1.1 	A bill for an act
1.2 	relating to taxation; removing obsolete, redundant, and unnecessary laws and 
1.3 	administrative rules administered by the Department of Revenue;amending 
1.4 	Minnesota Statutes 2012, sections 16D.02, subdivisions 3, 6; 16D.04, 
1.5 	subdivisions 3, 4; 16D.07; 16D.11, subdivisions 1, 3, 7; 84A.20, subdivision 2; 
1.6 	84A.31, subdivision 2; 115B.49, subdivision 4; 163.06, subdivision 1; 270.11, 
1.7 	subdivision 1; 270.12, subdivisions 2, 4; 270A.03, subdivision 2; 270B.14, 
1.8 	subdivision 3; 270C.085; 270C.52, subdivision 2; 272.01, subdivisions 1, 
1.9 	3; 272.025, subdivision 1; 272.027, subdivision 1; 272.029, subdivision 6; 
1.10 	273.061, subdivision 6; 273.10; 273.11, subdivision 13; 273.112, subdivision 
1.11 	6a; 273.18; 274.01, subdivisions 1, 2; 275.08, subdivisions 1a, 1d; 275.74, 
1.12 	subdivision 2; 275.75; 279.03; 279.16; 279.23; 279.25; 280.001; 280.03; 
1.13 	280.07; 280.11; 281.03; 281.327; 282.01, subdivision 6; 282.04, subdivision 
1.14 	4; 282.261, subdivisions 2, 4, 5; 282.322; 287.30; 289A.25, subdivision 1; 
1.15 	290.01, subdivisions 5, 19f, 29; 290.015, subdivision 1; 290.07, subdivisions 1, 
1.16 	2; 290.0922, subdivision 3; 290.095, subdivision 3; 290.9728, subdivision 2; 
1.17 	297A.70, subdivision 10; 297A.94; 297B.09; 297F.03, subdivision 2; 297I.05, 
1.18 	subdivision 14; 412.131; 469.176, subdivisions 1b, 3; 473.665, subdivision 5; 
1.19 	477A.0124, subdivision 5; 477A.014, subdivision 1; 611.27, subdivisions 13, 15; 
1.20 	Minnesota Statutes 2013 Supplement, sections 273.032; 273.13, subdivision 23; 
1.21 	273.1325, subdivision 2; 275.70, subdivision 5; 279.37, subdivision 2; 281.17; 
1.22 	290.01, subdivision 19d; 290.0921, subdivision 3; 290.191, subdivision 5; 
1.23 	297A.61, subdivision 3; 297A.68, subdivision 5; 297A.75, subdivisions 1, 2, 3; 
1.24 	423A.022, subdivision 3; 469.1763, subdivision 2; repealing Minnesota Statutes 
1.25 	2012, sections 16D.02, subdivisions 5, 8; 16D.11, subdivision 2; 270C.131; 
1.26 	270C.53; 270C.991, subdivision 4; 272.02, subdivisions 1, 1a, 48, 51, 53, 
1.27 	67, 72, 82; 272.027, subdivision 2; 272.031; 273.015, subdivision 1; 273.03, 
1.28 	subdivision 3; 273.075; 273.1115; 273.1383; 273.1386; 273.80; 275.77; 279.32; 
1.29 	281.173, subdivision 8; 281.174, subdivision 8; 281.328; 282.10; 282.23; 
1.30 	287.20, subdivision 4; 287.27, subdivision 2; 289A.56, subdivision 7; 290.01, 
1.31 	subdivisions 4b, 19e, 20e; 290.06, subdivisions 30, 31; 290.0674, subdivision 
1.32 	3; 290.33; 290C.02, subdivisions 5, 9; 290C.06; 291.41; 291.42; 291.43; 
1.33 	291.44; 291.45; 291.46; 291.47; 295.52, subdivision 7; 297A.68, subdivision 
1.34 	38; 297A.71, subdivisions 4, 5, 7, 10, 17, 18, 20, 32; 297F.08, subdivision 11; 
1.35 	297H.10, subdivision 2; 469.174, subdivision 10c; 469.175, subdivision 2b; 
1.36 	469.176, subdivision 1i; 469.1764; 469.177, subdivision 10; 469.330; 469.331; 
1.37 	469.332; 469.333; 469.334; 469.335; 469.336; 469.337; 469.338; 469.339; 
1.38 	469.340, subdivisions 1, 2, 3, 5; 469.341; 477A.0124, subdivisions 1, 6; 505.173; 
1.39 	Minnesota Statutes 2013 Supplement, section 469.340, subdivision 4; Minnesota 
2.1 	Rules, parts 8002.0200, subpart 8; 8007.0200; 8100.0800; 8130.7500, subpart 7; 
2.2 	8130.8900, subpart 3; 8130.9500, subparts 1, 1a, 2, 3, 4, 5.
2.3 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.4 	Section 1. Minnesota Statutes 2012, section 16D.02, subdivision 3, is amended to read:
2.5 		Subd. 3.Debt. "Debt" means an amount owed to the state directly, or through a 
2.6 	state agency, on account of a fee, duty, lease, direct loan, loan insured or guaranteed by 
2.7 	the state, rent, service, sale of real or personal property, overpayment, fine, assessment, 
2.8 	penalty, restitution, damages, interest, tax, bail bond, forfeiture, reimbursement, liability 
2.9 	owed, an assignment to the state including assignments under section 256.741, the Social 
2.10 	Security Act, or other state or federal law, recovery of costs incurred by the state, or any 
2.11 	other source of indebtedness to the state. Debt also includes amounts owed to individuals 
2.12 	as a result of civil, criminal, or administrative action brought by the state or a state agency 
2.13 	pursuant to its statutory authority or for which the state or state agency acts in a fiduciary 
2.14 	capacity in providing collection services in accordance with the regulations adopted under 
2.15 	the Social Security Act at Code of Federal Regulations, title 45, section 302.33. When 
2.16 	the commissioner provides collection services pursuant to a debt qualification plan to a 
2.17 	referring agency, debt also includes an amount owed to the courts, local government 
2.18 	units, Minnesota state colleges and universities governed by the Board of Trustees of the 
2.19 	Minnesota State Colleges and Universities, or University of Minnesota.

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

2.21 	Sec. 2. Minnesota Statutes 2012, section 16D.02, subdivision 6, is amended to read:
2.22 		Subd. 6.Referring agency. "Referring agency" means a state agency, local 
2.23 	government unit, Minnesota state colleges and universities governed by the Board of 
2.24 	Trustees of the Minnesota State Colleges and Universities, University of Minnesota, or a 
2.25 	court, that has entered into a debt qualification plan an agreement with the commissioner 
2.26 	to refer debts to the commissioner for collection.

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

2.28 	Sec. 3. Minnesota Statutes 2012, section 16D.04, subdivision 3, is amended to read:
2.29 		Subd. 3.Services. The commissioner shall provide collection services for a state 
2.30 	agency, and may provide for collection services for a court, in accordance with the terms and 
2.31 	conditions of a signed debt qualification plan referring agencies other than state agencies.

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

3.1 	Sec. 4. Minnesota Statutes 2012, section 16D.04, subdivision 4, is amended to read:
3.2 		Subd. 4.Authority to contract. The commissioners commissioner of revenue and 
3.3 	management and budget may contract with credit bureaus, private collection agencies, and 
3.4 	other entities as necessary for the collection of debts. A private collection agency acting 
3.5 	under a contract with the commissioner of revenue or management and budget is subject 
3.6 	to sections 332.31 to 332.45, except that the private collection agency may indicate that it 
3.7 	is acting under a contract with the state. The commissioner may not delegate the powers 
3.8 	provided under section 16D.08 to any nongovernmental entity.

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

3.10 	Sec. 5. Minnesota Statutes 2012, section 16D.07, is amended to read:
3.11 	16D.07 NOTICE TO DEBTOR.
3.12 	The referring agency shall send notice to the debtor by United States mail or 
3.13 	personal delivery at the debtor's last known address at least 20 days before the debt is 
3.14 	referred to the commissioner. The notice must state the nature and amount of the debt, 
3.15 	identify to whom the debt is owed, and inform the debtor of the remedies available under 
3.16 	this chapter. The referring agency shall advise the debtor of collection costs imposed 
3.17 	under section 16D.11 and of the debtor's right to cancellation of collection costs under 
3.18 	section 16D.11, subdivision 3.

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

3.20 	Sec. 6. Minnesota Statutes 2012, section 16D.11, subdivision 1, is amended to read:
3.21 		Subdivision 1.Imposition. As determined by the commissioner of management and 
3.22 	budget revenue, collection costs shall be added to the debts referred to the commissioner 
3.23 	or private collection agency for collection. Collection costs are collectible by the 
3.24 	commissioner or private agency from the debtor at the same time and in the same 
3.25 	manner as the referred debt. The referring agency shall advise the debtor of collection 
3.26 	costs under this section and the debtor's right to cancellation of collection costs under 
3.27 	subdivision 3 at the time the agency sends notice to the debtor under section 16D.07.
3.28 	 If the commissioner or private agency collects an amount less than the total due, the 
3.29 	payment is applied proportionally to collection costs and the underlying debt unless 
3.30 	the commissioner of management and budget has waived this requirement for certain 
3.31 	categories of debt pursuant to the department's internal guidelines. Collection costs 
3.32 	collected by the commissioner under this subdivision or retained under subdivision 6 shall 
3.33 	be deposited in the general fund as nondedicated receipts. Collection costs collected by 
4.1 	private agencies are appropriated to the referring agency to pay the collection fees charged 
4.2 	by the private agency. Collections of collection costs in excess of collection agency fees 
4.3 	must be deposited in the general fund as nondedicated receipts.

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

4.5 	Sec. 7. Minnesota Statutes 2012, section 16D.11, subdivision 3, is amended to read:
4.6 		Subd. 3.Cancellation. Collection costs imposed under subdivision 1 shall be 
4.7 	canceled and subtracted from the amount due if:
4.8 	(1) the debtor's household income as defined in section 290A.03, subdivision 5, 
4.9 	excluding the exemption subtractions in subdivision 3, paragraph (3) of that section, for 
4.10 	the 12 months preceding the date of referral is less than twice the annual federal poverty 
4.11 	guideline under United States Code, title 42, section 9902, subsection (2);
4.12 	(2) within 60 days after the first contact with the debtor by the enterprise
4.13 	 commissioner or collection agency, the debtor establishes reasonable cause for the failure 
4.14 	to pay the debt prior to referral of the debt to the enterprise commissioner;
4.15 	(3) a good faith dispute as to the legitimacy or the amount of the debt is made, 
4.16 	and payment is remitted or a payment agreement is entered into within 30 days after 
4.17 	resolution of the dispute;
4.18 	(4) good faith litigation occurs and the debtor's position is substantially justified, and 
4.19 	if the debtor does not totally prevail, the debt is paid or a payment agreement is entered 
4.20 	into within 30 days after the judgment becomes final and nonappealable; or
4.21 	(5) collection costs have been added by the referring agency and are included in 
4.22 	the amount of the referred debt.

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

4.24 	Sec. 8. Minnesota Statutes 2012, section 16D.11, subdivision 7, is amended to read:
4.25 		Subd. 7.Adjustment of rate. By June 1 of each year, the commissioner shall 
4.26 	determine the rate of collection costs for debts referred to the enterprise commissioner
4.27 	 during the next fiscal year. The rate is a percentage of the debts in an amount that most 
4.28 	nearly equals the costs of the enterprise commissioner necessary to process and collect 
4.29 	referred debts under this chapter. In no event shall the rate of the collection costs exceed 
4.30 	25 percent of the debt. Determination of the rate of collection costs under this section is 
4.31 	not subject to the fee setting requirements of section 16A.1283.

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

5.1 	Sec. 9. Minnesota Statutes 2012, section 84A.20, subdivision 2, is amended to read:
5.2 		Subd. 2.County proposal to state. Under certain conditions, The board of county 
5.3 	commissioners of any county may by resolution propose to the state that one or more 
5.4 	areas in the county be taken over by the state for afforestation, reforestation, flood control 
5.5 	projects, or other state purposes. The projects are to be managed, controlled, and used for 
5.6 	the purposes in subdivision 1 on lands to be acquired by the state within the projects, as set 
5.7 	forth in sections 84A.20 to 84A.30. The county board may propose this if (1) the county 
5.8 	contains lands suitable for the purposes in subdivision 1, (2) on January 1, 1931, the taxes 
5.9 	on more than 35 percent of the taxable land in the county are delinquent, (3) on January 1, 
5.10 	1931, the county's bonded ditch indebtedness, including accrued interest, equals or exceeds 
5.11 	nine percent of the assessed valuation of the county, exclusive of money and credits.
5.12 	The area taken over must include lands that have been assessed for all or part of 
5.13 	the cost of the establishment and construction of public drainage ditches under state law, 
5.14 	and on which the assessments or installments are delinquent. A certified copy of the 
5.15 	county board's resolution must be filed with the department and considered and acted 
5.16 	upon by the department. If approved by the department, it must then be submitted to, 
5.17 	considered, and acted upon by the executive council. If approved by the Executive 
5.18 	Council, the proposition must be formally accepted by the governor. Acceptance must be 
5.19 	communicated in writing to and filed with the county auditor.

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

5.21 	Sec. 10. Minnesota Statutes 2012, section 84A.31, subdivision 2, is amended to read:
5.22 		Subd. 2.County proposal to state. Under certain conditions, The board of county 
5.23 	commissioners of any county may by resolution propose that the state take over part of the 
5.24 	tax-delinquent lands in the county. The board may propose this if:
5.25 	(1) the county contains land suitable for the purposes in subdivision 1;.
5.26 	(2) on January 1, 1933, the taxes on more than 25 percent of the acreage of the lands 
5.27 	in a town in the county are delinquent, as shown by its tax books;
5.28 	(3) on January 1, 1933, the taxes or ditch assessments on more than 50 percent of the 
5.29 	acreage of the lands to be taken over are delinquent, as shown by the county's tax books; and
5.30 	(4) on January 1, 1933, the bonded ditch indebtedness of the county equals or 
5.31 	exceeds 15 percent of the assessed value of the county for 1932 as fixed by the Minnesota 
5.32 	Tax Commission, exclusive of money and credits.

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

6.1 	Sec. 11. Minnesota Statutes 2012, section 115B.49, subdivision 4, is amended to read:
6.2 		Subd. 4.Registration; fees. (a) The owner or operator of a dry cleaning facility 
6.3 	shall register on or before October 1 of each year with the commissioner of revenue in 
6.4 	a manner prescribed by the commissioner of revenue and pay a registration fee for the 
6.5 	facility. The amount of the fee is:
6.6 	(1) $500, for facilities with a full-time equivalence of fewer than five;
6.7 	(2) $1,000, for facilities with a full-time equivalence of five to ten; and
6.8 	(3) $1,500, for facilities with a full-time equivalence of more than ten.
6.9 	The registration fee must be paid on or before October 18 or the owner or operator 
6.10 	of a dry cleaning facility may elect to pay the fee in equal installments. Installment 
6.11 	payments must be paid on or before October 18, on or before January 18, on or before 
6.12 	April 18, and on or before June 18. All payments made after October 18 bear interest 
6.13 	at the rate specified in section 270C.40.
6.14 	(b) A person who sells dry cleaning solvents for use by dry cleaning facilities in 
6.15 	the state shall collect and remit to the commissioner of revenue in a the same manner 
6.16 	prescribed by the commissioner of revenue, on or before the 20th day of the month 
6.17 	following the month in which the sales of dry cleaning solvents are made for the taxes 
6.18 	imposed under chapter 297A, a fee of:
6.19 	(1) $3.50 for each gallon of perchloroethylene sold for use by dry cleaning facilities 
6.20 	in the state;
6.21 	(2) 70 cents for each gallon of hydrocarbon-based dry cleaning solvent sold for use 
6.22 	by dry cleaning facilities in the state; and
6.23 	(3) 35 cents for each gallon of other nonaqueous solvents sold for use by dry 
6.24 	cleaning facilities in the state.
6.25 	(c) The audit, assessment, appeal, collection, enforcement, and administrative 
6.26 	provisions of chapters 270C and 289A apply to the fee imposed by this subdivision. To 
6.27 	enforce this subdivision, the commissioner of revenue may grant extensions to file returns 
6.28 	and pay fees, impose penalties and interest on the annual registration fee under paragraph 
6.29 	(a) and the monthly fee under paragraph (b), and abate penalties and interest in the manner 
6.30 	provided in chapters 270C and 289A. The penalties and interest imposed on taxes under 
6.31 	chapter 297A apply to the fees imposed under this subdivision. Disclosure of data collected 
6.32 	by the commissioner of revenue under this subdivision is governed by chapter 270B.

6.33 	EFFECTIVE DATE. This section is effective for fees due after June 30, 2014.

6.34 	Sec. 12. Minnesota Statutes 2012, section 163.06, subdivision 1, is amended to read:
7.1 		Subdivision 1.Levy. The county board of any county in which there are unorganized 
7.2 	townships may levy a tax for road and bridge purposes upon all the real and personal 
7.3 	property in such unorganized townships, exclusive of money and credits taxed under the 
7.4 	provisions of chapter 285.

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

7.6 	Sec. 13. Minnesota Statutes 2012, section 270.11, subdivision 1, is amended to read:
7.7 		Subdivision 1.To act as State Board of Equalization. The commissioner of 
7.8 	revenue shall have and exercise all the rights, powers and authority by law vested in the 
7.9 	State Board of Equalization, which board of equalization is hereby continued, with full 
7.10 	power and authority to review, modify, and revise all of the acts and proceedings of the 
7.11 	commissioner in so far as they relate to the equalization and valuation of property assessed 
7.12 	for taxation, as prescribed by section 270.12.

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

7.14 	Sec. 14. Minnesota Statutes 2012, section 270.12, subdivision 2, is amended to read:
7.15 		Subd. 2.Meeting dates; duties. The board shall meet annually between April 15 
7.16 	and June 30 at the office of the commissioner of revenue and examine and compare the 
7.17 	returns of the assessment of the property in the several counties, and equalize the same so 
7.18 	that all the taxable property in the state shall be assessed at its market value, subject to 
7.19 	the following rules:
7.20 	(1) The board shall add to or deduct from the aggregate valuation of the real property 
7.21 	of every county, which the board believes to be valued below or above its market value in 
7.22 	money, such percent as will bring the same to its market value in money;
7.23 	(2) The board shall deduct from the aggregate valuation of the real property of every 
7.24 	county, which the board believes to be valued above its market value in money, such 
7.25 	percent as will reduce the same to its market value in money;
7.26 	(3) (2) If the board believes the valuation for a part of a class determined by a range 
7.27 	of market value under clause (8) (6) or otherwise, a class, or classes of the real property of 
7.28 	any town or district in any county, or the valuation for a part of a class, a class, or classes 
7.29 	of the real property of any county not in towns or cities, should be raised or reduced, 
7.30 	without raising or reducing the other real property of such county, or without raising or 
7.31 	reducing it in the same ratio, the board may add to, or take from, the valuation of a part of 
7.32 	a class, a class, or classes in any one or more of such towns or cities, or of the property not 
8.1 	in towns or cities, such percent as the board believes will raise or reduce the same to its 
8.2 	market value in money;
8.3 	(4) (3) The board shall add to or take from the aggregate valuation of any part of a 
8.4 	class, a class, or classes of personal property of any county, town, or city, which the 
8.5 	board believes to be valued below or above the market value thereof, such percent as will 
8.6 	raise the same to its market value in money;
8.7 	(5) The board shall take from the aggregate valuation of any part of a class, a class, 
8.8 	or classes of personal property in any county, town or city, which the board believes to 
8.9 	be valued above the market value thereof, such percent as will reduce the same to its 
8.10 	market value in money;
8.11 	(6) (4) The board shall not reduce the aggregate valuation of all the property of the 
8.12 	state, as returned by the several county auditors, more than one percent on the whole 
8.13 	valuation thereof;
8.14 	(7) (5) When it would be of assistance in equalizing values the board may require any 
8.15 	county auditor to furnish statements showing assessments of real and personal property 
8.16 	of any individuals, firms, or corporations within the county. The board shall consider 
8.17 	and equalize such assessments and may increase the assessment of individuals, firms, or 
8.18 	corporations above the amount returned by the county board of equalization when it shall 
8.19 	appear to be undervalued, first giving notice to such persons of the intention of the board 
8.20 	so to do, which notice shall fix a time and place of hearing. The board shall not decrease 
8.21 	any such assessment below the valuation placed by the county board of equalization;
8.22 	(8) (6) In equalizing values pursuant to this section, the board shall utilize a 12-month 
8.23 	assessment/sales ratio study conducted by the Department of Revenue containing only 
8.24 	sales that are filed in the county auditor's office under section 272.115, by November 1 of 
8.25 	the previous year and that occurred between October 1 of the year immediately preceding 
8.26 	the previous year and September 30 of the previous year.
8.27 	The assessment/sales ratio study may separate the values of residential property 
8.28 	into market value categories. The board may adjust the market value categories and the 
8.29 	number of categories as necessary to create an adequate sample size for each market value 
8.30 	category. The board may determine the adequate sample size. To the extent practicable, 
8.31 	the methodology used in preparing the assessment/sales ratio study must be consistent 
8.32 	with the most recent Standard on Assessment Sales Ratio Studies published by the 
8.33 	Assessment Standards Committee of the International Association of Assessing Officers. 
8.34 	The board may determine the geographic area used in preparing the study to accurately 
8.35 	equalize values. A sales ratio study separating residential property into market value 
8.36 	categories may not be used as the basis for a petition under chapter 278.
9.1 	The sales prices used in the study must be discounted for terms of financing. The 
9.2 	board shall use the median ratio as the statistical measure of the level of assessment for 
9.3 	any particular category of property; and
9.4 	(9) (7) The board shall receive from each county the estimated market values on the 
9.5 	assessment date falling within the study period for all parcels by magnetic tape or other a
9.6 	 medium as prescribed by the commissioner of revenue.

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

9.8 	Sec. 15. Minnesota Statutes 2012, section 270.12, subdivision 4, is amended to read:
9.9 		Subd. 4.Public utility property. For purposes of equalization only, public utility 
9.10 	personal property shall be treated as a separate class of property notwithstanding the fact 
9.11 	that its class rate is the same as commercial-industrial property.

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

9.13 	Sec. 16. Minnesota Statutes 2012, section 270A.03, subdivision 2, is amended to read:
9.14 		Subd. 2.Claimant agency. "Claimant agency" means any state agency, as defined 
9.15 	by section 14.02, subdivision 2, the regents of the University of Minnesota, any district 
9.16 	court of the state, any county, any statutory or home rule charter city, including a city that 
9.17 	is presenting a claim for a municipal hospital or a public library or a municipal ambulance 
9.18 	service, a hospital district, a private nonprofit hospital that leases its building from the 
9.19 	county or city in which it is located, any ambulance service licensed under chapter 144E, 
9.20 	any public agency responsible for child support enforcement, any public agency responsible 
9.21 	for the collection of court-ordered restitution, and any public agency established by 
9.22 	general or special law that is responsible for the administration of a low-income housing 
9.23 	program, and the Minnesota collection enterprise as defined in section 16D.02, subdivision 
9.24 	8, for the purpose of collecting the costs imposed under section 16D.11.

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

9.26 	Sec. 17. Minnesota Statutes 2012, section 270B.14, subdivision 3, is amended to read:
9.27 		Subd. 3.Administration of enterprise,and job opportunity, and biotechnology 
9.28 	and health sciences industry zone programs. The commissioner may disclose return 
9.29 	information relating to the taxes imposed by chapters 290 and 297A to the Department of 
9.30 	Employment and Economic Development or a municipality with a border city enterprise 
9.31 	zone as defined under section 469.166, but only as necessary to administer the funding 
9.32 	limitations under section 469.169, or to the Department of Employment and Economic 
10.1 	Development and appropriate officials from the local government units in which a 
10.2 	qualified business is located but only as necessary to enforce the job opportunity building 
10.3 	zone benefits under section 469.315, or biotechnology and health sciences industry zone 
10.4 	benefits under section 469.336.

10.5 	EFFECTIVE DATE. This section is effective January 1, 2016.

10.6 	Sec. 18. Minnesota Statutes 2012, section 270C.085, is amended to read:
10.7 	270C.085 NOTIFICATION REQUIREMENTS; SALES AND USE TAXES.
10.8 	The commissioner of revenue shall establish a means of electronically notifying 
10.9 	persons holding a sales tax permit under section 297A.84 of any statutory change in 
10.10 	chapter 297A and any issuance or change in any administrative rule, revenue notice, or 
10.11 	sales tax fact sheet or other written information provided by the department explaining the 
10.12 	interpretation or administration of the tax imposed under that chapter. The notification 
10.13 	must indicate the basic subject of the statute, rule, fact sheet, or other material and provide 
10.14 	an electronic link to the material. Any person holding a sales tax permit that provides 
10.15 	an electronic address to the department must receive these notifications unless they 
10.16 	specifically request electronically, or in writing, to be removed from the notification list. 
10.17 	This requirement does not replace traditional means of notifying the general public or 
10.18 	persons without access to electronic communications of changes in the sales tax law. The 
10.19 	electronic notification must begin no later than December 31, 2009.

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

10.21 	Sec. 19. Minnesota Statutes 2012, section 270C.52, subdivision 2, is amended to read:
10.22 		Subd. 2.Payment agreements. (a) When any portion of any tax payable to the 
10.23 	commissioner together with interest and penalty thereon, if any, has not been paid, the 
10.24 	commissioner may extend the time for payment for a further period. When the authority 
10.25 	of this section is invoked, the extension shall be evidenced by written agreement signed by 
10.26 	the taxpayer and the commissioner, stating the amount of the tax with penalty and interest, 
10.27 	if any, and providing for the payment of the amount in installments.
10.28 	(b) The agreement may contain a confession of judgment for the amount and for any 
10.29 	unpaid portion thereof. If the agreement contains a confession of judgment, the confession 
10.30 	of judgment must provide that the commissioner may enter judgment against the taxpayer 
10.31 	in the district court of the county of residence as shown upon the taxpayer's tax return for 
10.32 	the unpaid portion of the amount specified in the extension agreement.
11.1 	(c) The agreement shall provide that it can be terminated, after notice by the 
11.2 	commissioner, if information provided by the taxpayer prior to the agreement was 
11.3 	inaccurate or incomplete, collection of the tax covered by the agreement is in jeopardy, 
11.4 	there is a subsequent change in the taxpayer's financial condition, the taxpayer has failed 
11.5 	to make a payment due under the agreement, or the taxpayer has failed to pay any other 
11.6 	tax or file a tax return coming due after the agreement.
11.7 	(d) The notice must be given at least 14 calendar days prior to termination, and shall 
11.8 	advise the taxpayer of the right to request a reconsideration from the commissioner of 
11.9 	whether termination is reasonable and appropriate under the circumstances. A request for 
11.10 	reconsideration does not stay collection action beyond the 14-day notice period. If the 
11.11 	commissioner has reason to believe that collection of the tax covered by the agreement 
11.12 	is in jeopardy, the commissioner may proceed under section 270C.36 and terminate the 
11.13 	agreement without regard to the 14-day period.
11.14 	(e) The commissioner may accept other collateral the commissioner considers 
11.15 	appropriate to secure satisfaction of the tax liability. The principal sum specified in the 
11.16 	agreement shall bear interest at the rate specified in section 270C.40 on all unpaid portions 
11.17 	thereof until the same has been fully paid or the unpaid portion thereof has been entered as 
11.18 	a judgment. The judgment shall bear interest at the rate specified in section 270C.40.
11.19 	(f) If it appears to the commissioner that the tax reported by the taxpayer is in excess 
11.20 	of the amount actually owing by the taxpayer, the extension agreement or the judgment 
11.21 	entered pursuant thereto shall be corrected. If after making the extension agreement 
11.22 	or entering judgment with respect thereto, the commissioner determines that the tax as 
11.23 	reported by the taxpayer is less than the amount actually due, the commissioner shall 
11.24 	assess a further tax in accordance with the provisions of law applicable to the tax.
11.25 	(g) The authority granted to the commissioner by this section is in addition to any 
11.26 	other authority granted to the commissioner by law to extend the time of payment or the 
11.27 	time for filing a return and shall not be construed in limitation thereof.
11.28 	(h) The commissioner shall charge a fee for entering into payment agreements that 
11.29 	reflects the commissioner's costs for entering into payment agreements. The fee is set at 
11.30 	$50 and is charged for entering into a payment agreement, for entering into a new payment 
11.31 	agreement after the taxpayer has defaulted on a prior agreement, and for entering into a 
11.32 	new payment agreement as a result of renegotiation of the terms of an existing agreement. 
11.33 	The fee is paid to the commissioner before the payment agreement becomes effective and 
11.34 	does not reduce the amount of the liability.

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

12.1 	Sec. 20. Minnesota Statutes 2012, section 272.01, subdivision 1, is amended to read:
12.2 		Subdivision 1.Generally taxable. All real and personal property in this state, and 
12.3 	all personal property of persons residing therein, including the property of corporations, 
12.4 	banks, banking companies, and bankers, is taxable, except Indian lands and such other 
12.5 	property as is by law exempt from taxation.

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

12.7 	Sec. 21. Minnesota Statutes 2012, section 272.01, subdivision 3, is amended to read:
12.8 		Subd. 3.Exceptions. The provisions of subdivision 2 shall not apply to:
12.9 	(a) Federal property for which payments are made in lieu of taxes in amounts 
12.10 	equivalent to taxes which might otherwise be lawfully assessed;
12.11 	(b) Real estate exempt from ad valorem taxes and taxes in lieu thereof which is 
12.12 	leased, loaned, or otherwise made available to telephone companies or electric, light 
12.13 	and power companies upon which personal property consisting of transmission and 
12.14 	distribution lines is situated and assessed pursuant to sections 273.37, 273.38, 273.40
12.15 	and 273.41, or upon which are situated the communication lines of express, railway, or 
12.16 	telephone or telegraph companies, or pipelines used for the transmission and distribution 
12.17 	of petroleum products, or the equipment items of a cable communications company 
12.18 	subject to sections 238.35 to 238.42;
12.19 	(c) Property presently owned by any educational institution chartered by the 
12.20 	territorial legislature;
12.21 	(d) Indian lands;
12.22 	(e) Property of any corporation organized as a tribal corporation under the Indian 
12.23 	Reorganization Act of June 18, 1934, (Statutes at Large, volume 48, page 984);
12.24 	(f) Real property owned by the state and leased pursuant to section 161.23 or 
12.25 	161.431, and acts amendatory thereto;
12.26 	(g) Real property owned by a seaway port authority on June 1, 1967, upon which 
12.27 	there has been constructed docks, warehouses, tank farms, administrative and maintenance 
12.28 	buildings, railroad and ship terminal facilities and other maritime and transportation 
12.29 	facilities or those directly related thereto, together with facilities for the handling of 
12.30 	passengers and baggage and for the handling of freight and bulk liquids, and personal 
12.31 	property owned by a seaway port authority used or usable in connection therewith, when 
12.32 	said property is leased to a private individual, association or corporation, but only when 
12.33 	such lease provides that the said facilities are available to the public for the loading and 
12.34 	unloading of passengers and their baggage and the handling, storage, care, shipment, 
12.35 	and delivery of merchandise, freight and baggage and other maritime and transportation 
13.1 	activities and functions directly related thereto, but not including property used for grain 
13.2 	elevator facilities; it being the declared policy of this state that such property when 
13.3 	so leased is public property used exclusively for a public purpose, notwithstanding the 
13.4 	one-year limitation in the provisions of section 273.19;
13.5 	(h) Notwithstanding the provisions of clause (g), when the annual rental received by 
13.6 	a seaway port authority in any calendar year for such leased property exceeds an amount 
13.7 	reasonably required for administrative expense of the authority per year, plus promotional 
13.8 	expense for the authority not to exceed the sum of $100,000 per year, to be expended 
13.9 	when and in the manner decided upon by the commissioners, plus an amount sufficient to 
13.10 	pay all installments of principal and interest due, or to become due, during such calendar 
13.11 	year and the next succeeding year on any revenue bonds issued by the authority, plus 
13.12 	25 percent of the gross annual rental to be retained by the authority for improvement, 
13.13 	development, or other contingencies, the authority shall make a payment in lieu of real 
13.14 	and personal property taxes of a reasonable portion of the remaining annual rental to the 
13.15 	county treasurer of the county in which such seaway port authority is principally located. 
13.16 	Any such payments to the county treasurer shall be disbursed by the treasurer on the same 
13.17 	basis as real estate taxes are divided among the various governmental units, but if such 
13.18 	port authority shall have received funds from the state of Minnesota and funds from any 
13.19 	city and county pursuant to Laws 1957, chapters 648, 831, and 849 and acts amendatory 
13.20 	thereof, then such disbursement by the county treasurer shall be on the same basis as real 
13.21 	estate taxes are divided among the various governmental units, except that the portion of 
13.22 	such payments which would otherwise go to other taxing units shall be divided equally 
13.23 	among the state of Minnesota and said county and city.

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

13.25 	Sec. 22. Minnesota Statutes 2012, section 272.025, subdivision 1, is amended to read:
13.26 		Subdivision 1.Statement of exemption. (a) Except in the case of property owned 
13.27 	by the state of Minnesota or any political subdivision thereof, and property exempt from 
13.28 	taxation under section 272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22 to 25, and at the 
13.29 	times provided in subdivision 3, a taxpayer claiming an exemption from taxation on 
13.30 	property described in section 272.02, subdivisions 1 2 to 33, must file a statement of 
13.31 	exemption with the assessor of the assessment district in which the property is located.
13.32 	(b) A taxpayer claiming an exemption from taxation on property described in section 
13.33 	272.02, subdivision 10, must file a statement of exemption with the commissioner of 
13.34 	revenue, on or before February 15 of each year for which the taxpayer claims an exemption.
14.1 	(c) In case of sickness, absence or other disability or for good cause, the assessor 
14.2 	or the commissioner may extend the time for filing the statement of exemption for a 
14.3 	period not to exceed 60 days.
14.4 	(d) The commissioner of revenue shall prescribe the form and contents of the 
14.5 	statement of exemption.

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

14.7 	Sec. 23. Minnesota Statutes 2012, section 272.027, subdivision 1, is amended to read:
14.8 		Subdivision 1.Electricity generated to produce goods and services. Personal 
14.9 	property used to generate electric power is exempt from property taxation if the electric 
14.10 	power is used to manufacture or produce goods, products, or services, other than electric 
14.11 	power, by the owner of the electric generation plant. Except as provided in subdivisions 2 
14.12 	and 3, The exemption does not apply to property used to produce electric power for sale 
14.13 	to others and does not apply to real property. In determining the value subject to tax, 
14.14 	a proportionate share of the value of the generating facilities, equal to the proportion 
14.15 	that the power sold to others bears to the total generation of the plant, is subject to the 
14.16 	general property tax in the same manner as other property. Power generated in such a 
14.17 	plant and exchanged for an equivalent amount of power that is used for the manufacture or 
14.18 	production of goods, products, or services other than electric power by the owner of the 
14.19 	generating plant is considered to be used by the owner of the plant.

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

14.21 	Sec. 24. Minnesota Statutes 2012, section 272.029, subdivision 6, is amended to read:
14.22 		Subd. 6.Distribution of revenues. Revenues from the taxes imposed under 
14.23 	subdivision 5 must be part of the settlement between the county treasurer and the county 
14.24 	auditor under section 276.09. The revenue must be distributed by the county auditor or the 
14.25 	county treasurer to local taxing jurisdictions in which the wind energy conversion system 
14.26 	is located as follows: beginning with distributions in 2010, 80 percent to counties; and 20 
14.27 	percent to cities and townships; and for distributions occurring in 2006 to 2009, 80 percent 
14.28 	to counties; 14 percent to cities and townships; and six percent to school districts.

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

14.30 	Sec. 25. Minnesota Statutes 2013 Supplement, section 273.032, is amended to read:
14.31 	273.032 MARKET VALUE DEFINITION.
15.1 	(a) Unless otherwise provided, for the purpose of determining any property tax 
15.2 	levy limitation based on market value or any limit on net debt, the issuance of bonds, 
15.3 	certificates of indebtedness, or capital notes based on market value, any qualification to 
15.4 	receive state aid based on market value, or any state aid amount based on market value, 
15.5 	the terms "market value," "estimated market value," and "market valuation," whether 
15.6 	equalized or unequalized, mean the estimated market value of taxable property within the 
15.7 	local unit of government before any of the following or similar adjustments for:
15.8 	(1) the market value exclusions under:
15.9 	(i) section 273.11, subdivisions 14a and 14c (vacant platted land);
15.10 	(ii) section 273.11, subdivision 16 (certain improvements to homestead property);
15.11 	(iii) section 273.11, subdivisions 19 and 20 (certain improvements to business 
15.12 	properties);
15.13 	(iv) section 273.11, subdivision 21 (homestead property damaged by mold);
15.14 	(v) section 273.11, subdivision 22 (qualifying lead hazardous reduction projects);
15.15 	(vi) section 273.13, subdivision 34 (homestead of a disabled veteran or family 
15.16 	caregiver);
15.17 	(vii) section 273.13, subdivision 35 (homestead market value exclusion); or
15.18 	(2) the deferment of value under:
15.19 	(i) the Minnesota Agricultural Property Tax Law, section 273.111;
15.20 	(ii) the Aggregate Resource Preservation Law, section 273.1115;
15.21 	(iii)(ii) the Minnesota Open Space Property Tax Law, section 273.112;
15.22 	(iv) (iii) the rural preserves property tax program, section 273.114; or
15.23 	(v) (iv) the Metropolitan Agricultural Preserves Act, section 473H.10; or
15.24 	(3) the adjustments to tax capacity for:
15.25 	(i) tax increment financing under sections 469.174 to 469.1794;
15.26 	(ii) fiscal disparities under chapter 276A or 473F; or
15.27 	(iii) powerline credit under section 273.425.
15.28 	(b) Estimated market value under paragraph (a) also includes the market value 
15.29 	of tax-exempt property if the applicable law specifically provides that the limitation, 
15.30 	qualification, or aid calculation includes tax-exempt property.
15.31 	(c) Unless otherwise provided, "market value," "estimated market value," and 
15.32 	"market valuation" for purposes of property tax levy limitations and calculation of state 
15.33 	aid, refer to the estimated market value for the previous assessment year and for purposes 
15.34 	of limits on net debt, the issuance of bonds, certificates of indebtedness, or capital notes 
15.35 	refer to the estimated market value as last finally equalized.
16.1 	(d) For purposes of a provision of a home rule charter or of any special law that is not 
16.2 	codified in the statutes and that imposes a levy limitation based on market value or any limit 
16.3 	on debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market 
16.4 	value, the terms "market value," "taxable market value," and "market valuation," whether 
16.5 	equalized or unequalized, mean "estimated market value" as defined in paragraph (a).

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

16.7 	Sec. 26. Minnesota Statutes 2012, section 273.061, subdivision 6, is amended to read:
16.8 		Subd. 6.Salaries; expenses. The salaries of the county assessor and assistants and 
16.9 	clerical help, shall be fixed by the board of county commissioners and shall be payable in 
16.10 	monthly installments out of the general revenue fund of the county. In counties with a 
16.11 	population of less than 50,000 inhabitants, according to the then last preceding federal 
16.12 	census, the board of county commissioners shall not fix the salary of the county assessor at 
16.13 	an amount below the following schedule:
16.14 	In counties with a population of less than 6,500, $5,900;
16.15 	In counties with a population of 6,500 but less than 12,000, $6,200;
16.16 	In counties with a population of 12,000 but less than 16,000, $6,500;
16.17 	In counties with a population of 16,000 but less than 21,000, $6,700;
16.18 	In counties with a population of 21,000 but less than 30,000, $6,900;
16.19 	In counties with a population of 30,000 but less than 39,500, $7,100;
16.20 	In counties with a population of 39,500 but less than 50,000, $7,300;
16.21 	In counties with a population of 50,000 or more, $8,300.
16.22 	In addition to their salaries, the county assessor and assistants shall be allowed their 
16.23 	expenses for reasonable and necessary travel in the performance of their duties, including 
16.24 	necessary travel, lodging and meal expense incurred by them while attending meetings of 
16.25 	instructions or official hearings called by the commissioner of revenue. These expenses 
16.26 	shall be payable out of the general revenue fund of the county, and shall be allowed on the 
16.27 	same basis as such expenses are allowed to other county officers.

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

16.29 	Sec. 27. Minnesota Statutes 2012, section 273.10, is amended to read:
16.30 	273.10 SCHOOL DISTRICTS.
16.31 	When assessing personal property the county assessor shall designate the number of 
16.32 	the school district in which each person assessed is liable for tax, by writing the number 
16.33 	of the district opposite each assessment in a column provided for that purpose in the 
17.1 	assessment book. When the personal property of any person is assessable in several 
17.2 	school districts, the amount in each shall be assessed separately, and the name of the 
17.3 	owner placed opposite each amount.

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

17.5 	Sec. 28. Minnesota Statutes 2012, section 273.11, subdivision 13, is amended to read:
17.6 		Subd. 13.Valuation of income-producing property. Beginning with the 1995 
17.7 	assessment, Only accredited assessors or senior accredited assessors or other licensed 
17.8 	assessors who have successfully completed at least two income-producing property 
17.9 	appraisal courses may value income-producing property for ad valorem tax purposes. 
17.10 	"Income-producing property" as used in this subdivision means the taxable property in 
17.11 	class 3a and 3b in section 273.13, subdivision 24; class 4a and 4c, except for seasonal 
17.12 	recreational property not used for commercial purposes; and class 5 in section 273.13, 
17.13 	subdivision 31. "Income-producing property" includes any property in class 4e in section 
17.14 	273.13, subdivision 25, that would be income-producing property under the definition in 
17.15 	this subdivision if it were not substandard. "Income-producing property appraisal course" 
17.16 	as used in this subdivision means a course of study of approximately 30 instructional 
17.17 	hours, with a final comprehensive test. An assessor must successfully complete the final 
17.18 	examination for each of the two required courses. The course must be approved by the 
17.19 	board of assessors.

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

17.21 	Sec. 29. Minnesota Statutes 2012, section 273.112, subdivision 6a, is amended to read:
17.22 		Subd. 6a.Guidelines issued by commissioner. The commissioner of revenue shall 
17.23 	develop and issue guidelines for qualification by private golf clubs under this section 
17.24 	covering the access to and use of the golf course by members and other adults so as to be 
17.25 	consistent with the purposes and terms of this section. The guidelines shall be mailed to 
17.26 	the county attorney and assessor of each county not later than 60 days following May 26, 
17.27 	1989. Within 15 days of receipt of the guidelines from the commissioner, the assessor 
17.28 	shall mail a copy of the guidelines to each golf club in the county.

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

17.30 	Sec. 30. Minnesota Statutes 2013 Supplement, section 273.13, subdivision 23, is 
17.31 	amended to read:
18.1 		Subd. 23.Class 2. (a) An agricultural homestead consists of class 2a agricultural 
18.2 	land that is homesteaded, along with any class 2b rural vacant land that is contiguous to 
18.3 	the class 2a land under the same ownership. The market value of the house and garage 
18.4 	and immediately surrounding one acre of land has the same class rates as class 1a or 1b 
18.5 	property under subdivision 22. The value of the remaining land including improvements 
18.6 	up to the first tier valuation limit of agricultural homestead property has a net class rate 
18.7 	of 0.5 percent of market value. The remaining property over the first tier has a class rate 
18.8 	of one percent of market value. For purposes of this subdivision, the "first tier valuation 
18.9 	limit of agricultural homestead property" and "first tier" means the limit certified under 
18.10 	section 273.11, subdivision 23.
18.11 	(b) Class 2a agricultural land consists of parcels of property, or portions thereof, that 
18.12 	are agricultural land and buildings. Class 2a property has a net class rate of one percent of 
18.13 	market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a 
18.14 	property must also include any property that would otherwise be classified as 2b, but is 
18.15 	interspersed with class 2a property, including but not limited to sloughs, wooded wind 
18.16 	shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback requirement, 
18.17 	and other similar land that is impractical for the assessor to value separately from the rest of 
18.18 	the property or that is unlikely to be able to be sold separately from the rest of the property.
18.19 	An assessor may classify the part of a parcel described in this subdivision that is used 
18.20 	for agricultural purposes as class 2a and the remainder in the class appropriate to its use.
18.21 	(c) Class 2b rural vacant land consists of parcels of property, or portions thereof, 
18.22 	that are unplatted real estate, rural in character and not used for agricultural purposes, 
18.23 	including land used for growing trees for timber, lumber, and wood and wood products, 
18.24 	that is not improved with a structure. The presence of a minor, ancillary nonresidential 
18.25 	structure as defined by the commissioner of revenue does not disqualify the property from 
18.26 	classification under this paragraph. Any parcel of 20 acres or more improved with a 
18.27 	structure that is not a minor, ancillary nonresidential structure must be split-classified, and 
18.28 	ten acres must be assigned to the split parcel containing the structure. Class 2b property 
18.29 	has a net class rate of one percent of market value unless it is part of an agricultural 
18.30 	homestead under paragraph (a), or qualifies as class 2c under paragraph (d).
18.31 	(d) Class 2c managed forest land consists of no less than 20 and no more than 1,920 
18.32 	acres statewide per taxpayer that is being managed under a forest management plan that 
18.33 	meets the requirements of chapter 290C, but is not enrolled in the sustainable forest 
18.34 	resource management incentive program. It has a class rate of .65 percent, provided that 
18.35 	the owner of the property must apply to the assessor in order for the property to initially 
18.36 	qualify for the reduced rate and provide the information required by the assessor to verify 
19.1 	that the property qualifies for the reduced rate. If the assessor receives the application 
19.2 	and information before May 1 in an assessment year, the property qualifies beginning 
19.3 	with that assessment year. If the assessor receives the application and information after 
19.4 	April 30 in an assessment year, the property may not qualify until the next assessment 
19.5 	year. The commissioner of natural resources must concur that the land is qualified. The 
19.6 	commissioner of natural resources shall annually provide county assessors verification 
19.7 	information on a timely basis. The presence of a minor, ancillary nonresidential structure 
19.8 	as defined by the commissioner of revenue does not disqualify the property from 
19.9 	classification under this paragraph.
19.10 	(e) Agricultural land as used in this section means:
19.11 	(1) contiguous acreage of ten acres or more, used during the preceding year for 
19.12 	agricultural purposes; or
19.13 	(2) contiguous acreage used during the preceding year for an intensive livestock or 
19.14 	poultry confinement operation, provided that land used only for pasturing or grazing 
19.15 	does not qualify under this clause.
19.16 	"Agricultural purposes" as used in this section means the raising, cultivation, drying, 
19.17 	or storage of agricultural products for sale, or the storage of machinery or equipment 
19.18 	used in support of agricultural production by the same farm entity. For a property to be 
19.19 	classified as agricultural based only on the drying or storage of agricultural products, 
19.20 	the products being dried or stored must have been produced by the same farm entity as 
19.21 	the entity operating the drying or storage facility. "Agricultural purposes" also includes 
19.22 	enrollment in the Reinvest in Minnesota program under sections 103F.501 to 103F.535
19.23 	or the federal Conservation Reserve Program as contained in Public Law 99-198 or a 
19.24 	similar state or federal conservation program if the property was classified as agricultural 
19.25 	(i) under this subdivision for taxes payable in 2003 because of its enrollment in a 
19.26 	qualifying program and the land remains enrolled or (ii) in the year prior to its enrollment. 
19.27 	Agricultural classification shall not be based upon the market value of any residential 
19.28 	structures on the parcel or contiguous parcels under the same ownership.
19.29 	"Contiguous acreage," for purposes of this paragraph, means all of, or a contiguous 
19.30 	portion of, a tax parcel as described in section 272.193, or all of, or a contiguous portion 
19.31 	of, a set of contiguous tax parcels under that section that are owned by the same person.
19.32 	(f) Agricultural land under this section also includes:
19.33 	(1) contiguous acreage that is less than ten acres in size and exclusively used in the 
19.34 	preceding year for raising or cultivating agricultural products; or
20.1 	(2) contiguous acreage that contains a residence and is less than 11 acres in size, if 
20.2 	the contiguous acreage exclusive of the house, garage, and surrounding one acre of land 
20.3 	was used in the preceding year for one or more of the following three uses:
20.4 	(i) for an intensive grain drying or storage operation, or for intensive machinery or 
20.5 	equipment storage activities used to support agricultural activities on other parcels of 
20.6 	property operated by the same farming entity;
20.7 	(ii) as a nursery, provided that only those acres used intensively to produce nursery 
20.8 	stock are considered agricultural land; or
20.9 	(iii) for intensive market farming; for purposes of this paragraph, "market farming" 
20.10 	means the cultivation of one or more fruits or vegetables or production of animal or other 
20.11 	agricultural products for sale to local markets by the farmer or an organization with which 
20.12 	the farmer is affiliated.
20.13 	"Contiguous acreage," for purposes of this paragraph, means all of a tax parcel as 
20.14 	described in section 272.193, or all of a set of contiguous tax parcels under that section 
20.15 	that are owned by the same person.
20.16 	(g) Land shall be classified as agricultural even if all or a portion of the agricultural 
20.17 	use of that property is the leasing to, or use by another person for agricultural purposes.
20.18 	Classification under this subdivision is not determinative for qualifying under 
20.19 	section 273.111.
20.20 	(h) The property classification under this section supersedes, for property tax 
20.21 	purposes only, any locally administered agricultural policies or land use restrictions that 
20.22 	define minimum or maximum farm acreage.
20.23 	(i) The term "agricultural products" as used in this subdivision includes production 
20.24 	for sale of:
20.25 	(1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing 
20.26 	animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, 
20.27 	bees, and apiary products by the owner;
20.28 	(2) fish bred for sale and consumption if the fish breeding occurs on land zoned 
20.29 	for agricultural use;
20.30 	(3) the commercial boarding of horses, which may include related horse training and 
20.31 	riding instruction, if the boarding is done on property that is also used for raising pasture 
20.32 	to graze horses or raising or cultivating other agricultural products as defined in clause (1);
20.33 	(4) property which is owned and operated by nonprofit organizations used for 
20.34 	equestrian activities, excluding racing;
20.35 	(5) game birds and waterfowl bred and raised (i) on a game farm licensed under 
20.36 	section 97A.105, provided that the annual licensing report to the Department of Natural 
21.1 	Resources, which must be submitted annually by March 30 to the assessor, indicates 
21.2 	that at least 500 birds were raised or used for breeding stock on the property during the 
21.3 	preceding year and that the owner provides a copy of the owner's most recent schedule F; 
21.4 	or (ii) for use on a shooting preserve licensed under section 97A.115;
21.5 	(6) insects primarily bred to be used as food for animals;
21.6 	(7) trees, grown for sale as a crop, including short rotation woody crops, and not 
21.7 	sold for timber, lumber, wood, or wood products; and
21.8 	(8) maple syrup taken from trees grown by a person licensed by the Minnesota 
21.9 	Department of Agriculture under chapter 28A as a food processor.
21.10 	(j) If a parcel used for agricultural purposes is also used for commercial or industrial 
21.11 	purposes, including but not limited to:
21.12 	(1) wholesale and retail sales;
21.13 	(2) processing of raw agricultural products or other goods;
21.14 	(3) warehousing or storage of processed goods; and
21.15 	(4) office facilities for the support of the activities enumerated in clauses (1), (2), 
21.16 	and (3),
21.17 	the assessor shall classify the part of the parcel used for agricultural purposes as class 
21.18 	1b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its 
21.19 	use. The grading, sorting, and packaging of raw agricultural products for first sale is 
21.20 	considered an agricultural purpose. A greenhouse or other building where horticultural 
21.21 	or nursery products are grown that is also used for the conduct of retail sales must be 
21.22 	classified as agricultural if it is primarily used for the growing of horticultural or nursery 
21.23 	products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of 
21.24 	those products. Use of a greenhouse or building only for the display of already grown 
21.25 	horticultural or nursery products does not qualify as an agricultural purpose.
21.26 	(k) The assessor shall determine and list separately on the records the market value 
21.27 	of the homestead dwelling and the one acre of land on which that dwelling is located. If 
21.28 	any farm buildings or structures are located on this homesteaded acre of land, their market 
21.29 	value shall not be included in this separate determination.
21.30 	(l) Class 2d airport landing area consists of a landing area or public access area of 
21.31 	a privately owned public use airport. It has a class rate of one percent of market value. 
21.32 	To qualify for classification under this paragraph, a privately owned public use airport 
21.33 	must be licensed as a public airport under section 360.018. For purposes of this paragraph, 
21.34 	"landing area" means that part of a privately owned public use airport properly cleared, 
21.35 	regularly maintained, and made available to the public for use by aircraft and includes 
21.36 	runways, taxiways, aprons, and sites upon which are situated landing or navigational aids. 
22.1 	A landing area also includes land underlying both the primary surface and the approach 
22.2 	surfaces that comply with all of the following:
22.3 	(i) the land is properly cleared and regularly maintained for the primary purposes of 
22.4 	the landing, taking off, and taxiing of aircraft; but that portion of the land that contains 
22.5 	facilities for servicing, repair, or maintenance of aircraft is not included as a landing area;
22.6 	(ii) the land is part of the airport property; and
22.7 	(iii) the land is not used for commercial or residential purposes.
22.8 	The land contained in a landing area under this paragraph must be described and certified 
22.9 	by the commissioner of transportation. The certification is effective until it is modified, 
22.10 	or until the airport or landing area no longer meets the requirements of this paragraph. 
22.11 	For purposes of this paragraph, "public access area" means property used as an aircraft 
22.12 	parking ramp, apron, or storage hangar, or an arrival and departure building in connection 
22.13 	with the airport.
22.14 	(m) Class 2e consists of land with a commercial aggregate deposit that is not actively 
22.15 	being mined and is not otherwise classified as class 2a or 2b, provided that the land is not 
22.16 	located in a county that has elected to opt-out of the aggregate preservation program as 
22.17 	provided in section 273.1115, subdivision 6. It has a class rate of one percent of market 
22.18 	value. To qualify for classification under this paragraph, the property must be at least 
22.19 	ten contiguous acres in size and the owner of the property must record with the county 
22.20 	recorder of the county in which the property is located an affidavit containing:
22.21 	(1) a legal description of the property;
22.22 	(2) a disclosure that the property contains a commercial aggregate deposit that is not 
22.23 	actively being mined but is present on the entire parcel enrolled;
22.24 	(3) documentation that the conditional use under the county or local zoning 
22.25 	ordinance of this property is for mining; and
22.26 	(4) documentation that a permit has been issued by the local unit of government 
22.27 	or the mining activity is allowed under local ordinance. The disclosure must include a 
22.28 	statement from a registered professional geologist, engineer, or soil scientist delineating 
22.29 	the deposit and certifying that it is a commercial aggregate deposit.
22.30 	For purposes of this section and section 273.1115, "commercial aggregate deposit" 
22.31 	means a deposit that will yield crushed stone or sand and gravel that is suitable for use 
22.32 	as a construction aggregate; and "actively mined" means the removal of top soil and 
22.33 	overburden in preparation for excavation or excavation of a commercial deposit.
22.34 	(n) When any portion of the property under this subdivision or subdivision 22 begins 
22.35 	to be actively mined, the owner must file a supplemental affidavit within 60 days from 
22.36 	the day any aggregate is removed stating the number of acres of the property that is 
23.1 	actively being mined. The acres actively being mined must be (1) valued and classified 
23.2 	under subdivision 24 in the next subsequent assessment year, and (2) removed from the 
23.3 	aggregate resource preservation property tax program under section 273.1115, if the 
23.4 	land was enrolled in that program. Copies of the original affidavit and all supplemental 
23.5 	affidavits must be filed with the county assessor, the local zoning administrator, and the 
23.6 	Department of Natural Resources, Division of Land and Minerals. A supplemental 
23.7 	affidavit must be filed each time a subsequent portion of the property is actively mined, 
23.8 	provided that the minimum acreage change is five acres, even if the actual mining activity 
23.9 	constitutes less than five acres.
23.10 	(o) (m) The definitions prescribed by the commissioner under paragraphs (c) and 
23.11 	(d) are not rules and are exempt from the rulemaking provisions of chapter 14, and the 
23.12 	provisions in section 14.386 concerning exempt rules do not apply.

23.13 	EFFECTIVE DATE. This section is effective beginning for taxes payable in 2015.

23.14 	Sec. 31. Minnesota Statutes 2013 Supplement, section 273.1325, subdivision 2, 
23.15 	is amended to read:
23.16 		Subd. 2.Methodology. In making its annual assessment/sales ratio studies, the 
23.17 	Department of Revenue must use a methodology consistent with the most recent Standard 
23.18 	on Assessment Ratio Studies published by the assessment standards committee of the 
23.19 	International Association of Assessing Officers. The commissioner of revenue shall 
23.20 	supplement this general methodology with specific procedures necessary for execution of 
23.21 	the study in accordance with other Minnesota laws impacting the assessment/sales ratio 
23.22 	study. The commissioner shall document these specific procedures in writing and shall 
23.23 	publish the procedures in the State Register, but these procedures will not be considered 
23.24 	"rules" pursuant to the Minnesota Administrative Procedure Act. When property is sold and 
23.25 	the purchaser changes its use in a manner that would result in a change of classification of 
23.26 	the property, the assessment sales ratio study under this subdivision must take into account 
23.27 	that changed classification as soon as practicable. A change in status from homestead to 
23.28 	nonhomestead or from nonhomestead to homestead is not a change under this subdivision. 
23.29 	For purposes of this section, sections 270.12, subdivision 2, clause (8) (6), and 278.05, 
23.30 	subdivision 4, the commissioner of revenue shall exclude from the assessment/sales ratio 
23.31 	study the sale of any nonagricultural property which does not contain an improvement, 
23.32 	if (1) the statutory basis on which the property's taxable value as most recently assessed 
23.33 	is less than market value as defined in section 273.11, or (2) the property has undergone 
23.34 	significant physical change or a change of use since the most recent assessment.

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

24.2 	Sec. 32. Minnesota Statutes 2012, section 273.18, is amended to read:
24.3 	273.18 LISTING, VALUATION, AND ASSESSMENT OF EXEMPT 
24.4 	PROPERTY BY COUNTY AUDITORS.
24.5 	(a) In every sixth year after the year 1926 2010, the county auditor shall enter, in 
24.6 	a separate place in the real estate assessment books, the description of each tract of real 
24.7 	property exempt by law from taxation, with the name of the owner, if known, and the 
24.8 	assessor shall value and assess the same in the same manner that other real property is 
24.9 	valued and assessed, and shall designate in each case the purpose for which the property is 
24.10 	used.
24.11 	(b) For purposes of the apportionment of fire state aid under section 69.021, 
24.12 	subdivision 7, the county auditor shall include on the abstract of assessment of exempt real 
24.13 	property filed under this section, the total number of acres of all natural resources lands for 
24.14 	which in lieu payments are made under sections 477A.11 to 477A.14. The assessor shall 
24.15 	estimate its market value, provided that if the assessor is not able to estimate the market 
24.16 	value of the land on a per parcel basis, the assessor shall furnish the commissioner of 
24.17 	revenue with an estimate of the average value per acre of this land within the county.

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

24.19 	Sec. 33. Minnesota Statutes 2012, section 274.01, subdivision 1, is amended to read:
24.20 		Subdivision 1.Ordinary board; meetings, deadlines, grievances. (a) The town 
24.21 	board of a town, or the council or other governing body of a city, is the board of appeal 
24.22 	and equalization except (1) in cities whose charters provide for a board of equalization or 
24.23 	(2) in any city or town that has transferred its local board of review power and duties to 
24.24 	the county board as provided in subdivision 3. The county assessor shall fix a day and 
24.25 	time when the board or the board of equalization shall meet in the assessment districts 
24.26 	of the county. Notwithstanding any law or city charter to the contrary, a city board of 
24.27 	equalization shall be referred to as a board of appeal and equalization. On or before 
24.28 	February 15 of each year the assessor shall give written notice of the time to the city or 
24.29 	town clerk. Notwithstanding the provisions of any charter to the contrary, the meetings 
24.30 	must be held between April 1 and May 31 each year. The clerk shall give published and 
24.31 	posted notice of the meeting at least ten days before the date of the meeting.
24.32 	The board shall meet at the office of the clerk to review the assessment and 
24.33 	classification of property in the town or city. No changes in valuation or classification 
25.1 	which are intended to correct errors in judgment by the county assessor may be made by 
25.2 	the county assessor after the board has adjourned in those cities or towns that hold a 
25.3 	local board of review; however, corrections of errors that are merely clerical in nature or 
25.4 	changes that extend homestead treatment to property are permitted after adjournment until 
25.5 	the tax extension date for that assessment year. The changes must be fully documented and 
25.6 	maintained in the assessor's office and must be available for review by any person. A copy 
25.7 	of the changes made during this period in those cities or towns that hold a local board of 
25.8 	review must be sent to the county board no later than December 31 of the assessment year.
25.9 	(b) The board shall determine whether the taxable property in the town or city has 
25.10 	been properly placed on the list and properly valued by the assessor. If real or personal 
25.11 	property has been omitted, the board shall place it on the list with its market value, and 
25.12 	correct the assessment so that each tract or lot of real property, and each article, parcel, 
25.13 	or class of personal property, is entered on the assessment list at its market value. No 
25.14 	assessment of the property of any person may be raised unless the person has been 
25.15 	duly notified of the intent of the board to do so. On application of any person feeling 
25.16 	aggrieved, the board shall review the assessment or classification, or both, and correct 
25.17 	it as appears just. The board may not make an individual market value adjustment or 
25.18 	classification change that would benefit the property if the owner or other person having 
25.19 	control over the property has refused the assessor access to inspect the property and the 
25.20 	interior of any buildings or structures as provided in section 273.20. A board member 
25.21 	shall not participate in any actions of the board which result in market value adjustments 
25.22 	or classification changes to property owned by the board member, the spouse, parent, 
25.23 	stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, nephew, 
25.24 	or niece of a board member, or property in which a board member has a financial interest. 
25.25 	The relationship may be by blood or marriage.
25.26 	(c) A local board may reduce assessments upon petition of the taxpayer but the total 
25.27 	reductions must not reduce the aggregate assessment made by the county assessor by more 
25.28 	than one percent. If the total reductions would lower the aggregate assessments made by 
25.29 	the county assessor by more than one percent, none of the adjustments may be made. The 
25.30 	assessor shall correct any clerical errors or double assessments discovered by the board 
25.31 	without regard to the one percent limitation.
25.32 	(d) A local board does not have authority to grant an exemption or to order property 
25.33 	removed from the tax rolls.
25.34 	(e) A majority of the members may act at the meeting, and adjourn from day to day 
25.35 	until they finish hearing the cases presented. The assessor shall attend, with the assessment 
25.36 	books and papers, and take part in the proceedings, but must not vote. The county assessor, 
26.1 	or an assistant delegated by the county assessor shall attend the meetings. The board shall 
26.2 	list separately, on a form appended to the assessment book, all omitted property added 
26.3 	to the list by the board and all items of property increased or decreased, with the market 
26.4 	value of each item of property, added or changed by the board, placed opposite the item. 
26.5 	The county assessor shall enter all changes made by the board in the assessment book.
26.6 	(f) Except as provided in subdivision 3, if a person fails to appear in person, by 
26.7 	counsel, or by written communication before the board after being duly notified of the 
26.8 	board's intent to raise the assessment of the property, or if a person feeling aggrieved by an 
26.9 	assessment or classification fails to apply for a review of the assessment or classification, 
26.10 	the person may not appear before the county board of appeal and equalization for a review 
26.11 	of the assessment or classification. This paragraph does not apply if an assessment was 
26.12 	made after the local board meeting, as provided in section 273.01, or if the person can 
26.13 	establish not having received notice of market value at least five days before the local 
26.14 	board meeting.
26.15 	(g) The local board must complete its work and adjourn within 20 days from the 
26.16 	time of convening stated in the notice of the clerk, unless a longer period is approved by 
26.17 	the commissioner of revenue. No action taken after that date is valid. All complaints 
26.18 	about an assessment or classification made after the meeting of the board must be heard 
26.19 	and determined by the county board of equalization. A nonresident may, at any time, 
26.20 	before the meeting of the board file written objections to an assessment or classification 
26.21 	with the county assessor. The objections must be presented to the board at its meeting by 
26.22 	the county assessor for its consideration.

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

26.24 	Sec. 34. Minnesota Statutes 2012, section 274.01, subdivision 2, is amended to read:
26.25 		Subd. 2.Special board; duties delegated. The governing body of a city, including 
26.26 	a city whose charter provides for a board of equalization, may appoint a special board of 
26.27 	review. The city may delegate to the special board of review all of the powers and duties 
26.28 	in subdivision 1. The special board of review shall serve at the direction and discretion 
26.29 	of the appointing body, subject to the restrictions imposed by law. The appointing body 
26.30 	shall determine the number of members of the board, the compensation and expenses to be 
26.31 	paid, and the term of office of each member. At least one member of the special board 
26.32 	of review must be an appraiser, realtor, or other person familiar with property valuations 
26.33 	in the assessment district.

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

27.1 	Sec. 35. Minnesota Statutes 2012, section 275.08, subdivision 1a, is amended to read:
27.2 		Subd. 1a.Computation of tax capacity. For taxes payable in 1989, the county 
27.3 	auditor shall compute the gross tax capacity for each parcel according to the class rates 
27.4 	specified in section 273.13. The gross tax capacity will be the appropriate class rate 
27.5 	multiplied by the parcel's market value. For taxes payable in 1990 and subsequent years,
27.6 	 The county auditor shall compute the net tax capacity for each parcel according to the 
27.7 	class rates specified in section 273.13. The net tax capacity will be the appropriate class 
27.8 	rate multiplied by the parcel's market value.

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

27.10 	Sec. 36. Minnesota Statutes 2012, section 275.08, subdivision 1d, is amended to read:
27.11 		Subd. 1d.Additional adjustment. If, after computing each local government's 
27.12 	adjusted local tax rate within a unique taxing jurisdiction pursuant to subdivision 1c, the 
27.13 	auditor finds that the total adjusted local tax rate of all local governments combined is 
27.14 	less than 90 percent of gross tax capacity for taxes payable in 1989 and 90 percent of net 
27.15 	tax capacity for taxes payable in 1990 and thereafter, the auditor shall increase each local 
27.16 	government's adjusted local tax rate proportionately so the total adjusted local tax rate of 
27.17 	all local governments combined equals 90 percent. The total amount of the increase in 
27.18 	tax resulting from the increased local tax rates must not exceed the amount of disparity 
27.19 	aid allocated to the unique taxing district under section 273.1398. The auditor shall 
27.20 	certify to the Department of Revenue the difference between the disparity aid originally 
27.21 	allocated under section 273.1398, subdivision 3, and the amount necessary to reduce 
27.22 	the total adjusted local tax rate of all local governments combined to 90 percent. Each 
27.23 	local government's disparity reduction aid payment under section 273.1398, subdivision 
27.24 	6, must be reduced accordingly.

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

27.26 	Sec. 37. Minnesota Statutes 2013 Supplement, section 275.70, subdivision 5, is 
27.27 	amended to read:
27.28 		Subd. 5.Special levies. "Special levies" means those portions of ad valorem taxes 
27.29 	levied by a local governmental unit for the following purposes or in the following manner:
27.30 	(1) to pay the costs of the principal and interest on bonded indebtedness or to 
27.31 	reimburse for the amount of liquor store revenues used to pay the principal and interest 
27.32 	due on municipal liquor store bonds in the year preceding the year for which the levy 
27.33 	limit is calculated;
28.1 	(2) to pay the costs of principal and interest on certificates of indebtedness issued for 
28.2 	any corporate purpose except for the following:
28.3 	(i) tax anticipation or aid anticipation certificates of indebtedness;
28.4 	(ii) certificates of indebtedness issued under sections 298.28 and 298.282;
28.5 	(iii) certificates of indebtedness used to fund current expenses or to pay the costs of 
28.6 	extraordinary expenditures that result from a public emergency; or
28.7 	(iv) certificates of indebtedness used to fund an insufficiency in tax receipts or an 
28.8 	insufficiency in other revenue sources, provided that nothing in this subdivision limits the 
28.9 	special levy authorized under section 475.755;
28.10 	(3) to provide for the bonded indebtedness portion of payments made to another 
28.11 	political subdivision of the state of Minnesota;
28.12 	(4) to fund payments made to the Minnesota State Armory Building Commission 
28.13 	under section 193.145, subdivision 2, to retire the principal and interest on armory 
28.14 	construction bonds;
28.15 	(5) property taxes approved by voters which are levied against the referendum 
28.16 	market value as provided under section 275.61;
28.17 	(6) to fund matching requirements needed to qualify for federal or state grants or 
28.18 	programs to the extent that either (i) the matching requirement exceeds the matching 
28.19 	requirement in calendar year 2001, or (ii) it is a new matching requirement that did not 
28.20 	exist prior to 2002;
28.21 	(7) to pay the expenses reasonably and necessarily incurred in preparing for or 
28.22 	repairing the effects of natural disaster including the occurrence or threat of widespread 
28.23 	or severe damage, injury, or loss of life or property resulting from natural causes, in 
28.24 	accordance with standards formulated by the Emergency Services Division of the state 
28.25 	Department of Public Safety, as allowed by the commissioner of revenue under section 
28.26 	275.74, subdivision 2;
28.27 	(8) pay amounts required to correct an error in the levy certified to the county 
28.28 	auditor by a city or county in a levy year, but only to the extent that when added to the 
28.29 	preceding year's levy it is not in excess of an applicable statutory, special law or charter 
28.30 	limitation, or the limitation imposed on the governmental subdivision by sections 275.70 
28.31 	to 275.74 in the preceding levy year;
28.32 	(9) to pay an abatement under section 469.1815;
28.33 	(10) to pay any costs attributable to increases in the employer contribution rates under 
28.34 	chapter 353, or locally administered pension plans, that are effective after June 30, 2001;
28.35 	(11) to pay the operating or maintenance costs of a county jail as authorized in section 
28.36 	641.01 or 641.262, or of a correctional facility as defined in section 241.021, subdivision 1, 
29.1 	paragraph (f), to the extent that the county can demonstrate to the commissioner of revenue 
29.2 	that the amount has been included in the county budget as a direct result of a rule, minimum 
29.3 	requirement, minimum standard, or directive of the Department of Corrections, or to pay 
29.4 	the operating or maintenance costs of a regional jail as authorized in section 641.262. For 
29.5 	purposes of this clause, a district court order is not a rule, minimum requirement, minimum 
29.6 	standard, or directive of the Department of Corrections. If the county utilizes this special 
29.7 	levy, except to pay operating or maintenance costs of a new regional jail facility under 
29.8 	sections 641.262 to 641.264 which will not replace an existing jail facility, any amount 
29.9 	levied by the county in the previous levy year for the purposes specified under this clause 
29.10 	and included in the county's previous year's levy limitation computed under section 
29.11 	275.71, shall be deducted from the levy limit base under section 275.71, subdivision 2, 
29.12 	when determining the county's current year levy limitation. The county shall provide the 
29.13 	necessary information to the commissioner of revenue for making this determination;
29.14 	(12) to pay for operation of a lake improvement district, as authorized under section 
29.15 	103B.555. If the county utilizes this special levy, any amount levied by the county in the 
29.16 	previous levy year for the purposes specified under this clause and included in the county's 
29.17 	previous year's levy limitation computed under section 275.71 shall be deducted from 
29.18 	the levy limit base under section 275.71, subdivision 2, when determining the county's 
29.19 	current year levy limitation. The county shall provide the necessary information to the 
29.20 	commissioner of revenue for making this determination;
29.21 	(13) to repay a state or federal loan used to fund the direct or indirect required 
29.22 	spending by the local government due to a state or federal transportation project or other 
29.23 	state or federal capital project. This authority may only be used if the project is not a 
29.24 	local government initiative;
29.25 	(14) to pay for court administration costs as required under section 273.1398, 
29.26 	subdivision 4b, less the (i) county's share of transferred fines and fees collected by the 
29.27 	district courts in the county for calendar year 2001 and (ii) the aid amount certified to be 
29.28 	paid to the county in 2004 under section 273.1398, subdivision 4c; however, for taxes 
29.29 	levied to pay for these costs in the year in which the court financing is transferred to the 
29.30 	state, the amount under this clause is limited to the amount of aid the county is certified to 
29.31 	receive under section 273.1398, subdivision 4a;
29.32 	(15) (14) to fund a firefighters relief association as required under Laws 2013, 
29.33 	chapter 111, article 5, sections 31 to 42, to the extent that the required amount exceeds the 
29.34 	amount levied for this purpose in 2001;
29.35 	(16) (15) for purposes of a storm sewer improvement district under section 444.20;
30.1 	(17) (16) to pay for the maintenance and support of a city or county society for 
30.2 	the prevention of cruelty to animals under section 343.11, but not to exceed in any year 
30.3 	$4,800 or the sum of $1 per capita based on the county's or city's population as of the most 
30.4 	recent federal census, whichever is greater. If the city or county uses this special levy, any 
30.5 	amount levied by the city or county in the previous levy year for the purposes specified 
30.6 	in this clause and included in the city's or county's previous year's levy limit computed 
30.7 	under section 275.71, must be deducted from the levy limit base under section 275.71, 
30.8 	subdivision 2, in determining the city's or county's current year levy limit;
30.9 	(18) (17) for counties, to pay for the increase in their share of health and human 
30.10 	service costs caused by reductions in federal health and human services grants effective 
30.11 	after September 30, 2007;
30.12 	(19) (18) for a city, for the costs reasonably and necessarily incurred for securing, 
30.13 	maintaining, or demolishing foreclosed or abandoned residential properties, as allowed by 
30.14 	the commissioner of revenue under section 275.74, subdivision 2. A city must have either 
30.15 	(i) a foreclosure rate of at least 1.4 percent in 2007, or (ii) a foreclosure rate in 2007 in 
30.16 	the city or in a zip code area of the city that is at least 50 percent higher than the average 
30.17 	foreclosure rate in the metropolitan area, as defined in section 473.121, subdivision 2, 
30.18 	to use this special levy. For purposes of this paragraph, "foreclosure rate" means the 
30.19 	number of foreclosures, as indicated by sheriff sales records, divided by the number of 
30.20 	households in the city in 2007;
30.21 	(20) for a city, for the unreimbursed costs of redeployed traffic-control agents and 
30.22 	lost traffic citation revenue due to the collapse of the Interstate 35W bridge, as certified 
30.23 	to the Federal Highway Administration;
30.24 	(21) (19) to pay costs attributable to wages and benefits for sheriff, police, and fire 
30.25 	personnel. If a local governmental unit did not use this special levy in the previous year its 
30.26 	levy limit base under section 275.71 shall be reduced by the amount equal to the amount it 
30.27 	levied for the purposes specified in this clause in the previous year;
30.28 	(22) (20) an amount equal to any reductions in the certified aids or credit 
30.29 	reimbursements payable under sections 477A.011 to 477A.014, and section 273.1384, 
30.30 	due to unallotment under section 16A.152 or reductions under another provision of law. 
30.31 	The amount of the levy allowed under this clause for each year is limited to the amount 
30.32 	unallotted or reduced from the aids and credit reimbursements certified for payment in the 
30.33 	year following the calendar year in which the tax levy is certified unless the unallotment 
30.34 	or reduction amount is not known by September 1 of the levy certification year, and 
30.35 	the local government has not adjusted its levy under section 275.065, subdivision 6, or 
31.1 	275.07, subdivision 6, in which case that unallotment or reduction amount may be levied 
31.2 	in the following year;
31.3 	(23) (21) to pay for the difference between one-half of the costs of confining sex 
31.4 	offenders undergoing the civil commitment process and any state payments for this 
31.5 	purpose pursuant to section 253D.12;
31.6 	(24) (22) for a county to pay the costs of the first year of maintaining and operating 
31.7 	a new facility or new expansion, either of which contains courts, corrections, dispatch, 
31.8 	criminal investigation labs, or other public safety facilities and for which all or a portion 
31.9 	of the funding for the site acquisition, building design, site preparation, construction, and 
31.10 	related equipment was issued or authorized prior to the imposition of levy limits in 2008. 
31.11 	The levy limit base shall then be increased by an amount equal to the new facility's first 
31.12 	full year's operating costs as described in this clause; and
31.13 	(25) (23) for the estimated amount of reduction to market value credit reimbursements 
31.14 	under section 273.1384 for credits payable in the year in which the levy is payable.

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

31.16 	Sec. 38. Minnesota Statutes 2012, section 275.74, subdivision 2, is amended to read:
31.17 		Subd. 2.Authorization for special levies. (a) A local governmental unit may 
31.18 	request authorization to levy for unreimbursed costs for natural disasters under section 
31.19 	275.70, subdivision 5, clause (7). The local governmental unit shall submit a request to 
31.20 	levy under section 275.70, subdivision 5, clause (7), to the commissioner of revenue by 
31.21 	September 30 of the levy year and the request must include information documenting the 
31.22 	estimated unreimbursed costs. The commissioner of revenue may grant levy authority, 
31.23 	up to the amount requested based on the documentation submitted. All decisions of the 
31.24 	commissioner are final.
31.25 	(b) A city may request authorization to levy for reasonable and necessary costs for 
31.26 	securing, maintaining, or demolishing foreclosed or abandoned residential properties under 
31.27 	section 275.70, subdivision 5, clause (19) (18). The local governmental unit shall submit a 
31.28 	request to levy under section 275.70, subdivision 5, clause (19) (18), to the commissioner 
31.29 	of revenue by September 30 of the levy year and the request must include information 
31.30 	documenting the estimated costs. For taxes payable in 2009, the amount may include 
31.31 	unanticipated costs incurred above the amount budgeted for these purposes in 2008. Costs 
31.32 	of securing foreclosed or abandoned residential properties include payment for police and 
31.33 	fire department services. The commissioner of revenue may grant levy authority, up to the 
31.34 	lesser of (1) the amount requested based on the documentation submitted, or (2) $3,000 
32.1 	multiplied by the number of foreclosed residential properties, as defined by sheriff sales 
32.2 	records, in calendar year 2007. All decisions of the commissioner are final.

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

32.4 	Sec. 39. Minnesota Statutes 2012, section 275.75, is amended to read:
32.5 	275.75 CHARTER EXEMPTION FOR AID LOSS.
32.6 	Notwithstanding any other provision of a municipal charter that limits ad valorem 
32.7 	taxes to a lesser amount, or that would require voter approval for any increase, the 
32.8 	governing body of a municipality may by resolution increase its levy in any year by an 
32.9 	amount equal to its special levies under section 275.70, subdivision 5, clauses (22) and 
32.10 	(25) (20) and (23).

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

32.12 	Sec. 40. Minnesota Statutes 2012, section 279.03, is amended to read:
32.13 	279.03 INTEREST ON DELINQUENT PROPERTY TAXES.
32.14 		Subdivision 1.Rate Interest calculation. The rate of interest on delinquent 
32.15 	property taxes levied in 1979 and prior years is fixed at six percent per year until January 
32.16 	1, 1983. Thereafter Interest is payable at the rate determined pursuant to section 549.09. 
32.17 	The rate of interest on delinquent property taxes levied in 1980 and subsequent years is 
32.18 	the rate determined pursuant to section 549.09. All provisions of law except section 
32.19 	549.09 providing for the calculation of interest at any different rate on delinquent taxes in 
32.20 	any notice or proceeding in connection with the payment, collection, sale, or assignment 
32.21 	of delinquent taxes, or redemption from such sale or assignment are hereby amended 
32.22 	to correspond herewith. Section 549.09shall continue in force applies with respect to 
32.23 	judgments arising out of petitions for review filed pursuant to chapter 278 irrespective of 
32.24 	the levy year.
32.25 	For property taxes levied in 1980 and prior years, interest is to be calculated at 
32.26 	simple interest from the second Monday in May following the year in which the taxes 
32.27 	become due until the time that the taxes and penalties are paid, computed on the amount 
32.28 	of unpaid taxes, penalties and costs. For property taxes levied in 1981 and subsequent 
32.29 	years, Interest shall commence on the first day of January following the year in which the 
32.30 	taxes become due, but the county treasurer need not calculate interest on unpaid taxes and 
32.31 	penalties on the tax list returned to the county auditor pursuant to section 279.01.
33.1 	If interest is payable for a portion of a year, the interest is calculated only for the 
33.2 	months that the taxes or penalties remain unpaid, and for this purpose a portion of a month 
33.3 	is deemed to be a whole month.
33.4 		Subd. 1a.Rate after December 31, 1990. (a) Except as provided in paragraph (b), 
33.5 	interest on delinquent property taxes, penalties, and costs unpaid on or after January 1, 
33.6 	1991, shall be is payable at the per annum rate determined in section 270C.40, subdivision 
33.7 	5. If the rate so determined is less than ten percent, the rate of interest shall be is ten 
33.8 	percent. The maximum per annum rate shall be is 14 percent if the rate specified under 
33.9 	section 270C.40, subdivision 5, exceeds 14 percent. The rate shall be is subject to change 
33.10 	on January 1 of each year.
33.11 	(b) If a person is the owner of one or more parcels of property on which taxes are 
33.12 	delinquent, and the delinquent taxes are more than 25 percent of the prior year's school 
33.13 	district levy, interest on the delinquent property taxes, penalties, and costs unpaid after 
33.14 	January 1, 1992, shall be is payable at twice the rate determined under paragraph (a) for 
33.15 	the year.
33.16 		Subd. 2.Composite judgment. Amounts included in composite judgments 
33.17 	authorized by section 279.37, subdivision 1, and confessed on or after July 1, 1982, are 
33.18 	subject to interest at the rate determined pursuant to section 549.09. Amounts confessed 
33.19 	under this authority after December 31, 1990, are subject to interest at the rate calculated 
33.20 	under subdivision 1a. During each calendar year, interest shall accrue accrues on the 
33.21 	unpaid balance of the composite judgment from the time it is confessed until it is paid. 
33.22 	The rate of interest is subject to change each year in the same manner that section 549.09
33.23 	 or as provided in subdivision 1a, whichever is applicable, for rate changes. Interest on the 
33.24 	unpaid contract balance on judgments confessed before July 1, 1982, is payable at the rate 
33.25 	applicable to the judgment at the time that it was confessed.

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

33.27 	Sec. 41. Minnesota Statutes 2012, section 279.16, is amended to read:
33.28 	279.16 JUDGMENT WHEN NO ANSWER; FORM; ENTRY.
33.29 	Upon the expiration of 20 days from the later of the filing of the affidavit of 
33.30 	publication or the filing of the affidavit of mailing pursuant to section 279.131, the 
33.31 	court administrator shall enter judgment against each and every such parcel as to which 
33.32 	no answer has been filed, which judgment shall include all such parcels, and shall be 
33.33 	substantially in the following form:

34.1	State of Minnesota
	)
	District Court,
		
34.2		) ss.
			
34.3	County of 
........	)
	.............. Judicial District.
		
34.4 	In the matter of the proceedings to enforce payment of the taxes on real estate 
34.5 	remaining delinquent on the first Monday in January, ......., for the county of ...................., 
34.6 	state of Minnesota.
34.7 	A list of taxes on real property, delinquent on the first Monday in January, ......., for 
34.8 	said county of ................., having been duly filed in the office of the court administrator of 
34.9 	this court, and the notice and list required by law having been duly published and mailed 
34.10 	as required by law, and more than 20 days having elapsed since the last publication of the 
34.11 	notice and list, and no answer having been filed by any person, company, or corporation 
34.12 	to the taxes upon any of the parcels of land hereinafter described, it is hereby adjudged 
34.13 	that each parcel of land hereinafter described is liable for taxes, penalties, and costs to the 
34.14 	amount set opposite the same, as follows:

34.15	Description.
	Parcel Number.
	Amount.
	
34.16 	The amount of taxes, penalties, and cost to which, as hereinbefore stated, each of 
34.17 	such parcels of land is liable, is hereby declared a lien upon such parcel of land as against 
34.18 	the estate, right, title, interest, claim, or lien, of whatever nature, in law or equity, of every 
34.19 	person, company, or corporation; and it is adjudged that, unless the amount to which 
34.20 	each of such parcels is liable be paid, each of such parcels be sold, as provided by law, 
34.21 	to satisfy the amount to which it is liable.

34.22		Dated this ............. day of ..............., .......
		
34.23
34.24
34.25		........
Court Administrator of the District Court,
County of 
........		
34.26 	The judgment shall be entered by the court administrator in a book to be kept by 
34.27 	the court administrator, to be called the real estate tax judgment book, and signed by the 
34.28 	court administrator. The judgment shall be written out on the left-hand pages of the book, 
34.29 	leaving the right-hand pages blank for the entries in this chapter hereinafter provided; and
34.30 	 The same presumption in favor of the regularity and validity of the judgment shall be 
34.31 	deemed to exist as in respect to judgments in civil actions in such court, except where taxes 
34.32 	have been paid before the entry of judgment, or where the land is exempt from taxation, in 
34.33 	which cases the judgment shall be prima facie evidence only of its regularity and validity.

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

35.1 	Sec. 42. Minnesota Statutes 2012, section 279.23, is amended to read:
35.2 	279.23 COPY OF JUDGMENT TO COUNTY AUDITOR.
35.3 	When any real estate tax judgment is entered, the court administrator shall forthwith
35.4 	 deliver to the county auditor, in a book to be provided by the auditor, a certified copy of 
35.5 	such judgment, which shall be written on the left-hand pages of the book, leaving the 
35.6 	right-hand pages blank.

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

35.8 	Sec. 43. Minnesota Statutes 2012, section 279.25, is amended to read:
35.9 	279.25 PAYMENT BEFORE JUDGMENT.
35.10 	Before sale any person may pay the amount adjudged against any parcel of land. 
35.11 	If payment is made before entry of judgment, and the delinquent list has been filed with 
35.12 	the court administrator, the county auditor shall immediately certify such payment to the 
35.13 	court administrator, who shall note the same on such delinquent list; and all proceedings 
35.14 	pending against such parcel shall thereupon be discontinued. If payment is made after 
35.15 	judgment is entered and before sale, the auditor shall certify such payment to the clerk, 
35.16 	who, upon production of such certificate and the payment of a fee of ten cents, shall enter 
35.17 	on the right-hand page of the real estate tax judgment book, and opposite the description 
35.18 	of such parcel, satisfaction of the judgment against the same. The auditor shall make 
35.19 	proper records of all payments made under this section.

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

35.21 	Sec. 44. Minnesota Statutes 2013 Supplement, section 279.37, subdivision 2, is 
35.22 	amended to read:
35.23 		Subd. 2.Installment payments. The owner of any such parcel, or any person to 
35.24 	whom the right to pay taxes has been given by statute, mortgage, or other agreement, may 
35.25 	make and file with the county auditor of the county in which the parcel is located a written 
35.26 	offer to pay the current taxes each year before they become delinquent, or to contest the 
35.27 	taxes under Minnesota Statutes 1941, sections 278.01 to 278.13 chapter 278, and agree 
35.28 	to confess judgment for the amount provided, as determined by the county auditor. By 
35.29 	filing the offer, the owner waives all irregularities in connection with the tax proceedings 
35.30 	affecting the parcel and any defense or objection which the owner may have to the 
35.31 	proceedings, and also waives the requirements of any notice of default in the payment of 
35.32 	any installment or interest to become due pursuant to the composite judgment to be so 
35.33 	entered. Unless the property is subject to subdivision 1a, with the offer, the owner shall (i) 
36.1 	tender one-tenth of the amount of the delinquent taxes, costs, penalty, and interest, and 
36.2 	(ii) tender all current year taxes and penalty due at the time the confession of judgment is 
36.3 	entered. In the offer, the owner shall agree to pay the balance in nine equal installments, 
36.4 	with interest as provided in section 279.03, payable annually on installments remaining 
36.5 	unpaid from time to time, on or before December 31 of each year following the year in 
36.6 	which judgment was confessed. The offer must be substantially as follows:
36.7 	"To the court administrator of the district court of ........... county, I, ....................., 
36.8 	am the owner of the following described parcel of real estate located in .................... 
36.9 	county, Minnesota:
36.10 	.............................. Upon that real estate there are delinquent taxes for the year ........., and 
36.11 	prior years, as follows: (here insert year of delinquency and the total amount of delinquent 
36.12 	taxes, costs, interest, and penalty). By signing this document I offer to confess judgment in 
36.13 	the sum of $...... and waive all irregularities in the tax proceedings affecting these taxes and 
36.14 	any defense or objection which I may have to them, and direct judgment to be entered for 
36.15 	the amount stated above, minus the sum of $............, to be paid with this document, which 
36.16 	is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and interest stated above. 
36.17 	I agree to pay the balance of the judgment in nine or four equal, annual installments, with 
36.18 	interest as provided in section 279.03, payable annually, on the installments remaining 
36.19 	unpaid. I agree to pay the installments and interest on or before December 31 of each year 
36.20 	following the year in which this judgment is confessed and current taxes each year before 
36.21 	they become delinquent, or within 30 days after the entry of final judgment in proceedings 
36.22 	to contest the taxes under Minnesota Statutes, sections 278.01 to 278.13 chapter 278.
36.23 	Dated .............., ......."

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

36.25 	Sec. 45. Minnesota Statutes 2012, section 280.001, is amended to read:
36.26 	280.001 PUBLIC SALES, AUDITOR'S CERTIFICATES ABOLISHED.
36.27 	Effective the second Monday in May 1974, and each year thereafter, No parcel of 
36.28 	land against which judgment has been entered and remains unsatisfied for the taxes of 
36.29 	the preceding year or years may be sold at public vendue as provided in sections 280.01
36.30 	and 280.02 by the county auditor but shall be treated in the same manner and regarded in 
36.31 	all respects as land bid in for the state by the auditor in the manner provided in section 
36.32 	280.02. No notice of sale required by section 280.01 shall be published or posted in 1974 
36.33 	and in years thereafter, and no auditor's certificate authorized by section 280.03 shall be 
36.34 	issued on the second Monday in May 1974, or thereafter.

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

37.2 	Sec. 46. Minnesota Statutes 2012, section 280.03, is amended to read:
37.3 	280.03 CERTIFICATE OF SALE.
37.4 	The county auditor shall execute to the purchaser of each parcel a certificate which 
37.5 	may be substantially in the following form:
37.6 	"I, .........., auditor of the county of .........., state of Minnesota, do hereby certify that 
37.7 	at the sale of lands pursuant to the real estate tax judgment entered in the district court 
37.8 	in the county of .........., on the .......... day of .........., ......., in proceedings to enforce the 
37.9 	payment of taxes delinquent on real estate for the years .........., for the county of .........., 
37.10 	which sale was held at ..............., in said county of ........, on the ........ day of ........, ......., 
37.11 	the following described parcel of land, situate in said county of .........., state of Minnesota: 
37.12 	(insert description), was offered for sale to the bidder who should offer to pay the amount 
37.13 	for which the same was to be sold, at the lowest annual rate of interest on such amount; 
37.14 	and at said sale I did sell the said parcel of land to .......... for the sum of .......... dollars, 
37.15 	with interest at .......... percent per annum on such amount, that being the sum for which the 
37.16 	same was to be sold, and such rate of interest being the lowest rate percent per annum bid 
37.17 	on such sum; and, the sum having been paid, I do therefore, in consideration thereof, and 
37.18 	pursuant to the statute in such case made and provided, convey the said parcel of land, in 
37.19 	fee simple, subject to easements and restrictions of record at the date of the tax judgment 
37.20 	sale, including, but without limitation, permits for telephone, telegraph and electric 
37.21 	power lines either by underground cable or conduit or otherwise, sewer and water lines, 
37.22 	highways, railroads, and pipe lines for gas, liquids, or solids in suspension, to said .........., 
37.23 	and the heirs and assigns of ......., forever, subject to redemption as provided by law.
37.24 	Witness my hand and official seal this ........ day of ........, ....... .

37.25
37.26		........
County Auditor."
		
37.27 	If the land shall not be redeemed as provided in chapter 281, such certificate shall 
37.28 	pass to the purchaser an estate therein, in fee simple, without any other act or deed 
37.29 	whatever subject to easements and restrictions of record at the date of the tax judgment 
37.30 	sale, including, but without limitation, permits for telephone, telegraph, and electric 
37.31 	power lines either by underground cable or conduit or otherwise, sewer and water lines, 
37.32 	highways, railroads, and pipe lines for gas, liquids, or solids in suspension. Such certificate 
37.33 	may be recorded, after the time for redemption shall have expired, as other deeds of real 
37.34 	estate, and with like effect. If any purchaser at such sale shall purchase more than one 
37.35 	parcel, the auditor shall issue to the purchaser a certificate for each parcel so purchased.

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

38.2 	Sec. 47. Minnesota Statutes 2012, section 280.07, is amended to read:
38.3 	280.07 ENTRIES IN JUDGMENT BOOKS AFTER SALE.
38.4 	Immediately after such sale the county auditor shall set out in the copy judgment 
38.5 	book record that all parcels were bid in for the state. The county auditor shall thereupon 
38.6 	deliver such book to notify the court administrator, who shall forthwith enter on the 
38.7 	right-hand page of the real estate tax judgment book, opposite the description of each 
38.8 	parcel sold, the words "bid in for the state," and thereupon redeliver the copy judgment 
38.9 	book to the auditor. Upon redemption the auditor shall make a note thereon in the copy 
38.10 	judgment book, opposite the parcel redeemed.

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

38.12 	Sec. 48. Minnesota Statutes 2012, section 280.11, is amended to read:
38.13 	280.11 LANDS BID IN FOR STATE.
38.14 	At any time after any parcel of land has been bid in for the state, the same not having 
38.15 	been redeemed, the county auditor shall assign and convey the same, and all the right of 
38.16 	the state therein acquired at such sale, to any person who shall pay the amount for which 
38.17 	the same was bid in, with interest at the rate of 12 percent per annum, and the amount of 
38.18 	all subsequent delinquent taxes, penalties, costs, and interest at such rate upon the same 
38.19 	from the time when such taxes became delinquent. The county auditor shall execute to 
38.20 	such person a certificate for such parcel, which may be substantially in the following form:
38.21 	"I, .........., auditor of the county of .........., state of Minnesota, do hereby certify that 
38.22 	at the sale of lands pursuant to the real estate tax judgment entered in the district court 
38.23 	in the county of .........., on the .......... day of .........., ......., in proceedings to enforce the 
38.24 	payment of taxes delinquent upon real estate for the years .......... for the county of .........., 
38.25 	which sale was held at .........., in said county of .........., on the .......... day of .........., ......., 
38.26 	the following described parcel of land, situate in said county of .........., state of Minnesota: 
38.27 	(insert description), was duly offered for sale; and, no one bidding upon such offer an 
38.28 	amount equal to that for which the parcel was subject to be sold, the same was then bid in 
38.29 	for the state at such amount, being the sum of .......... dollars; and the same still remaining 
38.30 	unredeemed, and on this day .......... having paid into the treasury of the county the amount 
38.31 	for which the same was so bid in, and all subsequent delinquent taxes, penalties, costs, 
38.32 	and interest, amounting in all to .......... dollars, therefore, in consideration thereof, and 
38.33 	pursuant to the statute in such case made and provided, I do hereby assign and convey this 
39.1 	parcel of land, in fee simple, subject to easements and restrictions of record at the date of 
39.2 	the tax judgment sale, including but without limitation, permits for telephone, telegraph,
39.3 	 and electric power lines either by underground cable or conduit or otherwise, sewer and 
39.4 	water lines, highways, railroads, and pipe lines for gas, liquids, or solids in suspension, 
39.5 	with all the right, title and interest of the state acquired therein at such sale to .........., and 
39.6 	the heirs and assigns of ........, forever, subject to redemption as provided by law.
39.7 	Witness my hand and official seal this .......... day of .........., .......

39.8
39.9		........
County Auditor."
		
39.10 	If the land shall not be redeemed, as provided in chapter 281, such certificate shall 
39.11 	pass to the purchaser or assignee an estate therein, in fee simple, without any other act 
39.12 	or deed whatever subject to easements and restrictions of record at the date of the tax 
39.13 	judgment sale, including, but without limitation, permits for telephone, telegraph and 
39.14 	electric power lines either by underground cable or conduit or otherwise, sewer and water 
39.15 	lines, highways, railroads, and pipe lines for gas, liquids, or solids in suspension. Such 
39.16 	certificate or conveyance may be recorded, after the time for redemption shall have 
39.17 	expired, as other deeds of real estate, and with like effect. No assignment of the right of 
39.18 	the state shall be given pursuant to this section after January 1, 1972.

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

39.20 	Sec. 49. Minnesota Statutes 2012, section 281.03, is amended to read:
39.21 	281.03 AUDITOR'S CERTIFICATE.
39.22 	The county auditor shall certify to the amount due on such redemption, and, on 
39.23 	payment of the same to the county treasurer, shall make duplicate receipts for the certified 
39.24 	amount, describing the property redeemed, one of which shall be filed with the auditor. 
39.25 	Such receipts shall be governed by the provisions of this chapter regulating the payment 
39.26 	of current taxes and such payment shall have the effect to annul the sale. If the amount 
39.27 	certified by the auditor and received in payment for redemption be less than that required 
39.28 	by law, it shall not invalidate the redemption. On redemption being made, the auditor shall 
39.29 	enter upon the copy of the tax judgment book, opposite the description of record the 
39.30 	parcel as redeemed, the word, "redeemed.".

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

39.32 	Sec. 50. Minnesota Statutes 2013 Supplement, section 281.17, is amended to read:
39.33 	281.17 PERIOD FOR REDEMPTION.
40.1 	Except for properties for which the period of redemption has been limited under 
40.2 	sections 281.173 and 281.174, the following periods for redemption apply.
40.3 	The period of redemption for all lands sold to the state at a tax judgment sale shall 
40.4 	be three years from the date of sale to the state of Minnesota.
40.5 	The period of redemption for homesteaded lands as defined in section 273.13, 
40.6 	subdivision 22, located in a targeted neighborhood as defined in Laws 1987, chapter 386, 
40.7 	article 6, section 4, and sold to the state at a tax judgment sale is three years from the date 
40.8 	of sale. The period of redemption for all lands located in a targeted neighborhood as 
40.9 	defined in Laws 1987, chapter 386, article 6, section 4, except (1) homesteaded lands as 
40.10 	defined in section 273.13, subdivision 22, and (2) for periods of redemption beginning 
40.11 	after June 30, 1991, but before July 1, 1996, lands located in the Loring Park targeted 
40.12 	neighborhood on which a notice of lis pendens has been served, and sold to the state at a 
40.13 	tax judgment sale is one year from the date of sale.
40.14 	The period of redemption for all real property constituting a mixed municipal solid 
40.15 	waste disposal facility that is a qualified facility under section 115B.39, subdivision 1, is 
40.16 	one year from the date of the sale to the state of Minnesota.

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

40.18 	Sec. 51. Minnesota Statutes 2012, section 281.327, is amended to read:
40.19 	281.327 CANCELLATION OF CERTIFICATE UPON JUDICIAL ORDER.
40.20 	Upon the petition of any person interested in the land covered by a real estate tax 
40.21 	sale certificate, state assignment certificate, or forfeited tax sale certificate and, upon the 
40.22 	giving of such notice to the holder of such certificate as may be ordered, the district court, 
40.23 	in the proceedings resulting in the judgment upon which a real estate tax judgment sale 
40.24 	certificate, state assignment certificate, or forfeited tax sale certificate is based, may order 
40.25 	the cancellation of a real estate tax judgment sale certificate, state assignment certificate, 
40.26 	or forfeited tax sale certificate upon which notice of expiration of time of redemption 
40.27 	has been issued when the certificate or a deed issued thereon has not been recorded in 
40.28 	the office of the county recorder or filed in that of the registrar of titles, if the land is 
40.29 	registered, within seven years after the date of the issuance of such certificate; the county 
40.30 	auditor, on the filing of the order, shall make an entry in the proper copy real estate tax 
40.31 	judgment book, opposite the description of the land, "canceled by order of court" record 
40.32 	the land as canceled by order of court; and the rights of the holder under the certificate 
40.33 	shall thereupon be terminated of record in the office of the county auditor.

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

41.1 	Sec. 52. Minnesota Statutes 2012, section 282.01, subdivision 6, is amended to read:
41.2 		Subd. 6.Duties of commissioner after sale. When any sale has been made by the 
41.3 	county auditor under sections 282.01 to 282.13, the auditor shall immediately certify to 
41.4 	the commissioner of revenue such information relating to such sale, on such forms as the 
41.5 	commissioner of revenue may prescribe as will enable the commissioner of revenue to 
41.6 	prepare an appropriate deed if the sale is for cash, or keep necessary records if the sale 
41.7 	is on terms; and not later than October 31 of each year the county auditor shall submit 
41.8 	to the commissioner of revenue a statement of all instances wherein any payment of 
41.9 	principal, interest, or current taxes on lands held under certificate, due or to be paid during 
41.10 	the preceding calendar years, are still outstanding at the time such certificate is made. 
41.11 	When such statement shows that a purchaser or the purchaser's assignee is in default, the 
41.12 	commissioner of revenue may instruct the county board of the county in which the land is 
41.13 	located to cancel said certificate of sale in the manner provided by subdivision 5, provided 
41.14 	that upon recommendation of the county board, and where the circumstances are such 
41.15 	that the commissioner of revenue after investigation is satisfied that the purchaser has 
41.16 	made every effort reasonable to make payment of both the annual installment and said 
41.17 	taxes, and that there has been no willful neglect on the part of the purchaser in meeting 
41.18 	these obligations, then the commissioner of revenue may extend the time for the payment 
41.19 	for such period as the commissioner may deem warranted, not to exceed one year. On 
41.20 	payment in full of the purchase price, appropriate conveyance in fee, in such form as may 
41.21 	be prescribed by the attorney general, shall be issued by the commissioner of revenue, 
41.22 	which conveyance must be recorded by the county and shall have the force and effect of 
41.23 	a patent from the state subject to easements and restrictions of record at the date of the 
41.24 	tax judgment sale, including, but without limitation, permits for telephone, telegraph, and 
41.25 	electric power lines either by underground cable or conduit or otherwise, sewer and water 
41.26 	lines, highways, railroads, and pipe lines for gas, liquids, or solids in suspension.

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

41.28 	Sec. 53. Minnesota Statutes 2012, section 282.04, subdivision 4, is amended to read:
41.29 		Subd. 4.Easements. The county auditor, when and for such price and on such 
41.30 	terms and for such period as the county board prescribes, may grant easements or permits 
41.31 	on unsold tax-forfeited land for telephone, telegraph, and electric power lines either by 
41.32 	underground cable or conduit or otherwise, sewer and water lines, highways, recreational 
41.33 	trails, railroads, and pipe lines for gas, liquids, or solids in suspension. Any such easement 
41.34 	or permit may be canceled by resolution of the county board after reasonable notice for 
41.35 	any substantial breach of its terms or if at any time its continuance will conflict with 
42.1 	public use of the land, or any part thereof, on which it is granted. Land affected by any 
42.2 	such easement or permit may be sold or leased for mineral or other legal purpose, but sale 
42.3 	or lease shall be subject to the easement or permit, and all rights granted by the easement 
42.4 	or permit shall be excepted from the conveyance or lease of the land and be reserved, 
42.5 	and may be canceled by the county board in the same manner and for the same reasons 
42.6 	as it could have been canceled before sale and in that case the rights granted thereby 
42.7 	shall vest in the state in trust as the land on which it was granted was held before sale or 
42.8 	lease. Any easement or permit granted before passage of Laws 1951, Chapter 203, may 
42.9 	be governed thereby if the holder thereof and county board so agree. Reasonable notice 
42.10 	as used in this subdivision, means a 90-day written notice addressed to the record owner 
42.11 	of the easement at the last known address, and upon cancellation the county board may 
42.12 	grant extensions of time to vacate the premises affected.

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

42.14 	Sec. 54. Minnesota Statutes 2012, section 282.261, subdivision 2, is amended to read:
42.15 		Subd. 2.Interest rate. The unpaid balance on any repurchase contract approved 
42.16 	by the county board on or after July 1, 1982, is subject to interest at the rate determined 
42.17 	pursuant to section 549.09. Repurchase contracts approved after December 31, 1990, are 
42.18 	subject to interest at the rate determined in section 279.03, subdivision 1a. The interest 
42.19 	rate is subject to change each year on the unpaid balance in the manner provided for rate 
42.20 	changes in section 549.09 or279.03, subdivision 1a, whichever is applicable. Interest on 
42.21 	the unpaid contract balance on repurchases approved before July 1, 1982, is payable at the 
42.22 	rate applicable to the repurchase contract at the time that it was approved.

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

42.24 	Sec. 55. Minnesota Statutes 2012, section 282.261, subdivision 4, is amended to read:
42.25 		Subd. 4.Service fee. The county auditor may collect a service fee to cover 
42.26 	administrative costs as set by the county board for each repurchase application received 
42.27 	after July 1, 1985. The fee must be paid at the time of application and must be credited to 
42.28 	the county general revenue fund.

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

42.30 	Sec. 56. Minnesota Statutes 2012, section 282.261, subdivision 5, is amended to read:
42.31 		Subd. 5.County may impose conditions of repurchase. The county auditor, after 
42.32 	receiving county board approval, may impose conditions on repurchase of tax-forfeited 
43.1 	lands limiting the use of the parcel subject to the repurchase, including, but not limited to, 
43.2 	environmental remediation action plan restrictions or covenants, or easements for lines or 
43.3 	equipment for telephone, telegraph, electric power, or telecommunications.

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

43.5 	Sec. 57. Minnesota Statutes 2012, section 282.322, is amended to read:
43.6 	282.322 FORFEITED LANDS LIST.
43.7 	The county board of any county may at any time after the passage of Laws 1945, 
43.8 	chapter 296, file a list of forfeited lands with the county auditor, if the board is of the 
43.9 	opinion that such lands may be acquired by the state or any municipal subdivision thereof 
43.10 	for public purposes. Upon the filing of such list the county auditor shall withhold said 
43.11 	lands from repurchase. If no proceeding shall be started to acquire such lands by the 
43.12 	state or some municipal subdivision thereof within one year after the filing of such list 
43.13 	the county board shall withdraw said list and thereafter the owner shall have one year in 
43.14 	which to repurchase as otherwise provided in Laws 1945, chapter 296.

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

43.16 	Sec. 58. Minnesota Statutes 2012, section 287.30, is amended to read:
43.17 	287.30 COUNTY TREASURER; DUTIES.
43.18 	The care of documentary stamps entrusted to county treasurers and the duties imposed 
43.19 	upon county treasurers by this chapter are within the duties of such office and are within 
43.20 	the coverage of any official bond delivered to the state, conditioned that any such officer 
43.21 	shall faithfully execute the duties of office. The county board may by resolution require 
43.22 	the county auditor to perform any duty imposed on the county treasurer under this chapter.

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

43.24 	Sec. 59. Minnesota Statutes 2012, section 289A.25, subdivision 1, is amended to read:
43.25 		Subdivision 1.Requirements to pay. An individual, trust, S corporation, or 
43.26 	partnership must, when prescribed in subdivision 3, paragraph (b), make payments of 
43.27 	estimated tax. For individuals, the term "estimated tax" means the amount the taxpayer 
43.28 	estimates is the sum of the taxes imposed by chapter 290 for the taxable year. For trusts, 
43.29 	S corporations, and partnerships, the term estimated tax means the amount the taxpayer 
43.30 	estimates is the sum of the taxes for the taxable year imposed by chapter 290 and the 
43.31 	composite income tax imposed by section 289A.08, subdivision 7. If the individual is an 
44.1 	infant or incompetent person, the payments must be made by the individual's guardian. If 
44.2 	joint payments on estimated tax are made but a joint return is not made for the taxable 
44.3 	year, the estimated tax for that year may be treated as the estimated tax of either the 
44.4 	husband or the wife or may be divided between them.
44.5 	Notwithstanding the provisions of this section, no payments of estimated tax are 
44.6 	required if the estimated tax, as defined in this subdivision, less the credits allowed against 
44.7 	the tax, is less than $500.

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

44.9 	Sec. 60. Minnesota Statutes 2012, section 290.01, subdivision 5, is amended to read:
44.10 		Subd. 5.Domestic corporation. The term "domestic" when applied to a corporation 
44.11 	means a corporation:
44.12 	(1) created or organized in the United States, or under the laws of the United 
44.13 	States or of any state, the District of Columbia, or any political subdivision of any of 
44.14 	the foregoing but not including the Commonwealth of Puerto Rico, or any possession 
44.15 	of the United States; or
44.16 	(2) which qualifies as a DISC, as defined in section 992(a) of the Internal Revenue 
44.17 	Code; or.
44.18 	(3) which qualifies as a FSC, as defined in section 922 of the Internal Revenue Code.

44.19 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
44.20 	December 31, 2013.

44.21 	Sec. 61. Minnesota Statutes 2013 Supplement, section 290.01, subdivision 19d, 
44.22 	is amended to read:
44.23 		Subd. 19d.Corporations; modifications decreasing federal taxable income. For 
44.24 	corporations, there shall be subtracted from federal taxable income after the increases 
44.25 	provided in subdivision 19c:
44.26 	(1) the amount of foreign dividend gross-up added to gross income for federal 
44.27 	income tax purposes under section 78 of the Internal Revenue Code;
44.28 	(2) the amount of salary expense not allowed for federal income tax purposes due to 
44.29 	claiming the work opportunity credit under section 51 of the Internal Revenue Code;
44.30 	(3) any dividend (not including any distribution in liquidation) paid within the 
44.31 	taxable year by a national or state bank to the United States, or to any instrumentality of 
44.32 	the United States exempt from federal income taxes, on the preferred stock of the bank 
44.33 	owned by the United States or the instrumentality;
45.1 	(4) amounts disallowed for intangible drilling costs due to differences between 
45.2 	this chapter and the Internal Revenue Code in taxable years beginning before January 
45.3 	1, 1987, as follows:
45.4 	(i) to the extent the disallowed costs are represented by physical property, an amount 
45.5 	equal to the allowance for depreciation under Minnesota Statutes 1986, section 290.09, 
45.6 	subdivision 7, subject to the modifications contained in subdivision 19e; and
45.7 	(ii) to the extent the disallowed costs are not represented by physical property, an 
45.8 	amount equal to the allowance for cost depletion under Minnesota Statutes 1986, section 
45.9 	290.09, subdivision 8;
45.10 	(5) (4) the deduction for capital losses pursuant to sections 1211 and 1212 of the 
45.11 	Internal Revenue Code, except that:
45.12 	(i) for capital losses incurred in taxable years beginning after December 31, 1986, 
45.13 	capital loss carrybacks shall not be allowed;
45.14 	(ii) for capital losses incurred in taxable years beginning after December 31, 1986, 
45.15 	a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be 
45.16 	allowed;
45.17 	(iii) for capital losses incurred in taxable years beginning before January 1, 1987, a 
45.18 	capital loss carryback to each of the three taxable years preceding the loss year, subject to 
45.19 	the provisions of Minnesota Statutes 1986, section 290.16, shall be allowed; and
45.20 	(iv) for capital losses incurred in taxable years beginning before January 1, 1987, 
45.21 	a capital loss carryover to each of the five taxable years succeeding the loss year to the 
45.22 	extent such loss was not used in a prior taxable year and subject to the provisions of 
45.23 	Minnesota Statutes 1986, section 290.16, shall be allowed;
45.24 	(6) (5) an amount for interest and expenses relating to income not taxable for federal 
45.25 	income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and 
45.26 	expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or 
45.27 	291 of the Internal Revenue Code in computing federal taxable income;
45.28 	(7) (6) in the case of mines, oil and gas wells, other natural deposits, and timber for 
45.29 	which percentage depletion was disallowed pursuant to subdivision 19c, clause (8), a 
45.30 	reasonable allowance for depletion based on actual cost. In the case of leases the deduction 
45.31 	must be apportioned between the lessor and lessee in accordance with rules prescribed 
45.32 	by the commissioner. In the case of property held in trust, the allowable deduction must 
45.33 	be apportioned between the income beneficiaries and the trustee in accordance with the 
45.34 	pertinent provisions of the trust, or if there is no provision in the instrument, on the basis 
45.35 	of the trust's income allocable to each;
46.1 	(8) (7) for certified pollution control facilities placed in service in a taxable year 
46.2 	beginning before December 31, 1986, and for which amortization deductions were elected 
46.3 	under section 169 of the Internal Revenue Code of 1954, as amended through December 
46.4 	31, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes 
46.5 	1986, section 290.09, subdivision 7;
46.6 	(9) (8) amounts included in federal taxable income that are due to refunds of 
46.7 	income, excise, or franchise taxes based on net income or related minimum taxes paid 
46.8 	by the corporation to Minnesota, another state, a political subdivision of another state, 
46.9 	the District of Columbia, or a foreign country or possession of the United States to the 
46.10 	extent that the taxes were added to federal taxable income under subdivision 19c, clause 
46.11 	(1), in a prior taxable year;
46.12 	(10) (9) income or gains from the business of mining as defined in section 290.05, 
46.13 	subdivision 1, clause (a), that are not subject to Minnesota franchise tax;
46.14 	(11) (10) the amount of disability access expenditures in the taxable year which are not 
46.15 	allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code;
46.16 	(12) (11) the amount of qualified research expenses not allowed for federal income 
46.17 	tax purposes under section 280C(c) of the Internal Revenue Code, but only to the extent 
46.18 	that the amount exceeds the amount of the credit allowed under section 290.068;
46.19 	(13) (12) the amount of salary expenses not allowed for federal income tax purposes 
46.20 	due to claiming the Indian employment credit under section 45A(a) of the Internal 
46.21 	Revenue Code;
46.22 	(14) (13) any decrease in subpart F income, as defined in section 952(a) of the 
46.23 	Internal Revenue Code, for the taxable year when subpart F income is calculated without 
46.24 	regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;
46.25 	(15) (14) in each of the five tax years immediately following the tax year in which 
46.26 	an addition is required under subdivision 19c, clause (12), an amount equal to one-fifth 
46.27 	of the delayed depreciation. For purposes of this clause, "delayed depreciation" means 
46.28 	the amount of the addition made by the taxpayer under subdivision 19c, clause (12). The 
46.29 	resulting delayed depreciation cannot be less than zero;
46.30 	(16) (15) in each of the five tax years immediately following the tax year in which an 
46.31 	addition is required under subdivision 19c, clause (13), an amount equal to one-fifth of the 
46.32 	amount of the addition;
46.33 	(17) (16) to the extent included in federal taxable income, discharge of indebtedness 
46.34 	income resulting from reacquisition of business indebtedness included in federal taxable 
46.35 	income under section 108(i) of the Internal Revenue Code. This subtraction applies only 
47.1 	to the extent that the income was included in net income in a prior year as a result of the 
47.2 	addition under subdivision 19c, clause (16); and
47.3 	(18) (17) the amount of expenses not allowed for federal income tax purposes due 
47.4 	to claiming the railroad track maintenance credit under section 45G(a) of the Internal 
47.5 	Revenue Code.

47.6 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
47.7 	December 31, 2013.

47.8 	Sec. 62. Minnesota Statutes 2012, section 290.01, subdivision 19f, is amended to read:
47.9 		Subd. 19f.Basis modifications affecting gain or loss on disposition of property.
 47.10 	(a) For individuals, estates, and trusts, the basis of property is its adjusted basis for federal 
47.11 	income tax purposes except as set forth in paragraphs (e) and (f), (g), and (m). For 
47.12 	corporations, the basis of property is its adjusted basis for federal income tax purposes, 
47.13 	without regard to the time when the property became subject to tax under this chapter or to 
47.14 	whether out-of-state losses or items of tax preference with respect to the property were not 
47.15 	deductible under this chapter, except that the modifications to the basis for federal income 
47.16 	tax purposes set forth in paragraphs (b) to (j) (i) are allowed to corporations, and the 
47.17 	resulting modifications to federal taxable income must be made in the year in which gain 
47.18 	or loss on the sale or other disposition of property is recognized.
47.19 	(b) The basis of property shall not be reduced to reflect federal investment tax credit.
47.20 	(c) The basis of property subject to the accelerated cost recovery system under 
47.21 	section 168 of the Internal Revenue Code shall be modified to reflect the modifications in 
47.22 	depreciation with respect to the property provided for in subdivision 19e. For certified 
47.23 	pollution control facilities for which amortization deductions were elected under section 
47.24 	169 of the Internal Revenue Code of 1954, the basis of the property must be increased by 
47.25 	the amount of the amortization deduction not previously allowed under this chapter.
47.26 	(d) For property acquired before January 1, 1933, the basis for computing a gain is 
47.27 	the fair market value of the property as of that date. The basis for determining a loss is 
47.28 	the cost of the property to the taxpayer less any depreciation, amortization, or depletion, 
47.29 	actually sustained before that date. If the adjusted cost exceeds the fair market value of the 
47.30 	property, then the basis is the adjusted cost regardless of whether there is a gain or loss.
47.31 	(e) (d) The basis is reduced by the allowance for amortization of bond premium if 
47.32 	an election to amortize was made pursuant to Minnesota Statutes 1986, section 290.09, 
47.33 	subdivision 13, and the allowance could have been deducted by the taxpayer under this 
47.34 	chapter during the period of the taxpayer's ownership of the property.
48.1 	(f) (e) For assets placed in service before January 1, 1987, corporations, partnerships, 
48.2 	or individuals engaged in the business of mining ores other than iron ore or taconite 
48.3 	concentrates subject to the occupation tax under chapter 298 must use the occupation 
48.4 	tax basis of property used in that business.
48.5 	(g) (f) For assets placed in service before January 1, 1990, corporations, partnerships, 
48.6 	or individuals engaged in the business of mining iron ore or taconite concentrates subject 
48.7 	to the occupation tax under chapter 298 must use the occupation tax basis of property 
48.8 	used in that business.
48.9 	(h) (g) In applying the provisions of sections 301(c)(3)(B), 312(f) and (g), and 
48.10 	316(a)(1) of the Internal Revenue Code, the dates December 31, 1932, and January 1, 
48.11 	1933, shall be substituted for February 28, 1913, and March 1, 1913, respectively.
48.12 	(i) (h) In applying the provisions of section 362(a) and (c) of the Internal Revenue 
48.13 	Code, the date December 31, 1956, shall be substituted for June 22, 1954.
48.14 	(j) (i) The basis of property shall be increased by the amount of intangible drilling 
48.15 	costs not previously allowed due to differences between this chapter and the Internal 
48.16 	Revenue Code.
48.17 	(k) (j) The adjusted basis of any corporate partner's interest in a partnership is 
48.18 	the same as the adjusted basis for federal income tax purposes modified as required to 
48.19 	reflect the basis modifications set forth in paragraphs (b) to (j) (i). The adjusted basis 
48.20 	of a partnership in which the partner is an individual, estate, or trust is the same as the 
48.21 	adjusted basis for federal income tax purposes modified as required to reflect the basis 
48.22 	modifications set forth in paragraphs (e) and (f) and (g).
48.23 	(l) (k) The modifications contained in paragraphs (b) to (j) (i) also apply to the basis 
48.24 	of property that is determined by reference to the basis of the same property in the hands 
48.25 	of a different taxpayer or by reference to the basis of different property.

48.26 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
48.27 	December 31, 2013.

48.28 	Sec. 63. Minnesota Statutes 2012, section 290.01, subdivision 29, is amended to read:
48.29 		Subd. 29.Taxable income. The term "taxable income" means:
48.30 	(1) for individuals, estates, and trusts, the same as taxable net income;
48.31 	(2) for corporations, the taxable net income less
48.32 	(i) the net operating loss deduction under section 290.095;
48.33 	(ii) the dividends received deduction under section 290.21, subdivision 4; and
48.34 	(iii) the exemption for operating in a job opportunity building zone under section 
48.35 	469.317; and.
49.1 	(iv) the exemption for operating in a biotechnology and health sciences industry 
49.2 	zone under section 469.337.

49.3 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
49.4 	December 31, 2015.

49.5 	Sec. 64. Minnesota Statutes 2012, section 290.015, subdivision 1, is amended to read:
49.6 		Subdivision 1.General rule. (a) Except as provided in subdivision 3, a person 
49.7 	that conducts a trade or business that has a place of business in this state, regularly has 
49.8 	employees or independent contractors conducting business activities on its behalf in this 
49.9 	state, or owns or leases real property that is located in this state or tangible personal 
49.10 	property, including but not limited to mobile property, that is present in this state is subject 
49.11 	to the taxes imposed by this chapter.
49.12 	(b) Except as provided in subdivision 3, a person that conducts a trade or business 
49.13 	not described in paragraph (a) is subject to the taxes imposed by this chapter if the trade 
49.14 	or business obtains or regularly solicits business from within this state, without regard 
49.15 	to physical presence in this state.
49.16 	(c) For purposes of paragraph (b), business from within this state includes, but is 
49.17 	not limited to:
49.18 	(1) sales of products or services of any kind or nature to customers in this state who 
49.19 	receive the product or service in this state;
49.20 	(2) sales of services which are performed from outside this state but the services 
49.21 	are received in this state;
49.22 	(3) transactions with customers in this state that involve intangible property and 
49.23 	result in receipts attributed to this state as provided in section 290.191, subdivision 5 or 6;
49.24 	(4) leases of tangible personal property that is located in this state as defined in 
49.25 	section 290.191, subdivision 5, paragraph (g), or 6, paragraph (e); and
49.26 	(5) sales and leases of real property located in this state.
49.27 	(d) For purposes of paragraph (b), solicitation includes, but is not limited to:
49.28 	(1) the distribution, by mail or otherwise, without regard to the state from which such 
49.29 	distribution originated or in which the materials were prepared, of catalogs, periodicals, 
49.30 	advertising flyers, or other written solicitations of business to customers in this state;
49.31 	(2) display of advertisements on billboards or other outdoor advertising in this state;
49.32 	(3) advertisements in newspapers published in this state;
49.33 	(4) advertisements in trade journals or other periodicals, the circulation of which is 
49.34 	primarily within this state;
50.1 	(5) advertisements in a Minnesota edition of a national or regional publication or a 
50.2 	limited regional edition of which this state is included of a broader regional or national 
50.3 	publication which are not placed in other geographically defined editions of the same issue 
50.4 	of the same publication;
50.5 	(6) advertisements in regional or national publications in an edition which is not 
50.6 	by its contents geographically targeted to Minnesota, but which is sold over the counter 
50.7 	in Minnesota or by subscription to Minnesota residents;
50.8 	(7) advertisements broadcast on a radio or television station located in Minnesota; or
50.9 	(8) any other solicitation by telegraph, telephone, computer database, cable, optic, 
50.10 	microwave, or other communication system.

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

50.12 	Sec. 65. Minnesota Statutes 2012, section 290.07, subdivision 1, is amended to read:
50.13 		Subdivision 1.Annual accounting period. Net income and taxable net income 
50.14 	shall be computed upon the basis of the taxpayer's annual accounting period. If a taxpayer 
50.15 	has no annual accounting period, or has one other than a fiscal year, as heretofore defined,
50.16 	 the net income and taxable net income shall be computed on the basis of the calendar year. 
50.17 	Taxpayers shall employ the same accounting period on which they report, or would be 
50.18 	required to report, their net income under the Internal Revenue Code. The commissioner 
50.19 	shall provide by rule for the determination of the accounting period for taxpayers who file 
50.20 	a combined report under section 290.17, subdivision 4, when members of the group use 
50.21 	different accounting periods for federal income tax purposes. Unless the taxpayer changes 
50.22 	its accounting period for federal purposes, the due date of the return is not changed.
50.23 	A taxpayer may change accounting periods only with the consent of the 
50.24 	commissioner. In case of any such change, the taxpayer shall pay a tax for the period 
50.25 	not included in either the taxpayer's former or newly adopted taxable year, computed as 
50.26 	provided in section 290.32.

50.27 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
50.28 	December 31, 2013.

50.29 	Sec. 66. Minnesota Statutes 2012, section 290.07, subdivision 2, is amended to read:
50.30 		Subd. 2.Accounting methods. Except as specifically provided to the contrary by 
50.31 	this chapter, net income and taxable net income shall be computed in accordance with 
50.32 	the method of accounting regularly employed in keeping the taxpayer's books. If no such 
50.33 	accounting system has been regularly employed, or if that employed does not clearly or 
51.1 	fairly reflect income or the income taxable under this chapter, the computation shall be 
51.2 	made in accordance with such method as in the opinion of the commissioner does clearly 
51.3 	and fairly reflect income and the income taxable under this chapter.
51.4 	Except as otherwise expressly provided in this chapter, a taxpayer who changes the 
51.5 	method of accounting for regularly computing the taxpayer's income in keeping books 
51.6 	shall, before computing net income and taxable net income under the new method, secure 
51.7 	the consent of the commissioner.

51.8 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
51.9 	December 31, 2013.

51.10 	Sec. 67. Minnesota Statutes 2013 Supplement, section 290.0921, subdivision 3, 
51.11 	is amended to read:
51.12 		Subd. 3.Alternative minimum taxable income. "Alternative minimum taxable 
51.13 	income" is Minnesota net income as defined in section 290.01, subdivision 19, and 
51.14 	includes the adjustments and tax preference items in sections 56, 57, 58, and 59(d), (e), 
51.15 	(f), and (h) of the Internal Revenue Code. If a corporation files a separate company 
51.16 	Minnesota tax return, the minimum tax must be computed on a separate company basis. 
51.17 	If a corporation is part of a tax group filing a unitary return, the minimum tax must be 
51.18 	computed on a unitary basis. The following adjustments must be made.
51.19 	(1) For purposes of the depreciation adjustments under section 56(a)(1) and 
51.20 	56(g)(4)(A) of the Internal Revenue Code, the basis for depreciable property placed in 
51.21 	service in a taxable year beginning before January 1, 1990, is the adjusted basis for federal 
51.22 	income tax purposes, including any modification made in a taxable year under section 
51.23 	290.01, subdivision 19e, or Minnesota Statutes 1986, section 290.09, subdivision 7, 
51.24 	paragraph (c).
51.25 	For taxable years beginning after December 31, 2000, the amount of any remaining 
51.26 	modification made under section 290.01, subdivision 19e, or Minnesota Statutes 1986, 
51.27 	section 290.09, subdivision 7, paragraph (c), not previously deducted is a depreciation 
51.28 	allowance in the first taxable year after December 31, 2000.
51.29 	(2) (1) The portion of the depreciation deduction allowed for federal income tax 
51.30 	purposes under section 168(k) of the Internal Revenue Code that is required as an 
51.31 	addition under section 290.01, subdivision 19c, clause (12), is disallowed in determining 
51.32 	alternative minimum taxable income.
51.33 	(3) (2) The subtraction for depreciation allowed under section 290.01, subdivision 
51.34 	19d, clause (15) (14), is allowed as a depreciation deduction in determining alternative 
51.35 	minimum taxable income.
52.1 	(4) (3) The alternative tax net operating loss deduction under sections 56(a)(4) and 
52.2 	56(d) of the Internal Revenue Code does not apply.
52.3 	(5) (4) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the 
52.4 	Internal Revenue Code does not apply.
52.5 	(6) (5) The tax preference for depletion under section 57(a)(1) of the Internal 
52.6 	Revenue Code does not apply.
52.7 	(7) The tax preference for intangible drilling costs under section 57(a)(2) of the 
52.8 	Internal Revenue Code must be calculated without regard to subparagraph (E) and the 
52.9 	subtraction under section 290.01, subdivision 19d, clause (4).
52.10 	(8) (6) The tax preference for tax exempt interest under section 57(a)(5) of the 
52.11 	Internal Revenue Code does not apply.
52.12 	(9) (7) The tax preference for charitable contributions of appreciated property under 
52.13 	section 57(a)(6) of the Internal Revenue Code does not apply.
52.14 	(10) For purposes of calculating the tax preference for accelerated depreciation or 
52.15 	amortization on certain property placed in service before January 1, 1987, under section 
52.16 	57(a)(7) of the Internal Revenue Code, the deduction allowable for the taxable year is the 
52.17 	deduction allowed under section 290.01, subdivision 19e.
52.18 	For taxable years beginning after December 31, 2000, the amount of any remaining 
52.19 	modification made under section 290.01, subdivision 19e, not previously deducted is a 
52.20 	depreciation or amortization allowance in the first taxable year after December 31, 2004.
52.21 	(11) (8) For purposes of calculating the adjustment for adjusted current earnings 
52.22 	in section 56(g) of the Internal Revenue Code, the term "alternative minimum taxable 
52.23 	income" as it is used in section 56(g) of the Internal Revenue Code, means alternative 
52.24 	minimum taxable income as defined in this subdivision, determined without regard to the 
52.25 	adjustment for adjusted current earnings in section 56(g) of the Internal Revenue Code.
52.26 	(12) (9) For purposes of determining the amount of adjusted current earnings under 
52.27 	section 56(g)(3) of the Internal Revenue Code, no adjustment shall be made under section 
52.28 	56(g)(4) of the Internal Revenue Code with respect to (i) the amount of foreign dividend 
52.29 	gross-up subtracted as provided in section 290.01, subdivision 19d, clause (1), or (ii) the 
52.30 	amount of refunds of income, excise, or franchise taxes subtracted as provided in section 
52.31 	290.01, subdivision 19d, clause (9).
52.32 	(13) (10) Alternative minimum taxable income excludes the income from operating 
52.33 	in a job opportunity building zone as provided under section 469.317.
52.34 	(14) Alternative minimum taxable income excludes the income from operating in a 
52.35 	biotechnology and health sciences industry zone as provided under section 469.337.
53.1 	Items of tax preference must not be reduced below zero as a result of the 
53.2 	modifications in this subdivision.

53.3 	EFFECTIVE DATE. The amendments striking clauses (1), (7), and (10), and 
53.4 	the renumbering of clauses are effective for taxable years beginning after December 
53.5 	31, 2013. The amendment striking clause (14) is effective for taxable years beginning 
53.6 	after December 31, 2015.

53.7 	Sec. 68. Minnesota Statutes 2012, section 290.0922, subdivision 3, is amended to read:
53.8 		Subd. 3.Definitions. (a) "Minnesota sales or receipts" means the total sales 
53.9 	apportioned to Minnesota pursuant to section 290.191, subdivision 5, the total receipts 
53.10 	attributed to Minnesota pursuant to section 290.191, subdivisions 6 to 8, and/or the 
53.11 	total sales or receipts apportioned or attributed to Minnesota pursuant to any other 
53.12 	apportionment formula applicable to the taxpayer.
53.13 	(b) "Minnesota property" means total Minnesota tangible property as provided in 
53.14 	section 290.191, subdivisions 9 to 11, any other tangible property located in Minnesota, 
53.15 	but does not include: (1) the property of a qualified business as defined under section 
53.16 	469.310, subdivision 11, that is located in a job opportunity building zone designated 
53.17 	under section 469.314 and (2) property of a qualified business located in a biotechnology 
53.18 	and health sciences industry zone designated under section 469.334. Intangible property 
53.19 	shall not be included in Minnesota property for purposes of this section. Taxpayers who 
53.20 	do not utilize tangible property to apportion income shall nevertheless include Minnesota 
53.21 	property for purposes of this section. On a return for a short taxable year, the amount of 
53.22 	Minnesota property owned, as determined under section 290.191, shall be included in 
53.23 	Minnesota property based on a fraction in which the numerator is the number of days in 
53.24 	the short taxable year and the denominator is 365.
53.25 	(c) "Minnesota payrolls" means total Minnesota payrolls as provided in section 
53.26 	290.191, subdivision 12, but does not include: (1) the job opportunity building zone payroll 
53.27 	under section 469.310, subdivision 8, of a qualified business as defined under section 
53.28 	469.310, subdivision 11, and (2) biotechnology and health sciences industry zone payrolls 
53.29 	under section 469.330, subdivision 8. Taxpayers who do not utilize payrolls to apportion 
53.30 	income shall nevertheless include Minnesota payrolls for purposes of this section.

53.31 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
53.32 	December 31, 2015.

53.33 	Sec. 69. Minnesota Statutes 2012, section 290.095, subdivision 3, is amended to read:
54.1 		Subd. 3.Carryover. (a) A net operating loss incurred in a during the taxable year: 
54.2 	(i) beginning after December 31, 1986, shall be a net operating loss carryover to each of 
54.3 	the 15 taxable years following the taxable year of such loss; (ii) beginning before January 
54.4 	1, 1987, shall be a net operating loss carryover to each of the five taxable years following 
54.5 	the taxable year of such loss subject to the provisions of Minnesota Statutes 1986, section 
54.6 	290.095; and (iii) beginning before January 1, 1987, shall be a net operating loss carryback 
54.7 	to each of the three taxable years preceding the loss year subject to the provisions of 
54.8 	Minnesota Statutes 1986, section 290.095.
54.9 	(b) The entire amount of the net operating loss for any taxable year shall be carried to 
54.10 	the earliest of the taxable years to which such loss may be carried. The portion of such loss 
54.11 	which shall be carried to each of the other taxable years shall be the excess, if any, of the 
54.12 	amount of such loss over the sum of the taxable net income, adjusted by the modifications 
54.13 	specified in subdivision 4, for each of the taxable years to which such loss may be carried.
54.14 	(c) Where a corporation apportions its income under the provisions of section 
54.15 	290.191, the net operating loss deduction incurred in any taxable year shall be allowed 
54.16 	to the extent of the apportionment ratio of the loss year.
54.17 	(d) The provisions of sections 381, 382, and 384 of the Internal Revenue Code apply 
54.18 	to carryovers in certain corporate acquisitions and special limitations on net operating loss 
54.19 	carryovers. The limitation amount determined under section 382 shall be applied to net 
54.20 	income, before apportionment, in each post change year to which a loss is carried.

54.21 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
54.22 	December 31, 2013.

54.23 	Sec. 70. Minnesota Statutes 2013 Supplement, section 290.191, subdivision 5, is 
54.24 	amended to read:
54.25 		Subd. 5.Determination of sales factor. For purposes of this section, the following 
54.26 	rules apply in determining the sales factor.
54.27 	(a) The sales factor includes all sales, gross earnings, or receipts received in the 
54.28 	ordinary course of the business, except that the following types of income are not included 
54.29 	in the sales factor:
54.30 	(1) interest;
54.31 	(2) dividends;
54.32 	(3) sales of capital assets as defined in section 1221 of the Internal Revenue Code;
54.33 	(4) sales of property used in the trade or business, except sales of leased property of 
54.34 	a type which is regularly sold as well as leased; and
55.1 	(5) sales of debt instruments as defined in section 1275(a)(1) of the Internal Revenue 
55.2 	Code or sales of stock.
55.3 	(b) Sales of tangible personal property are made within this state if the property is 
55.4 	received by a purchaser at a point within this state, and the taxpayer is taxable in this state,
55.5 	 regardless of the f.o.b. point, other conditions of the sale, or the ultimate destination 
55.6 	of the property.
55.7 	(c) Tangible personal property delivered to a common or contract carrier or foreign 
55.8 	vessel for delivery to a purchaser in another state or nation is a sale in that state or nation, 
55.9 	regardless of f.o.b. point or other conditions of the sale.
55.10 	(d) Notwithstanding paragraphs (b) and (c), when intoxicating liquor, wine, 
55.11 	fermented malt beverages, cigarettes, or tobacco products are sold to a purchaser who is 
55.12 	licensed by a state or political subdivision to resell this property only within the state of 
55.13 	ultimate destination, the sale is made in that state.
55.14 	(e) Sales made by or through a corporation that is qualified as a domestic 
55.15 	international sales corporation under section 992 of the Internal Revenue Code are not 
55.16 	considered to have been made within this state.
55.17 	(f) Sales, rents, royalties, and other income in connection with real property is 
55.18 	attributed to the state in which the property is located.
55.19 	(g) Receipts from the lease or rental of tangible personal property, including finance 
55.20 	leases and true leases, must be attributed to this state if the property is located in this 
55.21 	state and to other states if the property is not located in this state. Receipts from the 
55.22 	lease or rental of moving property including, but not limited to, motor vehicles, rolling 
55.23 	stock, aircraft, vessels, or mobile equipment are included in the numerator of the receipts 
55.24 	factor to the extent that the property is used in this state. The extent of the use of moving 
55.25 	property is determined as follows:
55.26 	(1) A motor vehicle is used wholly in the state in which it is registered.
55.27 	(2) The extent that rolling stock is used in this state is determined by multiplying 
55.28 	the receipts from the lease or rental of the rolling stock by a fraction, the numerator of 
55.29 	which is the miles traveled within this state by the leased or rented rolling stock and the 
55.30 	denominator of which is the total miles traveled by the leased or rented rolling stock.
55.31 	(3) The extent that an aircraft is used in this state is determined by multiplying the 
55.32 	receipts from the lease or rental of the aircraft by a fraction, the numerator of which is 
55.33 	the number of landings of the aircraft in this state and the denominator of which is the 
55.34 	total number of landings of the aircraft.
55.35 	(4) The extent that a vessel, mobile equipment, or other mobile property is used in 
55.36 	the state is determined by multiplying the receipts from the lease or rental of the property 
56.1 	by a fraction, the numerator of which is the number of days during the taxable year the 
56.2 	property was in this state and the denominator of which is the total days in the taxable year.
56.3 	(h) Royalties and other income received for the use of or for the privilege of using 
56.4 	intangible property, including patents, know-how, formulas, designs, processes, patterns, 
56.5 	copyrights, trade names, service names, franchises, licenses, contracts, customer lists, or 
56.6 	similar items, must be attributed to the state in which the property is used by the purchaser. 
56.7 	If the property is used in more than one state, the royalties or other income must be 
56.8 	apportioned to this state pro rata according to the portion of use in this state. If the portion 
56.9 	of use in this state cannot be determined, the royalties or other income must be excluded 
56.10 	from both the numerator and the denominator. Intangible property is used in this state if 
56.11 	the purchaser uses the intangible property or the rights therein in the regular course of its 
56.12 	business operations in this state, regardless of the location of the purchaser's customers.
56.13 	(i) Sales of intangible property are made within the state in which the property is 
56.14 	used by the purchaser. If the property is used in more than one state, the sales must be 
56.15 	apportioned to this state pro rata according to the portion of use in this state. If the 
56.16 	portion of use in this state cannot be determined, the sale must be excluded from both the 
56.17 	numerator and the denominator of the sales factor. Intangible property is used in this 
56.18 	state if the purchaser used the intangible property in the regular course of its business 
56.19 	operations in this state.
56.20 	(j) Receipts from the performance of services must be attributed to the state where 
56.21 	the services are received. For the purposes of this section, receipts from the performance 
56.22 	of services provided to a corporation, partnership, or trust may only be attributed to a state 
56.23 	where it has a fixed place of doing business. If the state where the services are received is 
56.24 	not readily determinable or is a state where the corporation, partnership, or trust receiving 
56.25 	the service does not have a fixed place of doing business, the services shall be deemed 
56.26 	to be received at the location of the office of the customer from which the services were 
56.27 	ordered in the regular course of the customer's trade or business. If the ordering office 
56.28 	cannot be determined, the services shall be deemed to be received at the office of the 
56.29 	customer to which the services are billed.
56.30 	(k) For the purposes of this subdivision and subdivision 6, paragraph (l), receipts 
56.31 	from management, distribution, or administrative services performed by a corporation 
56.32 	or trust for a fund of a corporation or trust regulated under United States Code, title 15, 
56.33 	sections 80a-1 through 80a-64, must be attributed to the state where the shareholder of 
56.34 	the fund resides. Under this paragraph, receipts for services attributed to shareholders are 
56.35 	determined on the basis of the ratio of: (1) the average of the outstanding shares in the 
56.36 	fund owned by shareholders residing within Minnesota at the beginning and end of each 
57.1 	year; and (2) the average of the total number of outstanding shares in the fund at the 
57.2 	beginning and end of each year. Residence of the shareholder, in the case of an individual, 
57.3 	is determined by the mailing address furnished by the shareholder to the fund. Residence 
57.4 	of the shareholder, when the shares are held by an insurance company as a depositor for 
57.5 	the insurance company policyholders, is the mailing address of the policyholders. In 
57.6 	the case of an insurance company holding the shares as a depositor for the insurance 
57.7 	company policyholders, if the mailing address of the policyholders cannot be determined 
57.8 	by the taxpayer, the receipts must be excluded from both the numerator and denominator. 
57.9 	Residence of other shareholders is the mailing address of the shareholder.

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

57.11 	Sec. 71. Minnesota Statutes 2012, section 290.9728, subdivision 2, is amended to read:
57.12 		Subd. 2.Taxable income. For purposes of this section, taxable income means 
57.13 	the lesser of:
57.14 	(1) the amount of the net capital gain of the S corporation for the taxable year, as 
57.15 	determined under sections 1222 and 1374 of the Internal Revenue Code, and subject to the 
57.16 	modifications provided in section 290.01, subdivisions 19e and subdivision 19f, in excess 
57.17 	of $25,000 that is allocable to this state under section 290.17, 290.191, or 290.20; or
57.18 	(2) the amount of the S corporation's federal taxable income, subject to the 
57.19 	provisions of section 290.01, subdivisions 19c to 19f, that is allocable to this state under 
57.20 	section 290.17, 290.191, or 290.20.

57.21 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
57.22 	December 31, 2013.

57.23 	Sec. 72. Minnesota Statutes 2013 Supplement, section 297A.61, subdivision 3, is 
57.24 	amended to read:
57.25 		Subd. 3.Sale and purchase. (a) "Sale" and "purchase" include, but are not limited 
57.26 	to, each of the transactions listed in this subdivision. In applying the provisions of this 
57.27 	chapter, the terms "tangible personal property" and "retail sale" include the taxable 
57.28 	services listed in paragraph (g), clause (6), items (i) to (vi) and (viii), and the provision 
57.29 	of these taxable services, unless specifically provided otherwise. Services performed by 
57.30 	an employee for an employer are not taxable. Services performed by a partnership or 
57.31 	association for another partnership or association are not taxable if one of the entities owns 
57.32 	or controls more than 80 percent of the voting power of the equity interest in the other 
57.33 	entity. Services performed between members of an affiliated group of corporations are not 
58.1 	taxable. For purposes of the preceding sentence, "affiliated group of corporations" means 
58.2 	those entities that would be classified as members of an affiliated group as defined under 
58.3 	United States Code, title 26, section 1504, disregarding the exclusions in section 1504(b).
58.4 	(b) Sale and purchase include:
58.5 	(1) any transfer of title or possession, or both, of tangible personal property, whether 
58.6 	absolutely or conditionally, for a consideration in money or by exchange or barter; and
58.7 	(2) the leasing of or the granting of a license to use or consume, for a consideration 
58.8 	in money or by exchange or barter, tangible personal property, other than a manufactured 
58.9 	home used for residential purposes for a continuous period of 30 days or more.
58.10 	(c) Sale and purchase include the production, fabrication, printing, or processing of 
58.11 	tangible personal property for a consideration for consumers who furnish either directly or 
58.12 	indirectly the materials used in the production, fabrication, printing, or processing.
58.13 	(d) Sale and purchase include the preparing for a consideration of food. 
58.14 	Notwithstanding section 297A.67, subdivision 2, taxable food includes, but is not limited 
58.15 	to, the following:
58.16 	(1) prepared food sold by the retailer;
58.17 	(2) soft drinks;
58.18 	(3) candy;
58.19 	(4) dietary supplements; and
58.20 	(5) all food sold through vending machines.
58.21 	(e) A sale and a purchase includes the furnishing for a consideration of electricity, 
58.22 	gas, water, or steam for use or consumption within this state.
58.23 	(f) A sale and a purchase includes the transfer for a consideration of prewritten 
58.24 	computer software whether delivered electronically, by load and leave, or otherwise.
58.25 	(g) A sale and a purchase includes the furnishing for a consideration of the following 
58.26 	services:
58.27 	(1) the privilege of admission to places of amusement, recreational areas, or athletic 
58.28 	events, and the making available of amusement devices, tanning facilities, reducing 
58.29 	salons, steam baths, Turkish baths, health clubs, and spas or athletic facilities;
58.30 	(2) lodging and related services by a hotel, rooming house, resort, campground, 
58.31 	motel, or trailer camp, including furnishing the guest of the facility with access to 
58.32 	telecommunication services, and the granting of any similar license to use real property in 
58.33 	a specific facility, other than the renting or leasing of it for a continuous period of 30 days 
58.34 	or more under an enforceable written agreement that may not be terminated without prior 
58.35 	notice and including accommodations intermediary services provided in connection with 
58.36 	other services provided under this clause;
59.1 	(3) nonresidential parking services, whether on a contractual, hourly, or other 
59.2 	periodic basis, except for parking at a meter;
59.3 	(4) the granting of membership in a club, association, or other organization if:
59.4 	(i) the club, association, or other organization makes available for the use of its 
59.5 	members sports and athletic facilities, without regard to whether a separate charge is 
59.6 	assessed for use of the facilities; and
59.7 	(ii) use of the sports and athletic facility is not made available to the general public 
59.8 	on the same basis as it is made available to members.
59.9 	Granting of membership means both onetime initiation fees and periodic membership 
59.10 	dues. Sports and athletic facilities include golf courses; tennis, racquetball, handball, and 
59.11 	squash courts; basketball and volleyball facilities; running tracks; exercise equipment; 
59.12 	swimming pools; and other similar athletic or sports facilities;
59.13 	(5) delivery of aggregate materials by a third party, excluding delivery of aggregate 
59.14 	material used in road construction; and delivery of concrete block by a third party if the 
59.15 	delivery would be subject to the sales tax if provided by the seller of the concrete block. 
59.16 	For purposes of this clause, "road construction" means construction of:
59.17 	(i) public roads;
59.18 	(ii) cartways; and
59.19 	(iii) private roads in townships located outside of the seven-county metropolitan area 
59.20 	up to the point of the emergency response location sign; and
59.21 	(6) services as provided in this clause:
59.22 	(i) laundry and dry cleaning services including cleaning, pressing, repairing, altering, 
59.23 	and storing clothes, linen services and supply, cleaning and blocking hats, and carpet, 
59.24 	drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not 
59.25 	include services provided by coin operated facilities operated by the customer;
59.26 	(ii) motor vehicle washing, waxing, and cleaning services, including services 
59.27 	provided by coin operated facilities operated by the customer, and rustproofing, 
59.28 	undercoating, and towing of motor vehicles;
59.29 	(iii) building and residential cleaning, maintenance, and disinfecting services and 
59.30 	pest control and exterminating services;
59.31 	(iv) detective, security, burglar, fire alarm, and armored car services; but not 
59.32 	including services performed within the jurisdiction they serve by off-duty licensed peace 
59.33 	officers as defined in section 626.84, subdivision 1, or services provided by a nonprofit 
59.34 	organization or any organization at the direction of a county for monitoring and electronic 
59.35 	surveillance of persons placed on in-home detention pursuant to court order or under the 
59.36 	direction of the Minnesota Department of Corrections;
60.1 	(v) pet grooming services;
60.2 	(vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting 
60.3 	and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor 
60.4 	plant care; tree, bush, shrub, and stump removal, except when performed as part of a land 
60.5 	clearing contract as defined in section 297A.68, subdivision 40; and tree trimming for 
60.6 	public utility lines. Services performed under a construction contract for the installation of 
60.7 	shrubbery, plants, sod, trees, bushes, and similar items are not taxable;
60.8 	(vii) massages, except when provided by a licensed health care facility or 
60.9 	professional or upon written referral from a licensed health care facility or professional for 
60.10 	treatment of illness, injury, or disease; and
60.11 	(viii) the furnishing of lodging, board, and care services for animals in kennels and 
60.12 	other similar arrangements, but excluding veterinary and horse boarding services.
60.13 	(h) A sale and a purchase includes the furnishing for a consideration of tangible 
60.14 	personal property or taxable services by the United States or any of its agencies or 
60.15 	instrumentalities, or the state of Minnesota, its agencies, instrumentalities, or political 
60.16 	subdivisions.
60.17 	(i) A sale and a purchase includes the furnishing for a consideration of 
60.18 	telecommunications services, ancillary services associated with telecommunication 
60.19 	services, and pay television services. Telecommunication services include, but are 
60.20 	not limited to, the following services, as defined in section 297A.669: air-to-ground 
60.21 	radiotelephone service, mobile telecommunication service, postpaid calling service, 
60.22 	prepaid calling service, prepaid wireless calling service, and private communication 
60.23 	services. The services in this paragraph are taxed to the extent allowed under federal law.
60.24 	(j) A sale and a purchase includes the furnishing for a consideration of installation if 
60.25 	the installation charges would be subject to the sales tax if the installation were provided 
60.26 	by the seller of the item being installed.
60.27 	(k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer 
60.28 	to a customer when (1) the vehicle is rented by the customer for a consideration, or (2) 
60.29 	the motor vehicle dealer is reimbursed pursuant to a service contract as defined in section 
60.30 	59B.02, subdivision 11.
60.31 	(l) A sale and a purchase includes furnishing for a consideration of specified digital 
60.32 	products or other digital products or granting the right for a consideration to use specified 
60.33 	digital products or other digital products on a temporary or permanent basis and regardless 
60.34 	of whether the purchaser is required to make continued payments for such right. Wherever 
60.35 	the term "tangible personal property" is used in this chapter, other than in subdivisions 10 
61.1 	and 38, the provisions also apply to specified digital products, or other digital products, 
61.2 	unless specifically provided otherwise or the context indicates otherwise.
61.3 	(m) A sale and purchase includes the furnishing for consideration of the following 
61.4 	services:
61.5 	(1) repairing and maintaining electronic and precision equipment, which service can 
61.6 	be deducted as a business expense under the Internal Revenue Code. This includes, but 
61.7 	is not limited to, repair or maintenance of electronic devices, computers and computer 
61.8 	peripherals, monitors, computer terminals, storage devices, and CD-ROM drives; other 
61.9 	office equipment such as photocopying machines, printers, and facsimile machines; 
61.10 	televisions, stereos, sound systems, video or digital recorders and players; two-way radios 
61.11 	and other communications equipment; radar and sonar equipment, scientific instruments, 
61.12 	microscopes, and medical equipment;
61.13 	(2) repairing and maintaining commercial and industrial machinery and equipment. 
61.14 	For purposes of this subdivision, the following items are not commercial or industrial 
61.15 	machinery and equipment: (i) motor vehicles; (ii) furniture and fixtures; (iii) ships; (iv) 
61.16 	railroad stock; and (v) aircraft; and
61.17 	(3) warehousing or storage services for tangible personal property, excluding:
61.18 	(i) agricultural products;
61.19 	(ii) refrigerated storage;
61.20 	(iii) electronic data; and
61.21 	(iv) self-storage services and storage of motor vehicles, recreational vehicles, and 
61.22 	boats, not eligible to be deducted as a business expense under the Internal Revenue Code.

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

61.24 	Sec. 73. Minnesota Statutes 2013 Supplement, section 297A.68, subdivision 5, is 
61.25 	amended to read:
61.26 		Subd. 5.Capital equipment. (a) Capital equipment is exempt.
61.27 	"Capital equipment" means machinery and equipment purchased or leased, and used 
61.28 	in this state by the purchaser or lessee primarily for manufacturing, fabricating, mining, 
61.29 	or refining tangible personal property to be sold ultimately at retail if the machinery and 
61.30 	equipment are essential to the integrated production process of manufacturing, fabricating, 
61.31 	mining, or refining. Capital equipment also includes machinery and equipment 
61.32 	used primarily to electronically transmit results retrieved by a customer of an online 
61.33 	computerized data retrieval system.
61.34 	(b) Capital equipment includes, but is not limited to:
62.1 	(1) machinery and equipment used to operate, control, or regulate the production 
62.2 	equipment;
62.3 	(2) machinery and equipment used for research and development, design, quality 
62.4 	control, and testing activities;
62.5 	(3) environmental control devices that are used to maintain conditions such as 
62.6 	temperature, humidity, light, or air pressure when those conditions are essential to and are 
62.7 	part of the production process;
62.8 	(4) materials and supplies used to construct and install machinery or equipment;
62.9 	(5) repair and replacement parts, including accessories, whether purchased as spare 
62.10 	parts, repair parts, or as upgrades or modifications to machinery or equipment;
62.11 	(6) materials used for foundations that support machinery or equipment;
62.12 	(7) materials used to construct and install special purpose buildings used in the 
62.13 	production process;
62.14 	(8) ready-mixed concrete equipment in which the ready-mixed concrete is mixed 
62.15 	as part of the delivery process regardless if mounted on a chassis, repair parts for 
62.16 	ready-mixed concrete trucks, and leases of ready-mixed concrete trucks; and
62.17 	(9) machinery or equipment used for research, development, design, or production 
62.18 	of computer software.
62.19 	(c) Capital equipment does not include the following:
62.20 	(1) motor vehicles taxed under chapter 297B;
62.21 	(2) machinery or equipment used to receive or store raw materials;
62.22 	(3) building materials, except for materials included in paragraph (b), clauses (6) 
62.23 	and (7);
62.24 	(4) machinery or equipment used for nonproduction purposes, including, but not 
62.25 	limited to, the following: plant security, fire prevention, first aid, and hospital stations; 
62.26 	support operations or administration; pollution control; and plant cleaning, disposal of 
62.27 	scrap and waste, plant communications, space heating, cooling, lighting, or safety;
62.28 	(5) farm machinery and aquaculture production equipment as defined by section 
62.29 	297A.61, subdivisions 12 and 13;
62.30 	(6) machinery or equipment purchased and installed by a contractor as part of an 
62.31 	improvement to real property;
62.32 	(7) machinery and equipment used by restaurants in the furnishing, preparing, or 
62.33 	serving of prepared foods as defined in section 297A.61, subdivision 31;
62.34 	(8) machinery and equipment used to furnish the services listed in section 297A.61, 
62.35 	subdivision 3, paragraph (g), clause (6), items (i) to (vi) and (viii);
63.1 	(9) machinery or equipment used in the transportation, transmission, or distribution 
63.2 	of petroleum, liquefied gas, natural gas, water, or steam, in, by, or through pipes, lines, 
63.3 	tanks, mains, or other means of transporting those products. This clause does not apply to 
63.4 	machinery or equipment used to blend petroleum or biodiesel fuel as defined in section 
63.5 	239.77; or
63.6 	(10) any other item that is not essential to the integrated process of manufacturing, 
63.7 	fabricating, mining, or refining.
63.8 	(d) For purposes of this subdivision:
63.9 	(1) "Equipment" means independent devices or tools separate from machinery but 
63.10 	essential to an integrated production process, including computers and computer software, 
63.11 	used in operating, controlling, or regulating machinery and equipment; and any subunit or 
63.12 	assembly comprising a component of any machinery or accessory or attachment parts of 
63.13 	machinery, such as tools, dies, jigs, patterns, and molds.
63.14 	(2) "Fabricating" means to make, build, create, produce, or assemble components or 
63.15 	property to work in a new or different manner.
63.16 	(3) "Integrated production process" means a process or series of operations through 
63.17 	which tangible personal property is manufactured, fabricated, mined, or refined. For 
63.18 	purposes of this clause, (i) manufacturing begins with the removal of raw materials 
63.19 	from inventory and ends when the last process prior to loading for shipment has been 
63.20 	completed; (ii) fabricating begins with the removal from storage or inventory of the 
63.21 	property to be assembled, processed, altered, or modified and ends with the creation 
63.22 	or production of the new or changed product; (iii) mining begins with the removal of 
63.23 	overburden from the site of the ores, minerals, stone, peat deposit, or surface materials and 
63.24 	ends when the last process before stockpiling is completed; and (iv) refining begins with 
63.25 	the removal from inventory or storage of a natural resource and ends with the conversion 
63.26 	of the item to its completed form.
63.27 	(4) "Machinery" means mechanical, electronic, or electrical devices, including 
63.28 	computers and computer software, that are purchased or constructed to be used for the 
63.29 	activities set forth in paragraph (a), beginning with the removal of raw materials from 
63.30 	inventory through completion of the product, including packaging of the product.
63.31 	(5) "Machinery and equipment used for pollution control" means machinery and 
63.32 	equipment used solely to eliminate, prevent, or reduce pollution resulting from an activity 
63.33 	described in paragraph (a).
63.34 	(6) "Manufacturing" means an operation or series of operations where raw materials 
63.35 	are changed in form, composition, or condition by machinery and equipment and which 
63.36 	results in the production of a new article of tangible personal property. For purposes of 
64.1 	this subdivision, "manufacturing" includes the generation of electricity or steam to be 
64.2 	sold at retail.
64.3 	(7) "Mining" means the extraction of minerals, ores, stone, or peat.
64.4 	(8) "Online data retrieval system" means a system whose cumulation of information 
64.5 	is equally available and accessible to all its customers.
64.6 	(9) "Primarily" means machinery and equipment used 50 percent or more of the time 
64.7 	in an activity described in paragraph (a).
64.8 	(10) "Refining" means the process of converting a natural resource to an intermediate 
64.9 	or finished product, including the treatment of water to be sold at retail.
64.10 	(11) This subdivision does not apply to telecommunications equipment as 
64.11 	provided in subdivision 35, and does not apply to wire, cable, fiber, poles, or conduit 
64.12 	for telecommunications services.

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

64.14 	Sec. 74. Minnesota Statutes 2012, section 297A.70, subdivision 10, is amended to read:
64.15 		Subd. 10.Nonprofit tickets or admissions. (a) Tickets or admissions to an event 
64.16 	are exempt if all the gross receipts are recorded as such, in accordance with generally 
64.17 	accepted accounting principles, on the books of one or more organizations whose primary 
64.18 	mission is to provide an opportunity for citizens of the state to participate in the creation, 
64.19 	performance, or appreciation of the arts, and provided that each organization is:
64.20 	(1) an organization described in section 501(c)(3) of the Internal Revenue Code 
64.21 	in which voluntary contributions make up at least the following five percent of the 
64.22 	organization's annual revenue in its most recently completed 12-month fiscal year, or in 
64.23 	the current year if the organization has not completed a 12-month fiscal year:;
64.24 	(i) for sales made after July 31, 2001, and before July 1, 2002, for the organization's 
64.25 	fiscal year completed in calendar year 2000, three percent;
64.26 	(ii) for sales made on or after July 1, 2002, and on or before June 30, 2003, for the 
64.27 	organization's fiscal year completed in calendar year 2001, three percent;
64.28 	(iii) for sales made on or after July 1, 2003, and on or before June 30, 2004, for the 
64.29 	organization's fiscal year completed in calendar year 2002, four percent; and
64.30 	(iv) for sales made in each 12-month period, beginning on July 1, 2004, and each 
64.31 	subsequent year, for the organization's fiscal year completed in the preceding calendar 
64.32 	year, five percent;
64.33 	(2) a municipal board that promotes cultural and arts activities; or
65.1 	(3) the University of Minnesota, a state college and university, or a private nonprofit 
65.2 	college or university provided that the event is held at a facility owned by the educational 
65.3 	institution holding the event.
65.4 	The exemption only applies if the entire proceeds, after reasonable expenses, are used 
65.5 	solely to provide opportunities for citizens of the state to participate in the creation, 
65.6 	performance, or appreciation of the arts.
65.7 	(b) Tickets or admissions to the premises of the Minnesota Zoological Garden are 
65.8 	exempt, provided that the exemption under this paragraph does not apply to tickets or 
65.9 	admissions to performances or events held on the premises unless the performance or 
65.10 	event is sponsored and conducted exclusively by the Minnesota Zoological Board or 
65.11 	employees of the Minnesota Zoological Garden.

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

65.13 	Sec. 75. Minnesota Statutes 2013 Supplement, section 297A.75, subdivision 1, is 
65.14 	amended to read:
65.15 		Subdivision 1.Tax collected. The tax on the gross receipts from the sale of the 
65.16 	following exempt items must be imposed and collected as if the sale were taxable and the 
65.17 	rate under section 297A.62, subdivision 1, applied. The exempt items include:
65.18 	(1) building materials for an agricultural processing facility exempt under section 
65.19 	297A.71, subdivision 13;
65.20 	(2) building materials for mineral production facilities exempt under section 
65.21 	297A.71, subdivision 14;
65.22 	(3) building materials for correctional facilities under section 297A.71, subdivision 3;
65.23 	(4) building materials used in a residence for disabled veterans exempt under section 
65.24 	297A.71, subdivision 11;
65.25 	(5) elevators and building materials exempt under section 297A.71, subdivision 12;
65.26 	(6) building materials for the Long Lake Conservation Center exempt under section 
65.27 	297A.71, subdivision 17;
65.28 	(7) (6) materials and supplies for qualified low-income housing under section 
65.29 	297A.71, subdivision 23;
65.30 	(8) (7) materials, supplies, and equipment for municipal electric utility facilities 
65.31 	under section 297A.71, subdivision 35;
65.32 	(9) (8) equipment and materials used for the generation, transmission, and 
65.33 	distribution of electrical energy and an aerial camera package exempt under section 
65.34 	297A.68, subdivision 37;
66.1 	(10) (9) commuter rail vehicle and repair parts under section 297A.70, subdivision 
66.2 	3, paragraph (a), clause (10);
66.3 	(11) (10) materials, supplies, and equipment for construction or improvement of 
66.4 	projects and facilities under section 297A.71, subdivision 40;
66.5 	(12) (11) materials, supplies, and equipment for construction or improvement of a 
66.6 	meat processing facility exempt under section 297A.71, subdivision 41;
66.7 	(13) (12) materials, supplies, and equipment for construction, improvement, or 
66.8 	expansion of:
66.9 	(i) an aerospace defense manufacturing facility exempt under section 297A.71, 
66.10 	subdivision 42;
66.11 	(ii) a biopharmaceutical manufacturing facility exempt under section 297A.71, 
66.12 	subdivision 45;
66.13 	(iii) a research and development facility exempt under section 297A.71, subdivision 
66.14 	46; and
66.15 	(iv) an industrial measurement manufacturing and controls facility exempt under 
66.16 	section 297A.71, subdivision 47;
66.17 	(14) (13) enterprise information technology equipment and computer software for 
66.18 	use in a qualified data center exempt under section 297A.68, subdivision 42;
66.19 	(15) (14) materials, supplies, and equipment for qualifying capital projects under 
66.20 	section 297A.71, subdivision 44;
66.21 	(16) (15) items purchased for use in providing critical access dental services exempt 
66.22 	under section 297A.70, subdivision 7, paragraph (c); and
66.23 	(17) (16) items and services purchased under a business subsidy agreement for use or 
66.24 	consumption primarily in greater Minnesota exempt under section 297A.68, subdivision 44.

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

66.26 	Sec. 76. Minnesota Statutes 2013 Supplement, section 297A.75, subdivision 2, is 
66.27 	amended to read:
66.28 		Subd. 2.Refund; eligible persons. Upon application on forms prescribed by the 
66.29 	commissioner, a refund equal to the tax paid on the gross receipts of the exempt items 
66.30 	must be paid to the applicant. Only the following persons may apply for the refund:
66.31 	(1) for subdivision 1, clauses (1), (2), and (16) (15), the applicant must be the 
66.32 	purchaser;
66.33 	(2) for subdivision 1, clauses clause (3) and (6), the applicant must be the 
66.34 	governmental subdivision;
67.1 	(3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits 
67.2 	provided in United States Code, title 38, chapter 21;
67.3 	(4) for subdivision 1, clause (5), the applicant must be the owner of the homestead 
67.4 	property;
67.5 	(5) for subdivision 1, clause (7) (6), the owner of the qualified low-income housing 
67.6 	project;
67.7 	(6) for subdivision 1, clause (8) (7), the applicant must be a municipal electric utility 
67.8 	or a joint venture of municipal electric utilities;
67.9 	(7) for subdivision 1, clauses (9), (12), (13), (14) (8), (11), (12), (13), and (17) (16), 
67.10 	the owner of the qualifying business; and
67.11 	(8) for subdivision 1, clauses (9), (10), (11), and (15) (14), the applicant must be the 
67.12 	governmental entity that owns or contracts for the project or facility.

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

67.14 	Sec. 77. Minnesota Statutes 2013 Supplement, section 297A.75, subdivision 3, is 
67.15 	amended to read:
67.16 		Subd. 3.Application. (a) The application must include sufficient information 
67.17 	to permit the commissioner to verify the tax paid. If the tax was paid by a contractor, 
67.18 	subcontractor, or builder, under subdivision 1, clauses (3) to (15) (13), or (17) (15), the 
67.19 	contractor, subcontractor, or builder must furnish to the refund applicant a statement 
67.20 	including the cost of the exempt items and the taxes paid on the items unless otherwise 
67.21 	specifically provided by this subdivision. The provisions of sections 289A.40 and 
67.22 	289A.50 apply to refunds under this section.
67.23 	(b) An applicant may not file more than two applications per calendar year for 
67.24 	refunds for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.
67.25 	(c) Total refunds for purchases of items in section 297A.71, subdivision 40, must not 
67.26 	exceed $5,000,000 in fiscal years 2010 and 2011. Applications for refunds for purchases 
67.27 	of items in sections 297A.70, subdivision 3, paragraph (a), clause (11), and 297A.71, 
67.28 	subdivision 40, must not be filed until after June 30, 2009.

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

67.30 	Sec. 78. Minnesota Statutes 2012, section 297A.94, is amended to read:
67.31 	297A.94 DEPOSIT OF REVENUES.
68.1 	(a) Except as provided in this section, the commissioner shall deposit the revenues, 
68.2 	including interest and penalties, derived from the taxes imposed by this chapter in the state 
68.3 	treasury and credit them to the general fund.
68.4 	(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic 
68.5 	account in the special revenue fund if:
68.6 	(1) the taxes are derived from sales and use of property and services purchased for 
68.7 	the construction and operation of an agricultural resource project; and
68.8 	(2) the purchase was made on or after the date on which a conditional commitment 
68.9 	was made for a loan guaranty for the project under section 41A.04, subdivision 3.
68.10 	The commissioner of management and budget shall certify to the commissioner the date 
68.11 	on which the project received the conditional commitment. The amount deposited in 
68.12 	the loan guaranty account must be reduced by any refunds and by the costs incurred by 
68.13 	the Department of Revenue to administer and enforce the assessment and collection of 
68.14 	the taxes.
68.15 	(c) The commissioner shall deposit the revenues, including interest and penalties, 
68.16 	derived from the taxes imposed on sales and purchases included in section 297A.61, 
68.17 	subdivision 3, paragraph (g), clauses (1) and (4), in the state treasury, and credit them 
68.18 	as follows:
68.19 	(1) first to the general obligation special tax bond debt service account in each fiscal 
68.20 	year the amount required by section 16A.661, subdivision 3, paragraph (b); and
68.21 	(2) after the requirements of clause (1) have been met, the balance to the general fund.
68.22 	(d) The commissioner shall deposit the revenues, including interest and penalties, 
68.23 	collected under section 297A.64, subdivision 5, in the state treasury and credit them to the 
68.24 	general fund. By July 15 of each year the commissioner shall transfer to the highway user 
68.25 	tax distribution fund an amount equal to the excess fees collected under section 297A.64, 
68.26 	subdivision 5, for the previous calendar year.
68.27 	(e) For fiscal year 2001, 97 percent; for fiscal years 2002 and 2003, 87 percent; and 
68.28 	For fiscal year 2004 and thereafter,72.43 percent of the revenues, including interest and 
68.29 	penalties, transmitted to the commissioner under section 297A.65, must be deposited by 
68.30 	the commissioner in the state treasury as follows:
68.31 	(1) 50 percent of the receipts must be deposited in the heritage enhancement account 
68.32 	in the game and fish fund, and may be spent only on activities that improve, enhance, or 
68.33 	protect fish and wildlife resources, including conservation, restoration, and enhancement 
68.34 	of land, water, and other natural resources of the state;
68.35 	(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and 
68.36 	may be spent only for state parks and trails;
69.1 	(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and 
69.2 	may be spent only on metropolitan park and trail grants;
69.3 	(4) three percent of the receipts must be deposited in the natural resources fund, and 
69.4 	may be spent only on local trail grants; and
69.5 	(5) two percent of the receipts must be deposited in the natural resources fund, 
69.6 	and may be spent only for the Minnesota Zoological Garden, the Como Park Zoo and 
69.7 	Conservatory, and the Duluth Zoo.
69.8 	(f) The revenue dedicated under paragraph (e) may not be used as a substitute 
69.9 	for traditional sources of funding for the purposes specified, but the dedicated revenue 
69.10 	shall supplement traditional sources of funding for those purposes. Land acquired with 
69.11 	money deposited in the game and fish fund under paragraph (e) must be open to public 
69.12 	hunting and fishing during the open season, except that in aquatic management areas or 
69.13 	on lands where angling easements have been acquired, fishing may be prohibited during 
69.14 	certain times of the year and hunting may be prohibited. At least 87 percent of the money 
69.15 	deposited in the game and fish fund for improvement, enhancement, or protection of fish 
69.16 	and wildlife resources under paragraph (e) must be allocated for field operations.
69.17 	(g) The revenues deposited under paragraphs (a) to (f) do not include the revenues, 
69.18 	including interest and penalties, generated by the sales tax imposed under section 
69.19 	297A.62, subdivision 1a, which must be deposited as provided under the Minnesota 
69.20 	Constitution, article XI, section 15.

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

69.22 	Sec. 79. Minnesota Statutes 2012, section 297B.09, is amended to read:
69.23 	297B.09 ALLOCATION OF REVENUE.
69.24 		Subdivision 1.Deposit of revenues. (a) Money collected and received under this 
69.25 	chapter must be deposited as provided in this subdivision.
69.26 	(b) From July 1, 2007, through June 30, 2008, 38.25 percent of the money collected 
69.27 	and received must be deposited in the highway user tax distribution fund, 24 percent must 
69.28 	be deposited in the metropolitan area transit account under section 16A.88, and 1.5 percent 
69.29 	must be deposited in the greater Minnesota transit account under section 16A.88. The 
69.30 	remaining money must be deposited in the general fund.
69.31 	(c) From July 1, 2008, through June 30, 2009, 44.25 percent of the money collected 
69.32 	and received must be deposited in the highway user tax distribution fund, 27.75 percent 
69.33 	must be deposited in the metropolitan area transit account under section 16A.88, 1.75 
70.1 	percent must be deposited in the greater Minnesota transit account under section 16A.88, 
70.2 	and the remaining money must be deposited in the general fund.
70.3 	(d) From July 1, 2009, through June 30, 2010, 47.5 percent of the money collected 
70.4 	and received must be deposited in the highway user tax distribution fund, 30 percent 
70.5 	must be deposited in the metropolitan area transit account under section 16A.88, 3.5 
70.6 	percent must be deposited in the greater Minnesota transit account under section 16A.88, 
70.7 	and 16.25 percent must be deposited in the general fund. The remaining amount must 
70.8 	be deposited as follows:
70.9 	(1) 1.5 percent in the metropolitan area transit account, except that any amount in 
70.10 	excess of $6,000,000 must be deposited in the highway user tax distribution fund; and
70.11 	(2) 1.25 percent in the greater Minnesota transit account, except that any amount in 
70.12 	excess of $5,000,000 must be deposited in the highway user tax distribution fund.
70.13 	(e) From July 1, 2010, through June 30, 2011, 54.5 percent of the money collected 
70.14 	and received must be deposited in the highway user tax distribution fund, 33.75 percent 
70.15 	must be deposited in the metropolitan area transit account under section 16A.88, 3.75 
70.16 	percent must be deposited in the greater Minnesota transit account under section 16A.88, 
70.17 	and 6.25 percent must be deposited in the general fund. The remaining amount must 
70.18 	be deposited as follows:
70.19 	(1) 1.5 percent in the metropolitan area transit account, except that any amount in 
70.20 	excess of $6,750,000 must be deposited in the highway user tax distribution fund; and
70.21 	(2) 0.25 percent in the greater Minnesota transit account, except that any amount in 
70.22 	excess of $1,250,000 must be deposited in the highway user tax distribution fund.
70.23 	(f) On and after July 1, 2011,(b) 60 percent of the money collected and received 
70.24 	must be deposited in the highway user tax distribution fund, 36 percent must be deposited 
70.25 	in the metropolitan area transit account under section 16A.88, and four percent must be 
70.26 	deposited in the greater Minnesota transit account under section 16A.88.
70.27 	(g) (c) It is the intent of the legislature that the allocations under paragraph (f) (b)
70.28 	 remain unchanged for fiscal year 2012 and all subsequent fiscal years.

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

70.30 	Sec. 80. Minnesota Statutes 2012, section 297F.03, subdivision 2, is amended to read:
70.31 		Subd. 2.Form of application. Every application for a cigarette or tobacco products 
70.32 	license shall be made on a form prescribed by the commissioner and shall state the name 
70.33 	and address of the applicant; if the applicant is a firm, partnership, or association, the name 
70.34 	and address of each of its members; if the applicant is a corporation, the name and address 
70.35 	of each of its officers; the address of its principal place of business; the place where the 
71.1 	business to be licensed is to be conducted; and any other information the commissioner 
71.2 	may require for the administration of this chapter.

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

71.4 	Sec. 81. Minnesota Statutes 2012, section 297I.05, subdivision 14, is amended to read:
71.5 		Subd. 14.Life insurance. A tax is imposed on life insurance. The rate of tax equals 
71.6 	a percentage 1.5 percent of gross premiums less return premiums on all direct business 
71.7 	received by the insurer or agents of the insurer in Minnesota for life insurance, in cash or 
71.8 	otherwise, during the year. For premiums received after December 31, 2005, but before 
71.9 	January 1, 2007, the rate of tax is 1.875 percent. For premiums received after December 
71.10 	31, 2006, but before January 1, 2008, the rate of tax is 1.75 percent. For premiums 
71.11 	received after December 31, 2007, but before January 1, 2009, the rate of tax is 1.625 
71.12 	percent. For premiums received after December 31, 2008, the rate of tax is 1.5 percent.

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

71.14 	Sec. 82. Minnesota Statutes 2012, section 412.131, is amended to read:
71.15 	412.131 ASSESSOR; DUTIES, COMPENSATION.
71.16 	The city assessor, if there is one, shall assess and return as provided by law all 
71.17 	property taxable within the city, if a separate assessment district, and the assessor of the 
71.18 	town within which the city lies shall not include in the return any property taxable in the 
71.19 	city. Any assessor may appoint a deputy assessor as provided in section 273.06. The 
71.20 	assessor may be compensated on a full-time or part-time basis at the option of the council 
71.21 	but the compensation shall be not less than $100 in any one year, if fixed on an annual 
71.22 	basis, or not more than $20 per day, if fixed on a per diem basis. If the compensation is 
71.23 	not fixed by the council the assessor shall be entitled to compensation at the rate of $20 
71.24 	per day for each days service necessarily rendered, and mileage at the rate paid other city 
71.25 	officers for each mile necessarily traveled in going to and returning from the county seat of 
71.26 	the county to attend any meeting of the assessors of the county legally called by the county 
71.27 	auditor, and also for each mile necessarily traveled in making the return of assessment 
71.28 	to the proper county officer and in attending sectional meetings called by the county 
71.29 	assessor, except when mileage is paid by the county. In addition to other compensation, 
71.30 	the council may allow the assessor mileage at the same rate per mile as paid other city 
71.31 	officers for each mile necessarily traveled in assessment work.

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

72.1 	Sec. 83. Minnesota Statutes 2013 Supplement, section 423A.022, subdivision 3, 
72.2 	is amended to read:
72.3 		Subd. 3.Reporting; definitions. (a) On or before September 1, annually, the 
72.4 	executive director of the Public Employees Retirement Association shall report to the 
72.5 	commissioner of revenue the following:
72.6 	(1) the municipalities which employ firefighters with retirement coverage by the 
72.7 	public employees police and fire retirement plan;
72.8 	(2) the number of firefighters with public employees police and fire retirement plan 
72.9 	coverage employed by each municipality;
72.10 	(3) (2) the fire departments covered by the voluntary statewide lump-sum volunteer 
72.11 	firefighter retirement plan; and
72.12 	(4) (3) any other information requested by the commissioner to administer the police 
72.13 	and firefighter retirement supplemental state aid program.
72.14 	(b) For this subdivision, (i) the number of firefighters employed by a municipality 
72.15 	who have public employees police and fire retirement plan coverage means the number 
72.16 	of firefighters with public employees police and fire retirement plan coverage that were 
72.17 	employed by the municipality for not less than 30 hours per week for a minimum of six 
72.18 	months prior to December 31 preceding the date of the payment under this section and, if 
72.19 	the person was employed for less than the full year, prorated to the number of full months 
72.20 	employed; and (ii) the number of active police officers certified for police state aid receipt 
72.21 	under section 69.011, subdivisions 2 and 2b, means, for each municipality, the number of 
72.22 	police officers meeting the definition of peace officer in section 69.011, subdivision 1, 
72.23 	counted as provided and limited by section 69.011, subdivisions 2 and 2b.

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

72.25 	Sec. 84. Minnesota Statutes 2012, section 469.176, subdivision 1b, is amended to read:
72.26 		Subd. 1b.Duration limits; terms. (a) No tax increment shall in any event be 
72.27 	paid to the authority:
72.28 	(1) after 15 years after receipt by the authority of the first increment for a renewal 
72.29 	and renovation district;
72.30 	(2) after 20 years after receipt by the authority of the first increment for a soils 
72.31 	condition district;
72.32 	(3) after eight years after receipt by the authority of the first increment for an 
72.33 	economic development district;
72.34 	(4) for a housing district, a compact development district, or a redevelopment 
72.35 	district, after 25 years from the date of receipt by the authority of the first increment.
73.1 	(b) For purposes of determining a duration limit under this subdivision or subdivision 
73.2 	1e that is based on the receipt of an increment, any increments from taxes payable in the year 
73.3 	in which the district terminates shall be paid to the authority. This paragraph does not affect 
73.4 	a duration limit calculated from the date of approval of the tax increment financing plan or 
73.5 	based on the recovery of costs or to a duration limit under subdivision 1c. This paragraph 
73.6 	does not supersede the restrictions on payment of delinquent taxes in subdivision 1f.
73.7 	(c) An action by the authority to waive or decline to accept an increment has no 
73.8 	effect for purposes of computing a duration limit based on the receipt of increment under 
73.9 	this subdivision or any other provision of law. The authority is deemed to have received an 
73.10 	increment for any year in which it waived or declined to accept an increment, regardless 
73.11 	of whether the increment was paid to the authority.
73.12 	(d) Receipt by a hazardous substance subdistrict of an increment as a result of a 
73.13 	reduction in original net tax capacity under section 469.174, subdivision 7, paragraph 
73.14 	(b), does not constitute receipt of increment by the overlying district for the purpose of 
73.15 	calculating the duration limit under this section.

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

73.17 	Sec. 85. Minnesota Statutes 2012, section 469.176, subdivision 3, is amended to read:
73.18 		Subd. 3.Limitation on administrative expenses. (a) For districts for which 
73.19 	certification was requested before August 1, 1979, or after June 30, 1982 and before
73.20 	 August 1, 2001, no tax increment shall be used to pay any administrative expenses for 
73.21 	a project which exceed ten percent of the total estimated tax increment expenditures 
73.22 	authorized by the tax increment financing plan or the total tax increment expenditures 
73.23 	for the project, whichever is less.
73.24 	(b) For districts for which certification was requested after July 31, 1979, and before 
73.25 	July 1, 1982, no tax increment shall be used to pay administrative expenses, as defined in 
73.26 	Minnesota Statutes 1980, section 273.73, for a district which exceeds five percent of the 
73.27 	total tax increment expenditures authorized by the tax increment financing plan or the total 
73.28 	estimated tax increment expenditures for the district, whichever is less.
73.29 	(c) (b) For districts for which certification was requested after July 31, 2001, no tax 
73.30 	increment may be used to pay any administrative expenses for a project which exceed 
73.31 	ten percent of total estimated tax increment expenditures authorized by the tax increment 
73.32 	financing plan or the total tax increments, as defined in section 469.174, subdivision 25, 
73.33 	clause (1), from the district, whichever is less.
73.34 	(d) (c) Increments used to pay the county's administrative expenses under 
73.35 	subdivision 4h are not subject to the percentage limits in this subdivision.

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

74.2 	Sec. 86. Minnesota Statutes 2013 Supplement, section 469.1763, subdivision 2, 
74.3 	is amended to read:
74.4 		Subd. 2.Expenditures outside district. (a) For each tax increment financing 
74.5 	district, an amount equal to at least 75 percent of the total revenue derived from tax 
74.6 	increments paid by properties in the district must be expended on activities in the district 
74.7 	or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities 
74.8 	in the district or to pay, or secure payment of, debt service on credit enhanced bonds. 
74.9 	For districts, other than redevelopment districts for which the request for certification 
74.10 	was made after June 30, 1995, the in-district percentage for purposes of the preceding 
74.11 	sentence is 80 percent. Not more than 25 percent of the total revenue derived from tax 
74.12 	increments paid by properties in the district may be expended, through a development fund 
74.13 	or otherwise, on activities outside of the district but within the defined geographic area of 
74.14 	the project except to pay, or secure payment of, debt service on credit enhanced bonds. 
74.15 	For districts, other than redevelopment districts for which the request for certification was 
74.16 	made after June 30, 1995, the pooling percentage for purposes of the preceding sentence is 
74.17 	20 percent. The revenue derived from tax increments for the district that are expended on 
74.18 	costs under section 469.176, subdivision 4h, paragraph (b), may be deducted first before 
74.19 	calculating the percentages that must be expended within and without the district.
74.20 	(b) In the case of a housing district, a housing project, as defined in section 469.174, 
74.21 	subdivision 11, is an activity in the district.
74.22 	(c) All administrative expenses are for activities outside of the district, except that 
74.23 	if the only expenses for activities outside of the district under this subdivision are for 
74.24 	the purposes described in paragraph (d), administrative expenses will be considered as 
74.25 	expenditures for activities in the district.
74.26 	(d) The authority may elect, in the tax increment financing plan for the district, 
74.27 	to increase by up to ten percentage points the permitted amount of expenditures for 
74.28 	activities located outside the geographic area of the district under paragraph (a). As 
74.29 	permitted by section 469.176, subdivision 4k, the expenditures, including the permitted 
74.30 	expenditures under paragraph (a), need not be made within the geographic area of the 
74.31 	project. Expenditures that meet the requirements of this paragraph are legally permitted 
74.32 	expenditures of the district, notwithstanding section 469.176, subdivisions 4b, 4c, and 4j. 
74.33 	To qualify for the increase under this paragraph, the expenditures must:
74.34 	(1) be used exclusively to assist housing that meets the requirement for a qualified 
74.35 	low-income building, as that term is used in section 42 of the Internal Revenue Code; and
75.1 	(2) not exceed the qualified basis of the housing, as defined under section 42(c) of 
75.2 	the Internal Revenue Code, less the amount of any credit allowed under section 42 of 
75.3 	the Internal Revenue Code; and
75.4 	(3) be used to:
75.5 	(i) acquire and prepare the site of the housing;
75.6 	(ii) acquire, construct, or rehabilitate the housing; or
75.7 	(iii) make public improvements directly related to the housing; or
75.8 	(4) be used to develop housing:
75.9 	(i) if the market value of the housing does not exceed the lesser of:
75.10 	(A) 150 percent of the average market value of single-family homes in that 
75.11 	municipality; or
75.12 	(B) $200,000 for municipalities located in the metropolitan area, as defined in 
75.13 	section 473.121, or $125,000 for all other municipalities; and
75.14 	(ii) if the expenditures are used to pay the cost of site acquisition, relocation, 
75.15 	demolition of existing structures, site preparation, and pollution abatement on one or 
75.16 	more parcels, if the parcel contains a residence containing one to four family dwelling 
75.17 	units that has been vacant for six or more months and is in foreclosure as defined in 
75.18 	section 325N.10, subdivision 7, but without regard to whether the residence is the owner's 
75.19 	principal residence, and only after the redemption period has expired.
75.20 	(e) For a district created within a biotechnology and health sciences industry zone 
75.21 	as defined in Minnesota Statutes 2012, section 469.330, subdivision 6, or for an existing 
75.22 	district located within such a zone, tax increment derived from such a district may be 
75.23 	expended outside of the district but within the zone only for expenditures required for the 
75.24 	construction of public infrastructure necessary to support the activities of the zone, land 
75.25 	acquisition, and other redevelopment costs as defined in section 469.176, subdivision 4j. 
75.26 	These expenditures are considered as expenditures for activities within the district. The 
75.27 	authority provided by this paragraph expires for expenditures made after the later of (1) 
75.28 	December 31, 2015, or (2) the end of the five-year period beginning on the date the district 
75.29 	was certified, provided that date was before January 1, 2016.
75.30 	(f) The authority under paragraph (d), clause (4), expires on December 31, 2016. 
75.31 	Increments may continue to be expended under this authority after that date, if they are 
75.32 	used to pay bonds or binding contracts that would qualify under subdivision 3, paragraph 
75.33 	(a), if December 31, 2016, is considered to be the last date of the five-year period after 
75.34 	certification under that provision.

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

76.1 	Sec. 87. Minnesota Statutes 2012, section 473.665, subdivision 5, is amended to read:
76.2 		Subd. 5.Tax levy; surplus; reduction. The corporation, upon issuing any bonds 
76.3 	under the provisions of this section, shall, before the issuance thereof, levy for each year, 
76.4 	until the principal and interest are paid in full, a direct annual tax on all the taxable property 
76.5 	of the cities in and for which the corporation has been created in an amount not less than 
76.6 	five percent in excess of the sum required to pay the principal and interest thereof, when 
76.7 	and as such principal and interest matures. After any of such bonds have been delivered to 
76.8 	purchasers, such tax shall be irrepealable until all such indebtedness is paid, and after the 
76.9 	issuance of such bonds no further action of the corporation shall be necessary to authorize 
76.10 	the extensions, assessments, and collection of such tax. The secretary of the corporation 
76.11 	shall forthwith furnish a certified copy of such levy to the county auditor or county 
76.12 	auditors of the county or counties in which the cities in and for which the corporation has 
76.13 	been created are located, together with full information regarding the bonds for which the 
76.14 	tax is levied, and such county auditor or such county auditors, as the case may be, shall 
76.15 	enter the same in the register provided for in section 475.62, or a similar register, and shall 
76.16 	extend and assess the tax so levied. If both cities are located wholly within one county, the 
76.17 	county auditor thereof shall annually extend and assess the amount of the tax so levied. If 
76.18 	the cities are located in different counties, the county auditor of each such county shall 
76.19 	annually extend and assess such portion of the tax levied as the net tax capacity of the 
76.20 	taxable property, not including moneys and credits, located wholly within the city in such 
76.21 	county bears to the total net tax capacity of the taxable property, not including moneys and 
76.22 	credits, within both cities. Any surplus resulting from the excess levy herein provided 
76.23 	for shall be transferred to a sinking fund after the principal and interest for which the tax 
76.24 	was levied and collected has been paid; provided, that the corporation may, on or before 
76.25 	October 15 in any year, by appropriate action, cause its secretary to certify to the county 
76.26 	auditor, or auditors, the amount on hand and available in its treasury from earnings, or 
76.27 	otherwise, including the amount in the sinking fund, which it will use to pay principal or 
76.28 	interest or both on each specified issue of its bonds, and the county auditor or auditors 
76.29 	shall reduce the levy for that year, herein provided for by that amount. The amount of 
76.30 	funds so certified shall be set aside by the corporation, and be used for no other purpose 
76.31 	than for the payment of the principal and interest of the bonds. All taxes hereunder shall 
76.32 	be collected and remitted to the corporation by the county treasurer or county treasurers, 
76.33 	in accordance with the provisions of law governing the collection of other taxes, and shall 
76.34 	be used solely for the payment of the bonds where due.

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

77.1 	Sec. 88. Minnesota Statutes 2012, section 477A.0124, subdivision 5, is amended to 
77.2 	read:
77.3 		Subd. 5.County transition aid. (a) For 2009 and each year thereafter, A county is 
77.4 	eligible to receive the transition aid it received in 2007.
77.5 	(b) In 2009 only, a county with (1) a 2006 population less than 30,000, and (2) 
77.6 	an average Part I crimes per capita greater than 3.9 percent based on factors used in 
77.7 	determining county program aid payable in 2008, shall receive $100,000.

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

77.9 	Sec. 89. Minnesota Statutes 2012, section 477A.014, subdivision 1, is amended to read:
77.10 		Subdivision 1.Calculations and payments. (a) The commissioner of revenue shall 
77.11 	make all necessary calculations and make payments pursuant to sections 477A.013 and 
77.12 	477A.03 directly to the affected taxing authorities annually. In addition, the commissioner 
77.13 	shall notify the authorities of their aid amounts, as well as the computational factors used 
77.14 	in making the calculations for their authority, and those statewide total figures that are 
77.15 	pertinent, before August 1 of the year preceding the aid distribution year.
77.16 	(b) For the purposes of this subdivision, aid is determined for a city or town based 
77.17 	on its city or town status as of June 30 of the year preceding the aid distribution year. If 
77.18 	the effective date for a municipal incorporation, consolidation, annexation, detachment, 
77.19 	dissolution, or township organization is on or before June 30 of the year preceding 
77.20 	the aid distribution year, such change in boundaries or form of government shall be 
77.21 	recognized for aid determinations for the aid distribution year. If the effective date for a 
77.22 	municipal incorporation, consolidation, annexation, detachment, dissolution, or township 
77.23 	organization is after June 30 of the year preceding the aid distribution year, such change in 
77.24 	boundaries or form of government shall not be recognized for aid determinations until 
77.25 	the following year.
77.26 	(c) Changes in boundaries or form of government will only be recognized for the 
77.27 	purposes of this subdivision, to the extent that: (1) changes in market values are included 
77.28 	in market values reported by assessors to the commissioner, and changes in population,
77.29 	 and household size, and the road accidents factor are included in their respective 
77.30 	certifications to the commissioner as referenced in section 477A.011, or (2) an annexation 
77.31 	information report as provided in paragraph (d) is received by the commissioner on 
77.32 	or before July 15 of the aid calculation year. Revisions to estimates or data for use in 
77.33 	recognizing changes in boundaries or form of government are not effective for purposes 
77.34 	of this subdivision unless received by the commissioner on or before July 15 of the aid 
77.35 	calculation year. Clerical errors in the certification or use of estimates and data established 
78.1 	as of July 15 in the aid calculation year are subject to correction within the time periods 
78.2 	allowed under subdivision 3.
78.3 	(d) In the case of an annexation, an annexation information report may be completed 
78.4 	by the annexing jurisdiction and submitted to the commissioner for purposes of this 
78.5 	subdivision if the net tax capacity of annexed area for the assessment year preceding the 
78.6 	effective date of the annexation exceeds five percent of the city's net tax capacity for the 
78.7 	same year. The form and contents of the annexation information report shall be prescribed 
78.8 	by the commissioner. The commissioner shall change the net tax capacity, the population, 
78.9 	the population decline, the commercial industrial percentage, and the transformed 
78.10 	population for the annexing jurisdiction only if the annexation information report provides 
78.11 	data the commissioner determines to be reliable for all of these factors used to compute city 
78.12 	revenue need for the annexing jurisdiction. The commissioner shall adjust the pre-1940 
78.13 	housing percentage, the road accidents factor, and household size only if the entire area of 
78.14 	an existing city or town is annexed or consolidated and only if reliable data is available for 
78.15 	all of these factors used to compute city revenue need for the annexing jurisdiction.

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

78.17 	Sec. 90. Minnesota Statutes 2012, section 611.27, subdivision 13, is amended to read:
78.18 		Subd. 13.Public defense services; correctional facility inmates. All billings 
78.19 	for services rendered and ordered under subdivision 7 shall require the approval of the 
78.20 	chief district public defender before being forwarded on a monthly basis to the state 
78.21 	public defender. In cases where adequate representation cannot be provided by the district 
78.22 	public defender and where counsel has been appointed under a court order, the state 
78.23 	public defender shall forward to the commissioner of management and budget all billings 
78.24 	for services rendered under the court order. The commissioner shall pay for services 
78.25 	from county program aid retained by the commissioner of revenue for that purpose under 
78.26 	section 477A.0124, subdivision 1, clause (4), or477A.03, subdivision 2b, paragraph (a).
78.27 	The costs of appointed counsel and associated services in cases arising from new 
78.28 	criminal charges brought against indigent inmates who are incarcerated in a Minnesota 
78.29 	state correctional facility are the responsibility of the state Board of Public Defense. In 
78.30 	such cases the state public defender may follow the procedures outlined in this section for 
78.31 	obtaining court-ordered counsel.

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

78.33 	Sec. 91. Minnesota Statutes 2012, section 611.27, subdivision 15, is amended to read:
79.1 		Subd. 15.Costs of transcripts. In appeal cases and postconviction cases where 
79.2 	the appellate public defender's office does not have sufficient funds to pay for transcripts 
79.3 	and other necessary expenses because it has spent or committed all of the transcript 
79.4 	funds in its annual budget, the state public defender may forward to the commissioner 
79.5 	of management and budget all billings for transcripts and other necessary expenses. The 
79.6 	commissioner shall pay for these transcripts and other necessary expenses from county 
79.7 	program aid retained by the commissioner of revenue for that purpose under section 
79.8 	477A.0124, subdivision 1, clause (4), or477A.03, subdivision 2b, paragraph (a).

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

79.10 	Sec. 92. REVISOR'S INSTRUCTION.
 79.11 	The revisor of statutes shall make all necessary cross-reference changes in 
79.12 	Minnesota Statutes and Minnesota Rules consistent with the amendments and repealers in 
79.13 	this act. The revisor can make changes to sentence structure to preserve the meaning of 
79.14 	the text. The revisor shall make other changes in chapter titles; section, subdivision, part, 
79.15 	and subpart headnotes; and in other terminology necessary as a result of the enactment of 
79.16 	this act. The Department of Revenue shall assist in making these corrections.

79.17 	Sec. 93.  REPEALER.
 79.18 	(a) Minnesota Statutes 2012, sections 290.01, subdivision 19e; 290.0674, 
79.19 	subdivision 3; and 290.33, and Minnesota Rules, part 8007.0200, are repealed.
79.20 	(b) Minnesota Statutes 2012, sections 16D.02, subdivisions 5 and 8; 16D.11, 
79.21 	subdivision 2; 270C.131; 270C.53; 270C.991, subdivision 4; 272.02, subdivisions 1, 1a, 
79.22 	48, 51, 53, 67, 72, and 82; 272.027, subdivision 2; 272.031; 273.015, subdivision 1; 
79.23 	273.03, subdivision 3; 273.075; 273.1383; 273.1386; 273.80; 275.77; 279.32; 281.173, 
79.24 	subdivision 8; 281.174, subdivision 8; 281.328; 282.10; 282.23; 287.20, subdivision 4; 
79.25 	287.27, subdivision 2; 290.01, subdivisions 4b and 20e; 290C.02, subdivisions 5 and 9; 
79.26 	290C.06; 291.41; 291.42; 291.43; 291.44; 291.45; 291.46; 291.47; 295.52, subdivision 7; 
79.27 	297A.71, subdivisions 4, 5, 7, 10, 17, 18, 20, and 32; 297F.08, subdivision 11; 297H.10, 
79.28 	subdivision 2; 469.174, subdivision 10c; 469.175, subdivision 2b; 469.176, subdivision 1i; 
79.29 	469.177, subdivision 10; 477A.0124, subdivisions 1 and 6; and 505.173, and Minnesota 
79.30 	Rules, parts 8002.0200, subpart 8; 8100.0800; 8130.7500, subpart 7; 8130.8900, subpart 
79.31 	3; and 8130.9500, subparts 1, 1a, 2, 3, 4, and 5, are repealed.
79.32 	(c) Minnesota Statutes 2012, section 469.1764, is repealed.
79.33 	(d) Minnesota Statutes 2012, section 273.1115, is repealed.
80.1 	(e) Minnesota Statutes 2012, sections 289A.56, subdivision 7; 297A.68, subdivision 
80.2 	38; 469.330; 469.331; 469.332; 469.333; 469.334; 469.335; 469.336; 469.337; 469.338; 
80.3 	469.339; 469.340, subdivisions 1, 2, 3, and 5; and 469.341, and Minnesota Statutes 2013 
80.4 	Supplement, section 469.340, subdivision 4, are repealed.
80.5 	(f) Minnesota Statutes 2012, section 290.06, subdivisions 30 and 31, are repealed.

80.6 	EFFECTIVE DATE. Paragraph (a) is effective for taxable years beginning after 
80.7 	December 31, 2013.
80.8 	Paragraph (b) is effective the day following final enactment.
80.9 	Paragraph (c) is effective the day following final enactment and any remaining 
80.10 	unexpended tax increments from a district subject to Minnesota Statutes, section 469.1764, 
80.11 	must be distributed as excess increments to the city, county, and school district under 
80.12 	Minnesota Statutes, section 469.176, subdivision 2, paragraph (c), clause (4), on or before 
80.13 	December 31, 2014.
80.14 	Paragraph (d) is effective beginning with property taxes payable in 2015.
80.15 	Paragraph (e) is effective January 1, 2016.
80.16 	Paragraph (f) is effective for taxable years beginning after December 31, 2015.