="pl.59.25"></a><var>59.25</var>which the relevant facts affecting the item's tax treatment are adequately disclosed in the <br />
         		<a id="pl.59.26"></a><var>59.26</var>return or in a statement attached to the return and (ii) there is a reasonable basis for the tax <br />
         		<a id="pl.59.27"></a><var>59.27</var>treatment of the item. The exception for substantial authority under clause (1) does not <br />
         		<a id="pl.59.28"></a><var>59.28</var>apply to positions listed by the Secretary of the Treasury under section 6662(d)(3) of the <br />
         		<a id="pl.59.29"></a><var>59.29</var>Internal Revenue Code. A corporation does not have a reasonable basis for its tax treatment <br />
         		<a id="pl.59.30"></a><var>59.30</var>of an item attributable to a multiple-party financing transaction if the treatment does not <br />
         		<a id="pl.59.31"></a><var>59.31</var>clearly reflect the income of the corporation within the meaning of section 6662(d)(2)(B) <br />
         		<a id="pl.59.32"></a><var>59.32</var>of the Internal Revenue Code. The special rules in cases involving tax shelters provided in <br />
         		<a id="pl.59.33"></a><var>59.33</var>section 6662(d)(2)(C) of the Internal Revenue Code shall apply and shall apply to a tax <br />
         		<a id="pl.59.34"></a><var>59.34</var>shelter the principal purpose of which is the avoidance or evasion of state taxes.<br />
         		<a id="pl.59.35"></a><var>59.35</var>(e) The commissioner may abate all or any part of the addition to the tax provided <br />
         		<a id="pl.59.36"></a><var>59.36</var>by this section on a showing by the taxpayer that there was reasonable cause for the <br />
         		<a id="pl.60.1"></a><var>60.1</var>understatement, or part of it, and that the taxpayer acted in good faith. The additional tax <br />
         		<a id="pl.60.2"></a><var>60.2</var>and penalty shall bear interest at the rate as specified in section 
         <statute_ref>270C.40</statute_ref> from the time <br />
         		<a id="pl.60.3"></a><var>60.3</var>the tax should have been paid until paid.<br />
         		<a id="pl.60.4"></a><var>60.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.5.8.0"></a><a id="pl.60.5"></a><var>60.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 8. Minnesota Statutes 2010, section 296A.22, is amended to read:<br />
         		<a id="pl.60.6"></a><var>60.6</var><b>296A.22 NONPAYMENT OF TAX; CIVIL PENALTIES.</b><br />
         		<a id="pl.60.7"></a><var>60.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Penalty for failure to pay tax, general rule.</b> Upon the failure of <br />
         		<a id="pl.60.8"></a><var>60.8</var>any person to pay any tax or fee when due, a penalty of one percent per day for the first <br />
         		<a id="pl.60.9"></a><var>60.9</var>ten days of delinquency shall accrue, and thereafter the tax, fees, and penalty shall bear <br />
         		<a id="pl.60.10"></a><var>60.10</var>interest at the rate specified in section 
         <statute_ref>270C.40</statute_ref> until paid.<br />
         		<a id="pl.60.11"></a><var>60.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Collection authority.</b> Upon such a failure to pay any tax or fees within the <br />
         		<a id="pl.60.12"></a><var>60.12</var>time provided by this chapter, all taxes and fees imposed by this chapter shall become <br />
         		<a id="pl.60.13"></a><var>60.13</var>immediately due and payable, and may be collected as provided in chapter 270C.<br />
         		<a id="pl.60.14"></a><var>60.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Operating without license.</b> If any person operates as a distributor, special <br />
         		<a id="pl.60.15"></a><var>60.15</var>fuel dealer, bulk purchaser, or motor carrier without first securing the license required <br />
         		<a id="pl.60.16"></a><var>60.16</var>under this chapter, any tax or fee imposed by this chapter shall become immediately due <br />
         		<a id="pl.60.17"></a><var>60.17</var>and payable. A penalty of 25 percent is imposed upon the tax and fee due. The tax, and <br />
         		<a id="pl.60.18"></a><var>60.18</var>fees, and penalty shall bear interest at the rate specified in section 
         <statute_ref>270C.40</statute_ref>. The penalty <br />
         		<a id="pl.60.19"></a><var>60.19</var>imposed in this subdivision shall bear interest from the date provided in section 270C.40, <br />
         		<a id="pl.60.20"></a><var>60.20</var>subdivision 3, to the date of payment of the penalty.<br />
         		<a id="pl.60.21"></a><var>60.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Unlawful use of dyed fuel.</b> (a) If any dyed fuel is sold or held for sale by a <br />
         		<a id="pl.60.22"></a><var>60.22</var>person for any use which the person knows or has reason to know is not a nontaxable use <br />
         		<a id="pl.60.23"></a><var>60.23</var>of the fuel; or if any dyed fuel is held for use or used in a licensed motor vehicle or for any <br />
         		<a id="pl.60.24"></a><var>60.24</var>other use by a person for a use other than a nontaxable use and the person knew, or had <br />
         		<a id="pl.60.25"></a><var>60.25</var>reason to know, that the fuel was so dyed; or if a person willfully alters, or attempts to <br />
         		<a id="pl.60.26"></a><var>60.26</var>alter, the strength or composition of any dye or marking in any dyed fuel, then the person <br />
         		<a id="pl.60.27"></a><var>60.27</var>shall pay a penalty in addition to the tax, if any.<br />
         		<a id="pl.60.28"></a><var>60.28</var>(b) Except as provided in paragraph (c), the amount of penalty under paragraph (a) <br />
         		<a id="pl.60.29"></a><var>60.29</var>for each act is the greater of $1,000, or $10 for each gallon of dyed fuel involved.<br />
         		<a id="pl.60.30"></a><var>60.30</var>(c) With regard to a multiple violation under paragraph (a), the penalty shall be <br />
         		<a id="pl.60.31"></a><var>60.31</var>applied by increasing the amount in paragraph (b) by the product of (1) such amount, and <br />
         		<a id="pl.60.32"></a><var>60.32</var>(2) the number of prior penalties, if any, imposed by this section on the person, or a related <br />
         		<a id="pl.60.33"></a><var>60.33</var>person, or any predecessor of the person or related person.<br />
         		<a id="pl.61.1"></a><var>61.1</var>(d) If a penalty is imposed under this subdivision on a business entity, each officer, <br />
         		<a id="pl.61.2"></a><var>61.2</var>employee, or agent of the entity who willfully participated in any act giving rise to the <br />
         		<a id="pl.61.3"></a><var>61.3</var>penalty is jointly and severally liable with the entity for the penalty.<br />
         		<a id="pl.61.4"></a><var>61.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Receiver appointed.</b> In the event a suit is instituted as provided in <br />
         		<a id="pl.61.5"></a><var>61.5</var>subdivision 2, the court shall, upon application, appoint a receiver of the property and <br />
         		<a id="pl.61.6"></a><var>61.6</var>business of the delinquent defendant for the purpose of impounding the same as security <br />
         		<a id="pl.61.7"></a><var>61.7</var>for any judgment which has been or may be recovered.<br />
         		<a id="pl.61.8"></a><var>61.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <b>Sale prohibited under certain conditions.</b> No petroleum product shall <br />
         		<a id="pl.61.9"></a><var>61.9</var>be unloaded or sold by any person or distributor whose tax and fees are the basis for <br />
         		<a id="pl.61.10"></a><var>61.10</var>collection action under subdivision 2.<br />
         		<a id="pl.61.11"></a><var>61.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Payment of penalties.</b> The penalties imposed by this section are collected <br />
         		<a id="pl.61.12"></a><var>61.12</var>and paid in the same manner as taxes.<br />
         		<a id="pl.61.13"></a><var>61.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 8. <b>Penalties are additional.</b> The civil penalties imposed by this section are in <br />
         		<a id="pl.61.14"></a><var>61.14</var>addition to the criminal penalties imposed by this chapter.<br />
         		<a id="pl.61.15"></a><var>61.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 9. <b>Abatement of penalty.</b> (a) The commissioner may by written order <br />
         		<a id="pl.61.16"></a><var>61.16</var>abate any penalty imposed under this section, if in the commissioner's opinion there is <br />
         		<a id="pl.61.17"></a><var>61.17</var>reasonable cause to do so.<br />
         		<a id="pl.61.18"></a><var>61.18</var>(b) A request for abatement of penalty must be filed with the commissioner within <br />
         		<a id="pl.61.19"></a><var>61.19</var>60 days of the date the notice stating that a penalty has been imposed was mailed to <br />
         		<a id="pl.61.20"></a><var>61.20</var>the taxpayer's last known address.<br />
         		<a id="pl.61.21"></a><var>61.21</var>(c) If the commissioner issues an order denying a request for abatement of penalty, <br />
         		<a id="pl.61.22"></a><var>61.22</var>the taxpayer may file an administrative appeal as provided in section 270C.35 or appeal to <br />
         		<a id="pl.61.23"></a><var>61.23</var>Tax Court as provided in section 
         <statute_ref>271.06</statute_ref>. If the commissioner does not issue an order on <br />
         		<a id="pl.61.24"></a><var>61.24</var>the abatement request within 60 days from the date the request is received, the taxpayer <br />
         		<a id="pl.61.25"></a><var>61.25</var>may appeal to Tax Court as provided in section 
         <statute_ref>271.06</statute_ref>.<br />
         		<a id="pl.61.26"></a><var>61.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.5.9.0"></a><a id="pl.61.27"></a><var>61.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 9. Minnesota Statutes 2010, section 297E.14, subdivision 7, is amended to read:<br />
         		<a id="pl.61.28"></a><var>61.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Interest on penalties.</b> (a) A penalty imposed under section 
         <statute_ref>297E.12, <br />
            		<a id="pl.61.29"></a><var>61.29</var>subdivision 1
         </statute_ref>, 2, 3, 4, or 5, bears interest from the date the return or payment was required <br />
         		<a id="pl.61.30"></a><var>61.30</var>to be filed or paid, including any extensions provided in section 270C.40, subdivision 3, to <br />
         		<a id="pl.61.31"></a><var>61.31</var>the date of payment of the penalty.<br />
         		<a id="pl.61.32"></a><var>61.32</var>(b) A penalty not included in paragraph (a) bears interest only if it is not paid within <br />
         		<a id="pl.61.33"></a><var>61.33</var>ten days from the date of notice. In that case interest is imposed from the date of notice <br />
         		<a id="pl.61.34"></a><var>61.34</var>to the date of payment.<br />
         		<a id="pl.62.1"></a><var>62.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.5.10.0"></a><a id="pl.62.2"></a><var>62.2</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 10. Minnesota Statutes 2010, section 297F.09, subdivision 9, is amended to read:<br />
         		<a id="pl.62.3"></a><var>62.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 9. <b>Interest.</b> The amount of tax not timely paid, together with any penalty <br />
         		<a id="pl.62.4"></a><var>62.4</var>imposed in this section, bears interest at the rate specified in section 
         <statute_ref>270C.40</statute_ref> from the <br />
         		<a id="pl.62.5"></a><var>62.5</var>time such tax should have been paid until paid. The penalty imposed in this section bears <br />
         		<a id="pl.62.6"></a><var>62.6</var>interest at the rate specified in section 270C.40 from the date provided in section 270C.40, <br />
         		<a id="pl.62.7"></a><var>62.7</var>subdivision 3, to the date of payment of the penalty. Any interest and penalty is added to <br />
         		<a id="pl.62.8"></a><var>62.8</var>the tax and collected as a part of it.<br />
         		<a id="pl.62.9"></a><var>62.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.5.11.0"></a><a id="pl.62.10"></a><var>62.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 11. Minnesota Statutes 2010, section 297F.18, subdivision 7, is amended to read:<br />
         		<a id="pl.62.11"></a><var>62.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Interest on penalties.</b> (a) A penalty imposed under section 
         <statute_ref>297F.19, <br />
            		<a id="pl.62.12"></a><var>62.12</var>subdivisions 2 to 7
         </statute_ref>, bears interest from the date the return or payment was required to be <br />
         		<a id="pl.62.13"></a><var>62.13</var>filed or paid, including any extensions provided in section 270C.40, subdivision 3, to the <br />
         		<a id="pl.62.14"></a><var>62.14</var>date of payment of the penalty.<br />
         		<a id="pl.62.15"></a><var>62.15</var>(b) A penalty not included in paragraph (a) bears interest only if it is not paid within <br />
         		<a id="pl.62.16"></a><var>62.16</var>ten days from the date of the notice. In that case interest is imposed from the date of notice <br />
         		<a id="pl.62.17"></a><var>62.17</var>to the date of payment.<br />
         		<a id="pl.62.18"></a><var>62.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.5.12.0"></a><a id="pl.62.19"></a><var>62.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 12. Minnesota Statutes 2010, section 297G.09, subdivision 8, is amended to read:<br />
         		<a id="pl.62.20"></a><var>62.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 8. <b>Interest.</b> The amount of tax not timely paid, together with any penalty <br />
         		<a id="pl.62.21"></a><var>62.21</var>imposed by this chapter, bears interest at the rate specified in section 
         <statute_ref>270C.40</statute_ref> from the <br />
         		<a id="pl.62.22"></a><var>62.22</var>time the tax should have been paid until paid. Any penalty imposed by this chapter bears <br />
         		<a id="pl.62.23"></a><var>62.23</var>interest from the date provided in section 270C.40, subdivision 3, to the date of payment <br />
         		<a id="pl.62.24"></a><var>62.24</var>of the penalty. Any interest and penalty is added to the tax and collected as a part of it.<br />
         		<a id="pl.62.25"></a><var>62.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.5.13.0"></a><a id="pl.62.26"></a><var>62.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 13. Minnesota Statutes 2010, section 297G.17, subdivision 7, is amended to read:<br />
         		<a id="pl.62.27"></a><var>62.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Interest on penalties.</b> (a) A penalty imposed under section 
         <statute_ref>297G.18, <br />
            		<a id="pl.62.28"></a><var>62.28</var>subdivisions 2 to 7
         </statute_ref>, bears interest from the date the return or payment was required to be <br />
         		<a id="pl.62.29"></a><var>62.29</var>filed or paid, including any extensions provided in section 270C.40, subdivision 3, to the <br />
         		<a id="pl.62.30"></a><var>62.30</var>date of payment of the penalty.<br />
         		<a id="pl.63.1"></a><var>63.1</var>(b) A penalty not included in paragraph (a) bears interest only if it is not paid within <br />
         		<a id="pl.63.2"></a><var>63.2</var>ten days from the date of the notice. In that case interest is imposed from the date of notice <br />
         		<a id="pl.63.3"></a><var>63.3</var>to the date of payment.<br />
         		<a id="pl.63.4"></a><var>63.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.5.14.0"></a><a id="pl.63.5"></a><var>63.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 14. Minnesota Statutes 2010, section 297I.80, subdivision 1, is amended to read:<br />
         		<a id="pl.63.6"></a><var>63.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Payable to commissioner.</b> (a) When interest is required under this <br />
         		<a id="pl.63.7"></a><var>63.7</var>section, interest is computed at the rate specified in section 
         <statute_ref>270C.40</statute_ref>.<br />
         		<a id="pl.63.8"></a><var>63.8</var>(b) If a tax or surcharge is not paid within the time named by law for payment, the <br />
         		<a id="pl.63.9"></a><var>63.9</var>unpaid tax or surcharge bears interest from the date the tax or surcharge should have been <br />
         		<a id="pl.63.10"></a><var>63.10</var>paid until the date the tax or surcharge is paid.<br />
         		<a id="pl.63.11"></a><var>63.11</var>(c) Whenever a taxpayer is liable for additional tax or surcharge because of a <br />
         		<a id="pl.63.12"></a><var>63.12</var>redetermination by the commissioner or other reason, the additional tax or surcharge <br />
         		<a id="pl.63.13"></a><var>63.13</var>bears interest from the time the tax or surcharge should have been paid until the date the <br />
         		<a id="pl.63.14"></a><var>63.14</var>tax or surcharge is paid.<br />
         		<a id="pl.63.15"></a><var>63.15</var>(d) A penalty bears interest from the date the return or payment was required to be <br />
         		<a id="pl.63.16"></a><var>63.16</var>filed or paid provided in section 270C.40, subdivision 3, to the date of payment of the <br />
         		<a id="pl.63.17"></a><var>63.17</var>penalty.<br />
         		<a id="pl.63.18"></a><var>63.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.6.0.0"></a><div class="xtend_ce"><a id="pl.63.19"></a><var>63.19</var><b>ARTICLE 6</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.63.20"></a><var>63.20</var><b>PUBLIC FINANCE</b><br />
            		
         </div><br />
         		<a id="bill.6.1.0"></a><a id="pl.63.21"></a><var>63.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. Minnesota Statutes 2010, section 373.40, subdivision 1, is amended to read:<br />
         		<a id="pl.63.22"></a><var>63.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Definitions.</b> For purposes of this section, the following terms have <br />
         		<a id="pl.63.23"></a><var>63.23</var>the meanings given.<br />
         		<a id="pl.63.24"></a><var>63.24</var>(a) "Bonds" means an obligation as defined under section 
         <statute_ref>475.51</statute_ref>.<br />
         		<a id="pl.63.25"></a><var>63.25</var>(b) "Capital improvement" means acquisition or betterment of public lands, <br />
         		<a id="pl.63.26"></a><var>63.26</var>buildings, or other improvements within the county for the purpose of a county courthouse, <br />
         		<a id="pl.63.27"></a><var>63.27</var>administrative building, health or social service facility, correctional facility, jail, law <br />
         		<a id="pl.63.28"></a><var>63.28</var>enforcement center, hospital, morgue, library, park, qualified indoor ice arena, roads <br />
         		<a id="pl.63.29"></a><var>63.29</var>and bridges, public works facilities, fairgrounds buildings, and records and data storage <br />
         		<a id="pl.63.30"></a><var>63.30</var>facilities, and the acquisition of development rights in the form of conservation easements <br />
         		<a id="pl.63.31"></a><var>63.31</var>under chapter 84C. An improvement must have an expected useful life of five years or <br />
         		<a id="pl.63.32"></a><var>63.32</var>more to qualify. "Capital improvement" does not include a recreation or sports facility <br />
         		<a id="pl.63.33"></a><var>63.33</var>building (such as, but not limited to, a gymnasium, ice arena, racquet sports facility, <br />
         		<a id="pl.64.1"></a><var>64.1</var>swimming pool, exercise room or health spa), unless the building is part of an outdoor <br />
         		<a id="pl.64.2"></a><var>64.2</var>park facility and is incidental to the primary purpose of outdoor recreation.<br />
         		<a id="pl.64.3"></a><var>64.3</var>(c) "Metropolitan county" means a county located in the seven-county metropolitan <br />
         		<a id="pl.64.4"></a><var>64.4</var>area as defined in section 
         <statute_ref>473.121</statute_ref> or a county with a population of 90,000 or more.<br />
         		<a id="pl.64.5"></a><var>64.5</var>(d) "Population" means the population established by the most recent of the <br />
         		<a id="pl.64.6"></a><var>64.6</var>following (determined as of the date the resolution authorizing the bonds was adopted):<br />
         		<a id="pl.64.7"></a><var>64.7</var>(1) the federal decennial census,<br />
         		<a id="pl.64.8"></a><var>64.8</var>(2) a special census conducted under contract by the United States Bureau of the <br />
         		<a id="pl.64.9"></a><var>64.9</var>Census, or<br />
         		<a id="pl.64.10"></a><var>64.10</var>(3) a population estimate made either by the Metropolitan Council or by the state <br />
         		<a id="pl.64.11"></a><var>64.11</var>demographer under section 
         <statute_ref>4A.02</statute_ref>.<br />
         		<a id="pl.64.12"></a><var>64.12</var>(e) "Qualified indoor ice arena" means a facility that meets the requirements of <br />
         		<a id="pl.64.13"></a><var>64.13</var>section 
         <statute_ref>373.43</statute_ref>.<br />
         		<a id="pl.64.14"></a><var>64.14</var>(f) "Tax capacity" means total taxable market value, but does not include captured <br />
         		<a id="pl.64.15"></a><var>64.15</var>market value.<br />
         		<br />
         		<a id="bill.6.2.0"></a><a id="pl.64.16"></a><var>64.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. Minnesota Statutes 2010, section 373.40, subdivision 2, is amended to read:<br />
         		<a id="pl.64.17"></a><var>64.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Application of election requirement.</b> (a) Bonds issued by a county <br />
         		<a id="pl.64.18"></a><var>64.18</var>to finance capital improvements under an approved capital improvement plan are not <br />
         		<a id="pl.64.19"></a><var>64.19</var>subject to the election requirements of section 
         <statute_ref>375.18</statute_ref> or 
         <statute_ref>475.58</statute_ref>. The bonds must be <br />
         		<a id="pl.64.20"></a><var>64.20</var>approved by vote of at least three-fifths of the members of the county board. In the case <br />
         		<a id="pl.64.21"></a><var>64.21</var>of a metropolitan county, the bonds must be approved by vote of at least two-thirds of <br />
         		<a id="pl.64.22"></a><var>64.22</var>the members of the county board.<br />
         		<a id="pl.64.23"></a><var>64.23</var>(b) Before issuance of bonds qualifying under this section, the county must publish <br />
         		<a id="pl.64.24"></a><var>64.24</var>a notice of its intention to issue the bonds and the date and time of a hearing to obtain <br />
         		<a id="pl.64.25"></a><var>64.25</var>public comment on the matter. The notice must be published in the official newspaper <br />
         		<a id="pl.64.26"></a><var>64.26</var>of the county or in a newspaper of general circulation in the county. The notice must be <br />
         		<a id="pl.64.27"></a><var>64.27</var>published at least 14, but not more than 28, days before the date of the hearing.<br />
         		<a id="pl.64.28"></a><var>64.28</var>(c) A county may issue the bonds only upon obtaining the approval of a majority of <br />
         		<a id="pl.64.29"></a><var>64.29</var>the voters voting on the question of issuing the obligations, if a petition requesting a vote <br />
         		<a id="pl.64.30"></a><var>64.30</var>on the issuance is signed by voters equal to five percent of the votes cast in the county in <br />
         		<a id="pl.64.31"></a><var>64.31</var>the last county general election and is filed with the county auditor within 30 days after <br />
         		<a id="pl.64.32"></a><var>64.32</var>the public hearing. The commissioner of revenue shall prepare a suggested form of the <br />
         		<a id="pl.64.33"></a><var>64.33</var>question to be presented at the election If the county elects not to submit the question to <br />
         		<a id="pl.64.34"></a><var>64.34</var>the voters, the county shall not propose the issuance of bonds under this section for the <br />
         		<a id="pl.64.35"></a><var>64.35</var>same purpose and in the same amount for a period of 365 days from the date of receipt <br />
         		<a id="pl.65.1"></a><var>65.1</var>of the petition. If the question of issuing the bonds is submitted and not approved by the <br />
         		<a id="pl.65.2"></a><var>65.2</var>voters, the provisions of section 475.58, subdivision 1a, apply.<br />
         		<br />
         		<a id="bill.6.3.0"></a><a id="pl.65.3"></a><var>65.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. Minnesota Statutes 2010, section 373.40, subdivision 4, is amended to read:<br />
         		<a id="pl.65.4"></a><var>65.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Limitations on amount.</b> A county may not issue bonds under this section <br />
         		<a id="pl.65.5"></a><var>65.5</var>if the maximum amount of principal and interest to become due in any year on all the <br />
         		<a id="pl.65.6"></a><var>65.6</var>outstanding bonds issued pursuant to this section (including the bonds to be issued) will <br />
         		<a id="pl.65.7"></a><var>65.7</var>equal or exceed 0.12 percent of taxable market value of property in the county. Calculation <br />
         		<a id="pl.65.8"></a><var>65.8</var>of the limit must be made using the taxable market value for the taxes payable year in <br />
         		<a id="pl.65.9"></a><var>65.9</var>which the obligations are issued and sold, provided that, for purposes of determining <br />
         		<a id="pl.65.10"></a><var>65.10</var>the principal and interest due in any year, the county may deduct the amount of interest <br />
         		<a id="pl.65.11"></a><var>65.11</var>expected to be paid or reimbursed to the county by the federal government in that year on <br />
         		<a id="pl.65.12"></a><var>65.12</var>any outstanding bonds or the bonds to be issued. This section does not limit the authority <br />
         		<a id="pl.65.13"></a><var>65.13</var>to issue bonds under any other special or general law.<br />
         		<br />
         		<a id="bill.6.4.0"></a><a id="pl.65.14"></a><var>65.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 4. Minnesota Statutes 2010, section 474A.02, subdivision 23a, is amended to read:<br />
         		<a id="pl.65.15"></a><var>65.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 23a. <b>Qualified bonds.</b> "Qualified bonds" means the specific type or types <br />
         		<a id="pl.65.16"></a><var>65.16</var>of obligations that are subject to the annual volume cap. Qualified bonds include the <br />
         		<a id="pl.65.17"></a><var>65.17</var>following types of obligations as defined in federal tax law:<br />
         		<a id="pl.65.18"></a><var>65.18</var>(a) "public facility bonds" means "exempt facility bonds" as defined in federal <br />
         		<a id="pl.65.19"></a><var>65.19</var>tax law, except for residential rental project bonds, which are those obligations issued <br />
         		<a id="pl.65.20"></a><var>65.20</var>to finance airports, docks and wharves, mass commuting facilities, facilities for the <br />
         		<a id="pl.65.21"></a><var>65.21</var>furnishing of water, sewage facilities, solid waste disposal facilities, facilities for the <br />
         		<a id="pl.65.22"></a><var>65.22</var>local furnishing of electric energy or gas, local district heating or cooling facilities, and <br />
         		<a id="pl.65.23"></a><var>65.23</var>qualified hazardous waste facilities. New bonds and other obligations are ineligible to <br />
         		<a id="pl.65.24"></a><var>65.24</var>receive state allocations or entitlement authority for public facility projects under this <br />
         		<a id="pl.65.25"></a><var>65.25</var>section if they have been issued:<br />
         		<a id="pl.65.26"></a><var>65.26</var>(1) for the purpose of refinancing, refunding, or otherwise defeasing existing debt; <br />
         		<a id="pl.65.27"></a><var>65.27</var>and<br />
         		<a id="pl.65.28"></a><var>65.28</var>(2) more than one calendar year prior to the date of application;<br />
         		<a id="pl.65.29"></a><var>65.29</var>(b) "residential rental project bonds" which are those obligations issued to finance <br />
         		<a id="pl.65.30"></a><var>65.30</var>qualified residential rental projects;<br />
         		<a id="pl.65.31"></a><var>65.31</var>(c) "mortgage bonds";<br />
         		<a id="pl.65.32"></a><var>65.32</var>(d) "small issue bonds" issued to finance manufacturing projects and the acquisition <br />
         		<a id="pl.65.33"></a><var>65.33</var>or improvement of agricultural real or personal property under sections 
         <statute_ref>41C.01</statute_ref> to 
         <statute_ref>41C.13</statute_ref>;<br />
         		<a id="pl.66.1"></a><var>66.1</var>(e) "student loan bonds" issued by or on behalf of the Minnesota Office of Higher <br />
         		<a id="pl.66.2"></a><var>66.2</var>Education;<br />
         		<a id="pl.66.3"></a><var>66.3</var>(f) "redevelopment bonds";<br />
         		<a id="pl.66.4"></a><var>66.4</var>(g) "governmental bonds" with a nonqualified amount in excess of $15,000,000 as <br />
         		<a id="pl.66.5"></a><var>66.5</var>set forth in section 141(b)5 of federal tax law; and<br />
         		<a id="pl.66.6"></a><var>66.6</var>(h) "enterprise zone facility bonds" issued to finance facilities located within <br />
         		<a id="pl.66.7"></a><var>66.7</var>empowerment zones or enterprise communities, as authorized under Public Law 103-66, <br />
         		<a id="pl.66.8"></a><var>66.8</var>section 13301 section 1394 of the Internal Revenue Code.<br />
         		<br />
         		<a id="bill.6.5.0"></a><a id="pl.66.9"></a><var>66.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 5. Minnesota Statutes 2010, section 474A.04, subdivision 1a, is amended to read:<br />
         		<a id="pl.66.10"></a><var>66.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 1a. <b>Entitlement reservations</b><b>; carryforward; deduction</b><b>.</b> Any amount <br />
         		<a id="pl.66.11"></a><var>66.11</var>returned by an entitlement issuer before July 15 shall be reallocated through the housing <br />
         		<a id="pl.66.12"></a><var>66.12</var>pool. Any amount returned on or after July 15 shall be reallocated through the unified <br />
         		<a id="pl.66.13"></a><var>66.13</var>pool. An amount returned after the last Monday in November shall be reallocated to the <br />
         		<a id="pl.66.14"></a><var>66.14</var>Minnesota housing finance agency. Any amount of bonding authority that an entitlement <br />
         		<a id="pl.66.15"></a><var>66.15</var>issuer carries forward under federal tax law that is not permanently issued or for which <br />
         		<a id="pl.66.16"></a><var>66.16</var>the governing body of the entitlement issuer has not enacted a resolution electing to use <br />
         		<a id="pl.66.17"></a><var>66.17</var>the authority for mortgage credit certificates and has not provided a notice of issue to the <br />
         		<a id="pl.66.18"></a><var>66.18</var>commissioner before 4:30 p.m. on the last business day in December of the succeeding <br />
         		<a id="pl.66.19"></a><var>66.19</var>calendar year shall be deducted from the entitlement allocation for that entitlement issuer <br />
         		<a id="pl.66.20"></a><var>66.20</var>in the next succeeding calendar year. Any amount deducted from an entitlement issuer's <br />
         		<a id="pl.66.21"></a><var>66.21</var>allocation under this subdivision shall be reallocated to other entitlement issuers, the <br />
         		<a id="pl.66.22"></a><var>66.22</var>housing pool, the small issue pool, and the public facilities pool on a proportional basis <br />
         		<a id="pl.66.23"></a><var>66.23</var>consistent with section 
         <statute_ref>474A.03</statute_ref>.<br />
         		<a id="pl.66.24"></a><var>66.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br />
         		<a id="pl.66.25"></a><var>66.25</var>and applies to any bonding authority allocated in 2011 and subsequent years.<br />
         		<br />
         		<a id="bill.6.6.0"></a><a id="pl.66.26"></a><var>66.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 6. Minnesota Statutes 2010, section 474A.062, is amended to read:<br />
         		<a id="pl.66.27"></a><var>66.27</var><b>474A.062 MINNESOTA OFFICE OF HIGHER EDUCATION 120-DAY </b><br />
         		<a id="pl.66.28"></a><var>66.28</var><b>ISSUANCE EXEMPTION.</b><br />
         		<a id="pl.66.29"></a><var>66.29</var>The Minnesota Office of Higher Education is exempt from the 120-day issuance <br />
         		<a id="pl.66.30"></a><var>66.30</var>requirements in this chapter and may carry forward allocations for student loan bonds <br />
         		<a id="pl.66.31"></a><var>66.31</var>into one successive calendar year, subject to carryforward notice requirements of section <br />
         		
         <statute_ref><a id="pl.66.32"></a><var>66.32</var>474A.131, subdivision 2
         </statute_ref>.<br />
         		<a id="pl.67.1"></a><var>67.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br />
         		<a id="pl.67.2"></a><var>67.2</var>and applies to any bonding authority allocated in 2011 and subsequent years.<br />
         		<br />
         		<a id="bill.6.7.0"></a><a id="pl.67.3"></a><var>67.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 7. Minnesota Statutes 2010, section 474A.091, subdivision 3a, is amended to read:<br />
         		<a id="pl.67.4"></a><var>67.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3a. <b>Mortgage bonds.</b> (a) Bonding authority remaining in the unified pool on <br />
         		<a id="pl.67.5"></a><var>67.5</var>October 1 is available for single-family housing programs for cities that applied in January <br />
         		<a id="pl.67.6"></a><var>67.6</var>and received an allocation under section 
         <statute_ref>474A.061, subdivision 2a</statute_ref>, in the same calendar <br />
         		<a id="pl.67.7"></a><var>67.7</var>year. The Minnesota Housing Finance Agency shall receive an allocation for mortgage <br />
         		<a id="pl.67.8"></a><var>67.8</var>bonds pursuant to this section, minus any amounts for a city or consortium that intends to <br />
         		<a id="pl.67.9"></a><var>67.9</var>issue bonds on its own behalf under paragraph (c).<br />
         		<a id="pl.67.10"></a><var>67.10</var>(b) The agency may issue bonds on behalf of participating cities. The agency shall <br />
         		<a id="pl.67.11"></a><var>67.11</var>request an allocation from the commissioner for all applicants who choose to have the <br />
         		<a id="pl.67.12"></a><var>67.12</var>agency issue bonds on their behalf and the commissioner shall allocate the requested <br />
         		<a id="pl.67.13"></a><var>67.13</var>amount to the agency. Allocations shall be awarded by the commissioner each Monday <br />
         		<a id="pl.67.14"></a><var>67.14</var>commencing on the first Monday in October through the last Monday in November for <br />
         		<a id="pl.67.15"></a><var>67.15</var>applications received by 4:30 p.m. on the Monday of the week preceding an allocation.<br />
         		<a id="pl.67.16"></a><var>67.16</var>For cities who choose to have the agency issue bonds on their behalf, allocations <br />
         		<a id="pl.67.17"></a><var>67.17</var>will be made loan by loan, on a first-come, first-served basis among the cities. The <br />
         		<a id="pl.67.18"></a><var>67.18</var>agency shall submit an application fee pursuant to section 
         <statute_ref>474A.03, subdivision 4</statute_ref>, and an <br />
         		<a id="pl.67.19"></a><var>67.19</var>application deposit equal to two percent of the requested allocation to the commissioner <br />
         		<a id="pl.67.20"></a><var>67.20</var>when requesting an allocation from the unified pool. After awarding an allocation and <br />
         		<a id="pl.67.21"></a><var>67.21</var>receiving a notice of issuance for mortgage bonds issued on behalf of the participating <br />
         		<a id="pl.67.22"></a><var>67.22</var>cities, the commissioner shall transfer the application deposit to the Minnesota Housing <br />
         		<a id="pl.67.23"></a><var>67.23</var>Finance Agency.<br />
         		<a id="pl.67.24"></a><var>67.24</var>For purposes of paragraphs (a) to (d), "city" means a county or a consortium of <br />
         		<a id="pl.67.25"></a><var>67.25</var>local government units that agree through a joint powers agreement to apply together <br />
         		<a id="pl.67.26"></a><var>67.26</var>for single-family housing programs, and has the meaning given it in section 
         <statute_ref>462C.02, <br />
            		<a id="pl.67.27"></a><var>67.27</var>subdivision 6
         </statute_ref>. "Agency" means the Minnesota Housing Finance Agency.<br />
         		<a id="pl.67.28"></a><var>67.28</var>(c) Any city that received an allocation pursuant to section 
         <statute_ref>474A.061, subdivision <br />
            		<a id="pl.67.29"></a><var>67.29</var>2a, paragraph (f)
         </statute_ref>, in the current year that wishes to receive an additional allocation from <br />
         		<a id="pl.67.30"></a><var>67.30</var>the unified pool and issue bonds on its own behalf or pursuant to a joint powers agreement <br />
         		<a id="pl.67.31"></a><var>67.31</var>shall notify the Minnesota Housing Finance Agency by the third Monday in September. <br />
         		<a id="pl.67.32"></a><var>67.32</var>The total amount of allocation for mortgage bonds for a city choosing to issue bonds on its <br />
         		<a id="pl.67.33"></a><var>67.33</var>own behalf or through a joint powers agreement is limited to the lesser of: (i) the amount <br />
         		<a id="pl.67.34"></a><var>67.34</var>requested, or (ii) the product of the total amount available for mortgage bonds from the <br />
         		<a id="pl.67.35"></a><var>67.35</var>unified pool, multiplied by the ratio of the population of each city that applied in January <br />
         		<a id="pl.68.1"></a><var>68.1</var>and received an allocation under section 
         <statute_ref>474A.061, subdivision 2a</statute_ref>, in the same calendar <br />
         		<a id="pl.68.2"></a><var>68.2</var>year, as determined by the most recent estimate of the city's population released by the <br />
         		<a id="pl.68.3"></a><var>68.3</var>state demographer's office to the total of the population of all the cities that applied in <br />
         		<a id="pl.68.4"></a><var>68.4</var>January and received an allocation under section 
         <statute_ref>474A.061, subdivision 2a</statute_ref>, in the same <br />
         		<a id="pl.68.5"></a><var>68.5</var>calendar year. If a city choosing to issue bonds on its own behalf or through a joint powers <br />
         		<a id="pl.68.6"></a><var>68.6</var>agreement is located within a county that has also chosen to issue bonds on its own behalf <br />
         		<a id="pl.68.7"></a><var>68.7</var>or through a joint powers agreement, the city's population will be deducted from the <br />
         		<a id="pl.68.8"></a><var>68.8</var>county's population in calculating the amount of allocations under this paragraph.<br />
         		<a id="pl.68.9"></a><var>68.9</var>The Minnesota Housing Finance Agency shall notify each city choosing to issue <br />
         		<a id="pl.68.10"></a><var>68.10</var>bonds on its own behalf or pursuant to a joint powers agreement of the amount of its <br />
         		<a id="pl.68.11"></a><var>68.11</var>allocation by October 15. Upon determining the amount of the allocation of each choosing <br />
         		<a id="pl.68.12"></a><var>68.12</var>to issue bonds on its own behalf or through a joint powers agreement, the agency shall <br />
         		<a id="pl.68.13"></a><var>68.13</var>forward a list specifying the amounts allotted to each city.<br />
         		<a id="pl.68.14"></a><var>68.14</var>A city that chooses to issue bonds on its own behalf or through a joint powers <br />
         		<a id="pl.68.15"></a><var>68.15</var>agreement may request an allocation from the commissioner by forwarding an application <br />
         		<a id="pl.68.16"></a><var>68.16</var>with an application fee pursuant to section 
         <statute_ref>474A.03, subdivision 4</statute_ref>, and an application <br />
         		<a id="pl.68.17"></a><var>68.17</var>deposit equal to two percent of the requested amount to the commissioner no later than <br />
         		<a id="pl.68.18"></a><var>68.18</var>4:30 p.m. on the Monday of the week preceding an allocation. Allocations to cities that <br />
         		<a id="pl.68.19"></a><var>68.19</var>choose to issue bonds on their own behalf shall be awarded by the commissioner on <br />
         		<a id="pl.68.20"></a><var>68.20</var>the first Monday after October 15 through the last Monday in November. No city may <br />
         		<a id="pl.68.21"></a><var>68.21</var>receive an allocation from the commissioner after the last Monday in November. The <br />
         		<a id="pl.68.22"></a><var>68.22</var>commissioner shall allocate the requested amount to the city or cities subject to the <br />
         		<a id="pl.68.23"></a><var>68.23</var>limitations under this subdivision.<br />
         		<a id="pl.68.24"></a><var>68.24</var>If a city issues mortgage bonds from an allocation received under this paragraph, <br />
         		<a id="pl.68.25"></a><var>68.25</var>the issuer must provide for the recycling of funds into new loans. If the issuer is not <br />
         		<a id="pl.68.26"></a><var>68.26</var>able to provide for recycling, the issuer must notify the commissioner in writing of the <br />
         		<a id="pl.68.27"></a><var>68.27</var>reason that recycling was not possible and the reason the issuer elected not to have the <br />
         		<a id="pl.68.28"></a><var>68.28</var>Minnesota Housing Finance Agency issue the bonds. "Recycling" means the use of money <br />
         		<a id="pl.68.29"></a><var>68.29</var>generated from the repayment and prepayment of loans for further eligible loans or for the <br />
         		<a id="pl.68.30"></a><var>68.30</var>redemption of bonds and the issuance of current refunding bonds.<br />
         		<a id="pl.68.31"></a><var>68.31</var>(d) No entitlement city or county or city in an entitlement county may apply for or <br />
         		<a id="pl.68.32"></a><var>68.32</var>be allocated authority to issue mortgage bonds or use mortgage credit certificates from <br />
         		<a id="pl.68.33"></a><var>68.33</var>the unified pool.<br />
         		<a id="pl.68.34"></a><var>68.34</var>(e) An allocation awarded to the agency for mortgage bonds under this section <br />
         		<a id="pl.68.35"></a><var>68.35</var>may be carried forward by the agency into the next succeeding calendar year subject to <br />
         		<a id="pl.69.1"></a><var>69.1</var>notice requirements under section 
         <statute_ref>474A.131</statute_ref> and is available until the last business day in <br />
         		<a id="pl.69.2"></a><var>69.2</var>December of that succeeding calendar year.<br />
         		<a id="pl.69.3"></a><var>69.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br />
         		<a id="pl.69.4"></a><var>69.4</var>and applies to any bonding authority allocated in 2011 and subsequent years.<br />
         		<br />
         		<a id="bill.6.8.0"></a><a id="pl.69.5"></a><var>69.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 8. Minnesota Statutes 2010, section 475.521, subdivision 2, is amended to read:<br />
         		<a id="pl.69.6"></a><var>69.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Election requirement.</b> (a) Bonds issued by a municipality to finance <br />
         		<a id="pl.69.7"></a><var>69.7</var>capital improvements under an approved capital improvements plan are not subject to the <br />
         		<a id="pl.69.8"></a><var>69.8</var>election requirements of section 
         <statute_ref>475.58</statute_ref>. The bonds must be approved by an affirmative <br />
         		<a id="pl.69.9"></a><var>69.9</var>vote of three-fifths of the members of a five-member governing body. In the case of a <br />
         		<a id="pl.69.10"></a><var>69.10</var>governing body having more or less than five members, the bonds must be approved by a <br />
         		<a id="pl.69.11"></a><var>69.11</var>vote of at least two-thirds of the members of the governing body.<br />
         		<a id="pl.69.12"></a><var>69.12</var>(b) Before the issuance of bonds qualifying under this section, the municipality <br />
         		<a id="pl.69.13"></a><var>69.13</var>must publish a notice of its intention to issue the bonds and the date and time of the <br />
         		<a id="pl.69.14"></a><var>69.14</var>hearing to obtain public comment on the matter. The notice must be published in the <br />
         		<a id="pl.69.15"></a><var>69.15</var>official newspaper of the municipality or in a newspaper of general circulation in the <br />
         		<a id="pl.69.16"></a><var>69.16</var>municipality. Additionally, the notice may be posted on the official Web site, if any, of the <br />
         		<a id="pl.69.17"></a><var>69.17</var>municipality. The notice must be published at least 14 but not more than 28 days before <br />
         		<a id="pl.69.18"></a><var>69.18</var>the date of the hearing.<br />
         		<a id="pl.69.19"></a><var>69.19</var>(c) A municipality may issue the bonds only after obtaining the approval of a <br />
         		<a id="pl.69.20"></a><var>69.20</var>majority of the voters voting on the question of issuing the obligations, if a petition <br />
         		<a id="pl.69.21"></a><var>69.21</var>requesting a vote on the issuance is signed by voters equal to five percent of the votes cast <br />
         		<a id="pl.69.22"></a><var>69.22</var>in the municipality in the last municipal general election and is filed with the clerk within <br />
         		<a id="pl.69.23"></a><var>69.23</var>30 days after the public hearing. The commissioner of revenue shall prepare a suggested <br />
         		<a id="pl.69.24"></a><var>69.24</var>form of the question to be presented at the election If the municipality elects not to submit <br />
         		<a id="pl.69.25"></a><var>69.25</var>the question to the voters, the municipality shall not propose the issuance of bonds under <br />
         		<a id="pl.69.26"></a><var>69.26</var>this section for the same purpose and in the same amount for a period of 365 days from the <br />
         		<a id="pl.69.27"></a><var>69.27</var>date of receipt of the petition. If the question of issuing the bonds is submitted and not <br />
         		<a id="pl.69.28"></a><var>69.28</var>approved by the voters, the provisions of section 475.58, subdivision 1a, apply.<br />
         		<br />
         		<a id="bill.6.9.0"></a><a id="pl.69.29"></a><var>69.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 9. Minnesota Statutes 2010, section 475.521, subdivision 4, is amended to read:<br />
         		<a id="pl.69.30"></a><var>69.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Limitations on amount.</b> A municipality may not issue bonds under <br />
         		<a id="pl.69.31"></a><var>69.31</var>this section if the maximum amount of principal and interest to become due in any <br />
         		<a id="pl.69.32"></a><var>69.32</var>year on all the outstanding bonds issued under this section, including the bonds to be <br />
         		<a id="pl.69.33"></a><var>69.33</var>issued, will equal or exceed 0.16 percent of the taxable market value of property in the <br />
         		<a id="pl.69.34"></a><var>69.34</var>municipality. Calculation of the limit must be made using the taxable market value for <br />
         		<a id="pl.70.1"></a><var>70.1</var>the taxes payable year in which the obligations are issued and sold, provided that, for <br />
         		<a id="pl.70.2"></a><var>70.2</var>purposes of determining the principal and interest due in any year, the municipality may <br />
         		<a id="pl.70.3"></a><var>70.3</var>deduct the amount of interest expected to be paid or reimbursed to the municipality by the <br />
         		<a id="pl.70.4"></a><var>70.4</var>federal government in that year on any outstanding bonds or the bonds to be issued. In <br />
         		<a id="pl.70.5"></a><var>70.5</var>the case of a municipality with a population of 2,500 or more, the bonds are subject to <br />
         		<a id="pl.70.6"></a><var>70.6</var>the net debt limits under section 
         <statute_ref>475.53</statute_ref>. In the case of a shared facility in which more <br />
         		<a id="pl.70.7"></a><var>70.7</var>than one municipality participates, upon compliance by each participating municipality <br />
         		<a id="pl.70.8"></a><var>70.8</var>with the requirements of subdivision 2, the limitations in this subdivision and the net debt <br />
         		<a id="pl.70.9"></a><var>70.9</var>represented by the bonds shall be allocated to each participating municipality in proportion <br />
         		<a id="pl.70.10"></a><var>70.10</var>to its required financial contribution to the financing of the shared facility, as set forth in <br />
         		<a id="pl.70.11"></a><var>70.11</var>the joint powers agreement relating to the shared facility. This section does not limit the <br />
         		<a id="pl.70.12"></a><var>70.12</var>authority to issue bonds under any other special or general law.<br />
         		<br />
         		<a id="bill.6.10.0"></a><a id="pl.70.13"></a><var>70.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 10. Minnesota Statutes 2010, section 475.58, subdivision 3b, is amended to read:<br />
         		<a id="pl.70.14"></a><var>70.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3b. <b>Street reconstruction.</b> (a) A municipality may, without regard to <br />
         		<a id="pl.70.15"></a><var>70.15</var>the election requirement under subdivision 1, issue and sell obligations for street <br />
         		<a id="pl.70.16"></a><var>70.16</var>reconstruction, if the following conditions are met:<br />
         		<a id="pl.70.17"></a><var>70.17</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) the streets are reconstructed under a street reconstruction plan that describes the <br />
         		<a id="pl.70.18"></a><var>70.18</var>street reconstruction to be financed, the estimated costs, and any planned reconstruction <br />
         		<a id="pl.70.19"></a><var>70.19</var>of other streets in the municipality over the next five years, and the plan and issuance of <br />
         		<a id="pl.70.20"></a><var>70.20</var>the obligations has been approved by a vote of all of the members of the governing body <br />
         		<a id="pl.70.21"></a><var>70.21</var>present at the meeting following a public hearing for which notice has been published in <br />
         		<a id="pl.70.22"></a><var>70.22</var>the official newspaper at least ten days but not more than 28 days prior to the hearing; and<br />
         		<a id="pl.70.23"></a><var>70.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) if a petition requesting a vote on the issuance is signed by voters equal to <br />
         		<a id="pl.70.24"></a><var>70.24</var>five percent of the votes cast in the last municipal general election and is filed with the <br />
         		<a id="pl.70.25"></a><var>70.25</var>municipal clerk within 30 days of the public hearing, the municipality may issue the bonds <br />
         		<a id="pl.70.26"></a><var>70.26</var>only after obtaining the approval of a majority of the voters voting on the question of the <br />
         		<a id="pl.70.27"></a><var>70.27</var>issuance of the obligations. If the municipality elects not to submit the question to the <br />
         		<a id="pl.70.28"></a><var>70.28</var>voters, the municipality shall not propose the issuance of bonds under this section for the <br />
         		<a id="pl.70.29"></a><var>70.29</var>same purpose and in the same amount for a period of 365 days from the date of receipt <br />
         		<a id="pl.70.30"></a><var>70.30</var>of the petition. If the question of issuing the bonds is submitted and not approved by the <br />
         		<a id="pl.70.31"></a><var>70.31</var>voters, the provisions of subdivision 1a, apply.<br />
         		<a id="pl.70.32"></a><var>70.32</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) Obligations issued under this subdivision are subject to the debt limit of the <br />
         		<a id="pl.70.33"></a><var>70.33</var>municipality and are not excluded from net debt under section 
         <statute_ref>475.51, subdivision 4</statute_ref>.<br />
         		<a id="pl.70.34"></a><var>70.34</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) For purposes of this subdivision, street reconstruction includes utility <br />
         		<a id="pl.70.35"></a><var>70.35</var>replacement and relocation and other activities incidental to the street reconstruction, turn <br />
         		<a id="pl.71.1"></a><var>71.1</var>lanes and other improvements having a substantial public safety function, realignments, <br />
         		<a id="pl.71.2"></a><var>71.2</var>other modifications to intersect with state and county roads, and the local share of state <br />
         		<a id="pl.71.3"></a><var>71.3</var>and county road projects.<br />
         		<a id="pl.71.4"></a><var>71.4</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) Except in the case of turn lanes, safety improvements, realignments, intersection <br />
         		<a id="pl.71.5"></a><var>71.5</var>modifications, and the local share of state and county road projects, street reconstruction <br />
         		<a id="pl.71.6"></a><var>71.6</var>does not include the portion of project cost allocable to widening a street or adding curbs <br />
         		<a id="pl.71.7"></a><var>71.7</var>and gutters where none previously existed.<br />
         		<br />
         		<a id="bill.6.11.0"></a><a id="pl.71.8"></a><var>71.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 11. Laws 1971, chapter 773, section 1, subdivision 2, as amended by Laws 1974, <br />
         		<a id="pl.71.9"></a><var>71.9</var>chapter 351, section 5, Laws 1976, chapter 234, sections 1 and 7, Laws 1978, chapter 788, <br />
         		<a id="pl.71.10"></a><var>71.10</var>section 1, Laws 1981, chapter 369, section 1, Laws 1983, chapter 302, section 1, Laws <br />
         		<a id="pl.71.11"></a><var>71.11</var>1988, chapter 513, section 1, Laws 1992, chapter 511, article 9, section 23, Laws 1998, <br />
         		<a id="pl.71.12"></a><var>71.12</var>chapter 389, article 3, section 27, and Laws 2002, chapter 390, section 23, is amended to <br />
         		<a id="pl.71.13"></a><var>71.13</var>read:<br />
         		<a id="pl.71.14"></a><var>71.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. For each of the years 2003 to 2013 2012 to 2024, the city of St. Paul is <br />
         		<a id="pl.71.15"></a><var>71.15</var>authorized to issue bonds in the aggregate principal amount of $20,000,000 for each year.<br />
         		<a id="pl.71.16"></a><var>71.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.6.12.0"></a><a id="pl.71.17"></a><var>71.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 12. Laws 2003, chapter 127, article 12, section 28, is amended to read:<br />
         		<a id="pl.71.18"></a><var>71.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 28. <b>NURSING HOME BONDS AUTHORIZED.</b><br />
         		<a id="pl.71.19"></a><var>71.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(a) Itasca County may issue bonds under Minnesota Statutes, sections 
         <statute_ref>376.55</statute_ref> and <br />
         		
         <statute_ref><a id="pl.71.20"></a><var>71.20</var>376.56
         </statute_ref>, to finance the construction of a 35-bed nursing home facility to replace an existing <br />
         		<a id="pl.71.21"></a><var>71.21</var>35-bed private facility located in the county. The bonds issued under this section must <br />
         		<a id="pl.71.22"></a><var>71.22</var>may be payable solely from revenues and or may not be general obligations of the county.<br />
         		<a id="pl.71.23"></a><var>71.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) Before issuing general obligation bonds under this section, the county must <br />
         		<a id="pl.71.24"></a><var>71.24</var>publish a notice of its intention to issue the bonds and the date and time of a hearing to <br />
         		<a id="pl.71.25"></a><var>71.25</var>obtain public comment on the matter. The notice must be published on the official Web <br />
         		<a id="pl.71.26"></a><var>71.26</var>site of the county or in a newspaper of general circulation in the county. The notice must <br />
         		<a id="pl.71.27"></a><var>71.27</var>be published at least 14 but not more than 28 days before the date of the hearing. The <br />
         		<a id="pl.71.28"></a><var>71.28</var>county may issue the bonds only upon obtaining the approval of a majority of the voters <br />
         		<a id="pl.71.29"></a><var>71.29</var>voting on the question of issuing the obligations, if a petition requesting a vote on the <br />
         		<a id="pl.71.30"></a><var>71.30</var>issuance is signed by voters equal to five percent of the votes cast in the county in the last <br />
         		<a id="pl.71.31"></a><var>71.31</var>general election and is filed with the county auditor within 30 days after the public hearing.<br />
         		<a id="pl.72.1"></a><var>72.1</var><b>EFFECTIVE DATE; LOCAL APPROVAL.</b>This section is effective the day after <br />
         		<a id="pl.72.2"></a><var>72.2</var>the governing body of Itasca County and its chief clerical officer timely complete their <br />
         		<a id="pl.72.3"></a><var>72.3</var>compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.<br />
         		<br />
         		<a id="bill.6.13.0"></a><a id="pl.72.4"></a><var>72.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 13. <b>CARRYFORWARD OF BONDING AUTHORITY FOR 2008, 2009, </b><br />
         		<a id="pl.72.5"></a><var>72.5</var><b>AND 2010; NO DEDUCTION FROM ENTITLEMENT ALLOCATION.</b><br />
         		<a id="pl.72.6"></a><var>72.6</var>Notwithstanding Minnesota Statutes, section 474A.04, subdivision 1a, and Laws <br />
         		<a id="pl.72.7"></a><var>72.7</var>2009, chapter 88, article 6, section 27, bonding authority that was allocated to an <br />
         		<a id="pl.72.8"></a><var>72.8</var>entitlement issuer in 2008, 2009, and 2010 and that was carried forward under federal <br />
         		<a id="pl.72.9"></a><var>72.9</var>tax law, but for which the entitlement issuer did not provide a notice of issue to the <br />
         		<a id="pl.72.10"></a><var>72.10</var>commissioner of management and budget before 4:30 p.m. on the last business day of <br />
         		<a id="pl.72.11"></a><var>72.11</var>December 2011 must not be deducted from the entitlement allocation for that entitlement <br />
         		<a id="pl.72.12"></a><var>72.12</var>issuer in 2012.<br />
         		<a id="pl.72.13"></a><var>72.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br />
         		<a id="pl.72.14"></a><var>72.14</var>and applies retroactively to rescind any reallocation by the commissioner of management <br />
         		<a id="pl.72.15"></a><var>72.15</var>and budget under Minnesota Statutes, section 474A.04, subdivision 1a, of any amounts so <br />
         		<a id="pl.72.16"></a><var>72.16</var>deducted.<br />
         		<br />
         		<a id="bill.6.14.0"></a><a id="pl.72.17"></a><var>72.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 14. <b>WOODBURY; EXEMPTION FROM REFERENDUM.</b><br />
         		<a id="pl.72.18"></a><var>72.18</var>(a) Notwithstanding the referendum requirement in Minnesota Statutes, section <br />
         		<a id="pl.72.19"></a><var>72.19</var>475.58, subdivision 1, or any other provision of law, the city of Woodbury may issue and <br />
         		<a id="pl.72.20"></a><var>72.20</var>sell obligations to pay for the cost of renovating, improving, expanding, and equipping the <br />
         		<a id="pl.72.21"></a><var>72.21</var>Bielenberg Sports Center, along with costs of issuance of the obligations and capitalized <br />
         		<a id="pl.72.22"></a><var>72.22</var>interest, if:<br />
         		<a id="pl.72.23"></a><var>72.23</var>(1) the obligations are secured by a pledge of revenues from the facility; and<br />
         		<a id="pl.72.24"></a><var>72.24</var>(2) the city finds, based on analysis provided by a professional experienced in <br />
         		<a id="pl.72.25"></a><var>72.25</var>finance, that the facility's revenues and a property tax levy equal to the maximum annual <br />
         		<a id="pl.72.26"></a><var>72.26</var>property tax levy used to pay the bonds previously issued to finance, in whole or in part, <br />
         		<a id="pl.72.27"></a><var>72.27</var>the facility will in the aggregate be sufficient to pay the obligations without the imposition <br />
         		<a id="pl.72.28"></a><var>72.28</var>of an additional property tax levy pledged to the obligations.<br />
         		<a id="pl.72.29"></a><var>72.29</var>(b) Before issuing bonds under this section, the city must publish a notice of its <br />
         		<a id="pl.72.30"></a><var>72.30</var>intention to issue the bonds and the date and time of a hearing to obtain public comment <br />
         		<a id="pl.72.31"></a><var>72.31</var>on the matter. The notice must be published on the official Web site of the city or in a <br />
         		<a id="pl.72.32"></a><var>72.32</var>newspaper of general circulation in the city. The notice must be published at least 14 but <br />
         		<a id="pl.72.33"></a><var>72.33</var>not more than 28 days before the date of the hearing. The city may issue the bonds only <br />
         		<a id="pl.72.34"></a><var>72.34</var>upon obtaining the approval of a majority of the voters voting on the question of issuing <br />
         		<a id="pl.73.1"></a><var>73.1</var>the obligations, if a petition requesting a vote on the issuance is signed by voters equal to <br />
         		<a id="pl.73.2"></a><var>73.2</var>five percent of the votes cast in the city in the last general election and is filed with the city <br />
         		<a id="pl.73.3"></a><var>73.3</var>clerk within 30 days after the public hearing.<br />
         		<a id="pl.73.4"></a><var>73.4</var><b>EFFECTIVE DATE; LOCAL APPROVAL.</b>This section  is effective the day after <br />
         		<a id="pl.73.5"></a><var>73.5</var>the governing body of the city of Woodbury and its chief clerical officer timely complete <br />
         		<a id="pl.73.6"></a><var>73.6</var>their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.<br />
         		<br />
         		<a id="bill.7.0.0"></a><div class="xtend_ce"><a id="pl.73.7"></a><var>73.7</var><b>ARTICLE 7</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.73.8"></a><var>73.8</var><b>PROPERTY TAXES</b><br />
            		
         </div><br />
         		<a id="bill.7.1.0"></a><a id="pl.73.9"></a><var>73.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. Minnesota Statutes 2010, section 6.91, subdivision 2, is amended to read:<br />
         		<a id="pl.73.10"></a><var>73.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Benefits of participation.</b> (a) A county or city that elects to participate in <br />
         		<a id="pl.73.11"></a><var>73.11</var>the standard measures program for 2011 is: (1) eligible for per capita reimbursement of <br />
         		<a id="pl.73.12"></a><var>73.12</var>$0.14 per capita, but not to exceed $25,000 for any government entity; and (2) exempt <br />
         		<a id="pl.73.13"></a><var>73.13</var>from levy limits under sections 
         <statute_ref>275.70</statute_ref> to 
         <statute_ref>275.74</statute_ref> for taxes payable in 2012, if levy limits <br />
         		<a id="pl.73.14"></a><var>73.14</var>are in effect.<br />
         		<a id="pl.73.15"></a><var>73.15</var>(b) Any county or city that elects to participate in the standard measures program <br />
         		<a id="pl.73.16"></a><var>73.16</var>for 2012 is eligible for per capita reimbursement of $0.14 per capita, but not to exceed <br />
         		<a id="pl.73.17"></a><var>73.17</var>$25,000 for any government entity, provided that for 2012, a county or city with a <br />
         		<a id="pl.73.18"></a><var>73.18</var>population over 5,000 must also participate in the expenditure-type reporting under section <br />
         		<a id="pl.73.19"></a><var>73.19</var>471.703 in order to be eligible. Any jurisdiction participating in the comprehensive <br />
         		<a id="pl.73.20"></a><var>73.20</var>performance measurement program is exempt from levy limits under sections 
         <statute_ref>275.70</statute_ref> to <br />
         		
         <statute_ref><a id="pl.73.21"></a><var>73.21</var>275.74
         </statute_ref> for taxes payable in 2013 if levy limits are in effect.<br />
         		<a id="pl.73.22"></a><var>73.22</var>(c) Any county or city that elects to participate in the standard measures program for <br />
         		<a id="pl.73.23"></a><var>73.23</var>2013 or any year thereafter is eligible for per capita reimbursement of $0.14 per capita, <br />
         		<a id="pl.73.24"></a><var>73.24</var>but not to exceed $25,000 for any government entity. Any jurisdiction participating in <br />
         		<a id="pl.73.25"></a><var>73.25</var>the comprehensive performance measurement program for 2013 or any year thereafter is <br />
         		<a id="pl.73.26"></a><var>73.26</var>exempt from levy limits under sections 
         <statute_ref>275.70</statute_ref> to 
         <statute_ref>275.74</statute_ref> for taxes payable in the following <br />
         		<a id="pl.73.27"></a><var>73.27</var>year, if levy limits are in effect.<br />
         		<a id="pl.73.28"></a><var>73.28</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.7.2.0"></a><a id="pl.73.29"></a><var>73.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. Minnesota Statutes 2011 Supplement, section 270C.991, subdivision 4, as <br />
         		<a id="pl.73.30"></a><var>73.30</var>amended by Laws 2012, chapter 187, article 1, section 45, is amended to read:<br />
         		<a id="pl.73.31"></a><var>73.31</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Property tax working group.</b> (a) A property tax working group is <br />
         		<a id="pl.73.32"></a><var>73.32</var>established as provided in this subdivision. The goals of the working group are:<br />
         		<a id="pl.74.1"></a><var>74.1</var>(1) to investigate ways to simplify the property tax system and make advisory <br />
         		<a id="pl.74.2"></a><var>74.2</var>recommendations on ways to make the system more understandable;<br />
         		<a id="pl.74.3"></a><var>74.3</var>(2) to reexamine the property tax calendar to determine what changes could be made <br />
         		<a id="pl.74.4"></a><var>74.4</var>to shorten the two-year cycle from assessment through property tax collection; and<br />
         		<a id="pl.74.5"></a><var>74.5</var>(3) to determine the cost versus the benefits of the various property tax components, <br />
         		<a id="pl.74.6"></a><var>74.6</var>including property classifications, credits, aids, exclusions, exemptions, and abatements, <br />
         		<a id="pl.74.7"></a><var>74.7</var>and to suggest ways to achieve some of the goals in simpler and more cost-efficient ways.<br />
         		<a id="pl.74.8"></a><var>74.8</var>(b) The 12-member working group shall consist of the following members:<br />
         		<a id="pl.74.9"></a><var>74.9</var>(1) two state representatives, both appointed by the chair of the house of <br />
         		<a id="pl.74.10"></a><var>74.10</var>representatives Taxes Committee, one from the majority party and one from the largest <br />
         		<a id="pl.74.11"></a><var>74.11</var>minority party;<br />
         		<a id="pl.74.12"></a><var>74.12</var>(2) two senators appointed by the Subcommittee on Committees of the Senate Rules <br />
         		<a id="pl.74.13"></a><var>74.13</var>and Administration Committee, one from the majority party and one from the largest <br />
         		<a id="pl.74.14"></a><var>74.14</var>minority party;<br />
         		<a id="pl.74.15"></a><var>74.15</var>(3) one person appointed by the Association of Minnesota Counties;<br />
         		<a id="pl.74.16"></a><var>74.16</var>(4) one person appointed by the League of Minnesota Cities;<br />
         		<a id="pl.74.17"></a><var>74.17</var>(5) one person appointed by the Minnesota Association of Townships;<br />
         		<a id="pl.74.18"></a><var>74.18</var>(6) one person appointed by the Minnesota Chamber of Commerce;<br />
         		<a id="pl.74.19"></a><var>74.19</var>(7) one person appointed by the Minnesota Association of Assessing Officers;<br />
         		<a id="pl.74.20"></a><var>74.20</var>(8) two homeowners, one who is under 65 years of age, and one who is 65 years of <br />
         		<a id="pl.74.21"></a><var>74.21</var>age or older, both appointed by the commissioner of revenue; and<br />
         		<a id="pl.74.22"></a><var>74.22</var>(9) one person jointly appointed by the Minnesota Farm Bureau and the Minnesota <br />
         		<a id="pl.74.23"></a><var>74.23</var>Farmers Union.<br />
         		<a id="pl.74.24"></a><var>74.24</var>The commissioner of revenue shall chair the initial meeting, and the working <br />
         		<a id="pl.74.25"></a><var>74.25</var>group shall elect a chair at that initial meeting. The working group will meet at the call <br />
         		<a id="pl.74.26"></a><var>74.26</var>of the chair. Members of the working group shall serve without compensation. The <br />
         		<a id="pl.74.27"></a><var>74.27</var>commissioner of revenue must provide administrative support to the working group. <br />
         		<a id="pl.74.28"></a><var>74.28</var>Chapter 13D does not apply to meetings of the working group. Meetings of the working <br />
         		<a id="pl.74.29"></a><var>74.29</var>group must be open to the public and the working group must provide notice of a meeting <br />
         		<a id="pl.74.30"></a><var>74.30</var>to potentially interested persons at least seven days before the meeting. A meeting of the <br />
         		<a id="pl.74.31"></a><var>74.31</var>working group occurs when a quorum is present.<br />
         		<a id="pl.74.32"></a><var>74.32</var>(c) The working group shall make its advisory recommendations to the chairs of the <br />
         		<a id="pl.74.33"></a><var>74.33</var>house of representatives and senate Taxes Committees on or before February 1, 2013, at <br />
         		<a id="pl.74.34"></a><var>74.34</var>which time the working group shall be finished and this subdivision expires. The advisory <br />
         		<a id="pl.74.35"></a><var>74.35</var>recommendations should be reviewed by the Taxes Committees under subdivision 5.<br />
         		<br />
         		<a id="bill.7.3.0"></a><a id="pl.75.1"></a><var>75.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. Minnesota Statutes 2010, section 273.113, is amended to read:<br />
         		<a id="pl.75.2"></a><var>75.2</var><b>273.113 TAX CREDIT FOR PROPERTY IN </b><b>PROPOSED</b><b> BOVINE </b><br />
         		<a id="pl.75.3"></a><var>75.3</var><b>TUBERCULOSIS </b><b>MODIFIED ACCREDITED</b><b> MANAGEMENT</b><b> ZONE.</b><br />
         		<a id="pl.75.4"></a><var>75.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Definitions.</b> For the purposes of this section, the following terms <br />
         		<a id="pl.75.5"></a><var>75.5</var>have the meanings given to them:<br />
         		<a id="pl.75.6"></a><var>75.6</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) "bovine tuberculosis modified accredited management zone" means the modified <br />
         		<a id="pl.75.7"></a><var>75.7</var>accredited management zone designated by the Board of Animal Health under section <br />
         		
         <statute_ref><a id="pl.75.8"></a><var>75.8</var>35.244
         </statute_ref>;<br />
         		<a id="pl.75.9"></a><var>75.9</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) "located within" means that the herd is kept in the area for at least a part of <br />
         		<a id="pl.75.10"></a><var>75.10</var>calendar year 2006, 2007, or 2008; and<br />
         		<a id="pl.75.11"></a><var>75.11</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) "animal" means cattle, bison, goats, and farmed cervidae.<br />
         		<a id="pl.75.12"></a><var>75.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Eligibility; amount of credit.</b> Agricultural and rural vacant land classified <br />
         		<a id="pl.75.13"></a><var>75.13</var>under section 
         <statute_ref>273.13, subdivision 23</statute_ref>, located within a bovine tuberculosis modified <br />
         		<a id="pl.75.14"></a><var>75.14</var>accredited management zone is eligible for a property tax credit equal to the greater of: (1) <br />
         		<a id="pl.75.15"></a><var>75.15</var>$5 per acre on the first 160 acres of the property where the herd had been located; or (2) an <br />
         		<a id="pl.75.16"></a><var>75.16</var>amount equal to $5 per acre times five acres times the highest number of animals tested <br />
         		<a id="pl.75.17"></a><var>75.17</var>on the property for bovine tuberculosis in a whole-herd test as reported by the Board of <br />
         		<a id="pl.75.18"></a><var>75.18</var>Animal Health in 2006, 2007, or 2008 the amount of credit received under this section for <br />
         		<a id="pl.75.19"></a><var>75.19</var>taxes payable in 2011. The amount of the credit cannot exceed the property tax payable on <br />
         		<a id="pl.75.20"></a><var>75.20</var>the property where the herd had been located, excluding any tax attributable to residential <br />
         		<a id="pl.75.21"></a><var>75.21</var>structures. To begin to qualify for the tax credit for taxes payable in 2012, the owner shall <br />
         		<a id="pl.75.22"></a><var>75.22</var>file an application with the county by December 1 of the levy year July 1, 2012. For <br />
         		<a id="pl.75.23"></a><var>75.23</var>taxes payable in 2012, the credit shall be paid as a direct payment to the property owner, <br />
         		<a id="pl.75.24"></a><var>75.24</var>issued by the county within 30 days of receipt of the application, provided that there are <br />
         		<a id="pl.75.25"></a><var>75.25</var>no delinquent taxes on the property. The credit must be given for each subsequent taxes <br />
         		<a id="pl.75.26"></a><var>75.26</var>payable year until the credit terminates under subdivision 4. For taxes payable in 2013 <br />
         		<a id="pl.75.27"></a><var>75.27</var>and thereafter, the assessor shall indicate the amount of the property tax reduction on the <br />
         		<a id="pl.75.28"></a><var>75.28</var>property tax statement of each taxpayer receiving a credit under this section. For taxes <br />
         		<a id="pl.75.29"></a><var>75.29</var>payable in 2013 and thereafter, the credit paid pursuant to this section shall be deducted <br />
         		<a id="pl.75.30"></a><var>75.30</var>from the tax due on the property as provided in section 
         <statute_ref>273.1393</statute_ref>.<br />
         		<a id="pl.75.31"></a><var>75.31</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Reimbursement for lost revenue.</b> The county auditor shall certify to the <br />
         		<a id="pl.75.32"></a><var>75.32</var>commissioner of revenue, as part of the abstracts of tax lists required to be filed with the <br />
         		<a id="pl.75.33"></a><var>75.33</var>commissioner under section 
         <statute_ref>275.29</statute_ref>, the amount of tax lost to the county from the property <br />
         		<a id="pl.75.34"></a><var>75.34</var>tax credit under subdivision 2, except that for taxes payable in 2012 only, the county shall <br />
         		<a id="pl.75.35"></a><var>75.35</var>submit the credit amounts to the commissioner of revenue in a separate report, in a form <br />
         		<a id="pl.75.36"></a><var>75.36</var>prescribed by the commissioner, prior to August 15, 2012. Any prior year adjustments <br />
         		<a id="pl.76.1"></a><var>76.1</var>must also be certified in the abstracts of tax lists. The commissioner of revenue shall <br />
         		<a id="pl.76.2"></a><var>76.2</var>review the certifications to determine their accuracy. The commissioner may make the <br />
         		<a id="pl.76.3"></a><var>76.3</var>changes in the certification that are considered necessary or return a certification to the <br />
         		<a id="pl.76.4"></a><var>76.4</var>county auditor for corrections. The commissioner shall reimburse each taxing district, <br />
         		<a id="pl.76.5"></a><var>76.5</var>other than school districts, for the taxes lost. The payments must be made at the time <br />
         		<a id="pl.76.6"></a><var>76.6</var>provided in section 
         <statute_ref>473H.10</statute_ref> for payment to taxing jurisdictions in the same proportion <br />
         		<a id="pl.76.7"></a><var>76.7</var>that the ad valorem tax is distributed, except that for taxes payable in 2012 the entire <br />
         		<a id="pl.76.8"></a><var>76.8</var>reimbursement must be made to the county. Reimbursements to school districts must be <br />
         		<a id="pl.76.9"></a><var>76.9</var>made as provided in section 
         <statute_ref>273.1392</statute_ref>. The amount necessary to make the reimbursements <br />
         		<a id="pl.76.10"></a><var>76.10</var>under this section is annually appropriated from the general fund to the commissioner of <br />
         		<a id="pl.76.11"></a><var>76.11</var>revenue.<br />
         		<a id="pl.76.12"></a><var>76.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Termination of credit.</b> The credits provided under this section cease to <br />
         		<a id="pl.76.13"></a><var>76.13</var>be available beginning with taxes payable in the year following the date when the Board <br />
         		<a id="pl.76.14"></a><var>76.14</var>of Animal Health notifies the commissioner of revenue in writing that the board has <br />
         		<a id="pl.76.15"></a><var>76.15</var>certified that the state is free of discontinued all required bovine tuberculosis related <br />
         		<a id="pl.76.16"></a><var>76.16</var>activities within the bovine tuberculosis management zone.<br />
         		<a id="pl.76.17"></a><var>76.17</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br />
         		<a id="pl.76.18"></a><var>76.18</var>thereafter.<br />
         		<br />
         		<a id="bill.7.4.0"></a><a id="pl.76.19"></a><var>76.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 4. Minnesota Statutes 2010, section 275.025, subdivision 1, is amended to read:<br />
         		<a id="pl.76.20"></a><var>76.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Levy amount.</b> The state general levy is levied against <br />
         		<a id="pl.76.21"></a><var>76.21</var>commercial-industrial property and seasonal residential recreational property, as defined in <br />
         		<a id="pl.76.22"></a><var>76.22</var>this section. The state general levy base amount is $592,000,000 $817,423,000 for taxes <br />
         		<a id="pl.76.23"></a><var>76.23</var>payable in 2002 2013. For taxes payable in subsequent years, the levy base amount is <br />
         		<a id="pl.76.24"></a><var>76.24</var>increased each year by multiplying the levy base amount for the prior year by the sum <br />
         		<a id="pl.76.25"></a><var>76.25</var>of one plus the rate of increase, if any, in the implicit price deflator for government <br />
         		<a id="pl.76.26"></a><var>76.26</var>consumption expenditures and gross investment for state and local governments prepared <br />
         		<a id="pl.76.27"></a><var>76.27</var>by the Bureau of Economic Analysts of the United States Department of Commerce for <br />
         		<a id="pl.76.28"></a><var>76.28</var>the 12-month period ending March 31 of the year prior to the year the taxes are payable. <br />
         		<a id="pl.76.29"></a><var>76.29</var>The tax under this section is not treated as a local tax rate under section 
         <statute_ref>469.177</statute_ref> and is not <br />
         		<a id="pl.76.30"></a><var>76.30</var>the levy of a governmental unit under chapters 276A and 473F.<br />
         		<a id="pl.76.31"></a><var>76.31</var>The commissioner shall increase or decrease the preliminary or final rate rates for a <br />
         		<a id="pl.76.32"></a><var>76.32</var>year as necessary to account for errors and tax base changes that affected a preliminary or <br />
         		<a id="pl.76.33"></a><var>76.33</var>final rate for either of the two preceding years. Adjustments are allowed to the extent that <br />
         		<a id="pl.76.34"></a><var>76.34</var>the necessary information is available to the commissioner at the time the rates for a year <br />
         		<a id="pl.76.35"></a><var>76.35</var>must be certified, and for the following reasons:<br />
         		<a id="pl.77.1"></a><var>77.1</var>(1) an erroneous report of taxable value by a local official;<br />
         		<a id="pl.77.2"></a><var>77.2</var>(2) an erroneous calculation by the commissioner; and<br />
         		<a id="pl.77.3"></a><var>77.3</var>(3) an increase or decrease in taxable value for commercial-industrial or seasonal <br />
         		<a id="pl.77.4"></a><var>77.4</var>residential recreational property reported on the abstracts of tax lists submitted under <br />
         		<a id="pl.77.5"></a><var>77.5</var>section 
         <statute_ref>275.29</statute_ref> that was not reported on the abstracts of assessment submitted under <br />
         		<a id="pl.77.6"></a><var>77.6</var>section 
         <statute_ref>270C.89</statute_ref> for the same year.<br />
         		<a id="pl.77.7"></a><var>77.7</var>The commissioner may, but need not, make adjustments if the total difference in the tax <br />
         		<a id="pl.77.8"></a><var>77.8</var>levied for the year would be less than $100,000.<br />
         		<a id="pl.77.9"></a><var>77.9</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2013 and <br />
         		<a id="pl.77.10"></a><var>77.10</var>thereafter.<br />
         		<br />
         		<a id="bill.7.5.0"></a><a id="pl.77.11"></a><var>77.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 5. Minnesota Statutes 2010, section 275.065, subdivision 1, is amended to read:<br />
         		<a id="pl.77.12"></a><var>77.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Proposed levy.</b> (a) Notwithstanding any law or charter to the <br />
         		<a id="pl.77.13"></a><var>77.13</var>contrary, on or before September 15, each taxing authority, other than a school district, <br />
         		<a id="pl.77.14"></a><var>77.14</var>shall adopt a proposed budget and shall certify to the county auditor the proposed or, in <br />
         		<a id="pl.77.15"></a><var>77.15</var>the case of a town, the final property tax levy for taxes payable in the following year. All <br />
         		<a id="pl.77.16"></a><var>77.16</var>counties with a population of more than 5,000 and home rule charter or statutory cities <br />
         		<a id="pl.77.17"></a><var>77.17</var>with a population of more than 5,000, shall also provide to the county auditor the county <br />
         		<a id="pl.77.18"></a><var>77.18</var>or city Web site, if there is one, where the public is able to access the budget information <br />
         		<a id="pl.77.19"></a><var>77.19</var>required to be reported under section 471.703.<br />
         		<a id="pl.77.20"></a><var>77.20</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) On or before September 30, each school district that has not mutually agreed <br />
         		<a id="pl.77.21"></a><var>77.21</var>with its home county to extend this date shall certify to the county auditor the proposed <br />
         		<a id="pl.77.22"></a><var>77.22</var>property tax levy for taxes payable in the following year. Each school district that has <br />
         		<a id="pl.77.23"></a><var>77.23</var>agreed with its home county to delay the certification of its proposed property tax levy <br />
         		<a id="pl.77.24"></a><var>77.24</var>must certify its proposed property tax levy for the following year no later than October <br />
         		<a id="pl.77.25"></a><var>77.25</var>7. The school district shall certify the proposed levy as:<br />
         		<a id="pl.77.26"></a><var>77.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) a specific dollar amount by school district fund, broken down between <br />
         		<a id="pl.77.27"></a><var>77.27</var>voter-approved and non-voter-approved levies and between referendum market value <br />
         		<a id="pl.77.28"></a><var>77.28</var>and tax capacity levies; or<br />
         		<a id="pl.77.29"></a><var>77.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) the maximum levy limitation certified by the commissioner of education <br />
         		<a id="pl.77.30"></a><var>77.30</var>according to section 
         <statute_ref>126C.48, subdivision 1</statute_ref>.<br />
         		<a id="pl.77.31"></a><var>77.31</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) If the board of estimate and taxation or any similar board that establishes <br />
         		<a id="pl.77.32"></a><var>77.32</var>maximum tax levies for taxing jurisdictions within a first class city certifies the maximum <br />
         		<a id="pl.77.33"></a><var>77.33</var>property tax levies for funds under its jurisdiction by charter to the county auditor by <br />
         		<a id="pl.77.34"></a><var>77.34</var>September 15, the city shall be deemed to have certified its levies for those taxing <br />
         		<a id="pl.77.35"></a><var>77.35</var>jurisdictions.<br />
         		<a id="pl.78.1"></a><var>78.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) For purposes of this section, "taxing authority" includes all home rule and <br />
         		<a id="pl.78.2"></a><var>78.2</var>statutory cities, towns, counties, school districts, and special taxing districts as defined <br />
         		<a id="pl.78.3"></a><var>78.3</var>in section 
         <statute_ref>275.066</statute_ref>. Intermediate school districts that levy a tax under chapter 124 or <br />
         		<a id="pl.78.4"></a><var>78.4</var>136D, joint powers boards established under sections 
         <statute_ref>123A.44</statute_ref> to 
         <statute_ref>123A.446</statute_ref>, and Common <br />
         		<a id="pl.78.5"></a><var>78.5</var>School Districts No. 323, Franconia, and No. 815, Prinsburg, are also special taxing <br />
         		<a id="pl.78.6"></a><var>78.6</var>districts for purposes of this section.<br />
         		<a id="pl.78.7"></a><var>78.7</var>(e) At the meeting at which the taxing authority, other than a town, adopts its <br />
         		<a id="pl.78.8"></a><var>78.8</var>proposed tax levy under paragraph (a) or (b), the taxing authority shall announce the <br />
         		<a id="pl.78.9"></a><var>78.9</var>time and place of its subsequent regularly scheduled meetings at which the budget and <br />
         		<a id="pl.78.10"></a><var>78.10</var>levy will be discussed and at which the public will be allowed to speak. The time and <br />
         		<a id="pl.78.11"></a><var>78.11</var>place of those meetings The following information must be included in the proceedings <br />
         		<a id="pl.78.12"></a><var>78.12</var>or summary of proceedings published in the official newspaper of the taxing authority <br />
         		<a id="pl.78.13"></a><var>78.13</var>under section 
         <statute_ref>123B.09</statute_ref>, 
         <statute_ref>375.12</statute_ref>, or 
         <statute_ref>412.191</statute_ref>:<br />
         		<a id="pl.78.14"></a><var>78.14</var>(1) the time and place of the meetings described in this paragraph; and<br />
         		<a id="pl.78.15"></a><var>78.15</var>(2) a statement that the budget information required to be reported under section <br />
         		<a id="pl.78.16"></a><var>78.16</var>471.703 is available on the county or city Web site, if there is one.<br />
         		<a id="pl.78.17"></a><var>78.17</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2012.<br />
         		<br />
         		<a id="bill.7.6.0"></a><a id="pl.78.18"></a><var>78.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 6. Minnesota Statutes 2010, section 275.065, subdivision 3, is amended to read:<br />
         		<a id="pl.78.19"></a><var>78.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Notice of proposed property taxes.</b> (a) The county auditor shall prepare <br />
         		<a id="pl.78.20"></a><var>78.20</var>and the county treasurer shall deliver after November 10 and on or before November 24 <br />
         		<a id="pl.78.21"></a><var>78.21</var>each year, by first class mail to each taxpayer at the address listed on the county's current <br />
         		<a id="pl.78.22"></a><var>78.22</var>year's assessment roll, a notice of proposed property taxes. Upon written request by <br />
         		<a id="pl.78.23"></a><var>78.23</var>the taxpayer, the treasurer may send the notice in electronic form or by electronic mail <br />
         		<a id="pl.78.24"></a><var>78.24</var>instead of on paper or by ordinary mail.<br />
         		<a id="pl.78.25"></a><var>78.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) The commissioner of revenue shall prescribe the form of the notice.<br />
         		<a id="pl.78.26"></a><var>78.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) The notice must inform taxpayers that it contains the amount of property taxes <br />
         		<a id="pl.78.27"></a><var>78.27</var>each taxing authority proposes to collect for taxes payable the following year. In the <br />
         		<a id="pl.78.28"></a><var>78.28</var>case of a town, or in the case of the state general tax, the final tax amount will be its <br />
         		<a id="pl.78.29"></a><var>78.29</var>proposed tax. The notice must clearly state for each city that has a population over 500, <br />
         		<a id="pl.78.30"></a><var>78.30</var>county, school district, regional library authority established under section 
         <statute_ref>134.201</statute_ref>, and <br />
         		<a id="pl.78.31"></a><var>78.31</var>metropolitan taxing districts as defined in paragraph (i), the time and place of a meeting <br />
         		<a id="pl.78.32"></a><var>78.32</var>for each taxing authority in which the budget and levy will be discussed and public input <br />
         		<a id="pl.78.33"></a><var>78.33</var>allowed, prior to the final budget and levy determination. The notice must clearly state <br />
         		<a id="pl.78.34"></a><var>78.34</var>for each county with a population of more than 5,000 and for each city with a population <br />
         		<a id="pl.78.35"></a><var>78.35</var>of more than 5,000 that the budget information required to be reported under section <br />
         		<a id="pl.79.1"></a><var>79.1</var>471.703 is available on the county or city Web site, if there is one. The taxing authorities <br />
         		<a id="pl.79.2"></a><var>79.2</var>must provide the county auditor with the information to be included in the notice on or <br />
         		<a id="pl.79.3"></a><var>79.3</var>before the time it certifies its proposed levy under subdivision 1. The public must be <br />
         		<a id="pl.79.4"></a><var>79.4</var>allowed to speak at that meeting, which must occur after November 24 and must not be <br />
         		<a id="pl.79.5"></a><var>79.5</var>held before 6:00 p.m. It must provide a telephone number for the taxing authority that <br />
         		<a id="pl.79.6"></a><var>79.6</var>taxpayers may call if they have questions related to the notice and an address where <br />
         		<a id="pl.79.7"></a><var>79.7</var>comments will be received by mail, except that no notice required under this section <br />
         		<a id="pl.79.8"></a><var>79.8</var>shall be interpreted as requiring the printing of a personal telephone number or address <br />
         		<a id="pl.79.9"></a><var>79.9</var>as the contact information for a taxing authority. If a taxing authority does not maintain <br />
         		<a id="pl.79.10"></a><var>79.10</var>public offices where telephone calls can be received by the authority, the authority may <br />
         		<a id="pl.79.11"></a><var>79.11</var>inform the county of the lack of a public telephone number and the county shall not list a <br />
         		<a id="pl.79.12"></a><var>79.12</var>telephone number for that taxing authority.<br />
         		<a id="pl.79.13"></a><var>79.13</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) The notice must state for each parcel:<br />
         		<a id="pl.79.14"></a><var>79.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) the market value of the property as determined under section 
         <statute_ref>273.11</statute_ref>, and used <br />
         		<a id="pl.79.15"></a><var>79.15</var>for computing property taxes payable in the following year and for taxes payable in the <br />
         		<a id="pl.79.16"></a><var>79.16</var>current year as each appears in the records of the county assessor on November 1 of the <br />
         		<a id="pl.79.17"></a><var>79.17</var>current year; and, in the case of residential property, whether the property is classified as <br />
         		<a id="pl.79.18"></a><var>79.18</var>homestead or nonhomestead. The notice must clearly inform taxpayers of the years to <br />
         		<a id="pl.79.19"></a><var>79.19</var>which the market values apply and that the values are final values;<br />
         		<a id="pl.79.20"></a><var>79.20</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) the items listed below, shown separately by county, city or town, and state general <br />
         		<a id="pl.79.21"></a><var>79.21</var>tax, net of the residential and agricultural homestead credit under section 
         <statute_ref>273.1384</statute_ref>, voter <br />
         		<a id="pl.79.22"></a><var>79.22</var>approved school levy, other local school levy, and the sum of the special taxing districts, <br />
         		<a id="pl.79.23"></a><var>79.23</var>and as a total of all taxing authorities:<br />
         		<a id="pl.79.24"></a><var>79.24</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) the actual tax for taxes payable in the current year; and<br />
         		<a id="pl.79.25"></a><var>79.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) the proposed tax amount.<br />
         		<a id="pl.79.26"></a><var>79.26</var>&nbsp;&nbsp;&nbsp;&nbsp;If the county levy under clause (2) includes an amount for a lake improvement <br />
         		<a id="pl.79.27"></a><var>79.27</var>district as defined under sections 
         <statute_ref>103B.501</statute_ref> to 
         <statute_ref>103B.581</statute_ref>, the amount attributable for that <br />
         		<a id="pl.79.28"></a><var>79.28</var>purpose must be separately stated from the remaining county levy amount.<br />
         		<a id="pl.79.29"></a><var>79.29</var>&nbsp;&nbsp;&nbsp;&nbsp;In the case of a town or the state general tax, the final tax shall also be its proposed <br />
         		<a id="pl.79.30"></a><var>79.30</var>tax unless the town changes its levy at a special town meeting under section 
         <statute_ref>365.52</statute_ref>. If a <br />
         		<a id="pl.79.31"></a><var>79.31</var>school district has certified under section 
         <statute_ref>126C.17, subdivision 9</statute_ref>, that a referendum will <br />
         		<a id="pl.79.32"></a><var>79.32</var>be held in the school district at the November general election, the county auditor must <br />
         		<a id="pl.79.33"></a><var>79.33</var>note next to the school district's proposed amount that a referendum is pending and that, if <br />
         		<a id="pl.79.34"></a><var>79.34</var>approved by the voters, the tax amount may be higher than shown on the notice. In the <br />
         		<a id="pl.79.35"></a><var>79.35</var>case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be <br />
         		<a id="pl.79.36"></a><var>79.36</var>listed separately from the remaining amount of the city's levy. In the case of the city of <br />
         		<a id="pl.80.1"></a><var>80.1</var>St. Paul, the levy for the St. Paul Library Agency must be listed separately from the <br />
         		<a id="pl.80.2"></a><var>80.2</var>remaining amount of the city's levy. In the case of Ramsey County, any amount levied <br />
         		<a id="pl.80.3"></a><var>80.3</var>under section 
         <statute_ref>134.07</statute_ref> may be listed separately from the remaining amount of the county's <br />
         		<a id="pl.80.4"></a><var>80.4</var>levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax <br />
         		<a id="pl.80.5"></a><var>80.5</var>under chapter 276A or 473F applies, the proposed tax levy on the captured value or the <br />
         		<a id="pl.80.6"></a><var>80.6</var>proposed tax levy on the tax capacity subject to the areawide tax must each be stated <br />
         		<a id="pl.80.7"></a><var>80.7</var>separately and not included in the sum of the special taxing districts; and<br />
         		<a id="pl.80.8"></a><var>80.8</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) the increase or decrease between the total taxes payable in the current year and <br />
         		<a id="pl.80.9"></a><var>80.9</var>the total proposed taxes, expressed as a percentage.<br />
         		<a id="pl.80.10"></a><var>80.10</var>&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this section, the amount of the tax on homesteads qualifying under <br />
         		<a id="pl.80.11"></a><var>80.11</var>the senior citizens' property tax deferral program under chapter 290B is the total amount <br />
         		<a id="pl.80.12"></a><var>80.12</var>of property tax before subtraction of the deferred property tax amount.<br />
         		<a id="pl.80.13"></a><var>80.13</var>&nbsp;&nbsp;&nbsp;&nbsp;(e) The notice must clearly state that the proposed or final taxes do not include <br />
         		<a id="pl.80.14"></a><var>80.14</var>the following:<br />
         		<a id="pl.80.15"></a><var>80.15</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) special assessments;<br />
         		<a id="pl.80.16"></a><var>80.16</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) levies approved by the voters after the date the proposed taxes are certified, <br />
         		<a id="pl.80.17"></a><var>80.17</var>including bond referenda and school district levy referenda;<br />
         		<a id="pl.80.18"></a><var>80.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) a levy limit increase approved by the voters by the first Tuesday after the first <br />
         		<a id="pl.80.19"></a><var>80.19</var>Monday in November of the levy year as provided under section 
         <statute_ref>275.73</statute_ref>;<br />
         		<a id="pl.80.20"></a><var>80.20</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) amounts necessary to pay cleanup or other costs due to a natural disaster <br />
         		<a id="pl.80.21"></a><var>80.21</var>occurring after the date the proposed taxes are certified;<br />
         		<a id="pl.80.22"></a><var>80.22</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) amounts necessary to pay tort judgments against the taxing authority that become <br />
         		<a id="pl.80.23"></a><var>80.23</var>final after the date the proposed taxes are certified; and<br />
         		<a id="pl.80.24"></a><var>80.24</var>&nbsp;&nbsp;&nbsp;&nbsp;(6) the contamination tax imposed on properties which received market value <br />
         		<a id="pl.80.25"></a><var>80.25</var>reductions for contamination.<br />
         		<a id="pl.80.26"></a><var>80.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(f) Except as provided in subdivision 7, failure of the county auditor to prepare or <br />
         		<a id="pl.80.27"></a><var>80.27</var>the county treasurer to deliver the notice as required in this section does not invalidate the <br />
         		<a id="pl.80.28"></a><var>80.28</var>proposed or final tax levy or the taxes payable pursuant to the tax levy.<br />
         		<a id="pl.80.29"></a><var>80.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(g) If the notice the taxpayer receives under this section lists the property as <br />
         		<a id="pl.80.30"></a><var>80.30</var>nonhomestead, and satisfactory documentation is provided to the county assessor by the <br />
         		<a id="pl.80.31"></a><var>80.31</var>applicable deadline, and the property qualifies for the homestead classification in that <br />
         		<a id="pl.80.32"></a><var>80.32</var>assessment year, the assessor shall reclassify the property to homestead for taxes payable <br />
         		<a id="pl.80.33"></a><var>80.33</var>in the following year.<br />
         		<a id="pl.80.34"></a><var>80.34</var>&nbsp;&nbsp;&nbsp;&nbsp;(h) In the case of class 4 residential property used as a residence for lease or rental <br />
         		<a id="pl.80.35"></a><var>80.35</var>periods of 30 days or more, the taxpayer must either:<br />
         		<a id="pl.81.1"></a><var>81.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) mail or deliver a copy of the notice of proposed property taxes to each tenant, <br />
         		<a id="pl.81.2"></a><var>81.2</var>renter, or lessee; or<br />
         		<a id="pl.81.3"></a><var>81.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) post a copy of the notice in a conspicuous place on the premises of the property.<br />
         		<a id="pl.81.4"></a><var>81.4</var>&nbsp;&nbsp;&nbsp;&nbsp;The notice must be mailed or posted by the taxpayer by November 27 or within <br />
         		<a id="pl.81.5"></a><var>81.5</var>three days of receipt of the notice, whichever is later. A taxpayer may notify the county <br />
         		<a id="pl.81.6"></a><var>81.6</var>treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to <br />
         		<a id="pl.81.7"></a><var>81.7</var>which the notice must be mailed in order to fulfill the requirements of this paragraph.<br />
         		<a id="pl.81.8"></a><var>81.8</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing <br />
         		<a id="pl.81.9"></a><var>81.9</var>districts" means the following taxing districts in the seven-county metropolitan area that <br />
         		<a id="pl.81.10"></a><var>81.10</var>levy a property tax for any of the specified purposes listed below:<br />
         		<a id="pl.81.11"></a><var>81.11</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) Metropolitan Council under section 
         <statute_ref>473.132</statute_ref>, 
         <statute_ref>473.167</statute_ref>, 
         <statute_ref>473.249</statute_ref>, 
         <statute_ref>473.325</statute_ref>, <br />
         		
         <statute_ref><a id="pl.81.12"></a><var>81.12</var>473.446
         </statute_ref>, 
         <statute_ref>473.521</statute_ref>, 
         <statute_ref>473.547</statute_ref>, or 
         <statute_ref>473.834</statute_ref>;<br />
         		<a id="pl.81.13"></a><var>81.13</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) Metropolitan Airports Commission under section 
         <statute_ref>473.667</statute_ref>, 
         <statute_ref>473.671</statute_ref>, or 
         <statute_ref>473.672</statute_ref>; <br />
         		<a id="pl.81.14"></a><var>81.14</var>and<br />
         		<a id="pl.81.15"></a><var>81.15</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) Metropolitan Mosquito Control Commission under section 
         <statute_ref>473.711</statute_ref>.<br />
         		<a id="pl.81.16"></a><var>81.16</var>&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this section, any levies made by the regional rail authorities in the <br />
         		<a id="pl.81.17"></a><var>81.17</var>county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter <br />
         		<a id="pl.81.18"></a><var>81.18</var>398A shall be included with the appropriate county's levy.<br />
         		<a id="pl.81.19"></a><var>81.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(j) The governing body of a county, city, or school district may, with the consent <br />
         		<a id="pl.81.20"></a><var>81.20</var>of the county board, include supplemental information with the statement of proposed <br />
         		<a id="pl.81.21"></a><var>81.21</var>property taxes about the impact of state aid increases or decreases on property tax <br />
         		<a id="pl.81.22"></a><var>81.22</var>increases or decreases and on the level of services provided in the affected jurisdiction. <br />
         		<a id="pl.81.23"></a><var>81.23</var>This supplemental information may include information for the following year, the current <br />
         		<a id="pl.81.24"></a><var>81.24</var>year, and for as many consecutive preceding years as deemed appropriate by the governing <br />
         		<a id="pl.81.25"></a><var>81.25</var>body of the county, city, or school district. It may include only information regarding:<br />
         		<a id="pl.81.26"></a><var>81.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) the impact of inflation as measured by the implicit price deflator for state and <br />
         		<a id="pl.81.27"></a><var>81.27</var>local government purchases;<br />
         		<a id="pl.81.28"></a><var>81.28</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) population growth and decline;<br />
         		<a id="pl.81.29"></a><var>81.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) state or federal government action; and<br />
         		<a id="pl.81.30"></a><var>81.30</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) other financial factors that affect the level of property taxation and local services <br />
         		<a id="pl.81.31"></a><var>81.31</var>that the governing body of the county, city, or school district may deem appropriate to <br />
         		<a id="pl.81.32"></a><var>81.32</var>include.<br />
         		<a id="pl.81.33"></a><var>81.33</var>&nbsp;&nbsp;&nbsp;&nbsp;The information may be presented using tables, written narrative, and graphic <br />
         		<a id="pl.81.34"></a><var>81.34</var>representations and may contain instruction toward further sources of information or <br />
         		<a id="pl.81.35"></a><var>81.35</var>opportunity for comment.<br />
         		<a id="pl.81.36"></a><var>81.36</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2012.<br />
         		<br />
         		<a id="bill.7.7.0"></a><a id="pl.82.1"></a><var>82.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 7. Minnesota Statutes 2010, section 275.065, subdivision 3, is amended to read:<br />
         		<a id="pl.82.2"></a><var>82.2</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Notice of proposed property taxes.</b> (a) The county auditor shall prepare <br />
         		<a id="pl.82.3"></a><var>82.3</var>and the county treasurer shall deliver after November 10 and on or before November 24 <br />
         		<a id="pl.82.4"></a><var>82.4</var>each year, by first class mail to each taxpayer at the address listed on the county's current <br />
         		<a id="pl.82.5"></a><var>82.5</var>year's assessment roll, a notice of proposed property taxes. Upon written request by <br />
         		<a id="pl.82.6"></a><var>82.6</var>the taxpayer, the treasurer may send the notice in electronic form or by electronic mail <br />
         		<a id="pl.82.7"></a><var>82.7</var>instead of on paper or by ordinary mail.<br />
         		<a id="pl.82.8"></a><var>82.8</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) The commissioner of revenue shall prescribe the form of the notice.<br />
         		<a id="pl.82.9"></a><var>82.9</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) The notice must inform taxpayers that it contains the amount of property taxes <br />
         		<a id="pl.82.10"></a><var>82.10</var>each taxing authority proposes to collect for taxes payable the following year. In the <br />
         		<a id="pl.82.11"></a><var>82.11</var>case of a town, or in the case of the state general tax, the final tax amount will be its <br />
         		<a id="pl.82.12"></a><var>82.12</var>proposed tax. The notice must clearly state For each city that has a population over 500, <br />
         		<a id="pl.82.13"></a><var>82.13</var>county, school district, regional library authority established under section 
         <statute_ref>134.201</statute_ref>, and <br />
         		<a id="pl.82.14"></a><var>82.14</var>metropolitan taxing districts as defined in paragraph (i), the notice must state the time and <br />
         		<a id="pl.82.15"></a><var>82.15</var>place of a meeting for each taxing authority in which the budget and levy will be discussed <br />
         		<a id="pl.82.16"></a><var>82.16</var>and public input allowed, prior to the final budget and levy determination. For each special <br />
         		<a id="pl.82.17"></a><var>82.17</var>taxing district, the notice must: (1) list separately any levy by a special taxing district that <br />
         		<a id="pl.82.18"></a><var>82.18</var>exceeds 25 percent of the total of all special taxing district levies; and (2) provide county <br />
         		<a id="pl.82.19"></a><var>82.19</var>government contact information where additional information may be obtained for each <br />
         		<a id="pl.82.20"></a><var>82.20</var>special taxing district. The taxing authorities must provide the county auditor with the <br />
         		<a id="pl.82.21"></a><var>82.21</var>information to be included in the notice on or before the time it certifies its proposed <br />
         		<a id="pl.82.22"></a><var>82.22</var>levy under subdivision 1. The public must be allowed to speak at that meeting, which <br />
         		<a id="pl.82.23"></a><var>82.23</var>must occur after November 24 and must not be held before 6:00 p.m. It must provide a <br />
         		<a id="pl.82.24"></a><var>82.24</var>telephone number for the taxing authority that taxpayers may call if they have questions <br />
         		<a id="pl.82.25"></a><var>82.25</var>related to the notice and an address where comments will be received by mail, except that <br />
         		<a id="pl.82.26"></a><var>82.26</var>no notice required under this section shall be interpreted as requiring the printing of a <br />
         		<a id="pl.82.27"></a><var>82.27</var>personal telephone number or address as the contact information for a taxing authority. If <br />
         		<a id="pl.82.28"></a><var>82.28</var>a taxing authority does not maintain public offices where telephone calls can be received <br />
         		<a id="pl.82.29"></a><var>82.29</var>by the authority, the authority may inform the county of the lack of a public telephone <br />
         		<a id="pl.82.30"></a><var>82.30</var>number and the county shall not list a telephone number for that taxing authority.<br />
         		<a id="pl.82.31"></a><var>82.31</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) The notice must state for each parcel:<br />
         		<a id="pl.82.32"></a><var>82.32</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) the market value of the property as determined under section 
         <statute_ref>273.11</statute_ref>, and used <br />
         		<a id="pl.82.33"></a><var>82.33</var>for computing property taxes payable in the following year and for taxes payable in the <br />
         		<a id="pl.82.34"></a><var>82.34</var>current year as each appears in the records of the county assessor on November 1 of the <br />
         		<a id="pl.82.35"></a><var>82.35</var>current year; and, in the case of residential property, whether the property is classified as <br />
         		<a id="pl.83.1"></a><var>83.1</var>homestead or nonhomestead. The notice must clearly inform taxpayers of the years to <br />
         		<a id="pl.83.2"></a><var>83.2</var>which the market values apply and that the values are final values;<br />
         		<a id="pl.83.3"></a><var>83.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) the items listed below, shown separately by county, city or town, and state <br />
         		<a id="pl.83.4"></a><var>83.4</var>general tax, net of the residential and agricultural homestead credit under section <br />
         		
         <statute_ref><a id="pl.83.5"></a><var>83.5</var>273.1384
         </statute_ref>, voter approved school levy, other local school levy, and the sum of the each <br />
         		<a id="pl.83.6"></a><var>83.6</var>special taxing districts district, provided that the levies of all special taxing districts whose <br />
         		<a id="pl.83.7"></a><var>83.7</var>levies do not exceed 25 percent of the total amount of all special taxing district levies may <br />
         		<a id="pl.83.8"></a><var>83.8</var>be aggregated, and as a total of for all taxing authorities:<br />
         		<a id="pl.83.9"></a><var>83.9</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) the actual tax for taxes payable in the current year; and<br />
         		<a id="pl.83.10"></a><var>83.10</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) the proposed tax amount.<br />
         		<a id="pl.83.11"></a><var>83.11</var>&nbsp;&nbsp;&nbsp;&nbsp;If the county levy under clause (2) includes an amount for a lake improvement <br />
         		<a id="pl.83.12"></a><var>83.12</var>district as defined under sections 
         <statute_ref>103B.501</statute_ref> to 
         <statute_ref>103B.581</statute_ref>, the amount attributable for that <br />
         		<a id="pl.83.13"></a><var>83.13</var>purpose must be separately stated from the remaining county levy amount.<br />
         		<a id="pl.83.14"></a><var>83.14</var>&nbsp;&nbsp;&nbsp;&nbsp;In the case of a town or the state general tax, the final tax shall also be its proposed <br />
         		<a id="pl.83.15"></a><var>83.15</var>tax unless the town changes its levy at a special town meeting under section 
         <statute_ref>365.52</statute_ref>. If a <br />
         		<a id="pl.83.16"></a><var>83.16</var>school district has certified under section 
         <statute_ref>126C.17, subdivision 9</statute_ref>, that a referendum will <br />
         		<a id="pl.83.17"></a><var>83.17</var>be held in the school district at the November general election, the county auditor must <br />
         		<a id="pl.83.18"></a><var>83.18</var>note next to the school district's proposed amount that a referendum is pending and that, if <br />
         		<a id="pl.83.19"></a><var>83.19</var>approved by the voters, the tax amount may be higher than shown on the notice. In the <br />
         		<a id="pl.83.20"></a><var>83.20</var>case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be <br />
         		<a id="pl.83.21"></a><var>83.21</var>listed separately from the remaining amount of the city's levy. In the case of the city of <br />
         		<a id="pl.83.22"></a><var>83.22</var>St. Paul, the levy for the St. Paul Library Agency must be listed separately from the <br />
         		<a id="pl.83.23"></a><var>83.23</var>remaining amount of the city's levy. In the case of Ramsey County, any amount levied <br />
         		<a id="pl.83.24"></a><var>83.24</var>under section 
         <statute_ref>134.07</statute_ref> may be listed separately from the remaining amount of the county's <br />
         		<a id="pl.83.25"></a><var>83.25</var>levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax <br />
         		<a id="pl.83.26"></a><var>83.26</var>under chapter 276A or 473F applies, the proposed tax levy on the captured value or the <br />
         		<a id="pl.83.27"></a><var>83.27</var>proposed tax levy on the tax capacity subject to the areawide tax must each be stated <br />
         		<a id="pl.83.28"></a><var>83.28</var>separately and not included in the sum of the special taxing districts; and<br />
         		<a id="pl.83.29"></a><var>83.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) the increase or decrease between the total taxes payable in the current year and <br />
         		<a id="pl.83.30"></a><var>83.30</var>the total proposed taxes, expressed as a percentage.<br />
         		<a id="pl.83.31"></a><var>83.31</var>&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this section, the amount of the tax on homesteads qualifying under <br />
         		<a id="pl.83.32"></a><var>83.32</var>the senior citizens' property tax deferral program under chapter 290B is the total amount <br />
         		<a id="pl.83.33"></a><var>83.33</var>of property tax before subtraction of the deferred property tax amount.<br />
         		<a id="pl.83.34"></a><var>83.34</var>&nbsp;&nbsp;&nbsp;&nbsp;(e) The notice must clearly state that the proposed or final taxes do not include <br />
         		<a id="pl.83.35"></a><var>83.35</var>the following:<br />
         		<a id="pl.83.36"></a><var>83.36</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) special assessments;<br />
         		<a id="pl.84.1"></a><var>84.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) levies approved by the voters after the date the proposed taxes are certified, <br />
         		<a id="pl.84.2"></a><var>84.2</var>including bond referenda and school district levy referenda;<br />
         		<a id="pl.84.3"></a><var>84.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) a levy limit increase approved by the voters by the first Tuesday after the first <br />
         		<a id="pl.84.4"></a><var>84.4</var>Monday in November of the levy year as provided under section 
         <statute_ref>275.73</statute_ref>;<br />
         		<a id="pl.84.5"></a><var>84.5</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) amounts necessary to pay cleanup or other costs due to a natural disaster <br />
         		<a id="pl.84.6"></a><var>84.6</var>occurring after the date the proposed taxes are certified;<br />
         		<a id="pl.84.7"></a><var>84.7</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) amounts necessary to pay tort judgments against the taxing authority that become <br />
         		<a id="pl.84.8"></a><var>84.8</var>final after the date the proposed taxes are certified; and<br />
         		<a id="pl.84.9"></a><var>84.9</var>&nbsp;&nbsp;&nbsp;&nbsp;(6) the contamination tax imposed on properties which received market value <br />
         		<a id="pl.84.10"></a><var>84.10</var>reductions for contamination.<br />
         		<a id="pl.84.11"></a><var>84.11</var>&nbsp;&nbsp;&nbsp;&nbsp;(f) Except as provided in subdivision 7, failure of the county auditor to prepare or <br />
         		<a id="pl.84.12"></a><var>84.12</var>the county treasurer to deliver the notice as required in this section does not invalidate the <br />
         		<a id="pl.84.13"></a><var>84.13</var>proposed or final tax levy or the taxes payable pursuant to the tax levy.<br />
         		<a id="pl.84.14"></a><var>84.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(g) If the notice the taxpayer receives under this section lists the property as <br />
         		<a id="pl.84.15"></a><var>84.15</var>nonhomestead, and satisfactory documentation is provided to the county assessor by the <br />
         		<a id="pl.84.16"></a><var>84.16</var>applicable deadline, and the property qualifies for the homestead classification in that <br />
         		<a id="pl.84.17"></a><var>84.17</var>assessment year, the assessor shall reclassify the property to homestead for taxes payable <br />
         		<a id="pl.84.18"></a><var>84.18</var>in the following year.<br />
         		<a id="pl.84.19"></a><var>84.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(h) In the case of class 4 residential property used as a residence for lease or rental <br />
         		<a id="pl.84.20"></a><var>84.20</var>periods of 30 days or more, the taxpayer must either:<br />
         		<a id="pl.84.21"></a><var>84.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) mail or deliver a copy of the notice of proposed property taxes to each tenant, <br />
         		<a id="pl.84.22"></a><var>84.22</var>renter, or lessee; or<br />
         		<a id="pl.84.23"></a><var>84.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) post a copy of the notice in a conspicuous place on the premises of the property.<br />
         		<a id="pl.84.24"></a><var>84.24</var>&nbsp;&nbsp;&nbsp;&nbsp;The notice must be mailed or posted by the taxpayer by November 27 or within <br />
         		<a id="pl.84.25"></a><var>84.25</var>three days of receipt of the notice, whichever is later. A taxpayer may notify the county <br />
         		<a id="pl.84.26"></a><var>84.26</var>treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to <br />
         		<a id="pl.84.27"></a><var>84.27</var>which the notice must be mailed in order to fulfill the requirements of this paragraph.<br />
         		<a id="pl.84.28"></a><var>84.28</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing <br />
         		<a id="pl.84.29"></a><var>84.29</var>districts" means the following taxing districts in the seven-county metropolitan area that <br />
         		<a id="pl.84.30"></a><var>84.30</var>levy a property tax for any of the specified purposes listed below:<br />
         		<a id="pl.84.31"></a><var>84.31</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) Metropolitan Council under section 
         <statute_ref>473.132</statute_ref>, 
         <statute_ref>473.167</statute_ref>, 
         <statute_ref>473.249</statute_ref>, 
         <statute_ref>473.325</statute_ref>, <br />
         		
         <statute_ref><a id="pl.84.32"></a><var>84.32</var>473.446
         </statute_ref>, 
         <statute_ref>473.521</statute_ref>, 
         <statute_ref>473.547</statute_ref>, or 
         <statute_ref>473.834</statute_ref>;<br />
         		<a id="pl.84.33"></a><var>84.33</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) Metropolitan Airports Commission under section 
         <statute_ref>473.667</statute_ref>, 
         <statute_ref>473.671</statute_ref>, or 
         <statute_ref>473.672</statute_ref>; <br />
         		<a id="pl.84.34"></a><var>84.34</var>and<br />
         		<a id="pl.84.35"></a><var>84.35</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) Metropolitan Mosquito Control Commission under section 
         <statute_ref>473.711</statute_ref>.<br />
         		<a id="pl.85.1"></a><var>85.1</var>&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this section, any levies made by the regional rail authorities in the <br />
         		<a id="pl.85.2"></a><var>85.2</var>county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter <br />
         		<a id="pl.85.3"></a><var>85.3</var>398A shall be included with the appropriate county's levy.<br />
         		<a id="pl.85.4"></a><var>85.4</var>&nbsp;&nbsp;&nbsp;&nbsp;(j) The governing body of a county, city, or school district may, with the consent <br />
         		<a id="pl.85.5"></a><var>85.5</var>of the county board, include supplemental information with the statement of proposed <br />
         		<a id="pl.85.6"></a><var>85.6</var>property taxes about the impact of state aid increases or decreases on property tax <br />
         		<a id="pl.85.7"></a><var>85.7</var>increases or decreases and on the level of services provided in the affected jurisdiction. <br />
         		<a id="pl.85.8"></a><var>85.8</var>This supplemental information may include information for the following year, the current <br />
         		<a id="pl.85.9"></a><var>85.9</var>year, and for as many consecutive preceding years as deemed appropriate by the governing <br />
         		<a id="pl.85.10"></a><var>85.10</var>body of the county, city, or school district. It may include only information regarding:<br />
         		<a id="pl.85.11"></a><var>85.11</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) the impact of inflation as measured by the implicit price deflator for state and <br />
         		<a id="pl.85.12"></a><var>85.12</var>local government purchases;<br />
         		<a id="pl.85.13"></a><var>85.13</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) population growth and decline;<br />
         		<a id="pl.85.14"></a><var>85.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) state or federal government action; and<br />
         		<a id="pl.85.15"></a><var>85.15</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) other financial factors that affect the level of property taxation and local services <br />
         		<a id="pl.85.16"></a><var>85.16</var>that the governing body of the county, city, or school district may deem appropriate to <br />
         		<a id="pl.85.17"></a><var>85.17</var>include.<br />
         		<a id="pl.85.18"></a><var>85.18</var>&nbsp;&nbsp;&nbsp;&nbsp;The information may be presented using tables, written narrative, and graphic <br />
         		<a id="pl.85.19"></a><var>85.19</var>representations and may contain instruction toward further sources of information or <br />
         		<a id="pl.85.20"></a><var>85.20</var>opportunity for comment.<br />
         		<a id="pl.85.21"></a><var>85.21</var><b>EFFECTIVE DATE.</b>This section is effective for tax statements relating to taxes <br />
         		<a id="pl.85.22"></a><var>85.22</var>payable in 2014 and thereafter.<br />
         		<br />
         		<a id="bill.7.8.0"></a><a id="pl.85.23"></a><var>85.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 8. Minnesota Statutes 2011 Supplement, section 276.04, subdivision 2, is <br />
         		<a id="pl.85.24"></a><var>85.24</var>amended to read:<br />
         		<a id="pl.85.25"></a><var>85.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Contents of tax statements.</b> (a) The treasurer shall provide for the <br />
         		<a id="pl.85.26"></a><var>85.26</var>printing of the tax statements. The commissioner of revenue shall prescribe the form of <br />
         		<a id="pl.85.27"></a><var>85.27</var>the property tax statement and its contents. The tax statement must not state or imply <br />
         		<a id="pl.85.28"></a><var>85.28</var>that property tax credits are paid by the state of Minnesota. The statement must contain <br />
         		<a id="pl.85.29"></a><var>85.29</var>a tabulated statement of the dollar amount due to each taxing authority and the amount <br />
         		<a id="pl.85.30"></a><var>85.30</var>of the state tax from the parcel of real property for which a particular tax statement is <br />
         		<a id="pl.85.31"></a><var>85.31</var>prepared. The dollar amounts attributable to the county, the state tax, the voter approved <br />
         		<a id="pl.85.32"></a><var>85.32</var>school tax, the other local school tax, the township or municipality, and the total of <br />
         		<a id="pl.85.33"></a><var>85.33</var>the metropolitan special taxing districts as defined in section 
         <statute_ref>275.065, subdivision 3</statute_ref>, <br />
         		<a id="pl.85.34"></a><var>85.34</var>paragraph (i), must be separately stated. The amounts due all other special taxing districts, <br />
         		<a id="pl.85.35"></a><var>85.35</var>if any, may be aggregated except that (1) any levies made by the regional rail authorities <br />
         		<a id="pl.86.1"></a><var>86.1</var>in the county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under <br />
         		<a id="pl.86.2"></a><var>86.2</var>chapter 398A shall be listed on a separate line directly under the appropriate county's <br />
         		<a id="pl.86.3"></a><var>86.3</var>levy, and (2) any levy by a special taxing district that exceeds 25 percent of the total of all <br />
         		<a id="pl.86.4"></a><var>86.4</var>special taxing district levies on a tax statement must be separately stated. If the county <br />
         		<a id="pl.86.5"></a><var>86.5</var>levy under this paragraph includes an amount for a lake improvement district as defined <br />
         		<a id="pl.86.6"></a><var>86.6</var>under sections 
         <statute_ref>103B.501</statute_ref> to 
         <statute_ref>103B.581</statute_ref>, the amount attributable for that purpose must be <br />
         		<a id="pl.86.7"></a><var>86.7</var>separately stated from the remaining county levy amount. In the case of Ramsey County, <br />
         		<a id="pl.86.8"></a><var>86.8</var>if the county levy under this paragraph includes an amount for public library service <br />
         		<a id="pl.86.9"></a><var>86.9</var>under section 
         <statute_ref>134.07</statute_ref>, the amount attributable for that purpose may be separated from the <br />
         		<a id="pl.86.10"></a><var>86.10</var>remaining county levy amount. The amount of the tax on homesteads qualifying under the <br />
         		<a id="pl.86.11"></a><var>86.11</var>senior citizens' property tax deferral program under chapter 290B is the total amount of <br />
         		<a id="pl.86.12"></a><var>86.12</var>property tax before subtraction of the deferred property tax amount. The amount of the <br />
         		<a id="pl.86.13"></a><var>86.13</var>tax on contamination value imposed under sections 
         <statute_ref>270.91</statute_ref> to 
         <statute_ref>270.98</statute_ref>, if any, must also <br />
         		<a id="pl.86.14"></a><var>86.14</var>be separately stated. The dollar amounts, including the dollar amount of any special <br />
         		<a id="pl.86.15"></a><var>86.15</var>assessments, may be rounded to the nearest even whole dollar. For purposes of this section <br />
         		<a id="pl.86.16"></a><var>86.16</var>whole odd-numbered dollars may be adjusted to the next higher even-numbered dollar. <br />
         		<a id="pl.86.17"></a><var>86.17</var>The amount of market value excluded under section 
         <statute_ref>273.11, subdivision 16</statute_ref>, if any, must <br />
         		<a id="pl.86.18"></a><var>86.18</var>also be listed on the tax statement.<br />
         		<a id="pl.86.19"></a><var>86.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) The property tax statements for manufactured homes and sectional structures <br />
         		<a id="pl.86.20"></a><var>86.20</var>taxed as personal property shall contain the same information that is required on the <br />
         		<a id="pl.86.21"></a><var>86.21</var>tax statements for real property.<br />
         		<a id="pl.86.22"></a><var>86.22</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) Real and personal property tax statements must contain the following information <br />
         		<a id="pl.86.23"></a><var>86.23</var>in the order given in this paragraph. The information must contain the current year tax <br />
         		<a id="pl.86.24"></a><var>86.24</var>information in the right column with the corresponding information for the previous year <br />
         		<a id="pl.86.25"></a><var>86.25</var>in a column on the left:<br />
         		<a id="pl.86.26"></a><var>86.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) the property's estimated market value under section 
         <statute_ref>273.11, subdivision 1</statute_ref>;<br />
         		<a id="pl.86.27"></a><var>86.27</var>(2) the property's homestead market value exclusion under section 
         <statute_ref>273.13</statute_ref>, <br />
         		<a id="pl.86.28"></a><var>86.28</var>subdivision 35;<br />
         		<a id="pl.86.29"></a><var>86.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) the property's taxable market value after reductions under sections 
         <statute_ref>273.11</statute_ref>, <br />
         		<a id="pl.86.30"></a><var>86.30</var>subdivisions 1a and 16, and 
         <statute_ref>273.13, subdivision 35</statute_ref>;<br />
         		<a id="pl.86.31"></a><var>86.31</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) the property's gross tax, before credits;<br />
         		<a id="pl.86.32"></a><var>86.32</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) for homestead agricultural properties, the credit under section 
         <statute_ref>273.1384</statute_ref>;<br />
         		<a id="pl.86.33"></a><var>86.33</var>&nbsp;&nbsp;&nbsp;&nbsp;(6) any credits received under sections 
         <statute_ref>273.119</statute_ref>; 
         <statute_ref>273.1234</statute_ref> or 
         <statute_ref>273.1235</statute_ref>; 
         <statute_ref>273.135</statute_ref>; <br />
         		
         <statute_ref><a id="pl.86.34"></a><var>86.34</var>273.1391
         </statute_ref>; 
         <statute_ref>273.1398, subdivision 4</statute_ref>; 
         <statute_ref>469.171</statute_ref>; and 
         <statute_ref>473H.10</statute_ref>, except that the amount of <br />
         		<a id="pl.86.35"></a><var>86.35</var>credit received under section 
         <statute_ref>273.135</statute_ref> must be separately stated and identified as "taconite <br />
         		<a id="pl.86.36"></a><var>86.36</var>tax relief"; and<br />
         		<a id="pl.87.1"></a><var>87.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(7) the net tax payable in the manner required in paragraph (a).<br />
         		<a id="pl.87.2"></a><var>87.2</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) If the county uses envelopes for mailing property tax statements and if the county <br />
         		<a id="pl.87.3"></a><var>87.3</var>agrees, a taxing district may include a notice with the property tax statement notifying <br />
         		<a id="pl.87.4"></a><var>87.4</var>taxpayers when the taxing district will begin its budget deliberations for the current <br />
         		<a id="pl.87.5"></a><var>87.5</var>year, and encouraging taxpayers to attend the hearings. If the county allows notices to <br />
         		<a id="pl.87.6"></a><var>87.6</var>be included in the envelope containing the property tax statement, and if more than <br />
         		<a id="pl.87.7"></a><var>87.7</var>one taxing district relative to a given property decides to include a notice with the tax <br />
         		<a id="pl.87.8"></a><var>87.8</var>statement, the county treasurer or auditor must coordinate the process and may combine <br />
         		<a id="pl.87.9"></a><var>87.9</var>the information on a single announcement.<br />
         		<a id="pl.87.10"></a><var>87.10</var><b>EFFECTIVE DATE.</b>This section is effective for tax statements relating to taxes <br />
         		<a id="pl.87.11"></a><var>87.11</var>payable in 2014 and thereafter.<br />
         		<br />
         		<a id="bill.7.9.0"></a><a id="pl.87.12"></a><var>87.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 9. Minnesota Statutes 2010, section 290A.04, subdivision 2h, is amended to read:<br />
         		<a id="pl.87.13"></a><var>87.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2h. <b>Additional refund.</b> (a) If the gross property taxes payable on a homestead <br />
         		<a id="pl.87.14"></a><var>87.14</var>increase more than 12 percent over the property taxes payable in the prior year on the same <br />
         		<a id="pl.87.15"></a><var>87.15</var>property that is owned and occupied by the same owner on January 2 of both years, and the <br />
         		<a id="pl.87.16"></a><var>87.16</var>amount of that increase is $100 or more, a claimant who is a homeowner shall be allowed <br />
         		<a id="pl.87.17"></a><var>87.17</var>an additional refund equal to 60 75 percent of the amount of the increase over the greater <br />
         		<a id="pl.87.18"></a><var>87.18</var>of 12 percent of the prior year's property taxes payable or $100. This subdivision shall not <br />
         		<a id="pl.87.19"></a><var>87.19</var>apply to any increase in the gross property taxes payable attributable to improvements <br />
         		<a id="pl.87.20"></a><var>87.20</var>made to the homestead after the assessment date for the prior year's taxes. This subdivision <br />
         		<a id="pl.87.21"></a><var>87.21</var>shall not apply to any increase in the gross property taxes payable attributable to the <br />
         		<a id="pl.87.22"></a><var>87.22</var>termination of valuation exclusions under section 
         <statute_ref>273.11, subdivision 16</statute_ref>.<br />
         		<a id="pl.87.23"></a><var>87.23</var>The maximum refund allowed under this subdivision is $1,000.<br />
         		<a id="pl.87.24"></a><var>87.24</var>(b) For purposes of this subdivision "gross property taxes payable" means property <br />
         		<a id="pl.87.25"></a><var>87.25</var>taxes payable determined without regard to the refund allowed under this subdivision.<br />
         		<a id="pl.87.26"></a><var>87.26</var>(c) In addition to the other proofs required by this chapter, each claimant under <br />
         		<a id="pl.87.27"></a><var>87.27</var>this subdivision shall file with the property tax refund return a copy of the property tax <br />
         		<a id="pl.87.28"></a><var>87.28</var>statement for taxes payable in the preceding year or other documents required by the <br />
         		<a id="pl.87.29"></a><var>87.29</var>commissioner.<br />
         		<a id="pl.87.30"></a><var>87.30</var>(d) Upon request, the appropriate county official shall make available the names and <br />
         		<a id="pl.87.31"></a><var>87.31</var>addresses of the property taxpayers who may be eligible for the additional property tax <br />
         		<a id="pl.87.32"></a><var>87.32</var>refund under this section. The information shall be provided on a magnetic computer <br />
         		<a id="pl.87.33"></a><var>87.33</var>disk. The county may recover its costs by charging the person requesting the information <br />
         		<a id="pl.87.34"></a><var>87.34</var>the reasonable cost for preparing the data. The information may not be used for any <br />
         		<a id="pl.88.1"></a><var>88.1</var>purpose other than for notifying the homeowner of potential eligibility and assisting the <br />
         		<a id="pl.88.2"></a><var>88.2</var>homeowner, without charge, in preparing a refund claim.<br />
         		<a id="pl.88.3"></a><var>88.3</var><b>EFFECTIVE DATE.</b>This section is effective beginning with refunds based on <br />
         		<a id="pl.88.4"></a><var>88.4</var>taxes payable in 2013.<br />
         		<br />
         		<a id="bill.7.10.0"></a><a id="pl.88.5"></a><var>88.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 10. <b>[471.703] EXPENDITURE TYPE REPORTING.</b><br />
         		<a id="pl.88.6"></a><var>88.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Purpose.</b> In order to facilitate involvement of the public in local <br />
         		<a id="pl.88.7"></a><var>88.7</var>government budgeting, municipalities shall provide the following budgetary information <br />
         		<a id="pl.88.8"></a><var>88.8</var>on a municipal Web site, except as provided in subdivision 4, and publicize the availability <br />
         		<a id="pl.88.9"></a><var>88.9</var>of this information as part of the property tax and budget notices required in section <br />
         		<a id="pl.88.10"></a><var>88.10</var>275.065.<br />
         		<a id="pl.88.11"></a><var>88.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Definitions.</b> (a) For purposes of this section, the following terms have the <br />
         		<a id="pl.88.12"></a><var>88.12</var>meanings given in this subdivision.<br />
         		<a id="pl.88.13"></a><var>88.13</var>(b) "Municipality" means a county with a population of more than 5,000 or a home <br />
         		<a id="pl.88.14"></a><var>88.14</var>rule charter or statutory city with a population of more than 5,000.<br />
         		<a id="pl.88.15"></a><var>88.15</var>(c) "Population" means the population of the municipality as established by the last <br />
         		<a id="pl.88.16"></a><var>88.16</var>federal census, by a special census conducted under contract with the United States Bureau <br />
         		<a id="pl.88.17"></a><var>88.17</var>of the Census, by a population estimate made by the Metropolitan Council pursuant to <br />
         		<a id="pl.88.18"></a><var>88.18</var>section 
         <statute_ref>473.24</statute_ref>, or by a population estimate of the state demographer made pursuant to <br />
         		<a id="pl.88.19"></a><var>88.19</var>section 
         <statute_ref>4A.02</statute_ref>, whichever is the most recent as to the stated date of the count or estimate for <br />
         		<a id="pl.88.20"></a><var>88.20</var>the preceding calendar year, and which has been certified to the commissioner of revenue <br />
         		<a id="pl.88.21"></a><var>88.21</var>on or before July 15 of the year in which the information is required to be reported.<br />
         		<a id="pl.88.22"></a><var>88.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Electronic budgetary information.</b> (a) By July 31 of each year, a <br />
         		<a id="pl.88.23"></a><var>88.23</var>municipality shall publish on its Web site, except as provided in subdivision 4, four years <br />
         		<a id="pl.88.24"></a><var>88.24</var>of budget information on both revenues and expenditures organized by function and by <br />
         		<a id="pl.88.25"></a><var>88.25</var>expenditure type. The four years shall include actual data from the three most recently <br />
         		<a id="pl.88.26"></a><var>88.26</var>concluded budget years and estimated data for the current budget year.<br />
         		<a id="pl.88.27"></a><var>88.27</var>(b) The governmental funds included in the budget information required under <br />
         		<a id="pl.88.28"></a><var>88.28</var>this section shall include the municipality's general fund, debt service fund, and special <br />
         		<a id="pl.88.29"></a><var>88.29</var>revenue funds, except for special revenue funds specifically used for the acquisition and <br />
         		<a id="pl.88.30"></a><var>88.30</var>construction of major capital facilities. The reported information shall also exclude <br />
         		<a id="pl.88.31"></a><var>88.31</var>enterprise funds and fiduciary funds.<br />
         		<a id="pl.88.32"></a><var>88.32</var>(c) The forms and reporting requirements for revenues and expenditures by function <br />
         		<a id="pl.88.33"></a><var>88.33</var>shall be established by the state auditor's office and shall be based on the revenue and <br />
         		<a id="pl.88.34"></a><var>88.34</var>expenditure breakdowns used by that office in the five-year summary tables for annual <br />
         		<a id="pl.89.1"></a><var>89.1</var>revenue, expenditure, and debt reports for counties and cities with a population over <br />
         		<a id="pl.89.2"></a><var>89.2</var>2,500, under section 6.75.<br />
         		<a id="pl.89.3"></a><var>89.3</var>(d) The forms and reporting requirements for expenditures by expenditure type shall <br />
         		<a id="pl.89.4"></a><var>89.4</var>be established by the state auditor's office and at minimum shall include the following line <br />
         		<a id="pl.89.5"></a><var>89.5</var>items: employee costs, purchased services, supplies, central services, capital items, debt <br />
         		<a id="pl.89.6"></a><var>89.6</var>service, transfer to other funds, and miscellaneous; with employee costs further subdivided <br />
         		<a id="pl.89.7"></a><var>89.7</var>into the following items: wages and salaries, pensions, Social Security, health care, and <br />
         		<a id="pl.89.8"></a><var>89.8</var>other benefits. The state auditor shall consult with the commissioner of management and <br />
         		<a id="pl.89.9"></a><var>89.9</var>budget, city and county representatives, and members of the governmental accounting <br />
         		<a id="pl.89.10"></a><var>89.10</var>community in developing the definition of expenditure types for reporting purposes.<br />
         		<a id="pl.89.11"></a><var>89.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Alternative publication of budgetary information.</b> A municipality <br />
         		<a id="pl.89.12"></a><var>89.12</var>that does not maintain an official Web site must either (1) set up a separate Web site to <br />
         		<a id="pl.89.13"></a><var>89.13</var>make accessible the budgetary information as required in subdivision 3, or (2) publish the <br />
         		<a id="pl.89.14"></a><var>89.14</var>same information required in subdivision 3 by August 31 of each year in one issue of the <br />
         		<a id="pl.89.15"></a><var>89.15</var>official newspaper of the municipality. If a county publishes the information in its official <br />
         		<a id="pl.89.16"></a><var>89.16</var>newspaper it must also publish the same information in one other newspaper, if one of <br />
         		<a id="pl.89.17"></a><var>89.17</var>general circulation is located in a different city in the county than the official newspaper. <br />
         		<a id="pl.89.18"></a><var>89.18</var>The state auditor must prescribe the form for the newspaper notice.<br />
         		<a id="pl.89.19"></a><var>89.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Incentives.</b> In 2012 only, a city or county that complies with the <br />
         		<a id="pl.89.20"></a><var>89.20</var>requirement of this section and section 6.91, subdivision 1, shall receive the benefits <br />
         		<a id="pl.89.21"></a><var>89.21</var>pursuant to section 6.91, subdivision 2.<br />
         		<a id="pl.89.22"></a><var>89.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <b>Penalties.</b> In 2013 and thereafter, failure of a municipality to provide <br />
         		<a id="pl.89.23"></a><var>89.23</var>the information required in this section shall result in the withholding of aids payable <br />
         		<a id="pl.89.24"></a><var>89.24</var>the following calendar year under sections 162.01 to 162.14, 423A.02, and 477A.011 <br />
         		<a id="pl.89.25"></a><var>89.25</var>to 477A.014.<br />
         		<a id="pl.89.26"></a><var>89.26</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2012.<br />
         		<br />
         		<a id="bill.7.11.0"></a><a id="pl.89.27"></a><var>89.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 11. Minnesota Statutes 2010, section 477A.017, subdivision 3, is amended to read:<br />
         		<a id="pl.89.28"></a><var>89.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Conformity.</b> Other law to the contrary notwithstanding, in order to receive <br />
         		<a id="pl.89.29"></a><var>89.29</var>distributions under sections 
         <statute_ref>477A.011</statute_ref> to 
         <statute_ref>477A.03</statute_ref>, counties and cities must conform to <br />
         		<a id="pl.89.30"></a><var>89.30</var>the standards set in subdivision 2 in making all financial reports required to be made to <br />
         		<a id="pl.89.31"></a><var>89.31</var>the state auditor after June 30, 1984 by the deadline set by the state auditor. Counties and <br />
         		<a id="pl.89.32"></a><var>89.32</var>cities that fail to submit the required information to the state auditor within 45 days of <br />
         		<a id="pl.89.33"></a><var>89.33</var>the reporting deadline shall forfeit an amount equal to ten percent of the distributions <br />
         		<a id="pl.89.34"></a><var>89.34</var>under sections 477A.011 to 477A.03. Counties and cities that fail to submit the required <br />
         		<a id="pl.89.35"></a><var>89.35</var>information within 60 days of the reporting deadline shall forfeit an amount equal to 30 <br />
         		<a id="pl.90.1"></a><var>90.1</var>percent of the distributions. Counties and cities that fail to submit the required information <br />
         		<a id="pl.90.2"></a><var>90.2</var>within 90 days of the reporting deadline shall forfeit an amount equal to 50 percent of the <br />
         		<a id="pl.90.3"></a><var>90.3</var>distributions.<br />
         		<a id="pl.90.4"></a><var>90.4</var><b>EFFECTIVE DATE.</b>This section is effective for financial reports for calendar <br />
         		<a id="pl.90.5"></a><var>90.5</var>year 2012 and thereafter.<br />
         		<br />
         		<a id="bill.7.12.0"></a><a id="pl.90.6"></a><var>90.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 12. Laws 1988, chapter 645, section 3, as amended by Laws 1999, chapter 243, <br />
         		<a id="pl.90.7"></a><var>90.7</var>article 6, section 9, Laws 2000, chapter 490, article 6, section 15, and Laws 2008, chapter <br />
         		<a id="pl.90.8"></a><var>90.8</var>154, article 2, section 30, is amended to read:<br />
         		<a id="pl.90.9"></a><var>90.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. <b>TAX; PAYMENT OF EXPENSES.</b><br />
         		<a id="pl.90.10"></a><var>90.10</var>&nbsp;&nbsp;&nbsp;&nbsp;(a) The tax levied by the hospital district under Minnesota Statutes, section 
         <statute_ref>447.34</statute_ref>, <br />
         		<a id="pl.90.11"></a><var>90.11</var>must not be levied at a rate that exceeds the amount authorized to be levied under that <br />
         		<a id="pl.90.12"></a><var>90.12</var>section. The proceeds of the tax may be used for all purposes of the hospital district, <br />
         		<a id="pl.90.13"></a><var>90.13</var>except as provided in paragraph (b).<br />
         		<a id="pl.90.14"></a><var>90.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) 0.015 percent of taxable market value of the tax in paragraph (a) may be used <br />
         		<a id="pl.90.15"></a><var>90.15</var>solely by the Cook ambulance service and the Orr ambulance service for the purpose of <br />
         		<a id="pl.90.16"></a><var>90.16</var>capital expenditures as it relates to:<br />
         		<a id="pl.90.17"></a><var>90.17</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) ambulance acquisitions for the Cook ambulance service and the Orr ambulance <br />
         		<a id="pl.90.18"></a><var>90.18</var>service and not;<br />
         		<a id="pl.90.19"></a><var>90.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) attached and portable equipment for use in and for the ambulances; and<br />
         		<a id="pl.90.20"></a><var>90.20</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) parts and replacement parts for maintenance and repair of the ambulances.<br />
         		<a id="pl.90.21"></a><var>90.21</var>The money may not be used for administrative, operation,  or salary expenses.<br />
         		<a id="pl.90.22"></a><var>90.22</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) The part of the levy referred to in paragraph (b) must be administered by the Cook <br />
         		<a id="pl.90.23"></a><var>90.23</var>Hospital and passed on directly to the Cook area ambulance service board and the city of <br />
         		<a id="pl.90.24"></a><var>90.24</var>Orr to be held in trust until funding for a new ambulance is needed by either the Cook <br />
         		<a id="pl.90.25"></a><var>90.25</var>ambulance service or the Orr ambulance service used for the purposes in paragraph (b).<br />
         		<br />
         		<a id="bill.7.13.0"></a><a id="pl.90.26"></a><var>90.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 13. Laws 1999, chapter 243, article 6, section 11, is amended to read:<br />
         		<a id="pl.90.27"></a><var>90.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 11. <b>CEMETERY LEVY FOR SAWYER BY CARLTON COUNTY.</b><br />
         		<a id="pl.90.28"></a><var>90.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Levy authorized.</b> Notwithstanding other law to the contrary, the <br />
         		<a id="pl.90.29"></a><var>90.29</var>Carlton county board of commissioners may annually levy in and for the unorganized <br />
         		<a id="pl.90.30"></a><var>90.30</var>township of Sawyer an amount up to $1,000 annually for cemetery purposes, beginning <br />
         		<a id="pl.90.31"></a><var>90.31</var>with taxes payable in 2000 and ending with taxes payable in 2009.<br />
         		<a id="pl.90.32"></a><var>90.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Effective date.</b> This section is effective June 1, 1999, without local <br />
         		<a id="pl.90.33"></a><var>90.33</var>approval.<br />
         		<a id="pl.91.1"></a><var>91.1</var><b>EFFECTIVE DATE; LOCAL APPROVAL.</b>This section applies to taxes <br />
         		<a id="pl.91.2"></a><var>91.2</var>payable in 2013 and thereafter, and is effective the day after the Carlton county board <br />
         		<a id="pl.91.3"></a><var>91.3</var>of commissioners and its chief clerical officer timely complete their compliance with <br />
         		<a id="pl.91.4"></a><var>91.4</var>Minnesota Statutes, section 645.021, subdivisions 2 and 3.<br />
         		<br />
         		<a id="bill.7.14.0"></a><a id="pl.91.5"></a><var>91.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 14. Laws 2010, chapter 389, article 1, section 12, the effective date, is amended to <br />
         		<a id="pl.91.6"></a><var>91.6</var>read:<br />
         		<a id="pl.91.7"></a><var>91.7</var><b>EFFECTIVE DATE.</b>This section is effective for assessment years year 2010 and <br />
         		<a id="pl.91.8"></a><var>91.8</var>2011, for taxes payable in 2011 and 2012 thereafter.<br />
         		<a id="pl.91.9"></a><var>91.9</var><b>EFFECTIVE DATE.</b>This section is effective for assessment year 2012 and <br />
         		<a id="pl.91.10"></a><var>91.10</var>thereafter.<br />
         		<br />
         		<a id="bill.7.15.0"></a><a id="pl.91.11"></a><var>91.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 15. <b>HOLDING OF PROPERTY FOR ECONOMIC DEVELOPMENT; </b><br />
         		<a id="pl.91.12"></a><var>91.12</var><b>TEMPORARY EXTENSION.</b><br />
         		<a id="pl.91.13"></a><var>91.13</var>&nbsp;&nbsp;&nbsp;&nbsp;(a) For purposes of Minnesota Statutes, section 272.02, subdivision 39, a political <br />
         		<a id="pl.91.14"></a><var>91.14</var>subdivision's holding for resale for economic development of a property that is located in <br />
         		<a id="pl.91.15"></a><var>91.15</var>a city in the metropolitan area, or in a city with a population of more than 5,000 outside <br />
         		<a id="pl.91.16"></a><var>91.16</var>of the metropolitan area, as defined in Minnesota Statutes, section 473.121, subdivision <br />
         		<a id="pl.91.17"></a><var>91.17</var>2, for up to ten years, is a public purpose.<br />
         		<a id="pl.91.18"></a><var>91.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) The authority under this section expires on December 31, 2015.<br />
         		<a id="pl.91.19"></a><var>91.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.7.16.0"></a><a id="pl.91.20"></a><var>91.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 16. <b> REPEALER.</b><br />
         		<a id="pl.91.21"></a><var>91.21</var>Minnesota Statutes 2010, section 270C.991, subdivision 5, is repealed.<br />
         		<a id="pl.91.22"></a><var>91.22</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.8.0.0"></a><div class="xtend_ce"><a id="pl.91.23"></a><var>91.23</var><b>ARTICLE 8</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.91.24"></a><var>91.24</var><b>INDIVIDUAL INCOME AND CORPORATE FRANCHISE TAXES</b><br />
            		
         </div><br />
         		<a id="bill.8.1.0"></a><a id="pl.91.25"></a><var>91.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. Minnesota Statutes 2011 Supplement, section 116J.8737, subdivision 1, <br />
         		<a id="pl.91.26"></a><var>91.26</var>is amended to read:<br />
         		<a id="pl.91.27"></a><var>91.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Definitions.</b> (a) For the purposes of this section, the following terms <br />
         		<a id="pl.91.28"></a><var>91.28</var>have the meanings given.<br />
         		<a id="pl.91.29"></a><var>91.29</var>(b) "Qualified small business" means a business that has been certified by the <br />
         		<a id="pl.91.30"></a><var>91.30</var>commissioner under subdivision 2.<br />
         		<a id="pl.92.1"></a><var>92.1</var>(c) "Qualified investor" means an investor who has been certified by the <br />
         		<a id="pl.92.2"></a><var>92.2</var>commissioner under subdivision 3.<br />
         		<a id="pl.92.3"></a><var>92.3</var>(d) "Qualified fund" means a pooled angel investment network fund that has been <br />
         		<a id="pl.92.4"></a><var>92.4</var>certified by the commissioner under subdivision 4.<br />
         		<a id="pl.92.5"></a><var>92.5</var>(e) "Qualified investment" means a cash investment in a qualified small business <br />
         		<a id="pl.92.6"></a><var>92.6</var>of a minimum of:<br />
         		<a id="pl.92.7"></a><var>92.7</var>(1) $10,000 in a calendar year by a qualified investor; or<br />
         		<a id="pl.92.8"></a><var>92.8</var>(2) $30,000 in a calendar year by a qualified fund.<br />
         		<a id="pl.92.9"></a><var>92.9</var>A qualified investment must be made in exchange for common stock, a partnership <br />
         		<a id="pl.92.10"></a><var>92.10</var>or membership interest, preferred stock, debt with mandatory conversion to equity, or an <br />
         		<a id="pl.92.11"></a><var>92.11</var>equivalent ownership interest as determined by the commissioner.<br />
         		<a id="pl.92.12"></a><var>92.12</var>(f) "Family" means a family member within the meaning of the Internal Revenue <br />
         		<a id="pl.92.13"></a><var>92.13</var>Code, section 267(c)(4).<br />
         		<a id="pl.92.14"></a><var>92.14</var>(g) "Pass-through entity" means a corporation that for the applicable taxable year is <br />
         		<a id="pl.92.15"></a><var>92.15</var>treated as an S corporation or a general partnership, limited partnership, limited liability <br />
         		<a id="pl.92.16"></a><var>92.16</var>partnership, trust, or limited liability company and which for the applicable taxable year is <br />
         		<a id="pl.92.17"></a><var>92.17</var>not taxed as a corporation under chapter 290.<br />
         		<a id="pl.92.18"></a><var>92.18</var>(h) "Intern" means a student of an accredited institution of higher education, or a <br />
         		<a id="pl.92.19"></a><var>92.19</var>former student who has graduated in the past six months from an accredited institution <br />
         		<a id="pl.92.20"></a><var>92.20</var>of higher education, who is employed by a qualified small business in a nonpermanent <br />
         		<a id="pl.92.21"></a><var>92.21</var>position for a duration of nine months or less that provides training and experience in the <br />
         		<a id="pl.92.22"></a><var>92.22</var>primary business activity of the business.<br />
         		<a id="pl.92.23"></a><var>92.23</var>(i) "Liquidation event" means a conversion of qualified investment for cash, cash <br />
         		<a id="pl.92.24"></a><var>92.24</var>and other consideration, or any other form of equity or debt interest.<br />
         		<a id="pl.92.25"></a><var>92.25</var><b>EFFECTIVE DATE.</b>This section is effective for qualified small businesses <br />
         		<a id="pl.92.26"></a><var>92.26</var>certified after June 30, 2012.<br />
         		<br />
         		<a id="bill.8.2.0"></a><a id="pl.92.27"></a><var>92.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. Minnesota Statutes 2011 Supplement, section 116J.8737, subdivision 2, is <br />
         		<a id="pl.92.28"></a><var>92.28</var>amended to read:<br />
         		<a id="pl.92.29"></a><var>92.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Certification of qualified small businesses.</b> (a) Businesses may apply <br />
         		<a id="pl.92.30"></a><var>92.30</var>to the commissioner for certification as a qualified small business for a calendar year. <br />
         		<a id="pl.92.31"></a><var>92.31</var>The application must be in the form and be made under the procedures specified by the <br />
         		<a id="pl.92.32"></a><var>92.32</var>commissioner, accompanied by an application fee of $150. Application fees are deposited <br />
         		<a id="pl.92.33"></a><var>92.33</var>in the small business investment tax credit administration account in the special revenue <br />
         		<a id="pl.92.34"></a><var>92.34</var>fund. The application for certification for 2010 must be made available on the department's <br />
         		<a id="pl.93.1"></a><var>93.1</var>Web site by August 1, 2010. Applications for subsequent years' certification must be made <br />
         		<a id="pl.93.2"></a><var>93.2</var>available on the department's Web site by November 1 of the preceding year.<br />
         		<a id="pl.93.3"></a><var>93.3</var>(b) Within 30 days of receiving an application for certification under this subdivision, <br />
         		<a id="pl.93.4"></a><var>93.4</var>the commissioner must either certify the business as satisfying the conditions required of a <br />
         		<a id="pl.93.5"></a><var>93.5</var>qualified small business, request additional information from the business, or reject the <br />
         		<a id="pl.93.6"></a><var>93.6</var>application for certification. If the commissioner requests additional information from the <br />
         		<a id="pl.93.7"></a><var>93.7</var>business, the commissioner must either certify the business or reject the application within <br />
         		<a id="pl.93.8"></a><var>93.8</var>30 days of receiving the additional information. If the commissioner neither certifies the <br />
         		<a id="pl.93.9"></a><var>93.9</var>business nor rejects the application within 30 days of receiving the original application or <br />
         		<a id="pl.93.10"></a><var>93.10</var>within 30 days of receiving the additional information requested, whichever is later, then <br />
         		<a id="pl.93.11"></a><var>93.11</var>the application is deemed rejected, and the commissioner must refund the $150 application <br />
         		<a id="pl.93.12"></a><var>93.12</var>fee. A business that applies for certification and is rejected may reapply.<br />
         		<a id="pl.93.13"></a><var>93.13</var>(c) To receive certification, a business must satisfy all of the following conditions:<br />
         		<a id="pl.93.14"></a><var>93.14</var>(1) the business has its headquarters in Minnesota;<br />
         		<a id="pl.93.15"></a><var>93.15</var>(2) at least 51 percent of the business's employees are employed in Minnesota, and <br />
         		<a id="pl.93.16"></a><var>93.16</var>51 percent of the business's total payroll is paid or incurred in the state;<br />
         		<a id="pl.93.17"></a><var>93.17</var>(3) the business is engaged in, or is committed to engage in, innovation in Minnesota <br />
         		<a id="pl.93.18"></a><var>93.18</var>in one of the following as its primary business activity:<br />
         		<a id="pl.93.19"></a><var>93.19</var>(i) using proprietary technology to add value to a product, process, or service in a <br />
         		<a id="pl.93.20"></a><var>93.20</var>qualified high-technology field;<br />
         		<a id="pl.93.21"></a><var>93.21</var>(ii) researching or developing a proprietary product, process, or service in a qualified <br />
         		<a id="pl.93.22"></a><var>93.22</var>high-technology field; or<br />
         		<a id="pl.93.23"></a><var>93.23</var>(iii) researching, developing, or producing a new proprietary technology for use in <br />
         		<a id="pl.93.24"></a><var>93.24</var>the fields of agriculture, tourism, forestry, mining, manufacturing, or transportation;<br />
         		<a id="pl.93.25"></a><var>93.25</var>(4) other than the activities specifically listed in clause (3), the business is not <br />
         		<a id="pl.93.26"></a><var>93.26</var>engaged in real estate development, insurance, banking, lending, lobbying, political <br />
         		<a id="pl.93.27"></a><var>93.27</var>consulting, information technology consulting, wholesale or retail trade, leisure, <br />
         		<a id="pl.93.28"></a><var>93.28</var>hospitality, transportation, construction, ethanol production from corn, or professional <br />
         		<a id="pl.93.29"></a><var>93.29</var>services provided by attorneys, accountants, business consultants, physicians, or health <br />
         		<a id="pl.93.30"></a><var>93.30</var>care consultants;<br />
         		<a id="pl.93.31"></a><var>93.31</var>(5) the business has fewer than 25 employees;<br />
         		<a id="pl.93.32"></a><var>93.32</var>(6) the business must pay its employees annual wages of at least 175 percent of the <br />
         		<a id="pl.93.33"></a><var>93.33</var>federal poverty guideline for the year for a family of four and must pay its interns annual <br />
         		<a id="pl.93.34"></a><var>93.34</var>wages of at least 175 percent of the federal minimum wage used for federally covered <br />
         		<a id="pl.93.35"></a><var>93.35</var>employers, except that this requirement must be reduced proportionately for employees <br />
         		<a id="pl.93.36"></a><var>93.36</var>and interns who work less than full-time, and does not apply to an executive, officer, or <br />
         		<a id="pl.94.1"></a><var>94.1</var>member of the board of the business, or to any employee who owns, controls, or holds <br />
         		<a id="pl.94.2"></a><var>94.2</var>power to vote more than 20 percent of the outstanding securities of the business;<br />
         		<a id="pl.94.3"></a><var>94.3</var>(7) the business has not been in operation for more than ten years, except as provided <br />
         		<a id="pl.94.4"></a><var>94.4</var>in clause (8);<br />
         		<a id="pl.94.5"></a><var>94.5</var>(8) the business has not been in operation for more than 20 years if the business is <br />
         		<a id="pl.94.6"></a><var>94.6</var>engaged in the research, development, or production of medical devices or pharmaceuticals <br />
         		<a id="pl.94.7"></a><var>94.7</var>for which U.S. Food and Drug Administration approval is required for use in the treatment <br />
         		<a id="pl.94.8"></a><var>94.8</var>or diagnosis of a disease or condition;<br />
         		<a id="pl.94.9"></a><var>94.9</var>(8) (9) the business has not previously received private equity investments of more <br />
         		<a id="pl.94.10"></a><var>94.10</var>than $4,000,000; and<br />
         		<a id="pl.94.11"></a><var>94.11</var>&nbsp;&nbsp;&nbsp;&nbsp;(9) (10) the business is not an entity disqualified under section 
         <statute_ref>80A.50</statute_ref>, paragraph <br />
         		<a id="pl.94.12"></a><var>94.12</var>(b), clause (3); and<br />
         		<a id="pl.94.13"></a><var>94.13</var>(11) the business has not issued securities that are traded on a public exchange.<br />
         		<a id="pl.94.14"></a><var>94.14</var>(d) In applying the limit under paragraph (c), clause (5), the employees in all <br />
         		<a id="pl.94.15"></a><var>94.15</var>members of the unitary business, as defined in section 
         <statute_ref>290.17, subdivision 4</statute_ref>, must be <br />
         		<a id="pl.94.16"></a><var>94.16</var>included.<br />
         		<a id="pl.94.17"></a><var>94.17</var>(e) In order for a qualified investment in a business to be eligible for tax credits,:<br />
         		<a id="pl.94.18"></a><var>94.18</var>(1) the business must have applied for and received certification for the calendar <br />
         		<a id="pl.94.19"></a><var>94.19</var>year in which the investment was made prior to the date on which the qualified investment <br />
         		<a id="pl.94.20"></a><var>94.20</var>was made.;<br />
         		<a id="pl.94.21"></a><var>94.21</var>(2) the business must not have issued securities that are traded on a public exchange;<br />
         		<a id="pl.94.22"></a><var>94.22</var>(3) the business must not issue securities that are traded on a public exchange within <br />
         		<a id="pl.94.23"></a><var>94.23</var>180 days subsequent to the date on which the qualified investment was made; and<br />
         		<a id="pl.94.24"></a><var>94.24</var>(4) the business must not have a liquidation event within 180 days subsequent to the <br />
         		<a id="pl.94.25"></a><var>94.25</var>date on which the qualified investment was made.<br />
         		<a id="pl.94.26"></a><var>94.26</var>(f) The commissioner must maintain a list of businesses certified under this <br />
         		<a id="pl.94.27"></a><var>94.27</var>subdivision for the calendar year and make the list accessible to the public on the <br />
         		<a id="pl.94.28"></a><var>94.28</var>department's Web site.<br />
         		<a id="pl.94.29"></a><var>94.29</var>(g) For purposes of this subdivision, the following terms have the meanings given:<br />
         		<a id="pl.94.30"></a><var>94.30</var>(1) "qualified high-technology field" includes aerospace, agricultural processing, <br />
         		<a id="pl.94.31"></a><var>94.31</var>renewable energy, energy efficiency and conservation, environmental engineering, food <br />
         		<a id="pl.94.32"></a><var>94.32</var>technology, cellulosic ethanol, information technology, materials science technology, <br />
         		<a id="pl.94.33"></a><var>94.33</var>nanotechnology, telecommunications, biotechnology, medical device products, <br />
         		<a id="pl.94.34"></a><var>94.34</var>pharmaceuticals, diagnostics, biologicals, chemistry, veterinary science, and similar <br />
         		<a id="pl.94.35"></a><var>94.35</var>fields; and<br />
         		<a id="pl.95.1"></a><var>95.1</var>(2) "proprietary technology" means the technical innovations that are unique and <br />
         		<a id="pl.95.2"></a><var>95.2</var>legally owned or licensed by a business and includes, without limitation, those innovations <br />
         		<a id="pl.95.3"></a><var>95.3</var>that are patented, patent pending, a subject of trade secrets, or copyrighted.<br />
         		<a id="pl.95.4"></a><var>95.4</var><b>EFFECTIVE DATE.</b>This section is effective for qualified small businesses <br />
         		<a id="pl.95.5"></a><var>95.5</var>certified after June 30, 2012, except the amendments to paragraph (c), clause (7), and <br />
         		<a id="pl.95.6"></a><var>95.6</var>paragraph (c), adding clause (8), are effective the day following final enactment.<br />
         		<br />
         		<a id="bill.8.3.0"></a><a id="pl.95.7"></a><var>95.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. Minnesota Statutes 2010, section 116J.8737, subdivision 5, is amended to read:<br />
         		<a id="pl.95.8"></a><var>95.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Credit allowed.</b> (a) A qualified investor or qualified fund is eligible for <br />
         		<a id="pl.95.9"></a><var>95.9</var>a credit equal to 25 percent of the qualified investment in a qualified small business. <br />
         		<a id="pl.95.10"></a><var>95.10</var>Investments made by a pass-through entity qualify for a credit only if the entity is a <br />
         		<a id="pl.95.11"></a><var>95.11</var>qualified fund. The commissioner must not allocate more than $11,000,000 in credits to <br />
         		<a id="pl.95.12"></a><var>95.12</var>qualified investors or qualified funds for taxable years beginning after December 31, <br />
         		<a id="pl.95.13"></a><var>95.13</var>2009, and before January 1, 2011, and must not allocate more than $12,000,000 in credits <br />
         		<a id="pl.95.14"></a><var>95.14</var>per year for taxable years beginning after December 31, 2010, and before January 1, <br />
         		<a id="pl.95.15"></a><var>95.15</var>2015 2012, must not allocate more than $16,500,000 in credits per year for taxable years <br />
         		<a id="pl.95.16"></a><var>95.16</var>beginning after December 31, 2011, and before January 1, 2013, and must not allocate <br />
         		<a id="pl.95.17"></a><var>95.17</var>more than $12,000,000 in credits per year for taxable years beginning after December 31, <br />
         		<a id="pl.95.18"></a><var>95.18</var>2012, and before January 1, 2015. Any portion of a taxable year's credits that is not <br />
         		<a id="pl.95.19"></a><var>95.19</var>allocated by the commissioner does not cancel and may be carried forward to subsequent <br />
         		<a id="pl.95.20"></a><var>95.20</var>taxable years until all credits have been allocated.<br />
         		<a id="pl.95.21"></a><var>95.21</var>(b) The commissioner may not allocate more than a total maximum amount in credits <br />
         		<a id="pl.95.22"></a><var>95.22</var>for a taxable year to a qualified investor for the investor's cumulative qualified investments <br />
         		<a id="pl.95.23"></a><var>95.23</var>as an individual qualified investor and as an investor in a qualified fund; for married <br />
         		<a id="pl.95.24"></a><var>95.24</var>couples filing joint returns the maximum is $250,000, and for all other filers the maximum <br />
         		<a id="pl.95.25"></a><var>95.25</var>is $125,000. The commissioner may not allocate more than a total of $1,000,000 in credits <br />
         		<a id="pl.95.26"></a><var>95.26</var>over all taxable years for qualified investments in any one qualified small business.<br />
         		<a id="pl.95.27"></a><var>95.27</var>(c) The commissioner may not allocate a credit to a qualified investor either as an <br />
         		<a id="pl.95.28"></a><var>95.28</var>individual qualified investor or as an investor in a qualified fund if the investor receives <br />
         		<a id="pl.95.29"></a><var>95.29</var>more than 50 percent of the investor's gross annual income from the qualified small <br />
         		<a id="pl.95.30"></a><var>95.30</var>business in which the qualified investment is proposed. A member of the family of an <br />
         		<a id="pl.95.31"></a><var>95.31</var>individual disqualified by this paragraph is not eligible for a credit under this section. For <br />
         		<a id="pl.95.32"></a><var>95.32</var>a married couple filing a joint return, the limitations in this paragraph apply collectively <br />
         		<a id="pl.95.33"></a><var>95.33</var>to the investor and spouse. For purposes of determining the ownership interest of an <br />
         		<a id="pl.95.34"></a><var>95.34</var>investor under this paragraph, the rules under section 267(c) and 267(e) of the Internal <br />
         		<a id="pl.95.35"></a><var>95.35</var>Revenue Code apply.<br />
         		<a id="pl.96.1"></a><var>96.1</var>(d) Applications for tax credits for 2010 must be made available on the department's <br />
         		<a id="pl.96.2"></a><var>96.2</var>Web site by September 1, 2010, and the department must begin accepting applications <br />
         		<a id="pl.96.3"></a><var>96.3</var>by September 1, 2010. Applications for subsequent years must be made available by <br />
         		<a id="pl.96.4"></a><var>96.4</var>November 1 of the preceding year.<br />
         		<a id="pl.96.5"></a><var>96.5</var>(e) Qualified investors and qualified funds must apply to the commissioner for tax <br />
         		<a id="pl.96.6"></a><var>96.6</var>credits. Tax credits must be allocated to qualified investors or qualified funds in the order <br />
         		<a id="pl.96.7"></a><var>96.7</var>that the tax credit request applications are filed with the department. The commissioner <br />
         		<a id="pl.96.8"></a><var>96.8</var>must approve or reject tax credit request applications within 15 days of receiving the <br />
         		<a id="pl.96.9"></a><var>96.9</var>application. The investment specified in the application must be made within 60 days of <br />
         		<a id="pl.96.10"></a><var>96.10</var>the allocation of the credits. If the investment is not made within 60 days, the credit <br />
         		<a id="pl.96.11"></a><var>96.11</var>allocation is canceled and available for reallocation. A qualified investor or qualified fund <br />
         		<a id="pl.96.12"></a><var>96.12</var>that fails to invest as specified in the application, within 60 days of allocation of the <br />
         		<a id="pl.96.13"></a><var>96.13</var>credits, must notify the commissioner of the failure to invest within five business days of <br />
         		<a id="pl.96.14"></a><var>96.14</var>the expiration of the 60-day investment period.<br />
         		<a id="pl.96.15"></a><var>96.15</var>(f) All tax credit request applications filed with the department on the same day must <br />
         		<a id="pl.96.16"></a><var>96.16</var>be treated as having been filed contemporaneously. If two or more qualified investors or <br />
         		<a id="pl.96.17"></a><var>96.17</var>qualified funds file tax credit request applications on the same day, and the aggregate <br />
         		<a id="pl.96.18"></a><var>96.18</var>amount of credit allocation claims exceeds the aggregate limit of credits under this section <br />
         		<a id="pl.96.19"></a><var>96.19</var>or the lesser amount of credits that remain unallocated on that day, then the credits must <br />
         		<a id="pl.96.20"></a><var>96.20</var>be allocated among the qualified investors or qualified funds who filed on that day on a <br />
         		<a id="pl.96.21"></a><var>96.21</var>pro rata basis with respect to the amounts claimed. The pro rata allocation for any one <br />
         		<a id="pl.96.22"></a><var>96.22</var>qualified investor or qualified fund is the product obtained by multiplying a fraction, <br />
         		<a id="pl.96.23"></a><var>96.23</var>the numerator of which is the amount of the credit allocation claim filed on behalf of <br />
         		<a id="pl.96.24"></a><var>96.24</var>a qualified investor and the denominator of which is the total of all credit allocation <br />
         		<a id="pl.96.25"></a><var>96.25</var>claims filed on behalf of all applicants on that day, by the amount of credits that remain <br />
         		<a id="pl.96.26"></a><var>96.26</var>unallocated on that day for the taxable year.<br />
         		<a id="pl.96.27"></a><var>96.27</var>(g) A qualified investor or qualified fund, or a qualified small business acting on their <br />
         		<a id="pl.96.28"></a><var>96.28</var>behalf, must notify the commissioner when an investment for which credits were allocated <br />
         		<a id="pl.96.29"></a><var>96.29</var>has been made, and the taxable year in which the investment was made. A qualified fund <br />
         		<a id="pl.96.30"></a><var>96.30</var>must also provide the commissioner with a statement indicating the amount invested by <br />
         		<a id="pl.96.31"></a><var>96.31</var>each investor in the qualified fund based on each investor's share of the assets of the <br />
         		<a id="pl.96.32"></a><var>96.32</var>qualified fund at the time of the qualified investment. After receiving notification that the <br />
         		<a id="pl.96.33"></a><var>96.33</var>investment was made, the commissioner must issue credit certificates for the taxable year <br />
         		<a id="pl.96.34"></a><var>96.34</var>in which the investment was made to the qualified investor or, for an investment made by <br />
         		<a id="pl.96.35"></a><var>96.35</var>a qualified fund, to each qualified investor who is an investor in the fund. The certificate <br />
         		<a id="pl.96.36"></a><var>96.36</var>must state that the credit is subject to revocation if the qualified investor or qualified <br />
         		<a id="pl.97.1"></a><var>97.1</var>fund does not hold the investment in the qualified small business for at least three years, <br />
         		<a id="pl.97.2"></a><var>97.2</var>consisting of the calendar year in which the investment was made and the two following <br />
         		<a id="pl.97.3"></a><var>97.3</var>years. The three-year holding period does not apply if:<br />
         		<a id="pl.97.4"></a><var>97.4</var>(1) the investment by the qualified investor or qualified fund becomes worthless <br />
         		<a id="pl.97.5"></a><var>97.5</var>before the end of the three-year period;<br />
         		<a id="pl.97.6"></a><var>97.6</var>(2) 80 percent or more of the assets of the qualified small business is sold before <br />
         		<a id="pl.97.7"></a><var>97.7</var>the end of the three-year period;<br />
         		<a id="pl.97.8"></a><var>97.8</var>(3) the qualified small business is sold before the end of the three-year period; or<br />
         		<a id="pl.97.9"></a><var>97.9</var>(4) the qualified small business's common stock begins trading on a public exchange <br />
         		<a id="pl.97.10"></a><var>97.10</var>before the end of the three-year period.<br />
         		<a id="pl.97.11"></a><var>97.11</var>(h) The commissioner must notify the commissioner of revenue of credit certificates <br />
         		<a id="pl.97.12"></a><var>97.12</var>issued under this section.<br />
         		<a id="pl.97.13"></a><var>97.13</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.97.14"></a><var>97.14</var>December 31, 2011.<br />
         		<br />
         		<a id="bill.8.4.0"></a><a id="pl.97.15"></a><var>97.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 4. Minnesota Statutes 2010, section 116J.8737, is amended by adding a <br />
         		<a id="pl.97.16"></a><var>97.16</var>subdivision to read:<br />
         		<a id="pl.97.17"></a><var>97.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5a. <b>Promotion of credit in greater Minnesota.</b> (a) By July 1, 2012, the <br />
         		<a id="pl.97.18"></a><var>97.18</var>commissioner shall develop a plan to increase awareness of and use of the credit for <br />
         		<a id="pl.97.19"></a><var>97.19</var>investments in greater Minnesota businesses with a target goal that a minimum of 30 <br />
         		<a id="pl.97.20"></a><var>97.20</var>percent of the credit will be awarded for those investments during the second half <br />
         		<a id="pl.97.21"></a><var>97.21</var>of calendar year 2013 and for each full calendar year thereafter. Beginning with the <br />
         		<a id="pl.97.22"></a><var>97.22</var>legislative report due on March 15, 2013, under subdivision 9, the commissioner shall <br />
         		<a id="pl.97.23"></a><var>97.23</var>report on its plan under this subdivision and the results achieved.<br />
         		<a id="pl.97.24"></a><var>97.24</var>(b) If the target goal of 30 percent under paragraph (a) is not achieved for the <br />
         		<a id="pl.97.25"></a><var>97.25</var>six-month period ending on December 31, 2013, the credit percentage under subdivision <br />
         		<a id="pl.97.26"></a><var>97.26</var>5, paragraph (a), is increased to 40 percent for a qualified investment made after December <br />
         		<a id="pl.97.27"></a><var>97.27</var>31, 2013, in a greater Minnesota business. This paragraph does not apply and the credit <br />
         		<a id="pl.97.28"></a><var>97.28</var>percentage for all qualified investments is the rate provided under subdivision 5 for any <br />
         		<a id="pl.97.29"></a><var>97.29</var>calendar year beginning after a calendar year for which the commissioner determines the <br />
         		<a id="pl.97.30"></a><var>97.30</var>30 percent target has been satisfied. The commissioner shall timely post notification of <br />
         		<a id="pl.97.31"></a><var>97.31</var>changes in the credit rate under this paragraph on the department's website.<br />
         		<a id="pl.97.32"></a><var>97.32</var>(c) For purposes of this section, a "greater Minnesota business" means a qualified <br />
         		<a id="pl.97.33"></a><var>97.33</var>small business with its headquarters and 51 percent or more of its employees employed <br />
         		<a id="pl.97.34"></a><var>97.34</var>at Minnesota locations outside of the metropolitan area as defined in section 473.121, <br />
         		<a id="pl.97.35"></a><var>97.35</var>subdivision 2.<br />
         		<a id="pl.98.1"></a><var>98.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.8.5.0"></a><a id="pl.98.2"></a><var>98.2</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 5. Minnesota Statutes 2010, section 116J.8737, subdivision 8, is amended to read:<br />
         		<a id="pl.98.3"></a><var>98.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 8. <b>Data privacy.</b> (a) Data contained in an application submitted to the <br />
         		<a id="pl.98.4"></a><var>98.4</var>commissioner under subdivision 2, 3, or 4 are nonpublic data, or private data on <br />
         		<a id="pl.98.5"></a><var>98.5</var>individuals, as defined in section 
         <statute_ref>13.02, subdivision 9</statute_ref> or 12, except that the following <br />
         		<a id="pl.98.6"></a><var>98.6</var>data items are public:<br />
         		<a id="pl.98.7"></a><var>98.7</var>(1) the name, mailing address, telephone number, e-mail address, contact person's <br />
         		<a id="pl.98.8"></a><var>98.8</var>name, and industry type of a qualified small business upon approval of the application <br />
         		<a id="pl.98.9"></a><var>98.9</var>and certification by the commissioner under subdivision 2;<br />
         		<a id="pl.98.10"></a><var>98.10</var>(2) the name of a qualified investor upon approval of the application and certification <br />
         		<a id="pl.98.11"></a><var>98.11</var>by the commissioner under subdivision 3;<br />
         		<a id="pl.98.12"></a><var>98.12</var>(3) the name of a qualified fund upon approval of the application and certification <br />
         		<a id="pl.98.13"></a><var>98.13</var>by the commissioner under subdivision 4;<br />
         		<a id="pl.98.14"></a><var>98.14</var>(4) for credit certificates issued under subdivision 5, the amount of the credit <br />
         		<a id="pl.98.15"></a><var>98.15</var>certificate issued, amount of the qualifying investment, the name of the qualifying investor <br />
         		<a id="pl.98.16"></a><var>98.16</var>or qualifying fund that received the certificate, and the name of the qualifying small <br />
         		<a id="pl.98.17"></a><var>98.17</var>business in which the qualifying investment was made;<br />
         		<a id="pl.98.18"></a><var>98.18</var>(5) for credits revoked under subdivision 7, paragraph (a), the amount revoked and <br />
         		<a id="pl.98.19"></a><var>98.19</var>the name of the qualified investor or qualified fund; and<br />
         		<a id="pl.98.20"></a><var>98.20</var>(6) for credits revoked under subdivision 7, paragraphs (b) and (c), the amount <br />
         		<a id="pl.98.21"></a><var>98.21</var>revoked and the name of the qualified small business.<br />
         		<a id="pl.98.22"></a><var>98.22</var>(b) The following data, including data classified as nonpublic or private, must be <br />
         		<a id="pl.98.23"></a><var>98.23</var>provided to the consultant for use in conducting the program evaluation under subdivision <br />
         		<a id="pl.98.24"></a><var>98.24</var>10:<br />
         		<a id="pl.98.25"></a><var>98.25</var>(1) the commissioner of employment and economic development shall provide data <br />
         		<a id="pl.98.26"></a><var>98.26</var>contained in an application for certification received from a qualified small business, <br />
         		<a id="pl.98.27"></a><var>98.27</var>qualified investor, or qualified fund, and any annual reporting information received on a <br />
         		<a id="pl.98.28"></a><var>98.28</var>qualified small business, qualified investor, or qualified fund; and<br />
         		<a id="pl.98.29"></a><var>98.29</var>(2) the commissioner of revenue shall provide data contained in any applicable tax <br />
         		<a id="pl.98.30"></a><var>98.30</var>returns of a qualified small business, qualified investor, or qualified fund.<br />
         		<a id="pl.98.31"></a><var>98.31</var><b>EFFECTIVE DATE.</b>This section is effective for businesses requesting certification <br />
         		<a id="pl.98.32"></a><var>98.32</var>starting on the day following final enactment.<br />
         		<br />
         		<a id="bill.8.6.0"></a><a id="pl.98.33"></a><var>98.33</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 6. Minnesota Statutes 2011 Supplement, section 289A.02, subdivision 7, is <br />
         		<a id="pl.98.34"></a><var>98.34</var>amended to read:<br />
         		<a id="pl.99.1"></a><var>99.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Internal Revenue Code.</b> Unless specifically defined otherwise, "Internal <br />
         		<a id="pl.99.2"></a><var>99.2</var>Revenue Code" means the Internal Revenue Code of 1986, as amended through April 14, <br />
         		<a id="pl.99.3"></a><var>99.3</var>2011 February 14, 2012.<br />
         		<a id="pl.99.4"></a><var>99.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.8.7.0"></a><a id="pl.99.5"></a><var>99.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 7. Minnesota Statutes 2011 Supplement, section 290.01, subdivision 19, is <br />
         		<a id="pl.99.6"></a><var>99.6</var>amended to read:<br />
         		<a id="pl.99.7"></a><var>99.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 19. <b>Net income.</b> The term "net income" means the federal taxable income, <br />
         		<a id="pl.99.8"></a><var>99.8</var>as defined in section 63 of the Internal Revenue Code of 1986, as amended through the <br />
         		<a id="pl.99.9"></a><var>99.9</var>date named in this subdivision, incorporating the federal effective dates of changes to the <br />
         		<a id="pl.99.10"></a><var>99.10</var>Internal Revenue Code and any elections made by the taxpayer in accordance with the <br />
         		<a id="pl.99.11"></a><var>99.11</var>Internal Revenue Code in determining federal taxable income for federal income tax <br />
         		<a id="pl.99.12"></a><var>99.12</var>purposes, and with the modifications provided in subdivisions 19a to 19f.<br />
         		<a id="pl.99.13"></a><var>99.13</var>&nbsp;&nbsp;&nbsp;&nbsp;In the case of a regulated investment company or a fund thereof, as defined in section <br />
         		<a id="pl.99.14"></a><var>99.14</var>851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment <br />
         		<a id="pl.99.15"></a><var>99.15</var>company taxable income as defined in section 852(b)(2) of the Internal Revenue Code, <br />
         		<a id="pl.99.16"></a><var>99.16</var>except that:<br />
         		<a id="pl.99.17"></a><var>99.17</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal <br />
         		<a id="pl.99.18"></a><var>99.18</var>Revenue Code does not apply;<br />
         		<a id="pl.99.19"></a><var>99.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal <br />
         		<a id="pl.99.20"></a><var>99.20</var>Revenue Code must be applied by allowing a deduction for capital gain dividends and <br />
         		<a id="pl.99.21"></a><var>99.21</var>exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal <br />
         		<a id="pl.99.22"></a><var>99.22</var>Revenue Code; and<br />
         		<a id="pl.99.23"></a><var>99.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) the deduction for dividends paid must also be applied in the amount of any <br />
         		<a id="pl.99.24"></a><var>99.24</var>undistributed capital gains which the regulated investment company elects to have treated <br />
         		<a id="pl.99.25"></a><var>99.25</var>as provided in section 852(b)(3)(D) of the Internal Revenue Code.<br />
         		<a id="pl.99.26"></a><var>99.26</var>&nbsp;&nbsp;&nbsp;&nbsp;The net income of a real estate investment trust as defined and limited by section <br />
         		<a id="pl.99.27"></a><var>99.27</var>856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust <br />
         		<a id="pl.99.28"></a><var>99.28</var>taxable income as defined in section 857(b)(2) of the Internal Revenue Code.<br />
         		<a id="pl.99.29"></a><var>99.29</var>&nbsp;&nbsp;&nbsp;&nbsp;The net income of a designated settlement fund as defined in section 468B(d) of <br />
         		<a id="pl.99.30"></a><var>99.30</var>the Internal Revenue Code means the gross income as defined in section 468B(b) of the <br />
         		<a id="pl.99.31"></a><var>99.31</var>Internal Revenue Code.<br />
         		<a id="pl.99.32"></a><var>99.32</var>&nbsp;&nbsp;&nbsp;&nbsp;The Internal Revenue Code of 1986, as amended through April 14, 2011 February <br />
         		<a id="pl.99.33"></a><var>99.33</var>14, 2012, shall be in effect for taxable years beginning after December 31, 1996. The <br />
         		<a id="pl.99.34"></a><var>99.34</var>provisions of the act of January 22, 2010, Public Law 111-126, to accelerate the benefits <br />
         		<a id="pl.99.35"></a><var>99.35</var>for charitable cash contributions for the relief of victims of the Haitian earthquake, are <br />
         		<a id="pl.100.1"></a><var>100.1</var>effective at the same time they became effective for federal purposes and apply to the <br />
         		<a id="pl.100.2"></a><var>100.2</var>subtraction under subdivision 19b, clause (6). The provisions of title II, section 2112, of <br />
         		<a id="pl.100.3"></a><var>100.3</var>the act of September 27, 2010, Public Law 111-240, rollovers from elective deferral plans <br />
         		<a id="pl.100.4"></a><var>100.4</var>to designated Roth accounts, are effective at the same time they became effective for <br />
         		<a id="pl.100.5"></a><var>100.5</var>federal purposes and taxable rollovers are included in net income at the same time they are <br />
         		<a id="pl.100.6"></a><var>100.6</var>included in gross income for federal purposes.<br />
         		<a id="pl.100.7"></a><var>100.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise provided, references to the Internal Revenue Code in <br />
         		<a id="pl.100.8"></a><var>100.8</var>subdivisions 19 to 19f mean the code in effect for purposes of determining net income for <br />
         		<a id="pl.100.9"></a><var>100.9</var>the applicable year.<br />
         		<a id="pl.100.10"></a><var>100.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.8.8.0"></a><a id="pl.100.11"></a><var>100.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 8. Minnesota Statutes 2011 Supplement, section 290.01, subdivision 31, is <br />
         		<a id="pl.100.12"></a><var>100.12</var>amended to read:<br />
         		<a id="pl.100.13"></a><var>100.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 31. <b>Internal Revenue Code.</b> Unless specifically defined otherwise, "Internal <br />
         		<a id="pl.100.14"></a><var>100.14</var>Revenue Code" means the Internal Revenue Code of 1986, as amended through April 14, <br />
         		<a id="pl.100.15"></a><var>100.15</var>2011 February 14, 2012. Internal Revenue Code also includes any uncodified provision in <br />
         		<a id="pl.100.16"></a><var>100.16</var>federal law that relates to provisions of the Internal Revenue Code that are incorporated <br />
         		<a id="pl.100.17"></a><var>100.17</var>into Minnesota law. When used in this chapter, the reference to "subtitle A, chapter 1, <br />
         		<a id="pl.100.18"></a><var>100.18</var>subchapter N, part 1, of the Internal Revenue Code" is to the Internal Revenue Code as <br />
         		<a id="pl.100.19"></a><var>100.19</var>amended through March 18, 2010.<br />
         		<a id="pl.100.20"></a><var>100.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.8.9.0"></a><a id="pl.100.21"></a><var>100.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 9. Minnesota Statutes 2010, section 290.068, subdivision 1, is amended to read:<br />
         		<a id="pl.100.22"></a><var>100.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Credit allowed.</b> A corporation, partners in a partnership, or <br />
         		<a id="pl.100.23"></a><var>100.23</var>shareholders in a corporation treated as an "S" corporation under section 
         <statute_ref>290.9725</statute_ref> are <br />
         		<a id="pl.100.24"></a><var>100.24</var>allowed a credit against the tax computed under this chapter for the taxable year equal to:<br />
         		<a id="pl.100.25"></a><var>100.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(a) ten percent of the first $2,000,000 of the excess (if any) of<br />
         		<a id="pl.100.26"></a><var>100.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) the qualified research expenses for the taxable year, over<br />
         		<a id="pl.100.27"></a><var>100.27</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) the base amount; and<br />
         		<a id="pl.100.28"></a><var>100.28</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) 2.5 2.8 percent on all of such excess expenses over $2,000,000 for taxable years <br />
         		<a id="pl.100.29"></a><var>100.29</var>beginning after December 31, 2011.<br />
         		<a id="pl.100.30"></a><var>100.30</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.100.31"></a><var>100.31</var>December 31, 2011.<br />
         		<br />
         		<a id="bill.8.10.0"></a><a id="pl.100.32"></a><var>100.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 10. Minnesota Statutes 2010, section 290.0681, subdivision 1, is amended to read:<br />
         		<a id="pl.101.1"></a><var>101.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms <br />
         		<a id="pl.101.2"></a><var>101.2</var>have the meanings given.<br />
         		<a id="pl.101.3"></a><var>101.3</var>(b) "Account" means the historic credit administration account in the special <br />
         		<a id="pl.101.4"></a><var>101.4</var>revenue fund.<br />
         		<a id="pl.101.5"></a><var>101.5</var>(c) "Office" means the State Historic Preservation Office of the Minnesota Historical <br />
         		<a id="pl.101.6"></a><var>101.6</var>Society.<br />
         		<a id="pl.101.7"></a><var>101.7</var>(d) "Project" means rehabilitation of a certified historic structure, as defined in <br />
         		<a id="pl.101.8"></a><var>101.8</var>section 47(c)(3)(A) of the Internal Revenue Code, that is located in Minnesota and is <br />
         		<a id="pl.101.9"></a><var>101.9</var>allowed a federal credit under section 47(a)(2) of the Internal Revenue Code.<br />
         		<a id="pl.101.10"></a><var>101.10</var>(e) "Society" means the Minnesota Historical Society.<br />
         		<a id="pl.101.11"></a><var>101.11</var>(f) "Federal credit" means the credit allowed under section 47(a)(2) of the Internal <br />
         		<a id="pl.101.12"></a><var>101.12</var>Revenue Code.<br />
         		<a id="pl.101.13"></a><var>101.13</var>(g) "Placed in service" has the meaning used in section 47 of the Internal Revenue <br />
         		<a id="pl.101.14"></a><var>101.14</var>Code.<br />
         		<a id="pl.101.15"></a><var>101.15</var>(h) "Qualified rehabilitation expenditures" has the meaning given in section 47 of <br />
         		<a id="pl.101.16"></a><var>101.16</var>the Internal Revenue Code.<br />
         		<a id="pl.101.17"></a><var>101.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.8.11.0"></a><a id="pl.101.18"></a><var>101.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 11. Minnesota Statutes 2010, section 290.0681, subdivision 3, is amended to read:<br />
         		<a id="pl.101.19"></a><var>101.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Applications; allocations.</b> (a) To qualify for a credit or grant under this <br />
         		<a id="pl.101.20"></a><var>101.20</var>section, the developer of a project must apply to the office before the rehabilitation begins. <br />
         		<a id="pl.101.21"></a><var>101.21</var>The application must contain the information and be in the form prescribed by the office. <br />
         		<a id="pl.101.22"></a><var>101.22</var>The office may collect a fee for application of up to $5,000, based on estimated qualified <br />
         		<a id="pl.101.23"></a><var>101.23</var>rehabilitation expenses expenditures, to offset costs associated with personnel and <br />
         		<a id="pl.101.24"></a><var>101.24</var>administrative expenses related to administering the credit and preparing the economic <br />
         		<a id="pl.101.25"></a><var>101.25</var>impact report in subdivision 9. Application fees are deposited in the account. The <br />
         		<a id="pl.101.26"></a><var>101.26</var>application must indicate if the application is for a credit or a grant in lieu of the credit <br />
         		<a id="pl.101.27"></a><var>101.27</var>or a combination of the two and designate the taxpayer qualifying for the credit or the <br />
         		<a id="pl.101.28"></a><var>101.28</var>recipient of the grant.<br />
         		<a id="pl.101.29"></a><var>101.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon approving an application for credit, the office shall issue allocation <br />
         		<a id="pl.101.30"></a><var>101.30</var>certificates that:<br />
         		<a id="pl.101.31"></a><var>101.31</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) verify eligibility for the credit or grant;<br />
         		<a id="pl.101.32"></a><var>101.32</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) state the amount of credit or grant anticipated with the project, with the credit <br />
         		<a id="pl.101.33"></a><var>101.33</var>amount equal to 100 percent and the grant amount equal to 90 percent of the federal <br />
         		<a id="pl.101.34"></a><var>101.34</var>credit anticipated in the application;<br />
         		<a id="pl.102.1"></a><var>102.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) state that the credit or grant allowed may increase or decrease if the federal <br />
         		<a id="pl.102.2"></a><var>102.2</var>credit the project receives at the time it is placed in service is different than the amount <br />
         		<a id="pl.102.3"></a><var>102.3</var>anticipated at the time the allocation certificate is issued; and<br />
         		<a id="pl.102.4"></a><var>102.4</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) state the fiscal year in which the credit or grant is allocated, and that the taxpayer <br />
         		<a id="pl.102.5"></a><var>102.5</var>or grant recipient is entitled to receive the credit or grant at the time the project is placed <br />
         		<a id="pl.102.6"></a><var>102.6</var>in service, provided that date is within three calendar years following the issuance of <br />
         		<a id="pl.102.7"></a><var>102.7</var>the allocation certificate.<br />
         		<a id="pl.102.8"></a><var>102.8</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) The office, in consultation with the commissioner of revenue, shall determine <br />
         		<a id="pl.102.9"></a><var>102.9</var>if the project is eligible for a credit or a grant under this section and must notify the <br />
         		<a id="pl.102.10"></a><var>102.10</var>developer in writing of its determination. Eligibility for the credit is subject to review <br />
         		<a id="pl.102.11"></a><var>102.11</var>and audit by the commissioner of revenue.<br />
         		<a id="pl.102.12"></a><var>102.12</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) The federal credit recapture and repayment requirements under section 50 of the <br />
         		<a id="pl.102.13"></a><var>102.13</var>Internal Revenue Code do not apply to the credit allowed under this section.<br />
         		<a id="pl.102.14"></a><var>102.14</var>(e) Any decision of the office under paragraph (c) of this subdivision may be <br />
         		<a id="pl.102.15"></a><var>102.15</var>challenged as a contested case under chapter 14. The contested case proceeding must be <br />
         		<a id="pl.102.16"></a><var>102.16</var>initiated within 45 days of the date of written notification by the office.<br />
         		<a id="pl.102.17"></a><var>102.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.8.12.0"></a><a id="pl.102.18"></a><var>102.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 12. Minnesota Statutes 2010, section 290.0681, subdivision 4, is amended to read:<br />
         		<a id="pl.102.19"></a><var>102.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Credit certificates</b><b>; grants</b><b>.</b> (a)(1) The developer of a project for which the <br />
         		<a id="pl.102.20"></a><var>102.20</var>office has issued an allocation certificate must notify the office when the project is placed <br />
         		<a id="pl.102.21"></a><var>102.21</var>in service. Upon verifying that the project has been placed in service, and was allowed a <br />
         		<a id="pl.102.22"></a><var>102.22</var>federal credit, the office must issue a credit certificate to the taxpayer designated in the <br />
         		<a id="pl.102.23"></a><var>102.23</var>application or must issue a grant to the recipient designated in the application. The credit <br />
         		<a id="pl.102.24"></a><var>102.24</var>certificate must state the amount of the credit.<br />
         		<a id="pl.102.25"></a><var>102.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) The credit amount equals the federal credit allowed for the project.<br />
         		<a id="pl.102.26"></a><var>102.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) The grant amount equals 90 percent of the federal credit allowed for the project.<br />
         		<a id="pl.102.27"></a><var>102.27</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) The recipient of a credit certificate may assign the certificate to another taxpayer, <br />
         		<a id="pl.102.28"></a><var>102.28</var>which is then allowed the credit under this section or section 
         <statute_ref>297I.20, subdivision 3</statute_ref>.  An <br />
         		<a id="pl.102.29"></a><var>102.29</var>assignment is not valid unless the assignee notifies the commissioner within 30 days of the <br />
         		<a id="pl.102.30"></a><var>102.30</var>date that the assignment is made. The commissioner shall prescribe the forms necessary <br />
         		<a id="pl.102.31"></a><var>102.31</var>for notifying the commissioner of the assignment of a credit certificate and for claiming <br />
         		<a id="pl.102.32"></a><var>102.32</var>a credit by assignment.<br />
         		<a id="pl.102.33"></a><var>102.33</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) Credits passed through pursuant to subdivision 5 of this section are not an <br />
         		<a id="pl.102.34"></a><var>102.34</var>assignment of a credit certificate under this subdivision.<br />
         		<a id="pl.103.1"></a><var>103.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) A grant agreement between the office and the recipient of a grant may allow the <br />
         		<a id="pl.103.2"></a><var>103.2</var>grant to be issued to another individual or entity.<br />
         		<a id="pl.103.3"></a><var>103.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.8.13.0"></a><a id="pl.103.4"></a><var>103.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 13. Minnesota Statutes 2010, section 290.0681, subdivision 5, is amended to read:<br />
         		<a id="pl.103.5"></a><var>103.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Partnerships; multiple owners.</b> Credits granted to a partnership, a limited <br />
         		<a id="pl.103.6"></a><var>103.6</var>liability company taxed as a partnership, S corporation, or multiple owners of property <br />
         		<a id="pl.103.7"></a><var>103.7</var>are passed through to the partners, members, shareholders, or owners, respectively, pro <br />
         		<a id="pl.103.8"></a><var>103.8</var>rata to each partner, member, shareholder, or owner based on their share of the entity's <br />
         		<a id="pl.103.9"></a><var>103.9</var>assets or as specially allocated in their organizational documents or any other executed <br />
         		<a id="pl.103.10"></a><var>103.10</var>agreement, as of the last day of the taxable year.<br />
         		<a id="pl.103.11"></a><var>103.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.8.14.0"></a><a id="pl.103.12"></a><var>103.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 14. Minnesota Statutes 2010, section 290.0681, subdivision 10, is amended to <br />
         		<a id="pl.103.13"></a><var>103.13</var>read:<br />
         		<a id="pl.103.14"></a><var>103.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 10. <b>Sunset.</b> This section expires after fiscal year 2015 2021, except that <br />
         		<a id="pl.103.15"></a><var>103.15</var>the office's authority to issue credit certificates under subdivision 4 based on allocation <br />
         		<a id="pl.103.16"></a><var>103.16</var>certificates that were issued before fiscal year 2016 2022 remains in effect through 2018 <br />
         		<a id="pl.103.17"></a><var>103.17</var>2024, and the reporting requirements in subdivision 9 remain in effect through the year <br />
         		<a id="pl.103.18"></a><var>103.18</var>following the year in which all allocation certificates have either been canceled or resulted <br />
         		<a id="pl.103.19"></a><var>103.19</var>in issuance of credit certificates, or 2019 2025, whichever is earlier.<br />
         		<a id="pl.103.20"></a><var>103.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.8.15.0"></a><a id="pl.103.21"></a><var>103.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 15. <b>[290.0693] VETERANS JOBS TAX CREDIT.</b><br />
         		<a id="pl.103.22"></a><var>103.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms <br />
         		<a id="pl.103.23"></a><var>103.23</var>have the meanings given.<br />
         		<a id="pl.103.24"></a><var>103.24</var>(b)(1) "Full-time employee" means an employee as defined in section 290.92, <br />
         		<a id="pl.103.25"></a><var>103.25</var>subdivision 1, who meets the following criteria:<br />
         		<a id="pl.103.26"></a><var>103.26</var>(i) the employee is paid wages as defined in section 290.92, subdivision 1, for at <br />
         		<a id="pl.103.27"></a><var>103.27</var>least 1,820 hours during the 12-month period that starts on the date of hire;<br />
         		<a id="pl.103.28"></a><var>103.28</var>(ii) the employee's wages are attributable to Minnesota under section 290.191, <br />
         		<a id="pl.103.29"></a><var>103.29</var>subdivision 12;<br />
         		<a id="pl.103.30"></a><var>103.30</var>(iii) the employee performs services for the employer in at least 50 weeks during the <br />
         		<a id="pl.103.31"></a><var>103.31</var>12-month period that starts on the date of hire; and <br />
         		<a id="pl.104.1"></a><var>104.1</var>(iv) the employee's total compensation, including benefits not mandated by law, is at <br />
         		<a id="pl.104.2"></a><var>104.2</var>least $25,000 for the 12-month period that starts on the date of hire.<br />
         		<a id="pl.104.3"></a><var>104.3</var>(2) "Full-time employee" does not include:<br />
         		<a id="pl.104.4"></a><var>104.4</var>(i) any employee who bears any of the relationships described in subparagraphs (A) <br />
         		<a id="pl.104.5"></a><var>104.5</var>to (G) of section 152(d)(2) of the Internal Revenue Code to the employer;<br />
         		<a id="pl.104.6"></a><var>104.6</var>(ii) if the employer is a corporation, any employee who owns, directly or indirectly, <br />
         		<a id="pl.104.7"></a><var>104.7</var>more than 50 percent in value of the outstanding stock of the corporation, or if the <br />
         		<a id="pl.104.8"></a><var>104.8</var>employer is an entity other than a corporation, an employee who owns, directly or <br />
         		<a id="pl.104.9"></a><var>104.9</var>indirectly, more than 50 percent of the capital and profits interests in the entity, as <br />
         		<a id="pl.104.10"></a><var>104.10</var>determined with the application of section 267(c) of the Internal Revenue Code; or<br />
         		<a id="pl.104.11"></a><var>104.11</var>(iii) if the employer is an estate or trust, any employee who is a fiduciary of the estate <br />
         		<a id="pl.104.12"></a><var>104.12</var>or trust, or is an individual who bears any of the relationships described in subparagraphs <br />
         		<a id="pl.104.13"></a><var>104.13</var>(A) to (G) of section 152(d)(2) of the Internal Revenue Code to a grantor, beneficiary, <br />
         		<a id="pl.104.14"></a><var>104.14</var>or fiduciary of the estate or trust.<br />
         		<a id="pl.104.15"></a><var>104.15</var>(c) "Qualified employer" means an employer that:<br />
         		<a id="pl.104.16"></a><var>104.16</var>(1) employed a total of five or more full-time employees on December 31, 2011; and<br />
         		<a id="pl.104.17"></a><var>104.17</var>(2) hired one or more qualified full-time employees after March 31, 2012.<br />
         		<a id="pl.104.18"></a><var>104.18</var>(d) "Qualified full-time employee" means a full-time employee who:<br />
         		<a id="pl.104.19"></a><var>104.19</var>(1) has completed 12 consecutive months of service as a full-time employee for a <br />
         		<a id="pl.104.20"></a><var>104.20</var>qualified employer;<br />
         		<a id="pl.104.21"></a><var>104.21</var>(2) is a qualified unemployed veteran; and<br />
         		<a id="pl.104.22"></a><var>104.22</var>(3) is a resident of Minnesota on the date of hire.<br />
         		<a id="pl.104.23"></a><var>104.23</var>(e) "Qualified unemployed veteran" is a person who:<br />
         		<a id="pl.104.24"></a><var>104.24</var>(1) was in active military service in a designated area after September 11, 2001, <br />
         		<a id="pl.104.25"></a><var>104.25</var>as defined in section 290.0677;<br />
         		<a id="pl.104.26"></a><var>104.26</var>(2) was separated from active military service at any time during the five-year period <br />
         		<a id="pl.104.27"></a><var>104.27</var>prior to the date of hire;<br />
         		<a id="pl.104.28"></a><var>104.28</var>(3) received unemployment compensation under state or federal law for not less than <br />
         		<a id="pl.104.29"></a><var>104.29</var>four weeks during the one-year period prior to the date of hire; and<br />
         		<a id="pl.104.30"></a><var>104.30</var>(4) was unemployed on the date of hire.<br />
         		<a id="pl.104.31"></a><var>104.31</var>(f) "Date of hire" means the day that the qualified full-time employee begins <br />
         		<a id="pl.104.32"></a><var>104.32</var>performing services as an employee for the qualified employer.<br />
         		<a id="pl.104.33"></a><var>104.33</var>(g) "Construction trades employer" means a person carrying on a trade or business <br />
         		<a id="pl.104.34"></a><var>104.34</var>described in industry code numbers 23 through 238990 of the North American Industry <br />
         		<a id="pl.104.35"></a><var>104.35</var>Classification System.<br />
         		<a id="pl.105.1"></a><var>105.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Credit for new full-time employees.</b> (a) A qualified employer who is <br />
         		<a id="pl.105.2"></a><var>105.2</var>required to file a return under section 289A.08, subdivision 1, 2, or 3, is allowed a credit <br />
         		<a id="pl.105.3"></a><var>105.3</var>against the tax imposed by this chapter for the net increase in qualified full-time employees.<br />
         		<a id="pl.105.4"></a><var>105.4</var>(b)(1) For hiring qualified full-time employees after March 30, 2012, but before <br />
         		<a id="pl.105.5"></a><var>105.5</var>January 1, 2013, the credit is equal to $3,000 times the net increase in full-time employees. <br />
         		<a id="pl.105.6"></a><var>105.6</var>The net increase in full-time employees is the difference between:<br />
         		<a id="pl.105.7"></a><var>105.7</var>(i) the total number of full-time employees employed by the employer on December <br />
         		<a id="pl.105.8"></a><var>105.8</var>31, 2011; and<br />
         		<a id="pl.105.9"></a><var>105.9</var>(ii) the number of full-time employees employed by the employer on December <br />
         		<a id="pl.105.10"></a><var>105.10</var>31, 2012.<br />
         		<a id="pl.105.11"></a><var>105.11</var>The net increase in full-time employees cannot exceed the number of qualified full-time <br />
         		<a id="pl.105.12"></a><var>105.12</var>employees hired after March 31, 2012, but before January 1, 2013.<br />
         		<a id="pl.105.13"></a><var>105.13</var>(2) For hiring qualified full-time employees after December 31, 2012, but before <br />
         		<a id="pl.105.14"></a><var>105.14</var>July 1, 2013, the credit is equal to $1,500 times the net increase in full-time employees. <br />
         		<a id="pl.105.15"></a><var>105.15</var>The net increase in full-time employees is the difference between:<br />
         		<a id="pl.105.16"></a><var>105.16</var>(i) the total number of full-time employees employed by the taxpayer on December <br />
         		<a id="pl.105.17"></a><var>105.17</var>31, 2011; and<br />
         		<a id="pl.105.18"></a><var>105.18</var>(ii) the number of full-time employees employed by the taxpayer on December <br />
         		<a id="pl.105.19"></a><var>105.19</var>31, 2013.<br />
         		<a id="pl.105.20"></a><var>105.20</var>The net increase in full-time employees cannot exceed the number of qualified full-time <br />
         		<a id="pl.105.21"></a><var>105.21</var>employees hired after December 31, 2012, but before July 1, 2013.<br />
         		<a id="pl.105.22"></a><var>105.22</var>(c) The credit may be claimed in the taxable year in which the qualified full-time <br />
         		<a id="pl.105.23"></a><var>105.23</var>employee completes 12 consecutive months of continuous service as a full-time employee <br />
         		<a id="pl.105.24"></a><var>105.24</var>of the qualified employer.<br />
         		<a id="pl.105.25"></a><var>105.25</var>(d) The maximum aggregate credits allowed to a qualified employer under this <br />
         		<a id="pl.105.26"></a><var>105.26</var>section for all taxable years is $50,000.<br />
         		<a id="pl.105.27"></a><var>105.27</var>(e) For members of a unitary business whose income and factors are included on a <br />
         		<a id="pl.105.28"></a><var>105.28</var>combined income report under section 289A.08, subdivision 3, the number of full-time <br />
         		<a id="pl.105.29"></a><var>105.29</var>employees and the maximum allowable credit are not determined at the individual <br />
         		<a id="pl.105.30"></a><var>105.30</var>member level but are instead determined at the group level.<br />
         		<a id="pl.105.31"></a><var>105.31</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Allocation of credits.</b> (a) By July 1, 2012, the commissioner shall develop <br />
         		<a id="pl.105.32"></a><var>105.32</var>an Internet application that allows employers to apply for tentative credits. The application <br />
         		<a id="pl.105.33"></a><var>105.33</var>must include the employer's name, tax identification number, and North American Industry <br />
         		<a id="pl.105.34"></a><var>105.34</var>Classification System industry code, and the name and date of hire of the employee.<br />
         		<a id="pl.106.1"></a><var>106.1</var>(b) The credit is available only to employers who apply for a tentative credit using <br />
         		<a id="pl.106.2"></a><var>106.2</var>the application in paragraph (a) and who receive notice that their application has been <br />
         		<a id="pl.106.3"></a><var>106.3</var>approved for a tentative credit.<br />
         		<a id="pl.106.4"></a><var>106.4</var>(c) Employers may apply for a tentative credit no earlier than the date of hire of <br />
         		<a id="pl.106.5"></a><var>106.5</var>each qualified full-time employee. Any employer may file more than one tentative credit <br />
         		<a id="pl.106.6"></a><var>106.6</var>application, but no employer may apply for tentative credits for more than a total of 16 <br />
         		<a id="pl.106.7"></a><var>106.7</var>employees hired in 2012 or 33 employees hired in 2013.<br />
         		<a id="pl.106.8"></a><var>106.8</var>(d) The commissioner shall approve applications seeking tentative credits for the <br />
         		<a id="pl.106.9"></a><var>106.9</var>first 1,250 full-time employees based on the order in which the applications are received.<br />
         		<a id="pl.106.10"></a><var>106.10</var>(e) The commissioner must promptly notify employers if they are eligible for a <br />
         		<a id="pl.106.11"></a><var>106.11</var>tentative credit. The notice must state that the employer is eligible for a credit only after <br />
         		<a id="pl.106.12"></a><var>106.12</var>the employee named in the application has worked for 12 consecutive months and all other <br />
         		<a id="pl.106.13"></a><var>106.13</var>conditions of eligibility are met.<br />
         		<a id="pl.106.14"></a><var>106.14</var>(f) The commissioner shall promptly publish public notice when all 2,500 tentative <br />
         		<a id="pl.106.15"></a><var>106.15</var>credits have been applied for.<br />
         		<a id="pl.106.16"></a><var>106.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Tentative credits for construction trades employers.</b> (a) Any <br />
         		<a id="pl.106.17"></a><var>106.17</var>construction trades employer may apply for a tentative credit.<br />
         		<a id="pl.106.18"></a><var>106.18</var>(b) To remain eligible for a credit, a construction trades employer who has received <br />
         		<a id="pl.106.19"></a><var>106.19</var>a tentative credit must renew the tentative credit by filing an application with the <br />
         		<a id="pl.106.20"></a><var>106.20</var>commissioner no earlier than 180 days after date of hire and no more than 210 days after <br />
         		<a id="pl.106.21"></a><var>106.21</var>date of hire. The renewal notice must state that the employee for whom the tentative credit <br />
         		<a id="pl.106.22"></a><var>106.22</var>was originally granted is still an employee and that the employer reasonably believes that <br />
         		<a id="pl.106.23"></a><var>106.23</var>all qualifications of eligibility for a credit will be met.<br />
         		<a id="pl.106.24"></a><var>106.24</var>(c) Any tentative credit issued to a construction trades employer that is not renewed <br />
         		<a id="pl.106.25"></a><var>106.25</var>within the time required for renewal is canceled. Any canceled tentative credits are <br />
         		<a id="pl.106.26"></a><var>106.26</var>available to be reissued by the commissioner to employers under subdivision 3.<br />
         		<a id="pl.106.27"></a><var>106.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Flow-through entities.</b> Credits granted to a partnership, limited liability <br />
         		<a id="pl.106.28"></a><var>106.28</var>company taxed as a partnership, S corporation, or multiple owners of a business are passed <br />
         		<a id="pl.106.29"></a><var>106.29</var>through to the partners, members, shareholders, or owners, respectively, pro rata to each <br />
         		<a id="pl.106.30"></a><var>106.30</var>partner, member, shareholder, or owner based on their share of the entity's assets or as <br />
         		<a id="pl.106.31"></a><var>106.31</var>specially allocated in their organizational documents, as of the last day of the taxable year.<br />
         		<a id="pl.106.32"></a><var>106.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <b>Refundable.</b> If the amount of the credit allowed under this section exceeds <br />
         		<a id="pl.106.33"></a><var>106.33</var>the liability for tax under this chapter, the commissioner shall refund the excess to the <br />
         		<a id="pl.106.34"></a><var>106.34</var>taxpayer.<br />
         		<a id="pl.106.35"></a><var>106.35</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Appropriation.</b> An amount sufficient to pay the refunds authorized by this <br />
         		<a id="pl.106.36"></a><var>106.36</var>section is appropriated to the commissioner from the general fund.<br />
         		<a id="pl.107.1"></a><var>107.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.8.16.0"></a><a id="pl.107.2"></a><var>107.2</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 16. Minnesota Statutes 2011 Supplement, section 290A.03, subdivision 15, <br />
         		<a id="pl.107.3"></a><var>107.3</var>is amended to read:<br />
         		<a id="pl.107.4"></a><var>107.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 15. <b>Internal Revenue Code.</b>  "Internal Revenue Code" means the Internal <br />
         		<a id="pl.107.5"></a><var>107.5</var>Revenue Code of 1986, as amended through April 14, 2011 February 14, 2012.<br />
         		<a id="pl.107.6"></a><var>107.6</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.8.17.0"></a><a id="pl.107.7"></a><var>107.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 17. Minnesota Statutes 2011 Supplement, section 291.005, subdivision 1, is <br />
         		<a id="pl.107.8"></a><var>107.8</var>amended to read:<br />
         		<a id="pl.107.9"></a><var>107.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Scope.</b> Unless the context otherwise clearly requires, the following <br />
         		<a id="pl.107.10"></a><var>107.10</var>terms used in this chapter shall have the following meanings:<br />
         		<a id="pl.107.11"></a><var>107.11</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) "Commissioner" means the commissioner of revenue or any person to whom the <br />
         		<a id="pl.107.12"></a><var>107.12</var>commissioner has delegated functions under this chapter.<br />
         		<a id="pl.107.13"></a><var>107.13</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) "Federal gross estate" means the gross estate of a decedent as required to be <br />
         		<a id="pl.107.14"></a><var>107.14</var>valued and otherwise determined for federal estate tax purposes under the Internal <br />
         		<a id="pl.107.15"></a><var>107.15</var>Revenue Code.<br />
         		<a id="pl.107.16"></a><var>107.16</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) "Internal Revenue Code" means the United States Internal Revenue Code of <br />
         		<a id="pl.107.17"></a><var>107.17</var>1986, as amended through April 14, 2011 February 14, 2012, but without regard to the <br />
         		<a id="pl.107.18"></a><var>107.18</var>provisions of sections 501 and 901 of Public Law 107-16, as amended by Public Law <br />
         		<a id="pl.107.19"></a><var>107.19</var>111-312, and section 301(c) of Public Law 111-312.<br />
         		<a id="pl.107.20"></a><var>107.20</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) "Minnesota adjusted taxable estate" means federal adjusted taxable estate as <br />
         		<a id="pl.107.21"></a><var>107.21</var>defined by section 2011(b)(3) of the Internal Revenue Code, plus<br />
         		<a id="pl.107.22"></a><var>107.22</var>(i) the amount of deduction for state death taxes allowed under section 2058 of <br />
         		<a id="pl.107.23"></a><var>107.23</var>the Internal Revenue Code; less<br />
         		<a id="pl.107.24"></a><var>107.24</var>(ii)(A) the value of qualified small business property under section 
         <statute_ref>291.03, <br />
            		<a id="pl.107.25"></a><var>107.25</var>subdivision 9
         </statute_ref>, and the value of qualified farm property under section 
         <statute_ref>291.03, subdivision <br />
            		<a id="pl.107.26"></a><var>107.26</var>10
         </statute_ref>, or (B) $4,000,000, whichever is less.<br />
         		<a id="pl.107.27"></a><var>107.27</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) "Minnesota gross estate" means the federal gross estate of a decedent after (a) <br />
         		<a id="pl.107.28"></a><var>107.28</var>excluding therefrom any property included therein which has its situs outside Minnesota, <br />
         		<a id="pl.107.29"></a><var>107.29</var>and (b) including therein any property omitted from the federal gross estate which is <br />
         		<a id="pl.107.30"></a><var>107.30</var>includable therein, has its situs in Minnesota, and was not disclosed to federal taxing <br />
         		<a id="pl.107.31"></a><var>107.31</var>authorities.<br />
         		<a id="pl.107.32"></a><var>107.32</var>&nbsp;&nbsp;&nbsp;&nbsp;(6) "Nonresident decedent" means an individual whose domicile at the time of <br />
         		<a id="pl.107.33"></a><var>107.33</var>death was not in Minnesota.<br />
         		<a id="pl.108.1"></a><var>108.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(7) "Personal representative" means the executor, administrator or other person <br />
         		<a id="pl.108.2"></a><var>108.2</var>appointed by the court to administer and dispose of the property of the decedent. If there <br />
         		<a id="pl.108.3"></a><var>108.3</var>is no executor, administrator or other person appointed, qualified, and acting within this <br />
         		<a id="pl.108.4"></a><var>108.4</var>state, then any person in actual or constructive possession of any property having a situs in <br />
         		<a id="pl.108.5"></a><var>108.5</var>this state which is included in the federal gross estate of the decedent shall be deemed <br />
         		<a id="pl.108.6"></a><var>108.6</var>to be a personal representative to the extent of the property and the Minnesota estate tax <br />
         		<a id="pl.108.7"></a><var>108.7</var>due with respect to the property.<br />
         		<a id="pl.108.8"></a><var>108.8</var>&nbsp;&nbsp;&nbsp;&nbsp;(8) "Resident decedent" means an individual whose domicile at the time of death <br />
         		<a id="pl.108.9"></a><var>108.9</var>was in Minnesota.<br />
         		<a id="pl.108.10"></a><var>108.10</var>&nbsp;&nbsp;&nbsp;&nbsp;(9) "Situs of property" means, with respect to real property, the state or country in <br />
         		<a id="pl.108.11"></a><var>108.11</var>which it is located; with respect to tangible personal property, the state or country in which <br />
         		<a id="pl.108.12"></a><var>108.12</var>it was normally kept or located at the time of the decedent's death; and with respect to <br />
         		<a id="pl.108.13"></a><var>108.13</var>intangible personal property, the state or country in which the decedent was domiciled <br />
         		<a id="pl.108.14"></a><var>108.14</var>at death.<br />
         		<a id="pl.108.15"></a><var>108.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.8.18.0"></a><a id="pl.108.16"></a><var>108.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 18. Laws 2010, chapter 216, section 11, the effective date, is amended to read:<br />
         		<a id="pl.108.17"></a><var>108.17</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning <br />
         		<a id="pl.108.18"></a><var>108.18</var>after December 31, 2009, for certified historic structures for which qualified costs of <br />
         		<a id="pl.108.19"></a><var>108.19</var>rehabilitation are first paid under construction contracts entered into after May 1, 2010 <br />
         		<a id="pl.108.20"></a><var>108.20</var>rehabilitation expenditures are first paid by the developer or taxpayer after May 1, 2010, <br />
         		<a id="pl.108.21"></a><var>108.21</var>for rehabilitation that occurs after May 1, 2010, provided that the application under <br />
         		<a id="pl.108.22"></a><var>108.22</var>subdivision 3 is submitted before the project is placed in service.<br />
         		<a id="pl.108.23"></a><var>108.23</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br />
         		<a id="pl.108.24"></a><var>108.24</var>and applies retroactively for taxable years beginning after December 31, 2009, and for <br />
         		<a id="pl.108.25"></a><var>108.25</var>certified historic structures placed in service after May 1, 2010, but the office may not <br />
         		<a id="pl.108.26"></a><var>108.26</var>issue certificates allowed under the change to this section until July 1, 2012.<br />
         		<br />
         		<a id="bill.8.19.0"></a><a id="pl.108.27"></a><var>108.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 19. <b>AMENDED RETURNS; CERTAIN IRA ROLLOVERS.</b><br />
         		<a id="pl.108.28"></a><var>108.28</var>An individual who excludes an amount from net income in a prior taxable year <br />
         		<a id="pl.108.29"></a><var>108.29</var>through rollover of an airline payment amount to a traditional IRA, as authorized under <br />
         		<a id="pl.108.30"></a><var>108.30</var>Public Law 112-95, section 1106, may file an amended individual income tax return and <br />
         		<a id="pl.108.31"></a><var>108.31</var>claim for refund of state taxes as provided under Minnesota Statutes, section 289A.40, <br />
         		<a id="pl.108.32"></a><var>108.32</var>subdivision 1, or, if later, by April 15, 2013.<br />
         		<a id="pl.109.1"></a><var>109.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.0.0"></a><div class="xtend_ce"><a id="pl.109.2"></a><var>109.2</var><b>ARTICLE 9</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.109.3"></a><var>109.3</var><b>SALES AND SPECIAL TAXES</b><br />
            		
         </div><br />
         		<a id="bill.9.1.0"></a><a id="pl.109.4"></a><var>109.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. Minnesota Statutes 2010, section 289A.20, subdivision 4, is amended to <br />
         		<a id="pl.109.5"></a><var>109.5</var>read:<br />
         		<a id="pl.109.6"></a><var>109.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Sales and use tax.</b> (a) The taxes imposed by chapter 297A are due and <br />
         		<a id="pl.109.7"></a><var>109.7</var>payable to the commissioner monthly on or before the 20th day of the month following <br />
         		<a id="pl.109.8"></a><var>109.8</var>the month in which the taxable event occurred, or following another reporting period <br />
         		<a id="pl.109.9"></a><var>109.9</var>as the commissioner prescribes or as allowed under section 
         <statute_ref>289A.18, subdivision 4</statute_ref>, <br />
         		<a id="pl.109.10"></a><var>109.10</var>paragraph (f) or (g), except that:<br />
         		<a id="pl.109.11"></a><var>109.11</var>(1) use taxes due on an annual use tax return as provided under section 
         <statute_ref>289A.11, <br />
            		<a id="pl.109.12"></a><var>109.12</var>subdivision 1
         </statute_ref>, are payable by April 15 following the close of the calendar year; and.<br />
         		<a id="pl.109.13"></a><var>109.13</var>(2) except as provided in paragraph (f), for a vendor having a liability of $120,000 <br />
         		<a id="pl.109.14"></a><var>109.14</var>or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the taxes <br />
         		<a id="pl.109.15"></a><var>109.15</var>imposed by chapter 297A, except as provided in paragraph (b), are due and payable to the <br />
         		<a id="pl.109.16"></a><var>109.16</var>commissioner monthly in the following manner:<br />
         		<a id="pl.109.17"></a><var>109.17</var>(i) On or before the 14th day of the month following the month in which the taxable <br />
         		<a id="pl.109.18"></a><var>109.18</var>event occurred, the vendor must remit to the commissioner 90 percent of the estimated <br />
         		<a id="pl.109.19"></a><var>109.19</var>liability for the month in which the taxable event occurred.<br />
         		<a id="pl.109.20"></a><var>109.20</var>(ii) On or before the 20th day of the month in which the taxable event occurs, the <br />
         		<a id="pl.109.21"></a><var>109.21</var>vendor must remit to the commissioner a prepayment for the month in which the taxable <br />
         		<a id="pl.109.22"></a><var>109.22</var>event occurs equal to 67 percent of the liability for the previous month.<br />
         		<a id="pl.109.23"></a><var>109.23</var>(iii) On or before the 20th day of the month following the month in which the taxable <br />
         		<a id="pl.109.24"></a><var>109.24</var>event occurred, the vendor must pay any additional amount of tax not previously remitted <br />
         		<a id="pl.109.25"></a><var>109.25</var>under either item (i) or (ii ) or, if the payment made under item (i) or (ii) was greater than <br />
         		<a id="pl.109.26"></a><var>109.26</var>the vendor's liability for the month in which the taxable event occurred, the vendor may <br />
         		<a id="pl.109.27"></a><var>109.27</var>take a credit against the next month's liability in a manner prescribed by the commissioner.<br />
         		<a id="pl.109.28"></a><var>109.28</var>(iv) Once the vendor first pays under either item (i) or (ii), the vendor is required to <br />
         		<a id="pl.109.29"></a><var>109.29</var>continue to make payments in the same manner, as long as the vendor continues having a <br />
         		<a id="pl.109.30"></a><var>109.30</var>liability of $120,000 or more during the most recent fiscal year ending June 30.<br />
         		<a id="pl.109.31"></a><var>109.31</var>(v) Notwithstanding items (i), (ii), and (iv), if a vendor fails to make the required <br />
         		<a id="pl.109.32"></a><var>109.32</var>payment in the first month that the vendor is required to make a payment under either item <br />
         		<a id="pl.109.33"></a><var>109.33</var>(i) or (ii), then the vendor is deemed to have elected to pay under item (ii) and must make <br />
         		<a id="pl.109.34"></a><var>109.34</var>subsequent monthly payments in the manner provided in item (ii).<br />
         		<a id="pl.110.1"></a><var>110.1</var>(vi) For vendors making an accelerated payment under item (ii), for the first month <br />
         		<a id="pl.110.2"></a><var>110.2</var>that the vendor is required to make the accelerated payment, on the 20th of that month, the <br />
         		<a id="pl.110.3"></a><var>110.3</var>vendor will pay 100 percent of the liability for the previous month and a prepayment for <br />
         		<a id="pl.110.4"></a><var>110.4</var>the first month equal to 67 percent of the liability for the previous month.<br />
         		<a id="pl.110.5"></a><var>110.5</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding paragraph (a), A vendor having a liability of $120,000 or more <br />
         		<a id="pl.110.6"></a><var>110.6</var>during a fiscal year ending June 30 must remit the June liability for the next year in the <br />
         		<a id="pl.110.7"></a><var>110.7</var>following manner:<br />
         		<a id="pl.110.8"></a><var>110.8</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) Two business days before June 30 of the year, the vendor must remit 90 percent <br />
         		<a id="pl.110.9"></a><var>110.9</var>of the estimated June liability to the commissioner.<br />
         		<a id="pl.110.10"></a><var>110.10</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) On or before August 20 of the year, the vendor must pay any additional amount <br />
         		<a id="pl.110.11"></a><var>110.11</var>of tax not remitted in June.<br />
         		<a id="pl.110.12"></a><var>110.12</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) A vendor having a liability of:<br />
         		<a id="pl.110.13"></a><var>110.13</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) $10,000 or more, but less than $120,000 during a fiscal year ending June 30, <br />
         		<a id="pl.110.14"></a><var>110.14</var>2009, and fiscal years thereafter, must remit by electronic means all liabilities on returns <br />
         		<a id="pl.110.15"></a><var>110.15</var>due for periods beginning in the subsequent calendar year on or before the 20th day of <br />
         		<a id="pl.110.16"></a><var>110.16</var>the month following the month in which the taxable event occurred, or on or before the <br />
         		<a id="pl.110.17"></a><var>110.17</var>20th day of the month following the month in which the sale is reported under section <br />
         		
         <statute_ref><a id="pl.110.18"></a><var>110.18</var>289A.18, subdivision 4
         </statute_ref>; or<br />
         		<a id="pl.110.19"></a><var>110.19</var>(2) $120,000 or more, during a fiscal year ending June 30, 2009, and fiscal years <br />
         		<a id="pl.110.20"></a><var>110.20</var>thereafter, must remit by electronic means all liabilities in the manner provided in <br />
         		<a id="pl.110.21"></a><var>110.21</var>paragraph (a), clause (2), on returns due for periods beginning in the subsequent calendar <br />
         		<a id="pl.110.22"></a><var>110.22</var>year, except for 90 percent of the estimated June liability, which is due two business days <br />
         		<a id="pl.110.23"></a><var>110.23</var>before June 30. The remaining amount of the June liability is due on August 20.<br />
         		<a id="pl.110.24"></a><var>110.24</var>(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's <br />
         		<a id="pl.110.25"></a><var>110.25</var>religious beliefs from paying electronically shall be allowed to remit the payment by mail. <br />
         		<a id="pl.110.26"></a><var>110.26</var>The filer must notify the commissioner of revenue of the intent to pay by mail before <br />
         		<a id="pl.110.27"></a><var>110.27</var>doing so on a form prescribed by the commissioner. No extra fee may be charged to a <br />
         		<a id="pl.110.28"></a><var>110.28</var>person making payment by mail under this paragraph. The payment must be postmarked <br />
         		<a id="pl.110.29"></a><var>110.29</var>at least two business days before the due date for making the payment in order to be <br />
         		<a id="pl.110.30"></a><var>110.30</var>considered paid on a timely basis.<br />
         		<a id="pl.110.31"></a><var>110.31</var>(e) Whenever the liability is $120,000 or more separately for: (1) the tax imposed <br />
         		<a id="pl.110.32"></a><var>110.32</var>under chapter 297A; (2) a fee that is to be reported on the same return as and paid with the <br />
         		<a id="pl.110.33"></a><var>110.33</var>chapter 297A taxes; or (3) any other tax that is to be reported on the same return as and <br />
         		<a id="pl.110.34"></a><var>110.34</var>paid with the chapter 297A taxes, then the payment of all the liabilities on the return must <br />
         		<a id="pl.110.35"></a><var>110.35</var>be accelerated as provided in this subdivision.<br />
         		<a id="pl.111.1"></a><var>111.1</var>(f) At the start of the first calendar quarter at least 90 days after the cash flow <br />
         		<a id="pl.111.2"></a><var>111.2</var>account established in section 
         <statute_ref>16A.152, subdivision 1</statute_ref>, and the budget reserve account <br />
         		<a id="pl.111.3"></a><var>111.3</var>established in section 
         <statute_ref>16A.152, subdivision 1a</statute_ref>, reach the amounts listed in section <br />
         		<a id="pl.111.4"></a><var>111.4</var><statute_ref>16A.152, subdivision 2</statute_ref>, paragraph (a), the remittance of the accelerated payments required <br />
         		<a id="pl.111.5"></a><var>111.5</var>under paragraph (a), clause (2), must be suspended. The commissioner of management <br />
         		<a id="pl.111.6"></a><var>111.6</var>and budget shall notify the commissioner of revenue when the accounts have reached <br />
         		<a id="pl.111.7"></a><var>111.7</var>the required amounts. Beginning with the suspension of paragraph (a), clause (2), for a <br />
         		<a id="pl.111.8"></a><var>111.8</var>vendor with a liability of $120,000 or more during a fiscal year ending June 30, 2009, <br />
         		<a id="pl.111.9"></a><var>111.9</var>and fiscal years thereafter, the taxes imposed by chapter 297A are due and payable to the <br />
         		<a id="pl.111.10"></a><var>111.10</var>commissioner on the 20th day of the month following the month in which the taxable <br />
         		<a id="pl.111.11"></a><var>111.11</var>event occurred. Payments of tax liabilities for taxable events occurring in June under <br />
         		<a id="pl.111.12"></a><var>111.12</var>paragraph (b) are not changed.<br />
         		<a id="pl.111.13"></a><var>111.13</var><b>EFFECTIVE DATE.</b>This section is effective for taxes due and payable after <br />
         		<a id="pl.111.14"></a><var>111.14</var>June 30, 2012.<br />
         		<br />
         		<a id="bill.9.2.0"></a><a id="pl.111.15"></a><var>111.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. Minnesota Statutes 2011 Supplement, section 295.53, subdivision 1, is <br />
         		<a id="pl.111.16"></a><var>111.16</var>amended to read:<br />
         		<a id="pl.111.17"></a><var>111.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Exemptions.</b> (a) The following payments are excluded from the <br />
         		<a id="pl.111.18"></a><var>111.18</var>gross revenues subject to the hospital, surgical center, or health care provider taxes under <br />
         		<a id="pl.111.19"></a><var>111.19</var>sections 
         <statute_ref>295.50</statute_ref> to 
         <statute_ref>295.59</statute_ref>:<br />
         		<a id="pl.111.20"></a><var>111.20</var>(1) payments received for services provided under the Medicare program, including <br />
         		<a id="pl.111.21"></a><var>111.21</var>payments received from the government, and organizations governed by sections 1833 <br />
         		<a id="pl.111.22"></a><var>111.22</var>and 1876 of title XVIII of the federal Social Security Act, United States Code, title 42, <br />
         		<a id="pl.111.23"></a><var>111.23</var>section 1395, and enrollee deductibles, coinsurance, and co-payments, whether paid by the <br />
         		<a id="pl.111.24"></a><var>111.24</var>Medicare enrollee or by a Medicare supplemental coverage as defined in section 
         <statute_ref>62A.011, <br />
            		<a id="pl.111.25"></a><var>111.25</var>subdivision 3
         </statute_ref>, clause (10), or by Medicaid payments under title XIX of the federal Social <br />
         		<a id="pl.111.26"></a><var>111.26</var>Security Act. Payments for services not covered by Medicare are taxable;<br />
         		<a id="pl.111.27"></a><var>111.27</var>(2) payments received for home health care services;<br />
         		<a id="pl.111.28"></a><var>111.28</var>(3) payments received from hospitals or surgical centers for goods and services on <br />
         		<a id="pl.111.29"></a><var>111.29</var>which liability for tax is imposed under section 
         <statute_ref>295.52</statute_ref> or the source of funds for the <br />
         		<a id="pl.111.30"></a><var>111.30</var>payment is exempt under clause (1), (7), (10), or (14);<br />
         		<a id="pl.111.31"></a><var>111.31</var>(4) payments received from health care providers for goods and services on which <br />
         		<a id="pl.111.32"></a><var>111.32</var>liability for tax is imposed under this chapter or the source of funds for the payment is <br />
         		<a id="pl.111.33"></a><var>111.33</var>exempt under clause (1), (7), (10), or (14);<br />
         		<a id="pl.111.34"></a><var>111.34</var>(5) amounts paid for legend drugs, other than nutritional products and blood and <br />
         		<a id="pl.111.35"></a><var>111.35</var>blood components, to a wholesale drug distributor who is subject to tax under section <br />
         		
         <statute_ref><a id="pl.112.1"></a><var>112.1</var>295.52, subdivision 3
         </statute_ref>, reduced by reimbursements received for legend drugs otherwise <br />
         		<a id="pl.112.2"></a><var>112.2</var>exempt under this chapter;<br />
         		<a id="pl.112.3"></a><var>112.3</var>(6) payments received by a health care provider or the wholly owned subsidiary of a <br />
         		<a id="pl.112.4"></a><var>112.4</var>health care provider for care provided outside Minnesota;<br />
         		<a id="pl.112.5"></a><var>112.5</var>(7) payments received from the chemical dependency fund under chapter 254B;<br />
         		<a id="pl.112.6"></a><var>112.6</var>(8) payments received in the nature of charitable donations that are not designated <br />
         		<a id="pl.112.7"></a><var>112.7</var>for providing patient services to a specific individual or group;<br />
         		<a id="pl.112.8"></a><var>112.8</var>(9) payments received for providing patient services incurred through a formal <br />
         		<a id="pl.112.9"></a><var>112.9</var>program of health care research conducted in conformity with federal regulations <br />
         		<a id="pl.112.10"></a><var>112.10</var>governing research on human subjects. Payments received from patients or from other <br />
         		<a id="pl.112.11"></a><var>112.11</var>persons paying on behalf of the patients are subject to tax;<br />
         		<a id="pl.112.12"></a><var>112.12</var>(10) payments received from any governmental agency for services benefiting the <br />
         		<a id="pl.112.13"></a><var>112.13</var>public, not including payments made by the government in its capacity as an employer <br />
         		<a id="pl.112.14"></a><var>112.14</var>or insurer or payments made by the government for services provided under general <br />
         		<a id="pl.112.15"></a><var>112.15</var>assistance medical care, the MinnesotaCare program, or the medical assistance program <br />
         		<a id="pl.112.16"></a><var>112.16</var>governed by title XIX of the federal Social Security Act, United States Code, title 42, <br />
         		<a id="pl.112.17"></a><var>112.17</var>sections 1396 to 1396v;<br />
         		<a id="pl.112.18"></a><var>112.18</var>(11) government payments received by the commissioner of human services for <br />
         		<a id="pl.112.19"></a><var>112.19</var>state-operated services;<br />
         		<a id="pl.112.20"></a><var>112.20</var>(12) payments received by a health care provider for hearing aids and related <br />
         		<a id="pl.112.21"></a><var>112.21</var>equipment or prescription eyewear delivered outside of Minnesota;<br />
         		<a id="pl.112.22"></a><var>112.22</var>(13) payments received by an educational institution from student tuition, student <br />
         		<a id="pl.112.23"></a><var>112.23</var>activity fees, health care service fees, government appropriations, donations, or grants, <br />
         		<a id="pl.112.24"></a><var>112.24</var>and for services identified in and provided under an individualized education program <br />
         		<a id="pl.112.25"></a><var>112.25</var>as defined in section 
         <statute_ref>256B.0625</statute_ref> or Code of Federal Regulations, chapter 34, section <br />
         		<a id="pl.112.26"></a><var>112.26</var>300.340(a). Fee for service payments and payments for extended coverage are taxable;<br />
         		<a id="pl.112.27"></a><var>112.27</var>(14) payments received under the federal Employees Health Benefits Act, United <br />
         		<a id="pl.112.28"></a><var>112.28</var>States Code, title 5, section 8909(f), as amended by the Omnibus Reconciliation Act of <br />
         		<a id="pl.112.29"></a><var>112.29</var>1990. Enrollee deductibles, coinsurance, and co-payments are subject to tax; and<br />
         		<a id="pl.112.30"></a><var>112.30</var>(15) payments received under the federal Tricare program, Code of Federal <br />
         		<a id="pl.112.31"></a><var>112.31</var>Regulations, title 32, section 199.17(a)(7). Enrollee deductibles, coinsurance, and <br />
         		<a id="pl.112.32"></a><var>112.32</var>co-payments are subject to tax.; and<br />
         		<a id="pl.112.33"></a><var>112.33</var>(16) payments for laboratory services to examine and report results for a biological <br />
         		<a id="pl.112.34"></a><var>112.34</var>specimen that is collected outside the state. The entity claiming the exemption is required <br />
         		<a id="pl.112.35"></a><var>112.35</var>to keep adequate records demonstrating that the specimen was collected outside the state, <br />
         		<a id="pl.112.36"></a><var>112.36</var>so that the commissioner can ensure that the correct amount of tax is paid.<br />
         		<a id="pl.113.1"></a><var>113.1</var>(b) Payments received by wholesale drug distributors for legend drugs sold directly <br />
         		<a id="pl.113.2"></a><var>113.2</var>to veterinarians or veterinary bulk purchasing organizations are excluded from the gross <br />
         		<a id="pl.113.3"></a><var>113.3</var>revenues subject to the wholesale drug distributor tax under sections 
         <statute_ref>295.50</statute_ref> to 
         <statute_ref>295.59</statute_ref>.<br />
         		<a id="pl.113.4"></a><var>113.4</var><b>EFFECTIVE DATE.</b>This section is effective for gross revenues received from <br />
         		<a id="pl.113.5"></a><var>113.5</var>laboratory services provided on or after July 1, 2013.<br />
         		<br />
         		<a id="bill.9.3.0"></a><a id="pl.113.6"></a><var>113.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. Minnesota Statutes 2010, section 297A.61, subdivision 4, is amended to read:<br />
         		<a id="pl.113.7"></a><var>113.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Retail sale.</b> (a) A "retail sale" means any sale, lease, or rental for any <br />
         		<a id="pl.113.8"></a><var>113.8</var>purpose, other than resale, sublease, or subrent of items by the purchaser in the normal <br />
         		<a id="pl.113.9"></a><var>113.9</var>course of business as defined in subdivision 21.<br />
         		<a id="pl.113.10"></a><var>113.10</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) A sale of property used by the owner only by leasing it to others or by holding it <br />
         		<a id="pl.113.11"></a><var>113.11</var>in an effort to lease it, and put to no use by the owner other than resale after the lease or <br />
         		<a id="pl.113.12"></a><var>113.12</var>effort to lease, is a sale of property for resale.<br />
         		<a id="pl.113.13"></a><var>113.13</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) A sale of master computer software that is purchased and used to make copies for <br />
         		<a id="pl.113.14"></a><var>113.14</var>sale or lease is a sale of property for resale.<br />
         		<a id="pl.113.15"></a><var>113.15</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) A sale of building materials, supplies, and equipment to owners, contractors, <br />
         		<a id="pl.113.16"></a><var>113.16</var>subcontractors, or builders for the erection of buildings or the alteration, repair, or <br />
         		<a id="pl.113.17"></a><var>113.17</var>improvement of real property is a retail sale in whatever quantity sold, whether the sale is <br />
         		<a id="pl.113.18"></a><var>113.18</var>for purposes of resale in the form of real property or otherwise.<br />
         		<a id="pl.113.19"></a><var>113.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(e) A sale of carpeting, linoleum, or similar floor covering to a person who provides <br />
         		<a id="pl.113.20"></a><var>113.20</var>for installation of the floor covering is a retail sale and not a sale for resale since a sale <br />
         		<a id="pl.113.21"></a><var>113.21</var>of floor covering which includes installation is a contract for the improvement of real <br />
         		<a id="pl.113.22"></a><var>113.22</var>property.<br />
         		<a id="pl.113.23"></a><var>113.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(f) A sale of shrubbery, plants, sod, trees, and similar items to a person who provides <br />
         		<a id="pl.113.24"></a><var>113.24</var>for installation of the items is a retail sale and not a sale for resale since a sale of <br />
         		<a id="pl.113.25"></a><var>113.25</var>shrubbery, plants, sod, trees, and similar items that includes installation is a contract for <br />
         		<a id="pl.113.26"></a><var>113.26</var>the improvement of real property.<br />
         		<a id="pl.113.27"></a><var>113.27</var>&nbsp;&nbsp;&nbsp;&nbsp;(g) A sale of tangible personal property that is awarded as prizes is a retail sale and <br />
         		<a id="pl.113.28"></a><var>113.28</var>is not considered a sale of property for resale.<br />
         		<a id="pl.113.29"></a><var>113.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(h) A sale of tangible personal property utilized or employed in the furnishing or <br />
         		<a id="pl.113.30"></a><var>113.30</var>providing of services under subdivision 3, paragraph (g), clause (1), including, but not <br />
         		<a id="pl.113.31"></a><var>113.31</var>limited to, property given as promotional items, is a retail sale and is not considered a <br />
         		<a id="pl.113.32"></a><var>113.32</var>sale of property for resale.<br />
         		<a id="pl.113.33"></a><var>113.33</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) A sale of tangible personal property used in conducting lawful gambling under <br />
         		<a id="pl.113.34"></a><var>113.34</var>chapter 349 or the State Lottery under chapter 349A, including, but not limited to, <br />
         		<a id="pl.114.1"></a><var>114.1</var>property given as promotional items, is a retail sale and is not considered a sale of <br />
         		<a id="pl.114.2"></a><var>114.2</var>property for resale.<br />
         		<a id="pl.114.3"></a><var>114.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(j) A sale of machines, equipment, or devices that are used to furnish, provide, or <br />
         		<a id="pl.114.4"></a><var>114.4</var>dispense goods or services, including, but not limited to, coin-operated devices, is a retail <br />
         		<a id="pl.114.5"></a><var>114.5</var>sale and is not considered a sale of property for resale.<br />
         		<a id="pl.114.6"></a><var>114.6</var>&nbsp;&nbsp;&nbsp;&nbsp;(k) In the case of a lease, a retail sale occurs (1) when an obligation to make a lease <br />
         		<a id="pl.114.7"></a><var>114.7</var>payment becomes due under the terms of the agreement or the trade practices of the lessor <br />
         		<a id="pl.114.8"></a><var>114.8</var>or; (2) in the case of a lease of a motor vehicle, as defined in section 
         <statute_ref>297B.01, subdivision <br />
            		<a id="pl.114.9"></a><var>114.9</var>11
         </statute_ref>, but excluding vehicles with a manufacturer's gross vehicle weight rating greater than <br />
         		<a id="pl.114.10"></a><var>114.10</var>10,000 pounds and rentals of vehicles for not more than 28 days, at the time the lease is <br />
         		<a id="pl.114.11"></a><var>114.11</var>executed; or (3) for rent-to-own or lease-to-own used vehicles where the lessee may <br />
         		<a id="pl.114.12"></a><var>114.12</var>purchase or return the vehicle at any time without penalty, at the time each payment is <br />
         		<a id="pl.114.13"></a><var>114.13</var>made under the terms of the agreement.<br />
         		<a id="pl.114.14"></a><var>114.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(l) In the case of a conditional sales contract, a retail sale occurs upon the transfer of <br />
         		<a id="pl.114.15"></a><var>114.15</var>title or possession of the tangible personal property.<br />
         		<a id="pl.114.16"></a><var>114.16</var>&nbsp;&nbsp;&nbsp;&nbsp;(m) A sale of a bundled transaction in which one or more of the products included <br />
         		<a id="pl.114.17"></a><var>114.17</var>in the bundle is a taxable product is a retail sale, except that if one of the products <br />
         		<a id="pl.114.18"></a><var>114.18</var>is a telecommunication service, ancillary service, Internet access, or audio or video <br />
         		<a id="pl.114.19"></a><var>114.19</var>programming service, and the seller has maintained books and records identifying through <br />
         		<a id="pl.114.20"></a><var>114.20</var>reasonable and verifiable standards the portions of the price that are attributable to the <br />
         		<a id="pl.114.21"></a><var>114.21</var>distinct and separately identifiable products, then the products are not considered part of a <br />
         		<a id="pl.114.22"></a><var>114.22</var>bundled transaction. For purposes of this paragraph:<br />
         		<a id="pl.114.23"></a><var>114.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) the books and records maintained by the seller must be maintained in the regular <br />
         		<a id="pl.114.24"></a><var>114.24</var>course of business, and do not include books and records created and maintained by the <br />
         		<a id="pl.114.25"></a><var>114.25</var>seller primarily for tax purposes;<br />
         		<a id="pl.114.26"></a><var>114.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) books and records maintained in the regular course of business include, but are <br />
         		<a id="pl.114.27"></a><var>114.27</var>not limited to, financial statements, general ledgers, invoicing and billing systems and <br />
         		<a id="pl.114.28"></a><var>114.28</var>reports, and reports for regulatory tariffs and other regulatory matters; and<br />
         		<a id="pl.114.29"></a><var>114.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) books and records are maintained primarily for tax purposes when the books <br />
         		<a id="pl.114.30"></a><var>114.30</var>and records identify taxable and nontaxable portions of the price, but the seller maintains <br />
         		<a id="pl.114.31"></a><var>114.31</var>other books and records that identify different prices attributable to the distinct products <br />
         		<a id="pl.114.32"></a><var>114.32</var>included in the same bundled transaction.<br />
         		<a id="pl.114.33"></a><var>114.33</var><b>EFFECTIVE DATE.</b>This section is effective for leases entered into after June <br />
         		<a id="pl.114.34"></a><var>114.34</var>30, 2012.<br />
         		<br />
         		<a id="bill.9.4.0"></a><a id="pl.114.35"></a><var>114.35</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 4. Minnesota Statutes 2010, section 297A.68, subdivision 5, is amended to read:<br />
         		<a id="pl.115.1"></a><var>115.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Capital equipment.</b> (a) Capital equipment is exempt. Except as provided <br />
         		<a id="pl.115.2"></a><var>115.2</var>in paragraph (e), the tax must be imposed and collected as if the rate under section <br />
         		
         <statute_ref><a id="pl.115.3"></a><var>115.3</var>297A.62, subdivision 1
         </statute_ref>, applied, and then refunded in the manner provided in section <br />
         		
         <statute_ref><a id="pl.115.4"></a><var>115.4</var>297A.75
         </statute_ref>.<br />
         		<a id="pl.115.5"></a><var>115.5</var>"Capital equipment" means machinery and equipment purchased or leased, and used <br />
         		<a id="pl.115.6"></a><var>115.6</var>in this state by the purchaser or lessee primarily for manufacturing, fabricating, mining, <br />
         		<a id="pl.115.7"></a><var>115.7</var>or refining tangible personal property to be sold ultimately at retail if the machinery and <br />
         		<a id="pl.115.8"></a><var>115.8</var>equipment are essential to the integrated production process of manufacturing, fabricating, <br />
         		<a id="pl.115.9"></a><var>115.9</var>mining, or refining. Capital equipment also includes machinery and equipment <br />
         		<a id="pl.115.10"></a><var>115.10</var>used primarily to electronically transmit results retrieved by a customer of an online <br />
         		<a id="pl.115.11"></a><var>115.11</var>computerized data retrieval system.<br />
         		<a id="pl.115.12"></a><var>115.12</var>(b) Capital equipment includes, but is not limited to:<br />
         		<a id="pl.115.13"></a><var>115.13</var>(1) machinery and equipment used to operate, control, or regulate the production <br />
         		<a id="pl.115.14"></a><var>115.14</var>equipment;<br />
         		<a id="pl.115.15"></a><var>115.15</var>(2) machinery and equipment used for research and development, design, quality <br />
         		<a id="pl.115.16"></a><var>115.16</var>control, and testing activities;<br />
         		<a id="pl.115.17"></a><var>115.17</var>(3) environmental control devices that are used to maintain conditions such as <br />
         		<a id="pl.115.18"></a><var>115.18</var>temperature, humidity, light, or air pressure when those conditions are essential to and are <br />
         		<a id="pl.115.19"></a><var>115.19</var>part of the production process;<br />
         		<a id="pl.115.20"></a><var>115.20</var>(4) materials and supplies used to construct and install machinery or equipment;<br />
         		<a id="pl.115.21"></a><var>115.21</var>(5) repair and replacement parts, including accessories, whether purchased as spare <br />
         		<a id="pl.115.22"></a><var>115.22</var>parts, repair parts, or as upgrades or modifications to machinery or equipment;<br />
         		<a id="pl.115.23"></a><var>115.23</var>(6) materials used for foundations that support machinery or equipment;<br />
         		<a id="pl.115.24"></a><var>115.24</var>(7) materials used to construct and install special purpose buildings used in the <br />
         		<a id="pl.115.25"></a><var>115.25</var>production process;<br />
         		<a id="pl.115.26"></a><var>115.26</var>(8) ready-mixed concrete equipment in which the ready-mixed concrete is mixed <br />
         		<a id="pl.115.27"></a><var>115.27</var>as part of the delivery process regardless if mounted on a chassis, repair parts for <br />
         		<a id="pl.115.28"></a><var>115.28</var>ready-mixed concrete trucks, and leases of ready-mixed concrete trucks; and<br />
         		<a id="pl.115.29"></a><var>115.29</var>(9) machinery or equipment used for research, development, design, or production <br />
         		<a id="pl.115.30"></a><var>115.30</var>of computer software.<br />
         		<a id="pl.115.31"></a><var>115.31</var>(c) Capital equipment does not include the following:<br />
         		<a id="pl.115.32"></a><var>115.32</var>(1) motor vehicles taxed under chapter 297B;<br />
         		<a id="pl.115.33"></a><var>115.33</var>(2) machinery or equipment used to receive or store raw materials;<br />
         		<a id="pl.115.34"></a><var>115.34</var>(3) building materials, except for materials included in paragraph (b), clauses (6) <br />
         		<a id="pl.115.35"></a><var>115.35</var>and (7);<br />
         		<a id="pl.116.1"></a><var>116.1</var>(4) machinery or equipment used for nonproduction purposes, including, but not <br />
         		<a id="pl.116.2"></a><var>116.2</var>limited to, the following: plant security, fire prevention, first aid, and hospital stations; <br />
         		<a id="pl.116.3"></a><var>116.3</var>support operations or administration; pollution control; and plant cleaning, disposal of <br />
         		<a id="pl.116.4"></a><var>116.4</var>scrap and waste, plant communications, space heating, cooling, lighting, or safety;<br />
         		<a id="pl.116.5"></a><var>116.5</var>(5) farm machinery and aquaculture production equipment as defined by section <br />
         		
         <statute_ref><a id="pl.116.6"></a><var>116.6</var>297A.61
         </statute_ref>, subdivisions 12 and 13;<br />
         		<a id="pl.116.7"></a><var>116.7</var>(6) machinery or equipment purchased and installed by a contractor as part of an <br />
         		<a id="pl.116.8"></a><var>116.8</var>improvement to real property;<br />
         		<a id="pl.116.9"></a><var>116.9</var>(7) machinery and equipment used by restaurants in the furnishing, preparing, or <br />
         		<a id="pl.116.10"></a><var>116.10</var>serving of prepared foods as defined in section 
         <statute_ref>297A.61, subdivision 31</statute_ref>;<br />
         		<a id="pl.116.11"></a><var>116.11</var>(8) machinery and equipment used to furnish the services listed in section 
         <statute_ref>297A.61, <br />
            		<a id="pl.116.12"></a><var>116.12</var>subdivision 3
         </statute_ref>, paragraph (g), clause (6), items (i) to (vi) and (viii);<br />
         		<a id="pl.116.13"></a><var>116.13</var>(9) machinery or equipment used in the transportation, transmission, or distribution <br />
         		<a id="pl.116.14"></a><var>116.14</var>of petroleum, liquefied gas, natural gas, water, or steam, in, by, or through pipes, lines, <br />
         		<a id="pl.116.15"></a><var>116.15</var>tanks, mains, or other means of transporting those products. This clause does not apply to <br />
         		<a id="pl.116.16"></a><var>116.16</var>machinery or equipment used to blend petroleum or biodiesel fuel as defined in section <br />
         		
         <statute_ref><a id="pl.116.17"></a><var>116.17</var>239.77
         </statute_ref>; or<br />
         		<a id="pl.116.18"></a><var>116.18</var>(10) any other item that is not essential to the integrated process of manufacturing, <br />
         		<a id="pl.116.19"></a><var>116.19</var>fabricating, mining, or refining.<br />
         		<a id="pl.116.20"></a><var>116.20</var>(d) For purposes of this subdivision:<br />
         		<a id="pl.116.21"></a><var>116.21</var>(1) "Equipment" means independent devices or tools separate from machinery but <br />
         		<a id="pl.116.22"></a><var>116.22</var>essential to an integrated production process, including computers and computer software, <br />
         		<a id="pl.116.23"></a><var>116.23</var>used in operating, controlling, or regulating machinery and equipment; and any subunit or <br />
         		<a id="pl.116.24"></a><var>116.24</var>assembly comprising a component of any machinery or accessory or attachment parts of <br />
         		<a id="pl.116.25"></a><var>116.25</var>machinery, such as tools, dies, jigs, patterns, and molds.<br />
         		<a id="pl.116.26"></a><var>116.26</var>(2) "Fabricating" means to make, build, create, produce, or assemble components or <br />
         		<a id="pl.116.27"></a><var>116.27</var>property to work in a new or different manner.<br />
         		<a id="pl.116.28"></a><var>116.28</var>(3) "Integrated production process" means a process or series of operations through <br />
         		<a id="pl.116.29"></a><var>116.29</var>which tangible personal property is manufactured, fabricated, mined, or refined. For <br />
         		<a id="pl.116.30"></a><var>116.30</var>purposes of this clause, (i) manufacturing begins with the removal of raw materials <br />
         		<a id="pl.116.31"></a><var>116.31</var>from inventory and ends when the last process prior to loading for shipment has been <br />
         		<a id="pl.116.32"></a><var>116.32</var>completed; (ii) fabricating begins with the removal from storage or inventory of the <br />
         		<a id="pl.116.33"></a><var>116.33</var>property to be assembled, processed, altered, or modified and ends with the creation <br />
         		<a id="pl.116.34"></a><var>116.34</var>or production of the new or changed product; (iii) mining begins with the removal of <br />
         		<a id="pl.116.35"></a><var>116.35</var>overburden from the site of the ores, minerals, stone, peat deposit, or surface materials and <br />
         		<a id="pl.116.36"></a><var>116.36</var>ends when the last process before stockpiling is completed; and (iv) refining begins with <br />
         		<a id="pl.117.1"></a><var>117.1</var>the removal from inventory or storage of a natural resource and ends with the conversion <br />
         		<a id="pl.117.2"></a><var>117.2</var>of the item to its completed form.<br />
         		<a id="pl.117.3"></a><var>117.3</var>(4) "Machinery" means mechanical, electronic, or electrical devices, including <br />
         		<a id="pl.117.4"></a><var>117.4</var>computers and computer software, that are purchased or constructed to be used for the <br />
         		<a id="pl.117.5"></a><var>117.5</var>activities set forth in paragraph (a), beginning with the removal of raw materials from <br />
         		<a id="pl.117.6"></a><var>117.6</var>inventory through completion of the product, including packaging of the product.<br />
         		<a id="pl.117.7"></a><var>117.7</var>(5) "Machinery and equipment used for pollution control" means machinery and <br />
         		<a id="pl.117.8"></a><var>117.8</var>equipment used solely to eliminate, prevent, or reduce pollution resulting from an activity <br />
         		<a id="pl.117.9"></a><var>117.9</var>described in paragraph (a).<br />
         		<a id="pl.117.10"></a><var>117.10</var>(6) "Manufacturing" means an operation or series of operations where raw materials <br />
         		<a id="pl.117.11"></a><var>117.11</var>are changed in form, composition, or condition by machinery and equipment and which <br />
         		<a id="pl.117.12"></a><var>117.12</var>results in the production of a new article of tangible personal property. For purposes of <br />
         		<a id="pl.117.13"></a><var>117.13</var>this subdivision, "manufacturing" includes the generation of electricity or steam to be <br />
         		<a id="pl.117.14"></a><var>117.14</var>sold at retail.<br />
         		<a id="pl.117.15"></a><var>117.15</var>(7) "Mining" means the extraction of minerals, ores, stone, or peat.<br />
         		<a id="pl.117.16"></a><var>117.16</var>(8) "Online data retrieval system" means a system whose cumulation of information <br />
         		<a id="pl.117.17"></a><var>117.17</var>is equally available and accessible to all its customers.<br />
         		<a id="pl.117.18"></a><var>117.18</var>(9) "Primarily" means machinery and equipment used 50 percent or more of the time <br />
         		<a id="pl.117.19"></a><var>117.19</var>in an activity described in paragraph (a).<br />
         		<a id="pl.117.20"></a><var>117.20</var>(10) "Refining" means the process of converting a natural resource to an intermediate <br />
         		<a id="pl.117.21"></a><var>117.21</var>or finished product, including the treatment of water to be sold at retail.<br />
         		<a id="pl.117.22"></a><var>117.22</var>(11) This subdivision does not apply to telecommunications equipment as <br />
         		<a id="pl.117.23"></a><var>117.23</var>provided in subdivision 35, and does not apply to wire, cable, fiber, poles, or conduit <br />
         		<a id="pl.117.24"></a><var>117.24</var>for telecommunications services.<br />
         		<a id="pl.117.25"></a><var>117.25</var>(e) Materials exempt under this section may be purchased without imposing and <br />
         		<a id="pl.117.26"></a><var>117.26</var>collecting the tax and applying for a refund under section 297A.75, provided that:<br />
         		<a id="pl.117.27"></a><var>117.27</var>(1) the purchaser employed not more than 50 full-time employees at any time <br />
         		<a id="pl.117.28"></a><var>117.28</var>during the calendar year that is immediately prior to the calendar year of the sale and <br />
         		<a id="pl.117.29"></a><var>117.29</var>purchase; and <br />
         		<a id="pl.117.30"></a><var>117.30</var>(2) if another business owns at least 20 percent of the purchaser, then the sum of the <br />
         		<a id="pl.117.31"></a><var>117.31</var>number of full-time employees employed by the purchaser and the number of full-time <br />
         		<a id="pl.117.32"></a><var>117.32</var>employees employed by any other business that owns at least 20 percent of the purchaser's <br />
         		<a id="pl.117.33"></a><var>117.33</var>business is not more than 50 full-time employees at any time during the calendar year that <br />
         		<a id="pl.117.34"></a><var>117.34</var>is immediately prior to the calendar year of the sale and purchase. This clause must be <br />
         		<a id="pl.117.35"></a><var>117.35</var>applied for each business that owns at least 20 percent of the purchaser.<br />
         		<a id="pl.118.1"></a><var>118.1</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br />
         		<a id="pl.118.2"></a><var>118.2</var>June 30, 2012.<br />
         		<br />
         		<a id="bill.9.5.0"></a><a id="pl.118.3"></a><var>118.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 5. Minnesota Statutes 2011 Supplement, section 297A.68, subdivision 42, is <br />
         		<a id="pl.118.4"></a><var>118.4</var>amended to read:<br />
         		<a id="pl.118.5"></a><var>118.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 42. <b>Qualified data centers.</b> (a) Purchases of enterprise information <br />
         		<a id="pl.118.6"></a><var>118.6</var>technology equipment and computer software for use in a qualified data center are exempt. <br />
         		<a id="pl.118.7"></a><var>118.7</var>The tax on purchases exempt under this paragraph must be imposed and collected as if <br />
         		<a id="pl.118.8"></a><var>118.8</var>the rate under section 
         <statute_ref>297A.62, subdivision 1</statute_ref>, applied, and then refunded after June 30, <br />
         		<a id="pl.118.9"></a><var>118.9</var>2013, in the manner provided in section 
         <statute_ref>297A.75</statute_ref>. This exemption includes enterprise <br />
         		<a id="pl.118.10"></a><var>118.10</var>information technology equipment and computer software purchased to replace or upgrade <br />
         		<a id="pl.118.11"></a><var>118.11</var>enterprise information technology equipment and computer software in a qualified data <br />
         		<a id="pl.118.12"></a><var>118.12</var>center.<br />
         		<a id="pl.118.13"></a><var>118.13</var>(b) Electricity used or consumed in the operation of a qualified data center is exempt.<br />
         		<a id="pl.118.14"></a><var>118.14</var>(c) For purposes of this subdivision, "qualified data center" means a facility in <br />
         		<a id="pl.118.15"></a><var>118.15</var>Minnesota:<br />
         		<a id="pl.118.16"></a><var>118.16</var>(1) that is comprised of one or more buildings that consist in the aggregate of <br />
         		<a id="pl.118.17"></a><var>118.17</var>at least 30,000 square feet, and that are located on a single parcel or on contiguous <br />
         		<a id="pl.118.18"></a><var>118.18</var>parcels, where the total cost of construction or refurbishment, investment in enterprise <br />
         		<a id="pl.118.19"></a><var>118.19</var>information technology equipment, and computer software is at least $50,000,000 within <br />
         		<a id="pl.118.20"></a><var>118.20</var>a 24-month period;<br />
         		<a id="pl.118.21"></a><var>118.21</var>(2) that is constructed or substantially refurbished after June 30, 2012, where <br />
         		<a id="pl.118.22"></a><var>118.22</var>"substantially refurbished" means that at least 30,000 25,000 square feet have been rebuilt <br />
         		<a id="pl.118.23"></a><var>118.23</var>or modified; and, including:<br />
         		<a id="pl.118.24"></a><var>118.24</var>(i) installation of enterprise information technology equipment, computer software, <br />
         		<a id="pl.118.25"></a><var>118.25</var>environmental control and energy efficiency improvements; and<br />
         		<a id="pl.118.26"></a><var>118.26</var>(ii) building improvements; and<br />
         		<a id="pl.118.27"></a><var>118.27</var>(3) that is used to house enterprise information technology equipment, where the <br />
         		<a id="pl.118.28"></a><var>118.28</var>facility has the following characteristics:<br />
         		<a id="pl.118.29"></a><var>118.29</var>(i) uninterruptible power supplies, generator backup power, or both;<br />
         		<a id="pl.118.30"></a><var>118.30</var>(ii) sophisticated fire suppression and prevention systems; and<br />
         		<a id="pl.118.31"></a><var>118.31</var>(iii) enhanced security. A facility will be considered to have enhanced security if it <br />
         		<a id="pl.118.32"></a><var>118.32</var>has restricted access to the facility to selected personnel; permanent security guards; video <br />
         		<a id="pl.118.33"></a><var>118.33</var>camera surveillance; an electronic system requiring pass codes, keycards, or biometric <br />
         		<a id="pl.118.34"></a><var>118.34</var>scans, such as hand scans and retinal or fingerprint recognition; or similar security features.<br />
         		<a id="pl.119.1"></a><var>119.1</var>In determining whether the facility has the required square footage, the square <br />
         		<a id="pl.119.2"></a><var>119.2</var>footage of the following spaces shall be included if the spaces support the operation <br />
         		<a id="pl.119.3"></a><var>119.3</var>of enterprise information technology equipment: office space, meeting space, and <br />
         		<a id="pl.119.4"></a><var>119.4</var>mechanical and other support facilities. For purposes of this subdivision, "computer <br />
         		<a id="pl.119.5"></a><var>119.5</var>software" includes, but is not limited to, software utilized or loaded at the qualified data <br />
         		<a id="pl.119.6"></a><var>119.6</var>center, including maintenance, licensing, and software customization.<br />
         		<a id="pl.119.7"></a><var>119.7</var>(d) For purposes of this subdivision, "enterprise information technology equipment" <br />
         		<a id="pl.119.8"></a><var>119.8</var>means computers and equipment supporting computing, networking, or data storage, <br />
         		<a id="pl.119.9"></a><var>119.9</var>including servers and routers. It includes, but is not limited to: cooling systems, <br />
         		<a id="pl.119.10"></a><var>119.10</var>cooling towers, and other temperature control infrastructure; power infrastructure for <br />
         		<a id="pl.119.11"></a><var>119.11</var>transformation, distribution, or management of electricity used for the maintenance <br />
         		<a id="pl.119.12"></a><var>119.12</var>and operation of a qualified data center, including but not limited to exterior dedicated <br />
         		<a id="pl.119.13"></a><var>119.13</var>business-owned substations, backup power generation systems, battery systems, and <br />
         		<a id="pl.119.14"></a><var>119.14</var>related infrastructure; and racking systems, cabling, and trays, which are necessary for <br />
         		<a id="pl.119.15"></a><var>119.15</var>the maintenance and operation of the qualified data center.<br />
         		<a id="pl.119.16"></a><var>119.16</var>(e) A qualified data center may claim the exemptions in this subdivision for <br />
         		<a id="pl.119.17"></a><var>119.17</var>purchases made either within 20 years of the date of its first purchase qualifying for the <br />
         		<a id="pl.119.18"></a><var>119.18</var>exemption under paragraph (a), or by June 30, 2042, whichever is earlier.<br />
         		<a id="pl.119.19"></a><var>119.19</var>(f) The purpose of this exemption is to create jobs in the construction and data <br />
         		<a id="pl.119.20"></a><var>119.20</var>center industries.<br />
         		<a id="pl.119.21"></a><var>119.21</var>(g) This subdivision is effective for sales and purchases made after June 30, 2012, <br />
         		<a id="pl.119.22"></a><var>119.22</var>and before July 1, 2042.<br />
         		<a id="pl.119.23"></a><var>119.23</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br />
         		<a id="pl.119.24"></a><var>119.24</var>June 30, 2012.<br />
         		<br />
         		<a id="bill.9.6.0"></a><a id="pl.119.25"></a><var>119.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 6. Minnesota Statutes 2010, section 297A.70, subdivision 4, is amended to read:<br />
         		<a id="pl.119.26"></a><var>119.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Sales to nonprofit groups.</b> (a) All sales, except those listed in paragraph <br />
         		<a id="pl.119.27"></a><var>119.27</var>(b), to the following "nonprofit organizations" are exempt:<br />
         		<a id="pl.119.28"></a><var>119.28</var>(1) a corporation, society, association, foundation, or institution organized and <br />
         		<a id="pl.119.29"></a><var>119.29</var>operated exclusively for charitable, religious, or educational purposes if the item <br />
         		<a id="pl.119.30"></a><var>119.30</var>purchased is used in the performance of charitable, religious, or educational functions; and<br />
         		<a id="pl.119.31"></a><var>119.31</var>(2) any senior citizen group or association of groups that:<br />
         		<a id="pl.119.32"></a><var>119.32</var>(i) in general limits membership to persons who are either age 55 or older, or <br />
         		<a id="pl.119.33"></a><var>119.33</var>physically disabled;<br />
         		<a id="pl.120.1"></a><var>120.1</var>(ii) is organized and operated exclusively for pleasure, recreation, and other <br />
         		<a id="pl.120.2"></a><var>120.2</var>nonprofit purposes, not including housing, no part of the net earnings of which inures to <br />
         		<a id="pl.120.3"></a><var>120.3</var>the benefit of any private shareholders; and<br />
         		<a id="pl.120.4"></a><var>120.4</var>(iii) is an exempt organization under section 501(c) of the Internal Revenue Code.<br />
         		<a id="pl.120.5"></a><var>120.5</var>For purposes of this subdivision, charitable purpose includes the maintenance of a <br />
         		<a id="pl.120.6"></a><var>120.6</var>cemetery owned by a religious organization.<br />
         		<a id="pl.120.7"></a><var>120.7</var>(b) This exemption does not apply to the following sales:<br />
         		<a id="pl.120.8"></a><var>120.8</var>(1) building, construction, or reconstruction materials purchased by a contractor <br />
         		<a id="pl.120.9"></a><var>120.9</var>or a subcontractor as a part of a lump-sum contract or similar type of contract with a <br />
         		<a id="pl.120.10"></a><var>120.10</var>guaranteed maximum price covering both labor and materials for use in the construction, <br />
         		<a id="pl.120.11"></a><var>120.11</var>alteration, or repair of a building or facility;<br />
         		<a id="pl.120.12"></a><var>120.12</var>(2) construction materials purchased by tax-exempt entities or their contractors to <br />
         		<a id="pl.120.13"></a><var>120.13</var>be used in constructing buildings or facilities that will not be used principally by the <br />
         		<a id="pl.120.14"></a><var>120.14</var>tax-exempt entities; and<br />
         		<a id="pl.120.15"></a><var>120.15</var>(3) lodging as defined under section 
         <statute_ref>297A.61, subdivision 3</statute_ref>, paragraph (g), clause <br />
         		<a id="pl.120.16"></a><var>120.16</var>(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section <br />
         		
         <statute_ref><a id="pl.120.17"></a><var>120.17</var>297A.67, subdivision 2
         </statute_ref>, except wine purchased by an established religious organization <br />
         		<a id="pl.120.18"></a><var>120.18</var>for sacramental purposes or as allowed under subdivision 9a; and<br />
         		<a id="pl.120.19"></a><var>120.19</var>(4) leasing of a motor vehicle as defined in section 
         <statute_ref>297B.01, subdivision 11</statute_ref>, except <br />
         		<a id="pl.120.20"></a><var>120.20</var>as provided in paragraph (c).<br />
         		<a id="pl.120.21"></a><var>120.21</var>(c) This exemption applies to the leasing of a motor vehicle as defined in section <br />
         		
         <statute_ref><a id="pl.120.22"></a><var>120.22</var>297B.01, subdivision 11
         </statute_ref>, only if the vehicle is:<br />
         		<a id="pl.120.23"></a><var>120.23</var>(1) a truck, as defined in section 
         <statute_ref>168.002</statute_ref>, a bus, as defined in section 
         <statute_ref>168.002</statute_ref>, or a <br />
         		<a id="pl.120.24"></a><var>120.24</var>passenger automobile, as defined in section 
         <statute_ref>168.002</statute_ref>, if the automobile is designed and <br />
         		<a id="pl.120.25"></a><var>120.25</var>used for carrying more than nine persons including the driver; and<br />
         		<a id="pl.120.26"></a><var>120.26</var>(2) intended to be used primarily to transport tangible personal property or <br />
         		<a id="pl.120.27"></a><var>120.27</var>individuals, other than employees, to whom the organization provides service in <br />
         		<a id="pl.120.28"></a><var>120.28</var>performing its charitable, religious, or educational purpose.<br />
         		<a id="pl.120.29"></a><var>120.29</var>(d) A limited liability company also qualifies for exemption under this subdivision if <br />
         		<a id="pl.120.30"></a><var>120.30</var>(1) it consists of a sole member that would qualify for the exemption, and (2) the items <br />
         		<a id="pl.120.31"></a><var>120.31</var>purchased qualify for the exemption.<br />
         		<a id="pl.120.32"></a><var>120.32</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br />
         		<a id="pl.120.33"></a><var>120.33</var>June 30, 2012.<br />
         		<br />
         		<a id="bill.9.7.0"></a><a id="pl.120.34"></a><var>120.34</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 7. Minnesota Statutes 2010, section 297A.70, is amended by adding a subdivision <br />
         		<a id="pl.120.35"></a><var>120.35</var>to read:<br />
         		<a id="pl.121.1"></a><var>121.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 9a. <b>Established religious orders.</b> (a) Sales of lodging, prepared food, candy, <br />
         		<a id="pl.121.2"></a><var>121.2</var>soft drinks, and alcoholic beverages at noncatered events between an established religious <br />
         		<a id="pl.121.3"></a><var>121.3</var>order and an affiliated institution of higher education are exempt.<br />
         		<a id="pl.121.4"></a><var>121.4</var>(b) For purposes of this subdivision, "established religious order" means an <br />
         		<a id="pl.121.5"></a><var>121.5</var>organization directly or indirectly under the control or supervision of a church or <br />
         		<a id="pl.121.6"></a><var>121.6</var>convention or association of churches, where members of the organization (1) normally <br />
         		<a id="pl.121.7"></a><var>121.7</var>live together as part of a community, (2) make long-term commitments to live under a <br />
         		<a id="pl.121.8"></a><var>121.8</var>strict set of moral and spiritual rules, and (3) work or engage full time in a combination <br />
         		<a id="pl.121.9"></a><var>121.9</var>of prayer, religious study, church reform or renewal, or other religious, educational, or <br />
         		<a id="pl.121.10"></a><var>121.10</var>charitable goals of the organization.<br />
         		<a id="pl.121.11"></a><var>121.11</var>(c) For purposes of this subdivision, an institution of higher education is "affiliated" <br />
         		<a id="pl.121.12"></a><var>121.12</var>with an established religious order if members of the religious order are represented <br />
         		<a id="pl.121.13"></a><var>121.13</var>on the governing board of the institution of higher education and the two organization <br />
         		<a id="pl.121.14"></a><var>121.14</var>share campus space and common facilities.<br />
         		<a id="pl.121.15"></a><var>121.15</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br />
         		<a id="pl.121.16"></a><var>121.16</var>June 30, 2012.<br />
         		<br />
         		<a id="bill.9.8.0"></a><a id="pl.121.17"></a><var>121.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 8. Minnesota Statutes 2010, section 297A.70, is amended by adding a subdivision <br />
         		<a id="pl.121.18"></a><var>121.18</var>to read:<br />
         		<a id="pl.121.19"></a><var>121.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 18. <b>Nursing homes and boarding care homes.</b> (a) All sales, except those <br />
         		<a id="pl.121.20"></a><var>121.20</var>listed in paragraph (b), to a nursing home licensed under section 144A.02 or a boarding <br />
         		<a id="pl.121.21"></a><var>121.21</var>care home certified as a nursing facility under title 19 of the Social Security Act are <br />
         		<a id="pl.121.22"></a><var>121.22</var>exempt if the facility:<br />
         		<a id="pl.121.23"></a><var>121.23</var>(1) is exempt from federal income taxation pursuant to section 501(c)(3) of the <br />
         		<a id="pl.121.24"></a><var>121.24</var>Internal Revenue Code; and<br />
         		<a id="pl.121.25"></a><var>121.25</var>(2) is certified to participate in the medical assistance program under title 19 of the <br />
         		<a id="pl.121.26"></a><var>121.26</var>Social Security Act, or certifies to the commissioner that it does not discharge residents <br />
         		<a id="pl.121.27"></a><var>121.27</var>due to the inability to pay.<br />
         		<a id="pl.121.28"></a><var>121.28</var>(b) This exemption does not apply to the following sales:<br />
         		<a id="pl.121.29"></a><var>121.29</var>(1) building, construction, or reconstruction materials purchased by a contractor <br />
         		<a id="pl.121.30"></a><var>121.30</var>or a subcontractor as a part of a lump-sum contract or similar type of contract with a <br />
         		<a id="pl.121.31"></a><var>121.31</var>guaranteed maximum price covering both labor and materials for use in the construction, <br />
         		<a id="pl.121.32"></a><var>121.32</var>alteration, or repair of a building or facility;<br />
         		<a id="pl.121.33"></a><var>121.33</var>(2) construction materials purchased by tax-exempt entities or their contractors to <br />
         		<a id="pl.121.34"></a><var>121.34</var>be used in constructing buildings or facilities that will not be used principally by the <br />
         		<a id="pl.121.35"></a><var>121.35</var>tax-exempt entities;<br />
         		<a id="pl.122.1"></a><var>122.1</var>(3) lodging as defined under section 
         <statute_ref>297A.61, subdivision 3</statute_ref>, paragraph (g), clause <br />
         		<a id="pl.122.2"></a><var>122.2</var>(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section <br />
         		<a id="pl.122.3"></a><var>122.3</var><statute_ref>297A.67, subdivision 2</statute_ref>; and<br />
         		<a id="pl.122.4"></a><var>122.4</var>(4) leasing of a motor vehicle as defined in section 
         <statute_ref>297B.01, subdivision 11</statute_ref>, except <br />
         		<a id="pl.122.5"></a><var>122.5</var>as provided in paragraph (c).<br />
         		<a id="pl.122.6"></a><var>122.6</var>(c) This exemption applies to the leasing of a motor vehicle as defined in section <br />
         		<a id="pl.122.7"></a><var>122.7</var><statute_ref>297B.01, subdivision 11</statute_ref>, only if the vehicle is:<br />
         		<a id="pl.122.8"></a><var>122.8</var>(1) a truck, as defined in section 
         <statute_ref>168.002</statute_ref>; a bus, as defined in section 
         <statute_ref>168.002</statute_ref>; or a <br />
         		<a id="pl.122.9"></a><var>122.9</var>passenger automobile, as defined in section 
         <statute_ref>168.002</statute_ref>, if the automobile is designed and <br />
         		<a id="pl.122.10"></a><var>122.10</var>used for carrying more than nine persons including the driver; and<br />
         		<a id="pl.122.11"></a><var>122.11</var>(2) intended to be used primarily to transport tangible personal property or residents <br />
         		<a id="pl.122.12"></a><var>122.12</var>of the nursing home or boarding care home.<br />
         		<a id="pl.122.13"></a><var>122.13</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br />
         		<a id="pl.122.14"></a><var>122.14</var>June 30, 2012.<br />
         		<br />
         		<a id="bill.9.9.0"></a><a id="pl.122.15"></a><var>122.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 9. Minnesota Statutes 2010, section 297A.815, subdivision 3, is amended to read:<br />
         		<a id="pl.122.16"></a><var>122.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Motor vehicle lease sales tax revenue.</b> (a) For purposes of this <br />
         		<a id="pl.122.17"></a><var>122.17</var>subdivision, "net revenue" means an amount equal to:<br />
         		<a id="pl.122.18"></a><var>122.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) the revenues, including interest and penalties, collected under this section and <br />
         		<a id="pl.122.19"></a><var>122.19</var>on the leases under section 297A.61, subdivision 4, paragraph (k), clause (3), during <br />
         		<a id="pl.122.20"></a><var>122.20</var>the fiscal year; less<br />
         		<a id="pl.122.21"></a><var>122.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) in fiscal year 2011, $30,100,000; in fiscal year 2012, $31,100,000; and in fiscal <br />
         		<a id="pl.122.22"></a><var>122.22</var>year 2013 and following fiscal years, $32,000,000.<br />
         		<a id="pl.122.23"></a><var>122.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) On or before June 30 of each fiscal year, the commissioner of revenue shall <br />
         		<a id="pl.122.24"></a><var>122.24</var>estimate the amount of the revenues and subtraction under paragraph (a) for the current <br />
         		<a id="pl.122.25"></a><var>122.25</var>fiscal year.<br />
         		<a id="pl.122.26"></a><var>122.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) On or after July 1 of the subsequent fiscal year, the commissioner of management <br />
         		<a id="pl.122.27"></a><var>122.27</var>and budget shall transfer the net revenue as estimated in paragraph (b) from the general <br />
         		<a id="pl.122.28"></a><var>122.28</var>fund, as follows:<br />
         		<a id="pl.122.29"></a><var>122.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) 50 percent to the greater Minnesota transit account; and<br />
         		<a id="pl.122.30"></a><var>122.30</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) 50 percent to the county state-aid highway fund. Notwithstanding any other law <br />
         		<a id="pl.122.31"></a><var>122.31</var>to the contrary, the commissioner of transportation shall allocate the funds transferred <br />
         		<a id="pl.122.32"></a><var>122.32</var>under this clause to the counties in the metropolitan area, as defined in section 
         <statute_ref>473.121</statute_ref>, <br />
         		<a id="pl.122.33"></a><var>122.33</var>subdivision 4, excluding the counties of Hennepin and Ramsey, so that each county shall <br />
         		<a id="pl.122.34"></a><var>122.34</var>receive of such amount the percentage that its population, as defined in section 
         <statute_ref>477A.011</statute_ref>, <br />
         		<a id="pl.123.1"></a><var>123.1</var>subdivision 3, estimated or established by July 15 of the year prior to the current calendar <br />
         		<a id="pl.123.2"></a><var>123.2</var>year, bears to the total population of the counties receiving funds under this clause.<br />
         		<a id="pl.123.3"></a><var>123.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) For fiscal years 2010 and 2011, the amount under paragraph (a), clause (1), must <br />
         		<a id="pl.123.4"></a><var>123.4</var>be calculated using the following percentages of the total revenues:<br />
         		<a id="pl.123.5"></a><var>123.5</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) for fiscal year 2010, 83.75 percent; and<br />
         		<a id="pl.123.6"></a><var>123.6</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) for fiscal year 2011, 93.75 percent.<br />
         		<a id="pl.123.7"></a><var>123.7</var><b>EFFECTIVE DATE.</b>This section is effective for leases entered into after June <br />
         		<a id="pl.123.8"></a><var>123.8</var>30, 2012.<br />
         		<br />
         		<a id="bill.9.10.0"></a><a id="pl.123.9"></a><var>123.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 10. Minnesota Statutes 2010, section 297A.8155, is amended to read:<br />
         		<a id="pl.123.10"></a><var>123.10</var><b>297A.8155 LIQUOR REPORTING REQUIREMENTS; PENALTY.</b><br />
         		<a id="pl.123.11"></a><var>123.11</var>&nbsp;&nbsp;&nbsp;&nbsp;A person who sells liquor, as defined in section 
         <statute_ref>295.75, subdivision 1</statute_ref>, in Minnesota <br />
         		<a id="pl.123.12"></a><var>123.12</var>to a retailer that sells liquor, shall file with the commissioner an annual informational <br />
         		<a id="pl.123.13"></a><var>123.13</var>report, in the form and manner prescribed by the commissioner, indicating the name, <br />
         		<a id="pl.123.14"></a><var>123.14</var>address, and Minnesota business identification number of each retailer, and the total <br />
         		<a id="pl.123.15"></a><var>123.15</var>dollar amount of liquor sold to each retailer in the previous calendar year. The report <br />
         		<a id="pl.123.16"></a><var>123.16</var>must be filed on or before March 31 following the close of the calendar year. A person <br />
         		<a id="pl.123.17"></a><var>123.17</var>failing to file this report is subject to the penalty imposed under section 
         <statute_ref>289A.60</statute_ref>. A <br />
         		<a id="pl.123.18"></a><var>123.18</var>person required to file a report under this section is not required to provide a copy of an <br />
         		<a id="pl.123.19"></a><var>123.19</var>exemption certificate, as defined in section 297A.72, provided to the person by a retailer, <br />
         		<a id="pl.123.20"></a><var>123.20</var>along with the annual informational report.<br />
         		<a id="pl.123.21"></a><var>123.21</var><b>EFFECTIVE DATE.</b>This section is effective for reports required to be filed <br />
         		<a id="pl.123.22"></a><var>123.22</var>beginning in calendar year 2012 and thereafter.<br />
         		<br />
         		<a id="bill.9.11.0"></a><a id="pl.123.23"></a><var>123.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 11. Laws 1998, chapter 389, article 8, section 43, subdivision 3, as amended by <br />
         		<a id="pl.123.24"></a><var>123.24</var>Laws 2005, First Special Session chapter 3, article 5, section 28, and Laws 2011, First <br />
         		<a id="pl.123.25"></a><var>123.25</var>Special Session chapter 7, article 4, section 5, is amended to read:<br />
         		<a id="pl.123.26"></a><var>123.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Use of revenues.</b> (a) Revenues received from the taxes authorized by <br />
         		<a id="pl.123.27"></a><var>123.27</var>subdivisions 1 and 2 must be used by the city to pay for the cost of collecting and <br />
         		<a id="pl.123.28"></a><var>123.28</var>administering the taxes and to pay for the following projects:<br />
         		<a id="pl.123.29"></a><var>123.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) transportation infrastructure improvements including regional highway and <br />
         		<a id="pl.123.30"></a><var>123.30</var>airport improvements;<br />
         		<a id="pl.123.31"></a><var>123.31</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) improvements to the civic center complex;<br />
         		<a id="pl.123.32"></a><var>123.32</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) a municipal water, sewer, and storm sewer project necessary to improve regional <br />
         		<a id="pl.123.33"></a><var>123.33</var>ground water quality; and<br />
         		<a id="pl.124.1"></a><var>124.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) construction of a regional recreation and sports center and other higher education <br />
         		<a id="pl.124.2"></a><var>124.2</var>facilities available for both community and student use.<br />
         		<a id="pl.124.3"></a><var>124.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) The total amount of capital expenditures or bonds for projects listed in paragraph <br />
         		<a id="pl.124.4"></a><var>124.4</var>(a) that may be paid from the revenues raised from the taxes authorized in this section <br />
         		<a id="pl.124.5"></a><var>124.5</var>may not exceed $111,500,000. The total amount of capital expenditures or bonds for the <br />
         		<a id="pl.124.6"></a><var>124.6</var>project in clause (4) that may be paid from the revenues raised from the taxes authorized <br />
         		<a id="pl.124.7"></a><var>124.7</var>in this section may not exceed $28,000,000.<br />
         		<a id="pl.124.8"></a><var>124.8</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) In addition to the projects authorized in paragraph (a) and not subject to the <br />
         		<a id="pl.124.9"></a><var>124.9</var>amount stated in paragraph (b), the city of Rochester may, if approved by the voters at an <br />
         		<a id="pl.124.10"></a><var>124.10</var>election under subdivision 5, paragraph (c), use the revenues received from the taxes and <br />
         		<a id="pl.124.11"></a><var>124.11</var>bonds authorized in this section to pay the costs of or bonds for the following purposes:<br />
         		<a id="pl.124.12"></a><var>124.12</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) $17,000,000 for capital expenditures and bonds for the following Olmsted <br />
         		<a id="pl.124.13"></a><var>124.13</var>County transportation infrastructure improvements:<br />
         		<a id="pl.124.14"></a><var>124.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) County State Aid Highway 34 reconstruction;<br />
         		<a id="pl.124.15"></a><var>124.15</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) Trunk Highway 63 and County State Aid Highway 16 interchange; <br />
         		<a id="pl.124.16"></a><var>124.16</var>&nbsp;&nbsp;&nbsp;&nbsp;(iii) phase II of the Trunk Highway 52 and County State Aid Highway 22 <br />
         		<a id="pl.124.17"></a><var>124.17</var>interchange;<br />
         		<a id="pl.124.18"></a><var>124.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(iv) widening of County State Aid Highway 22 West Circle Drive; and <br />
         		<a id="pl.124.19"></a><var>124.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(v) 60th Avenue Northwest corridor preservation;<br />
         		<a id="pl.124.20"></a><var>124.20</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) $30,000,000 for city transportation projects including:<br />
         		<a id="pl.124.21"></a><var>124.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) Trunk Highway 52 and 65th Street interchange;<br />
         		<a id="pl.124.22"></a><var>124.22</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) NW transportation corridor acquisition; <br />
         		<a id="pl.124.23"></a><var>124.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(iii) Phase I of the Trunk Highway 52 and County State Aid Highway 22 interchange;<br />
         		<a id="pl.124.24"></a><var>124.24</var>&nbsp;&nbsp;&nbsp;&nbsp;(iv) Trunk Highway 14 and Trunk Highway 63 intersection;<br />
         		<a id="pl.124.25"></a><var>124.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(v) Southeast transportation corridor acquisition;<br />
         		<a id="pl.124.26"></a><var>124.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(vi) Rochester International Airport expansion; and <br />
         		<a id="pl.124.27"></a><var>124.27</var>&nbsp;&nbsp;&nbsp;&nbsp;(vii) a transit operations center bus facility;<br />
         		<a id="pl.124.28"></a><var>124.28</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) $14,000,000 for the University of Minnesota Rochester academic and <br />
         		<a id="pl.124.29"></a><var>124.29</var>complementary facilities;<br />
         		<a id="pl.124.30"></a><var>124.30</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) $6,500,000 for the Rochester Community and Technical College/Winona State <br />
         		<a id="pl.124.31"></a><var>124.31</var>University career technical education and science and math facilities;<br />
         		<a id="pl.124.32"></a><var>124.32</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) $6,000,000 for the Rochester Community and Technical College regional <br />
         		<a id="pl.124.33"></a><var>124.33</var>recreation facilities at University Center Rochester;<br />
         		<a id="pl.124.34"></a><var>124.34</var>&nbsp;&nbsp;&nbsp;&nbsp;(6) $20,000,000 for the Destination Medical Community Initiative;<br />
         		<a id="pl.124.35"></a><var>124.35</var>&nbsp;&nbsp;&nbsp;&nbsp;(7) $8,000,000 for the regional public safety and 911 dispatch center facilities;<br />
         		<a id="pl.124.36"></a><var>124.36</var>&nbsp;&nbsp;&nbsp;&nbsp;(8) $20,000,000 for a regional recreation/senior center;<br />
         		<a id="pl.125.1"></a><var>125.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(9) $10,000,000 for an economic development fund; and<br />
         		<a id="pl.125.2"></a><var>125.2</var>&nbsp;&nbsp;&nbsp;&nbsp;(10) $8,000,000 for downtown infrastructure.<br />
         		<a id="pl.125.3"></a><var>125.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) No revenues from the taxes raised from the taxes authorized in subdivisions 1 <br />
         		<a id="pl.125.4"></a><var>125.4</var>and 2 may be used to fund transportation improvements related to a railroad bypass that <br />
         		<a id="pl.125.5"></a><var>125.5</var>would divert traffic from the city of Rochester.<br />
         		<a id="pl.125.6"></a><var>125.6</var>&nbsp;&nbsp;&nbsp;&nbsp;(e) The city shall use $5,000,000 of the money allocated to the purpose in paragraph <br />
         		<a id="pl.125.7"></a><var>125.7</var>(c), clause (9), for grants to the cities of Byron, Chatfield, Dodge Center, Dover, Elgin, <br />
         		<a id="pl.125.8"></a><var>125.8</var>Eyota, Kasson, Mantorville, Oronoco, Pine Island, Plainview, St. Charles, Stewartville, <br />
         		<a id="pl.125.9"></a><var>125.9</var>Zumbrota, Spring Valley, West Concord, and Hayfield, and any other city with a 2010 <br />
         		<a id="pl.125.10"></a><var>125.10</var>population of at least 1,000 that has a city boundary within 25 miles of the geographic <br />
         		<a id="pl.125.11"></a><var>125.11</var>center of Rochester and is closer to Rochester than to any other city located wholly <br />
         		<a id="pl.125.12"></a><var>125.12</var>outside of the seven-county metropolitan area with a population of 20,000 or more, <br />
         		<a id="pl.125.13"></a><var>125.13</var>for economic development projects that these communities would fund through their <br />
         		<a id="pl.125.14"></a><var>125.14</var>economic development authority or housing and redevelopment authority.<br />
         		<a id="pl.125.15"></a><var>125.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.12.0"></a><a id="pl.125.16"></a><var>125.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 12. Laws 2002, chapter 377, article 3, section 25, as amended by Laws 2009, <br />
         		<a id="pl.125.17"></a><var>125.17</var>chapter 88, article 4, section 19, and Laws 2010, chapter 389, article 5, section 3, is <br />
         		<a id="pl.125.18"></a><var>125.18</var>amended to read:<br />
         		<a id="pl.125.19"></a><var>125.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 25. <b>ROCHESTER LODGING TAX.</b><br />
         		<a id="pl.125.20"></a><var>125.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Authorization.</b> Notwithstanding Minnesota Statutes, section <br />
         		
         <statute_ref><a id="pl.125.21"></a><var>125.21</var>469.190
         </statute_ref> or 
         <statute_ref>477A.016</statute_ref>, or any other law, the city of Rochester may impose an additional <br />
         		<a id="pl.125.22"></a><var>125.22</var>tax of one percent on the gross receipts from the furnishing for consideration of lodging at <br />
         		<a id="pl.125.23"></a><var>125.23</var>a hotel, motel, rooming house, tourist court, or resort, other than the renting or leasing of it <br />
         		<a id="pl.125.24"></a><var>125.24</var>for a continuous period of 30 days or more.<br />
         		<a id="pl.125.25"></a><var>125.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 1a. <b>Authorization.</b> Notwithstanding Minnesota Statutes, section 
         <statute_ref>469.190</statute_ref> <br />
         		<a id="pl.125.26"></a><var>125.26</var>or 
         <statute_ref>477A.016</statute_ref>, or any other law, and in addition to the tax authorized by subdivision 1, <br />
         		<a id="pl.125.27"></a><var>125.27</var>the city of Rochester may impose an additional tax of one three percent on the gross <br />
         		<a id="pl.125.28"></a><var>125.28</var>receipts from the furnishing for consideration of lodging at a hotel, motel, rooming house, <br />
         		<a id="pl.125.29"></a><var>125.29</var>tourist court, or resort, other than the renting or leasing of it for a continuous period of <br />
         		<a id="pl.125.30"></a><var>125.30</var>30 days or more only upon the approval of the city governing body of a total financial <br />
         		<a id="pl.125.31"></a><var>125.31</var>package for the project.<br />
         		<a id="pl.125.32"></a><var>125.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Disposition of proceeds.</b> (a) The gross proceeds from the tax imposed <br />
         		<a id="pl.125.33"></a><var>125.33</var>under subdivision 1 must be used by the city to fund a local convention or tourism bureau <br />
         		<a id="pl.125.34"></a><var>125.34</var>for the purpose of marketing and promoting the city as a tourist or convention center.<br />
         		<a id="pl.126.1"></a><var>126.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) The gross proceeds from the one three percent tax imposed under subdivision <br />
         		<a id="pl.126.2"></a><var>126.2</var>1a shall be used to pay for (1) construction, renovation, improvement, and expansion of <br />
         		<a id="pl.126.3"></a><var>126.3</var>the Mayo Civic Center and related skyway access, lighting, parking, or landscaping; and <br />
         		<a id="pl.126.4"></a><var>126.4</var>(2) for payment of any principal, interest, or premium on bonds issued to finance the <br />
         		<a id="pl.126.5"></a><var>126.5</var>construction, renovation, improvement, and expansion of the Mayo Civic Center Complex.<br />
         		<a id="pl.126.6"></a><var>126.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2a. <b>Bonds.</b> The city of Rochester may issue, without an election, general <br />
         		<a id="pl.126.7"></a><var>126.7</var>obligation bonds of the city, in one or more series, in the aggregate principal amount <br />
         		<a id="pl.126.8"></a><var>126.8</var>not to exceed $43,500,000, to pay for capital and administrative costs for the design, <br />
         		<a id="pl.126.9"></a><var>126.9</var>construction, renovation, improvement, and expansion of the Mayo Civic Center Complex, <br />
         		<a id="pl.126.10"></a><var>126.10</var>and related skyway, access, lighting, parking, and landscaping. The city may pledge <br />
         		<a id="pl.126.11"></a><var>126.11</var>the lodging tax authorized by subdivision 1a and the food and beverage tax authorized <br />
         		<a id="pl.126.12"></a><var>126.12</var>under Laws 2009, chapter 88, article 4, section 23, to the payment of the bonds. The debt <br />
         		<a id="pl.126.13"></a><var>126.13</var>represented by the bonds is not included in computing any debt limitations applicable to <br />
         		<a id="pl.126.14"></a><var>126.14</var>the city, and the levy of taxes required by Minnesota Statutes, section 
         <statute_ref>475.61</statute_ref>, to pay the <br />
         		<a id="pl.126.15"></a><var>126.15</var>principal of and interest on the bonds is not subject to any levy limitation or included in <br />
         		<a id="pl.126.16"></a><var>126.16</var>computing or applying any levy limitation applicable to the city.<br />
         		<a id="pl.126.17"></a><var>126.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Expiration of taxing authority.</b> The authority of the city to impose a <br />
         		<a id="pl.126.18"></a><var>126.18</var>tax under subdivision 1a shall expire when the principal and interest on any bonds or <br />
         		<a id="pl.126.19"></a><var>126.19</var>other obligations issued prior to December 31, 2014 2016, to finance the construction, <br />
         		<a id="pl.126.20"></a><var>126.20</var>renovation, improvement, and expansion of the Mayo Civic Center Complex and related <br />
         		<a id="pl.126.21"></a><var>126.21</var>skyway access, lighting, parking, or landscaping have been paid, including any bonds <br />
         		<a id="pl.126.22"></a><var>126.22</var>issued to refund such bonds, or at an earlier time as the city shall, by ordinance, determine. <br />
         		<a id="pl.126.23"></a><var>126.23</var>Any funds remaining after completion of the project and retirement or redemption of the <br />
         		<a id="pl.126.24"></a><var>126.24</var>bonds shall be placed in the general fund of the city.<br />
         		<a id="pl.126.25"></a><var>126.25</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br />
         		<a id="pl.126.26"></a><var>126.26</var>the city of Rochester and its chief clerical officer comply with Minnesota Statutes, section <br />
         		<a id="pl.126.27"></a><var>126.27</var>645.021, subdivisions 2 and 3.<br />
         		<br />
         		<a id="bill.9.13.0"></a><a id="pl.126.28"></a><var>126.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 13. Laws 2005, First Special Session chapter 3, article 5, section 37, subdivision <br />
         		<a id="pl.126.29"></a><var>126.29</var>2, is amended to read:<br />
         		<a id="pl.126.30"></a><var>126.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Use of revenues.</b> (a) Revenues received from the tax authorized by <br />
         		<a id="pl.126.31"></a><var>126.31</var>subdivision 1 by the city of St. Cloud must be used for the cost of collecting and <br />
         		<a id="pl.126.32"></a><var>126.32</var>administering the tax and to pay all or part of the capital or administrative costs of the <br />
         		<a id="pl.126.33"></a><var>126.33</var>development, acquisition, construction, improvement, and securing and paying debt <br />
         		<a id="pl.126.34"></a><var>126.34</var>service on bonds or other obligations issued to finance the following regional projects as <br />
         		<a id="pl.127.1"></a><var>127.1</var>approved by the voters and specifically detailed in the referendum authorizing the tax or <br />
         		<a id="pl.127.2"></a><var>127.2</var>extending the tax:<br />
         		<a id="pl.127.3"></a><var>127.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) St. Cloud Regional Airport;<br />
         		<a id="pl.127.4"></a><var>127.4</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) regional transportation improvements;<br />
         		<a id="pl.127.5"></a><var>127.5</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) regional community and aquatics centers and facilities;<br />
         		<a id="pl.127.6"></a><var>127.6</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) regional public libraries; and <br />
         		<a id="pl.127.7"></a><var>127.7</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) acquisition and improvement of regional park land and open space.<br />
         		<a id="pl.127.8"></a><var>127.8</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) Revenues received from the tax authorized by subdivision 1 by the cities of St. <br />
         		<a id="pl.127.9"></a><var>127.9</var>Joseph, Waite Park, Sartell, Sauk Rapids, and St. Augusta must be used for the cost of <br />
         		<a id="pl.127.10"></a><var>127.10</var>collecting and administering the tax and to pay all or part of the capital or administrative <br />
         		<a id="pl.127.11"></a><var>127.11</var>costs of the development, acquisition, construction, improvement, and securing and paying <br />
         		<a id="pl.127.12"></a><var>127.12</var>debt service on bonds or other obligations issued to fund the projects specifically approved <br />
         		<a id="pl.127.13"></a><var>127.13</var>by the voters at the referendum authorizing the tax or extending the tax. The portion of <br />
         		<a id="pl.127.14"></a><var>127.14</var>revenues from the city going to fund the regional airport or regional library located in the <br />
         		<a id="pl.127.15"></a><var>127.15</var>city of St. Cloud will be as required under the applicable joint powers agreement.<br />
         		<a id="pl.127.16"></a><var>127.16</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) The use of revenues received from the taxes authorized in subdivision 1 for <br />
         		<a id="pl.127.17"></a><var>127.17</var>projects allowed under paragraphs (a) and (b) are limited to the amount authorized for <br />
         		<a id="pl.127.18"></a><var>127.18</var>each project under the enabling referendum.<br />
         		<a id="pl.127.19"></a><var>127.19</var><b>EFFECTIVE DATE.</b>This section is effective for the city that approves them the <br />
         		<a id="pl.127.20"></a><var>127.20</var>day after compliance by the governing body of each city with Minnesota Statutes, section <br />
         		<a id="pl.127.21"></a><var>127.21</var>645.021, subdivision 3.<br />
         		<br />
         		<a id="bill.9.14.0"></a><a id="pl.127.22"></a><var>127.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 14. Laws 2005, First Special Session chapter 3, article 5, section 37, subdivision <br />
         		<a id="pl.127.23"></a><var>127.23</var>4, is amended to read:<br />
         		<a id="pl.127.24"></a><var>127.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Termination of tax.</b> The tax imposed in the cities of St. Joseph, St. Cloud, <br />
         		<a id="pl.127.25"></a><var>127.25</var>St. Augusta, Sartell, Sauk Rapids, and Waite Park under subdivision 1 expires when the <br />
         		<a id="pl.127.26"></a><var>127.26</var>city council determines that sufficient funds have been collected from the tax to retire or <br />
         		<a id="pl.127.27"></a><var>127.27</var>redeem the bonds and obligations authorized under subdivision 2, paragraph (a), but no <br />
         		<a id="pl.127.28"></a><var>127.28</var>later than December 31, 2018. Notwithstanding Minnesota Statutes, section 297A.99, <br />
         		<a id="pl.127.29"></a><var>127.29</var>subdivision 3, paragraphs (a), (c), and (d), a city may extend the tax imposed under <br />
         		<a id="pl.127.30"></a><var>127.30</var>subdivision 1 through December 31, 2038, if approved under the referendum authorizing <br />
         		<a id="pl.127.31"></a><var>127.31</var>the tax under subdivision 1 or if approved by voters of the city at a general election held <br />
         		<a id="pl.127.32"></a><var>127.32</var>no later than November 6, 2017.<br />
         		<a id="pl.128.1"></a><var>128.1</var><b>EFFECTIVE DATE.</b>This section is effective for the city that approves them the <br />
         		<a id="pl.128.2"></a><var>128.2</var>day after compliance by the governing body of each city with Minnesota Statutes, section <br />
         		<a id="pl.128.3"></a><var>128.3</var>645.021, subdivision 3.<br />
         		<br />
         		<a id="bill.9.15.0"></a><a id="pl.128.4"></a><var>128.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 15. Laws 2008, chapter 366, article 7, section 19, subdivision 3, as amended by <br />
         		<a id="pl.128.5"></a><var>128.5</var>Laws 2011, First Special Session chapter 7, article 4, section 8, is amended to read:<br />
         		<a id="pl.128.6"></a><var>128.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Use of revenues.</b> Notwithstanding Minnesota Statutes, section 
         <statute_ref>297A.99, <br />
            		<a id="pl.128.7"></a><var>128.7</var>subdivision 3
         </statute_ref>, paragraph (b), the proceeds of the tax imposed under this section shall be <br />
         		<a id="pl.128.8"></a><var>128.8</var>used to pay for the costs of improvements to the Sportsman Park/Ballfields, Riverside <br />
         		<a id="pl.128.9"></a><var>128.9</var>Park, Lions Park/Pavilion, Cedar South Park also known as Eldorado Park, and Spring <br />
         		<a id="pl.128.10"></a><var>128.10</var>Street Park; improvements to and extension of the River County bike trail; acquisition, <br />
         		<a id="pl.128.11"></a><var>128.11</var>and construction, improvement, and development of regional parks, bicycle trails, park <br />
         		<a id="pl.128.12"></a><var>128.12</var>land, open space, and of a pedestrian walkways, as described in the city improvement plan <br />
         		<a id="pl.128.13"></a><var>128.13</var>adopted by the city council by resolution on December 12, 2006, and walkway over <br />
         		<a id="pl.128.14"></a><var>128.14</var>Interstate 94 and State Highway 24; and the acquisition of land and construction of <br />
         		<a id="pl.128.15"></a><var>128.15</var>buildings for a community and recreation center. The total amount of revenues from the <br />
         		<a id="pl.128.16"></a><var>128.16</var>taxes in subdivisions 1 and 2 that may be used to fund these projects is $12,000,000 <br />
         		<a id="pl.128.17"></a><var>128.17</var>plus any associated bond costs.<br />
         		<a id="pl.128.18"></a><var>128.18</var><b>EFFECTIVE DATE.</b>This section is effective the day after compliance by the <br />
         		<a id="pl.128.19"></a><var>128.19</var>governing body of the city of Clearwater with Minnesota Statutes, section 645.021, <br />
         		<a id="pl.128.20"></a><var>128.20</var>subdivisions 2 and 3.<br />
         		<br />
         		<a id="bill.9.16.0"></a><a id="pl.128.21"></a><var>128.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 16. <b>LIQUOR REPORTING REQUIREMENTS.</b><br />
         		<a id="pl.128.22"></a><var>128.22</var>A person who was required to submit an annual informational report under <br />
         		<a id="pl.128.23"></a><var>128.23</var>Minnesota Statutes, section 297A.8155, to the commissioner of revenue during calendar <br />
         		<a id="pl.128.24"></a><var>128.24</var>year 2010 or 2011 is not required to provide a copy of an exemption certificate or a <br />
         		<a id="pl.128.25"></a><var>128.25</var>retailer's tax identification number along with the informational report.<br />
         		<a id="pl.128.26"></a><var>128.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br />
         		<a id="pl.128.27"></a><var>128.27</var>and applies to reports required to be filed in calendar year 2010 or 2011.<br />
         		<br />
         		<a id="bill.9.17.0"></a><a id="pl.128.28"></a><var>128.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 17. <b> REPEALER.</b><br />
         		<a id="pl.128.29"></a><var>128.29</var>(a) Minnesota Statutes 2011 Supplement, section 289A.60, subdivision 31, is <br />
         		<a id="pl.128.30"></a><var>128.30</var>repealed. <br />
         		<a id="pl.128.31"></a><var>128.31</var>(b) Laws 2009, chapter 88, article 4, section 23, as amended by Laws 2010, chapter <br />
         		<a id="pl.128.32"></a><var>128.32</var>389, article 5, section 4, is repealed.<br />
         		<a id="pl.129.1"></a><var>129.1</var><b>EFFECTIVE DATE.</b>Paragraph (a) is effective for taxes due and payable after June <br />
         		<a id="pl.129.2"></a><var>129.2</var>30, 2012. Paragraph (b) is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.10.0.0"></a><div class="xtend_ce"><a id="pl.129.3"></a><var>129.3</var><b>ARTICLE 10</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.129.4"></a><var>129.4</var><b>LOCAL DEVELOPMENT</b><br />
            		
         </div><br />
         		<a id="bill.10.1.0"></a><a id="pl.129.5"></a><var>129.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. Minnesota Statutes 2010, section 469.174, subdivision 2, is amended to read:<br />
         		<a id="pl.129.6"></a><var>129.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Authority.</b> "Authority" means a rural development financing authority <br />
         		<a id="pl.129.7"></a><var>129.7</var>created pursuant to sections 
         <statute_ref>469.142</statute_ref> to 
         <statute_ref>469.151</statute_ref>; a housing and redevelopment authority <br />
         		<a id="pl.129.8"></a><var>129.8</var>created pursuant to sections 
         <statute_ref>469.001</statute_ref> to 
         <statute_ref>469.047</statute_ref>; a port authority created pursuant to <br />
         		<a id="pl.129.9"></a><var>129.9</var>sections 
         <statute_ref>469.048</statute_ref> to 
         <statute_ref>469.068</statute_ref>; an economic development authority created pursuant to <br />
         		<a id="pl.129.10"></a><var>129.10</var>sections 
         <statute_ref>469.090</statute_ref> to 
         <statute_ref>469.108</statute_ref>; a redevelopment agency as defined in sections 
         <statute_ref>469.152</statute_ref> to <br />
         		
         <statute_ref><a id="pl.129.11"></a><var>129.11</var>469.165
         </statute_ref>; a municipality that is administering a development district created pursuant to <br />
         		<a id="pl.129.12"></a><var>129.12</var>sections 
         <statute_ref>469.124</statute_ref> to 
         <statute_ref>469.134</statute_ref> or any special law; a municipality that undertakes a project <br />
         		<a id="pl.129.13"></a><var>129.13</var>pursuant to sections 
         <statute_ref>469.152</statute_ref> to 
         <statute_ref>469.165</statute_ref>, except a town located outside the metropolitan <br />
         		<a id="pl.129.14"></a><var>129.14</var>area or with a population of 5,000 persons or less; a municipality that undertakes a project <br />
         		<a id="pl.129.15"></a><var>129.15</var>located in an area designated under subdivision 30; or a municipality that exercises the <br />
         		<a id="pl.129.16"></a><var>129.16</var>powers of a port authority pursuant to any general or special law.<br />
         		<a id="pl.129.17"></a><var>129.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.10.2.0"></a><a id="pl.129.18"></a><var>129.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. Minnesota Statutes 2010, section 469.174, subdivision 10, is amended to read:<br />
         		<a id="pl.129.19"></a><var>129.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 10. <b>Redevelopment district.</b> (a) "Redevelopment district" means a type of <br />
         		<a id="pl.129.20"></a><var>129.20</var>tax increment financing district consisting of a project, or portions of a project, within <br />
         		<a id="pl.129.21"></a><var>129.21</var>which the authority finds by resolution that one or more of the following conditions, <br />
         		<a id="pl.129.22"></a><var>129.22</var>reasonably distributed throughout the district, exists:<br />
         		<a id="pl.129.23"></a><var>129.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) parcels consisting of 70 percent of the area of the district are occupied by <br />
         		<a id="pl.129.24"></a><var>129.24</var>buildings, streets, utilities, paved or gravel parking lots, or other similar structures and <br />
         		<a id="pl.129.25"></a><var>129.25</var>more than 50 percent or more of the buildings, not including outbuildings, are structurally <br />
         		<a id="pl.129.26"></a><var>129.26</var>substandard to a degree requiring substantial renovation or clearance;<br />
         		<a id="pl.129.27"></a><var>129.27</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) the property consists of vacant, unused, underused, inappropriately used, or <br />
         		<a id="pl.129.28"></a><var>129.28</var>infrequently used rail yards, rail storage facilities, or excessive or vacated railroad <br />
         		<a id="pl.129.29"></a><var>129.29</var>rights-of-way;<br />
         		<a id="pl.129.30"></a><var>129.30</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) tank facilities, or property whose immediately previous use was for tank <br />
         		<a id="pl.129.31"></a><var>129.31</var>facilities, as defined in section 
         <statute_ref>115C.02, subdivision 15</statute_ref>, if the tank facilities:<br />
         		<a id="pl.129.32"></a><var>129.32</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) have or had a capacity of more than 1,000,000 gallons;<br />
         		<a id="pl.129.33"></a><var>129.33</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) are located adjacent to rail facilities; and<br />
         		<a id="pl.130.1"></a><var>130.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(iii) have been removed or are unused, underused, inappropriately used, or <br />
         		<a id="pl.130.2"></a><var>130.2</var>infrequently used; or<br />
         		<a id="pl.130.3"></a><var>130.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) a qualifying disaster area, as defined in subdivision 10b.<br />
         		<a id="pl.130.4"></a><var>130.4</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) For purposes of this subdivision, "structurally substandard" shall mean <br />
         		<a id="pl.130.5"></a><var>130.5</var>containing defects in structural elements or a combination of deficiencies in essential <br />
         		<a id="pl.130.6"></a><var>130.6</var>utilities and facilities, light and ventilation, fire protection including adequate egress, <br />
         		<a id="pl.130.7"></a><var>130.7</var>layout and condition of interior partitions, or similar factors, which defects or deficiencies <br />
         		<a id="pl.130.8"></a><var>130.8</var>are of sufficient total significance to justify substantial renovation or clearance.<br />
         		<a id="pl.130.9"></a><var>130.9</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) A building is not structurally substandard if it is in compliance with the building <br />
         		<a id="pl.130.10"></a><var>130.10</var>code applicable to new buildings or could be modified to satisfy the building code at <br />
         		<a id="pl.130.11"></a><var>130.11</var>a cost of less than 15 percent of the cost of constructing a new structure of the same <br />
         		<a id="pl.130.12"></a><var>130.12</var>square footage and type on the site. The municipality may find that a building is not <br />
         		<a id="pl.130.13"></a><var>130.13</var>disqualified as structurally substandard under the preceding sentence on the basis of <br />
         		<a id="pl.130.14"></a><var>130.14</var>reasonably available evidence, such as the size, type, and age of the building, the average <br />
         		<a id="pl.130.15"></a><var>130.15</var>cost of plumbing, electrical, or structural repairs, or other similar reliable evidence. The <br />
         		<a id="pl.130.16"></a><var>130.16</var>municipality may not make such a determination without an interior inspection of the <br />
         		<a id="pl.130.17"></a><var>130.17</var>property, but need not have an independent, expert appraisal prepared of the cost of repair <br />
         		<a id="pl.130.18"></a><var>130.18</var>and rehabilitation of the building. An interior inspection of the property is not required, <br />
         		<a id="pl.130.19"></a><var>130.19</var>if the municipality finds that (1) the municipality or authority is unable to gain access to <br />
         		<a id="pl.130.20"></a><var>130.20</var>the property after using its best efforts to obtain permission from the party that owns or <br />
         		<a id="pl.130.21"></a><var>130.21</var>controls the property; and (2) the evidence otherwise supports a reasonable conclusion that <br />
         		<a id="pl.130.22"></a><var>130.22</var>the building is structurally substandard. Items of evidence that support such a conclusion <br />
         		<a id="pl.130.23"></a><var>130.23</var>include recent fire or police inspections, on-site property tax appraisals or housing <br />
         		<a id="pl.130.24"></a><var>130.24</var>inspections, exterior evidence of deterioration, or other similar reliable evidence. Written <br />
         		<a id="pl.130.25"></a><var>130.25</var>documentation of the findings and reasons why an interior inspection was not conducted <br />
         		<a id="pl.130.26"></a><var>130.26</var>must be made and retained under section 
         <statute_ref>469.175, subdivision 3</statute_ref>, clause (1). Failure of a <br />
         		<a id="pl.130.27"></a><var>130.27</var>building to be disqualified under the provisions of this paragraph is a necessary, but not a <br />
         		<a id="pl.130.28"></a><var>130.28</var>sufficient, condition to determining that the building is substandard.<br />
         		<a id="pl.130.29"></a><var>130.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) A parcel is deemed to be occupied by a structurally substandard building <br />
         		<a id="pl.130.30"></a><var>130.30</var>for purposes of the finding under paragraph (a) or by the improvements described in <br />
         		<a id="pl.130.31"></a><var>130.31</var>paragraph (e) if all of the following conditions are met:<br />
         		<a id="pl.130.32"></a><var>130.32</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) the parcel was occupied by a substandard building or met the requirements <br />
         		<a id="pl.130.33"></a><var>130.33</var>of paragraph (e), as the case may be, within three years of the filing of the request for <br />
         		<a id="pl.130.34"></a><var>130.34</var>certification of the parcel as part of the district with the county auditor;<br />
         		<a id="pl.131.1"></a><var>131.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) the substandard building or the improvements described in paragraph (e) were <br />
         		<a id="pl.131.2"></a><var>131.2</var>demolished or removed by the authority or the demolition or removal was financed by the <br />
         		<a id="pl.131.3"></a><var>131.3</var>authority or was done by a developer under a development agreement with the authority;<br />
         		<a id="pl.131.4"></a><var>131.4</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) the authority found by resolution before the demolition or removal that the <br />
         		<a id="pl.131.5"></a><var>131.5</var>parcel was occupied by a structurally substandard building or met the requirements of <br />
         		<a id="pl.131.6"></a><var>131.6</var>paragraph (e) and that after demolition and clearance the authority intended to include <br />
         		<a id="pl.131.7"></a><var>131.7</var>the parcel within a district; and<br />
         		<a id="pl.131.8"></a><var>131.8</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) upon filing the request for certification of the tax capacity of the parcel as part <br />
         		<a id="pl.131.9"></a><var>131.9</var>of a district, the authority notifies the county auditor that the original tax capacity of the <br />
         		<a id="pl.131.10"></a><var>131.10</var>parcel must be adjusted as provided by section 
         <statute_ref>469.177, subdivision 1</statute_ref>, paragraph (f).<br />
         		<a id="pl.131.11"></a><var>131.11</var>&nbsp;&nbsp;&nbsp;&nbsp;(e) For purposes of this subdivision, a parcel is not occupied by buildings, streets, <br />
         		<a id="pl.131.12"></a><var>131.12</var>utilities, paved or gravel parking lots, or other similar structures unless 15 percent of the <br />
         		<a id="pl.131.13"></a><var>131.13</var>area of the parcel contains buildings, streets, utilities, paved or gravel parking lots, or <br />
         		<a id="pl.131.14"></a><var>131.14</var>other similar structures.<br />
         		<a id="pl.131.15"></a><var>131.15</var>&nbsp;&nbsp;&nbsp;&nbsp;(f) For districts consisting of two or more noncontiguous areas, each area must <br />
         		<a id="pl.131.16"></a><var>131.16</var>qualify as a redevelopment district under paragraph (a) to be included in the district, and <br />
         		<a id="pl.131.17"></a><var>131.17</var>the entire area of the district must satisfy paragraph (a).<br />
         		<a id="pl.131.18"></a><var>131.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.10.3.0"></a><a id="pl.131.19"></a><var>131.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. Minnesota Statutes 2010, section 469.174, is amended by adding a subdivision <br />
         		<a id="pl.131.20"></a><var>131.20</var>to read:<br />
         		<a id="pl.131.21"></a><var>131.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 19a. <b>Soil deficiency district.</b> "Soil deficiency district" means a type of tax <br />
         		<a id="pl.131.22"></a><var>131.22</var>increment financing district consisting of a project, or portions of a project, within which <br />
         		<a id="pl.131.23"></a><var>131.23</var>the authority finds by resolution that the following conditions exist:<br />
         		<a id="pl.131.24"></a><var>131.24</var>(1) parcels consisting of 70 percent of the area of the district contain unusual terrain <br />
         		<a id="pl.131.25"></a><var>131.25</var>or soil deficiencies which require substantial filling, grading, or other physical preparation <br />
         		<a id="pl.131.26"></a><var>131.26</var>for use and a parcel is eligible for inclusion if at least 50 percent of the area of the parcel <br />
         		<a id="pl.131.27"></a><var>131.27</var>requires substantial filling, grading, or other physical preparation for use; and<br />
         		<a id="pl.131.28"></a><var>131.28</var>(2) the estimated cost of the physical preparation under clause (1), but excluding <br />
         		<a id="pl.131.29"></a><var>131.29</var>costs directly related to roads as defined in section 160.01, and local improvements as <br />
         		<a id="pl.131.30"></a><var>131.30</var>described in sections 429.021, subdivision 1, clauses (1) to (7), (11), and (12), and 430.01, <br />
         		<a id="pl.131.31"></a><var>131.31</var>exceeds the fair market value of the land before completion of the preparation.<br />
         		<a id="pl.131.32"></a><var>131.32</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br />
         		<a id="pl.131.33"></a><var>131.33</var>certification is made after April 30, 2012.<br />
         		<br />
         		<a id="bill.10.4.0"></a><a id="pl.132.1"></a><var>132.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 4. Minnesota Statutes 2010, section 469.174, is amended by adding a subdivision <br />
         		<a id="pl.132.2"></a><var>132.2</var>to read:<br />
         		<a id="pl.132.3"></a><var>132.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 30. <b>Mining reclamation project area.</b> (a) An authority may designate an <br />
         		<a id="pl.132.4"></a><var>132.4</var>area within its jurisdiction as a mining reclamation project area by finding by resolution, <br />
         		<a id="pl.132.5"></a><var>132.5</var>that parcels consisting of at least 70 percent of the acreage, excluding street and railroad <br />
         		<a id="pl.132.6"></a><var>132.6</var>rights-of-way, are characterized by one or more of the following conditions:<br />
         		<a id="pl.132.7"></a><var>132.7</var>(1) peat or other soils with geotechnical deficiencies that impair development of <br />
         		<a id="pl.132.8"></a><var>132.8</var>buildings or infrastructure;<br />
         		<a id="pl.132.9"></a><var>132.9</var>(2) soils or terrain that requires substantial filling in order to permit the development <br />
         		<a id="pl.132.10"></a><var>132.10</var>of buildings or infrastructure;<br />
         		<a id="pl.132.11"></a><var>132.11</var>(3) landfills, dumps, or similar deposits of municipal or private waste;<br />
         		<a id="pl.132.12"></a><var>132.12</var>(4) quarries or similar resource extraction sites;<br />
         		<a id="pl.132.13"></a><var>132.13</var>(5) floodway; and<br />
         		<a id="pl.132.14"></a><var>132.14</var>(6) substandard buildings, within the meaning of section 469.174, subdivision 10.<br />
         		<a id="pl.132.15"></a><var>132.15</var>(b) For the purposes of paragraph (a), clauses (1) to (5), a parcel is characterized by <br />
         		<a id="pl.132.16"></a><var>132.16</var>the relevant condition if at least 50 percent of the area of the parcel contains the relevant <br />
         		<a id="pl.132.17"></a><var>132.17</var>condition. For the purposes of paragraph (a), clause (6), a parcel is characterized by <br />
         		<a id="pl.132.18"></a><var>132.18</var>substandard buildings if substandard buildings occupy at least 30 percent of the area <br />
         		<a id="pl.132.19"></a><var>132.19</var>of the parcel.<br />
         		<a id="pl.132.20"></a><var>132.20</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br />
         		<a id="pl.132.21"></a><var>132.21</var>certification is made after April 30, 2012.<br />
         		<br />
         		<a id="bill.10.5.0"></a><a id="pl.132.22"></a><var>132.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 5. Minnesota Statutes 2010, section 469.175, subdivision 3, is amended to read:<br />
         		<a id="pl.132.23"></a><var>132.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Municipality approval.</b> (a) A county auditor shall not certify the original <br />
         		<a id="pl.132.24"></a><var>132.24</var>net tax capacity of a tax increment financing district until the tax increment financing plan <br />
         		<a id="pl.132.25"></a><var>132.25</var>proposed for that district has been approved by the municipality in which the district <br />
         		<a id="pl.132.26"></a><var>132.26</var>is located. If an authority that proposes to establish a tax increment financing district <br />
         		<a id="pl.132.27"></a><var>132.27</var>and the municipality are not the same, the authority shall apply to the municipality in <br />
         		<a id="pl.132.28"></a><var>132.28</var>which the district is proposed to be located and shall obtain the approval of its tax <br />
         		<a id="pl.132.29"></a><var>132.29</var>increment financing plan by the municipality before the authority may use tax increment <br />
         		<a id="pl.132.30"></a><var>132.30</var>financing. The municipality shall approve the tax increment financing plan only after a <br />
         		<a id="pl.132.31"></a><var>132.31</var>public hearing thereon after published notice in a newspaper of general circulation in the <br />
         		<a id="pl.132.32"></a><var>132.32</var>municipality at least once not less than ten days nor more than 30 days prior to the date <br />
         		<a id="pl.132.33"></a><var>132.33</var>of the hearing. The published notice must include a map of the area of the district from <br />
         		<a id="pl.132.34"></a><var>132.34</var>which increments may be collected and, if the project area includes additional area, a map <br />
         		<a id="pl.132.35"></a><var>132.35</var>of the project area in which the increments may be expended. The hearing may be held <br />
         		<a id="pl.133.1"></a><var>133.1</var>before or after the approval or creation of the project or it may be held in conjunction with <br />
         		<a id="pl.133.2"></a><var>133.2</var>a hearing to approve the project.<br />
         		<a id="pl.133.3"></a><var>133.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) Before or at the time of approval of the tax increment financing plan, the <br />
         		<a id="pl.133.4"></a><var>133.4</var>municipality shall make the following findings, and shall set forth in writing the reasons <br />
         		<a id="pl.133.5"></a><var>133.5</var>and supporting facts for each determination:<br />
         		<a id="pl.133.6"></a><var>133.6</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) that the proposed tax increment financing district is a redevelopment district, a <br />
         		<a id="pl.133.7"></a><var>133.7</var>renewal or renovation district, a housing district, a soils condition district, soil deficiency <br />
         		<a id="pl.133.8"></a><var>133.8</var>district, or an economic development district; if the proposed district is a redevelopment <br />
         		<a id="pl.133.9"></a><var>133.9</var>district or a renewal or renovation district, the reasons and supporting facts for the <br />
         		<a id="pl.133.10"></a><var>133.10</var>determination that the district meets the criteria of section 
         <statute_ref>469.174, subdivision 10</statute_ref>, <br />
         		<a id="pl.133.11"></a><var>133.11</var>paragraph (a), clauses (1) and (2), or subdivision 10a, must be documented in writing <br />
         		<a id="pl.133.12"></a><var>133.12</var>and retained and made available to the public by the authority until the district has been <br />
         		<a id="pl.133.13"></a><var>133.13</var>terminated;<br />
         		<a id="pl.133.14"></a><var>133.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) that, in the opinion of the municipality:<br />
         		<a id="pl.133.15"></a><var>133.15</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) the proposed development or redevelopment would not reasonably be expected to <br />
         		<a id="pl.133.16"></a><var>133.16</var>occur solely through private investment within the reasonably foreseeable future; and<br />
         		<a id="pl.133.17"></a><var>133.17</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) the increased market value of the site that could reasonably be expected to occur <br />
         		<a id="pl.133.18"></a><var>133.18</var>without the use of tax increment financing would be less than the increase in the market <br />
         		<a id="pl.133.19"></a><var>133.19</var>value estimated to result from the proposed development after subtracting the present <br />
         		<a id="pl.133.20"></a><var>133.20</var>value of the projected tax increments for the maximum duration of the district permitted <br />
         		<a id="pl.133.21"></a><var>133.21</var>by the plan. The requirements of this item do not apply if the district is a housing district;<br />
         		<a id="pl.133.22"></a><var>133.22</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) that the tax increment financing plan conforms to the general plan for the <br />
         		<a id="pl.133.23"></a><var>133.23</var>development or redevelopment of the municipality as a whole;<br />
         		<a id="pl.133.24"></a><var>133.24</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) that the tax increment financing plan will afford maximum opportunity, <br />
         		<a id="pl.133.25"></a><var>133.25</var>consistent with the sound needs of the municipality as a whole, for the development or <br />
         		<a id="pl.133.26"></a><var>133.26</var>redevelopment of the project by private enterprise;<br />
         		<a id="pl.133.27"></a><var>133.27</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) that the municipality elects the method of tax increment computation set forth in <br />
         		<a id="pl.133.28"></a><var>133.28</var>section 
         <statute_ref>469.177, subdivision 3, paragraph (b)</statute_ref>, if applicable; and<br />
         		<a id="pl.133.29"></a><var>133.29</var>(6) that for a redevelopment district, renewal and renovation district, soils condition <br />
         		<a id="pl.133.30"></a><var>133.30</var>district, or soil deficiency district established by the authority in a mining reclamation <br />
         		<a id="pl.133.31"></a><var>133.31</var>project area, the reasons and supporting facts for the determination that the mining <br />
         		<a id="pl.133.32"></a><var>133.32</var>reclamation project area meets the requirements under section 469.174, subdivision 30, <br />
         		<a id="pl.133.33"></a><var>133.33</var>must be documented in writing and retained and made available to the public by the <br />
         		<a id="pl.133.34"></a><var>133.34</var>authority until two years after the district is decertified. These findings must have been <br />
         		<a id="pl.133.35"></a><var>133.35</var>made and documented no more than ten years before approval of the tax increment <br />
         		<a id="pl.133.36"></a><var>133.36</var>financing plan for the district.<br />
         		<a id="pl.134.1"></a><var>134.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) When the municipality and the authority are not the same, the municipality shall <br />
         		<a id="pl.134.2"></a><var>134.2</var>approve or disapprove the tax increment financing plan within 60 days of submission by <br />
         		<a id="pl.134.3"></a><var>134.3</var>the authority. When the municipality and the authority are not the same, the municipality <br />
         		<a id="pl.134.4"></a><var>134.4</var>may not amend or modify a tax increment financing plan except as proposed by the <br />
         		<a id="pl.134.5"></a><var>134.5</var>authority pursuant to subdivision 4. Once approved, the determination of the authority <br />
         		<a id="pl.134.6"></a><var>134.6</var>to undertake the project through the use of tax increment financing and the resolution of <br />
         		<a id="pl.134.7"></a><var>134.7</var>the governing body shall be conclusive of the findings therein and of the public need for <br />
         		<a id="pl.134.8"></a><var>134.8</var>the financing.<br />
         		<a id="pl.134.9"></a><var>134.9</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) For a district that is subject to the requirements of paragraph (b), clause (2), <br />
         		<a id="pl.134.10"></a><var>134.10</var>item (ii), the municipality's statement of reasons and supporting facts must include all of <br />
         		<a id="pl.134.11"></a><var>134.11</var>the following:<br />
         		<a id="pl.134.12"></a><var>134.12</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) an estimate of the amount by which the market value of the site will increase <br />
         		<a id="pl.134.13"></a><var>134.13</var>without the use of tax increment financing;<br />
         		<a id="pl.134.14"></a><var>134.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) an estimate of the increase in the market value that will result from the <br />
         		<a id="pl.134.15"></a><var>134.15</var>development or redevelopment to be assisted with tax increment financing; and<br />
         		<a id="pl.134.16"></a><var>134.16</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) the present value of the projected tax increments for the maximum duration of <br />
         		<a id="pl.134.17"></a><var>134.17</var>the district permitted by the tax increment financing plan.<br />
         		<a id="pl.134.18"></a><var>134.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(e) For purposes of this subdivision, "site" means the parcels on which the <br />
         		<a id="pl.134.19"></a><var>134.19</var>development or redevelopment to be assisted with tax increment financing will be located.<br />
         		<a id="pl.134.20"></a><var>134.20</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br />
         		<a id="pl.134.21"></a><var>134.21</var>certification is made after April 30, 2012.<br />
         		<br />
         		<a id="bill.10.6.0"></a><a id="pl.134.22"></a><var>134.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 6. Minnesota Statutes 2010, section 469.176, subdivision 1b, is amended to read:<br />
         		<a id="pl.134.23"></a><var>134.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 1b. <b>Duration limits; terms.</b> (a) No tax increment shall in any event be <br />
         		<a id="pl.134.24"></a><var>134.24</var>paid to the authority:<br />
         		<a id="pl.134.25"></a><var>134.25</var>(1) after 15 years after receipt by the authority of the first increment for a renewal <br />
         		<a id="pl.134.26"></a><var>134.26</var>and renovation district;<br />
         		<a id="pl.134.27"></a><var>134.27</var>(2) after 20 years after receipt by the authority of the first increment for a soils <br />
         		<a id="pl.134.28"></a><var>134.28</var>condition district or a soil deficiency district;<br />
         		<a id="pl.134.29"></a><var>134.29</var>(3) after eight years after receipt by the authority of the first increment for an <br />
         		<a id="pl.134.30"></a><var>134.30</var>economic development district;<br />
         		<a id="pl.134.31"></a><var>134.31</var>(4) for a housing district, a compact development district, or a redevelopment <br />
         		<a id="pl.134.32"></a><var>134.32</var>district, after 25 years from the date of receipt by the authority of the first increment.<br />
         		<a id="pl.134.33"></a><var>134.33</var>(b) For purposes of determining a duration limit under this subdivision or subdivision <br />
         		<a id="pl.134.34"></a><var>134.34</var>1e that is based on the receipt of an increment, any increments from taxes payable in <br />
         		<a id="pl.134.35"></a><var>134.35</var>the year in which the district terminates shall be paid to the authority. This paragraph <br />
         		<a id="pl.135.1"></a><var>135.1</var>does not affect a duration limit calculated from the date of approval of the tax increment <br />
         		<a id="pl.135.2"></a><var>135.2</var>financing plan or based on the recovery of costs or to a duration limit under subdivision <br />
         		<a id="pl.135.3"></a><var>135.3</var>1c. This paragraph does not supersede the restrictions on payment of delinquent taxes in <br />
         		<a id="pl.135.4"></a><var>135.4</var>subdivision 1f.<br />
         		<a id="pl.135.5"></a><var>135.5</var>(c) An action by the authority to waive or decline to accept an increment has no <br />
         		<a id="pl.135.6"></a><var>135.6</var>effect for purposes of computing a duration limit based on the receipt of increment under <br />
         		<a id="pl.135.7"></a><var>135.7</var>this subdivision or any other provision of law. The authority is deemed to have received an <br />
         		<a id="pl.135.8"></a><var>135.8</var>increment for any year in which it waived or declined to accept an increment, regardless <br />
         		<a id="pl.135.9"></a><var>135.9</var>of whether the increment was paid to the authority.<br />
         		<a id="pl.135.10"></a><var>135.10</var>(d) Receipt by a hazardous substance subdistrict of an increment as a result of a <br />
         		<a id="pl.135.11"></a><var>135.11</var>reduction in original net tax capacity under section 
         <statute_ref>469.174, subdivision 7</statute_ref>, paragraph <br />
         		<a id="pl.135.12"></a><var>135.12</var>(b), does not constitute receipt of increment by the overlying district for the purpose of <br />
         		<a id="pl.135.13"></a><var>135.13</var>calculating the duration limit under this section.<br />
         		<a id="pl.135.14"></a><var>135.14</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br />
         		<a id="pl.135.15"></a><var>135.15</var>certification is made after April 30, 2012.<br />
         		<br />
         		<a id="bill.10.7.0"></a><a id="pl.135.16"></a><var>135.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 7. Minnesota Statutes 2010, section 469.176, subdivision 4b, is amended to read:<br />
         		<a id="pl.135.17"></a><var>135.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4b. <b>Soils condition districts.</b> Revenue derived from Tax increment from a <br />
         		<a id="pl.135.18"></a><var>135.18</var>soils condition district may be used only to (1) acquire parcels on which the improvements <br />
         		<a id="pl.135.19"></a><var>135.19</var>described in clause (2) will occur; (2) pay for the cost of removal or remedial action; and <br />
         		<a id="pl.135.20"></a><var>135.20</var>(3) pay for the administrative expenses of the authority allocable to the district, including <br />
         		<a id="pl.135.21"></a><var>135.21</var>the cost of preparation of the development action response plan. For a soils condition <br />
         		<a id="pl.135.22"></a><var>135.22</var>district located in a mining reclamation project area, tax increments may also be expended <br />
         		<a id="pl.135.23"></a><var>135.23</var>on the additional cost of public improvements directly caused by the removal or remedial <br />
         		<a id="pl.135.24"></a><var>135.24</var>action and located within the mining reclamation project area.<br />
         		<a id="pl.135.25"></a><var>135.25</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br />
         		<a id="pl.135.26"></a><var>135.26</var>certification is made after April 30, 2012.<br />
         		<br />
         		<a id="bill.10.8.0"></a><a id="pl.135.27"></a><var>135.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 8. Minnesota Statutes 2011 Supplement, section 469.176, subdivision 4c, is <br />
         		<a id="pl.135.28"></a><var>135.28</var>amended to read:<br />
         		<a id="pl.135.29"></a><var>135.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4c. <b>Economic development districts.</b> (a) Revenue derived from tax <br />
         		<a id="pl.135.30"></a><var>135.30</var>increment from an economic development district may not be used to provide <br />
         		<a id="pl.135.31"></a><var>135.31</var>improvements, loans, subsidies, grants, interest rate subsidies, or assistance in any form <br />
         		<a id="pl.135.32"></a><var>135.32</var>to developments consisting of buildings and ancillary facilities, if more than 15 percent <br />
         		<a id="pl.136.1"></a><var>136.1</var>of the buildings and facilities (determined on the basis of square footage) are used for a <br />
         		<a id="pl.136.2"></a><var>136.2</var>purpose other than:<br />
         		<a id="pl.136.3"></a><var>136.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) the manufacturing or production of tangible personal property, including <br />
         		<a id="pl.136.4"></a><var>136.4</var>processing resulting in the change in condition of the property;<br />
         		<a id="pl.136.5"></a><var>136.5</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) warehousing, storage, and distribution of tangible personal property, excluding <br />
         		<a id="pl.136.6"></a><var>136.6</var>retail sales;<br />
         		<a id="pl.136.7"></a><var>136.7</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) research and development related to the activities listed in clause (1) or (2);<br />
         		<a id="pl.136.8"></a><var>136.8</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) telemarketing if that activity is the exclusive use of the property;<br />
         		<a id="pl.136.9"></a><var>136.9</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) tourism facilities;<br />
         		<a id="pl.136.10"></a><var>136.10</var>&nbsp;&nbsp;&nbsp;&nbsp;(6) qualified border retail facilities; or<br />
         		<a id="pl.136.11"></a><var>136.11</var>&nbsp;&nbsp;&nbsp;&nbsp;(7) space necessary for and related to the activities listed in clauses (1) to (6).<br />
         		<a id="pl.136.12"></a><var>136.12</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the provisions of this subdivision, revenues derived from tax <br />
         		<a id="pl.136.13"></a><var>136.13</var>increment from an economic development district may be used to provide improvements, <br />
         		<a id="pl.136.14"></a><var>136.14</var>loans, subsidies, grants, interest rate subsidies, or assistance in any form for up to 15,000 <br />
         		<a id="pl.136.15"></a><var>136.15</var>square feet of any separately owned commercial facility located within the municipal <br />
         		<a id="pl.136.16"></a><var>136.16</var>jurisdiction of a small city, if the revenues derived from increments are spent only to <br />
         		<a id="pl.136.17"></a><var>136.17</var>assist the facility directly or for administrative expenses, the assistance is necessary to <br />
         		<a id="pl.136.18"></a><var>136.18</var>develop the facility, and all of the increments, except those for administrative expenses, <br />
         		<a id="pl.136.19"></a><var>136.19</var>are spent only for activities within the district.<br />
         		<a id="pl.136.20"></a><var>136.20</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) A city is a small city for purposes of this subdivision if the city was a small city <br />
         		<a id="pl.136.21"></a><var>136.21</var>in the year in which the request for certification was made and applies for the rest of <br />
         		<a id="pl.136.22"></a><var>136.22</var>the duration of the district, regardless of whether the city qualifies or ceases to qualify <br />
         		<a id="pl.136.23"></a><var>136.23</var>as a small city.<br />
         		<a id="pl.136.24"></a><var>136.24</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding the requirements of paragraph (a) and the finding requirements <br />
         		<a id="pl.136.25"></a><var>136.25</var>of section 
         <statute_ref>469.174, subdivision 12</statute_ref>, tax increments from an economic development district <br />
         		<a id="pl.136.26"></a><var>136.26</var>may be used to provide improvements, loans, subsidies, grants, interest rate subsidies, or <br />
         		<a id="pl.136.27"></a><var>136.27</var>assistance in any form to developments consisting of buildings and ancillary facilities, if <br />
         		<a id="pl.136.28"></a><var>136.28</var>all the following conditions are met:<br />
         		<a id="pl.136.29"></a><var>136.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) the municipality finds that the project will create or retain jobs in this state, <br />
         		<a id="pl.136.30"></a><var>136.30</var>including construction jobs, and that construction of the project would not have <br />
         		<a id="pl.136.31"></a><var>136.31</var>commenced before July 1, 2012 January 1, 2014, without the authority providing <br />
         		<a id="pl.136.32"></a><var>136.32</var>assistance under the provisions of this paragraph;<br />
         		<a id="pl.136.33"></a><var>136.33</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) construction of the project begins no later than July 1, 2012 January 1, 2014;<br />
         		<a id="pl.136.34"></a><var>136.34</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) the request for certification of the district is made no later than June 30, 2012 <br />
         		<a id="pl.136.35"></a><var>136.35</var>December 31, 2013; and<br />
         		<a id="pl.137.1"></a><var>137.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) for development of housing under this paragraph, the construction must begin <br />
         		<a id="pl.137.2"></a><var>137.2</var>before January 1, 2012.<br />
         		<a id="pl.137.3"></a><var>137.3</var>&nbsp;&nbsp;&nbsp;&nbsp;The provisions of this paragraph may not be used to assist housing that is developed <br />
         		<a id="pl.137.4"></a><var>137.4</var>to qualify under section 
         <statute_ref>469.1761, subdivision 2</statute_ref> or 3, or similar requirements of other law, <br />
         		<a id="pl.137.5"></a><var>137.5</var>if construction of the project begins later than July 1, 2011.<br />
         		<a id="pl.137.6"></a><var>137.6</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.10.9.0"></a><a id="pl.137.7"></a><var>137.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 9. Minnesota Statutes 2011 Supplement, section 469.176, subdivision 4m, is <br />
         		<a id="pl.137.8"></a><var>137.8</var>amended to read:<br />
         		<a id="pl.137.9"></a><var>137.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4m. <b>Temporary authority to stimulate construction.</b> (a) Notwithstanding <br />
         		<a id="pl.137.10"></a><var>137.10</var>the restrictions in any other subdivision of this section or any other law to the contrary, <br />
         		<a id="pl.137.11"></a><var>137.11</var>except the requirement to pay bonds to which the increments are pledged and the <br />
         		<a id="pl.137.12"></a><var>137.12</var>provisions of subdivisions 4g and 4h, the authority may spend tax increments for one or <br />
         		<a id="pl.137.13"></a><var>137.13</var>more of the following purposes:<br />
         		<a id="pl.137.14"></a><var>137.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) to provide improvements, loans, interest rate subsidies, or assistance in any <br />
         		<a id="pl.137.15"></a><var>137.15</var>form to private development consisting of the construction or substantial rehabilitation of <br />
         		<a id="pl.137.16"></a><var>137.16</var>buildings and ancillary facilities, if doing so will create or retain jobs in this state, including <br />
         		<a id="pl.137.17"></a><var>137.17</var>construction jobs, and that the construction commences before July 1, 2012 January 1, <br />
         		<a id="pl.137.18"></a><var>137.18</var>2014, and would not have commenced before that date without the assistance; or<br />
         		<a id="pl.137.19"></a><var>137.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) to make an equity or similar investment in a corporation, partnership, or limited <br />
         		<a id="pl.137.20"></a><var>137.20</var>liability company that the authority determines is necessary to make construction of a <br />
         		<a id="pl.137.21"></a><var>137.21</var>development that meets the requirements of clause (1) financially feasible.<br />
         		<a id="pl.137.22"></a><var>137.22</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) The authority may undertake actions under the authority of this subdivision only <br />
         		<a id="pl.137.23"></a><var>137.23</var>after approval by the municipality of a written spending plan that specifically authorizes <br />
         		<a id="pl.137.24"></a><var>137.24</var>the authority to take the actions. The spending plan must contain a detailed description <br />
         		<a id="pl.137.25"></a><var>137.25</var>of each action to be undertaken. The municipality shall approve the spending plan only <br />
         		<a id="pl.137.26"></a><var>137.26</var>after a public hearing after published notice in a newspaper of general circulation in <br />
         		<a id="pl.137.27"></a><var>137.27</var>the municipality at least once, not less than ten days nor more than 30 days prior to the <br />
         		<a id="pl.137.28"></a><var>137.28</var>date of the hearing.<br />
         		<a id="pl.137.29"></a><var>137.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) The authority to spend tax increments under this subdivision expires December <br />
         		<a id="pl.137.30"></a><var>137.30</var>31, 2012 June 30, 2014.<br />
         		<a id="pl.137.31"></a><var>137.31</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) For a development consisting of housing, the authority to spend tax increments <br />
         		<a id="pl.137.32"></a><var>137.32</var>under this subdivision expires December 31, 2011, and construction must commence <br />
         		<a id="pl.137.33"></a><var>137.33</var>before July 1, 2011, except the authority to spend tax increments on market rate housing <br />
         		<a id="pl.137.34"></a><var>137.34</var>developments under this subdivision expires July 31, 2012, and construction must <br />
         		<a id="pl.137.35"></a><var>137.35</var>commence before January 1, 2012.<br />
         		<a id="pl.138.1"></a><var>138.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br />
         		<a id="pl.138.2"></a><var>138.2</var>and applies to all tax increment financing districts, regardless of when the request for <br />
         		<a id="pl.138.3"></a><var>138.3</var>certification was made. The amendments to paragraph (b) apply to projects approved <br />
         		<a id="pl.138.4"></a><var>138.4</var>after June 30, 2012.<br />
         		<br />
         		<a id="bill.10.10.0"></a><a id="pl.138.5"></a><var>138.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 10. Minnesota Statutes 2010, section 469.176, is amended by adding a subdivision <br />
         		<a id="pl.138.6"></a><var>138.6</var>to read:<br />
         		<a id="pl.138.7"></a><var>138.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4n. <b>Soil deficiency district.</b> Tax increments from a soil deficiency district <br />
         		<a id="pl.138.8"></a><var>138.8</var>may only be used to pay for the following costs for activities located within the mining <br />
         		<a id="pl.138.9"></a><var>138.9</var>reclamation project area:<br />
         		<a id="pl.138.10"></a><var>138.10</var>(1) acquisition of parcels on which the improvements described in clause (2) will <br />
         		<a id="pl.138.11"></a><var>138.11</var>occur;<br />
         		<a id="pl.138.12"></a><var>138.12</var>(2) the cost of correcting the unusual terrain or soil deficiencies and the additional <br />
         		<a id="pl.138.13"></a><var>138.13</var>cost of installing public improvements directly caused by the deficiencies;<br />
         		<a id="pl.138.14"></a><var>138.14</var>(3) administrative expenses of the authority allocable to the district; and<br />
         		<a id="pl.138.15"></a><var>138.15</var>(4) costs described in subdivision 4j for the district, if these payments do not exceed <br />
         		<a id="pl.138.16"></a><var>138.16</var>25 percent of the tax increment from the district.<br />
         		<a id="pl.138.17"></a><var>138.17</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br />
         		<a id="pl.138.18"></a><var>138.18</var>certification is made after April 30, 2012.<br />
         		<br />
         		<a id="bill.10.11.0"></a><a id="pl.138.19"></a><var>138.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 11. Minnesota Statutes 2011 Supplement, section 469.1763, subdivision 2, <br />
         		<a id="pl.138.20"></a><var>138.20</var>is amended to read:<br />
         		<a id="pl.138.21"></a><var>138.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Expenditures outside district.</b> (a) For each tax increment financing <br />
         		<a id="pl.138.22"></a><var>138.22</var>district, an amount equal to at least 75 percent of the total revenue derived from tax <br />
         		<a id="pl.138.23"></a><var>138.23</var>increments paid by properties in the district must be expended on activities in the district <br />
         		<a id="pl.138.24"></a><var>138.24</var>or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities <br />
         		<a id="pl.138.25"></a><var>138.25</var>in the district or to pay, or secure payment of, debt service on credit enhanced bonds. <br />
         		<a id="pl.138.26"></a><var>138.26</var>For districts, other than redevelopment districts for which the request for certification <br />
         		<a id="pl.138.27"></a><var>138.27</var>was made after June 30, 1995, the in-district percentage for purposes of the preceding <br />
         		<a id="pl.138.28"></a><var>138.28</var>sentence is 80 percent. Not more than 25 percent of the total revenue derived from tax <br />
         		<a id="pl.138.29"></a><var>138.29</var>increments paid by properties in the district may be expended, through a development fund <br />
         		<a id="pl.138.30"></a><var>138.30</var>or otherwise, on activities outside of the district but within the defined geographic area of <br />
         		<a id="pl.138.31"></a><var>138.31</var>the project except to pay, or secure payment of, debt service on credit enhanced bonds. <br />
         		<a id="pl.138.32"></a><var>138.32</var>For districts, other than redevelopment districts for which the request for certification was <br />
         		<a id="pl.138.33"></a><var>138.33</var>made after June 30, 1995, the pooling percentage for purposes of the preceding sentence is <br />
         		<a id="pl.138.34"></a><var>138.34</var>20 percent. The revenue derived from tax increments for the district that are expended on <br />
         		<a id="pl.139.1"></a><var>139.1</var>costs under section 
         <statute_ref>469.176, subdivision 4h</statute_ref>, paragraph (b), may be deducted first before <br />
         		<a id="pl.139.2"></a><var>139.2</var>calculating the percentages that must be expended within and without the district.<br />
         		<a id="pl.139.3"></a><var>139.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) In the case of a housing district, a housing project, as defined in section 
         <statute_ref>469.174, <br />
            		<a id="pl.139.4"></a><var>139.4</var>subdivision 11
         </statute_ref>, is an activity in the district.<br />
         		<a id="pl.139.5"></a><var>139.5</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) All administrative expenses are for activities outside of the district, except that <br />
         		<a id="pl.139.6"></a><var>139.6</var>if the only expenses for activities outside of the district under this subdivision are for <br />
         		<a id="pl.139.7"></a><var>139.7</var>the purposes described in paragraph (d), administrative expenses will be considered as <br />
         		<a id="pl.139.8"></a><var>139.8</var>expenditures for activities in the district.<br />
         		<a id="pl.139.9"></a><var>139.9</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) The authority may elect, in the tax increment financing plan for the district, <br />
         		<a id="pl.139.10"></a><var>139.10</var>to increase by up to ten percentage points the permitted amount of expenditures for <br />
         		<a id="pl.139.11"></a><var>139.11</var>activities located outside the geographic area of the district under paragraph (a). As <br />
         		<a id="pl.139.12"></a><var>139.12</var>permitted by section 
         <statute_ref>469.176, subdivision 4k</statute_ref>, the expenditures, including the permitted <br />
         		<a id="pl.139.13"></a><var>139.13</var>expenditures under paragraph (a), need not be made within the geographic area of the <br />
         		<a id="pl.139.14"></a><var>139.14</var>project. Expenditures that meet the requirements of this paragraph are legally permitted <br />
         		<a id="pl.139.15"></a><var>139.15</var>expenditures of the district, notwithstanding section 
         <statute_ref>469.176, subdivisions 4b, 4c, 4d, and <br />
            		<a id="pl.139.16"></a><var>139.16</var>4j
         </statute_ref>. To qualify for the increase under this paragraph, the expenditures must:<br />
         		<a id="pl.139.17"></a><var>139.17</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) be used exclusively to assist housing that<br />
         		<a id="pl.139.18"></a><var>139.18</var>(i) meets the requirement for a qualified low-income building, as that term is used in <br />
         		<a id="pl.139.19"></a><var>139.19</var>section 42 of the Internal Revenue Code; and<br />
         		<a id="pl.139.20"></a><var>139.20</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) (ii) does not exceed the qualified basis of the housing, as defined under section <br />
         		<a id="pl.139.21"></a><var>139.21</var>42(c) of the Internal Revenue Code, less the amount of any credit allowed under section <br />
         		<a id="pl.139.22"></a><var>139.22</var>42 of the Internal Revenue Code; and<br />
         		<a id="pl.139.23"></a><var>139.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) be (iii) is used to:<br />
         		<a id="pl.139.24"></a><var>139.24</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) acquire and prepare the site of the housing;<br />
         		<a id="pl.139.25"></a><var>139.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) (B) acquire, construct, or rehabilitate the housing; or<br />
         		<a id="pl.139.26"></a><var>139.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(iii) (C) make public improvements directly related to the housing; or<br />
         		<a id="pl.139.27"></a><var>139.27</var>(4) (2) be used to develop housing:<br />
         		<a id="pl.139.28"></a><var>139.28</var>(i) if the market value of the housing  prior to demolition or rehabilitation does <br />
         		<a id="pl.139.29"></a><var>139.29</var>not exceed the lesser of:<br />
         		<a id="pl.139.30"></a><var>139.30</var>(A) 150 percent of the average market value of single-family homes in that <br />
         		<a id="pl.139.31"></a><var>139.31</var>municipality; or<br />
         		<a id="pl.139.32"></a><var>139.32</var>(B) $200,000 for municipalities located in the metropolitan area, as defined in <br />
         		<a id="pl.139.33"></a><var>139.33</var>section 
         <statute_ref>473.121</statute_ref>, or $125,000 for all other municipalities; and<br />
         		<a id="pl.139.34"></a><var>139.34</var>(ii) if the expenditures are used to pay the cost of site acquisition, relocation, <br />
         		<a id="pl.139.35"></a><var>139.35</var>demolition of existing structures, site preparation, rehabilitation, and pollution abatement <br />
         		<a id="pl.139.36"></a><var>139.36</var>on one or more parcels, if provided that the parcel contains a residence containing is <br />
         		<a id="pl.140.1"></a><var>140.1</var>occupied by one to four family dwelling units that has been vacant for six or more months <br />
         		<a id="pl.140.2"></a><var>140.2</var>and is in foreclosure as defined in section 
         <statute_ref>325N.10, subdivision 7</statute_ref>, but without regard to <br />
         		<a id="pl.140.3"></a><var>140.3</var>whether the residence is the owner's principal residence, and only after the redemption <br />
         		<a id="pl.140.4"></a><var>140.4</var>period stated in the notice provided under section 
         <statute_ref>580.06</statute_ref> has expired with respect to which <br />
         		<a id="pl.140.5"></a><var>140.5</var>a mortgage was foreclosed under chapter 580, 581, or 582; any applicable redemption <br />
         		<a id="pl.140.6"></a><var>140.6</var>period has expired without redemption; and the authority or developer enters into a <br />
         		<a id="pl.140.7"></a><var>140.7</var>purchase agreement to acquire the parcel no earlier than 30 days after expiration of the <br />
         		<a id="pl.140.8"></a><var>140.8</var>redemption period.<br />
         		<a id="pl.140.9"></a><var>140.9</var>&nbsp;&nbsp;&nbsp;&nbsp;(e) For a district created within a biotechnology and health sciences industry zone <br />
         		<a id="pl.140.10"></a><var>140.10</var>as defined in section 
         <statute_ref>469.330, subdivision 6</statute_ref>, or for an existing district located within <br />
         		<a id="pl.140.11"></a><var>140.11</var>such a zone, tax increment derived from such a district may be expended outside of the <br />
         		<a id="pl.140.12"></a><var>140.12</var>district but within the zone only for expenditures required for the construction of public <br />
         		<a id="pl.140.13"></a><var>140.13</var>infrastructure necessary to support the activities of the zone, land acquisition, and other <br />
         		<a id="pl.140.14"></a><var>140.14</var>redevelopment costs as defined in section 
         <statute_ref>469.176, subdivision 4j</statute_ref>. These expenditures are <br />
         		<a id="pl.140.15"></a><var>140.15</var>considered as expenditures for activities within the district.<br />
         		<a id="pl.140.16"></a><var>140.16</var>(f) The authority under paragraph (d), clause (4) (2), expires on December 31, 2016. <br />
         		<a id="pl.140.17"></a><var>140.17</var>Increments may continue to be expended under this authority after that date, if they are <br />
         		<a id="pl.140.18"></a><var>140.18</var>used to pay bonds or binding contracts that would qualify under subdivision 3, paragraph <br />
         		<a id="pl.140.19"></a><var>140.19</var>(a), if December 31, 2016, is considered to be the last date of the five-year period after <br />
         		<a id="pl.140.20"></a><var>140.20</var>certification under that provision.<br />
         		<a id="pl.140.21"></a><var>140.21</var>(g) The authority may elect, in the tax increment financing plan, for a district located <br />
         		<a id="pl.140.22"></a><var>140.22</var>in a mining reclamation area that "activities within the district" under paragraph (a) <br />
         		<a id="pl.140.23"></a><var>140.23</var>includes activities within the geographic area of the mining reclamation area.<br />
         		<a id="pl.140.24"></a><var>140.24</var><b>EFFECTIVE DATE.</b>This section is effective for any district that is subject to <br />
         		<a id="pl.140.25"></a><var>140.25</var>the provisions of Minnesota Statutes, section 469.1763, regardless of when the request <br />
         		<a id="pl.140.26"></a><var>140.26</var>for certification was made, except the amendment adding paragraph (g) is effective for <br />
         		<a id="pl.140.27"></a><var>140.27</var>districts for which the request for certification was made after April 30, 2012.<br />
         		<br />
         		<a id="bill.10.12.0"></a><a id="pl.140.28"></a><var>140.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 12. Minnesota Statutes 2010, section 469.1763, subdivision 3, is amended to read:<br />
         		<a id="pl.140.29"></a><var>140.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Five-year rule.</b> (a) Revenues derived from tax increments are considered <br />
         		<a id="pl.140.30"></a><var>140.30</var>to have been expended on an activity within the district under subdivision 2 only if one <br />
         		<a id="pl.140.31"></a><var>140.31</var>of the following occurs:<br />
         		<a id="pl.140.32"></a><var>140.32</var>(1) before or within five years after certification of the district, the revenues are <br />
         		<a id="pl.140.33"></a><var>140.33</var>actually paid to a third party with respect to the activity;<br />
         		<a id="pl.140.34"></a><var>140.34</var>(2) bonds, the proceeds of which must be used to finance the activity, are issued and <br />
         		<a id="pl.140.35"></a><var>140.35</var>sold to a third party before or within five years after certification, the revenues are spent <br />
         		<a id="pl.141.1"></a><var>141.1</var>to repay the bonds, and the proceeds of the bonds either are, on the date of issuance, <br />
         		<a id="pl.141.2"></a><var>141.2</var>reasonably expected to be spent before the end of the later of (i) the five-year period, or <br />
         		<a id="pl.141.3"></a><var>141.3</var>(ii) a reasonable temporary period within the meaning of the use of that term under section <br />
         		<a id="pl.141.4"></a><var>141.4</var>148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required reserve <br />
         		<a id="pl.141.5"></a><var>141.5</var>or replacement fund;<br />
         		<a id="pl.141.6"></a><var>141.6</var>(3) binding contracts with a third party are entered into for performance of the <br />
         		<a id="pl.141.7"></a><var>141.7</var>activity before or within five years after certification of the district and the revenues are <br />
         		<a id="pl.141.8"></a><var>141.8</var>spent under the contractual obligation;<br />
         		<a id="pl.141.9"></a><var>141.9</var>(4) costs with respect to the activity are paid before or within five years after <br />
         		<a id="pl.141.10"></a><var>141.10</var>certification of the district and the revenues are spent to reimburse a party for payment <br />
         		<a id="pl.141.11"></a><var>141.11</var>of the costs, including interest on unreimbursed costs; or<br />
         		<a id="pl.141.12"></a><var>141.12</var>(5) expenditures are made for housing purposes as permitted by subdivision 2, <br />
         		<a id="pl.141.13"></a><var>141.13</var>paragraphs (b) and (d), or for public infrastructure purposes within a zone as permitted <br />
         		<a id="pl.141.14"></a><var>141.14</var>by subdivision 2, paragraph (e).<br />
         		<a id="pl.141.15"></a><var>141.15</var>(b) For purposes of this subdivision, bonds include subsequent refunding bonds if <br />
         		<a id="pl.141.16"></a><var>141.16</var>the original refunded bonds meet the requirements of paragraph (a), clause (2).<br />
         		<a id="pl.141.17"></a><var>141.17</var>(c) For a redevelopment district or a renewal and renovation district certified after <br />
         		<a id="pl.141.18"></a><var>141.18</var>June 30, 2003, and before April 20, 2009, the five-year periods described in paragraph <br />
         		<a id="pl.141.19"></a><var>141.19</var>(a) are extended to ten years after certification of the district. This extension is provided <br />
         		<a id="pl.141.20"></a><var>141.20</var>primarily to accommodate delays in development activities due to unanticipated economic <br />
         		<a id="pl.141.21"></a><var>141.21</var>circumstances.<br />
         		<a id="pl.141.22"></a><var>141.22</var>(d) If the authority so elects in the tax increment financing plan for a redevelopment <br />
         		<a id="pl.141.23"></a><var>141.23</var>district, renewal and renovation district, soils condition district, or soil deficiency district <br />
         		<a id="pl.141.24"></a><var>141.24</var>located in a mining reclamation project area, the five-year periods described in paragraph <br />
         		<a id="pl.141.25"></a><var>141.25</var>(a) do not apply.<br />
         		<a id="pl.141.26"></a><var>141.26</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br />
         		<a id="pl.141.27"></a><var>141.27</var>certification is made after April 30, 2012.<br />
         		<br />
         		<a id="bill.10.13.0"></a><a id="pl.141.28"></a><var>141.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 13. Minnesota Statutes 2010, section 469.1763, subdivision 4, is amended to read:<br />
         		<a id="pl.141.29"></a><var>141.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Use of revenues for decertification.</b> (a) In each year beginning with the <br />
         		<a id="pl.141.30"></a><var>141.30</var>sixth year following certification of the district, if the applicable in-district percent of the <br />
         		<a id="pl.141.31"></a><var>141.31</var>revenues derived from tax increments paid by properties in the district exceeds the amount <br />
         		<a id="pl.141.32"></a><var>141.32</var>of expenditures that have been made for costs permitted under subdivision 3, an amount <br />
         		<a id="pl.141.33"></a><var>141.33</var>equal to the difference between the in-district percent of the revenues derived from tax <br />
         		<a id="pl.141.34"></a><var>141.34</var>increments paid by properties in the district and the amount of expenditures that have <br />
         		<a id="pl.142.1"></a><var>142.1</var>been made for costs permitted under subdivision 3 must be used and only used to pay or <br />
         		<a id="pl.142.2"></a><var>142.2</var>defease the following or be set aside to pay the following:<br />
         		<a id="pl.142.3"></a><var>142.3</var>(1) outstanding bonds, as defined in subdivision 3, paragraphs (a), clause (2), and (b);<br />
         		<a id="pl.142.4"></a><var>142.4</var>(2) contracts, as defined in subdivision 3, paragraph (a), clauses (3) and (4);<br />
         		<a id="pl.142.5"></a><var>142.5</var>(3) credit enhanced bonds to which the revenues derived from tax increments are <br />
         		<a id="pl.142.6"></a><var>142.6</var>pledged, but only to the extent that revenues of the district for which the credit enhanced <br />
         		<a id="pl.142.7"></a><var>142.7</var>bonds were issued are insufficient to pay the bonds and to the extent that the increments <br />
         		<a id="pl.142.8"></a><var>142.8</var>from the applicable pooling percent share for the district are insufficient; or<br />
         		<a id="pl.142.9"></a><var>142.9</var>(4) the amount provided by the tax increment financing plan to be paid under <br />
         		<a id="pl.142.10"></a><var>142.10</var>subdivision 2, paragraphs (b), (d), and (e).<br />
         		<a id="pl.142.11"></a><var>142.11</var>(b) The district must be decertified and the pledge of tax increment discharged <br />
         		<a id="pl.142.12"></a><var>142.12</var>when the outstanding bonds have been defeased and when sufficient money has been set <br />
         		<a id="pl.142.13"></a><var>142.13</var>aside to pay, based on the increment to be collected through the end of the calendar year, <br />
         		<a id="pl.142.14"></a><var>142.14</var>the following amounts:<br />
         		<a id="pl.142.15"></a><var>142.15</var>(1) contractual obligations as defined in subdivision 3, paragraph (a), clauses (3) <br />
         		<a id="pl.142.16"></a><var>142.16</var>and (4);<br />
         		<a id="pl.142.17"></a><var>142.17</var>(2) the amount specified in the tax increment financing plan for activities qualifying <br />
         		<a id="pl.142.18"></a><var>142.18</var>under subdivision 2, paragraph (b), that have not been funded with the proceeds of bonds <br />
         		<a id="pl.142.19"></a><var>142.19</var>qualifying under paragraph (a), clause (1); and<br />
         		<a id="pl.142.20"></a><var>142.20</var>(3) the additional expenditures permitted by the tax increment financing plan for <br />
         		<a id="pl.142.21"></a><var>142.21</var>housing activities under an election under subdivision 2, paragraph (d), that have not been <br />
         		<a id="pl.142.22"></a><var>142.22</var>funded with the proceeds of bonds qualifying under paragraph (a), clause (1).<br />
         		<a id="pl.142.23"></a><var>142.23</var>(c) If the authority so elects in the tax increment financing plan for a redevelopment <br />
         		<a id="pl.142.24"></a><var>142.24</var>district, renewal and renovation district, soils condition district, or soil deficiency district <br />
         		<a id="pl.142.25"></a><var>142.25</var>located in a mining reclamation project area, the provisions of this section do not apply.<br />
         		<a id="pl.142.26"></a><var>142.26</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br />
         		<a id="pl.142.27"></a><var>142.27</var>certification is made after April 30, 2012.<br />
         		<br />
         		<a id="bill.10.14.0"></a><a id="pl.142.28"></a><var>142.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 14. Laws 2008, chapter 366, article 5, section 34, as amended by Laws 2009, <br />
         		<a id="pl.142.29"></a><var>142.29</var>chapter 88, article 5, section 11, is amended to read:<br />
         		<a id="pl.142.30"></a><var>142.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 34. <b>CITY OF OAKDALE; ORIGINAL TAX CAPACITY. </b><br />
         		<a id="pl.142.31"></a><var>142.31</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Original tax capacity election.</b> (a) The provisions of this section <br />
         		<a id="pl.142.32"></a><var>142.32</var>apply to redevelopment tax increment financing districts created by the Housing and <br />
         		<a id="pl.142.33"></a><var>142.33</var>Redevelopment Authority in and for the city of Oakdale in the areas comprised of <br />
         		<a id="pl.142.34"></a><var>142.34</var>the parcels with the following parcel identification numbers: (1) 3102921320053; <br />
         		<a id="pl.142.35"></a><var>142.35</var>3102921320054; 3102921320055; 3102921320056; 3102921320057; 3102921320058; <br />
         		<a id="pl.143.1"></a><var>143.1</var>3102921320062; 3102921320063; 3102921320059; 3102921320060; 3102921320061; <br />
         		<a id="pl.143.2"></a><var>143.2</var>3102921330005; and 3102921330004; and (2) 2902921330001 and 2902921330005.<br />
         		<a id="pl.143.3"></a><var>143.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) For a district subject to this section, the Housing and Redevelopment Authority <br />
         		<a id="pl.143.4"></a><var>143.4</var>may, when requesting certification of the original tax capacity of the district under <br />
         		<a id="pl.143.5"></a><var>143.5</var>Minnesota Statutes, section 
         <statute_ref>469.177</statute_ref>, elect to have the original tax capacity of the district <br />
         		<a id="pl.143.6"></a><var>143.6</var>be certified as the tax capacity of the land.<br />
         		<a id="pl.143.7"></a><var>143.7</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) The authority to request certification of a district under this section expires on <br />
         		<a id="pl.143.8"></a><var>143.8</var>July 1, 2013 December 31, 2017.<br />
         		<a id="pl.143.9"></a><var>143.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Parcels deemed occupied.</b> (a) Parcel numbers 3102921320054, <br />
         		<a id="pl.143.10"></a><var>143.10</var>3102921320055, 3102921320056, 3102921320057, 3102921320061, and 3102921330004 <br />
         		<a id="pl.143.11"></a><var>143.11</var>are deemed to meet the requirements of Minnesota Statutes, section 469.174, subdivision <br />
         		<a id="pl.143.12"></a><var>143.12</var>10, paragraph (d), notwithstanding any contrary provisions of that paragraph, if the <br />
         		<a id="pl.143.13"></a><var>143.13</var>following conditions are met:<br />
         		<a id="pl.143.14"></a><var>143.14</var>(1) a building located on any part of each of the specified parcels was demolished <br />
         		<a id="pl.143.15"></a><var>143.15</var>after the authority adopted a resolution under Minnesota Statutes, section 469.174, <br />
         		<a id="pl.143.16"></a><var>143.16</var>subdivision 10, paragraph (d), clause (3);<br />
         		<a id="pl.143.17"></a><var>143.17</var>(2) the building was removed either by the authority, by a developer under a <br />
         		<a id="pl.143.18"></a><var>143.18</var>development agreement with the authority, or by the owner of the property without <br />
         		<a id="pl.143.19"></a><var>143.19</var>entering into a development agreement with the authority; and<br />
         		<a id="pl.143.20"></a><var>143.20</var>(3) the request for certification of the parcel as part of a district is filed with the <br />
         		<a id="pl.143.21"></a><var>143.21</var>county auditor by December 31, 2017.<br />
         		<a id="pl.143.22"></a><var>143.22</var>(b) The provisions of subdivision 1 apply to allow an election by the authority <br />
         		<a id="pl.143.23"></a><var>143.23</var>for the parcels deemed occupied under paragraph (a), notwithstanding the provisions <br />
         		<a id="pl.143.24"></a><var>143.24</var>of Minnesota Statutes, sections 469.174, subdivision 10, paragraph (d), and 469.177, <br />
         		<a id="pl.143.25"></a><var>143.25</var>subdivision 1, paragraph (f).<br />
         		<a id="pl.143.26"></a><var>143.26</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the governing <br />
         		<a id="pl.143.27"></a><var>143.27</var>body of the city of Oakdale with the requirements of Minnesota Statutes, section 645.021, <br />
         		<a id="pl.143.28"></a><var>143.28</var>subdivision 3.<br />
         		<br />
         		<a id="bill.10.15.0"></a><a id="pl.143.29"></a><var>143.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 15. <b>CITY OF BLOOMINGTON; TAX INCREMENT FINANCING.</b><br />
         		<a id="pl.143.30"></a><var>143.30</var>Notwithstanding Minnesota Statutes, section 469.176, or Laws 1996, chapter 464, <br />
         		<a id="pl.143.31"></a><var>143.31</var>article 1, section 8, or any other law to the contrary, the city of Bloomington and its port <br />
         		<a id="pl.143.32"></a><var>143.32</var>authority may extend the duration limits of tax increment financing district No. 1-G, <br />
         		<a id="pl.143.33"></a><var>143.33</var>containing the former Met Center property, including Lindau Lane and that portion of tax <br />
         		<a id="pl.143.34"></a><var>143.34</var>increment financing district No. 1-C north of the existing building line on Lot 1, Block 1, <br />
         		<a id="pl.143.35"></a><var>143.35</var>Mall of America 7th Addition, exclusive of Lots 2 and 3, through December 31, 2038.<br />
         		<a id="pl.144.1"></a><var>144.1</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance of the governing <br />
         		<a id="pl.144.2"></a><var>144.2</var>bodies of the city of Bloomington, Hennepin County, and Independent School District <br />
         		<a id="pl.144.3"></a><var>144.3</var>No. 271, Bloomington, with the requirements of Minnesota Statutes, sections 469.1782, <br />
         		<a id="pl.144.4"></a><var>144.4</var>subdivision 2, and 645.021, subdivision 3.<br />
         		<br />
         		<a id="bill.10.16.0"></a><a id="pl.144.5"></a><var>144.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 16. <b>CITY OF BLOOMINGTON; TAX INCREMENT FINANCING </b><br />
         		<a id="pl.144.6"></a><var>144.6</var><b>EXTENSION.</b><br />
         		<a id="pl.144.7"></a><var>144.7</var>Notwithstanding the provisions of Minnesota Statutes, section 469.176, or any other <br />
         		<a id="pl.144.8"></a><var>144.8</var>law to the contrary, the city of Bloomington and its port authority may extend the duration <br />
         		<a id="pl.144.9"></a><var>144.9</var>limits of Tax Increment Financing District No. 1-I, containing the Bloomington Central <br />
         		<a id="pl.144.10"></a><var>144.10</var>Station property for a period through December 31, 2038.<br />
         		<a id="pl.144.11"></a><var>144.11</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance of the governing <br />
         		<a id="pl.144.12"></a><var>144.12</var>body of the city of Bloomington with the requirements of Minnesota Statutes, sections <br />
         		<a id="pl.144.13"></a><var>144.13</var>469.1782, subdivision 2, and 645.021, subdivision 3.<br />
         		<br />
         		<a id="bill.10.17.0"></a><a id="pl.144.14"></a><var>144.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 17. <b>DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY; TAX </b><br />
         		<a id="pl.144.15"></a><var>144.15</var><b>INCREMENT FINANCING DISTRICT.</b><br />
         		<a id="pl.144.16"></a><var>144.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Authorization.</b> Notwithstanding the provisions of any other law, <br />
         		<a id="pl.144.17"></a><var>144.17</var>the Dakota County Community Development Agency may establish a redevelopment tax <br />
         		<a id="pl.144.18"></a><var>144.18</var>increment financing district comprised of the properties that (1) were included in the <br />
         		<a id="pl.144.19"></a><var>144.19</var>CDA 10 Robert and South Street district in the city of West St. Paul, and (2) were not <br />
         		<a id="pl.144.20"></a><var>144.20</var>decertified before July 1, 2012. The district created under this section terminates no later <br />
         		<a id="pl.144.21"></a><var>144.21</var>than December 31, 2027.<br />
         		<a id="pl.144.22"></a><var>144.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Special rules.</b> The requirements for qualifying a redevelopment district <br />
         		<a id="pl.144.23"></a><var>144.23</var>under Minnesota Statutes, section 469.174, subdivision 10, do not apply to parcels located <br />
         		<a id="pl.144.24"></a><var>144.24</var>within the district. Minnesota Statutes, section 469.176, subdivisions 4g, paragraph (c), <br />
         		<a id="pl.144.25"></a><var>144.25</var>clause (1), item (ii), 4j, and 4l, do not apply to the district. The original tax capacity <br />
         		<a id="pl.144.26"></a><var>144.26</var>of the district is $93,239.<br />
         		<a id="pl.144.27"></a><var>144.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Authorized expenditures.</b> Tax increment from the district may be <br />
         		<a id="pl.144.28"></a><var>144.28</var>expended to pay for any eligible activities authorized by Minnesota Statutes, chapter <br />
         		<a id="pl.144.29"></a><var>144.29</var>469, within the redevelopment area that includes the district. All such expenditures are <br />
         		<a id="pl.144.30"></a><var>144.30</var>deemed to be activities within the district under Minnesota Statutes, section 469.1763, <br />
         		<a id="pl.144.31"></a><var>144.31</var>subdivisions 2, 3, and 4.<br />
         		<a id="pl.145.1"></a><var>145.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Adjusted net tax capacity.</b> The captured tax capacity of the district must <br />
         		<a id="pl.145.2"></a><var>145.2</var>be included in the adjusted net tax capacity of the city, county, and school district for the <br />
         		<a id="pl.145.3"></a><var>145.3</var>purposes of determining local government aid, education aid, and county program aid. <br />
         		<a id="pl.145.4"></a><var>145.4</var>The county auditor shall report to the commissioner of revenue the amount of the captured <br />
         		<a id="pl.145.5"></a><var>145.5</var>tax capacity for the district at the time the assessment abstracts are filed.<br />
         		<a id="pl.145.6"></a><var>145.6</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the governing <br />
         		<a id="pl.145.7"></a><var>145.7</var>body of the Dakota County Community Development Agency with the requirements of <br />
         		<a id="pl.145.8"></a><var>145.8</var>Minnesota Statutes, section 645.021, subdivision 3.<br />
         		<br />
         		<a id="bill.10.18.0"></a><a id="pl.145.9"></a><var>145.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 18. <b>CITY OF BROOKLYN PARK; TAX INCREMENT FINANCING; </b><br />
         		<a id="pl.145.10"></a><var>145.10</var><b>SPECIAL RULES.</b><br />
         		<a id="pl.145.11"></a><var>145.11</var>The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that <br />
         		<a id="pl.145.12"></a><var>145.12</var>activities must be undertaken within a five-year period from the date of certification of a tax <br />
         		<a id="pl.145.13"></a><var>145.13</var>increment financing district, is considered to be met for Tax Increment Financing District <br />
         		<a id="pl.145.14"></a><var>145.14</var>No. 23 in the city of Brooklyn Park if the activities were undertaken by July 1, 2014.<br />
         		<a id="pl.145.15"></a><var>145.15</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the governing <br />
         		<a id="pl.145.16"></a><var>145.16</var>body of the city of Brooklyn Park with the requirements of Minnesota Statutes, section <br />
         		<a id="pl.145.17"></a><var>145.17</var>645.021, subdivision 3.<br />
         		<br />
         		<a id="bill.10.19.0"></a><a id="pl.145.18"></a><var>145.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 19. <b>ST. CLOUD; TAX INCREMENT FINANCING.</b><br />
         		<a id="pl.145.19"></a><var>145.19</var>&nbsp;&nbsp;&nbsp;&nbsp;The request for certification of Tax Increment District No. 2, commonly referred to <br />
         		<a id="pl.145.20"></a><var>145.20</var>as the Norwest District, in the city of St. Cloud is deemed to have been made on or after <br />
         		<a id="pl.145.21"></a><var>145.21</var>August 1, 1979, and before July 1, 1982. Revenues derived from tax increment for that <br />
         		<a id="pl.145.22"></a><var>145.22</var>district must be treated for purposes of any law as revenue of a tax increment financing <br />
         		<a id="pl.145.23"></a><var>145.23</var>district for which the request for certification was made during that time period.<br />
         		<a id="pl.145.24"></a><var>145.24</var><b>EFFECTIVE DATE.</b>This section is effective upon approval by the governing <br />
         		<a id="pl.145.25"></a><var>145.25</var>body of the city of St. Cloud and compliance with Minnesota Statutes, section 645.021, <br />
         		<a id="pl.145.26"></a><var>145.26</var>subdivision 3.<br />
         		<br />
         		<a id="bill.11.0.0"></a><div class="xtend_ce"><a id="pl.145.27"></a><var>145.27</var><b>ARTICLE 11</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.145.28"></a><var>145.28</var><b>ESTATE TAXES</b><br />
            		
         </div><br />
         		<a id="bill.11.1.0"></a><a id="pl.145.29"></a><var>145.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. Minnesota Statutes 2010, section 289A.10, is amended by adding a <br />
         		<a id="pl.145.30"></a><var>145.30</var>subdivision to read:<br />
         		<a id="pl.145.31"></a><var>145.31</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 1a. <b>Recapture tax return required.</b> If a disposition or cessation as provided <br />
         		<a id="pl.145.32"></a><var>145.32</var>by section 291.03, subdivision 11, paragraph (a), has occurred, the qualified heir, as <br />
         		<a id="pl.146.1"></a><var>146.1</var>defined under section 291.03, subdivision 8, paragraph (c), or personal representative of <br />
         		<a id="pl.146.2"></a><var>146.2</var>the decedent's estate must submit a recapture tax return to the commissioner.<br />
         		<a id="pl.146.3"></a><var>146.3</var><b>EFFECTIVE DATE.</b>This section is effective for estates of decedents dying after <br />
         		<a id="pl.146.4"></a><var>146.4</var>June 30, 2011.<br />
         		<br />
         		<a id="bill.11.2.0"></a><a id="pl.146.5"></a><var>146.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. Minnesota Statutes 2010, section 289A.12, is amended by adding a subdivision <br />
         		<a id="pl.146.6"></a><var>146.6</var>to read:<br />
         		<a id="pl.146.7"></a><var>146.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 18. <b>Returns by qualified heirs.</b> Within 24 months and within 36 months <br />
         		<a id="pl.146.8"></a><var>146.8</var>after a decedent's death, a qualified heir, as defined under section 291.03, subdivision 8, <br />
         		<a id="pl.146.9"></a><var>146.9</var>paragraph (c), must file a return with the commissioner relating to the qualified property <br />
         		<a id="pl.146.10"></a><var>146.10</var>received from the decedent.<br />
         		<a id="pl.146.11"></a><var>146.11</var><b>EFFECTIVE DATE.</b>This section is effective for estates of decedents dying after <br />
         		<a id="pl.146.12"></a><var>146.12</var>June 30, 2011.<br />
         		<br />
         		<a id="bill.11.3.0"></a><a id="pl.146.13"></a><var>146.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. Minnesota Statutes 2010, section 289A.18, is amended by adding a subdivision <br />
         		<a id="pl.146.14"></a><var>146.14</var>to read:<br />
         		<a id="pl.146.15"></a><var>146.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3a. <b>Recapture tax return.</b> A recapture tax return is due within six months <br />
         		<a id="pl.146.16"></a><var>146.16</var>after the date of the disposition or cessation as provided by section 291.03, subdivision <br />
         		<a id="pl.146.17"></a><var>146.17</var>11, paragraph (a).<br />
         		<a id="pl.146.18"></a><var>146.18</var><b>EFFECTIVE DATE.</b>This section is effective for estates of decedents dying after <br />
         		<a id="pl.146.19"></a><var>146.19</var>June 30, 2011.<br />
         		<br />
         		<a id="bill.11.4.0"></a><a id="pl.146.20"></a><var>146.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 4. Minnesota Statutes 2010, section 289A.20, subdivision 3, is amended to read:<br />
         		<a id="pl.146.21"></a><var>146.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Estate tax.</b> Taxes imposed by chapter 291 section 291.03, subdivision 1, <br />
         		<a id="pl.146.22"></a><var>146.22</var>take effect at and upon the death of the person whose estate is subject to taxation and are <br />
         		<a id="pl.146.23"></a><var>146.23</var>due and payable on or before the expiration of nine months from that death.<br />
         		<a id="pl.146.24"></a><var>146.24</var><b>EFFECTIVE DATE.</b>This section is effective for estates of decedents dying after <br />
         		<a id="pl.146.25"></a><var>146.25</var>June 30, 2011.<br />
         		<br />
         		<a id="bill.11.5.0"></a><a id="pl.146.26"></a><var>146.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 5. Minnesota Statutes 2010, section 289A.20, is amended by adding a subdivision <br />
         		<a id="pl.146.27"></a><var>146.27</var>to read:<br />
         		<a id="pl.146.28"></a><var>146.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3a. <b>Recapture tax.</b> Taxes imposed by section 291.03, subdivision 11, <br />
         		<a id="pl.146.29"></a><var>146.29</var>paragraph (b), are due and payable on or before the expiration of six months from the date <br />
         		<a id="pl.146.30"></a><var>146.30</var>of disposition or cessation as provided by section 291.03, subdivision 11, paragraph (a).<br />
         		<a id="pl.147.1"></a><var>147.1</var><b>EFFECTIVE DATE.</b>This section is effective for estates of decedents dying after <br />
         		<a id="pl.147.2"></a><var>147.2</var>June 30, 2011.<br />
         		<br />
         		<a id="bill.11.6.0"></a><a id="pl.147.3"></a><var>147.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 6. Minnesota Statutes 2011 Supplement, section 291.03, subdivision 8, is <br />
         		<a id="pl.147.4"></a><var>147.4</var>amended to read:<br />
         		<a id="pl.147.5"></a><var>147.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 8. <b>Definitions.</b> (a) For purposes of this section, the following terms have the <br />
         		<a id="pl.147.6"></a><var>147.6</var>meanings given in this subdivision.<br />
         		<a id="pl.147.7"></a><var>147.7</var>(b) "Family member" means a family member as defined in section 2032A(e)(2) of <br />
         		<a id="pl.147.8"></a><var>147.8</var>the Internal Revenue Code or a trust whose present beneficiaries are all family members as <br />
         		<a id="pl.147.9"></a><var>147.9</var>defined in section 2032A(e)(2) of the Internal Revenue Code.<br />
         		<a id="pl.147.10"></a><var>147.10</var>(c) "Qualified heir" means a family member who acquired qualified property from <br />
         		<a id="pl.147.11"></a><var>147.11</var>upon the death of the decedent and satisfies the requirement under subdivision 9, clause <br />
         		<a id="pl.147.12"></a><var>147.12</var>(6) (8), or subdivision 10, clause (4) (5), for the property.<br />
         		<a id="pl.147.13"></a><var>147.13</var>(d) "Qualified property" means qualified small business property under subdivision <br />
         		<a id="pl.147.14"></a><var>147.14</var>9 and qualified farm property under subdivision 10.<br />
         		<a id="pl.147.15"></a><var>147.15</var><b>EFFECTIVE DATE.</b>This section is effective for estates of decedents dying after <br />
         		<a id="pl.147.16"></a><var>147.16</var>June 30, 2011.<br />
         		<br />
         		<a id="bill.11.7.0"></a><a id="pl.147.17"></a><var>147.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 7. Minnesota Statutes 2011 Supplement, section 291.03, subdivision 9, is <br />
         		<a id="pl.147.18"></a><var>147.18</var>amended to read:<br />
         		<a id="pl.147.19"></a><var>147.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 9. <b>Qualified small business property.</b> Property satisfying all of the following <br />
         		<a id="pl.147.20"></a><var>147.20</var>requirements is qualified small business property:<br />
         		<a id="pl.147.21"></a><var>147.21</var>(1) The value of the property was included in the federal adjusted taxable estate.<br />
         		<a id="pl.147.22"></a><var>147.22</var>(2) The property consists of the assets of a trade or business or shares of stock or <br />
         		<a id="pl.147.23"></a><var>147.23</var>other ownership interests in a corporation or other entity engaged in a trade or business. <br />
         		<a id="pl.147.24"></a><var>147.24</var>The decedent or the decedent's spouse must have materially participated in the trade or <br />
         		<a id="pl.147.25"></a><var>147.25</var>business within the meaning of section 469 of the Internal Revenue Code during the <br />
         		<a id="pl.147.26"></a><var>147.26</var>taxable year that ended before the date of the decedent's death. Shares of stock in a <br />
         		<a id="pl.147.27"></a><var>147.27</var>corporation or an ownership interest in another type of entity do not qualify under this <br />
         		<a id="pl.147.28"></a><var>147.28</var>subdivision if the shares or ownership interests are traded on a public stock exchange at <br />
         		<a id="pl.147.29"></a><var>147.29</var>any time during the three-year period ending on the decedent's date of death. For purposes <br />
         		<a id="pl.147.30"></a><var>147.30</var>of this subdivision, an ownership interest includes the interest the decedent is deemed to <br />
         		<a id="pl.147.31"></a><var>147.31</var>own under sections 2036, 2037, and 2038 of the Internal Revenue Code.<br />
         		<a id="pl.147.32"></a><var>147.32</var>(3) During the decedent's taxable year that ended before the decedent's death, the <br />
         		<a id="pl.147.33"></a><var>147.33</var>trade or business must not have been a passive activity within the meaning of section <br />
         		<a id="pl.147.34"></a><var>147.34</var>469(c) of the Internal Revenue Code and the decedent or the decedent's spouse must have <br />
         		<a id="pl.148.1"></a><var>148.1</var>materially participated in the trade or business within the meaning of section 469(h) of the <br />
         		<a id="pl.148.2"></a><var>148.2</var>Internal Revenue Code, excluding section 469(h)(3) of the Internal Revenue Code and <br />
         		<a id="pl.148.3"></a><var>148.3</var>any other provision provided by Treasury Department regulation that substitutes material <br />
         		<a id="pl.148.4"></a><var>148.4</var>participation in prior taxable years for material participation in the taxable year that ended <br />
         		<a id="pl.148.5"></a><var>148.5</var>before the decedent's death.<br />
         		<a id="pl.148.6"></a><var>148.6</var>(3) (4) The gross annual sales of the trade or business were $10,000,000 or less for <br />
         		<a id="pl.148.7"></a><var>148.7</var>the last taxable year that ended before the date of the death of the decedent.<br />
         		<a id="pl.148.8"></a><var>148.8</var>(4) (5) The property does not consist of cash or, cash equivalents, publicly traded <br />
         		<a id="pl.148.9"></a><var>148.9</var>securities, or assets not used in the operation of the trade or business. For property <br />
         		<a id="pl.148.10"></a><var>148.10</var>consisting of shares of stock or other ownership interests in an entity, the amount value of <br />
         		<a id="pl.148.11"></a><var>148.11</var>cash or, cash equivalents, publicly traded securities, or assets not used in the operation of <br />
         		<a id="pl.148.12"></a><var>148.12</var>the trade or business held by the corporation or other entity must be deducted from the <br />
         		<a id="pl.148.13"></a><var>148.13</var>value of the property qualifying under this subdivision in proportion to the decedent's <br />
         		<a id="pl.148.14"></a><var>148.14</var>share of ownership of the entity on the date of death.<br />
         		<a id="pl.148.15"></a><var>148.15</var>(6) The property does not consist of qualified farm property. For property consisting <br />
         		<a id="pl.148.16"></a><var>148.16</var>of shares of stock or other ownership interests in an entity, the value of the qualified <br />
         		<a id="pl.148.17"></a><var>148.17</var>farm property held by the corporation or other entity must be deducted from the value <br />
         		<a id="pl.148.18"></a><var>148.18</var>of the property qualifying under this subdivision in proportion to the decedent's share of <br />
         		<a id="pl.148.19"></a><var>148.19</var>ownership of the entity on the date of death.<br />
         		<a id="pl.148.20"></a><var>148.20</var>(5) (7) The decedent continuously owned the property, including property the <br />
         		<a id="pl.148.21"></a><var>148.21</var>decedent is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue <br />
         		<a id="pl.148.22"></a><var>148.22</var>Code, for the three-year period ending on the date of death of the decedent. In the case of <br />
         		<a id="pl.148.23"></a><var>148.23</var>a sole proprietor, if the property replaced similar property within the three-year period, <br />
         		<a id="pl.148.24"></a><var>148.24</var>the replacement property will be treated as having been owned for the three-year period <br />
         		<a id="pl.148.25"></a><var>148.25</var>ending on the date of death of the decedent.<br />
         		<a id="pl.148.26"></a><var>148.26</var>(6) A family member continuously uses the property in the operation of the trade or <br />
         		<a id="pl.148.27"></a><var>148.27</var>business for three years following the date of death of the decedent.<br />
         		<a id="pl.148.28"></a><var>148.28</var>(8) For three years following the date of death of the decedent, the trade or business <br />
         		<a id="pl.148.29"></a><var>148.29</var>is not a passive activity within the meaning of section 469(c) of the Internal Revenue <br />
         		<a id="pl.148.30"></a><var>148.30</var>Code and a family member materially participates in the operation of the trade or business <br />
         		<a id="pl.148.31"></a><var>148.31</var>within the meaning of section 469(h) of the Internal Revenue Code, excluding section <br />
         		<a id="pl.148.32"></a><var>148.32</var>469(h)(3) of the Internal Revenue Code and any other provision provided by Treasury <br />
         		<a id="pl.148.33"></a><var>148.33</var>Department regulation that substitutes material participation in prior taxable years for <br />
         		<a id="pl.148.34"></a><var>148.34</var>material participation in the three years following the date of death of the decedent.<br />
         		<a id="pl.149.1"></a><var>149.1</var>(7) (9) The estate and the qualified heir elect to treat the property as qualified small <br />
         		<a id="pl.149.2"></a><var>149.2</var>business property and agree, in the form prescribed by the commissioner, to pay the <br />
         		<a id="pl.149.3"></a><var>149.3</var>recapture tax under subdivision 11, if applicable.<br />
         		<a id="pl.149.4"></a><var>149.4</var><b>EFFECTIVE DATE.</b>This section is effective for estates of decedents dying after <br />
         		<a id="pl.149.5"></a><var>149.5</var>June 30, 2011.<br />
         		<br />
         		<a id="bill.11.8.0"></a><a id="pl.149.6"></a><var>149.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 8. Minnesota Statutes 2011 Supplement, section 291.03, subdivision 10, is <br />
         		<a id="pl.149.7"></a><var>149.7</var>amended to read:<br />
         		<a id="pl.149.8"></a><var>149.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 10. <b>Qualified farm property.</b> Property satisfying all of the following <br />
         		<a id="pl.149.9"></a><var>149.9</var>requirements is qualified farm property:<br />
         		<a id="pl.149.10"></a><var>149.10</var>(1) The value of the property was included in the federal adjusted taxable estate.<br />
         		<a id="pl.149.11"></a><var>149.11</var>(2) The property consists of agricultural land as defined by section 500.24, <br />
         		<a id="pl.149.12"></a><var>149.12</var>subdivision 2, paragraph (g), and owned by a farm meeting the requirements of person <br />
         		<a id="pl.149.13"></a><var>149.13</var>or entity that is not excluded from owning agricultural land by section 
         <statute_ref>500.24</statute_ref>, and was <br />
         		<a id="pl.149.14"></a><var>149.14</var>classified for property tax purposes as the homestead of the decedent or the decedent's <br />
         		<a id="pl.149.15"></a><var>149.15</var>spouse or both under section 
         <statute_ref>273.124</statute_ref>, and as class 2a property under section 
         <statute_ref>273.13, <br />
            		<a id="pl.149.16"></a><var>149.16</var>subdivision 23
         </statute_ref>.<br />
         		<a id="pl.149.17"></a><var>149.17</var>(3) For property taxes payable in the year of decedent's death, the decedent's interest <br />
         		<a id="pl.149.18"></a><var>149.18</var>in the property was classified as the homestead of the decedent or the decedent's spouse or <br />
         		<a id="pl.149.19"></a><var>149.19</var>both under section 273.124, and as class 2a property under section 273.13, subdivision 23.<br />
         		<a id="pl.149.20"></a><var>149.20</var>(4) The decedent continuously owned the property, including property the decedent <br />
         		<a id="pl.149.21"></a><var>149.21</var>is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code, for <br />
         		<a id="pl.149.22"></a><var>149.22</var>the three-year period ending on the date of death of the decedent either by ownership of <br />
         		<a id="pl.149.23"></a><var>149.23</var>the agricultural land or pursuant to holding an interest in an entity that is not excluded <br />
         		<a id="pl.149.24"></a><var>149.24</var>from owning agricultural land under section 500.24.<br />
         		<a id="pl.149.25"></a><var>149.25</var>(4) A family member continuously uses the property in the operation of the trade or <br />
         		<a id="pl.149.26"></a><var>149.26</var>business (5) The property is classified for property tax purposes as class 2a property under <br />
         		<a id="pl.149.27"></a><var>149.27</var>section 273.13, subdivision 23, for three years following the date of death of the decedent.<br />
         		<a id="pl.149.28"></a><var>149.28</var>(5) (6) The estate and the qualified heir elect to treat the property as qualified farm <br />
         		<a id="pl.149.29"></a><var>149.29</var>property and agree, in a form prescribed by the commissioner, to pay the recapture tax <br />
         		<a id="pl.149.30"></a><var>149.30</var>under subdivision 11, if applicable.<br />
         		<a id="pl.149.31"></a><var>149.31</var><b>EFFECTIVE DATE.</b>This section is effective for estates of decedents dying after <br />
         		<a id="pl.149.32"></a><var>149.32</var>June 30, 2011.<br />
         		<br />
         		<a id="bill.11.9.0"></a><a id="pl.150.1"></a><var>150.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 9. Minnesota Statutes 2011 Supplement, section 291.03, subdivision 11, is <br />
         		<a id="pl.150.2"></a><var>150.2</var>amended to read:<br />
         		<a id="pl.150.3"></a><var>150.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 11. <b>Recapture tax.</b> (a) If, within three years after the decedent's death and <br />
         		<a id="pl.150.4"></a><var>150.4</var>before the death of the qualified heir, the qualified heir disposes of any interest in the <br />
         		<a id="pl.150.5"></a><var>150.5</var>qualified property, other than by a disposition to a family member or qualifying entity, <br />
         		<a id="pl.150.6"></a><var>150.6</var>or a family member ceases to use the qualified property which was acquired or passed <br />
         		<a id="pl.150.7"></a><var>150.7</var>from the decedent satisfy the requirement under subdivision 9, clause (7); or 10, clause <br />
         		<a id="pl.150.8"></a><var>150.8</var>(5), an additional estate tax is imposed on the property. In the case of a sole proprietor, if <br />
         		<a id="pl.150.9"></a><var>150.9</var>the qualified heir replaces qualified small business property excluded under subdivision 9 <br />
         		<a id="pl.150.10"></a><var>150.10</var>with similar property, then the qualified heir will not be treated as having disposed of an <br />
         		<a id="pl.150.11"></a><var>150.11</var>interest in the qualified property.<br />
         		<a id="pl.150.12"></a><var>150.12</var>(b) The amount of the additional tax equals the amount of the exclusion claimed with <br />
         		<a id="pl.150.13"></a><var>150.13</var>respect to the qualified interest disposed of by the estate under subdivision 8, paragraph <br />
         		<a id="pl.150.14"></a><var>150.14</var>(d), multiplied by 16 percent.<br />
         		<a id="pl.150.15"></a><var>150.15</var>(c) The additional tax under this subdivision is due on the day which is six months <br />
         		<a id="pl.150.16"></a><var>150.16</var>after the date of the disposition or cessation in paragraph (a).<br />
         		<a id="pl.150.17"></a><var>150.17</var>(c) For purposes of paragraph (a), "qualifying entity" means a corporation or other <br />
         		<a id="pl.150.18"></a><var>150.18</var>entity that is owned by a family member or family members and, for qualified farm <br />
         		<a id="pl.150.19"></a><var>150.19</var>property, that is not excluded from owning agricultural land under section 500.24.<br />
         		<a id="pl.150.20"></a><var>150.20</var><b>EFFECTIVE DATE.</b>This section is effective for estates of decedents dying after <br />
         		<a id="pl.150.21"></a><var>150.21</var>June 30, 2011.<br />
         		<br />
         		<a id="bill.12.0.0"></a><div class="xtend_ce"><a id="pl.150.22"></a><var>150.22</var><b>ARTICLE 12</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.150.23"></a><var>150.23</var><b>HOMESTEAD MARKET VALUE CLEANUP</b><br />
            		
         </div><br />
         		<a id="bill.12.1.0"></a><a id="pl.150.24"></a><var>150.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. Minnesota Statutes 2010, section 38.18, is amended to read:<br />
         		<a id="pl.150.25"></a><var>150.25</var><b>38.18 COUNTY FAIRGROUNDS; IMPROVEMENT AIDED.</b><br />
         		<a id="pl.150.26"></a><var>150.26</var>Any Each town, statutory city, or school district in this state, now or hereafter at <br />
         		<a id="pl.150.27"></a><var>150.27</var>any time having a an estimated market value of all its taxable property, exclusive of <br />
         		<a id="pl.150.28"></a><var>150.28</var>money and credits, of more than $105,000,000, and having a county fair located within its <br />
         		<a id="pl.150.29"></a><var>150.29</var>corporate limits, is hereby authorized to aid in defraying may pay part of the expense of <br />
         		<a id="pl.150.30"></a><var>150.30</var>improving any such the fairground, by appropriating and paying over to the treasurer of <br />
         		<a id="pl.150.31"></a><var>150.31</var>the county owning the fairground such sum of money, not exceeding $10,000, for each <br />
         		<a id="pl.150.32"></a><var>150.32</var>of the political subdivisions, as the its governing body of the town, statutory city, or <br />
         		<a id="pl.150.33"></a><var>150.33</var>school district may, by resolution, determine determines to be for the best interest of the <br />
         		<a id="pl.150.34"></a><var>150.34</var>political subdivision,. The sums so appropriated to amounts paid to the county must be <br />
         		<a id="pl.150.35"></a><var>150.35</var>used solely for the purpose of aiding in the improvement of to improve the fairground <br />
         		<a id="pl.151.1"></a><var>151.1</var>in such the manner as the county board of the county shall determine determines to be <br />
         		<a id="pl.151.2"></a><var>151.2</var>for the best interest of the county.<br />
         		<br />
         		<a id="bill.12.2.0"></a><a id="pl.151.3"></a><var>151.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. Minnesota Statutes 2010, section 40A.15, subdivision 2, is amended to read:<br />
         		<a id="pl.151.4"></a><var>151.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Eligible recipients.</b> All counties within the state, municipalities that <br />
         		<a id="pl.151.5"></a><var>151.5</var>prepare plans and official controls instead of a county, and districts are eligible for <br />
         		<a id="pl.151.6"></a><var>151.6</var>assistance under the program. Counties and districts may apply for assistance on behalf <br />
         		<a id="pl.151.7"></a><var>151.7</var>of other municipalities. In order to be eligible for financial assistance a county or <br />
         		<a id="pl.151.8"></a><var>151.8</var>municipality must agree to levy at least 0.01209 percent of taxable estimated market <br />
         		<a id="pl.151.9"></a><var>151.9</var>value for agricultural land preservation and conservation activities or otherwise spend the <br />
         		<a id="pl.151.10"></a><var>151.10</var>equivalent amount of local money on those activities, or spend $15,000 of local money, <br />
         		<a id="pl.151.11"></a><var>151.11</var>whichever is less.<br />
         		<br />
         		<a id="bill.12.3.0"></a><a id="pl.151.12"></a><var>151.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. Minnesota Statutes 2010, section 69.011, subdivision 1, is amended to read:<br />
         		<a id="pl.151.13"></a><var>151.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Definitions.</b> Unless the language or context clearly indicates that <br />
         		<a id="pl.151.14"></a><var>151.14</var>a different meaning is intended, the following words and terms, for the purposes of this <br />
         		<a id="pl.151.15"></a><var>151.15</var>chapter and chapters 423, 423A, 424 and 424A, have the meanings ascribed to them:<br />
         		<a id="pl.151.16"></a><var>151.16</var>&nbsp;&nbsp;&nbsp;&nbsp;(a) "Commissioner" means the commissioner of revenue.<br />
         		<a id="pl.151.17"></a><var>151.17</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) "Municipality" means:<br />
         		<a id="pl.151.18"></a><var>151.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) a home rule charter or statutory city;<br />
         		<a id="pl.151.19"></a><var>151.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) an organized town;<br />
         		<a id="pl.151.20"></a><var>151.20</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) a park district subject to chapter 398;<br />
         		<a id="pl.151.21"></a><var>151.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) the University of Minnesota;<br />
         		<a id="pl.151.22"></a><var>151.22</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) for purposes of the fire state aid program only, an American Indian tribal <br />
         		<a id="pl.151.23"></a><var>151.23</var>government entity located within a federally recognized American Indian reservation;<br />
         		<a id="pl.151.24"></a><var>151.24</var>&nbsp;&nbsp;&nbsp;&nbsp;(6) for purposes of the police state aid program only, an American Indian tribal <br />
         		<a id="pl.151.25"></a><var>151.25</var>government with a tribal police department which exercises state arrest powers under <br />
         		<a id="pl.151.26"></a><var>151.26</var>section 
         <statute_ref>626.90</statute_ref>, 
         <statute_ref>626.91</statute_ref>, 
         <statute_ref>626.92</statute_ref>, or 
         <statute_ref>626.93</statute_ref>;<br />
         		<a id="pl.151.27"></a><var>151.27</var>&nbsp;&nbsp;&nbsp;&nbsp;(7) for purposes of the police state aid program only, the Metropolitan Airports <br />
         		<a id="pl.151.28"></a><var>151.28</var>Commission; and<br />
         		<a id="pl.151.29"></a><var>151.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(8) for purposes of the police state aid program only, the Department of Natural <br />
         		<a id="pl.151.30"></a><var>151.30</var>Resources and the Department of Public Safety with respect to peace officers covered <br />
         		<a id="pl.151.31"></a><var>151.31</var>under chapter 352B.<br />
         		<a id="pl.151.32"></a><var>151.32</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) "Minnesota Firetown Premium Report" means a form prescribed by the <br />
         		<a id="pl.151.33"></a><var>151.33</var>commissioner containing space for reporting by insurers of fire, lightning, sprinkler <br />
         		<a id="pl.152.1"></a><var>152.1</var>leakage and extended coverage premiums received upon risks located or to be performed <br />
         		<a id="pl.152.2"></a><var>152.2</var>in this state less return premiums and dividends.<br />
         		<a id="pl.152.3"></a><var>152.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) "Firetown" means the area serviced by any municipality having a qualified fire <br />
         		<a id="pl.152.4"></a><var>152.4</var>department or a qualified incorporated fire department having a subsidiary volunteer <br />
         		<a id="pl.152.5"></a><var>152.5</var>firefighters' relief association.<br />
         		<a id="pl.152.6"></a><var>152.6</var>&nbsp;&nbsp;&nbsp;&nbsp;(e) "Estimated market value" means latest available estimated market value of all <br />
         		<a id="pl.152.7"></a><var>152.7</var>property in a taxing jurisdiction, whether the property is subject to taxation, or exempt <br />
         		<a id="pl.152.8"></a><var>152.8</var>from ad valorem taxation obtained from information which appears on abstracts filed with <br />
         		<a id="pl.152.9"></a><var>152.9</var>the commissioner of revenue or equalized by the State Board of Equalization.<br />
         		<a id="pl.152.10"></a><var>152.10</var>&nbsp;&nbsp;&nbsp;&nbsp;(f) "Minnesota Aid to Police Premium Report" means a form prescribed by the <br />
         		<a id="pl.152.11"></a><var>152.11</var>commissioner for reporting by each fire and casualty insurer of all premiums received <br />
         		<a id="pl.152.12"></a><var>152.12</var>upon direct business received by it in this state, or by its agents for it, in cash or otherwise, <br />
         		<a id="pl.152.13"></a><var>152.13</var>during the preceding calendar year, with reference to insurance written for insuring against <br />
         		<a id="pl.152.14"></a><var>152.14</var>the perils contained in auto insurance coverages as reported in the Minnesota business <br />
         		<a id="pl.152.15"></a><var>152.15</var>schedule of the annual financial statement which each insurer is required to file with <br />
         		<a id="pl.152.16"></a><var>152.16</var>the commissioner in accordance with the governing laws or rules less return premiums <br />
         		<a id="pl.152.17"></a><var>152.17</var>and dividends.<br />
         		<a id="pl.152.18"></a><var>152.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(g) "Peace officer" means any person:<br />
         		<a id="pl.152.19"></a><var>152.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) whose primary source of income derived from wages is from direct employment <br />
         		<a id="pl.152.20"></a><var>152.20</var>by a municipality or county as a law enforcement officer on a full-time basis of not less <br />
         		<a id="pl.152.21"></a><var>152.21</var>than 30 hours per week;<br />
         		<a id="pl.152.22"></a><var>152.22</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) who has been employed for a minimum of six months prior to December 31 <br />
         		<a id="pl.152.23"></a><var>152.23</var>preceding the date of the current year's certification under subdivision 2, clause (b);<br />
         		<a id="pl.152.24"></a><var>152.24</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) who is sworn to enforce the general criminal laws of the state and local <br />
         		<a id="pl.152.25"></a><var>152.25</var>ordinances;<br />
         		<a id="pl.152.26"></a><var>152.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) who is licensed by the Peace Officers Standards and Training Board and is <br />
         		<a id="pl.152.27"></a><var>152.27</var>authorized to arrest with a warrant; and<br />
         		<a id="pl.152.28"></a><var>152.28</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) who is a member of the Minneapolis Police Relief Association, the State Patrol <br />
         		<a id="pl.152.29"></a><var>152.29</var>retirement plan, or the public employees police and fire fund.<br />
         		<a id="pl.152.30"></a><var>152.30</var>&nbsp;&nbsp;&nbsp;&nbsp;(h) "Full-time equivalent number of peace officers providing contract service" means <br />
         		<a id="pl.152.31"></a><var>152.31</var>the integral or fractional number of peace officers which would be necessary to provide <br />
         		<a id="pl.152.32"></a><var>152.32</var>the contract service if all peace officers providing service were employed on a full-time <br />
         		<a id="pl.152.33"></a><var>152.33</var>basis as defined by the employing unit and the municipality receiving the contract service.<br />
         		<a id="pl.152.34"></a><var>152.34</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) "Retirement benefits other than a service pension" means any disbursement <br />
         		<a id="pl.152.35"></a><var>152.35</var>authorized under section 
         <statute_ref>424A.05, subdivision 3</statute_ref>, clauses (3) and (4).<br />
         		<a id="pl.153.1"></a><var>153.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means the person <br />
         		<a id="pl.153.2"></a><var>153.2</var>who was elected or appointed to the specified position or, in the absence of the person, <br />
         		<a id="pl.153.3"></a><var>153.3</var>another person who is designated by the applicable governing body. In a park district, <br />
         		<a id="pl.153.4"></a><var>153.4</var>the clerk is the secretary of the board of park district commissioners. In the case of the <br />
         		<a id="pl.153.5"></a><var>153.5</var>University of Minnesota, the clerk is that official designated by the Board of Regents. <br />
         		<a id="pl.153.6"></a><var>153.6</var>For the Metropolitan Airports Commission, the clerk is the person designated by the <br />
         		<a id="pl.153.7"></a><var>153.7</var>commission. For the Department of Natural Resources or the Department of Public Safety, <br />
         		<a id="pl.153.8"></a><var>153.8</var>the clerk is the respective commissioner. For a tribal police department which exercises <br />
         		<a id="pl.153.9"></a><var>153.9</var>state arrest powers under section 
         <statute_ref>626.90</statute_ref>, 
         <statute_ref>626.91</statute_ref>, 
         <statute_ref>626.92</statute_ref>, or 
         <statute_ref>626.93</statute_ref>, the clerk is the person <br />
         		<a id="pl.153.10"></a><var>153.10</var>designated by the applicable American Indian tribal government.<br />
         		<a id="pl.153.11"></a><var>153.11</var>(k) "Voluntary statewide lump-sum volunteer firefighter retirement plan" means the <br />
         		<a id="pl.153.12"></a><var>153.12</var>retirement plan established by chapter 353G.<br />
         		<br />
         		<a id="bill.12.4.0"></a><a id="pl.153.13"></a><var>153.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 4. Minnesota Statutes 2010, section 69.021, subdivision 7, is amended to read:<br />
         		<a id="pl.153.14"></a><var>153.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Apportionment of fire state aid to municipalities and relief associations.</b><br />
         		 <a id="pl.153.15"></a><var>153.15</var>(a) The commissioner shall apportion the fire state aid relative to the premiums reported <br />
         		<a id="pl.153.16"></a><var>153.16</var>on the Minnesota Firetown Premium Reports filed under this chapter to each municipality <br />
         		<a id="pl.153.17"></a><var>153.17</var>and/or firefighters relief association.<br />
         		<a id="pl.153.18"></a><var>153.18</var>(b) The commissioner shall calculate an initial fire state aid allocation amount for <br />
         		<a id="pl.153.19"></a><var>153.19</var>each municipality or fire department under paragraph (c) and a minimum fire state aid <br />
         		<a id="pl.153.20"></a><var>153.20</var>allocation amount for each municipality or fire department under paragraph (d). The <br />
         		<a id="pl.153.21"></a><var>153.21</var>municipality or fire department must receive the larger fire state aid amount.<br />
         		<a id="pl.153.22"></a><var>153.22</var>(c) The initial fire state aid allocation amount is the amount available for <br />
         		<a id="pl.153.23"></a><var>153.23</var>apportionment as fire state aid under subdivision 5, without inclusion of any additional <br />
         		<a id="pl.153.24"></a><var>153.24</var>funding amount to support a minimum fire state aid amount under section 
         <statute_ref>423A.02, <br />
            		<a id="pl.153.25"></a><var>153.25</var>subdivision 3
         </statute_ref>, allocated one-half in proportion to the population as shown in the last <br />
         		<a id="pl.153.26"></a><var>153.26</var>official statewide federal census for each fire town and one-half in proportion to the <br />
         		<a id="pl.153.27"></a><var>153.27</var>estimated market value of each fire town, including (1) the estimated market value of <br />
         		<a id="pl.153.28"></a><var>153.28</var>tax-exempt property and (2) the estimated market value of natural resources lands <br />
         		<a id="pl.153.29"></a><var>153.29</var>receiving in lieu payments under sections 
         <statute_ref>477A.11 </statute_ref>to 
         <statute_ref>477A.14</statute_ref>, but excluding the <br />
         		<a id="pl.153.30"></a><var>153.30</var>estimated market value of minerals. In the case of incorporated or municipal fire <br />
         		<a id="pl.153.31"></a><var>153.31</var>departments furnishing fire protection to other cities, towns, or townships as evidenced <br />
         		<a id="pl.153.32"></a><var>153.32</var>by valid fire service contracts filed with the commissioner, the distribution must be <br />
         		<a id="pl.153.33"></a><var>153.33</var>adjusted proportionately to take into consideration the crossover fire protection service. <br />
         		<a id="pl.153.34"></a><var>153.34</var>Necessary adjustments must be made to subsequent apportionments. In the case of <br />
         		<a id="pl.153.35"></a><var>153.35</var>municipalities or independent fire departments qualifying for the aid, the commissioner <br />
         		<a id="pl.154.1"></a><var>154.1</var>shall calculate the state aid for the municipality or relief association on the basis of the <br />
         		<a id="pl.154.2"></a><var>154.2</var>population and the estimated market value of the area furnished fire protection service <br />
         		<a id="pl.154.3"></a><var>154.3</var>by the fire department as evidenced by duly executed and valid fire service agreements <br />
         		<a id="pl.154.4"></a><var>154.4</var>filed with the commissioner. If one or more fire departments are furnishing contracted fire <br />
         		<a id="pl.154.5"></a><var>154.5</var>service to a city, town, or township, only the population and estimated market value of the <br />
         		<a id="pl.154.6"></a><var>154.6</var>area served by each fire department may be considered in calculating the state aid and <br />
         		<a id="pl.154.7"></a><var>154.7</var>the fire departments furnishing service shall enter into an agreement apportioning among <br />
         		<a id="pl.154.8"></a><var>154.8</var>themselves the percent of the population and the estimated market value of each service <br />
         		<a id="pl.154.9"></a><var>154.9</var>area. The agreement must be in writing and must be filed with the commissioner.<br />
         		<a id="pl.154.10"></a><var>154.10</var>(d) The minimum fire state aid allocation amount is the amount in addition to the <br />
         		<a id="pl.154.11"></a><var>154.11</var>initial fire state allocation amount that is derived from any additional funding amount <br />
         		<a id="pl.154.12"></a><var>154.12</var>to support a minimum fire state aid amount under section 
         <statute_ref>423A.02, subdivision 3</statute_ref>, and <br />
         		<a id="pl.154.13"></a><var>154.13</var>allocated to municipalities with volunteer firefighters relief associations or covered by the <br />
         		<a id="pl.154.14"></a><var>154.14</var>voluntary statewide lump-sum volunteer firefighter retirement plan based on the number <br />
         		<a id="pl.154.15"></a><var>154.15</var>of active volunteer firefighters who are members of the relief association as reported <br />
         		<a id="pl.154.16"></a><var>154.16</var>in the annual financial reporting for the calendar year 1993 to the Office of the State <br />
         		<a id="pl.154.17"></a><var>154.17</var>Auditor, but not to exceed 30 active volunteer firefighters, so that all municipalities or <br />
         		<a id="pl.154.18"></a><var>154.18</var>fire departments with volunteer firefighters relief associations receive in total at least a <br />
         		<a id="pl.154.19"></a><var>154.19</var>minimum fire state aid amount per 1993 active volunteer firefighter to a maximum of <br />
         		<a id="pl.154.20"></a><var>154.20</var>30 firefighters. If a relief association is established after calendar year 1993 and before <br />
         		<a id="pl.154.21"></a><var>154.21</var>calendar year 2000, the number of active volunteer firefighters who are members of the <br />
         		<a id="pl.154.22"></a><var>154.22</var>relief association as reported in the annual financial reporting for calendar year 1998 <br />
         		<a id="pl.154.23"></a><var>154.23</var>to the Office of the State Auditor, but not to exceed 30 active volunteer firefighters, <br />
         		<a id="pl.154.24"></a><var>154.24</var>shall be used in this determination. If a relief association is established after calendar <br />
         		<a id="pl.154.25"></a><var>154.25</var>year 1999, the number of active volunteer firefighters who are members of the relief <br />
         		<a id="pl.154.26"></a><var>154.26</var>association as reported in the first annual financial reporting submitted to the Office of <br />
         		<a id="pl.154.27"></a><var>154.27</var>the State Auditor, but not to exceed 20 active volunteer firefighters, must be used in this <br />
         		<a id="pl.154.28"></a><var>154.28</var>determination. If a relief association is terminated as a result of providing retirement <br />
         		<a id="pl.154.29"></a><var>154.29</var>coverage for volunteer firefighters by the voluntary statewide lump-sum volunteer <br />
         		<a id="pl.154.30"></a><var>154.30</var>firefighter retirement plan under chapter 353G, the number of active volunteer firefighters <br />
         		<a id="pl.154.31"></a><var>154.31</var>of the municipality covered by the statewide plan as certified by the executive director of <br />
         		<a id="pl.154.32"></a><var>154.32</var>the Public Employees Retirement Association to the commissioner and the state auditor, <br />
         		<a id="pl.154.33"></a><var>154.33</var>but not to exceed 30 active firefighters, must be used in this determination.<br />
         		<a id="pl.154.34"></a><var>154.34</var>(e) Unless the firefighters of the applicable fire department are members of the <br />
         		<a id="pl.154.35"></a><var>154.35</var>voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid must <br />
         		<a id="pl.154.36"></a><var>154.36</var>be paid to the treasurer of the municipality where the fire department is located and the <br />
         		<a id="pl.155.1"></a><var>155.1</var>treasurer of the municipality shall, within 30 days of receipt of the fire state aid, transmit <br />
         		<a id="pl.155.2"></a><var>155.2</var>the aid to the relief association if the relief association has filed a financial report with the <br />
         		<a id="pl.155.3"></a><var>155.3</var>treasurer of the municipality and has met all other statutory provisions pertaining to the <br />
         		<a id="pl.155.4"></a><var>155.4</var>aid apportionment. If the firefighters of the applicable fire department are members of <br />
         		<a id="pl.155.5"></a><var>155.5</var>the voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid <br />
         		<a id="pl.155.6"></a><var>155.6</var>must be paid to the executive director of the Public Employees Retirement Association <br />
         		<a id="pl.155.7"></a><var>155.7</var>and deposited in the voluntary statewide lump-sum volunteer firefighter retirement fund.<br />
         		<a id="pl.155.8"></a><var>155.8</var>(f) The commissioner may make rules to permit the administration of the provisions <br />
         		<a id="pl.155.9"></a><var>155.9</var>of this section.<br />
         		<a id="pl.155.10"></a><var>155.10</var>(g) Any adjustments needed to correct prior misallocations must be made to <br />
         		<a id="pl.155.11"></a><var>155.11</var>subsequent apportionments.<br />
         		<br />
         		<a id="bill.12.5.0"></a><a id="pl.155.12"></a><var>155.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 5. Minnesota Statutes 2010, section 69.021, subdivision 8, is amended to read:<br />
         		<a id="pl.155.13"></a><var>155.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 8. <b>Population and </b><b>estimated </b><b>market value.</b> (a) In computations relating to <br />
         		<a id="pl.155.14"></a><var>155.14</var>fire state aid requiring the use of population figures, only official statewide federal census <br />
         		<a id="pl.155.15"></a><var>155.15</var>figures are to be used. Increases or decreases in population disclosed by reason of any <br />
         		<a id="pl.155.16"></a><var>155.16</var>special census must not be taken into consideration.<br />
         		<a id="pl.155.17"></a><var>155.17</var>(b) In calculations relating to fire state aid requiring the use of estimated market <br />
         		<a id="pl.155.18"></a><var>155.18</var>value property figures, only the latest available estimated market value property figures <br />
         		<a id="pl.155.19"></a><var>155.19</var>may be used.<br />
         		<br />
         		<a id="bill.12.6.0"></a><a id="pl.155.20"></a><var>155.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 6. Minnesota Statutes 2010, section 88.51, subdivision 3, is amended to read:<br />
         		<a id="pl.155.21"></a><var>155.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Determination of market value.</b> In determining the net tax capacity of <br />
         		<a id="pl.155.22"></a><var>155.22</var>property within any taxing district the value of the surface of lands within any auxiliary <br />
         		<a id="pl.155.23"></a><var>155.23</var>forest therein, as determined by the county board under the provisions of section 
         <statute_ref>88.48, <br />
            		<a id="pl.155.24"></a><var>155.24</var>subdivision 3
         </statute_ref>, shall, for all purposes except the levying of taxes on lands within any such <br />
         		<a id="pl.155.25"></a><var>155.25</var>forest, be deemed the estimated market value thereof.<br />
         		<br />
         		<a id="bill.12.7.0"></a><a id="pl.155.26"></a><var>155.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 7. Minnesota Statutes 2010, section 103B.245, subdivision 3, is amended to read:<br />
         		<a id="pl.155.27"></a><var>155.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Tax.</b> After adoption of the ordinance under subdivision 2, a local <br />
         		<a id="pl.155.28"></a><var>155.28</var>government unit may annually levy a tax on all taxable property in the district for the <br />
         		<a id="pl.155.29"></a><var>155.29</var>purposes for which the tax district is established. The tax may not exceed 0.02418 percent <br />
         		<a id="pl.155.30"></a><var>155.30</var>of estimated market value on taxable property located in rural towns other than urban <br />
         		<a id="pl.155.31"></a><var>155.31</var>towns, unless allowed by resolution of the town electors. The proceeds of the tax shall <br />
         		<a id="pl.155.32"></a><var>155.32</var>be paid into a fund reserved for these purposes. Any proceeds remaining in the reserve <br />
         		<a id="pl.155.33"></a><var>155.33</var>fund at the time the tax is terminated or the district is dissolved shall be transferred and <br />
         		<a id="pl.156.1"></a><var>156.1</var>irrevocably pledged to the debt service fund of the local unit to be used solely to reduce <br />
         		<a id="pl.156.2"></a><var>156.2</var>tax levies for bonded indebtedness of taxable property in the district.<br />
         		<br />
         		<a id="bill.12.8.0"></a><a id="pl.156.3"></a><var>156.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 8. Minnesota Statutes 2010, section 103B.251, subdivision 8, is amended to read:<br />
         		<a id="pl.156.4"></a><var>156.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 8. <b>Tax.</b> (a) For the payment of principal and interest on the bonds issued <br />
         		<a id="pl.156.5"></a><var>156.5</var>under subdivision 7 and the payment required under subdivision 6, the county shall <br />
         		<a id="pl.156.6"></a><var>156.6</var>irrevocably pledge and appropriate the proceeds of a tax levied on all taxable property <br />
         		<a id="pl.156.7"></a><var>156.7</var>located within the territory of the watershed management organization or subwatershed <br />
         		<a id="pl.156.8"></a><var>156.8</var>unit for which the bonds are issued. Each year until the reserve for payment of the bonds <br />
         		<a id="pl.156.9"></a><var>156.9</var>is sufficient to retire the bonds, the county shall levy on all taxable property in the territory <br />
         		<a id="pl.156.10"></a><var>156.10</var>of the organization or unit, without respect to any statutory or other limitation on taxes, an <br />
         		<a id="pl.156.11"></a><var>156.11</var>amount of taxes sufficient to pay principal and interest on the bonds and to restore any <br />
         		<a id="pl.156.12"></a><var>156.12</var>deficiencies in reserves required to be maintained for payment of the bonds.<br />
         		<a id="pl.156.13"></a><var>156.13</var>(b) The tax levied on rural towns other than urban towns may not exceed 0.02418 <br />
         		<a id="pl.156.14"></a><var>156.14</var>percent of taxable estimated market value, unless approved by resolution of the town <br />
         		<a id="pl.156.15"></a><var>156.15</var>electors.<br />
         		<a id="pl.156.16"></a><var>156.16</var>(c) If at any time the amounts available from the levy on property in the territory of <br />
         		<a id="pl.156.17"></a><var>156.17</var>the organization are insufficient to pay principal and interest on the bonds when due, the <br />
         		<a id="pl.156.18"></a><var>156.18</var>county shall make payment from any available funds in the county treasury.<br />
         		<a id="pl.156.19"></a><var>156.19</var>(d) The amount of any taxes which are required to be levied outside of the territory <br />
         		<a id="pl.156.20"></a><var>156.20</var>of the watershed management organization or unit or taken from the general funds of the <br />
         		<a id="pl.156.21"></a><var>156.21</var>county to pay principal or interest on the bonds shall be reimbursed to the county from <br />
         		<a id="pl.156.22"></a><var>156.22</var>taxes levied within the territory of the watershed management organization or unit.<br />
         		<br />
         		<a id="bill.12.9.0"></a><a id="pl.156.23"></a><var>156.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 9. Minnesota Statutes 2010, section 103B.635, subdivision 2, is amended to read:<br />
         		<a id="pl.156.24"></a><var>156.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Municipal funding of district.</b> (a) The governing body or board of <br />
         		<a id="pl.156.25"></a><var>156.25</var>supervisors of each municipality in the district must provide the funds necessary to meet <br />
         		<a id="pl.156.26"></a><var>156.26</var>its proportion of the total cost determined by the board, provided the total funding from <br />
         		<a id="pl.156.27"></a><var>156.27</var>all municipalities in the district for the costs shall not exceed an amount equal to .00242 <br />
         		<a id="pl.156.28"></a><var>156.28</var>percent of the total taxable estimated market value within the district, unless three-fourths <br />
         		<a id="pl.156.29"></a><var>156.29</var>of the municipalities in the district pass a resolution concurring to the additional costs.<br />
         		<a id="pl.156.30"></a><var>156.30</var>(b) The funds must be deposited in the treasury of the district in amounts and at <br />
         		<a id="pl.156.31"></a><var>156.31</var>times as the treasurer of the district requires.<br />
         		<br />
         		<a id="bill.12.10.0"></a><a id="pl.156.32"></a><var>156.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 10. Minnesota Statutes 2010, section 103B.691, subdivision 2, is amended to read:<br />
         		<a id="pl.157.1"></a><var>157.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Municipal funding of district.</b> (a) The governing body or board of <br />
         		<a id="pl.157.2"></a><var>157.2</var>supervisors of each municipality in the district shall provide the funds necessary to <br />
         		<a id="pl.157.3"></a><var>157.3</var>meet its proportion of the total cost to be borne by the municipalities as finally certified <br />
         		<a id="pl.157.4"></a><var>157.4</var>by the board.<br />
         		<a id="pl.157.5"></a><var>157.5</var>(b) The municipality's funds may be raised by any means within the authority of <br />
         		<a id="pl.157.6"></a><var>157.6</var>the municipality. The municipalities may each levy a tax not to exceed .02418 percent of <br />
         		<a id="pl.157.7"></a><var>157.7</var>taxable estimated market value on the taxable property located in the district to provide <br />
         		<a id="pl.157.8"></a><var>157.8</var>the funds. The levy shall be within all other limitations provided by law.<br />
         		<a id="pl.157.9"></a><var>157.9</var>(c) The funds must be deposited into the treasury of the district in amounts and at <br />
         		<a id="pl.157.10"></a><var>157.10</var>times as the treasurer of the district requires.<br />
         		<br />
         		<a id="bill.12.11.0"></a><a id="pl.157.11"></a><var>157.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 11. Minnesota Statutes 2010, section 103D.905, subdivision 2, is amended to read:<br />
         		<a id="pl.157.12"></a><var>157.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Organizational expense fund.</b> (a) An organizational expense fund, <br />
         		<a id="pl.157.13"></a><var>157.13</var>consisting of an ad valorem tax levy, shall not exceed 0.01596 percent of taxable estimated <br />
         		<a id="pl.157.14"></a><var>157.14</var>market value, or $60,000, whichever is less. The money in the fund shall be used for <br />
         		<a id="pl.157.15"></a><var>157.15</var>organizational expenses and preparation of the watershed management plan for projects.<br />
         		<a id="pl.157.16"></a><var>157.16</var>(b) The managers may borrow from the affected counties up to 75 percent of the <br />
         		<a id="pl.157.17"></a><var>157.17</var>anticipated funds to be collected from the organizational expense fund levy and the <br />
         		<a id="pl.157.18"></a><var>157.18</var>counties affected may make the advancements.<br />
         		<a id="pl.157.19"></a><var>157.19</var>(c) The advancement of anticipated funds shall be apportioned among affected <br />
         		<a id="pl.157.20"></a><var>157.20</var>counties in the same ratio as the net tax capacity of the area of the counties within <br />
         		<a id="pl.157.21"></a><var>157.21</var>the watershed district bears to the net tax capacity of the entire watershed district. If a <br />
         		<a id="pl.157.22"></a><var>157.22</var>watershed district is enlarged, an organizational expense fund may be levied against the <br />
         		<a id="pl.157.23"></a><var>157.23</var>area added to the watershed district in the same manner as provided in this subdivision.<br />
         		<a id="pl.157.24"></a><var>157.24</var>(d) Unexpended funds collected for the organizational expense may be transferred to <br />
         		<a id="pl.157.25"></a><var>157.25</var>the administrative fund and used for the purposes of the administrative fund.<br />
         		<br />
         		<a id="bill.12.12.0"></a><a id="pl.157.26"></a><var>157.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 12. Minnesota Statutes 2010, section 103D.905, subdivision 3, is amended to read:<br />
         		<a id="pl.157.27"></a><var>157.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>General fund.</b> A general fund, consisting of an ad valorem tax levy, may <br />
         		<a id="pl.157.28"></a><var>157.28</var>not exceed 0.048 percent of taxable estimated market value, or $250,000, whichever is <br />
         		<a id="pl.157.29"></a><var>157.29</var>less. The money in the fund shall be used for general administrative expenses and for <br />
         		<a id="pl.157.30"></a><var>157.30</var>the construction or implementation and maintenance of projects of common benefit to <br />
         		<a id="pl.157.31"></a><var>157.31</var>the watershed district. The managers may make an annual levy for the general fund as <br />
         		<a id="pl.157.32"></a><var>157.32</var>provided in section 
         <statute_ref>103D.911</statute_ref>. In addition to the annual general levy, the managers may <br />
         		<a id="pl.157.33"></a><var>157.33</var>annually levy a tax not to exceed 0.00798 percent of taxable estimated market value <br />
         		<a id="pl.157.34"></a><var>157.34</var>for a period not to exceed 15 consecutive years to pay the cost attributable to the basic <br />
         		<a id="pl.158.1"></a><var>158.1</var>water management features of projects initiated by petition of a political subdivision <br />
         		<a id="pl.158.2"></a><var>158.2</var>within the watershed district or by petition of at least 50 resident owners whose property <br />
         		<a id="pl.158.3"></a><var>158.3</var>is within the watershed district.<br />
         		<br />
         		<a id="bill.12.13.0"></a><a id="pl.158.4"></a><var>158.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 13. Minnesota Statutes 2010, section 103D.905, subdivision 8, is amended to read:<br />
         		<a id="pl.158.5"></a><var>158.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 8. <b>Survey and data acquisition fund.</b> (a) A survey and data acquisition fund <br />
         		<a id="pl.158.6"></a><var>158.6</var>is established and used only if other funds are not available to the watershed district to pay <br />
         		<a id="pl.158.7"></a><var>158.7</var>for making necessary surveys and acquiring data.<br />
         		<a id="pl.158.8"></a><var>158.8</var>(b) The survey and data acquisition fund consists of the proceeds of a property tax <br />
         		<a id="pl.158.9"></a><var>158.9</var>that can be levied only once every five years. The levy may not exceed 0.02418 percent of <br />
         		<a id="pl.158.10"></a><var>158.10</var>taxable estimated market value.<br />
         		<a id="pl.158.11"></a><var>158.11</var>(c) The balance of the survey and data acquisition fund may not exceed $50,000.<br />
         		<a id="pl.158.12"></a><var>158.12</var>(d) In a subsequent proceeding for a project where a survey has been made, the <br />
         		<a id="pl.158.13"></a><var>158.13</var>attributable cost of the survey as determined by the managers shall be included as a part of <br />
         		<a id="pl.158.14"></a><var>158.14</var>the cost of the work and the sum shall be repaid to the survey and data acquisition fund.<br />
         		<br />
         		<a id="bill.12.14.0"></a><a id="pl.158.15"></a><var>158.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 14. Minnesota Statutes 2010, section 117.025, subdivision 7, is amended to read:<br />
         		<a id="pl.158.16"></a><var>158.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Structurally substandard.</b> "Structurally substandard" means a building:<br />
         		<a id="pl.158.17"></a><var>158.17</var>(1) that was inspected by the appropriate local government and cited for one or more <br />
         		<a id="pl.158.18"></a><var>158.18</var>enforceable housing, maintenance, or building code violations;<br />
         		<a id="pl.158.19"></a><var>158.19</var>(2) in which the cited building code violations involve one or more of the following:<br />
         		<a id="pl.158.20"></a><var>158.20</var>(i) a roof and roof framing element;<br />
         		<a id="pl.158.21"></a><var>158.21</var>(ii) support walls, beams, and headers;<br />
         		<a id="pl.158.22"></a><var>158.22</var>(iii) foundation, footings, and subgrade conditions;<br />
         		<a id="pl.158.23"></a><var>158.23</var>(iv) light and ventilation;<br />
         		<a id="pl.158.24"></a><var>158.24</var>(v) fire protection, including egress;<br />
         		<a id="pl.158.25"></a><var>158.25</var>(vi) internal utilities, including electricity, gas, and water;<br />
         		<a id="pl.158.26"></a><var>158.26</var>(vii) flooring and flooring elements; or<br />
         		<a id="pl.158.27"></a><var>158.27</var>(viii) walls, insulation, and exterior envelope;<br />
         		<a id="pl.158.28"></a><var>158.28</var>(3) in which the cited housing, maintenance, or building code violations have not <br />
         		<a id="pl.158.29"></a><var>158.29</var>been remedied after two notices to cure the noncompliance; and<br />
         		<a id="pl.158.30"></a><var>158.30</var>(4) has uncured housing, maintenance, and building code violations, satisfaction of <br />
         		<a id="pl.158.31"></a><var>158.31</var>which would cost more than 50 percent of the assessor's taxable estimated market value <br />
         		<a id="pl.158.32"></a><var>158.32</var>for the building, excluding land value, as determined under section 
         <statute_ref>273.11</statute_ref> for property <br />
         		<a id="pl.158.33"></a><var>158.33</var>taxes payable in the year in which the condemnation is commenced.<br />
         		<a id="pl.159.1"></a><var>159.1</var>A local government is authorized to seek from a judge or magistrate an administrative <br />
         		<a id="pl.159.2"></a><var>159.2</var>warrant to gain access to inspect a specific building in a proposed development or <br />
         		<a id="pl.159.3"></a><var>159.3</var>redevelopment area upon showing of probable cause that a specific code violation has <br />
         		<a id="pl.159.4"></a><var>159.4</var>occurred and that the violation has not been cured, and that the owner has denied the local <br />
         		<a id="pl.159.5"></a><var>159.5</var>government access to the property. Items of evidence that may support a conclusion of <br />
         		<a id="pl.159.6"></a><var>159.6</var>probable cause may include recent fire or police inspections, housing inspection, exterior <br />
         		<a id="pl.159.7"></a><var>159.7</var>evidence of deterioration, or other similar reliable evidence of deterioration in the specific <br />
         		<a id="pl.159.8"></a><var>159.8</var>building.<br />
         		<br />
         		<a id="bill.12.15.0"></a><a id="pl.159.9"></a><var>159.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 15. Minnesota Statutes 2010, section 127A.48, subdivision 1, is amended to read:<br />
         		<a id="pl.159.10"></a><var>159.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Computation.</b> The Department of Revenue must annually conduct <br />
         		<a id="pl.159.11"></a><var>159.11</var>an assessment/sales ratio study of the taxable property in each county, city, town, and <br />
         		<a id="pl.159.12"></a><var>159.12</var>school district in accordance with the procedures in subdivisions 2 and 3. Based upon the <br />
         		<a id="pl.159.13"></a><var>159.13</var>results of this assessment/sales ratio study, the Department of Revenue must determine an <br />
         		<a id="pl.159.14"></a><var>159.14</var>aggregate equalized net tax capacity for the various classes of taxable property in each <br />
         		<a id="pl.159.15"></a><var>159.15</var>taxing district, the aggregate of which tax capacity shall be is designated as the adjusted <br />
         		<a id="pl.159.16"></a><var>159.16</var>net tax capacity. The adjusted net tax capacity must be reduced by the captured tax <br />
         		<a id="pl.159.17"></a><var>159.17</var>capacity of tax increment districts under section 469.177, subdivision 2, fiscal disparities <br />
         		<a id="pl.159.18"></a><var>159.18</var>contribution tax capacities under sections 276A.06 and 473F.08, and the tax capacity of <br />
         		<a id="pl.159.19"></a><var>159.19</var>transmission lines required to be subtracted from the local tax base under section 273.425; <br />
         		<a id="pl.159.20"></a><var>159.20</var>and increased by fiscal disparities distribution tax capacities under sections 276A.06 and <br />
         		<a id="pl.159.21"></a><var>159.21</var>473F.08. The adjusted net tax capacities shall be determined using the net tax capacity <br />
         		<a id="pl.159.22"></a><var>159.22</var>percentages in effect for the assessment year following the assessment year of the study. <br />
         		<a id="pl.159.23"></a><var>159.23</var>The Department of Revenue must make whatever estimates are necessary to account for <br />
         		<a id="pl.159.24"></a><var>159.24</var>changes in the classification system. The Department of Revenue may incur the expense <br />
         		<a id="pl.159.25"></a><var>159.25</var>necessary to make the determinations. The commissioner of revenue may reimburse any <br />
         		<a id="pl.159.26"></a><var>159.26</var>county or governmental official for requested services performed in ascertaining the <br />
         		<a id="pl.159.27"></a><var>159.27</var>adjusted net tax capacity. On or before March 15 annually, the Department of Revenue <br />
         		<a id="pl.159.28"></a><var>159.28</var>shall file with the chair of the Tax Committee of the house of representatives and the <br />
         		<a id="pl.159.29"></a><var>159.29</var>chair of the Committee on Taxes and Tax laws of the senate a report of adjusted net tax <br />
         		<a id="pl.159.30"></a><var>159.30</var>capacities for school districts. On or before June 15 annually, the Department of Revenue <br />
         		<a id="pl.159.31"></a><var>159.31</var>shall file its final report on the adjusted net tax capacities for school districts established <br />
         		<a id="pl.159.32"></a><var>159.32</var>by the previous year's assessments and the current year's net tax capacity percentages with <br />
         		<a id="pl.159.33"></a><var>159.33</var>the commissioner of education and each county auditor for those school districts for <br />
         		<a id="pl.159.34"></a><var>159.34</var>which the auditor has the responsibility for determination of local tax rates. A copy of <br />
         		<a id="pl.159.35"></a><var>159.35</var>the report so filed shall be mailed to the clerk of each school district involved and to the <br />
         		<a id="pl.160.1"></a><var>160.1</var>county assessor or supervisor of assessments of the county or counties in which each <br />
         		<a id="pl.160.2"></a><var>160.2</var>school district is located.<br />
         		<a id="pl.160.3"></a><var>160.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.12.16.0"></a><a id="pl.160.4"></a><var>160.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 16. Minnesota Statutes 2010, section 138.053, is amended to read:<br />
         		<a id="pl.160.5"></a><var>160.5</var><b>138.053 COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR </b><br />
         		<a id="pl.160.6"></a><var>160.6</var><b>TOWNS.</b><br />
         		<a id="pl.160.7"></a><var>160.7</var>The governing body of any home rule charter or statutory city or town may annually <br />
         		<a id="pl.160.8"></a><var>160.8</var>appropriate from its general fund an amount not to exceed 0.02418 percent of taxable <br />
         		<a id="pl.160.9"></a><var>160.9</var>estimated market value, derived from ad valorem taxes on property or other revenues, <br />
         		<a id="pl.160.10"></a><var>160.10</var>to be paid to the historical society of its respective county to be used for the promotion <br />
         		<a id="pl.160.11"></a><var>160.11</var>of historical work and to aid in defraying the expenses of carrying on the historical <br />
         		<a id="pl.160.12"></a><var>160.12</var>work in the county. No city or town may appropriate any funds for the benefit of any <br />
         		<a id="pl.160.13"></a><var>160.13</var>historical society unless the society is affiliated with and approved by the Minnesota <br />
         		<a id="pl.160.14"></a><var>160.14</var>Historical Society.<br />
         		<br />
         		<a id="bill.12.17.0"></a><a id="pl.160.15"></a><var>160.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 17. Minnesota Statutes 2010, section 144F.01, subdivision 4, is amended to read:<br />
         		<a id="pl.160.16"></a><var>160.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Property tax levy authority.</b> The district's board may levy a tax on the <br />
         		<a id="pl.160.17"></a><var>160.17</var>taxable real and personal property in the district. The ad valorem tax levy may not <br />
         		<a id="pl.160.18"></a><var>160.18</var>exceed 0.048 percent of the taxable estimated market value of the district or $400,000, <br />
         		<a id="pl.160.19"></a><var>160.19</var>whichever is less. The proceeds of the levy must be used as provided in subdivision 5. <br />
         		<a id="pl.160.20"></a><var>160.20</var>The board shall certify the levy at the times as provided under section 
         <statute_ref>275.07</statute_ref>. The board <br />
         		<a id="pl.160.21"></a><var>160.21</var>shall provide the county with whatever information is necessary to identify the property <br />
         		<a id="pl.160.22"></a><var>160.22</var>that is located within the district. If the boundaries include a part of a parcel, the entire <br />
         		<a id="pl.160.23"></a><var>160.23</var>parcel shall be included in the district. The county auditors must spread, collect, and <br />
         		<a id="pl.160.24"></a><var>160.24</var>distribute the proceeds of the tax at the same time and in the same manner as provided by <br />
         		<a id="pl.160.25"></a><var>160.25</var>law for all other property taxes.<br />
         		<br />
         		<a id="bill.12.18.0"></a><a id="pl.160.26"></a><var>160.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 18. Minnesota Statutes 2010, section 162.07, subdivision 3, is amended to read:<br />
         		<a id="pl.160.27"></a><var>160.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Computation for rural counties.</b> An amount equal to a levy of 0.01596 <br />
         		<a id="pl.160.28"></a><var>160.28</var>percent on each rural county's total taxable estimated market value for the last preceding <br />
         		<a id="pl.160.29"></a><var>160.29</var>calendar year shall be computed and shall be subtracted from the county's total estimated <br />
         		<a id="pl.160.30"></a><var>160.30</var>construction costs. The result thereof shall be the money needs of the county. For the <br />
         		<a id="pl.160.31"></a><var>160.31</var>purpose of this section, "rural counties" means all counties having a population of less <br />
         		<a id="pl.160.32"></a><var>160.32</var>than 175,000.<br />
         		<br />
         		<a id="bill.12.19.0"></a><a id="pl.161.1"></a><var>161.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 19. Minnesota Statutes 2010, section 162.07, subdivision 4, is amended to read:<br />
         		<a id="pl.161.2"></a><var>161.2</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Computation for urban counties.</b> An amount equal to a levy of 0.00967 <br />
         		<a id="pl.161.3"></a><var>161.3</var>percent on each urban county's total taxable estimated market value for the last preceding <br />
         		<a id="pl.161.4"></a><var>161.4</var>calendar year shall be computed and shall be subtracted from the county's total estimated <br />
         		<a id="pl.161.5"></a><var>161.5</var>construction costs. The result thereof shall be the money needs of the county. For <br />
         		<a id="pl.161.6"></a><var>161.6</var>the purpose of this section, "urban counties" means all counties having a population <br />
         		<a id="pl.161.7"></a><var>161.7</var>of 175,000 or more.<br />
         		<br />
         		<a id="bill.12.20.0"></a><a id="pl.161.8"></a><var>161.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 20. Minnesota Statutes 2010, section 163.04, subdivision 3, is amended to read:<br />
         		<a id="pl.161.9"></a><var>161.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Bridges within certain cities.</b> When the council of any statutory city or <br />
         		<a id="pl.161.10"></a><var>161.10</var>city of the third or fourth class may determine that it is necessary to build or improve any <br />
         		<a id="pl.161.11"></a><var>161.11</var>bridge or bridges, including approaches thereto, and any dam or retaining works connected <br />
         		<a id="pl.161.12"></a><var>161.12</var>therewith, upon or forming a part of streets or highways either wholly or partly within <br />
         		<a id="pl.161.13"></a><var>161.13</var>its limits, the county board shall appropriate one-half of the money as may be necessary <br />
         		<a id="pl.161.14"></a><var>161.14</var>therefor from the county road and bridge fund, not exceeding during any year one-half <br />
         		<a id="pl.161.15"></a><var>161.15</var>the amount of taxes paid into the county road and bridge fund during the preceding year, <br />
         		<a id="pl.161.16"></a><var>161.16</var>on property within the corporate limits of the city. The appropriation shall be made upon <br />
         		<a id="pl.161.17"></a><var>161.17</var>the petition of the council, which petition shall be filed by the council with the county <br />
         		<a id="pl.161.18"></a><var>161.18</var>board prior to the fixing by the board of the annual county tax levy. The county board <br />
         		<a id="pl.161.19"></a><var>161.19</var>shall determine the plans and specifications, shall let all necessary contracts, shall have <br />
         		<a id="pl.161.20"></a><var>161.20</var>charge of construction, and upon its request, warrants in payment thereof shall be issued <br />
         		<a id="pl.161.21"></a><var>161.21</var>by the county auditor, from time to time, as the construction work proceeds. Any unpaid <br />
         		<a id="pl.161.22"></a><var>161.22</var>balance may be paid or advanced by the city. On petition of the council, the appropriations <br />
         		<a id="pl.161.23"></a><var>161.23</var>of the county board, during not to exceed three successive years, may be made to apply <br />
         		<a id="pl.161.24"></a><var>161.24</var>on the construction of the same items and to repay any money advanced by the city in <br />
         		<a id="pl.161.25"></a><var>161.25</var>the construction thereof. None of the provisions of this section shall be construed to <br />
         		<a id="pl.161.26"></a><var>161.26</var>be mandatory as applied to any city whose estimated market value exceeds $2,100 per <br />
         		<a id="pl.161.27"></a><var>161.27</var>capita of its population.<br />
         		<br />
         		<a id="bill.12.21.0"></a><a id="pl.161.28"></a><var>161.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 21. Minnesota Statutes 2010, section 163.06, subdivision 6, is amended to read:<br />
         		<a id="pl.161.29"></a><var>161.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <b>Expenditure in certain counties.</b> In any county having not less than 95 <br />
         		<a id="pl.161.30"></a><var>161.30</var>nor more than 105 full and fractional townships, and having a an estimated market value <br />
         		<a id="pl.161.31"></a><var>161.31</var>of not less than $12,000,000 nor more than $21,000,000, exclusive of money and credits, <br />
         		<a id="pl.161.32"></a><var>161.32</var>the county board, by resolution, may expend the funds provided in subdivision 4 in any <br />
         		<a id="pl.161.33"></a><var>161.33</var>organized or unorganized township or portion thereof in such county.<br />
         		<br />
         		<a id="bill.12.22.0"></a><a id="pl.162.1"></a><var>162.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 22. Minnesota Statutes 2010, section 165.10, subdivision 1, is amended to read:<br />
         		<a id="pl.162.2"></a><var>162.2</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Certain counties may issue and sell.</b> The county board of any <br />
         		<a id="pl.162.3"></a><var>162.3</var>county having no outstanding road and bridge bonds may issue and sell county road bonds <br />
         		<a id="pl.162.4"></a><var>162.4</var>in an amount not exceeding 0.12089 percent of the estimated market value of the taxable <br />
         		<a id="pl.162.5"></a><var>162.5</var>property within the county exclusive of money and credits, for the purpose of constructing, <br />
         		<a id="pl.162.6"></a><var>162.6</var>reconstructing, improving, or maintaining any bridge or bridges on any highway under its <br />
         		<a id="pl.162.7"></a><var>162.7</var>jurisdiction, without submitting the matter to a vote of the electors of the county.<br />
         		<br />
         		<a id="bill.12.23.0"></a><a id="pl.162.8"></a><var>162.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 23. Minnesota Statutes 2010, section 272.03, is amended by adding a subdivision <br />
         		<a id="pl.162.9"></a><var>162.9</var>to read:<br />
         		<a id="pl.162.10"></a><var>162.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 14. <b>Estimated market value.</b> "Estimated market value" means the assessor's <br />
         		<a id="pl.162.11"></a><var>162.11</var>determination of market value, including the effects of any orders made under section <br />
         		<a id="pl.162.12"></a><var>162.12</var>270.12 or chapter 274, for the parcel. The provisions of section 273.032 apply for certain <br />
         		<a id="pl.162.13"></a><var>162.13</var>uses in determining the total estimated market value for the taxing jurisdiction.<br />
         		<br />
         		<a id="bill.12.24.0"></a><a id="pl.162.14"></a><var>162.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 24. Minnesota Statutes 2010, section 272.03, is amended by adding a subdivision <br />
         		<a id="pl.162.15"></a><var>162.15</var>to read:<br />
         		<a id="pl.162.16"></a><var>162.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 15. <b>Taxable market value.</b> "Taxable market value" means estimated market <br />
         		<a id="pl.162.17"></a><var>162.17</var>value for the parcel as reduced by market value exclusions, deferments of value, or other <br />
         		<a id="pl.162.18"></a><var>162.18</var>adjustments, required by law, that reduce market value before the application of class rates.<br />
         		<br />
         		<a id="bill.12.25.0"></a><a id="pl.162.19"></a><var>162.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 25. Minnesota Statutes 2010, section 273.032, is amended to read:<br />
         		<a id="pl.162.20"></a><var>162.20</var><b>273.032 MARKET VALUE DEFINITION.</b><br />
         		<a id="pl.162.21"></a><var>162.21</var>(a) Unless otherwise provided, for the purpose of determining any property tax <br />
         		<a id="pl.162.22"></a><var>162.22</var>levy limitation based on market value or any limit on net debt, the issuance of bonds, <br />
         		<a id="pl.162.23"></a><var>162.23</var>certificates of indebtedness, or capital notes based on market value, any qualification to <br />
         		<a id="pl.162.24"></a><var>162.24</var>receive state aid based on market value, or any state aid amount based on market value, <br />
         		<a id="pl.162.25"></a><var>162.25</var>the terms "market value," "taxable estimated market value," and "market valuation," <br />
         		<a id="pl.162.26"></a><var>162.26</var>whether equalized or unequalized, mean the total taxable estimated market value of <br />
         		<a id="pl.162.27"></a><var>162.27</var>taxable property within the local unit of government before any of the following or <br />
         		<a id="pl.162.28"></a><var>162.28</var>similar adjustments for:<br />
         		<a id="pl.162.29"></a><var>162.29</var>(1) the market value exclusions under:<br />
         		<a id="pl.162.30"></a><var>162.30</var>(i) section 273.11, subdivisions 14a and 14c (vacant platted land);<br />
         		<a id="pl.162.31"></a><var>162.31</var>(ii) section 
         <statute_ref>273.11, subdivision 16</statute_ref> (certain improvements to homestead property);<br />
         		<a id="pl.162.32"></a><var>162.32</var>(iii) section 273.11, subdivisions 19 and 20 (certain improvements to business <br />
         		<a id="pl.162.33"></a><var>162.33</var>properties);<br />
         		<a id="pl.163.1"></a><var>163.1</var>(iv) section 273.11, subdivision 21 (homestead property damaged by mold);<br />
         		<a id="pl.163.2"></a><var>163.2</var>(v) section 273.11, subdivision 22 (qualifying lead hazardous reduction projects);<br />
         		<a id="pl.163.3"></a><var>163.3</var>(vi) section 273.13, subdivision 34 (homestead of a disabled veteran, spouse, or <br />
         		<a id="pl.163.4"></a><var>163.4</var>caregiver);<br />
         		<a id="pl.163.5"></a><var>163.5</var>(vii) section 273.13, subdivision 35 (homestead market value exclusion); or<br />
         		<a id="pl.163.6"></a><var>163.6</var>(2) the deferment of value under:<br />
         		<a id="pl.163.7"></a><var>163.7</var>(i) the Minnesota Agricultural Property Tax Law, section 273.111;<br />
         		<a id="pl.163.8"></a><var>163.8</var>(ii) the aggregate resource preservation law, section 273.1115;<br />
         		<a id="pl.163.9"></a><var>163.9</var>(iii) the Minnesota Open Space Property Tax Law, section 273.112;<br />
         		<a id="pl.163.10"></a><var>163.10</var>(iv) the rural preserves property tax program, section 273.114; or<br />
         		<a id="pl.163.11"></a><var>163.11</var>(v) the Metropolitan Agricultural Preserves Act, section 473H.10; or<br />
         		<a id="pl.163.12"></a><var>163.12</var>(3) the adjustments to tax capacity for:<br />
         		<a id="pl.163.13"></a><var>163.13</var> (i) tax increment, financing under sections 469.174 to 469.1794;<br />
         		<a id="pl.163.14"></a><var>163.14</var>(ii) fiscal disparity, disparities under chapter 276A or 473F; or <br />
         		<a id="pl.163.15"></a><var>163.15</var>(iii) powerline credit, or wind energy values, but after the limited market adjustments <br />
         		<a id="pl.163.16"></a><var>163.16</var>under section 
         <statute_ref>273.11, subdivision 1a</statute_ref>, and after the market value exclusions of certain <br />
         		<a id="pl.163.17"></a><var>163.17</var>improvements to homestead property under section 
         <statute_ref>273.11, subdivision 16</statute_ref> under section <br />
         		<a id="pl.163.18"></a><var>163.18</var>273.425.<br />
         		<a id="pl.163.19"></a><var>163.19</var>(b) Estimated market value under paragraph (a) also includes the market value <br />
         		<a id="pl.163.20"></a><var>163.20</var>of tax exempt property if the applicable law specifically provides that the limitation, <br />
         		<a id="pl.163.21"></a><var>163.21</var>qualification, or aid calculation includes tax exempt property.<br />
         		<a id="pl.163.22"></a><var>163.22</var>(c) Unless otherwise provided, "market value," "taxable estimated market value," <br />
         		<a id="pl.163.23"></a><var>163.23</var>and "market valuation" for purposes of this paragraph  property tax levy limitations and <br />
         		<a id="pl.163.24"></a><var>163.24</var>calculation of state aid, refer to the taxable estimated market value for the previous <br />
         		<a id="pl.163.25"></a><var>163.25</var>assessment year and for purposes of limits on net debt, the issuance of bonds, certificates of <br />
         		<a id="pl.163.26"></a><var>163.26</var>indebtedness, or capital notes refer to the estimated market value as last finally equalized.<br />
         		<a id="pl.163.27"></a><var>163.27</var>For the purpose of determining any net debt limit based on market value, or any limit <br />
         		<a id="pl.163.28"></a><var>163.28</var>on the issuance of bonds, certificates of indebtedness, or capital notes based on market <br />
         		<a id="pl.163.29"></a><var>163.29</var>value, the terms "market value," "taxable market value," and "market valuation," whether <br />
         		<a id="pl.163.30"></a><var>163.30</var>equalized or unequalized, mean the total taxable market value of property within the local <br />
         		<a id="pl.163.31"></a><var>163.31</var>unit of government before any adjustments for tax increment, fiscal disparity, powerline <br />
         		<a id="pl.163.32"></a><var>163.32</var>credit, or wind energy values, but after the limited market value adjustments under section <br />
         		<a id="pl.163.33"></a><var>163.33</var><statute_ref>273.11</statute_ref>, subdivision 1a, and after the market value exclusions of certain improvements to <br />
         		<a id="pl.163.34"></a><var>163.34</var>homestead property under section 
         <statute_ref>273.11</statute_ref>, subdivision 16. Unless otherwise provided, <br />
         		<a id="pl.163.35"></a><var>163.35</var>"market value," "taxable market value," and "market valuation" for purposes of this <br />
         		<a id="pl.163.36"></a><var>163.36</var>paragraph, mean the taxable market value as last finally equalized.<br />
         		<a id="pl.164.1"></a><var>164.1</var>(d) For purposes of a provision of a home rule charter or of any special law that is <br />
         		<a id="pl.164.2"></a><var>164.2</var>not codified in the statutes and that imposes a levy limitation based on market value or <br />
         		<a id="pl.164.3"></a><var>164.3</var>any limit on debt, the issuance of bonds, certificates of indebtedness, or capital notes <br />
         		<a id="pl.164.4"></a><var>164.4</var>based on market value, the terms "market value," "taxable market value," and "market <br />
         		<a id="pl.164.5"></a><var>164.5</var>valuation," whether equalized or unequalized, mean "estimated market value" as defined <br />
         		<a id="pl.164.6"></a><var>164.6</var>in paragraph (a).<br />
         		<br />
         		<a id="bill.12.26.0"></a><a id="pl.164.7"></a><var>164.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 26. Minnesota Statutes 2010, section 273.11, subdivision 1, is amended to read:<br />
         		<a id="pl.164.8"></a><var>164.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Generally.</b> Except as provided in this section or section 
         <statute_ref>273.17, <br />
            		<a id="pl.164.9"></a><var>164.9</var>subdivision 1
         </statute_ref>, all property shall be valued at its market value. The market value as <br />
         		<a id="pl.164.10"></a><var>164.10</var>determined pursuant to this section shall be stated such that any amount under $100 is <br />
         		<a id="pl.164.11"></a><var>164.11</var>rounded up to $100 and any amount exceeding $100 shall be rounded to the nearest $100. <br />
         		<a id="pl.164.12"></a><var>164.12</var>In estimating and determining such value, the assessor shall not adopt a lower or different <br />
         		<a id="pl.164.13"></a><var>164.13</var>standard of value because the same is to serve as a basis of taxation, nor shall the assessor <br />
         		<a id="pl.164.14"></a><var>164.14</var>adopt as a criterion of value the price for which such property would sell at a forced sale, <br />
         		<a id="pl.164.15"></a><var>164.15</var>or in the aggregate with all the property in the town or district; but the assessor shall value <br />
         		<a id="pl.164.16"></a><var>164.16</var>each article or description of property by itself, and at such sum or price as the assessor <br />
         		<a id="pl.164.17"></a><var>164.17</var>believes the same to be fairly worth in money. The assessor shall take into account the <br />
         		<a id="pl.164.18"></a><var>164.18</var>effect on the market value of property of environmental factors in the vicinity of the <br />
         		<a id="pl.164.19"></a><var>164.19</var>property. In assessing any tract or lot of real property, the value of the land, exclusive of <br />
         		<a id="pl.164.20"></a><var>164.20</var>structures and improvements, shall be determined, and also the value of all structures and <br />
         		<a id="pl.164.21"></a><var>164.21</var>improvements thereon, and the aggregate value of the property, including all structures <br />
         		<a id="pl.164.22"></a><var>164.22</var>and improvements, excluding the value of crops growing upon cultivated land. In valuing <br />
         		<a id="pl.164.23"></a><var>164.23</var>real property upon which there is a mine or quarry, it shall be valued at such price as such <br />
         		<a id="pl.164.24"></a><var>164.24</var>property, including the mine or quarry, would sell for at a fair, voluntary sale, for cash, <br />
         		<a id="pl.164.25"></a><var>164.25</var>if the material being mined or quarried is not subject to taxation under section 
         <statute_ref>298.015</statute_ref> <br />
         		<a id="pl.164.26"></a><var>164.26</var>and the mine or quarry is not exempt from the general property tax under section 
         <statute_ref>298.25</statute_ref>. <br />
         		<a id="pl.164.27"></a><var>164.27</var>In valuing real property which is vacant, platted property shall be assessed as provided <br />
         		<a id="pl.164.28"></a><var>164.28</var>in subdivision 14 subdivisions 14a and 14c. All property, or the use thereof, which is <br />
         		<a id="pl.164.29"></a><var>164.29</var>taxable under section 
         <statute_ref>272.01, subdivision 2</statute_ref>, or 
         <statute_ref>273.19</statute_ref>, shall be valued at the market <br />
         		<a id="pl.164.30"></a><var>164.30</var>value of such property and not at the value of a leasehold estate in such property, or at <br />
         		<a id="pl.164.31"></a><var>164.31</var>some lesser value than its market value.<br />
         		<br />
         		<a id="bill.12.27.0"></a><a id="pl.164.32"></a><var>164.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 27. Minnesota Statutes 2010, section 273.124, subdivision 3a, is amended to read:<br />
         		<a id="pl.164.33"></a><var>164.33</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3a. <b>Manufactured home park cooperative.</b> (a) When a manufactured home <br />
         		<a id="pl.164.34"></a><var>164.34</var>park is owned by a corporation or association organized under chapter 308A or 308B, <br />
         		<a id="pl.165.1"></a><var>165.1</var>and each person who owns a share or shares in the corporation or association is entitled <br />
         		<a id="pl.165.2"></a><var>165.2</var>to occupy a lot within the park, the corporation or association may claim homestead <br />
         		<a id="pl.165.3"></a><var>165.3</var>treatment for the park. Each lot must be designated by legal description or number, and <br />
         		<a id="pl.165.4"></a><var>165.4</var>each lot is limited to not more than one-half acre of land.<br />
         		<a id="pl.165.5"></a><var>165.5</var>(b) The manufactured home park shall be entitled to homestead treatment if all <br />
         		<a id="pl.165.6"></a><var>165.6</var>of the following criteria are met:<br />
         		<a id="pl.165.7"></a><var>165.7</var>(1) the occupant or the cooperative corporation or association is paying the ad <br />
         		<a id="pl.165.8"></a><var>165.8</var>valorem property taxes and any special assessments levied against the land and structure <br />
         		<a id="pl.165.9"></a><var>165.9</var>either directly, or indirectly through dues to the corporation or association; and<br />
         		<a id="pl.165.10"></a><var>165.10</var>(2) the corporation or association organized under chapter 308A or 308B is wholly <br />
         		<a id="pl.165.11"></a><var>165.11</var>owned by persons having a right to occupy a lot owned by the corporation or association.<br />
         		<a id="pl.165.12"></a><var>165.12</var>(c) A charitable corporation, organized under the laws of Minnesota with no <br />
         		<a id="pl.165.13"></a><var>165.13</var>outstanding stock, and granted a ruling by the Internal Revenue Service for 501(c)(3) <br />
         		<a id="pl.165.14"></a><var>165.14</var>tax-exempt status, qualifies for homestead treatment with respect to a manufactured home <br />
         		<a id="pl.165.15"></a><var>165.15</var>park if its members hold residential participation warrants entitling them to occupy a lot <br />
         		<a id="pl.165.16"></a><var>165.16</var>in the manufactured home park.<br />
         		<a id="pl.165.17"></a><var>165.17</var>(d) "Homestead treatment" under this subdivision means the class rate provided for <br />
         		<a id="pl.165.18"></a><var>165.18</var>class 4c property classified under section 
         <statute_ref>273.13, subdivision 25</statute_ref>, paragraph (d), clause (5), <br />
         		<a id="pl.165.19"></a><var>165.19</var>item (ii). The homestead market value credit exclusion under section 
         <statute_ref>273.1384</statute_ref> 273.13, <br />
         		<a id="pl.165.20"></a><var>165.20</var>subdivision 35, does not apply and the property taxes assessed against the park shall not <br />
         		<a id="pl.165.21"></a><var>165.21</var>be included in the determination of taxes payable for rent paid under section 
         <statute_ref>290A.03</statute_ref>.<br />
         		<a id="pl.165.22"></a><var>165.22</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br />
         		<a id="pl.165.23"></a><var>165.23</var>thereafter.<br />
         		<br />
         		<a id="bill.12.28.0"></a><a id="pl.165.24"></a><var>165.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 28. Minnesota Statutes 2010, section 273.124, subdivision 13, is amended to read:<br />
         		<a id="pl.165.25"></a><var>165.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 13. <b>Homestead application.</b> (a) A person who meets the homestead <br />
         		<a id="pl.165.26"></a><var>165.26</var>requirements under subdivision 1 must file a homestead application with the county <br />
         		<a id="pl.165.27"></a><var>165.27</var>assessor to initially obtain homestead classification.<br />
         		<a id="pl.165.28"></a><var>165.28</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) The format and contents of a uniform homestead application shall be prescribed <br />
         		<a id="pl.165.29"></a><var>165.29</var>by the commissioner of revenue. The application must clearly inform the taxpayer that <br />
         		<a id="pl.165.30"></a><var>165.30</var>this application must be signed by all owners who occupy the property or by the qualifying <br />
         		<a id="pl.165.31"></a><var>165.31</var>relative and returned to the county assessor in order for the property to receive homestead <br />
         		<a id="pl.165.32"></a><var>165.32</var>treatment.<br />
         		<a id="pl.165.33"></a><var>165.33</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) Every property owner applying for homestead classification must furnish to the <br />
         		<a id="pl.165.34"></a><var>165.34</var>county assessor the Social Security number of each occupant who is listed as an owner <br />
         		<a id="pl.165.35"></a><var>165.35</var>of the property on the deed of record, the name and address of each owner who does not <br />
         		<a id="pl.166.1"></a><var>166.1</var>occupy the property, and the name and Social Security number of each owner's spouse who <br />
         		<a id="pl.166.2"></a><var>166.2</var>occupies the property. The application must be signed by each owner who occupies the <br />
         		<a id="pl.166.3"></a><var>166.3</var>property and by each owner's spouse who occupies the property, or, in the case of property <br />
         		<a id="pl.166.4"></a><var>166.4</var>that qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative.<br />
         		<a id="pl.166.5"></a><var>166.5</var>&nbsp;&nbsp;&nbsp;&nbsp;If a property owner occupies a homestead, the property owner's spouse may not <br />
         		<a id="pl.166.6"></a><var>166.6</var>claim another property as a homestead unless the property owner and the property owner's <br />
         		<a id="pl.166.7"></a><var>166.7</var>spouse file with the assessor an affidavit or other proof required by the assessor stating that <br />
         		<a id="pl.166.8"></a><var>166.8</var>the property qualifies as a homestead under subdivision 1, paragraph (e).<br />
         		<a id="pl.166.9"></a><var>166.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Owners or spouses occupying residences owned by their spouses and previously <br />
         		<a id="pl.166.10"></a><var>166.10</var>occupied with the other spouse, either of whom fail to include the other spouse's name <br />
         		<a id="pl.166.11"></a><var>166.11</var>and Social Security number on the homestead application or provide the affidavits or <br />
         		<a id="pl.166.12"></a><var>166.12</var>other proof requested, will be deemed to have elected to receive only partial homestead <br />
         		<a id="pl.166.13"></a><var>166.13</var>treatment of their residence. The remainder of the residence will be classified as <br />
         		<a id="pl.166.14"></a><var>166.14</var>nonhomestead residential. When an owner or spouse's name and Social Security number <br />
         		<a id="pl.166.15"></a><var>166.15</var>appear on homestead applications for two separate residences and only one application is <br />
         		<a id="pl.166.16"></a><var>166.16</var>signed, the owner or spouse will be deemed to have elected to homestead the residence for <br />
         		<a id="pl.166.17"></a><var>166.17</var>which the application was signed.<br />
         		<a id="pl.166.18"></a><var>166.18</var>&nbsp;&nbsp;&nbsp;&nbsp;The Social Security numbers, state or federal tax returns or tax return information, <br />
         		<a id="pl.166.19"></a><var>166.19</var>including the federal income tax schedule F required by this section, or affidavits or other <br />
         		<a id="pl.166.20"></a><var>166.20</var>proofs of the property owners and spouses submitted under this or another section to <br />
         		<a id="pl.166.21"></a><var>166.21</var>support a claim for a property tax homestead classification are private data on individuals <br />
         		<a id="pl.166.22"></a><var>166.22</var>as defined by section 
         <statute_ref>13.02, subdivision 12</statute_ref>, but, notwithstanding that section, the private <br />
         		<a id="pl.166.23"></a><var>166.23</var>data may be disclosed to the commissioner of revenue, or, for purposes of proceeding <br />
         		<a id="pl.166.24"></a><var>166.24</var>under the Revenue Recapture Act to recover personal property taxes owing, to the county <br />
         		<a id="pl.166.25"></a><var>166.25</var>treasurer.<br />
         		<a id="pl.166.26"></a><var>166.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) If residential real estate is occupied and used for purposes of a homestead by a <br />
         		<a id="pl.166.27"></a><var>166.27</var>relative of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in <br />
         		<a id="pl.166.28"></a><var>166.28</var>order for the property to receive homestead status, a homestead application must be filed <br />
         		<a id="pl.166.29"></a><var>166.29</var>with the assessor. The Social Security number of each relative and spouse of a relative <br />
         		<a id="pl.166.30"></a><var>166.30</var>occupying the property shall be required on the homestead application filed under this <br />
         		<a id="pl.166.31"></a><var>166.31</var>subdivision. If a different relative of the owner subsequently occupies the property, the <br />
         		<a id="pl.166.32"></a><var>166.32</var>owner of the property must notify the assessor within 30 days of the change in occupancy. <br />
         		<a id="pl.166.33"></a><var>166.33</var>The Social Security number of a relative or relative's spouse occupying the property <br />
         		<a id="pl.166.34"></a><var>166.34</var>is private data on individuals as defined by section 
         <statute_ref>13.02, subdivision 12</statute_ref>, but may be <br />
         		<a id="pl.166.35"></a><var>166.35</var>disclosed to the commissioner of revenue, or, for the purposes of proceeding under the <br />
         		<a id="pl.166.36"></a><var>166.36</var>Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.<br />
         		<a id="pl.167.1"></a><var>167.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(e) The homestead application shall also notify the property owners that the <br />
         		<a id="pl.167.2"></a><var>167.2</var>application filed under this section will not be mailed annually and that if the property <br />
         		<a id="pl.167.3"></a><var>167.3</var>is granted homestead status for any assessment year, that same property shall remain <br />
         		<a id="pl.167.4"></a><var>167.4</var>classified as homestead until the property is sold or transferred to another person, or <br />
         		<a id="pl.167.5"></a><var>167.5</var>the owners, the spouse of the owner, or the relatives no longer use the property as their <br />
         		<a id="pl.167.6"></a><var>167.6</var>homestead. Upon the sale or transfer of the homestead property, a certificate of value must <br />
         		<a id="pl.167.7"></a><var>167.7</var>be timely filed with the county auditor as provided under section 
         <statute_ref>272.115</statute_ref>. Failure to <br />
         		<a id="pl.167.8"></a><var>167.8</var>notify the assessor within 30 days that the property has been sold, transferred, or that the <br />
         		<a id="pl.167.9"></a><var>167.9</var>owner, the spouse of the owner, or the relative is no longer occupying the property as a <br />
         		<a id="pl.167.10"></a><var>167.10</var>homestead, shall result in the penalty provided under this subdivision and the property <br />
         		<a id="pl.167.11"></a><var>167.11</var>will lose its current homestead status.<br />
         		<a id="pl.167.12"></a><var>167.12</var>&nbsp;&nbsp;&nbsp;&nbsp;(f) If the homestead application is not returned within 30 days, the county will send a <br />
         		<a id="pl.167.13"></a><var>167.13</var>second application to the present owners of record. The notice of proposed property taxes <br />
         		<a id="pl.167.14"></a><var>167.14</var>prepared under section 
         <statute_ref>275.065, subdivision 3</statute_ref>, shall reflect the property's classification. If <br />
         		<a id="pl.167.15"></a><var>167.15</var>a homestead application has not been filed with the county by December 15, the assessor <br />
         		<a id="pl.167.16"></a><var>167.16</var>shall classify the property as nonhomestead for the current assessment year for taxes <br />
         		<a id="pl.167.17"></a><var>167.17</var>payable in the following year, provided that the owner may be entitled to receive the <br />
         		<a id="pl.167.18"></a><var>167.18</var>homestead classification by proper application under section 
         <statute_ref>375.192</statute_ref>.<br />
         		<a id="pl.167.19"></a><var>167.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(g) At the request of the commissioner, each county must give the commissioner a <br />
         		<a id="pl.167.20"></a><var>167.20</var>list that includes the name and Social Security number of each occupant of homestead <br />
         		<a id="pl.167.21"></a><var>167.21</var>property who is the property owner, property owner's spouse, qualifying relative of a <br />
         		<a id="pl.167.22"></a><var>167.22</var>property owner, or a spouse of a qualifying relative. The commissioner shall use the <br />
         		<a id="pl.167.23"></a><var>167.23</var>information provided on the lists as appropriate under the law, including for the detection <br />
         		<a id="pl.167.24"></a><var>167.24</var>of improper claims by owners, or relatives of owners, under chapter 290A.<br />
         		<a id="pl.167.25"></a><var>167.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(h) If the commissioner finds that a property owner may be claiming a fraudulent <br />
         		<a id="pl.167.26"></a><var>167.26</var>homestead, the commissioner shall notify the appropriate counties. Within 90 days of <br />
         		<a id="pl.167.27"></a><var>167.27</var>the notification, the county assessor shall investigate to determine if the homestead <br />
         		<a id="pl.167.28"></a><var>167.28</var>classification was properly claimed. If the property owner does not qualify, the county <br />
         		<a id="pl.167.29"></a><var>167.29</var>assessor shall notify the county auditor who will determine the amount of homestead <br />
         		<a id="pl.167.30"></a><var>167.30</var>benefits that had been improperly allowed. For the purpose of this section, "homestead <br />
         		<a id="pl.167.31"></a><var>167.31</var>benefits" means the tax reduction resulting from the classification as a homestead and the <br />
         		<a id="pl.167.32"></a><var>167.32</var>homestead market value exclusion under section 
         <statute_ref>273.13</statute_ref>, the taconite homestead credit <br />
         		<a id="pl.167.33"></a><var>167.33</var>under section 
         <statute_ref>273.135</statute_ref>, the residential homestead and agricultural homestead credits credit <br />
         		<a id="pl.167.34"></a><var>167.34</var>under section 
         <statute_ref>273.1384</statute_ref>, and the supplemental homestead credit under section 
         <statute_ref>273.1391</statute_ref>.<br />
         		<a id="pl.167.35"></a><var>167.35</var>&nbsp;&nbsp;&nbsp;&nbsp;The county auditor shall send a notice to the person who owned the affected property <br />
         		<a id="pl.167.36"></a><var>167.36</var>at the time the homestead application related to the improper homestead was filed, <br />
         		<a id="pl.168.1"></a><var>168.1</var>demanding reimbursement of the homestead benefits plus a penalty equal to 100 percent <br />
         		<a id="pl.168.2"></a><var>168.2</var>of the homestead benefits. The person notified may appeal the county's determination <br />
         		<a id="pl.168.3"></a><var>168.3</var>by serving copies of a petition for review with county officials as provided in section <br />
         		
         <statute_ref><a id="pl.168.4"></a><var>168.4</var>278.01
         </statute_ref> and filing proof of service as provided in section 
         <statute_ref>278.01</statute_ref> with the Minnesota Tax <br />
         		<a id="pl.168.5"></a><var>168.5</var>Court within 60 days of the date of the notice from the county. Procedurally, the appeal <br />
         		<a id="pl.168.6"></a><var>168.6</var>is governed by the provisions in chapter 271 which apply to the appeal of a property tax <br />
         		<a id="pl.168.7"></a><var>168.7</var>assessment or levy, but without requiring any prepayment of the amount in controversy. If <br />
         		<a id="pl.168.8"></a><var>168.8</var>the amount of homestead benefits and penalty is not paid within 60 days, and if no appeal <br />
         		<a id="pl.168.9"></a><var>168.9</var>has been filed, the county auditor shall certify the amount of taxes and penalty to the county <br />
         		<a id="pl.168.10"></a><var>168.10</var>treasurer. The county treasurer will add interest to the unpaid homestead benefits and <br />
         		<a id="pl.168.11"></a><var>168.11</var>penalty amounts at the rate provided in section 
         <statute_ref>279.03</statute_ref> for real property taxes becoming <br />
         		<a id="pl.168.12"></a><var>168.12</var>delinquent in the calendar year during which the amount remains unpaid. Interest may be <br />
         		<a id="pl.168.13"></a><var>168.13</var>assessed for the period beginning 60 days after demand for payment was made.<br />
         		<a id="pl.168.14"></a><var>168.14</var>&nbsp;&nbsp;&nbsp;&nbsp;If the person notified is the current owner of the property, the treasurer may add the <br />
         		<a id="pl.168.15"></a><var>168.15</var>total amount of homestead benefits, penalty, interest, and costs to the ad valorem taxes <br />
         		<a id="pl.168.16"></a><var>168.16</var>otherwise payable on the property by including the amounts on the property tax statements <br />
         		<a id="pl.168.17"></a><var>168.17</var>under section 
         <statute_ref>276.04, subdivision 3</statute_ref>. The amounts added under this paragraph to the ad <br />
         		<a id="pl.168.18"></a><var>168.18</var>valorem taxes shall include interest accrued through December 31 of the year preceding <br />
         		<a id="pl.168.19"></a><var>168.19</var>the taxes payable year for which the amounts are first added. These amounts, when added <br />
         		<a id="pl.168.20"></a><var>168.20</var>to the property tax statement, become subject to all the laws for the enforcement of real or <br />
         		<a id="pl.168.21"></a><var>168.21</var>personal property taxes for that year, and for any subsequent year.<br />
         		<a id="pl.168.22"></a><var>168.22</var>&nbsp;&nbsp;&nbsp;&nbsp;If the person notified is not the current owner of the property, the treasurer may <br />
         		<a id="pl.168.23"></a><var>168.23</var>collect the amounts due under the Revenue Recapture Act in chapter 270A, or use any of <br />
         		<a id="pl.168.24"></a><var>168.24</var>the powers granted in sections 
         <statute_ref>277.20</statute_ref> and 
         <statute_ref>277.21</statute_ref> without exclusion, to enforce payment <br />
         		<a id="pl.168.25"></a><var>168.25</var>of the homestead benefits, penalty, interest, and costs, as if those amounts were delinquent <br />
         		<a id="pl.168.26"></a><var>168.26</var>tax obligations of the person who owned the property at the time the application related <br />
         		<a id="pl.168.27"></a><var>168.27</var>to the improperly allowed homestead was filed. The treasurer may relieve a prior owner <br />
         		<a id="pl.168.28"></a><var>168.28</var>of personal liability for the homestead benefits, penalty, interest, and costs, and instead <br />
         		<a id="pl.168.29"></a><var>168.29</var>extend those amounts on the tax lists against the property as provided in this paragraph <br />
         		<a id="pl.168.30"></a><var>168.30</var>to the extent that the current owner agrees in writing. On all demands, billings, property <br />
         		<a id="pl.168.31"></a><var>168.31</var>tax statements, and related correspondence, the county must list and state separately the <br />
         		<a id="pl.168.32"></a><var>168.32</var>amounts of homestead benefits, penalty, interest and costs being demanded, billed or <br />
         		<a id="pl.168.33"></a><var>168.33</var>assessed.<br />
         		<a id="pl.168.34"></a><var>168.34</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) Any amount of homestead benefits recovered by the county from the property <br />
         		<a id="pl.168.35"></a><var>168.35</var>owner shall be distributed to the county, city or town, and school district where the <br />
         		<a id="pl.168.36"></a><var>168.36</var>property is located in the same proportion that each taxing district's levy was to the total <br />
         		<a id="pl.169.1"></a><var>169.1</var>of the three taxing districts' levy for the current year. Any amount recovered attributable <br />
         		<a id="pl.169.2"></a><var>169.2</var>to taconite homestead credit shall be transmitted to the St. Louis County auditor to be <br />
         		<a id="pl.169.3"></a><var>169.3</var>deposited in the taconite property tax relief account. Any amount recovered that is <br />
         		<a id="pl.169.4"></a><var>169.4</var>attributable to supplemental homestead credit is to be transmitted to the commissioner of <br />
         		<a id="pl.169.5"></a><var>169.5</var>revenue for deposit in the general fund of the state treasury. The total amount of penalty <br />
         		<a id="pl.169.6"></a><var>169.6</var>collected must be deposited in the county general fund.<br />
         		<a id="pl.169.7"></a><var>169.7</var>&nbsp;&nbsp;&nbsp;&nbsp;(j) If a property owner has applied for more than one homestead and the county <br />
         		<a id="pl.169.8"></a><var>169.8</var>assessors cannot determine which property should be classified as homestead, the county <br />
         		<a id="pl.169.9"></a><var>169.9</var>assessors will refer the information to the commissioner. The commissioner shall make <br />
         		<a id="pl.169.10"></a><var>169.10</var>the determination and notify the counties within 60 days.<br />
         		<a id="pl.169.11"></a><var>169.11</var>&nbsp;&nbsp;&nbsp;&nbsp;(k) In addition to lists of homestead properties, the commissioner may ask the <br />
         		<a id="pl.169.12"></a><var>169.12</var>counties to furnish lists of all properties and the record owners. The Social Security <br />
         		<a id="pl.169.13"></a><var>169.13</var>numbers and federal identification numbers that are maintained by a county or city <br />
         		<a id="pl.169.14"></a><var>169.14</var>assessor for property tax administration purposes, and that may appear on the lists retain <br />
         		<a id="pl.169.15"></a><var>169.15</var>their classification as private or nonpublic data; but may be viewed, accessed, and used by <br />
         		<a id="pl.169.16"></a><var>169.16</var>the county auditor or treasurer of the same county for the limited purpose of assisting the <br />
         		<a id="pl.169.17"></a><var>169.17</var>commissioner in the preparation of microdata samples under section 
         <statute_ref>270C.12</statute_ref>.<br />
         		<a id="pl.169.18"></a><var>169.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(l) On or before April 30 each year beginning in 2007, each county must provide the <br />
         		<a id="pl.169.19"></a><var>169.19</var>commissioner with the following data for each parcel of homestead property by electronic <br />
         		<a id="pl.169.20"></a><var>169.20</var>means as defined in section 
         <statute_ref>289A.02, subdivision 8</statute_ref>:<br />
         		<a id="pl.169.21"></a><var>169.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) the property identification number assigned to the parcel for purposes of taxes <br />
         		<a id="pl.169.22"></a><var>169.22</var>payable in the current year;<br />
         		<a id="pl.169.23"></a><var>169.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) the name and Social Security number of each occupant of homestead property <br />
         		<a id="pl.169.24"></a><var>169.24</var>who is the property owner, property owner's spouse, qualifying relative of a property <br />
         		<a id="pl.169.25"></a><var>169.25</var>owner, or spouse of a qualifying relative;<br />
         		<a id="pl.169.26"></a><var>169.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(iii) the classification of the property under section 
         <statute_ref>273.13</statute_ref> for taxes payable in the <br />
         		<a id="pl.169.27"></a><var>169.27</var>current year and in the prior year;<br />
         		<a id="pl.169.28"></a><var>169.28</var>&nbsp;&nbsp;&nbsp;&nbsp;(iv) an indication of whether the property was classified as a homestead for taxes <br />
         		<a id="pl.169.29"></a><var>169.29</var>payable in the current year because of occupancy by a relative of the owner or by a <br />
         		<a id="pl.169.30"></a><var>169.30</var>spouse of a relative;<br />
         		<a id="pl.169.31"></a><var>169.31</var>&nbsp;&nbsp;&nbsp;&nbsp;(v) the property taxes payable as defined in section 
         <statute_ref>290A.03, subdivision 13</statute_ref>, for the <br />
         		<a id="pl.169.32"></a><var>169.32</var>current year and the prior year;<br />
         		<a id="pl.169.33"></a><var>169.33</var>&nbsp;&nbsp;&nbsp;&nbsp;(vi) the market value of improvements to the property first assessed for tax purposes <br />
         		<a id="pl.169.34"></a><var>169.34</var>for taxes payable in the current year;<br />
         		<a id="pl.169.35"></a><var>169.35</var>&nbsp;&nbsp;&nbsp;&nbsp;(vii) the assessor's estimated market value assigned to the property for taxes payable <br />
         		<a id="pl.169.36"></a><var>169.36</var>in the current year and the prior year;<br />
         		<a id="pl.170.1"></a><var>170.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(viii) the taxable market value assigned to the property for taxes payable in the <br />
         		<a id="pl.170.2"></a><var>170.2</var>current year and the prior year;<br />
         		<a id="pl.170.3"></a><var>170.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(ix) whether there are delinquent property taxes owing on the homestead;<br />
         		<a id="pl.170.4"></a><var>170.4</var>&nbsp;&nbsp;&nbsp;&nbsp;(x) the unique taxing district in which the property is located; and<br />
         		<a id="pl.170.5"></a><var>170.5</var>&nbsp;&nbsp;&nbsp;&nbsp;(xi) such other information as the commissioner decides is necessary.<br />
         		<a id="pl.170.6"></a><var>170.6</var>&nbsp;&nbsp;&nbsp;&nbsp;The commissioner shall use the information provided on the lists as appropriate <br />
         		<a id="pl.170.7"></a><var>170.7</var>under the law, including for the detection of improper claims by owners, or relatives <br />
         		<a id="pl.170.8"></a><var>170.8</var>of owners, under chapter 290A.<br />
         		<a id="pl.170.9"></a><var>170.9</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2012 and <br />
         		<a id="pl.170.10"></a><var>170.10</var>thereafter.<br />
         		<br />
         		<a id="bill.12.29.0"></a><a id="pl.170.11"></a><var>170.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 29. Minnesota Statutes 2010, section 273.13, subdivision 21b, is amended to read:<br />
         		<a id="pl.170.12"></a><var>170.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 21b. <b>Net </b><b>tax capacity.</b> (a) Gross tax capacity means the product of the <br />
         		<a id="pl.170.13"></a><var>170.13</var>appropriate gross class rates in this section and market values.<br />
         		<a id="pl.170.14"></a><var>170.14</var>(b) Net tax capacity means the product of the appropriate net class rates in this <br />
         		<a id="pl.170.15"></a><var>170.15</var>section and taxable market values.<br />
         		<a id="pl.170.16"></a><var>170.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.12.30.0"></a><a id="pl.170.17"></a><var>170.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 30. Minnesota Statutes 2010, section 273.1398, subdivision 3, is amended to read:<br />
         		<a id="pl.170.18"></a><var>170.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Disparity reduction aid.</b>  The amount of disparity aid certified for each <br />
         		<a id="pl.170.19"></a><var>170.19</var>taxing district within each unique taxing jurisdiction for taxes payable in the prior year <br />
         		<a id="pl.170.20"></a><var>170.20</var>shall be multiplied by the ratio of (1) the jurisdiction's tax capacity using the class rates for <br />
         		<a id="pl.170.21"></a><var>170.21</var>taxes payable in the year for which aid is being computed, to (2) its tax capacity using <br />
         		<a id="pl.170.22"></a><var>170.22</var>the class rates for taxes payable in the year prior to that for which aid is being computed, <br />
         		<a id="pl.170.23"></a><var>170.23</var>both based upon taxable market values for taxes payable in the year prior to that for which <br />
         		<a id="pl.170.24"></a><var>170.24</var>aid is being computed. If the commissioner determines that insufficient information is <br />
         		<a id="pl.170.25"></a><var>170.25</var>available to reasonably and timely calculate the numerator in this ratio for the first taxes <br />
         		<a id="pl.170.26"></a><var>170.26</var>payable year that a class rate change or new class rate is effective, the commissioner shall <br />
         		<a id="pl.170.27"></a><var>170.27</var>omit the effects of that class rate change or new class rate when calculating this ratio for <br />
         		<a id="pl.170.28"></a><var>170.28</var>aid payable in that taxes payable year. For aid payable in the year following a year for <br />
         		<a id="pl.170.29"></a><var>170.29</var>which such omission was made, the commissioner shall use in the denominator for the <br />
         		<a id="pl.170.30"></a><var>170.30</var>class that was changed or created, the tax capacity for taxes payable two years prior to that <br />
         		<a id="pl.170.31"></a><var>170.31</var>in which the aid is payable, based on taxable market values for taxes payable in the year <br />
         		<a id="pl.170.32"></a><var>170.32</var>prior to that for which aid is being computed.<br />
         		<br />
         		<a id="bill.12.31.0"></a><a id="pl.171.1"></a><var>171.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 31. Minnesota Statutes 2010, section 273.1398, subdivision 4, is amended to read:<br />
         		<a id="pl.171.2"></a><var>171.2</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Disparity reduction credit.</b> (a) Beginning with taxes payable in 1989, <br />
         		<a id="pl.171.3"></a><var>171.3</var>class 4a, class 3a, and class 3b property qualifies for a disparity reduction credit if: (1) <br />
         		<a id="pl.171.4"></a><var>171.4</var>the property is located in a border city that has an enterprise zone designated pursuant <br />
         		<a id="pl.171.5"></a><var>171.5</var>to section 
         <statute_ref>469.168, subdivision 4</statute_ref>; (2) the property is located in a city with a population <br />
         		<a id="pl.171.6"></a><var>171.6</var>greater than 2,500 and less than 35,000 according to the 1980 decennial census; (3) the <br />
         		<a id="pl.171.7"></a><var>171.7</var>city is adjacent to a city in another state or immediately adjacent to a city adjacent to a city <br />
         		<a id="pl.171.8"></a><var>171.8</var>in another state; and (4) the adjacent city in the other state has a population of greater than <br />
         		<a id="pl.171.9"></a><var>171.9</var>5,000 and less than 75,000 according to the 1980 decennial census.<br />
         		<a id="pl.171.10"></a><var>171.10</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) The credit is an amount sufficient to reduce (i) the taxes levied on class 4a <br />
         		<a id="pl.171.11"></a><var>171.11</var>property to 2.3 percent of the property's taxable market value and (ii) the tax on class 3a <br />
         		<a id="pl.171.12"></a><var>171.12</var>and class 3b property to 2.3 percent of taxable market value.<br />
         		<a id="pl.171.13"></a><var>171.13</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) The county auditor shall annually certify the costs of the credits to the <br />
         		<a id="pl.171.14"></a><var>171.14</var>Department of Revenue. The department shall reimburse local governments for the <br />
         		<a id="pl.171.15"></a><var>171.15</var>property taxes forgone as the result of the credits in proportion to their total levies.<br />
         		<br />
         		<a id="bill.12.32.0"></a><a id="pl.171.16"></a><var>171.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 32. Minnesota Statutes 2010, section 275.011, subdivision 1, is amended to read:<br />
         		<a id="pl.171.17"></a><var>171.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Determination of levy limit.</b> The property tax levied for any <br />
         		<a id="pl.171.18"></a><var>171.18</var>purpose under a special law that is not codified in Minnesota Statutes or a city charter <br />
         		<a id="pl.171.19"></a><var>171.19</var>provision and that is subject to a mill rate limitation imposed by the special law or city <br />
         		<a id="pl.171.20"></a><var>171.20</var>charter provision, excluding levies subject to mill rate limitations that use adjusted <br />
         		<a id="pl.171.21"></a><var>171.21</var>assessed values determined by the commissioner of revenue under section 
         <statute_ref>124.2131</statute_ref>, must <br />
         		<a id="pl.171.22"></a><var>171.22</var>not exceed the following amount for the years specified:<br />
         		<a id="pl.171.23"></a><var>171.23</var>(a) for taxes payable in 1988, the product of the applicable mill rate limitation <br />
         		<a id="pl.171.24"></a><var>171.24</var>imposed by special law or city charter provision multiplied by the total assessed valuation <br />
         		<a id="pl.171.25"></a><var>171.25</var>of all taxable property subject to the tax as adjusted by the provisions of Minnesota <br />
         		<a id="pl.171.26"></a><var>171.26</var>Statutes 1986, sections 
         <statute_ref>272.64</statute_ref>; 
         <statute_ref>273.13, subdivision 7a</statute_ref>; and 
         <statute_ref>275.49</statute_ref>;<br />
         		<a id="pl.171.27"></a><var>171.27</var>(b) for taxes payable in 1989, the product of (1) the property tax levy limitation for <br />
         		<a id="pl.171.28"></a><var>171.28</var>the taxes payable year 1988 determined under clause (a) multiplied by (2) an index for <br />
         		<a id="pl.171.29"></a><var>171.29</var>market valuation changes equal to the assessment year 1988 total market valuation of all <br />
         		<a id="pl.171.30"></a><var>171.30</var>taxable property subject to the tax divided by the assessment year 1987 total market <br />
         		<a id="pl.171.31"></a><var>171.31</var>valuation of all taxable property subject to the tax; and<br />
         		<a id="pl.171.32"></a><var>171.32</var>(c) for taxes payable in 1990 and subsequent years, the product of (1) the property <br />
         		<a id="pl.171.33"></a><var>171.33</var>tax levy limitation for the previous year determined pursuant to this subdivision multiplied <br />
         		<a id="pl.171.34"></a><var>171.34</var>by (2) an index for market valuation changes equal to the total market valuation of all <br />
         		<a id="pl.172.1"></a><var>172.1</var>taxable property subject to the tax for the current assessment year divided by the total <br />
         		<a id="pl.172.2"></a><var>172.2</var>market valuation of all taxable property subject to the tax for the previous assessment year.<br />
         		<a id="pl.172.3"></a><var>172.3</var>For the purpose of determining the property tax levy limitation for the taxes payable <br />
         		<a id="pl.172.4"></a><var>172.4</var>year 1988 2013 and subsequent years under this subdivision, "total market valuation" <br />
         		<a id="pl.172.5"></a><var>172.5</var>means the total estimated market valuation value of all taxable property subject to the <br />
         		<a id="pl.172.6"></a><var>172.6</var>tax without valuation adjustments for fiscal disparities (chapters 276A and 473F), tax <br />
         		<a id="pl.172.7"></a><var>172.7</var>increment financing (sections 
         <statute_ref>469.174</statute_ref> to 469.179), or powerline credit (section 273.425) <br />
         		<a id="pl.172.8"></a><var>172.8</var>as provided under section 273.032.<br />
         		<br />
         		<a id="bill.12.33.0"></a><a id="pl.172.9"></a><var>172.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 33. Minnesota Statutes 2010, section 275.077, subdivision 2, is amended to read:<br />
         		<a id="pl.172.10"></a><var>172.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Correction of levy amount.</b> The difference between the correct levy and <br />
         		<a id="pl.172.11"></a><var>172.11</var>the erroneous levy shall be added to the township levy for the subsequent levy year; <br />
         		<a id="pl.172.12"></a><var>172.12</var>provided that if the amount of the difference exceeds 0.12089 percent of taxable estimated <br />
         		<a id="pl.172.13"></a><var>172.13</var>market value, the excess shall be added to the township levy for the second and later <br />
         		<a id="pl.172.14"></a><var>172.14</var>subsequent levy years, not to exceed an additional levy of 0.12089 percent of taxable <br />
         		<a id="pl.172.15"></a><var>172.15</var>estimated market value in any year, until the full amount of the difference has been levied. <br />
         		<a id="pl.172.16"></a><var>172.16</var>The funds collected from the corrected levies shall be used to reimburse the county for the <br />
         		<a id="pl.172.17"></a><var>172.17</var>payment required by subdivision 1.<br />
         		<br />
         		<a id="bill.12.34.0"></a><a id="pl.172.18"></a><var>172.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 34. Minnesota Statutes 2010, section 275.71, subdivision 4, is amended to read:<br />
         		<a id="pl.172.19"></a><var>172.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Adjusted levy limit base.</b>  For taxes levied in 2008 through 2010, the <br />
         		<a id="pl.172.20"></a><var>172.20</var>adjusted levy limit base is equal to the levy limit base computed under subdivision 2 <br />
         		<a id="pl.172.21"></a><var>172.21</var>or section 
         <statute_ref>275.72</statute_ref>, multiplied by:<br />
         		<a id="pl.172.22"></a><var>172.22</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) one plus the percentage growth in the implicit price deflator, but the percentage <br />
         		<a id="pl.172.23"></a><var>172.23</var>shall not be less than zero or exceed 3.9 percent;<br />
         		<a id="pl.172.24"></a><var>172.24</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) one plus a percentage equal to 50 percent of the percentage increase in the number <br />
         		<a id="pl.172.25"></a><var>172.25</var>of households, if any, for the most recent 12-month period for which data is available; and<br />
         		<a id="pl.172.26"></a><var>172.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) one plus a percentage equal to 50 percent of the percentage increase in the <br />
         		<a id="pl.172.27"></a><var>172.27</var>taxable estimated market value of the jurisdiction due to new construction of class 3 <br />
         		<a id="pl.172.28"></a><var>172.28</var>property, as defined in section 
         <statute_ref>273.13, subdivision 4</statute_ref>, except for state-assessed utility and <br />
         		<a id="pl.172.29"></a><var>172.29</var>railroad property, for the most recent year for which data is available.<br />
         		<br />
         		<a id="bill.12.35.0"></a><a id="pl.172.30"></a><var>172.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 35. Minnesota Statutes 2011 Supplement, section 276.04, subdivision 2, is <br />
         		<a id="pl.172.31"></a><var>172.31</var>amended to read:<br />
         		<a id="pl.172.32"></a><var>172.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Contents of tax statements.</b> (a) The treasurer shall provide for the <br />
         		<a id="pl.172.33"></a><var>172.33</var>printing of the tax statements. The commissioner of revenue shall prescribe the form of <br />
         		<a id="pl.173.1"></a><var>173.1</var>the property tax statement and its contents. The tax statement must not state or imply <br />
         		<a id="pl.173.2"></a><var>173.2</var>that property tax credits are paid by the state of Minnesota. The statement must contain <br />
         		<a id="pl.173.3"></a><var>173.3</var>a tabulated statement of the dollar amount due to each taxing authority and the amount <br />
         		<a id="pl.173.4"></a><var>173.4</var>of the state tax from the parcel of real property for which a particular tax statement is <br />
         		<a id="pl.173.5"></a><var>173.5</var>prepared. The dollar amounts attributable to the county, the state tax, the voter approved <br />
         		<a id="pl.173.6"></a><var>173.6</var>school tax, the other local school tax, the township or municipality, and the total of <br />
         		<a id="pl.173.7"></a><var>173.7</var>the metropolitan special taxing districts as defined in section 
         <statute_ref>275.065, subdivision 3</statute_ref>, <br />
         		<a id="pl.173.8"></a><var>173.8</var>paragraph (i), must be separately stated. The amounts due all other special taxing districts, <br />
         		<a id="pl.173.9"></a><var>173.9</var>if any, may be aggregated except that any levies made by the regional rail authorities in the <br />
         		<a id="pl.173.10"></a><var>173.10</var>county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter <br />
         		<a id="pl.173.11"></a><var>173.11</var>398A shall be listed on a separate line directly under the appropriate county's levy. If the <br />
         		<a id="pl.173.12"></a><var>173.12</var>county levy under this paragraph includes an amount for a lake improvement district as <br />
         		<a id="pl.173.13"></a><var>173.13</var>defined under sections 
         <statute_ref>103B.501</statute_ref> to 
         <statute_ref>103B.581</statute_ref>, the amount attributable for that purpose <br />
         		<a id="pl.173.14"></a><var>173.14</var>must be separately stated from the remaining county levy amount. In the case of Ramsey <br />
         		<a id="pl.173.15"></a><var>173.15</var>County, if the county levy under this paragraph includes an amount for public library <br />
         		<a id="pl.173.16"></a><var>173.16</var>service under section 
         <statute_ref>134.07</statute_ref>, the amount attributable for that purpose may be separated <br />
         		<a id="pl.173.17"></a><var>173.17</var>from the remaining county levy amount. The amount of the tax on homesteads qualifying <br />
         		<a id="pl.173.18"></a><var>173.18</var>under the senior citizens' property tax deferral program under chapter 290B is the total <br />
         		<a id="pl.173.19"></a><var>173.19</var>amount of property tax before subtraction of the deferred property tax amount. The <br />
         		<a id="pl.173.20"></a><var>173.20</var>amount of the tax on contamination value imposed under sections 
         <statute_ref>270.91</statute_ref> to 
         <statute_ref>270.98</statute_ref>, if any, <br />
         		<a id="pl.173.21"></a><var>173.21</var>must also be separately stated. The dollar amounts, including the dollar amount of any <br />
         		<a id="pl.173.22"></a><var>173.22</var>special assessments, may be rounded to the nearest even whole dollar. For purposes of this <br />
         		<a id="pl.173.23"></a><var>173.23</var>section whole odd-numbered dollars may be adjusted to the next higher even-numbered <br />
         		<a id="pl.173.24"></a><var>173.24</var>dollar. The amount of market value excluded under section 
         <statute_ref>273.11, subdivision 16</statute_ref>, if any, <br />
         		<a id="pl.173.25"></a><var>173.25</var>must also be listed on the tax statement.<br />
         		<a id="pl.173.26"></a><var>173.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) The property tax statements for manufactured homes and sectional structures <br />
         		<a id="pl.173.27"></a><var>173.27</var>taxed as personal property shall contain the same information that is required on the <br />
         		<a id="pl.173.28"></a><var>173.28</var>tax statements for real property.<br />
         		<a id="pl.173.29"></a><var>173.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) Real and personal property tax statements must contain the following information <br />
         		<a id="pl.173.30"></a><var>173.30</var>in the order given in this paragraph. The information must contain the current year tax <br />
         		<a id="pl.173.31"></a><var>173.31</var>information in the right column with the corresponding information for the previous year <br />
         		<a id="pl.173.32"></a><var>173.32</var>in a column on the left:<br />
         		<a id="pl.173.33"></a><var>173.33</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) the property's estimated market value under section 
         <statute_ref>273.11, subdivision 1</statute_ref>;<br />
         		<a id="pl.173.34"></a><var>173.34</var>(2) the property's homestead market value exclusion under section 
         <statute_ref>273.13</statute_ref>, <br />
         		<a id="pl.173.35"></a><var>173.35</var>subdivision 35;<br />
         		<a id="pl.174.1"></a><var>174.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) the property's taxable market value after reductions under sections 
         <statute_ref>273.11</statute_ref>, <br />
         		<a id="pl.174.2"></a><var>174.2</var>subdivisions 1a and 16, and 
         <statute_ref>273.13, subdivision 35</statute_ref> section 272.03, subdivision 15;<br />
         		<a id="pl.174.3"></a><var>174.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) the property's gross tax, before credits;<br />
         		<a id="pl.174.4"></a><var>174.4</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) for homestead agricultural properties, the credit under section 
         <statute_ref>273.1384</statute_ref>;<br />
         		<a id="pl.174.5"></a><var>174.5</var>&nbsp;&nbsp;&nbsp;&nbsp;(6) any credits received under sections 
         <statute_ref>273.119</statute_ref>; 
         <statute_ref>273.1234</statute_ref> or 
         <statute_ref>273.1235</statute_ref>; 
         <statute_ref>273.135</statute_ref>; <br />
         		
         <statute_ref><a id="pl.174.6"></a><var>174.6</var>273.1391
         </statute_ref>; 
         <statute_ref>273.1398, subdivision 4</statute_ref>; 
         <statute_ref>469.171</statute_ref>; and 
         <statute_ref>473H.10</statute_ref>, except that the amount of <br />
         		<a id="pl.174.7"></a><var>174.7</var>credit received under section 
         <statute_ref>273.135</statute_ref> must be separately stated and identified as "taconite <br />
         		<a id="pl.174.8"></a><var>174.8</var>tax relief"; and<br />
         		<a id="pl.174.9"></a><var>174.9</var>&nbsp;&nbsp;&nbsp;&nbsp;(7) the net tax payable in the manner required in paragraph (a).<br />
         		<a id="pl.174.10"></a><var>174.10</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) If the county uses envelopes for mailing property tax statements and if the county <br />
         		<a id="pl.174.11"></a><var>174.11</var>agrees, a taxing district may include a notice with the property tax statement notifying <br />
         		<a id="pl.174.12"></a><var>174.12</var>taxpayers when the taxing district will begin its budget deliberations for the current <br />
         		<a id="pl.174.13"></a><var>174.13</var>year, and encouraging taxpayers to attend the hearings. If the county allows notices to <br />
         		<a id="pl.174.14"></a><var>174.14</var>be included in the envelope containing the property tax statement, and if more than <br />
         		<a id="pl.174.15"></a><var>174.15</var>one taxing district relative to a given property decides to include a notice with the tax <br />
         		<a id="pl.174.16"></a><var>174.16</var>statement, the county treasurer or auditor must coordinate the process and may combine <br />
         		<a id="pl.174.17"></a><var>174.17</var>the information on a single announcement.<br />
         		<br />
         		<a id="bill.12.36.0"></a><a id="pl.174.18"></a><var>174.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 36. Minnesota Statutes 2010, section 276A.01, subdivision 10, is amended to read:<br />
         		<a id="pl.174.19"></a><var>174.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 10. <b>Adjusted </b><b>market value.</b> "Adjusted market value" of real and personal <br />
         		<a id="pl.174.20"></a><var>174.20</var>property within a municipality means the assessor's estimated taxable market value, <br />
         		<a id="pl.174.21"></a><var>174.21</var>as defined in section 272.03, of all real and personal property, including the value of <br />
         		<a id="pl.174.22"></a><var>174.22</var>manufactured housing, within the municipality. For purposes of sections 
         <statute_ref>276A.01</statute_ref> to <br />
         		<a id="pl.174.23"></a><var>174.23</var><statute_ref>276A.09</statute_ref>, the commissioner of revenue shall annually make determinations and reports <br />
         		<a id="pl.174.24"></a><var>174.24</var>with respect to each municipality which are comparable to those it makes for school <br />
         		<a id="pl.174.25"></a><var>174.25</var>districts, adjusted for sales ratios in a manner similar to the adjustments made to city and <br />
         		<a id="pl.174.26"></a><var>174.26</var>town net tax capacities under section 
         <statute_ref>127A.48, subdivisions 1 to 6</statute_ref>, in the same manner <br />
         		<a id="pl.174.27"></a><var>174.27</var>and at the same times prescribed by the subdivision. The commissioner of revenue shall <br />
         		<a id="pl.174.28"></a><var>174.28</var>annually determine, for each municipality, information comparable to that required by <br />
         		<a id="pl.174.29"></a><var>174.29</var>section 
         <statute_ref>475.53, subdivision 4</statute_ref>, for school districts, as soon as practicable after it becomes <br />
         		<a id="pl.174.30"></a><var>174.30</var>available. The commissioner of revenue shall then compute the equalized market value of <br />
         		<a id="pl.174.31"></a><var>174.31</var>property within each municipality.<br />
         		<a id="pl.174.32"></a><var>174.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.12.37.0"></a><a id="pl.174.33"></a><var>174.33</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 37. Minnesota Statutes 2010, section 276A.01, subdivision 12, is amended to read:<br />
         		<a id="pl.175.1"></a><var>175.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 12. <b>Fiscal capacity.</b> "Fiscal capacity" of a municipality means its valuation <br />
         		<a id="pl.175.2"></a><var>175.2</var>adjusted market value, determined as of January 2 of any year, divided by its population, <br />
         		<a id="pl.175.3"></a><var>175.3</var>determined as of a date in the same year.<br />
         		<br />
         		<a id="bill.12.38.0"></a><a id="pl.175.4"></a><var>175.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 38. Minnesota Statutes 2010, section 276A.01, subdivision 13, is amended to read:<br />
         		<a id="pl.175.5"></a><var>175.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 13. <b>Average fiscal capacity.</b> "Average fiscal capacity" of municipalities <br />
         		<a id="pl.175.6"></a><var>175.6</var>means the sum of the valuations adjusted market values of all municipalities, determined <br />
         		<a id="pl.175.7"></a><var>175.7</var>as of January 2 of any year, divided by the sum of their populations, determined as of <br />
         		<a id="pl.175.8"></a><var>175.8</var>a date in the same year.<br />
         		<br />
         		<a id="bill.12.39.0"></a><a id="pl.175.9"></a><var>175.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 39. Minnesota Statutes 2010, section 276A.01, subdivision 15, is amended to read:<br />
         		<a id="pl.175.10"></a><var>175.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 15. <b>Net tax capacity.</b> "Net tax capacity" means the taxable market value of <br />
         		<a id="pl.175.11"></a><var>175.11</var>real and personal property multiplied by its net tax capacity rates in section 
         <statute_ref>273.13</statute_ref>.<br />
         		<br />
         		<a id="bill.12.40.0"></a><a id="pl.175.12"></a><var>175.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 40. Minnesota Statutes 2010, section 287.08, is amended to read:<br />
         		<a id="pl.175.13"></a><var>175.13</var><b>287.08 TAX, HOW PAYABLE; RECEIPTS.</b><br />
         		<a id="pl.175.14"></a><var>175.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(a) The tax imposed by sections 
         <statute_ref>287.01</statute_ref> to 
         <statute_ref>287.12</statute_ref> must be paid to the treasurer of <br />
         		<a id="pl.175.15"></a><var>175.15</var>any county in this state in which the real property or some part is located at or before <br />
         		<a id="pl.175.16"></a><var>175.16</var>the time of filing the mortgage for record. The treasurer shall endorse receipt on the <br />
         		<a id="pl.175.17"></a><var>175.17</var>mortgage and the receipt is conclusive proof that the tax has been paid in the amount <br />
         		<a id="pl.175.18"></a><var>175.18</var>stated and authorizes any county recorder or registrar of titles to record the mortgage. Its <br />
         		<a id="pl.175.19"></a><var>175.19</var>form, in substance, shall be "registration tax hereon of ..................... dollars paid." If the <br />
         		<a id="pl.175.20"></a><var>175.20</var>mortgage is exempt from taxation the endorsement shall, in substance, be "exempt from <br />
         		<a id="pl.175.21"></a><var>175.21</var>registration tax." In either case the receipt must be signed by the treasurer. In case the <br />
         		<a id="pl.175.22"></a><var>175.22</var>treasurer is unable to determine whether a claim of exemption should be allowed, the tax <br />
         		<a id="pl.175.23"></a><var>175.23</var>must be paid as in the case of a taxable mortgage. For documents submitted electronically, <br />
         		<a id="pl.175.24"></a><var>175.24</var>the endorsements and tax amount shall be affixed electronically and no signature by the <br />
         		<a id="pl.175.25"></a><var>175.25</var>treasurer will be required. The actual payment method must be arranged in advance <br />
         		<a id="pl.175.26"></a><var>175.26</var>between the submitter and the receiving county.<br />
         		<a id="pl.175.27"></a><var>175.27</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) The county treasurer may refund in whole or in part any mortgage registry tax <br />
         		<a id="pl.175.28"></a><var>175.28</var>overpayment if a written application by the taxpayer is submitted to the county treasurer <br />
         		<a id="pl.175.29"></a><var>175.29</var>within 3-1/2 years from the date of the overpayment. If the county has not issued a denial <br />
         		<a id="pl.175.30"></a><var>175.30</var>of the application, the taxpayer may bring an action in Tax Court in the county in which <br />
         		<a id="pl.175.31"></a><var>175.31</var>the tax was paid at any time after the expiration of six months from the time that the <br />
         		<a id="pl.175.32"></a><var>175.32</var>application was submitted. A denial of refund may be appealed within 60 days from <br />
         		<a id="pl.175.33"></a><var>175.33</var>the date of the denial by bringing an action in Tax Court in the county in which the tax <br />
         		<a id="pl.176.1"></a><var>176.1</var>was paid. The action is commenced by the serving of a petition for relief on the county <br />
         		<a id="pl.176.2"></a><var>176.2</var>treasurer, and by filing a copy with the court. The county attorney shall defend the action. <br />
         		<a id="pl.176.3"></a><var>176.3</var>The county treasurer shall notify the treasurer of each county that has or would receive a <br />
         		<a id="pl.176.4"></a><var>176.4</var>portion of the tax as paid.<br />
         		<a id="pl.176.5"></a><var>176.5</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) If the county treasurer determines a refund should be paid, or if a refund is <br />
         		<a id="pl.176.6"></a><var>176.6</var>ordered by the court, the county treasurer of each county that actually received a portion <br />
         		<a id="pl.176.7"></a><var>176.7</var>of the tax shall immediately pay a proportionate share of three percent of the refund <br />
         		<a id="pl.176.8"></a><var>176.8</var>using any available county funds. The county treasurer of each county that received, or <br />
         		<a id="pl.176.9"></a><var>176.9</var>would have received, a portion of the tax shall also pay their county's proportionate share <br />
         		<a id="pl.176.10"></a><var>176.10</var>of the remaining 97 percent of the court-ordered refund on or before the 20th day of the <br />
         		<a id="pl.176.11"></a><var>176.11</var>following month using solely the mortgage registry tax funds that would be paid to the <br />
         		<a id="pl.176.12"></a><var>176.12</var>commissioner of revenue on that date under section 
         <statute_ref>287.12</statute_ref>. If the funds on hand under <br />
         		<a id="pl.176.13"></a><var>176.13</var>this procedure are insufficient to fully fund 97 percent of the court-ordered refund, the <br />
         		<a id="pl.176.14"></a><var>176.14</var>county treasurer of the county in which the action was brought shall file a claim with the <br />
         		<a id="pl.176.15"></a><var>176.15</var>commissioner of revenue under section 
         <statute_ref>16A.48</statute_ref> for the remaining portion of 97 percent of <br />
         		<a id="pl.176.16"></a><var>176.16</var>the refund, and shall pay over the remaining portion upon receipt of a warrant from the <br />
         		<a id="pl.176.17"></a><var>176.17</var>state issued pursuant to the claim.<br />
         		<a id="pl.176.18"></a><var>176.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) When any mortgage covers real property located in more than one county in this <br />
         		<a id="pl.176.19"></a><var>176.19</var>state the total tax must be paid to the treasurer of the county where the mortgage is first <br />
         		<a id="pl.176.20"></a><var>176.20</var>presented for recording, and the payment must be receipted as provided in paragraph <br />
         		<a id="pl.176.21"></a><var>176.21</var>(a). If the principal debt or obligation secured by such a multiple county mortgage <br />
         		<a id="pl.176.22"></a><var>176.22</var>exceeds $10,000,000, the nonstate portion of the tax must be divided and paid over by <br />
         		<a id="pl.176.23"></a><var>176.23</var>the county treasurer receiving it, on or before the 20th day of each month after receipt, <br />
         		<a id="pl.176.24"></a><var>176.24</var>to the county or counties entitled in the ratio that the estimated market value of the real <br />
         		<a id="pl.176.25"></a><var>176.25</var>property covered by the mortgage in each county bears to the estimated market value of <br />
         		<a id="pl.176.26"></a><var>176.26</var>all the real property in this state described in the mortgage. In making the division and <br />
         		<a id="pl.176.27"></a><var>176.27</var>payment the county treasurer shall send a statement giving the description of the real <br />
         		<a id="pl.176.28"></a><var>176.28</var>property described in the mortgage and the estimated market value of the part located in <br />
         		<a id="pl.176.29"></a><var>176.29</var>each county. For this purpose, the treasurer of any county may require the treasurer of <br />
         		<a id="pl.176.30"></a><var>176.30</var>any other county to certify to the former the estimated market valuation value of any tract <br />
         		<a id="pl.176.31"></a><var>176.31</var>of real property in any mortgage.<br />
         		<a id="pl.176.32"></a><var>176.32</var>&nbsp;&nbsp;&nbsp;&nbsp;(e) The mortgagor must pay the tax imposed by sections 
         <statute_ref>287.01</statute_ref> to 
         <statute_ref>287.12</statute_ref>. The <br />
         		<a id="pl.176.33"></a><var>176.33</var>mortgagee may undertake to collect and remit the tax on behalf of the mortgagor. If the <br />
         		<a id="pl.176.34"></a><var>176.34</var>mortgagee collects money from the mortgagor to remit the tax on behalf of the mortgagor, <br />
         		<a id="pl.176.35"></a><var>176.35</var>the mortgagee has a fiduciary duty to remit the tax on behalf of the mortgagor as to the <br />
         		<a id="pl.177.1"></a><var>177.1</var>amount of the tax collected for that purpose and the mortgagor is relieved of any further <br />
         		<a id="pl.177.2"></a><var>177.2</var>obligation to pay the tax as to the amount collected by the mortgagee for this purpose.<br />
         		<br />
         		<a id="bill.12.41.0"></a><a id="pl.177.3"></a><var>177.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 41. Minnesota Statutes 2010, section 287.23, subdivision 1, is amended to read:<br />
         		<a id="pl.177.4"></a><var>177.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Real property outside county.</b> If any taxable deed or instrument <br />
         		<a id="pl.177.5"></a><var>177.5</var>describes any real property located in more than one county in this state, the total tax must <br />
         		<a id="pl.177.6"></a><var>177.6</var>be paid to the treasurer of the county where the document is first presented for recording, <br />
         		<a id="pl.177.7"></a><var>177.7</var>and the payment must be receipted as provided in section 
         <statute_ref>287.08</statute_ref>. If the net consideration <br />
         		<a id="pl.177.8"></a><var>177.8</var>exceeds $700,000, the nonstate portion of the tax must be divided and paid over by the <br />
         		<a id="pl.177.9"></a><var>177.9</var>county treasurer receiving it, on or before the 20th day of each month after receipt, to <br />
         		<a id="pl.177.10"></a><var>177.10</var>the county or counties entitled in the ratio which the estimated market value of the real <br />
         		<a id="pl.177.11"></a><var>177.11</var>property covered by the document in each county bears to the estimated market value of <br />
         		<a id="pl.177.12"></a><var>177.12</var>all the real property in this state described in the document. In making the division and <br />
         		<a id="pl.177.13"></a><var>177.13</var>payment the county treasurer shall send a statement to the other involved counties giving <br />
         		<a id="pl.177.14"></a><var>177.14</var>the description of the real property described in the document and the estimated market <br />
         		<a id="pl.177.15"></a><var>177.15</var>value of the part located in each county. The treasurer of any county may require the <br />
         		<a id="pl.177.16"></a><var>177.16</var>treasurer of any other county to certify to the former the estimated market valuation value <br />
         		<a id="pl.177.17"></a><var>177.17</var>of any parcel of real property for this purpose.<br />
         		<br />
         		<a id="bill.12.42.0"></a><a id="pl.177.18"></a><var>177.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 42. Minnesota Statutes 2010, section 353G.08, subdivision 2, is amended to read:<br />
         		<a id="pl.177.19"></a><var>177.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Cash flow funding requirement.</b> If the executive director determines that <br />
         		<a id="pl.177.20"></a><var>177.20</var>an account in the voluntary statewide lump-sum volunteer firefighter retirement plan has <br />
         		<a id="pl.177.21"></a><var>177.21</var>insufficient assets to meet the service pensions determined payable from the account, <br />
         		<a id="pl.177.22"></a><var>177.22</var>the executive director shall certify the amount of the potential service pension shortfall <br />
         		<a id="pl.177.23"></a><var>177.23</var>to the municipality or municipalities and the municipality or municipalities shall make <br />
         		<a id="pl.177.24"></a><var>177.24</var>an additional employer contribution to the account within ten days of the certification. <br />
         		<a id="pl.177.25"></a><var>177.25</var>If more than one municipality is associated with the account, unless the municipalities <br />
         		<a id="pl.177.26"></a><var>177.26</var>agree to a different allocation, the municipalities shall allocate the additional employer <br />
         		<a id="pl.177.27"></a><var>177.27</var>contribution one-half in proportion to the population of each municipality and one-half in <br />
         		<a id="pl.177.28"></a><var>177.28</var>proportion to the estimated market value of the property of each municipality.<br />
         		<br />
         		<a id="bill.12.43.0"></a><a id="pl.177.29"></a><var>177.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 43. Minnesota Statutes 2010, section 365.025, subdivision 4, is amended to read:<br />
         		<a id="pl.177.30"></a><var>177.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Major purchases: notice, petition, election.</b> Before buying anything <br />
         		<a id="pl.177.31"></a><var>177.31</var>under subdivision 2 that costs more than 0.24177 percent of the estimated market value of <br />
         		<a id="pl.177.32"></a><var>177.32</var>the town, the town must follow this subdivision.<br />
         		<a id="pl.178.1"></a><var>178.1</var>The town must publish in its official newspaper the board's resolution to pay for the <br />
         		<a id="pl.178.2"></a><var>178.2</var>property over time. Then a petition for an election on the contract may be filed with the <br />
         		<a id="pl.178.3"></a><var>178.3</var>clerk. The petition must be filed within ten days after the resolution is published. To <br />
         		<a id="pl.178.4"></a><var>178.4</var>require the election the petition must be signed by a number of voters equal to ten percent <br />
         		<a id="pl.178.5"></a><var>178.5</var>of the voters at the last regular town election. The contract then must be approved by a <br />
         		<a id="pl.178.6"></a><var>178.6</var>majority of those voting on the question. The question may be voted on at a regular <br />
         		<a id="pl.178.7"></a><var>178.7</var>or special election.<br />
         		<br />
         		<a id="bill.12.44.0"></a><a id="pl.178.8"></a><var>178.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 44. Minnesota Statutes 2010, section 366.095, subdivision 1, is amended to read:<br />
         		<a id="pl.178.9"></a><var>178.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Certificates of indebtedness.</b> The town board may issue certificates <br />
         		<a id="pl.178.10"></a><var>178.10</var>of indebtedness within the debt limits for a town purpose otherwise authorized by law. <br />
         		<a id="pl.178.11"></a><var>178.11</var>The certificates shall be payable in not more than ten years and be issued on the terms and <br />
         		<a id="pl.178.12"></a><var>178.12</var>in the manner as the board may determine. If the amount of the certificates to be issued <br />
         		<a id="pl.178.13"></a><var>178.13</var>exceeds 0.25 percent of the estimated market value of the town, they shall not be issued <br />
         		<a id="pl.178.14"></a><var>178.14</var>for at least ten days after publication in a newspaper of general circulation in the town of <br />
         		<a id="pl.178.15"></a><var>178.15</var>the board's resolution determining to issue them. If within that time, a petition asking for <br />
         		<a id="pl.178.16"></a><var>178.16</var>an election on the proposition signed by voters equal to ten percent of the number of voters <br />
         		<a id="pl.178.17"></a><var>178.17</var>at the last regular town election is filed with the clerk, the certificates shall not be issued <br />
         		<a id="pl.178.18"></a><var>178.18</var>until their issuance has been approved by a majority of the votes cast on the question at <br />
         		<a id="pl.178.19"></a><var>178.19</var>a regular or special election. A tax levy shall be made to pay the principal and interest <br />
         		<a id="pl.178.20"></a><var>178.20</var>on the certificates as in the case of bonds.<br />
         		<br />
         		<a id="bill.12.45.0"></a><a id="pl.178.21"></a><var>178.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 45. Minnesota Statutes 2010, section 366.27, is amended to read:<br />
         		<a id="pl.178.22"></a><var>178.22</var><b>366.27 FIREFIGHTERS' RELIEF; TAX LEVY.</b><br />
         		<a id="pl.178.23"></a><var>178.23</var>The town board of any town in this state having therein a platted portion on <br />
         		<a id="pl.178.24"></a><var>178.24</var>which resides 1,200 or more people, and wherein a duly incorporated firefighters' relief <br />
         		<a id="pl.178.25"></a><var>178.25</var>association is located may each year levy a tax not to exceed 0.00806 percent of taxable <br />
         		<a id="pl.178.26"></a><var>178.26</var>estimated market value for the benefit of the relief association.<br />
         		<br />
         		<a id="bill.12.46.0"></a><a id="pl.178.27"></a><var>178.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 46. Minnesota Statutes 2010, section 368.01, subdivision 23, is amended to read:<br />
         		<a id="pl.178.28"></a><var>178.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 23. <b>Financing purchase of certain equipment.</b> The town board may issue <br />
         		<a id="pl.178.29"></a><var>178.29</var>certificates of indebtedness within debt limits to purchase fire or police equipment or <br />
         		<a id="pl.178.30"></a><var>178.30</var>ambulance equipment or street construction or maintenance equipment. The certificates <br />
         		<a id="pl.178.31"></a><var>178.31</var>shall be payable in not more than five years and be issued on terms and in the manner <br />
         		<a id="pl.178.32"></a><var>178.32</var>as the board may determine. If the amount of the certificates to be issued to finance a <br />
         		<a id="pl.178.33"></a><var>178.33</var>purchase exceeds 0.24177 percent of the estimated market value of the town, excluding <br />
         		<a id="pl.179.1"></a><var>179.1</var>money and credits, they shall not be issued for at least ten days after publication in the <br />
         		<a id="pl.179.2"></a><var>179.2</var>official newspaper of a town board resolution determining to issue them. If before the end <br />
         		<a id="pl.179.3"></a><var>179.3</var>of that time, a petition asking for an election on the proposition signed by voters equal <br />
         		<a id="pl.179.4"></a><var>179.4</var>to ten percent of the number of voters at the last regular town election is filed with the <br />
         		<a id="pl.179.5"></a><var>179.5</var>clerk, the certificates shall not be issued until the proposition of their issuance has been <br />
         		<a id="pl.179.6"></a><var>179.6</var>approved by a majority of the votes cast on the question at a regular or special election. <br />
         		<a id="pl.179.7"></a><var>179.7</var>A tax levy shall be made for the payment of the principal and interest on the certificates <br />
         		<a id="pl.179.8"></a><var>179.8</var>as in the case of bonds.<br />
         		<br />
         		<a id="bill.12.47.0"></a><a id="pl.179.9"></a><var>179.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 47. Minnesota Statutes 2010, section 368.47, is amended to read:<br />
         		<a id="pl.179.10"></a><var>179.10</var><b>368.47 TOWNS MAY BE DISSOLVED.</b><br />
         		<a id="pl.179.11"></a><var>179.11</var>(1) When the voters residing within a town have failed to elect any town officials for <br />
         		<a id="pl.179.12"></a><var>179.12</var>more than ten years continuously;<br />
         		<a id="pl.179.13"></a><var>179.13</var>(2) when a town has failed for a period of ten years to exercise any of the powers <br />
         		<a id="pl.179.14"></a><var>179.14</var>and functions of a town;<br />
         		<a id="pl.179.15"></a><var>179.15</var>(3) when the estimated market value of a town drops to less than $165,000;<br />
         		<a id="pl.179.16"></a><var>179.16</var>(4) when the tax delinquency of a town, exclusive of taxes that are delinquent or <br />
         		<a id="pl.179.17"></a><var>179.17</var>unpaid because they are contested in proceedings for the enforcement of taxes, amounts to <br />
         		<a id="pl.179.18"></a><var>179.18</var>12 percent of its market value; or<br />
         		<a id="pl.179.19"></a><var>179.19</var>(5) when the state or federal government has acquired title to 50 percent of the <br />
         		<a id="pl.179.20"></a><var>179.20</var>real estate of a town,<br />
         		<a id="pl.179.21"></a><var>179.21</var>which facts, or any of them, may be found and determined by the resolution of the county <br />
         		<a id="pl.179.22"></a><var>179.22</var>board of the county in which the town is located, according to the official records in the <br />
         		<a id="pl.179.23"></a><var>179.23</var>office of the county auditor, the county board by resolution may declare the town, naming <br />
         		<a id="pl.179.24"></a><var>179.24</var>it, dissolved and no longer entitled to exercise any of the powers or functions of a town.<br />
         		<a id="pl.179.25"></a><var>179.25</var>In Cass, Itasca, and St. Louis Counties, before the dissolution is effective the voters <br />
         		<a id="pl.179.26"></a><var>179.26</var>of the town shall express their approval or disapproval. The town clerk shall, upon a <br />
         		<a id="pl.179.27"></a><var>179.27</var>petition signed by a majority of the registered voters of the town, filed with the clerk at <br />
         		<a id="pl.179.28"></a><var>179.28</var>least 60 days before a regular or special town election, give notice at the same time and <br />
         		<a id="pl.179.29"></a><var>179.29</var>in the same manner of the election that the question of dissolution of the town will be <br />
         		<a id="pl.179.30"></a><var>179.30</var>submitted for determination at the election. At the election the question shall be voted <br />
         		<a id="pl.179.31"></a><var>179.31</var>upon by a separate ballot, the terms of which shall be either "for dissolution" or "against <br />
         		<a id="pl.179.32"></a><var>179.32</var>dissolution." The ballot shall be deposited in a separate ballot box and the result of the <br />
         		<a id="pl.179.33"></a><var>179.33</var>voting canvassed, certified, and returned in the same manner and at the same time as <br />
         		<a id="pl.179.34"></a><var>179.34</var>other facts and returns of the election. If a majority of the votes cast at the election are <br />
         		<a id="pl.180.1"></a><var>180.1</var>for dissolution, the town shall be dissolved. If a majority of the votes cast at the election <br />
         		<a id="pl.180.2"></a><var>180.2</var>are against dissolution, the town shall not be dissolved.<br />
         		<a id="pl.180.3"></a><var>180.3</var>When a town is dissolved under sections 
         <statute_ref>368.47</statute_ref> to 
         <statute_ref>368.49</statute_ref> the county shall acquire <br />
         		<a id="pl.180.4"></a><var>180.4</var>title to any telephone company or other business conducted by the town. The business <br />
         		<a id="pl.180.5"></a><var>180.5</var>shall be operated by the board of county commissioners until it can be sold. The <br />
         		<a id="pl.180.6"></a><var>180.6</var>subscribers or patrons of the business shall have the first opportunity of purchase. If the <br />
         		<a id="pl.180.7"></a><var>180.7</var>town has any outstanding indebtedness chargeable to the business, the county auditor shall <br />
         		<a id="pl.180.8"></a><var>180.8</var>levy a tax against the property situated in the dissolved town to pay the indebtedness <br />
         		<a id="pl.180.9"></a><var>180.9</var>as it becomes due.<br />
         		<br />
         		<a id="bill.12.48.0"></a><a id="pl.180.10"></a><var>180.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 48. Minnesota Statutes 2010, section 370.01, is amended to read:<br />
         		<a id="pl.180.11"></a><var>180.11</var><b>370.01 CHANGE OF BOUNDARIES; CREATION OF NEW COUNTIES.</b><br />
         		<a id="pl.180.12"></a><var>180.12</var>The boundaries of counties may be changed by taking territory from a county and <br />
         		<a id="pl.180.13"></a><var>180.13</var>attaching it to an adjoining county, and new counties may be established out of territory of <br />
         		<a id="pl.180.14"></a><var>180.14</var>one or more existing counties. A new county shall contain at least 400 square miles and <br />
         		<a id="pl.180.15"></a><var>180.15</var>have at least 4,000 inhabitants. A proposed new county must have a total taxable estimated <br />
         		<a id="pl.180.16"></a><var>180.16</var>market value of at least 35 percent of (i) the total taxable estimated market value of the <br />
         		<a id="pl.180.17"></a><var>180.17</var>existing county, or (ii) the average total taxable estimated market value of the existing <br />
         		<a id="pl.180.18"></a><var>180.18</var>counties, included in the proposition. The determination of the taxable estimated market <br />
         		<a id="pl.180.19"></a><var>180.19</var>value of a county must be made by the commissioner of revenue. An existing county shall <br />
         		<a id="pl.180.20"></a><var>180.20</var>not be reduced in area below 400 square miles, have less than 4,000 inhabitants, or have a <br />
         		<a id="pl.180.21"></a><var>180.21</var>total taxable estimated market value of less than that required of a new county.<br />
         		<a id="pl.180.22"></a><var>180.22</var>No change in the boundaries of any county having an area of more than 2,500 square <br />
         		<a id="pl.180.23"></a><var>180.23</var>miles, whether by the creation of a new county, or otherwise, shall detach from the existing <br />
         		<a id="pl.180.24"></a><var>180.24</var>county any territory within 12 miles of the county seat.<br />
         		<br />
         		<a id="bill.12.49.0"></a><a id="pl.180.25"></a><var>180.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 49. Minnesota Statutes 2010, section 373.40, subdivision 1, is amended to read:<br />
         		<a id="pl.180.26"></a><var>180.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Definitions.</b> For purposes of this section, the following terms have <br />
         		<a id="pl.180.27"></a><var>180.27</var>the meanings given.<br />
         		<a id="pl.180.28"></a><var>180.28</var>(a) "Bonds" means an obligation as defined under section 
         <statute_ref>475.51</statute_ref>.<br />
         		<a id="pl.180.29"></a><var>180.29</var>(b) "Capital improvement" means acquisition or betterment of public lands, <br />
         		<a id="pl.180.30"></a><var>180.30</var>buildings, or other improvements within the county for the purpose of a county courthouse, <br />
         		<a id="pl.180.31"></a><var>180.31</var>administrative building, health or social service facility, correctional facility, jail, law <br />
         		<a id="pl.180.32"></a><var>180.32</var>enforcement center, hospital, morgue, library, park, qualified indoor ice arena, roads and <br />
         		<a id="pl.180.33"></a><var>180.33</var>bridges, and the acquisition of development rights in the form of conservation easements <br />
         		<a id="pl.180.34"></a><var>180.34</var>under chapter 84C. An improvement must have an expected useful life of five years or <br />
         		<a id="pl.181.1"></a><var>181.1</var>more to qualify. "Capital improvement" does not include a recreation or sports facility <br />
         		<a id="pl.181.2"></a><var>181.2</var>building (such as, but not limited to, a gymnasium, ice arena, racquet sports facility, <br />
         		<a id="pl.181.3"></a><var>181.3</var>swimming pool, exercise room or health spa), unless the building is part of an outdoor <br />
         		<a id="pl.181.4"></a><var>181.4</var>park facility and is incidental to the primary purpose of outdoor recreation.<br />
         		<a id="pl.181.5"></a><var>181.5</var>(c) "Metropolitan county" means a county located in the seven-county metropolitan <br />
         		<a id="pl.181.6"></a><var>181.6</var>area as defined in section 
         <statute_ref>473.121</statute_ref> or a county with a population of 90,000 or more.<br />
         		<a id="pl.181.7"></a><var>181.7</var>(d) "Population" means the population established by the most recent of the <br />
         		<a id="pl.181.8"></a><var>181.8</var>following (determined as of the date the resolution authorizing the bonds was adopted):<br />
         		<a id="pl.181.9"></a><var>181.9</var>(1) the federal decennial census,<br />
         		<a id="pl.181.10"></a><var>181.10</var>(2) a special census conducted under contract by the United States Bureau of the <br />
         		<a id="pl.181.11"></a><var>181.11</var>Census, or<br />
         		<a id="pl.181.12"></a><var>181.12</var>(3) a population estimate made either by the Metropolitan Council or by the state <br />
         		<a id="pl.181.13"></a><var>181.13</var>demographer under section 
         <statute_ref>4A.02</statute_ref>.<br />
         		<a id="pl.181.14"></a><var>181.14</var>(e) "Qualified indoor ice arena" means a facility that meets the requirements of <br />
         		<a id="pl.181.15"></a><var>181.15</var>section 
         <statute_ref>373.43</statute_ref>.<br />
         		<a id="pl.181.16"></a><var>181.16</var>(f) "Tax capacity" means total taxable market value, but does not include captured <br />
         		<a id="pl.181.17"></a><var>181.17</var>market value.<br />
         		<br />
         		<a id="bill.12.50.0"></a><a id="pl.181.18"></a><var>181.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 50. Minnesota Statutes 2010, section 373.40, subdivision 4, is amended to read:<br />
         		<a id="pl.181.19"></a><var>181.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Limitations on amount.</b> A county may not issue bonds under this section <br />
         		<a id="pl.181.20"></a><var>181.20</var>if the maximum amount of principal and interest to become due in any year on all the <br />
         		<a id="pl.181.21"></a><var>181.21</var>outstanding bonds issued pursuant to this section (including the bonds to be issued) will <br />
         		<a id="pl.181.22"></a><var>181.22</var>equal or exceed 0.12 percent of taxable the estimated market value of property in the <br />
         		<a id="pl.181.23"></a><var>181.23</var>county. Calculation of the limit must be made using the taxable estimated market value for <br />
         		<a id="pl.181.24"></a><var>181.24</var>the taxes payable year in which the obligations are issued and sold. This section does not <br />
         		<a id="pl.181.25"></a><var>181.25</var>limit the authority to issue bonds under any other special or general law.<br />
         		<br />
         		<a id="bill.12.51.0"></a><a id="pl.181.26"></a><var>181.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 51. Minnesota Statutes 2010, section 375.167, subdivision 1, is amended to read:<br />
         		<a id="pl.181.27"></a><var>181.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Appropriations.</b> Notwithstanding any contrary law, a county board <br />
         		<a id="pl.181.28"></a><var>181.28</var>may appropriate from the general revenue fund to any nonprofit corporation a sum not <br />
         		<a id="pl.181.29"></a><var>181.29</var>to exceed 0.00604 percent of taxable estimated market value to provide legal assistance <br />
         		<a id="pl.181.30"></a><var>181.30</var>to persons who are unable to afford private legal counsel.<br />
         		<br />
         		<a id="bill.12.52.0"></a><a id="pl.181.31"></a><var>181.31</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 52. Minnesota Statutes 2010, section 375.18, subdivision 3, is amended to read:<br />
         		<a id="pl.181.32"></a><var>181.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Courthouse.</b> Each county board may erect, furnish, and maintain a <br />
         		<a id="pl.181.33"></a><var>181.33</var>suitable courthouse. No indebtedness shall be created for a courthouse in excess of an <br />
         		<a id="pl.182.1"></a><var>182.1</var>amount equal to a levy of 0.04030 percent of taxable estimated market value without the <br />
         		<a id="pl.182.2"></a><var>182.2</var>approval of a majority of the voters of the county voting on the question of issuing the <br />
         		<a id="pl.182.3"></a><var>182.3</var>obligation at an election.<br />
         		<br />
         		<a id="bill.12.53.0"></a><a id="pl.182.4"></a><var>182.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 53. Minnesota Statutes 2010, section 375.555, is amended to read:<br />
         		<a id="pl.182.5"></a><var>182.5</var><b>375.555 FUNDING.</b><br />
         		<a id="pl.182.6"></a><var>182.6</var>To implement the county emergency jobs program, the county board may expend <br />
         		<a id="pl.182.7"></a><var>182.7</var>an amount equal to what would be generated by a levy of 0.01209 percent of taxable <br />
         		<a id="pl.182.8"></a><var>182.8</var>estimated market value. The money to be expended may be from any available funds <br />
         		<a id="pl.182.9"></a><var>182.9</var>not otherwise earmarked.<br />
         		<br />
         		<a id="bill.12.54.0"></a><a id="pl.182.10"></a><var>182.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 54. Minnesota Statutes 2010, section 383B.152, is amended to read:<br />
         		<a id="pl.182.11"></a><var>182.11</var><b>383B.152 BUILDING AND MAINTENANCE FUND.</b><br />
         		<a id="pl.182.12"></a><var>182.12</var>The county board may by resolution levy a tax to provide money which shall be kept <br />
         		<a id="pl.182.13"></a><var>182.13</var>in a fund known as the county reserve building and maintenance fund. Money in the fund <br />
         		<a id="pl.182.14"></a><var>182.14</var>shall be used solely for the construction, maintenance, and equipping of county buildings <br />
         		<a id="pl.182.15"></a><var>182.15</var>that are constructed or maintained by the board. The levy shall not be subject to any limit <br />
         		<a id="pl.182.16"></a><var>182.16</var>fixed by any other law or by any board of tax levy or other corresponding body, but shall <br />
         		<a id="pl.182.17"></a><var>182.17</var>not exceed 0.02215 percent of taxable estimated market value, less the amount required by <br />
         		<a id="pl.182.18"></a><var>182.18</var>chapter 475 to be levied in the year for the payment of the principal of and interest on all <br />
         		<a id="pl.182.19"></a><var>182.19</var>bonds issued pursuant to Extra Session Laws 1967, chapter 47, section 1.<br />
         		<br />
         		<a id="bill.12.55.0"></a><a id="pl.182.20"></a><var>182.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 55. Minnesota Statutes 2010, section 383B.245, is amended to read:<br />
         		<a id="pl.182.21"></a><var>182.21</var><b>383B.245 LIBRARY LEVY.</b><br />
         		<a id="pl.182.22"></a><var>182.22</var>&nbsp;&nbsp;&nbsp;&nbsp;(a) The county board may levy a tax on the taxable property within the county to <br />
         		<a id="pl.182.23"></a><var>182.23</var>acquire, better, and construct county library buildings and branches and to pay principal <br />
         		<a id="pl.182.24"></a><var>182.24</var>and interest on bonds issued for that purpose.<br />
         		<a id="pl.182.25"></a><var>182.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) The county board may by resolution adopted by a five-sevenths vote issue and <br />
         		<a id="pl.182.26"></a><var>182.26</var>sell general obligation bonds of the county in the manner provided in sections 
         <statute_ref>475.60</statute_ref> to <br />
         		
         <statute_ref><a id="pl.182.27"></a><var>182.27</var>475.73
         </statute_ref>. The bonds shall not be subject to the limitations of sections 
         <statute_ref>475.51</statute_ref> to 
         <statute_ref>475.59</statute_ref>, <br />
         		<a id="pl.182.28"></a><var>182.28</var>but the maturity years and amounts and interest rates of each series of bonds shall be <br />
         		<a id="pl.182.29"></a><var>182.29</var>fixed so that the maximum amount of principal and interest to become due in any year, <br />
         		<a id="pl.182.30"></a><var>182.30</var>on the bonds of that series and of all outstanding series issued by or for the purposes of <br />
         		<a id="pl.182.31"></a><var>182.31</var>libraries, shall not exceed an amount equal to 0.01612 percent of estimated market value <br />
         		<a id="pl.182.32"></a><var>182.32</var>of all taxable property in the county as last finally equalized before the issuance of the new <br />
         		<a id="pl.183.1"></a><var>183.1</var>series. When the tax levy authorized in this section is collected it shall be appropriated <br />
         		<a id="pl.183.2"></a><var>183.2</var>and credited to a debt service fund for the bonds in amounts required each year in lieu of a <br />
         		<a id="pl.183.3"></a><var>183.3</var>countywide tax levy for the debt service fund under section 
         <statute_ref>475.61</statute_ref>.<br />
         		<br />
         		<a id="bill.12.56.0"></a><a id="pl.183.4"></a><var>183.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 56. Minnesota Statutes 2010, section 383B.73, subdivision 1, is amended to read:<br />
         		<a id="pl.183.5"></a><var>183.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Levy.</b> To provide funds for the purposes of the Three Rivers Park <br />
         		<a id="pl.183.6"></a><var>183.6</var>District as set forth in its annual budget, in lieu of the levies authorized by any other <br />
         		<a id="pl.183.7"></a><var>183.7</var>special law for such purposes, the Board of Park District Commissioners may levy <br />
         		<a id="pl.183.8"></a><var>183.8</var>taxes on all the taxable property in the county and park district at a rate not exceeding <br />
         		<a id="pl.183.9"></a><var>183.9</var>0.03224 percent of estimated market value. Notwithstanding section 
         <statute_ref>398.16</statute_ref>, on or before <br />
         		<a id="pl.183.10"></a><var>183.10</var>October 1 of each year, after public hearing, the Board of Park District Commissioners <br />
         		<a id="pl.183.11"></a><var>183.11</var>shall adopt a budget for the ensuing year and shall determine the total amount necessary <br />
         		<a id="pl.183.12"></a><var>183.12</var>to be raised from ad valorem tax levies to meet its budget. The Board of Park District <br />
         		<a id="pl.183.13"></a><var>183.13</var>Commissioners shall submit the budget to the county board. The county board may veto <br />
         		<a id="pl.183.14"></a><var>183.14</var>or modify an item contained in the budget. If the county board determines to veto or to <br />
         		<a id="pl.183.15"></a><var>183.15</var>modify an item in the budget, it must, within 15 days after the budget was submitted by <br />
         		<a id="pl.183.16"></a><var>183.16</var>the district board, state in writing the specific reasons for its objection to the item vetoed <br />
         		<a id="pl.183.17"></a><var>183.17</var>or the reason for the modification. The Park District Board, after consideration of the <br />
         		<a id="pl.183.18"></a><var>183.18</var>county board's objections and proposed modifications, may reapprove a vetoed item or the <br />
         		<a id="pl.183.19"></a><var>183.19</var>original version of an item with respect to which a modification has been proposed, by a <br />
         		<a id="pl.183.20"></a><var>183.20</var>two-thirds majority. If the district board does not reapprove a vetoed item, the item shall <br />
         		<a id="pl.183.21"></a><var>183.21</var>be deleted from the budget. If the district board does not reapprove the original version <br />
         		<a id="pl.183.22"></a><var>183.22</var>of a modified item, the item shall be included in the budget as modified by the county <br />
         		<a id="pl.183.23"></a><var>183.23</var>board. After adoption of the final budget and no later than October 1, the superintendent <br />
         		<a id="pl.183.24"></a><var>183.24</var>of the park district shall certify to the office of the Hennepin County director of tax and <br />
         		<a id="pl.183.25"></a><var>183.25</var>public records exercising the functions of the county auditor the total amount to be raised <br />
         		<a id="pl.183.26"></a><var>183.26</var>from ad valorem tax levies to meet its budget for the ensuing year. The director of tax <br />
         		<a id="pl.183.27"></a><var>183.27</var>and public records shall add the amount of any levy certified by the district to other tax <br />
         		<a id="pl.183.28"></a><var>183.28</var>levies on the property of the county within the district for collection by the director of tax <br />
         		<a id="pl.183.29"></a><var>183.29</var>and public records with other taxes. When collected, the director shall make settlement of <br />
         		<a id="pl.183.30"></a><var>183.30</var>such taxes with the district in the same manner as other taxes are distributed to the other <br />
         		<a id="pl.183.31"></a><var>183.31</var>political subdivisions in Hennepin County.<br />
         		<br />
         		<a id="bill.12.57.0"></a><a id="pl.183.32"></a><var>183.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 57. Minnesota Statutes 2010, section 383E.20, is amended to read:<br />
         		<a id="pl.183.33"></a><var>183.33</var><b>383E.20 BONDING FOR COUNTY LIBRARY BUILDINGS.</b><br />
         		<a id="pl.184.1"></a><var>184.1</var>&nbsp;&nbsp;&nbsp;&nbsp;The Anoka County Board may, by resolution adopted by a four-sevenths vote, issue <br />
         		<a id="pl.184.2"></a><var>184.2</var>and sell general obligation bonds of the county in the manner provided in chapter 475 to <br />
         		<a id="pl.184.3"></a><var>184.3</var>acquire, better, and construct county library buildings. The bonds shall not be subject to the <br />
         		<a id="pl.184.4"></a><var>184.4</var>requirements of sections 475.57 to 475.59. The maturity years and amounts and interest <br />
         		<a id="pl.184.5"></a><var>184.5</var>rates of each series of bonds shall be fixed so that the maximum amount of principal and <br />
         		<a id="pl.184.6"></a><var>184.6</var>interest to become due in any year, on the bonds of that series and of all outstanding series <br />
         		<a id="pl.184.7"></a><var>184.7</var>issued by or for the purposes of libraries, shall not exceed an amount equal to .01 percent <br />
         		<a id="pl.184.8"></a><var>184.8</var>of the taxable estimated market value of all taxable property in the county, excluding any <br />
         		<a id="pl.184.9"></a><var>184.9</var>taxable property taxed by any city for the support of any free public library. When the tax <br />
         		<a id="pl.184.10"></a><var>184.10</var>levy authorized in this section is collected, it shall be appropriated and credited to a debt <br />
         		<a id="pl.184.11"></a><var>184.11</var>service fund for the bonds. The tax levy for the debt service fund under section 475.61 <br />
         		<a id="pl.184.12"></a><var>184.12</var>shall be reduced by the amount available or reasonably anticipated to be available in the <br />
         		<a id="pl.184.13"></a><var>184.13</var>fund to make payments otherwise payable from the levy pursuant to section 475.61.<br />
         		<br />
         		<a id="bill.12.58.0"></a><a id="pl.184.14"></a><var>184.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 58. Minnesota Statutes 2010, section 383E.23, is amended to read:<br />
         		<a id="pl.184.15"></a><var>184.15</var><b>383E.23 LIBRARY TAX.</b><br />
         		<a id="pl.184.16"></a><var>184.16</var>The Anoka County Board may levy a tax of not more than .01 percent of the taxable <br />
         		<a id="pl.184.17"></a><var>184.17</var>estimated market value of taxable property located within the county excluding any <br />
         		<a id="pl.184.18"></a><var>184.18</var>taxable property taxed by any city for the support of any free public library, to acquire, <br />
         		<a id="pl.184.19"></a><var>184.19</var>better, and construct county library buildings and to pay principal and interest on bonds <br />
         		<a id="pl.184.20"></a><var>184.20</var>issued for that purpose. The tax shall be disregarded in the calculation of levies or limits <br />
         		<a id="pl.184.21"></a><var>184.21</var>on levies provided by section 373.40, or other law.<br />
         		<br />
         		<a id="bill.12.59.0"></a><a id="pl.184.22"></a><var>184.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 59. Minnesota Statutes 2010, section 385.31, is amended to read:<br />
         		<a id="pl.184.23"></a><var>184.23</var><b>385.31 PAYMENT OF COUNTY ORDERS OR WARRANTS.</b><br />
         		<a id="pl.184.24"></a><var>184.24</var>When any order or warrant drawn on the treasurer is presented for payment, if there <br />
         		<a id="pl.184.25"></a><var>184.25</var>is money in the treasury for that purpose, the county treasurer shall redeem the same, and <br />
         		<a id="pl.184.26"></a><var>184.26</var>write across the entire face thereof the word "redeemed," the date of the redemption, and <br />
         		<a id="pl.184.27"></a><var>184.27</var>the treasurer's official signature. If there is not sufficient funds in the proper accounts to <br />
         		<a id="pl.184.28"></a><var>184.28</var>pay such orders they shall be numbered and registered in their order of presentation, <br />
         		<a id="pl.184.29"></a><var>184.29</var>and proper endorsement thereof shall be made on such orders and they shall be entitled <br />
         		<a id="pl.184.30"></a><var>184.30</var>to payment in like order. Such orders shall bear interest at not to exceed the rate of six <br />
         		<a id="pl.184.31"></a><var>184.31</var>percent per annum from such date of presentment. The treasurer, as soon as there is <br />
         		<a id="pl.184.32"></a><var>184.32</var>sufficient money in the treasury, shall appropriate and set apart a sum sufficient for the <br />
         		<a id="pl.184.33"></a><var>184.33</var>payment of the orders so presented and registered, and, if entitled to interest, issue to the <br />
         		<a id="pl.184.34"></a><var>184.34</var>original holder a notice that interest will cease in 30 days from the date of such notice; and, <br />
         		<a id="pl.185.1"></a><var>185.1</var>if orders thus entitled to priority of payment are not then presented, the next in order of <br />
         		<a id="pl.185.2"></a><var>185.2</var>registry may be paid until such orders are presented. No interest shall be paid on any order, <br />
         		<a id="pl.185.3"></a><var>185.3</var>except upon a warrant drawn by the county auditor for that purpose, giving the number <br />
         		<a id="pl.185.4"></a><var>185.4</var>and the date of the order on account of which the interest warrant is drawn. In any county <br />
         		<a id="pl.185.5"></a><var>185.5</var>in this state now or hereafter having a an estimated market value of all taxable property, <br />
         		<a id="pl.185.6"></a><var>185.6</var>exclusive of money and credits, of not less than $1,033,000,000, the county treasurer, in <br />
         		<a id="pl.185.7"></a><var>185.7</var>order to save payment of interest on county warrants drawn upon a fund in which there <br />
         		<a id="pl.185.8"></a><var>185.8</var>shall be temporarily insufficient money in the treasury to redeem the same, may borrow <br />
         		<a id="pl.185.9"></a><var>185.9</var>temporarily from any other fund in the county treasury in which there is a sufficient balance <br />
         		<a id="pl.185.10"></a><var>185.10</var>to care for the needs of such fund and allow a temporary loan or transfer to any other fund, <br />
         		<a id="pl.185.11"></a><var>185.11</var>and may pay such warrants out of such funds. Any such money so transferred and used in <br />
         		<a id="pl.185.12"></a><var>185.12</var>redeeming such county warrants shall be returned to the fund from which drawn as soon <br />
         		<a id="pl.185.13"></a><var>185.13</var>as money shall come in to the credit of such fund on which any such warrant was drawn <br />
         		<a id="pl.185.14"></a><var>185.14</var>and paid as aforesaid. Any county operating on a cash basis may use a combined form of <br />
         		<a id="pl.185.15"></a><var>185.15</var>warrant or order and check, which, when signed by the chair of the county board and by <br />
         		<a id="pl.185.16"></a><var>185.16</var>the auditor, is an order or warrant for the payment of the claim, and, when countersigned <br />
         		<a id="pl.185.17"></a><var>185.17</var>by the county treasurer, is a check for the payment of the amount thereof.<br />
         		<br />
         		<a id="bill.12.60.0"></a><a id="pl.185.18"></a><var>185.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 60. Minnesota Statutes 2010, section 394.36, subdivision 1, is amended to read:<br />
         		<a id="pl.185.19"></a><var>185.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Continuation of nonconformity; limitations.</b> Except as provided in <br />
         		<a id="pl.185.20"></a><var>185.20</var>subdivision 2, 3, or 4, any nonconformity, including the lawful use or occupation of land <br />
         		<a id="pl.185.21"></a><var>185.21</var>or premises existing at the time of the adoption of an official control under this chapter, <br />
         		<a id="pl.185.22"></a><var>185.22</var>may be continued, although the use or occupation does not conform to the official control. <br />
         		<a id="pl.185.23"></a><var>185.23</var>If the nonconformity or occupancy is discontinued for a period of more than one year, or <br />
         		<a id="pl.185.24"></a><var>185.24</var>any nonconforming building or structure is destroyed by fire or other peril to the extent of <br />
         		<a id="pl.185.25"></a><var>185.25</var>50 percent of its estimated market value, any subsequent use or occupancy of the land or <br />
         		<a id="pl.185.26"></a><var>185.26</var>premises shall be a conforming use or occupancy.<br />
         		<br />
         		<a id="bill.12.61.0"></a><a id="pl.185.27"></a><var>185.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 61. Minnesota Statutes 2010, section 398A.04, subdivision 8, is amended to read:<br />
         		<a id="pl.185.28"></a><var>185.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 8. <b>Taxation.</b> Before deciding to exercise the power to tax, the authority shall <br />
         		<a id="pl.185.29"></a><var>185.29</var>give six weeks' published notice in all municipalities in the region. If a number of voters <br />
         		<a id="pl.185.30"></a><var>185.30</var>in the region equal to five percent of those who voted for candidates for governor at the <br />
         		<a id="pl.185.31"></a><var>185.31</var>last gubernatorial election present a petition within nine weeks of the first published notice <br />
         		<a id="pl.185.32"></a><var>185.32</var>to the secretary of state requesting that the matter be submitted to popular vote, it shall be <br />
         		<a id="pl.185.33"></a><var>185.33</var>submitted at the next general election. The question prepared shall be:<br />
         		<a id="pl.185.34"></a><var>185.34</var>"Shall the regional rail authority have the power to impose a property tax?<br />
         		
         <table>
            <col width="50px"></col>
            <col width="40"></col>
            <col width="12.5"></col>
            <col width="12.5"></col>
            <tr>
               <td><a id="pl.186.1"></a><var>186.1</var><br />
                  		
               </td>
               <td></td>
               <td>Yes <br />
                  		<span>
                     							.....
                     						</span></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.186.2"></a><var>186.2</var><br />
                  		
               </td>
               <td></td>
               <td>No <span>
                     							.....
                     						</span>"<br />
                  		
               </td>
               <td></td>
            </tr>
         </table><a id="pl.186.3"></a><var>186.3</var>If a majority of those voting on the question approve or if no petition is presented <br />
         		<a id="pl.186.4"></a><var>186.4</var>within the prescribed time the authority may levy a tax at any annual rate not exceeding <br />
         		<a id="pl.186.5"></a><var>186.5</var>0.04835 percent of estimated market value of all taxable property situated within the <br />
         		<a id="pl.186.6"></a><var>186.6</var>municipality or municipalities named in its organization resolution. Its recording officer <br />
         		<a id="pl.186.7"></a><var>186.7</var>shall file, on or before September 15, in the office of the county auditor of each county <br />
         		<a id="pl.186.8"></a><var>186.8</var>in which territory under the jurisdiction of the authority is located a certified copy of the <br />
         		<a id="pl.186.9"></a><var>186.9</var>board of commissioners' resolution levying the tax, and each county auditor shall assess <br />
         		<a id="pl.186.10"></a><var>186.10</var>and extend upon the tax rolls of each municipality named in the organization resolution the <br />
         		<a id="pl.186.11"></a><var>186.11</var>portion of the tax that bears the same ratio to the whole amount that the net tax capacity of <br />
         		<a id="pl.186.12"></a><var>186.12</var>taxable property in that municipality bears to the net tax capacity of taxable property in <br />
         		<a id="pl.186.13"></a><var>186.13</var>all municipalities named in the organization resolution. Collections of the tax shall be <br />
         		<a id="pl.186.14"></a><var>186.14</var>remitted by each county treasurer to the treasurer of the authority. For taxes levied in 1991, <br />
         		<a id="pl.186.15"></a><var>186.15</var>the amount levied for light rail transit purposes under this subdivision shall not exceed 75 <br />
         		<a id="pl.186.16"></a><var>186.16</var>percent of the amount levied in 1990 for light rail transit purposes under this subdivision.<br />
         		<br />
         		<a id="bill.12.62.0"></a><a id="pl.186.17"></a><var>186.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 62. Minnesota Statutes 2010, section 401.05, subdivision 3, is amended to read:<br />
         		<a id="pl.186.18"></a><var>186.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Leasing.</b> (a) A county or joint powers board of a group of counties <br />
         		<a id="pl.186.19"></a><var>186.19</var>which acquires or constructs and equips or improves facilities under this chapter may, <br />
         		<a id="pl.186.20"></a><var>186.20</var>with the approval of the board of county commissioners of each county, enter into a <br />
         		<a id="pl.186.21"></a><var>186.21</var>lease agreement with a city situated within any of the counties, or a county housing and <br />
         		<a id="pl.186.22"></a><var>186.22</var>redevelopment authority established under chapter 469 or any special law. Under the lease <br />
         		<a id="pl.186.23"></a><var>186.23</var>agreement, the city or county housing and redevelopment authority shall:<br />
         		<a id="pl.186.24"></a><var>186.24</var>(1) construct or acquire and equip or improve a facility in accordance with plans <br />
         		<a id="pl.186.25"></a><var>186.25</var>prepared by or at the request of a county or joint powers board of the group of counties <br />
         		<a id="pl.186.26"></a><var>186.26</var>and approved by the commissioner of corrections; and<br />
         		<a id="pl.186.27"></a><var>186.27</var>(2) finance the facility by the issuance of revenue bonds.<br />
         		<a id="pl.186.28"></a><var>186.28</var>(b) The county or joint powers board of a group of counties may lease the facility <br />
         		<a id="pl.186.29"></a><var>186.29</var>site, improvements, and equipment for a term upon rental sufficient to produce revenue <br />
         		<a id="pl.186.30"></a><var>186.30</var>for the prompt payment of the revenue bonds and all interest accruing on them. Upon <br />
         		<a id="pl.186.31"></a><var>186.31</var>completion of payment, the lessee shall acquire title. The real and personal property <br />
         		<a id="pl.186.32"></a><var>186.32</var>acquired for the facility constitutes a project and the lease agreement constitutes a revenue <br />
         		<a id="pl.186.33"></a><var>186.33</var>agreement as provided in sections 
         <statute_ref>469.152</statute_ref> to 
         <statute_ref>469.165</statute_ref>. All proceedings by the city or <br />
         		<a id="pl.186.34"></a><var>186.34</var>county housing and redevelopment authority and the county or joint powers board shall be <br />
         		<a id="pl.186.35"></a><var>186.35</var>as provided in sections 
         <statute_ref>469.152</statute_ref> to 
         <statute_ref>469.165</statute_ref>, with the following adjustments:<br />
         		<a id="pl.187.1"></a><var>187.1</var>(1) no tax may be imposed upon the property;<br />
         		<a id="pl.187.2"></a><var>187.2</var>(2) the approval of the project by the commissioner of employment and economic <br />
         		<a id="pl.187.3"></a><var>187.3</var>development is not required;<br />
         		<a id="pl.187.4"></a><var>187.4</var>(3) the Department of Corrections shall be furnished and shall record information <br />
         		<a id="pl.187.5"></a><var>187.5</var>concerning each project as it may prescribe, in lieu of reports required on other projects to <br />
         		<a id="pl.187.6"></a><var>187.6</var>the commissioner of employment and economic development;<br />
         		<a id="pl.187.7"></a><var>187.7</var>(4) the rentals required to be paid under the lease agreement shall not exceed in any <br />
         		<a id="pl.187.8"></a><var>187.8</var>year one-tenth of one percent of the estimated market value of property within the county <br />
         		<a id="pl.187.9"></a><var>187.9</var>or group of counties as last equalized before the execution of the lease agreement;<br />
         		<a id="pl.187.10"></a><var>187.10</var>(5) the county or group of counties shall provide for payment of all rentals due <br />
         		<a id="pl.187.11"></a><var>187.11</var>during the term of the lease agreement in the manner required in subdivision 4;<br />
         		<a id="pl.187.12"></a><var>187.12</var>(6) no mortgage on the facilities shall be granted for the security of the bonds, but <br />
         		<a id="pl.187.13"></a><var>187.13</var>compliance with clause (5) may be enforced as a nondiscretionary duty of the county <br />
         		<a id="pl.187.14"></a><var>187.14</var>or group of counties; and<br />
         		<a id="pl.187.15"></a><var>187.15</var>(7) the county or the joint powers board of the group of counties may sublease any <br />
         		<a id="pl.187.16"></a><var>187.16</var>part of the facilities for purposes consistent with their maintenance and operation.<br />
         		<br />
         		<a id="bill.12.63.0"></a><a id="pl.187.17"></a><var>187.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 63. Minnesota Statutes 2010, section 410.32, is amended to read:<br />
         		<a id="pl.187.18"></a><var>187.18</var><b>410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.</b><br />
         		<a id="pl.187.19"></a><var>187.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding any contrary provision of other law or charter, a home rule <br />
         		<a id="pl.187.20"></a><var>187.20</var>charter city may, by resolution and without public referendum, issue capital notes subject <br />
         		<a id="pl.187.21"></a><var>187.21</var>to the city debt limit to purchase capital equipment.<br />
         		<a id="pl.187.22"></a><var>187.22</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) For purposes of this section, "capital equipment" means:<br />
         		<a id="pl.187.23"></a><var>187.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) public safety equipment, ambulance and other medical equipment, road <br />
         		<a id="pl.187.24"></a><var>187.24</var>construction and maintenance equipment, and other capital equipment; and<br />
         		<a id="pl.187.25"></a><var>187.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) computer hardware and software, whether bundled with machinery or equipment <br />
         		<a id="pl.187.26"></a><var>187.26</var>or unbundled.<br />
         		<a id="pl.187.27"></a><var>187.27</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) The equipment or software must have an expected useful life at least as long <br />
         		<a id="pl.187.28"></a><var>187.28</var>as the term of the notes.<br />
         		<a id="pl.187.29"></a><var>187.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) The notes shall be payable in not more than ten years and be issued on terms <br />
         		<a id="pl.187.30"></a><var>187.30</var>and in the manner the city determines. The total principal amount of the capital notes <br />
         		<a id="pl.187.31"></a><var>187.31</var>issued in a fiscal year shall not exceed 0.03 percent of the estimated market value of <br />
         		<a id="pl.187.32"></a><var>187.32</var>taxable property in the city for that year.<br />
         		<a id="pl.187.33"></a><var>187.33</var>&nbsp;&nbsp;&nbsp;&nbsp;(e) A tax levy shall be made for the payment of the principal and interest on the <br />
         		<a id="pl.187.34"></a><var>187.34</var>notes, in accordance with section 
         <statute_ref>475.61</statute_ref>, as in the case of bonds.<br />
         		<a id="pl.188.1"></a><var>188.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(f) Notes issued under this section shall require an affirmative vote of two-thirds of <br />
         		<a id="pl.188.2"></a><var>188.2</var>the governing body of the city.<br />
         		<a id="pl.188.3"></a><var>188.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(g) Notwithstanding a contrary provision of other law or charter, a home rule charter <br />
         		<a id="pl.188.4"></a><var>188.4</var>city may also issue capital notes subject to its debt limit in the manner and subject to the <br />
         		<a id="pl.188.5"></a><var>188.5</var>limitations applicable to statutory cities pursuant to section 
         <statute_ref>412.301</statute_ref>.<br />
         		<br />
         		<a id="bill.12.64.0"></a><a id="pl.188.6"></a><var>188.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 64. Minnesota Statutes 2010, section 412.221, subdivision 2, is amended to read:<br />
         		<a id="pl.188.7"></a><var>188.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Contracts.</b> The council shall have power to make such contracts as may <br />
         		<a id="pl.188.8"></a><var>188.8</var>be deemed necessary or desirable to make effective any power possessed by the council. <br />
         		<a id="pl.188.9"></a><var>188.9</var>The city may purchase personal property through a conditional sales contract and real <br />
         		<a id="pl.188.10"></a><var>188.10</var>property through a contract for deed under which contracts the seller is confined to the <br />
         		<a id="pl.188.11"></a><var>188.11</var>remedy of recovery of the property in case of nonpayment of all or part of the purchase <br />
         		<a id="pl.188.12"></a><var>188.12</var>price, which shall be payable over a period of not to exceed five years. When the contract <br />
         		<a id="pl.188.13"></a><var>188.13</var>price of property to be purchased by contract for deed or conditional sales contract <br />
         		<a id="pl.188.14"></a><var>188.14</var>exceeds 0.24177 percent of the estimated market value of the city, the city may not enter <br />
         		<a id="pl.188.15"></a><var>188.15</var>into such a contract for at least ten days after publication in the official newspaper of a <br />
         		<a id="pl.188.16"></a><var>188.16</var>council resolution determining to purchase property by such a contract; and, if before the <br />
         		<a id="pl.188.17"></a><var>188.17</var>end of that time a petition asking for an election on the proposition signed by voters equal <br />
         		<a id="pl.188.18"></a><var>188.18</var>to ten percent of the number of voters at the last regular city election is filed with the clerk, <br />
         		<a id="pl.188.19"></a><var>188.19</var>the city may not enter into such a contract until the proposition has been approved by a <br />
         		<a id="pl.188.20"></a><var>188.20</var>majority of the votes cast on the question at a regular or special election.<br />
         		<br />
         		<a id="bill.12.65.0"></a><a id="pl.188.21"></a><var>188.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 65. Minnesota Statutes 2010, section 412.301, is amended to read:<br />
         		<a id="pl.188.22"></a><var>188.22</var><b>412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.</b><br />
         		<a id="pl.188.23"></a><var>188.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(a) The council may issue certificates of indebtedness or capital notes subject to the <br />
         		<a id="pl.188.24"></a><var>188.24</var>city debt limits to purchase capital equipment.<br />
         		<a id="pl.188.25"></a><var>188.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) For purposes of this section, "capital equipment" means:<br />
         		<a id="pl.188.26"></a><var>188.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) public safety equipment, ambulance and other medical equipment, road <br />
         		<a id="pl.188.27"></a><var>188.27</var>construction and maintenance equipment, and other capital equipment; and<br />
         		<a id="pl.188.28"></a><var>188.28</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) computer hardware and software, whether bundled with machinery or equipment <br />
         		<a id="pl.188.29"></a><var>188.29</var>or unbundled.<br />
         		<a id="pl.188.30"></a><var>188.30</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) The equipment or software must have an expected useful life at least as long as <br />
         		<a id="pl.188.31"></a><var>188.31</var>the terms of the certificates or notes.<br />
         		<a id="pl.188.32"></a><var>188.32</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) Such certificates or notes shall be payable in not more than ten years and shall be <br />
         		<a id="pl.188.33"></a><var>188.33</var>issued on such terms and in such manner as the council may determine.<br />
         		<a id="pl.189.1"></a><var>189.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(e) If the amount of the certificates or notes to be issued to finance any such purchase <br />
         		<a id="pl.189.2"></a><var>189.2</var>exceeds 0.25 percent of the estimated market value of taxable property in the city, they <br />
         		<a id="pl.189.3"></a><var>189.3</var>shall not be issued for at least ten days after publication in the official newspaper of <br />
         		<a id="pl.189.4"></a><var>189.4</var>a council resolution determining to issue them; and if before the end of that time, a <br />
         		<a id="pl.189.5"></a><var>189.5</var>petition asking for an election on the proposition signed by voters equal to ten percent <br />
         		<a id="pl.189.6"></a><var>189.6</var>of the number of voters at the last regular municipal election is filed with the clerk, such <br />
         		<a id="pl.189.7"></a><var>189.7</var>certificates or notes shall not be issued until the proposition of their issuance has been <br />
         		<a id="pl.189.8"></a><var>189.8</var>approved by a majority of the votes cast on the question at a regular or special election.<br />
         		<a id="pl.189.9"></a><var>189.9</var>&nbsp;&nbsp;&nbsp;&nbsp;(f) A tax levy shall be made for the payment of the principal and interest on such <br />
         		<a id="pl.189.10"></a><var>189.10</var>certificates or notes, in accordance with section 
         <statute_ref>475.61</statute_ref>, as in the case of bonds.<br />
         		<br />
         		<a id="bill.12.66.0"></a><a id="pl.189.11"></a><var>189.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 66. Minnesota Statutes 2010, section 428A.02, subdivision 1, is amended to read:<br />
         		<a id="pl.189.12"></a><var>189.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Ordinance.</b> The governing body of a city may adopt an ordinance <br />
         		<a id="pl.189.13"></a><var>189.13</var>establishing a special service district. Only property that is classified under section 
         <statute_ref>273.13</statute_ref> <br />
         		<a id="pl.189.14"></a><var>189.14</var>and used for commercial, industrial, or public utility purposes, or is vacant land zoned or <br />
         		<a id="pl.189.15"></a><var>189.15</var>designated on a land use plan for commercial or industrial use and located in the special <br />
         		<a id="pl.189.16"></a><var>189.16</var>service district, may be subject to the charges imposed by the city on the special service <br />
         		<a id="pl.189.17"></a><var>189.17</var>district. Other types of property may be included within the boundaries of the special <br />
         		<a id="pl.189.18"></a><var>189.18</var>service district but are not subject to the levies or charges imposed by the city on the <br />
         		<a id="pl.189.19"></a><var>189.19</var>special service district. If 50 percent or more of the estimated market value of a parcel of <br />
         		<a id="pl.189.20"></a><var>189.20</var>property is classified under section 
         <statute_ref>273.13</statute_ref> as commercial, industrial, or vacant land zoned <br />
         		<a id="pl.189.21"></a><var>189.21</var>or designated on a land use plan for commercial or industrial use, or public utility for the <br />
         		<a id="pl.189.22"></a><var>189.22</var>current assessment year, then the entire taxable market value of the property is subject to a <br />
         		<a id="pl.189.23"></a><var>189.23</var>service charge based on net tax capacity for purposes of sections 
         <statute_ref>428A.01</statute_ref> to 
         <statute_ref>428A.10</statute_ref>. <br />
         		<a id="pl.189.24"></a><var>189.24</var>The ordinance shall describe with particularity the area within the city to be included in <br />
         		<a id="pl.189.25"></a><var>189.25</var>the district and the special services to be furnished in the district. The ordinance may not <br />
         		<a id="pl.189.26"></a><var>189.26</var>be adopted until after a public hearing has been held on the question. Notice of the hearing <br />
         		<a id="pl.189.27"></a><var>189.27</var>shall include the time and place of hearing, a map showing the boundaries of the proposed <br />
         		<a id="pl.189.28"></a><var>189.28</var>district, and a statement that all persons owning property in the proposed district that <br />
         		<a id="pl.189.29"></a><var>189.29</var>would be subject to a service charge will be given opportunity to be heard at the hearing. <br />
         		<a id="pl.189.30"></a><var>189.30</var>Within 30 days after adoption of the ordinance under this subdivision, the governing body <br />
         		<a id="pl.189.31"></a><var>189.31</var>shall send a copy of the ordinance to the commissioner of revenue.<br />
         		<br />
         		<a id="bill.12.67.0"></a><a id="pl.189.32"></a><var>189.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 67. Minnesota Statutes 2010, section 430.102, subdivision 2, is amended to read:<br />
         		<a id="pl.189.33"></a><var>189.33</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Council approval; special tax levy limitation.</b> The council shall receive <br />
         		<a id="pl.189.34"></a><var>189.34</var>and consider the estimate required in subdivision 1 and the items of cost after notice and <br />
         		<a id="pl.190.1"></a><var>190.1</var>hearing before it or its appropriate committee as it considers necessary or expedient, <br />
         		<a id="pl.190.2"></a><var>190.2</var>and shall approve the estimate, with necessary amendments. The amounts of each item <br />
         		<a id="pl.190.3"></a><var>190.3</var>of cost estimated are then appropriated to operate, maintain, and improve the pedestrian <br />
         		<a id="pl.190.4"></a><var>190.4</var>mall during the next fiscal year. The amount of the special tax to be charged under <br />
         		<a id="pl.190.5"></a><var>190.5</var>subdivision 1, clause (3), must not, however, exceed 0.12089 percent of estimated market <br />
         		<a id="pl.190.6"></a><var>190.6</var>value of taxable property in the district. The council shall make any necessary adjustment <br />
         		<a id="pl.190.7"></a><var>190.7</var>in costs of operating and maintaining the district to keep the amount of the tax within <br />
         		<a id="pl.190.8"></a><var>190.8</var>this limitation.<br />
         		<br />
         		<a id="bill.12.68.0"></a><a id="pl.190.9"></a><var>190.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 68. Minnesota Statutes 2010, section 447.10, is amended to read:<br />
         		<a id="pl.190.10"></a><var>190.10</var><b>447.10 TAX LEVY FOR OPERATING AND MAINTAINING HOSPITAL.</b><br />
         		<a id="pl.190.11"></a><var>190.11</var>The governing body of a city of the first class owning a hospital may annually levy <br />
         		<a id="pl.190.12"></a><var>190.12</var>a tax to operate and maintain the hospital. The tax must not exceed 0.00806 percent of <br />
         		<a id="pl.190.13"></a><var>190.13</var>taxable estimated market value.<br />
         		<br />
         		<a id="bill.12.69.0"></a><a id="pl.190.14"></a><var>190.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 69. Minnesota Statutes 2010, section 450.19, is amended to read:<br />
         		<a id="pl.190.15"></a><var>190.15</var><b>450.19 TOURIST CAMPING GROUNDS.</b><br />
         		<a id="pl.190.16"></a><var>190.16</var>A home rule charter or statutory city or town may establish and maintain public <br />
         		<a id="pl.190.17"></a><var>190.17</var>tourist camping grounds. The governing body thereof may acquire by lease, purchase, or <br />
         		<a id="pl.190.18"></a><var>190.18</var>gift, suitable lands located either within or without the corporate limits for use as public <br />
         		<a id="pl.190.19"></a><var>190.19</var>tourist camping grounds and provide for the equipment, operation, and maintenance <br />
         		<a id="pl.190.20"></a><var>190.20</var>of the same. The amount that may be expended for the maintenance, improvement, or <br />
         		<a id="pl.190.21"></a><var>190.21</var>operation of tourist camping grounds shall not exceed, in any year, a sum equal to 0.00806 <br />
         		<a id="pl.190.22"></a><var>190.22</var>percent of taxable estimated market value.<br />
         		<br />
         		<a id="bill.12.70.0"></a><a id="pl.190.23"></a><var>190.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 70. Minnesota Statutes 2010, section 450.25, is amended to read:<br />
         		<a id="pl.190.24"></a><var>190.24</var><b>450.25 MUSEUM, GALLERY, OR SCHOOL OF ARTS OR CRAFTS; TAX </b><br />
         		<a id="pl.190.25"></a><var>190.25</var><b>LEVY.</b><br />
         		<a id="pl.190.26"></a><var>190.26</var>After the acquisition of any museum, gallery, or school of arts or crafts, the board <br />
         		<a id="pl.190.27"></a><var>190.27</var>of park commissioners of the city in which it is located shall cause to be included in the <br />
         		<a id="pl.190.28"></a><var>190.28</var>annual tax levy upon all the taxable property of the county in which the museum, gallery, <br />
         		<a id="pl.190.29"></a><var>190.29</var>or school of arts or crafts is located, a tax of 0.00846 percent of estimated market value. <br />
         		<a id="pl.190.30"></a><var>190.30</var>The board shall certify the levy to the county auditor and it shall be added to, and collected <br />
         		<a id="pl.190.31"></a><var>190.31</var>with and as part of, the general, real, and personal property taxes, with like penalties and <br />
         		<a id="pl.190.32"></a><var>190.32</var>interest, in case of nonpayment and default, and all provisions of law in respect to the <br />
         		<a id="pl.191.1"></a><var>191.1</var>levy, collection, and enforcement of other taxes shall, so far as applicable, be followed in <br />
         		<a id="pl.191.2"></a><var>191.2</var>respect of these taxes. All of these taxes, penalties, and interest, when collected, shall be <br />
         		<a id="pl.191.3"></a><var>191.3</var>paid to the city treasurer of the city in which is located the museum, gallery, or school <br />
         		<a id="pl.191.4"></a><var>191.4</var>of arts or crafts and credited to a fund to be known as the park museum fund, and shall <br />
         		<a id="pl.191.5"></a><var>191.5</var>be used only for the purposes specified in sections 
         <statute_ref>450.23</statute_ref> to 
         <statute_ref>450.25</statute_ref>. Any part of the <br />
         		<a id="pl.191.6"></a><var>191.6</var>proceeds of the levy not expended for the purposes specified in section 
         <statute_ref>450.24</statute_ref> may be <br />
         		<a id="pl.191.7"></a><var>191.7</var>used for the erection of new buildings for the same purposes.<br />
         		<br />
         		<a id="bill.12.71.0"></a><a id="pl.191.8"></a><var>191.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 71. Minnesota Statutes 2010, section 458A.10, is amended to read:<br />
         		<a id="pl.191.9"></a><var>191.9</var><b>458A.10 PROPERTY TAX.</b><br />
         		<a id="pl.191.10"></a><var>191.10</var>The commission shall annually levy a tax not to exceed 0.12089 percent of estimated <br />
         		<a id="pl.191.11"></a><var>191.11</var>market value on all the taxable property in the transit area at a rate sufficient to produce <br />
         		<a id="pl.191.12"></a><var>191.12</var>an amount necessary for the purposes of sections 
         <statute_ref>458A.01</statute_ref> to 
         <statute_ref>458A.15</statute_ref>, other than the <br />
         		<a id="pl.191.13"></a><var>191.13</var>payment of principal and interest due on any revenue bonds issued pursuant to section <br />
         		
         <statute_ref><a id="pl.191.14"></a><var>191.14</var>458A.05
         </statute_ref>. Property taxes levied under this section shall be certified by the commission to <br />
         		<a id="pl.191.15"></a><var>191.15</var>the county auditors of the transit area, extended, assessed, and collected in the manner <br />
         		<a id="pl.191.16"></a><var>191.16</var>provided by law for the property taxes levied by the governing bodies of cities. The <br />
         		<a id="pl.191.17"></a><var>191.17</var>proceeds of the taxes levied under this section shall be remitted by the respective county <br />
         		<a id="pl.191.18"></a><var>191.18</var>treasurers to the treasurer of the commission, who shall credit the same to the funds of <br />
         		<a id="pl.191.19"></a><var>191.19</var>the commission for use for the purposes of sections 
         <statute_ref>458A.01</statute_ref> to 
         <statute_ref>458A.15</statute_ref> subject to any <br />
         		<a id="pl.191.20"></a><var>191.20</var>applicable pledges or limitations on account of tax anticipation certificates or other <br />
         		<a id="pl.191.21"></a><var>191.21</var>specific purposes. At any time after making a tax levy under this section and certifying <br />
         		<a id="pl.191.22"></a><var>191.22</var>it to the county auditors, the commission may issue general obligation certificates of <br />
         		<a id="pl.191.23"></a><var>191.23</var>indebtedness in anticipation of the collection of the taxes as provided by section 
         <statute_ref>412.261</statute_ref>.<br />
         		<br />
         		<a id="bill.12.72.0"></a><a id="pl.191.24"></a><var>191.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 72. Minnesota Statutes 2010, section 458A.31, subdivision 1, is amended to read:<br />
         		<a id="pl.191.25"></a><var>191.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Levy limit.</b> Notwithstanding anything to the contrary contained in <br />
         		<a id="pl.191.26"></a><var>191.26</var>the charter of the city of Duluth, any ordinance thereof, or any statute applicable thereto, <br />
         		<a id="pl.191.27"></a><var>191.27</var>limiting the amount levied in any one year for general or special purposes, the city council <br />
         		<a id="pl.191.28"></a><var>191.28</var>of the city of Duluth shall each year levy a tax in an amount not to exceed 0.07253 <br />
         		<a id="pl.191.29"></a><var>191.29</var>percent of taxable estimated market value, by ordinance. An ordinance fixing the levy <br />
         		<a id="pl.191.30"></a><var>191.30</var>shall take effect immediately upon its passage and approval. The proceeds of the levy <br />
         		<a id="pl.191.31"></a><var>191.31</var>shall be paid into the city treasury and deposited in the operating fund provided for in <br />
         		<a id="pl.191.32"></a><var>191.32</var>section 
         <statute_ref>458A.24, subdivision 3</statute_ref>.<br />
         		<br />
         		<a id="bill.12.73.0"></a><a id="pl.191.33"></a><var>191.33</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 73. Minnesota Statutes 2010, section 465.04, is amended to read:<br />
         		<a id="pl.192.1"></a><var>192.1</var><b>465.04 ACCEPTANCE OF GIFTS.</b><br />
         		<a id="pl.192.2"></a><var>192.2</var>Cities of the second, third, or fourth class, having at any time a an estimated <br />
         		<a id="pl.192.3"></a><var>192.3</var>market value of not more than $41,000,000, exclusive of money and credits, as officially <br />
         		<a id="pl.192.4"></a><var>192.4</var>equalized by the commissioner of revenue, either under home rule charter or under the <br />
         		<a id="pl.192.5"></a><var>192.5</var>laws of this state, in addition to all other powers possessed by them, hereby are authorized <br />
         		<a id="pl.192.6"></a><var>192.6</var>and empowered to receive and accept gifts and donations for the use and benefit of <br />
         		<a id="pl.192.7"></a><var>192.7</var>such cities and the inhabitants thereof upon terms and conditions to be approved by the <br />
         		<a id="pl.192.8"></a><var>192.8</var>governing bodies of such cities; and such cities are authorized to comply with and perform <br />
         		<a id="pl.192.9"></a><var>192.9</var>such terms and conditions, which may include payment to the donor or donors of interest <br />
         		<a id="pl.192.10"></a><var>192.10</var>on the value of the gift at not exceeding five percent per annum payable annually or <br />
         		<a id="pl.192.11"></a><var>192.11</var>semiannually, during the remainder of the natural life or lives of such donor or donors.<br />
         		<br />
         		<a id="bill.12.74.0"></a><a id="pl.192.12"></a><var>192.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 74. Minnesota Statutes 2010, section 469.033, subdivision 6, is amended to read:<br />
         		<a id="pl.192.13"></a><var>192.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <b>Operation area as taxing district, special tax.</b> All of the territory <br />
         		<a id="pl.192.14"></a><var>192.14</var>included within the area of operation of any authority shall constitute a taxing district for <br />
         		<a id="pl.192.15"></a><var>192.15</var>the purpose of levying and collecting special benefit taxes as provided in this subdivision. <br />
         		<a id="pl.192.16"></a><var>192.16</var>All of the taxable property, both real and personal, within that taxing district shall be <br />
         		<a id="pl.192.17"></a><var>192.17</var>deemed to be benefited by projects to the extent of the special taxes levied under this <br />
         		<a id="pl.192.18"></a><var>192.18</var>subdivision. Subject to the consent by resolution of the governing body of the city in and <br />
         		<a id="pl.192.19"></a><var>192.19</var>for which it was created, an authority may levy a tax upon all taxable property within that <br />
         		<a id="pl.192.20"></a><var>192.20</var>taxing district. The tax shall be extended, spread, and included with and as a part of <br />
         		<a id="pl.192.21"></a><var>192.21</var>the general taxes for state, county, and municipal purposes by the county auditor, to be <br />
         		<a id="pl.192.22"></a><var>192.22</var>collected and enforced therewith, together with the penalty, interest, and costs. As the tax, <br />
         		<a id="pl.192.23"></a><var>192.23</var>including any penalties, interest, and costs, is collected by the county treasurer it shall be <br />
         		<a id="pl.192.24"></a><var>192.24</var>accumulated and kept in a separate fund to be known as the "housing and redevelopment <br />
         		<a id="pl.192.25"></a><var>192.25</var>project fund." The money in the fund shall be turned over to the authority at the same time <br />
         		<a id="pl.192.26"></a><var>192.26</var>and in the same manner that the tax collections for the city are turned over to the city, and <br />
         		<a id="pl.192.27"></a><var>192.27</var>shall be expended only for the purposes of sections 
         <statute_ref>469.001</statute_ref> to 
         <statute_ref>469.047</statute_ref>. It shall be paid <br />
         		<a id="pl.192.28"></a><var>192.28</var>out upon vouchers signed by the chair of the authority or an authorized representative. <br />
         		<a id="pl.192.29"></a><var>192.29</var>The amount of the levy shall be an amount approved by the governing body of the city, but <br />
         		<a id="pl.192.30"></a><var>192.30</var>shall not exceed 0.0185 percent of taxable estimated  market value. The authority shall <br />
         		<a id="pl.192.31"></a><var>192.31</var>each year formulate and file a budget in accordance with the budget procedure of the city <br />
         		<a id="pl.192.32"></a><var>192.32</var>in the same manner as required of executive departments of the city or, if no budgets are <br />
         		<a id="pl.192.33"></a><var>192.33</var>required to be filed, by August 1. The amount of the tax levy for the following year shall <br />
         		<a id="pl.192.34"></a><var>192.34</var>be based on that budget.<br />
         		<br />
         		<a id="bill.12.75.0"></a><a id="pl.193.1"></a><var>193.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 75. Minnesota Statutes 2010, section 469.034, subdivision 2, is amended to read:<br />
         		<a id="pl.193.2"></a><var>193.2</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>General obligation revenue bonds.</b> (a) An authority may pledge the <br />
         		<a id="pl.193.3"></a><var>193.3</var>general obligation of the general jurisdiction governmental unit as additional security for <br />
         		<a id="pl.193.4"></a><var>193.4</var>bonds payable from income or revenues of the project or the authority. The authority <br />
         		<a id="pl.193.5"></a><var>193.5</var>must find that the pledged revenues will equal or exceed 110 percent of the principal and <br />
         		<a id="pl.193.6"></a><var>193.6</var>interest due on the bonds for each year. The proceeds of the bonds must be used for a <br />
         		<a id="pl.193.7"></a><var>193.7</var>qualified housing development project or projects. The obligations must be issued and <br />
         		<a id="pl.193.8"></a><var>193.8</var>sold in the manner and following the procedures provided by chapter 475, except the <br />
         		<a id="pl.193.9"></a><var>193.9</var>obligations are not subject to approval by the electors, and the maturities may extend to <br />
         		<a id="pl.193.10"></a><var>193.10</var>not more than 35 years for obligations sold to finance housing for the elderly and 40 years <br />
         		<a id="pl.193.11"></a><var>193.11</var>for other obligations issued under this subdivision. The authority is the municipality for <br />
         		<a id="pl.193.12"></a><var>193.12</var>purposes of chapter 475.<br />
         		<a id="pl.193.13"></a><var>193.13</var>(b) The principal amount of the issue must be approved by the governing body of <br />
         		<a id="pl.193.14"></a><var>193.14</var>the general jurisdiction governmental unit whose general obligation is pledged. Public <br />
         		<a id="pl.193.15"></a><var>193.15</var>hearings must be held on issuance of the obligations by both the authority and the general <br />
         		<a id="pl.193.16"></a><var>193.16</var>jurisdiction governmental unit. The hearings must be held at least 15 days, but not more <br />
         		<a id="pl.193.17"></a><var>193.17</var>than 120 days, before the sale of the obligations.<br />
         		<a id="pl.193.18"></a><var>193.18</var>(c) The maximum amount of general obligation bonds that may be issued and <br />
         		<a id="pl.193.19"></a><var>193.19</var>outstanding under this section equals the greater of (1) one-half of one percent of the <br />
         		<a id="pl.193.20"></a><var>193.20</var>taxable estimated market value of the general jurisdiction governmental unit whose <br />
         		<a id="pl.193.21"></a><var>193.21</var>general obligation is pledged, or (2) $3,000,000. In the case of county or multicounty <br />
         		<a id="pl.193.22"></a><var>193.22</var>general obligation bonds, the outstanding general obligation bonds of all cities in the <br />
         		<a id="pl.193.23"></a><var>193.23</var>county or counties issued under this subdivision must be added in calculating the limit <br />
         		<a id="pl.193.24"></a><var>193.24</var>under clause (1).<br />
         		<a id="pl.193.25"></a><var>193.25</var>(d) "General jurisdiction governmental unit" means the city in which the housing <br />
         		<a id="pl.193.26"></a><var>193.26</var>development project is located. In the case of a county or multicounty authority, the <br />
         		<a id="pl.193.27"></a><var>193.27</var>county or counties may act as the general jurisdiction governmental unit. In the case of <br />
         		<a id="pl.193.28"></a><var>193.28</var>a multicounty authority, the pledge of the general obligation is a pledge of a tax on the <br />
         		<a id="pl.193.29"></a><var>193.29</var>taxable property in each of the counties.<br />
         		<a id="pl.193.30"></a><var>193.30</var>(e) "Qualified housing development project" means a housing development project <br />
         		<a id="pl.193.31"></a><var>193.31</var>providing housing either for the elderly or for individuals and families with incomes not <br />
         		<a id="pl.193.32"></a><var>193.32</var>greater than 80 percent of the median family income as estimated by the United States <br />
         		<a id="pl.193.33"></a><var>193.33</var>Department of Housing and Urban Development for the standard metropolitan statistical <br />
         		<a id="pl.193.34"></a><var>193.34</var>area or the nonmetropolitan county in which the project is located. The project must be <br />
         		<a id="pl.193.35"></a><var>193.35</var>owned for the term of the bonds either by the authority or by a limited partnership or other <br />
         		<a id="pl.193.36"></a><var>193.36</var>entity in which the authority or another entity under the sole control of the authority is <br />
         		<a id="pl.194.1"></a><var>194.1</var>the sole general partner and the partnership or other entity must receive (1) an allocation <br />
         		<a id="pl.194.2"></a><var>194.2</var>from the Department of Management and Budget or an entitlement issuer of tax-exempt <br />
         		<a id="pl.194.3"></a><var>194.3</var>bonding authority for the project and a preliminary determination by the Minnesota <br />
         		<a id="pl.194.4"></a><var>194.4</var>Housing Finance Agency or the applicable suballocator of tax credits that the project <br />
         		<a id="pl.194.5"></a><var>194.5</var>will qualify for four percent low-income housing tax credits or (2) a reservation of nine <br />
         		<a id="pl.194.6"></a><var>194.6</var>percent low-income housing tax credits from the Minnesota Housing Finance Agency or a <br />
         		<a id="pl.194.7"></a><var>194.7</var>suballocator of tax credits for the project. A qualified housing development project may <br />
         		<a id="pl.194.8"></a><var>194.8</var>admit nonelderly individuals and families with higher incomes if:<br />
         		<a id="pl.194.9"></a><var>194.9</var>(1) three years have passed since initial occupancy;<br />
         		<a id="pl.194.10"></a><var>194.10</var>(2) the authority finds the project is experiencing unanticipated vacancies resulting in <br />
         		<a id="pl.194.11"></a><var>194.11</var>insufficient revenues, because of changes in population or other unforeseen circumstances <br />
         		<a id="pl.194.12"></a><var>194.12</var>that occurred after the initial finding of adequate revenues; and<br />
         		<a id="pl.194.13"></a><var>194.13</var>(3) the authority finds a tax levy or payment from general assets of the general <br />
         		<a id="pl.194.14"></a><var>194.14</var>jurisdiction governmental unit will be necessary to pay debt service on the bonds if higher <br />
         		<a id="pl.194.15"></a><var>194.15</var>income individuals or families are not admitted.<br />
         		<a id="pl.194.16"></a><var>194.16</var>(f) The authority may issue bonds to refund bonds issued under this subdivision in <br />
         		<a id="pl.194.17"></a><var>194.17</var>accordance with section 
         <statute_ref>475.67</statute_ref>. The finding of the adequacy of pledged revenues required <br />
         		<a id="pl.194.18"></a><var>194.18</var>by paragraph (a) and the public hearing required by paragraph (b) shall not apply to the <br />
         		<a id="pl.194.19"></a><var>194.19</var>issuance of refunding bonds. This paragraph applies to refunding bonds issued on and <br />
         		<a id="pl.194.20"></a><var>194.20</var>after July 1, 1992.<br />
         		<br />
         		<a id="bill.12.76.0"></a><a id="pl.194.21"></a><var>194.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 76. Minnesota Statutes 2010, section 469.053, subdivision 4, is amended to read:<br />
         		<a id="pl.194.22"></a><var>194.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Mandatory city levy.</b> A city shall, at the request of the port authority, levy <br />
         		<a id="pl.194.23"></a><var>194.23</var>a tax in any year for the benefit of the port authority. The tax must not exceed 0.01813 <br />
         		<a id="pl.194.24"></a><var>194.24</var>percent of taxable estimated market value. The amount levied must be paid by the city <br />
         		<a id="pl.194.25"></a><var>194.25</var>treasurer to the treasurer of the port authority, to be spent by the authority.<br />
         		<br />
         		<a id="bill.12.77.0"></a><a id="pl.194.26"></a><var>194.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 77. Minnesota Statutes 2010, section 469.053, subdivision 4a, is amended to read:<br />
         		<a id="pl.194.27"></a><var>194.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4a. <b>Seaway port authority levy.</b> A levy made under this subdivision shall <br />
         		<a id="pl.194.28"></a><var>194.28</var>replace the mandatory city levy under subdivision 4. A seaway port authority is a special <br />
         		<a id="pl.194.29"></a><var>194.29</var>taxing district under section 
         <statute_ref>275.066</statute_ref> and may levy a tax in any year for the benefit of the <br />
         		<a id="pl.194.30"></a><var>194.30</var>seaway port authority. The tax must not exceed 0.01813 percent of taxable estimated <br />
         		<a id="pl.194.31"></a><var>194.31</var>market value. The county auditor shall distribute the proceeds of the property tax levy to <br />
         		<a id="pl.194.32"></a><var>194.32</var>the seaway port authority.<br />
         		<br />
         		<a id="bill.12.78.0"></a><a id="pl.194.33"></a><var>194.33</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 78. Minnesota Statutes 2010, section 469.053, subdivision 6, is amended to read:<br />
         		<a id="pl.195.1"></a><var>195.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <b>Discretionary city levy.</b> Upon request of a port authority, the port <br />
         		<a id="pl.195.2"></a><var>195.2</var>authority's city may levy a tax to be spent by and for its port authority. The tax must <br />
         		<a id="pl.195.3"></a><var>195.3</var>enable the port authority to carry out efficiently and in the public interest sections 
         <statute_ref>469.048</statute_ref> <br />
         		<a id="pl.195.4"></a><var>195.4</var>to 
         <statute_ref>469.068</statute_ref> to create and develop industrial development districts. The levy must not be <br />
         		<a id="pl.195.5"></a><var>195.5</var>more than 0.00282 percent of taxable estimated market value. The county treasurer shall <br />
         		<a id="pl.195.6"></a><var>195.6</var>pay the proceeds of the tax to the port authority treasurer. The money may be spent by <br />
         		<a id="pl.195.7"></a><var>195.7</var>the authority in performance of its duties to create and develop industrial development <br />
         		<a id="pl.195.8"></a><var>195.8</var>districts. In spending the money the authority must judge what best serves the public <br />
         		<a id="pl.195.9"></a><var>195.9</var>interest. The levy in this subdivision is in addition to the levy in subdivision 4.<br />
         		<br />
         		<a id="bill.12.79.0"></a><a id="pl.195.10"></a><var>195.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 79. Minnesota Statutes 2010, section 469.107, subdivision 1, is amended to read:<br />
         		<a id="pl.195.11"></a><var>195.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>City tax levy.</b> A city may, at the request of the authority, levy a tax in <br />
         		<a id="pl.195.12"></a><var>195.12</var>any year for the benefit of the authority. The tax must be not more than 0.01813 percent of <br />
         		<a id="pl.195.13"></a><var>195.13</var>taxable estimated market value. The amount levied must be paid by the city treasurer to <br />
         		<a id="pl.195.14"></a><var>195.14</var>the treasurer of the authority, to be spent by the authority.<br />
         		<br />
         		<a id="bill.12.80.0"></a><a id="pl.195.15"></a><var>195.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 80. Minnesota Statutes 2010, section 469.180, subdivision 2, is amended to read:<br />
         		<a id="pl.195.16"></a><var>195.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Tax levies.</b> Notwithstanding any law, the county board of any county may <br />
         		<a id="pl.195.17"></a><var>195.17</var>appropriate from the general revenue fund a sum not to exceed a county levy of 0.00080 <br />
         		<a id="pl.195.18"></a><var>195.18</var>percent of taxable estimated market value to carry out the purposes of this section.<br />
         		<br />
         		<a id="bill.12.81.0"></a><a id="pl.195.19"></a><var>195.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 81. Minnesota Statutes 2010, section 469.187, is amended to read:<br />
         		<a id="pl.195.20"></a><var>195.20</var><b>469.187 FIRST CLASS CITY SPENDING FOR PUBLICITY; PUBLICITY </b><br />
         		<a id="pl.195.21"></a><var>195.21</var><b>BOARD.</b><br />
         		<a id="pl.195.22"></a><var>195.22</var>Any city of the first class may expend money for city publicity purposes. The city <br />
         		<a id="pl.195.23"></a><var>195.23</var>may levy a tax, not exceeding 0.00080 percent of taxable estimated market value. The <br />
         		<a id="pl.195.24"></a><var>195.24</var>proceeds of the levy shall be expended in the manner and for the city publicity purposes <br />
         		<a id="pl.195.25"></a><var>195.25</var>the council directs. The council may establish and provide for a publicity board or bureau <br />
         		<a id="pl.195.26"></a><var>195.26</var>to administer the fund, subject to the conditions and limitations the council prescribes <br />
         		<a id="pl.195.27"></a><var>195.27</var>by ordinance.<br />
         		<br />
         		<a id="bill.12.82.0"></a><a id="pl.195.28"></a><var>195.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 82. Minnesota Statutes 2010, section 469.206, is amended to read:<br />
         		<a id="pl.195.29"></a><var>195.29</var><b>469.206 HAZARDOUS PROPERTY PENALTY.</b><br />
         		<a id="pl.195.30"></a><var>195.30</var>A city may assess a penalty up to one percent of the estimated market value of <br />
         		<a id="pl.195.31"></a><var>195.31</var>real property, including any building located within the city that the city determines to <br />
         		<a id="pl.195.32"></a><var>195.32</var>be hazardous as defined in section 
         <statute_ref>463.15, subdivision 3</statute_ref>. The city shall send a written <br />
         		<a id="pl.196.1"></a><var>196.1</var>notice to the address to which the property tax statement is sent at least 90 days before it <br />
         		<a id="pl.196.2"></a><var>196.2</var>may assess the penalty. If the owner of the property has not paid the penalty or fixed the <br />
         		<a id="pl.196.3"></a><var>196.3</var>property within 90 days after receiving notice of the penalty, the penalty is considered <br />
         		<a id="pl.196.4"></a><var>196.4</var>delinquent and is increased by 25 percent each 60 days the penalty is not paid and the <br />
         		<a id="pl.196.5"></a><var>196.5</var>property remains hazardous. For the purposes of this section, a penalty that is delinquent <br />
         		<a id="pl.196.6"></a><var>196.6</var>is considered a delinquent property tax and subject to chapters 279, 280, and 281, in the <br />
         		<a id="pl.196.7"></a><var>196.7</var>same manner as delinquent property taxes.<br />
         		<br />
         		<a id="bill.12.83.0"></a><a id="pl.196.8"></a><var>196.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 83. Minnesota Statutes 2010, section 471.24, is amended to read:<br />
         		<a id="pl.196.9"></a><var>196.9</var><b>471.24 TOWNS, STATUTORY CITIES; JOINT MAINTENANCE OF </b><br />
         		<a id="pl.196.10"></a><var>196.10</var><b>CEMETERY.</b><br />
         		<a id="pl.196.11"></a><var>196.11</var>Where a statutory city or town owns and maintains an established cemetery or burial <br />
         		<a id="pl.196.12"></a><var>196.12</var>ground, either within or without the municipal limits, the statutory city or town may, by <br />
         		<a id="pl.196.13"></a><var>196.13</var>mutual agreement with contiguous statutory cities and towns, each having a an estimated <br />
         		<a id="pl.196.14"></a><var>196.14</var>market value of not less than $2,000,000, join together in the maintenance of such public <br />
         		<a id="pl.196.15"></a><var>196.15</var>cemetery or burial ground for the use of the inhabitants of each of such municipalities; and <br />
         		<a id="pl.196.16"></a><var>196.16</var>each such municipality is hereby authorized, by action of its council or governing body, <br />
         		<a id="pl.196.17"></a><var>196.17</var>to levy a tax or make an appropriation for the annual support and maintenance of such <br />
         		<a id="pl.196.18"></a><var>196.18</var>cemetery or burial ground; provided, the amount thus appropriated by each municipality <br />
         		<a id="pl.196.19"></a><var>196.19</var>shall not exceed a total of $10,000 in any one year.<br />
         		<br />
         		<a id="bill.12.84.0"></a><a id="pl.196.20"></a><var>196.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 84. Minnesota Statutes 2010, section 471.571, subdivision 1, is amended to read:<br />
         		<a id="pl.196.21"></a><var>196.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Application.</b> This section applies to each city in which the net tax <br />
         		<a id="pl.196.22"></a><var>196.22</var>capacity of real and personal property consists in part of iron ore or lands containing <br />
         		<a id="pl.196.23"></a><var>196.23</var>taconite or semitaconite and in which the total taxable estimated market value of real <br />
         		<a id="pl.196.24"></a><var>196.24</var>and personal property exceeds $2,500,000.<br />
         		<br />
         		<a id="bill.12.85.0"></a><a id="pl.196.25"></a><var>196.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 85. Minnesota Statutes 2010, section 471.571, subdivision 2, is amended to read:<br />
         		<a id="pl.196.26"></a><var>196.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Creation of fund, tax levy.</b> The governing body of the city may create a <br />
         		<a id="pl.196.27"></a><var>196.27</var>permanent improvement and replacement fund to be maintained by an annual tax levy. <br />
         		<a id="pl.196.28"></a><var>196.28</var>The governing body may levy a tax in excess of any charter limitation for the support of <br />
         		<a id="pl.196.29"></a><var>196.29</var>the permanent improvement and replacement fund, but not exceeding the following:<br />
         		<a id="pl.196.30"></a><var>196.30</var>(a) in cities having a population of not more than 500 inhabitants, the lesser of $20 <br />
         		<a id="pl.196.31"></a><var>196.31</var>per capita or 0.08059 percent of taxable estimated market value;<br />
         		<a id="pl.197.1"></a><var>197.1</var>(b) in cities having a population of more than 500 and less than 2500 2,500, the <br />
         		<a id="pl.197.2"></a><var>197.2</var>greater of $12.50 per capita or $10,000 but not exceeding 0.08059 percent of taxable <br />
         		<a id="pl.197.3"></a><var>197.3</var>estimated market value;<br />
         		<a id="pl.197.4"></a><var>197.4</var>(c) in cities having a population of more than 2500 2,500 or more inhabitants, <br />
         		<a id="pl.197.5"></a><var>197.5</var>the greater of $10 per capita or $31,500 but not exceeding 0.08059 percent of taxable <br />
         		<a id="pl.197.6"></a><var>197.6</var>estimated market value.<br />
         		<br />
         		<a id="bill.12.86.0"></a><a id="pl.197.7"></a><var>197.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 86. Minnesota Statutes 2010, section 471.73, is amended to read:<br />
         		<a id="pl.197.8"></a><var>197.8</var><b>471.73 ACCEPTANCE OF PROVISIONS.</b><br />
         		<a id="pl.197.9"></a><var>197.9</var>In the case of any city within the class specified in section 
         <statute_ref>471.72</statute_ref> having a an <br />
         		<a id="pl.197.10"></a><var>197.10</var>estimated  market value, as defined in section 
         <statute_ref>471.72</statute_ref>, in excess of $37,000,000; and in the <br />
         		<a id="pl.197.11"></a><var>197.11</var>case of any statutory city within such class having a an estimated market value, as defined <br />
         		<a id="pl.197.12"></a><var>197.12</var>in section 
         <statute_ref>471.72</statute_ref>, of less than $5,000,000; and in the case of any statutory city within such <br />
         		<a id="pl.197.13"></a><var>197.13</var>class which is governed by Laws 1933, chapter 211, or Laws 1937, chapter 356; and in <br />
         		<a id="pl.197.14"></a><var>197.14</var>the case of any statutory city within such class which is governed by Laws 1929, chapter <br />
         		<a id="pl.197.15"></a><var>197.15</var>208, and has a an estimated market value of less than $83,000,000; and in the case of <br />
         		<a id="pl.197.16"></a><var>197.16</var>any school district within such class having a an estimated market value, as defined in <br />
         		<a id="pl.197.17"></a><var>197.17</var>section 
         <statute_ref>471.72</statute_ref>, of more than $54,000,000; and in the case of all towns within said class; <br />
         		<a id="pl.197.18"></a><var>197.18</var>sections 
         <statute_ref>471.71</statute_ref> to 
         <statute_ref>471.83</statute_ref> apply only if the governing body of the city or statutory city, the <br />
         		<a id="pl.197.19"></a><var>197.19</var>board of the school district, or the town board of the town shall have adopted a resolution <br />
         		<a id="pl.197.20"></a><var>197.20</var>determining to issue bonds under the provisions of sections 
         <statute_ref>471.71</statute_ref> to 
         <statute_ref>471.83</statute_ref> or to go <br />
         		<a id="pl.197.21"></a><var>197.21</var>upon a cash basis in accordance with the provisions thereof.<br />
         		<br />
         		<a id="bill.12.87.0"></a><a id="pl.197.22"></a><var>197.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 87. Minnesota Statutes 2010, section 473.325, subdivision 2, is amended to read:<br />
         		<a id="pl.197.23"></a><var>197.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Chapter 475 applies; exceptions.</b> The Metropolitan Council shall sell and <br />
         		<a id="pl.197.24"></a><var>197.24</var>issue the bonds in the manner provided in chapter 475, and shall have the same powers <br />
         		<a id="pl.197.25"></a><var>197.25</var>and duties as a municipality issuing bonds under that law, except that the approval of a <br />
         		<a id="pl.197.26"></a><var>197.26</var>majority of the electors shall not be required and the net debt limitations shall not apply. <br />
         		<a id="pl.197.27"></a><var>197.27</var>The terms of each series of bonds shall be fixed so that the amount of principal and interest <br />
         		<a id="pl.197.28"></a><var>197.28</var>on all outstanding and undischarged bonds, together with the bonds proposed to be issued, <br />
         		<a id="pl.197.29"></a><var>197.29</var>due in any year shall not exceed 0.01209 percent of estimated market value of all taxable <br />
         		<a id="pl.197.30"></a><var>197.30</var>property in the metropolitan area as last finally equalized prior to a proposed issue. The <br />
         		<a id="pl.197.31"></a><var>197.31</var>bonds shall be secured in accordance with section 
         <statute_ref>475.61, subdivision 1</statute_ref>, and any taxes <br />
         		<a id="pl.197.32"></a><var>197.32</var>required for their payment shall be levied by the council, shall not affect the amount or rate <br />
         		<a id="pl.197.33"></a><var>197.33</var>of taxes which may be levied by the council for other purposes, shall be spread against all <br />
         		<a id="pl.197.34"></a><var>197.34</var>taxable property in the metropolitan area and shall not be subject to limitation as to rate or <br />
         		<a id="pl.198.1"></a><var>198.1</var>amount. Any taxes certified by the council to the county auditors for collection shall be <br />
         		<a id="pl.198.2"></a><var>198.2</var>reduced by the amount received by the council from the commissioner of management and <br />
         		<a id="pl.198.3"></a><var>198.3</var>budget or the federal government for the purpose of paying the principal and interest on <br />
         		<a id="pl.198.4"></a><var>198.4</var>bonds to which the levy relates. The council shall certify the fact and amount of all money <br />
         		<a id="pl.198.5"></a><var>198.5</var>so received to the county auditors, and the auditors shall reduce the levies previously made <br />
         		<a id="pl.198.6"></a><var>198.6</var>for the bonds in the manner and to the extent provided in section 
         <statute_ref>475.61, subdivision 3</statute_ref>.<br />
         		<br />
         		<a id="bill.12.88.0"></a><a id="pl.198.7"></a><var>198.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 88. Minnesota Statutes 2010, section 473.629, is amended to read:<br />
         		<a id="pl.198.8"></a><var>198.8</var><b>473.629 VALUE OF PROPERTY FOR BOND ISSUES BY SCHOOL </b><br />
         		<a id="pl.198.9"></a><var>198.9</var><b>DISTRICTS.</b><br />
         		<a id="pl.198.10"></a><var>198.10</var>As to any lands to be detached from any school district under the provisions hereof <br />
         		<a id="pl.198.11"></a><var>198.11</var>section 473.625, notwithstanding such prospective the detachment, the estimated market <br />
         		<a id="pl.198.12"></a><var>198.12</var>value of such the detached lands and the net tax capacity of taxable properties now located <br />
         		<a id="pl.198.13"></a><var>198.13</var>therein or thereon shall be and on the lands on the date of the detachment constitute <br />
         		<a id="pl.198.14"></a><var>198.14</var>from and after the date of the enactment hereof a part of the estimated market value of <br />
         		<a id="pl.198.15"></a><var>198.15</var>properties upon the basis of which such used to calculate the net debt limit of the school <br />
         		<a id="pl.198.16"></a><var>198.16</var>district may issue its bonds,. The value of such the lands for such purpose to be and other <br />
         		<a id="pl.198.17"></a><var>198.17</var>taxable properties for purposes of the school district's net debt limit are 33-1/3 percent of <br />
         		<a id="pl.198.18"></a><var>198.18</var>the estimated market value thereof as determined and certified by said the assessor to said <br />
         		<a id="pl.198.19"></a><var>198.19</var>the school district, and it shall be the duty of such the assessor annually on or before the <br />
         		<a id="pl.198.20"></a><var>198.20</var>tenth day of October from and after the passage hereof, to so of each year, shall determine <br />
         		<a id="pl.198.21"></a><var>198.21</var>and certify that value; provided, however, that the value of such the detached lands and <br />
         		<a id="pl.198.22"></a><var>198.22</var>such taxable properties shall never exceed 20 percent of the estimated market value of <br />
         		<a id="pl.198.23"></a><var>198.23</var>all properties constituting and making up the basis aforesaid used to calculate the net <br />
         		<a id="pl.198.24"></a><var>198.24</var>debt limit of the school district.<br />
         		<br />
         		<a id="bill.12.89.0"></a><a id="pl.198.25"></a><var>198.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 89. Minnesota Statutes 2010, section 473.661, subdivision 3, is amended to read:<br />
         		<a id="pl.198.26"></a><var>198.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Levy limit.</b> In any budget certified by the commissioners under this <br />
         		<a id="pl.198.27"></a><var>198.27</var>section, the amount included for operation and maintenance shall not exceed an amount <br />
         		<a id="pl.198.28"></a><var>198.28</var>which, when extended against the property taxable therefor under section 
         <statute_ref>473.621, <br />
            		<a id="pl.198.29"></a><var>198.29</var>subdivision 5
         </statute_ref>, will require a levy at a rate of 0.00806 percent of estimated market value. <br />
         		<a id="pl.198.30"></a><var>198.30</var>Taxes levied by the corporation shall not affect the amount or rate of taxes which may <br />
         		<a id="pl.198.31"></a><var>198.31</var>be levied by any other local government unit within the metropolitan area under the <br />
         		<a id="pl.198.32"></a><var>198.32</var>provisions of any charter.<br />
         		<br />
         		<a id="bill.12.90.0"></a><a id="pl.198.33"></a><var>198.33</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 90. Minnesota Statutes 2010, section 473.667, subdivision 9, is amended to read:<br />
         		<a id="pl.199.1"></a><var>199.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 9. <b>Additional taxes.</b> Nothing herein shall prevent the commission from <br />
         		<a id="pl.199.2"></a><var>199.2</var>levying a tax not to exceed 0.00121 percent of estimated market value on taxable property <br />
         		<a id="pl.199.3"></a><var>199.3</var>within its taxing jurisdiction, in addition to any levies found necessary for the debt <br />
         		<a id="pl.199.4"></a><var>199.4</var>service fund authorized by section 
         <statute_ref>473.671</statute_ref>. Nothing herein shall prevent the levy and <br />
         		<a id="pl.199.5"></a><var>199.5</var>appropriation for purposes of the commission of any other tax on property or on any <br />
         		<a id="pl.199.6"></a><var>199.6</var>income, transaction, or privilege, when and if authorized by law. All collections of any <br />
         		<a id="pl.199.7"></a><var>199.7</var>taxes so levied shall be included in the revenues appropriated for the purposes referred <br />
         		<a id="pl.199.8"></a><var>199.8</var>to in this section, unless otherwise provided in the law authorizing the levies; but no <br />
         		<a id="pl.199.9"></a><var>199.9</var>covenant as to the continuance or as to the rate and amount of any such levy shall be made <br />
         		<a id="pl.199.10"></a><var>199.10</var>with the holders of the commission's bonds unless specifically authorized by law.<br />
         		<br />
         		<a id="bill.12.91.0"></a><a id="pl.199.11"></a><var>199.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 91. Minnesota Statutes 2010, section 473.671, is amended to read:<br />
         		<a id="pl.199.12"></a><var>199.12</var><b>473.671 LIMIT OF TAX LEVY.</b><br />
         		<a id="pl.199.13"></a><var>199.13</var>The taxes levied against the property of the metropolitan area in any one year shall <br />
         		<a id="pl.199.14"></a><var>199.14</var>not exceed 0.00806 percent of taxable estimated market value, exclusive of taxes levied <br />
         		<a id="pl.199.15"></a><var>199.15</var>to pay the principal or interest on any bonds or indebtedness of the city issued under <br />
         		<a id="pl.199.16"></a><var>199.16</var>Laws 1943, chapter 500, and exclusive of any taxes levied to pay the share of the city for <br />
         		<a id="pl.199.17"></a><var>199.17</var>payments on bonded indebtedness of the corporation provided for in Laws 1943, chapter <br />
         		<a id="pl.199.18"></a><var>199.18</var>500. The levy of taxes authorized in Laws 1943, chapter 500, shall be in addition to the <br />
         		<a id="pl.199.19"></a><var>199.19</var>maximum rate allowed to be levied to defray the cost of government under the provisions <br />
         		<a id="pl.199.20"></a><var>199.20</var>of the charter of any city affected by Laws 1943, chapter 500.<br />
         		<br />
         		<a id="bill.12.92.0"></a><a id="pl.199.21"></a><var>199.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 92. Minnesota Statutes 2010, section 473.711, subdivision 2a, is amended to read:<br />
         		<a id="pl.199.22"></a><var>199.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2a. <b>Tax levy.</b> (a) The commission may levy a tax on all taxable property in <br />
         		<a id="pl.199.23"></a><var>199.23</var>the district as defined in section 
         <statute_ref>473.702</statute_ref> to provide funds for the purposes of sections <br />
         		
         <statute_ref><a id="pl.199.24"></a><var>199.24</var>473.701
         </statute_ref> to 
         <statute_ref>473.716</statute_ref>. The tax shall not exceed the property tax levy limitation determined <br />
         		<a id="pl.199.25"></a><var>199.25</var>in this subdivision. A participating county may agree to levy an additional tax to be used <br />
         		<a id="pl.199.26"></a><var>199.26</var>by the commission for the purposes of sections 
         <statute_ref>473.701</statute_ref> to 
         <statute_ref>473.716</statute_ref> but the sum of the <br />
         		<a id="pl.199.27"></a><var>199.27</var>county's and commission's taxes may not exceed the county's proportionate share of <br />
         		<a id="pl.199.28"></a><var>199.28</var>the property tax levy limitation determined under this subdivision based on the ratio of <br />
         		<a id="pl.199.29"></a><var>199.29</var>its total net tax capacity to the total net tax capacity of the entire district as adjusted by <br />
         		<a id="pl.199.30"></a><var>199.30</var>section 
         <statute_ref>270.12, subdivision 3</statute_ref>. The auditor of each county in the district shall add the <br />
         		<a id="pl.199.31"></a><var>199.31</var>amount of the levy made by the district to other taxes of the county for collection by <br />
         		<a id="pl.199.32"></a><var>199.32</var>the county treasurer with other taxes. When collected, the county treasurer shall make <br />
         		<a id="pl.199.33"></a><var>199.33</var>settlement of the tax with the district in the same manner as other taxes are distributed <br />
         		<a id="pl.199.34"></a><var>199.34</var>to political subdivisions. No county shall levy any tax for mosquito, disease vectoring <br />
         		<a id="pl.200.1"></a><var>200.1</var>tick, and black gnat (Simuliidae) control except under this section. The levy shall be in <br />
         		<a id="pl.200.2"></a><var>200.2</var>addition to other taxes authorized by law.<br />
         		<a id="pl.200.3"></a><var>200.3</var>(b) The property tax levied by the Metropolitan Mosquito Control Commission shall <br />
         		<a id="pl.200.4"></a><var>200.4</var>not exceed the product of (i) the commission's property tax levy limitation for the previous <br />
         		<a id="pl.200.5"></a><var>200.5</var>year determined under this subdivision multiplied by (ii) an index for market valuation <br />
         		<a id="pl.200.6"></a><var>200.6</var>changes equal to the total estimated market valuation value of all taxable property for the <br />
         		<a id="pl.200.7"></a><var>200.7</var>current tax payable year located within the district plus any area that has been added to the <br />
         		<a id="pl.200.8"></a><var>200.8</var>district since the previous year, divided by the total estimated market valuation value of all <br />
         		<a id="pl.200.9"></a><var>200.9</var>taxable property located within the district for the previous taxes payable year.<br />
         		<a id="pl.200.10"></a><var>200.10</var>(c) For the purpose of determining the commission's property tax levy limitation <br />
         		<a id="pl.200.11"></a><var>200.11</var>under this subdivision, "total market valuation" means the total market valuation of all <br />
         		<a id="pl.200.12"></a><var>200.12</var>taxable property within the district without valuation adjustments for fiscal disparities <br />
         		<a id="pl.200.13"></a><var>200.13</var>(chapter 473F), tax increment financing (sections 
         <statute_ref>469.174</statute_ref> to 469.179), and high voltage <br />
         		<a id="pl.200.14"></a><var>200.14</var>transmission lines (section 273.425).<br />
         		<br />
         		<a id="bill.12.93.0"></a><a id="pl.200.15"></a><var>200.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 93. Minnesota Statutes 2010, section 473F.02, subdivision 12, is amended to read:<br />
         		<a id="pl.200.16"></a><var>200.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 12. <b>Adjusted </b><b>market value.</b> "Adjusted market value" of real and personal <br />
         		<a id="pl.200.17"></a><var>200.17</var>property within a municipality means the assessor's estimated taxable market value, <br />
         		<a id="pl.200.18"></a><var>200.18</var>as defined in section 272.03, of all real and personal property, including the value of <br />
         		<a id="pl.200.19"></a><var>200.19</var>manufactured housing, within the municipality, adjusted for sales ratios in a manner <br />
         		<a id="pl.200.20"></a><var>200.20</var>similar to the adjustments made to city and town net tax capacities . For purposes <br />
         		<a id="pl.200.21"></a><var>200.21</var>of sections 
         <statute_ref>473F.01</statute_ref> to 
         <statute_ref>473F.13</statute_ref>, the commissioner of revenue shall annually make <br />
         		<a id="pl.200.22"></a><var>200.22</var>determinations and reports with respect to each municipality which are comparable to <br />
         		<a id="pl.200.23"></a><var>200.23</var>those it makes for school districts under section 
         <statute_ref>127A.48, subdivisions 1 to 6</statute_ref>, in the same <br />
         		<a id="pl.200.24"></a><var>200.24</var>manner and at the same times as are prescribed by the subdivisions. The commissioner <br />
         		<a id="pl.200.25"></a><var>200.25</var>of revenue shall annually determine, for each municipality, information comparable to <br />
         		<a id="pl.200.26"></a><var>200.26</var>that required by section 
         <statute_ref>475.53, subdivision 4</statute_ref>, for school districts, as soon as practicable <br />
         		<a id="pl.200.27"></a><var>200.27</var>after it becomes available. The commissioner of revenue shall then compute the equalized <br />
         		<a id="pl.200.28"></a><var>200.28</var>market value of property within each municipality using the aggregate sales ratios from <br />
         		<a id="pl.200.29"></a><var>200.29</var>the Department of Revenue's sales ratio study.<br />
         		<br />
         		<a id="bill.12.94.0"></a><a id="pl.200.30"></a><var>200.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 94. Minnesota Statutes 2010, section 473F.02, subdivision 14, is amended to read:<br />
         		<a id="pl.200.31"></a><var>200.31</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 14. <b>Fiscal capacity.</b> "Fiscal capacity" of a municipality means its valuation <br />
         		<a id="pl.200.32"></a><var>200.32</var>adjusted market value, determined as of January 2 of any year, divided by its population, <br />
         		<a id="pl.200.33"></a><var>200.33</var>determined as of a date in the same year.<br />
         		<br />
         		<a id="bill.12.95.0"></a><a id="pl.201.1"></a><var>201.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 95. Minnesota Statutes 2010, section 473F.02, subdivision 15, is amended to read:<br />
         		<a id="pl.201.2"></a><var>201.2</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 15. <b>Average fiscal capacity.</b> "Average fiscal capacity" of municipalities <br />
         		<a id="pl.201.3"></a><var>201.3</var>means the sum of the valuations adjusted market values of all municipalities, determined <br />
         		<a id="pl.201.4"></a><var>201.4</var>as of January 2 of any year, divided by the sum of their populations, determined as of <br />
         		<a id="pl.201.5"></a><var>201.5</var>a date in the same year.<br />
         		<br />
         		<a id="bill.12.96.0"></a><a id="pl.201.6"></a><var>201.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 96. Minnesota Statutes 2010, section 473F.02, subdivision 23, is amended to read:<br />
         		<a id="pl.201.7"></a><var>201.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 23. <b>Net tax capacity.</b> "Net tax capacity" means the taxable market value of <br />
         		<a id="pl.201.8"></a><var>201.8</var>real and personal property multiplied by its net tax capacity rates in section 
         <statute_ref>273.13</statute_ref>.<br />
         		<br />
         		<a id="bill.12.97.0"></a><a id="pl.201.9"></a><var>201.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 97. Minnesota Statutes 2010, section 475.521, subdivision 4, is amended to read:<br />
         		<a id="pl.201.10"></a><var>201.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Limitations on amount.</b> A municipality may not issue bonds under this <br />
         		<a id="pl.201.11"></a><var>201.11</var>section if the maximum amount of principal and interest to become due in any year on <br />
         		<a id="pl.201.12"></a><var>201.12</var>all the outstanding bonds issued under this section, including the bonds to be issued, <br />
         		<a id="pl.201.13"></a><var>201.13</var>will equal or exceed 0.16 percent of the taxable estimated market value of property <br />
         		<a id="pl.201.14"></a><var>201.14</var>in the municipality. Calculation of the limit must be made using the taxable estimated <br />
         		<a id="pl.201.15"></a><var>201.15</var>market value for the taxes payable year in which the obligations are issued and sold. In <br />
         		<a id="pl.201.16"></a><var>201.16</var>the case of a municipality with a population of 2,500 or more, the bonds are subject to <br />
         		<a id="pl.201.17"></a><var>201.17</var>the net debt limits under section 
         <statute_ref>475.53</statute_ref>. In the case of a shared facility in which more <br />
         		<a id="pl.201.18"></a><var>201.18</var>than one municipality participates, upon compliance by each participating municipality <br />
         		<a id="pl.201.19"></a><var>201.19</var>with the requirements of subdivision 2, the limitations in this subdivision and the net debt <br />
         		<a id="pl.201.20"></a><var>201.20</var>represented by the bonds shall be allocated to each participating municipality in proportion <br />
         		<a id="pl.201.21"></a><var>201.21</var>to its required financial contribution to the financing of the shared facility, as set forth in <br />
         		<a id="pl.201.22"></a><var>201.22</var>the joint powers agreement relating to the shared facility. This section does not limit the <br />
         		<a id="pl.201.23"></a><var>201.23</var>authority to issue bonds under any other special or general law.<br />
         		<br />
         		<a id="bill.12.98.0"></a><a id="pl.201.24"></a><var>201.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 98. Minnesota Statutes 2010, section 475.53, subdivision 1, is amended to read:<br />
         		<a id="pl.201.25"></a><var>201.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Generally.</b> Except as otherwise provided in sections 
         <statute_ref>475.51</statute_ref> to <br />
         		
         <statute_ref><a id="pl.201.26"></a><var>201.26</var>475.74
         </statute_ref>, no municipality, except a school district or a city of the first class, shall incur or be <br />
         		<a id="pl.201.27"></a><var>201.27</var>subject to a net debt in excess of three percent of the estimated market value of taxable <br />
         		<a id="pl.201.28"></a><var>201.28</var>property in the municipality.<br />
         		<br />
         		<a id="bill.12.99.0"></a><a id="pl.201.29"></a><var>201.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 99. Minnesota Statutes 2010, section 475.53, subdivision 3, is amended to read:<br />
         		<a id="pl.201.30"></a><var>201.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Cities first class.</b> Unless its charter permits a greater net debt a city of <br />
         		<a id="pl.201.31"></a><var>201.31</var>the first class may not incur a net debt in excess of two percent of the estimated market <br />
         		<a id="pl.201.32"></a><var>201.32</var>value of all taxable property therein. If the charter of the city permits a net debt of the city <br />
         		<a id="pl.202.1"></a><var>202.1</var>in excess of two percent of its valuation, it may not incur a net debt in excess of 3-2/3 <br />
         		<a id="pl.202.2"></a><var>202.2</var>percent of the estimated market value of the taxable property therein.<br />
         		<a id="pl.202.3"></a><var>202.3</var>The county auditor, at the time of preparing the tax list of the city, shall compile a <br />
         		<a id="pl.202.4"></a><var>202.4</var>statement setting forth the total net tax capacity and the total estimated market value of <br />
         		<a id="pl.202.5"></a><var>202.5</var>each class of taxable property in such city for such year.<br />
         		<br />
         		<a id="bill.12.100.0"></a><a id="pl.202.6"></a><var>202.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 100. Minnesota Statutes 2010, section 475.53, subdivision 4, is amended to read:<br />
         		<a id="pl.202.7"></a><var>202.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>School districts.</b> Except as otherwise provided by law, no school district <br />
         		<a id="pl.202.8"></a><var>202.8</var>shall be subject to a net debt in excess of 15 percent of the actual estimated  market value <br />
         		<a id="pl.202.9"></a><var>202.9</var>of all taxable property situated within its corporate limits, as computed in accordance with <br />
         		<a id="pl.202.10"></a><var>202.10</var>this subdivision. The county auditor of each county containing taxable real or personal <br />
         		<a id="pl.202.11"></a><var>202.11</var>property situated within any school district shall certify to the district upon request the <br />
         		<a id="pl.202.12"></a><var>202.12</var>estimated market value of all such property. Whenever the commissioner of revenue, in <br />
         		<a id="pl.202.13"></a><var>202.13</var>accordance with section 
         <statute_ref>127A.48, subdivisions 1 to 6</statute_ref>, has determined that the net tax <br />
         		<a id="pl.202.14"></a><var>202.14</var>capacity of any district furnished by county auditors is not based upon the adjusted market <br />
         		<a id="pl.202.15"></a><var>202.15</var>value of taxable property in the district exceeds the estimated market value of property <br />
         		<a id="pl.202.16"></a><var>202.16</var>within the district, the commissioner of revenue shall certify to the district upon request <br />
         		<a id="pl.202.17"></a><var>202.17</var>the ratio most recently ascertained to exist between such the estimated market  value and <br />
         		<a id="pl.202.18"></a><var>202.18</var>the actual adjusted market value of property within the district., and the actual market <br />
         		<a id="pl.202.19"></a><var>202.19</var>value of property within a district, on which its debt limit under this subdivision is will <br />
         		<a id="pl.202.20"></a><var>202.20</var>be  based, is (a) the value certified by the county auditors, or (b) this on the estimated <br />
         		<a id="pl.202.21"></a><var>202.21</var>market value divided by the ratio certified by the commissioner of revenue, whichever <br />
         		<a id="pl.202.22"></a><var>202.22</var>results in a higher value.<br />
         		<br />
         		<a id="bill.12.101.0"></a><a id="pl.202.23"></a><var>202.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 101. Minnesota Statutes 2010, section 475.58, subdivision 2, is amended to read:<br />
         		<a id="pl.202.24"></a><var>202.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Funding, refunding.</b> Any county, city, town, or school district whose <br />
         		<a id="pl.202.25"></a><var>202.25</var>outstanding gross debt, including all items referred to in section 
         <statute_ref>475.51, subdivision <br />
            		<a id="pl.202.26"></a><var>202.26</var>4
         </statute_ref>, exceed in amount 1.62 percent of its estimated market value may issue bonds under <br />
         		<a id="pl.202.27"></a><var>202.27</var>this subdivision for the purpose of funding or refunding such indebtedness or any part <br />
         		<a id="pl.202.28"></a><var>202.28</var>thereof. A list of the items of indebtedness to be funded or refunded shall be made by the <br />
         		<a id="pl.202.29"></a><var>202.29</var>recording officer and treasurer and filed in the office of the recording officer. The initial <br />
         		<a id="pl.202.30"></a><var>202.30</var>resolution of the governing body shall refer to this subdivision as authority for the issue, <br />
         		<a id="pl.202.31"></a><var>202.31</var>state the amount of bonds to be issued and refer to the list of indebtedness to be funded or <br />
         		<a id="pl.202.32"></a><var>202.32</var>refunded. This resolution shall be published once each week for two successive weeks <br />
         		<a id="pl.202.33"></a><var>202.33</var>in a legal newspaper published in the municipality or if there be no such newspaper, in <br />
         		<a id="pl.202.34"></a><var>202.34</var>a legal newspaper published in the county seat. Such bonds may be issued without the <br />
         		<a id="pl.203.1"></a><var>203.1</var>submission of the question of their issue to the electors unless within ten days after the <br />
         		<a id="pl.203.2"></a><var>203.2</var>second publication of the resolution a petition requesting such election signed by ten or <br />
         		<a id="pl.203.3"></a><var>203.3</var>more voters who are taxpayers of the municipality, shall be filed with the recording officer. <br />
         		<a id="pl.203.4"></a><var>203.4</var>In event such petition is filed, no bonds shall be issued hereunder unless authorized by a <br />
         		<a id="pl.203.5"></a><var>203.5</var>majority of the electors voting on the question.<br />
         		<br />
         		<a id="bill.12.102.0"></a><a id="pl.203.6"></a><var>203.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 102. Minnesota Statutes 2010, section 475.73, subdivision 1, is amended to read:<br />
         		<a id="pl.203.7"></a><var>203.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>May purchase these bonds; conditions.</b> Obligations sold under the <br />
         		<a id="pl.203.8"></a><var>203.8</var>provisions of section 
         <statute_ref>475.60</statute_ref> may be purchased by the State Board of Investment if the <br />
         		<a id="pl.203.9"></a><var>203.9</var>obligations meet the requirements of section 
         <statute_ref>11A.24, subdivision 2</statute_ref>, upon the approval of <br />
         		<a id="pl.203.10"></a><var>203.10</var>the attorney general as to form and execution of the application therefor, and under rules <br />
         		<a id="pl.203.11"></a><var>203.11</var>as the board may specify, and the state board shall have authority to purchase the same <br />
         		<a id="pl.203.12"></a><var>203.12</var>to an amount not exceeding 
         <statute_ref>3.63</statute_ref> percent of the estimated market value of the taxable <br />
         		<a id="pl.203.13"></a><var>203.13</var>property of the municipality, according to the last preceding assessment. The obligations <br />
         		<a id="pl.203.14"></a><var>203.14</var>shall not run for a shorter period than one year, nor for a longer period than 30 years and <br />
         		<a id="pl.203.15"></a><var>203.15</var>shall bear interest at a rate to be fixed by the state board but not less than two percent per <br />
         		<a id="pl.203.16"></a><var>203.16</var>annum. Forthwith upon the delivery to the state of Minnesota of any obligations issued by <br />
         		<a id="pl.203.17"></a><var>203.17</var>virtue thereof, the commissioner of management and budget shall certify to the respective <br />
         		<a id="pl.203.18"></a><var>203.18</var>auditors of the various counties wherein are situated the municipalities issuing the same, <br />
         		<a id="pl.203.19"></a><var>203.19</var>the number, denomination, amount, rate of interest and date of maturity of each obligation.<br />
         		<br />
         		<a id="bill.12.103.0"></a><a id="pl.203.20"></a><var>203.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 103. Minnesota Statutes 2011 Supplement, section 477A.011, subdivision 20, <br />
         		<a id="pl.203.21"></a><var>203.21</var>is amended to read:<br />
         		<a id="pl.203.22"></a><var>203.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 20. <b>City net tax capacity.</b> "City net tax capacity" means (1) the net tax <br />
         		<a id="pl.203.23"></a><var>203.23</var>capacity computed using the net tax capacity rates in section 
         <statute_ref>273.13</statute_ref> for taxes payable <br />
         		<a id="pl.203.24"></a><var>203.24</var>in the year of the aid distribution, and the market values, after the exclusion in section <br />
         		<a id="pl.203.25"></a><var>203.25</var><statute_ref>273.13, subdivision 35</statute_ref>, for taxes payable in the year prior to the aid distribution plus (2) <br />
         		<a id="pl.203.26"></a><var>203.26</var>a city's fiscal disparities distribution tax capacity under section 
         <statute_ref>276A.06, subdivision 2</statute_ref>, <br />
         		<a id="pl.203.27"></a><var>203.27</var>paragraph (b), or 
         <statute_ref>473F.08, subdivision 2</statute_ref>, paragraph (b), for taxes payable in the year prior <br />
         		<a id="pl.203.28"></a><var>203.28</var>to that for which aids are being calculated. The market value utilized in computing city <br />
         		<a id="pl.203.29"></a><var>203.29</var>net tax capacity shall be reduced by the sum of (1) a city's market value of commercial <br />
         		<a id="pl.203.30"></a><var>203.30</var>industrial property as defined in section 
         <statute_ref>276A.01, subdivision 3</statute_ref>, or 
         <statute_ref>473F.02, subdivision 3</statute_ref>, <br />
         		<a id="pl.203.31"></a><var>203.31</var>multiplied by the ratio determined pursuant to section 
         <statute_ref>276A.06, subdivision 2</statute_ref>, paragraph <br />
         		<a id="pl.203.32"></a><var>203.32</var>(a), or 
         <statute_ref>473F.08, subdivision 2</statute_ref>, paragraph (a), (2) the market value of the captured value <br />
         		<a id="pl.203.33"></a><var>203.33</var>of tax increment financing districts as defined in section 
         <statute_ref>469.177, subdivision 2</statute_ref>, and (3) <br />
         		<a id="pl.203.34"></a><var>203.34</var>the market value of transmission lines deducted from a city's total net tax capacity under <br />
         		<a id="pl.204.1"></a><var>204.1</var>section 
         <statute_ref>273.425</statute_ref>. The city net tax capacity will be computed using equalized market values <br />
         		<a id="pl.204.2"></a><var>204.2</var>the city's adjusted net tax capacity under section 273.1325.<br />
         		<a id="pl.204.3"></a><var>204.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.12.104.0"></a><a id="pl.204.4"></a><var>204.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 104. Minnesota Statutes 2010, section 477A.011, subdivision 32, is amended to <br />
         		<a id="pl.204.5"></a><var>204.5</var>read:<br />
         		<a id="pl.204.6"></a><var>204.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 32. <b>Commercial industrial percentage.</b> "Commercial industrial percentage" <br />
         		<a id="pl.204.7"></a><var>204.7</var>for a city is 100 times the sum of the estimated market values of all real property in the <br />
         		<a id="pl.204.8"></a><var>204.8</var>city classified as class 3 under section 
         <statute_ref>273.13, subdivision 24</statute_ref>, excluding public utility <br />
         		<a id="pl.204.9"></a><var>204.9</var>property, to the total estimated market value of all taxable real and personal property in <br />
         		<a id="pl.204.10"></a><var>204.10</var>the city. The estimated market values are the amounts computed before any adjustments <br />
         		<a id="pl.204.11"></a><var>204.11</var>for fiscal disparities under section 
         <statute_ref>276A.06</statute_ref> or 
         <statute_ref>473F.08</statute_ref>. The estimated market values <br />
         		<a id="pl.204.12"></a><var>204.12</var>used for this subdivision are not equalized.<br />
         		<a id="pl.204.13"></a><var>204.13</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in 2014 and <br />
         		<a id="pl.204.14"></a><var>204.14</var>thereafter.<br />
         		<br />
         		<a id="bill.12.105.0"></a><a id="pl.204.15"></a><var>204.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 105. Minnesota Statutes 2010, section 477A.0124, subdivision 2, is amended to <br />
         		<a id="pl.204.16"></a><var>204.16</var>read:<br />
         		<a id="pl.204.17"></a><var>204.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Definitions.</b> (a) For the purposes of this section, the following terms <br />
         		<a id="pl.204.18"></a><var>204.18</var>have the meanings given them.<br />
         		<a id="pl.204.19"></a><var>204.19</var>(b) "County program aid" means the sum of "county need aid," "county tax base <br />
         		<a id="pl.204.20"></a><var>204.20</var>equalization aid," and "county transition aid."<br />
         		<a id="pl.204.21"></a><var>204.21</var>(c) "Age-adjusted population" means a county's population multiplied by the county <br />
         		<a id="pl.204.22"></a><var>204.22</var>age index.<br />
         		<a id="pl.204.23"></a><var>204.23</var>(d) "County age index" means the percentage of the population over age 65 within <br />
         		<a id="pl.204.24"></a><var>204.24</var>the county divided by the percentage of the population over age 65 within the state, except <br />
         		<a id="pl.204.25"></a><var>204.25</var>that the age index for any county may not be greater than 1.8 nor less than 0.8.<br />
         		<a id="pl.204.26"></a><var>204.26</var>(e) "Population over age 65" means the population over age 65 established as of <br />
         		<a id="pl.204.27"></a><var>204.27</var>July 15 in an aid calculation year by the most recent federal census, by a special census <br />
         		<a id="pl.204.28"></a><var>204.28</var>conducted under contract with the United States Bureau of the Census, by a population <br />
         		<a id="pl.204.29"></a><var>204.29</var>estimate made by the Metropolitan Council, or by a population estimate of the state <br />
         		<a id="pl.204.30"></a><var>204.30</var>demographer made pursuant to section 
         <statute_ref>4A.02</statute_ref>, whichever is the most recent as to the stated <br />
         		<a id="pl.204.31"></a><var>204.31</var>date of the count or estimate for the preceding calendar year and which has been certified <br />
         		<a id="pl.204.32"></a><var>204.32</var>to the commissioner of revenue on or before July 15 of the aid calculation year. A revision <br />
         		<a id="pl.204.33"></a><var>204.33</var>to an estimate or count is effective for these purposes only if certified to the commissioner <br />
         		<a id="pl.205.1"></a><var>205.1</var>on or before July 15 of the aid calculation year. Clerical errors in the certification or use of <br />
         		<a id="pl.205.2"></a><var>205.2</var>estimates and counts established as of July 15 in the aid calculation year are subject to <br />
         		<a id="pl.205.3"></a><var>205.3</var>correction within the time periods allowed under section 
         <statute_ref>477A.014</statute_ref>.<br />
         		<a id="pl.205.4"></a><var>205.4</var>(f) "Part I crimes" means the three-year average annual number of Part I crimes <br />
         		<a id="pl.205.5"></a><var>205.5</var>reported for each county by the Department of Public Safety for the most recent years <br />
         		<a id="pl.205.6"></a><var>205.6</var>available. By July 1 of each year, the commissioner of public safety shall certify to the <br />
         		<a id="pl.205.7"></a><var>205.7</var>commissioner of revenue the number of Part I crimes reported for each county for the <br />
         		<a id="pl.205.8"></a><var>205.8</var>three most recent calendar years available.<br />
         		<a id="pl.205.9"></a><var>205.9</var>(g) "Households receiving food stamps" means the average monthly number of <br />
         		<a id="pl.205.10"></a><var>205.10</var>households receiving food stamps for the three most recent years for which data is <br />
         		<a id="pl.205.11"></a><var>205.11</var>available. By July 1 of each year, the commissioner of human services must certify to the <br />
         		<a id="pl.205.12"></a><var>205.12</var>commissioner of revenue the average monthly number of households in the state and in <br />
         		<a id="pl.205.13"></a><var>205.13</var>each county that receive food stamps, for the three most recent calendar years available.<br />
         		<a id="pl.205.14"></a><var>205.14</var>(h) "County net tax capacity" means the net tax capacity of the county, computed <br />
         		<a id="pl.205.15"></a><var>205.15</var>analogously to city net tax capacity under section 
         <statute_ref>477A.011, subdivision 20</statute_ref> county's <br />
         		<a id="pl.205.16"></a><var>205.16</var>adjusted net tax capacity under section 273.1325.<br />
         		<a id="pl.205.17"></a><var>205.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.12.106.0"></a><a id="pl.205.18"></a><var>205.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 106. Minnesota Statutes 2010, section 641.23, is amended to read:<br />
         		<a id="pl.205.19"></a><var>205.19</var><b>641.23 FUNDS; HOW PROVIDED.</b><br />
         		<a id="pl.205.20"></a><var>205.20</var>Before any contract is made for the erection of a county jail, sheriff's residence, or <br />
         		<a id="pl.205.21"></a><var>205.21</var>both, the county board shall either levy a sufficient tax to provide the necessary funds, or <br />
         		<a id="pl.205.22"></a><var>205.22</var>issue county bonds therefor in accordance with the provisions of chapter 475, provided <br />
         		<a id="pl.205.23"></a><var>205.23</var>that no election is required if the amount of all bonds issued for this purpose and interest <br />
         		<a id="pl.205.24"></a><var>205.24</var>on them which are due and payable in any year does not exceed an amount equal to <br />
         		<a id="pl.205.25"></a><var>205.25</var>0.09671 percent of estimated market value of taxable property within the county, as last <br />
         		<a id="pl.205.26"></a><var>205.26</var>determined before the bonds are issued.<br />
         		<br />
         		<a id="bill.12.107.0"></a><a id="pl.205.27"></a><var>205.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 107. Minnesota Statutes 2010, section 641.24, is amended to read:<br />
         		<a id="pl.205.28"></a><var>205.28</var><b>641.24 LEASING.</b><br />
         		<a id="pl.205.29"></a><var>205.29</var>The county may, by resolution of the county board, enter into a lease agreement with <br />
         		<a id="pl.205.30"></a><var>205.30</var>any statutory or home rule charter city situated within the county, or a county housing and <br />
         		<a id="pl.205.31"></a><var>205.31</var>redevelopment authority established pursuant to chapter 469 or any special law whereby <br />
         		<a id="pl.205.32"></a><var>205.32</var>the city or county housing and redevelopment authority will construct a jail or other law <br />
         		<a id="pl.205.33"></a><var>205.33</var>enforcement facilities for the county sheriff, deputy sheriffs, and other employees of the <br />
         		<a id="pl.206.1"></a><var>206.1</var>sheriff and other law enforcement agencies, in accordance with plans prepared by or at <br />
         		<a id="pl.206.2"></a><var>206.2</var>the request of the county board and, when required, approved by the commissioner of <br />
         		<a id="pl.206.3"></a><var>206.3</var>corrections and will finance it by the issuance of revenue bonds, and the county may lease <br />
         		<a id="pl.206.4"></a><var>206.4</var>the site and improvements for a term and upon rentals sufficient to produce revenue for the <br />
         		<a id="pl.206.5"></a><var>206.5</var>prompt payment of the bonds and all interest accruing thereon and, upon completion of <br />
         		<a id="pl.206.6"></a><var>206.6</var>payment, will acquire title thereto. The real and personal property acquired for the jail <br />
         		<a id="pl.206.7"></a><var>206.7</var>shall constitute a project and the lease agreement shall constitute a revenue agreement <br />
         		<a id="pl.206.8"></a><var>206.8</var>as contemplated in chapter 469, and all proceedings shall be taken by the city or county <br />
         		<a id="pl.206.9"></a><var>206.9</var>housing and redevelopment authority and the county in the manner and with the force and <br />
         		<a id="pl.206.10"></a><var>206.10</var>effect provided in chapter 469; provided that:<br />
         		<a id="pl.206.11"></a><var>206.11</var>(1) no tax shall be imposed upon or in lieu of a tax upon the property;<br />
         		<a id="pl.206.12"></a><var>206.12</var>(2) the approval of the project by the commissioner of commerce shall not be <br />
         		<a id="pl.206.13"></a><var>206.13</var>required;<br />
         		<a id="pl.206.14"></a><var>206.14</var>(3) the Department of Corrections shall be furnished and shall record such <br />
         		<a id="pl.206.15"></a><var>206.15</var>information concerning each project as it may prescribe;<br />
         		<a id="pl.206.16"></a><var>206.16</var>(4) the rentals required to be paid under the lease agreement shall not exceed in any <br />
         		<a id="pl.206.17"></a><var>206.17</var>year one-tenth of one percent of the estimated market value of property within the county, <br />
         		<a id="pl.206.18"></a><var>206.18</var>as last finally equalized before the execution of the agreement;<br />
         		<a id="pl.206.19"></a><var>206.19</var>(5) the county board shall provide for the payment of all rentals due during the term <br />
         		<a id="pl.206.20"></a><var>206.20</var>of the lease, in the manner required in section 
         <statute_ref>641.264, subdivision 2</statute_ref>;<br />
         		<a id="pl.206.21"></a><var>206.21</var>(6) no mortgage on the property shall be granted for the security of the bonds, but <br />
         		<a id="pl.206.22"></a><var>206.22</var>compliance with clause (5) hereof may be enforced as a nondiscretionary duty of the <br />
         		<a id="pl.206.23"></a><var>206.23</var>county board; and<br />
         		<a id="pl.206.24"></a><var>206.24</var>(7) the county board may sublease any part of the jail property for purposes consistent <br />
         		<a id="pl.206.25"></a><var>206.25</var>with the maintenance and operation of a county jail or other law enforcement facility.<br />
         		<br />
         		<a id="bill.12.108.0"></a><a id="pl.206.26"></a><var>206.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 108. Minnesota Statutes 2010, section 645.44, is amended by adding a subdivision <br />
         		<a id="pl.206.27"></a><var>206.27</var>to read:<br />
         		<a id="pl.206.28"></a><var>206.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 20. <b>Estimated market value.</b> When used in determining or calculating a <br />
         		<a id="pl.206.29"></a><var>206.29</var>limit on taxation, spending, state aid amounts, or debt, bond, certificate of indebtedness, or <br />
         		<a id="pl.206.30"></a><var>206.30</var>capital note issuance by or for a local government unit, "estimated market value" has the <br />
         		<a id="pl.206.31"></a><var>206.31</var>meaning given in section 273.032. <br />
         		<br />
         		<a id="bill.12.109.0"></a><a id="pl.206.32"></a><var>206.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 109. <b>REVISOR'S INSTRUCTION.</b><br />
         		<a id="pl.207.1"></a><var>207.1</var>The revisor of statutes shall recodify Minnesota Statutes, section 127A.48, <br />
         		<a id="pl.207.2"></a><var>207.2</var>subdivisions 1 to 6, as section 273.1325, subdivisions 1 to 6, and change all <br />
         		<a id="pl.207.3"></a><var>207.3</var>cross-references to the affected subdivisions accordingly.<br />
         		<a id="pl.207.4"></a><var>207.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.12.110.0"></a><a id="pl.207.5"></a><var>207.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 110. <b> REPEALER.</b><br />
         		<a id="pl.207.6"></a><var>207.6</var>Minnesota Statutes 2010, sections 273.11, subdivision 1a; 276A.01, subdivision <br />
         		<a id="pl.207.7"></a><var>207.7</var>11; 276A.06, subdivision 10; 473F.02, subdivision 13; 473F.08, subdivision 10; and <br />
         		<a id="pl.207.8"></a><var>207.8</var>477A.011, subdivision 21, are repealed.<br />
         		<br />
         		<a id="bill.12.111.0"></a><a id="pl.207.9"></a><var>207.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 111. <b>EFFECTIVE DATE.</b><br />
         		<a id="pl.207.10"></a><var>207.10</var>Unless otherwise specifically provided, this article is effective the day following <br />
         		<a id="pl.207.11"></a><var>207.11</var>final enactment for purposes of limits on net debt, the issuance of bonds, certificates of <br />
         		<a id="pl.207.12"></a><var>207.12</var>indebtedness, and capital notes and is effective beginning for taxes payable in 2013 for <br />
         		<a id="pl.207.13"></a><var>207.13</var>all other purposes.<br />
         		<br />
         		<a id="bill.13.0.0"></a><div class="xtend_ce"><a id="pl.207.14"></a><var>207.14</var><b>ARTICLE 13</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.207.15"></a><var>207.15</var><b>MISCELLANEOUS TAXES</b><br />
            		
         </div><br />
         		<a id="bill.13.1.0"></a><a id="pl.207.16"></a><var>207.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. <b>[136A.129] GREATER MINNESOTA INTERNSHIP PROGRAM.</b><br />
         		<a id="pl.207.17"></a><var>207.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Definitions.</b> (a) For the purposes of this section, the terms defined in <br />
         		<a id="pl.207.18"></a><var>207.18</var>this subdivision have the meanings given them.<br />
         		<a id="pl.207.19"></a><var>207.19</var>(b) "Eligible employer" means a taxpayer under section 290.01 with employees <br />
         		<a id="pl.207.20"></a><var>207.20</var>located in greater Minnesota.<br />
         		<a id="pl.207.21"></a><var>207.21</var>(c) "Eligible institution" means a Minnesota public postsecondary institution, or a <br />
         		<a id="pl.207.22"></a><var>207.22</var>Minnesota private, nonprofit, baccalaureate degree granting college or university.<br />
         		<a id="pl.207.23"></a><var>207.23</var>(d) "Eligible student" means a student enrolled in an eligible institution who is a <br />
         		<a id="pl.207.24"></a><var>207.24</var>junior or senior in a degree program or has completed one-half of the credits necessary for <br />
         		<a id="pl.207.25"></a><var>207.25</var>an associate degree or certification.<br />
         		<a id="pl.207.26"></a><var>207.26</var>(e) "Greater Minnesota" means the area located outside of the metropolitan area, as <br />
         		<a id="pl.207.27"></a><var>207.27</var>defined in section 473.121, subdivision 2.<br />
         		<a id="pl.207.28"></a><var>207.28</var>(f) "Office" means the Office of Higher Education.<br />
         		<a id="pl.207.29"></a><var>207.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Program established.</b> The office, in cooperation with the Department of <br />
         		<a id="pl.207.30"></a><var>207.30</var>Employment and Economic Development, shall administer a greater Minnesota internship <br />
         		<a id="pl.207.31"></a><var>207.31</var>grant program for eligible employers who hire interns in greater Minnesota through <br />
         		<a id="pl.207.32"></a><var>207.32</var>eligible institutions that provide academic credit. The purpose of the program is to <br />
         		<a id="pl.207.33"></a><var>207.33</var>encourage Minnesota businesses to:<br />
         		<a id="pl.208.1"></a><var>208.1</var>(1) employ and provide valuable experience to Minnesota students; and<br />
         		<a id="pl.208.2"></a><var>208.2</var>(2) foster long-term relationships between the students and greater Minnesota <br />
         		<a id="pl.208.3"></a><var>208.3</var>employers.<br />
         		<a id="pl.208.4"></a><var>208.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Program components.</b> (a) An intern must be an eligible student who <br />
         		<a id="pl.208.5"></a><var>208.5</var>has been admitted to a major program that is closely related to the intern experience <br />
         		<a id="pl.208.6"></a><var>208.6</var>as determined by the eligible institution.<br />
         		<a id="pl.208.7"></a><var>208.7</var>(b) To participate in the program, an eligible institution must:<br />
         		<a id="pl.208.8"></a><var>208.8</var>(1) enter into written agreements with eligible employers to provide paid internships <br />
         		<a id="pl.208.9"></a><var>208.9</var>that are at least 12 weeks long and located in greater Minnesota;<br />
         		<a id="pl.208.10"></a><var>208.10</var>(2) determine that the work experience of the internship is closely related to the <br />
         		<a id="pl.208.11"></a><var>208.11</var>eligible student's course of study; and<br />
         		<a id="pl.208.12"></a><var>208.12</var>(3) provide academic credit for the successful completion of the internship or <br />
         		<a id="pl.208.13"></a><var>208.13</var>ensure that it fulfills requirements necessary to complete a vocational technical education <br />
         		<a id="pl.208.14"></a><var>208.14</var>program.<br />
         		<a id="pl.208.15"></a><var>208.15</var>(c) To participate in the program, an eligible employer must enter into a written <br />
         		<a id="pl.208.16"></a><var>208.16</var>agreement with an eligible institution specifying that the intern:<br />
         		<a id="pl.208.17"></a><var>208.17</var>(1) would not have been hired without the grant described in subdivision 4;<br />
         		<a id="pl.208.18"></a><var>208.18</var>(2) did not work for the employer prior to entering the agreement;<br />
         		<a id="pl.208.19"></a><var>208.19</var>(3) does not replace an existing employee;<br />
         		<a id="pl.208.20"></a><var>208.20</var>(4) has not previously participated in the program;<br />
         		<a id="pl.208.21"></a><var>208.21</var>(5) will be employed at a location in greater Minnesota;<br />
         		<a id="pl.208.22"></a><var>208.22</var>(6) will be paid at least minimum wage for a minimum of 16 hours per week for at <br />
         		<a id="pl.208.23"></a><var>208.23</var>least a 12-week period; and<br />
         		<a id="pl.208.24"></a><var>208.24</var>(7) will be supervised and evaluated by the employer.<br />
         		<a id="pl.208.25"></a><var>208.25</var>(d) Participating eligible institutions and eligible employers must report annually to <br />
         		<a id="pl.208.26"></a><var>208.26</var>the office. The report must include at least the following:<br />
         		<a id="pl.208.27"></a><var>208.27</var>(1) the number of interns hired;<br />
         		<a id="pl.208.28"></a><var>208.28</var>(2) the number of hours and weeks worked by interns; and<br />
         		<a id="pl.208.29"></a><var>208.29</var>(3) the compensation paid to interns.<br />
         		<a id="pl.208.30"></a><var>208.30</var>(e) An internship with clinical experience currently required for completion of <br />
         		<a id="pl.208.31"></a><var>208.31</var>an academic program does not qualify for the greater Minnesota internship program <br />
         		<a id="pl.208.32"></a><var>208.32</var>under this section.<br />
         		<a id="pl.208.33"></a><var>208.33</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Employer grants for internships; maximum limits.</b> (a) A grant for an <br />
         		<a id="pl.208.34"></a><var>208.34</var>eligible employer equals 40 percent of the compensation paid to each qualifying intern, <br />
         		<a id="pl.208.35"></a><var>208.35</var>not to exceed $1,250. An employer may receive a grant for a maximum of five interns <br />
         		<a id="pl.208.36"></a><var>208.36</var>in any fiscal year.<br />
         		<a id="pl.209.1"></a><var>209.1</var>(b) The total amount of grants authorized under this section is limited to $1,000,000 <br />
         		<a id="pl.209.2"></a><var>209.2</var>per fiscal year less administrative expense as provided in law. The office shall allocate <br />
         		<a id="pl.209.3"></a><var>209.3</var>grants to eligible institutions for participating employers and certify to the Department of <br />
         		<a id="pl.209.4"></a><var>209.4</var>Employment and Economic Development the amount of the grant.<br />
         		<a id="pl.209.5"></a><var>209.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Allocations to institutions.</b> The office shall allocate employer grants <br />
         		<a id="pl.209.6"></a><var>209.6</var>authorized in subdivision 4 to eligible institutions. The office shall determine relevant <br />
         		<a id="pl.209.7"></a><var>209.7</var>criteria to allocate the grants, including the geographic distribution of grants to work <br />
         		<a id="pl.209.8"></a><var>209.8</var>locations outside the metropolitan area. Any grant amount allocated to an institution but <br />
         		<a id="pl.209.9"></a><var>209.9</var>not used may be reallocated to other eligible institutions. The office shall allocate a portion <br />
         		<a id="pl.209.10"></a><var>209.10</var>of any administrative fee to participating eligible institutions for their administrative costs.<br />
         		<a id="pl.209.11"></a><var>209.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <b>Reports to the legislature.</b> (a) By February 1, 2013, the office and the <br />
         		<a id="pl.209.12"></a><var>209.12</var>Department of Employment and Economic Development shall report to the legislature on <br />
         		<a id="pl.209.13"></a><var>209.13</var>the greater Minnesota internship program. The report must include at least the following:<br />
         		<a id="pl.209.14"></a><var>209.14</var>(1) the number and dollar amount of grants allocated to employers;<br />
         		<a id="pl.209.15"></a><var>209.15</var>(2) the number of interns employed under the program; and<br />
         		<a id="pl.209.16"></a><var>209.16</var>(3) the cost of administering the program.<br />
         		<a id="pl.209.17"></a><var>209.17</var>(b) By February 1, 2014, the office and the Department of Employment and <br />
         		<a id="pl.209.18"></a><var>209.18</var>Economic Development shall report to the legislature with an analysis of the effectiveness <br />
         		<a id="pl.209.19"></a><var>209.19</var>of the program in stimulating businesses to hire interns and in assisting participating <br />
         		<a id="pl.209.20"></a><var>209.20</var>interns in finding permanent career positions. The report must include the number of <br />
         		<a id="pl.209.21"></a><var>209.21</var>students who participated in the program who were subsequently employed full-time by <br />
         		<a id="pl.209.22"></a><var>209.22</var>the employer.<br />
         		<a id="pl.209.23"></a><var>209.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Sunset.</b> This section expires on June 30, 2015.<br />
         		<a id="pl.209.24"></a><var>209.24</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2012.<br />
         		<br />
         		<a id="bill.13.2.0"></a><a id="pl.209.25"></a><var>209.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. Minnesota Statutes 2010, section 297G.04, subdivision 2, is amended to read:<br />
         		<a id="pl.209.26"></a><var>209.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Tax credit.</b> A qualified brewer producing fermented malt beverages <br />
         		<a id="pl.209.27"></a><var>209.27</var>is entitled to a tax credit of $4.60 per barrel on 25,000 barrels sold in any fiscal year <br />
         		<a id="pl.209.28"></a><var>209.28</var>beginning July 1, regardless of the alcohol content of the product. Qualified brewers may <br />
         		<a id="pl.209.29"></a><var>209.29</var>take the credit on the 18th day of each month, but the total credit allowed may not exceed <br />
         		<a id="pl.209.30"></a><var>209.30</var>in any fiscal year the lesser of:<br />
         		<a id="pl.209.31"></a><var>209.31</var>(1) the liability for tax; or<br />
         		<a id="pl.209.32"></a><var>209.32</var>(2) $115,000.<br />
         		<a id="pl.209.33"></a><var>209.33</var>For purposes of this subdivision, a "qualified brewer" means a brewer, whether or <br />
         		<a id="pl.209.34"></a><var>209.34</var>not located in this state, manufacturing less than 100,000 250,000 barrels of fermented <br />
         		<a id="pl.209.35"></a><var>209.35</var>malt beverages in the calendar year immediately preceding the calendar year for which <br />
         		<a id="pl.210.1"></a><var>210.1</var>the credit under this subdivision is claimed. In determining the number of barrels, all <br />
         		<a id="pl.210.2"></a><var>210.2</var>brands or labels of a brewer must be combined. All facilities for the manufacture of <br />
         		<a id="pl.210.3"></a><var>210.3</var>fermented malt beverages owned or controlled by the same person, corporation, or other <br />
         		<a id="pl.210.4"></a><var>210.4</var>entity must be treated as a single brewer.<br />
         		<a id="pl.210.5"></a><var>210.5</var><b>EFFECTIVE DATE.</b>This section is effective for determinations based on calendar <br />
         		<a id="pl.210.6"></a><var>210.6</var>year 2011 production and thereafter.<br />
         		<br />
         		<a id="bill.13.3.0"></a><a id="pl.210.7"></a><var>210.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. Minnesota Statutes 2010, section 298.75, is amended by adding a subdivision <br />
         		<a id="pl.210.8"></a><var>210.8</var>to read:<br />
         		<a id="pl.210.9"></a><var>210.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 12. <b>Tax may be imposed; Otter Tail County.</b> (a) If Otter Tail County <br />
         		<a id="pl.210.10"></a><var>210.10</var>does not impose a tax under this section and approves imposition of the tax under this <br />
         		<a id="pl.210.11"></a><var>210.11</var>subdivision, the city of Vergas in Otter Tail County may impose the aggregate materials <br />
         		<a id="pl.210.12"></a><var>210.12</var>tax under this section.<br />
         		<a id="pl.210.13"></a><var>210.13</var>(b) For purposes of exercising the powers contained in this section, the "city" is <br />
         		<a id="pl.210.14"></a><var>210.14</var>deemed to be the "county."<br />
         		<a id="pl.210.15"></a><var>210.15</var>(c) All provisions in this section apply to the city of Vergas, except that in lieu of the <br />
         		<a id="pl.210.16"></a><var>210.16</var>tax proceeds under subdivision 7, all proceeds of the tax must be retained by the city.<br />
         		<a id="pl.210.17"></a><var>210.17</var>(d) If Otter Tail County imposes an aggregate materials tax under this section, the <br />
         		<a id="pl.210.18"></a><var>210.18</var>tax imposed by the city of Vergas under this subdivision is repealed on the effective <br />
         		<a id="pl.210.19"></a><var>210.19</var>date of the Otter Tail County tax.<br />
         		<a id="pl.210.20"></a><var>210.20</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br />
         		<a id="pl.210.21"></a><var>210.21</var>the city of Vergas and its chief clerical officer comply with Minnesota Statutes, section <br />
         		<a id="pl.210.22"></a><var>210.22</var>645.021, subdivisions 2 and 3.<br />
         		<br />
         		<a id="bill.13.4.0"></a><a id="pl.210.23"></a><var>210.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 4. Minnesota Statutes 2010, section 469.169, is amended by adding a subdivision <br />
         		<a id="pl.210.24"></a><var>210.24</var>to read:<br />
         		<a id="pl.210.25"></a><var>210.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 19. <b>Additional border city allocation; 2012.</b> (a) In addition to tax <br />
         		<a id="pl.210.26"></a><var>210.26</var>reductions authorized in subdivisions 7 to 18, the commissioner shall allocate $125,000 <br />
         		<a id="pl.210.27"></a><var>210.27</var>for tax reductions to border city enterprise zones in cities located on the western border <br />
         		<a id="pl.210.28"></a><var>210.28</var>of the state. The commissioner shall make allocations to zones in cities on the western <br />
         		<a id="pl.210.29"></a><var>210.29</var>border on a per capita basis. Allocations made under this subdivision may be used for <br />
         		<a id="pl.210.30"></a><var>210.30</var>tax reductions as provided in section 469.171, or for other offsets of taxes imposed on <br />
         		<a id="pl.210.31"></a><var>210.31</var>or remitted by businesses located in the enterprise zone, but only if the municipality <br />
         		<a id="pl.210.32"></a><var>210.32</var>determines that the granting of the tax reduction or offset is necessary in order to retain a <br />
         		<a id="pl.210.33"></a><var>210.33</var>business within or attract a business to the zone. The city alternatively may elect to use <br />
         		<a id="pl.211.1"></a><var>211.1</var>any portion of the allocation provided in this paragraph for tax reductions under section <br />
         		<a id="pl.211.2"></a><var>211.2</var>469.1732 or 469.1734.<br />
         		<a id="pl.211.3"></a><var>211.3</var>(b) The commissioner shall allocate $125,000 for tax reductions under section <br />
         		<a id="pl.211.4"></a><var>211.4</var>469.1732 or 469.1734 to cities with border city enterprise zones located on the western <br />
         		<a id="pl.211.5"></a><var>211.5</var>border of the state. The commissioner shall allocate this amount among the cities on a per <br />
         		<a id="pl.211.6"></a><var>211.6</var>capita basis. The city alternatively may elect to use any portion of the allocation provided <br />
         		<a id="pl.211.7"></a><var>211.7</var>in this paragraph for tax reductions as provided in section 469.171.<br />
         		<br />
         		<a id="bill.13.5.0"></a><a id="pl.211.8"></a><var>211.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 5. <b>PURPOSE STATEMENTS; TAX EXPENDITURES.</b><br />
         		<a id="pl.211.9"></a><var>211.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Authority.</b> This section is intended to fulfill the requirement under <br />
         		<a id="pl.211.10"></a><var>211.10</var>Minnesota Statutes, section 3.192, that a bill creating, renewing, or continuing a tax <br />
         		<a id="pl.211.11"></a><var>211.11</var>expenditure provide a purpose for the tax expenditure and a standard or goal against <br />
         		<a id="pl.211.12"></a><var>211.12</var>which its effectiveness may be measured.<br />
         		<a id="pl.211.13"></a><var>211.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Federal conformity.</b> The provisions of article 8 conforming Minnesota <br />
         		<a id="pl.211.14"></a><var>211.14</var>individual income tax to changes in federal law are intended to simplify compliance with <br />
         		<a id="pl.211.15"></a><var>211.15</var>and administration of the individual income tax.<br />
         		<a id="pl.211.16"></a><var>211.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Employment of qualified veterans tax credit.</b> The provisions of article 8, <br />
         		<a id="pl.211.17"></a><var>211.17</var>section 15, providing a tax credit for the employment of qualified veterans, are intended <br />
         		<a id="pl.211.18"></a><var>211.18</var>to give an incentive to employers to hire returning veterans who would otherwise be <br />
         		<a id="pl.211.19"></a><var>211.19</var>unemployed and to encourage their reintegration into the community. The standard against <br />
         		<a id="pl.211.20"></a><var>211.20</var>which the effectiveness of the credit is to be measured is the additional number of veterans <br />
         		<a id="pl.211.21"></a><var>211.21</var>who are hired as a result of the tax credit.<br />
         		<a id="pl.211.22"></a><var>211.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Extension of historic structure rehabilitation credit.</b> The provisions <br />
         		<a id="pl.211.23"></a><var>211.23</var>of article 8, section 14, extending the sunset of the historic structure rehabilitation credit <br />
         		<a id="pl.211.24"></a><var>211.24</var>are intended to create and retain jobs related to rehabilitation of historic structures in <br />
         		<a id="pl.211.25"></a><var>211.25</var>Minnesota. The standard against which the effectiveness of the extension of the credit is to <br />
         		<a id="pl.211.26"></a><var>211.26</var>be measured is the number of jobs created through the rehabilitation of historic structures <br />
         		<a id="pl.211.27"></a><var>211.27</var>and the number of historic structures rehabilitated and placed in service.<br />
         		<a id="pl.211.28"></a><var>211.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Exemption of certain laboratory services from the health care provider </b><br />
         		<a id="pl.211.29"></a><var>211.29</var><b>tax.</b> The provisions of article 9, section 2, exempting laboratory services on specimens <br />
         		<a id="pl.211.30"></a><var>211.30</var>collected outside the state from the health care provider tax is intended to eliminate <br />
         		<a id="pl.211.31"></a><var>211.31</var>a competitive disadvantage for laboratories located in Minnesota when competing to <br />
         		<a id="pl.211.32"></a><var>211.32</var>provide services with laboratories located outside of the state.<br />
         		<a id="pl.212.1"></a><var>212.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <b>Sales tax exemption for established religious orders.</b> The provisions <br />
         		<a id="pl.212.2"></a><var>212.2</var>of article 9, section 7, exempting certain sales between a religious order and an affiliated <br />
         		<a id="pl.212.3"></a><var>212.3</var>institute of higher education is intended to retain an existing sales tax exemption that <br />
         		<a id="pl.212.4"></a><var>212.4</var>exists between St. John's Abbey and St. John's University after a governing restructure <br />
         		<a id="pl.212.5"></a><var>212.5</var>between the two entities.<br />
         		<a id="pl.212.6"></a><var>212.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Sales tax exemption for nursing homes and boarding care homes.</b><br />
         		 <a id="pl.212.7"></a><var>212.7</var>The provisions of article 9, section 8, exempting certain nursing homes and boarding <br />
         		<a id="pl.212.8"></a><var>212.8</var>care homes is intended to clarify that an existing exemption for these facilities is not <br />
         		<a id="pl.212.9"></a><var>212.9</var>affected by a recent property tax case related to defining nonprofit organizations engaged <br />
         		<a id="pl.212.10"></a><var>212.10</var>in charitable activities.<br />
         		<a id="pl.212.11"></a><var>212.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.13.6.0"></a><a id="pl.212.12"></a><var>212.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 6. <b>BUDGET RESERVE.</b><br />
         		<a id="pl.212.13"></a><var>212.13</var>The commissioner of management and budget shall cancel $27,900,000 to the <br />
         		<a id="pl.212.14"></a><var>212.14</var>general fund from the budget reserve account in Minnesota Statutes, section 16A.152.<br />
         		<a id="pl.212.15"></a><var>212.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.13.7.0"></a><a id="pl.212.16"></a><var>212.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 7. <b>APPROPRIATION; GREATER MINNESOTA INTERNSHIP </b><br />
         		<a id="pl.212.17"></a><var>212.17</var><b>PROGRAM.</b><br />
         		<a id="pl.212.18"></a><var>212.18</var>$1,000,000 for fiscal year 2013 is appropriated from the general fund to the <br />
         		<a id="pl.212.19"></a><var>212.19</var>commissioner of employment and economic development for grants under Minnesota <br />
         		<a id="pl.212.20"></a><var>212.20</var>Statutes, section 136A.129, for employers who hire interns. Up to five percent of <br />
         		<a id="pl.212.21"></a><var>212.21</var>the appropriation is for an administrative fee for the Office of Higher Education and <br />
         		<a id="pl.212.22"></a><var>212.22</var>participating eligible institutions. The base for the Department of Employment and <br />
         		<a id="pl.212.23"></a><var>212.23</var>Economic Development for the greater Minnesota internship program is $1,000,000 in <br />
         		<a id="pl.212.24"></a><var>212.24</var>fiscal year 2014, $1,000,000 in fiscal year 2015, and $0 beginning in fiscal year 2016.<br />
         		<a id="pl.212.25"></a><var>212.25</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2012.<br />
         		<br />
         		<a id="bill.13.8.0"></a><a id="pl.212.26"></a><var>212.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 8. <b>APPROPRIATION; MINNESOTA INVESTMENT FUND.</b><br />
         		<a id="pl.212.27"></a><var>212.27</var>$7,000,000 for fiscal year 2013 is appropriated from the general fund to the <br />
         		<a id="pl.212.28"></a><var>212.28</var>commissioner of employment and economic development for the Minnesota investment <br />
         		<a id="pl.212.29"></a><var>212.29</var>fund under Minnesota Statutes, section 116J.8731. The commissioner of employment <br />
         		<a id="pl.212.30"></a><var>212.30</var>and economic development must consult with the Science and Technology Initiative <br />
         		<a id="pl.212.31"></a><var>212.31</var>Advisory Commission established in Minnesota Statutes, section 116W.06, and must <br />
         		<a id="pl.213.1"></a><var>213.1</var>obtain approval of a simple majority of the commission in determining how to use 25 <br />
         		<a id="pl.213.2"></a><var>213.2</var>percent of this amount. This is a onetime appropriation and is available until spent."<br />
         		<a id="pl.213.3"></a><var>213.3</var>Delete the title and insert:<br />
         		
         <div class="xtend_ce"><a id="pl.213.4"></a><var>213.4</var>"A bill for an act<br />
            		
         </div><a id="pl.213.5"></a><var>213.5</var>relating to financing of state and local government; making policy, technical, and <br />
         		<a id="pl.213.6"></a><var>213.6</var>other changes to individual income, corporate franchise, property, sales and <br />
         		<a id="pl.213.7"></a><var>213.7</var>use, special, mineral, liquor, aggregate materials, gross receipts, estate, local, <br />
         		<a id="pl.213.8"></a><var>213.8</var>and other taxes and tax-related provisions; updating references to the Internal <br />
         		<a id="pl.213.9"></a><var>213.9</var>Revenue Code; changing and providing income and franchise tax credits, <br />
         		<a id="pl.213.10"></a><var>213.10</var>exemptions, and deductions; changing income tax withholding requirements; <br />
         		<a id="pl.213.11"></a><var>213.11</var>establishing a veterans jobs tax credit; permitting the filing of certain amended <br />
         		<a id="pl.213.12"></a><var>213.12</var>returns; modifying property tax levies, credits, exemptions, refunds, proposed <br />
         		<a id="pl.213.13"></a><var>213.13</var>levies and property tax notices, and tax statements; providing for use of a local <br />
         		<a id="pl.213.14"></a><var>213.14</var>levy; changing the state general levy; modifying city aid reporting requirements; <br />
         		<a id="pl.213.15"></a><var>213.15</var>modifying tax increment financing district requirements; authorizing, changing, <br />
         		<a id="pl.213.16"></a><var>213.16</var>and extending tax increment financing districts in certain local governments; <br />
         		<a id="pl.213.17"></a><var>213.17</var>changing sales and use tax payment requirements and changing and providing <br />
         		<a id="pl.213.18"></a><var>213.18</var>exemptions; modifying use of revenues and authorizing extension of certain <br />
         		<a id="pl.213.19"></a><var>213.19</var>sales and lodging taxes and other local taxes for certain cities and making other <br />
         		<a id="pl.213.20"></a><var>213.20</var>local tax changes; modifying filing, compliance, and payment requirements <br />
         		<a id="pl.213.21"></a><var>213.21</var>for estate tax returns; modifying requirements for qualified farms and small <br />
         		<a id="pl.213.22"></a><var>213.22</var>business property; modifying definitions and making clarifying, technical, and <br />
         		<a id="pl.213.23"></a><var>213.23</var>other changes relating to the issuance of municipal bonds; authorizing certain <br />
         		<a id="pl.213.24"></a><var>213.24</var>local governments to issue public debt; clarifying limits on taxation, spending, <br />
         		<a id="pl.213.25"></a><var>213.25</var>and incurring debt based on market values; making technical and clarifying <br />
         		<a id="pl.213.26"></a><var>213.26</var>changes, and repealing obsolete provisions related to the homestead market value <br />
         		<a id="pl.213.27"></a><var>213.27</var>credit; changing liquor tax reporting and credits; allocating funds to border city <br />
         		<a id="pl.213.28"></a><var>213.28</var>enterprise zones; changing local standard measures program reimbursement <br />
         		<a id="pl.213.29"></a><var>213.29</var>requirements; requiring certain local budgetary information on local Web sites; <br />
         		<a id="pl.213.30"></a><var>213.30</var>establishing a greater Minnesota internship program; requiring reports; canceling <br />
         		<a id="pl.213.31"></a><var>213.31</var>funds to the general fund from the budget reserve account; appropriating money;<br />
         		<a id="pl.213.32"></a><var>213.32</var>amending Minnesota Statutes 2010, sections 6.91, subdivision 2; 13.4965, <br />
         		<a id="pl.213.33"></a><var>213.33</var>subdivision 3; 16A.46; 38.18; 40A.15, subdivision 2; 65B.84, subdivision 1; <br />
         		<a id="pl.213.34"></a><var>213.34</var>69.011, subdivision 1; 69.021, subdivisions 7, 8; 88.51, subdivision 3; 103B.245, <br />
         		<a id="pl.213.35"></a><var>213.35</var>subdivision 3; 103B.251, subdivision 8; 103B.635, subdivision 2; 103B.691, <br />
         		<a id="pl.213.36"></a><var>213.36</var>subdivision 2; 103D.905, subdivisions 2, 3, 8; 116J.8737, subdivisions 5, 8, <br />
         		<a id="pl.213.37"></a><var>213.37</var>by adding a subdivision; 117.025, subdivision 7; 127A.48, subdivision 1; <br />
         		<a id="pl.213.38"></a><var>213.38</var>138.053; 144F.01, subdivision 4; 162.07, subdivisions 3, 4; 163.04, subdivision <br />
         		<a id="pl.213.39"></a><var>213.39</var>3; 163.06, subdivision 6; 165.10, subdivision 1; 270.077; 270.41, subdivision 5; <br />
         		<a id="pl.213.40"></a><var>213.40</var>270C.38, subdivision 1; 270C.42, subdivision 2; 270C.69, subdivision 1; 272.01, <br />
         		<a id="pl.213.41"></a><var>213.41</var>subdivision 2; 272.03, by adding subdivisions; 273.032; 273.11, subdivision <br />
         		<a id="pl.213.42"></a><var>213.42</var>1; 273.113; 273.124, subdivisions 3a, 13; 273.13, subdivision 21b; 273.1315, <br />
         		<a id="pl.213.43"></a><var>213.43</var>subdivisions 1, 2; 273.1398, subdivisions 3, 4; 273.19, subdivision 1; 273.372, <br />
         		<a id="pl.213.44"></a><var>213.44</var>subdivision 4; 273.39; 275.011, subdivision 1; 275.025, subdivision 1; 275.065, <br />
         		<a id="pl.213.45"></a><var>213.45</var>subdivisions 1, 3; 275.077, subdivision 2; 275.71, subdivision 4; 276A.01, <br />
         		<a id="pl.213.46"></a><var>213.46</var>subdivisions 10, 12, 13, 15; 279.06, subdivision 1; 287.08; 287.20, by adding <br />
         		<a id="pl.213.47"></a><var>213.47</var>a subdivision; 287.23, subdivision 1; 287.385, subdivision 7; 289A.02, by <br />
         		<a id="pl.213.48"></a><var>213.48</var>adding a subdivision; 289A.10, by adding a subdivision; 289A.12, by adding a <br />
         		<a id="pl.213.49"></a><var>213.49</var>subdivision; 289A.18, by adding a subdivision; 289A.20, subdivisions 3, 4, by <br />
         		<a id="pl.213.50"></a><var>213.50</var>adding a subdivision; 289A.26, subdivisions 3, 4, 7, 9; 289A.38, subdivisions <br />
         		<a id="pl.213.51"></a><var>213.51</var>7, 8, 9; 289A.42, subdivision 2; 289A.55, subdivision 9; 289A.60, subdivisions <br />
         		<a id="pl.213.52"></a><var>213.52</var>4, 24; 290.01, subdivisions 6b, 19d; 290.068, subdivision 1; 290.0681, <br />
         		<a id="pl.213.53"></a><var>213.53</var>subdivisions 1, 3, 4, 5, 10; 290.0921, subdivision 3; 290.17, subdivision 4; <br />
         		<a id="pl.213.54"></a><var>213.54</var>290A.04, subdivision 2h; 290A.25; 290B.04, subdivision 2; 296A.22; 297A.61, <br />
         		<a id="pl.213.55"></a><var>213.55</var>subdivision 4; 297A.665; 297A.68, subdivision 5; 297A.70, subdivision 4, by <br />
         		<a id="pl.213.56"></a><var>213.56</var>adding subdivisions; 297A.815, subdivision 3; 297A.8155; 297E.14, subdivision <br />
         		<a id="pl.214.1"></a><var>214.1</var>7; 297F.01, subdivision 23; 297F.09, subdivision 9; 297F.18, subdivision 7; <br />
         		<a id="pl.214.2"></a><var>214.2</var>297G.04, subdivision 2; 297G.09, subdivision 8; 297G.17, subdivision 7; <br />
         		<a id="pl.214.3"></a><var>214.3</var>297I.05, subdivision 11; 297I.30, by adding a subdivision; 297I.80, subdivision <br />
         		<a id="pl.214.4"></a><var>214.4</var>1; 298.018, subdivision 2; 298.75, by adding a subdivision; 353G.08, subdivision <br />
         		<a id="pl.214.5"></a><var>214.5</var>2; 365.025, subdivision 4; 366.095, subdivision 1; 366.27; 368.01, subdivision <br />
         		<a id="pl.214.6"></a><var>214.6</var>23; 368.47; 370.01; 373.40, subdivisions 1, 2, 4; 375.167, subdivision 1; 375.18, <br />
         		<a id="pl.214.7"></a><var>214.7</var>subdivision 3; 375.555; 383B.152; 383B.245; 383B.73, subdivision 1; 383E.20; <br />
         		<a id="pl.214.8"></a><var>214.8</var>383E.23; 385.31; 394.36, subdivision 1; 398A.04, subdivision 8; 401.05, <br />
         		<a id="pl.214.9"></a><var>214.9</var>subdivision 3; 410.32; 412.221, subdivision 2; 412.301; 428A.02, subdivision 1; <br />
         		<a id="pl.214.10"></a><var>214.10</var>430.102, subdivision 2; 447.10; 450.19; 450.25; 458A.10; 458A.31, subdivision <br />
         		<a id="pl.214.11"></a><var>214.11</var>1; 465.04; 469.033, subdivision 6; 469.034, subdivision 2; 469.053, subdivisions <br />
         		<a id="pl.214.12"></a><var>214.12</var>4, 4a, 6; 469.107, subdivision 1; 469.169, by adding a subdivision; 469.174, <br />
         		<a id="pl.214.13"></a><var>214.13</var>subdivisions 2, 10, by adding subdivisions; 469.175, subdivision 3; 469.176, <br />
         		<a id="pl.214.14"></a><var>214.14</var>subdivisions 1b, 4b, by adding a subdivision; 469.1763, subdivisions 3, 4; <br />
         		<a id="pl.214.15"></a><var>214.15</var>469.180, subdivision 2; 469.187; 469.206; 471.24; 471.571, subdivisions 1, <br />
         		<a id="pl.214.16"></a><var>214.16</var>2; 471.73; 473.325, subdivision 2; 473.629; 473.661, subdivision 3; 473.667, <br />
         		<a id="pl.214.17"></a><var>214.17</var>subdivision 9; 473.671; 473.711, subdivision 2a; 473F.02, subdivisions 12, <br />
         		<a id="pl.214.18"></a><var>214.18</var>14, 15, 23; 474A.02, subdivision 23a; 474A.04, subdivision 1a; 474A.062; <br />
         		<a id="pl.214.19"></a><var>214.19</var>474A.091, subdivision 3a; 475.521, subdivisions 2, 4; 475.53, subdivisions 1, 3, <br />
         		<a id="pl.214.20"></a><var>214.20</var>4; 475.58, subdivisions 2, 3b; 475.73, subdivision 1; 477A.011, subdivision 32; <br />
         		<a id="pl.214.21"></a><var>214.21</var>477A.0124, subdivision 2; 477A.017, subdivision 3; 641.23; 641.24; 645.44, by <br />
         		<a id="pl.214.22"></a><var>214.22</var>adding a subdivision; Minnesota Statutes 2011 Supplement, sections 116J.8737, <br />
         		<a id="pl.214.23"></a><var>214.23</var>subdivisions 1, 2; 270C.34, subdivision 1; 270C.991, subdivision 4, as amended; <br />
         		<a id="pl.214.24"></a><var>214.24</var>272.02, subdivision 97; 273.114, subdivision 6; 273.13, subdivision 25; 276.04, <br />
         		<a id="pl.214.25"></a><var>214.25</var>subdivision 2; 289A.02, subdivision 7; 290.01, subdivisions 19, 19b, 19c, 31; <br />
         		<a id="pl.214.26"></a><var>214.26</var>290A.03, subdivision 15; 291.005, subdivision 1; 291.03, subdivisions 8, 9, 10, <br />
         		<a id="pl.214.27"></a><var>214.27</var>11; 295.53, subdivision 1; 297A.68, subdivision 42; 297I.05, subdivisions 7, 12; <br />
         		<a id="pl.214.28"></a><var>214.28</var>297I.30, subdivisions 1, 2; 298.01, subdivision 3; 373.01, subdivision 1; 469.176, <br />
         		<a id="pl.214.29"></a><var>214.29</var>subdivisions 4c, 4m; 469.1763, subdivision 2; 477A.011, subdivision 20; Laws <br />
         		<a id="pl.214.30"></a><var>214.30</var>1971, chapter 773, section 1, subdivision 2, as amended; Laws 1988, chapter 645, <br />
         		<a id="pl.214.31"></a><var>214.31</var>section 3, as amended; Laws 1998, chapter 389, article 8, section 43, subdivision <br />
         		<a id="pl.214.32"></a><var>214.32</var>3, as amended; Laws 1999, chapter 243, article 6, section 11; Laws 2002, chapter <br />
         		<a id="pl.214.33"></a><var>214.33</var>377, article 3, section 25, as amended; Laws 2003, chapter 127, article 12, section <br />
         		<a id="pl.214.34"></a><var>214.34</var>28; Laws 2005, First Special Session chapter 3, article 5, section 37, subdivisions <br />
         		<a id="pl.214.35"></a><var>214.35</var>2, 4; Laws 2008, chapter 366, article 5, section 34, as amended; article 7, section <br />
         		<a id="pl.214.36"></a><var>214.36</var>19, subdivision 3, as amended; Laws 2010, chapter 216, section 11; Laws 2010, <br />
         		<a id="pl.214.37"></a><var>214.37</var>chapter 389, article 1, section 12; proposing coding for new law in Minnesota <br />
         		<a id="pl.214.38"></a><var>214.38</var>Statutes, chapters 136A; 290; 297I; 471; repealing Minnesota Statutes 2010, <br />
         		<a id="pl.214.39"></a><var>214.39</var>sections 168A.40, subdivisions 3, 4; 270C.991, subdivision 5; 272.69; 273.11, <br />
         		<a id="pl.214.40"></a><var>214.40</var>subdivisions 1a, 22; 276A.01, subdivision 11; 276A.06, subdivision 10; 473F.02, <br />
         		<a id="pl.214.41"></a><var>214.41</var>subdivision 13; 473F.08, subdivision 10; 477A.011, subdivision 21; Minnesota <br />
         		<a id="pl.214.42"></a><var>214.42</var>Statutes 2011 Supplement, section 289A.60, subdivision 31; Laws 2009, chapter <br />
         		<a id="pl.214.43"></a><var>214.43</var>88, article 4, section 23, as amended."<br />
         		
         <table>
            <col width="50px"></col>
            <col width="252px"></col>
            <col width="42px"></col>
            <col width="252px"></col>
            <tr>
               <td><a id="pl.215.1"></a><var>215.1</var><br />
                  		
               </td>
               <td colspan="3">We request the adoption of this report and repassage of the bill.<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.215.2"></a><var>215.2</var><br />
                  		
               </td>
               <td>House Conferees:<br />
                  		<span width="2em"></span></td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.215.3"></a><var>215.3</var><br />
                  		
               </td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
               <td></td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.215.4"></a><var>215.4</var><br />
                  		
               </td>
               <td>Greg Davids<br />
                  		
               </td>
               <td></td>
               <td>Sarah Anderson<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.215.5"></a><var>215.5</var><br />
                  		
               </td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.215.6"></a><var>215.6</var><br />
                  		
               </td>
               <td>Jenifer Loon<br />
                  		
               </td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.215.7"></a><var>215.7</var><br />
                  		
               </td>
               <td>Senate Conferees:<br />
                  		<span width="2em"></span></td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.215.8"></a><var>215.8</var><br />
                  		
               </td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
               <td></td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.215.9"></a><var>215.9</var><br />
                  		
               </td>
               <td>Julianne E. Ortman<br />
                  		
               </td>
               <td></td>
               <td>Warren Limmer<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.215.10"></a><var>215.10</var><br />
                  		
               </td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.215.11"></a><var>215.11</var><br />
                  		
               </td>
               <td>Geoff Michel<br />
                  		
               </td>
               <td></td>
               <td></td>
            </tr>
         </table>
      </div>