<div class="xtend"><a id="pl.1.1"></a><var>1.1</var>CONFERENCE COMMITTEE REPORT ON H. F. No. 3167<br />
         		
         <div class="xtend_ce"><a id="pl.1.2"></a><var>1.2</var>A bill for an act<br />
            		
         </div><a id="pl.1.3"></a><var>1.3</var>relating to financing of state and local government; making changes to individual <br />
         		<a id="pl.1.4"></a><var>1.4</var>income, property, sales and use, excise, estate, mineral, tobacco, alcohol, special, <br />
         		<a id="pl.1.5"></a><var>1.5</var>local, and other taxes and tax-related provisions; providing for and increasing <br />
         		<a id="pl.1.6"></a><var>1.6</var>credits; modifying local government aids; modifying exclusions, exemptions, <br />
         		<a id="pl.1.7"></a><var>1.7</var>and levy deadlines; imposing a tax on solar energy production; modifying sales, <br />
         		<a id="pl.1.8"></a><var>1.8</var>use, and excise tax exemptions; changing sales, use, and excise tax remittances; <br />
         		<a id="pl.1.9"></a><var>1.9</var>modifying certain local sales and use taxes; allowing for temporary sales and <br />
         		<a id="pl.1.10"></a><var>1.10</var>use tax amnesty; modifying income tax credits and subtractions; clarifying <br />
         		<a id="pl.1.11"></a><var>1.11</var>estate tax provisions; providing for certain local development projects; changing <br />
         		<a id="pl.1.12"></a><var>1.12</var>license revocation procedures; modifying installment payments; modifying <br />
         		<a id="pl.1.13"></a><var>1.13</var>certain county levy authority; allocating additional tax reductions for border <br />
         		<a id="pl.1.14"></a><var>1.14</var>cities; removing obsolete, redundant, and unnecessary laws and administrative <br />
         		<a id="pl.1.15"></a><var>1.15</var>rules administered by the Department of Revenue; making various policy and <br />
         		<a id="pl.1.16"></a><var>1.16</var>technical changes; requiring a report; appropriating money;amending Minnesota <br />
         		<a id="pl.1.17"></a><var>1.17</var>Statutes 2012, sections 16D.02, subdivisions 3, 6; 16D.04, subdivisions 3, <br />
         		<a id="pl.1.18"></a><var>1.18</var>4; 16D.07; 16D.11, subdivisions 1, 3, 7; 84A.20, subdivision 2; 84A.31, <br />
         		<a id="pl.1.19"></a><var>1.19</var>subdivision 2; 115B.49, subdivision 4; 116J.8737, by adding a subdivision; <br />
         		<a id="pl.1.20"></a><var>1.20</var>163.06, subdivision 1; 270.11, subdivision 1; 270.12, subdivisions 2, 4; 270.87; <br />
         		<a id="pl.1.21"></a><var>1.21</var>270A.03, subdivision 2; 270B.14, subdivision 3; 270C.085; 270C.34, subdivision <br />
         		<a id="pl.1.22"></a><var>1.22</var>2; 270C.52, subdivision 2; 270C.56, subdivision 3; 270C.72, subdivisions 1, 3; <br />
         		<a id="pl.1.23"></a><var>1.23</var>272.01, subdivisions 1, 3; 272.02, subdivisions 10, 24; 272.0211, subdivisions <br />
         		<a id="pl.1.24"></a><var>1.24</var>1, 2; 272.025, subdivision 1; 272.027, subdivision 1; 272.029, subdivisions <br />
         		<a id="pl.1.25"></a><var>1.25</var>4a, 6; 272.03, subdivision 1; 273.01; 273.061, subdivision 6; 273.10; 273.11, <br />
         		<a id="pl.1.26"></a><var>1.26</var>subdivision 13; 273.112, subdivision 6a; 273.13, subdivision 34; 273.1384, <br />
         		<a id="pl.1.27"></a><var>1.27</var>subdivision 2; 273.18; 273.33, subdivision 2; 273.37, subdivision 2; 273.3711; <br />
         		<a id="pl.1.28"></a><var>1.28</var>274.01, subdivisions 1, 2; 274.014, subdivision 3; 275.025, subdivision 2; <br />
         		<a id="pl.1.29"></a><var>1.29</var>275.065, subdivision 1; 275.08, subdivisions 1a, 1d; 275.74, subdivision 2; <br />
         		<a id="pl.1.30"></a><var>1.30</var>275.75; 279.03; 279.16; 279.23; 279.25; 280.001; 280.03; 280.07; 280.11; <br />
         		<a id="pl.1.31"></a><var>1.31</var>281.03; 281.327; 282.01, subdivision 6; 282.04, subdivision 4; 282.261, <br />
         		<a id="pl.1.32"></a><var>1.32</var>subdivisions 2, 4, 5; 282.322; 287.30; 289A.02, subdivision 7, as amended; <br />
         		<a id="pl.1.33"></a><var>1.33</var>289A.18, subdivision 2; 289A.25, subdivision 1; 289A.60, subdivision 15; <br />
         		<a id="pl.1.34"></a><var>1.34</var>290.01, subdivisions 5, 19f, 29; 290.015, subdivision 1; 290.068, subdivision <br />
         		<a id="pl.1.35"></a><var>1.35</var>1; 290.07, subdivisions 1, 2; 290.0922, subdivision 3; 290.095, subdivision 3; <br />
         		<a id="pl.1.36"></a><var>1.36</var>290.9728, subdivision 2; 296A.01, subdivision 16; 297A.67, subdivision 13a, by <br />
         		<a id="pl.1.37"></a><var>1.37</var>adding a subdivision; 297A.68, by adding a subdivision; 297A.70, subdivision <br />
         		<a id="pl.1.38"></a><var>1.38</var>10; 297A.71, by adding a subdivision; 297A.94; 297B.03; 297B.09; 297F.03, <br />
         		<a id="pl.1.39"></a><var>1.39</var>subdivision 2; 297F.09, subdivision 10; 297G.03, by adding a subdivision; <br />
         		<a id="pl.1.40"></a><var>1.40</var>297G.09, subdivision 9; 297I.05, subdivision 14; 298.75, subdivisions 1, 2; <br />
         		<a id="pl.1.41"></a><var>1.41</var>383D.41, by adding a subdivision; 383E.21, subdivisions 1, 2; 412.131; 469.171, <br />
         		<a id="pl.1.42"></a><var>1.42</var>subdivision 6; 469.176, subdivisions 1b, 3; 469.1763, subdivision 3; 469.177, <br />
         		<a id="pl.1.43"></a><var>1.43</var>subdivision 3; 473.665, subdivision 5; 477A.0124, subdivision 5; 477A.014, <br />
         		<a id="pl.2.1"></a><var>2.1</var>subdivision 1; 477A.03, by adding a subdivision; 611.27, subdivisions 13, 15; <br />
         		<a id="pl.2.2"></a><var>2.2</var>Minnesota Statutes 2013 Supplement, sections 116J.8737, subdivision 2, as <br />
         		<a id="pl.2.3"></a><var>2.3</var>amended; 116J.8738, subdivisions 2, 3, 4; 270B.01, subdivision 8; 270B.03, <br />
         		<a id="pl.2.4"></a><var>2.4</var>subdivision 1; 273.032; 273.1325, subdivisions 1, 2; 273.1398, subdivisions 3, 4; <br />
         		<a id="pl.2.5"></a><var>2.5</var>275.70, subdivision 5; 279.37, subdivision 2; 281.17; 289A.20, subdivision 4; <br />
         		<a id="pl.2.6"></a><var>2.6</var>290.01, subdivisions 19, as amended, 19b, as amended, 19d, 31, as amended; <br />
         		<a id="pl.2.7"></a><var>2.7</var>290.068, subdivisions 3, 6a; 290.091, subdivision 2, as amended; 290.0921, <br />
         		<a id="pl.2.8"></a><var>2.8</var>subdivision 3; 290.191, subdivision 5; 290A.03, subdivision 15, as amended; <br />
         		<a id="pl.2.9"></a><var>2.9</var>290C.03; 291.005, subdivision 1, as amended; 297A.61, subdivision 3, as <br />
         		<a id="pl.2.10"></a><var>2.10</var>amended; 297A.68, subdivisions 42, 44; 297A.70, subdivisions 2, 13, 14; <br />
         		<a id="pl.2.11"></a><var>2.11</var>297A.75, subdivisions 1, 2, 3; 297B.01, subdivision 16; 360.531, subdivision 2; <br />
         		<a id="pl.2.12"></a><var>2.12</var>403.162, subdivision 5; 423A.02, subdivision 3; 423A.022, subdivisions 2, 3; <br />
         		<a id="pl.2.13"></a><var>2.13</var>465.04; 469.169, by adding a subdivision; 469.1763, subdivision 2; 477A.013, <br />
         		<a id="pl.2.14"></a><var>2.14</var>subdivision 8; 477A.03, subdivision 2a; 477A.12, subdivision 1; 477A.14, <br />
         		<a id="pl.2.15"></a><var>2.15</var>subdivision 1; Laws 1980, chapter 511, sections 1, subdivision 2, as amended; <br />
         		<a id="pl.2.16"></a><var>2.16</var>2, as amended; Laws 2005, First Special Session chapter 3, article 5, section <br />
         		<a id="pl.2.17"></a><var>2.17</var>38, subdivision 4; Laws 2006, chapter 259, article 3, sections 10, subdivisions <br />
         		<a id="pl.2.18"></a><var>2.18</var>3, 4, 5; 11, subdivisions 3, 4, 5; Laws 2008, chapter 366, article 10, section 15; <br />
         		<a id="pl.2.19"></a><var>2.19</var>Laws 2013, chapter 143, article 8, sections 3; 37; article 9, section 23; article <br />
         		<a id="pl.2.20"></a><var>2.20</var>11, section 10; Laws 2014, chapter 150, article 3, section 4; proposing coding <br />
         		<a id="pl.2.21"></a><var>2.21</var>for new law in Minnesota Statutes, chapters 69; 116J; 168A; 272; 290; 383A; <br />
         		<a id="pl.2.22"></a><var>2.22</var>477A; repealing Minnesota Statutes 2012, sections 16D.02, subdivisions 5, 8; <br />
         		<a id="pl.2.23"></a><var>2.23</var>16D.11, subdivision 2; 270C.131; 270C.53; 270C.991, subdivision 4; 272.02, <br />
         		<a id="pl.2.24"></a><var>2.24</var>subdivisions 1, 1a, 43, 48, 51, 53, 67, 72, 82; 272.027, subdivision 2; 272.031; <br />
         		<a id="pl.2.25"></a><var>2.25</var>273.015, subdivision 1; 273.03, subdivision 3; 273.075; 273.13, subdivision <br />
         		<a id="pl.2.26"></a><var>2.26</var>21a; 273.1383; 273.1386; 273.1398, subdivision 4b; 273.80; 275.77; 279.32; <br />
         		<a id="pl.2.27"></a><var>2.27</var>281.173, subdivision 8; 281.174, subdivision 8; 281.328; 282.10; 282.23; <br />
         		<a id="pl.2.28"></a><var>2.28</var>287.20, subdivision 4; 287.27, subdivision 2; 289A.56, subdivision 7; 290.01, <br />
         		<a id="pl.2.29"></a><var>2.29</var>subdivisions 4b, 19e, 20e; 290.06, subdivisions 30, 31; 290.0674, subdivision 3; <br />
         		<a id="pl.2.30"></a><var>2.30</var>290.191, subdivision 4; 290.33; 290C.02, subdivisions 5, 9; 290C.06; 295.52, <br />
         		<a id="pl.2.31"></a><var>2.31</var>subdivision 7; 297A.666; 297A.68, subdivision 38; 297A.71, subdivisions 4, <br />
         		<a id="pl.2.32"></a><var>2.32</var>5, 7, 9, 10, 17, 18, 20, 32, 41; 297F.08, subdivision 11; 297H.10, subdivision <br />
         		<a id="pl.2.33"></a><var>2.33</var>2; 469.174, subdivision 10c; 469.175, subdivision 2b; 469.176, subdivision <br />
         		<a id="pl.2.34"></a><var>2.34</var>1i; 469.1764; 469.177, subdivision 10; 469.330; 469.331; 469.332; 469.333; <br />
         		<a id="pl.2.35"></a><var>2.35</var>469.334; 469.335; 469.336; 469.337; 469.338; 469.339; 469.340, subdivisions <br />
         		<a id="pl.2.36"></a><var>2.36</var>1, 2, 3, 5; 469.341; 477A.0124, subdivisions 1, 6; 505.173; Minnesota Statutes <br />
         		<a id="pl.2.37"></a><var>2.37</var>2013 Supplement, sections 273.1103; 469.340, subdivision 4; 477A.085; Laws <br />
         		<a id="pl.2.38"></a><var>2.38</var>1993, chapter 375, article 9, section 47; Laws 2014, chapter 150, article 1, <br />
         		<a id="pl.2.39"></a><var>2.39</var>section 17; Minnesota Rules, parts 8002.0200, subpart 8; 8007.0200; 8100.0800; <br />
         		<a id="pl.2.40"></a><var>2.40</var>8130.7500, subpart 7; 8130.8900, subpart 3; 8130.9500, subparts 1, 1a, 2, 3, 4, 5.<br />
         		<a id="pl.2.41"></a><var>2.41</var>May 12, 2014<br />
         		<a id="pl.2.42"></a><var>2.42</var>The Honorable Paul Thissen<br />
         		<a id="pl.2.43"></a><var>2.43</var>Speaker of the House of Representatives<br />
         		<a id="pl.2.44"></a><var>2.44</var>The Honorable Sandra L. Pappas<br />
         		<a id="pl.2.45"></a><var>2.45</var>President of the Senate<br />
         		<a id="pl.2.46"></a><var>2.46</var>We, the undersigned conferees for H. F. No. 3167 report that we have agreed upon <br />
         		<a id="pl.2.47"></a><var>2.47</var>the items in dispute and recommend as follows:<br />
         		<a id="pl.2.48"></a><var>2.48</var>That the Senate recede from its amendments and that H. F. No. 3167 be further <br />
         		<a id="pl.2.49"></a><var>2.49</var>amended as follows:<br />
         		<a id="pl.2.50"></a><var>2.50</var>Delete everything after the enacting clause and insert:<br />
         		<br />
         		<a id="bill.1.0.0"></a><div class="xtend_ce"><a id="pl.3.1"></a><var>3.1</var>"<b>ARTICLE 1</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.3.2"></a><var>3.2</var><b>PROPERTY TAX AIDS AND CREDITS</b><br />
            		
         </div><br />
         		<a id="bill.1.1.0"></a><a id="pl.3.3"></a><var>3.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. <b>[69.022] VOLUNTEER RETENTION STIPEND AID PILOT.</b><br />
         		<a id="pl.3.4"></a><var>3.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Definitions.</b> (a) For purposes of this section, the following terms <br />
         		<a id="pl.3.5"></a><var>3.5</var>have the meanings given them.<br />
         		<a id="pl.3.6"></a><var>3.6</var>(b) "Commissioner," unless otherwise specified, means the commissioner of public <br />
         		<a id="pl.3.7"></a><var>3.7</var>safety.<br />
         		<a id="pl.3.8"></a><var>3.8</var>(c) "Emergency medical services provider" means a licensee as defined under <br />
         		<a id="pl.3.9"></a><var>3.9</var>section 144E.001, subdivision 8.<br />
         		<a id="pl.3.10"></a><var>3.10</var>(d) "Independent nonprofit firefighting corporation" has the same meaning as used in <br />
         		<a id="pl.3.11"></a><var>3.11</var>chapter 424A.<br />
         		<a id="pl.3.12"></a><var>3.12</var>(e) "Municipality" has the meaning given in section 69.011, but only if the <br />
         		<a id="pl.3.13"></a><var>3.13</var>municipality uses one or more qualified volunteers to provide service.<br />
         		<a id="pl.3.14"></a><var>3.14</var>(f) "Qualified entity" means an emergency medical services provider, independent <br />
         		<a id="pl.3.15"></a><var>3.15</var>nonprofit firefighting corporation, or municipality.<br />
         		<a id="pl.3.16"></a><var>3.16</var>(g) "Qualified volunteer" means one of the following types of volunteers who has <br />
         		<a id="pl.3.17"></a><var>3.17</var>provided service, for the entire prior calendar year, to one or more qualified entities:<br />
         		<a id="pl.3.18"></a><var>3.18</var>(1) a volunteer firefighter as defined in section 299N.03, subdivision 7;<br />
         		<a id="pl.3.19"></a><var>3.19</var>(2) a volunteer ambulance attendant as defined in section 144E.001, subdivision 15; or<br />
         		<a id="pl.3.20"></a><var>3.20</var>(3) an emergency medical responder as defined in section 144E.001, subdivision 6, <br />
         		<a id="pl.3.21"></a><var>3.21</var>who provides emergency medical services as a volunteer.<br />
         		<a id="pl.3.22"></a><var>3.22</var>(h) "Pilot area" means the following groups of counties:<br />
         		<a id="pl.3.23"></a><var>3.23</var>(1) southern Minnesota, consisting of the counties of Faribault, Fillmore, Freeborn, <br />
         		<a id="pl.3.24"></a><var>3.24</var>Houston, and Watonwan;<br />
         		<a id="pl.3.25"></a><var>3.25</var>(2) west central Minnesota, consisting of the counties of Chippewa, Kandiyohi, <br />
         		<a id="pl.3.26"></a><var>3.26</var>Redwood, and Renville;<br />
         		<a id="pl.3.27"></a><var>3.27</var>(3) central Minnesota, consisting of the counties of Morrison and Todd; and<br />
         		<a id="pl.3.28"></a><var>3.28</var>(4) north central Minnesota, consisting of the counties of Beltrami, Clearwater, <br />
         		<a id="pl.3.29"></a><var>3.29</var>and Mahnomen.<br />
         		<a id="pl.3.30"></a><var>3.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Certification.</b> By June 1 of the calendar year following the year in <br />
         		<a id="pl.3.31"></a><var>3.31</var>which the qualified volunteer provided service, the commissioner shall certify to the <br />
         		<a id="pl.3.32"></a><var>3.32</var>commissioner of revenue each qualified volunteer's name and the qualified entity for which <br />
         		<a id="pl.3.33"></a><var>3.33</var>the qualified volunteer provided service, but the commissioner must remove duplicate <br />
         		<a id="pl.3.34"></a><var>3.34</var>listings of qualified volunteers who provided service to more than one qualified entity so <br />
         		<a id="pl.3.35"></a><var>3.35</var>that each qualified volunteer is listed only once. The commissioner shall also certify to the <br />
         		<a id="pl.3.36"></a><var>3.36</var>commissioner of revenue the total amount of aid to be paid to each qualified entity under <br />
         		<a id="pl.4.1"></a><var>4.1</var>subdivision 3. For qualified entities that are not municipalities, the commissioner must <br />
         		<a id="pl.4.2"></a><var>4.2</var>indicate the municipality to which the aid is to be paid, as designated by the qualified entity.<br />
         		<a id="pl.4.3"></a><var>4.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Aid payment and calculation.</b> The commissioner of revenue shall pay aid <br />
         		<a id="pl.4.4"></a><var>4.4</var>to qualified entities located in the pilot area to provide funds for the qualified entities to <br />
         		<a id="pl.4.5"></a><var>4.5</var>pay annual volunteer retention stipends to qualified volunteers who provide services to <br />
         		<a id="pl.4.6"></a><var>4.6</var>the qualified entities. A qualified entity is located in the pilot area if it is a municipality <br />
         		<a id="pl.4.7"></a><var>4.7</var>located in whole or in part in the pilot area, or if it is an emergency medical services <br />
         		<a id="pl.4.8"></a><var>4.8</var>provider or independent nonprofit firefighting corporation with its main office located in <br />
         		<a id="pl.4.9"></a><var>4.9</var>the pilot area. The amount of the aid equals $500 multiplied by the number of qualified <br />
         		<a id="pl.4.10"></a><var>4.10</var>volunteers. For purposes of calculating this aid, each individual providing volunteer <br />
         		<a id="pl.4.11"></a><var>4.11</var>service, regardless of the different types of service provided, is one qualified volunteer. <br />
         		<a id="pl.4.12"></a><var>4.12</var>The commissioner of revenue shall pay the aid to qualified entities by July 15 of the <br />
         		<a id="pl.4.13"></a><var>4.13</var>calendar year following the year in which the qualified volunteer provided service. If a <br />
         		<a id="pl.4.14"></a><var>4.14</var>qualified entity is not a municipality, the commissioner shall pay the aid to the treasurer of <br />
         		<a id="pl.4.15"></a><var>4.15</var>the municipality designated by the qualified entity. The treasurer of the municipality shall, <br />
         		<a id="pl.4.16"></a><var>4.16</var>within 30 days of receipt of the aid, transmit the aid to the qualified entity.<br />
         		<a id="pl.4.17"></a><var>4.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Application.</b> Each year each qualified entity in the pilot area may apply to <br />
         		<a id="pl.4.18"></a><var>4.18</var>the commissioner for aid under this section. The application must be made at the time and <br />
         		<a id="pl.4.19"></a><var>4.19</var>in the form prescribed by the commissioner and must provide sufficient information to <br />
         		<a id="pl.4.20"></a><var>4.20</var>permit the commissioner to determine the applicant's entitlement to aid under this section.<br />
         		<a id="pl.4.21"></a><var>4.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Payment of stipends.</b> A qualified entity receiving state aid under this <br />
         		<a id="pl.4.22"></a><var>4.22</var>section must pay the aid as retention stipends of $500 to qualified volunteers no later than <br />
         		<a id="pl.4.23"></a><var>4.23</var>September 15 of the year in which the aid was received.<br />
         		<a id="pl.4.24"></a><var>4.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <b>Report.</b> No later than January 15, 2018, the commissioner must report to <br />
         		<a id="pl.4.25"></a><var>4.25</var>the chairs and ranking minority members of the legislative committees having jurisdiction <br />
         		<a id="pl.4.26"></a><var>4.26</var>over public safety and taxes in the senate and the house of representatives, in compliance <br />
         		<a id="pl.4.27"></a><var>4.27</var>with sections 3.195 and 3.197, on aid paid under this section. The report must include:<br />
         		<a id="pl.4.28"></a><var>4.28</var>(1) for each county in the pilot area, a listing of the qualified entities that received <br />
         		<a id="pl.4.29"></a><var>4.29</var>aid in each of the three years of the pilot;<br />
         		<a id="pl.4.30"></a><var>4.30</var>(2) the amount of aid paid to each qualified entity that received aid in each of the <br />
         		<a id="pl.4.31"></a><var>4.31</var>three years of the pilot; and<br />
         		<a id="pl.4.32"></a><var>4.32</var>(3) for each qualified entity that received aid, the number of qualified volunteers <br />
         		<a id="pl.4.33"></a><var>4.33</var>who were paid stipends in each of the three years of the pilot, and the number of qualified <br />
         		<a id="pl.4.34"></a><var>4.34</var>volunteers in the year preceding the pilot.<br />
         		<a id="pl.4.35"></a><var>4.35</var>The report must also provide information on the number of qualified volunteers <br />
         		<a id="pl.4.36"></a><var>4.36</var>providing service to qualified entities in comparison counties in each of the three years of <br />
         		<a id="pl.5.1"></a><var>5.1</var>the pilot and in the year preceding the pilot, and must summarize changes in the number <br />
         		<a id="pl.5.2"></a><var>5.2</var>of qualified volunteers during the year preceding the pilot and during the three years of <br />
         		<a id="pl.5.3"></a><var>5.3</var>the pilot both within the pilot area and in the comparison counties. For purposes of this <br />
         		<a id="pl.5.4"></a><var>5.4</var>subdivision, "comparison counties" means counties designated by the commissioner to <br />
         		<a id="pl.5.5"></a><var>5.5</var>include at least half of the counties that border each group of counties in the pilot area, <br />
         		<a id="pl.5.6"></a><var>5.6</var>as specified in subdivision 1. Qualified entities in comparison counties must provide <br />
         		<a id="pl.5.7"></a><var>5.7</var>information to the commissioner necessary to the report in this subdivision in the form <br />
         		<a id="pl.5.8"></a><var>5.8</var>and manner required by the commissioner.<br />
         		<a id="pl.5.9"></a><var>5.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Appropriation.</b>  An amount sufficient to pay the state aid under this section <br />
         		<a id="pl.5.10"></a><var>5.10</var>is appropriated from the general fund to the commissioner of revenue. <br />
         		<a id="pl.5.11"></a><var>5.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 8. <b>Sunset.</b> This section expires for aid payable after calendar year 2017, <br />
         		<a id="pl.5.12"></a><var>5.12</var>except that the reporting requirement in subdivision 6 remains in effect through 2018.<br />
         		<a id="pl.5.13"></a><var>5.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br />
         		<a id="pl.5.14"></a><var>5.14</var>and applies for volunteer service provided beginning in calendar years 2014, 2015, and <br />
         		<a id="pl.5.15"></a><var>5.15</var>2016, and for aid payable in calendar years 2015, 2016, and 2017.<br />
         		<br />
         		<a id="bill.1.2.0"></a><a id="pl.5.16"></a><var>5.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. Minnesota Statutes 2012, section 273.1384, subdivision 2, is amended to read:<br />
         		<a id="pl.5.17"></a><var>5.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Agricultural homestead market value credit.</b> Property classified as <br />
         		<a id="pl.5.18"></a><var>5.18</var>agricultural homestead under section 
         <statute_ref>273.13, subdivision 23</statute_ref>, paragraph (a), is eligible for <br />
         		<a id="pl.5.19"></a><var>5.19</var>an agricultural credit. The credit is computed using the property's agricultural credit market <br />
         		<a id="pl.5.20"></a><var>5.20</var>value, defined for this purpose as the property's market value excluding the market value of <br />
         		<a id="pl.5.21"></a><var>5.21</var>the house, garage, and immediately surrounding one acre of land. The credit is equal to 0.3 <br />
         		<a id="pl.5.22"></a><var>5.22</var>percent of the first $115,000 of the property's agricultural credit market value minus .05 plus <br />
         		<a id="pl.5.23"></a><var>5.23</var>0.1 percent of the property's agricultural credit market value in excess of $115,000, subject <br />
         		<a id="pl.5.24"></a><var>5.24</var>to a maximum reduction credit of $115 $490. In the case of property that is classified <br />
         		<a id="pl.5.25"></a><var>5.25</var>as part homestead and part nonhomestead solely because not all the owners occupy or <br />
         		<a id="pl.5.26"></a><var>5.26</var>farm the property, not all the owners have qualifying relatives occupying or farming the <br />
         		<a id="pl.5.27"></a><var>5.27</var>property, or solely because not all the spouses of owners occupy the property, the credit <br />
         		<a id="pl.5.28"></a><var>5.28</var>must be initially computed as if that nonhomestead agricultural land was also classified as <br />
         		<a id="pl.5.29"></a><var>5.29</var>agricultural homestead and then prorated to the owner-occupant's percentage of ownership.<br />
         		<a id="pl.5.30"></a><var>5.30</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2015.<br />
         		<br />
         		<a id="bill.1.3.0"></a><a id="pl.5.31"></a><var>5.31</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. Minnesota Statutes 2013 Supplement, section 273.1398, subdivision 4, is <br />
         		<a id="pl.5.32"></a><var>5.32</var>amended to read:<br />
         		<a id="pl.6.1"></a><var>6.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Disparity reduction credit.</b> (a) Beginning with taxes payable in 1989,<br />
         		<a id="pl.6.2"></a><var>6.2</var> Class 4a and class 3a property qualifies for a disparity reduction credit if: (1) the property <br />
         		<a id="pl.6.3"></a><var>6.3</var>is located in a border city that has is eligible to have an enterprise zone, as defined in <br />
         		<a id="pl.6.4"></a><var>6.4</var>section 
         <statute_ref>469.166</statute_ref>; (2) the property is located in a city with a population greater than 2,500 <br />
         		<a id="pl.6.5"></a><var>6.5</var>and less than 35,000 according to the 1980 decennial census; (3) the city is adjacent to a <br />
         		<a id="pl.6.6"></a><var>6.6</var>city in another state or immediately adjacent to a city adjacent to a city in another state; <br />
         		<a id="pl.6.7"></a><var>6.7</var>and (4) the adjacent city in the other state has a population of greater than 5,000 and less <br />
         		<a id="pl.6.8"></a><var>6.8</var>than 75,000 according to the 1980 decennial census.<br />
         		<a id="pl.6.9"></a><var>6.9</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) The credit is an amount sufficient to reduce (i) the taxes levied on class 4a <br />
         		<a id="pl.6.10"></a><var>6.10</var>property to 1.9 1.6 percent of the property's taxable market value and (ii) the tax on class <br />
         		<a id="pl.6.11"></a><var>6.11</var>3a property to 1.9 1.6 percent of taxable market value.<br />
         		<a id="pl.6.12"></a><var>6.12</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) The county auditor shall annually certify the costs of the credits to the <br />
         		<a id="pl.6.13"></a><var>6.13</var>Department of Revenue. The department shall reimburse local governments for the <br />
         		<a id="pl.6.14"></a><var>6.14</var>property taxes forgone as the result of the credits in proportion to their total levies.<br />
         		<a id="pl.6.15"></a><var>6.15</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2015.<br />
         		<br />
         		<a id="bill.1.4.0"></a><a id="pl.6.16"></a><var>6.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 4. Minnesota Statutes 2013 Supplement, section 423A.022, subdivision 2, is <br />
         		<a id="pl.6.17"></a><var>6.17</var>amended to read:<br />
         		<a id="pl.6.18"></a><var>6.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Allocation.</b> (a) Of the total amount appropriated as supplemental state aid:<br />
         		<a id="pl.6.19"></a><var>6.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) 58.065 58.064 percent must be paid to the executive director of the Public <br />
         		<a id="pl.6.20"></a><var>6.20</var>Employees Retirement Association for deposit in the public employees police and fire <br />
         		<a id="pl.6.21"></a><var>6.21</var>retirement fund established by section 
         <statute_ref>353.65, subdivision 1</statute_ref>;<br />
         		<a id="pl.6.22"></a><var>6.22</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) 35.484 percent must be paid to municipalities other than municipalities solely <br />
         		<a id="pl.6.23"></a><var>6.23</var>employing firefighters with retirement coverage provided by the public employees police <br />
         		<a id="pl.6.24"></a><var>6.24</var>and fire retirement plan which qualified to receive fire state aid in that calendar year, <br />
         		<a id="pl.6.25"></a><var>6.25</var>allocated in proportion to the most recent amount of fire state aid paid under section <br />
         		
         <statute_ref><a id="pl.6.26"></a><var>6.26</var>69.021, subdivision 7
         </statute_ref>, for the municipality bears to the most recent total fire state aid <br />
         		<a id="pl.6.27"></a><var>6.27</var>for all municipalities other than the municipalities solely employing firefighters with <br />
         		<a id="pl.6.28"></a><var>6.28</var>retirement coverage provided by the public employees police and fire retirement plan <br />
         		<a id="pl.6.29"></a><var>6.29</var>paid under section 
         <statute_ref>69.021, subdivision 7</statute_ref>, with the allocated amount for fire departments <br />
         		<a id="pl.6.30"></a><var>6.30</var>participating in the voluntary statewide lump-sum volunteer firefighter retirement plan <br />
         		<a id="pl.6.31"></a><var>6.31</var>paid to the executive director of the Public Employees Retirement Association for deposit <br />
         		<a id="pl.6.32"></a><var>6.32</var>in the fund established by section 
         <statute_ref>353G.02, subdivision 3</statute_ref>, and credited to the respective <br />
         		<a id="pl.6.33"></a><var>6.33</var>account and with the balance paid to the treasurer of each municipality for transmittal <br />
         		<a id="pl.6.34"></a><var>6.34</var>within 30 days of receipt to the treasurer of the applicable volunteer firefighter relief <br />
         		<a id="pl.6.35"></a><var>6.35</var>association for deposit in its special fund; and<br />
         		<a id="pl.7.1"></a><var>7.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) 6.452 percent must be paid to the executive director of the Minnesota State <br />
         		<a id="pl.7.2"></a><var>7.2</var>Retirement System for deposit in the state patrol retirement fund.<br />
         		<a id="pl.7.3"></a><var>7.3</var>(b) For purposes of this section, the term "municipalities" includes independent <br />
         		<a id="pl.7.4"></a><var>7.4</var>nonprofit firefighting corporations that participate in the voluntary statewide lump-sum <br />
         		<a id="pl.7.5"></a><var>7.5</var>volunteer firefighter retirement plan under chapter 353G or with subsidiary volunteer <br />
         		<a id="pl.7.6"></a><var>7.6</var>firefighter relief associations operating under chapter 424A.<br />
         		<br />
         		<a id="bill.1.5.0"></a><a id="pl.7.7"></a><var>7.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 5. Minnesota Statutes 2013 Supplement, section 477A.013, subdivision 8, is <br />
         		<a id="pl.7.8"></a><var>7.8</var>amended to read:<br />
         		<a id="pl.7.9"></a><var>7.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 8. <b>City formula aid.</b> (a) For aids payable in 2014 only, the formula aid for a <br />
         		<a id="pl.7.10"></a><var>7.10</var>city is equal to the sum of (1) its 2013 certified aid, and (2) the product of (i) the difference <br />
         		<a id="pl.7.11"></a><var>7.11</var>between its unmet need and its 2013 certified aid, and (ii) the aid gap percentage.<br />
         		<a id="pl.7.12"></a><var>7.12</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) For aids payable in 2015 and thereafter, the formula aid for a city is equal to the <br />
         		<a id="pl.7.13"></a><var>7.13</var>sum of (1) its formula aid in the previous year and (2) the product of (i) the difference <br />
         		<a id="pl.7.14"></a><var>7.14</var>between its unmet need and its certified formula aid in the previous year under subdivision <br />
         		<a id="pl.7.15"></a><var>7.15</var>9, and (ii) the aid gap percentage.<br />
         		<a id="pl.7.16"></a><var>7.16</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) For aids payable in 2015 and thereafter, if a city's certified aid from the previous <br />
         		<a id="pl.7.17"></a><var>7.17</var>year is greater than the sum of its unmet need plus its aid adjustment under subdivision 13, <br />
         		<a id="pl.7.18"></a><var>7.18</var>its formula aid is adjusted to equal its unmet need.<br />
         		<a id="pl.7.19"></a><var>7.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) No city may have a formula aid amount less than zero. The aid gap percentage <br />
         		<a id="pl.7.20"></a><var>7.20</var>must be the same for all cities subject to paragraph (b).<br />
         		<a id="pl.7.21"></a><var>7.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(e) The applicable aid gap percentage must be calculated by the Department of <br />
         		<a id="pl.7.22"></a><var>7.22</var>Revenue so that the total of the aid under subdivision 9 equals the total amount available <br />
         		<a id="pl.7.23"></a><var>7.23</var>for aid under section 
         <statute_ref>477A.03</statute_ref>. Data used in calculating aids to cities under sections <br />
         		
         <statute_ref><a id="pl.7.24"></a><var>7.24</var>477A.011
         </statute_ref> to 
         <statute_ref>477A.013</statute_ref> shall be the most recently available data as of January 1 in the <br />
         		<a id="pl.7.25"></a><var>7.25</var>year in which the aid is calculated.<br />
         		<a id="pl.7.26"></a><var>7.26</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br />
         		<a id="pl.7.27"></a><var>7.27</var>2015 and thereafter.<br />
         		<br />
         		<a id="bill.1.6.0"></a><a id="pl.7.28"></a><var>7.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 6. Minnesota Statutes 2013 Supplement, section 477A.03, subdivision 2a, is <br />
         		<a id="pl.7.29"></a><var>7.29</var>amended to read:<br />
         		<a id="pl.7.30"></a><var>7.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2a. <b>Cities.</b> For aids payable in 2014, the total aid paid under section <br />
         		
         <statute_ref><a id="pl.7.31"></a><var>7.31</var>477A.013, subdivision 9
         </statute_ref>, is $507,598,012. The total aid paid under section 
         <statute_ref>477A.013, <br />
            		<a id="pl.7.32"></a><var>7.32</var>subdivision 9
         </statute_ref>, is $509,098,012 $516,898,012 for aids payable in 2015. For aids payable <br />
         		<a id="pl.7.33"></a><var>7.33</var>in 2016 and thereafter, the total aid paid under section 
         <statute_ref>477A.013, subdivision </statute_ref>9, is <br />
         		<a id="pl.7.34"></a><var>7.34</var>$511,598,012 $519,398,012.<br />
         		<a id="pl.8.1"></a><var>8.1</var><b>EFFECTIVE DATE.</b>This section is effective for aids payable in calendar year <br />
         		<a id="pl.8.2"></a><var>8.2</var>2015 and thereafter.<br />
         		<br />
         		<a id="bill.1.7.0"></a><a id="pl.8.3"></a><var>8.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 7. Minnesota Statutes 2013 Supplement, section 477A.12, subdivision 1, is <br />
         		<a id="pl.8.4"></a><var>8.4</var>amended to read:<br />
         		<a id="pl.8.5"></a><var>8.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Types of land; payments.</b>  The following amounts are annually <br />
         		<a id="pl.8.6"></a><var>8.6</var>appropriated to the commissioner of natural resources from the general fund for transfer <br />
         		<a id="pl.8.7"></a><var>8.7</var>to the commissioner of revenue. The commissioner of revenue shall pay the transferred <br />
         		<a id="pl.8.8"></a><var>8.8</var>funds to counties as required by sections 
         <statute_ref>477A.11</statute_ref> to 
         <statute_ref>477A.14</statute_ref>. The amounts, based on the <br />
         		<a id="pl.8.9"></a><var>8.9</var>acreage as of July 1 of each year prior to the payment year, are:<br />
         		<a id="pl.8.10"></a><var>8.10</var>(1) $5.133 multiplied by the total number of acres of acquired natural resources land <br />
         		<a id="pl.8.11"></a><var>8.11</var>or, at the county's option three-fourths of one percent of the appraised value of all acquired <br />
         		<a id="pl.8.12"></a><var>8.12</var>natural resources land in the county, whichever is greater;<br />
         		<a id="pl.8.13"></a><var>8.13</var>(2) $5.133, multiplied by the total number of acres of transportation wetland or, at <br />
         		<a id="pl.8.14"></a><var>8.14</var>the county's option, three-fourths of one percent of the appraised value of all transportation <br />
         		<a id="pl.8.15"></a><var>8.15</var>wetland in the county, whichever is greater;<br />
         		<a id="pl.8.16"></a><var>8.16</var>(3) $5.133, multiplied by the total number of acres of wildlife management land, or, <br />
         		<a id="pl.8.17"></a><var>8.17</var>at the county's option, three-fourths of one percent of the appraised value of all wildlife <br />
         		<a id="pl.8.18"></a><var>8.18</var>management land in the county, whichever is greater;<br />
         		<a id="pl.8.19"></a><var>8.19</var>(4) 50 percent of the dollar amount as determined under clause (1), multiplied by <br />
         		<a id="pl.8.20"></a><var>8.20</var>the number of acres of military refuge land in the county;<br />
         		<a id="pl.8.21"></a><var>8.21</var>(5) $1.50, multiplied by the number of acres of county-administered other natural <br />
         		<a id="pl.8.22"></a><var>8.22</var>resources land in the county;<br />
         		<a id="pl.8.23"></a><var>8.23</var>(6) $5.133, multiplied by the total number of acres of land utilization project land <br />
         		<a id="pl.8.24"></a><var>8.24</var>in the county;<br />
         		<a id="pl.8.25"></a><var>8.25</var>(7) $1.50, multiplied by the number of acres of commissioner-administered other <br />
         		<a id="pl.8.26"></a><var>8.26</var>natural resources land in the county; and<br />
         		<a id="pl.8.27"></a><var>8.27</var>&nbsp;&nbsp;&nbsp;&nbsp;(8) without regard to acreage, and notwithstanding the rules adopted under section <br />
         		<a id="pl.8.28"></a><var>8.28</var>84A.55, $300,000 for local assessments under section 
         <statute_ref>84A.55, subdivision 9</statute_ref>, that shall be <br />
         		<a id="pl.8.29"></a><var>8.29</var>divided and distributed to the counties containing state-owned lands within a conservation <br />
         		<a id="pl.8.30"></a><var>8.30</var>area in proportion to each county's percentage of the total annual ditch assessments.<br />
         		<a id="pl.8.31"></a><var>8.31</var>The commissioner of natural resources shall certify the number of acres and appraised <br />
         		<a id="pl.8.32"></a><var>8.32</var>values for wildlife management lands under clause (3) for calendar year 2013 to the <br />
         		<a id="pl.8.33"></a><var>8.33</var>commissioner of revenue by June 15, 2014. The commissioner of revenue shall make the <br />
         		<a id="pl.8.34"></a><var>8.34</var>payment for any positive difference in the 2013 payment under clause (3) by June 30, 2014.<br />
         		<a id="pl.9.1"></a><var>9.1</var><b>EFFECTIVE DATE.</b>The amendments to clause (3) are effective retroactively <br />
         		<a id="pl.9.2"></a><var>9.2</var>for payments made in calendar year 2013 and later. The amendments to clause (8) are <br />
         		<a id="pl.9.3"></a><var>9.3</var>effective for assessments payable in calendar year 2014 and later.<br />
         		<br />
         		<a id="bill.1.8.0"></a><a id="pl.9.4"></a><var>9.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 8. Minnesota Statutes 2013 Supplement, section 477A.12, subdivision 2, is <br />
         		<a id="pl.9.5"></a><var>9.5</var>amended to read:<br />
         		<a id="pl.9.6"></a><var>9.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Procedure.</b>  (a) Each county auditor shall certify to the Department of <br />
         		<a id="pl.9.7"></a><var>9.7</var>Natural Resources during July of each year prior to the payment year the number of acres <br />
         		<a id="pl.9.8"></a><var>9.8</var>of county-administered other natural resources land within the county. The Department of <br />
         		<a id="pl.9.9"></a><var>9.9</var>Natural resources may, in addition to the certification of acreage, require descriptive lists <br />
         		<a id="pl.9.10"></a><var>9.10</var>of land so certified. The commissioner of natural resources shall determine and certify to <br />
         		<a id="pl.9.11"></a><var>9.11</var>the commissioner of revenue by March 1 of the payment year:<br />
         		<a id="pl.9.12"></a><var>9.12</var>(1) the number of acres and most recent appraised value of acquired natural <br />
         		<a id="pl.9.13"></a><var>9.13</var>resources land, wildlife management land, and military refuge land within each county;<br />
         		<a id="pl.9.14"></a><var>9.14</var>(2) the number of acres of commissioner-administered natural resources land within <br />
         		<a id="pl.9.15"></a><var>9.15</var>each county;<br />
         		<a id="pl.9.16"></a><var>9.16</var>(3) the number of acres of county-administered other natural resources land within <br />
         		<a id="pl.9.17"></a><var>9.17</var>each county, based on the reports filed by each county auditor with the commissioner <br />
         		<a id="pl.9.18"></a><var>9.18</var>of natural resources; and<br />
         		<a id="pl.9.19"></a><var>9.19</var>(4) the number of acres of land utilization project land within each county.<br />
         		<a id="pl.9.20"></a><var>9.20</var>(b) The commissioner of transportation shall determine and certify to the <br />
         		<a id="pl.9.21"></a><var>9.21</var>commissioner of revenue by March 1 of the payment year the number of acres of <br />
         		<a id="pl.9.22"></a><var>9.22</var>transportation wetland and the appraised value of the land, but only if it exceeds 500 <br />
         		<a id="pl.9.23"></a><var>9.23</var>acres in a county.<br />
         		<a id="pl.9.24"></a><var>9.24</var>(c) Each auditor of a county that contains state-owned lands within a conservation <br />
         		<a id="pl.9.25"></a><var>9.25</var>area shall determine and certify to the commissioner of natural resources by May 31 of <br />
         		<a id="pl.9.26"></a><var>9.26</var>the payment year, the county's ditch assessments for state-owned lands subject to section <br />
         		<a id="pl.9.27"></a><var>9.27</var>84A.55, subdivision 9. A joint certification for two or more counties may be submitted to <br />
         		<a id="pl.9.28"></a><var>9.28</var>the commissioner of natural resources through the Consolidated Conservation Counties <br />
         		<a id="pl.9.29"></a><var>9.29</var>Joint Powers Board. The commissioner of natural resources shall certify the ditch <br />
         		<a id="pl.9.30"></a><var>9.30</var>assessments to the commissioner of revenue by June 15 of the payment year. The <br />
         		<a id="pl.9.31"></a><var>9.31</var>commissioner of natural resources shall certify the ditch assessments under this paragraph <br />
         		<a id="pl.9.32"></a><var>9.32</var>for payment year 2013 by June 15, 2014. The commissioner of revenue shall make the <br />
         		<a id="pl.9.33"></a><var>9.33</var>payment for 2013 by June 30, 2014.<br />
         		<a id="pl.9.34"></a><var>9.34</var>(d) The commissioner of revenue shall determine the distributions provided for in this <br />
         		<a id="pl.9.35"></a><var>9.35</var>section using: (1) the number of acres and appraised values certified by the commissioner <br />
         		<a id="pl.10.1"></a><var>10.1</var>of natural resources and the commissioner of transportation by March 1 of the payment <br />
         		<a id="pl.10.2"></a><var>10.2</var>year; and (2) ditch assessments under paragraph (c), by July 15 of the payment year.<br />
         		<a id="pl.10.3"></a><var>10.3</var><b>EFFECTIVE DATE.</b>This section is effective for assessments payable in calendar <br />
         		<a id="pl.10.4"></a><var>10.4</var>year 2014 and later.<br />
         		<br />
         		<a id="bill.1.9.0"></a><a id="pl.10.5"></a><var>10.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 9. Minnesota Statutes 2013 Supplement, section 477A.14, subdivision 1, is <br />
         		<a id="pl.10.6"></a><var>10.6</var>amended to read:<br />
         		<a id="pl.10.7"></a><var>10.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>General distribution.</b> Except as provided in subdivisions 2 and 3, <br />
         		<a id="pl.10.8"></a><var>10.8</var>40 percent of the total payment to the county shall be deposited in the county general <br />
         		<a id="pl.10.9"></a><var>10.9</var>revenue fund to be used to provide property tax levy reduction. The remainder shall be <br />
         		<a id="pl.10.10"></a><var>10.10</var>distributed by the county in the following priority:<br />
         		<a id="pl.10.11"></a><var>10.11</var>(a) (1) 64.2 cents, for each acre of county-administered other natural resources land <br />
         		<a id="pl.10.12"></a><var>10.12</var>shall be deposited in a resource development fund to be created within the county treasury <br />
         		<a id="pl.10.13"></a><var>10.13</var>for use in resource development, forest management, game and fish habitat improvement, <br />
         		<a id="pl.10.14"></a><var>10.14</var>and recreational development and maintenance of county-administered other natural <br />
         		<a id="pl.10.15"></a><var>10.15</var>resources land. Any county receiving less than $5,000 annually for the resource <br />
         		<a id="pl.10.16"></a><var>10.16</var>development fund may elect to deposit that amount in the county general revenue fund;<br />
         		<a id="pl.10.17"></a><var>10.17</var>(b) from the funds remaining, (2) within 30 days of receipt of the payment to <br />
         		<a id="pl.10.18"></a><var>10.18</var>the county, the county treasurer shall pay each organized township ten percent of the <br />
         		<a id="pl.10.19"></a><var>10.19</var>amount received a township with land that qualifies for payment under section 
         <statute_ref>477A.12, <br />
            		<a id="pl.10.20"></a><var>10.20</var>subdivision 1
         </statute_ref>, clauses (1), (2), and (5) to (7), ten percent of the payment the county <br />
         		<a id="pl.10.21"></a><var>10.21</var>received for such land within that township. Payments for natural resources lands not <br />
         		<a id="pl.10.22"></a><var>10.22</var>located in an organized township shall be deposited in the county general revenue fund. <br />
         		<a id="pl.10.23"></a><var>10.23</var>Payments to counties and townships pursuant to this paragraph shall be used to provide <br />
         		<a id="pl.10.24"></a><var>10.24</var>property tax levy reduction, except that of the payments for natural resources lands not <br />
         		<a id="pl.10.25"></a><var>10.25</var>located in an organized township, the county may allocate the amount determined to be <br />
         		<a id="pl.10.26"></a><var>10.26</var>necessary for maintenance of roads in unorganized townships. Provided that, if the total <br />
         		<a id="pl.10.27"></a><var>10.27</var>payment to the county pursuant to section 
         <statute_ref>477A.12</statute_ref> is not sufficient to fully fund the <br />
         		<a id="pl.10.28"></a><var>10.28</var>distribution provided for in this clause, the amount available shall be distributed to each <br />
         		<a id="pl.10.29"></a><var>10.29</var>township and the county general revenue fund on a pro rata basis; and<br />
         		<a id="pl.10.30"></a><var>10.30</var>(c) (3) any remaining funds shall be deposited in the county general revenue fund. <br />
         		<a id="pl.10.31"></a><var>10.31</var>Provided that, if the distribution to the county general revenue fund exceeds $35,000, the <br />
         		<a id="pl.10.32"></a><var>10.32</var>excess shall be used to provide property tax levy reduction.<br />
         		<a id="pl.10.33"></a><var>10.33</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for payments made in <br />
         		<a id="pl.10.34"></a><var>10.34</var>calendar year 2013 and thereafter.<br />
         		<br />
         		<a id="bill.1.10.0"></a><a id="pl.11.1"></a><var>11.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 10. <b>[477A.18] PRODUCTION PROPERTY TRANSITION AID.</b><br />
         		<a id="pl.11.2"></a><var>11.2</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Definitions.</b> (a) When used in this section, the following terms have <br />
         		<a id="pl.11.3"></a><var>11.3</var>the meanings indicated in this subdivision.<br />
         		<a id="pl.11.4"></a><var>11.4</var>(b) "Local unit" means a home rule charter or statutory city, or a town.<br />
         		<a id="pl.11.5"></a><var>11.5</var>(c) "Net tax capacity differential" means the positive difference, if any, by which the <br />
         		<a id="pl.11.6"></a><var>11.6</var>local unit's net tax capacity was reduced from assessment year 2014 to assessment year <br />
         		<a id="pl.11.7"></a><var>11.7</var>2015 due to the change in the definition of real property in section 272.03, subdivision <br />
         		<a id="pl.11.8"></a><var>11.8</var>1, enacted by article 2, section 9. For purposes of determining the net tax capacity <br />
         		<a id="pl.11.9"></a><var>11.9</var>differential, any property in a job opportunity building zone under section 469.314 may <br />
         		<a id="pl.11.10"></a><var>11.10</var>not be included when calculating a local unit's net tax capacity.<br />
         		<a id="pl.11.11"></a><var>11.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Aid eligibility; payment.</b> (a) If the net tax capacity differential of the local <br />
         		<a id="pl.11.12"></a><var>11.12</var>unit exceeds five percent of its 2015 net tax capacity, the local unit is eligible for transition <br />
         		<a id="pl.11.13"></a><var>11.13</var>aid computed under paragraphs (b) to (f).<br />
         		<a id="pl.11.14"></a><var>11.14</var>(b) For aids payable in 2016, transition aid under this section for an eligible local <br />
         		<a id="pl.11.15"></a><var>11.15</var>unit equals (1) the net tax capacity differential, times (2) the jurisdiction's tax rate for <br />
         		<a id="pl.11.16"></a><var>11.16</var>taxes payable in 2015.<br />
         		<a id="pl.11.17"></a><var>11.17</var>(c) For aids payable in 2017, transition aid under this section for an eligible local <br />
         		<a id="pl.11.18"></a><var>11.18</var>unit equals 80 percent of (1) the net tax capacity differential, times (2) the jurisdiction's <br />
         		<a id="pl.11.19"></a><var>11.19</var>tax rate for taxes payable in 2016.<br />
         		<a id="pl.11.20"></a><var>11.20</var>(d) For aids payable in 2018, transition aid under this section for an eligible local <br />
         		<a id="pl.11.21"></a><var>11.21</var>unit equals 60 percent of (1) the net tax capacity differential, times (2) the jurisdiction's <br />
         		<a id="pl.11.22"></a><var>11.22</var>tax rate for taxes payable in 2017.<br />
         		<a id="pl.11.23"></a><var>11.23</var>(e) For aids payable in 2019, transition aid under this section for an eligible local <br />
         		<a id="pl.11.24"></a><var>11.24</var>unit equals 40 percent of (1) the net tax capacity differential, times (2) the jurisdiction's <br />
         		<a id="pl.11.25"></a><var>11.25</var>tax rate for taxes payable in 2018.<br />
         		<a id="pl.11.26"></a><var>11.26</var>(f) For aids payable in 2020, transition aid under this section for an eligible local <br />
         		<a id="pl.11.27"></a><var>11.27</var>unit equals 20 percent of (1) the net tax capacity differential, times (2) the jurisdiction's <br />
         		<a id="pl.11.28"></a><var>11.28</var>tax rate for taxes payable in 2019.<br />
         		<a id="pl.11.29"></a><var>11.29</var>(g) No aids shall be payable under this section in 2021 and thereafter.<br />
         		<a id="pl.11.30"></a><var>11.30</var>(h) The commissioner of revenue shall compute the amount of transition aid payable <br />
         		<a id="pl.11.31"></a><var>11.31</var>to each local unit under this section. On or before August 1 of each year, the commissioner <br />
         		<a id="pl.11.32"></a><var>11.32</var>shall certify the amount of transition aid computed for aids payable in the following year <br />
         		<a id="pl.11.33"></a><var>11.33</var>for each recipient local unit. The commissioner shall pay transition aid to local units <br />
         		<a id="pl.11.34"></a><var>11.34</var>annually at the times provided in section 477A.015.<br />
         		<a id="pl.11.35"></a><var>11.35</var>(i) The commissioner of revenue may require counties to provide any data that the <br />
         		<a id="pl.11.36"></a><var>11.36</var>commissioner deems necessary to administer this section.<br />
         		<a id="pl.12.1"></a><var>12.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Appropriation.</b> An amount sufficient to pay transition aid under this <br />
         		<a id="pl.12.2"></a><var>12.2</var>section is annually appropriated to the commissioner of revenue from the general fund.<br />
         		<a id="pl.12.3"></a><var>12.3</var><b>EFFECTIVE DATE.</b>This section is effective beginning with assessment year 2015.<br />
         		<br />
         		<a id="bill.1.11.0"></a><a id="pl.12.4"></a><var>12.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 11. <b>[477A.19] AQUATIC INVASIVE SPECIES PREVENTION AID.</b><br />
         		<a id="pl.12.5"></a><var>12.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Definitions.</b> (a) When used in this section, the following terms have <br />
         		<a id="pl.12.6"></a><var>12.6</var>the meanings given them in this subdivision.<br />
         		<a id="pl.12.7"></a><var>12.7</var>(b) "Aquatic invasive species" means nonnative aquatic organisms that invade water <br />
         		<a id="pl.12.8"></a><var>12.8</var>beyond their natural and historic range.<br />
         		<a id="pl.12.9"></a><var>12.9</var>(c) "Watercraft trailer launch" means any public water access site designed for <br />
         		<a id="pl.12.10"></a><var>12.10</var>launching watercraft.<br />
         		<a id="pl.12.11"></a><var>12.11</var>(d) "Watercraft trailer parking space" means a parking space designated for a boat <br />
         		<a id="pl.12.12"></a><var>12.12</var>trailer at any public water access site designed for launching watercraft.<br />
         		<a id="pl.12.13"></a><var>12.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Distribution.</b> The money appropriated to aquatic invasive species <br />
         		<a id="pl.12.14"></a><var>12.14</var>prevention aid under this section shall be allocated to all counties in the state as follows: <br />
         		<a id="pl.12.15"></a><var>12.15</var>50 percent based on each county's share of watercraft trailer launches and 50 percent based <br />
         		<a id="pl.12.16"></a><var>12.16</var>on each county's share of watercraft trailer parking spaces.<br />
         		<a id="pl.12.17"></a><var>12.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Use of proceeds.</b> A county that receives a distribution under this section <br />
         		<a id="pl.12.18"></a><var>12.18</var>must use the proceeds solely to prevent the introduction or limit the spread of aquatic <br />
         		<a id="pl.12.19"></a><var>12.19</var>invasive species at all access sites within the county. The county must establish, by <br />
         		<a id="pl.12.20"></a><var>12.20</var>resolution or through adoption of a plan, guidelines for the use of the proceeds. The <br />
         		<a id="pl.12.21"></a><var>12.21</var>guidelines set by the county board may include, but are not limited to, providing for <br />
         		<a id="pl.12.22"></a><var>12.22</var>site-level management, countywide awareness, and other procedures that the county finds <br />
         		<a id="pl.12.23"></a><var>12.23</var>necessary to achieve compliance. The county may appropriate the proceeds directly, <br />
         		<a id="pl.12.24"></a><var>12.24</var>or may use any portion of the proceeds to provide funding for a joint powers board or <br />
         		<a id="pl.12.25"></a><var>12.25</var>cooperative agreement with another political subdivision, a soil and water conservation <br />
         		<a id="pl.12.26"></a><var>12.26</var>district in the county, a watershed district in the county, or a lake association located <br />
         		<a id="pl.12.27"></a><var>12.27</var>in the county. Any money appropriated by the county to a different entity or political <br />
         		<a id="pl.12.28"></a><var>12.28</var>subdivision must be used as required under this section. Each county must submit a <br />
         		<a id="pl.12.29"></a><var>12.29</var>copy of its guidelines for use of the proceeds to the Department of Natural Resources by <br />
         		<a id="pl.12.30"></a><var>12.30</var>December 31 of the year the payments are received.<br />
         		<a id="pl.12.31"></a><var>12.31</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Payments.</b> The commissioner of revenue must compute the amount of <br />
         		<a id="pl.12.32"></a><var>12.32</var>aquatic invasive species prevention aid payable to each county under this section. On or <br />
         		<a id="pl.12.33"></a><var>12.33</var>before August 1 of each year, the commissioner shall certify the amount to be paid to <br />
         		<a id="pl.12.34"></a><var>12.34</var>each county in the following year. The commissioner shall pay aquatic invasive species <br />
         		<a id="pl.12.35"></a><var>12.35</var>prevention aid to counties annually at the times provided in section 477A.015. For aid <br />
         		<a id="pl.13.1"></a><var>13.1</var>payable in 2014 only, the commissioner shall certify the amount to be paid to each county <br />
         		<a id="pl.13.2"></a><var>13.2</var>by July 1, 2014, and payment to the counties must be made at the time provided in section <br />
         		<a id="pl.13.3"></a><var>13.3</var>477A.015 for the first installment of local government aid.<br />
         		<a id="pl.13.4"></a><var>13.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Appropriation.</b> $4,500,000 in 2014, and $10,000,000 each year thereafter, <br />
         		<a id="pl.13.5"></a><var>13.5</var>is appropriated from the general fund to the commissioner of revenue to make the <br />
         		<a id="pl.13.6"></a><var>13.6</var>payments required under this section.<br />
         		<a id="pl.13.7"></a><var>13.7</var><b>EFFECTIVE DATE.</b>This section is effective beginning with aid payable in 2014.<br />
         		<br />
         		<a id="bill.1.12.0"></a><a id="pl.13.8"></a><var>13.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 12. <b>ADDITIONAL SUPPLEMENTAL AID REVISION FOR OMITTED </b><br />
         		<a id="pl.13.9"></a><var>13.9</var><b>2013 INDEPENDENT NONPROFIT FIREFIGHTING CORPORATIONS.</b><br />
         		<a id="pl.13.10"></a><var>13.10</var>(a) Notwithstanding any provision of Minnesota Statutes, chapter 423A, to the <br />
         		<a id="pl.13.11"></a><var>13.11</var>contrary, this section modifies the allocation of the police and fire supplemental retirement <br />
         		<a id="pl.13.12"></a><var>13.12</var>state aid under Minnesota Statutes 2013 Supplement, section 423A.022, for October <br />
         		<a id="pl.13.13"></a><var>13.13</var>1, 2014.<br />
         		<a id="pl.13.14"></a><var>13.14</var>(b) Before the allocation of the police and fire supplemental retirement state aid is <br />
         		<a id="pl.13.15"></a><var>13.15</var>made for October 1, 2014, the commissioner of revenue shall:<br />
         		<a id="pl.13.16"></a><var>13.16</var>(1) determine those fire departments that qualified for fire state aid under Minnesota <br />
         		<a id="pl.13.17"></a><var>13.17</var>Statutes 2012, section 69.021, subdivision 7, on October 1, 2013, did not receive a 2013 <br />
         		<a id="pl.13.18"></a><var>13.18</var>allocation of police and fire supplemental retirement state aid, and were an independent <br />
         		<a id="pl.13.19"></a><var>13.19</var>nonprofit firefighting corporation; and<br />
         		<a id="pl.13.20"></a><var>13.20</var>(2) determine the amount of police and fire supplemental retirement state aid <br />
         		<a id="pl.13.21"></a><var>13.21</var>under Minnesota Statutes 2013 Supplement, section 423A.022, that the fire departments <br />
         		<a id="pl.13.22"></a><var>13.22</var>described in clause (1) would have received on October 1, 2013, if the fire departments <br />
         		<a id="pl.13.23"></a><var>13.23</var>had been included in that allocation.<br />
         		<a id="pl.13.24"></a><var>13.24</var>(c) The total amount determined in paragraph (b), clause (2), must be deducted from <br />
         		<a id="pl.13.25"></a><var>13.25</var>the amount available for allocation under Minnesota Statutes 2013 Supplement, section <br />
         		<a id="pl.13.26"></a><var>13.26</var>423A.022, subdivision 2, clause (2), and the commissioner of revenue shall pay to the fire <br />
         		<a id="pl.13.27"></a><var>13.27</var>departments determined in paragraph (b), clause (1), their respective portion of the total as <br />
         		<a id="pl.13.28"></a><var>13.28</var>an additional payment on October 1, 2014.<br />
         		<a id="pl.13.29"></a><var>13.29</var>(d) The remaining amount after the deduction of the total amount under paragraph <br />
         		<a id="pl.13.30"></a><var>13.30</var>(c) must be allocated as provided in section 4.<br />
         		<br />
         		<a id="bill.1.13.0"></a><a id="pl.13.31"></a><var>13.31</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 13. <b>SUPPLEMENTAL COUNTY PROGRAM AID FOR 2014.</b><br />
         		<a id="pl.13.32"></a><var>13.32</var>(a) Each county whose certified aid for 2014 under Minnesota Statutes, section <br />
         		<a id="pl.13.33"></a><var>13.33</var>477A.0124, is less than the aid it received under that section in 2013 shall be eligible for <br />
         		<a id="pl.14.1"></a><var>14.1</var>supplemental aid in 2014 equal to the difference between the amount received in 2013 <br />
         		<a id="pl.14.2"></a><var>14.2</var>and the amount certified for 2014.<br />
         		<a id="pl.14.3"></a><var>14.3</var>(b) The aid under this section shall be paid in the same manner and at the same time <br />
         		<a id="pl.14.4"></a><var>14.4</var>as the regular aid payments under Minnesota Statutes, section 477A.0124.<br />
         		<a id="pl.14.5"></a><var>14.5</var>(c) The amount necessary to pay supplemental aid under this section is appropriated <br />
         		<a id="pl.14.6"></a><var>14.6</var>from the general fund to the commissioner of revenue.<br />
         		<a id="pl.14.7"></a><var>14.7</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2014.<br />
         		<br />
         		<a id="bill.1.14.0"></a><a id="pl.14.8"></a><var>14.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 14. <b>SUPPLEMENTAL AGRICULTURAL CREDIT FOR TAXES PAYABLE </b><br />
         		<a id="pl.14.9"></a><var>14.9</var><b>IN 2014 ONLY.</b><br />
         		<a id="pl.14.10"></a><var>14.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Eligibility.</b> Each agricultural homestead qualifying for a credit <br />
         		<a id="pl.14.11"></a><var>14.11</var>for taxes payable in 2014 under Minnesota Statutes, section 273.1384, is eligible for a <br />
         		<a id="pl.14.12"></a><var>14.12</var>supplemental credit equal to the lesser of (i) $205, or (ii) the net property taxes payable on <br />
         		<a id="pl.14.13"></a><var>14.13</var>the property, excluding the taxes attributable to the house, garage, and surrounding one acre <br />
         		<a id="pl.14.14"></a><var>14.14</var>of land. A supplemental credit must not be paid to any property that has delinquent property <br />
         		<a id="pl.14.15"></a><var>14.15</var>taxes. By August 15, 2014, the county auditor must notify the commissioner of revenue of <br />
         		<a id="pl.14.16"></a><var>14.16</var>the name and address of the property owner of each homestead that received an agricultural <br />
         		<a id="pl.14.17"></a><var>14.17</var>credit for taxes payable in 2014, along with the net taxes due upon the agricultural <br />
         		<a id="pl.14.18"></a><var>14.18</var>homestead, whether there are any delinquent taxes on the property, and whatever other <br />
         		<a id="pl.14.19"></a><var>14.19</var>information the commissioner deems necessary, in a form prescribed by the commissioner.<br />
         		<a id="pl.14.20"></a><var>14.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Payment of supplemental credit.</b> The commissioner must pay <br />
         		<a id="pl.14.21"></a><var>14.21</var>supplemental credit amounts to each qualifying taxpayer by October 15, 2014.<br />
         		<a id="pl.14.22"></a><var>14.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Property tax statements for taxes payable in 2015.</b> In preparing <br />
         		<a id="pl.14.23"></a><var>14.23</var>proposed property tax notices for taxes payable in 2015 under Minnesota Statutes, section <br />
         		<a id="pl.14.24"></a><var>14.24</var>275.065, and final property tax statements for taxes payable in 2015 under Minnesota <br />
         		<a id="pl.14.25"></a><var>14.25</var>Statutes, section 276.04, the auditor must indicate that the taxpayer may have received a <br />
         		<a id="pl.14.26"></a><var>14.26</var>supplemental credit under this section for taxes payable in 2014.<br />
         		<a id="pl.14.27"></a><var>14.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Appropriation.</b> The amount necessary to make the payments required <br />
         		<a id="pl.14.28"></a><var>14.28</var>under subdivision 2 is appropriated from the general fund to the commissioner of revenue <br />
         		<a id="pl.14.29"></a><var>14.29</var>for fiscal year 2015.<br />
         		<a id="pl.14.30"></a><var>14.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.1.15.0"></a><a id="pl.14.31"></a><var>14.31</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 15. <b>2013 CITY AID PENALTY FORGIVENESS; CITY OF BLUFFTON.</b><br />
         		<a id="pl.15.1"></a><var>15.1</var>Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of <br />
         		<a id="pl.15.2"></a><var>15.2</var>Bluffton shall receive the half of its aid payments for calendar years 2011, 2012, and <br />
         		<a id="pl.15.3"></a><var>15.3</var>2013 under Minnesota Statutes, section 477A.013, that were withheld under Minnesota <br />
         		<a id="pl.15.4"></a><var>15.4</var>Statutes, section 477A.017, subdivision 3, provided that the state auditor certifies to the <br />
         		<a id="pl.15.5"></a><var>15.5</var>commissioner of revenue that it received audited financial statements from the city for <br />
         		<a id="pl.15.6"></a><var>15.6</var>calendar years 2010, 2011, and 2012 by December 31, 2013, and for calendar year 2013 <br />
         		<a id="pl.15.7"></a><var>15.7</var>by June 30, 2014. The commissioner of revenue shall make a payment of $20,000 with <br />
         		<a id="pl.15.8"></a><var>15.8</var>the first payment of aids under Minnesota Statutes, section 477A.015, in calendar year <br />
         		<a id="pl.15.9"></a><var>15.9</var>2014. The commissioner shall pay the remaining amount, totaling $28,151.50, with the <br />
         		<a id="pl.15.10"></a><var>15.10</var>first payment of aids under Minnesota Statutes, section 477A.015, in calendar year 2015. <br />
         		<a id="pl.15.11"></a><var>15.11</var>$20,000 in fiscal year 2015 and $28,151.50 in fiscal year 2016 are appropriated from the <br />
         		<a id="pl.15.12"></a><var>15.12</var>general fund to the commissioner of revenue to make payments under this section.<br />
         		<a id="pl.15.13"></a><var>15.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.1.16.0"></a><a id="pl.15.14"></a><var>15.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 16. <b>HOMESTEAD CREDIT REFUND AND RENTER PROPERTY TAX </b><br />
         		<a id="pl.15.15"></a><var>15.15</var><b>REFUND INCREASE.</b><br />
         		<a id="pl.15.16"></a><var>15.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Homestead credit refund increase.</b> For claims filed based on taxes <br />
         		<a id="pl.15.17"></a><var>15.17</var>payable in 2014, the commissioner shall increase by three percent the refund otherwise <br />
         		<a id="pl.15.18"></a><var>15.18</var>payable under Minnesota Statutes, section 290A.04, subdivision 2.<br />
         		<a id="pl.15.19"></a><var>15.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Renter property tax refund increase.</b> For claims filed based on rent paid <br />
         		<a id="pl.15.20"></a><var>15.20</var>in 2013, the commissioner shall increase by six percent the refund otherwise payable <br />
         		<a id="pl.15.21"></a><var>15.21</var>under Minnesota Statutes, section 290A.04, subdivision 2a.<br />
         		<a id="pl.15.22"></a><var>15.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>No notification of appeal rights.</b> In adjusting homestead credit refunds <br />
         		<a id="pl.15.23"></a><var>15.23</var>and renter property tax refunds under this section, the commissioner is not required to <br />
         		<a id="pl.15.24"></a><var>15.24</var>provide information concerning appeal rights that ordinarily must be provided whenever <br />
         		<a id="pl.15.25"></a><var>15.25</var>the commissioner adjusts refunds payable under Minnesota Statutes, chapter 290A. <br />
         		<a id="pl.15.26"></a><var>15.26</var>Taxpayers retain all rights to appeal adjustments under this section.<br />
         		<a id="pl.15.27"></a><var>15.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Appropriation.</b> The amount necessary to make the payments required <br />
         		<a id="pl.15.28"></a><var>15.28</var>under this section is appropriated from the general fund to the commissioner of revenue.<br />
         		<a id="pl.15.29"></a><var>15.29</var><b>EFFECTIVE DATE.</b>This section is effective for refund claims based on taxes <br />
         		<a id="pl.15.30"></a><var>15.30</var>payable in 2014 and rent paid in 2013 only.<br />
         		<br />
         		<a id="bill.2.0.0"></a><div class="xtend_ce"><a id="pl.16.1"></a><var>16.1</var><b>ARTICLE 2</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.16.2"></a><var>16.2</var><b>PROPERTY TAXES</b><br />
            		
         </div><br />
         		<a id="bill.2.1.0"></a><a id="pl.16.3"></a><var>16.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. Minnesota Statutes 2013 Supplement, section 144F.01, subdivision 4, <br />
         		<a id="pl.16.4"></a><var>16.4</var>is amended to read:<br />
         		<a id="pl.16.5"></a><var>16.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Property tax levy authority.</b> The district's board may levy a tax on the <br />
         		<a id="pl.16.6"></a><var>16.6</var>taxable real and personal property in the district. The ad valorem tax levy may not exceed <br />
         		<a id="pl.16.7"></a><var>16.7</var>0.048 percent of the estimated market value of the district or $400,000 $550,000, whichever <br />
         		<a id="pl.16.8"></a><var>16.8</var>is less. The proceeds of the levy must be used as provided in subdivision 5. The board shall <br />
         		<a id="pl.16.9"></a><var>16.9</var>certify the levy at the times as provided under section 
         <statute_ref>275.07</statute_ref>. The board shall provide the <br />
         		<a id="pl.16.10"></a><var>16.10</var>county with whatever information is necessary to identify the property that is located within <br />
         		<a id="pl.16.11"></a><var>16.11</var>the district. If the boundaries include a part of a parcel, the entire parcel shall be included <br />
         		<a id="pl.16.12"></a><var>16.12</var>in the district. The county auditors must spread, collect, and distribute the proceeds of the <br />
         		<a id="pl.16.13"></a><var>16.13</var>tax at the same time and in the same manner as provided by law for all other property taxes.<br />
         		<a id="pl.16.14"></a><var>16.14</var><b>EFFECTIVE DATE.</b>This section is effective for assessments in 2015, taxes <br />
         		<a id="pl.16.15"></a><var>16.15</var>payable in 2016, and thereafter.<br />
         		<br />
         		<a id="bill.2.2.0"></a><a id="pl.16.16"></a><var>16.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. Minnesota Statutes 2012, section 272.02, subdivision 10, is amended to read:<br />
         		<a id="pl.16.17"></a><var>16.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 10. <b>Personal property used for pollution control.</b> Personal property used <br />
         		<a id="pl.16.18"></a><var>16.18</var>primarily for the abatement and control of air, water, or land pollution is exempt to the <br />
         		<a id="pl.16.19"></a><var>16.19</var>extent that it is so used, and real property is exempt if it is used primarily for abatement <br />
         		<a id="pl.16.20"></a><var>16.20</var>and control of air, water, or land pollution as part of an agricultural operation, as a part <br />
         		<a id="pl.16.21"></a><var>16.21</var>of a centralized treatment and recovery facility operating under a permit issued by the <br />
         		<a id="pl.16.22"></a><var>16.22</var>Minnesota Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota <br />
         		<a id="pl.16.23"></a><var>16.23</var>Rules, parts 7001.0500 to 7001.0730, and 7045.0020 to 7045.1260, as a wastewater <br />
         		<a id="pl.16.24"></a><var>16.24</var>treatment facility and for the treatment, recovery, and stabilization of metals, oils, <br />
         		<a id="pl.16.25"></a><var>16.25</var>chemicals, water, sludges, or inorganic materials from hazardous industrial wastes, or as <br />
         		<a id="pl.16.26"></a><var>16.26</var>part of an electric generation system. For purposes of this subdivision, personal property <br />
         		<a id="pl.16.27"></a><var>16.27</var>includes ponderous machinery and equipment used in a business or production activity <br />
         		<a id="pl.16.28"></a><var>16.28</var>that at common law is considered real property.<br />
         		<a id="pl.16.29"></a><var>16.29</var>Any taxpayer requesting exemption of all or a portion of any real property or any <br />
         		<a id="pl.16.30"></a><var>16.30</var>equipment or device, or part thereof, operated primarily for the control or abatement of <br />
         		<a id="pl.16.31"></a><var>16.31</var>air, water, or land pollution shall file an application with the commissioner of revenue. <br />
         		<a id="pl.16.32"></a><var>16.32</var>The commissioner shall develop an electronic means to notify interested parties when <br />
         		<a id="pl.16.33"></a><var>16.33</var>electric power generation facilities have filed an application. The Minnesota Pollution <br />
         		<a id="pl.17.1"></a><var>17.1</var>Control Agency shall upon request of the commissioner furnish information and advice to <br />
         		<a id="pl.17.2"></a><var>17.2</var>the commissioner.<br />
         		<a id="pl.17.3"></a><var>17.3</var>The information and advice furnished by the Minnesota Pollution Control <br />
         		<a id="pl.17.4"></a><var>17.4</var>Agency must include statements as to whether the equipment, device, or real property <br />
         		<a id="pl.17.5"></a><var>17.5</var>meets a standard, rule, criteria, guideline, policy, or order of the Minnesota Pollution <br />
         		<a id="pl.17.6"></a><var>17.6</var>Control Agency, and whether the equipment, device, or real property is installed or <br />
         		<a id="pl.17.7"></a><var>17.7</var>operated in accordance with it. On determining that property qualifies for exemption, <br />
         		<a id="pl.17.8"></a><var>17.8</var>the commissioner shall issue an order exempting the property from taxation. The <br />
         		<a id="pl.17.9"></a><var>17.9</var>commissioner shall develop an electronic means to notify interested parties when <br />
         		<a id="pl.17.10"></a><var>17.10</var>the commissioner has issued an order exempting property from taxation under this <br />
         		<a id="pl.17.11"></a><var>17.11</var>subdivision. The equipment, device, or real property shall continue to be exempt from <br />
         		<a id="pl.17.12"></a><var>17.12</var>taxation as long as the order issued by the commissioner remains in effect.<br />
         		<a id="pl.17.13"></a><var>17.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.2.3.0"></a><a id="pl.17.14"></a><var>17.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. Minnesota Statutes 2012, section 272.02, subdivision 24, is amended to read:<br />
         		<a id="pl.17.15"></a><var>17.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 24. <b>Electric power photovoltaic devices</b><b> Solar energy generating systems</b><b>.</b><br />
         		 <a id="pl.17.16"></a><var>17.16</var>Photovoltaic devices Personal property consisting of solar energy generating systems, as <br />
         		<a id="pl.17.17"></a><var>17.17</var>defined in section 
         <statute_ref>216C.06, subdivision 16</statute_ref>, installed after January 1, 1992, and used to <br />
         		<a id="pl.17.18"></a><var>17.18</var>produce or store electric power are 272.0295, is exempt. If the real property upon which a <br />
         		<a id="pl.17.19"></a><var>17.19</var>solar energy generating system is located is used primarily for solar energy production <br />
         		<a id="pl.17.20"></a><var>17.20</var>subject to the production tax under section 272.0295, the real property shall be classified <br />
         		<a id="pl.17.21"></a><var>17.21</var>as class 3a. If the real property upon which a solar energy generating system is located is <br />
         		<a id="pl.17.22"></a><var>17.22</var>not used primarily for solar energy production subject to the production tax under section <br />
         		<a id="pl.17.23"></a><var>17.23</var>272.0295, the real property shall be classified without regard to the system.<br />
         		<a id="pl.17.24"></a><var>17.24</var><b>EFFECTIVE DATE.</b>This section is effective for assessments in 2015, taxes <br />
         		<a id="pl.17.25"></a><var>17.25</var>payable in 2016, and thereafter.<br />
         		<br />
         		<a id="bill.2.4.0"></a><a id="pl.17.26"></a><var>17.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 4. Minnesota Statutes 2012, section 272.02, subdivision 93, is amended to read:<br />
         		<a id="pl.17.27"></a><var>17.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 93. <b>Electric generation facility; personal property.</b> Notwithstanding <br />
         		<a id="pl.17.28"></a><var>17.28</var>subdivision 9, clause (a), attached machinery and other personal property that is part of <br />
         		<a id="pl.17.29"></a><var>17.29</var>a simple-cycle electric generation facility of more than 40 megawatts and less than 125 <br />
         		<a id="pl.17.30"></a><var>17.30</var>megawatts of installed capacity and that meets the requirements of this subdivision is <br />
         		<a id="pl.17.31"></a><var>17.31</var>exempt. At the time of construction, the facility must:<br />
         		<a id="pl.17.32"></a><var>17.32</var>(1) utilize natural gas as a primary fuel;<br />
         		<a id="pl.18.1"></a><var>18.1</var>(2) be located within two miles of parallel existing 36-inch natural gas pipelines and <br />
         		<a id="pl.18.2"></a><var>18.2</var>an existing 115-kilovolt high-voltage electric transmission line;<br />
         		<a id="pl.18.3"></a><var>18.3</var>(3) be designed to provide peaking, emergency backup, or contingency services;<br />
         		<a id="pl.18.4"></a><var>18.4</var>(4) satisfy a resource deficiency identified in an approved integrated resource plan <br />
         		<a id="pl.18.5"></a><var>18.5</var>filed under section 
         <statute_ref>216B.2422</statute_ref>; and<br />
         		<a id="pl.18.6"></a><var>18.6</var>(5) have an agreement with the host county, township, and school district for <br />
         		<a id="pl.18.7"></a><var>18.7</var>payment in lieu of personal property taxes to the host county, township, and school district <br />
         		<a id="pl.18.8"></a><var>18.8</var>for the operating life of the facility. Any amount distributed to the school district is not <br />
         		<a id="pl.18.9"></a><var>18.9</var>subject to the deductions under section 
         <statute_ref>126C.21</statute_ref>.<br />
         		<a id="pl.18.10"></a><var>18.10</var>Construction of the facility must be commenced after January 1, 2010 2015, and <br />
         		<a id="pl.18.11"></a><var>18.11</var>before January 1, 2014 2019. Property eligible for this exemption does not include electric <br />
         		<a id="pl.18.12"></a><var>18.12</var>transmission lines and interconnections or gas pipelines and interconnections appurtenant <br />
         		<a id="pl.18.13"></a><var>18.13</var>to the property or the facility.<br />
         		<a id="pl.18.14"></a><var>18.14</var><b>EFFECTIVE DATE.</b>This section is effective for assessments in 2015, taxes <br />
         		<a id="pl.18.15"></a><var>18.15</var>payable in 2016, and thereafter.<br />
         		<br />
         		<a id="bill.2.5.0"></a><a id="pl.18.16"></a><var>18.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 5. Minnesota Statutes 2012, section 272.0211, subdivision 1, is amended to read:<br />
         		<a id="pl.18.17"></a><var>18.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Efficiency determination and certification.</b> An owner or operator <br />
         		<a id="pl.18.18"></a><var>18.18</var>of a new or existing electric power generation facility, excluding wind energy conversion <br />
         		<a id="pl.18.19"></a><var>18.19</var>systems, may apply to the commissioner of revenue for a market value exclusion on the <br />
         		<a id="pl.18.20"></a><var>18.20</var>property as provided for in this section. This exclusion shall apply only to the market <br />
         		<a id="pl.18.21"></a><var>18.21</var>value of the equipment of the facility, and shall not apply to the structures and the land <br />
         		<a id="pl.18.22"></a><var>18.22</var>upon which the facility is located. The commissioner of revenue shall prescribe the forms <br />
         		<a id="pl.18.23"></a><var>18.23</var>and procedures for this application. Upon receiving the application, the commissioner <br />
         		<a id="pl.18.24"></a><var>18.24</var>of revenue shall: (1)  request the commissioner of commerce to make a determination of <br />
         		<a id="pl.18.25"></a><var>18.25</var>the efficiency of the applicant's electric power generation facility; and (2) shall develop <br />
         		<a id="pl.18.26"></a><var>18.26</var>an electronic means to notify interested parties when electric power generation facilities <br />
         		<a id="pl.18.27"></a><var>18.27</var>have filed an application. The commissioner of commerce shall calculate efficiency as <br />
         		<a id="pl.18.28"></a><var>18.28</var>the ratio of useful energy outputs to energy inputs, expressed as a percentage, based <br />
         		<a id="pl.18.29"></a><var>18.29</var>on the performance of the facility's equipment during normal full load operation. The <br />
         		<a id="pl.18.30"></a><var>18.30</var>commissioner must include in this formula the energy used in any on-site preparation of <br />
         		<a id="pl.18.31"></a><var>18.31</var>materials necessary to convert the materials into the fuel used to generate electricity, such as <br />
         		<a id="pl.18.32"></a><var>18.32</var>a process to gasify petroleum coke. The commissioner shall use the Higher Heating Value <br />
         		<a id="pl.18.33"></a><var>18.33</var>(HHV) for all substances in the commissioner's efficiency calculations, except for wood <br />
         		<a id="pl.18.34"></a><var>18.34</var>for fuel in a biomass-eligible project under section 
         <statute_ref>216B.2424</statute_ref>; for these instances, the <br />
         		<a id="pl.18.35"></a><var>18.35</var>commissioner shall adjust the heating value to allow for energy consumed for evaporation <br />
         		<a id="pl.19.1"></a><var>19.1</var>of the moisture in the wood. The applicant shall provide the commissioner of commerce <br />
         		<a id="pl.19.2"></a><var>19.2</var>with whatever information the commissioner deems necessary to make the determination. <br />
         		<a id="pl.19.3"></a><var>19.3</var>Within 30 days of the receipt of the necessary information, the commissioner of commerce <br />
         		<a id="pl.19.4"></a><var>19.4</var>shall certify the findings of the efficiency determination to the commissioner of revenue <br />
         		<a id="pl.19.5"></a><var>19.5</var>and to the applicant. The commissioner of commerce shall determine the efficiency of the <br />
         		<a id="pl.19.6"></a><var>19.6</var>facility and certify the findings of that determination to the commissioner of revenue every <br />
         		<a id="pl.19.7"></a><var>19.7</var>two years thereafter from the date of the original certification.<br />
         		<a id="pl.19.8"></a><var>19.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.2.6.0"></a><a id="pl.19.9"></a><var>19.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 6. Minnesota Statutes 2012, section 272.0211, subdivision 2, is amended to read:<br />
         		<a id="pl.19.10"></a><var>19.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Sliding scale exclusion.</b> Based upon the efficiency determination provided <br />
         		<a id="pl.19.11"></a><var>19.11</var>by the commissioner of commerce as described in subdivision 1, the commissioner of <br />
         		<a id="pl.19.12"></a><var>19.12</var>revenue shall subtract eight percent of the taxable market value of the qualifying property <br />
         		<a id="pl.19.13"></a><var>19.13</var>for each percentage point that the efficiency of the specific facility, as determined by the <br />
         		<a id="pl.19.14"></a><var>19.14</var>commissioner of commerce, is above 40 percent. The reduction in taxable market value <br />
         		<a id="pl.19.15"></a><var>19.15</var>shall be reflected in the taxable market value of the facility beginning with the assessment <br />
         		<a id="pl.19.16"></a><var>19.16</var>year immediately following the determination. The commissioner shall develop an <br />
         		<a id="pl.19.17"></a><var>19.17</var>electronic means to notify interested parties of the qualifying facilities and their respective <br />
         		<a id="pl.19.18"></a><var>19.18</var>exclusion percentages after the efficiency determination is made by the Department of <br />
         		<a id="pl.19.19"></a><var>19.19</var>Commerce. For a facility that is assessed by the county in which the facility is located, <br />
         		<a id="pl.19.20"></a><var>19.20</var>the commissioner of revenue shall certify to the assessor of that county the percentage <br />
         		<a id="pl.19.21"></a><var>19.21</var>of the taxable market value of the facility to be excluded.<br />
         		<a id="pl.19.22"></a><var>19.22</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.2.7.0"></a><a id="pl.19.23"></a><var>19.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 7. Minnesota Statutes 2012, section 272.0211, subdivision 4, is amended to read:<br />
         		<a id="pl.19.24"></a><var>19.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Eligibility.</b> An owner or operator of a new or existing electric power <br />
         		<a id="pl.19.25"></a><var>19.25</var>generation facility who offers electric power generated by the facility for sale is eligible <br />
         		<a id="pl.19.26"></a><var>19.26</var>for an exclusion under this section only if:<br />
         		<a id="pl.19.27"></a><var>19.27</var>(1) the owner or operator has received a certificate of need under section 
         <statute_ref>216B.243</statute_ref>, <br />
         		<a id="pl.19.28"></a><var>19.28</var>if required under that section;<br />
         		<a id="pl.19.29"></a><var>19.29</var>(2) the public utilities commission finds that an agreement exists or a good faith offer <br />
         		<a id="pl.19.30"></a><var>19.30</var>has been made to sell the majority of the net power generated by the facility to an electric <br />
         		<a id="pl.19.31"></a><var>19.31</var>utility which has a demonstrated need for the power. A right of first refusal satisfies the good <br />
         		<a id="pl.19.32"></a><var>19.32</var>faith offer requirement. The commission shall have 90 days from the date the commission <br />
         		<a id="pl.19.33"></a><var>19.33</var>receives notice of the application under subdivision 1 to make this determination; and<br />
         		<a id="pl.20.1"></a><var>20.1</var>(3) the electric utility has agreed in advance not to offer the electric power for resale <br />
         		<a id="pl.20.2"></a><var>20.2</var>to a retail customer located outside of the utility's assigned service area, or, if the utility is <br />
         		<a id="pl.20.3"></a><var>20.3</var>a generation and transmission cooperative electric association, the assigned service area <br />
         		<a id="pl.20.4"></a><var>20.4</var>of its members, unless otherwise permitted by law; and<br />
         		<a id="pl.20.5"></a><var>20.5</var>(4) for any facility that was not certified as eligible for an exclusion under <br />
         		<a id="pl.20.6"></a><var>20.6</var>subdivision 2 for property taxes payable in 2015, the facility must be converted from <br />
         		<a id="pl.20.7"></a><var>20.7</var>coal to an alternative fuel and must have a nameplate capacity prior to conversion of <br />
         		<a id="pl.20.8"></a><var>20.8</var>less than 75 megawatts.<br />
         		<a id="pl.20.9"></a><var>20.9</var>For the purposes of this subdivision, "electric utility" means an entity whose primary <br />
         		<a id="pl.20.10"></a><var>20.10</var>business function is to operate, maintain, or control equipment or facilities for providing <br />
         		<a id="pl.20.11"></a><var>20.11</var>electric service at retail or wholesale, and includes distribution cooperative electric <br />
         		<a id="pl.20.12"></a><var>20.12</var>associations, generation and transmission cooperative electric associations, municipal <br />
         		<a id="pl.20.13"></a><var>20.13</var>utilities, and public utilities as defined in section 
         <statute_ref>216B.02, subdivision 4</statute_ref>.<br />
         		<a id="pl.20.14"></a><var>20.14</var><b>EFFECTIVE DATE.</b>This is section is effective for assessment year 2015 and <br />
         		<a id="pl.20.15"></a><var>20.15</var>thereafter.<br />
         		<br />
         		<a id="bill.2.8.0"></a><a id="pl.20.16"></a><var>20.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 8. <b>[272.0295] SOLAR ENERGY PRODUCTION TAX.</b><br />
         		<a id="pl.20.17"></a><var>20.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Production tax.</b> A tax is imposed on the production of electricity <br />
         		<a id="pl.20.18"></a><var>20.18</var>from a solar energy generating system used as an electric power source.<br />
         		<a id="pl.20.19"></a><var>20.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Definitions.</b> (a) For the purposes of this section, the term "solar energy <br />
         		<a id="pl.20.20"></a><var>20.20</var>generating system" means a set of devices whose primary purpose is to produce electricity <br />
         		<a id="pl.20.21"></a><var>20.21</var>by means of any combination of collecting, transferring, or converting solar generated <br />
         		<a id="pl.20.22"></a><var>20.22</var>energy.<br />
         		<a id="pl.20.23"></a><var>20.23</var>(b) The total size of a solar energy generating system under this subdivision shall <br />
         		<a id="pl.20.24"></a><var>20.24</var>be determined according to this paragraph. Unless the systems are interconnected with <br />
         		<a id="pl.20.25"></a><var>20.25</var>different distribution systems, the nameplate capacity of a solar energy generating system <br />
         		<a id="pl.20.26"></a><var>20.26</var>shall be combined with the nameplate capacity of any other solar energy generating <br />
         		<a id="pl.20.27"></a><var>20.27</var>system that is:<br />
         		<a id="pl.20.28"></a><var>20.28</var>(1) constructed within the same 12-month period as the solar energy generating <br />
         		<a id="pl.20.29"></a><var>20.29</var>system; and<br />
         		<a id="pl.20.30"></a><var>20.30</var>(2) exhibits characteristics of being a single development, including but not <br />
         		<a id="pl.20.31"></a><var>20.31</var>limited to ownership structure, an umbrella sales arrangement, shared interconnection, <br />
         		<a id="pl.20.32"></a><var>20.32</var>revenue-sharing arrangements, and common debt or equity financing.<br />
         		<a id="pl.20.33"></a><var>20.33</var>In the case of a dispute, the commissioner of commerce shall determine the total size of <br />
         		<a id="pl.20.34"></a><var>20.34</var>the system and shall draw all reasonable inferences in favor of combining the systems.<br />
         		<a id="pl.21.1"></a><var>21.1</var>(c) In making a determination under paragraph (b), the commissioner of commerce <br />
         		<a id="pl.21.2"></a><var>21.2</var>may determine that two solar energy generating systems are under common ownership <br />
         		<a id="pl.21.3"></a><var>21.3</var>when the underlying ownership structure contains similar persons or entities, even if the <br />
         		<a id="pl.21.4"></a><var>21.4</var>ownership shares differ between the two systems. Solar energy generating systems are <br />
         		<a id="pl.21.5"></a><var>21.5</var>not under common ownership solely because the same person or entity provided equity <br />
         		<a id="pl.21.6"></a><var>21.6</var>financing for the systems.<br />
         		<a id="pl.21.7"></a><var>21.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Rate of tax.</b> (a) For a solar energy generating system with a capacity <br />
         		<a id="pl.21.8"></a><var>21.8</var>exceeding one megawatt alternating current, the tax is $1.20 per megawatt-hour.<br />
         		<a id="pl.21.9"></a><var>21.9</var>(b) A solar energy generating system with a capacity of one megawatt alternating <br />
         		<a id="pl.21.10"></a><var>21.10</var>current or less is exempt from the tax imposed under this section.<br />
         		<a id="pl.21.11"></a><var>21.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Reports.</b> An owner of a solar energy generating system subject to tax <br />
         		<a id="pl.21.12"></a><var>21.12</var>under this section shall file a report with the commissioner of revenue annually on or <br />
         		<a id="pl.21.13"></a><var>21.13</var>before January 15 detailing the amount of electricity in megawatt-hours that was produced <br />
         		<a id="pl.21.14"></a><var>21.14</var>by the system in the previous calendar year. The commissioner shall prescribe the form <br />
         		<a id="pl.21.15"></a><var>21.15</var>of the report. The report must contain the information required by the commissioner to <br />
         		<a id="pl.21.16"></a><var>21.16</var>determine the tax due to each county under this section for the current year. If an owner <br />
         		<a id="pl.21.17"></a><var>21.17</var>of a solar energy generating system subject to taxation under this section fails to file the <br />
         		<a id="pl.21.18"></a><var>21.18</var>report by the due date, the commissioner of revenue shall determine the tax based upon <br />
         		<a id="pl.21.19"></a><var>21.19</var>the nameplate capacity of the system multiplied by a capacity factor of 30 percent.<br />
         		<a id="pl.21.20"></a><var>21.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Notification of tax.</b> (a) On or before February 28, the commissioner of <br />
         		<a id="pl.21.21"></a><var>21.21</var>revenue shall notify the owner of each solar energy generating system of the tax due to <br />
         		<a id="pl.21.22"></a><var>21.22</var>each county for the current year and shall certify to the county auditor of each county in <br />
         		<a id="pl.21.23"></a><var>21.23</var>which the system is located the tax due from each owner for the current year.<br />
         		<a id="pl.21.24"></a><var>21.24</var>(b) If the commissioner of revenue determines that the amount of production tax has <br />
         		<a id="pl.21.25"></a><var>21.25</var>been erroneously calculated, the commissioner may correct the error. The commissioner <br />
         		<a id="pl.21.26"></a><var>21.26</var>must notify the owner of the solar energy generating system of the correction and the <br />
         		<a id="pl.21.27"></a><var>21.27</var>amount of tax due to each county and must certify the correction to the county auditor of <br />
         		<a id="pl.21.28"></a><var>21.28</var>each county in which the system is located on or before April 1 of the current year.<br />
         		<a id="pl.21.29"></a><var>21.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <b>Payment of tax; collection.</b> The amount of production tax determined <br />
         		<a id="pl.21.30"></a><var>21.30</var>under subdivision 5 must be paid to the county treasurer at the time and in the manner <br />
         		<a id="pl.21.31"></a><var>21.31</var>provided for payment of property taxes under section 
         <statute_ref>277.01, subdivision 3</statute_ref>, and, if unpaid, <br />
         		<a id="pl.21.32"></a><var>21.32</var>is subject to the same enforcement, collection, and interest and penalties as delinquent <br />
         		<a id="pl.21.33"></a><var>21.33</var>personal property taxes. Except to the extent inconsistent with this section, the provisions <br />
         		<a id="pl.21.34"></a><var>21.34</var>of sections 
         <statute_ref>277.01</statute_ref> to 
         <statute_ref>277.24</statute_ref> and 
         <statute_ref>278.01</statute_ref> to 
         <statute_ref>278.14</statute_ref> apply to the taxes imposed under this <br />
         		<a id="pl.21.35"></a><var>21.35</var>section, and for purposes of those provisions, the taxes imposed under this section are <br />
         		<a id="pl.21.36"></a><var>21.36</var>considered personal property taxes.<br />
         		<a id="pl.22.1"></a><var>22.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Distribution of revenues.</b> Revenues from the taxes imposed under this <br />
         		<a id="pl.22.2"></a><var>22.2</var>section must be part of the settlement between the county treasurer and the county auditor <br />
         		<a id="pl.22.3"></a><var>22.3</var>under section 
         <statute_ref>276.09</statute_ref>. The revenue must be distributed by the county auditor or the county <br />
         		<a id="pl.22.4"></a><var>22.4</var>treasurer to local taxing jurisdictions in which the solar energy generating system is <br />
         		<a id="pl.22.5"></a><var>22.5</var>located as follows: 80 percent to counties; and 20 percent to cities and townships.<br />
         		<a id="pl.22.6"></a><var>22.6</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2015.<br />
         		<br />
         		<a id="bill.2.9.0"></a><a id="pl.22.7"></a><var>22.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 9. Minnesota Statutes 2012, section 272.03, subdivision 1, is amended to read:<br />
         		<a id="pl.22.8"></a><var>22.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Real property.</b> (a) For the purposes of taxation, "real property" <br />
         		<a id="pl.22.9"></a><var>22.9</var>includes the land itself, rails, ties, and other track materials annexed to the land, and all <br />
         		<a id="pl.22.10"></a><var>22.10</var>buildings, structures, and improvements or other fixtures on it, bridges of bridge companies, <br />
         		<a id="pl.22.11"></a><var>22.11</var>and all rights and privileges belonging or appertaining to the land, and all mines, iron ore <br />
         		<a id="pl.22.12"></a><var>22.12</var>and taconite minerals not otherwise exempt, quarries, fossils, and trees on or under it.<br />
         		<a id="pl.22.13"></a><var>22.13</var>(b) A building or structure shall include the building or structure itself, together with <br />
         		<a id="pl.22.14"></a><var>22.14</var>all improvements or fixtures annexed to the building or structure, which are integrated <br />
         		<a id="pl.22.15"></a><var>22.15</var>with and of permanent benefit to the building or structure, regardless of the present use <br />
         		<a id="pl.22.16"></a><var>22.16</var>of the building, and which cannot be removed without substantial damage to itself or to <br />
         		<a id="pl.22.17"></a><var>22.17</var>the building or structure.<br />
         		<a id="pl.22.18"></a><var>22.18</var>(c)(i) Real property does not include tools, implements, machinery, and equipment <br />
         		<a id="pl.22.19"></a><var>22.19</var>attached to or installed in real property for use in the business or production activity <br />
         		<a id="pl.22.20"></a><var>22.20</var>conducted thereon, regardless of size, weight or method of attachment, and mine shafts, <br />
         		<a id="pl.22.21"></a><var>22.21</var>tunnels, and other underground openings used to extract ores and minerals taxed under <br />
         		<a id="pl.22.22"></a><var>22.22</var>chapter 298 together with steel, concrete, and other materials used to support such openings.<br />
         		<a id="pl.22.23"></a><var>22.23</var>(ii) The exclusion provided in clause (i) shall not apply to machinery and equipment <br />
         		<a id="pl.22.24"></a><var>22.24</var>includable as real estate by paragraphs (a) and (b) even though such machinery and <br />
         		<a id="pl.22.25"></a><var>22.25</var>equipment is used in the business or production activity conducted on the real property if <br />
         		<a id="pl.22.26"></a><var>22.26</var>and to the extent such business or production activity consists of furnishing services or <br />
         		<a id="pl.22.27"></a><var>22.27</var>products to other buildings or structures which are subject to taxation under this chapter.<br />
         		<a id="pl.22.28"></a><var>22.28</var>(iii) The exclusion provided in clause (i) does not apply to the exterior shell of a <br />
         		<a id="pl.22.29"></a><var>22.29</var>structure which constitutes walls, ceilings, roofs, or floors if the shell of the structure has <br />
         		<a id="pl.22.30"></a><var>22.30</var>structural, insulation, or temperature control functions or provides protection from the <br />
         		<a id="pl.22.31"></a><var>22.31</var>elements, unless the structure is primarily used in the production of biofuels, wine, beer, <br />
         		<a id="pl.22.32"></a><var>22.32</var>distilled beverages, or dairy products. Such an exterior shell is included in the definition <br />
         		<a id="pl.22.33"></a><var>22.33</var>of real property even if it also has special functions distinct from that of a building, or if <br />
         		<a id="pl.22.34"></a><var>22.34</var>such an exterior shell is primarily used for the storage of ingredients or materials used in <br />
         		<a id="pl.23.1"></a><var>23.1</var>the production of biofuels, wine, beer, distilled beverages, or dairy products, or for the <br />
         		<a id="pl.23.2"></a><var>23.2</var>storage of finished biofuels, wine, beer, distilled beverages, or dairy products.<br />
         		<a id="pl.23.3"></a><var>23.3</var>(d) The term real property does not include tools, implements, machinery, <br />
         		<a id="pl.23.4"></a><var>23.4</var>equipment, poles, lines, cables, wires, conduit, and station connections which are part of a <br />
         		<a id="pl.23.5"></a><var>23.5</var>telephone communications system, regardless of attachment to or installation in real <br />
         		<a id="pl.23.6"></a><var>23.6</var>property and regardless of size, weight, or method of attachment or installation.<br />
         		<a id="pl.23.7"></a><var>23.7</var><b>EFFECTIVE DATE.</b>This section is effective beginning with assessment year 2015.<br />
         		<br />
         		<a id="bill.2.10.0"></a><a id="pl.23.8"></a><var>23.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 10. Minnesota Statutes 2012, section 273.13, subdivision 34, is amended to read:<br />
         		<a id="pl.23.9"></a><var>23.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 34. <b>Homestead of disabled veteran or family caregiver.</b> (a) All or a <br />
         		<a id="pl.23.10"></a><var>23.10</var>portion of the market value of property owned by a veteran and serving as the veteran's <br />
         		<a id="pl.23.11"></a><var>23.11</var>homestead under this section is excluded in determining the property's taxable market <br />
         		<a id="pl.23.12"></a><var>23.12</var>value if the veteran has a service-connected disability of 70 percent or more as certified <br />
         		<a id="pl.23.13"></a><var>23.13</var>by the United States Department of Veterans Affairs. To qualify for exclusion under this <br />
         		<a id="pl.23.14"></a><var>23.14</var>subdivision, the veteran must have been honorably discharged from the United States <br />
         		<a id="pl.23.15"></a><var>23.15</var>armed forces, as indicated by United States Government Form DD214 or other official <br />
         		<a id="pl.23.16"></a><var>23.16</var>military discharge papers.<br />
         		<a id="pl.23.17"></a><var>23.17</var>&nbsp;&nbsp;&nbsp;&nbsp;(b)(1) For a disability rating of 70 percent or more, $150,000 of market value is <br />
         		<a id="pl.23.18"></a><var>23.18</var>excluded, except as provided in clause (2); and<br />
         		<a id="pl.23.19"></a><var>23.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) for a total (100 percent) and permanent disability, $300,000 of market value is <br />
         		<a id="pl.23.20"></a><var>23.20</var>excluded.<br />
         		<a id="pl.23.21"></a><var>23.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b), <br />
         		<a id="pl.23.22"></a><var>23.22</var>clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the spouse <br />
         		<a id="pl.23.23"></a><var>23.23</var>holds the legal or beneficial title to the homestead and permanently resides there, the <br />
         		<a id="pl.23.24"></a><var>23.24</var>exclusion shall carry over to the benefit of the veteran's spouse for the current taxes payable <br />
         		<a id="pl.23.25"></a><var>23.25</var>year and for five eight additional taxes payable years or until such time as the spouse <br />
         		<a id="pl.23.26"></a><var>23.26</var>remarries, or sells, transfers, or otherwise disposes of the property, whichever comes first. <br />
         		<a id="pl.23.27"></a><var>23.27</var>Qualification under this paragraph requires an annual application under paragraph (h).<br />
         		<a id="pl.23.28"></a><var>23.28</var>(d) If the spouse of a member of any branch or unit of the United States armed <br />
         		<a id="pl.23.29"></a><var>23.29</var>forces who dies due to a service-connected cause while serving honorably in active <br />
         		<a id="pl.23.30"></a><var>23.30</var>service, as indicated on United States Government Form DD1300 or DD2064, holds the <br />
         		<a id="pl.23.31"></a><var>23.31</var>legal or beneficial title to a homestead and permanently resides there, the spouse is entitled <br />
         		<a id="pl.23.32"></a><var>23.32</var>to the benefit described in paragraph (b), clause (2), for five eight taxes payable years, <br />
         		<a id="pl.23.33"></a><var>23.33</var>or until such time as the spouse remarries or sells, transfers, or otherwise disposes of the <br />
         		<a id="pl.23.34"></a><var>23.34</var>property, whichever comes first.<br />
         		<a id="pl.24.1"></a><var>24.1</var>(e) If a veteran meets the disability criteria of paragraph (a) but does not own <br />
         		<a id="pl.24.2"></a><var>24.2</var>property classified as homestead in the state of Minnesota, then the homestead of the <br />
         		<a id="pl.24.3"></a><var>24.3</var>veteran's primary family caregiver, if any, is eligible for the exclusion that the veteran <br />
         		<a id="pl.24.4"></a><var>24.4</var>would otherwise qualify for under paragraph (b).<br />
         		<a id="pl.24.5"></a><var>24.5</var>&nbsp;&nbsp;&nbsp;&nbsp;(f) In the case of an agricultural homestead, only the portion of the property <br />
         		<a id="pl.24.6"></a><var>24.6</var>consisting of the house and garage and immediately surrounding one acre of land qualifies <br />
         		<a id="pl.24.7"></a><var>24.7</var>for the valuation exclusion under this subdivision.<br />
         		<a id="pl.24.8"></a><var>24.8</var>&nbsp;&nbsp;&nbsp;&nbsp;(g) A property qualifying for a valuation exclusion under this subdivision is not <br />
         		<a id="pl.24.9"></a><var>24.9</var>eligible for the market value exclusion under subdivision 35, or classification under <br />
         		<a id="pl.24.10"></a><var>24.10</var>subdivision 22, paragraph (b).<br />
         		<a id="pl.24.11"></a><var>24.11</var>&nbsp;&nbsp;&nbsp;&nbsp;(h) To qualify for a valuation exclusion under this subdivision a property owner <br />
         		<a id="pl.24.12"></a><var>24.12</var>must apply to the assessor by July 1 of each assessment year, except that an annual <br />
         		<a id="pl.24.13"></a><var>24.13</var>reapplication is not required once a property has been accepted for a valuation exclusion <br />
         		<a id="pl.24.14"></a><var>24.14</var>under paragraph (a) and qualifies for the benefit described in paragraph (b), clause (2), and <br />
         		<a id="pl.24.15"></a><var>24.15</var>the property continues to qualify until there is a change in ownership. For an application <br />
         		<a id="pl.24.16"></a><var>24.16</var>received after July 1 of any calendar year, the exclusion shall become effective for the <br />
         		<a id="pl.24.17"></a><var>24.17</var>following assessment year.<br />
         		<a id="pl.24.18"></a><var>24.18</var>(i) A first-time application by a qualifying spouse for the market value exclusion under <br />
         		<a id="pl.24.19"></a><var>24.19</var>paragraph (d) must be made any time within two years of the death of the service member.<br />
         		<a id="pl.24.20"></a><var>24.20</var>(j) For purposes of this subdivision:<br />
         		<a id="pl.24.21"></a><var>24.21</var>(1) "active service" has the meaning given in section 
         <statute_ref>190.05</statute_ref>;<br />
         		<a id="pl.24.22"></a><var>24.22</var>(2) "own" means that the person's name is present as an owner on the property deed;<br />
         		<a id="pl.24.23"></a><var>24.23</var>(3) "primary family caregiver" means a person who is approved by the secretary of <br />
         		<a id="pl.24.24"></a><var>24.24</var>the United States Department of Veterans Affairs for assistance as the primary provider <br />
         		<a id="pl.24.25"></a><var>24.25</var>of personal care services for an eligible veteran under the Program of Comprehensive <br />
         		<a id="pl.24.26"></a><var>24.26</var>Assistance for Family Caregivers, codified as United States Code, title 38, section 1720G; <br />
         		<a id="pl.24.27"></a><var>24.27</var>and<br />
         		<a id="pl.24.28"></a><var>24.28</var>(4) "veteran" has the meaning given the term in section 
         <statute_ref>197.447</statute_ref>.<br />
         		<a id="pl.24.29"></a><var>24.29</var>(k) The purpose of this provision of law providing a level of homestead property tax <br />
         		<a id="pl.24.30"></a><var>24.30</var>relief for gravely disabled veterans, their primary family caregivers, and their surviving <br />
         		<a id="pl.24.31"></a><var>24.31</var>spouses is to help ease the burdens of war for those among our state's citizens who bear <br />
         		<a id="pl.24.32"></a><var>24.32</var>those burdens most heavily.<br />
         		<a id="pl.24.33"></a><var>24.33</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2015, and <br />
         		<a id="pl.24.34"></a><var>24.34</var>applies to homesteads that initially qualified for the exclusion for taxes payable in 2009 <br />
         		<a id="pl.24.35"></a><var>24.35</var>and thereafter.<br />
         		<br />
         		<a id="bill.2.11.0"></a><a id="pl.25.1"></a><var>25.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 11. Minnesota Statutes 2012, section 275.065, subdivision 1, is amended to read:<br />
         		<a id="pl.25.2"></a><var>25.2</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Proposed levy.</b> (a) Notwithstanding any law or charter to the <br />
         		<a id="pl.25.3"></a><var>25.3</var>contrary, on or before September 15 30, each taxing authority, other than a school district, <br />
         		<a id="pl.25.4"></a><var>25.4</var>shall adopt a proposed budget and county and each home rule charter or statutory city shall <br />
         		<a id="pl.25.5"></a><var>25.5</var>certify to the county auditor the proposed or, in the case of a town, the final property tax <br />
         		<a id="pl.25.6"></a><var>25.6</var>levy for taxes payable in the following year.<br />
         		<a id="pl.25.7"></a><var>25.7</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding any law or charter to the contrary, on or before September 15, <br />
         		<a id="pl.25.8"></a><var>25.8</var>each town and each special taxing district shall adopt and certify to the county auditor a <br />
         		<a id="pl.25.9"></a><var>25.9</var>proposed property tax levy for taxes payable in the following year. For towns, the final <br />
         		<a id="pl.25.10"></a><var>25.10</var>certified levy shall also be considered the proposed levy.<br />
         		<a id="pl.25.11"></a><var>25.11</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) On or before September 30, each school district that has not mutually agreed <br />
         		<a id="pl.25.12"></a><var>25.12</var>with its home county to extend this date shall certify to the county auditor the proposed <br />
         		<a id="pl.25.13"></a><var>25.13</var>property tax levy for taxes payable in the following year. Each school district that has <br />
         		<a id="pl.25.14"></a><var>25.14</var>agreed with its home county to delay the certification of its proposed property tax levy <br />
         		<a id="pl.25.15"></a><var>25.15</var>must certify its proposed property tax levy for the following year no later than October <br />
         		<a id="pl.25.16"></a><var>25.16</var>7. The school district shall certify the proposed levy as:<br />
         		<a id="pl.25.17"></a><var>25.17</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) a specific dollar amount by school district fund, broken down between <br />
         		<a id="pl.25.18"></a><var>25.18</var>voter-approved and non-voter-approved levies and between referendum market value <br />
         		<a id="pl.25.19"></a><var>25.19</var>and tax capacity levies; or<br />
         		<a id="pl.25.20"></a><var>25.20</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) the maximum levy limitation certified by the commissioner of education <br />
         		<a id="pl.25.21"></a><var>25.21</var>according to section 
         <statute_ref>126C.48, subdivision 1</statute_ref>.<br />
         		<a id="pl.25.22"></a><var>25.22</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) (d) If the board of estimate and taxation or any similar board that establishes <br />
         		<a id="pl.25.23"></a><var>25.23</var>maximum tax levies for taxing jurisdictions within a first class city certifies the maximum <br />
         		<a id="pl.25.24"></a><var>25.24</var>property tax levies for funds under its jurisdiction by charter to the county auditor by <br />
         		<a id="pl.25.25"></a><var>25.25</var>September 15 the date specified in paragraph (a), the city shall be deemed to have certified <br />
         		<a id="pl.25.26"></a><var>25.26</var>its levies for those taxing jurisdictions.<br />
         		<a id="pl.25.27"></a><var>25.27</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) (e) For purposes of this section, "taxing authority" includes all home rule and <br />
         		<a id="pl.25.28"></a><var>25.28</var>statutory cities, towns, counties, school districts, and "special taxing district" means a<br />
         		<a id="pl.25.29"></a><var>25.29</var> special taxing districts district as defined in section 
         <statute_ref>275.066</statute_ref>. Intermediate school districts <br />
         		<a id="pl.25.30"></a><var>25.30</var>that levy a tax under chapter 124 or 136D, joint powers boards established under sections <br />
         		
         <statute_ref><a id="pl.25.31"></a><var>25.31</var>123A.44
         </statute_ref> to 
         <statute_ref>123A.446</statute_ref>, and Common School Districts No. 323, Franconia, and No. 815, <br />
         		<a id="pl.25.32"></a><var>25.32</var>Prinsburg, are also special taxing districts for purposes of this section.<br />
         		<a id="pl.25.33"></a><var>25.33</var>(e) (f) At the meeting at which the a taxing authority, other than a town, adopts its <br />
         		<a id="pl.25.34"></a><var>25.34</var>proposed tax levy under paragraph (a) or (b) this subdivision, the taxing authority shall <br />
         		<a id="pl.25.35"></a><var>25.35</var>announce the time and place of its subsequent regularly scheduled meetings at which <br />
         		<a id="pl.25.36"></a><var>25.36</var>the budget and levy will be discussed and at which the public will be allowed to speak. <br />
         		<a id="pl.26.1"></a><var>26.1</var>The time and place of those meetings must be included in the proceedings or summary <br />
         		<a id="pl.26.2"></a><var>26.2</var>of proceedings published in the official newspaper of the taxing authority under section <br />
         		
         <statute_ref><a id="pl.26.3"></a><var>26.3</var>123B.09
         </statute_ref>, 
         <statute_ref>375.12</statute_ref>, or 
         <statute_ref>412.191</statute_ref>.<br />
         		<a id="pl.26.4"></a><var>26.4</var><b>EFFECTIVE DATE.</b>This section is effective beginning with taxes payable in 2015.<br />
         		<br />
         		<a id="bill.2.12.0"></a><a id="pl.26.5"></a><var>26.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 12. Minnesota Statutes 2012, section 279.03, subdivision 2, is amended to read:<br />
         		<a id="pl.26.6"></a><var>26.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Composite judgment.</b> Amounts included in composite judgments <br />
         		<a id="pl.26.7"></a><var>26.7</var>authorized by section 
         <statute_ref>279.37, subdivision 1</statute_ref>, and confessed on or after July 1, 1982, are <br />
         		<a id="pl.26.8"></a><var>26.8</var>subject to interest at the rate determined pursuant to section 
         <statute_ref>549.09</statute_ref>. Amounts confessed <br />
         		<a id="pl.26.9"></a><var>26.9</var>under this authority after December 31, 1990, (a) Except as provided in paragraph (b), <br />
         		<a id="pl.26.10"></a><var>26.10</var>amounts included in composite judgments authorized by section 279.37, subdivision 1, are <br />
         		<a id="pl.26.11"></a><var>26.11</var>subject to interest at the rate calculated under subdivision 1a. During each calendar year, <br />
         		<a id="pl.26.12"></a><var>26.12</var>interest shall accrue on the unpaid balance of the composite judgment from the time it is <br />
         		<a id="pl.26.13"></a><var>26.13</var>confessed until it is paid. The rate of interest is subject to change each year in the same <br />
         		<a id="pl.26.14"></a><var>26.14</var>manner that section 
         <statute_ref>549.09</statute_ref> or subdivision 1a, whichever is applicable, for rate changes. <br />
         		<a id="pl.26.15"></a><var>26.15</var>Interest on the unpaid contract balance on judgments confessed before July 1, 1982, <br />
         		<a id="pl.26.16"></a><var>26.16</var>is payable at the rate applicable to the judgment at the time that it was confessed. The <br />
         		<a id="pl.26.17"></a><var>26.17</var>interest rate established at the time the judgment is confessed is fixed for the duration of <br />
         		<a id="pl.26.18"></a><var>26.18</var>that judgment.<br />
         		<a id="pl.26.19"></a><var>26.19</var>(b) A confession of judgment covering any part of a parcel classified as 1a or 1b, <br />
         		<a id="pl.26.20"></a><var>26.20</var>and used as the homestead of the owner, is subject to interest at the rate provided in <br />
         		<a id="pl.26.21"></a><var>26.21</var>section 279.37, subdivision 2, paragraph (b). This paragraph does not apply to a relative <br />
         		<a id="pl.26.22"></a><var>26.22</var>homestead under section 273.124, subdivision 1, paragraph (c).<br />
         		<a id="pl.26.23"></a><var>26.23</var><b>EFFECTIVE DATE.</b>This section is effective for confession judgments entered <br />
         		<a id="pl.26.24"></a><var>26.24</var>into on or after January 1, 2015.<br />
         		<br />
         		<a id="bill.2.13.0"></a><a id="pl.26.25"></a><var>26.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 13. Minnesota Statutes 2013 Supplement, section 279.37, subdivision 2, is <br />
         		<a id="pl.26.26"></a><var>26.26</var>amended to read:<br />
         		<a id="pl.26.27"></a><var>26.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Installment payments.</b> (a) The owner of any such parcel, or any person to <br />
         		<a id="pl.26.28"></a><var>26.28</var>whom the right to pay taxes has been given by statute, mortgage, or other agreement, may <br />
         		<a id="pl.26.29"></a><var>26.29</var>make and file with the county auditor of the county in which the parcel is located a written <br />
         		<a id="pl.26.30"></a><var>26.30</var>offer to pay the current taxes each year before they become delinquent, or to contest the <br />
         		<a id="pl.26.31"></a><var>26.31</var>taxes under Minnesota Statutes 1941, sections 
         <statute_ref>278.01</statute_ref> to 
         <statute_ref>278.13</statute_ref>, and agree to confess <br />
         		<a id="pl.26.32"></a><var>26.32</var>judgment for the amount provided, as determined by the county auditor. By filing the <br />
         		<a id="pl.26.33"></a><var>26.33</var>offer, the owner waives all irregularities in connection with the tax proceedings affecting <br />
         		<a id="pl.27.1"></a><var>27.1</var>the parcel and any defense or objection which the owner may have to the proceedings, and <br />
         		<a id="pl.27.2"></a><var>27.2</var>also waives the requirements of any notice of default in the payment of any installment or <br />
         		<a id="pl.27.3"></a><var>27.3</var>interest to become due pursuant to the composite judgment to be so entered. Unless the <br />
         		<a id="pl.27.4"></a><var>27.4</var>property is subject to subdivision 1a, with the offer, the owner shall (i) tender one-tenth of <br />
         		<a id="pl.27.5"></a><var>27.5</var>the amount of the delinquent taxes, costs, penalty, and interest, and (ii) tender all current <br />
         		<a id="pl.27.6"></a><var>27.6</var>year taxes and penalty due at the time the confession of judgment is entered. In the offer, <br />
         		<a id="pl.27.7"></a><var>27.7</var>the owner shall agree to pay the balance in nine equal installments, with interest as provided <br />
         		<a id="pl.27.8"></a><var>27.8</var>in section 
         <statute_ref>279.03</statute_ref>, payable annually on installments remaining unpaid from time to time, on <br />
         		<a id="pl.27.9"></a><var>27.9</var>or before December 31 of each year following the year in which judgment was confessed. <br />
         		<a id="pl.27.10"></a><var>27.10</var>(b) For property which qualifies under section 279.03, subdivision 2, paragraph (b), <br />
         		<a id="pl.27.11"></a><var>27.11</var>each year the commissioner shall set the interest rate for offers made under paragraph (a) <br />
         		<a id="pl.27.12"></a><var>27.12</var>at the greater of five percent or two percent above the prime rate charged by banks during <br />
         		<a id="pl.27.13"></a><var>27.13</var>the six-month period ending on September 30 of that year, rounded to the nearest full <br />
         		<a id="pl.27.14"></a><var>27.14</var>percent, provided that the rate must not exceed the maximum annum rate specified under <br />
         		<a id="pl.27.15"></a><var>27.15</var>section 279.03, subdivision 1a. The rate of interest becomes effective on January 1 of the <br />
         		<a id="pl.27.16"></a><var>27.16</var>immediately succeeding year. The commissioner's determination under this subdivision is <br />
         		<a id="pl.27.17"></a><var>27.17</var>not a rule subject to the Administrative Procedure Act in chapter 14, including section <br />
         		<a id="pl.27.18"></a><var>27.18</var>14.386. If a default occurs in the payments under any confessed judgment entered under <br />
         		<a id="pl.27.19"></a><var>27.19</var>this paragraph, the taxes and penalties due are subject to the interest rate specified in <br />
         		<a id="pl.27.20"></a><var>27.20</var>section 279.03.<br />
         		<a id="pl.27.21"></a><var>27.21</var>For the purposes of this subdivision:<br />
         		<a id="pl.27.22"></a><var>27.22</var>(1) the term "prime rate charged by banks" means the average predominant prime <br />
         		<a id="pl.27.23"></a><var>27.23</var>rate quoted by commercial banks to large businesses, as determined by the Board of <br />
         		<a id="pl.27.24"></a><var>27.24</var>Governors of the Federal Reserve System; and<br />
         		<a id="pl.27.25"></a><var>27.25</var>(2) "default" means the cancellation of the confession of judgment due to <br />
         		<a id="pl.27.26"></a><var>27.26</var>nonpayment of the current year tax or failure to make any installment payment required by <br />
         		<a id="pl.27.27"></a><var>27.27</var>this confessed judgment within 60 days from the date on which payment was due.<br />
         		<a id="pl.27.28"></a><var>27.28</var>(c) The interest rate established at the time judgment is confessed is fixed for the <br />
         		<a id="pl.27.29"></a><var>27.29</var>duration of the judgment. By October 15 of each year, the commissioner of revenue must <br />
         		<a id="pl.27.30"></a><var>27.30</var>determine the rate of interest as provided under paragraph (b) and, by November 1 of each <br />
         		<a id="pl.27.31"></a><var>27.31</var>year, must certify the rate to the county auditor.<br />
         		<a id="pl.27.32"></a><var>27.32</var>(d) A qualified property owner eligible to enter into a second confession of judgment <br />
         		<a id="pl.27.33"></a><var>27.33</var>may do so at the interest rate provided in paragraph (b).<br />
         		<a id="pl.27.34"></a><var>27.34</var>(e) Repurchase agreements or contracts for repurchase for properties being <br />
         		<a id="pl.27.35"></a><var>27.35</var>repurchased under section 282.261 are not eligible to receive the interest rate under <br />
         		<a id="pl.27.36"></a><var>27.36</var>paragraph (b).<br />
         		<a id="pl.28.1"></a><var>28.1</var>(f) The offer must be substantially as follows:<br />
         		<a id="pl.28.2"></a><var>28.2</var>"To the court administrator of the district court of ........... county, I, ....................., <br />
         		<a id="pl.28.3"></a><var>28.3</var>am the owner of the following described parcel of real estate located in .................... <br />
         		<a id="pl.28.4"></a><var>28.4</var>county, Minnesota:<br />
         		<a id="pl.28.5"></a><var>28.5</var>.............................. Upon that real estate there are delinquent taxes for the year ........., and <br />
         		<a id="pl.28.6"></a><var>28.6</var>prior years, as follows: (here insert year of delinquency and the total amount of delinquent <br />
         		<a id="pl.28.7"></a><var>28.7</var>taxes, costs, interest, and penalty). By signing this document I offer to confess judgment in <br />
         		<a id="pl.28.8"></a><var>28.8</var>the sum of $...... and waive all irregularities in the tax proceedings affecting these taxes and <br />
         		<a id="pl.28.9"></a><var>28.9</var>any defense or objection which I may have to them, and direct judgment to be entered for <br />
         		<a id="pl.28.10"></a><var>28.10</var>the amount stated above, minus the sum of $............, to be paid with this document, which <br />
         		<a id="pl.28.11"></a><var>28.11</var>is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and interest stated above. <br />
         		<a id="pl.28.12"></a><var>28.12</var>I agree to pay the balance of the judgment in nine or four equal, annual installments, with <br />
         		<a id="pl.28.13"></a><var>28.13</var>interest as provided in section 
         <statute_ref>279.03</statute_ref>, payable annually, on the installments remaining <br />
         		<a id="pl.28.14"></a><var>28.14</var>unpaid. I agree to pay the installments and interest on or before December 31 of each year <br />
         		<a id="pl.28.15"></a><var>28.15</var>following the year in which this judgment is confessed and current taxes each year before <br />
         		<a id="pl.28.16"></a><var>28.16</var>they become delinquent, or within 30 days after the entry of final judgment in proceedings <br />
         		<a id="pl.28.17"></a><var>28.17</var>to contest the taxes under Minnesota Statutes, sections 
         <statute_ref>278.01</statute_ref> to 
         <statute_ref>278.13</statute_ref>.<br />
         		<a id="pl.28.18"></a><var>28.18</var>Dated .............., ......."<br />
         		<a id="pl.28.19"></a><var>28.19</var><b>EFFECTIVE DATE.</b>This section shall be effective for confession judgments <br />
         		<a id="pl.28.20"></a><var>28.20</var>entered into on or after January 1, 2015.<br />
         		<br />
         		<a id="bill.2.14.0"></a><a id="pl.28.21"></a><var>28.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 14. Minnesota Statutes 2012, section 383E.21, subdivision 1, is amended to read:<br />
         		<a id="pl.28.22"></a><var>28.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Authority to </b><b>levy property taxes and </b><b>incur debt.</b> (a) To finance the <br />
         		<a id="pl.28.23"></a><var>28.23</var>cost of designing, constructing, and acquiring countywide public safety improvements <br />
         		<a id="pl.28.24"></a><var>28.24</var>and equipment, including personal property, benefiting both Anoka County and the <br />
         		<a id="pl.28.25"></a><var>28.25</var>municipalities located within Anoka County, the governing body of Anoka County may<br />
         		<a id="pl.28.26"></a><var>28.26</var> levy property taxes for public safety improvements and equipment, and issue:<br />
         		<a id="pl.28.27"></a><var>28.27</var>(1) capital improvement bonds under the provisions of section 373.40 as if the <br />
         		<a id="pl.28.28"></a><var>28.28</var>infrastructure and equipment qualified as a "capital improvement" within the meaning of <br />
         		<a id="pl.28.29"></a><var>28.29</var>section 373.40, subdivision 1, paragraph (b); and<br />
         		<a id="pl.28.30"></a><var>28.30</var>(2) capital notes under the provisions of section 373.01, subdivision 3, as if the <br />
         		<a id="pl.28.31"></a><var>28.31</var>equipment qualified as "capital equipment" within the meaning of section 373.01, <br />
         		<a id="pl.28.32"></a><var>28.32</var>subdivision 3. Personal property acquired with the proceeds of the bonds or capital <br />
         		<a id="pl.28.33"></a><var>28.33</var>notes issued under this section must have an expected useful life at least as long as the <br />
         		<a id="pl.28.34"></a><var>28.34</var>term of debt.<br />
         		<a id="pl.29.1"></a><var>29.1</var>(b) The outstanding principal amount of the bonds and the capital notes issued under <br />
         		<a id="pl.29.2"></a><var>29.2</var>this section may not exceed $8,000,000 at any time. Any bonds or notes issued pursuant <br />
         		<a id="pl.29.3"></a><var>29.3</var>to this section must only be issued after approval by a majority vote of the Anoka County <br />
         		<a id="pl.29.4"></a><var>29.4</var>Joint Law Enforcement Council, a joint powers board.<br />
         		<a id="pl.29.5"></a><var>29.5</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for taxes payable in <br />
         		<a id="pl.29.6"></a><var>29.6</var>2013 and thereafter and expires under Minnesota Statutes, section 383E.21, subdivision 3.<br />
         		<br />
         		<a id="bill.2.15.0"></a><a id="pl.29.7"></a><var>29.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 15. Minnesota Statutes 2012, section 383E.21, subdivision 2, is amended to read:<br />
         		<a id="pl.29.8"></a><var>29.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Treatment of levy.</b> Notwithstanding sections 275.065, subdivision 3, <br />
         		<a id="pl.29.9"></a><var>29.9</var>and 276.04, the county may report the tax attributable to any levy to fund public safety <br />
         		<a id="pl.29.10"></a><var>29.10</var>capital improvements or equipment projects approved by the Anoka County Joint Law <br />
         		<a id="pl.29.11"></a><var>29.11</var>Enforcement Council or pay principal and interest on bonds or notes issued under this <br />
         		<a id="pl.29.12"></a><var>29.12</var>section as a separate line item on the proposed property tax notice and the property tax <br />
         		<a id="pl.29.13"></a><var>29.13</var>statement. Notwithstanding any provision in chapter 275 or 373 to the contrary, bonds or <br />
         		<a id="pl.29.14"></a><var>29.14</var>notes issued by Anoka County under this section must not be included in the computation <br />
         		<a id="pl.29.15"></a><var>29.15</var>of the net debt of Anoka County.<br />
         		<a id="pl.29.16"></a><var>29.16</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for taxes payable in <br />
         		<a id="pl.29.17"></a><var>29.17</var>2013 and thereafter and expires under Minnesota Statutes, section 383E.21, subdivision 3.<br />
         		<br />
         		<a id="bill.2.16.0"></a><a id="pl.29.18"></a><var>29.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 16. Laws 1999, chapter 243, article 14, section 5, subdivision 1, is amended to read:<br />
         		<a id="pl.29.19"></a><var>29.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Board plan and program.</b> The board shall adopt a comprehensive <br />
         		<a id="pl.29.20"></a><var>29.20</var>plan for the collection, treatment, and disposal of sewage in the district for a designated <br />
         		<a id="pl.29.21"></a><var>29.21</var>period the board deems proper and reasonable. The board shall prepare and adopt <br />
         		<a id="pl.29.22"></a><var>29.22</var>subsequent comprehensive plans for the collection, treatment, and disposal of sewage <br />
         		<a id="pl.29.23"></a><var>29.23</var>in the district for each succeeding designated period as the board deems proper and <br />
         		<a id="pl.29.24"></a><var>29.24</var>reasonable. All comprehensive plans of the district shall be subject to the planning <br />
         		<a id="pl.29.25"></a><var>29.25</var>and zoning authority of Scott county and in conformance with all planning and zoning <br />
         		<a id="pl.29.26"></a><var>29.26</var>ordinances of Scott county. The first plan, as modified by the board, and any subsequent <br />
         		<a id="pl.29.27"></a><var>29.27</var>plan shall take into account the preservation and best and most economic use of water and <br />
         		<a id="pl.29.28"></a><var>29.28</var>other natural resources in the area; the preservation, use, and potential for use of lands <br />
         		<a id="pl.29.29"></a><var>29.29</var>adjoining waters of the state to be used for the disposal of sewage; and the impact the <br />
         		<a id="pl.29.30"></a><var>29.30</var>disposal system will have on present and future land use in the area affected. In no case <br />
         		<a id="pl.29.31"></a><var>29.31</var>shall the comprehensive plan provide for more than 325 364 connections to the disposal <br />
         		<a id="pl.29.32"></a><var>29.32</var>system. All connections must be charged a full assessment. Connections made after the <br />
         		<a id="pl.29.33"></a><var>29.33</var>initial assessment period ends must be charged an amount equal to the initial assessment <br />
         		<a id="pl.30.1"></a><var>30.1</var>plus an adjustment for inflation and plus any other charges determined to be reasonable <br />
         		<a id="pl.30.2"></a><var>30.2</var>and necessary by the board. Deferred assessments may be permitted, as provided for in <br />
         		<a id="pl.30.3"></a><var>30.3</var>Minnesota Statutes, chapter 429. The plans shall include the general location of needed <br />
         		<a id="pl.30.4"></a><var>30.4</var>interceptors and treatment works, a description of the area that is to be served by the <br />
         		<a id="pl.30.5"></a><var>30.5</var>various interceptors and treatment works, a long-range capital improvements program, and <br />
         		<a id="pl.30.6"></a><var>30.6</var>any other details as the board deems appropriate. In developing the plans, the board shall <br />
         		<a id="pl.30.7"></a><var>30.7</var>consult with persons designated for the purpose by governing bodies of any governmental <br />
         		<a id="pl.30.8"></a><var>30.8</var>unit within the district to represent the entities and shall consider the data, resources, and <br />
         		<a id="pl.30.9"></a><var>30.9</var>input offered to the board by the entities and any planning agency acting on behalf of one <br />
         		<a id="pl.30.10"></a><var>30.10</var>or more of the entities. Each plan, when adopted, must be followed in the district and may <br />
         		<a id="pl.30.11"></a><var>30.11</var>be revised as often as the board deems necessary.<br />
         		<a id="pl.30.12"></a><var>30.12</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br />
         		<a id="pl.30.13"></a><var>30.13</var>the Cedar Lake area water and sanitary sewer district and its chief clerical officer timely <br />
         		<a id="pl.30.14"></a><var>30.14</var>complete their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.<br />
         		<br />
         		<a id="bill.2.17.0"></a><a id="pl.30.15"></a><var>30.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 17. <b>HELENA TOWNSHIP, SCOTT COUNTY; REMOVAL OF </b><br />
         		<a id="pl.30.16"></a><var>30.16</var><b>SUBORDINATE SERVICE DISTRICT.</b><br />
         		<a id="pl.30.17"></a><var>30.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Application.</b> This section applies to the subordinate service district <br />
         		<a id="pl.30.18"></a><var>30.18</var>established in Helena Township, Scott County, for the Silver Maple Bay Estates, under <br />
         		<a id="pl.30.19"></a><var>30.19</var>Minnesota Statutes, chapter 365A.<br />
         		<a id="pl.30.20"></a><var>30.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Special provision for removal of the district.</b> Notwithstanding the <br />
         		<a id="pl.30.21"></a><var>30.21</var>requirements of Minnesota Statutes, section 365A.095, subdivision 2, if the district is <br />
         		<a id="pl.30.22"></a><var>30.22</var>removed as provided in Minnesota Statutes, section 365A.095, subdivision 1, after all <br />
         		<a id="pl.30.23"></a><var>30.23</var>outstanding obligations of the district have been paid in full, the town board may vote to <br />
         		<a id="pl.30.24"></a><var>30.24</var>sell or use the surplus of any land or equipment, or the surplus of any tax revenue or service <br />
         		<a id="pl.30.25"></a><var>30.25</var>charge, or any part of it, collected from or associated with the district to connect the owners <br />
         		<a id="pl.30.26"></a><var>30.26</var>of any property within the discontinued district to another public sewer system. Any <br />
         		<a id="pl.30.27"></a><var>30.27</var>surplus not used to connect residents to such sewer system may be distributed equally to <br />
         		<a id="pl.30.28"></a><var>30.28</var>the owners of any property within the discontinued district that were charged the extra tax <br />
         		<a id="pl.30.29"></a><var>30.29</var>or service fee during the most recent tax year for which the tax or service fee was imposed. <br />
         		<a id="pl.30.30"></a><var>30.30</var>Any surplus not refunded under this section must be transferred to the town's general fund.<br />
         		<a id="pl.30.31"></a><var>30.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.2.18.0"></a><a id="pl.30.32"></a><var>30.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 18. <b>CITY OF JACKSON; LIMITATION ON ABATEMENTS.</b><br />
         		<a id="pl.31.1"></a><var>31.1</var>Notwithstanding the provisions of Minnesota Statutes, section 469.1813, subdivision <br />
         		<a id="pl.31.2"></a><var>31.2</var>8, the total amount of property taxes abated by the city of Jackson in any year under <br />
         		<a id="pl.31.3"></a><var>31.3</var>Minnesota Statutes, section 469.1813, may not exceed the greater of (1) ten percent of <br />
         		<a id="pl.31.4"></a><var>31.4</var>the city's net tax capacity for the taxes payable year to which the abatement applies; or <br />
         		<a id="pl.31.5"></a><var>31.5</var>(2) $240,000.<br />
         		<a id="pl.31.6"></a><var>31.6</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2015 through <br />
         		<a id="pl.31.7"></a><var>31.7</var>taxes payable in 2019.<br />
         		<br />
         		<a id="bill.2.19.0"></a><a id="pl.31.8"></a><var>31.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 19. <b>STUDY OF ENERGY PRODUCING SYSTEMS.</b><br />
         		<a id="pl.31.9"></a><var>31.9</var>(a) The commissioner of revenue shall prepare a report on the taxation of electric <br />
         		<a id="pl.31.10"></a><var>31.10</var>energy producing systems in the state of Minnesota, including both traditional and <br />
         		<a id="pl.31.11"></a><var>31.11</var>renewable energy sources. For purposes of this study, traditional sources include coal, <br />
         		<a id="pl.31.12"></a><var>31.12</var>nuclear, and natural gas production and renewable sources include, but are not limited to, <br />
         		<a id="pl.31.13"></a><var>31.13</var>solar, wind, biomass, and hydro.<br />
         		<a id="pl.31.14"></a><var>31.14</var>(b) The report must, to the extent practicable under the appropriation and the time <br />
         		<a id="pl.31.15"></a><var>31.15</var>available:<br />
         		<a id="pl.31.16"></a><var>31.16</var>(1) describe, analyze, and compare the various methods by which the personal and <br />
         		<a id="pl.31.17"></a><var>31.17</var>real property of energy producing systems, using both traditional and renewable energy <br />
         		<a id="pl.31.18"></a><var>31.18</var>sources, are taxed under the property tax;<br />
         		<a id="pl.31.19"></a><var>31.19</var>(2) describe, analyze, and compare the availability of any exclusions, exemptions, <br />
         		<a id="pl.31.20"></a><var>31.20</var>or payment-in-lieu of taxation arrangements that apply to the systems and relative tax <br />
         		<a id="pl.31.21"></a><var>31.21</var>and economic effects of the arrangements; <br />
         		<a id="pl.31.22"></a><var>31.22</var>(3) evaluate the extent to which host political subdivisions and communities are <br />
         		<a id="pl.31.23"></a><var>31.23</var>compensated under the existing Minnesota property tax system for the external costs <br />
         		<a id="pl.31.24"></a><var>31.24</var>that the various types of production facilities impose on the host political subdivisions <br />
         		<a id="pl.31.25"></a><var>31.25</var>and communities;<br />
         		<a id="pl.31.26"></a><var>31.26</var>(4) compare the net cost of property and other taxes per unit of energy produced in <br />
         		<a id="pl.31.27"></a><var>31.27</var>Minnesota compared to its border states, for both traditional and renewable energy sources;<br />
         		<a id="pl.31.28"></a><var>31.28</var>(5) develop and evaluate alternative tax or fee systems for appropriately <br />
         		<a id="pl.31.29"></a><var>31.29</var>compensating host political subdivisions and communities for the external costs imposed <br />
         		<a id="pl.31.30"></a><var>31.30</var>by the facilities; and<br />
         		<a id="pl.31.31"></a><var>31.31</var>(6) make recommendations for the taxation of solar energy producing systems, <br />
         		<a id="pl.31.32"></a><var>31.32</var>including both real and personal property.<br />
         		<a id="pl.31.33"></a><var>31.33</var>(c) The commissioner shall report the findings of the study to the committees of the <br />
         		<a id="pl.31.34"></a><var>31.34</var>house of representatives and senate having jurisdiction over taxes by February 1, 2015, <br />
         		<a id="pl.31.35"></a><var>31.35</var>and file the report as required by Minnesota Statutes, section 3.195.<br />
         		<a id="pl.32.1"></a><var>32.1</var>(d) $150,000 is appropriated from the general fund in fiscal year 2015 to the <br />
         		<a id="pl.32.2"></a><var>32.2</var>commissioner of revenue for purposes of preparing the report under this section. This is a <br />
         		<a id="pl.32.3"></a><var>32.3</var>onetime appropriation and is not added to the base budget.<br />
         		<a id="pl.32.4"></a><var>32.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.2.20.0"></a><a id="pl.32.5"></a><var>32.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 20. <b>STUDY OF NORTH DAKOTA OIL PRODUCTION; IMPACT ON </b><br />
         		<a id="pl.32.6"></a><var>32.6</var><b>MINNESOTA.</b><br />
         		<a id="pl.32.7"></a><var>32.7</var>(a) $250,000 in fiscal year 2015 is appropriated from the general fund to the <br />
         		<a id="pl.32.8"></a><var>32.8</var>commissioner of employment and economic development, in consultation with the <br />
         		<a id="pl.32.9"></a><var>32.9</var>commissioner of revenue and the commissioner of transportation, to finance a study and <br />
         		<a id="pl.32.10"></a><var>32.10</var>analysis of the effects of current and projected oil production in North Dakota on the <br />
         		<a id="pl.32.11"></a><var>32.11</var>Minnesota economy with special focus on the northwestern region of Minnesota and area <br />
         		<a id="pl.32.12"></a><var>32.12</var>border cities as provided in paragraph (b).<br />
         		<a id="pl.32.13"></a><var>32.13</var>(b) The study and analysis must address:<br />
         		<a id="pl.32.14"></a><var>32.14</var>(1) current and projected economic, fiscal, and demographic effects and issues;<br />
         		<a id="pl.32.15"></a><var>32.15</var>(2) direct and indirect costs and benefits and positive and negative effects, including <br />
         		<a id="pl.32.16"></a><var>32.16</var>those upon workforce, taxation, and transportation, including the transportation of <br />
         		<a id="pl.32.17"></a><var>32.17</var>passengers and agricultural products by railroads; and<br />
         		<a id="pl.32.18"></a><var>32.18</var>(3) economic challenges and opportunities for economic growth or diversification.<br />
         		<a id="pl.32.19"></a><var>32.19</var>(c) The study must be objective, evidence-based, and designed to produce empirical <br />
         		<a id="pl.32.20"></a><var>32.20</var>data. Study data must be utilized to formulate policy recommendations on how the state, <br />
         		<a id="pl.32.21"></a><var>32.21</var>the northwestern region of the state, and border cities may respond to the challenges and <br />
         		<a id="pl.32.22"></a><var>32.22</var>opportunities for economic growth and financial investment that may be derived from the <br />
         		<a id="pl.32.23"></a><var>32.23</var>regional economic changes that are the result of oil production in North Dakota.<br />
         		<a id="pl.32.24"></a><var>32.24</var>(d) For the purposes of this section, "border cities" has the meaning given in <br />
         		<a id="pl.32.25"></a><var>32.25</var>Minnesota Statutes, section 469.1731.<br />
         		<a id="pl.32.26"></a><var>32.26</var>(e) The study and analysis must be conducted by an independent entity with <br />
         		<a id="pl.32.27"></a><var>32.27</var>demonstrated knowledge in the following areas:<br />
         		<a id="pl.32.28"></a><var>32.28</var>(1) the economy and demography of Minnesota;<br />
         		<a id="pl.32.29"></a><var>32.29</var>(2) the domestic and foreign oil industry; and <br />
         		<a id="pl.32.30"></a><var>32.30</var>(3) technologies, markets, and geopolitical factors that have an impact on current <br />
         		<a id="pl.32.31"></a><var>32.31</var>and future oil production in the region.<br />
         		<a id="pl.32.32"></a><var>32.32</var>(f) The commissioner shall report on the findings and recommendations of the study <br />
         		<a id="pl.32.33"></a><var>32.33</var>to the committees of the house of representatives and senate having jurisdiction over <br />
         		<a id="pl.32.34"></a><var>32.34</var>economic development, workforce issues, and taxation by February 15, 2015.<br />
         		<a id="pl.33.1"></a><var>33.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.3.0.0"></a><div class="xtend_ce"><a id="pl.33.2"></a><var>33.2</var><b>ARTICLE 3</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.33.3"></a><var>33.3</var><b>SALES, USE, AND EXCISE TAXES</b><br />
            		
         </div><br />
         		<a id="bill.3.1.0"></a><a id="pl.33.4"></a><var>33.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. Minnesota Statutes 2013 Supplement, section 116J.8738, subdivision 2, <br />
         		<a id="pl.33.5"></a><var>33.5</var>is amended to read:<br />
         		<a id="pl.33.6"></a><var>33.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Qualified business.</b> (a) A business is a qualified business if it satisfies the <br />
         		<a id="pl.33.7"></a><var>33.7</var>requirement of this paragraph and is not disqualified under the provisions of paragraph <br />
         		<a id="pl.33.8"></a><var>33.8</var>(b). To qualify, the business must:<br />
         		<a id="pl.33.9"></a><var>33.9</var>(1) have operated its trade or business in a city or cities in greater Minnesota for at <br />
         		<a id="pl.33.10"></a><var>33.10</var>least one year before applying under subdivision 3;<br />
         		<a id="pl.33.11"></a><var>33.11</var>(2) pay or agree to pay in the future each employee compensation, including benefits <br />
         		<a id="pl.33.12"></a><var>33.12</var>not mandated by law, that on an annualized basis equal at least 120 percent of the federal <br />
         		<a id="pl.33.13"></a><var>33.13</var>poverty level for a family of four;<br />
         		<a id="pl.33.14"></a><var>33.14</var>(3) plan and agree to expand its employment in one or more cities in greater Minnesota <br />
         		<a id="pl.33.15"></a><var>33.15</var>by the minimum number of employees required under subdivision 3, paragraph (c); and<br />
         		<a id="pl.33.16"></a><var>33.16</var>(4) have received certification from the commissioner under subdivision 3 that <br />
         		<a id="pl.33.17"></a><var>33.17</var>it is a qualified business.<br />
         		<a id="pl.33.18"></a><var>33.18</var>(b) A business is not a qualified business if it is either:<br />
         		<a id="pl.33.19"></a><var>33.19</var>(1) primarily engaged in making retail sales to purchasers who are physically present <br />
         		<a id="pl.33.20"></a><var>33.20</var>at the business's location or locations in greater Minnesota; or<br />
         		<a id="pl.33.21"></a><var>33.21</var>(2) a public utility, as defined in section 
         <statute_ref>336B.01</statute_ref>; or<br />
         		<a id="pl.33.22"></a><var>33.22</var>(3) primarily engaged in lobbying; gambling; entertainment; professional sports; <br />
         		<a id="pl.33.23"></a><var>33.23</var>political consulting; leisure; hospitality; or professional services provided by attorneys, <br />
         		<a id="pl.33.24"></a><var>33.24</var>accountants, business consultants, physicians, or health care consultants.<br />
         		<a id="pl.33.25"></a><var>33.25</var>(c) The requirements in paragraph (a) that the business's operations and expansion <br />
         		<a id="pl.33.26"></a><var>33.26</var>be located in a city do not apply to an agricultural processing facility.<br />
         		<a id="pl.33.27"></a><var>33.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.3.2.0"></a><a id="pl.33.28"></a><var>33.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. Minnesota Statutes 2013 Supplement, section 116J.8738, subdivision 3, is <br />
         		<a id="pl.33.29"></a><var>33.29</var>amended to read:<br />
         		<a id="pl.33.30"></a><var>33.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Certification of qualified business.</b> (a) A business may apply to the <br />
         		<a id="pl.33.31"></a><var>33.31</var>commissioner for certification as a qualified business under this section. The commissioner <br />
         		<a id="pl.33.32"></a><var>33.32</var>shall specify the form of the application, the manner and times for applying, and the <br />
         		<a id="pl.33.33"></a><var>33.33</var>information required to be included in the application. The commissioner may impose an <br />
         		<a id="pl.33.34"></a><var>33.34</var>application fee in an amount sufficient to defray the commissioner's cost of processing <br />
         		<a id="pl.34.1"></a><var>34.1</var>certifications. A business must file a copy of its application with the chief clerical officer <br />
         		<a id="pl.34.2"></a><var>34.2</var>of the city at the same time it applies to the commissioner. For an agricultural processing <br />
         		<a id="pl.34.3"></a><var>34.3</var>facility located outside the boundaries of a city, the business must file a copy of the <br />
         		<a id="pl.34.4"></a><var>34.4</var>application with the county auditor.<br />
         		<a id="pl.34.5"></a><var>34.5</var>(b) The commissioner shall certify each business as a qualified business that:<br />
         		<a id="pl.34.6"></a><var>34.6</var>(1) satisfies the requirements of subdivision 2;<br />
         		<a id="pl.34.7"></a><var>34.7</var>(2) the commissioner determines would not expand its operations in greater <br />
         		<a id="pl.34.8"></a><var>34.8</var>Minnesota without the tax incentives available under subdivision 4; and<br />
         		<a id="pl.34.9"></a><var>34.9</var>(3) enters a business subsidy agreement with the commissioner that pledges to <br />
         		<a id="pl.34.10"></a><var>34.10</var>satisfy the minimum expansion requirements of paragraph (c) within three years or less <br />
         		<a id="pl.34.11"></a><var>34.11</var>following execution of the agreement.<br />
         		<a id="pl.34.12"></a><var>34.12</var>The commissioner must act on an application within 60 90  days after its filing. <br />
         		<a id="pl.34.13"></a><var>34.13</var>Failure by the commissioner to take action within the 60-day 90-day period is deemed <br />
         		<a id="pl.34.14"></a><var>34.14</var>approval of the application.<br />
         		<a id="pl.34.15"></a><var>34.15</var>(c) The following minimum expansion requirements apply, based on the number of <br />
         		<a id="pl.34.16"></a><var>34.16</var>employees of the business at locations in greater Minnesota:<br />
         		<a id="pl.34.17"></a><var>34.17</var>(1) a business that employs 50 or fewer full-time equivalent employees in greater <br />
         		<a id="pl.34.18"></a><var>34.18</var>Minnesota when the agreement is executed must increase its employment by five or more <br />
         		<a id="pl.34.19"></a><var>34.19</var>full-time equivalent employees;<br />
         		<a id="pl.34.20"></a><var>34.20</var>(2) a business that employs more than 50 but fewer than 200 full-time equivalent <br />
         		<a id="pl.34.21"></a><var>34.21</var>employees in greater Minnesota when the agreement is executed must increase the number <br />
         		<a id="pl.34.22"></a><var>34.22</var>of its full-time equivalent employees in greater Minnesota by at least ten percent; or<br />
         		<a id="pl.34.23"></a><var>34.23</var>(3) a business that employs 200 or more full-time equivalent employees in greater <br />
         		<a id="pl.34.24"></a><var>34.24</var>Minnesota when the agreement is executed must increase its employment by at least 21 <br />
         		<a id="pl.34.25"></a><var>34.25</var>full-time equivalent employees (c) The business must increase the number of full-time <br />
         		<a id="pl.34.26"></a><var>34.26</var>equivalent employees in greater Minnesota from the time the business subsidy agreement <br />
         		<a id="pl.34.27"></a><var>34.27</var>is executed by two employees or ten percent, whichever is greater.<br />
         		<a id="pl.34.28"></a><var>34.28</var>(d) The city, or a county for an agricultural processing facility located outside the <br />
         		<a id="pl.34.29"></a><var>34.29</var>boundaries of a city, in which the business proposes to expand its operations may file <br />
         		<a id="pl.34.30"></a><var>34.30</var>comments supporting or opposing the application with the commissioner. The comments <br />
         		<a id="pl.34.31"></a><var>34.31</var>must be filed within 30 days after receipt by the city of the application and may include a <br />
         		<a id="pl.34.32"></a><var>34.32</var>notice of any contribution the city or county intends to make to encourage or support the <br />
         		<a id="pl.34.33"></a><var>34.33</var>business expansion, such as the use of tax increment financing, property tax abatement, <br />
         		<a id="pl.34.34"></a><var>34.34</var>additional city or county services, or other financial assistance.<br />
         		<a id="pl.34.35"></a><var>34.35</var>(e) Certification of a qualified business is effective for the 12-year seven-year period <br />
         		<a id="pl.34.36"></a><var>34.36</var>beginning on the first day of the calendar month immediately following execution of <br />
         		<a id="pl.35.1"></a><var>35.1</var>the business subsidy agreement the date that the commissioner informs the business of <br />
         		<a id="pl.35.2"></a><var>35.2</var>the award of the benefit.<br />
         		<a id="pl.35.3"></a><var>35.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.3.3.0"></a><a id="pl.35.4"></a><var>35.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. Minnesota Statutes 2013 Supplement, section 116J.8738, subdivision 4, is <br />
         		<a id="pl.35.5"></a><var>35.5</var>amended to read:<br />
         		<a id="pl.35.6"></a><var>35.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Available tax incentives.</b> A qualified business is entitled to a sales tax <br />
         		<a id="pl.35.7"></a><var>35.7</var>exemption, up to $2,000,000 annually and $10,000,000 during the total period of the <br />
         		<a id="pl.35.8"></a><var>35.8</var>agreement, as provided in section 
         <statute_ref>297A.68, subdivision 44</statute_ref>, for purchases made during <br />
         		<a id="pl.35.9"></a><var>35.9</var>the period the business was certified as a qualified business under this section. The <br />
         		<a id="pl.35.10"></a><var>35.10</var>commissioner has discretion to set the maximum amounts of the annual and total sales tax <br />
         		<a id="pl.35.11"></a><var>35.11</var>exemption allowed for each qualifying business as part of the business subsidy agreement.<br />
         		<a id="pl.35.12"></a><var>35.12</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.3.4.0"></a><a id="pl.35.13"></a><var>35.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 4. Minnesota Statutes 2013 Supplement, section 289A.20, subdivision 4, is <br />
         		<a id="pl.35.14"></a><var>35.14</var>amended to read:<br />
         		<a id="pl.35.15"></a><var>35.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Sales and use tax.</b> (a) The taxes imposed by chapter 297A are due and <br />
         		<a id="pl.35.16"></a><var>35.16</var>payable to the commissioner monthly on or before the 20th day of the month following the <br />
         		<a id="pl.35.17"></a><var>35.17</var>month in which the taxable event occurred, or following another reporting period as the <br />
         		<a id="pl.35.18"></a><var>35.18</var>commissioner prescribes or as allowed under section 
         <statute_ref>289A.18, subdivision 4</statute_ref>, paragraph <br />
         		<a id="pl.35.19"></a><var>35.19</var>(f) or (g), except that use taxes due on an annual use tax return as provided under section <br />
         		
         <statute_ref><a id="pl.35.20"></a><var>35.20</var>289A.11, subdivision 1
         </statute_ref>, are payable by April 15 following the close of the calendar year.<br />
         		<a id="pl.35.21"></a><var>35.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) A vendor having a liability of $120,000 $250,000 or more during a fiscal year <br />
         		<a id="pl.35.22"></a><var>35.22</var>ending June 30 must remit the June liability for the next year in the following manner:<br />
         		<a id="pl.35.23"></a><var>35.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) Two business days before June 30 of the year, the vendor must remit 90 81.4<br />
         		<a id="pl.35.24"></a><var>35.24</var> percent of the estimated June liability to the commissioner.<br />
         		<a id="pl.35.25"></a><var>35.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) On or before August 20 of the year, the vendor must pay any additional amount <br />
         		<a id="pl.35.26"></a><var>35.26</var>of tax not remitted in June.<br />
         		<a id="pl.35.27"></a><var>35.27</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) A vendor having a liability of:<br />
         		<a id="pl.35.28"></a><var>35.28</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) $10,000 or more, but less than $120,000 $250,000 during a fiscal year ending <br />
         		<a id="pl.35.29"></a><var>35.29</var>June 30, 2013, and fiscal years thereafter, must remit by electronic means all liabilities <br />
         		<a id="pl.35.30"></a><var>35.30</var>on returns due for periods beginning in all subsequent calendar years on or before the <br />
         		<a id="pl.35.31"></a><var>35.31</var>20th day of the month following the month in which the taxable event occurred, or on <br />
         		<a id="pl.35.32"></a><var>35.32</var>or before the 20th day of the month following the month in which the sale is reported <br />
         		<a id="pl.35.33"></a><var>35.33</var>under section 
         <statute_ref>289A.18, subdivision 4</statute_ref>; or<br />
         		<a id="pl.36.1"></a><var>36.1</var>(2) $120,000 $250,000 or more, during a fiscal year ending June 30, 2009 2013, <br />
         		<a id="pl.36.2"></a><var>36.2</var>and fiscal years thereafter, must remit by electronic means all liabilities in the manner <br />
         		<a id="pl.36.3"></a><var>36.3</var>provided in paragraph (a) on returns due for periods beginning in the subsequent calendar <br />
         		<a id="pl.36.4"></a><var>36.4</var>year, except for 90  81.4 percent of the estimated June liability, which is due two business <br />
         		<a id="pl.36.5"></a><var>36.5</var>days before June 30. The remaining amount of the June liability is due on August 20.<br />
         		<a id="pl.36.6"></a><var>36.6</var>(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's <br />
         		<a id="pl.36.7"></a><var>36.7</var>religious beliefs from paying electronically shall be allowed to remit the payment by mail. <br />
         		<a id="pl.36.8"></a><var>36.8</var>The filer must notify the commissioner of revenue of the intent to pay by mail before <br />
         		<a id="pl.36.9"></a><var>36.9</var>doing so on a form prescribed by the commissioner. No extra fee may be charged to a <br />
         		<a id="pl.36.10"></a><var>36.10</var>person making payment by mail under this paragraph. The payment must be postmarked <br />
         		<a id="pl.36.11"></a><var>36.11</var>at least two business days before the due date for making the payment in order to be <br />
         		<a id="pl.36.12"></a><var>36.12</var>considered paid on a timely basis.<br />
         		<a id="pl.36.13"></a><var>36.13</var><b>EFFECTIVE DATE.</b>This section is effective for taxes remitted after May 30, 2014.<br />
         		<br />
         		<a id="bill.3.5.0"></a><a id="pl.36.14"></a><var>36.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 5. Minnesota Statutes 2012, section 289A.60, subdivision 15, is amended to read:<br />
         		<a id="pl.36.15"></a><var>36.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 15. <b>Accelerated payment of June sales tax liability; penalty for </b><br />
         		<a id="pl.36.16"></a><var>36.16</var><b>underpayment.</b> For payments made after December 31, 2006 2013, if a vendor is <br />
         		<a id="pl.36.17"></a><var>36.17</var>required by law to submit an estimation of June sales tax liabilities and 90 81.4 percent <br />
         		<a id="pl.36.18"></a><var>36.18</var>payment by a certain date, the vendor shall pay a penalty equal to ten percent of the <br />
         		<a id="pl.36.19"></a><var>36.19</var>amount of actual June liability required to be paid in June less the amount remitted in <br />
         		<a id="pl.36.20"></a><var>36.20</var>June. The penalty must not be imposed, however, if the amount remitted in June equals <br />
         		<a id="pl.36.21"></a><var>36.21</var>the lesser of 90 81.4 percent of the preceding May's liability or 90 81.4 percent of the <br />
         		<a id="pl.36.22"></a><var>36.22</var>average monthly liability for the previous calendar year.<br />
         		<a id="pl.36.23"></a><var>36.23</var><b>EFFECTIVE DATE.</b>This section is effective for taxes remitted after May 30, 2014.<br />
         		<br />
         		<a id="bill.3.6.0"></a><a id="pl.36.24"></a><var>36.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 6. Minnesota Statutes 2012, section 297A.67, subdivision 13a, is amended to read:<br />
         		<a id="pl.36.25"></a><var>36.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 13a. <b>Instructional materials.</b> Instructional materials, other than textbooks, <br />
         		<a id="pl.36.26"></a><var>36.26</var>that are prescribed for use in conjunction with a course of study in a postsecondary school, <br />
         		<a id="pl.36.27"></a><var>36.27</var>college, university, or private career school to students who are regularly enrolled at such <br />
         		<a id="pl.36.28"></a><var>36.28</var>institutions are exempt. For purposes of this subdivision, "instructional materials" means <br />
         		<a id="pl.36.29"></a><var>36.29</var>materials required to be used directly in the completion of the course of study, including, <br />
         		<a id="pl.36.30"></a><var>36.30</var>but not limited to, interactive CDs, tapes, digital audio works, digital audiovisual works, <br />
         		<a id="pl.36.31"></a><var>36.31</var>and computer software.<br />
         		<a id="pl.36.32"></a><var>36.32</var>Instructional materials do not include general reference works or other items <br />
         		<a id="pl.36.33"></a><var>36.33</var>incidental to the instructional process such as pens, pencils, paper, folders, or computers. <br />
         		<a id="pl.37.1"></a><var>37.1</var>For purposes of this subdivision, "school" and "private career school" have the meanings <br />
         		<a id="pl.37.2"></a><var>37.2</var>given in subdivision 13.<br />
         		<a id="pl.37.3"></a><var>37.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.3.7.0"></a><a id="pl.37.4"></a><var>37.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 7. Minnesota Statutes 2012, section 297A.67, is amended by adding a subdivision <br />
         		<a id="pl.37.5"></a><var>37.5</var>to read:<br />
         		<a id="pl.37.6"></a><var>37.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 33. <b>Presentations accessed as digital audio and audiovisual works.</b><br />
         		 <a id="pl.37.7"></a><var>37.7</var>The charge for a live or prerecorded presentation, such as a lecture, seminar, <br />
         		<a id="pl.37.8"></a><var>37.8</var>workshop, or course, where participants access the presentation as a digital audio <br />
         		<a id="pl.37.9"></a><var>37.9</var>work or digital audiovisual work, and are connected to the presentation via the <br />
         		<a id="pl.37.10"></a><var>37.10</var>Internet, telecommunications equipment or other device that transfers the presentation <br />
         		<a id="pl.37.11"></a><var>37.11</var>electronically, is exempt if:<br />
         		<a id="pl.37.12"></a><var>37.12</var>(1) participants and the presenter, during the time that participants access the <br />
         		<a id="pl.37.13"></a><var>37.13</var>presentation, are able to give, receive, and discuss the presentation with each other, <br />
         		<a id="pl.37.14"></a><var>37.14</var>although the amount of interaction and when in the presentation the interaction occurs <br />
         		<a id="pl.37.15"></a><var>37.15</var>may be limited by the presenter; and<br />
         		<a id="pl.37.16"></a><var>37.16</var>(2) for those presentations where participants are given the option to attend the <br />
         		<a id="pl.37.17"></a><var>37.17</var>same presentation in person:<br />
         		<a id="pl.37.18"></a><var>37.18</var>(i) any limitations on the amount of interaction and when it occurs during the <br />
         		<a id="pl.37.19"></a><var>37.19</var>presentation are the same for those participants accessing the presentation electronically <br />
         		<a id="pl.37.20"></a><var>37.20</var>as those attending in person; and<br />
         		<a id="pl.37.21"></a><var>37.21</var>(ii) the admission to the in person presentation is not subject to tax under this chapter.<br />
         		<a id="pl.37.22"></a><var>37.22</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br />
         		<a id="pl.37.23"></a><var>37.23</var>June 30, 2014.<br />
         		<br />
         		<a id="bill.3.8.0"></a><a id="pl.37.24"></a><var>37.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 8. Minnesota Statutes 2012, section 297A.68, is amended by adding a subdivision <br />
         		<a id="pl.37.25"></a><var>37.25</var>to read:<br />
         		<a id="pl.37.26"></a><var>37.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3a. <b>Coin-operated entertainment and amusement devices.</b>  Coin-operated <br />
         		<a id="pl.37.27"></a><var>37.27</var>entertainment and amusement devices including, but not limited to, fortune-telling <br />
         		<a id="pl.37.28"></a><var>37.28</var>machines, cranes, foosball and pool tables, video and pinball games, batting cages, rides, <br />
         		<a id="pl.37.29"></a><var>37.29</var>photo or video booths, and jukeboxes, are exempt when purchased by retailers selling <br />
         		<a id="pl.37.30"></a><var>37.30</var>admission to places of amusement and making available amusement devices as provided <br />
         		<a id="pl.37.31"></a><var>37.31</var>in section 297A.61, subdivision 3, paragraph (g), clause (1). Coin-operated entertainment <br />
         		<a id="pl.37.32"></a><var>37.32</var>and amusement devices do not include vending machines, lottery devices, or gaming <br />
         		<a id="pl.37.33"></a><var>37.33</var>devices as described in chapters 297E and 349.<br />
         		<a id="pl.38.1"></a><var>38.1</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br />
         		<a id="pl.38.2"></a><var>38.2</var>June 30, 2014.<br />
         		<br />
         		<a id="bill.3.9.0"></a><a id="pl.38.3"></a><var>38.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 9. Minnesota Statutes 2013 Supplement, section 297A.68, subdivision 42, is <br />
         		<a id="pl.38.4"></a><var>38.4</var>amended to read:<br />
         		<a id="pl.38.5"></a><var>38.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 42. <b>Qualified data centers.</b> (a) Purchases of enterprise information <br />
         		<a id="pl.38.6"></a><var>38.6</var>technology equipment and computer software for use in a qualified data center, or a <br />
         		<a id="pl.38.7"></a><var>38.7</var>qualified refurbished data center, are exempt, except that computer software maintenance <br />
         		<a id="pl.38.8"></a><var>38.8</var>agreements are exempt for purchases made after June 30, 2013. The tax on purchases <br />
         		<a id="pl.38.9"></a><var>38.9</var>exempt under this paragraph must be imposed and collected as if the rate under section <br />
         		
         <statute_ref><a id="pl.38.10"></a><var>38.10</var>297A.62, subdivision 1
         </statute_ref>, applied, and then refunded after June 30, 2013, in the manner <br />
         		<a id="pl.38.11"></a><var>38.11</var>provided in section 
         <statute_ref>297A.75</statute_ref>. This exemption includes enterprise information technology <br />
         		<a id="pl.38.12"></a><var>38.12</var>equipment and computer software purchased to replace or upgrade enterprise information <br />
         		<a id="pl.38.13"></a><var>38.13</var>technology equipment and computer software in a qualified data center, or a qualified <br />
         		<a id="pl.38.14"></a><var>38.14</var>refurbished data center.<br />
         		<a id="pl.38.15"></a><var>38.15</var>(b) Electricity used or consumed in the operation of a qualified data center or <br />
         		<a id="pl.38.16"></a><var>38.16</var>qualified refurbished data center is exempt.<br />
         		<a id="pl.38.17"></a><var>38.17</var>(c) For purposes of this subdivision, "qualified data center, or a qualified refurbished <br />
         		<a id="pl.38.18"></a><var>38.18</var>data center, " means a facility in Minnesota:<br />
         		<a id="pl.38.19"></a><var>38.19</var>(1) that is comprised of one or more buildings that consist in the aggregate of <br />
         		<a id="pl.38.20"></a><var>38.20</var>at least 25,000 square feet, and that are located on a single parcel or on contiguous <br />
         		<a id="pl.38.21"></a><var>38.21</var>parcels, where the total cost of construction or refurbishment, investment in enterprise <br />
         		<a id="pl.38.22"></a><var>38.22</var>information technology equipment, and computer software is at least $30,000,000 within a <br />
         		<a id="pl.38.23"></a><var>38.23</var>48-month period. The 48-month period begins no sooner than July 1, 2012, except that <br />
         		<a id="pl.38.24"></a><var>38.24</var>costs for computer software maintenance agreements purchased before July 1, 2013, are <br />
         		<a id="pl.38.25"></a><var>38.25</var>not included in determining if the $30,000,000 threshold has been met;<br />
         		<a id="pl.38.26"></a><var>38.26</var>(2) that is constructed or substantially refurbished after June 30, 2012, where <br />
         		<a id="pl.38.27"></a><var>38.27</var>"substantially refurbished" means that at least 25,000 square feet have been rebuilt or <br />
         		<a id="pl.38.28"></a><var>38.28</var>modified, including:<br />
         		<a id="pl.38.29"></a><var>38.29</var>(i) installation of enterprise information technology equipment,; environmental <br />
         		<a id="pl.38.30"></a><var>38.30</var>control, computer software, and energy efficiency improvements; and<br />
         		<a id="pl.38.31"></a><var>38.31</var>(ii) building improvements; and<br />
         		<a id="pl.38.32"></a><var>38.32</var>(3) that is used to house enterprise information technology equipment, where the <br />
         		<a id="pl.38.33"></a><var>38.33</var>facility has the following characteristics:<br />
         		<a id="pl.38.34"></a><var>38.34</var>(i) uninterruptible power supplies, generator backup power, or both;<br />
         		<a id="pl.38.35"></a><var>38.35</var>(ii) sophisticated fire suppression and prevention systems; and<br />
         		<a id="pl.39.1"></a><var>39.1</var>(iii) enhanced security. A facility will be considered to have enhanced security if it <br />
         		<a id="pl.39.2"></a><var>39.2</var>has restricted access to the facility to selected personnel; permanent security guards; video <br />
         		<a id="pl.39.3"></a><var>39.3</var>camera surveillance; an electronic system requiring pass codes, keycards, or biometric <br />
         		<a id="pl.39.4"></a><var>39.4</var>scans, such as hand scans and retinal or fingerprint recognition; or similar security features.<br />
         		<a id="pl.39.5"></a><var>39.5</var>In determining whether the facility has the required square footage, the square footage <br />
         		<a id="pl.39.6"></a><var>39.6</var>of the following spaces shall be included if the spaces support the operation of enterprise <br />
         		<a id="pl.39.7"></a><var>39.7</var>information technology equipment: office space, meeting space, and mechanical and <br />
         		<a id="pl.39.8"></a><var>39.8</var>other support facilities. For purposes of this subdivision, "computer software" includes, <br />
         		<a id="pl.39.9"></a><var>39.9</var>but is not limited to, software utilized or loaded at the a qualified data center or qualified <br />
         		<a id="pl.39.10"></a><var>39.10</var>refurbished data center, including maintenance, licensing, and software customization.<br />
         		<a id="pl.39.11"></a><var>39.11</var>(d) For purposes of this subdivision, a "qualified refurbished data center" means an <br />
         		<a id="pl.39.12"></a><var>39.12</var>existing facility that qualifies as a data center under paragraph (c), clauses (2) and (3), but <br />
         		<a id="pl.39.13"></a><var>39.13</var>that is comprised of one or more buildings that consist in the aggregate of at least 25,000 <br />
         		<a id="pl.39.14"></a><var>39.14</var>square feet, and that are located on a single parcel or contiguous parcels, where the total <br />
         		<a id="pl.39.15"></a><var>39.15</var>cost of construction or refurbishment, investment in enterprise information technology <br />
         		<a id="pl.39.16"></a><var>39.16</var>equipment, and computer software is at least $50,000,000 within a 24-month period.<br />
         		<a id="pl.39.17"></a><var>39.17</var>(e) For purposes of this subdivision, "enterprise information technology equipment" <br />
         		<a id="pl.39.18"></a><var>39.18</var>means computers and equipment supporting computing, networking, or data storage, <br />
         		<a id="pl.39.19"></a><var>39.19</var>including servers and routers. It includes, but is not limited to: cooling systems, <br />
         		<a id="pl.39.20"></a><var>39.20</var>cooling towers, and other temperature control infrastructure; power infrastructure for <br />
         		<a id="pl.39.21"></a><var>39.21</var>transformation, distribution, or management of electricity used for the maintenance and <br />
         		<a id="pl.39.22"></a><var>39.22</var>operation of a qualified data center or qualified refurbished data center, including but <br />
         		<a id="pl.39.23"></a><var>39.23</var>not limited to exterior dedicated business-owned substations, backup power generation <br />
         		<a id="pl.39.24"></a><var>39.24</var>systems, battery systems, and related infrastructure; and racking systems, cabling, and <br />
         		<a id="pl.39.25"></a><var>39.25</var>trays, which are necessary for the a maintenance and operation of the qualified data center <br />
         		<a id="pl.39.26"></a><var>39.26</var>or qualified refurbished data center.<br />
         		<a id="pl.39.27"></a><var>39.27</var>(f) A qualified data center or qualified refurbished data center may claim the <br />
         		<a id="pl.39.28"></a><var>39.28</var>exemptions in this subdivision for purchases made either within 20 years of the date of <br />
         		<a id="pl.39.29"></a><var>39.29</var>its first purchase qualifying for the exemption under paragraph (a), or by June 30, 2042, <br />
         		<a id="pl.39.30"></a><var>39.30</var>whichever is earlier.<br />
         		<a id="pl.39.31"></a><var>39.31</var>(g) The purpose of this exemption is to create jobs in the construction and data <br />
         		<a id="pl.39.32"></a><var>39.32</var>center industries.<br />
         		<a id="pl.39.33"></a><var>39.33</var>(h) This subdivision is effective for sales and purchases made after June 30, 2012, <br />
         		<a id="pl.39.34"></a><var>39.34</var>and before July 1, 2042.<br />
         		<a id="pl.39.35"></a><var>39.35</var>(i)(1) The commissioner of employment and economic development must certify <br />
         		<a id="pl.39.36"></a><var>39.36</var>to the commissioner of revenue, in a format approved by the commissioner of revenue, <br />
         		<a id="pl.40.1"></a><var>40.1</var>when a qualified data center has met the requirements under paragraph (c) or a qualified <br />
         		<a id="pl.40.2"></a><var>40.2</var>refurbished data center has met the requirements under paragraph (d). The certification <br />
         		<a id="pl.40.3"></a><var>40.3</var>must provide the following information regarding each qualified data center or qualified <br />
         		<a id="pl.40.4"></a><var>40.4</var>refurbished data center:<br />
         		<a id="pl.40.5"></a><var>40.5</var>(i) the total square footage amount;<br />
         		<a id="pl.40.6"></a><var>40.6</var>(ii) the total amount of construction or refurbishment costs and the total amount of <br />
         		<a id="pl.40.7"></a><var>40.7</var>qualifying investments in enterprise information technology equipment and computer <br />
         		<a id="pl.40.8"></a><var>40.8</var>software; and<br />
         		<a id="pl.40.9"></a><var>40.9</var>(iii) the beginning and ending of the applicable period under either paragraph (c) or <br />
         		<a id="pl.40.10"></a><var>40.10</var>(d) in which the qualifying expenditures and purchases under item (ii) were made, but in <br />
         		<a id="pl.40.11"></a><var>40.11</var>no case shall the period begin before July 1, 2012; <br />
         		<a id="pl.40.12"></a><var>40.12</var>(2) Any refund for sales tax paid on qualifying purchases under this subdivision must <br />
         		<a id="pl.40.13"></a><var>40.13</var>not be issued unless the commissioner of revenue has received the certification required <br />
         		<a id="pl.40.14"></a><var>40.14</var>under clause (1) either from the commissioner of employment and economic development <br />
         		<a id="pl.40.15"></a><var>40.15</var>or the qualified data center or qualified refurbished data center claiming the refund; and<br />
         		<a id="pl.40.16"></a><var>40.16</var>(3) The commissioner of employment and economic development must annually <br />
         		<a id="pl.40.17"></a><var>40.17</var>notify the commissioner of revenue of the qualified data centers that are projected to meet <br />
         		<a id="pl.40.18"></a><var>40.18</var>the requirements under paragraph (c) and the qualified refurbished data centers that are <br />
         		<a id="pl.40.19"></a><var>40.19</var>projected to meet the requirements under paragraph (d) in each of the next four years. The <br />
         		<a id="pl.40.20"></a><var>40.20</var>notification must provide the information required under clause (1), items (i) to (iii), for <br />
         		<a id="pl.40.21"></a><var>40.21</var>each qualified data center or qualified refurbished data center.<br />
         		<a id="pl.40.22"></a><var>40.22</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.3.10.0"></a><a id="pl.40.23"></a><var>40.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 10. Minnesota Statutes 2013 Supplement, section 297A.68, subdivision 44, <br />
         		<a id="pl.40.24"></a><var>40.24</var>is amended to read:<br />
         		<a id="pl.40.25"></a><var>40.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 44. <b>Greater Minnesota business expansions.</b> (a) Purchases and use of <br />
         		<a id="pl.40.26"></a><var>40.26</var>tangible personal property or taxable services by a qualified business, as defined in section <br />
         		
         <statute_ref><a id="pl.40.27"></a><var>40.27</var>116J.8738
         </statute_ref>, are exempt if:<br />
         		<a id="pl.40.28"></a><var>40.28</var>(1) the business subsidy agreement provides that the exemption under this <br />
         		<a id="pl.40.29"></a><var>40.29</var>subdivision applies;<br />
         		<a id="pl.40.30"></a><var>40.30</var>(2) the property or services are primarily used or consumed at the facility in greater <br />
         		<a id="pl.40.31"></a><var>40.31</var>Minnesota identified in the business subsidy agreement; and<br />
         		<a id="pl.40.32"></a><var>40.32</var>(3) the purchase was made and delivery received during the duration of the <br />
         		<a id="pl.40.33"></a><var>40.33</var>certification of the business as a qualified business under section 
         <statute_ref>116J.8738</statute_ref>.<br />
         		<a id="pl.40.34"></a><var>40.34</var>(b) Purchase and use of construction materials and supplies used or consumed in, <br />
         		<a id="pl.40.35"></a><var>40.35</var>and equipment incorporated into, the construction of improvements to real property in <br />
         		<a id="pl.41.1"></a><var>41.1</var>greater Minnesota are exempt if the improvements after completion of construction are <br />
         		<a id="pl.41.2"></a><var>41.2</var>to be used in the conduct of the trade or business of the qualified business, as defined in <br />
         		<a id="pl.41.3"></a><var>41.3</var>section 
         <statute_ref>116J.8738</statute_ref>. This exemption applies regardless of whether the purchases are made <br />
         		<a id="pl.41.4"></a><var>41.4</var>by the business or a contractor.<br />
         		<a id="pl.41.5"></a><var>41.5</var>(c) The exemptions under this subdivision apply to a local sales and use tax.<br />
         		<a id="pl.41.6"></a><var>41.6</var>(d) The tax on purchases imposed under this subdivision must be imposed and <br />
         		<a id="pl.41.7"></a><var>41.7</var>collected as if the rate under section 
         <statute_ref>297A.62</statute_ref> applied, and then refunded in the manner <br />
         		<a id="pl.41.8"></a><var>41.8</var>provided in section 
         <statute_ref>297A.75</statute_ref>. The total amount refunded for a facility over the certification <br />
         		<a id="pl.41.9"></a><var>41.9</var>period is limited to the amount listed in the business subsidy agreement. No more than <br />
         		<a id="pl.41.10"></a><var>41.10</var>$7,000,000 may be refunded in a fiscal year for all purchases under this subdivision. <br />
         		<a id="pl.41.11"></a><var>41.11</var>Refunds must be allocated on a first-come, first-served basis. If more than $7,000,000 of <br />
         		<a id="pl.41.12"></a><var>41.12</var>eligible claims are made in a fiscal year, claims by qualified businesses carry over to the <br />
         		<a id="pl.41.13"></a><var>41.13</var>next fiscal year, and the commissioner must first allocate refunds to qualified businesses <br />
         		<a id="pl.41.14"></a><var>41.14</var>eligible for a refund in the preceding fiscal year. Any portion of the balance of funds <br />
         		<a id="pl.41.15"></a><var>41.15</var>allocated for refunds under this paragraph does not cancel and shall be carried forward to <br />
         		<a id="pl.41.16"></a><var>41.16</var>and available for refunds in subsequent fiscal years. Notwithstanding section 297A.75, <br />
         		<a id="pl.41.17"></a><var>41.17</var>subdivision 4, for an eligible refund claim that carries over to a subsequent fiscal year, the <br />
         		<a id="pl.41.18"></a><var>41.18</var>interest on the amount carried over must be paid on the refund no sooner than from 90 <br />
         		<a id="pl.41.19"></a><var>41.19</var>days after July 1 of the fiscal year in which funds are available for the eligible claim.<br />
         		<a id="pl.41.20"></a><var>41.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.3.11.0"></a><a id="pl.41.21"></a><var>41.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 11. Minnesota Statutes 2013 Supplement, section 297A.70, subdivision 2, is <br />
         		<a id="pl.41.22"></a><var>41.22</var>amended to read:<br />
         		<a id="pl.41.23"></a><var>41.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Sales to government.</b> (a) All sales, except those listed in paragraph (b), <br />
         		<a id="pl.41.24"></a><var>41.24</var>to the following governments and political subdivisions, or to the listed agencies or <br />
         		<a id="pl.41.25"></a><var>41.25</var>instrumentalities of governments and political subdivisions, are exempt:<br />
         		<a id="pl.41.26"></a><var>41.26</var>(1) the United States and its agencies and instrumentalities;<br />
         		<a id="pl.41.27"></a><var>41.27</var>(2) school districts, local governments, the University of Minnesota, state universities, <br />
         		<a id="pl.41.28"></a><var>41.28</var>community colleges, technical colleges, state academies, the Perpich Minnesota Center for <br />
         		<a id="pl.41.29"></a><var>41.29</var>Arts Education, and an instrumentality of a political subdivision that is accredited as an <br />
         		<a id="pl.41.30"></a><var>41.30</var>optional/special function school by the North Central Association of Colleges and Schools;<br />
         		<a id="pl.41.31"></a><var>41.31</var>(3) hospitals and nursing homes owned and operated by political subdivisions of <br />
         		<a id="pl.41.32"></a><var>41.32</var>the state of tangible personal property and taxable services used at or by hospitals and <br />
         		<a id="pl.41.33"></a><var>41.33</var>nursing homes;<br />
         		<a id="pl.42.1"></a><var>42.1</var>(4) notwithstanding paragraph (d), the sales and purchases by the Metropolitan <br />
         		<a id="pl.42.2"></a><var>42.2</var>Council, for its purchases of vehicles and repair parts to equip operations provided for in <br />
         		<a id="pl.42.3"></a><var>42.3</var>section 
         <statute_ref>473.4051</statute_ref> are exempt through December 31, 2016;<br />
         		<a id="pl.42.4"></a><var>42.4</var>(5) other states or political subdivisions of other states, if the sale would be exempt <br />
         		<a id="pl.42.5"></a><var>42.5</var>from taxation if it occurred in that state; and<br />
         		<a id="pl.42.6"></a><var>42.6</var>(6) public libraries, public library systems, multicounty, multitype library systems <br />
         		<a id="pl.42.7"></a><var>42.7</var>as defined in section 
         <statute_ref>134.001</statute_ref>, county law libraries under chapter 134A, state agency <br />
         		<a id="pl.42.8"></a><var>42.8</var>libraries, the state library under section 
         <statute_ref>480.09</statute_ref>, and the Legislative Reference Library.<br />
         		<a id="pl.42.9"></a><var>42.9</var>(b) This exemption does not apply to the sales of the following products and services:<br />
         		<a id="pl.42.10"></a><var>42.10</var>(1) building, construction, or reconstruction materials purchased by a contractor <br />
         		<a id="pl.42.11"></a><var>42.11</var>or a subcontractor as a part of a lump-sum contract or similar type of contract with a <br />
         		<a id="pl.42.12"></a><var>42.12</var>guaranteed maximum price covering both labor and materials for use in the construction, <br />
         		<a id="pl.42.13"></a><var>42.13</var>alteration, or repair of a building or facility;<br />
         		<a id="pl.42.14"></a><var>42.14</var>(2) construction materials purchased by tax exempt entities or their contractors to <br />
         		<a id="pl.42.15"></a><var>42.15</var>be used in constructing buildings or facilities which will not be used principally by the <br />
         		<a id="pl.42.16"></a><var>42.16</var>tax exempt entities;<br />
         		<a id="pl.42.17"></a><var>42.17</var>(3) the leasing of a motor vehicle as defined in section 
         <statute_ref>297B.01, subdivision 11</statute_ref>, <br />
         		<a id="pl.42.18"></a><var>42.18</var>except for leases entered into by the United States or its agencies or instrumentalities;<br />
         		<a id="pl.42.19"></a><var>42.19</var>(4) lodging as defined under section 
         <statute_ref>297A.61, subdivision 3</statute_ref>, paragraph (g), clause <br />
         		<a id="pl.42.20"></a><var>42.20</var>(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section <br />
         		
         <statute_ref><a id="pl.42.21"></a><var>42.21</var>297A.67, subdivision 2
         </statute_ref>, except for lodging, prepared food, candy, soft drinks, and alcoholic <br />
         		<a id="pl.42.22"></a><var>42.22</var>beverages purchased directly by the United States or its agencies or instrumentalities; or<br />
         		<a id="pl.42.23"></a><var>42.23</var>(5) goods or services purchased by a local government as inputs to goods and <br />
         		<a id="pl.42.24"></a><var>42.24</var>services that are generally provided by a private business and the purchases would be <br />
         		<a id="pl.42.25"></a><var>42.25</var>taxable if made by a private business engaged in the same activity a liquor store, gas or <br />
         		<a id="pl.42.26"></a><var>42.26</var>electric utility, solid waste hauling service, solid waste recycling service, landfill, golf <br />
         		<a id="pl.42.27"></a><var>42.27</var>course, marina, campground, cafe, or laundromat.<br />
         		<a id="pl.42.28"></a><var>42.28</var>(c) As used in this subdivision, "school districts" means public school entities and <br />
         		<a id="pl.42.29"></a><var>42.29</var>districts of every kind and nature organized under the laws of the state of Minnesota, and <br />
         		<a id="pl.42.30"></a><var>42.30</var>any instrumentality of a school district, as defined in section 
         <statute_ref>471.59</statute_ref>.<br />
         		<a id="pl.42.31"></a><var>42.31</var>(d) As used in this subdivision For purposes of the exemption granted under this <br />
         		<a id="pl.42.32"></a><var>42.32</var>subdivision, "local governments" means has the following meaning:<br />
         		<a id="pl.42.33"></a><var>42.33</var>(1) for the period prior to January 1, 2016, local governments means statutory or <br />
         		<a id="pl.42.34"></a><var>42.34</var>home rule charter cities, counties, and townships;<br />
         		<a id="pl.42.35"></a><var>42.35</var>(2) for the period of January 1, 2016, to December 31, 2016, local governments <br />
         		<a id="pl.42.36"></a><var>42.36</var>means statutory or home rule charter cities, counties, and townships; special districts as <br />
         		<a id="pl.43.1"></a><var>43.1</var>defined under section 6.465, except for the Metropolitan Council under sections 473.123 <br />
         		<a id="pl.43.2"></a><var>43.2</var>to 473.549; any instrumentality of a statutory or home rule charter city, county, or <br />
         		<a id="pl.43.3"></a><var>43.3</var>township as defined in section 471.59; and any joint powers board or organization created <br />
         		<a id="pl.43.4"></a><var>43.4</var>under section 471.59; and<br />
         		<a id="pl.43.5"></a><var>43.5</var>(3) beginning January 1, 2017, local governments means statutory or home rule <br />
         		<a id="pl.43.6"></a><var>43.6</var>charter cities, counties, and townships; special districts as defined under section 6.465; any <br />
         		<a id="pl.43.7"></a><var>43.7</var>instrumentality of a statutory or home rule charter city, county, or township as defined in <br />
         		<a id="pl.43.8"></a><var>43.8</var>section 471.59; and any joint powers board or organization created under section 471.59.<br />
         		<a id="pl.43.9"></a><var>43.9</var>(e) As used in this subdivision, "goods or services generally provided by a private <br />
         		<a id="pl.43.10"></a><var>43.10</var>business" include, but are not limited to, goods or services provided by liquor stores, gas <br />
         		<a id="pl.43.11"></a><var>43.11</var>and electric utilities, golf courses, marinas, health and fitness centers, campgrounds, cafes, <br />
         		<a id="pl.43.12"></a><var>43.12</var>and laundromats. "Goods or services generally provided by a private business" do not <br />
         		<a id="pl.43.13"></a><var>43.13</var>include housing services, sewer and water services, wastewater treatment, ambulance and <br />
         		<a id="pl.43.14"></a><var>43.14</var>other public safety services, correctional services, chore or homemaking services provided <br />
         		<a id="pl.43.15"></a><var>43.15</var>to elderly or disabled individuals, or road and street maintenance or lighting.<br />
         		<a id="pl.43.16"></a><var>43.16</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br />
         		<a id="pl.43.17"></a><var>43.17</var>June 30, 2014.<br />
         		<br />
         		<a id="bill.3.12.0"></a><a id="pl.43.18"></a><var>43.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 12. Minnesota Statutes 2013 Supplement, section 297A.70, subdivision 13, <br />
         		<a id="pl.43.19"></a><var>43.19</var>is amended to read:<br />
         		<a id="pl.43.20"></a><var>43.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 13. <b>Fund-raising sales by or for nonprofit groups.</b> (a) The following <br />
         		<a id="pl.43.21"></a><var>43.21</var>sales by the specified organizations for fund-raising purposes are exempt, subject to the <br />
         		<a id="pl.43.22"></a><var>43.22</var>limitations listed in paragraph (b):<br />
         		<a id="pl.43.23"></a><var>43.23</var>(1) all sales made by a nonprofit organization that exists solely for the purpose of <br />
         		<a id="pl.43.24"></a><var>43.24</var>providing educational or social activities for young people primarily age 18 and under;<br />
         		<a id="pl.43.25"></a><var>43.25</var>(2) all sales made by an organization that is a senior citizen group or association of <br />
         		<a id="pl.43.26"></a><var>43.26</var>groups if (i) in general it limits membership to persons age 55 or older; (ii) it is organized <br />
         		<a id="pl.43.27"></a><var>43.27</var>and operated exclusively for pleasure, recreation, and other nonprofit purposes; and (iii) <br />
         		<a id="pl.43.28"></a><var>43.28</var>no part of its net earnings inures to the benefit of any private shareholders;<br />
         		<a id="pl.43.29"></a><var>43.29</var>(3) the sale or use of tickets or admissions to a golf tournament held in Minnesota if <br />
         		<a id="pl.43.30"></a><var>43.30</var>the beneficiary of the tournament's net proceeds qualifies as a tax-exempt organization <br />
         		<a id="pl.43.31"></a><var>43.31</var>under section 501(c)(3) of the Internal Revenue Code; and<br />
         		<a id="pl.43.32"></a><var>43.32</var>(4) sales of candy sold for fund-raising purposes by a nonprofit organization that <br />
         		<a id="pl.43.33"></a><var>43.33</var>provides educational and social activities primarily for young people age 18 and under.<br />
         		<a id="pl.43.34"></a><var>43.34</var>(b) The exemptions listed in paragraph (a) are limited in the following manner:<br />
         		<a id="pl.44.1"></a><var>44.1</var>(1) the exemption under paragraph (a), clauses (1) and (2), applies only if to the first <br />
         		<a id="pl.44.2"></a><var>44.2</var>$20,000 of the gross annual receipts of the organization from fund-raising do not exceed <br />
         		<a id="pl.44.3"></a><var>44.3</var>$10,000; and<br />
         		<a id="pl.44.4"></a><var>44.4</var>(2) the exemption under paragraph (a), clause (1), does not apply if the sales are <br />
         		<a id="pl.44.5"></a><var>44.5</var>derived from admission charges or from activities for which the money must be deposited <br />
         		<a id="pl.44.6"></a><var>44.6</var>with the school district treasurer under section 
         <statute_ref>123B.49, subdivision 2</statute_ref>, or be recorded in <br />
         		<a id="pl.44.7"></a><var>44.7</var>the same manner as other revenues or expenditures of the school district under section <br />
         		
         <statute_ref><a id="pl.44.8"></a><var>44.8</var>123B.49, subdivision 4
         </statute_ref>.<br />
         		<a id="pl.44.9"></a><var>44.9</var>(c) Sales of tangible personal property and services are exempt if the entire proceeds, <br />
         		<a id="pl.44.10"></a><var>44.10</var>less the necessary expenses for obtaining the property or services, will be contributed to <br />
         		<a id="pl.44.11"></a><var>44.11</var>a registered combined charitable organization described in section 
         <statute_ref>43A.50</statute_ref>, to be used <br />
         		<a id="pl.44.12"></a><var>44.12</var>exclusively for charitable, religious, or educational purposes, and the registered combined <br />
         		<a id="pl.44.13"></a><var>44.13</var>charitable organization has given its written permission for the sale. Sales that occur over <br />
         		<a id="pl.44.14"></a><var>44.14</var>a period of more than 24 days per year are not exempt under this paragraph.<br />
         		<a id="pl.44.15"></a><var>44.15</var>(d) For purposes of this subdivision, a club, association, or other organization of <br />
         		<a id="pl.44.16"></a><var>44.16</var>elementary or secondary school students organized for the purpose of carrying on sports, <br />
         		<a id="pl.44.17"></a><var>44.17</var>educational, or other extracurricular activities is a separate organization from the school <br />
         		<a id="pl.44.18"></a><var>44.18</var>district or school for purposes of applying the $10,000 $20,000 limit.<br />
         		<a id="pl.44.19"></a><var>44.19</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br />
         		<a id="pl.44.20"></a><var>44.20</var>December 31, 2014.<br />
         		<br />
         		<a id="bill.3.13.0"></a><a id="pl.44.21"></a><var>44.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 13. Minnesota Statutes 2013 Supplement, section 297A.70, subdivision 14, <br />
         		<a id="pl.44.22"></a><var>44.22</var>is amended to read:<br />
         		<a id="pl.44.23"></a><var>44.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 14. <b>Fund-raising events sponsored by nonprofit groups.</b> (a) Sales of <br />
         		<a id="pl.44.24"></a><var>44.24</var>tangible personal property or services at, and admission charges for fund-raising events <br />
         		<a id="pl.44.25"></a><var>44.25</var>sponsored by, a nonprofit organization are exempt if:<br />
         		<a id="pl.44.26"></a><var>44.26</var>(1) all gross receipts are recorded as such, in accordance with generally accepted <br />
         		<a id="pl.44.27"></a><var>44.27</var>accounting practices, on the books of the nonprofit organization; and<br />
         		<a id="pl.44.28"></a><var>44.28</var>(2) the entire proceeds, less the necessary expenses for the event, will be used solely <br />
         		<a id="pl.44.29"></a><var>44.29</var>and exclusively for charitable, religious, or educational purposes. Exempt sales include <br />
         		<a id="pl.44.30"></a><var>44.30</var>the sale of prepared food, candy, and soft drinks at the fund-raising event.<br />
         		<a id="pl.44.31"></a><var>44.31</var>(b) This exemption is limited in the following manner:<br />
         		<a id="pl.44.32"></a><var>44.32</var>(1) it does not apply to admission charges for events involving bingo or other <br />
         		<a id="pl.44.33"></a><var>44.33</var>gambling activities or to charges for use of amusement devices involving bingo or other <br />
         		<a id="pl.44.34"></a><var>44.34</var>gambling activities;<br />
         		<a id="pl.45.1"></a><var>45.1</var>(2) all gross receipts are taxable if the profits are not used solely and exclusively for <br />
         		<a id="pl.45.2"></a><var>45.2</var>charitable, religious, or educational purposes;<br />
         		<a id="pl.45.3"></a><var>45.3</var>(3) it does not apply unless the organization keeps a separate accounting record, <br />
         		<a id="pl.45.4"></a><var>45.4</var>including receipts and disbursements from each fund-raising event that documents all <br />
         		<a id="pl.45.5"></a><var>45.5</var>deductions from gross receipts with receipts and other records;<br />
         		<a id="pl.45.6"></a><var>45.6</var>(4) it does not apply to any sale made by or in the name of a nonprofit corporation as <br />
         		<a id="pl.45.7"></a><var>45.7</var>the active or passive agent of a person that is not a nonprofit corporation;<br />
         		<a id="pl.45.8"></a><var>45.8</var>(5) all gross receipts are taxable if fund-raising events exceed 24 days per year;<br />
         		<a id="pl.45.9"></a><var>45.9</var>(6) it does not apply to fund-raising events conducted on premises leased for more <br />
         		<a id="pl.45.10"></a><var>45.10</var>than five days but less than 30 days; and<br />
         		<a id="pl.45.11"></a><var>45.11</var>(7) it does not apply if the risk of the event is not borne by the nonprofit organization <br />
         		<a id="pl.45.12"></a><var>45.12</var>and the benefit to the nonprofit organization is less than the total amount of the state and <br />
         		<a id="pl.45.13"></a><var>45.13</var>local tax revenues forgone by this exemption.<br />
         		<a id="pl.45.14"></a><var>45.14</var>(c) For purposes of this subdivision, a "nonprofit organization" means any unit of <br />
         		<a id="pl.45.15"></a><var>45.15</var>government, corporation, society, association, foundation, or institution organized and <br />
         		<a id="pl.45.16"></a><var>45.16</var>operated for charitable, religious, educational, civic, fraternal, and senior citizens' or <br />
         		<a id="pl.45.17"></a><var>45.17</var>veterans' purposes, no part of the net earnings of which inures to the benefit of a private <br />
         		<a id="pl.45.18"></a><var>45.18</var>individual.<br />
         		<a id="pl.45.19"></a><var>45.19</var>(d) For purposes of this subdivision, "fund-raising events" means activities of <br />
         		<a id="pl.45.20"></a><var>45.20</var>limited duration, not regularly carried out in the normal course of business, that attract <br />
         		<a id="pl.45.21"></a><var>45.21</var>patrons for community, social, and entertainment purposes, such as auctions, bake sales, <br />
         		<a id="pl.45.22"></a><var>45.22</var>ice cream socials, block parties, carnivals, competitions, concerts, concession stands, <br />
         		<a id="pl.45.23"></a><var>45.23</var>craft sales, bazaars, dinners, dances, door-to-door sales of merchandise, fairs, fashion <br />
         		<a id="pl.45.24"></a><var>45.24</var>shows, festivals, galas, special event workshops, sporting activities such as marathons and <br />
         		<a id="pl.45.25"></a><var>45.25</var>tournaments, and similar events. Fund-raising events do not include the operation of a <br />
         		<a id="pl.45.26"></a><var>45.26</var>regular place of business in which services are provided or sales are made during regular <br />
         		<a id="pl.45.27"></a><var>45.27</var>hours such as bookstores, thrift stores, gift shops, restaurants, ongoing Internet sales, <br />
         		<a id="pl.45.28"></a><var>45.28</var>regularly scheduled classes, or other activities carried out in the normal course of business.<br />
         		<a id="pl.45.29"></a><var>45.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.3.14.0"></a><a id="pl.45.30"></a><var>45.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 14. Minnesota Statutes 2012, section 297A.70, is amended by adding a <br />
         		<a id="pl.45.31"></a><var>45.31</var>subdivision to read:<br />
         		<a id="pl.45.32"></a><var>45.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 19. <b>Nonprofit snowmobile clubs; machinery and equipment.</b> Sales of <br />
         		<a id="pl.45.33"></a><var>45.33</var>tangible personal property to a nonprofit snowmobile club that is used primarily and <br />
         		<a id="pl.45.34"></a><var>45.34</var>directly for the grooming of state or grant-in-aid snowmobile trails are exempt. The <br />
         		<a id="pl.45.35"></a><var>45.35</var>exemption applies to grooming machines, attachments, other associated accessories, <br />
         		<a id="pl.46.1"></a><var>46.1</var>and repair parts. A nonprofit snowmobile club is eligible for the exemption under this <br />
         		<a id="pl.46.2"></a><var>46.2</var>subdivision if it received, in the current year or in the previous three-year period, a state <br />
         		<a id="pl.46.3"></a><var>46.3</var>grant-in-aid maintenance and grooming grant administered by the Department of Natural <br />
         		<a id="pl.46.4"></a><var>46.4</var>Resources by applying for the grant with a local unit of government sponsor.<br />
         		<a id="pl.46.5"></a><var>46.5</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br />
         		<a id="pl.46.6"></a><var>46.6</var>June 30, 2014.<br />
         		<br />
         		<a id="bill.3.15.0"></a><a id="pl.46.7"></a><var>46.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 15. Minnesota Statutes 2013 Supplement, section 297F.05, subdivision 1, is <br />
         		<a id="pl.46.8"></a><var>46.8</var>amended to read:<br />
         		<a id="pl.46.9"></a><var>46.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Rates; cigarettes.</b> A tax is imposed upon the sale of cigarettes in <br />
         		<a id="pl.46.10"></a><var>46.10</var>this state, upon having cigarettes in possession in this state with intent to sell, upon any <br />
         		<a id="pl.46.11"></a><var>46.11</var>person engaged in business as a distributor, and upon the use or storage by consumers, at <br />
         		<a id="pl.46.12"></a><var>46.12</var>the following rates: rate of<br />
         		<a id="pl.46.13"></a><var>46.13</var>(1) on cigarettes weighing not more than three pounds per thousand, 141.5 mills, <br />
         		<a id="pl.46.14"></a><var>46.14</var>or 14.15 cents on each such cigarette; and<br />
         		<a id="pl.46.15"></a><var>46.15</var>(2) on cigarettes weighing more than three pounds per thousand, 283 mills on each <br />
         		<a id="pl.46.16"></a><var>46.16</var>such cigarette.<br />
         		<a id="pl.46.17"></a><var>46.17</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2014.<br />
         		<br />
         		<a id="bill.3.16.0"></a><a id="pl.46.18"></a><var>46.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 16. Minnesota Statutes 2012, section 297F.09, subdivision 10, is amended to read:<br />
         		<a id="pl.46.19"></a><var>46.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 10. <b>Accelerated tax payment; cigarette or tobacco products distributor.</b><br />
         		 <a id="pl.46.20"></a><var>46.20</var>&nbsp;&nbsp;&nbsp;&nbsp;A cigarette or tobacco products distributor having a liability of $120,000 $250,000 or <br />
         		<a id="pl.46.21"></a><var>46.21</var>more during a fiscal year ending June 30, shall remit the June liability for the next year <br />
         		<a id="pl.46.22"></a><var>46.22</var>in the following manner:<br />
         		<a id="pl.46.23"></a><var>46.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(a) Two business days before June 30 of the year, the distributor shall remit the <br />
         		<a id="pl.46.24"></a><var>46.24</var>actual May liability and 90 81.4 percent of the estimated June liability to the commissioner <br />
         		<a id="pl.46.25"></a><var>46.25</var>and file the return in the form and manner prescribed by the commissioner.<br />
         		<a id="pl.46.26"></a><var>46.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) On or before August 18 of the year, the distributor shall submit a return showing <br />
         		<a id="pl.46.27"></a><var>46.27</var>the actual June liability and pay any additional amount of tax not remitted in June. A <br />
         		<a id="pl.46.28"></a><var>46.28</var>penalty is imposed equal to ten percent of the amount of June liability required to be paid <br />
         		<a id="pl.46.29"></a><var>46.29</var>in June, less the amount remitted in June. However, the penalty is not imposed if the <br />
         		<a id="pl.46.30"></a><var>46.30</var>amount remitted in June equals the lesser of:<br />
         		<a id="pl.46.31"></a><var>46.31</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) 90 81.4 percent of the actual June liability; or<br />
         		<a id="pl.46.32"></a><var>46.32</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) 90 81.4 percent of the preceding May's May liability.<br />
         		<a id="pl.46.33"></a><var>46.33</var><b>EFFECTIVE DATE.</b>This section is effective for taxes remitted after May 30, 2014.<br />
         		<br />
         		<a id="bill.3.17.0"></a><a id="pl.47.1"></a><var>47.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 17. Minnesota Statutes 2012, section 297G.03, is amended by adding a <br />
         		<a id="pl.47.2"></a><var>47.2</var>subdivision to read:<br />
         		<a id="pl.47.3"></a><var>47.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Microdistillery credit.</b> (a) A qualified distiller producing distilled spirits is <br />
         		<a id="pl.47.4"></a><var>47.4</var>entitled to a tax credit of $1.33 per liter on 100,000 liters sold in any fiscal year beginning <br />
         		<a id="pl.47.5"></a><var>47.5</var>July 1. A qualified distiller may take the credit on the 18th day of each month, but the total <br />
         		<a id="pl.47.6"></a><var>47.6</var>credit allowed may not exceed in any fiscal year the lesser of:<br />
         		<a id="pl.47.7"></a><var>47.7</var>(1) the liability for tax; or<br />
         		<a id="pl.47.8"></a><var>47.8</var>(2) $133,000.<br />
         		<a id="pl.47.9"></a><var>47.9</var>(b) For purposes of this subdivision, "qualified distiller" means a microdistillery <br />
         		<a id="pl.47.10"></a><var>47.10</var>qualifying under section 340A.101, subdivision 17a, in the calendar year immediately <br />
         		<a id="pl.47.11"></a><var>47.11</var>preceding the calendar year for which the credit under this subdivision is claimed.<br />
         		<a id="pl.47.12"></a><var>47.12</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2014.<br />
         		<br />
         		<a id="bill.3.18.0"></a><a id="pl.47.13"></a><var>47.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 18. <b>[297G.032] MICRODISTILLERIES.</b><br />
         		<a id="pl.47.14"></a><var>47.14</var>A microdistillery, licensed under section 340A.301, is a wholesaler for purposes <br />
         		<a id="pl.47.15"></a><var>47.15</var>of the excise tax imposed on distilled spirits given by the microdistillery as samples or <br />
         		<a id="pl.47.16"></a><var>47.16</var>sold in cocktail rooms permitted under chapter 340A. Returns must be made in a form <br />
         		<a id="pl.47.17"></a><var>47.17</var>and manner prescribed by the commissioner, and must contain any other information <br />
         		<a id="pl.47.18"></a><var>47.18</var>required by the commissioner.<br />
         		<a id="pl.47.19"></a><var>47.19</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2014.<br />
         		<br />
         		<a id="bill.3.19.0"></a><a id="pl.47.20"></a><var>47.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 19. Minnesota Statutes 2012, section 297G.09, subdivision 9, is amended to read:<br />
         		<a id="pl.47.21"></a><var>47.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 9. <b>Accelerated tax payment; penalty.</b> A person liable for tax under this <br />
         		<a id="pl.47.22"></a><var>47.22</var>chapter having a liability of $120,000 $250,000 or more during a fiscal year ending June <br />
         		<a id="pl.47.23"></a><var>47.23</var>30, shall remit the June liability for the next year in the following manner:<br />
         		<a id="pl.47.24"></a><var>47.24</var>&nbsp;&nbsp;&nbsp;&nbsp;(a) Two business days before June 30 of the year, the taxpayer shall remit the actual <br />
         		<a id="pl.47.25"></a><var>47.25</var>May liability and 90 81.4 percent of the estimated June liability to the commissioner and <br />
         		<a id="pl.47.26"></a><var>47.26</var>file the return in the form and manner prescribed by the commissioner.<br />
         		<a id="pl.47.27"></a><var>47.27</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) On or before August 18 of the year, the taxpayer shall submit a return showing <br />
         		<a id="pl.47.28"></a><var>47.28</var>the actual June liability and pay any additional amount of tax not remitted in June. A <br />
         		<a id="pl.47.29"></a><var>47.29</var>penalty is imposed equal to ten percent of the amount of June liability required to be paid <br />
         		<a id="pl.47.30"></a><var>47.30</var>in June less the amount remitted in June. However, the penalty is not imposed if the <br />
         		<a id="pl.47.31"></a><var>47.31</var>amount remitted in June equals the lesser of:<br />
         		<a id="pl.47.32"></a><var>47.32</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) 90 81.4 percent of the actual June liability; or<br />
         		<a id="pl.47.33"></a><var>47.33</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) 90 81.4 percent of the preceding May liability.<br />
         		<a id="pl.48.1"></a><var>48.1</var><b>EFFECTIVE DATE.</b>This section is effective for taxes remitted after May 30, 2014.<br />
         		<br />
         		<a id="bill.3.20.0"></a><a id="pl.48.2"></a><var>48.2</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 20. Minnesota Statutes 2013 Supplement, section 360.531, subdivision 2, is <br />
         		<a id="pl.48.3"></a><var>48.3</var>amended to read:<br />
         		<a id="pl.48.4"></a><var>48.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Rate.</b> The tax shall be as follows:<br />
         		
         <table>
            <col width="50px"></col>
            <col width="25.299999999999997"></col>
            <col width="2.2"></col>
            <col width="16.9"></col>
            <tr>
               <td><a id="pl.48.5"></a><var>48.5</var><br />
                  		
               </td>
               <td>Base Price<br />
                  		
               </td>
               <td align="center"></td>
               <td align="left">Tax<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.48.6"></a><var>48.6</var><br />
                  		<a id="pl.48.7"></a><var>48.7</var><br />
                  		
               </td>
               <td>Under $499,999<br />
                  		 Not over $500,000<br />
                  		
               </td>
               <td align="center"></td>
               <td>$100<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.48.8"></a><var>48.8</var><br />
                  		<a id="pl.48.9"></a><var>48.9</var><br />
                  		
               </td>
               <td>over $500,000 to $999,999<br />
                  		 but not over $1,000,000<br />
                  		
               </td>
               <td align="center"></td>
               <td>$200<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.48.10"></a><var>48.10</var><br />
                  		<a id="pl.48.11"></a><var>48.11</var><br />
                  		
               </td>
               <td>over $1,000,000 to $2,499,999<br />
                  		 but not over $2,500,000<br />
                  		
               </td>
               <td align="center"></td>
               <td align="left">$2,000<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.48.12"></a><var>48.12</var><br />
                  		<a id="pl.48.13"></a><var>48.13</var><br />
                  		
               </td>
               <td>over $2,500,000 to $4,999,999<br />
                  		 but not over $5,000,000<br />
                  		
               </td>
               <td align="center"></td>
               <td align="left">$4,000<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.48.14"></a><var>48.14</var><br />
                  		<a id="pl.48.15"></a><var>48.15</var><br />
                  		
               </td>
               <td>over $5,000,000 to $7,499,999<br />
                  		 but not over $7,500,000<br />
                  		
               </td>
               <td align="center"></td>
               <td align="left">$7,500<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.48.16"></a><var>48.16</var><br />
                  		<a id="pl.48.17"></a><var>48.17</var><br />
                  		
               </td>
               <td>over $7,500,000 to $9,999,999<br />
                  		 but not over $10,000,000<br />
                  		
               </td>
               <td align="center"></td>
               <td align="left">$10,000<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.48.18"></a><var>48.18</var><br />
                  		<a id="pl.48.19"></a><var>48.19</var><br />
                  		
               </td>
               <td>over $10,000,000 to $12,499,999<br />
                  		 but not over $12,500,000<br />
                  		
               </td>
               <td align="center"></td>
               <td>$12,500<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.48.20"></a><var>48.20</var><br />
                  		<a id="pl.48.21"></a><var>48.21</var><br />
                  		
               </td>
               <td>over $12,500,000 to $14,999,999<br />
                  		 but not over $15,000,000<br />
                  		
               </td>
               <td align="center"></td>
               <td>$15,000<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.48.22"></a><var>48.22</var><br />
                  		<a id="pl.48.23"></a><var>48.23</var><br />
                  		
               </td>
               <td>over $15,000,000 to $17,499,999<br />
                  		 but not over $17,500,000<br />
                  		
               </td>
               <td align="center"></td>
               <td align="left">$17,500<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.48.24"></a><var>48.24</var><br />
                  		<a id="pl.48.25"></a><var>48.25</var><br />
                  		
               </td>
               <td>over $17,500,000 to $19,999,999<br />
                  		 but not over $20,000,000<br />
                  		
               </td>
               <td align="center"></td>
               <td>$20,000<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.48.26"></a><var>48.26</var><br />
                  		<a id="pl.48.27"></a><var>48.27</var><br />
                  		
               </td>
               <td>over $20,000,000 to $22,499,999<br />
                  		 but not over $22,500,000<br />
                  		
               </td>
               <td align="center"></td>
               <td>$22,500<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.48.28"></a><var>48.28</var><br />
                  		<a id="pl.48.29"></a><var>48.29</var><br />
                  		
               </td>
               <td>over $22,500,000 to $24,999,999<br />
                  		 but not over $25,000,000<br />
                  		
               </td>
               <td align="center"></td>
               <td align="left">$25,000<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.48.30"></a><var>48.30</var><br />
                  		<a id="pl.48.31"></a><var>48.31</var><br />
                  		
               </td>
               <td>over $25,000,000 to $27,499,999<br />
                  		 but not over $27,500,000<br />
                  		
               </td>
               <td align="center"></td>
               <td>$27,500<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.48.32"></a><var>48.32</var><br />
                  		<a id="pl.48.33"></a><var>48.33</var><br />
                  		
               </td>
               <td>over $27,500,000 to $29,999,999<br />
                  		 but not over $30,000,000<br />
                  		
               </td>
               <td align="center"></td>
               <td align="left">$30,000<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.48.34"></a><var>48.34</var><br />
                  		<a id="pl.48.35"></a><var>48.35</var><br />
                  		
               </td>
               <td>over $30,000,000 to $39,999,999<br />
                  		 but not over $40,000,000<br />
                  		
               </td>
               <td align="center"></td>
               <td align="left">$50,000<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.48.36"></a><var>48.36</var><br />
                  		
               </td>
               <td>over $40,000,000 and over<br />
                  		
               </td>
               <td align="center"></td>
               <td>$75,000<br />
                  		
               </td>
            </tr>
         </table><a id="pl.48.37"></a><var>48.37</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2014, and applies to aircraft <br />
         		<a id="pl.48.38"></a><var>48.38</var>tax due on or after that date.<br />
         		<br />
         		<a id="bill.3.21.0"></a><a id="pl.48.39"></a><var>48.39</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 21. Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991, <br />
         		<a id="pl.48.40"></a><var>48.40</var>chapter 291, article 8, section 22, Laws 1998, chapter 389, article 8, section 25, Laws <br />
         		<a id="pl.48.41"></a><var>48.41</var>2003, First Special Session chapter 21, article 8, section 11, and Laws 2008, chapter <br />
         		<a id="pl.48.42"></a><var>48.42</var>154, article 5, section 2, is amended to read:<br />
         		<a id="pl.49.1"></a><var>49.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. (a) Notwithstanding Minnesota Statutes, section 
         <statute_ref>477A.016</statute_ref>, or any <br />
         		<a id="pl.49.2"></a><var>49.2</var>other law, ordinance, or city charter provision to the contrary, the city of Duluth may, <br />
         		<a id="pl.49.3"></a><var>49.3</var>by ordinance, impose an additional sales tax of up to two and one-quarter one and <br />
         		<a id="pl.49.4"></a><var>49.4</var>three-quarter percent on sales transactions which are described in Minnesota Statutes 2000, <br />
         		<a id="pl.49.5"></a><var>49.5</var>section 
         <statute_ref>297A.01</statute_ref>, subdivision 3, clause (c). When the city council determines that the taxes <br />
         		<a id="pl.49.6"></a><var>49.6</var>imposed under this subdivision and under Laws 1998, chapter 389, article 8, section 26, at a <br />
         		<a id="pl.49.7"></a><var>49.7</var>rate of one-half of one percent have produced revenue sufficient to pay (1) the debt service <br />
         		<a id="pl.49.8"></a><var>49.8</var>on bonds in a principal amount of $8,000,000 issued for capital improvements to the <br />
         		<a id="pl.49.9"></a><var>49.9</var>Duluth Entertainment and Convention Center, and (2) debt service on outstanding bonds <br />
         		<a id="pl.49.10"></a><var>49.10</var>originally issued in the principal amount of $4,970,000 to finance capital improvements to <br />
         		<a id="pl.49.11"></a><var>49.11</var>the Great Lakes Aquarium since the imposition of the taxes at the rate of one and one-half <br />
         		<a id="pl.49.12"></a><var>49.12</var>percent, the rate of the tax under this subdivision is reduced by one-half of one percent.<br />
         		<a id="pl.49.13"></a><var>49.13</var> The imposition of this tax shall not be subject to voter referendum under either state law <br />
         		<a id="pl.49.14"></a><var>49.14</var>or city charter provisions. When the city council determines that the taxes imposed under <br />
         		<a id="pl.49.15"></a><var>49.15</var>this subdivision paragraph at a rate of three-quarters of one percent and other sources of <br />
         		<a id="pl.49.16"></a><var>49.16</var>revenue produce revenue sufficient to pay debt service on bonds in the principal amount <br />
         		<a id="pl.49.17"></a><var>49.17</var>of $40,285,000 plus issuance and discount costs, issued for capital improvements at the <br />
         		<a id="pl.49.18"></a><var>49.18</var>Duluth Entertainment and Convention Center, which include a new arena, the rate of tax <br />
         		<a id="pl.49.19"></a><var>49.19</var>under this subdivision must be reduced by three-quarters of one percent.<br />
         		<a id="pl.49.20"></a><var>49.20</var>(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, <br />
         		<a id="pl.49.21"></a><var>49.21</var>section 477A.016, or any other law, ordinance, or city charter provision to the contrary, <br />
         		<a id="pl.49.22"></a><var>49.22</var>the city of Duluth may, by ordinance, impose an additional sales tax of up to one-half of <br />
         		<a id="pl.49.23"></a><var>49.23</var>one percent on sales transactions which are described in Minnesota Statutes 2000, section <br />
         		<a id="pl.49.24"></a><var>49.24</var>297A.01, subdivision 3, clause (c). This tax expires when the city council determines <br />
         		<a id="pl.49.25"></a><var>49.25</var>that the tax imposed under this paragraph, along with the tax imposed under section <br />
         		<a id="pl.49.26"></a><var>49.26</var>22, paragraph (b), has produced revenues sufficient to pay the debt service on bonds <br />
         		<a id="pl.49.27"></a><var>49.27</var>in a principal amount of no more than $18,000,000, plus issuance and discount costs, <br />
         		<a id="pl.49.28"></a><var>49.28</var>to finance capital improvements to public facilities to support tourism and recreational <br />
         		<a id="pl.49.29"></a><var>49.29</var>activities in that portion of the city west of 34th Avenue West.<br />
         		<a id="pl.49.30"></a><var>49.30</var>(c) The city of Duluth may sell and issue up to $18,000,000 in general obligation <br />
         		<a id="pl.49.31"></a><var>49.31</var>bonds under Minnesota Statutes, chapter 475, plus an additional amount to pay for the <br />
         		<a id="pl.49.32"></a><var>49.32</var>costs of issuance and any premiums. The proceeds may be used to finance capital <br />
         		<a id="pl.49.33"></a><var>49.33</var>improvements to public facilities that support tourism and recreational activities in the <br />
         		<a id="pl.49.34"></a><var>49.34</var>portion of the city west of 34th Avenue West, as described in paragraph (b). The issuance <br />
         		<a id="pl.49.35"></a><var>49.35</var>of the bonds is subject to the provisions of Minnesota Statutes, chapter 475, except no <br />
         		<a id="pl.49.36"></a><var>49.36</var>election shall be required unless required by the city charter. The bonds shall not be <br />
         		<a id="pl.50.1"></a><var>50.1</var>included in computing net debt. The revenues from the taxes that the city of Duluth may <br />
         		<a id="pl.50.2"></a><var>50.2</var>impose under paragraph (b) and under section 22, paragraph (b), may be pledged to pay <br />
         		<a id="pl.50.3"></a><var>50.3</var>principal of and interest on such bonds.<br />
         		<a id="pl.50.4"></a><var>50.4</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br />
         		<a id="pl.50.5"></a><var>50.5</var>the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section <br />
         		<a id="pl.50.6"></a><var>50.6</var>645.021, subdivisions 2 and 3.<br />
         		<br />
         		<a id="bill.3.22.0"></a><a id="pl.50.7"></a><var>50.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 22. Laws 1980, chapter 511, section 2, as amended by Laws 1998, chapter 389, <br />
         		<a id="pl.50.8"></a><var>50.8</var>article 8, section 26, and Laws 2003, First Special Session chapter 21, article 8, section <br />
         		<a id="pl.50.9"></a><var>50.9</var>12, is amended to read:<br />
         		<a id="pl.50.10"></a><var>50.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 22. <b>CITY OF DULUTH; TAX ON RECEIPTS BY HOTELS AND </b><br />
         		<a id="pl.50.11"></a><var>50.11</var><b>MOTELS.</b><br />
         		<a id="pl.50.12"></a><var>50.12</var>&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding Minnesota Statutes, section 
         <statute_ref>477A.016</statute_ref>, or any other law, or <br />
         		<a id="pl.50.13"></a><var>50.13</var>ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance, <br />
         		<a id="pl.50.14"></a><var>50.14</var>impose an additional tax of one and one-half percent upon the gross receipts from the <br />
         		<a id="pl.50.15"></a><var>50.15</var>sale of lodging for periods of less than 30 days in hotels and motels located in the city. <br />
         		<a id="pl.50.16"></a><var>50.16</var>When the city council determines that the taxes imposed under this section and section 25 <br />
         		<a id="pl.50.17"></a><var>50.17</var>at a rate of one-half of one percent have produced revenue sufficient to pay (1) the debt <br />
         		<a id="pl.50.18"></a><var>50.18</var>service on bonds in a principal amount of $8,000,000 issued for capital improvements <br />
         		<a id="pl.50.19"></a><var>50.19</var>for the Duluth Entertainment and Convention Center, and (2) the debt service on <br />
         		<a id="pl.50.20"></a><var>50.20</var>outstanding bonds originally issued in the principal amount of $4,970,000 to finance <br />
         		<a id="pl.50.21"></a><var>50.21</var>capital improvements to the Great Lakes Aquarium since the imposition of the taxes at the <br />
         		<a id="pl.50.22"></a><var>50.22</var>rate of one and one-half percent, the rate of the tax under this section is reduced to one <br />
         		<a id="pl.50.23"></a><var>50.23</var>percent. The tax shall be collected in the same manner as the tax set forth in the Duluth <br />
         		<a id="pl.50.24"></a><var>50.24</var>city charter, section 54(d), paragraph one. The imposition of this tax shall not be subject to <br />
         		<a id="pl.50.25"></a><var>50.25</var>voter referendum under either state law or city charter provisions.<br />
         		<a id="pl.50.26"></a><var>50.26</var>(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, <br />
         		<a id="pl.50.27"></a><var>50.27</var>section 477A.016, or any other law, ordinance, or city charter provision to the contrary, <br />
         		<a id="pl.50.28"></a><var>50.28</var>the city of Duluth may, by ordinance, impose an additional sales tax of up to one-half <br />
         		<a id="pl.50.29"></a><var>50.29</var>of one percent on the gross receipts from the sale of lodging for periods of less than <br />
         		<a id="pl.50.30"></a><var>50.30</var>30 days in hotels and motels located in the city. This tax expires when the city council <br />
         		<a id="pl.50.31"></a><var>50.31</var>first determines that the tax imposed under this paragraph, along with the tax imposed <br />
         		<a id="pl.50.32"></a><var>50.32</var>under section 21, paragraph (b), has produced revenues sufficient to pay the debt <br />
         		<a id="pl.50.33"></a><var>50.33</var>service on bonds in a principal amount of no more than $18,000,000, plus issuance and <br />
         		<a id="pl.50.34"></a><var>50.34</var>discount costs, to finance capital improvements to public facilities to support tourism and <br />
         		<a id="pl.50.35"></a><var>50.35</var>recreational activities in that portion of the city west of 34th Avenue West.<br />
         		<a id="pl.51.1"></a><var>51.1</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br />
         		<a id="pl.51.2"></a><var>51.2</var>the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section <br />
         		<a id="pl.51.3"></a><var>51.3</var>645.021, subdivisions 2 and 3.<br />
         		<br />
         		<a id="bill.3.23.0"></a><a id="pl.51.4"></a><var>51.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 23. Laws 2005, First Special Session chapter 3, article 5, section 38, subdivision <br />
         		<a id="pl.51.5"></a><var>51.5</var>4, is amended to read:<br />
         		<a id="pl.51.6"></a><var>51.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Termination of taxes.</b> The taxes imposed under this section expire at the <br />
         		<a id="pl.51.7"></a><var>51.7</var>earlier of (1) ten 15 years after the taxes are first imposed, or (2) when the city council first <br />
         		<a id="pl.51.8"></a><var>51.8</var>determines that the amount of revenues raised to pay for the projects under subdivision 2, <br />
         		<a id="pl.51.9"></a><var>51.9</var>shall meet or exceed the sum of $15,000,000. Any funds remaining after completion of <br />
         		<a id="pl.51.10"></a><var>51.10</var>the projects may be placed in the general fund of the city.<br />
         		<a id="pl.51.11"></a><var>51.11</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br />
         		<a id="pl.51.12"></a><var>51.12</var>the city of Albert Lea and its chief clerical officer comply with Minnesota Statutes, section <br />
         		<a id="pl.51.13"></a><var>51.13</var>645.021, subdivisions 2 and 3.<br />
         		<br />
         		<a id="bill.3.24.0"></a><a id="pl.51.14"></a><var>51.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 24. Laws 2006, chapter 259, article 3, section 10, subdivision 3, is amended to read:<br />
         		<a id="pl.51.15"></a><var>51.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Use of revenues.</b> (a) Revenues received from the taxes authorized by <br />
         		<a id="pl.51.16"></a><var>51.16</var>subdivisions 1 and 2 must be used to pay the cost of collecting and administering the tax <br />
         		<a id="pl.51.17"></a><var>51.17</var>and to finance the acquisition and betterment of water and wastewater facilities to serve the <br />
         		<a id="pl.51.18"></a><var>51.18</var>cities of Brainerd and Baxter, building and equipping a fire substation, as approved by the <br />
         		<a id="pl.51.19"></a><var>51.19</var>voters at the referendum authorizing the tax. Authorized costs include, but are not limited <br />
         		<a id="pl.51.20"></a><var>51.20</var>to, acquiring property and paying construction and engineering costs related to the projects.<br />
         		<a id="pl.51.21"></a><var>51.21</var>(b) In addition to the projects authorized in paragraph (a), the city of Baxter may, if <br />
         		<a id="pl.51.22"></a><var>51.22</var>approved by the voters at an election under subdivision 5, paragraph (b), allocate up to an <br />
         		<a id="pl.51.23"></a><var>51.23</var>additional $40,000,000 of the revenues received from the taxes authorized by subdivisions <br />
         		<a id="pl.51.24"></a><var>51.24</var>1 and 2 to a capital infrastructure fund. Money from this fund may only be used to <br />
         		<a id="pl.51.25"></a><var>51.25</var>finance (1) sanitary sewer, storm sewer, and water projects, (2) transportation safety <br />
         		<a id="pl.51.26"></a><var>51.26</var>improvements, and (3) improvements to the Brainerd Lakes Area Airport.<br />
         		<a id="pl.51.27"></a><var>51.27</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br />
         		<a id="pl.51.28"></a><var>51.28</var>the city of Baxter and its chief clerical officer comply with Minnesota Statutes, section <br />
         		<a id="pl.51.29"></a><var>51.29</var>645.021, subdivisions 2 and 3.<br />
         		<br />
         		<a id="bill.3.25.0"></a><a id="pl.51.30"></a><var>51.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 25. Laws 2006, chapter 259, article 3, section 10, subdivision 4, is amended to read:<br />
         		<a id="pl.51.31"></a><var>51.31</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Bonds.</b> (a) The city of Baxter, pursuant to the approval of the voters at the <br />
         		<a id="pl.51.32"></a><var>51.32</var>November 2, 2004, referendum authorizing the imposition of the taxes in this section, may <br />
         		<a id="pl.52.1"></a><var>52.1</var>issue general obligation bonds of the city, in one or more series, in the aggregate principal <br />
         		<a id="pl.52.2"></a><var>52.2</var>amount not to exceed $15,000,000 to finance the projects listed in subdivision 3, paragraph <br />
         		<a id="pl.52.3"></a><var>52.3</var>(a). The debt represented by the bonds is not included in computing any debt limitations <br />
         		<a id="pl.52.4"></a><var>52.4</var>applicable to the city, and the levy of taxes required by Minnesota Statutes, section 
         <statute_ref>475.61</statute_ref>, <br />
         		<a id="pl.52.5"></a><var>52.5</var>to pay the principal of and interest on the bonds is not subject to any levy limitation or <br />
         		<a id="pl.52.6"></a><var>52.6</var>included in computing or applying any levy limitation applicable to the city of Baxter.<br />
         		<a id="pl.52.7"></a><var>52.7</var>(b) The city of Baxter, pursuant to the approval of the voters at the 2014 general <br />
         		<a id="pl.52.8"></a><var>52.8</var>election to extend the tax under this section, may issue general obligation bonds of the city, <br />
         		<a id="pl.52.9"></a><var>52.9</var>in one or more series, in the aggregate principal amount not to exceed (1) $32,000,000 <br />
         		<a id="pl.52.10"></a><var>52.10</var>plus an amount equal to the costs of issuance of the bonds to finance the projects listed <br />
         		<a id="pl.52.11"></a><var>52.11</var>in subdivision 3, paragraph (b), clauses (1) and (2), and (2) $8,000,000 plus an amount <br />
         		<a id="pl.52.12"></a><var>52.12</var>equal to the costs of the issuance of the bonds to finance the project listed in subdivision 3, <br />
         		<a id="pl.52.13"></a><var>52.13</var>paragraph (b), clause (3). The debt represented by the bonds is not included in computing <br />
         		<a id="pl.52.14"></a><var>52.14</var>any debt limitations applicable to the city, and the levy of taxes required by Minnesota <br />
         		<a id="pl.52.15"></a><var>52.15</var>Statutes, section 475.61, to pay the principal of and interest on the bonds is not subject to <br />
         		<a id="pl.52.16"></a><var>52.16</var>any levy limitation or included in computing or applying any levy limitation applicable to <br />
         		<a id="pl.52.17"></a><var>52.17</var>the city of Baxter.<br />
         		<a id="pl.52.18"></a><var>52.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.3.26.0"></a><a id="pl.52.19"></a><var>52.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 26. Laws 2006, chapter 259, article 3, section 10, subdivision 5, is amended to read:<br />
         		<a id="pl.52.20"></a><var>52.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Termination of taxes.</b> (a) The taxes imposed under subdivisions 1 and 2 <br />
         		<a id="pl.52.21"></a><var>52.21</var>expire at the earlier of a date 12 years after the imposition of the tax or when the Baxter <br />
         		<a id="pl.52.22"></a><var>52.22</var>City Council first determines that the amount of revenues raised from the taxes to pay for <br />
         		<a id="pl.52.23"></a><var>52.23</var>the projects under subdivision 3 equals or exceeds $15,000,000 plus any interest on bonds <br />
         		<a id="pl.52.24"></a><var>52.24</var>issued for the projects under subdivision 4, paragraph (a). Any funds remaining after the <br />
         		<a id="pl.52.25"></a><var>52.25</var>expiration of the taxes and retirement of the bonds shall be placed in a capital project fund <br />
         		<a id="pl.52.26"></a><var>52.26</var>of the city of Baxter. The taxes imposed under subdivisions 1 and 2 may expire at an <br />
         		<a id="pl.52.27"></a><var>52.27</var>earlier time if the city of Baxter so determines by ordinance.<br />
         		<a id="pl.52.28"></a><var>52.28</var>(b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any <br />
         		<a id="pl.52.29"></a><var>52.29</var>other contrary provision of law, ordinance, or city charter, the city of Baxter may, by <br />
         		<a id="pl.52.30"></a><var>52.30</var>ordinance, extend the taxes authorized under subdivisions 1 and 2 beyond the termination <br />
         		<a id="pl.52.31"></a><var>52.31</var>date in paragraph (a) if approved by the voters of the city at a general election held <br />
         		<a id="pl.52.32"></a><var>52.32</var>in 2014. The question put to the voters must indicate that an affirmative vote would <br />
         		<a id="pl.52.33"></a><var>52.33</var>extend the imposition of the taxes through 2037 or until an additional $40,000,000, <br />
         		<a id="pl.52.34"></a><var>52.34</var>plus an amount equal to interest and issuance costs associated with bonds issued under <br />
         		<a id="pl.52.35"></a><var>52.35</var>subdivision 4, paragraph (b), above the initial amount authorized to pay for $15,000,000 <br />
         		<a id="pl.53.1"></a><var>53.1</var>in bonds and associated bond cost and projects, listed in subdivision 3, paragraph (a), is <br />
         		<a id="pl.53.2"></a><var>53.2</var>raised. If extended under this paragraph, the taxes authorized in subdivisions 1 and 2 will <br />
         		<a id="pl.53.3"></a><var>53.3</var>terminate at the earlier of (1) when an additional $40,000,000, plus an amount equal to <br />
         		<a id="pl.53.4"></a><var>53.4</var>interest and issuance costs associated with bonds issued under subdivision 4, paragraph <br />
         		<a id="pl.53.5"></a><var>53.5</var>(b), above the amount authorized under paragraph (a), is raised, or (2) December 31, 2037.<br />
         		<a id="pl.53.6"></a><var>53.6</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br />
         		<a id="pl.53.7"></a><var>53.7</var>the city of Baxter and its chief clerical officer comply with Minnesota Statutes, section <br />
         		<a id="pl.53.8"></a><var>53.8</var>645.021, subdivisions 2 and 3.<br />
         		<br />
         		<a id="bill.3.27.0"></a><a id="pl.53.9"></a><var>53.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 27. Laws 2006, chapter 259, article 3, section 11, subdivision 3, is amended to read:<br />
         		<a id="pl.53.10"></a><var>53.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Use of revenues.</b> (a) Revenues received from the taxes authorized by <br />
         		<a id="pl.53.11"></a><var>53.11</var>subdivisions 1 and 2 must be used to pay the cost of collecting and administering the tax <br />
         		<a id="pl.53.12"></a><var>53.12</var>and to finance all or part of the costs of constructing upgraded water and wastewater <br />
         		<a id="pl.53.13"></a><var>53.13</var>treatment facilities to serve the cities of Brainerd and Baxter, water infrastructure <br />
         		<a id="pl.53.14"></a><var>53.14</var>improvements, and trail development, contingent on approval by Brainerd voters at the <br />
         		<a id="pl.53.15"></a><var>53.15</var>November 7, 2006, referendum. Authorized costs include, but are not limited to, acquiring <br />
         		<a id="pl.53.16"></a><var>53.16</var>property and paying construction and engineering costs related to the projects.<br />
         		<a id="pl.53.17"></a><var>53.17</var>(b) In addition to the projects authorized in paragraph (a), the city of Brainerd may, <br />
         		<a id="pl.53.18"></a><var>53.18</var>if approved by the voters at an election under subdivision 5, paragraph (b), spend up to an <br />
         		<a id="pl.53.19"></a><var>53.19</var>additional $15,000,000 from revenues raised from the taxes authorized in subdivisions 1 <br />
         		<a id="pl.53.20"></a><var>53.20</var>and 2 on the following projects:<br />
         		<a id="pl.53.21"></a><var>53.21</var>(1) an upgraded waste treatment facility jointly serving the cities of Brainerd and <br />
         		<a id="pl.53.22"></a><var>53.22</var>Baxter;<br />
         		<a id="pl.53.23"></a><var>53.23</var>(2) with any funds not needed for the project in clause (1), water infrastructure <br />
         		<a id="pl.53.24"></a><var>53.24</var>improvements; and<br />
         		<a id="pl.53.25"></a><var>53.25</var>(3) with any funds not needed for the projects in clauses (1) and (2), trail <br />
         		<a id="pl.53.26"></a><var>53.26</var>improvements.<br />
         		<a id="pl.53.27"></a><var>53.27</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br />
         		<a id="pl.53.28"></a><var>53.28</var>the city of Brainerd and its chief clerical officer comply with Minnesota Statutes, section <br />
         		<a id="pl.53.29"></a><var>53.29</var>645.021, subdivisions 2 and 3.<br />
         		<br />
         		<a id="bill.3.28.0"></a><a id="pl.53.30"></a><var>53.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 28. Laws 2006, chapter 259, article 3, section 11, subdivision 4, is amended to read:<br />
         		<a id="pl.53.31"></a><var>53.31</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Bonds.</b> The city of Brainerd, contingent on approval of the voters at <br />
         		<a id="pl.53.32"></a><var>53.32</var>the November 7, 2006, referendum authorizing the imposition of taxes in this section, <br />
         		<a id="pl.53.33"></a><var>53.33</var>may issue general obligation bonds of the city, in one or more series, in the aggregate <br />
         		<a id="pl.54.1"></a><var>54.1</var>principal amount not to exceed $22,030,000 to finance the projects listed in subdivision 3, <br />
         		<a id="pl.54.2"></a><var>54.2</var>paragraph (a). The debt represented by the bonds is not included in computing any debt <br />
         		<a id="pl.54.3"></a><var>54.3</var>limitations applicable to Brainerd, and the levy of taxes required by Minnesota Statutes, <br />
         		<a id="pl.54.4"></a><var>54.4</var>section 
         <statute_ref>475.61</statute_ref>, to pay the principal and interest on the bonds is not subject to any levy <br />
         		<a id="pl.54.5"></a><var>54.5</var>limitation or included in computing any levy limitation applicable to the city of Brainerd.<br />
         		<a id="pl.54.6"></a><var>54.6</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.3.29.0"></a><a id="pl.54.7"></a><var>54.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 29. Laws 2006, chapter 259, article 3, section 11, subdivision 5, is amended to read:<br />
         		<a id="pl.54.8"></a><var>54.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Termination of taxes.</b> (a) The taxes imposed under subdivisions 1 and <br />
         		<a id="pl.54.9"></a><var>54.9</var>2 expire at the earlier of a date 12 years after the imposition of the tax or when the city <br />
         		<a id="pl.54.10"></a><var>54.10</var>council first determines that the amount of revenues raised from the taxes to pay for <br />
         		<a id="pl.54.11"></a><var>54.11</var>projects under subdivision 3 equals or exceeds $22,030,000 plus any interest on bonds <br />
         		<a id="pl.54.12"></a><var>54.12</var>issued for the projects under subdivision 4. Any funds remaining after the expiration of <br />
         		<a id="pl.54.13"></a><var>54.13</var>the taxes and retirement of the bonds shall be placed in a capital project fund of the city of <br />
         		<a id="pl.54.14"></a><var>54.14</var>Brainerd. The taxes imposed under subdivision 1 and 2 may expire at an earlier time if the <br />
         		<a id="pl.54.15"></a><var>54.15</var>city of Brainerd so determines by ordinance.<br />
         		<a id="pl.54.16"></a><var>54.16</var>(b) Notwithstanding Minnesota Statutes, sections 297A.99 and 477A.016, or any <br />
         		<a id="pl.54.17"></a><var>54.17</var>other contrary provision of law, ordinance, or city charter, the city of Brainerd may, by <br />
         		<a id="pl.54.18"></a><var>54.18</var>ordinance, extend the taxes authorized under subdivisions 1 and 2 beyond the termination <br />
         		<a id="pl.54.19"></a><var>54.19</var>date in paragraph (a) if approved by the voters of the city at a general election held in 2014. <br />
         		<a id="pl.54.20"></a><var>54.20</var>The question put to the voters must indicate that an affirmative vote would extend the <br />
         		<a id="pl.54.21"></a><var>54.21</var>imposition of the taxes for an additional 18 years or until an additional $15,000,000 above <br />
         		<a id="pl.54.22"></a><var>54.22</var>the initial amount authorized to pay for $22,030,000 in bonds is raised. If extended under <br />
         		<a id="pl.54.23"></a><var>54.23</var>this paragraph, the taxes authorized in subdivisions 1 and 2 will terminate at the earlier of <br />
         		<a id="pl.54.24"></a><var>54.24</var>(1) when an additional $15,000,000 above the amount authorized under paragraph (a) is <br />
         		<a id="pl.54.25"></a><var>54.25</var>raised, or (2) 18 years after the taxes would have expired under paragraph (a).<br />
         		<a id="pl.54.26"></a><var>54.26</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br />
         		<a id="pl.54.27"></a><var>54.27</var>the city of Brainerd and its chief clerical officer comply with Minnesota Statutes, section <br />
         		<a id="pl.54.28"></a><var>54.28</var>645.021, subdivisions 2 and 3.<br />
         		<br />
         		<a id="bill.3.30.0"></a><a id="pl.54.29"></a><var>54.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 30. Laws 2013, chapter 143, article 8, section 22, the effective date, is amended to <br />
         		<a id="pl.54.30"></a><var>54.30</var>read:<br />
         		<a id="pl.54.31"></a><var>54.31</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br />
         		<a id="pl.54.32"></a><var>54.32</var>June 30, 2013. Subdivision 7, paragraph (c), clause (2), is effective for sales and purchases <br />
         		<a id="pl.54.33"></a><var>54.33</var>made after June 30, 2013. The provisions of subdivision 7, paragraph (b), and paragraph <br />
         		<a id="pl.55.1"></a><var>55.1</var>(c), clause (8), are effective retroactively for sales and purchases made after April 1, <br />
         		<a id="pl.55.2"></a><var>55.2</var>2009. Any vendor who paid sales or use tax on items now exempt under subdivision 7, <br />
         		<a id="pl.55.3"></a><var>55.3</var>paragraph (b), and paragraph (c), clause (8), that were sold after April 1, 2009, and before <br />
         		<a id="pl.55.4"></a><var>55.4</var>July 1, 2013, may apply for a refund of the sales or use tax paid in the manner provided <br />
         		<a id="pl.55.5"></a><var>55.5</var>in Minnesota Statutes, section 289A.50, subdivision 1, but only if the vendor did not <br />
         		<a id="pl.55.6"></a><var>55.6</var>collect and remit sales tax on the items for which a refund is claimed. Interest on the <br />
         		<a id="pl.55.7"></a><var>55.7</var>refund shall be paid at the rate in Minnesota Statutes, section 270C.405, from 90 days <br />
         		<a id="pl.55.8"></a><var>55.8</var>after the refund claim is filed with the commissioner of revenue. The amount to make the <br />
         		<a id="pl.55.9"></a><var>55.9</var>refunds is annually appropriated to the commissioner of revenue from the general fund. <br />
         		<a id="pl.55.10"></a><var>55.10</var>Notwithstanding limitations on claims for refunds under Minnesota Statutes, section <br />
         		<a id="pl.55.11"></a><var>55.11</var>289A.40, claims may be filed with the commissioner until June 30, 2015.<br />
         		<a id="pl.55.12"></a><var>55.12</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.3.31.0"></a><a id="pl.55.13"></a><var>55.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 31. Laws 2013, chapter 143, article 8, section 23, the effective date, is amended to <br />
         		<a id="pl.55.14"></a><var>55.14</var>read:<br />
         		<a id="pl.55.15"></a><var>55.15</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br />
         		<a id="pl.55.16"></a><var>55.16</var>June 30, 2013. This section is effective for sales and purchases made after June 30, 2013, <br />
         		<a id="pl.55.17"></a><var>55.17</var>except that the provision regarding accessories and supplies purchased in a transaction <br />
         		<a id="pl.55.18"></a><var>55.18</var>covered by Medicare or Medicaid that are not already exempt under Minnesota Statutes, <br />
         		<a id="pl.55.19"></a><var>55.19</var>section 297A.67, subdivision 7, and the provision defining "Medicare" and "Medicaid" <br />
         		<a id="pl.55.20"></a><var>55.20</var>are effective retroactively for sales and purchases made after April 1, 2009. Any vendor <br />
         		<a id="pl.55.21"></a><var>55.21</var>who paid sales or use tax on accessories and supplies purchased in a transaction covered <br />
         		<a id="pl.55.22"></a><var>55.22</var>by Medicare or Medicaid that are not already exempt under Minnesota Statutes, section <br />
         		<a id="pl.55.23"></a><var>55.23</var>297A.67, subdivision 7, and that were sold after April 1, 2009, and before July 1, 2013, <br />
         		<a id="pl.55.24"></a><var>55.24</var>may apply for a refund of the sales or use tax paid in the manner provided in Minnesota <br />
         		<a id="pl.55.25"></a><var>55.25</var>Statutes, section 289A.50, subdivision 1, but only if the vendor did not collect and remit <br />
         		<a id="pl.55.26"></a><var>55.26</var>sales tax on the accessories and supplies for which a refund is claimed. Interest on the <br />
         		<a id="pl.55.27"></a><var>55.27</var>refund shall be paid at the rate in Minnesota Statutes, section 270C.405, from 90 days <br />
         		<a id="pl.55.28"></a><var>55.28</var>after the refund claim is filed with the commissioner of revenue. The amount to make the <br />
         		<a id="pl.55.29"></a><var>55.29</var>refunds is annually appropriated to the commissioner of revenue from the general fund. <br />
         		<a id="pl.55.30"></a><var>55.30</var>Notwithstanding limitations on claims for refunds under Minnesota Statutes, section <br />
         		<a id="pl.55.31"></a><var>55.31</var>289A.40, claims may be filed with the commissioner until June 30, 2015.<br />
         		<a id="pl.55.32"></a><var>55.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.3.32.0"></a><a id="pl.56.1"></a><var>56.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 32. Laws 2013, chapter 143, article 8, section 27, the effective date, is amended to <br />
         		<a id="pl.56.2"></a><var>56.2</var>read:<br />
         		<a id="pl.56.3"></a><var>56.3</var><b>EFFECTIVE DATE.</b>For the purpose of qualifying under paragraphs (c) and (d), <br />
         		<a id="pl.56.4"></a><var>56.4</var>this section is effective retroactively for sales and purchases made after June 30, 2013<br />
         		<a id="pl.56.5"></a><var>56.5</var> 2012. For the purpose of determining eligibility for the exemptions provided in this <br />
         		<a id="pl.56.6"></a><var>56.6</var>section, this section is effective for sales and purchases of computer software maintenance <br />
         		<a id="pl.56.7"></a><var>56.7</var>agreements made after June 30, 2013, and for sales and purchases for either a "qualified <br />
         		<a id="pl.56.8"></a><var>56.8</var>refurbished data center" or a "qualified data center" made after June 30, 2013, except that <br />
         		<a id="pl.56.9"></a><var>56.9</var>if the data center qualifies as a "qualified data center" as defined in Laws 2011, First <br />
         		<a id="pl.56.10"></a><var>56.10</var>Special Session chapter 7, article 3, section 7, then the exemptions provided in this section, <br />
         		<a id="pl.56.11"></a><var>56.11</var>other than for computer software maintenance agreements, continue to be effective for <br />
         		<a id="pl.56.12"></a><var>56.12</var>sales and purchases made after June 30, 2012.<br />
         		<a id="pl.56.13"></a><var>56.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.3.33.0"></a><a id="pl.56.14"></a><var>56.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 33. Laws 2013, chapter 143, article 8, section 37, the effective date, is amended to <br />
         		<a id="pl.56.15"></a><var>56.15</var>read:<br />
         		<a id="pl.56.16"></a><var>56.16</var><b>EFFECTIVE DATE.</b>This section is effective retroactively to capital investments <br />
         		<a id="pl.56.17"></a><var>56.17</var>made and jobs created after December 31, 2012, and effective retroactively for sales and <br />
         		<a id="pl.56.18"></a><var>56.18</var>purchases made after December 31, 2012, and before July 1, 2019. Applications for <br />
         		<a id="pl.56.19"></a><var>56.19</var>refunds on purchases exempt under this section must not be filed before June 30, 2015.<br />
         		<a id="pl.56.20"></a><var>56.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.3.34.0"></a><a id="pl.56.21"></a><var>56.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 34. <b>CITY OF PROCTOR; LOCAL TAXES AUTHORIZED.</b><br />
         		<a id="pl.56.22"></a><var>56.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Food and beverage tax authorized.</b> Notwithstanding Minnesota <br />
         		<a id="pl.56.23"></a><var>56.23</var>Statutes, section 297A.99 or 477A.016, or any ordinance, city charter, or other provision <br />
         		<a id="pl.56.24"></a><var>56.24</var>of law, the city of Proctor may, by ordinance, impose a sales tax of up to one percent on <br />
         		<a id="pl.56.25"></a><var>56.25</var>the gross receipts of all food and beverages sold by a restaurant or place of refreshment, <br />
         		<a id="pl.56.26"></a><var>56.26</var>as defined by resolution of the city, that is located within the city. For purposes of this <br />
         		<a id="pl.56.27"></a><var>56.27</var>section, "food and beverages" include retail on-sale of intoxicating liquor and fermented <br />
         		<a id="pl.56.28"></a><var>56.28</var>malt beverages.<br />
         		<a id="pl.56.29"></a><var>56.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Use of proceeds from authorized taxes.</b> The proceeds of the taxes <br />
         		<a id="pl.56.30"></a><var>56.30</var>imposed under subdivision 1 must be used by the city to fund: (1) construction and <br />
         		<a id="pl.56.31"></a><var>56.31</var>improvement of walking and bicycle trails; (2) a multiuse civic center facility and parking <br />
         		<a id="pl.57.1"></a><var>57.1</var>improvements; and (3) improvements related to the redevelopment and realignment of a <br />
         		<a id="pl.57.2"></a><var>57.2</var>road through the fairgrounds property ceded to the city of Proctor by the city of Duluth.<br />
         		<a id="pl.57.3"></a><var>57.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Collection, administration, and enforcement.</b> The city may enter into <br />
         		<a id="pl.57.4"></a><var>57.4</var>an agreement with the commissioner of revenue to administer, collect, and enforce the <br />
         		<a id="pl.57.5"></a><var>57.5</var>taxes under subdivision 1. If the commissioner agrees to collect the tax, the provisions <br />
         		<a id="pl.57.6"></a><var>57.6</var>of Minnesota Statutes, section 297A.99, related to collection, administration, and <br />
         		<a id="pl.57.7"></a><var>57.7</var>enforcement, and Minnesota Statutes, section 270C.171, apply.<br />
         		<a id="pl.57.8"></a><var>57.8</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br />
         		<a id="pl.57.9"></a><var>57.9</var>the city of Proctor and its chief clerical officer comply with Minnesota Statutes, section <br />
         		<a id="pl.57.10"></a><var>57.10</var>645.021, subdivisions 2 and 3.<br />
         		<br />
         		<a id="bill.3.35.0"></a><a id="pl.57.11"></a><var>57.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 35. <b>DONATED MATERIALS FOR A LIBRARY EXPANSION.</b><br />
         		<a id="pl.57.12"></a><var>57.12</var>Building materials and supplies purchased and donated by a private entity and <br />
         		<a id="pl.57.13"></a><var>57.13</var>used in the construction of an addition to a city library facility occurring before July 1, <br />
         		<a id="pl.57.14"></a><var>57.14</var>2015, are exempt.<br />
         		<a id="pl.57.15"></a><var>57.15</var><b>EFFECTIVE DATE.</b>This section is effective for materials and supplies used in the <br />
         		<a id="pl.57.16"></a><var>57.16</var>construction of the addition between April 1, 2014, and July 1, 2015.<br />
         		<br />
         		<a id="bill.3.36.0"></a><a id="pl.57.17"></a><var>57.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 36. <b>VALIDATION OF PRIOR ACT; AUTHORIZATION.</b><br />
         		<a id="pl.57.18"></a><var>57.18</var>Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city of <br />
         		<a id="pl.57.19"></a><var>57.19</var>Albert Lea may approve Laws 2005, First Special Session chapter 3, article 5, section 38, <br />
         		<a id="pl.57.20"></a><var>57.20</var>as amended by Laws 2006, chapter 259, article 3, section 6, and file its approval with the <br />
         		<a id="pl.57.21"></a><var>57.21</var>secretary of state by June 15, 2014. If approved as authorized under this section, actions <br />
         		<a id="pl.57.22"></a><var>57.22</var>undertaken by the city pursuant to the approval of the voters on November 8, 2005, and <br />
         		<a id="pl.57.23"></a><var>57.23</var>otherwise in accordance with Laws 2005, First Special Session chapter 3, article 5, section <br />
         		<a id="pl.57.24"></a><var>57.24</var>38, as amended by Laws 2006, chapter 259, article 3, section 6, are validated.<br />
         		<a id="pl.57.25"></a><var>57.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.3.37.0"></a><a id="pl.57.26"></a><var>57.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 37. <b>SALES TO INSTRUMENTALITIES OF THE STATES.</b><br />
         		<a id="pl.57.27"></a><var>57.27</var>Sales of the following items to an organization defined by the Internal Revenue <br />
         		<a id="pl.57.28"></a><var>57.28</var>Service as an instrumentality of each, and all, of the states relating to the holding of an <br />
         		<a id="pl.57.29"></a><var>57.29</var>annual meeting in this state are exempt:<br />
         		<a id="pl.57.30"></a><var>57.30</var>(1) prepared food, soft drinks, and candy, as defined in Minnesota Statutes, section <br />
         		<a id="pl.57.31"></a><var>57.31</var>297A.61, subdivisions 31 to 33; and<br />
         		<a id="pl.58.1"></a><var>58.1</var>(2) alcoholic beverages, as defined in Minnesota Statutes, section 297A.67, <br />
         		<a id="pl.58.2"></a><var>58.2</var>subdivision 2.<br />
         		<a id="pl.58.3"></a><var>58.3</var><b>EFFECTIVE DATE.</b>This section is applicable to sales and purchases made after <br />
         		<a id="pl.58.4"></a><var>58.4</var>June 30, 2014, and before January 1, 2015.<br />
         		<br />
         		<a id="bill.3.38.0"></a><a id="pl.58.5"></a><var>58.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 38. <b>VOLUNTARY COMPLIANCE PROGRAM; ANIMAL SHELTERS.</b><br />
         		<a id="pl.58.6"></a><var>58.6</var>(a) Any Minnesota nonprofit organization that is primarily engaged in the business <br />
         		<a id="pl.58.7"></a><var>58.7</var>of rescuing, sheltering, and finding homes for unwanted animals, for periods prior to the <br />
         		<a id="pl.58.8"></a><var>58.8</var>organization registering to collect and remit sales and use tax under Minnesota Statutes, <br />
         		<a id="pl.58.9"></a><var>58.9</var>chapter 297A, shall not be liable for any state or local uncollected and unpaid sales and use <br />
         		<a id="pl.58.10"></a><var>58.10</var>tax, penalties, or interest incurred in providing animal rescue, shelter, and home placement <br />
         		<a id="pl.58.11"></a><var>58.11</var>services, if the nonprofit organization registers through the voluntary compliance program <br />
         		<a id="pl.58.12"></a><var>58.12</var>to collect and remit sales and use tax under Minnesota Statutes, chapter 297A, before <br />
         		<a id="pl.58.13"></a><var>58.13</var>January 1, 2015.<br />
         		<a id="pl.58.14"></a><var>58.14</var>(b) The voluntary compliance program under paragraph (a) also applies to <br />
         		<a id="pl.58.15"></a><var>58.15</var>organizations described in paragraph (a) that received notice of the commencement of an <br />
         		<a id="pl.58.16"></a><var>58.16</var>audit prior to registering to collect and remit sales and use tax under Minnesota Statutes, <br />
         		<a id="pl.58.17"></a><var>58.17</var>chapter 297A, as long as the audit is not finally resolved and the organization registers <br />
         		<a id="pl.58.18"></a><var>58.18</var>before January 1, 2015. Paragraph (a) shall not apply to sales and use taxes already paid or <br />
         		<a id="pl.58.19"></a><var>58.19</var>remitted to the state or to sales taxes already collected by the organization.<br />
         		<a id="pl.58.20"></a><var>58.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.4.0.0"></a><div class="xtend_ce"><a id="pl.58.21"></a><var>58.21</var><b>ARTICLE 4</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.58.22"></a><var>58.22</var><b>INCOME AND ESTATE TAXES</b><br />
            		
         </div><br />
         		<a id="bill.4.1.0"></a><a id="pl.58.23"></a><var>58.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. Minnesota Statutes 2013 Supplement, section 116J.8737, subdivision 2, as <br />
         		<a id="pl.58.24"></a><var>58.24</var>amended by Laws 2014, chapter 150, article 1, section 2, is amended to read:<br />
         		<a id="pl.58.25"></a><var>58.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Certification of qualified small businesses.</b> (a) Businesses may apply <br />
         		<a id="pl.58.26"></a><var>58.26</var>to the commissioner for certification as a qualified small business or qualified greater <br />
         		<a id="pl.58.27"></a><var>58.27</var>Minnesota small business for a calendar year. The application must be in the form <br />
         		<a id="pl.58.28"></a><var>58.28</var>and be made under the procedures specified by the commissioner, accompanied by an <br />
         		<a id="pl.58.29"></a><var>58.29</var>application fee of $150. Application fees are deposited in the small business investment <br />
         		<a id="pl.58.30"></a><var>58.30</var>tax credit administration account in the special revenue fund. The application for <br />
         		<a id="pl.58.31"></a><var>58.31</var>certification for 2010 must be made available on the department's Web site by August 1, <br />
         		<a id="pl.58.32"></a><var>58.32</var>2010. Applications for subsequent years' certification must be made available on the <br />
         		<a id="pl.58.33"></a><var>58.33</var>department's Web site by November 1 of the preceding year.<br />
         		<a id="pl.59.1"></a><var>59.1</var>(b) Within 30 days of receiving an application for certification under this subdivision, <br />
         		<a id="pl.59.2"></a><var>59.2</var>the commissioner must either certify the business as satisfying the conditions required <br />
         		<a id="pl.59.3"></a><var>59.3</var>of a qualified small business or qualified greater Minnesota small business, request <br />
         		<a id="pl.59.4"></a><var>59.4</var>additional information from the business, or reject the application for certification. If <br />
         		<a id="pl.59.5"></a><var>59.5</var>the commissioner requests additional information from the business, the commissioner <br />
         		<a id="pl.59.6"></a><var>59.6</var>must either certify the business or reject the application within 30 days of receiving the <br />
         		<a id="pl.59.7"></a><var>59.7</var>additional information. If the commissioner neither certifies the business nor rejects <br />
         		<a id="pl.59.8"></a><var>59.8</var>the application within 30 days of receiving the original application or within 30 days of <br />
         		<a id="pl.59.9"></a><var>59.9</var>receiving the additional information requested, whichever is later, then the application is <br />
         		<a id="pl.59.10"></a><var>59.10</var>deemed rejected, and the commissioner must refund the $150 application fee. A business <br />
         		<a id="pl.59.11"></a><var>59.11</var>that applies for certification and is rejected may reapply.<br />
         		<a id="pl.59.12"></a><var>59.12</var>(c) To receive certification as a qualified small business, a business must satisfy <br />
         		<a id="pl.59.13"></a><var>59.13</var>all of the following conditions:<br />
         		<a id="pl.59.14"></a><var>59.14</var>(1) the business has its headquarters in Minnesota;<br />
         		<a id="pl.59.15"></a><var>59.15</var>(2) at least 51 percent of the business's employees are employed in Minnesota, and <br />
         		<a id="pl.59.16"></a><var>59.16</var>51 percent of the business's total payroll is paid or incurred in the state;<br />
         		<a id="pl.59.17"></a><var>59.17</var>(3) the business is engaged in, or is committed to engage in, innovation in Minnesota <br />
         		<a id="pl.59.18"></a><var>59.18</var>in one of the following as its primary business activity:<br />
         		<a id="pl.59.19"></a><var>59.19</var>(i) using proprietary technology to add value to a product, process, or service in a <br />
         		<a id="pl.59.20"></a><var>59.20</var>qualified high-technology field;<br />
         		<a id="pl.59.21"></a><var>59.21</var>(ii) researching or developing a proprietary product, process, or service in a qualified <br />
         		<a id="pl.59.22"></a><var>59.22</var>high-technology field; or<br />
         		<a id="pl.59.23"></a><var>59.23</var>(iii) researching or developing a proprietary product, process, or service in the fields <br />
         		<a id="pl.59.24"></a><var>59.24</var>of agriculture, tourism, forestry, mining, manufacturing, or transportation; or<br />
         		<a id="pl.59.25"></a><var>59.25</var>(iii) (iv) researching, developing, or producing a new proprietary technology for use <br />
         		<a id="pl.59.26"></a><var>59.26</var>in the fields of agriculture, tourism, forestry, mining, manufacturing, or transportation;<br />
         		<a id="pl.59.27"></a><var>59.27</var>(4) other than the activities specifically listed in clause (3), the business is not <br />
         		<a id="pl.59.28"></a><var>59.28</var>engaged in real estate development, insurance, banking, lending, lobbying, political <br />
         		<a id="pl.59.29"></a><var>59.29</var>consulting, information technology consulting, wholesale or retail trade, leisure, <br />
         		<a id="pl.59.30"></a><var>59.30</var>hospitality, transportation, construction, ethanol production from corn, or professional <br />
         		<a id="pl.59.31"></a><var>59.31</var>services provided by attorneys, accountants, business consultants, physicians, or health <br />
         		<a id="pl.59.32"></a><var>59.32</var>care consultants;<br />
         		<a id="pl.59.33"></a><var>59.33</var>(5) the business has fewer than 25 employees;<br />
         		<a id="pl.59.34"></a><var>59.34</var>(6) the business must pay its employees annual wages of at least 175 percent of the <br />
         		<a id="pl.59.35"></a><var>59.35</var>federal poverty guideline for the year for a family of four and must pay its interns annual <br />
         		<a id="pl.59.36"></a><var>59.36</var>wages of at least 175 percent of the federal minimum wage used for federally covered <br />
         		<a id="pl.60.1"></a><var>60.1</var>employers, except that this requirement must be reduced proportionately for employees <br />
         		<a id="pl.60.2"></a><var>60.2</var>and interns who work less than full-time, and does not apply to an executive, officer, or <br />
         		<a id="pl.60.3"></a><var>60.3</var>member of the board of the business, or to any employee who owns, controls, or holds <br />
         		<a id="pl.60.4"></a><var>60.4</var>power to vote more than 20 percent of the outstanding securities of the business;<br />
         		<a id="pl.60.5"></a><var>60.5</var>(7) the business has (i) not been in operation for more than ten years, or (ii) not <br />
         		<a id="pl.60.6"></a><var>60.6</var>been in operation for more than 20 years if the business is engaged in the research, <br />
         		<a id="pl.60.7"></a><var>60.7</var>development, or production of medical devices or pharmaceuticals for which United <br />
         		<a id="pl.60.8"></a><var>60.8</var>States Food and Drug Administration approval is required for use in the treatment or <br />
         		<a id="pl.60.9"></a><var>60.9</var>diagnosis of a disease or condition;<br />
         		<a id="pl.60.10"></a><var>60.10</var>(8) the business has not previously received private equity investments of more <br />
         		<a id="pl.60.11"></a><var>60.11</var>than $4,000,000;<br />
         		<a id="pl.60.12"></a><var>60.12</var>&nbsp;&nbsp;&nbsp;&nbsp;(9) the business is not an entity disqualified under section 
         <statute_ref>80A.50</statute_ref>, paragraph (b), <br />
         		<a id="pl.60.13"></a><var>60.13</var>clause (3); and<br />
         		<a id="pl.60.14"></a><var>60.14</var>(10) the business has not issued securities that are traded on a public exchange.<br />
         		<a id="pl.60.15"></a><var>60.15</var>(d) In applying the limit under paragraph (c), clause (5), the employees in all members <br />
         		<a id="pl.60.16"></a><var>60.16</var>of the unitary business, as defined in section 
         <statute_ref>290.17, subdivision 4</statute_ref>, must be included.<br />
         		<a id="pl.60.17"></a><var>60.17</var>(e) In order for a qualified investment in a business to be eligible for tax credits:<br />
         		<a id="pl.60.18"></a><var>60.18</var>(1) the business must have applied for and received certification for the calendar <br />
         		<a id="pl.60.19"></a><var>60.19</var>year in which the investment was made prior to the date on which the qualified investment <br />
         		<a id="pl.60.20"></a><var>60.20</var>was made;<br />
         		<a id="pl.60.21"></a><var>60.21</var>(2) the business must not have issued securities that are traded on a public exchange;<br />
         		<a id="pl.60.22"></a><var>60.22</var>(3) the business must not issue securities that are traded on a public exchange within <br />
         		<a id="pl.60.23"></a><var>60.23</var>180 days after the date on which the qualified investment was made; and<br />
         		<a id="pl.60.24"></a><var>60.24</var>(4) the business must not have a liquidation event within 180 days after the date on <br />
         		<a id="pl.60.25"></a><var>60.25</var>which the qualified investment was made.<br />
         		<a id="pl.60.26"></a><var>60.26</var>(f) The commissioner must maintain a list of qualified small businesses and qualified <br />
         		<a id="pl.60.27"></a><var>60.27</var>greater Minnesota businesses certified under this subdivision for the calendar year and <br />
         		<a id="pl.60.28"></a><var>60.28</var>make the list accessible to the public on the department's Web site.<br />
         		<a id="pl.60.29"></a><var>60.29</var>(g) For purposes of this subdivision, the following terms have the meanings given:<br />
         		<a id="pl.60.30"></a><var>60.30</var>(1) "qualified high-technology field" includes aerospace, agricultural processing, <br />
         		<a id="pl.60.31"></a><var>60.31</var>renewable energy, energy efficiency and conservation, environmental engineering, food <br />
         		<a id="pl.60.32"></a><var>60.32</var>technology, cellulosic ethanol, information technology, materials science technology, <br />
         		<a id="pl.60.33"></a><var>60.33</var>nanotechnology, telecommunications, biotechnology, medical device products, <br />
         		<a id="pl.60.34"></a><var>60.34</var>pharmaceuticals, diagnostics, biologicals, chemistry, veterinary science, and similar fields; <br />
         		<a id="pl.61.1"></a><var>61.1</var>(2) "proprietary technology" means the technical innovations that are unique and <br />
         		<a id="pl.61.2"></a><var>61.2</var>legally owned or licensed by a business and includes, without limitation, those innovations <br />
         		<a id="pl.61.3"></a><var>61.3</var>that are patented, patent pending, a subject of trade secrets, or copyrighted; and<br />
         		<a id="pl.61.4"></a><var>61.4</var>(3) "greater Minnesota" means the area of Minnesota located outside of the <br />
         		<a id="pl.61.5"></a><var>61.5</var>metropolitan area as defined in section 
         <statute_ref>473.121, subdivision 2</statute_ref>.<br />
         		<a id="pl.61.6"></a><var>61.6</var>(h) To receive certification as a qualified greater Minnesota business, a business must <br />
         		<a id="pl.61.7"></a><var>61.7</var>satisfy all of the requirements of paragraph (c) and must satisfy the following conditions:<br />
         		<a id="pl.61.8"></a><var>61.8</var>(1) the business has its headquarters in greater Minnesota; and<br />
         		<a id="pl.61.9"></a><var>61.9</var>(2) at least 51 percent of the business's employees are employed in greater Minnesota, <br />
         		<a id="pl.61.10"></a><var>61.10</var>and 51 percent of the business's total payroll is paid or incurred in greater Minnesota.<br />
         		<a id="pl.61.11"></a><var>61.11</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.61.12"></a><var>61.12</var>December 31, 2013.<br />
         		<br />
         		<a id="bill.4.2.0"></a><a id="pl.61.13"></a><var>61.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. Minnesota Statutes 2012, section 116J.8737, subdivision 5, as amended by <br />
         		<a id="pl.61.14"></a><var>61.14</var>Laws 2014, chapter 150, article 1, section 3, is amended to read:<br />
         		<a id="pl.61.15"></a><var>61.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Credit allowed.</b> (a) (1) A qualified investor or qualified fund is eligible <br />
         		<a id="pl.61.16"></a><var>61.16</var>for a credit equal to 25 percent of the qualified investment in a qualified small business. <br />
         		<a id="pl.61.17"></a><var>61.17</var>Investments made by a pass-through entity qualify for a credit only if the entity is a <br />
         		<a id="pl.61.18"></a><var>61.18</var>qualified fund. The commissioner must not allocate more than $15,000,000<br />
         		<a id="pl.61.19"></a><var>61.19</var>$15,000,000 in credits to qualified investors or qualified funds for taxable years <br />
         		<a id="pl.61.20"></a><var>61.20</var>beginning after December 31, 2013, and before January 1, 2017; and <br />
         		<a id="pl.61.21"></a><var>61.21</var>(2) for taxable years beginning after December 31, 2014, and before January 1, <br />
         		<a id="pl.61.22"></a><var>61.22</var>2017, $7,500,000 must be allocated to credits for qualifying investments in qualified <br />
         		<a id="pl.61.23"></a><var>61.23</var>greater Minnesota businesses and minority- or women-owned qualified small businesses <br />
         		<a id="pl.61.24"></a><var>61.24</var>in Minnesota. Any portion of a taxable year's credits that is reserved for qualifying <br />
         		<a id="pl.61.25"></a><var>61.25</var>investments in greater Minnesota businesses and minority- or women-owned qualified <br />
         		<a id="pl.61.26"></a><var>61.26</var>small businesses in Minnesota that is not allocated by September 30 of the taxable year is <br />
         		<a id="pl.61.27"></a><var>61.27</var>available for allocation to other credit applications beginning on October 1. Any portion <br />
         		<a id="pl.61.28"></a><var>61.28</var>of a taxable year's credits that is not allocated by the commissioner does not cancel and <br />
         		<a id="pl.61.29"></a><var>61.29</var>may be carried forward to subsequent taxable years until all credits have been allocated.<br />
         		<a id="pl.61.30"></a><var>61.30</var>(b) The commissioner may not allocate more than a total maximum amount in credits <br />
         		<a id="pl.61.31"></a><var>61.31</var>for a taxable year to a qualified investor for the investor's cumulative qualified investments <br />
         		<a id="pl.61.32"></a><var>61.32</var>as an individual qualified investor and as an investor in a qualified fund; for married <br />
         		<a id="pl.61.33"></a><var>61.33</var>couples filing joint returns the maximum is $250,000, and for all other filers the maximum <br />
         		<a id="pl.61.34"></a><var>61.34</var>is $125,000. The commissioner may not allocate more than a total of $1,000,000 in credits <br />
         		<a id="pl.61.35"></a><var>61.35</var>over all taxable years for qualified investments in any one qualified small business.<br />
         		<a id="pl.62.1"></a><var>62.1</var>(c) The commissioner may not allocate a credit to a qualified investor either as <br />
         		<a id="pl.62.2"></a><var>62.2</var>an individual qualified investor or as an investor in a qualified fund if, at the time the <br />
         		<a id="pl.62.3"></a><var>62.3</var>investment is proposed:<br />
         		<a id="pl.62.4"></a><var>62.4</var>(1) the investor is an officer or principal of the qualified small business; or<br />
         		<a id="pl.62.5"></a><var>62.5</var>(2) the investor, either individually or in combination with one or more members of <br />
         		<a id="pl.62.6"></a><var>62.6</var>the investor's family, owns, controls, or holds the power to vote 20 percent or more of <br />
         		<a id="pl.62.7"></a><var>62.7</var>the outstanding securities of the qualified small business. <br />
         		<a id="pl.62.8"></a><var>62.8</var>A member of the family of an individual disqualified by this paragraph is not eligible for a <br />
         		<a id="pl.62.9"></a><var>62.9</var>credit under this section. For a married couple filing a joint return, the limitations in this <br />
         		<a id="pl.62.10"></a><var>62.10</var>paragraph apply collectively to the investor and spouse. For purposes of determining the <br />
         		<a id="pl.62.11"></a><var>62.11</var>ownership interest of an investor under this paragraph, the rules under section 267(c) and <br />
         		<a id="pl.62.12"></a><var>62.12</var>267(e) of the Internal Revenue Code apply.<br />
         		<a id="pl.62.13"></a><var>62.13</var>(d) Applications for tax credits for 2010 must be made available on the department's <br />
         		<a id="pl.62.14"></a><var>62.14</var>Web site by September 1, 2010, and the department must begin accepting applications <br />
         		<a id="pl.62.15"></a><var>62.15</var>by September 1, 2010. Applications for subsequent years must be made available by <br />
         		<a id="pl.62.16"></a><var>62.16</var>November 1 of the preceding year.<br />
         		<a id="pl.62.17"></a><var>62.17</var>(e) Qualified investors and qualified funds must apply to the commissioner for tax <br />
         		<a id="pl.62.18"></a><var>62.18</var>credits. Tax credits must be allocated to qualified investors or qualified funds in the order <br />
         		<a id="pl.62.19"></a><var>62.19</var>that the tax credit request applications are filed with the department. The commissioner <br />
         		<a id="pl.62.20"></a><var>62.20</var>must approve or reject tax credit request applications within 15 days of receiving the <br />
         		<a id="pl.62.21"></a><var>62.21</var>application. The commissioner must allocate credits to approved applications if credits <br />
         		<a id="pl.62.22"></a><var>62.22</var>remain available. The investment specified in the application must be made within 60 days <br />
         		<a id="pl.62.23"></a><var>62.23</var>of the allocation of the credits. If the investment is not made within 60 days, the credit <br />
         		<a id="pl.62.24"></a><var>62.24</var>allocation is canceled and available for reallocation. A qualified investor or qualified fund <br />
         		<a id="pl.62.25"></a><var>62.25</var>that fails to invest as specified in the application, within 60 days of allocation of the <br />
         		<a id="pl.62.26"></a><var>62.26</var>credits, must notify the commissioner of the failure to invest within five business days of <br />
         		<a id="pl.62.27"></a><var>62.27</var>the expiration of the 60-day investment period. Credit applications that were approved but <br />
         		<a id="pl.62.28"></a><var>62.28</var>that did not receive an allocation of credits at the time of approval because the aggregate <br />
         		<a id="pl.62.29"></a><var>62.29</var>limit of credits for the year was exhausted remain eligible for allocation of credits if <br />
         		<a id="pl.62.30"></a><var>62.30</var>additional credits become available due to cancellations under this paragraph or due to <br />
         		<a id="pl.62.31"></a><var>62.31</var>termination of the time period for credits reserved for investment in qualified greater <br />
         		<a id="pl.62.32"></a><var>62.32</var>Minnesota businesses and minority- and women-owned small businesses under paragraph <br />
         		<a id="pl.62.33"></a><var>62.33</var>(a). Approved credit applications that do not receive credit allocations in the tax year must <br />
         		<a id="pl.62.34"></a><var>62.34</var>be resubmitted to be eligible for credit allocations in the following tax year.<br />
         		<a id="pl.62.35"></a><var>62.35</var>(f) All tax credit request applications filed with the department on the same day must <br />
         		<a id="pl.62.36"></a><var>62.36</var>be treated as having been filed contemporaneously. If two or more qualified investors or <br />
         		<a id="pl.63.1"></a><var>63.1</var>qualified funds file tax credit request applications on the same day, and the aggregate <br />
         		<a id="pl.63.2"></a><var>63.2</var>amount of credit allocation claims exceeds the aggregate limit of credits under this section <br />
         		<a id="pl.63.3"></a><var>63.3</var>or the lesser amount of credits that remain unallocated on that day, then the credits must <br />
         		<a id="pl.63.4"></a><var>63.4</var>be allocated among the qualified investors or qualified funds who filed on that day on a <br />
         		<a id="pl.63.5"></a><var>63.5</var>pro rata basis with respect to the amounts claimed. The pro rata allocation for any one <br />
         		<a id="pl.63.6"></a><var>63.6</var>qualified investor or qualified fund is the product obtained by multiplying a fraction, <br />
         		<a id="pl.63.7"></a><var>63.7</var>the numerator of which is the amount of the credit allocation claim filed on behalf of <br />
         		<a id="pl.63.8"></a><var>63.8</var>a qualified investor and the denominator of which is the total of all credit allocation <br />
         		<a id="pl.63.9"></a><var>63.9</var>claims filed on behalf of all applicants on that day, by the amount of credits that remain <br />
         		<a id="pl.63.10"></a><var>63.10</var>unallocated on that day for the taxable year.<br />
         		<a id="pl.63.11"></a><var>63.11</var>(g) A qualified investor or qualified fund, or a qualified small business acting on their <br />
         		<a id="pl.63.12"></a><var>63.12</var>behalf, must notify the commissioner when an investment for which credits were allocated <br />
         		<a id="pl.63.13"></a><var>63.13</var>has been made, and the taxable year in which the investment was made. A qualified fund <br />
         		<a id="pl.63.14"></a><var>63.14</var>must also provide the commissioner with a statement indicating the amount invested by <br />
         		<a id="pl.63.15"></a><var>63.15</var>each investor in the qualified fund based on each investor's share of the assets of the <br />
         		<a id="pl.63.16"></a><var>63.16</var>qualified fund at the time of the qualified investment. After receiving notification that the <br />
         		<a id="pl.63.17"></a><var>63.17</var>investment was made, the commissioner must issue credit certificates for the taxable year <br />
         		<a id="pl.63.18"></a><var>63.18</var>in which the investment was made to the qualified investor or, for an investment made by <br />
         		<a id="pl.63.19"></a><var>63.19</var>a qualified fund, to each qualified investor who is an investor in the fund. The certificate <br />
         		<a id="pl.63.20"></a><var>63.20</var>must state that the credit is subject to revocation if the qualified investor or qualified <br />
         		<a id="pl.63.21"></a><var>63.21</var>fund does not hold the investment in the qualified small business for at least three years, <br />
         		<a id="pl.63.22"></a><var>63.22</var>consisting of the calendar year in which the investment was made and the two following <br />
         		<a id="pl.63.23"></a><var>63.23</var>years. The three-year holding period does not apply if:<br />
         		<a id="pl.63.24"></a><var>63.24</var>(1) the investment by the qualified investor or qualified fund becomes worthless <br />
         		<a id="pl.63.25"></a><var>63.25</var>before the end of the three-year period;<br />
         		<a id="pl.63.26"></a><var>63.26</var>(2) 80 percent or more of the assets of the qualified small business is sold before <br />
         		<a id="pl.63.27"></a><var>63.27</var>the end of the three-year period;<br />
         		<a id="pl.63.28"></a><var>63.28</var>(3) the qualified small business is sold before the end of the three-year period;<br />
         		<a id="pl.63.29"></a><var>63.29</var>(4) the qualified small business's common stock begins trading on a public exchange <br />
         		<a id="pl.63.30"></a><var>63.30</var>before the end of the three-year period; or<br />
         		<a id="pl.63.31"></a><var>63.31</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) the qualified investor dies before the end of the three-year period.<br />
         		<a id="pl.63.32"></a><var>63.32</var>(h) The commissioner must notify the commissioner of revenue of credit certificates <br />
         		<a id="pl.63.33"></a><var>63.33</var>issued under this section.<br />
         		<a id="pl.63.34"></a><var>63.34</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.4.3.0"></a><a id="pl.64.1"></a><var>64.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. Minnesota Statutes 2012, section 116J.8737, is amended by adding a <br />
         		<a id="pl.64.2"></a><var>64.2</var>subdivision to read:<br />
         		<a id="pl.64.3"></a><var>64.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5a. <b>Promotion of credit in greater Minnesota.</b> (a) By July 1, 2014, <br />
         		<a id="pl.64.4"></a><var>64.4</var>the commissioner shall develop a plan to increase awareness of and use of the credit <br />
         		<a id="pl.64.5"></a><var>64.5</var>for investments in qualified greater Minnesota businesses and minority-owned and <br />
         		<a id="pl.64.6"></a><var>64.6</var>women-owned qualified small businesses with the goal that the portion of the credit <br />
         		<a id="pl.64.7"></a><var>64.7</var>reserved for investments in qualified greater Minnesota businesses and minority-owned <br />
         		<a id="pl.64.8"></a><var>64.8</var>and women-owned qualified small businesses is allocated in full to those investments.<br />
         		<a id="pl.64.9"></a><var>64.9</var>(b) Beginning with the legislative report due on March 15, 2015, under subdivision <br />
         		<a id="pl.64.10"></a><var>64.10</var>9, the commissioner shall report on its plan under this subdivision and the results achieved.<br />
         		<a id="pl.64.11"></a><var>64.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.4.4.0"></a><a id="pl.64.12"></a><var>64.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 4. Minnesota Statutes 2013 Supplement, section 136A.129, subdivision 1, is <br />
         		<a id="pl.64.13"></a><var>64.13</var>amended to read:<br />
         		<a id="pl.64.14"></a><var>64.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Definitions.</b> (a) For the purposes of this section, the terms defined in <br />
         		<a id="pl.64.15"></a><var>64.15</var>this subdivision have the meanings given to them.<br />
         		<a id="pl.64.16"></a><var>64.16</var>(b) "Eligible employer" means a taxpayer under section 
         <statute_ref>290.01</statute_ref> with employees <br />
         		<a id="pl.64.17"></a><var>64.17</var>located in greater Minnesota.<br />
         		<a id="pl.64.18"></a><var>64.18</var>(c) "Eligible institution" means a Minnesota public postsecondary institution or <br />
         		<a id="pl.64.19"></a><var>64.19</var>a Minnesota private, nonprofit, baccalaureate, or graduate degree-granting college or <br />
         		<a id="pl.64.20"></a><var>64.20</var>university.<br />
         		<a id="pl.64.21"></a><var>64.21</var>(d) "Eligible student" means a student enrolled in an eligible institution who has <br />
         		<a id="pl.64.22"></a><var>64.22</var>completed one-half of the credits necessary for the respective degree or certification, <br />
         		<a id="pl.64.23"></a><var>64.23</var>including a graduate degree.<br />
         		<a id="pl.64.24"></a><var>64.24</var>(e) "Greater Minnesota" means the area of the state outside of the counties of Anoka, <br />
         		<a id="pl.64.25"></a><var>64.25</var>Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington, and <br />
         		<a id="pl.64.26"></a><var>64.26</var>Wright.<br />
         		<a id="pl.64.27"></a><var>64.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.4.5.0"></a><a id="pl.64.28"></a><var>64.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 5. Minnesota Statutes 2013 Supplement, section 136A.129, subdivision 3, is <br />
         		<a id="pl.64.29"></a><var>64.29</var>amended to read:<br />
         		<a id="pl.64.30"></a><var>64.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Program components.</b> (a) An intern must be an eligible student who has <br />
         		<a id="pl.64.31"></a><var>64.31</var>been admitted to a major program that is related to the intern experience as determined <br />
         		<a id="pl.64.32"></a><var>64.32</var>by the eligible institution.<br />
         		<a id="pl.64.33"></a><var>64.33</var>(b) To participate in the program, an eligible institution must:<br />
         		<a id="pl.65.1"></a><var>65.1</var>(1) enter into written agreements with eligible employers to provide internships that <br />
         		<a id="pl.65.2"></a><var>65.2</var>are at least 12 eight weeks long and located in greater Minnesota;<br />
         		<a id="pl.65.3"></a><var>65.3</var>(2) determine that the work experience of the internship is related to the eligible <br />
         		<a id="pl.65.4"></a><var>65.4</var>student's course of study; and<br />
         		<a id="pl.65.5"></a><var>65.5</var>(3) (2) provide academic credit for the successful completion of the internship or <br />
         		<a id="pl.65.6"></a><var>65.6</var>ensure that it fulfills requirements necessary to complete a vocational technical education <br />
         		<a id="pl.65.7"></a><var>65.7</var>program.<br />
         		<a id="pl.65.8"></a><var>65.8</var>(c) To participate in the program, an eligible employer must enter into a written <br />
         		<a id="pl.65.9"></a><var>65.9</var>agreement with an eligible institution specifying that the intern:<br />
         		<a id="pl.65.10"></a><var>65.10</var>(1) would not have been hired without the tax credit described in subdivision 4;<br />
         		<a id="pl.65.11"></a><var>65.11</var>(2) did not work for the employer in the same or a similar job prior to entering <br />
         		<a id="pl.65.12"></a><var>65.12</var>the agreement;<br />
         		<a id="pl.65.13"></a><var>65.13</var>(3) does not replace an existing employee;<br />
         		<a id="pl.65.14"></a><var>65.14</var>(4) has not previously participated in the program;<br />
         		<a id="pl.65.15"></a><var>65.15</var>(5) will be employed at a location in greater Minnesota;<br />
         		<a id="pl.65.16"></a><var>65.16</var>(6) will be paid at least minimum wage for a minimum of 16 hours per week for a <br />
         		<a id="pl.65.17"></a><var>65.17</var>period of at least 12 eight weeks; and<br />
         		<a id="pl.65.18"></a><var>65.18</var>(7) will be supervised and evaluated by the employer.<br />
         		<a id="pl.65.19"></a><var>65.19</var>(d) The written agreement between the eligible institution and the eligible employer <br />
         		<a id="pl.65.20"></a><var>65.20</var>must certify a credit amount to the employer, not to exceed $2,000 per intern. The total <br />
         		<a id="pl.65.21"></a><var>65.21</var>dollar amount of credits that an eligible institution certifies to eligible employers in a <br />
         		<a id="pl.65.22"></a><var>65.22</var>calendar year may not exceed the amount of its allocation under subdivision 4.<br />
         		<a id="pl.65.23"></a><var>65.23</var>(e) Participating eligible institutions and eligible employers must report annually to <br />
         		<a id="pl.65.24"></a><var>65.24</var>the office. The report must include at least the following:<br />
         		<a id="pl.65.25"></a><var>65.25</var>(1) the number of interns hired;<br />
         		<a id="pl.65.26"></a><var>65.26</var>(2) the number of hours and weeks worked by interns; and<br />
         		<a id="pl.65.27"></a><var>65.27</var>(3) the compensation paid to interns.<br />
         		<a id="pl.65.28"></a><var>65.28</var>(f) An internship required to complete an academic program does not qualify for the <br />
         		<a id="pl.65.29"></a><var>65.29</var>greater Minnesota internship program under this section.<br />
         		<a id="pl.65.30"></a><var>65.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.4.6.0"></a><a id="pl.65.31"></a><var>65.31</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 6. Minnesota Statutes 2013 Supplement, section 136A.129, subdivision 5, is <br />
         		<a id="pl.65.32"></a><var>65.32</var>amended to read:<br />
         		<a id="pl.65.33"></a><var>65.33</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Reports to the legislature.</b> (a) By February 1, 2015 2016, the office <br />
         		<a id="pl.65.34"></a><var>65.34</var>and the Department of Revenue shall report to the legislature on the greater Minnesota <br />
         		<a id="pl.65.35"></a><var>65.35</var>internship program. The report must include at least the following:<br />
         		<a id="pl.66.1"></a><var>66.1</var>(1) the number and dollar amount of credits allowed;<br />
         		<a id="pl.66.2"></a><var>66.2</var>(2) the number of interns employed under the program; and<br />
         		<a id="pl.66.3"></a><var>66.3</var>(3) the cost of administering the program.<br />
         		<a id="pl.66.4"></a><var>66.4</var>(b) By February 1, 2016 2017, the office and the Department of Revenue shall <br />
         		<a id="pl.66.5"></a><var>66.5</var>report to the legislature with an analysis of the effectiveness of the program in stimulating <br />
         		<a id="pl.66.6"></a><var>66.6</var>businesses to hire interns and in assisting participating interns in finding permanent <br />
         		<a id="pl.66.7"></a><var>66.7</var>career positions. This report must include the number of students who participated in the <br />
         		<a id="pl.66.8"></a><var>66.8</var>program who were subsequently employed full-time by the employer.<br />
         		<a id="pl.66.9"></a><var>66.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.4.7.0"></a><a id="pl.66.10"></a><var>66.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 7. Minnesota Statutes 2013 Supplement, section 270B.01, subdivision 8, is <br />
         		<a id="pl.66.11"></a><var>66.11</var>amended to read:<br />
         		<a id="pl.66.12"></a><var>66.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 8. <b>Minnesota tax laws.</b> For purposes of this chapter only, unless expressly <br />
         		<a id="pl.66.13"></a><var>66.13</var>stated otherwise, "Minnesota tax laws" means:<br />
         		<a id="pl.66.14"></a><var>66.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) the taxes, refunds, and fees administered by or paid to the commissioner under <br />
         		<a id="pl.66.15"></a><var>66.15</var>chapters 115B, 289A (except taxes imposed under sections 
         <statute_ref>298.01</statute_ref>, 
         <statute_ref>298.015</statute_ref>, and 
         <statute_ref>298.24</statute_ref>), <br />
         		<a id="pl.66.16"></a><var>66.16</var>290, 290A, 291, 292, 295, 297A, 297B, 297H, and 403, or any similar Indian tribal tax <br />
         		<a id="pl.66.17"></a><var>66.17</var>administered by the commissioner pursuant to any tax agreement between the state and <br />
         		<a id="pl.66.18"></a><var>66.18</var>the Indian tribal government, and includes any laws for the assessment, collection, and <br />
         		<a id="pl.66.19"></a><var>66.19</var>enforcement of those taxes, refunds, and fees; and<br />
         		<a id="pl.66.20"></a><var>66.20</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) section 
         <statute_ref>273.1315</statute_ref>.<br />
         		<a id="pl.66.21"></a><var>66.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.4.8.0"></a><a id="pl.66.22"></a><var>66.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 8. Minnesota Statutes 2013 Supplement, section 270B.03, subdivision 1, is <br />
         		<a id="pl.66.23"></a><var>66.23</var>amended to read:<br />
         		<a id="pl.66.24"></a><var>66.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Who may inspect.</b> Returns and return information must, on request, <br />
         		<a id="pl.66.25"></a><var>66.25</var>be made open to inspection by or disclosure to the data subject. The request must be made <br />
         		<a id="pl.66.26"></a><var>66.26</var>in writing or in accordance with written procedures of the chief disclosure officer of the <br />
         		<a id="pl.66.27"></a><var>66.27</var>department that have been approved by the commissioner to establish the identification <br />
         		<a id="pl.66.28"></a><var>66.28</var>of the person making the request as the data subject. For purposes of this chapter, the <br />
         		<a id="pl.66.29"></a><var>66.29</var>following are the data subject:<br />
         		<a id="pl.66.30"></a><var>66.30</var>(1) in the case of an individual return, that individual;<br />
         		<a id="pl.66.31"></a><var>66.31</var>(2) in the case of an income tax return filed jointly, either of the individuals with <br />
         		<a id="pl.66.32"></a><var>66.32</var>respect to whom the return is filed;<br />
         		<a id="pl.67.1"></a><var>67.1</var>(3) in the case of a return filed by a business entity, an officer of a corporation, <br />
         		<a id="pl.67.2"></a><var>67.2</var>a shareholder owning more than one percent of the stock, or any shareholder of an S <br />
         		<a id="pl.67.3"></a><var>67.3</var>corporation; a general partner in a partnership; the owner of a sole proprietorship; a <br />
         		<a id="pl.67.4"></a><var>67.4</var>member or manager of a limited liability company; a participant in a joint venture; the <br />
         		<a id="pl.67.5"></a><var>67.5</var>individual who signed the return on behalf of the business entity; or an employee who is <br />
         		<a id="pl.67.6"></a><var>67.6</var>responsible for handling the tax matters of the business entity, such as the tax manager, <br />
         		<a id="pl.67.7"></a><var>67.7</var>bookkeeper, or managing agent;<br />
         		<a id="pl.67.8"></a><var>67.8</var>(4) in the case of an estate return:<br />
         		<a id="pl.67.9"></a><var>67.9</var>(i) the personal representative or trustee of the estate; and<br />
         		<a id="pl.67.10"></a><var>67.10</var>(ii) any beneficiary of the estate as shown on the federal estate tax return;<br />
         		<a id="pl.67.11"></a><var>67.11</var>(5) in the case of a trust return:<br />
         		<a id="pl.67.12"></a><var>67.12</var>(i) the trustee or trustees, jointly or separately; and<br />
         		<a id="pl.67.13"></a><var>67.13</var>(ii) any beneficiary of the trust as shown in the trust instrument;<br />
         		<a id="pl.67.14"></a><var>67.14</var>(6) if liability has been assessed to a transferee under section 
         <statute_ref>270C.58, subdivision <br />
            		<a id="pl.67.15"></a><var>67.15</var>1
         </statute_ref>, the transferee is the data subject with regard to the returns and return information <br />
         		<a id="pl.67.16"></a><var>67.16</var>relating to the assessed liability;<br />
         		<a id="pl.67.17"></a><var>67.17</var>(7) in the case of an Indian tribal government or an Indian tribal government-owned <br />
         		<a id="pl.67.18"></a><var>67.18</var>entity,<br />
         		<a id="pl.67.19"></a><var>67.19</var>(i) the chair of the tribal government, or<br />
         		<a id="pl.67.20"></a><var>67.20</var>(ii) any person authorized by the tribal government; and<br />
         		<a id="pl.67.21"></a><var>67.21</var>(8) in the case of a successor as defined in section 
         <statute_ref>270C.57, subdivision 1</statute_ref>, paragraph <br />
         		<a id="pl.67.22"></a><var>67.22</var>(b), the successor is the data subject and information may be disclosed as provided by <br />
         		<a id="pl.67.23"></a><var>67.23</var>section 
         <statute_ref>270C.57, subdivision 4</statute_ref>; and.<br />
         		<a id="pl.67.24"></a><var>67.24</var>(9) in the case of a gift return, the donor.<br />
         		<a id="pl.67.25"></a><var>67.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.4.9.0"></a><a id="pl.67.26"></a><var>67.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 9. Minnesota Statutes 2012, section 289A.02, subdivision 7, as amended by Laws <br />
         		<a id="pl.67.27"></a><var>67.27</var>2014, chapter 150, article 1, section 7, is amended to read:<br />
         		<a id="pl.67.28"></a><var>67.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Internal Revenue Code.</b> Unless specifically defined otherwise, "Internal <br />
         		<a id="pl.67.29"></a><var>67.29</var>Revenue Code" means the Internal Revenue Code of 1986, as amended through December <br />
         		<a id="pl.67.30"></a><var>67.30</var>20, 2013 March 26, 2014.<br />
         		<a id="pl.67.31"></a><var>67.31</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for taxable years <br />
         		<a id="pl.67.32"></a><var>67.32</var>beginning after December 31, 2012.<br />
         		<br />
         		<a id="bill.4.10.0"></a><a id="pl.68.1"></a><var>68.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 10. Minnesota Statutes 2013 Supplement, section 290.01, subdivision 19, as <br />
         		<a id="pl.68.2"></a><var>68.2</var>amended by Laws 2014, chapter 150, article 1, section 9, is amended to read:<br />
         		<a id="pl.68.3"></a><var>68.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 19. <b>Net income.</b> The term "net income" means the federal taxable income, <br />
         		<a id="pl.68.4"></a><var>68.4</var>as defined in section 63 of the Internal Revenue Code of 1986, as amended through the <br />
         		<a id="pl.68.5"></a><var>68.5</var>date named in this subdivision, incorporating the federal effective dates of changes to the <br />
         		<a id="pl.68.6"></a><var>68.6</var>Internal Revenue Code and any elections made by the taxpayer in accordance with the <br />
         		<a id="pl.68.7"></a><var>68.7</var>Internal Revenue Code in determining federal taxable income for federal income tax <br />
         		<a id="pl.68.8"></a><var>68.8</var>purposes, and with the modifications provided in subdivisions 19a to 19f.<br />
         		<a id="pl.68.9"></a><var>68.9</var>&nbsp;&nbsp;&nbsp;&nbsp;In the case of a regulated investment company or a fund thereof, as defined in section <br />
         		<a id="pl.68.10"></a><var>68.10</var>851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment <br />
         		<a id="pl.68.11"></a><var>68.11</var>company taxable income as defined in section 852(b)(2) of the Internal Revenue Code, <br />
         		<a id="pl.68.12"></a><var>68.12</var>except that:<br />
         		<a id="pl.68.13"></a><var>68.13</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal <br />
         		<a id="pl.68.14"></a><var>68.14</var>Revenue Code does not apply;<br />
         		<a id="pl.68.15"></a><var>68.15</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal <br />
         		<a id="pl.68.16"></a><var>68.16</var>Revenue Code must be applied by allowing a deduction for capital gain dividends and <br />
         		<a id="pl.68.17"></a><var>68.17</var>exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal <br />
         		<a id="pl.68.18"></a><var>68.18</var>Revenue Code; and<br />
         		<a id="pl.68.19"></a><var>68.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) the deduction for dividends paid must also be applied in the amount of any <br />
         		<a id="pl.68.20"></a><var>68.20</var>undistributed capital gains which the regulated investment company elects to have treated <br />
         		<a id="pl.68.21"></a><var>68.21</var>as provided in section 852(b)(3)(D) of the Internal Revenue Code.<br />
         		<a id="pl.68.22"></a><var>68.22</var>&nbsp;&nbsp;&nbsp;&nbsp;The net income of a real estate investment trust as defined and limited by section <br />
         		<a id="pl.68.23"></a><var>68.23</var>856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust <br />
         		<a id="pl.68.24"></a><var>68.24</var>taxable income as defined in section 857(b)(2) of the Internal Revenue Code.<br />
         		<a id="pl.68.25"></a><var>68.25</var>&nbsp;&nbsp;&nbsp;&nbsp;The net income of a designated settlement fund as defined in section 468B(d) of <br />
         		<a id="pl.68.26"></a><var>68.26</var>the Internal Revenue Code means the gross income as defined in section 468B(b) of the <br />
         		<a id="pl.68.27"></a><var>68.27</var>Internal Revenue Code.<br />
         		<a id="pl.68.28"></a><var>68.28</var>&nbsp;&nbsp;&nbsp;&nbsp;The Internal Revenue Code of 1986, as amended through December 20, 2013 March <br />
         		<a id="pl.68.29"></a><var>68.29</var>26, 2014, shall be in effect for taxable years beginning after December 31, 1996.<br />
         		<a id="pl.68.30"></a><var>68.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise provided, references to the Internal Revenue Code in <br />
         		<a id="pl.68.31"></a><var>68.31</var>subdivisions 19 to 19f mean the code in effect for purposes of determining net income for <br />
         		<a id="pl.68.32"></a><var>68.32</var>the applicable year.<br />
         		<a id="pl.68.33"></a><var>68.33</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment, <br />
         		<a id="pl.68.34"></a><var>68.34</var>except the changes incorporated by federal changes are effective retroactively at the same <br />
         		<a id="pl.68.35"></a><var>68.35</var>time as the changes were effective for federal purposes.<br />
         		<br />
         		<a id="bill.4.11.0"></a><a id="pl.69.1"></a><var>69.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 11. Minnesota Statutes 2012, section 290.01, subdivision 19a, as amended by <br />
         		<a id="pl.69.2"></a><var>69.2</var>Laws 2014, chapter 150, article 1, section 10, is amended to read:<br />
         		<a id="pl.69.3"></a><var>69.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 19a. <b>Additions to federal taxable income.</b> For individuals, estates, and <br />
         		<a id="pl.69.4"></a><var>69.4</var>trusts, there shall be added to federal taxable income:<br />
         		<a id="pl.69.5"></a><var>69.5</var>&nbsp;&nbsp;&nbsp;&nbsp;(1)(i) interest income on obligations of any state other than Minnesota or a political <br />
         		<a id="pl.69.6"></a><var>69.6</var>or governmental subdivision, municipality, or governmental agency or instrumentality <br />
         		<a id="pl.69.7"></a><var>69.7</var>of any state other than Minnesota exempt from federal income taxes under the Internal <br />
         		<a id="pl.69.8"></a><var>69.8</var>Revenue Code or any other federal statute; and<br />
         		<a id="pl.69.9"></a><var>69.9</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) exempt-interest dividends as defined in section 852(b)(5) of the Internal Revenue <br />
         		<a id="pl.69.10"></a><var>69.10</var>Code, except:<br />
         		<a id="pl.69.11"></a><var>69.11</var>(A) the portion of the exempt-interest dividends exempt from state taxation under <br />
         		<a id="pl.69.12"></a><var>69.12</var>the laws of the United States; and<br />
         		<a id="pl.69.13"></a><var>69.13</var>(B) the portion of the exempt-interest dividends derived from interest income <br />
         		<a id="pl.69.14"></a><var>69.14</var>on obligations of the state of Minnesota or its political or governmental subdivisions, <br />
         		<a id="pl.69.15"></a><var>69.15</var>municipalities, governmental agencies or instrumentalities, but only if the portion of the <br />
         		<a id="pl.69.16"></a><var>69.16</var>exempt-interest dividends from such Minnesota sources paid to all shareholders represents <br />
         		<a id="pl.69.17"></a><var>69.17</var>95 percent or more of the exempt-interest dividends, including any dividends exempt <br />
         		<a id="pl.69.18"></a><var>69.18</var>under subitem (A), that are paid by the regulated investment company as defined in section <br />
         		<a id="pl.69.19"></a><var>69.19</var>851(a) of the Internal Revenue Code, or the fund of the regulated investment company as <br />
         		<a id="pl.69.20"></a><var>69.20</var>defined in section 851(g) of the Internal Revenue Code, making the payment; and<br />
         		<a id="pl.69.21"></a><var>69.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(iii) for the purposes of items (i) and (ii), interest on obligations of an Indian tribal <br />
         		<a id="pl.69.22"></a><var>69.22</var>government described in section 7871(c) of the Internal Revenue Code shall be treated as <br />
         		<a id="pl.69.23"></a><var>69.23</var>interest income on obligations of the state in which the tribe is located;<br />
         		<a id="pl.69.24"></a><var>69.24</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) the amount of income, sales and use, motor vehicle sales, or excise taxes paid or <br />
         		<a id="pl.69.25"></a><var>69.25</var>accrued within the taxable year under this chapter and the amount of taxes based on net <br />
         		<a id="pl.69.26"></a><var>69.26</var>income paid, sales and use, motor vehicle sales, or excise taxes paid to any other state or <br />
         		<a id="pl.69.27"></a><var>69.27</var>to any province or territory of Canada, to the extent allowed as a deduction under section <br />
         		<a id="pl.69.28"></a><var>69.28</var>63(d) of the Internal Revenue Code, but the addition may not be more than the amount <br />
         		<a id="pl.69.29"></a><var>69.29</var>by which the state itemized deduction exceeds the amount of the standard deduction as <br />
         		<a id="pl.69.30"></a><var>69.30</var>defined in section 63(c) of the Internal Revenue Code, minus any addition that would have <br />
         		<a id="pl.69.31"></a><var>69.31</var>been required under clause (17) if the taxpayer had claimed the standard deduction. For <br />
         		<a id="pl.69.32"></a><var>69.32</var>the purpose of this clause, income, sales and use, motor vehicle sales, or excise taxes are <br />
         		<a id="pl.69.33"></a><var>69.33</var>the last itemized deductions disallowed under clause (15);<br />
         		<a id="pl.69.34"></a><var>69.34</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) the capital gain amount of a lump-sum distribution to which the special tax under <br />
         		<a id="pl.69.35"></a><var>69.35</var>section 1122(h)(3)(B)(ii) of the Tax Reform Act of 1986, Public Law 99-514, applies;<br />
         		<a id="pl.70.1"></a><var>70.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) the amount of income taxes paid or accrued within the taxable year under this <br />
         		<a id="pl.70.2"></a><var>70.2</var>chapter and taxes based on net income paid to any other state or any province or territory <br />
         		<a id="pl.70.3"></a><var>70.3</var>of Canada, to the extent allowed as a deduction in determining federal adjusted gross <br />
         		<a id="pl.70.4"></a><var>70.4</var>income. For the purpose of this paragraph, income taxes do not include the taxes imposed <br />
         		<a id="pl.70.5"></a><var>70.5</var>by sections 
         <statute_ref>290.0922, subdivision 1</statute_ref>, paragraph (b), 
         <statute_ref>290.9727</statute_ref>, 
         <statute_ref>290.9728</statute_ref>, and 
         <statute_ref>290.9729</statute_ref>;<br />
         		<a id="pl.70.6"></a><var>70.6</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) the amount of expense, interest, or taxes disallowed pursuant to section 
         <statute_ref>290.10 <br />
            		
         </statute_ref><a id="pl.70.7"></a><var>70.7</var>other than expenses or interest used in computing net interest income for the subtraction <br />
         		<a id="pl.70.8"></a><var>70.8</var>allowed under subdivision 19b, clause (1);<br />
         		<a id="pl.70.9"></a><var>70.9</var>&nbsp;&nbsp;&nbsp;&nbsp;(6) the amount of a partner's pro rata share of net income which does not flow <br />
         		<a id="pl.70.10"></a><var>70.10</var>through to the partner because the partnership elected to pay the tax on the income under <br />
         		<a id="pl.70.11"></a><var>70.11</var>section 6242(a)(2) of the Internal Revenue Code;<br />
         		<a id="pl.70.12"></a><var>70.12</var>&nbsp;&nbsp;&nbsp;&nbsp;(7) 80 percent of the depreciation deduction allowed under section 168(k) of the <br />
         		<a id="pl.70.13"></a><var>70.13</var>Internal Revenue Code. For purposes of this clause, if the taxpayer has an activity that <br />
         		<a id="pl.70.14"></a><var>70.14</var>in the taxable year generates a deduction for depreciation under section 168(k) and the <br />
         		<a id="pl.70.15"></a><var>70.15</var>activity generates a loss for the taxable year that the taxpayer is not allowed to claim for <br />
         		<a id="pl.70.16"></a><var>70.16</var>the taxable year, "the depreciation allowed under section 168(k)" for the taxable year is <br />
         		<a id="pl.70.17"></a><var>70.17</var>limited to excess of the depreciation claimed by the activity under section 168(k) over the <br />
         		<a id="pl.70.18"></a><var>70.18</var>amount of the loss from the activity that is not allowed in the taxable year. In succeeding <br />
         		<a id="pl.70.19"></a><var>70.19</var>taxable years when the losses not allowed in the taxable year are allowed, the depreciation <br />
         		<a id="pl.70.20"></a><var>70.20</var>under section 168(k) is allowed;<br />
         		<a id="pl.70.21"></a><var>70.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(8) 80 percent of the amount by which the deduction allowed by section 179 of the <br />
         		<a id="pl.70.22"></a><var>70.22</var>Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal <br />
         		<a id="pl.70.23"></a><var>70.23</var>Revenue Code of 1986, as amended through December 31, 2003;<br />
         		<a id="pl.70.24"></a><var>70.24</var>&nbsp;&nbsp;&nbsp;&nbsp;(9) to the extent deducted in computing federal taxable income, the amount of the <br />
         		<a id="pl.70.25"></a><var>70.25</var>deduction allowable under section 199 of the Internal Revenue Code;<br />
         		<a id="pl.70.26"></a><var>70.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(10) the amount of expenses disallowed under section 290.10, subdivision 2;<br />
         		<a id="pl.70.27"></a><var>70.27</var>&nbsp;&nbsp;&nbsp;&nbsp;(11) for taxable years beginning before January 1, 2010, the amount deducted for <br />
         		<a id="pl.70.28"></a><var>70.28</var>qualified tuition and related expenses under section 222 of the Internal Revenue Code, to <br />
         		<a id="pl.70.29"></a><var>70.29</var>the extent deducted from gross income;<br />
         		<a id="pl.70.30"></a><var>70.30</var>&nbsp;&nbsp;&nbsp;&nbsp;(12) for taxable years beginning before January 1, 2010, the amount deducted for <br />
         		<a id="pl.70.31"></a><var>70.31</var>certain expenses of elementary and secondary school teachers under section 62(a)(2)(D) <br />
         		<a id="pl.70.32"></a><var>70.32</var>of the Internal Revenue Code, to the extent deducted from gross income;<br />
         		<a id="pl.70.33"></a><var>70.33</var>(13) discharge of indebtedness income resulting from reacquisition of business <br />
         		<a id="pl.70.34"></a><var>70.34</var>indebtedness and deferred under section 108(i) of the Internal Revenue Code;<br />
         		<a id="pl.70.35"></a><var>70.35</var>(14) changes to federal taxable income attributable to a net operating loss that the <br />
         		<a id="pl.70.36"></a><var>70.36</var>taxpayer elected to carry back for more than two years for federal purposes but for which <br />
         		<a id="pl.71.1"></a><var>71.1</var>the losses can be carried back for only two years under section 
         <statute_ref>290.095, subdivision <br />
            		<a id="pl.71.2"></a><var>71.2</var>11
         </statute_ref>, paragraph (c);<br />
         		<a id="pl.71.3"></a><var>71.3</var>(15) to the extent included in the computation of federal taxable income in taxable <br />
         		<a id="pl.71.4"></a><var>71.4</var>years beginning after December 31, 2010, the amount of disallowed itemized deductions, <br />
         		<a id="pl.71.5"></a><var>71.5</var>but the amount of disallowed itemized deductions plus the addition required under clause <br />
         		<a id="pl.71.6"></a><var>71.6</var>(2) may not be more than the amount by which the itemized deductions as allowed under <br />
         		<a id="pl.71.7"></a><var>71.7</var>section 63(d) of the Internal Revenue Code exceeds the amount of the standard deduction <br />
         		<a id="pl.71.8"></a><var>71.8</var>as defined in section 63(c) of the Internal Revenue Code, and reduced by any addition <br />
         		<a id="pl.71.9"></a><var>71.9</var>that would have been required under clause (17) if the taxpayer had claimed the standard <br />
         		<a id="pl.71.10"></a><var>71.10</var>deduction:<br />
         		<a id="pl.71.11"></a><var>71.11</var>(i) the amount of disallowed itemized deductions is equal to the lesser of:<br />
         		<a id="pl.71.12"></a><var>71.12</var>(A) three percent of the excess of the taxpayer's federal adjusted gross income <br />
         		<a id="pl.71.13"></a><var>71.13</var>over the applicable amount; or<br />
         		<a id="pl.71.14"></a><var>71.14</var>(B) 80 percent of the amount of the itemized deductions otherwise allowable to the <br />
         		<a id="pl.71.15"></a><var>71.15</var>taxpayer under the Internal Revenue Code for the taxable year;<br />
         		<a id="pl.71.16"></a><var>71.16</var>(ii) the term "applicable amount" means $100,000, or $50,000 in the case of a <br />
         		<a id="pl.71.17"></a><var>71.17</var>married individual filing a separate return. Each dollar amount shall be increased by <br />
         		<a id="pl.71.18"></a><var>71.18</var>an amount equal to:<br />
         		<a id="pl.71.19"></a><var>71.19</var>(A) such dollar amount, multiplied by<br />
         		<a id="pl.71.20"></a><var>71.20</var>(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal <br />
         		<a id="pl.71.21"></a><var>71.21</var>Revenue Code for the calendar year in which the taxable year begins, by substituting <br />
         		<a id="pl.71.22"></a><var>71.22</var>"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof;<br />
         		<a id="pl.71.23"></a><var>71.23</var>(iii) the term "itemized deductions" does not include:<br />
         		<a id="pl.71.24"></a><var>71.24</var>(A) the deduction for medical expenses under section 213 of the Internal Revenue <br />
         		<a id="pl.71.25"></a><var>71.25</var>Code;<br />
         		<a id="pl.71.26"></a><var>71.26</var>(B) any deduction for investment interest as defined in section 163(d) of the Internal <br />
         		<a id="pl.71.27"></a><var>71.27</var>Revenue Code; and<br />
         		<a id="pl.71.28"></a><var>71.28</var>(C) the deduction under section 165(a) of the Internal Revenue Code for casualty or <br />
         		<a id="pl.71.29"></a><var>71.29</var>theft losses described in paragraph (2) or (3) of section 165(c) of the Internal Revenue <br />
         		<a id="pl.71.30"></a><var>71.30</var>Code or for losses described in section 165(d) of the Internal Revenue Code;<br />
         		<a id="pl.71.31"></a><var>71.31</var>(16) to the extent included in federal taxable income in taxable years beginning after <br />
         		<a id="pl.71.32"></a><var>71.32</var>December 31, 2010, the amount of disallowed personal exemptions for taxpayers with <br />
         		<a id="pl.71.33"></a><var>71.33</var>federal adjusted gross income over the threshold amount:<br />
         		<a id="pl.71.34"></a><var>71.34</var>(i) the disallowed personal exemption amount is equal to the dollar amount of the<br />
         		<a id="pl.71.35"></a><var>71.35</var> number of personal exemptions claimed by the taxpayer in the computation of federal <br />
         		<a id="pl.71.36"></a><var>71.36</var>taxable income allowed under section 151(b) and (c) of the Internal Revenue Code <br />
         		<a id="pl.72.1"></a><var>72.1</var>multiplied by the dollar amount for personal exemptions under section 151(d)(1) and (2) <br />
         		<a id="pl.72.2"></a><var>72.2</var>of the Internal Revenue Code, as adjusted for inflation by section 151(d)(4) of the Internal <br />
         		<a id="pl.72.3"></a><var>72.3</var>Revenue Code, and by the applicable percentage;<br />
         		<a id="pl.72.4"></a><var>72.4</var>(ii) "applicable percentage" means two percentage points for each $2,500 (or <br />
         		<a id="pl.72.5"></a><var>72.5</var>fraction thereof) by which the taxpayer's federal adjusted gross income for the taxable <br />
         		<a id="pl.72.6"></a><var>72.6</var>year exceeds the threshold amount. In the case of a married individual filing a separate <br />
         		<a id="pl.72.7"></a><var>72.7</var>return, the preceding sentence shall be applied by substituting "$1,250" for "$2,500." In <br />
         		<a id="pl.72.8"></a><var>72.8</var>no event shall the applicable percentage exceed 100 percent;<br />
         		<a id="pl.72.9"></a><var>72.9</var>(iii) the term "threshold amount" means:<br />
         		<a id="pl.72.10"></a><var>72.10</var>(A) $150,000 in the case of a joint return or a surviving spouse;<br />
         		<a id="pl.72.11"></a><var>72.11</var>(B) $125,000 in the case of a head of a household;<br />
         		<a id="pl.72.12"></a><var>72.12</var>(C) $100,000 in the case of an individual who is not married and who is not a <br />
         		<a id="pl.72.13"></a><var>72.13</var>surviving spouse or head of a household; and<br />
         		<a id="pl.72.14"></a><var>72.14</var>(D) $75,000 in the case of a married individual filing a separate return; and<br />
         		<a id="pl.72.15"></a><var>72.15</var>(iv) the thresholds shall be increased by an amount equal to:<br />
         		<a id="pl.72.16"></a><var>72.16</var>(A) such dollar amount, multiplied by<br />
         		<a id="pl.72.17"></a><var>72.17</var>(B) the cost-of-living adjustment determined under section 1(f)(3) of the Internal <br />
         		<a id="pl.72.18"></a><var>72.18</var>Revenue Code for the calendar year in which the taxable year begins, by substituting <br />
         		<a id="pl.72.19"></a><var>72.19</var>"calendar year 1990" for "calendar year 1992" in subparagraph (B) thereof; and<br />
         		<a id="pl.72.20"></a><var>72.20</var>(17) to the extent deducted in the computation of federal taxable income, for taxable <br />
         		<a id="pl.72.21"></a><var>72.21</var>years beginning after December 31, 2010, and before January 1, 2014, the difference <br />
         		<a id="pl.72.22"></a><var>72.22</var>between the standard deduction allowed under section 63(c) of the Internal Revenue Code <br />
         		<a id="pl.72.23"></a><var>72.23</var>and the standard deduction allowed for 2011, 2012, and 2013 under the Internal Revenue <br />
         		<a id="pl.72.24"></a><var>72.24</var>Code as amended through December 1, 2010.<br />
         		<a id="pl.72.25"></a><var>72.25</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for taxable years <br />
         		<a id="pl.72.26"></a><var>72.26</var>beginning after December 31, 2012.<br />
         		<br />
         		<a id="bill.4.12.0"></a><a id="pl.72.27"></a><var>72.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 12. Minnesota Statutes 2013 Supplement, section 290.01, subdivision 19b, as <br />
         		<a id="pl.72.28"></a><var>72.28</var>amended by Laws 2014, chapter 150, article 1, section 11, is amended to read:<br />
         		<a id="pl.72.29"></a><var>72.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 19b. <b>Subtractions from federal taxable income.</b> For individuals, estates, <br />
         		<a id="pl.72.30"></a><var>72.30</var>and trusts, there shall be subtracted from federal taxable income:<br />
         		<a id="pl.72.31"></a><var>72.31</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) net interest income on obligations of any authority, commission, or <br />
         		<a id="pl.72.32"></a><var>72.32</var>instrumentality of the United States to the extent includable in taxable income for federal <br />
         		<a id="pl.72.33"></a><var>72.33</var>income tax purposes but exempt from state income tax under the laws of the United States;<br />
         		<a id="pl.73.1"></a><var>73.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) if included in federal taxable income, the amount of any overpayment of income <br />
         		<a id="pl.73.2"></a><var>73.2</var>tax to Minnesota or to any other state, for any previous taxable year, whether the amount <br />
         		<a id="pl.73.3"></a><var>73.3</var>is received as a refund or as a credit to another taxable year's income tax liability;<br />
         		<a id="pl.73.4"></a><var>73.4</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) the amount paid to others, less the amount used to claim the credit allowed under <br />
         		<a id="pl.73.5"></a><var>73.5</var>section 
         <statute_ref>290.0674</statute_ref>, not to exceed $1,625 for each qualifying child in grades kindergarten <br />
         		<a id="pl.73.6"></a><var>73.6</var>to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and <br />
         		<a id="pl.73.7"></a><var>73.7</var>transportation of each qualifying child in attending an elementary or secondary school <br />
         		<a id="pl.73.8"></a><var>73.8</var>situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a <br />
         		<a id="pl.73.9"></a><var>73.9</var>resident of this state may legally fulfill the state's compulsory attendance laws, which <br />
         		<a id="pl.73.10"></a><var>73.10</var>is not operated for profit, and which adheres to the provisions of the Civil Rights Act <br />
         		<a id="pl.73.11"></a><var>73.11</var>of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or <br />
         		<a id="pl.73.12"></a><var>73.12</var>tuition as defined in section 
         <statute_ref>290.0674, subdivision 1</statute_ref>, clause (1). As used in this clause, <br />
         		<a id="pl.73.13"></a><var>73.13</var>"textbooks" includes books and other instructional materials and equipment purchased <br />
         		<a id="pl.73.14"></a><var>73.14</var>or leased for use in elementary and secondary schools in teaching only those subjects <br />
         		<a id="pl.73.15"></a><var>73.15</var>legally and commonly taught in public elementary and secondary schools in this state. <br />
         		<a id="pl.73.16"></a><var>73.16</var>Equipment expenses qualifying for deduction includes expenses as defined and limited in <br />
         		<a id="pl.73.17"></a><var>73.17</var>section 
         <statute_ref>290.0674, subdivision 1</statute_ref>, clause (3). "Textbooks" does not include instructional <br />
         		<a id="pl.73.18"></a><var>73.18</var>books and materials used in the teaching of religious tenets, doctrines, or worship, the <br />
         		<a id="pl.73.19"></a><var>73.19</var>purpose of which is to instill such tenets, doctrines, or worship, nor does it include books <br />
         		<a id="pl.73.20"></a><var>73.20</var>or materials for, or transportation to, extracurricular activities including sporting events, <br />
         		<a id="pl.73.21"></a><var>73.21</var>musical or dramatic events, speech activities, driver's education, or similar programs. No <br />
         		<a id="pl.73.22"></a><var>73.22</var>deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or <br />
         		<a id="pl.73.23"></a><var>73.23</var>the qualifying child's vehicle to provide such transportation for a qualifying child. For <br />
         		<a id="pl.73.24"></a><var>73.24</var>purposes of the subtraction provided by this clause, "qualifying child" has the meaning <br />
         		<a id="pl.73.25"></a><var>73.25</var>given in section 32(c)(3) of the Internal Revenue Code;<br />
         		<a id="pl.73.26"></a><var>73.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) income as provided under section 
         <statute_ref>290.0802</statute_ref>;<br />
         		<a id="pl.73.27"></a><var>73.27</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) to the extent included in federal adjusted gross income, income realized on <br />
         		<a id="pl.73.28"></a><var>73.28</var>disposition of property exempt from tax under section 
         <statute_ref>290.491</statute_ref>;<br />
         		<a id="pl.73.29"></a><var>73.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E) <br />
         		<a id="pl.73.30"></a><var>73.30</var>of the Internal Revenue Code in determining federal taxable income by an individual <br />
         		<a id="pl.73.31"></a><var>73.31</var>who does not itemize deductions for federal income tax purposes for the taxable year, an <br />
         		<a id="pl.73.32"></a><var>73.32</var>amount equal to 50 percent of the excess of charitable contributions over $500 allowable <br />
         		<a id="pl.73.33"></a><var>73.33</var>as a deduction for the taxable year under section 170(a) of the Internal Revenue Code, <br />
         		<a id="pl.73.34"></a><var>73.34</var>under the provisions of Public Law 109-1 and Public Law 111-126;<br />
         		<a id="pl.73.35"></a><var>73.35</var>&nbsp;&nbsp;&nbsp;&nbsp;(7) for individuals who are allowed a federal foreign tax credit for taxes that do not <br />
         		<a id="pl.73.36"></a><var>73.36</var>qualify for a credit under section 
         <statute_ref>290.06, subdivision 22</statute_ref>, an amount equal to the carryover <br />
         		<a id="pl.74.1"></a><var>74.1</var>of subnational foreign taxes for the taxable year, but not to exceed the total subnational <br />
         		<a id="pl.74.2"></a><var>74.2</var>foreign taxes reported in claiming the foreign tax credit. For purposes of this clause, <br />
         		<a id="pl.74.3"></a><var>74.3</var>"federal foreign tax credit" means the credit allowed under section 27 of the Internal <br />
         		<a id="pl.74.4"></a><var>74.4</var>Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed <br />
         		<a id="pl.74.5"></a><var>74.5</var>under section 904(c) of the Internal Revenue Code minus national level foreign taxes to <br />
         		<a id="pl.74.6"></a><var>74.6</var>the extent they exceed the federal foreign tax credit;<br />
         		<a id="pl.74.7"></a><var>74.7</var>&nbsp;&nbsp;&nbsp;&nbsp;(8) in each of the five tax years immediately following the tax year in which an <br />
         		<a id="pl.74.8"></a><var>74.8</var>addition is required under subdivision 19a, clause (7), or 19c, clause (12), in the case of a <br />
         		<a id="pl.74.9"></a><var>74.9</var>shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the <br />
         		<a id="pl.74.10"></a><var>74.10</var>delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount <br />
         		<a id="pl.74.11"></a><var>74.11</var>of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c, <br />
         		<a id="pl.74.12"></a><var>74.12</var>clause (12), in the case of a shareholder of an S corporation, minus the positive value of <br />
         		<a id="pl.74.13"></a><var>74.13</var>any net operating loss under section 172 of the Internal Revenue Code generated for the <br />
         		<a id="pl.74.14"></a><var>74.14</var>tax year of the addition. The resulting delayed depreciation cannot be less than zero;<br />
         		<a id="pl.74.15"></a><var>74.15</var>&nbsp;&nbsp;&nbsp;&nbsp;(9) job opportunity building zone income as provided under section 
         <statute_ref>469.316</statute_ref>;<br />
         		<a id="pl.74.16"></a><var>74.16</var>&nbsp;&nbsp;&nbsp;&nbsp;(10) to the extent included in federal taxable income, the amount of compensation <br />
         		<a id="pl.74.17"></a><var>74.17</var>paid to members of the Minnesota National Guard or other reserve components of <br />
         		<a id="pl.74.18"></a><var>74.18</var>the United States military for active service, excluding including compensation for <br />
         		<a id="pl.74.19"></a><var>74.19</var>services performed under the Active Guard Reserve (AGR) program. For purposes of <br />
         		<a id="pl.74.20"></a><var>74.20</var>this clause, "active service" means (i) state active service as defined in section 
         <statute_ref>190.05, <br />
            		<a id="pl.74.21"></a><var>74.21</var>subdivision 5a
         </statute_ref>, clause (1); or (ii) federally funded state active service as defined in section <br />
         		
         <statute_ref><a id="pl.74.22"></a><var>74.22</var>190.05, subdivision 5b
         </statute_ref>, but and "active service" excludes includes service performed in <br />
         		<a id="pl.74.23"></a><var>74.23</var>accordance with section 
         <statute_ref>190.08, subdivision 3</statute_ref>;<br />
         		<a id="pl.74.24"></a><var>74.24</var>&nbsp;&nbsp;&nbsp;&nbsp;(11) to the extent included in federal taxable income, the amount of compensation <br />
         		<a id="pl.74.25"></a><var>74.25</var>paid to Minnesota residents who are members of the armed forces of the United States <br />
         		<a id="pl.74.26"></a><var>74.26</var>or United Nations for active duty performed under United States Code, title 10; or the <br />
         		<a id="pl.74.27"></a><var>74.27</var>authority of the United Nations;<br />
         		<a id="pl.74.28"></a><var>74.28</var>&nbsp;&nbsp;&nbsp;&nbsp;(12) an amount, not to exceed $10,000, equal to qualified expenses related to a <br />
         		<a id="pl.74.29"></a><var>74.29</var>qualified donor's donation, while living, of one or more of the qualified donor's organs <br />
         		<a id="pl.74.30"></a><var>74.30</var>to another person for human organ transplantation. For purposes of this clause, "organ" <br />
         		<a id="pl.74.31"></a><var>74.31</var>means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow; <br />
         		<a id="pl.74.32"></a><var>74.32</var>"human organ transplantation" means the medical procedure by which transfer of a human <br />
         		<a id="pl.74.33"></a><var>74.33</var>organ is made from the body of one person to the body of another person; "qualified <br />
         		<a id="pl.74.34"></a><var>74.34</var>expenses" means unreimbursed expenses for both the individual and the qualified donor <br />
         		<a id="pl.74.35"></a><var>74.35</var>for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses <br />
         		<a id="pl.74.36"></a><var>74.36</var>may be subtracted under this clause only once; and "qualified donor" means the individual <br />
         		<a id="pl.75.1"></a><var>75.1</var>or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An <br />
         		<a id="pl.75.2"></a><var>75.2</var>individual may claim the subtraction in this clause for each instance of organ donation for <br />
         		<a id="pl.75.3"></a><var>75.3</var>transplantation during the taxable year in which the qualified expenses occur;<br />
         		<a id="pl.75.4"></a><var>75.4</var>&nbsp;&nbsp;&nbsp;&nbsp;(13) in each of the five tax years immediately following the tax year in which an <br />
         		<a id="pl.75.5"></a><var>75.5</var>addition is required under subdivision 19a, clause (8), or 19c, clause (13), in the case of a <br />
         		<a id="pl.75.6"></a><var>75.6</var>shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the <br />
         		<a id="pl.75.7"></a><var>75.7</var>addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (13), in the <br />
         		<a id="pl.75.8"></a><var>75.8</var>case of a shareholder of a corporation that is an S corporation, minus the positive value of <br />
         		<a id="pl.75.9"></a><var>75.9</var>any net operating loss under section 172 of the Internal Revenue Code generated for the <br />
         		<a id="pl.75.10"></a><var>75.10</var>tax year of the addition. If the net operating loss exceeds the addition for the tax year, a <br />
         		<a id="pl.75.11"></a><var>75.11</var>subtraction is not allowed under this clause;<br />
         		<a id="pl.75.12"></a><var>75.12</var>&nbsp;&nbsp;&nbsp;&nbsp;(14) to the extent included in the federal taxable income of a nonresident of <br />
         		<a id="pl.75.13"></a><var>75.13</var>Minnesota, compensation paid to a service member as defined in United States Code, title <br />
         		<a id="pl.75.14"></a><var>75.14</var>10, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief <br />
         		<a id="pl.75.15"></a><var>75.15</var>Act, Public Law 108-189, section 101(2);<br />
         		<a id="pl.75.16"></a><var>75.16</var>&nbsp;&nbsp;&nbsp;&nbsp;(15) to the extent included in federal taxable income, the amount of national service <br />
         		<a id="pl.75.17"></a><var>75.17</var>educational awards received from the National Service Trust under United States Code, <br />
         		<a id="pl.75.18"></a><var>75.18</var>title 42, sections 12601 to 12604, for service in an approved Americorps National Service <br />
         		<a id="pl.75.19"></a><var>75.19</var>program;<br />
         		<a id="pl.75.20"></a><var>75.20</var>(16) to the extent included in federal taxable income, discharge of indebtedness <br />
         		<a id="pl.75.21"></a><var>75.21</var>income resulting from reacquisition of business indebtedness included in federal taxable <br />
         		<a id="pl.75.22"></a><var>75.22</var>income under section 108(i) of the Internal Revenue Code. This subtraction applies only <br />
         		<a id="pl.75.23"></a><var>75.23</var>to the extent that the income was included in net income in a prior year as a result of the <br />
         		<a id="pl.75.24"></a><var>75.24</var>addition under section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clause (13);<br />
         		<a id="pl.75.25"></a><var>75.25</var>(17) the amount of the net operating loss allowed under section 
         <statute_ref>290.095, subdivision <br />
            		<a id="pl.75.26"></a><var>75.26</var>11
         </statute_ref>, paragraph (c); <br />
         		<a id="pl.75.27"></a><var>75.27</var>(18) the amount of expenses not allowed for federal income tax purposes due <br />
         		<a id="pl.75.28"></a><var>75.28</var>to claiming the railroad track maintenance credit under section 45G(a) of the Internal <br />
         		<a id="pl.75.29"></a><var>75.29</var>Revenue Code;<br />
         		<a id="pl.75.30"></a><var>75.30</var>(19) the amount of the limitation on itemized deductions under section 68(b) of <br />
         		<a id="pl.75.31"></a><var>75.31</var>the Internal Revenue Code; and<br />
         		<a id="pl.75.32"></a><var>75.32</var>(20) the amount of the phaseout of personal exemptions under section 151(d) of <br />
         		<a id="pl.75.33"></a><var>75.33</var>the Internal Revenue Code.; and<br />
         		<a id="pl.75.34"></a><var>75.34</var>(21) to the extent included in federal taxable income, the amount of qualified <br />
         		<a id="pl.75.35"></a><var>75.35</var>transportation fringe benefits described in section 132(f)(1)(A) and (B) of the Internal <br />
         		<a id="pl.75.36"></a><var>75.36</var>Revenue Code. The subtraction is limited to the lesser of the amount of qualified <br />
         		<a id="pl.76.1"></a><var>76.1</var>transportation fringe benefits received in excess of the limitations under section <br />
         		<a id="pl.76.2"></a><var>76.2</var>132(f)(2)(A) of the Internal Revenue Code for the year or the difference between the <br />
         		<a id="pl.76.3"></a><var>76.3</var>maximum qualified parking benefits excludable under section 132(f)(2)(B) of the Internal <br />
         		<a id="pl.76.4"></a><var>76.4</var>Revenue Code minus the amount of transit benefits excludable under section 132(f)(2)(A) <br />
         		<a id="pl.76.5"></a><var>76.5</var>of the Internal Revenue Code.<br />
         		<a id="pl.76.6"></a><var>76.6</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.76.7"></a><var>76.7</var>December 31, 2013.<br />
         		<br />
         		<a id="bill.4.13.0"></a><a id="pl.76.8"></a><var>76.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 13. Minnesota Statutes 2013 Supplement, section 290.01, subdivision 31, as <br />
         		<a id="pl.76.9"></a><var>76.9</var>amended by Laws 2014, chapter 150, article 1, section 13, is amended to read:<br />
         		<a id="pl.76.10"></a><var>76.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 31. <b>Internal Revenue Code.</b> Unless specifically defined otherwise, "Internal <br />
         		<a id="pl.76.11"></a><var>76.11</var>Revenue Code" means the Internal Revenue Code of 1986, as amended through December <br />
         		<a id="pl.76.12"></a><var>76.12</var>20, 2013 March 26, 2014. Internal Revenue Code also includes any uncodified provision <br />
         		<a id="pl.76.13"></a><var>76.13</var>in federal law that relates to provisions of the Internal Revenue Code that are incorporated <br />
         		<a id="pl.76.14"></a><var>76.14</var>into Minnesota law. When used in this chapter, the reference to "subtitle A, chapter 1, <br />
         		<a id="pl.76.15"></a><var>76.15</var>subchapter N, part 1, of the Internal Revenue Code" is to the Internal Revenue Code as <br />
         		<a id="pl.76.16"></a><var>76.16</var>amended through March 18, 2010.<br />
         		<a id="pl.76.17"></a><var>76.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment, <br />
         		<a id="pl.76.18"></a><var>76.18</var>except the changes incorporated by federal changes are effective retroactively at the same <br />
         		<a id="pl.76.19"></a><var>76.19</var>time as the changes were effective for federal purposes.<br />
         		<br />
         		<a id="bill.4.14.0"></a><a id="pl.76.20"></a><var>76.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 14. Minnesota Statutes 2012, section 290.081, is amended to read:<br />
         		<a id="pl.76.21"></a><var>76.21</var><b>290.081 INCOME OF NONRESIDENTS, RECIPROCITY.</b><br />
         		<a id="pl.76.22"></a><var>76.22</var>(a) The compensation received for the performance of personal or professional <br />
         		<a id="pl.76.23"></a><var>76.23</var>services within this state by an individual whose residence, place of abode, and place <br />
         		<a id="pl.76.24"></a><var>76.24</var>customarily returned to at least once a month is in another state, shall be excluded from <br />
         		<a id="pl.76.25"></a><var>76.25</var>gross income to the extent such compensation is subject to an income tax imposed by the <br />
         		<a id="pl.76.26"></a><var>76.26</var>state of residence; provided that such state allows a similar exclusion of compensation <br />
         		<a id="pl.76.27"></a><var>76.27</var>received by residents of Minnesota for services performed therein.<br />
         		<a id="pl.76.28"></a><var>76.28</var>(b) When it is deemed to be in the best interests of the people of this state, the <br />
         		<a id="pl.76.29"></a><var>76.29</var>commissioner may determine that the provisions of paragraph (a) shall not apply. As long <br />
         		<a id="pl.76.30"></a><var>76.30</var>as the provisions of paragraph (a) apply between Minnesota and Wisconsin, the provisions <br />
         		<a id="pl.76.31"></a><var>76.31</var>of paragraph (a) shall apply to any individual who is domiciled in Wisconsin.<br />
         		<a id="pl.76.32"></a><var>76.32</var>(c) For the purposes of paragraph (a), whenever the Wisconsin tax on Minnesota <br />
         		<a id="pl.76.33"></a><var>76.33</var>residents which would have been paid Wisconsin without paragraph (a) exceeds the <br />
         		<a id="pl.77.1"></a><var>77.1</var>Minnesota tax on Wisconsin residents which would have been paid Minnesota without <br />
         		<a id="pl.77.2"></a><var>77.2</var>paragraph (a), or vice versa, then the state with the net revenue loss resulting from <br />
         		<a id="pl.77.3"></a><var>77.3</var>paragraph (a) must be compensated by shall receive from the other state as provided in the <br />
         		<a id="pl.77.4"></a><var>77.4</var>agreement under paragraph (d) the amount of such loss. This provision shall be effective <br />
         		<a id="pl.77.5"></a><var>77.5</var>for all years beginning after December 31, 1972. The data used for computing the loss <br />
         		<a id="pl.77.6"></a><var>77.6</var>to either state shall be determined on or before September 30 of the year following the <br />
         		<a id="pl.77.7"></a><var>77.7</var>close of the previous calendar year.<br />
         		<a id="pl.77.8"></a><var>77.8</var>(d)(1) Interest is payable on all amounts calculated under paragraph (c) relating <br />
         		<a id="pl.77.9"></a><var>77.9</var>to taxable years beginning after December 31, 2000. Interest accrues from July 1 of <br />
         		<a id="pl.77.10"></a><var>77.10</var>the taxable year.<br />
         		<a id="pl.77.11"></a><var>77.11</var>(2) The commissioner of revenue is authorized to enter into agreements with <br />
         		<a id="pl.77.12"></a><var>77.12</var>the state of Wisconsin specifying the compensation required under paragraph (b), the <br />
         		<a id="pl.77.13"></a><var>77.13</var>reciprocity payment due date dates, conditions constituting delinquency, interest rates, and <br />
         		<a id="pl.77.14"></a><var>77.14</var>a method for computing interest due. Calculation of compensation under the agreement <br />
         		<a id="pl.77.15"></a><var>77.15</var>must specify if the revenue loss is determined before or after the allowance of each state's <br />
         		<a id="pl.77.16"></a><var>77.16</var>credit for taxes paid to the other state.<br />
         		<a id="pl.77.17"></a><var>77.17</var>(3) For agreements entered into before October 1, 2014, the annual compensation <br />
         		<a id="pl.77.18"></a><var>77.18</var>required under paragraph (c) must equal at least the net revenue loss minus $1,000,000 <br />
         		<a id="pl.77.19"></a><var>77.19</var>per fiscal year.<br />
         		<a id="pl.77.20"></a><var>77.20</var>(4) For agreements entered into after September 30, 2014, the annual compensation <br />
         		<a id="pl.77.21"></a><var>77.21</var>required under paragraph (c) must equal the net revenue loss per fiscal year.<br />
         		<a id="pl.77.22"></a><var>77.22</var>(5) For the purposes of clauses (3) and (4), "net revenue loss" means the difference <br />
         		<a id="pl.77.23"></a><var>77.23</var>between the amount of Minnesota income taxes Minnesota forgoes by not taxing <br />
         		<a id="pl.77.24"></a><var>77.24</var>Wisconsin residents on income subject to reciprocity and the credit Minnesota would <br />
         		<a id="pl.77.25"></a><var>77.25</var>have been required to give under section 290.06, subdivision 22, to Minnesota residents <br />
         		<a id="pl.77.26"></a><var>77.26</var>working in Wisconsin had there not been reciprocity.<br />
         		<a id="pl.77.27"></a><var>77.27</var>(e) If an agreement cannot be reached as to the amount of the loss, the commissioner <br />
         		<a id="pl.77.28"></a><var>77.28</var>of revenue and the taxing official of the state of Wisconsin shall each appoint a member <br />
         		<a id="pl.77.29"></a><var>77.29</var>of a board of arbitration and these members shall appoint the third member of the board. <br />
         		<a id="pl.77.30"></a><var>77.30</var>The board shall select one of its members as chair. Such board may administer oaths, take <br />
         		<a id="pl.77.31"></a><var>77.31</var>testimony, subpoena witnesses, and require their attendance, require the production of <br />
         		<a id="pl.77.32"></a><var>77.32</var>books, papers and documents, and hold hearings at such places as are deemed necessary. <br />
         		<a id="pl.77.33"></a><var>77.33</var>The board shall then make a determination as to the amount to be paid the other state <br />
         		<a id="pl.77.34"></a><var>77.34</var>which determination shall be final and conclusive.<br />
         		<a id="pl.77.35"></a><var>77.35</var>(f) The commissioner may furnish copies of returns, reports, or other information to <br />
         		<a id="pl.77.36"></a><var>77.36</var>the taxing official of the state of Wisconsin, a member of the board of arbitration, or a <br />
         		<a id="pl.78.1"></a><var>78.1</var>consultant under joint contract with the states of Minnesota and Wisconsin for the purpose <br />
         		<a id="pl.78.2"></a><var>78.2</var>of making a determination as to the amount to be paid the other state under the provisions <br />
         		<a id="pl.78.3"></a><var>78.3</var>of this section. Prior to the release of any information under the provisions of this section, <br />
         		<a id="pl.78.4"></a><var>78.4</var>the person to whom the information is to be released shall sign an agreement which <br />
         		<a id="pl.78.5"></a><var>78.5</var>provides that the person will protect the confidentiality of the returns and information <br />
         		<a id="pl.78.6"></a><var>78.6</var>revealed thereby to the extent that it is protected under the laws of the state of Minnesota.<br />
         		<a id="pl.78.7"></a><var>78.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.4.15.0"></a><a id="pl.78.8"></a><var>78.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 15. Minnesota Statutes 2013 Supplement, section 290.091, subdivision 2, as <br />
         		<a id="pl.78.9"></a><var>78.9</var>amended by Laws 2014, chapter 150, article 1, section 21, is amended to read:<br />
         		<a id="pl.78.10"></a><var>78.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Definitions.</b> For purposes of the tax imposed by this section, the following <br />
         		<a id="pl.78.11"></a><var>78.11</var>terms have the meanings given:<br />
         		<a id="pl.78.12"></a><var>78.12</var>&nbsp;&nbsp;&nbsp;&nbsp;(a) "Alternative minimum taxable income" means the sum of the following for <br />
         		<a id="pl.78.13"></a><var>78.13</var>the taxable year:<br />
         		<a id="pl.78.14"></a><var>78.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) the taxpayer's federal alternative minimum taxable income as defined in section <br />
         		<a id="pl.78.15"></a><var>78.15</var>55(b)(2) of the Internal Revenue Code;<br />
         		<a id="pl.78.16"></a><var>78.16</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) the taxpayer's itemized deductions allowed in computing federal alternative <br />
         		<a id="pl.78.17"></a><var>78.17</var>minimum taxable income, but excluding:<br />
         		<a id="pl.78.18"></a><var>78.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) the charitable contribution deduction under section 170 of the Internal Revenue <br />
         		<a id="pl.78.19"></a><var>78.19</var>Code;<br />
         		<a id="pl.78.20"></a><var>78.20</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) the medical expense deduction;<br />
         		<a id="pl.78.21"></a><var>78.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(iii) the casualty, theft, and disaster loss deduction; and<br />
         		<a id="pl.78.22"></a><var>78.22</var>&nbsp;&nbsp;&nbsp;&nbsp;(iv) the impairment-related work expenses of a disabled person;<br />
         		<a id="pl.78.23"></a><var>78.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) for depletion allowances computed under section 613A(c) of the Internal <br />
         		<a id="pl.78.24"></a><var>78.24</var>Revenue Code, with respect to each property (as defined in section 614 of the Internal <br />
         		<a id="pl.78.25"></a><var>78.25</var>Revenue Code), to the extent not included in federal alternative minimum taxable income, <br />
         		<a id="pl.78.26"></a><var>78.26</var>the excess of the deduction for depletion allowable under section 611 of the Internal <br />
         		<a id="pl.78.27"></a><var>78.27</var>Revenue Code for the taxable year over the adjusted basis of the property at the end of the <br />
         		<a id="pl.78.28"></a><var>78.28</var>taxable year (determined without regard to the depletion deduction for the taxable year);<br />
         		<a id="pl.78.29"></a><var>78.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) to the extent not included in federal alternative minimum taxable income, the <br />
         		<a id="pl.78.30"></a><var>78.30</var>amount of the tax preference for intangible drilling cost under section 57(a)(2) of the <br />
         		<a id="pl.78.31"></a><var>78.31</var>Internal Revenue Code determined without regard to subparagraph (E);<br />
         		<a id="pl.78.32"></a><var>78.32</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) to the extent not included in federal alternative minimum taxable income, the <br />
         		<a id="pl.78.33"></a><var>78.33</var>amount of interest income as provided by section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clause (1); and<br />
         		<a id="pl.78.34"></a><var>78.34</var>&nbsp;&nbsp;&nbsp;&nbsp;(6) the amount of addition required by section 
         <statute_ref>290.01, subdivision 19a</statute_ref>, clauses (7) <br />
         		<a id="pl.78.35"></a><var>78.35</var>to (9), and (11) to (14);<br />
         		<a id="pl.79.1"></a><var>79.1</var>&nbsp;&nbsp;&nbsp;&nbsp;less the sum of the amounts determined under the following:<br />
         		<a id="pl.79.2"></a><var>79.2</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) interest income as defined in section 
         <statute_ref>290.01, subdivision 19b</statute_ref>, clause (1);<br />
         		<a id="pl.79.3"></a><var>79.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) an overpayment of state income tax as provided by section 
         <statute_ref>290.01, subdivision <br />
            		<a id="pl.79.4"></a><var>79.4</var>19b
         </statute_ref>, clause (2), to the extent included in federal alternative minimum taxable income;<br />
         		<a id="pl.79.5"></a><var>79.5</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) the amount of investment interest paid or accrued within the taxable year on <br />
         		<a id="pl.79.6"></a><var>79.6</var>indebtedness to the extent that the amount does not exceed net investment income, as <br />
         		<a id="pl.79.7"></a><var>79.7</var>defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include <br />
         		<a id="pl.79.8"></a><var>79.8</var>amounts deducted in computing federal adjusted gross income;<br />
         		<a id="pl.79.9"></a><var>79.9</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) amounts subtracted from federal taxable income as provided by section 
         <statute_ref>290.01, <br />
            		<a id="pl.79.10"></a><var>79.10</var>subdivision 19b
         </statute_ref>, clauses (6), (8) to (14), and (16), and (21); and<br />
         		<a id="pl.79.11"></a><var>79.11</var>(5) the amount of the net operating loss allowed under section 
         <statute_ref>290.095, subdivision <br />
            		<a id="pl.79.12"></a><var>79.12</var>11
         </statute_ref>, paragraph (c).<br />
         		<a id="pl.79.13"></a><var>79.13</var>&nbsp;&nbsp;&nbsp;&nbsp;In the case of an estate or trust, alternative minimum taxable income must be <br />
         		<a id="pl.79.14"></a><var>79.14</var>computed as provided in section 59(c) of the Internal Revenue Code.<br />
         		<a id="pl.79.15"></a><var>79.15</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) "Investment interest" means investment interest as defined in section 163(d)(3) <br />
         		<a id="pl.79.16"></a><var>79.16</var>of the Internal Revenue Code.<br />
         		<a id="pl.79.17"></a><var>79.17</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) "Net minimum tax" means the minimum tax imposed by this section.<br />
         		<a id="pl.79.18"></a><var>79.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) "Regular tax" means the tax that would be imposed under this chapter (without <br />
         		<a id="pl.79.19"></a><var>79.19</var>regard to this section and section 290.032), reduced by the sum of the nonrefundable <br />
         		<a id="pl.79.20"></a><var>79.20</var>credits allowed under this chapter.<br />
         		<a id="pl.79.21"></a><var>79.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(e) "Tentative minimum tax" equals 
         <statute_ref>6.75</statute_ref> percent of alternative minimum taxable <br />
         		<a id="pl.79.22"></a><var>79.22</var>income after subtracting the exemption amount determined under subdivision 3.<br />
         		<a id="pl.79.23"></a><var>79.23</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.79.24"></a><var>79.24</var>December 31, 2013.<br />
         		<br />
         		<a id="bill.4.16.0"></a><a id="pl.79.25"></a><var>79.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 16. Minnesota Statutes 2013 Supplement, section 290A.03, subdivision 15, as <br />
         		<a id="pl.79.26"></a><var>79.26</var>amended by Laws 2014, chapter 150, article 1, section 22, is amended to read:<br />
         		<a id="pl.79.27"></a><var>79.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 15. <b>Internal Revenue Code.</b>  "Internal Revenue Code" means the Internal <br />
         		<a id="pl.79.28"></a><var>79.28</var>Revenue Code of 1986, as amended through December 20, 2013 March 26, 2014.<br />
         		<a id="pl.79.29"></a><var>79.29</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for property tax refunds <br />
         		<a id="pl.79.30"></a><var>79.30</var>based on property taxes payable after December 31, 2013, and rent paid after December <br />
         		<a id="pl.79.31"></a><var>79.31</var>31, 2012.<br />
         		<br />
         		<a id="bill.4.17.0"></a><a id="pl.79.32"></a><var>79.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 17. Minnesota Statutes 2013 Supplement, section 291.005, subdivision 1, as <br />
         		<a id="pl.79.33"></a><var>79.33</var>amended by Laws 2014, chapter 150, article 3, section 3, is amended to read:<br />
         		<a id="pl.80.1"></a><var>80.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Scope.</b> Unless the context otherwise clearly requires, the following <br />
         		<a id="pl.80.2"></a><var>80.2</var>terms used in this chapter shall have the following meanings:<br />
         		<a id="pl.80.3"></a><var>80.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) "Commissioner" means the commissioner of revenue or any person to whom the <br />
         		<a id="pl.80.4"></a><var>80.4</var>commissioner has delegated functions under this chapter.<br />
         		<a id="pl.80.5"></a><var>80.5</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) "Federal gross estate" means the gross estate of a decedent as required to be valued <br />
         		<a id="pl.80.6"></a><var>80.6</var>and otherwise determined for federal estate tax purposes under the Internal Revenue Code, <br />
         		<a id="pl.80.7"></a><var>80.7</var>increased by the value of any property in which the decedent had a qualifying income <br />
         		<a id="pl.80.8"></a><var>80.8</var>interest for life and for which an election was made under section 291.03, subdivision 1d, <br />
         		<a id="pl.80.9"></a><var>80.9</var>for Minnesota estate tax purposes, but was not made for federal estate tax purposes.<br />
         		<a id="pl.80.10"></a><var>80.10</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) "Internal Revenue Code" means the United States Internal Revenue Code of <br />
         		<a id="pl.80.11"></a><var>80.11</var>1986, as amended through March 1 March 26, 2014.<br />
         		<a id="pl.80.12"></a><var>80.12</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) "Minnesota gross estate" means the federal gross estate of a decedent after <br />
         		<a id="pl.80.13"></a><var>80.13</var>(a) excluding therefrom any property included in the estate which has its situs outside <br />
         		<a id="pl.80.14"></a><var>80.14</var>Minnesota, and (b) including any property omitted from the federal gross estate which <br />
         		<a id="pl.80.15"></a><var>80.15</var>is includable in the estate, has its situs in Minnesota, and was not disclosed to federal <br />
         		<a id="pl.80.16"></a><var>80.16</var>taxing authorities.<br />
         		<a id="pl.80.17"></a><var>80.17</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) "Nonresident decedent" means an individual whose domicile at the time of <br />
         		<a id="pl.80.18"></a><var>80.18</var>death was not in Minnesota.<br />
         		<a id="pl.80.19"></a><var>80.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(6) "Personal representative" means the executor, administrator or other person <br />
         		<a id="pl.80.20"></a><var>80.20</var>appointed by the court to administer and dispose of the property of the decedent. If there <br />
         		<a id="pl.80.21"></a><var>80.21</var>is no executor, administrator or other person appointed, qualified, and acting within this <br />
         		<a id="pl.80.22"></a><var>80.22</var>state, then any person in actual or constructive possession of any property having a situs in <br />
         		<a id="pl.80.23"></a><var>80.23</var>this state which is included in the federal gross estate of the decedent shall be deemed <br />
         		<a id="pl.80.24"></a><var>80.24</var>to be a personal representative to the extent of the property and the Minnesota estate tax <br />
         		<a id="pl.80.25"></a><var>80.25</var>due with respect to the property.<br />
         		<a id="pl.80.26"></a><var>80.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(7) "Resident decedent" means an individual whose domicile at the time of death <br />
         		<a id="pl.80.27"></a><var>80.27</var>was in Minnesota.<br />
         		<a id="pl.80.28"></a><var>80.28</var>&nbsp;&nbsp;&nbsp;&nbsp;(8) "Situs of property" means, with respect to:<br />
         		<a id="pl.80.29"></a><var>80.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) real property, the state or country in which it is located;<br />
         		<a id="pl.80.30"></a><var>80.30</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) tangible personal property, the state or country in which it was normally kept <br />
         		<a id="pl.80.31"></a><var>80.31</var>or located at the time of the decedent's death or for a gift of tangible personal property <br />
         		<a id="pl.80.32"></a><var>80.32</var>within three years of death, the state or country in which it was normally kept or located <br />
         		<a id="pl.80.33"></a><var>80.33</var>when the gift was executed; and<br />
         		<a id="pl.80.34"></a><var>80.34</var>&nbsp;&nbsp;&nbsp;&nbsp;(iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue <br />
         		<a id="pl.80.35"></a><var>80.35</var>Code, owned by a nonresident decedent and that is normally kept or located in this state <br />
         		<a id="pl.80.36"></a><var>80.36</var>because it is on loan to an organization, qualifying as exempt from taxation under section <br />
         		<a id="pl.81.1"></a><var>81.1</var>501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is <br />
         		<a id="pl.81.2"></a><var>81.2</var>deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and<br />
         		<a id="pl.81.3"></a><var>81.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(iv) intangible personal property, the state or country in which the decedent was <br />
         		<a id="pl.81.4"></a><var>81.4</var>domiciled at death or for a gift of intangible personal property within three years of death, <br />
         		<a id="pl.81.5"></a><var>81.5</var>the state or country in which the decedent was domiciled when the gift was executed.<br />
         		<a id="pl.81.6"></a><var>81.6</var>&nbsp;&nbsp;&nbsp;&nbsp;For a nonresident decedent with an ownership interest in a pass-through entity with <br />
         		<a id="pl.81.7"></a><var>81.7</var>assets that include real or tangible personal property, situs of the real or tangible personal <br />
         		<a id="pl.81.8"></a><var>81.8</var>property, including qualified works of art, is determined as if the pass-through entity does <br />
         		<a id="pl.81.9"></a><var>81.9</var>not exist and the real or tangible personal property is personally owned by the decedent. <br />
         		<a id="pl.81.10"></a><var>81.10</var>If the pass-through entity is owned by a person or persons in addition to the decedent, <br />
         		<a id="pl.81.11"></a><var>81.11</var>ownership of the property is attributed to the decedent in proportion to the decedent's <br />
         		<a id="pl.81.12"></a><var>81.12</var>capital ownership share of the pass-through entity.<br />
         		<a id="pl.81.13"></a><var>81.13</var>(9) "Pass-through entity" includes the following:<br />
         		<a id="pl.81.14"></a><var>81.14</var>(i) an entity electing S corporation status under section 1362 of the Internal Revenue <br />
         		<a id="pl.81.15"></a><var>81.15</var>Code;<br />
         		<a id="pl.81.16"></a><var>81.16</var>(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;<br />
         		<a id="pl.81.17"></a><var>81.17</var>(iii) a single-member limited liability company or similar entity, regardless of <br />
         		<a id="pl.81.18"></a><var>81.18</var>whether it is taxed as an association or is disregarded for federal income tax purposes <br />
         		<a id="pl.81.19"></a><var>81.19</var>under Code of Federal Regulations, title 26, section 301.7701-3; or<br />
         		<a id="pl.81.20"></a><var>81.20</var>(iv) a trust to the extent the property is includible in the decedent's federal gross <br />
         		<a id="pl.81.21"></a><var>81.21</var>estate; but excludes<br />
         		<a id="pl.81.22"></a><var>81.22</var>&nbsp;&nbsp;&nbsp;&nbsp;(v) an entity whose ownership interest securities are traded on an exchange regulated <br />
         		<a id="pl.81.23"></a><var>81.23</var>by the Securities and Exchange Commission as a national securities exchange under <br />
         		<a id="pl.81.24"></a><var>81.24</var>section 6 of the Securities Exchange Act, United States Code, title 15, section 78f.<br />
         		<a id="pl.81.25"></a><var>81.25</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for estates of decedents <br />
         		<a id="pl.81.26"></a><var>81.26</var>dying after December 31, 2013.<br />
         		<br />
         		<a id="bill.4.18.0"></a><a id="pl.81.27"></a><var>81.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 18. Minnesota Statutes 2012, section 291.016, subdivision 1, as added by Laws <br />
         		<a id="pl.81.28"></a><var>81.28</var>2014, chapter 150, article 3, section 4, is amended to read:<br />
         		<a id="pl.81.29"></a><var>81.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>General.</b> For purposes of the tax under this chapter, the Minnesota <br />
         		<a id="pl.81.30"></a><var>81.30</var>taxable estate equals the federal taxable estate as provided under section 2051 of the Internal <br />
         		<a id="pl.81.31"></a><var>81.31</var>Revenue Code, without regard to whether the estate is subject to the federal estate tax:<br />
         		<a id="pl.81.32"></a><var>81.32</var>(1) increased by the value of any property in which the decedent had a qualifying <br />
         		<a id="pl.81.33"></a><var>81.33</var>income interest for life and for which an election was made under section 291.03, <br />
         		<a id="pl.81.34"></a><var>81.34</var>subdivision 1d, for Minnesota estate tax purposes, but was not made for federal estate <br />
         		<a id="pl.81.35"></a><var>81.35</var>tax purposes;<br />
         		<a id="pl.82.1"></a><var>82.1</var>(2) increased by the additions under subdivision 2; and<br />
         		<a id="pl.82.2"></a><var>82.2</var>(2) (3) decreased by the subtraction under subdivision 3.<br />
         		<a id="pl.82.3"></a><var>82.3</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for estates of decedents <br />
         		<a id="pl.82.4"></a><var>82.4</var>dying after December 31, 2013.<br />
         		<br />
         		<a id="bill.4.19.0"></a><a id="pl.82.5"></a><var>82.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 19. Minnesota Statutes 2012, section 291.031, as added by Laws 2014, chapter <br />
         		<a id="pl.82.6"></a><var>82.6</var>150, article 3, section 7, is amended to read:<br />
         		<a id="pl.82.7"></a><var>82.7</var><b>291.031 CREDITS.</b><br />
         		<a id="pl.82.8"></a><var>82.8</var>(a) The estate of a nonresident decedent that is subject to tax under this chapter on <br />
         		<a id="pl.82.9"></a><var>82.9</var>the value of Minnesota situs property held in a pass-through entity is allowed a credit <br />
         		<a id="pl.82.10"></a><var>82.10</var>against the tax due under this section 291.03 equal to the lesser of:<br />
         		<a id="pl.82.11"></a><var>82.11</var>(1) the amount of estate or inheritance tax paid to another state that is attributable to <br />
         		<a id="pl.82.12"></a><var>82.12</var>the Minnesota situs property held in the pass-through entity; or<br />
         		<a id="pl.82.13"></a><var>82.13</var>(2) the amount of tax paid under this section attributable to the Minnesota situs <br />
         		<a id="pl.82.14"></a><var>82.14</var>property held in the pass-through entity.<br />
         		<a id="pl.82.15"></a><var>82.15</var>(b) The amount of tax attributable to the Minnesota situs property held in the <br />
         		<a id="pl.82.16"></a><var>82.16</var>pass-through entity must be determined by the increase in the estate or inheritance tax that <br />
         		<a id="pl.82.17"></a><var>82.17</var>results from including the market value of the property in the estate or treating the value <br />
         		<a id="pl.82.18"></a><var>82.18</var>as a taxable inheritance to the recipient of the property.<br />
         		<a id="pl.82.19"></a><var>82.19</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for estates of decedents <br />
         		<a id="pl.82.20"></a><var>82.20</var>dying after December 31, 2013.<br />
         		<br />
         		<a id="bill.4.20.0"></a><a id="pl.82.21"></a><var>82.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 20. Laws 2014, chapter 150, article 3, section 4, the effective date, is amended to <br />
         		<a id="pl.82.22"></a><var>82.22</var>read:<br />
         		<a id="pl.82.23"></a><var>82.23</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for estates of decedents <br />
         		<a id="pl.82.24"></a><var>82.24</var>dying after December 31, 2013, and for taxable gifts made after June 30, 2013.<br />
         		<a id="pl.82.25"></a><var>82.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.4.21.0"></a><a id="pl.82.26"></a><var>82.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 21. <b>DEFINITION OF TAXABLE GIFT FOR DECEDENTS DYING </b><br />
         		<a id="pl.82.27"></a><var>82.27</var><b>BEFORE JANUARY 1, 2014.</b><br />
         		<a id="pl.82.28"></a><var>82.28</var>For estates of decedents dying before January 1, 2014, "taxable gift" as used by <br />
         		<a id="pl.82.29"></a><var>82.29</var>Minnesota Statutes, section 291.005, subdivision 1, paragraph (4), means a transfer by gift <br />
         		<a id="pl.82.30"></a><var>82.30</var>which is included in taxable gifts for federal gift tax purposes under the following sections <br />
         		<a id="pl.82.31"></a><var>82.31</var>of the Internal Revenue Code: section 529; section 530; section 2501(a)(4); section 2503; <br />
         		<a id="pl.83.1"></a><var>83.1</var>sections 2511 to 2514; and sections 2516 to 2519; less the deductions allowed in sections <br />
         		<a id="pl.83.2"></a><var>83.2</var>2522 to 2524 of the Internal Revenue Code, and after excluding taxable gifts of any <br />
         		<a id="pl.83.3"></a><var>83.3</var>property that has its situs outside Minnesota and including taxable gifts of any property <br />
         		<a id="pl.83.4"></a><var>83.4</var>that has its situs in Minnesota and were not disclosed to federal taxing authorities.<br />
         		<a id="pl.83.5"></a><var>83.5</var><b>EFFECTIVE DATE.</b>This section is effective retroactively for taxable gifts made <br />
         		<a id="pl.83.6"></a><var>83.6</var>after June 30, 2013.<br />
         		<br />
         		<a id="bill.4.22.0"></a><a id="pl.83.7"></a><var>83.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 22. <b>TEMPORARY READING CREDIT.</b><br />
         		<a id="pl.83.8"></a><var>83.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Reading credit.</b> (a) A taxpayer is allowed a credit, up to $2,000, <br />
         		<a id="pl.83.9"></a><var>83.9</var>against the tax imposed by Minnesota Statutes, chapter 290. The credit amount equals 75 <br />
         		<a id="pl.83.10"></a><var>83.10</var>percent of the amount of eligible expenses paid by a taxpayer who is a parent or guardian <br />
         		<a id="pl.83.11"></a><var>83.11</var>of a qualifying child:<br />
         		<a id="pl.83.12"></a><var>83.12</var>(1) who has been evaluated for determination of a specific learning disability under <br />
         		<a id="pl.83.13"></a><var>83.13</var>Minnesota Rules, part 3525.1341, and was not found to meet the criteria under Minnesota <br />
         		<a id="pl.83.14"></a><var>83.14</var>Rules, part 3525.1341, subpart 2, to have a specific learning disability; and<br />
         		<a id="pl.83.15"></a><var>83.15</var>(2) for whom the evaluation indicated a determination of a deficiency in basic <br />
         		<a id="pl.83.16"></a><var>83.16</var>reading skills, reading comprehension, or reading fluency that impair a child to meet <br />
         		<a id="pl.83.17"></a><var>83.17</var>expected age or grade-level standards.<br />
         		<a id="pl.83.18"></a><var>83.18</var>(b) For purposes of this subdivision, the following definitions apply:<br />
         		<a id="pl.83.19"></a><var>83.19</var>(1) "eligible expenses" means actual expenses, less the amount of expenses used to <br />
         		<a id="pl.83.20"></a><var>83.20</var>claim the credit under Minnesota Statutes, section 290.0674, subdivision 1, paid by the <br />
         		<a id="pl.83.21"></a><var>83.21</var>taxpayer for tutoring, instruction, or treatment by an instructor and not compensated by <br />
         		<a id="pl.83.22"></a><var>83.22</var>insurance, pretax account, or otherwise, for purposes of meeting the academic standards <br />
         		<a id="pl.83.23"></a><var>83.23</var>required under Minnesota Statutes, section 120B.021;<br />
         		<a id="pl.83.24"></a><var>83.24</var>(2) "instructor" means a person qualifying under Minnesota Statutes, section <br />
         		<a id="pl.83.25"></a><var>83.25</var>120A.22, subdivision 10, clauses (1) to (5), who is not a lineal ancestor or sibling of <br />
         		<a id="pl.83.26"></a><var>83.26</var>the qualifying child; <br />
         		<a id="pl.83.27"></a><var>83.27</var>(3) "treatment" means instruction that:<br />
         		<a id="pl.83.28"></a><var>83.28</var>(i) teaches language decoding skills in a systematic manner;<br />
         		<a id="pl.83.29"></a><var>83.29</var>(ii) uses recognized diagnostic assessments to determine what intervention would be <br />
         		<a id="pl.83.30"></a><var>83.30</var>most appropriate for individual students; and<br />
         		<a id="pl.83.31"></a><var>83.31</var>(iii) employs a research-based method; and<br />
         		<a id="pl.83.32"></a><var>83.32</var>(4) "qualifying child" has the meaning given in section 32(c)(3) of the Internal <br />
         		<a id="pl.83.33"></a><var>83.33</var>Revenue Code.<br />
         		<a id="pl.84.1"></a><var>84.1</var>(c) A taxpayer claiming the credit under this subdivision must provide documentation <br />
         		<a id="pl.84.2"></a><var>84.2</var>of eligibility for the credit in a form and manner prescribed by the commissioner of <br />
         		<a id="pl.84.3"></a><var>84.3</var>revenue in consultation with the commissioner of education. The documentation under <br />
         		<a id="pl.84.4"></a><var>84.4</var>this paragraph must not disclose any information other than that necessary to prove <br />
         		<a id="pl.84.5"></a><var>84.5</var>eligibility for the credit allowed under this subdivision.<br />
         		<a id="pl.84.6"></a><var>84.6</var>(d) For a nonresident or part-year resident, the credit determined under this section <br />
         		<a id="pl.84.7"></a><var>84.7</var>must be allocated based on the percentage calculated under Minnesota Statutes, section <br />
         		<a id="pl.84.8"></a><var>84.8</var>290.06, subdivision 2c, paragraph (e).<br />
         		<a id="pl.84.9"></a><var>84.9</var>(e) The amount used to claim the credit under this section must be excluded from <br />
         		<a id="pl.84.10"></a><var>84.10</var>any amount subtracted from federal taxable income under section 290.01, subdivision <br />
         		<a id="pl.84.11"></a><var>84.11</var>19b, clause (3).<br />
         		<a id="pl.84.12"></a><var>84.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Assignment of refunds.</b> The provisions of Minnesota Statutes, section <br />
         		<a id="pl.84.13"></a><var>84.13</var>290.0679, except for subdivision 1, paragraphs (a) and (b), apply to the assignment of <br />
         		<a id="pl.84.14"></a><var>84.14</var>refunds authorized under this section. For purposes of assignment of refund under this <br />
         		<a id="pl.84.15"></a><var>84.15</var>section, a "qualifying taxpayer" means a taxpayer qualified to receive a credit under this <br />
         		<a id="pl.84.16"></a><var>84.16</var>section. In no case shall any condition for assignment require disclosure of the specific <br />
         		<a id="pl.84.17"></a><var>84.17</var>findings of an evaluation for a specific learning disability.<br />
         		<a id="pl.84.18"></a><var>84.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Credit to be refundable.</b> If the amount of total credits that the claimant is <br />
         		<a id="pl.84.19"></a><var>84.19</var>eligible to receive under this section exceeds the claimant's tax liability under Minnesota <br />
         		<a id="pl.84.20"></a><var>84.20</var>Statutes, chapter 290, the commissioner of revenue shall refund the excess to the claimant.<br />
         		<a id="pl.84.21"></a><var>84.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Appropriation.</b> An amount sufficient to pay the refunds authorized under <br />
         		<a id="pl.84.22"></a><var>84.22</var>this section is appropriated to the commissioner of revenue from the general fund.<br />
         		<a id="pl.84.23"></a><var>84.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Report.</b> By March 1, 2016, the commissioner of revenue, in compliance <br />
         		<a id="pl.84.24"></a><var>84.24</var>with Minnesota Statutes, sections 3.195 and 3.197, must provide a report to the chairs and <br />
         		<a id="pl.84.25"></a><var>84.25</var>ranking minority members of the committees of the house of representatives and senate <br />
         		<a id="pl.84.26"></a><var>84.26</var>with jurisdiction over taxes and education on:<br />
         		<a id="pl.84.27"></a><var>84.27</var>(1) the number of taxpayers claiming the credit under this section and the average <br />
         		<a id="pl.84.28"></a><var>84.28</var>amount of credits claimed; and<br />
         		<a id="pl.84.29"></a><var>84.29</var>(2) the administration of the credit, including recommendations for ensuring <br />
         		<a id="pl.84.30"></a><var>84.30</var>compliance.<br />
         		<a id="pl.84.31"></a><var>84.31</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.84.32"></a><var>84.32</var>December 31, 2013, and before January 1, 2015 only.<br />
         		<br />
         		<a id="bill.5.0.0"></a><div class="xtend_ce"><a id="pl.85.1"></a><var>85.1</var><b>ARTICLE 5</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.85.2"></a><var>85.2</var><b>MINERALS TAXES</b><br />
            		
         </div><br />
         		<a id="bill.5.1.0"></a><a id="pl.85.3"></a><var>85.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. Minnesota Statutes 2012, section 276A.06, subdivision 3, as amended by <br />
         		<a id="pl.85.4"></a><var>85.4</var>Laws 2014, chapter 150, article 6, section 5, is amended to read:<br />
         		<a id="pl.85.5"></a><var>85.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Apportionment of levy.</b> The county auditor shall apportion the levy of <br />
         		<a id="pl.85.6"></a><var>85.6</var>each governmental unit in the county in the manner prescribed by this subdivision. The <br />
         		<a id="pl.85.7"></a><var>85.7</var>auditor shall:<br />
         		<a id="pl.85.8"></a><var>85.8</var>(a) by August 20 of 2014 and each subsequent year, determine the preliminary <br />
         		<a id="pl.85.9"></a><var>85.9</var>areawide portion of the levy for each governmental unit by multiplying the local tax <br />
         		<a id="pl.85.10"></a><var>85.10</var>rate of the governmental unit for the preceding levy year times the distribution value set <br />
         		<a id="pl.85.11"></a><var>85.11</var>forth in subdivision 2, clause (b),;<br />
         		<a id="pl.85.12"></a><var>85.12</var>(b) by September 5 of 2014 and each subsequent year, determine the areawide <br />
         		<a id="pl.85.13"></a><var>85.13</var>portion of the levy for each governmental unit by multiplying the preliminary areawide <br />
         		<a id="pl.85.14"></a><var>85.14</var>portion of the levy for each governmental unit times a fraction, the numerator of which is <br />
         		<a id="pl.85.15"></a><var>85.15</var>the difference between the sum of the preliminary areawide levies for all governmental <br />
         		<a id="pl.85.16"></a><var>85.16</var>units in the area minus the school fund allocation and the denominator is the sum of the <br />
         		<a id="pl.85.17"></a><var>85.17</var>preliminary areawide levy for all governmental units in the area; and<br />
         		<a id="pl.85.18"></a><var>85.18</var>(b) (c) by September 5 of 2014 and each subsequent year, determine the local <br />
         		<a id="pl.85.19"></a><var>85.19</var>portion of the current year's levy by subtracting the resulting amount from clause (a) from <br />
         		<a id="pl.85.20"></a><var>85.20</var>the governmental unit's current year's levy.<br />
         		<a id="pl.85.21"></a><var>85.21</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2015 and <br />
         		<a id="pl.85.22"></a><var>85.22</var>thereafter.<br />
         		<br />
         		<a id="bill.5.2.0"></a><a id="pl.85.23"></a><var>85.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. Minnesota Statutes 2012, section 276A.06, subdivision 5, as amended by Laws <br />
         		<a id="pl.85.24"></a><var>85.24</var>2014, chapter 150, article 6, section 6, is amended to read:<br />
         		<a id="pl.85.25"></a><var>85.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Areawide tax rate.</b> On or before August 25 of 1997 and each subsequent <br />
         		<a id="pl.85.26"></a><var>85.26</var>year, the county auditor shall certify to the administrative auditor that the preliminary<br />
         		<a id="pl.85.27"></a><var>85.27</var> portion of the levy of each governmental unit determined pursuant to subdivision 3, clause <br />
         		<a id="pl.85.28"></a><var>85.28</var>(a). The administrative auditor shall then determine the areawide tax rate sufficient to <br />
         		<a id="pl.85.29"></a><var>85.29</var>yield an amount equal to the sum of the levies from the preliminary areawide net tax <br />
         		<a id="pl.85.30"></a><var>85.30</var>capacity plus the school fund allocation. On or before September 1, the administrative <br />
         		<a id="pl.85.31"></a><var>85.31</var>auditor shall certify the areawide tax rate to each of the county auditors.<br />
         		<a id="pl.85.32"></a><var>85.32</var><b>EFFECTIVE DATE.</b>This section is effective for taxes payable in 2015 and <br />
         		<a id="pl.85.33"></a><var>85.33</var>thereafter.<br />
         		<br />
         		<a id="bill.5.3.0"></a><a id="pl.86.1"></a><var>86.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. Minnesota Statutes 2013 Supplement, section 298.018, subdivision 1, is <br />
         		<a id="pl.86.2"></a><var>86.2</var>amended to read:<br />
         		<a id="pl.86.3"></a><var>86.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Within taconite assistance area.</b> The proceeds of the tax paid under <br />
         		<a id="pl.86.4"></a><var>86.4</var>sections 
         <statute_ref>298.015</statute_ref> and 
         <statute_ref>298.016</statute_ref> on ores, metals, or minerals mined or extracted within the <br />
         		<a id="pl.86.5"></a><var>86.5</var>taconite assistance area defined in section 
         <statute_ref>273.1341</statute_ref>, shall be allocated as follows:<br />
         		<a id="pl.86.6"></a><var>86.6</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) five percent to the city or town within which the minerals or energy resources <br />
         		<a id="pl.86.7"></a><var>86.7</var>are mined or extracted, or within which the concentrate was produced. If the mining <br />
         		<a id="pl.86.8"></a><var>86.8</var>and concentration, or different steps in either process, are carried on in more than one <br />
         		<a id="pl.86.9"></a><var>86.9</var>taxing district, the commissioner shall apportion equitably the proceeds among the <br />
         		<a id="pl.86.10"></a><var>86.10</var>cities and towns by attributing 50 percent of the proceeds of the tax to the operation of <br />
         		<a id="pl.86.11"></a><var>86.11</var>mining or extraction, and the remainder to the concentrating plant and to the processes of <br />
         		<a id="pl.86.12"></a><var>86.12</var>concentration, and with respect to each thereof giving due consideration to the relative <br />
         		<a id="pl.86.13"></a><var>86.13</var>extent of the respective operations performed in each taxing district;<br />
         		<a id="pl.86.14"></a><var>86.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) ten percent to the taconite municipal aid account to be distributed as provided <br />
         		<a id="pl.86.15"></a><var>86.15</var>in section 
         <statute_ref>298.282</statute_ref>;<br />
         		<a id="pl.86.16"></a><var>86.16</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) ten percent to the school district within which the minerals or energy resources <br />
         		<a id="pl.86.17"></a><var>86.17</var>are mined or extracted, or within which the concentrate was produced. If the mining <br />
         		<a id="pl.86.18"></a><var>86.18</var>and concentration, or different steps in either process, are carried on in more than one <br />
         		<a id="pl.86.19"></a><var>86.19</var>school district, distribution among the school districts must be based on the apportionment <br />
         		<a id="pl.86.20"></a><var>86.20</var>formula prescribed in clause (1);<br />
         		<a id="pl.86.21"></a><var>86.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) 20 percent to a group of school districts comprised of those school districts <br />
         		<a id="pl.86.22"></a><var>86.22</var>wherein the mineral or energy resource was mined or extracted or in which there is a <br />
         		<a id="pl.86.23"></a><var>86.23</var>qualifying municipality as defined by section 
         <statute_ref>273.134, paragraph (b)</statute_ref>, in direct proportion <br />
         		<a id="pl.86.24"></a><var>86.24</var>to school district indexes as follows: for each school district, its pupil units determined <br />
         		<a id="pl.86.25"></a><var>86.25</var>under section 
         <statute_ref>126C.05</statute_ref> for the prior school year shall be multiplied by the ratio of the <br />
         		<a id="pl.86.26"></a><var>86.26</var>average adjusted net tax capacity per pupil unit for school districts receiving aid under <br />
         		<a id="pl.86.27"></a><var>86.27</var>this clause as calculated pursuant to chapters 122A, 126C, and 127A for the school year <br />
         		<a id="pl.86.28"></a><var>86.28</var>ending prior to distribution to the adjusted net tax capacity per pupil unit of the district. <br />
         		<a id="pl.86.29"></a><var>86.29</var>Each district shall receive that portion of the distribution which its index bears to the sum <br />
         		<a id="pl.86.30"></a><var>86.30</var>of the indices for all school districts that receive the distributions;<br />
         		<a id="pl.86.31"></a><var>86.31</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) 20 percent to the county within which the minerals or energy resources are <br />
         		<a id="pl.86.32"></a><var>86.32</var>mined or extracted, or within which the concentrate was produced. If the mining and <br />
         		<a id="pl.86.33"></a><var>86.33</var>concentration, or different steps in either process, are carried on in more than one county, <br />
         		<a id="pl.86.34"></a><var>86.34</var>distribution among the counties must be based on the apportionment formula prescribed in <br />
         		<a id="pl.86.35"></a><var>86.35</var>clause (1), provided that any county receiving distributions under this clause shall pay one <br />
         		<a id="pl.86.36"></a><var>86.36</var>percent of its proceeds to the Range Association of Municipalities and Schools;<br />
         		<a id="pl.87.1"></a><var>87.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(6) 20 percent to St. Louis County acting as the counties' fiscal agent to be <br />
         		<a id="pl.87.2"></a><var>87.2</var>distributed as provided in sections 
         <statute_ref>273.134</statute_ref> to 
         <statute_ref>273.136</statute_ref>;<br />
         		<a id="pl.87.3"></a><var>87.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(7) five percent to the Iron Range Resources and Rehabilitation Board for the <br />
         		<a id="pl.87.4"></a><var>87.4</var>purposes of section 
         <statute_ref>298.22</statute_ref>;<br />
         		<a id="pl.87.5"></a><var>87.5</var>&nbsp;&nbsp;&nbsp;&nbsp;(8) five three percent to the Douglas J. Johnson economic protection trust fund; and<br />
         		<a id="pl.87.6"></a><var>87.6</var>&nbsp;&nbsp;&nbsp;&nbsp;(9) five seven percent to the taconite environmental protection fund.<br />
         		<a id="pl.87.7"></a><var>87.7</var>&nbsp;&nbsp;&nbsp;&nbsp;The proceeds of the tax shall be distributed on July 15 each year.<br />
         		<a id="pl.87.8"></a><var>87.8</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2014.<br />
         		<br />
         		<a id="bill.5.4.0"></a><a id="pl.87.9"></a><var>87.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 4. Minnesota Statutes 2012, section 298.28, subdivision 5, as amended by Laws <br />
         		<a id="pl.87.10"></a><var>87.10</var>2014, chapter 150, article 6, section 11, is amended to read:<br />
         		<a id="pl.87.11"></a><var>87.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Counties.</b> (a) 
         <statute_ref>21.05</statute_ref> cents per taxable ton for distributions in 2015 through <br />
         		<a id="pl.87.12"></a><var>87.12</var>2023, and 26.05 cents per taxable ton for distributions beginning in 2024 is allocated <br />
         		<a id="pl.87.13"></a><var>87.13</var>to counties to be distributed, based upon certification by the commissioner of revenue, <br />
         		<a id="pl.87.14"></a><var>87.14</var>under paragraphs (b) to (d).<br />
         		<a id="pl.87.15"></a><var>87.15</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) 
         <statute_ref>10.525</statute_ref> cents per taxable ton shall be distributed to the county in which the <br />
         		<a id="pl.87.16"></a><var>87.16</var>taconite is mined or quarried or in which the concentrate is produced, less any amount <br />
         		<a id="pl.87.17"></a><var>87.17</var>which is to be distributed pursuant to paragraph (c). The apportionment formula prescribed <br />
         		<a id="pl.87.18"></a><var>87.18</var>in subdivision 2 is the basis for the distribution.<br />
         		<a id="pl.87.19"></a><var>87.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) If an electric power plant owned by and providing the primary source of power for <br />
         		<a id="pl.87.20"></a><var>87.20</var>a taxpayer mining and concentrating taconite is located in a county other than the county <br />
         		<a id="pl.87.21"></a><var>87.21</var>in which the mining and the concentrating processes are conducted, one cent per taxable <br />
         		<a id="pl.87.22"></a><var>87.22</var>ton of the tax distributed to the counties pursuant to paragraph (b) and imposed on and <br />
         		<a id="pl.87.23"></a><var>87.23</var>collected from such taxpayer shall be paid to the county in which the power plant is located.<br />
         		<a id="pl.87.24"></a><var>87.24</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) 10.525 cents per taxable ton for distributions in 2015 through 2023, and 15.525 <br />
         		<a id="pl.87.25"></a><var>87.25</var>cents per taxable ton for distributions beginning in 2024 shall be paid to the county from <br />
         		<a id="pl.87.26"></a><var>87.26</var>which the taconite was mined, quarried or concentrated to be deposited in the county road <br />
         		<a id="pl.87.27"></a><var>87.27</var>and bridge fund. If the mining, quarrying and concentrating, or separate steps in any of <br />
         		<a id="pl.87.28"></a><var>87.28</var>those processes are carried on in more than one county, the commissioner shall follow the <br />
         		<a id="pl.87.29"></a><var>87.29</var>apportionment formula prescribed in subdivision 2.<br />
         		<a id="pl.87.30"></a><var>87.30</var><b>EFFECTIVE DATE.</b>This section is effective for distributions beginning in 2015 <br />
         		<a id="pl.87.31"></a><var>87.31</var>and thereafter.<br />
         		<br />
         		<a id="bill.5.5.0"></a><a id="pl.87.32"></a><var>87.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 5. Minnesota Statutes 2012, section 298.28, subdivision 7a, as added by Laws <br />
         		<a id="pl.87.33"></a><var>87.33</var>2014, chapter 150, article 6, section 13, is amended to read:<br />
         		<a id="pl.88.1"></a><var>88.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7a. <b>Iron Range school consolidation and cooperatively operated school </b><br />
         		<a id="pl.88.2"></a><var>88.2</var><b>account.</b> The following amounts must be allocated to the Iron Range Resources and <br />
         		<a id="pl.88.3"></a><var>88.3</var>Rehabilitation Board to be deposited in the Iron Range school consolidation and <br />
         		<a id="pl.88.4"></a><var>88.4</var>cooperatively operated school account that is hereby created:<br />
         		<a id="pl.88.5"></a><var>88.5</var>(1) (i) for distributions in 2015 through 2023,  ten cents per taxable ton of the tax <br />
         		<a id="pl.88.6"></a><var>88.6</var>imposed under section 
         <statute_ref>298.24</statute_ref>; and (ii) for distributions beginning in 2024, five cents per <br />
         		<a id="pl.88.7"></a><var>88.7</var>taxable ton of the tax imposed under section 298.24;<br />
         		<a id="pl.88.8"></a><var>88.8</var>(2) the amount as determined under section 
         <statute_ref>298.17</statute_ref>, paragraph (b), clause (3); and<br />
         		<a id="pl.88.9"></a><var>88.9</var>(3) for distributions in 2015 through 2017, an amount equal to two-thirds of the <br />
         		<a id="pl.88.10"></a><var>88.10</var>increased tax proceeds attributable to the increase in the implicit price deflator as provided <br />
         		<a id="pl.88.11"></a><var>88.11</var>in section 
         <statute_ref>298.24, subdivision 1</statute_ref> (i) for distributions in 2015, an amount equal to two-thirds <br />
         		<a id="pl.88.12"></a><var>88.12</var>of the increased tax proceeds attributable to the increase in the implicit price deflator as <br />
         		<a id="pl.88.13"></a><var>88.13</var>provided in section 298.24, subdivision 1, with the remaining one-third to be distributed to <br />
         		<a id="pl.88.14"></a><var>88.14</var>the Douglas J. Johnson Economic Protection Trust Fund;<br />
         		<a id="pl.88.15"></a><var>88.15</var>(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the <br />
         		<a id="pl.88.16"></a><var>88.16</var>increased tax proceeds attributable to the increase in the implicit price deflator as provided <br />
         		<a id="pl.88.17"></a><var>88.17</var>in section 298.24, subdivision 1, for distribution years 2015 and 2016, with the remaining <br />
         		<a id="pl.88.18"></a><var>88.18</var>one-third to be distributed to the Douglas J. Johnson Economic Protection Trust Fund; and<br />
         		<a id="pl.88.19"></a><var>88.19</var>(iii) for distributions in 2017, an amount equal to two-thirds of the sum of the <br />
         		<a id="pl.88.20"></a><var>88.20</var>increased tax proceeds attributable to the increase in the implicit price deflator as provided <br />
         		<a id="pl.88.21"></a><var>88.21</var>in section 298.24, subdivision 1, for distribution years 2015, 2016, and 2017, with the <br />
         		<a id="pl.88.22"></a><var>88.22</var>remaining one-third to be distributed to the Douglas J. Johnson Economic Protection <br />
         		<a id="pl.88.23"></a><var>88.23</var>Trust Fund; and<br />
         		<a id="pl.88.24"></a><var>88.24</var>(4) any other amount as provided by law.<br />
         		<a id="pl.88.25"></a><var>88.25</var>Expenditures from this account shall be made only to provide disbursements to <br />
         		<a id="pl.88.26"></a><var>88.26</var>assist school districts with the payment of bonds that were issued for qualified school <br />
         		<a id="pl.88.27"></a><var>88.27</var>projects, or for any other school disbursement as approved by the Iron Range Resources <br />
         		<a id="pl.88.28"></a><var>88.28</var>and Rehabilitation Board. For purposes of this section, "qualified school projects" means <br />
         		<a id="pl.88.29"></a><var>88.29</var>school projects within the taconite assistance area as defined in section 
         <statute_ref>273.1341</statute_ref>, that were <br />
         		<a id="pl.88.30"></a><var>88.30</var>(1) approved, by referendum, after December 7, 2009 April 3, 2006; and (2) approved by <br />
         		<a id="pl.88.31"></a><var>88.31</var>the commissioner of education pursuant to section 
         <statute_ref>123B.71</statute_ref>.<br />
         		<a id="pl.88.32"></a><var>88.32</var>No expenditure under this section shall be made unless approved by seven members <br />
         		<a id="pl.88.33"></a><var>88.33</var>of the Iron Range Resources and Rehabilitation Board.<br />
         		<a id="pl.88.34"></a><var>88.34</var><b>EFFECTIVE DATE.</b>This section is effective for distributions beginning in 2015 <br />
         		<a id="pl.88.35"></a><var>88.35</var>and thereafter.<br />
         		<br />
         		<a id="bill.5.6.0"></a><a id="pl.89.1"></a><var>89.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 6. Minnesota Statutes 2013 Supplement, section 298.28, subdivision 10, as <br />
         		<a id="pl.89.2"></a><var>89.2</var>amended by Laws 2014, chapter 150, article 6, section 15, is amended to read:<br />
         		<a id="pl.89.3"></a><var>89.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 10. <b>Increase.</b> (a) Except as provided in paragraph (b), for distributions <br />
         		<a id="pl.89.4"></a><var>89.4</var>in 2000 through 2014 and for distributions in 2018 and subsequent years, the amount <br />
         		<a id="pl.89.5"></a><var>89.5</var>determined under subdivision 9 shall be increased in the same proportion as the increase <br />
         		<a id="pl.89.6"></a><var>89.6</var>in the implicit price deflator as provided in section 
         <statute_ref>298.24, subdivision 1</statute_ref>. Beginning with <br />
         		<a id="pl.89.7"></a><var>89.7</var>distributions in 2018, the amount determined under subdivision 6, paragraph (a), shall be <br />
         		<a id="pl.89.8"></a><var>89.8</var>increased in the same proportion as the increase in the implicit price deflator as provided <br />
         		<a id="pl.89.9"></a><var>89.9</var>in section 
         <statute_ref>298.24, subdivision 1</statute_ref>.<br />
         		<a id="pl.89.10"></a><var>89.10</var>(b) For distributions in 2005 and subsequent years, an amount equal to the increased <br />
         		<a id="pl.89.11"></a><var>89.11</var>tax proceeds attributable to the increase in the implicit price deflator as provided in <br />
         		<a id="pl.89.12"></a><var>89.12</var>section 
         <statute_ref>298.24, subdivision 1</statute_ref>, for taxes paid in 2005, except for the amount of revenue <br />
         		<a id="pl.89.13"></a><var>89.13</var>increases provided in subdivision 4, paragraph (d), is distributed to the grant and loan fund <br />
         		<a id="pl.89.14"></a><var>89.14</var>established in section 
         <statute_ref>298.2961, subdivision 4</statute_ref>.<br />
         		<a id="pl.89.15"></a><var>89.15</var>(c) For distributions in 2015 through 2017, an amount equal to two-thirds of the <br />
         		<a id="pl.89.16"></a><var>89.16</var>increased tax proceeds attributable to the increase in the implicit price deflator as provided <br />
         		<a id="pl.89.17"></a><var>89.17</var>in section 
         <statute_ref>298.24, subdivision 1</statute_ref>, is distributed to the Iron Range school consolidation and <br />
         		<a id="pl.89.18"></a><var>89.18</var>cooperatively operated school account in section 
         <statute_ref>298.28, subdivision 7a</statute_ref>, with the remaining <br />
         		<a id="pl.89.19"></a><var>89.19</var>one-third to be distributed to the Douglas J. Johnson Economic Protection Trust Fund.<br />
         		<a id="pl.89.20"></a><var>89.20</var><b>EFFECTIVE DATE.</b>This section is effective for distributions beginning in 2015 <br />
         		<a id="pl.89.21"></a><var>89.21</var>and thereafter.<br />
         		<br />
         		<a id="bill.5.7.0"></a><a id="pl.89.22"></a><var>89.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 7. Minnesota Statutes 2012, section 298.75, subdivision 2, is amended to read:<br />
         		<a id="pl.89.23"></a><var>89.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Tax imposed.</b> (a) Except as provided in paragraph (e), a county that <br />
         		<a id="pl.89.24"></a><var>89.24</var>imposes the aggregate production tax shall impose upon every operator a production tax <br />
         		<a id="pl.89.25"></a><var>89.25</var>of 21.5 cents per cubic yard or 15 cents per ton of aggregate material excavated in the <br />
         		<a id="pl.89.26"></a><var>89.26</var>county except that the county board may decide not to impose this tax if it determines <br />
         		<a id="pl.89.27"></a><var>89.27</var>that in the previous year operators removed less than 20,000 tons or 14,000 cubic yards of <br />
         		<a id="pl.89.28"></a><var>89.28</var>aggregate material from that county. The tax shall not be imposed on aggregate material <br />
         		<a id="pl.89.29"></a><var>89.29</var>excavated in the county until the aggregate material is transported from the extraction site <br />
         		<a id="pl.89.30"></a><var>89.30</var>or sold, whichever occurs first. When aggregate material is stored in a stockpile within the <br />
         		<a id="pl.89.31"></a><var>89.31</var>state of Minnesota and a public highway, road or street is not used for transporting the <br />
         		<a id="pl.89.32"></a><var>89.32</var>aggregate material, the tax shall not be imposed until either when the aggregate material <br />
         		<a id="pl.89.33"></a><var>89.33</var>is sold, or when it is transported from the stockpile site, or when it is used from the <br />
         		<a id="pl.89.34"></a><var>89.34</var>stockpile, whichever occurs first.<br />
         		<a id="pl.90.1"></a><var>90.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as provided in paragraph (e), a county that imposes the aggregate <br />
         		<a id="pl.90.2"></a><var>90.2</var>production tax under paragraph (a) shall impose upon every importer a production tax <br />
         		<a id="pl.90.3"></a><var>90.3</var>of 21.5 cents per cubic yard or 15 cents per ton of aggregate material imported into the <br />
         		<a id="pl.90.4"></a><var>90.4</var>county. The tax shall be imposed when the aggregate material is imported from the <br />
         		<a id="pl.90.5"></a><var>90.5</var>extraction site or sold. When imported aggregate material is stored in a stockpile within <br />
         		<a id="pl.90.6"></a><var>90.6</var>the state of Minnesota and a public highway, road, or street is not used for transporting <br />
         		<a id="pl.90.7"></a><var>90.7</var>the aggregate material, the tax shall be imposed either when the aggregate material is <br />
         		<a id="pl.90.8"></a><var>90.8</var>sold, when it is transported from the stockpile site, or when it is used from the stockpile, <br />
         		<a id="pl.90.9"></a><var>90.9</var>whichever occurs first. The tax shall be imposed on an importer when the aggregate <br />
         		<a id="pl.90.10"></a><var>90.10</var>material is imported into the county that imposes the tax.<br />
         		<a id="pl.90.11"></a><var>90.11</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) If the aggregate material is transported directly from the extraction site to a <br />
         		<a id="pl.90.12"></a><var>90.12</var>waterway, railway, or another mode of transportation other than a highway, road or street, <br />
         		<a id="pl.90.13"></a><var>90.13</var>the tax imposed by this section shall be apportioned equally between the county where the <br />
         		<a id="pl.90.14"></a><var>90.14</var>aggregate material is extracted and the county to which the aggregate material is originally <br />
         		<a id="pl.90.15"></a><var>90.15</var>transported. If that destination is not located in Minnesota, then the county where the <br />
         		<a id="pl.90.16"></a><var>90.16</var>aggregate material was extracted shall receive all of the proceeds of the tax.<br />
         		<a id="pl.90.17"></a><var>90.17</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) A county, city, or town that receives revenue under this section is prohibited <br />
         		<a id="pl.90.18"></a><var>90.18</var>from imposing any additional host community fees on aggregate production within that <br />
         		<a id="pl.90.19"></a><var>90.19</var>county, city, or town.<br />
         		<a id="pl.90.20"></a><var>90.20</var>(e) A county that borders two other states and that is not contiguous to a county <br />
         		<a id="pl.90.21"></a><var>90.21</var>that imposes a tax under this section may impose the taxes under paragraphs (a) and (b) <br />
         		<a id="pl.90.22"></a><var>90.22</var>at the rate of ten cents per cubic yard or seven cents per ton. This paragraph expires <br />
         		<a id="pl.90.23"></a><var>90.23</var>December 31, 2014 2024.<br />
         		<a id="pl.90.24"></a><var>90.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.5.8.0"></a><a id="pl.90.25"></a><var>90.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 8. Laws 2008, chapter 366, article 10, section 15, is amended to read:<br />
         		<a id="pl.90.26"></a><var>90.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 15. <b>2008 DISTRIBUTIONS ONLY.</b><br />
         		<a id="pl.90.27"></a><var>90.27</var>&nbsp;&nbsp;&nbsp;&nbsp;For distribution in 2008 only, a special fund is established to receive 11.4 cents per ton <br />
         		<a id="pl.90.28"></a><var>90.28</var>that otherwise would be allocated under Minnesota Statutes, section 
         <statute_ref>298.28, subdivision 6</statute_ref>. <br />
         		<a id="pl.90.29"></a><var>90.29</var>If sufficient funds are not available under Minnesota Statutes, section 
         <statute_ref>298.28, subdivision <br />
            		<a id="pl.90.30"></a><var>90.30</var>6
         </statute_ref>, to make the payments required under this section and under Minnesota Statutes, section <br />
         		
         <statute_ref><a id="pl.90.31"></a><var>90.31</var>298.28, subdivision 6
         </statute_ref>, the remaining amount needed to total 11.4 cents per ton may be <br />
         		<a id="pl.90.32"></a><var>90.32</var>taken from funds available under Minnesota Statutes, section 
         <statute_ref>298.28, subdivision 9</statute_ref>. If <br />
         		<a id="pl.90.33"></a><var>90.33</var>2008 H.F. No. 1812 is enacted and includes a provision that distributes funds that would <br />
         		<a id="pl.90.34"></a><var>90.34</var>otherwise be allocated under Minnesota Statutes, section 
         <statute_ref>298.28, subdivision 6</statute_ref>, in a <br />
         		<a id="pl.90.35"></a><var>90.35</var>manner different from the distribution required in this section, the distribution in this <br />
         		<a id="pl.91.1"></a><var>91.1</var>section supersedes the distribution set in 2008 H.F. No. 1812 notwithstanding Minnesota <br />
         		<a id="pl.91.2"></a><var>91.2</var>Statutes, section 
         <statute_ref>645.26</statute_ref>. The following amounts are allocated to St. Louis County acting <br />
         		<a id="pl.91.3"></a><var>91.3</var>as the fiscal agent for the recipients for the following specified purposes:<br />
         		<a id="pl.91.4"></a><var>91.4</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) two cents per ton must be paid to the Hibbing Economic Development Authority <br />
         		<a id="pl.91.5"></a><var>91.5</var>to retire bonds and for economic development purposes;<br />
         		<a id="pl.91.6"></a><var>91.6</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) one cent per ton must be divided among and paid in equal shares to each of the <br />
         		<a id="pl.91.7"></a><var>91.7</var>board of St. Louis County School District No. 2142, the board of Ely School District No. <br />
         		<a id="pl.91.8"></a><var>91.8</var>696, the board of Mountain Iron-Buhl School District No. 712, and the board of Virginia <br />
         		<a id="pl.91.9"></a><var>91.9</var>School District No. 706 for each to study the potential for and impact of consolidation <br />
         		<a id="pl.91.10"></a><var>91.10</var>and streamlining the operations of their school districts;<br />
         		<a id="pl.91.11"></a><var>91.11</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) 0.25 cent per ton must be paid to the city of Grand Rapids, for industrial park work;<br />
         		<a id="pl.91.12"></a><var>91.12</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) 0.65 cent per ton must be paid to the city of Aitkin, for sewer and water for <br />
         		<a id="pl.91.13"></a><var>91.13</var>housing economic development projects;<br />
         		<a id="pl.91.14"></a><var>91.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) 0.5 cent per ton must be paid to the city of Crosby, for well and water tower <br />
         		<a id="pl.91.15"></a><var>91.15</var>infrastructure;<br />
         		<a id="pl.91.16"></a><var>91.16</var>&nbsp;&nbsp;&nbsp;&nbsp;(6) 0.5 cent per ton must be paid to the city of Two Harbors, for well and water <br />
         		<a id="pl.91.17"></a><var>91.17</var>tower infrastructure;<br />
         		<a id="pl.91.18"></a><var>91.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(7) 1.5 cents per ton must be paid to the city of Silver Bay to pay for health and <br />
         		<a id="pl.91.19"></a><var>91.19</var>safety and maintenance improvements at a former elementary school building that is <br />
         		<a id="pl.91.20"></a><var>91.20</var>currently owned by the city, to be used for economic development purposes;<br />
         		<a id="pl.91.21"></a><var>91.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(8) 1.5 cents per ton must be paid to St. Louis County to extend water and sewer <br />
         		<a id="pl.91.22"></a><var>91.22</var>lines from the city of Chisholm to the St. Louis County fairgrounds;<br />
         		<a id="pl.91.23"></a><var>91.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(9) 1.5 cents per ton must be paid to the White Community Hospital for debt <br />
         		<a id="pl.91.24"></a><var>91.24</var>restructuring;<br />
         		<a id="pl.91.25"></a><var>91.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(10) 0.5 cent per ton must be paid to the city of Keewatin for street, sewer, and <br />
         		<a id="pl.91.26"></a><var>91.26</var>water improvements;<br />
         		<a id="pl.91.27"></a><var>91.27</var>&nbsp;&nbsp;&nbsp;&nbsp;(11) 0.5 cent per ton must be paid to the city of Calumet for street, sewer, and water <br />
         		<a id="pl.91.28"></a><var>91.28</var>improvements; and<br />
         		<a id="pl.91.29"></a><var>91.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(12) one cent per ton must be paid to Breitung township for sewer and water <br />
         		<a id="pl.91.30"></a><var>91.30</var>extensions associated with the development of a state park, provided that if a new state <br />
         		<a id="pl.91.31"></a><var>91.31</var>park is not established in Breitung township by July 1, 2009, the money provided in <br />
         		<a id="pl.91.32"></a><var>91.32</var>this clause must be transferred to the northeast Minnesota economic development fund <br />
         		<a id="pl.91.33"></a><var>91.33</var>established in Minnesota Statutes, section 
         <statute_ref>298.2213</statute_ref>.<br />
         		<a id="pl.91.34"></a><var>91.34</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment. <br />
         		<a id="pl.91.35"></a><var>91.35</var>Upon enactment, the city of Aitkin must release all funds under this section to St. Louis <br />
         		<a id="pl.91.36"></a><var>91.36</var>County acting as fiscal agent by July 1, 2014.<br />
         		<br />
         		<a id="bill.5.9.0"></a><a id="pl.92.1"></a><var>92.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 9. Laws 2013, chapter 143, article 11, section 10, is amended to read:<br />
         		<a id="pl.92.2"></a><var>92.2</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 10. <b>2013 DISTRIBUTION ONLY.</b><br />
         		<a id="pl.92.3"></a><var>92.3</var>For the 2013 distribution, a special fund is established to receive 38.7 cents per ton of <br />
         		<a id="pl.92.4"></a><var>92.4</var>any excess of the balance remaining after distribution of amounts required under Minnesota <br />
         		<a id="pl.92.5"></a><var>92.5</var>Statutes, section 
         <statute_ref>298.28, subdivision 6</statute_ref>. The following amounts are allocated to St. Louis <br />
         		<a id="pl.92.6"></a><var>92.6</var>County acting as the fiscal agent for the recipients for the following specific purposes:<br />
         		<a id="pl.92.7"></a><var>92.7</var>(1) 5.1 cents per ton to the city of Hibbing for improvements to the city's water <br />
         		<a id="pl.92.8"></a><var>92.8</var>supply system;<br />
         		<a id="pl.92.9"></a><var>92.9</var>(2) 4.3 cents per ton to the city of Mountain Iron for the cost of moving utilities <br />
         		<a id="pl.92.10"></a><var>92.10</var>required as a result of actions undertaken by United States Steel Corporation;<br />
         		<a id="pl.92.11"></a><var>92.11</var>(3) 2.5 cents per ton to the city of Biwabik for improvements to the city's water supply <br />
         		<a id="pl.92.12"></a><var>92.12</var>system, payable upon agreement with ArcelorMittal to satisfy water permit conditions;<br />
         		<a id="pl.92.13"></a><var>92.13</var>(4) 2 cents per ton to the city of Tower for the Tower Marina;<br />
         		<a id="pl.92.14"></a><var>92.14</var>(5) 2.4 cents per ton to the city of Grand Rapids for an eco-friendly heat transfer <br />
         		<a id="pl.92.15"></a><var>92.15</var>system to replace aging effluent lines and for parking lot repaving;<br />
         		<a id="pl.92.16"></a><var>92.16</var>(6) 2.4 cents per ton to the city of Two Harbors for wastewater treatment plant <br />
         		<a id="pl.92.17"></a><var>92.17</var>improvements;<br />
         		<a id="pl.92.18"></a><var>92.18</var>(7) 0.9 cents per ton to the city of Ely for the sanitary sewer replacement project;<br />
         		<a id="pl.92.19"></a><var>92.19</var>(8) 0.6 cents per ton to the town of Crystal Bay for debt service of the Claire Nelson <br />
         		<a id="pl.92.20"></a><var>92.20</var>Intermodal Transportation Center;<br />
         		<a id="pl.92.21"></a><var>92.21</var>(9) 0.5 cents per ton to the Greenway Joint Recreation Board for the Coleraine <br />
         		<a id="pl.92.22"></a><var>92.22</var>hockey arena renovations;<br />
         		<a id="pl.92.23"></a><var>92.23</var>(10) 1.2 cents per ton for the West Range Regional Fire Hall and Training Center <br />
         		<a id="pl.92.24"></a><var>92.24</var>to merge the existing fire services of Coleraine, Bovey, Taconite Marble, Calumet, and <br />
         		<a id="pl.92.25"></a><var>92.25</var>Greenway Township;<br />
         		<a id="pl.92.26"></a><var>92.26</var>(11) 2.5 cents per ton to the city of Hibbing for the Memorial Building;<br />
         		<a id="pl.92.27"></a><var>92.27</var>(12) 0.7 cents per ton to the city of Chisholm for public works infrastructure;<br />
         		<a id="pl.92.28"></a><var>92.28</var>(13) 1.8 cents per ton to the Crane Lake Water and Sanitary District for sanitary <br />
         		<a id="pl.92.29"></a><var>92.29</var>sewer extension;<br />
         		<a id="pl.92.30"></a><var>92.30</var>(14) 2.5 cents per ton for the city of Buhl for the roof on the Mesabi Academy;<br />
         		<a id="pl.92.31"></a><var>92.31</var>(15) 1.2 cents per ton to the city of Gilbert for the New Jersey/Ohio Avenue project;<br />
         		<a id="pl.92.32"></a><var>92.32</var>(16) 1.5 2.0 cents per ton to the city of Cook for street improvements, business park <br />
         		<a id="pl.92.33"></a><var>92.33</var>infrastructure, and a maintenance garage;<br />
         		<a id="pl.92.34"></a><var>92.34</var>(17) 0.5 cents per ton to the city of Cook for a water line project;<br />
         		<a id="pl.92.35"></a><var>92.35</var>(18) (17) 1.8 cents per ton to the city of Eveleth to be used for Jones Street <br />
         		<a id="pl.92.36"></a><var>92.36</var>reconstruction and the city auditorium;<br />
         		<a id="pl.93.1"></a><var>93.1</var>(19) (18) 0.5 cents per ton for the city of Keewatin for an electrical substation and <br />
         		<a id="pl.93.2"></a><var>93.2</var>water line replacements;<br />
         		<a id="pl.93.3"></a><var>93.3</var>(20) (19) 3.3 cents per ton for the city of Virginia for Fourth Street North <br />
         		<a id="pl.93.4"></a><var>93.4</var>infrastructure and Franklin Park improvement; and<br />
         		<a id="pl.93.5"></a><var>93.5</var>(21) (20) 0.5 cents per ton to the city of Grand Rapids for an economic development <br />
         		<a id="pl.93.6"></a><var>93.6</var>project.<br />
         		<a id="pl.93.7"></a><var>93.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.5.10.0"></a><a id="pl.93.8"></a><var>93.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 10. <b>REALLOCATION OF BOND PAYMENTS.</b><br />
         		<a id="pl.93.9"></a><var>93.9</var>In each year subsequent to the year in which the following appropriations terminate <br />
         		<a id="pl.93.10"></a><var>93.10</var>under their terms, an amount equal to the amount payable in 2013 based upon 2012 <br />
         		<a id="pl.93.11"></a><var>93.11</var>production of the terminating appropriation is appropriated from the same sources listed <br />
         		<a id="pl.93.12"></a><var>93.12</var>in this section to the Iron Range school consolidation and cooperatively operated school <br />
         		<a id="pl.93.13"></a><var>93.13</var>account under Laws 2014, chapter 150, article 6, section 13:<br />
         		<a id="pl.93.14"></a><var>93.14</var>(1) Laws 1996, chapter 412, article 5, section 21, subdivision 3, appropriation for <br />
         		<a id="pl.93.15"></a><var>93.15</var>bonds of Independent School District No. 166, Cook County;<br />
         		<a id="pl.93.16"></a><var>93.16</var>(2) Laws 1996, chapter 412, article 5, section 20, subdivision 2, appropriation for <br />
         		<a id="pl.93.17"></a><var>93.17</var>bonds of Independent School District No. 696, Ely;<br />
         		<a id="pl.93.18"></a><var>93.18</var>(3) Laws 1996, chapter 412, article 5, section 20, subdivision 2, appropriation for <br />
         		<a id="pl.93.19"></a><var>93.19</var>bonds of Independent School District No. 706, Virginia:<br />
         		<a id="pl.93.20"></a><var>93.20</var>(4) Laws 1996, chapter 412, article 5, section 20, subdivision 2, appropriation for <br />
         		<a id="pl.93.21"></a><var>93.21</var>bonds of Independent School District No. 2154, Eveleth-Gilbert;<br />
         		<a id="pl.93.22"></a><var>93.22</var>(5) Laws 1998, chapter 398, article 4, section 17, subdivision 2, appropriation for <br />
         		<a id="pl.93.23"></a><var>93.23</var>bonds of Independent School District No. 712, Mountain Iron-Buhl;<br />
         		<a id="pl.93.24"></a><var>93.24</var>(6) Laws 2000, chapter 489, article 5, section 24, subdivision 1, appropriation for <br />
         		<a id="pl.93.25"></a><var>93.25</var>bonds of Independent School District No. 695, Chisholm;<br />
         		<a id="pl.93.26"></a><var>93.26</var>(7) Laws 2000, chapter 489, article 5, section 25, subdivision 1, appropriation for <br />
         		<a id="pl.93.27"></a><var>93.27</var>bonds of Independent School District No. 316, Greenway-Coleraine;<br />
         		<a id="pl.93.28"></a><var>93.28</var>(8) Laws 2000, chapter 489, article 5, section 26, subdivision 1, appropriation for <br />
         		<a id="pl.93.29"></a><var>93.29</var>bonds of Independent School District No. 381, Lake Superior; and<br />
         		<a id="pl.93.30"></a><var>93.30</var>(9) Laws 2008, chapter 154, article 8, section 18, appropriation for bonds of <br />
         		<a id="pl.93.31"></a><var>93.31</var>Independent School District No. 2711, Mesabi East.<br />
         		<a id="pl.93.32"></a><var>93.32</var><b>EFFECTIVE DATE.</b>This section is effective beginning with the distribution <br />
         		<a id="pl.93.33"></a><var>93.33</var>in 2015.<br />
         		<br />
         		<a id="bill.5.11.0"></a><a id="pl.94.1"></a><var>94.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 11. <b>2014 DISTRIBUTION ONLY.</b><br />
         		<a id="pl.94.2"></a><var>94.2</var>For the 2014 distribution, a special fund is established to receive 18.84 cents per ton of <br />
         		<a id="pl.94.3"></a><var>94.3</var>any excess of the balance remaining after distribution of amounts required under Minnesota <br />
         		<a id="pl.94.4"></a><var>94.4</var>Statutes, section 298.28, subdivision 6. The following amounts are allocated to St. Louis <br />
         		<a id="pl.94.5"></a><var>94.5</var>County acting as the fiscal agent for the recipients for the following specific purposes:<br />
         		<a id="pl.94.6"></a><var>94.6</var>(1) 1.3 cents per ton to the city of Silver Bay for a water project under Highway 61;<br />
         		<a id="pl.94.7"></a><var>94.7</var>(2) 0.5 cents per ton to the city of Grand Rapids for soil and landscape remediation <br />
         		<a id="pl.94.8"></a><var>94.8</var>at the Reif Center;<br />
         		<a id="pl.94.9"></a><var>94.9</var>(3) 0.65 cents per ton to the city of LaPrairie for sewer, water, and road improvements <br />
         		<a id="pl.94.10"></a><var>94.10</var>to accommodate business expansion in the city;<br />
         		<a id="pl.94.11"></a><var>94.11</var>(4) 0.78 cents per ton to the city of Cohasset for an infrastructure project;<br />
         		<a id="pl.94.12"></a><var>94.12</var>(5) 0.39 cents per ton to Balkan Township for a salt storage building and <br />
         		<a id="pl.94.13"></a><var>94.13</var>energy-efficient cold storage building;<br />
         		<a id="pl.94.14"></a><var>94.14</var>(6) 3.0 cents per ton to the city of McKinley to construct a water line from the city <br />
         		<a id="pl.94.15"></a><var>94.15</var>of Gilbert or the city of Biwabik to the city of McKinley's distribution center in order to <br />
         		<a id="pl.94.16"></a><var>94.16</var>secure a potable water source for the city, provided that the city of McKinley secures <br />
         		<a id="pl.94.17"></a><var>94.17</var>the remainder of the project costs from other sources, and expires three years following <br />
         		<a id="pl.94.18"></a><var>94.18</var>the date of distribution;<br />
         		<a id="pl.94.19"></a><var>94.19</var>(7) 6.5 cents per ton to the Iron Range Resources and Rehabilitation Board for <br />
         		<a id="pl.94.20"></a><var>94.20</var>township block grants to be distributed by the board;<br />
         		<a id="pl.94.21"></a><var>94.21</var>(8) 0.5 cents per ton to the city of Marble for a water main and looping project;<br />
         		<a id="pl.94.22"></a><var>94.22</var>(9) 0.65 cents per ton to the city of Nashwauk for an infrastructure project;<br />
         		<a id="pl.94.23"></a><var>94.23</var>(10) 0.35 cents per ton to the city of Babbitt for demolition of a public building;<br />
         		<a id="pl.94.24"></a><var>94.24</var>(11) 0.65 cents per ton to the city of Hoyt Lakes for a storm water project;<br />
         		<a id="pl.94.25"></a><var>94.25</var>(12) 0.65 cents per ton to the city of Aurora for an infrastructure project;<br />
         		<a id="pl.94.26"></a><var>94.26</var>(13) 0.65 cents per ton to the town of Silver Creek for an infrastructure project;<br />
         		<a id="pl.94.27"></a><var>94.27</var>(14) 0.5 cents per ton to the city of Calumet for an infrastructure project;<br />
         		<a id="pl.94.28"></a><var>94.28</var>(15) 0.5 cents per ton to Nashwauk Township for the Nashwauk town hall;<br />
         		<a id="pl.94.29"></a><var>94.29</var>(16) 0.5 cents per ton to the city of Biwabik for emergency repair of a wastewater <br />
         		<a id="pl.94.30"></a><var>94.30</var>treatment project;<br />
         		<a id="pl.94.31"></a><var>94.31</var>(17) 0.47 cents per ton to the city of Cuyuna for improvements to city properties and <br />
         		<a id="pl.94.32"></a><var>94.32</var>facilities, including construction, electrical, water, sewer, and site preparation; and<br />
         		<a id="pl.94.33"></a><var>94.33</var>(18) 0.3 cents per ton to Morse Township for a recreational trail.<br />
         		<a id="pl.94.34"></a><var>94.34</var><b>EFFECTIVE DATE.</b>This section is effective for the 2014 distribution, and all <br />
         		<a id="pl.94.35"></a><var>94.35</var>payments must be made separately and within ten days of the date of the August 2014 <br />
         		<a id="pl.94.36"></a><var>94.36</var>payment.<br />
         		<br />
         		<a id="bill.6.0.0"></a><div class="xtend_ce"><a id="pl.95.1"></a><var>95.1</var><b>ARTICLE 6</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.95.2"></a><var>95.2</var><b>LOCAL DEVELOPMENT</b><br />
            		
         </div><br />
         		<a id="bill.6.1.0"></a><a id="pl.95.3"></a><var>95.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. <b>[383A.155] HOUSING IMPROVEMENT AREAS.</b><br />
         		<a id="pl.95.4"></a><var>95.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Powers of a housing improvement authority.</b> The Ramsey County <br />
         		<a id="pl.95.5"></a><var>95.5</var>Housing and Redevelopment Authority shall have the powers of a city under sections <br />
         		<a id="pl.95.6"></a><var>95.6</var>428A.11 to 428A.21 to establish housing improvement areas in Ramsey County.<br />
         		<a id="pl.95.7"></a><var>95.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Definitions.</b> (a) For purposes of exercising the powers in sections 428A.11 <br />
         		<a id="pl.95.8"></a><var>95.8</var>to 428A.21, references in those sections to the terms in paragraphs (b) to (e) have the <br />
         		<a id="pl.95.9"></a><var>95.9</var>meanings given them for purposes of this section.<br />
         		<a id="pl.95.10"></a><var>95.10</var>(b) "Mayor" means the chair of the Ramsey County Housing and Redevelopment <br />
         		<a id="pl.95.11"></a><var>95.11</var>Authority.<br />
         		<a id="pl.95.12"></a><var>95.12</var>(c) "Council" or "governing body of the city" means the Ramsey County Housing <br />
         		<a id="pl.95.13"></a><var>95.13</var>and Redevelopment Authority.<br />
         		<a id="pl.95.14"></a><var>95.14</var>(d) "City clerk" means the person designated by the Ramsey County Housing and <br />
         		<a id="pl.95.15"></a><var>95.15</var>Redevelopment Authority to carry out the duties of the city clerk under sections 428A.11 <br />
         		<a id="pl.95.16"></a><var>95.16</var>to 428A.21.<br />
         		<a id="pl.95.17"></a><var>95.17</var>(e) "Enabling ordinance" means a resolution adopted under subdivision 3 by the <br />
         		<a id="pl.95.18"></a><var>95.18</var>Ramsey County Housing and Redevelopment Authority.<br />
         		<a id="pl.95.19"></a><var>95.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Establishment of housing improvement areas.</b> The Ramsey County <br />
         		<a id="pl.95.20"></a><var>95.20</var>Housing and Redevelopment Authority may adopt a resolution establishing one or <br />
         		<a id="pl.95.21"></a><var>95.21</var>more housing improvement areas within the county under this section. The Ramsey <br />
         		<a id="pl.95.22"></a><var>95.22</var>County Housing and Redevelopment Authority shall send a copy of each petition for the <br />
         		<a id="pl.95.23"></a><var>95.23</var>establishment of a housing improvement area to the city in which the proposed housing <br />
         		<a id="pl.95.24"></a><var>95.24</var>improvement area is located. The public hearings under sections 428A.13 and 428A.14 <br />
         		<a id="pl.95.25"></a><var>95.25</var>may be held at the times and places determined by the Ramsey County Housing and <br />
         		<a id="pl.95.26"></a><var>95.26</var>Redevelopment Authority, except that they must be held at least 30 days after the date the <br />
         		<a id="pl.95.27"></a><var>95.27</var>applicable petition was sent to the city. If the city council adopts a resolution opposing <br />
         		<a id="pl.95.28"></a><var>95.28</var>the establishment within 30 days of the date the copy of the petition was sent to the city <br />
         		<a id="pl.95.29"></a><var>95.29</var>under this subdivision, the Ramsey County Housing and Redevelopment Authority may <br />
         		<a id="pl.95.30"></a><var>95.30</var>not establish the proposed housing improvement area.<br />
         		<a id="pl.95.31"></a><var>95.31</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Applicability.</b> Except as otherwise provided in this section, sections <br />
         		<a id="pl.95.32"></a><var>95.32</var>428A.11 to 428A.21 apply to the establishment of a housing improvement area by the <br />
         		<a id="pl.95.33"></a><var>95.33</var>Ramsey County Housing and Redevelopment Authority.<br />
         		<a id="pl.95.34"></a><var>95.34</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.6.2.0"></a><a id="pl.96.1"></a><var>96.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. Minnesota Statutes 2012, section 383D.41, is amended by adding a subdivision <br />
         		<a id="pl.96.2"></a><var>96.2</var>to read:<br />
         		<a id="pl.96.3"></a><var>96.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 11. <b>Tax credit allocation threshold criteria.</b> (a) In addition to the projects <br />
         		<a id="pl.96.4"></a><var>96.4</var>described in section 462A.222, subdivision 3, paragraph (d), the Dakota County <br />
         		<a id="pl.96.5"></a><var>96.5</var>Community Development Agency may allocate tax credits in the first round for up to three <br />
         		<a id="pl.96.6"></a><var>96.6</var>projects of the following type: new construction or substantial rehabilitation multifamily <br />
         		<a id="pl.96.7"></a><var>96.7</var>housing projects that are not restricted to persons who are 55 years of age or older and that <br />
         		<a id="pl.96.8"></a><var>96.8</var>are located within one of the following areas at the time a reservation for tax credits is made:<br />
         		<a id="pl.96.9"></a><var>96.9</var>(1) an area within one-half mile of a completed or planned light rail transit way, bus <br />
         		<a id="pl.96.10"></a><var>96.10</var>rapid transit way, or commuter rail station;<br />
         		<a id="pl.96.11"></a><var>96.11</var>(2) an area within one-fourth mile from any stop along a high-frequency local bus line;<br />
         		<a id="pl.96.12"></a><var>96.12</var>(3) an area within one-half mile from a bus stop or station on a high-frequency <br />
         		<a id="pl.96.13"></a><var>96.13</var>express route;<br />
         		<a id="pl.96.14"></a><var>96.14</var>(4) an area within one-half mile from a park and ride lot; or<br />
         		<a id="pl.96.15"></a><var>96.15</var>(5) an area within one-fourth mile of a high-service public transportation fixed <br />
         		<a id="pl.96.16"></a><var>96.16</var>route stop.<br />
         		<a id="pl.96.17"></a><var>96.17</var>(b) For purposes of this section, the following terms have the meaning given them:<br />
         		<a id="pl.96.18"></a><var>96.18</var>(1) "high-frequency local bus line" means a local bus route providing service at <br />
         		<a id="pl.96.19"></a><var>96.19</var>least every 15 minutes and running between 6:00 a.m. and 7:00 p.m. on weekdays and <br />
         		<a id="pl.96.20"></a><var>96.20</var>between 9:00 a.m. and 6:00 p.m. on Saturdays;<br />
         		<a id="pl.96.21"></a><var>96.21</var>(2) "high-frequency express route" means an express route with bus service <br />
         		<a id="pl.96.22"></a><var>96.22</var>providing six or more trips during at least one of the peak morning hours between 6:00 <br />
         		<a id="pl.96.23"></a><var>96.23</var>a.m. and 9:00 a.m. and every ten minutes during the peak morning hour; and<br />
         		<a id="pl.96.24"></a><var>96.24</var>(3) "high-service public transportation fixed route stop" means a stop serviced <br />
         		<a id="pl.96.25"></a><var>96.25</var>between 6:00 a.m. and 7:00 p.m. on weekdays and 9:00 a.m. and 6:00 p.m. on Saturdays <br />
         		<a id="pl.96.26"></a><var>96.26</var>and with service approximately every 30 minutes during that time.<br />
         		<a id="pl.96.27"></a><var>96.27</var><b>EFFECTIVE DATE.</b>This section is effective beginning with the 2015 allocation of <br />
         		<a id="pl.96.28"></a><var>96.28</var>tax credit.<br />
         		<br />
         		<a id="bill.6.3.0"></a><a id="pl.96.29"></a><var>96.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. Minnesota Statutes 2012, section 469.1763, subdivision 3, is amended to read:<br />
         		<a id="pl.96.30"></a><var>96.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Five-year rule.</b> (a) Revenues derived from tax increments are considered <br />
         		<a id="pl.96.31"></a><var>96.31</var>to have been expended on an activity within the district under subdivision 2 only if one <br />
         		<a id="pl.96.32"></a><var>96.32</var>of the following occurs:<br />
         		<a id="pl.96.33"></a><var>96.33</var>(1) before or within five years after certification of the district, the revenues are <br />
         		<a id="pl.96.34"></a><var>96.34</var>actually paid to a third party with respect to the activity;<br />
         		<a id="pl.97.1"></a><var>97.1</var>(2) bonds, the proceeds of which must be used to finance the activity, are issued and <br />
         		<a id="pl.97.2"></a><var>97.2</var>sold to a third party before or within five years after certification, the revenues are spent <br />
         		<a id="pl.97.3"></a><var>97.3</var>to repay the bonds, and the proceeds of the bonds either are, on the date of issuance, <br />
         		<a id="pl.97.4"></a><var>97.4</var>reasonably expected to be spent before the end of the later of (i) the five-year period, or <br />
         		<a id="pl.97.5"></a><var>97.5</var>(ii) a reasonable temporary period within the meaning of the use of that term under section <br />
         		<a id="pl.97.6"></a><var>97.6</var>148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required reserve <br />
         		<a id="pl.97.7"></a><var>97.7</var>or replacement fund;<br />
         		<a id="pl.97.8"></a><var>97.8</var>(3) binding contracts with a third party are entered into for performance of the <br />
         		<a id="pl.97.9"></a><var>97.9</var>activity before or within five years after certification of the district and the revenues are <br />
         		<a id="pl.97.10"></a><var>97.10</var>spent under the contractual obligation;<br />
         		<a id="pl.97.11"></a><var>97.11</var>(4) costs with respect to the activity are paid before or within five years after <br />
         		<a id="pl.97.12"></a><var>97.12</var>certification of the district and the revenues are spent to reimburse a party for payment <br />
         		<a id="pl.97.13"></a><var>97.13</var>of the costs, including interest on unreimbursed costs; or<br />
         		<a id="pl.97.14"></a><var>97.14</var>(5) expenditures are made for housing purposes as permitted by subdivision 2, <br />
         		<a id="pl.97.15"></a><var>97.15</var>paragraphs (b) and (d), or for public infrastructure purposes within a zone as permitted <br />
         		<a id="pl.97.16"></a><var>97.16</var>by subdivision 2, paragraph (e).<br />
         		<a id="pl.97.17"></a><var>97.17</var>(b) For purposes of this subdivision, bonds include subsequent refunding bonds if <br />
         		<a id="pl.97.18"></a><var>97.18</var>the original refunded bonds meet the requirements of paragraph (a), clause (2).<br />
         		<a id="pl.97.19"></a><var>97.19</var>(c) For a redevelopment district or a renewal and renovation district certified after <br />
         		<a id="pl.97.20"></a><var>97.20</var>June 30, 2003, and before April 20, 2009, the five-year periods described in paragraph (a) <br />
         		<a id="pl.97.21"></a><var>97.21</var>are extended to ten years after certification of the district. For a redevelopment district <br />
         		<a id="pl.97.22"></a><var>97.22</var>certified after April 20, 2009, and before June 30, 2012, the five-year periods described in <br />
         		<a id="pl.97.23"></a><var>97.23</var>paragraph (a) are extended to eight years after certification of the district. This extension is <br />
         		<a id="pl.97.24"></a><var>97.24</var>provided primarily to accommodate delays in development activities due to unanticipated <br />
         		<a id="pl.97.25"></a><var>97.25</var>economic circumstances.<br />
         		<a id="pl.97.26"></a><var>97.26</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br />
         		<a id="pl.97.27"></a><var>97.27</var>certification was made after April 20, 2009.<br />
         		<br />
         		<a id="bill.6.4.0"></a><a id="pl.97.28"></a><var>97.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 4. Minnesota Statutes 2012, section 469.177, subdivision 3, is amended to read:<br />
         		<a id="pl.97.29"></a><var>97.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Tax increment, relationship to chapters 276A and 473F.</b> (a) Unless the <br />
         		<a id="pl.97.30"></a><var>97.30</var>governing body elects pursuant to paragraph (b) the following method of computation <br />
         		<a id="pl.97.31"></a><var>97.31</var>shall apply to a district other than an economic development district for which the request <br />
         		<a id="pl.97.32"></a><var>97.32</var>for certification was made after June 30, 1997:<br />
         		<a id="pl.97.33"></a><var>97.33</var>(1) The original net tax capacity and the current net tax capacity shall be determined <br />
         		<a id="pl.97.34"></a><var>97.34</var>before the application of the fiscal disparity provisions of chapter 276A or 473F. Where <br />
         		<a id="pl.97.35"></a><var>97.35</var>the original net tax capacity is equal to or greater than the current net tax capacity, there is <br />
         		<a id="pl.98.1"></a><var>98.1</var>no captured net tax capacity and no tax increment determination. Where the original net <br />
         		<a id="pl.98.2"></a><var>98.2</var>tax capacity is less than the current net tax capacity, the difference between the original <br />
         		<a id="pl.98.3"></a><var>98.3</var>net tax capacity and the current net tax capacity is the captured net tax capacity. This <br />
         		<a id="pl.98.4"></a><var>98.4</var>amount less any portion thereof which the authority has designated, in its tax increment <br />
         		<a id="pl.98.5"></a><var>98.5</var>financing plan, to share with the local taxing districts is the retained captured net tax <br />
         		<a id="pl.98.6"></a><var>98.6</var>capacity of the authority.<br />
         		<a id="pl.98.7"></a><var>98.7</var>(2) The county auditor shall exclude the retained captured net tax capacity of the <br />
         		<a id="pl.98.8"></a><var>98.8</var>authority from the net tax capacity of the local taxing districts in determining local taxing <br />
         		<a id="pl.98.9"></a><var>98.9</var>district tax rates. The local tax rates so determined are to be extended against the retained <br />
         		<a id="pl.98.10"></a><var>98.10</var>captured net tax capacity of the authority as well as the net tax capacity of the local taxing <br />
         		<a id="pl.98.11"></a><var>98.11</var>districts. The tax generated by the extension of the lesser of (A) the local taxing district <br />
         		<a id="pl.98.12"></a><var>98.12</var>tax rates or (B) the original local tax rate to the retained captured net tax capacity of the <br />
         		<a id="pl.98.13"></a><var>98.13</var>authority is the tax increment of the authority.<br />
         		<a id="pl.98.14"></a><var>98.14</var>(b) The following method of computation applies to any economic development <br />
         		<a id="pl.98.15"></a><var>98.15</var>district for which the request for certification was made after June 30, 1997, and to any<br />
         		<a id="pl.98.16"></a><var>98.16</var> other district for which the governing body, by resolution approving the tax increment <br />
         		<a id="pl.98.17"></a><var>98.17</var>financing plan pursuant to section 
         <statute_ref>469.175, subdivision 3</statute_ref>, elects:<br />
         		<a id="pl.98.18"></a><var>98.18</var>(1) The original net tax capacity shall be determined before the application of the <br />
         		<a id="pl.98.19"></a><var>98.19</var>fiscal disparity provisions of chapter 276A or 473F. The current net tax capacity shall <br />
         		<a id="pl.98.20"></a><var>98.20</var>exclude any fiscal disparity commercial-industrial net tax capacity increase between <br />
         		<a id="pl.98.21"></a><var>98.21</var>the original year and the current year multiplied by the fiscal disparity ratio determined <br />
         		<a id="pl.98.22"></a><var>98.22</var>pursuant to section 
         <statute_ref>276A.06, subdivision 7</statute_ref>, or 
         <statute_ref>473F.08, subdivision 6</statute_ref>. Where the original <br />
         		<a id="pl.98.23"></a><var>98.23</var>net tax capacity is equal to or greater than the current net tax capacity, there is no captured <br />
         		<a id="pl.98.24"></a><var>98.24</var>net tax capacity and no tax increment determination. Where the original net tax capacity is <br />
         		<a id="pl.98.25"></a><var>98.25</var>less than the current net tax capacity, the difference between the original net tax capacity <br />
         		<a id="pl.98.26"></a><var>98.26</var>and the current net tax capacity is the captured net tax capacity. This amount less any <br />
         		<a id="pl.98.27"></a><var>98.27</var>portion thereof which the authority has designated, in its tax increment financing plan, to <br />
         		<a id="pl.98.28"></a><var>98.28</var>share with the local taxing districts is the retained captured net tax capacity of the authority.<br />
         		<a id="pl.98.29"></a><var>98.29</var>(2) The county auditor shall exclude the retained captured net tax capacity of the <br />
         		<a id="pl.98.30"></a><var>98.30</var>authority from the net tax capacity of the local taxing districts in determining local taxing <br />
         		<a id="pl.98.31"></a><var>98.31</var>district tax rates. The local tax rates so determined are to be extended against the retained <br />
         		<a id="pl.98.32"></a><var>98.32</var>captured net tax capacity of the authority as well as the net tax capacity of the local taxing <br />
         		<a id="pl.98.33"></a><var>98.33</var>districts. The tax generated by the extension of the lesser of (A) the local taxing district <br />
         		<a id="pl.98.34"></a><var>98.34</var>tax rates or (B) the original local tax rate to the retained captured net tax capacity of the <br />
         		<a id="pl.98.35"></a><var>98.35</var>authority is the tax increment of the authority.<br />
         		<a id="pl.99.1"></a><var>99.1</var>(3) An election by the governing body pursuant to paragraph (b) shall be submitted <br />
         		<a id="pl.99.2"></a><var>99.2</var>to the county auditor by the authority at the time of the request for certification pursuant to <br />
         		<a id="pl.99.3"></a><var>99.3</var>subdivision 1.<br />
         		<a id="pl.99.4"></a><var>99.4</var>(c) The method of computation of tax increment applied to a district pursuant to <br />
         		<a id="pl.99.5"></a><var>99.5</var>paragraph (a) or (b) shall remain the same for the duration of the district, except that <br />
         		<a id="pl.99.6"></a><var>99.6</var>the governing body may elect to change its election from the method of computation in <br />
         		<a id="pl.99.7"></a><var>99.7</var>paragraph (a) to the method in paragraph (b).<br />
         		<a id="pl.99.8"></a><var>99.8</var><b>EFFECTIVE DATE.</b>This section is effective for districts for which the request for <br />
         		<a id="pl.99.9"></a><var>99.9</var>certification is made after June 30, 2014.<br />
         		<br />
         		<a id="bill.6.5.0"></a><a id="pl.99.10"></a><var>99.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 5. Laws 2013, chapter 143, article 9, section 23, is amended to read:<br />
         		<a id="pl.99.11"></a><var>99.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 23. <b>CITY OF BLOOMINGTON; OLD CEDAR AVENUE BRIDGE.</b><br />
         		<a id="pl.99.12"></a><var>99.12</var>&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding any law to the contrary, the city of Bloomington shall transfer <br />
         		<a id="pl.99.13"></a><var>99.13</var>from the tax increment financing accounts for its Tax Increment Financing District No. <br />
         		<a id="pl.99.14"></a><var>99.14</var>1-C and Tax Increment Financing District No. 1-G an amount equal to the tax increment <br />
         		<a id="pl.99.15"></a><var>99.15</var>for each district that is computed under the provisions of Minnesota Statutes, section <br />
         		
         <statute_ref><a id="pl.99.16"></a><var>99.16</var>473F.08, subdivision 3c
         </statute_ref>, for taxes payable in 2014 to an account or fund established for <br />
         		<a id="pl.99.17"></a><var>99.17</var>the repair, restoration, or replacement of the Old Cedar Avenue bridge for use by bicycle <br />
         		<a id="pl.99.18"></a><var>99.18</var>commuters and recreational users. The city is authorized to and must use the transferred <br />
         		<a id="pl.99.19"></a><var>99.19</var>funds to complete the repair, renovation, or replacement of the bridge.<br />
         		<a id="pl.99.20"></a><var>99.20</var>(b) Upon completion of the repair, restoration, or replacement of the bridge, the city <br />
         		<a id="pl.99.21"></a><var>99.21</var>may use any remaining funds in the account for expenditures as provided in this paragraph <br />
         		<a id="pl.99.22"></a><var>99.22</var>and that use is deemed to be a permitted use of the increments, regardless of whether it is <br />
         		<a id="pl.99.23"></a><var>99.23</var>for improvements within the project area. If the city elects to use the authority under this <br />
         		<a id="pl.99.24"></a><var>99.24</var>paragraph, the remaining funds must be spent for the following items and improvements <br />
         		<a id="pl.99.25"></a><var>99.25</var>in the following order of priority:<br />
         		<a id="pl.99.26"></a><var>99.26</var>(1) signage for the Old Cedar Avenue bridge that is consistent with the number, <br />
         		<a id="pl.99.27"></a><var>99.27</var>design, size, and placement of the city's signage for the Normandale Lake District;<br />
         		<a id="pl.99.28"></a><var>99.28</var>(2) kiosks and other wayfinding aids for users of the Old Cedar Avenue bridge and <br />
         		<a id="pl.99.29"></a><var>99.29</var>immediately adjacent parkland areas; and<br />
         		<a id="pl.99.30"></a><var>99.30</var>(3) bicycle and pedestrian trail improvements that provide access to the Old Cedar <br />
         		<a id="pl.99.31"></a><var>99.31</var>Avenue bridge.<br />
         		<a id="pl.99.32"></a><var>99.32</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) (c) No signs, plaques, or markers acknowledging or crediting donations for, <br />
         		<a id="pl.99.33"></a><var>99.33</var>sponsorships of, or naming rights may be posted on or in the vicinity of the Old Cedar <br />
         		<a id="pl.99.34"></a><var>99.34</var>Avenue bridge.<br />
         		<a id="pl.100.1"></a><var>100.1</var><b>EFFECTIVE DATE.</b>This section is effective without local approval under <br />
         		<a id="pl.100.2"></a><var>100.2</var>Minnesota Statutes, section 645.023, subdivision 1, paragraph (a).<br />
         		<br />
         		<a id="bill.6.6.0"></a><a id="pl.100.3"></a><var>100.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 6. <b>CITY OF BAXTER; TAX INCREMENT FINANCING DISTRICT; </b><br />
         		<a id="pl.100.4"></a><var>100.4</var><b>PROJECT REQUIREMENT.</b><br />
         		<a id="pl.100.5"></a><var>100.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Addition of parcels to district.</b> Notwithstanding Minnesota <br />
         		<a id="pl.100.6"></a><var>100.6</var>Statutes, sections 469.174, subdivision 12; 469.176, subdivision 4c; or any other law to <br />
         		<a id="pl.100.7"></a><var>100.7</var>the contrary, the governing body of the city of Baxter may elect to expand the boundaries <br />
         		<a id="pl.100.8"></a><var>100.8</var>of the Isle Drive Tax Increment Financing District to include the real property described as <br />
         		<a id="pl.100.9"></a><var>100.9</var>tax parcel number 034120010010009 in the city of Baxter, Crow Wing County, Minnesota.<br />
         		<a id="pl.100.10"></a><var>100.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Original tax capacity of district.</b> Upon addition of the property described <br />
         		<a id="pl.100.11"></a><var>100.11</var>in subdivision 1 to the Isle Drive Tax Increment Financing District, the Crow Wing <br />
         		<a id="pl.100.12"></a><var>100.12</var>County auditor shall increase the original tax capacity of Isle Drive Tax Increment <br />
         		<a id="pl.100.13"></a><var>100.13</var>Financing District by the amount required by Minnesota Statutes, section 469.177, except <br />
         		<a id="pl.100.14"></a><var>100.14</var>as provided in subdivision 3.<br />
         		<a id="pl.100.15"></a><var>100.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Prior planned improvements.</b> Minnesota Statutes, section 469.177, <br />
         		<a id="pl.100.16"></a><var>100.16</var>subdivision 4, does not apply to the property described in subdivision 1 added to the Isle <br />
         		<a id="pl.100.17"></a><var>100.17</var>Drive Tax Increment Financing District.<br />
         		<a id="pl.100.18"></a><var>100.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Use of increments.</b> Tax increments and other revenues derived from any <br />
         		<a id="pl.100.19"></a><var>100.19</var>portion of the Isle Drive Tax Increment Financing District, as expanded under this section, <br />
         		<a id="pl.100.20"></a><var>100.20</var>may be used to reimburse or otherwise pay for allowable expenditures under the plan <br />
         		<a id="pl.100.21"></a><var>100.21</var>budget for the Isle Drive Tax Increment Financing District, as amended in accordance <br />
         		<a id="pl.100.22"></a><var>100.22</var>with Minnesota Statutes, section 469.175, subdivision 4.<br />
         		<a id="pl.100.23"></a><var>100.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Approval and effect of modification.</b> If the governing body of the <br />
         		<a id="pl.100.24"></a><var>100.24</var>city elects to exercise the authority provided in subdivision 1 to modify the district, the <br />
         		<a id="pl.100.25"></a><var>100.25</var>following conditions apply:<br />
         		<a id="pl.100.26"></a><var>100.26</var>(1) the city must comply with Minnesota Statutes, section 469.175, subdivision 4; and<br />
         		<a id="pl.100.27"></a><var>100.27</var>(2) beginning with the subsequent calendar year, except as otherwise provided <br />
         		<a id="pl.100.28"></a><var>100.28</var>in this section, the district is subject to the provisions of Minnesota Statutes, sections <br />
         		<a id="pl.100.29"></a><var>100.29</var>469.174 to 469.1794, as if the request for certification of the entire district was made on <br />
         		<a id="pl.100.30"></a><var>100.30</var>December 30, 2011, the date the original request for certification for the Isle Drive Tax <br />
         		<a id="pl.100.31"></a><var>100.31</var>Increment Financing District was made.<br />
         		<a id="pl.101.1"></a><var>101.1</var><b>EFFECTIVE DATE.</b>This section is effective upon approval by the governing body <br />
         		<a id="pl.101.2"></a><var>101.2</var>of the city of Baxter and upon compliance by the city with Minnesota Statutes, section <br />
         		<a id="pl.101.3"></a><var>101.3</var>645.021, subdivisions 2 and 3.<br />
         		<br />
         		<a id="bill.6.7.0"></a><a id="pl.101.4"></a><var>101.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 7. <b>CITY OF EAGAN; TAX INCREMENT FINANCING.</b><br />
         		<a id="pl.101.5"></a><var>101.5</var>(a) Effective for taxes payable in 2015, the city of Eagan may elect to compute tax <br />
         		<a id="pl.101.6"></a><var>101.6</var>increment for the Cedar Grove Tax Increment Financing District using the current local tax <br />
         		<a id="pl.101.7"></a><var>101.7</var>rate, notwithstanding the provisions of Minnesota Statutes, section 469.177, subdivision 1a.<br />
         		<a id="pl.101.8"></a><var>101.8</var>(b) The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that <br />
         		<a id="pl.101.9"></a><var>101.9</var>activities must be undertaken within a five-year period from the date of certification <br />
         		<a id="pl.101.10"></a><var>101.10</var>of a tax increment financing district, is considered to be met for the Cedar Grove Tax <br />
         		<a id="pl.101.11"></a><var>101.11</var>Increment Financing District in the city of Eagan if the activities are undertaken within 13 <br />
         		<a id="pl.101.12"></a><var>101.12</var>years from the date of certification of the district.<br />
         		<a id="pl.101.13"></a><var>101.13</var>(c) Notwithstanding the provisions of Minnesota Statutes, section 469.176, <br />
         		<a id="pl.101.14"></a><var>101.14</var>subdivision 1b, or any other law to the contrary, the city of Eagan may collect tax increment <br />
         		<a id="pl.101.15"></a><var>101.15</var>from the Cedar Grove Tax Increment Financing District through December 31, 2032.<br />
         		<a id="pl.101.16"></a><var>101.16</var><b>EFFECTIVE DATE.</b>Paragraphs (a) and (b) are effective upon compliance by the <br />
         		<a id="pl.101.17"></a><var>101.17</var>governing body of the city of Eagan with the requirements of Minnesota Statutes, section <br />
         		<a id="pl.101.18"></a><var>101.18</var>645.021, subdivision 3. Paragraph (c) is effective upon compliance by the governing <br />
         		<a id="pl.101.19"></a><var>101.19</var>bodies of the city of Eagan, Dakota County, and Independent School District No. 191 with <br />
         		<a id="pl.101.20"></a><var>101.20</var>the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021, <br />
         		<a id="pl.101.21"></a><var>101.21</var>subdivision 3.<br />
         		<br />
         		<a id="bill.6.8.0"></a><a id="pl.101.22"></a><var>101.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 8. <b>CITY OF EDINA; TAX INCREMENT FINANCING.</b><br />
         		<a id="pl.101.23"></a><var>101.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Authority to create districts.</b> (a) The governing body of the city of <br />
         		<a id="pl.101.24"></a><var>101.24</var>Edina or its development authority may establish one or more tax increment financing <br />
         		<a id="pl.101.25"></a><var>101.25</var>housing districts in the Southeast Edina Redevelopment Project Area, as the boundaries <br />
         		<a id="pl.101.26"></a><var>101.26</var>exist on March 31, 2014.<br />
         		<a id="pl.101.27"></a><var>101.27</var>(b) The authority to request certification of districts under this section expires on <br />
         		<a id="pl.101.28"></a><var>101.28</var>June 30, 2017.<br />
         		<a id="pl.101.29"></a><var>101.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Rules governing districts.</b> (a) Housing districts established under this <br />
         		<a id="pl.101.30"></a><var>101.30</var>section are subject to the provisions of Minnesota Statutes, sections 469.174 to 469.1794, <br />
         		<a id="pl.101.31"></a><var>101.31</var>except as otherwise provided in this subdivision.<br />
         		<a id="pl.102.1"></a><var>102.1</var>(b) Notwithstanding the provisions of Minnesota Statutes, section 469.176, <br />
         		<a id="pl.102.2"></a><var>102.2</var>subdivision 1b, no increment must be paid to the authority after 20 years after receipt by <br />
         		<a id="pl.102.3"></a><var>102.3</var>the authority of the first increment from a district established under this section.<br />
         		<a id="pl.102.4"></a><var>102.4</var>(c) Notwithstanding the provisions of Minnesota Statutes, section 469.1761, <br />
         		<a id="pl.102.5"></a><var>102.5</var>subdivision 3, for a residential rental project, the city may elect to substitute "20 percent" <br />
         		<a id="pl.102.6"></a><var>102.6</var>for "40 percent" in the 40-60 test under section 142(d)(1)(B) of the Internal Revenue Code <br />
         		<a id="pl.102.7"></a><var>102.7</var>in determining the applicable income limits.<br />
         		<a id="pl.102.8"></a><var>102.8</var>(d) The provisions of Minnesota Statutes, section 469.1761, subdivision 3, apply for <br />
         		<a id="pl.102.9"></a><var>102.9</var>a 25-year period beginning on the date of certification of the district.<br />
         		<a id="pl.102.10"></a><var>102.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Pooling authority.</b> The city may elect to treat expenditures of increment <br />
         		<a id="pl.102.11"></a><var>102.11</var>from the Southdale 2 district for a housing project of a district established under this <br />
         		<a id="pl.102.12"></a><var>102.12</var>section as expenditures qualifying under Minnesota Statutes, section 469.1763, subdivision <br />
         		<a id="pl.102.13"></a><var>102.13</var>2, paragraph (d): (1) without regard to whether the housing meets the requirement of a <br />
         		<a id="pl.102.14"></a><var>102.14</var>qualified building under section 42 of the Internal Revenue Code; and (2) may increase <br />
         		<a id="pl.102.15"></a><var>102.15</var>by an additional 25 percentage points the permitted amount of expenditures for activities <br />
         		<a id="pl.102.16"></a><var>102.16</var>located outside the geographic area of the district permitted under that section.<br />
         		<a id="pl.102.17"></a><var>102.17</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the governing <br />
         		<a id="pl.102.18"></a><var>102.18</var>body of the city of Edina with the requirements of Minnesota Statutes, section 645.021, <br />
         		<a id="pl.102.19"></a><var>102.19</var>subdivisions 2 and 3.<br />
         		<br />
         		<a id="bill.6.9.0"></a><a id="pl.102.20"></a><var>102.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 9. <b>CITY OF MAPLE GROVE; TAX INCREMENT FINANCING DISTRICT.</b><br />
         		<a id="pl.102.21"></a><var>102.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Definitions.</b> (a) For the purposes of this section, the following terms <br />
         		<a id="pl.102.22"></a><var>102.22</var>have the meanings given them.<br />
         		<a id="pl.102.23"></a><var>102.23</var>(b) "City" means the city of Maple Grove.<br />
         		<a id="pl.102.24"></a><var>102.24</var>(c) "Project area" means the area in the city commencing at a point 130 feet East and <br />
         		<a id="pl.102.25"></a><var>102.25</var>120 feet North of the southwest corner of the Southeast Quarter of Section 23, Township <br />
         		<a id="pl.102.26"></a><var>102.26</var>119, Range 22, Hennepin County, said point being on the easterly right-of-way line of <br />
         		<a id="pl.102.27"></a><var>102.27</var>Hemlock Lane; thence northerly along said easterly right-of-way line of Hemlock Lane <br />
         		<a id="pl.102.28"></a><var>102.28</var>to a point on the west line of the east one-half of the Southeast Quarter of section 23, <br />
         		<a id="pl.102.29"></a><var>102.29</var>thence south along said west line a distance of 1,200 feet; thence easterly to the east <br />
         		<a id="pl.102.30"></a><var>102.30</var>line of Section 23, 1,030 feet North from the southeast corner thereof; thence South 74 <br />
         		<a id="pl.102.31"></a><var>102.31</var>degrees East 1,285 feet; thence East a distance of 1,000 feet; thence North 59 degrees <br />
         		<a id="pl.102.32"></a><var>102.32</var>West a distance of 650 feet; thence northerly to a point on the northerly right-of-way line <br />
         		<a id="pl.102.33"></a><var>102.33</var>of 81st Avenue North, 650 feet westerly measured at right angles, from the east line of <br />
         		<a id="pl.102.34"></a><var>102.34</var>the Northwest Quarter of Section 24; thence North 13 degrees West a distance of 795 <br />
         		<a id="pl.103.1"></a><var>103.1</var>feet; thence West to the west line of the Southeast Quarter of the Northwest Quarter of <br />
         		<a id="pl.103.2"></a><var>103.2</var>Section 24; thence North 55 degrees West to the south line of the Northwest Quarter of the <br />
         		<a id="pl.103.3"></a><var>103.3</var>Northwest Quarter of Section 24; thence West along said south line to the east right-of-way <br />
         		<a id="pl.103.4"></a><var>103.4</var>line of Zachary Lane; thence North along the east right-of-way line of Zachary Lane to <br />
         		<a id="pl.103.5"></a><var>103.5</var>the southwest corner of Lot 1, Block 1, Metropolitan Industrial Park 5th Addition; thence <br />
         		<a id="pl.103.6"></a><var>103.6</var>East along the south line of said Lot 1 to the northeast corner of Outlot A, Metropolitan <br />
         		<a id="pl.103.7"></a><var>103.7</var>Industrial Park 5th Addition; thence South along the east line of said Outlot A and its <br />
         		<a id="pl.103.8"></a><var>103.8</var>southerly extension to the south right-of-way line of County State-Aid Highway (CSAH) <br />
         		<a id="pl.103.9"></a><var>103.9</var>109; thence easterly along the south right-of-way line of CSAH 109 to the east line of the <br />
         		<a id="pl.103.10"></a><var>103.10</var>Northwest Quarter of the Northeast Quarter of Section 24; thence South along said east <br />
         		<a id="pl.103.11"></a><var>103.11</var>line to the north line of the South Half of the Northeast Quarter of Section 24; thence East <br />
         		<a id="pl.103.12"></a><var>103.12</var>along said north line to the westerly right-of-way line of Jefferson Highway North; thence <br />
         		<a id="pl.103.13"></a><var>103.13</var>southerly along the westerly right-of-way line of Jefferson Highway to the centerline of <br />
         		<a id="pl.103.14"></a><var>103.14</var>CSAH 130; thence continuing South along the west right-of-way line of Pilgrim Lane <br />
         		<a id="pl.103.15"></a><var>103.15</var>North to the westerly extension of the north line of Outlot A, Park North Fourth Addition; <br />
         		<a id="pl.103.16"></a><var>103.16</var>thence easterly along the north line of Outlot A, Park North Fourth Addition to the <br />
         		<a id="pl.103.17"></a><var>103.17</var>northeast corner of said Outlot A; thence southerly along the east line of said Outlot A <br />
         		<a id="pl.103.18"></a><var>103.18</var>to the southeast corner of said Outlot A; thence easterly along the south line of Lot 1, <br />
         		<a id="pl.103.19"></a><var>103.19</var>Block 1, Park North Fourth Addition to the westerly right-of-way line of State Highway <br />
         		<a id="pl.103.20"></a><var>103.20</var>169; thence southerly, southwesterly, westerly, and northwesterly along the westerly <br />
         		<a id="pl.103.21"></a><var>103.21</var>right-of-way line of State Highway 169 and the northerly right-of-way line of Interstate <br />
         		<a id="pl.103.22"></a><var>103.22</var>694 to its intersection with the southerly extension of the easterly right-of-way line of <br />
         		<a id="pl.103.23"></a><var>103.23</var>Zachary Lane North; thence northerly along the easterly right-of-way line of Zachary <br />
         		<a id="pl.103.24"></a><var>103.24</var>Lane North and its northerly extension to the north right-of-way line of CSAH 130; thence <br />
         		<a id="pl.103.25"></a><var>103.25</var>westerly, southerly, northerly, southwesterly, and northwesterly to the point of beginning <br />
         		<a id="pl.103.26"></a><var>103.26</var>and there terminating, provided that the project area includes the rights-of-way for all <br />
         		<a id="pl.103.27"></a><var>103.27</var>present and future highway interchanges abutting the area described in this paragraph.<br />
         		<a id="pl.103.28"></a><var>103.28</var>(d) "Soil deficiency district" means a type of tax increment financing district <br />
         		<a id="pl.103.29"></a><var>103.29</var>consisting of a portion of the project area in which the city finds by resolution that the <br />
         		<a id="pl.103.30"></a><var>103.30</var>following conditions exist:<br />
         		<a id="pl.103.31"></a><var>103.31</var>(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in <br />
         		<a id="pl.103.32"></a><var>103.32</var>the district require substantial filling, grading, or other physical preparation for use; and<br />
         		<a id="pl.103.33"></a><var>103.33</var>(2) the estimated cost of the physical preparation under clause (1), but excluding <br />
         		<a id="pl.103.34"></a><var>103.34</var>costs directly related to roads as defined in Minnesota Statutes, section 160.01, and <br />
         		<a id="pl.103.35"></a><var>103.35</var>local improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, <br />
         		<a id="pl.104.1"></a><var>104.1</var>clauses (1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land <br />
         		<a id="pl.104.2"></a><var>104.2</var>before completion of the preparation.<br />
         		<a id="pl.104.3"></a><var>104.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Special rules.</b> (a) If the city elects, upon the adoption of the tax increment <br />
         		<a id="pl.104.4"></a><var>104.4</var>financing plan for a district, the rules under this section apply to a redevelopment <br />
         		<a id="pl.104.5"></a><var>104.5</var>district, renewal and renovation district, soil condition district, or soil deficiency district <br />
         		<a id="pl.104.6"></a><var>104.6</var>established by the city or a development authority of the city in the project area.<br />
         		<a id="pl.104.7"></a><var>104.7</var>(b) Prior to or upon the adoption of the first tax increment plan subject to the special <br />
         		<a id="pl.104.8"></a><var>104.8</var>rules under this subdivision, the city must find by resolution that parcels consisting <br />
         		<a id="pl.104.9"></a><var>104.9</var>of at least 80 percent of the acreage of the project area, excluding street and railroad <br />
         		<a id="pl.104.10"></a><var>104.10</var>rights-of-way, are characterized by one or more of the following conditions:<br />
         		<a id="pl.104.11"></a><var>104.11</var>(1) peat or other soils with geotechnical deficiencies that impair development of <br />
         		<a id="pl.104.12"></a><var>104.12</var>commercial buildings or infrastructure;<br />
         		<a id="pl.104.13"></a><var>104.13</var>(2) soils or terrain that require substantial filling in order to permit the development <br />
         		<a id="pl.104.14"></a><var>104.14</var>of commercial buildings or infrastructure;<br />
         		<a id="pl.104.15"></a><var>104.15</var>(3) landfills, dumps, or similar deposits of municipal or private waste;<br />
         		<a id="pl.104.16"></a><var>104.16</var>(4) quarries or similar resource extraction sites;<br />
         		<a id="pl.104.17"></a><var>104.17</var>(5) floodway; and<br />
         		<a id="pl.104.18"></a><var>104.18</var>(6) substandard buildings, within the meaning of Minnesota Statutes, section <br />
         		<a id="pl.104.19"></a><var>104.19</var>469.174, subdivision 10.<br />
         		<a id="pl.104.20"></a><var>104.20</var>(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by <br />
         		<a id="pl.104.21"></a><var>104.21</var>the relevant condition if at least 70 percent of the area of the parcel contains the relevant <br />
         		<a id="pl.104.22"></a><var>104.22</var>condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by <br />
         		<a id="pl.104.23"></a><var>104.23</var>substandard buildings if substandard buildings occupy at least 30 percent of the area <br />
         		<a id="pl.104.24"></a><var>104.24</var>of the parcel.<br />
         		<a id="pl.104.25"></a><var>104.25</var>(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, <br />
         		<a id="pl.104.26"></a><var>104.26</var>is extended to eight years for any district, and Minnesota Statutes, section 469.1763, <br />
         		<a id="pl.104.27"></a><var>104.27</var>subdivision 4, does not apply to any district.<br />
         		<a id="pl.104.28"></a><var>104.28</var>(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section <br />
         		<a id="pl.104.29"></a><var>104.29</var>469.1763, subdivision 2, paragraph (a), not more than 40 percent of the total revenue <br />
         		<a id="pl.104.30"></a><var>104.30</var>derived from tax increments paid by properties in any district, measured over the life of <br />
         		<a id="pl.104.31"></a><var>104.31</var>the district, may be expended on activities outside the district but within the project area.<br />
         		<a id="pl.104.32"></a><var>104.32</var>(f) For a soil deficiency district:<br />
         		<a id="pl.104.33"></a><var>104.33</var>(1) increments may be collected through 20 years after the receipt by the authority of <br />
         		<a id="pl.104.34"></a><var>104.34</var>the first increment from the district;<br />
         		<a id="pl.104.35"></a><var>104.35</var>(2) increments may be used only to:<br />
         		<a id="pl.104.36"></a><var>104.36</var>(i) acquire parcels on which the improvements described in item (ii) will occur;<br />
         		<a id="pl.105.1"></a><var>105.1</var>(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the <br />
         		<a id="pl.105.2"></a><var>105.2</var>additional cost of installing public improvements directly caused by the deficiencies; and<br />
         		<a id="pl.105.3"></a><var>105.3</var>(iii) pay for the administrative expenses of the authority allocable to the district; and<br />
         		<a id="pl.105.4"></a><var>105.4</var>(3) any parcel acquired with increments from the district must be sold at no less <br />
         		<a id="pl.105.5"></a><var>105.5</var>than their fair market value.<br />
         		<a id="pl.105.6"></a><var>105.6</var>(g) Increments spent for any infrastructure costs, whether inside a district or outside <br />
         		<a id="pl.105.7"></a><var>105.7</var>a district but within the project area, are deemed to satisfy the requirements of Minnesota <br />
         		<a id="pl.105.8"></a><var>105.8</var>Statutes, section 469.176, subdivision 4j.<br />
         		<a id="pl.105.9"></a><var>105.9</var>(h) The authority to approve tax increment financing plans to establish tax increment <br />
         		<a id="pl.105.10"></a><var>105.10</var>financing districts under this section expires June 30, 2020.<br />
         		<a id="pl.105.11"></a><var>105.11</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance with Minnesota <br />
         		<a id="pl.105.12"></a><var>105.12</var>Statutes, section 645.021, subdivision 3.<br />
         		<br />
         		<a id="bill.6.10.0"></a><a id="pl.105.13"></a><var>105.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 10. <b>CITY OF MOUND; TAX INCREMENT FINANCING.</b><br />
         		<a id="pl.105.14"></a><var>105.14</var>The requirements of Minnesota Statutes, section 469.1763, subdivision 3, that <br />
         		<a id="pl.105.15"></a><var>105.15</var>activities must be undertaken within a five-year period from the date of certification of <br />
         		<a id="pl.105.16"></a><var>105.16</var>a tax increment financing district, are considered to be met for the Mound Harbor Tax <br />
         		<a id="pl.105.17"></a><var>105.17</var>Increment Financing District administered by the Housing and Redevelopment Authority <br />
         		<a id="pl.105.18"></a><var>105.18</var>in and for the city of Mound if the activities are undertaken within 13 years from the <br />
         		<a id="pl.105.19"></a><var>105.19</var>date of certification of the district.<br />
         		<a id="pl.105.20"></a><var>105.20</var><b>EFFECTIVE DATE.</b>The section is effective upon compliance by the governing <br />
         		<a id="pl.105.21"></a><var>105.21</var>body of the city of Mound with the requirements of Minnesota Statutes, section 645.021, <br />
         		<a id="pl.105.22"></a><var>105.22</var>subdivisions 2 and 3.<br />
         		<br />
         		<a id="bill.6.11.0"></a><a id="pl.105.23"></a><var>105.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 11. <b>CITY OF NORTH ST. PAUL; TAX INCREMENT FINANCING; </b><br />
         		<a id="pl.105.24"></a><var>105.24</var><b>PARCELS DEEMED OCCUPIED.</b><br />
         		<a id="pl.105.25"></a><var>105.25</var>(a) If the city of North St. Paul authorizes the creation of a redevelopment tax <br />
         		<a id="pl.105.26"></a><var>105.26</var>increment financing district under Minnesota Statutes, section 469.174, subdivision 10, <br />
         		<a id="pl.105.27"></a><var>105.27</var>parcel number 122922330059 is deemed to meet the requirements of Minnesota Statutes, <br />
         		<a id="pl.105.28"></a><var>105.28</var>section 469.174, subdivision 10, paragraph (d), notwithstanding any contrary provisions <br />
         		<a id="pl.105.29"></a><var>105.29</var>of that paragraph, if the following conditions are met:<br />
         		<a id="pl.105.30"></a><var>105.30</var>(1) buildings located on the parcel were demolished after the city of North St. Paul <br />
         		<a id="pl.105.31"></a><var>105.31</var>adopted a resolution under Minnesota Statutes, section 469.174, subdivision 10, paragraph <br />
         		<a id="pl.105.32"></a><var>105.32</var>(d), clause (3);<br />
         		<a id="pl.106.1"></a><var>106.1</var>(2) the buildings were removed either by the city of North St. Paul or by the owner <br />
         		<a id="pl.106.2"></a><var>106.2</var>of the property by entering into a development agreement; and<br />
         		<a id="pl.106.3"></a><var>106.3</var>(3) the request for certification of the parcel as part of a district is filed with the <br />
         		<a id="pl.106.4"></a><var>106.4</var>county auditor by December 31, 2017.<br />
         		<a id="pl.106.5"></a><var>106.5</var>(b) The city of North St. Paul may elect to use the current value for purposes of <br />
         		<a id="pl.106.6"></a><var>106.6</var>calculating original net tax capacity for the parcels deemed occupied under paragraph (a), <br />
         		<a id="pl.106.7"></a><var>106.7</var>notwithstanding the provisions of Minnesota Statutes, sections 469.174, subdivision 10, <br />
         		<a id="pl.106.8"></a><var>106.8</var>paragraph (d), and 469.177, subdivision 1, paragraph (f).<br />
         		<a id="pl.106.9"></a><var>106.9</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the governing <br />
         		<a id="pl.106.10"></a><var>106.10</var>body of the city of North St. Paul with the requirements of Minnesota Statutes, section <br />
         		<a id="pl.106.11"></a><var>106.11</var>645.021, subdivisions 2 and 3.<br />
         		<br />
         		<a id="bill.6.12.0"></a><a id="pl.106.12"></a><var>106.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 12. <b>CITY OF SAVAGE; TAX INCREMENT FINANCING DISTRICT.</b><br />
         		<a id="pl.106.13"></a><var>106.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Definitions.</b> (a) For the purposes of this section, the following terms <br />
         		<a id="pl.106.14"></a><var>106.14</var>have the meanings given them.<br />
         		<a id="pl.106.15"></a><var>106.15</var>(b) "City" means the city of Savage.<br />
         		<a id="pl.106.16"></a><var>106.16</var>(c) "Project area" means parcel numbers 26-931-023-0, 26-931-022-0, 26-931-039-0, <br />
         		<a id="pl.106.17"></a><var>106.17</var>26-931-041-0, 26-931-018-1, 26-931-043-0, 26-931-020-0, 26-931-021-0, 26-931-035-0, <br />
         		<a id="pl.106.18"></a><var>106.18</var>26-931-040-0, 26-931-036-0, 26-931-037-0, 26-931-038-0, and 26-931-0310.<br />
         		<a id="pl.106.19"></a><var>106.19</var>(d) "Soil deficiency district" means a type of tax increment financing district <br />
         		<a id="pl.106.20"></a><var>106.20</var>consisting of a portion of the project area in which the city finds by resolution that the <br />
         		<a id="pl.106.21"></a><var>106.21</var>following conditions exist:<br />
         		<a id="pl.106.22"></a><var>106.22</var>(1) unusual terrain or soil deficiencies that occurred over 80 percent of the acreage in <br />
         		<a id="pl.106.23"></a><var>106.23</var>the district require substantial filling, grading, or other physical preparation for use; and<br />
         		<a id="pl.106.24"></a><var>106.24</var>(2) the estimated cost of the physical preparation under clause (1), but excluding <br />
         		<a id="pl.106.25"></a><var>106.25</var>costs directly related to roads as defined in Minnesota Statutes, section 160.01, and <br />
         		<a id="pl.106.26"></a><var>106.26</var>local improvements as described in Minnesota Statutes, sections 429.021, subdivision 1, <br />
         		<a id="pl.106.27"></a><var>106.27</var>clauses (1) to (7), (11), and (12), and 430.01, exceeds the fair market value of the land <br />
         		<a id="pl.106.28"></a><var>106.28</var>before completion of the preparation.<br />
         		<a id="pl.106.29"></a><var>106.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Special rules.</b> (a) If the city elects, upon the adoption of the tax increment <br />
         		<a id="pl.106.30"></a><var>106.30</var>financing plan for a district, the rules under this section apply to a redevelopment <br />
         		<a id="pl.106.31"></a><var>106.31</var>district, renewal and renovation district, soil condition district, or soil deficiency district <br />
         		<a id="pl.106.32"></a><var>106.32</var>established by the city or a development authority of the city in the project area.<br />
         		<a id="pl.106.33"></a><var>106.33</var>(b) Prior to or upon the adoption of the first tax increment plan subject to the special <br />
         		<a id="pl.106.34"></a><var>106.34</var>rules under this subdivision, the city must find by resolution that parcels consisting <br />
         		<a id="pl.107.1"></a><var>107.1</var>of at least 80 percent of the acreage of the project area, excluding street and railroad <br />
         		<a id="pl.107.2"></a><var>107.2</var>rights-of-way, are characterized by one or more of the following conditions:<br />
         		<a id="pl.107.3"></a><var>107.3</var>(1) peat or other soils with geotechnical deficiencies that impair development of <br />
         		<a id="pl.107.4"></a><var>107.4</var>commercial buildings or infrastructure;<br />
         		<a id="pl.107.5"></a><var>107.5</var>(2) soils or terrain that require substantial filling in order to permit the development <br />
         		<a id="pl.107.6"></a><var>107.6</var>of commercial buildings or infrastructure;<br />
         		<a id="pl.107.7"></a><var>107.7</var>(3) landfills, dumps, or similar deposits of municipal or private waste;<br />
         		<a id="pl.107.8"></a><var>107.8</var>(4) quarries or similar resource extraction sites;<br />
         		<a id="pl.107.9"></a><var>107.9</var>(5) floodway; and<br />
         		<a id="pl.107.10"></a><var>107.10</var>(6) substandard buildings, within the meaning of Minnesota Statutes, section <br />
         		<a id="pl.107.11"></a><var>107.11</var>469.174, subdivision 10.<br />
         		<a id="pl.107.12"></a><var>107.12</var>(c) For the purposes of paragraph (b), clauses (1) to (5), a parcel is characterized by <br />
         		<a id="pl.107.13"></a><var>107.13</var>the relevant condition if at least 70 percent of the area of the parcel contains the relevant <br />
         		<a id="pl.107.14"></a><var>107.14</var>condition. For the purposes of paragraph (b), clause (6), a parcel is characterized by <br />
         		<a id="pl.107.15"></a><var>107.15</var>substandard buildings if substandard buildings occupy at least 30 percent of the area <br />
         		<a id="pl.107.16"></a><var>107.16</var>of the parcel.<br />
         		<a id="pl.107.17"></a><var>107.17</var>(d) The five-year rule under Minnesota Statutes, section 469.1763, subdivision 3, <br />
         		<a id="pl.107.18"></a><var>107.18</var>is extended to eight years for any district, and Minnesota Statutes, section 469.1763, <br />
         		<a id="pl.107.19"></a><var>107.19</var>subdivision 4, does not apply to any district.<br />
         		<a id="pl.107.20"></a><var>107.20</var>(e) Notwithstanding any provision to the contrary in Minnesota Statutes, section <br />
         		<a id="pl.107.21"></a><var>107.21</var>469.1763, subdivision 2, paragraph (a), not more than 40 percent of the total revenue <br />
         		<a id="pl.107.22"></a><var>107.22</var>derived from tax increments paid by properties in any district, measured over the life of <br />
         		<a id="pl.107.23"></a><var>107.23</var>the district, may be expended on activities outside the district but within the project area.<br />
         		<a id="pl.107.24"></a><var>107.24</var>(f) For a soil deficiency district:<br />
         		<a id="pl.107.25"></a><var>107.25</var>(1) increments may be collected through 20 years after the receipt by the authority of <br />
         		<a id="pl.107.26"></a><var>107.26</var>the first increment from the district;<br />
         		<a id="pl.107.27"></a><var>107.27</var>(2) increments may be used only to:<br />
         		<a id="pl.107.28"></a><var>107.28</var>(i) acquire parcels on which the improvements described in item (ii) will occur;<br />
         		<a id="pl.107.29"></a><var>107.29</var>(ii) pay for the cost of correcting the unusual terrain or soil deficiencies and the <br />
         		<a id="pl.107.30"></a><var>107.30</var>additional cost of installing public improvements directly caused by the deficiencies; and<br />
         		<a id="pl.107.31"></a><var>107.31</var>(iii) pay for the administrative expenses of the authority allocable to the district; and<br />
         		<a id="pl.107.32"></a><var>107.32</var>(3) any parcel acquired with increments from the district must be sold at no less <br />
         		<a id="pl.107.33"></a><var>107.33</var>than their fair market value.<br />
         		<a id="pl.107.34"></a><var>107.34</var>(g) Increments spent for any infrastructure costs, whether inside a district or outside <br />
         		<a id="pl.107.35"></a><var>107.35</var>a district but within the project area, are deemed to satisfy the requirements of Minnesota <br />
         		<a id="pl.107.36"></a><var>107.36</var>Statutes, section 469.176, subdivision 4j.<br />
         		<a id="pl.108.1"></a><var>108.1</var>(h) The authority to approve tax increment financing plans to establish tax increment <br />
         		<a id="pl.108.2"></a><var>108.2</var>financing districts under this section expires June 30, 2020.<br />
         		<a id="pl.108.3"></a><var>108.3</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance with Minnesota <br />
         		<a id="pl.108.4"></a><var>108.4</var>Statutes, section 645.021, subdivision 3.<br />
         		<br />
         		<a id="bill.6.13.0"></a><a id="pl.108.5"></a><var>108.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 13. <b>SHOREVIEW TAX INCREMENT FINANCING PILOT PROJECT.</b><br />
         		<a id="pl.108.6"></a><var>108.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Authority to establish districts.</b> (a) The governing body of the city <br />
         		<a id="pl.108.7"></a><var>108.7</var>of Shoreview or a development authority it designates may establish not more than three <br />
         		<a id="pl.108.8"></a><var>108.8</var>economic development tax increment financing districts in the city subject to the special <br />
         		<a id="pl.108.9"></a><var>108.9</var>rules under this section. The purpose of these districts is the retention and expansion of <br />
         		<a id="pl.108.10"></a><var>108.10</var>existing businesses in the city and the attraction of new business to the state to create and <br />
         		<a id="pl.108.11"></a><var>108.11</var>retain high paying jobs.<br />
         		<a id="pl.108.12"></a><var>108.12</var>(b) The authority to establish or approve the tax increment financing plans and <br />
         		<a id="pl.108.13"></a><var>108.13</var>request certification for districts under this section expires on June 30, 2019.<br />
         		<a id="pl.108.14"></a><var>108.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Qualified businesses.</b> For purposes of this section, a "qualified business" <br />
         		<a id="pl.108.15"></a><var>108.15</var>must satisfy the following requirements:<br />
         		<a id="pl.108.16"></a><var>108.16</var>(1) the business must qualify under one of the following when the tax increment <br />
         		<a id="pl.108.17"></a><var>108.17</var>financing plan is approved:<br />
         		<a id="pl.108.18"></a><var>108.18</var>(i) it operates at a location in the city of Shoreview;<br />
         		<a id="pl.108.19"></a><var>108.19</var>(ii) it does not have substantial operations in Minnesota; or<br />
         		<a id="pl.108.20"></a><var>108.20</var>(iii) the assistance is provided for relocation of a portion of the business's operation <br />
         		<a id="pl.108.21"></a><var>108.21</var>from another state;<br />
         		<a id="pl.108.22"></a><var>108.22</var>(2) the expansion or location of the operations of the business in the city, as <br />
         		<a id="pl.108.23"></a><var>108.23</var>provided in the business subsidy agreement under Minnesota Statues, sections 116J.993 to <br />
         		<a id="pl.108.24"></a><var>108.24</var>116J.995, will result in an increase in manufacturing, research, service, or professional <br />
         		<a id="pl.108.25"></a><var>108.25</var>jobs, at least 75 percent of which pay an average wage or salary that is equal to or greater <br />
         		<a id="pl.108.26"></a><var>108.26</var>than 25 percent of the median wage or salary for all jobs within the metropolitan area; and<br />
         		<a id="pl.108.27"></a><var>108.27</var>(3) the business is not engaged in making retail sales or in providing other services, <br />
         		<a id="pl.108.28"></a><var>108.28</var>such as legal, medical, accounting, financial, entertainment, or similar services, to third <br />
         		<a id="pl.108.29"></a><var>108.29</var>parties at the location receiving assistance.<br />
         		<a id="pl.108.30"></a><var>108.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Applicable rules.</b> (a) Unless otherwise stated, the provisions of Minnesota <br />
         		<a id="pl.108.31"></a><var>108.31</var>Statutes, sections 469.174 to 469.1794, apply to districts established under this section.<br />
         		<a id="pl.108.32"></a><var>108.32</var>(b) Notwithstanding the provisions of section 469.176, subdivision 1b, the duration <br />
         		<a id="pl.108.33"></a><var>108.33</var>limit for districts created under this section is 12 years after the receipt of the first increment.<br />
         		<a id="pl.109.1"></a><var>109.1</var>(c) The provisions of Minnesota Statutes, section 469.176, subdivision 4c, apply <br />
         		<a id="pl.109.2"></a><var>109.2</var>to determining the permitted uses of increments from the districts with the following <br />
         		<a id="pl.109.3"></a><var>109.3</var>exceptions:<br />
         		<a id="pl.109.4"></a><var>109.4</var>(1) any building and facilities must be for a qualified business;<br />
         		<a id="pl.109.5"></a><var>109.5</var>(2) the building and facilities must not be used by the qualified business or its <br />
         		<a id="pl.109.6"></a><var>109.6</var>lessees or tenants to relocate operations from another location in this state outside of the <br />
         		<a id="pl.109.7"></a><var>109.7</var>city of Shoreview;<br />
         		<a id="pl.109.8"></a><var>109.8</var>(3) the 15 percent limit in subdivision 4c, paragraph (a), is increased to 25 percent; and<br />
         		<a id="pl.109.9"></a><var>109.9</var>(4) the city or development authority may elect to deposit up to 20 percent of the <br />
         		<a id="pl.109.10"></a><var>109.10</var>increments in the fund established under subdivision 4. If the city elects to use this <br />
         		<a id="pl.109.11"></a><var>109.11</var>authority, all of the remaining increments must be expended for administrative expenses <br />
         		<a id="pl.109.12"></a><var>109.12</var>or for activities within the district under Minnesota Statutes, section 469.1763.<br />
         		<a id="pl.109.13"></a><var>109.13</var>(d) The governing body of the city may elect by resolution to determine the <br />
         		<a id="pl.109.14"></a><var>109.14</var>original and current net tax capacity of a district established under this section using the <br />
         		<a id="pl.109.15"></a><var>109.15</var>computation under Minnesota Statutes, section 469.177, subdivision 3, paragraph (a) or (b).<br />
         		<a id="pl.109.16"></a><var>109.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Business retention and expansion fund.</b> (a) The city may establish a <br />
         		<a id="pl.109.17"></a><var>109.17</var>business retention and expansion fund and deposit in the fund:<br />
         		<a id="pl.109.18"></a><var>109.18</var>(1) increments as provided under subdivision 3, paragraph (c), clause (4); and<br />
         		<a id="pl.109.19"></a><var>109.19</var>(2) increments from a district for which the request for certification of the district <br />
         		<a id="pl.109.20"></a><var>109.20</var>was made prior to April 30, 1990, if the amount necessary to meet all of the debt and other <br />
         		<a id="pl.109.21"></a><var>109.21</var>obligations incurred for that district has been received by the city.<br />
         		<a id="pl.109.22"></a><var>109.22</var>(b) Amounts in the fund may be expended to assist qualified businesses, as permitted <br />
         		<a id="pl.109.23"></a><var>109.23</var>under subdivisions 2 and 3, and are not otherwise subject to the restrictions in Minnesota <br />
         		<a id="pl.109.24"></a><var>109.24</var>Statutes, sections 469.174 to 469.1794.<br />
         		<a id="pl.109.25"></a><var>109.25</var><b>EFFECTIVE DATE.</b>This section is effective upon compliance by the governing <br />
         		<a id="pl.109.26"></a><var>109.26</var>body of the city of Shoreview with the requirements of Minnesota Statutes, section <br />
         		<a id="pl.109.27"></a><var>109.27</var>645.021, subdivision 3.<br />
         		<br />
         		<a id="bill.6.14.0"></a><a id="pl.109.28"></a><var>109.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 14. <b>WORKFORCE HOUSING GRANTS PILOT PROGRAM.</b><br />
         		<a id="pl.109.29"></a><var>109.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Establishment.</b> The commissioner of employment and economic <br />
         		<a id="pl.109.30"></a><var>109.30</var>development shall establish a workforce housing grants pilot program to award grants to a <br />
         		<a id="pl.109.31"></a><var>109.31</var>city to be used for financing costs related to the construction of or financing for market <br />
         		<a id="pl.109.32"></a><var>109.32</var>rate residential rental properties.<br />
         		<a id="pl.109.33"></a><var>109.33</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Definitions.</b> For purposes of this section:<br />
         		<a id="pl.110.1"></a><var>110.1</var>(1) "local unit of government" means a home rule charter or statutory city or county;<br />
         		<a id="pl.110.2"></a><var>110.2</var>(2) "qualified city" means a home rule charter or statutory city with a population <br />
         		<a id="pl.110.3"></a><var>110.3</var>exceeding 1,500 located in Roseau County or Pennington County;<br />
         		<a id="pl.110.4"></a><var>110.4</var>(3) "qualified expenditure" means expenditures for the acquisition of property, <br />
         		<a id="pl.110.5"></a><var>110.5</var>construction of improvements, provisions of loans or subsidies, grants, interest rate <br />
         		<a id="pl.110.6"></a><var>110.6</var>subsidies, public infrastructure, and related financing costs for market rate rental <br />
         		<a id="pl.110.7"></a><var>110.7</var>residential rental properties; and<br />
         		<a id="pl.110.8"></a><var>110.8</var>(4) "market rate residential rental properties" means properties that are rented at <br />
         		<a id="pl.110.9"></a><var>110.9</var>market value and excludes: (i) properties constructed with financial assistance requiring <br />
         		<a id="pl.110.10"></a><var>110.10</var>the property to be occupied by residents that meet income limits under federal or state <br />
         		<a id="pl.110.11"></a><var>110.11</var>law of initial occupancy; and (ii) properties constructed with federal, state, or local flood <br />
         		<a id="pl.110.12"></a><var>110.12</var>recovery assistance, regardless of whether that assistance imposed income limits as a <br />
         		<a id="pl.110.13"></a><var>110.13</var>condition of receiving assistance.<br />
         		<a id="pl.110.14"></a><var>110.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Application.</b> The commissioner must develop forms and procedures <br />
         		<a id="pl.110.15"></a><var>110.15</var>for soliciting and reviewing application for grants under this section. At a minimum, a <br />
         		<a id="pl.110.16"></a><var>110.16</var>city must include in its application a resolution of its governing body certifying that the <br />
         		<a id="pl.110.17"></a><var>110.17</var>matching amount as required under this section is available and committed.<br />
         		<a id="pl.110.18"></a><var>110.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Program requirements.</b> The commissioner shall not award a grant to a <br />
         		<a id="pl.110.19"></a><var>110.19</var>city under this section until the following determinations are made:<br />
         		<a id="pl.110.20"></a><var>110.20</var>(1) the average vacancy rate for rental housing located in the city, and in any city <br />
         		<a id="pl.110.21"></a><var>110.21</var>located within 15 miles or less of the boundaries of the city, has been five percent or <br />
         		<a id="pl.110.22"></a><var>110.22</var>less for at least a two-year period;<br />
         		<a id="pl.110.23"></a><var>110.23</var>(2) one or more businesses located in the city, or within 15 miles of the city, that <br />
         		<a id="pl.110.24"></a><var>110.24</var>employ a minimum of twenty full-time equivalent employees in aggregate have provided <br />
         		<a id="pl.110.25"></a><var>110.25</var>a written statement to the city indicating that the lack of available rental housing has <br />
         		<a id="pl.110.26"></a><var>110.26</var>impeded their ability to recruit and hire employees;<br />
         		<a id="pl.110.27"></a><var>110.27</var>(3) the city is located in Roseau County or Pennington County and has a population <br />
         		<a id="pl.110.28"></a><var>110.28</var>exceeding 1,500;<br />
         		<a id="pl.110.29"></a><var>110.29</var>(4) fewer than five market rate residential units per 1,000 residents were constructed <br />
         		<a id="pl.110.30"></a><var>110.30</var>in the city in each of the last ten years; and<br />
         		<a id="pl.110.31"></a><var>110.31</var>(5) the city certifies that the grants will be used for qualified expenditures for the <br />
         		<a id="pl.110.32"></a><var>110.32</var>development of rental housing to serve employees of businesses located in the city <br />
         		<a id="pl.110.33"></a><var>110.33</var>or surrounding area.<br />
         		<a id="pl.110.34"></a><var>110.34</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Allocation.</b> The amount of a grant may not exceed the lesser of $400,000 <br />
         		<a id="pl.110.35"></a><var>110.35</var>or ten percent of the rental housing development project cost. The commissioner shall not <br />
         		<a id="pl.111.1"></a><var>111.1</var>award a grant to a city without certification by the city that the amount of the grant shall be <br />
         		<a id="pl.111.2"></a><var>111.2</var>matched by a local unit of government, business, or nonprofit organization.<br />
         		<a id="pl.111.3"></a><var>111.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <b>Report.</b> By January 15, 2016, the city must submit a report to the chairs and <br />
         		<a id="pl.111.4"></a><var>111.4</var>ranking minority members of the senate and house of representatives committees having <br />
         		<a id="pl.111.5"></a><var>111.5</var>jurisdiction over taxes and workforce development specifying the projects that received <br />
         		<a id="pl.111.6"></a><var>111.6</var>grants under this section and the specific purposes for which the grant funds were used.<br />
         		<a id="pl.111.7"></a><var>111.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.6.15.0"></a><a id="pl.111.8"></a><var>111.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 15. <b>APPROPRIATION.</b><br />
         		<a id="pl.111.9"></a><var>111.9</var>$627,000 in fiscal year 2015 is appropriated from the general fund to the <br />
         		<a id="pl.111.10"></a><var>111.10</var>commissioner of employment and economic development to make grants under the <br />
         		<a id="pl.111.11"></a><var>111.11</var>workforce housing grants pilot program in section 14. The base for fiscal year 2016 is <br />
         		<a id="pl.111.12"></a><var>111.12</var>$1,373,000 and is available until June 30, 2018. The base for fiscal year 2017 is $0. Of <br />
         		<a id="pl.111.13"></a><var>111.13</var>these amounts, the commissioner of employment and economic development may use up <br />
         		<a id="pl.111.14"></a><var>111.14</var>to five percent for administrative expenses.<br />
         		<br />
         		<a id="bill.7.0.0"></a><div class="xtend_ce"><a id="pl.111.15"></a><var>111.15</var><b>ARTICLE 7</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.111.16"></a><var>111.16</var><b>LEWIS AND CLARK REGIONAL WATER SYSTEM PROJECT</b><br />
            		
         </div><br />
         		<a id="bill.7.1.0"></a><a id="pl.111.17"></a><var>111.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. <b>[469.352] LEWIS AND CLARK WATER PROJECT BONDING.</b><br />
         		<a id="pl.111.18"></a><var>111.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Authority; aggregate limit.</b> (a) The governing body of a <br />
         		<a id="pl.111.19"></a><var>111.19</var>municipality may, by resolution, issue obligations under chapter 475 to acquire land or <br />
         		<a id="pl.111.20"></a><var>111.20</var>interests in land for, and to design, engineer, and construct  pipeline and other facilities and <br />
         		<a id="pl.111.21"></a><var>111.21</var>infrastructure necessary to complete the Lewis and Clark Regional Water System Project.<br />
         		<a id="pl.111.22"></a><var>111.22</var>(b) The maximum amount of bonds that may be issued under this section is limited <br />
         		<a id="pl.111.23"></a><var>111.23</var>to an aggregate principal amount of $45,000,000, plus any costs of issuance and amounts <br />
         		<a id="pl.111.24"></a><var>111.24</var>to be deposited into a debt service or reserve account. The Lewis and Clark Joint Powers <br />
         		<a id="pl.111.25"></a><var>111.25</var>Board shall allocate the limit among the municipalities designated in subdivision 2.<br />
         		<a id="pl.111.26"></a><var>111.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Municipalities.</b> For purposes of this section, "municipality" or <br />
         		<a id="pl.111.27"></a><var>111.27</var>"municipalities" means any of the following governmental units:<br />
         		<a id="pl.111.28"></a><var>111.28</var>(1) the city of Luverne;<br />
         		<a id="pl.111.29"></a><var>111.29</var>(2) the city of Worthington;<br />
         		<a id="pl.111.30"></a><var>111.30</var>(3) Nobles County; and<br />
         		<a id="pl.111.31"></a><var>111.31</var>(4) Rock County.<br />
         		<a id="pl.112.1"></a><var>112.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Application of chapter 475 limits.</b> (a) Notwithstanding section 475.58 or <br />
         		<a id="pl.112.2"></a><var>112.2</var>any other law to contrary, obligations under this section, including general obligations, <br />
         		<a id="pl.112.3"></a><var>112.3</var>may be issued without obtaining the approval of the electors.<br />
         		<a id="pl.112.4"></a><var>112.4</var>(b) Notwithstanding section 475.53 or any other law to the contrary, obligations <br />
         		<a id="pl.112.5"></a><var>112.5</var>issued under this section are not subject to any limitations on net debt.<br />
         		<a id="pl.112.6"></a><var>112.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Payment allocation.</b> The joint powers board may agree to allocate the <br />
         		<a id="pl.112.7"></a><var>112.7</var>responsibility of each of its members and each municipality to pay obligations issued <br />
         		<a id="pl.112.8"></a><var>112.8</var>under this section. One-half of any federal grants and aid received to fund the project in <br />
         		<a id="pl.112.9"></a><var>112.9</var>any year shall be used to proportionately reduce responsibility to pay obligations under <br />
         		<a id="pl.112.10"></a><var>112.10</var>this subdivision.<br />
         		<a id="pl.112.11"></a><var>112.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br />
         		<a id="pl.112.12"></a><var>112.12</var>without local approval under the provisions of Minnesota Statutes, section 645.023.<br />
         		<br />
         		<a id="bill.7.2.0"></a><a id="pl.112.13"></a><var>112.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. <b>[477A.20] DEBT SERVICE AID; LEWIS AND CLARK JOINT POWERS </b><br />
         		<a id="pl.112.14"></a><var>112.14</var><b>BOARD.</b><br />
         		<a id="pl.112.15"></a><var>112.15</var>(a) The Lewis and Clark Joint Powers Board is eligible to receive an aid distribution <br />
         		<a id="pl.112.16"></a><var>112.16</var>under this section equal to (1) the principal and interest payable in the succeeding calendar <br />
         		<a id="pl.112.17"></a><var>112.17</var>year for bonds issued under section 469.352 minus the sum of (2) the combined adjusted <br />
         		<a id="pl.112.18"></a><var>112.18</var>net tax capacity of Rock County and Nobles County for the assessment year prior to the <br />
         		<a id="pl.112.19"></a><var>112.19</var>aid payable year multiplied by 1.5 percent and (3) 50 percent of any federal aid received to <br />
         		<a id="pl.112.20"></a><var>112.20</var>fund the project in the calendar year. The board shall certify to the commissioner of revenue <br />
         		<a id="pl.112.21"></a><var>112.21</var>the principal and interest due in the succeeding calendar year by June 1 of the aid payable <br />
         		<a id="pl.112.22"></a><var>112.22</var>year. The commissioner of revenue shall calculate the aid payable under this section and <br />
         		<a id="pl.112.23"></a><var>112.23</var>certify the amount payable before July 1 of the aid distribution year. The commissioner <br />
         		<a id="pl.112.24"></a><var>112.24</var>shall pay the aid under this section to the board at the times specified for payments of local <br />
         		<a id="pl.112.25"></a><var>112.25</var>government aid in section 477A.015. An amount sufficient to pay the state aid authorized <br />
         		<a id="pl.112.26"></a><var>112.26</var>under this section is annually appropriated to the commissioner from the general fund. <br />
         		<a id="pl.112.27"></a><var>112.27</var>(b) The board must allocate the aid to the municipalities issuing bonds under section <br />
         		<a id="pl.112.28"></a><var>112.28</var>469.352 in proportion to their principal and interest payments.<br />
         		<a id="pl.112.29"></a><var>112.29</var>(c) If the deduction under paragraph (a), clause (3), eliminates the aid payment under <br />
         		<a id="pl.112.30"></a><var>112.30</var>this section in a calendar year, then the excess must be used to reduce the principal and <br />
         		<a id="pl.112.31"></a><var>112.31</var>interest in the succeeding year or years used to calculate aid under paragraph (a).<br />
         		<a id="pl.112.32"></a><var>112.32</var>(d) If federal grants and aid received for the project, not deducted under paragraph <br />
         		<a id="pl.112.33"></a><var>112.33</var>(a), clause (3), exceed the total debt service payments for bonds issued under section <br />
         		<a id="pl.112.34"></a><var>112.34</var>469.352, other than payments made with state aid under this section, the joint powers <br />
         		<a id="pl.112.35"></a><var>112.35</var>board must repay any excess to the commissioner of revenue for deposit in the general <br />
         		<a id="pl.113.1"></a><var>113.1</var>fund. The repayment may not exceed the sum of state aid payments under this section and <br />
         		<a id="pl.113.2"></a><var>113.2</var>any other grants made by the state for the project.<br />
         		<a id="pl.113.3"></a><var>113.3</var>(e) This section expires at the earlier of January 1, 2039, or when the bonds <br />
         		<a id="pl.113.4"></a><var>113.4</var>authorized under section 469.352 have been paid or defeased.<br />
         		<a id="pl.113.5"></a><var>113.5</var><b>EFFECTIVE DATE.</b>This section is effective beginning with aids payable in 2015.<br />
         		<br />
         		<a id="bill.7.3.0"></a><a id="pl.113.6"></a><var>113.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. Laws 2005, First Special Session chapter 3, article 5, section 44, subdivision 3, <br />
         		<a id="pl.113.7"></a><var>113.7</var>is amended to read:<br />
         		<a id="pl.113.8"></a><var>113.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Use of revenues.</b> (a) Revenues received from taxes authorized by <br />
         		<a id="pl.113.9"></a><var>113.9</var>subdivisions 1 and 2 must be used by the city to pay the cost of collecting and <br />
         		<a id="pl.113.10"></a><var>113.10</var>administering the taxes and to pay for the costs of a community center complex and <br />
         		<a id="pl.113.11"></a><var>113.11</var>to make renovations to the Memorial Auditorium. Authorized expenses include, but <br />
         		<a id="pl.113.12"></a><var>113.12</var>are not limited to, acquiring property and paying construction expenses related to these <br />
         		<a id="pl.113.13"></a><var>113.13</var>improvements, and paying debt service on bonds or other obligations issued to finance <br />
         		<a id="pl.113.14"></a><var>113.14</var>acquisition and construction of these improvements.<br />
         		<a id="pl.113.15"></a><var>113.15</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding Minnesota Statutes, section 297A.99, subdivisions 2 and 3, if <br />
         		<a id="pl.113.16"></a><var>113.16</var>the city decides to extend the taxes in subdivisions 1 and 2, as allowed under subdivision <br />
         		<a id="pl.113.17"></a><var>113.17</var>5, paragraph (b), the city must use any amounts in excess of the amounts necessary to <br />
         		<a id="pl.113.18"></a><var>113.18</var>meet the obligations under paragraph (a) to pay the city's share of debt service on bonds <br />
         		<a id="pl.113.19"></a><var>113.19</var>issued under Minnesota Statutes, section 469.352, to fund the Lewis and Clark Regional <br />
         		<a id="pl.113.20"></a><var>113.20</var>Water System Project.<br />
         		<a id="pl.113.21"></a><var>113.21</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br />
         		<a id="pl.113.22"></a><var>113.22</var>the city of Worthington and its chief clerical officer comply with Minnesota Statutes, <br />
         		<a id="pl.113.23"></a><var>113.23</var>section 645.021, subdivisions 2 and 3.<br />
         		<br />
         		<a id="bill.7.4.0"></a><a id="pl.113.24"></a><var>113.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 4. Laws 2005, First Special Session chapter 3, article 5, section 44, subdivision 5, <br />
         		<a id="pl.113.25"></a><var>113.25</var>is amended to read:<br />
         		<a id="pl.113.26"></a><var>113.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Termination of taxes.</b> (a) The taxes imposed under subdivisions 1 and <br />
         		<a id="pl.113.27"></a><var>113.27</var>2 expire at the earlier of (1) ten years, or (2) when the city council determines that the <br />
         		<a id="pl.113.28"></a><var>113.28</var>amount of revenue received from the taxes to pay for the projects under subdivision 3 <br />
         		<a id="pl.113.29"></a><var>113.29</var>equals or exceeds $6,000,000 plus the additional amount needed to pay the costs related <br />
         		<a id="pl.113.30"></a><var>113.30</var>to issuance of bonds under subdivision 4, including interest on the bonds. Any funds <br />
         		<a id="pl.113.31"></a><var>113.31</var>remaining after completion of the project and retirement or redemption of the bonds shall <br />
         		<a id="pl.113.32"></a><var>113.32</var>be placed in a capital project fund of the city. The taxes imposed under subdivisions 1 and <br />
         		<a id="pl.113.33"></a><var>113.33</var>2 may expire at an earlier time if the city so determines by ordinance.<br />
         		<a id="pl.114.1"></a><var>114.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding paragraph (a), the city council may, by ordinance, extend the <br />
         		<a id="pl.114.2"></a><var>114.2</var>taxes imposed under subdivisions 1 and 2 through December 31, 2039, provided that <br />
         		<a id="pl.114.3"></a><var>114.3</var>all additional revenues that exceed those necessary to fund the projects and associated <br />
         		<a id="pl.114.4"></a><var>114.4</var>financing costs listed in subdivision 3, paragraph (a), are committed to pay debt service <br />
         		<a id="pl.114.5"></a><var>114.5</var>on bonds issued under Minnesota Statutes, section 469.352, to fund the Lewis and Clark <br />
         		<a id="pl.114.6"></a><var>114.6</var>Regional Water System Project.<br />
         		<a id="pl.114.7"></a><var>114.7</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br />
         		<a id="pl.114.8"></a><var>114.8</var>the city of Worthington and its chief clerical officer comply with Minnesota Statutes, <br />
         		<a id="pl.114.9"></a><var>114.9</var>section 645.021, subdivisions 2 and 3.<br />
         		<br />
         		<a id="bill.7.5.0"></a><a id="pl.114.10"></a><var>114.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 5. <b>ROCK COUNTY LOCAL SALES TAX.</b><br />
         		<a id="pl.114.11"></a><var>114.11</var>(a) Notwithstanding Minnesota Statutes, sections 
         <statute_ref>297A.99</statute_ref>, 
         <statute_ref>297A.993</statute_ref>, and <br />
         		<a id="pl.114.12"></a><var>114.12</var><statute_ref>477A.016</statute_ref>, or any other contrary provision of law, ordinance, or charter, and in <br />
         		<a id="pl.114.13"></a><var>114.13</var>addition to any taxes the county may impose under another law or statute, the Board <br />
         		<a id="pl.114.14"></a><var>114.14</var>of Commissioners of Rock County may, by resolution, impose a sales and use tax of <br />
         		<a id="pl.114.15"></a><var>114.15</var>up to one-half of one percent for the purposes specified in paragraph (c). Except as <br />
         		<a id="pl.114.16"></a><var>114.16</var>otherwise provided in this section, the provisions of Minnesota Statutes, section 
         <statute_ref>297A.99, <br />
            		<a id="pl.114.17"></a><var>114.17</var>subdivisions 
         </statute_ref>4 to 13, govern the imposition, administration, collection, and enforcement <br />
         		<a id="pl.114.18"></a><var>114.18</var>of the tax authorized under this paragraph.<br />
         		<a id="pl.114.19"></a><var>114.19</var>(b) The tax imposed under paragraph (a) must be imposed in the entire county unless <br />
         		<a id="pl.114.20"></a><var>114.20</var>the city of Luverne imposes a local sales tax at the same rate under section 7, in which <br />
         		<a id="pl.114.21"></a><var>114.21</var>case the county board of commissioners may elect to impose the tax in the portion of the <br />
         		<a id="pl.114.22"></a><var>114.22</var>county located outside of the boundaries of the city of Luverne.<br />
         		<a id="pl.114.23"></a><var>114.23</var>(c) The proceeds of any tax imposed under paragraph (a), less refunds and costs of <br />
         		<a id="pl.114.24"></a><var>114.24</var>collection, must be first used by the county to pay debt service on bonds issued under <br />
         		<a id="pl.114.25"></a><var>114.25</var>Minnesota Statutes, section 469.352, to fund the Lewis and Clark Regional Water System <br />
         		<a id="pl.114.26"></a><var>114.26</var>Project. Revenues collected in any calendar year in excess of the county obligation to pay <br />
         		<a id="pl.114.27"></a><var>114.27</var>for the county's share of the bonds issued under Minnesota Statutes, section 469.352, may <br />
         		<a id="pl.114.28"></a><var>114.28</var>be retained by the county and used for funding other capital projects within the county.<br />
         		<a id="pl.114.29"></a><var>114.29</var>(d) A tax imposed under paragraph (a) expires when the county's share of bonds issued <br />
         		<a id="pl.114.30"></a><var>114.30</var>under Minnesota Statutes, section 469.352, to fund the Lewis and Clark Regional Water <br />
         		<a id="pl.114.31"></a><var>114.31</var>System Project has been paid, or at an earlier time if approved by resolution of the board. <br />
         		<a id="pl.114.32"></a><var>114.32</var>The tax must not terminate before the county board of commissioners determines that <br />
         		<a id="pl.114.33"></a><var>114.33</var>revenues from these taxes and any other revenue source the county dedicates are sufficient <br />
         		<a id="pl.114.34"></a><var>114.34</var>to pay the county's share of the bonds issued under Minnesota Statutes, section 469.352.<br />
         		<a id="pl.115.1"></a><var>115.1</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body <br />
         		<a id="pl.115.2"></a><var>115.2</var>of Rock County and its chief clerical officer comply with Minnesota Statutes, section <br />
         		<a id="pl.115.3"></a><var>115.3</var>645.021, subdivisions 2 and 3.<br />
         		<br />
         		<a id="bill.7.6.0"></a><a id="pl.115.4"></a><var>115.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 6. <b>NOBLES COUNTY LOCAL SALES TAX.</b><br />
         		<a id="pl.115.5"></a><var>115.5</var>(a) Notwithstanding Minnesota Statutes, sections 
         <statute_ref>297A.99</statute_ref>, 
         <statute_ref>297A.993</statute_ref>, and <br />
         		<a id="pl.115.6"></a><var>115.6</var><statute_ref>477A.016</statute_ref>, or any other contrary provision of law, ordinance, or charter, and in <br />
         		<a id="pl.115.7"></a><var>115.7</var>addition to any taxes the county may impose under another law or statute, the Board <br />
         		<a id="pl.115.8"></a><var>115.8</var>of Commissioners of Nobles County may, by resolution, impose a sales and use tax of <br />
         		<a id="pl.115.9"></a><var>115.9</var>up to one-half of one percent for the purposes specified in paragraph (c). Except as <br />
         		<a id="pl.115.10"></a><var>115.10</var>otherwise provided in this section, the provisions of Minnesota Statutes, section 
         <statute_ref>297A.99, <br />
            		<a id="pl.115.11"></a><var>115.11</var>subdivisions 
         </statute_ref>4 to 13, govern the imposition, administration, collection, and enforcement <br />
         		<a id="pl.115.12"></a><var>115.12</var>of the tax authorized under this paragraph.<br />
         		<a id="pl.115.13"></a><var>115.13</var>(b) The tax imposed under paragraph (a) must be imposed in the entire county unless <br />
         		<a id="pl.115.14"></a><var>115.14</var>the county imposes the tax at one-half of one percent and the local sales tax authorized <br />
         		<a id="pl.115.15"></a><var>115.15</var>under Laws 2005, chapter 3, article 5, section 44, as amended, has not expired, in which <br />
         		<a id="pl.115.16"></a><var>115.16</var>case the county board of commissioners may elect to impose the tax in the portion of the <br />
         		<a id="pl.115.17"></a><var>115.17</var>county located outside of the boundaries of the city of Worthington. If the tax authorized <br />
         		<a id="pl.115.18"></a><var>115.18</var>under Laws 2005, chapter 3, article 5, section 44, as amended, expires before the tax <br />
         		<a id="pl.115.19"></a><var>115.19</var>authorized under this section expires, the tax authorized under this section is imposed <br />
         		<a id="pl.115.20"></a><var>115.20</var>in the entire county.<br />
         		<a id="pl.115.21"></a><var>115.21</var>(c) The proceeds of any tax imposed under paragraph (a), less refunds and costs of <br />
         		<a id="pl.115.22"></a><var>115.22</var>collection, must be first used by the county to pay debt service on bonds issued under <br />
         		<a id="pl.115.23"></a><var>115.23</var>Minnesota Statutes, section 469.352, to fund the Lewis and Clark Regional Water System <br />
         		<a id="pl.115.24"></a><var>115.24</var>Project. Revenues collected in any calendar year in excess of the county obligation to pay <br />
         		<a id="pl.115.25"></a><var>115.25</var>for the county's share of the bonds issued under Minnesota Statutes, section 469.352, may <br />
         		<a id="pl.115.26"></a><var>115.26</var>be retained by the county and used for funding other capital projects within the county.<br />
         		<a id="pl.115.27"></a><var>115.27</var>(d) A tax imposed under paragraph (a) expires when the county's share of bonds issued <br />
         		<a id="pl.115.28"></a><var>115.28</var>under Minnesota Statutes, section 469.352, to fund the Lewis and Clark Regional Water <br />
         		<a id="pl.115.29"></a><var>115.29</var>System Project has been paid, or at an earlier time if approved by resolution of the board. <br />
         		<a id="pl.115.30"></a><var>115.30</var>The tax must not terminate before the county board of commissioners determines that <br />
         		<a id="pl.115.31"></a><var>115.31</var>revenues from these taxes and any other revenue source the county dedicates are sufficient <br />
         		<a id="pl.115.32"></a><var>115.32</var>to pay the county's share of the bonds issued under Minnesota Statutes, section 469.352.<br />
         		<a id="pl.115.33"></a><var>115.33</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br />
         		<a id="pl.115.34"></a><var>115.34</var>Nobles County and its chief clerical officer comply with Minnesota Statutes, section <br />
         		<a id="pl.115.35"></a><var>115.35</var>645.021, subdivisions 2 and 3.<br />
         		<br />
         		<a id="bill.7.7.0"></a><a id="pl.116.1"></a><var>116.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 7. <b>CITY OF LUVERNE LOCAL SALES TAX.</b><br />
         		<a id="pl.116.2"></a><var>116.2</var>(a) Notwithstanding Minnesota Statutes, sections 
         <statute_ref>297A.99</statute_ref>, 
         <statute_ref>297A.993</statute_ref>, and 
         <statute_ref>477A.016</statute_ref>, <br />
         		<a id="pl.116.3"></a><var>116.3</var>or any other contrary provision of law, ordinance, or city charter, the city of Luverne may, <br />
         		<a id="pl.116.4"></a><var>116.4</var>by ordinance, impose a sales and use tax of up to one-half of one percent for the purposes <br />
         		<a id="pl.116.5"></a><var>116.5</var>specified in paragraph (b). Except as otherwise provided in this section, the provisions <br />
         		<a id="pl.116.6"></a><var>116.6</var>of Minnesota Statutes, section 
         <statute_ref>297A.99, subdivisions </statute_ref>4 to 13, govern the imposition, <br />
         		<a id="pl.116.7"></a><var>116.7</var>administration, collection, and enforcement of the tax authorized under this paragraph.<br />
         		<a id="pl.116.8"></a><var>116.8</var>(b) The proceeds of any tax imposed under paragraph (a), less refunds and costs <br />
         		<a id="pl.116.9"></a><var>116.9</var>of collection, must be first used by the city to pay debt service on bonds issued under <br />
         		<a id="pl.116.10"></a><var>116.10</var>Minnesota Statutes, section 469.352, to fund the Lewis and Clark Regional Water System <br />
         		<a id="pl.116.11"></a><var>116.11</var>project. Revenues collected in any calendar year in excess of the city obligation to pay for <br />
         		<a id="pl.116.12"></a><var>116.12</var>debt service on bonds issued under Minnesota Statutes, section 469.352, may be retained <br />
         		<a id="pl.116.13"></a><var>116.13</var>by the city and used for funding other capital projects within the city.<br />
         		<a id="pl.116.14"></a><var>116.14</var>(c) A tax imposed under paragraph (a) expires when the city's share of bonds issued <br />
         		<a id="pl.116.15"></a><var>116.15</var>under Minnesota Statutes, section 469.352, to fund the Lewis and Clark Regional Water <br />
         		<a id="pl.116.16"></a><var>116.16</var>System Project has been made, or at an earlier time if approved by the city council. The <br />
         		<a id="pl.116.17"></a><var>116.17</var>tax must not terminate before the city council determines that revenues from this tax and <br />
         		<a id="pl.116.18"></a><var>116.18</var>any other revenue source the city dedicates are sufficient to pay the city share of debt <br />
         		<a id="pl.116.19"></a><var>116.19</var>service on bonds issued under Minnesota Statutes, section 469.352.<br />
         		<a id="pl.116.20"></a><var>116.20</var><b>EFFECTIVE DATE.</b>This section is effective the day after the governing body of <br />
         		<a id="pl.116.21"></a><var>116.21</var>the city of Luverne and its chief clerical officer comply with Minnesota Statutes, section <br />
         		<a id="pl.116.22"></a><var>116.22</var>645.021, subdivisions 2 and 3.<br />
         		<br />
         		<a id="bill.8.0.0"></a><div class="xtend_ce"><a id="pl.116.23"></a><var>116.23</var><b>ARTICLE 8</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.116.24"></a><var>116.24</var><b>MISCELLANEOUS</b><br />
            		
         </div><br />
         		<a id="bill.8.1.0"></a><a id="pl.116.25"></a><var>116.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. Minnesota Statutes 2013 Supplement, section 116V.03, is amended to read:<br />
         		<a id="pl.116.26"></a><var>116.26</var><b>116V.03 APPROPRIATION.</b><br />
         		<a id="pl.116.27"></a><var>116.27</var>$1,000,000 in fiscal year 2014 and each year thereafter is appropriated from the <br />
         		<a id="pl.116.28"></a><var>116.28</var>general fund to the commissioner of revenue for transfer to the agricultural project <br />
         		<a id="pl.116.29"></a><var>116.29</var>utilization account in the special revenue fund for the Agricultural Utilization Research <br />
         		<a id="pl.116.30"></a><var>116.30</var>Institute established under section 
         <statute_ref>116V.01</statute_ref>.<br />
         		<a id="pl.116.31"></a><var>116.31</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2014.<br />
         		<br />
         		<a id="bill.8.2.0"></a><a id="pl.116.32"></a><var>116.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. Minnesota Statutes 2012, section 161.14, is amended by adding a subdivision <br />
         		<a id="pl.116.33"></a><var>116.33</var>to read:<br />
         		<a id="pl.117.1"></a><var>117.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 77. <b>Old Cedar Avenue Bridge.</b> Minnesota state bridge number 3145, the <br />
         		<a id="pl.117.2"></a><var>117.2</var>Camelback bridge over the Minnesota River overflowage (referred to as Long Meadow <br />
         		<a id="pl.117.3"></a><var>117.3</var>Lake) constructed in 1920, is designated and named the "Old Cedar Avenue Bridge." This <br />
         		<a id="pl.117.4"></a><var>117.4</var>designation and name also applies to any renovation or reconstruction of the bridge and <br />
         		<a id="pl.117.5"></a><var>117.5</var>must be used in any publicly financed signage that refers to the bridge.<br />
         		<a id="pl.117.6"></a><var>117.6</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.8.3.0"></a><a id="pl.117.7"></a><var>117.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. Minnesota Statutes 2012, section 270C.72, subdivision 1, is amended to read:<br />
         		<a id="pl.117.8"></a><var>117.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Tax clearance required.</b> (a) The state or a political subdivision of <br />
         		<a id="pl.117.9"></a><var>117.9</var>the state may not issue, transfer, or renew, and must revoke, a license for the conduct of <br />
         		<a id="pl.117.10"></a><var>117.10</var>a profession, occupation, trade, or business, if the commissioner notifies the licensing <br />
         		<a id="pl.117.11"></a><var>117.11</var>authority that the applicant owes the state delinquent taxes payable to the commissioner, <br />
         		<a id="pl.117.12"></a><var>117.12</var>penalties, or interest. The commissioner may not notify the licensing authority unless the <br />
         		<a id="pl.117.13"></a><var>117.13</var>applicant taxpayer owes $500 or more in delinquent taxes, penalties, or interest, or has <br />
         		<a id="pl.117.14"></a><var>117.14</var>not filed returns. If the applicant taxpayer does not owe delinquent taxes, penalties, or <br />
         		<a id="pl.117.15"></a><var>117.15</var>interest, but has not filed returns, the commissioner may not notify the licensing authority <br />
         		<a id="pl.117.16"></a><var>117.16</var>unless the taxpayer has been given 90 days' written notice to file the returns or show <br />
         		<a id="pl.117.17"></a><var>117.17</var>that the returns are not required to be filed. <br />
         		<a id="pl.117.18"></a><var>117.18</var>(b) Within ten days after receipt of the notification from the commissioner under <br />
         		<a id="pl.117.19"></a><var>117.19</var>paragraph (a), the licensing authority must notify the license holder by certified mail of <br />
         		<a id="pl.117.20"></a><var>117.20</var>the potential revocation of the license for the applicable reason under paragraph (a). <br />
         		<a id="pl.117.21"></a><var>117.21</var>The notice must include a copy of the commissioner's notice to the licensing agency <br />
         		<a id="pl.117.22"></a><var>117.22</var>and information, in the form specified by the commissioner, on the licensee's option for <br />
         		<a id="pl.117.23"></a><var>117.23</var>receiving a tax clearance from the commissioner. The licensing authority must revoke the <br />
         		<a id="pl.117.24"></a><var>117.24</var>license 30 days after receiving the notice from the commissioner, unless it receives a tax <br />
         		<a id="pl.117.25"></a><var>117.25</var>clearance from the commissioner as provided in paragraph (c).<br />
         		<a id="pl.117.26"></a><var>117.26</var>(c) A licensing authority that has received a notice from the commissioner may <br />
         		<a id="pl.117.27"></a><var>117.27</var>issue, transfer, renew, or not revoke the applicant's license only if (a) (1) the commissioner <br />
         		<a id="pl.117.28"></a><var>117.28</var>issues a tax clearance certificate and (b) (2) the commissioner or the applicant forwards a <br />
         		<a id="pl.117.29"></a><var>117.29</var>copy of the clearance to the authority. The commissioner may issue a clearance certificate <br />
         		<a id="pl.117.30"></a><var>117.30</var>only if the applicant does not owe the state any uncontested delinquent taxes, penalties, or <br />
         		<a id="pl.117.31"></a><var>117.31</var>interest and has filed all required returns.<br />
         		<a id="pl.117.32"></a><var>117.32</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2014.<br />
         		<br />
         		<a id="bill.8.4.0"></a><a id="pl.117.33"></a><var>117.33</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 4. Minnesota Statutes 2012, section 270C.72, subdivision 3, is amended to read:<br />
         		<a id="pl.118.1"></a><var>118.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Notice and hearing.</b> (a) The commissioner, on notifying a licensing <br />
         		<a id="pl.118.2"></a><var>118.2</var>authority pursuant to subdivision 1 not to issue, transfer, or renew a license, must send a <br />
         		<a id="pl.118.3"></a><var>118.3</var>copy of the notice to the applicant. If the applicant requests, in writing, within 30 days <br />
         		<a id="pl.118.4"></a><var>118.4</var>of the date of the notice a hearing, a contested case hearing must be held. The hearing <br />
         		<a id="pl.118.5"></a><var>118.5</var>must be held within 45 days of the date the commissioner refers the case to the Office of <br />
         		<a id="pl.118.6"></a><var>118.6</var>Administrative Hearings. Notwithstanding any law to the contrary, the applicant must be <br />
         		<a id="pl.118.7"></a><var>118.7</var>served with 20 days' notice in writing specifying the time and place of the hearing and the <br />
         		<a id="pl.118.8"></a><var>118.8</var>allegations against the applicant. The notice may be served personally or by mail.<br />
         		<a id="pl.118.9"></a><var>118.9</var>(b) (a) Prior to notifying a licensing authority pursuant to subdivision 1 to revoke a <br />
         		<a id="pl.118.10"></a><var>118.10</var>license, the commissioner must send a notice to the applicant of the commissioner's intent <br />
         		<a id="pl.118.11"></a><var>118.11</var>to require revocation of the license and of the applicant's right to a hearing under paragraph <br />
         		<a id="pl.118.12"></a><var>118.12</var>(a). If the applicant requests a hearing in writing within 30 days of the date of the notice, a <br />
         		<a id="pl.118.13"></a><var>118.13</var>contested case hearing must be held. The hearing must be held within 45 days of the date <br />
         		<a id="pl.118.14"></a><var>118.14</var>the commissioner refers the case to the Office of Administrative Hearings. Notwithstanding <br />
         		<a id="pl.118.15"></a><var>118.15</var>any law to the contrary, the applicant must be served with 20 days' notice in writing <br />
         		<a id="pl.118.16"></a><var>118.16</var>specifying the time and place of the hearing and the allegations against the applicant. The <br />
         		<a id="pl.118.17"></a><var>118.17</var>notice may be served personally or by mail. A license is subject to revocation when 30 <br />
         		<a id="pl.118.18"></a><var>118.18</var>days have passed following the date of the notice in this paragraph without the applicant <br />
         		<a id="pl.118.19"></a><var>118.19</var>requesting a hearing, or, if a hearing is timely requested, upon final determination of the <br />
         		<a id="pl.118.20"></a><var>118.20</var>hearing under section 
         <statute_ref>14.62, subdivision 1</statute_ref>. A license shall be revoked by the licensing <br />
         		<a id="pl.118.21"></a><var>118.21</var>authority within 30 days after receiving notice from the commissioner to revoke.<br />
         		<a id="pl.118.22"></a><var>118.22</var>(b) The commissioner may notify a licensing authority under subdivision 1 only <br />
         		<a id="pl.118.23"></a><var>118.23</var>after the requirements of paragraph (a) have been satisfied.<br />
         		<a id="pl.118.24"></a><var>118.24</var>(c) A hearing under this subdivision is in lieu of any other hearing or proceeding <br />
         		<a id="pl.118.25"></a><var>118.25</var>provided by law arising from any action taken under subdivision 1.<br />
         		<a id="pl.118.26"></a><var>118.26</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2014.<br />
         		<br />
         		<a id="bill.8.5.0"></a><a id="pl.118.27"></a><var>118.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 5. <b>CARLTON COUNTY; LEVY FOR SOIL AND WATER CONSERVATION </b><br />
         		<a id="pl.118.28"></a><var>118.28</var><b>DISTRICT.</b><br />
         		<a id="pl.118.29"></a><var>118.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Definitions.</b> (a) For the purposes of this section, "district" means <br />
         		<a id="pl.118.30"></a><var>118.30</var>the Carlton County Soil and Water Conservation District.<br />
         		<a id="pl.118.31"></a><var>118.31</var>(b) For the purposes of this section, "county" means Carlton County.<br />
         		<a id="pl.118.32"></a><var>118.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Special project levy.</b> Notwithstanding any law to the contrary, the county <br />
         		<a id="pl.118.33"></a><var>118.33</var>may levy ad valorem property taxes on taxable property within the area of its jurisdiction <br />
         		<a id="pl.118.34"></a><var>118.34</var>for the purposes specified in subdivision 3. The proceeds of the tax must be placed in a <br />
         		<a id="pl.119.1"></a><var>119.1</var>separate account and used only for the purposes specified in subdivision 3. The amount <br />
         		<a id="pl.119.2"></a><var>119.2</var>levied is separate from any other amount to be levied for the district by the county under <br />
         		<a id="pl.119.3"></a><var>119.3</var>Minnesota Statutes, section 103C.331, subdivision 16.<br />
         		<a id="pl.119.4"></a><var>119.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Purpose; limit on levy amount.</b> (a) The county must allocate the <br />
         		<a id="pl.119.5"></a><var>119.5</var>proceeds of any tax imposed under this section to the district solely to pay principal, <br />
         		<a id="pl.119.6"></a><var>119.6</var>interest, and any associated costs of obtaining and servicing a loan to finance the planning, <br />
         		<a id="pl.119.7"></a><var>119.7</var>constructing, and equipping of an office and storage facility for the district.<br />
         		<a id="pl.119.8"></a><var>119.8</var>(b) The maximum amount of the levy in any year may not exceed the amount <br />
         		<a id="pl.119.9"></a><var>119.9</var>necessary, after deduction of any amount remaining from the levy imposed in prior years, <br />
         		<a id="pl.119.10"></a><var>119.10</var>to pay 105 percent of the principal and interest due in the following calendar year and <br />
         		<a id="pl.119.11"></a><var>119.11</var>through July 1 of the next year.<br />
         		<a id="pl.119.12"></a><var>119.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Expiration.</b> (a) This section expires:<br />
         		<a id="pl.119.13"></a><var>119.13</var>(1) following the final payment of principal, interest, and any associated costs of the <br />
         		<a id="pl.119.14"></a><var>119.14</var>loan under subdivision 3, or any loan or other financing that refinanced the original loan; or<br />
         		<a id="pl.119.15"></a><var>119.15</var>(2) if the district does not obtain the loan under subdivision 3 prior to May 1, 2017.<br />
         		<a id="pl.119.16"></a><var>119.16</var>(b) Upon expiration of this section, any amount remaining in the account created <br />
         		<a id="pl.119.17"></a><var>119.17</var>under subdivision 2 must be transferred to the general account of the county and used to <br />
         		<a id="pl.119.18"></a><var>119.18</var>reduce any amount to be levied for the district by the county under Minnesota Statutes, <br />
         		<a id="pl.119.19"></a><var>119.19</var>section 103C.331, subdivision 16, for the following year, and any subsequent years, until <br />
         		<a id="pl.119.20"></a><var>119.20</var>the amount remaining is exhausted.<br />
         		<a id="pl.119.21"></a><var>119.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following compliance by <br />
         		<a id="pl.119.22"></a><var>119.22</var>Carlton County with Minnesota Statutes, section 645.021, subdivisions 2 and 3.<br />
         		<br />
         		<a id="bill.8.6.0"></a><a id="pl.119.23"></a><var>119.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 6. <b>ADMINISTRATIVE APPROPRIATIONS.</b><br />
         		<a id="pl.119.24"></a><var>119.24</var>(a) $700,000 in fiscal year 2014 and $1,800,000 in fiscal year 2015 are appropriated <br />
         		<a id="pl.119.25"></a><var>119.25</var>from the general fund to the commissioner of revenue for administering this act. The <br />
         		<a id="pl.119.26"></a><var>119.26</var>funding base for this appropriation in fiscal year 2016 is $1,180,000 and is available to be <br />
         		<a id="pl.119.27"></a><var>119.27</var>spent until June 30, 2017. The funding base for fiscal year 2017 is $0.<br />
         		<a id="pl.119.28"></a><var>119.28</var>(b) $40,000 in fiscal year 2015 is appropriated from the general fund to the <br />
         		<a id="pl.119.29"></a><var>119.29</var>commissioner of public safety for administration of the volunteer retention stipend aid <br />
         		<a id="pl.119.30"></a><var>119.30</var>pilot program in article 1, section 1. The funding base for this appropriation in fiscal <br />
         		<a id="pl.119.31"></a><var>119.31</var>year 2016 is $18,000 and is available to be spent until June 30, 2018. The funding base <br />
         		<a id="pl.119.32"></a><var>119.32</var>for fiscal year 2017 is $0.<br />
         		<a id="pl.119.33"></a><var>119.33</var>(c) $400,000 in fiscal year 2015 is appropriated from the general fund to the <br />
         		<a id="pl.119.34"></a><var>119.34</var>commissioner of natural resources for the purpose of assisting counties in developing plans <br />
         		<a id="pl.120.1"></a><var>120.1</var>and providing training for watercraft inspectors to facilitate the implementation of article <br />
         		<a id="pl.120.2"></a><var>120.2</var>1, section 11. This is a onetime appropriation and does not become part of the base budget.<br />
         		<a id="pl.120.3"></a><var>120.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.0.0"></a><div class="xtend_ce"><a id="pl.120.4"></a><var>120.4</var><b>ARTICLE 9</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.120.5"></a><var>120.5</var><b>UNSESSION</b><br />
            		
         </div><br />
         		<a id="bill.9.1.0"></a><a id="pl.120.6"></a><var>120.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. Minnesota Statutes 2012, section 16D.02, subdivision 3, is amended to read:<br />
         		<a id="pl.120.7"></a><var>120.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Debt.</b> "Debt" means an amount owed to the state directly, or through a <br />
         		<a id="pl.120.8"></a><var>120.8</var>state agency, on account of a fee, duty, lease, direct loan, loan insured or guaranteed by <br />
         		<a id="pl.120.9"></a><var>120.9</var>the state, rent, service, sale of real or personal property, overpayment, fine, assessment, <br />
         		<a id="pl.120.10"></a><var>120.10</var>penalty, restitution, damages, interest, tax, bail bond, forfeiture, reimbursement, liability <br />
         		<a id="pl.120.11"></a><var>120.11</var>owed, an assignment to the state including assignments under section 
         <statute_ref>256.741</statute_ref>, the Social <br />
         		<a id="pl.120.12"></a><var>120.12</var>Security Act, or other state or federal law, recovery of costs incurred by the state, or any <br />
         		<a id="pl.120.13"></a><var>120.13</var>other source of indebtedness to the state. Debt also includes amounts owed to individuals <br />
         		<a id="pl.120.14"></a><var>120.14</var>as a result of civil, criminal, or administrative action brought by the state or a state agency <br />
         		<a id="pl.120.15"></a><var>120.15</var>pursuant to its statutory authority or for which the state or state agency acts in a fiduciary <br />
         		<a id="pl.120.16"></a><var>120.16</var>capacity in providing collection services in accordance with the regulations adopted under <br />
         		<a id="pl.120.17"></a><var>120.17</var>the Social Security Act at Code of Federal Regulations, title 45, section 302.33. When <br />
         		<a id="pl.120.18"></a><var>120.18</var>the commissioner provides collection services pursuant to a debt qualification plan to a <br />
         		<a id="pl.120.19"></a><var>120.19</var>referring agency, debt also includes an amount owed to the courts, local government <br />
         		<a id="pl.120.20"></a><var>120.20</var>units, Minnesota state colleges and universities governed by the Board of Trustees of the <br />
         		<a id="pl.120.21"></a><var>120.21</var>Minnesota State Colleges and Universities, or University of Minnesota.<br />
         		<a id="pl.120.22"></a><var>120.22</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.2.0"></a><a id="pl.120.23"></a><var>120.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. Minnesota Statutes 2012, section 16D.02, subdivision 6, is amended to read:<br />
         		<a id="pl.120.24"></a><var>120.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <b>Referring agency.</b> "Referring agency" means a state agency, local <br />
         		<a id="pl.120.25"></a><var>120.25</var>government unit, Minnesota state colleges and universities governed by the Board of <br />
         		<a id="pl.120.26"></a><var>120.26</var>Trustees of the Minnesota State Colleges and Universities, University of Minnesota, or a <br />
         		<a id="pl.120.27"></a><var>120.27</var>court, that has entered into a debt qualification plan an agreement with the commissioner <br />
         		<a id="pl.120.28"></a><var>120.28</var>to refer debts to the commissioner for collection.<br />
         		<a id="pl.120.29"></a><var>120.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.3.0"></a><a id="pl.120.30"></a><var>120.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. Minnesota Statutes 2012, section 16D.04, subdivision 3, is amended to read:<br />
         		<a id="pl.121.1"></a><var>121.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Services.</b> The commissioner shall provide collection services for a state <br />
         		<a id="pl.121.2"></a><var>121.2</var>agency, and may provide for collection services for a court, in accordance with the terms and <br />
         		<a id="pl.121.3"></a><var>121.3</var>conditions of a signed debt qualification plan referring agencies other than state agencies.<br />
         		<a id="pl.121.4"></a><var>121.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.4.0"></a><a id="pl.121.5"></a><var>121.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 4. Minnesota Statutes 2012, section 16D.04, subdivision 4, is amended to read:<br />
         		<a id="pl.121.6"></a><var>121.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Authority to contract.</b> The commissioners commissioner of revenue and <br />
         		<a id="pl.121.7"></a><var>121.7</var>management and budget may contract with credit bureaus, private collection agencies, and <br />
         		<a id="pl.121.8"></a><var>121.8</var>other entities as necessary for the collection of debts. A private collection agency acting <br />
         		<a id="pl.121.9"></a><var>121.9</var>under a contract with the commissioner of revenue or management and budget is subject <br />
         		<a id="pl.121.10"></a><var>121.10</var>to sections 
         <statute_ref>332.31</statute_ref> to 
         <statute_ref>332.45</statute_ref>, except that the private collection agency may indicate that it <br />
         		<a id="pl.121.11"></a><var>121.11</var>is acting under a contract with the state. The commissioner may not delegate the powers <br />
         		<a id="pl.121.12"></a><var>121.12</var>provided under section 
         <statute_ref>16D.08</statute_ref> to any nongovernmental entity.<br />
         		<a id="pl.121.13"></a><var>121.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.5.0"></a><a id="pl.121.14"></a><var>121.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 5. Minnesota Statutes 2012, section 16D.07, is amended to read:<br />
         		<a id="pl.121.15"></a><var>121.15</var><b>16D.07 NOTICE TO DEBTOR.</b><br />
         		<a id="pl.121.16"></a><var>121.16</var>The referring agency shall send notice to the debtor by United States mail or <br />
         		<a id="pl.121.17"></a><var>121.17</var>personal delivery at the debtor's last known address at least 20 days before the debt is <br />
         		<a id="pl.121.18"></a><var>121.18</var>referred to the commissioner. The notice must state the nature and amount of the debt, <br />
         		<a id="pl.121.19"></a><var>121.19</var>identify to whom the debt is owed, and inform the debtor of the remedies available under <br />
         		<a id="pl.121.20"></a><var>121.20</var>this chapter. The referring agency shall advise the debtor of collection costs imposed <br />
         		<a id="pl.121.21"></a><var>121.21</var>under section 16D.11 and of the debtor's right to cancellation of collection costs under <br />
         		<a id="pl.121.22"></a><var>121.22</var>section 16D.11, subdivision 3.<br />
         		<a id="pl.121.23"></a><var>121.23</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.6.0"></a><a id="pl.121.24"></a><var>121.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 6. Minnesota Statutes 2012, section 16D.11, subdivision 1, is amended to read:<br />
         		<a id="pl.121.25"></a><var>121.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Imposition.</b> As determined by the commissioner of management and <br />
         		<a id="pl.121.26"></a><var>121.26</var>budget revenue, collection costs shall be added to the debts referred to the commissioner <br />
         		<a id="pl.121.27"></a><var>121.27</var>or private collection agency for collection. Collection costs are collectible by the <br />
         		<a id="pl.121.28"></a><var>121.28</var>commissioner or private agency from the debtor at the same time and in the same <br />
         		<a id="pl.121.29"></a><var>121.29</var>manner as the referred debt. The referring agency shall advise the debtor of collection <br />
         		<a id="pl.121.30"></a><var>121.30</var>costs under this section and the debtor's right to cancellation of collection costs under <br />
         		<a id="pl.121.31"></a><var>121.31</var>subdivision 3 at the time the agency sends notice to the debtor under section 
         <statute_ref>16D.07</statute_ref>.<br />
         		<a id="pl.122.1"></a><var>122.1</var> If the commissioner or private agency collects an amount less than the total due, the <br />
         		<a id="pl.122.2"></a><var>122.2</var>payment is applied proportionally to collection costs and the underlying debt unless <br />
         		<a id="pl.122.3"></a><var>122.3</var>the commissioner of management and budget has waived this requirement for certain <br />
         		<a id="pl.122.4"></a><var>122.4</var>categories of debt pursuant to the department's internal guidelines. Collection costs <br />
         		<a id="pl.122.5"></a><var>122.5</var>collected by the commissioner under this subdivision or retained under subdivision 6 shall <br />
         		<a id="pl.122.6"></a><var>122.6</var>be deposited in the general fund as nondedicated receipts. Collection costs collected by <br />
         		<a id="pl.122.7"></a><var>122.7</var>private agencies are appropriated to the referring agency to pay the collection fees charged <br />
         		<a id="pl.122.8"></a><var>122.8</var>by the private agency. Collections of collection costs in excess of collection agency fees <br />
         		<a id="pl.122.9"></a><var>122.9</var>must be deposited in the general fund as nondedicated receipts.<br />
         		<a id="pl.122.10"></a><var>122.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.7.0"></a><a id="pl.122.11"></a><var>122.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 7. Minnesota Statutes 2012, section 16D.11, subdivision 3, is amended to read:<br />
         		<a id="pl.122.12"></a><var>122.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Cancellation.</b> Collection costs imposed under subdivision 1 shall be <br />
         		<a id="pl.122.13"></a><var>122.13</var>canceled and subtracted from the amount due if:<br />
         		<a id="pl.122.14"></a><var>122.14</var>(1) the debtor's household income as defined in section 
         <statute_ref>290A.03, subdivision 5</statute_ref>, <br />
         		<a id="pl.122.15"></a><var>122.15</var>excluding the exemption subtractions in subdivision 3, paragraph (3) of that section, for <br />
         		<a id="pl.122.16"></a><var>122.16</var>the 12 months preceding the date of referral is less than twice the annual federal poverty <br />
         		<a id="pl.122.17"></a><var>122.17</var>guideline under United States Code, title 42, section 9902, subsection (2);<br />
         		<a id="pl.122.18"></a><var>122.18</var>(2) within 60 days after the first contact with the debtor by the enterprise<br />
         		<a id="pl.122.19"></a><var>122.19</var> commissioner or collection agency, the debtor establishes reasonable cause for the failure <br />
         		<a id="pl.122.20"></a><var>122.20</var>to pay the debt prior to referral of the debt to the enterprise commissioner;<br />
         		<a id="pl.122.21"></a><var>122.21</var>(3) a good faith dispute as to the legitimacy or the amount of the debt is made, <br />
         		<a id="pl.122.22"></a><var>122.22</var>and payment is remitted or a payment agreement is entered into within 30 days after <br />
         		<a id="pl.122.23"></a><var>122.23</var>resolution of the dispute;<br />
         		<a id="pl.122.24"></a><var>122.24</var>(4) good faith litigation occurs and the debtor's position is substantially justified, and <br />
         		<a id="pl.122.25"></a><var>122.25</var>if the debtor does not totally prevail, the debt is paid or a payment agreement is entered <br />
         		<a id="pl.122.26"></a><var>122.26</var>into within 30 days after the judgment becomes final and nonappealable; or<br />
         		<a id="pl.122.27"></a><var>122.27</var>(5) collection costs have been added by the referring agency and are included in <br />
         		<a id="pl.122.28"></a><var>122.28</var>the amount of the referred debt.<br />
         		<a id="pl.122.29"></a><var>122.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.8.0"></a><a id="pl.122.30"></a><var>122.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 8. Minnesota Statutes 2012, section 16D.11, subdivision 7, is amended to read:<br />
         		<a id="pl.122.31"></a><var>122.31</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Adjustment of rate.</b> By June 1 of each year, the commissioner shall <br />
         		<a id="pl.122.32"></a><var>122.32</var>determine the rate of collection costs for debts referred to the enterprise commissioner<br />
         		<a id="pl.122.33"></a><var>122.33</var> during the next fiscal year. The rate is a percentage of the debts in an amount that most <br />
         		<a id="pl.123.1"></a><var>123.1</var>nearly equals the costs of the enterprise commissioner necessary to process and collect <br />
         		<a id="pl.123.2"></a><var>123.2</var>referred debts under this chapter. In no event shall the rate of the collection costs exceed <br />
         		<a id="pl.123.3"></a><var>123.3</var>25 percent of the debt. Determination of the rate of collection costs under this section is <br />
         		<a id="pl.123.4"></a><var>123.4</var>not subject to the fee setting requirements of section 
         <statute_ref>16A.1283</statute_ref>.<br />
         		<a id="pl.123.5"></a><var>123.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.9.0"></a><a id="pl.123.6"></a><var>123.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 9. Minnesota Statutes 2012, section 84A.20, subdivision 2, is amended to read:<br />
         		<a id="pl.123.7"></a><var>123.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>County proposal to state.</b> Under certain conditions, The board of county <br />
         		<a id="pl.123.8"></a><var>123.8</var>commissioners of any county may by resolution propose to the state that one or more <br />
         		<a id="pl.123.9"></a><var>123.9</var>areas in the county be taken over by the state for afforestation, reforestation, flood control <br />
         		<a id="pl.123.10"></a><var>123.10</var>projects, or other state purposes. The projects are to be managed, controlled, and used for <br />
         		<a id="pl.123.11"></a><var>123.11</var>the purposes in subdivision 1 on lands to be acquired by the state within the projects, as set <br />
         		<a id="pl.123.12"></a><var>123.12</var>forth in sections 
         <statute_ref>84A.20</statute_ref> to 
         <statute_ref>84A.30</statute_ref>. The county board may propose this if (1) the county <br />
         		<a id="pl.123.13"></a><var>123.13</var>contains lands suitable for the purposes in subdivision 1, (2) on January 1, 1931, the taxes <br />
         		<a id="pl.123.14"></a><var>123.14</var>on more than 35 percent of the taxable land in the county are delinquent, (3) on January 1, <br />
         		<a id="pl.123.15"></a><var>123.15</var>1931, the county's bonded ditch indebtedness, including accrued interest, equals or exceeds <br />
         		<a id="pl.123.16"></a><var>123.16</var>nine percent of the assessed valuation of the county, exclusive of money and credits.<br />
         		<a id="pl.123.17"></a><var>123.17</var>The area taken over must include lands that have been assessed for all or part of <br />
         		<a id="pl.123.18"></a><var>123.18</var>the cost of the establishment and construction of public drainage ditches under state law, <br />
         		<a id="pl.123.19"></a><var>123.19</var>and on which the assessments or installments are delinquent. A certified copy of the <br />
         		<a id="pl.123.20"></a><var>123.20</var>county board's resolution must be filed with the department and considered and acted <br />
         		<a id="pl.123.21"></a><var>123.21</var>upon by the department. If approved by the department, it must then be submitted to, <br />
         		<a id="pl.123.22"></a><var>123.22</var>considered, and acted upon by the executive council. If approved by the Executive <br />
         		<a id="pl.123.23"></a><var>123.23</var>Council, the proposition must be formally accepted by the governor. Acceptance must be <br />
         		<a id="pl.123.24"></a><var>123.24</var>communicated in writing to and filed with the county auditor.<br />
         		<a id="pl.123.25"></a><var>123.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.10.0"></a><a id="pl.123.26"></a><var>123.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 10. Minnesota Statutes 2012, section 84A.31, subdivision 2, is amended to read:<br />
         		<a id="pl.123.27"></a><var>123.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>County proposal to state.</b> Under certain conditions, The board of county <br />
         		<a id="pl.123.28"></a><var>123.28</var>commissioners of any county may by resolution propose that the state take over part of the <br />
         		<a id="pl.123.29"></a><var>123.29</var>tax-delinquent lands in the county. The board may propose this if:<br />
         		<a id="pl.123.30"></a><var>123.30</var>(1) the county contains land suitable for the purposes in subdivision 1;.<br />
         		<a id="pl.123.31"></a><var>123.31</var>(2) on January 1, 1933, the taxes on more than 25 percent of the acreage of the lands <br />
         		<a id="pl.123.32"></a><var>123.32</var>in a town in the county are delinquent, as shown by its tax books;<br />
         		<a id="pl.124.1"></a><var>124.1</var>(3) on January 1, 1933, the taxes or ditch assessments on more than 50 percent of the <br />
         		<a id="pl.124.2"></a><var>124.2</var>acreage of the lands to be taken over are delinquent, as shown by the county's tax books; and<br />
         		<a id="pl.124.3"></a><var>124.3</var>(4) on January 1, 1933, the bonded ditch indebtedness of the county equals or <br />
         		<a id="pl.124.4"></a><var>124.4</var>exceeds 15 percent of the assessed value of the county for 1932 as fixed by the Minnesota <br />
         		<a id="pl.124.5"></a><var>124.5</var>Tax Commission, exclusive of money and credits.<br />
         		<a id="pl.124.6"></a><var>124.6</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.11.0"></a><a id="pl.124.7"></a><var>124.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 11. Minnesota Statutes 2012, section 115B.49, subdivision 4, is amended to read:<br />
         		<a id="pl.124.8"></a><var>124.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Registration; fees.</b> (a) The owner or operator of a dry cleaning facility <br />
         		<a id="pl.124.9"></a><var>124.9</var>shall register on or before October 1 of each year with the commissioner of revenue in <br />
         		<a id="pl.124.10"></a><var>124.10</var>a manner prescribed by the commissioner of revenue and pay a registration fee for the <br />
         		<a id="pl.124.11"></a><var>124.11</var>facility. The amount of the fee is:<br />
         		<a id="pl.124.12"></a><var>124.12</var>(1) $500, for facilities with a full-time equivalence of fewer than five;<br />
         		<a id="pl.124.13"></a><var>124.13</var>(2) $1,000, for facilities with a full-time equivalence of five to ten; and<br />
         		<a id="pl.124.14"></a><var>124.14</var>(3) $1,500, for facilities with a full-time equivalence of more than ten.<br />
         		<a id="pl.124.15"></a><var>124.15</var>The registration fee must be paid on or before October 18 or the owner or operator <br />
         		<a id="pl.124.16"></a><var>124.16</var>of a dry cleaning facility may elect to pay the fee in equal installments. Installment <br />
         		<a id="pl.124.17"></a><var>124.17</var>payments must be paid on or before October 18, on or before January 18, on or before <br />
         		<a id="pl.124.18"></a><var>124.18</var>April 18, and on or before June 18. All payments made after October 18 bear interest <br />
         		<a id="pl.124.19"></a><var>124.19</var>at the rate specified in section 
         <statute_ref>270C.40</statute_ref>.<br />
         		<a id="pl.124.20"></a><var>124.20</var>(b) A person who sells dry cleaning solvents for use by dry cleaning facilities in <br />
         		<a id="pl.124.21"></a><var>124.21</var>the state shall collect and remit to the commissioner of revenue in a the same manner <br />
         		<a id="pl.124.22"></a><var>124.22</var>prescribed by the commissioner of revenue, on or before the 20th day of the month <br />
         		<a id="pl.124.23"></a><var>124.23</var>following the month in which the sales of dry cleaning solvents are made for the taxes <br />
         		<a id="pl.124.24"></a><var>124.24</var>imposed under chapter 297A, a fee of:<br />
         		<a id="pl.124.25"></a><var>124.25</var>(1) $3.50 for each gallon of perchloroethylene sold for use by dry cleaning facilities <br />
         		<a id="pl.124.26"></a><var>124.26</var>in the state;<br />
         		<a id="pl.124.27"></a><var>124.27</var>(2) 70 cents for each gallon of hydrocarbon-based dry cleaning solvent sold for use <br />
         		<a id="pl.124.28"></a><var>124.28</var>by dry cleaning facilities in the state; and<br />
         		<a id="pl.124.29"></a><var>124.29</var>(3) 35 cents for each gallon of other nonaqueous solvents sold for use by dry <br />
         		<a id="pl.124.30"></a><var>124.30</var>cleaning facilities in the state.<br />
         		<a id="pl.124.31"></a><var>124.31</var>(c) The audit, assessment, appeal, collection, enforcement, and administrative <br />
         		<a id="pl.124.32"></a><var>124.32</var>provisions of chapters 270C and 289A apply to the fee imposed by this subdivision. To <br />
         		<a id="pl.124.33"></a><var>124.33</var>enforce this subdivision, the commissioner of revenue may grant extensions to file returns <br />
         		<a id="pl.124.34"></a><var>124.34</var>and pay fees, impose penalties and interest on the annual registration fee under paragraph <br />
         		<a id="pl.124.35"></a><var>124.35</var>(a) and the monthly fee under paragraph (b), and abate penalties and interest in the manner <br />
         		<a id="pl.125.1"></a><var>125.1</var>provided in chapters 270C and 289A. The penalties and interest imposed on taxes under <br />
         		<a id="pl.125.2"></a><var>125.2</var>chapter 297A apply to the fees imposed under this subdivision. Disclosure of data collected <br />
         		<a id="pl.125.3"></a><var>125.3</var>by the commissioner of revenue under this subdivision is governed by chapter 270B.<br />
         		<a id="pl.125.4"></a><var>125.4</var><b>EFFECTIVE DATE.</b>This section is effective for fees due after June 30, 2014.<br />
         		<br />
         		<a id="bill.9.12.0"></a><a id="pl.125.5"></a><var>125.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 12. Minnesota Statutes 2012, section 163.06, subdivision 1, is amended to read:<br />
         		<a id="pl.125.6"></a><var>125.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Levy.</b> The county board of any county in which there are unorganized <br />
         		<a id="pl.125.7"></a><var>125.7</var>townships may levy a tax for road and bridge purposes upon all the real and personal <br />
         		<a id="pl.125.8"></a><var>125.8</var>property in such unorganized townships, exclusive of money and credits taxed under the <br />
         		<a id="pl.125.9"></a><var>125.9</var>provisions of chapter 285.<br />
         		<a id="pl.125.10"></a><var>125.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.13.0"></a><a id="pl.125.11"></a><var>125.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 13. Minnesota Statutes 2012, section 270.11, subdivision 1, is amended to read:<br />
         		<a id="pl.125.12"></a><var>125.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>To act as State Board of Equalization.</b> The commissioner of <br />
         		<a id="pl.125.13"></a><var>125.13</var>revenue shall have and exercise all the rights, powers and authority by law vested in the <br />
         		<a id="pl.125.14"></a><var>125.14</var>State Board of Equalization, which board of equalization is hereby continued, with full <br />
         		<a id="pl.125.15"></a><var>125.15</var>power and authority to review, modify, and revise all of the acts and proceedings of the <br />
         		<a id="pl.125.16"></a><var>125.16</var>commissioner in so far as they relate to the equalization and valuation of property assessed <br />
         		<a id="pl.125.17"></a><var>125.17</var>for taxation, as prescribed by section 
         <statute_ref>270.12</statute_ref>.<br />
         		<a id="pl.125.18"></a><var>125.18</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.14.0"></a><a id="pl.125.19"></a><var>125.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 14. Minnesota Statutes 2012, section 270.12, subdivision 2, is amended to read:<br />
         		<a id="pl.125.20"></a><var>125.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Meeting dates; duties.</b> The board shall meet annually between April 15 <br />
         		<a id="pl.125.21"></a><var>125.21</var>and June 30 at the office of the commissioner of revenue and examine and compare the <br />
         		<a id="pl.125.22"></a><var>125.22</var>returns of the assessment of the property in the several counties, and equalize the same so <br />
         		<a id="pl.125.23"></a><var>125.23</var>that all the taxable property in the state shall be assessed at its market value, subject to <br />
         		<a id="pl.125.24"></a><var>125.24</var>the following rules:<br />
         		<a id="pl.125.25"></a><var>125.25</var>(1) The board shall add to or deduct from the aggregate valuation of the real property <br />
         		<a id="pl.125.26"></a><var>125.26</var>of every county, which the board believes to be valued below or above its market value in <br />
         		<a id="pl.125.27"></a><var>125.27</var>money, such percent as will bring the same to its market value in money;<br />
         		<a id="pl.125.28"></a><var>125.28</var>(2) The board shall deduct from the aggregate valuation of the real property of every <br />
         		<a id="pl.125.29"></a><var>125.29</var>county, which the board believes to be valued above its market value in money, such <br />
         		<a id="pl.125.30"></a><var>125.30</var>percent as will reduce the same to its market value in money;<br />
         		<a id="pl.125.31"></a><var>125.31</var>(3) (2) If the board believes the valuation for a part of a class determined by a range <br />
         		<a id="pl.125.32"></a><var>125.32</var>of market value under clause (8) (6) or otherwise, a class, or classes of the real property of <br />
         		<a id="pl.126.1"></a><var>126.1</var>any town or district in any county, or the valuation for a part of a class, a class, or classes <br />
         		<a id="pl.126.2"></a><var>126.2</var>of the real property of any county not in towns or cities, should be raised or reduced, <br />
         		<a id="pl.126.3"></a><var>126.3</var>without raising or reducing the other real property of such county, or without raising or <br />
         		<a id="pl.126.4"></a><var>126.4</var>reducing it in the same ratio, the board may add to, or take from, the valuation of a part of <br />
         		<a id="pl.126.5"></a><var>126.5</var>a class, a class, or classes in any one or more of such towns or cities, or of the property not <br />
         		<a id="pl.126.6"></a><var>126.6</var>in towns or cities, such percent as the board believes will raise or reduce the same to its <br />
         		<a id="pl.126.7"></a><var>126.7</var>market value in money;<br />
         		<a id="pl.126.8"></a><var>126.8</var>(4) (3) The board shall add to or take from the aggregate valuation of any part of a <br />
         		<a id="pl.126.9"></a><var>126.9</var>class, a class, or classes of personal property of any county, town, or city, which the <br />
         		<a id="pl.126.10"></a><var>126.10</var>board believes to be valued below or above the market value thereof, such percent as will <br />
         		<a id="pl.126.11"></a><var>126.11</var>raise the same to its market value in money;<br />
         		<a id="pl.126.12"></a><var>126.12</var>(5) The board shall take from the aggregate valuation of any part of a class, a class, <br />
         		<a id="pl.126.13"></a><var>126.13</var>or classes of personal property in any county, town or city, which the board believes to <br />
         		<a id="pl.126.14"></a><var>126.14</var>be valued above the market value thereof, such percent as will reduce the same to its <br />
         		<a id="pl.126.15"></a><var>126.15</var>market value in money;<br />
         		<a id="pl.126.16"></a><var>126.16</var>(6) (4) The board shall not reduce the aggregate valuation of all the property of the <br />
         		<a id="pl.126.17"></a><var>126.17</var>state, as returned by the several county auditors, more than one percent on the whole <br />
         		<a id="pl.126.18"></a><var>126.18</var>valuation thereof;<br />
         		<a id="pl.126.19"></a><var>126.19</var>(7) (5) When it would be of assistance in equalizing values the board may require any <br />
         		<a id="pl.126.20"></a><var>126.20</var>county auditor to furnish statements showing assessments of real and personal property <br />
         		<a id="pl.126.21"></a><var>126.21</var>of any individuals, firms, or corporations within the county. The board shall consider <br />
         		<a id="pl.126.22"></a><var>126.22</var>and equalize such assessments and may increase the assessment of individuals, firms, or <br />
         		<a id="pl.126.23"></a><var>126.23</var>corporations above the amount returned by the county board of equalization when it shall <br />
         		<a id="pl.126.24"></a><var>126.24</var>appear to be undervalued, first giving notice to such persons of the intention of the board <br />
         		<a id="pl.126.25"></a><var>126.25</var>so to do, which notice shall fix a time and place of hearing. The board shall not decrease <br />
         		<a id="pl.126.26"></a><var>126.26</var>any such assessment below the valuation placed by the county board of equalization;<br />
         		<a id="pl.126.27"></a><var>126.27</var>(8) (6) In equalizing values pursuant to this section, the board shall utilize a 12-month <br />
         		<a id="pl.126.28"></a><var>126.28</var>assessment/sales ratio study conducted by the Department of Revenue containing only <br />
         		<a id="pl.126.29"></a><var>126.29</var>sales that are filed in the county auditor's office under section 
         <statute_ref>272.115</statute_ref>, by November 1 of <br />
         		<a id="pl.126.30"></a><var>126.30</var>the previous year and that occurred between October 1 of the year immediately preceding <br />
         		<a id="pl.126.31"></a><var>126.31</var>the previous year and September 30 of the previous year.<br />
         		<a id="pl.126.32"></a><var>126.32</var>The assessment/sales ratio study may separate the values of residential property <br />
         		<a id="pl.126.33"></a><var>126.33</var>into market value categories. The board may adjust the market value categories and the <br />
         		<a id="pl.126.34"></a><var>126.34</var>number of categories as necessary to create an adequate sample size for each market value <br />
         		<a id="pl.126.35"></a><var>126.35</var>category. The board may determine the adequate sample size. To the extent practicable, <br />
         		<a id="pl.126.36"></a><var>126.36</var>the methodology used in preparing the assessment/sales ratio study must be consistent <br />
         		<a id="pl.127.1"></a><var>127.1</var>with the most recent Standard on Assessment Sales Ratio Studies published by the <br />
         		<a id="pl.127.2"></a><var>127.2</var>Assessment Standards Committee of the International Association of Assessing Officers. <br />
         		<a id="pl.127.3"></a><var>127.3</var>The board may determine the geographic area used in preparing the study to accurately <br />
         		<a id="pl.127.4"></a><var>127.4</var>equalize values. A sales ratio study separating residential property into market value <br />
         		<a id="pl.127.5"></a><var>127.5</var>categories may not be used as the basis for a petition under chapter 278.<br />
         		<a id="pl.127.6"></a><var>127.6</var>The sales prices used in the study must be discounted for terms of financing. The <br />
         		<a id="pl.127.7"></a><var>127.7</var>board shall use the median ratio as the statistical measure of the level of assessment for <br />
         		<a id="pl.127.8"></a><var>127.8</var>any particular category of property; and<br />
         		<a id="pl.127.9"></a><var>127.9</var>(9) (7) The board shall receive from each county the estimated market values on the <br />
         		<a id="pl.127.10"></a><var>127.10</var>assessment date falling within the study period for all parcels by magnetic tape or other a<br />
         		<a id="pl.127.11"></a><var>127.11</var> medium as prescribed by the commissioner of revenue.<br />
         		<a id="pl.127.12"></a><var>127.12</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.15.0"></a><a id="pl.127.13"></a><var>127.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 15. Minnesota Statutes 2012, section 270.12, subdivision 4, is amended to read:<br />
         		<a id="pl.127.14"></a><var>127.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Public utility property.</b> For purposes of equalization only, public utility <br />
         		<a id="pl.127.15"></a><var>127.15</var>personal property shall be treated as a separate class of property notwithstanding the fact <br />
         		<a id="pl.127.16"></a><var>127.16</var>that its class rate is the same as commercial-industrial property.<br />
         		<a id="pl.127.17"></a><var>127.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.16.0"></a><a id="pl.127.18"></a><var>127.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 16. Minnesota Statutes 2012, section 270A.03, subdivision 2, is amended to read:<br />
         		<a id="pl.127.19"></a><var>127.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Claimant agency.</b> "Claimant agency" means any state agency, as defined <br />
         		<a id="pl.127.20"></a><var>127.20</var>by section 
         <statute_ref>14.02, subdivision 2</statute_ref>, the regents of the University of Minnesota, any district <br />
         		<a id="pl.127.21"></a><var>127.21</var>court of the state, any county, any statutory or home rule charter city, including a city that <br />
         		<a id="pl.127.22"></a><var>127.22</var>is presenting a claim for a municipal hospital or a public library or a municipal ambulance <br />
         		<a id="pl.127.23"></a><var>127.23</var>service, a hospital district, a private nonprofit hospital that leases its building from the <br />
         		<a id="pl.127.24"></a><var>127.24</var>county or city in which it is located, any ambulance service licensed under chapter 144E, <br />
         		<a id="pl.127.25"></a><var>127.25</var>any public agency responsible for child support enforcement, any public agency responsible <br />
         		<a id="pl.127.26"></a><var>127.26</var>for the collection of court-ordered restitution, and any public agency established by <br />
         		<a id="pl.127.27"></a><var>127.27</var>general or special law that is responsible for the administration of a low-income housing <br />
         		<a id="pl.127.28"></a><var>127.28</var>program, and the Minnesota collection enterprise as defined in section 
         <statute_ref>16D.02, subdivision <br />
            		<a id="pl.127.29"></a><var>127.29</var>8
         </statute_ref>, for the purpose of collecting the costs imposed under section 
         <statute_ref>16D.11</statute_ref>.<br />
         		<a id="pl.127.30"></a><var>127.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.17.0"></a><a id="pl.127.31"></a><var>127.31</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 17. Minnesota Statutes 2012, section 270B.14, subdivision 3, is amended to read:<br />
         		<a id="pl.128.1"></a><var>128.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Administration of enterprise</b><b>,</b><b> </b><b>and </b><b>job opportunity</b><b>, and biotechnology </b><br />
         		<a id="pl.128.2"></a><var>128.2</var><b>and health sciences industry zone</b><b> programs.</b> The commissioner may disclose return <br />
         		<a id="pl.128.3"></a><var>128.3</var>information relating to the taxes imposed by chapters 290 and 297A to the Department of <br />
         		<a id="pl.128.4"></a><var>128.4</var>Employment and Economic Development or a municipality with a border city enterprise <br />
         		<a id="pl.128.5"></a><var>128.5</var>zone as defined under section 
         <statute_ref>469.166</statute_ref>, but only as necessary to administer the funding <br />
         		<a id="pl.128.6"></a><var>128.6</var>limitations under section 
         <statute_ref>469.169</statute_ref>, or to the Department of Employment and Economic <br />
         		<a id="pl.128.7"></a><var>128.7</var>Development and appropriate officials from the local government units in which a <br />
         		<a id="pl.128.8"></a><var>128.8</var>qualified business is located but only as necessary to enforce the job opportunity building <br />
         		<a id="pl.128.9"></a><var>128.9</var>zone benefits under section 
         <statute_ref>469.315</statute_ref>, or biotechnology and health sciences industry zone <br />
         		<a id="pl.128.10"></a><var>128.10</var>benefits under section 
         <statute_ref>469.336</statute_ref>.<br />
         		<a id="pl.128.11"></a><var>128.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.18.0"></a><a id="pl.128.12"></a><var>128.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 18. Minnesota Statutes 2012, section 270C.085, is amended to read:<br />
         		<a id="pl.128.13"></a><var>128.13</var><b>270C.085 NOTIFICATION REQUIREMENTS; SALES AND USE TAXES.</b><br />
         		<a id="pl.128.14"></a><var>128.14</var>The commissioner of revenue shall establish a means of electronically notifying <br />
         		<a id="pl.128.15"></a><var>128.15</var>persons holding a sales tax permit under section 
         <statute_ref>297A.84</statute_ref> of any statutory change in <br />
         		<a id="pl.128.16"></a><var>128.16</var>chapter 297A and any issuance or change in any administrative rule, revenue notice, or <br />
         		<a id="pl.128.17"></a><var>128.17</var>sales tax fact sheet or other written information provided by the department explaining the <br />
         		<a id="pl.128.18"></a><var>128.18</var>interpretation or administration of the tax imposed under that chapter. The notification <br />
         		<a id="pl.128.19"></a><var>128.19</var>must indicate the basic subject of the statute, rule, fact sheet, or other material and provide <br />
         		<a id="pl.128.20"></a><var>128.20</var>an electronic link to the material. Any person holding a sales tax permit that provides <br />
         		<a id="pl.128.21"></a><var>128.21</var>an electronic address to the department must receive these notifications unless they <br />
         		<a id="pl.128.22"></a><var>128.22</var>specifically request electronically, or in writing, to be removed from the notification list. <br />
         		<a id="pl.128.23"></a><var>128.23</var>This requirement does not replace traditional means of notifying the general public or <br />
         		<a id="pl.128.24"></a><var>128.24</var>persons without access to electronic communications of changes in the sales tax law. The <br />
         		<a id="pl.128.25"></a><var>128.25</var>electronic notification must begin no later than December 31, 2009.<br />
         		<a id="pl.128.26"></a><var>128.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.19.0"></a><a id="pl.128.27"></a><var>128.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 19. Minnesota Statutes 2012, section 270C.52, subdivision 2, is amended to read:<br />
         		<a id="pl.128.28"></a><var>128.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Payment agreements.</b> (a) When any portion of any tax payable to the <br />
         		<a id="pl.128.29"></a><var>128.29</var>commissioner together with interest and penalty thereon, if any, has not been paid, the <br />
         		<a id="pl.128.30"></a><var>128.30</var>commissioner may extend the time for payment for a further period. When the authority <br />
         		<a id="pl.128.31"></a><var>128.31</var>of this section is invoked, the extension shall be evidenced by written agreement signed by <br />
         		<a id="pl.128.32"></a><var>128.32</var>the taxpayer and the commissioner, stating the amount of the tax with penalty and interest, <br />
         		<a id="pl.128.33"></a><var>128.33</var>if any, and providing for the payment of the amount in installments.<br />
         		<a id="pl.129.1"></a><var>129.1</var>(b) The agreement may contain a confession of judgment for the amount and for any <br />
         		<a id="pl.129.2"></a><var>129.2</var>unpaid portion thereof. If the agreement contains a confession of judgment, the confession <br />
         		<a id="pl.129.3"></a><var>129.3</var>of judgment must provide that the commissioner may enter judgment against the taxpayer <br />
         		<a id="pl.129.4"></a><var>129.4</var>in the district court of the county of residence as shown upon the taxpayer's tax return for <br />
         		<a id="pl.129.5"></a><var>129.5</var>the unpaid portion of the amount specified in the extension agreement.<br />
         		<a id="pl.129.6"></a><var>129.6</var>(c) The agreement shall provide that it can be terminated, after notice by the <br />
         		<a id="pl.129.7"></a><var>129.7</var>commissioner, if information provided by the taxpayer prior to the agreement was <br />
         		<a id="pl.129.8"></a><var>129.8</var>inaccurate or incomplete, collection of the tax covered by the agreement is in jeopardy, <br />
         		<a id="pl.129.9"></a><var>129.9</var>there is a subsequent change in the taxpayer's financial condition, the taxpayer has failed <br />
         		<a id="pl.129.10"></a><var>129.10</var>to make a payment due under the agreement, or the taxpayer has failed to pay any other <br />
         		<a id="pl.129.11"></a><var>129.11</var>tax or file a tax return coming due after the agreement.<br />
         		<a id="pl.129.12"></a><var>129.12</var>(d) The notice must be given at least 14 calendar days prior to termination, and shall <br />
         		<a id="pl.129.13"></a><var>129.13</var>advise the taxpayer of the right to request a reconsideration from the commissioner of <br />
         		<a id="pl.129.14"></a><var>129.14</var>whether termination is reasonable and appropriate under the circumstances. A request for <br />
         		<a id="pl.129.15"></a><var>129.15</var>reconsideration does not stay collection action beyond the 14-day notice period. If the <br />
         		<a id="pl.129.16"></a><var>129.16</var>commissioner has reason to believe that collection of the tax covered by the agreement <br />
         		<a id="pl.129.17"></a><var>129.17</var>is in jeopardy, the commissioner may proceed under section 
         <statute_ref>270C.36</statute_ref> and terminate the <br />
         		<a id="pl.129.18"></a><var>129.18</var>agreement without regard to the 14-day period.<br />
         		<a id="pl.129.19"></a><var>129.19</var>(e) The commissioner may accept other collateral the commissioner considers <br />
         		<a id="pl.129.20"></a><var>129.20</var>appropriate to secure satisfaction of the tax liability. The principal sum specified in the <br />
         		<a id="pl.129.21"></a><var>129.21</var>agreement shall bear interest at the rate specified in section 
         <statute_ref>270C.40</statute_ref> on all unpaid portions <br />
         		<a id="pl.129.22"></a><var>129.22</var>thereof until the same has been fully paid or the unpaid portion thereof has been entered as <br />
         		<a id="pl.129.23"></a><var>129.23</var>a judgment. The judgment shall bear interest at the rate specified in section 
         <statute_ref>270C.40</statute_ref>.<br />
         		<a id="pl.129.24"></a><var>129.24</var>(f) If it appears to the commissioner that the tax reported by the taxpayer is in excess <br />
         		<a id="pl.129.25"></a><var>129.25</var>of the amount actually owing by the taxpayer, the extension agreement or the judgment <br />
         		<a id="pl.129.26"></a><var>129.26</var>entered pursuant thereto shall be corrected. If after making the extension agreement <br />
         		<a id="pl.129.27"></a><var>129.27</var>or entering judgment with respect thereto, the commissioner determines that the tax as <br />
         		<a id="pl.129.28"></a><var>129.28</var>reported by the taxpayer is less than the amount actually due, the commissioner shall <br />
         		<a id="pl.129.29"></a><var>129.29</var>assess a further tax in accordance with the provisions of law applicable to the tax.<br />
         		<a id="pl.129.30"></a><var>129.30</var>(g) The authority granted to the commissioner by this section is in addition to any <br />
         		<a id="pl.129.31"></a><var>129.31</var>other authority granted to the commissioner by law to extend the time of payment or the <br />
         		<a id="pl.129.32"></a><var>129.32</var>time for filing a return and shall not be construed in limitation thereof.<br />
         		<a id="pl.129.33"></a><var>129.33</var>(h) The commissioner shall charge a fee for entering into payment agreements that <br />
         		<a id="pl.129.34"></a><var>129.34</var>reflects the commissioner's costs for entering into payment agreements. The fee is set at <br />
         		<a id="pl.129.35"></a><var>129.35</var>$50 and is charged for entering into a payment agreement, for entering into a new payment <br />
         		<a id="pl.129.36"></a><var>129.36</var>agreement after the taxpayer has defaulted on a prior agreement, and for entering into a <br />
         		<a id="pl.130.1"></a><var>130.1</var>new payment agreement as a result of renegotiation of the terms of an existing agreement. <br />
         		<a id="pl.130.2"></a><var>130.2</var>The fee is paid to the commissioner before the payment agreement becomes effective and <br />
         		<a id="pl.130.3"></a><var>130.3</var>does not reduce the amount of the liability.<br />
         		<a id="pl.130.4"></a><var>130.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.20.0"></a><a id="pl.130.5"></a><var>130.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 20. Minnesota Statutes 2012, section 272.01, subdivision 1, is amended to read:<br />
         		<a id="pl.130.6"></a><var>130.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Generally taxable.</b> All real and personal property in this state, and <br />
         		<a id="pl.130.7"></a><var>130.7</var>all personal property of persons residing therein, including the property of corporations, <br />
         		<a id="pl.130.8"></a><var>130.8</var>banks, banking companies, and bankers, is taxable, except Indian lands and such other <br />
         		<a id="pl.130.9"></a><var>130.9</var>property as is by law exempt from taxation.<br />
         		<a id="pl.130.10"></a><var>130.10</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.21.0"></a><a id="pl.130.11"></a><var>130.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 21. Minnesota Statutes 2012, section 272.01, subdivision 3, is amended to read:<br />
         		<a id="pl.130.12"></a><var>130.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Exceptions.</b> The provisions of subdivision 2 shall not apply to:<br />
         		<a id="pl.130.13"></a><var>130.13</var>(a) Federal property for which payments are made in lieu of taxes in amounts <br />
         		<a id="pl.130.14"></a><var>130.14</var>equivalent to taxes which might otherwise be lawfully assessed;<br />
         		<a id="pl.130.15"></a><var>130.15</var>(b) Real estate exempt from ad valorem taxes and taxes in lieu thereof which is <br />
         		<a id="pl.130.16"></a><var>130.16</var>leased, loaned, or otherwise made available to telephone companies or electric, light <br />
         		<a id="pl.130.17"></a><var>130.17</var>and power companies upon which personal property consisting of transmission and <br />
         		<a id="pl.130.18"></a><var>130.18</var>distribution lines is situated and assessed pursuant to sections 
         <statute_ref>273.37</statute_ref>, 
         <statute_ref>273.38</statute_ref>, 
         <statute_ref>273.40</statute_ref> <br />
         		<a id="pl.130.19"></a><var>130.19</var>and 
         <statute_ref>273.41</statute_ref>, or upon which are situated the communication lines of express, railway, or <br />
         		<a id="pl.130.20"></a><var>130.20</var>telephone or telegraph companies, or pipelines used for the transmission and distribution <br />
         		<a id="pl.130.21"></a><var>130.21</var>of petroleum products, or the equipment items of a cable communications company <br />
         		<a id="pl.130.22"></a><var>130.22</var>subject to sections 
         <statute_ref>238.35</statute_ref> to 
         <statute_ref>238.42</statute_ref>;<br />
         		<a id="pl.130.23"></a><var>130.23</var>(c) Property presently owned by any educational institution chartered by the <br />
         		<a id="pl.130.24"></a><var>130.24</var>territorial legislature;<br />
         		<a id="pl.130.25"></a><var>130.25</var>(d) Indian lands;<br />
         		<a id="pl.130.26"></a><var>130.26</var>(e) Property of any corporation organized as a tribal corporation under the Indian <br />
         		<a id="pl.130.27"></a><var>130.27</var>Reorganization Act of June 18, 1934, (Statutes at Large, volume 48, page 984);<br />
         		<a id="pl.130.28"></a><var>130.28</var>(f) Real property owned by the state and leased pursuant to section 
         <statute_ref>161.23</statute_ref> or <br />
         		
         <statute_ref><a id="pl.130.29"></a><var>130.29</var>161.431
         </statute_ref>, and acts amendatory thereto;<br />
         		<a id="pl.130.30"></a><var>130.30</var>(g) Real property owned by a seaway port authority on June 1, 1967, upon which <br />
         		<a id="pl.130.31"></a><var>130.31</var>there has been constructed docks, warehouses, tank farms, administrative and maintenance <br />
         		<a id="pl.130.32"></a><var>130.32</var>buildings, railroad and ship terminal facilities and other maritime and transportation <br />
         		<a id="pl.130.33"></a><var>130.33</var>facilities or those directly related thereto, together with facilities for the handling of <br />
         		<a id="pl.131.1"></a><var>131.1</var>passengers and baggage and for the handling of freight and bulk liquids, and personal <br />
         		<a id="pl.131.2"></a><var>131.2</var>property owned by a seaway port authority used or usable in connection therewith, when <br />
         		<a id="pl.131.3"></a><var>131.3</var>said property is leased to a private individual, association or corporation, but only when <br />
         		<a id="pl.131.4"></a><var>131.4</var>such lease provides that the said facilities are available to the public for the loading and <br />
         		<a id="pl.131.5"></a><var>131.5</var>unloading of passengers and their baggage and the handling, storage, care, shipment, <br />
         		<a id="pl.131.6"></a><var>131.6</var>and delivery of merchandise, freight and baggage and other maritime and transportation <br />
         		<a id="pl.131.7"></a><var>131.7</var>activities and functions directly related thereto, but not including property used for grain <br />
         		<a id="pl.131.8"></a><var>131.8</var>elevator facilities; it being the declared policy of this state that such property when <br />
         		<a id="pl.131.9"></a><var>131.9</var>so leased is public property used exclusively for a public purpose, notwithstanding the <br />
         		<a id="pl.131.10"></a><var>131.10</var>one-year limitation in the provisions of section 
         <statute_ref>273.19</statute_ref>;<br />
         		<a id="pl.131.11"></a><var>131.11</var>(h) Notwithstanding the provisions of clause (g), when the annual rental received by <br />
         		<a id="pl.131.12"></a><var>131.12</var>a seaway port authority in any calendar year for such leased property exceeds an amount <br />
         		<a id="pl.131.13"></a><var>131.13</var>reasonably required for administrative expense of the authority per year, plus promotional <br />
         		<a id="pl.131.14"></a><var>131.14</var>expense for the authority not to exceed the sum of $100,000 per year, to be expended <br />
         		<a id="pl.131.15"></a><var>131.15</var>when and in the manner decided upon by the commissioners, plus an amount sufficient to <br />
         		<a id="pl.131.16"></a><var>131.16</var>pay all installments of principal and interest due, or to become due, during such calendar <br />
         		<a id="pl.131.17"></a><var>131.17</var>year and the next succeeding year on any revenue bonds issued by the authority, plus <br />
         		<a id="pl.131.18"></a><var>131.18</var>25 percent of the gross annual rental to be retained by the authority for improvement, <br />
         		<a id="pl.131.19"></a><var>131.19</var>development, or other contingencies, the authority shall make a payment in lieu of real <br />
         		<a id="pl.131.20"></a><var>131.20</var>and personal property taxes of a reasonable portion of the remaining annual rental to the <br />
         		<a id="pl.131.21"></a><var>131.21</var>county treasurer of the county in which such seaway port authority is principally located. <br />
         		<a id="pl.131.22"></a><var>131.22</var>Any such payments to the county treasurer shall be disbursed by the treasurer on the same <br />
         		<a id="pl.131.23"></a><var>131.23</var>basis as real estate taxes are divided among the various governmental units, but if such <br />
         		<a id="pl.131.24"></a><var>131.24</var>port authority shall have received funds from the state of Minnesota and funds from any <br />
         		<a id="pl.131.25"></a><var>131.25</var>city and county pursuant to Laws 1957, chapters 648, 831, and 849 and acts amendatory <br />
         		<a id="pl.131.26"></a><var>131.26</var>thereof, then such disbursement by the county treasurer shall be on the same basis as real <br />
         		<a id="pl.131.27"></a><var>131.27</var>estate taxes are divided among the various governmental units, except that the portion of <br />
         		<a id="pl.131.28"></a><var>131.28</var>such payments which would otherwise go to other taxing units shall be divided equally <br />
         		<a id="pl.131.29"></a><var>131.29</var>among the state of Minnesota and said county and city.<br />
         		<a id="pl.131.30"></a><var>131.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.22.0"></a><a id="pl.131.31"></a><var>131.31</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 22. Minnesota Statutes 2012, section 272.025, subdivision 1, is amended to read:<br />
         		<a id="pl.131.32"></a><var>131.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Statement of exemption.</b> (a) Except in the case of property owned <br />
         		<a id="pl.131.33"></a><var>131.33</var>by the state of Minnesota or any political subdivision thereof, and property exempt from <br />
         		<a id="pl.131.34"></a><var>131.34</var>taxation under section 
         <statute_ref>272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22</statute_ref> to 25, and at the <br />
         		<a id="pl.131.35"></a><var>131.35</var>times provided in subdivision 3, a taxpayer claiming an exemption from taxation on <br />
         		<a id="pl.132.1"></a><var>132.1</var>property described in section 
         <statute_ref>272.02</statute_ref>, subdivisions 1 2 to 33, must file a statement of <br />
         		<a id="pl.132.2"></a><var>132.2</var>exemption with the assessor of the assessment district in which the property is located.<br />
         		<a id="pl.132.3"></a><var>132.3</var>(b) A taxpayer claiming an exemption from taxation on property described in section <br />
         		
         <statute_ref><a id="pl.132.4"></a><var>132.4</var>272.02, subdivision 10
         </statute_ref>, must file a statement of exemption with the commissioner of <br />
         		<a id="pl.132.5"></a><var>132.5</var>revenue, on or before February 15 of each year for which the taxpayer claims an exemption.<br />
         		<a id="pl.132.6"></a><var>132.6</var>(c) In case of sickness, absence or other disability or for good cause, the assessor <br />
         		<a id="pl.132.7"></a><var>132.7</var>or the commissioner may extend the time for filing the statement of exemption for a <br />
         		<a id="pl.132.8"></a><var>132.8</var>period not to exceed 60 days.<br />
         		<a id="pl.132.9"></a><var>132.9</var>(d) The commissioner of revenue shall prescribe the form and contents of the <br />
         		<a id="pl.132.10"></a><var>132.10</var>statement of exemption.<br />
         		<a id="pl.132.11"></a><var>132.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.23.0"></a><a id="pl.132.12"></a><var>132.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 23. Minnesota Statutes 2012, section 272.027, subdivision 1, is amended to read:<br />
         		<a id="pl.132.13"></a><var>132.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Electricity generated to produce goods and services.</b> Personal <br />
         		<a id="pl.132.14"></a><var>132.14</var>property used to generate electric power is exempt from property taxation if the electric <br />
         		<a id="pl.132.15"></a><var>132.15</var>power is used to manufacture or produce goods, products, or services, other than electric <br />
         		<a id="pl.132.16"></a><var>132.16</var>power, by the owner of the electric generation plant. Except as provided in subdivisions 2 <br />
         		<a id="pl.132.17"></a><var>132.17</var>and 3, The exemption does not apply to property used to produce electric power for sale <br />
         		<a id="pl.132.18"></a><var>132.18</var>to others and does not apply to real property. In determining the value subject to tax, <br />
         		<a id="pl.132.19"></a><var>132.19</var>a proportionate share of the value of the generating facilities, equal to the proportion <br />
         		<a id="pl.132.20"></a><var>132.20</var>that the power sold to others bears to the total generation of the plant, is subject to the <br />
         		<a id="pl.132.21"></a><var>132.21</var>general property tax in the same manner as other property. Power generated in such a <br />
         		<a id="pl.132.22"></a><var>132.22</var>plant and exchanged for an equivalent amount of power that is used for the manufacture or <br />
         		<a id="pl.132.23"></a><var>132.23</var>production of goods, products, or services other than electric power by the owner of the <br />
         		<a id="pl.132.24"></a><var>132.24</var>generating plant is considered to be used by the owner of the plant.<br />
         		<a id="pl.132.25"></a><var>132.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.24.0"></a><a id="pl.132.26"></a><var>132.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 24. Minnesota Statutes 2012, section 272.029, subdivision 6, is amended to read:<br />
         		<a id="pl.132.27"></a><var>132.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <b>Distribution of revenues.</b> Revenues from the taxes imposed under <br />
         		<a id="pl.132.28"></a><var>132.28</var>subdivision 5 must be part of the settlement between the county treasurer and the county <br />
         		<a id="pl.132.29"></a><var>132.29</var>auditor under section 
         <statute_ref>276.09</statute_ref>. The revenue must be distributed by the county auditor or the <br />
         		<a id="pl.132.30"></a><var>132.30</var>county treasurer to local taxing jurisdictions in which the wind energy conversion system <br />
         		<a id="pl.132.31"></a><var>132.31</var>is located as follows: beginning with distributions in 2010, 80 percent to counties; and 20 <br />
         		<a id="pl.132.32"></a><var>132.32</var>percent to cities and townships; and for distributions occurring in 2006 to 2009, 80 percent <br />
         		<a id="pl.132.33"></a><var>132.33</var>to counties; 14 percent to cities and townships; and six percent to school districts.<br />
         		<a id="pl.133.1"></a><var>133.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.25.0"></a><a id="pl.133.2"></a><var>133.2</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 25. Minnesota Statutes 2012, section 273.061, subdivision 6, is amended to read:<br />
         		<a id="pl.133.3"></a><var>133.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <b>Salaries; expenses.</b> The salaries of the county assessor and assistants and <br />
         		<a id="pl.133.4"></a><var>133.4</var>clerical help, shall be fixed by the board of county commissioners and shall be payable in <br />
         		<a id="pl.133.5"></a><var>133.5</var>monthly installments out of the general revenue fund of the county. In counties with a <br />
         		<a id="pl.133.6"></a><var>133.6</var>population of less than 50,000 inhabitants, according to the then last preceding federal <br />
         		<a id="pl.133.7"></a><var>133.7</var>census, the board of county commissioners shall not fix the salary of the county assessor at <br />
         		<a id="pl.133.8"></a><var>133.8</var>an amount below the following schedule:<br />
         		<a id="pl.133.9"></a><var>133.9</var>In counties with a population of less than 6,500, $5,900;<br />
         		<a id="pl.133.10"></a><var>133.10</var>In counties with a population of 6,500 but less than 12,000, $6,200;<br />
         		<a id="pl.133.11"></a><var>133.11</var>In counties with a population of 12,000 but less than 16,000, $6,500;<br />
         		<a id="pl.133.12"></a><var>133.12</var>In counties with a population of 16,000 but less than 21,000, $6,700;<br />
         		<a id="pl.133.13"></a><var>133.13</var>In counties with a population of 21,000 but less than 30,000, $6,900;<br />
         		<a id="pl.133.14"></a><var>133.14</var>In counties with a population of 30,000 but less than 39,500, $7,100;<br />
         		<a id="pl.133.15"></a><var>133.15</var>In counties with a population of 39,500 but less than 50,000, $7,300;<br />
         		<a id="pl.133.16"></a><var>133.16</var>In counties with a population of 50,000 or more, $8,300.<br />
         		<a id="pl.133.17"></a><var>133.17</var>In addition to their salaries, the county assessor and assistants shall be allowed their <br />
         		<a id="pl.133.18"></a><var>133.18</var>expenses for reasonable and necessary travel in the performance of their duties, including <br />
         		<a id="pl.133.19"></a><var>133.19</var>necessary travel, lodging and meal expense incurred by them while attending meetings of <br />
         		<a id="pl.133.20"></a><var>133.20</var>instructions or official hearings called by the commissioner of revenue. These expenses <br />
         		<a id="pl.133.21"></a><var>133.21</var>shall be payable out of the general revenue fund of the county, and shall be allowed on the <br />
         		<a id="pl.133.22"></a><var>133.22</var>same basis as such expenses are allowed to other county officers.<br />
         		<a id="pl.133.23"></a><var>133.23</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.26.0"></a><a id="pl.133.24"></a><var>133.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 26. Minnesota Statutes 2012, section 273.10, is amended to read:<br />
         		<a id="pl.133.25"></a><var>133.25</var><b>273.10 SCHOOL DISTRICTS.</b><br />
         		<a id="pl.133.26"></a><var>133.26</var>When assessing personal property the county assessor shall designate the number of <br />
         		<a id="pl.133.27"></a><var>133.27</var>the school district in which each person assessed is liable for tax, by writing the number <br />
         		<a id="pl.133.28"></a><var>133.28</var>of the district opposite each assessment in a column provided for that purpose in the <br />
         		<a id="pl.133.29"></a><var>133.29</var>assessment book. When the personal property of any person is assessable in several <br />
         		<a id="pl.133.30"></a><var>133.30</var>school districts, the amount in each shall be assessed separately, and the name of the <br />
         		<a id="pl.133.31"></a><var>133.31</var>owner placed opposite each amount.<br />
         		<a id="pl.133.32"></a><var>133.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.27.0"></a><a id="pl.134.1"></a><var>134.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 27. Minnesota Statutes 2012, section 273.11, subdivision 13, is amended to read:<br />
         		<a id="pl.134.2"></a><var>134.2</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 13. <b>Valuation of income-producing property.</b> Beginning with the 1995 <br />
         		<a id="pl.134.3"></a><var>134.3</var>assessment, Only accredited assessors or senior accredited assessors or other licensed <br />
         		<a id="pl.134.4"></a><var>134.4</var>assessors who have successfully completed at least two income-producing property <br />
         		<a id="pl.134.5"></a><var>134.5</var>appraisal courses may value income-producing property for ad valorem tax purposes. <br />
         		<a id="pl.134.6"></a><var>134.6</var>"Income-producing property" as used in this subdivision means the taxable property in <br />
         		<a id="pl.134.7"></a><var>134.7</var>class 3a and 3b in section 
         <statute_ref>273.13, subdivision 24</statute_ref>; class 4a and 4c, except for seasonal <br />
         		<a id="pl.134.8"></a><var>134.8</var>recreational property not used for commercial purposes; and class 5 in section 
         <statute_ref>273.13, <br />
            		<a id="pl.134.9"></a><var>134.9</var>subdivision 31
         </statute_ref>. "Income-producing property" includes any property in class 4e in section <br />
         		
         <statute_ref><a id="pl.134.10"></a><var>134.10</var>273.13, subdivision 25
         </statute_ref>, that would be income-producing property under the definition in <br />
         		<a id="pl.134.11"></a><var>134.11</var>this subdivision if it were not substandard. "Income-producing property appraisal course" <br />
         		<a id="pl.134.12"></a><var>134.12</var>as used in this subdivision means a course of study of approximately 30 instructional <br />
         		<a id="pl.134.13"></a><var>134.13</var>hours, with a final comprehensive test. An assessor must successfully complete the final <br />
         		<a id="pl.134.14"></a><var>134.14</var>examination for each of the two required courses. The course must be approved by the <br />
         		<a id="pl.134.15"></a><var>134.15</var>board of assessors.<br />
         		<a id="pl.134.16"></a><var>134.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.28.0"></a><a id="pl.134.17"></a><var>134.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 28. Minnesota Statutes 2012, section 273.112, subdivision 6a, is amended to read:<br />
         		<a id="pl.134.18"></a><var>134.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6a. <b>Guidelines issued by commissioner.</b> The commissioner of revenue shall <br />
         		<a id="pl.134.19"></a><var>134.19</var>develop and issue guidelines for qualification by private golf clubs under this section <br />
         		<a id="pl.134.20"></a><var>134.20</var>covering the access to and use of the golf course by members and other adults so as to be <br />
         		<a id="pl.134.21"></a><var>134.21</var>consistent with the purposes and terms of this section. The guidelines shall be mailed to <br />
         		<a id="pl.134.22"></a><var>134.22</var>the county attorney and assessor of each county not later than 60 days following May 26, <br />
         		<a id="pl.134.23"></a><var>134.23</var>1989. Within 15 days of receipt of the guidelines from the commissioner, the assessor <br />
         		<a id="pl.134.24"></a><var>134.24</var>shall mail a copy of the guidelines to each golf club in the county.<br />
         		<a id="pl.134.25"></a><var>134.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.29.0"></a><a id="pl.134.26"></a><var>134.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 29. Minnesota Statutes 2013 Supplement, section 273.1325, subdivision 2, <br />
         		<a id="pl.134.27"></a><var>134.27</var>is amended to read:<br />
         		<a id="pl.134.28"></a><var>134.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Methodology.</b> In making its annual assessment/sales ratio studies, the <br />
         		<a id="pl.134.29"></a><var>134.29</var>Department of Revenue must use a methodology consistent with the most recent Standard <br />
         		<a id="pl.134.30"></a><var>134.30</var>on Assessment Ratio Studies published by the assessment standards committee of the <br />
         		<a id="pl.134.31"></a><var>134.31</var>International Association of Assessing Officers. The commissioner of revenue shall <br />
         		<a id="pl.134.32"></a><var>134.32</var>supplement this general methodology with specific procedures necessary for execution of <br />
         		<a id="pl.134.33"></a><var>134.33</var>the study in accordance with other Minnesota laws impacting the assessment/sales ratio <br />
         		<a id="pl.135.1"></a><var>135.1</var>study. The commissioner shall document these specific procedures in writing and shall <br />
         		<a id="pl.135.2"></a><var>135.2</var>publish the procedures in the State Register, but these procedures will not be considered <br />
         		<a id="pl.135.3"></a><var>135.3</var>"rules" pursuant to the Minnesota Administrative Procedure Act. When property is sold and <br />
         		<a id="pl.135.4"></a><var>135.4</var>the purchaser changes its use in a manner that would result in a change of classification of <br />
         		<a id="pl.135.5"></a><var>135.5</var>the property, the assessment sales ratio study under this subdivision must take into account <br />
         		<a id="pl.135.6"></a><var>135.6</var>that changed classification as soon as practicable. A change in status from homestead to <br />
         		<a id="pl.135.7"></a><var>135.7</var>nonhomestead or from nonhomestead to homestead is not a change under this subdivision. <br />
         		<a id="pl.135.8"></a><var>135.8</var>For purposes of this section, sections 
         <statute_ref>270.12, subdivision 2</statute_ref>, clause (8) (6), and 
         <statute_ref>278.05, <br />
            		<a id="pl.135.9"></a><var>135.9</var>subdivision 4
         </statute_ref>, the commissioner of revenue shall exclude from the assessment/sales ratio <br />
         		<a id="pl.135.10"></a><var>135.10</var>study the sale of any nonagricultural property which does not contain an improvement, <br />
         		<a id="pl.135.11"></a><var>135.11</var>if (1) the statutory basis on which the property's taxable value as most recently assessed <br />
         		<a id="pl.135.12"></a><var>135.12</var>is less than market value as defined in section 
         <statute_ref>273.11</statute_ref>, or (2) the property has undergone <br />
         		<a id="pl.135.13"></a><var>135.13</var>significant physical change or a change of use since the most recent assessment.<br />
         		<a id="pl.135.14"></a><var>135.14</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.30.0"></a><a id="pl.135.15"></a><var>135.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 30. Minnesota Statutes 2013 Supplement, section 273.1398, subdivision 3, <br />
         		<a id="pl.135.16"></a><var>135.16</var>is amended to read:<br />
         		<a id="pl.135.17"></a><var>135.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Disparity reduction aid.</b>  The amount of disparity aid certified for each <br />
         		<a id="pl.135.18"></a><var>135.18</var>taxing district within each unique taxing jurisdiction is the amount certified for taxes <br />
         		<a id="pl.135.19"></a><var>135.19</var>payable in the prior year shall be multiplied by the ratio of (1) the jurisdiction's tax <br />
         		<a id="pl.135.20"></a><var>135.20</var>capacity using the class rates for taxes payable in the year for which aid is being computed, <br />
         		<a id="pl.135.21"></a><var>135.21</var>to (2) its tax capacity using the class rates for taxes payable in the year prior to that for <br />
         		<a id="pl.135.22"></a><var>135.22</var>which aid is being computed, both based upon taxable market values for taxes payable in <br />
         		<a id="pl.135.23"></a><var>135.23</var>the year prior to that for which aid is being computed. If the commissioner determines <br />
         		<a id="pl.135.24"></a><var>135.24</var>that insufficient information is available to reasonably and timely calculate the numerator <br />
         		<a id="pl.135.25"></a><var>135.25</var>in this ratio for the first taxes payable year that a class rate change or new class rate is <br />
         		<a id="pl.135.26"></a><var>135.26</var>effective, the commissioner shall omit the effects of that class rate change or new class <br />
         		<a id="pl.135.27"></a><var>135.27</var>rate when calculating this ratio for aid payable in that taxes payable year. For aid payable <br />
         		<a id="pl.135.28"></a><var>135.28</var>in the year following a year for which such omission was made, the commissioner shall <br />
         		<a id="pl.135.29"></a><var>135.29</var>use in the denominator for the class that was changed or created, the tax capacity for taxes <br />
         		<a id="pl.135.30"></a><var>135.30</var>payable two years prior to that in which the aid is payable, based on taxable market values <br />
         		<a id="pl.135.31"></a><var>135.31</var>for taxes payable in the year prior to that for which aid is being computed.<br />
         		<a id="pl.135.32"></a><var>135.32</var><b>EFFECTIVE DATE.</b>This section is effective beginning for taxes payable in 2015.<br />
         		<br />
         		<a id="bill.9.31.0"></a><a id="pl.135.33"></a><var>135.33</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 31. Minnesota Statutes 2012, section 273.18, is amended to read:<br />
         		<a id="pl.136.1"></a><var>136.1</var><b>273.18 LISTING, VALUATION, AND ASSESSMENT OF EXEMPT </b><br />
         		<a id="pl.136.2"></a><var>136.2</var><b>PROPERTY BY COUNTY AUDITORS.</b><br />
         		<a id="pl.136.3"></a><var>136.3</var>(a) In every sixth year after the year 1926 2010, the county auditor shall enter, in <br />
         		<a id="pl.136.4"></a><var>136.4</var>a separate place in the real estate assessment books, the description of each tract of real <br />
         		<a id="pl.136.5"></a><var>136.5</var>property exempt by law from taxation, with the name of the owner, if known, and the <br />
         		<a id="pl.136.6"></a><var>136.6</var>assessor shall value and assess the same in the same manner that other real property is <br />
         		<a id="pl.136.7"></a><var>136.7</var>valued and assessed, and shall designate in each case the purpose for which the property is <br />
         		<a id="pl.136.8"></a><var>136.8</var>used.<br />
         		<a id="pl.136.9"></a><var>136.9</var>(b) For purposes of the apportionment of fire state aid under section 
         <statute_ref>69.021, <br />
            		<a id="pl.136.10"></a><var>136.10</var>subdivision 7
         </statute_ref>, the county auditor shall include on the abstract of assessment of exempt real <br />
         		<a id="pl.136.11"></a><var>136.11</var>property filed under this section, the total number of acres of all natural resources lands for <br />
         		<a id="pl.136.12"></a><var>136.12</var>which in lieu payments are made under sections 
         <statute_ref>477A.11</statute_ref> to 
         <statute_ref>477A.14</statute_ref>. The assessor shall <br />
         		<a id="pl.136.13"></a><var>136.13</var>estimate its market value, provided that if the assessor is not able to estimate the market <br />
         		<a id="pl.136.14"></a><var>136.14</var>value of the land on a per parcel basis, the assessor shall furnish the commissioner of <br />
         		<a id="pl.136.15"></a><var>136.15</var>revenue with an estimate of the average value per acre of this land within the county.<br />
         		<a id="pl.136.16"></a><var>136.16</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.32.0"></a><a id="pl.136.17"></a><var>136.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 32. Minnesota Statutes 2012, section 274.01, subdivision 1, is amended to read:<br />
         		<a id="pl.136.18"></a><var>136.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Ordinary board; meetings, deadlines, grievances.</b> (a) The town <br />
         		<a id="pl.136.19"></a><var>136.19</var>board of a town, or the council or other governing body of a city, is the board of appeal <br />
         		<a id="pl.136.20"></a><var>136.20</var>and equalization except (1) in cities whose charters provide for a board of equalization or <br />
         		<a id="pl.136.21"></a><var>136.21</var>(2) in any city or town that has transferred its local board of review power and duties to <br />
         		<a id="pl.136.22"></a><var>136.22</var>the county board as provided in subdivision 3. The county assessor shall fix a day and <br />
         		<a id="pl.136.23"></a><var>136.23</var>time when the board or the board of equalization shall meet in the assessment districts <br />
         		<a id="pl.136.24"></a><var>136.24</var>of the county. Notwithstanding any law or city charter to the contrary, a city board of <br />
         		<a id="pl.136.25"></a><var>136.25</var>equalization shall be referred to as a board of appeal and equalization. On or before <br />
         		<a id="pl.136.26"></a><var>136.26</var>February 15 of each year the assessor shall give written notice of the time to the city or <br />
         		<a id="pl.136.27"></a><var>136.27</var>town clerk. Notwithstanding the provisions of any charter to the contrary, the meetings <br />
         		<a id="pl.136.28"></a><var>136.28</var>must be held between April 1 and May 31 each year. The clerk shall give published and <br />
         		<a id="pl.136.29"></a><var>136.29</var>posted notice of the meeting at least ten days before the date of the meeting.<br />
         		<a id="pl.136.30"></a><var>136.30</var>&nbsp;&nbsp;&nbsp;&nbsp;The board shall meet at the office of the clerk to review the assessment and <br />
         		<a id="pl.136.31"></a><var>136.31</var>classification of property in the town or city. No changes in valuation or classification <br />
         		<a id="pl.136.32"></a><var>136.32</var>which are intended to correct errors in judgment by the county assessor may be made by <br />
         		<a id="pl.136.33"></a><var>136.33</var>the county assessor after the board has adjourned in those cities or towns that hold a <br />
         		<a id="pl.136.34"></a><var>136.34</var>local board of review; however, corrections of errors that are merely clerical in nature or <br />
         		<a id="pl.136.35"></a><var>136.35</var>changes that extend homestead treatment to property are permitted after adjournment until <br />
         		<a id="pl.137.1"></a><var>137.1</var>the tax extension date for that assessment year. The changes must be fully documented and <br />
         		<a id="pl.137.2"></a><var>137.2</var>maintained in the assessor's office and must be available for review by any person. A copy <br />
         		<a id="pl.137.3"></a><var>137.3</var>of the changes made during this period in those cities or towns that hold a local board of <br />
         		<a id="pl.137.4"></a><var>137.4</var>review must be sent to the county board no later than December 31 of the assessment year.<br />
         		<a id="pl.137.5"></a><var>137.5</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) The board shall determine whether the taxable property in the town or city has <br />
         		<a id="pl.137.6"></a><var>137.6</var>been properly placed on the list and properly valued by the assessor. If real or personal <br />
         		<a id="pl.137.7"></a><var>137.7</var>property has been omitted, the board shall place it on the list with its market value, and <br />
         		<a id="pl.137.8"></a><var>137.8</var>correct the assessment so that each tract or lot of real property, and each article, parcel, <br />
         		<a id="pl.137.9"></a><var>137.9</var>or class of personal property, is entered on the assessment list at its market value. No <br />
         		<a id="pl.137.10"></a><var>137.10</var>assessment of the property of any person may be raised unless the person has been <br />
         		<a id="pl.137.11"></a><var>137.11</var>duly notified of the intent of the board to do so. On application of any person feeling <br />
         		<a id="pl.137.12"></a><var>137.12</var>aggrieved, the board shall review the assessment or classification, or both, and correct <br />
         		<a id="pl.137.13"></a><var>137.13</var>it as appears just. The board may not make an individual market value adjustment or <br />
         		<a id="pl.137.14"></a><var>137.14</var>classification change that would benefit the property if the owner or other person having <br />
         		<a id="pl.137.15"></a><var>137.15</var>control over the property has refused the assessor access to inspect the property and the <br />
         		<a id="pl.137.16"></a><var>137.16</var>interior of any buildings or structures as provided in section 
         <statute_ref>273.20</statute_ref>. A board member <br />
         		<a id="pl.137.17"></a><var>137.17</var>shall not participate in any actions of the board which result in market value adjustments <br />
         		<a id="pl.137.18"></a><var>137.18</var>or classification changes to property owned by the board member, the spouse, parent, <br />
         		<a id="pl.137.19"></a><var>137.19</var>stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, nephew, <br />
         		<a id="pl.137.20"></a><var>137.20</var>or niece of a board member, or property in which a board member has a financial interest. <br />
         		<a id="pl.137.21"></a><var>137.21</var>The relationship may be by blood or marriage.<br />
         		<a id="pl.137.22"></a><var>137.22</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) A local board may reduce assessments upon petition of the taxpayer but the total <br />
         		<a id="pl.137.23"></a><var>137.23</var>reductions must not reduce the aggregate assessment made by the county assessor by more <br />
         		<a id="pl.137.24"></a><var>137.24</var>than one percent. If the total reductions would lower the aggregate assessments made by <br />
         		<a id="pl.137.25"></a><var>137.25</var>the county assessor by more than one percent, none of the adjustments may be made. The <br />
         		<a id="pl.137.26"></a><var>137.26</var>assessor shall correct any clerical errors or double assessments discovered by the board <br />
         		<a id="pl.137.27"></a><var>137.27</var>without regard to the one percent limitation.<br />
         		<a id="pl.137.28"></a><var>137.28</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) A local board does not have authority to grant an exemption or to order property <br />
         		<a id="pl.137.29"></a><var>137.29</var>removed from the tax rolls.<br />
         		<a id="pl.137.30"></a><var>137.30</var>&nbsp;&nbsp;&nbsp;&nbsp;(e) A majority of the members may act at the meeting, and adjourn from day to day <br />
         		<a id="pl.137.31"></a><var>137.31</var>until they finish hearing the cases presented. The assessor shall attend, with the assessment <br />
         		<a id="pl.137.32"></a><var>137.32</var>books and papers, and take part in the proceedings, but must not vote. The county assessor, <br />
         		<a id="pl.137.33"></a><var>137.33</var>or an assistant delegated by the county assessor shall attend the meetings. The board shall <br />
         		<a id="pl.137.34"></a><var>137.34</var>list separately, on a form appended to the assessment book, all omitted property added <br />
         		<a id="pl.137.35"></a><var>137.35</var>to the list by the board and all items of property increased or decreased, with the market <br />
         		<a id="pl.138.1"></a><var>138.1</var>value of each item of property, added or changed by the board, placed opposite the item. <br />
         		<a id="pl.138.2"></a><var>138.2</var>The county assessor shall enter all changes made by the board in the assessment book.<br />
         		<a id="pl.138.3"></a><var>138.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(f) Except as provided in subdivision 3, if a person fails to appear in person, by <br />
         		<a id="pl.138.4"></a><var>138.4</var>counsel, or by written communication before the board after being duly notified of the <br />
         		<a id="pl.138.5"></a><var>138.5</var>board's intent to raise the assessment of the property, or if a person feeling aggrieved by an <br />
         		<a id="pl.138.6"></a><var>138.6</var>assessment or classification fails to apply for a review of the assessment or classification, <br />
         		<a id="pl.138.7"></a><var>138.7</var>the person may not appear before the county board of appeal and equalization for a review <br />
         		<a id="pl.138.8"></a><var>138.8</var>of the assessment or classification. This paragraph does not apply if an assessment was <br />
         		<a id="pl.138.9"></a><var>138.9</var>made after the local board meeting, as provided in section 
         <statute_ref>273.01</statute_ref>, or if the person can <br />
         		<a id="pl.138.10"></a><var>138.10</var>establish not having received notice of market value at least five days before the local <br />
         		<a id="pl.138.11"></a><var>138.11</var>board meeting.<br />
         		<a id="pl.138.12"></a><var>138.12</var>&nbsp;&nbsp;&nbsp;&nbsp;(g) The local board must complete its work and adjourn within 20 days from the <br />
         		<a id="pl.138.13"></a><var>138.13</var>time of convening stated in the notice of the clerk, unless a longer period is approved by <br />
         		<a id="pl.138.14"></a><var>138.14</var>the commissioner of revenue. No action taken after that date is valid. All complaints <br />
         		<a id="pl.138.15"></a><var>138.15</var>about an assessment or classification made after the meeting of the board must be heard <br />
         		<a id="pl.138.16"></a><var>138.16</var>and determined by the county board of equalization. A nonresident may, at any time, <br />
         		<a id="pl.138.17"></a><var>138.17</var>before the meeting of the board file written objections to an assessment or classification <br />
         		<a id="pl.138.18"></a><var>138.18</var>with the county assessor. The objections must be presented to the board at its meeting by <br />
         		<a id="pl.138.19"></a><var>138.19</var>the county assessor for its consideration.<br />
         		<a id="pl.138.20"></a><var>138.20</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.33.0"></a><a id="pl.138.21"></a><var>138.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 33. Minnesota Statutes 2012, section 274.01, subdivision 2, is amended to read:<br />
         		<a id="pl.138.22"></a><var>138.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Special board; duties delegated.</b> The governing body of a city, including <br />
         		<a id="pl.138.23"></a><var>138.23</var>a city whose charter provides for a board of equalization, may appoint a special board of <br />
         		<a id="pl.138.24"></a><var>138.24</var>review. The city may delegate to the special board of review all of the powers and duties <br />
         		<a id="pl.138.25"></a><var>138.25</var>in subdivision 1. The special board of review shall serve at the direction and discretion <br />
         		<a id="pl.138.26"></a><var>138.26</var>of the appointing body, subject to the restrictions imposed by law. The appointing body <br />
         		<a id="pl.138.27"></a><var>138.27</var>shall determine the number of members of the board, the compensation and expenses to be <br />
         		<a id="pl.138.28"></a><var>138.28</var>paid, and the term of office of each member. At least one member of the special board <br />
         		<a id="pl.138.29"></a><var>138.29</var>of review must be an appraiser, realtor, or other person familiar with property valuations <br />
         		<a id="pl.138.30"></a><var>138.30</var>in the assessment district.<br />
         		<a id="pl.138.31"></a><var>138.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.34.0"></a><a id="pl.138.32"></a><var>138.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 34. Minnesota Statutes 2012, section 275.08, subdivision 1a, is amended to read:<br />
         		<a id="pl.139.1"></a><var>139.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 1a. <b>Computation of tax capacity.</b> For taxes payable in 1989, the county <br />
         		<a id="pl.139.2"></a><var>139.2</var>auditor shall compute the gross tax capacity for each parcel according to the class rates <br />
         		<a id="pl.139.3"></a><var>139.3</var>specified in section 
         <statute_ref>273.13</statute_ref>. The gross tax capacity will be the appropriate class rate <br />
         		<a id="pl.139.4"></a><var>139.4</var>multiplied by the parcel's market value. For taxes payable in 1990 and subsequent years,<br />
         		<a id="pl.139.5"></a><var>139.5</var> The county auditor shall compute the net tax capacity for each parcel according to the <br />
         		<a id="pl.139.6"></a><var>139.6</var>class rates specified in section 
         <statute_ref>273.13</statute_ref>. The net tax capacity will be the appropriate class <br />
         		<a id="pl.139.7"></a><var>139.7</var>rate multiplied by the parcel's market value.<br />
         		<a id="pl.139.8"></a><var>139.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.35.0"></a><a id="pl.139.9"></a><var>139.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 35. Minnesota Statutes 2012, section 275.08, subdivision 1d, is amended to read:<br />
         		<a id="pl.139.10"></a><var>139.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 1d. <b>Additional adjustment.</b> If, after computing each local government's <br />
         		<a id="pl.139.11"></a><var>139.11</var>adjusted local tax rate within a unique taxing jurisdiction pursuant to subdivision 1c, the <br />
         		<a id="pl.139.12"></a><var>139.12</var>auditor finds that the total adjusted local tax rate of all local governments combined is <br />
         		<a id="pl.139.13"></a><var>139.13</var>less than 90 percent of gross tax capacity for taxes payable in 1989 and 90 percent of net <br />
         		<a id="pl.139.14"></a><var>139.14</var>tax capacity for taxes payable in 1990 and thereafter, the auditor shall increase each local <br />
         		<a id="pl.139.15"></a><var>139.15</var>government's adjusted local tax rate proportionately so the total adjusted local tax rate of <br />
         		<a id="pl.139.16"></a><var>139.16</var>all local governments combined equals 90 percent. The total amount of the increase in <br />
         		<a id="pl.139.17"></a><var>139.17</var>tax resulting from the increased local tax rates must not exceed the amount of disparity <br />
         		<a id="pl.139.18"></a><var>139.18</var>aid allocated to the unique taxing district under section 
         <statute_ref>273.1398</statute_ref>. The auditor shall <br />
         		<a id="pl.139.19"></a><var>139.19</var>certify to the Department of Revenue the difference between the disparity aid originally <br />
         		<a id="pl.139.20"></a><var>139.20</var>allocated under section 
         <statute_ref>273.1398, subdivision 3</statute_ref>, and the amount necessary to reduce <br />
         		<a id="pl.139.21"></a><var>139.21</var>the total adjusted local tax rate of all local governments combined to 90 percent. Each <br />
         		<a id="pl.139.22"></a><var>139.22</var>local government's disparity reduction aid payment under section 
         <statute_ref>273.1398, subdivision <br />
            		<a id="pl.139.23"></a><var>139.23</var>6
         </statute_ref>, must be reduced accordingly.<br />
         		<a id="pl.139.24"></a><var>139.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.36.0"></a><a id="pl.139.25"></a><var>139.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 36. Minnesota Statutes 2013 Supplement, section 275.70, subdivision 5, is <br />
         		<a id="pl.139.26"></a><var>139.26</var>amended to read:<br />
         		<a id="pl.139.27"></a><var>139.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Special levies.</b> "Special levies" means those portions of ad valorem taxes <br />
         		<a id="pl.139.28"></a><var>139.28</var>levied by a local governmental unit for the following purposes or in the following manner:<br />
         		<a id="pl.139.29"></a><var>139.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) to pay the costs of the principal and interest on bonded indebtedness or to <br />
         		<a id="pl.139.30"></a><var>139.30</var>reimburse for the amount of liquor store revenues used to pay the principal and interest <br />
         		<a id="pl.139.31"></a><var>139.31</var>due on municipal liquor store bonds in the year preceding the year for which the levy <br />
         		<a id="pl.139.32"></a><var>139.32</var>limit is calculated;<br />
         		<a id="pl.140.1"></a><var>140.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) to pay the costs of principal and interest on certificates of indebtedness issued for <br />
         		<a id="pl.140.2"></a><var>140.2</var>any corporate purpose except for the following:<br />
         		<a id="pl.140.3"></a><var>140.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) tax anticipation or aid anticipation certificates of indebtedness;<br />
         		<a id="pl.140.4"></a><var>140.4</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) certificates of indebtedness issued under sections 
         <statute_ref>298.28</statute_ref> and 
         <statute_ref>298.282</statute_ref>;<br />
         		<a id="pl.140.5"></a><var>140.5</var>&nbsp;&nbsp;&nbsp;&nbsp;(iii) certificates of indebtedness used to fund current expenses or to pay the costs of <br />
         		<a id="pl.140.6"></a><var>140.6</var>extraordinary expenditures that result from a public emergency; or<br />
         		<a id="pl.140.7"></a><var>140.7</var>&nbsp;&nbsp;&nbsp;&nbsp;(iv) certificates of indebtedness used to fund an insufficiency in tax receipts or an <br />
         		<a id="pl.140.8"></a><var>140.8</var>insufficiency in other revenue sources, provided that nothing in this subdivision limits the <br />
         		<a id="pl.140.9"></a><var>140.9</var>special levy authorized under section 
         <statute_ref>475.755</statute_ref>;<br />
         		<a id="pl.140.10"></a><var>140.10</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) to provide for the bonded indebtedness portion of payments made to another <br />
         		<a id="pl.140.11"></a><var>140.11</var>political subdivision of the state of Minnesota;<br />
         		<a id="pl.140.12"></a><var>140.12</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) to fund payments made to the Minnesota State Armory Building Commission <br />
         		<a id="pl.140.13"></a><var>140.13</var>under section 
         <statute_ref>193.145, subdivision 2</statute_ref>, to retire the principal and interest on armory <br />
         		<a id="pl.140.14"></a><var>140.14</var>construction bonds;<br />
         		<a id="pl.140.15"></a><var>140.15</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) property taxes approved by voters which are levied against the referendum <br />
         		<a id="pl.140.16"></a><var>140.16</var>market value as provided under section 
         <statute_ref>275.61</statute_ref>;<br />
         		<a id="pl.140.17"></a><var>140.17</var>&nbsp;&nbsp;&nbsp;&nbsp;(6) to fund matching requirements needed to qualify for federal or state grants or <br />
         		<a id="pl.140.18"></a><var>140.18</var>programs to the extent that either (i) the matching requirement exceeds the matching <br />
         		<a id="pl.140.19"></a><var>140.19</var>requirement in calendar year 2001, or (ii) it is a new matching requirement that did not <br />
         		<a id="pl.140.20"></a><var>140.20</var>exist prior to 2002;<br />
         		<a id="pl.140.21"></a><var>140.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(7) to pay the expenses reasonably and necessarily incurred in preparing for or <br />
         		<a id="pl.140.22"></a><var>140.22</var>repairing the effects of natural disaster including the occurrence or threat of widespread <br />
         		<a id="pl.140.23"></a><var>140.23</var>or severe damage, injury, or loss of life or property resulting from natural causes, in <br />
         		<a id="pl.140.24"></a><var>140.24</var>accordance with standards formulated by the Emergency Services Division of the state <br />
         		<a id="pl.140.25"></a><var>140.25</var>Department of Public Safety, as allowed by the commissioner of revenue under section <br />
         		
         <statute_ref><a id="pl.140.26"></a><var>140.26</var>275.74, subdivision 2
         </statute_ref>;<br />
         		<a id="pl.140.27"></a><var>140.27</var>&nbsp;&nbsp;&nbsp;&nbsp;(8) pay amounts required to correct an error in the levy certified to the county <br />
         		<a id="pl.140.28"></a><var>140.28</var>auditor by a city or county in a levy year, but only to the extent that when added to the <br />
         		<a id="pl.140.29"></a><var>140.29</var>preceding year's levy it is not in excess of an applicable statutory, special law or charter <br />
         		<a id="pl.140.30"></a><var>140.30</var>limitation, or the limitation imposed on the governmental subdivision by sections 
         <statute_ref>275.70 <br />
            		
         </statute_ref><a id="pl.140.31"></a><var>140.31</var>to 
         <statute_ref>275.74</statute_ref> in the preceding levy year;<br />
         		<a id="pl.140.32"></a><var>140.32</var>&nbsp;&nbsp;&nbsp;&nbsp;(9) to pay an abatement under section 
         <statute_ref>469.1815</statute_ref>;<br />
         		<a id="pl.140.33"></a><var>140.33</var>&nbsp;&nbsp;&nbsp;&nbsp;(10) to pay any costs attributable to increases in the employer contribution rates under <br />
         		<a id="pl.140.34"></a><var>140.34</var>chapter 353, or locally administered pension plans, that are effective after June 30, 2001;<br />
         		<a id="pl.140.35"></a><var>140.35</var>&nbsp;&nbsp;&nbsp;&nbsp;(11) to pay the operating or maintenance costs of a county jail as authorized in section <br />
         		
         <statute_ref><a id="pl.140.36"></a><var>140.36</var>641.01
         </statute_ref> or 
         <statute_ref>641.262</statute_ref>, or of a correctional facility as defined in section 
         <statute_ref>241.021, subdivision 1</statute_ref>, <br />
         		<a id="pl.141.1"></a><var>141.1</var>paragraph (f), to the extent that the county can demonstrate to the commissioner of revenue <br />
         		<a id="pl.141.2"></a><var>141.2</var>that the amount has been included in the county budget as a direct result of a rule, minimum <br />
         		<a id="pl.141.3"></a><var>141.3</var>requirement, minimum standard, or directive of the Department of Corrections, or to pay <br />
         		<a id="pl.141.4"></a><var>141.4</var>the operating or maintenance costs of a regional jail as authorized in section 
         <statute_ref>641.262</statute_ref>. For <br />
         		<a id="pl.141.5"></a><var>141.5</var>purposes of this clause, a district court order is not a rule, minimum requirement, minimum <br />
         		<a id="pl.141.6"></a><var>141.6</var>standard, or directive of the Department of Corrections. If the county utilizes this special <br />
         		<a id="pl.141.7"></a><var>141.7</var>levy, except to pay operating or maintenance costs of a new regional jail facility under <br />
         		<a id="pl.141.8"></a><var>141.8</var>sections 
         <statute_ref>641.262</statute_ref> to 
         <statute_ref>641.264</statute_ref> which will not replace an existing jail facility, any amount <br />
         		<a id="pl.141.9"></a><var>141.9</var>levied by the county in the previous levy year for the purposes specified under this clause <br />
         		<a id="pl.141.10"></a><var>141.10</var>and included in the county's previous year's levy limitation computed under section <br />
         		
         <statute_ref><a id="pl.141.11"></a><var>141.11</var>275.71
         </statute_ref>, shall be deducted from the levy limit base under section 
         <statute_ref>275.71, subdivision 2</statute_ref>, <br />
         		<a id="pl.141.12"></a><var>141.12</var>when determining the county's current year levy limitation. The county shall provide the <br />
         		<a id="pl.141.13"></a><var>141.13</var>necessary information to the commissioner of revenue for making this determination;<br />
         		<a id="pl.141.14"></a><var>141.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(12) to pay for operation of a lake improvement district, as authorized under section <br />
         		
         <statute_ref><a id="pl.141.15"></a><var>141.15</var>103B.555
         </statute_ref>. If the county utilizes this special levy, any amount levied by the county in the <br />
         		<a id="pl.141.16"></a><var>141.16</var>previous levy year for the purposes specified under this clause and included in the county's <br />
         		<a id="pl.141.17"></a><var>141.17</var>previous year's levy limitation computed under section 
         <statute_ref>275.71</statute_ref> shall be deducted from <br />
         		<a id="pl.141.18"></a><var>141.18</var>the levy limit base under section 
         <statute_ref>275.71, subdivision 2</statute_ref>, when determining the county's <br />
         		<a id="pl.141.19"></a><var>141.19</var>current year levy limitation. The county shall provide the necessary information to the <br />
         		<a id="pl.141.20"></a><var>141.20</var>commissioner of revenue for making this determination;<br />
         		<a id="pl.141.21"></a><var>141.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(13) to repay a state or federal loan used to fund the direct or indirect required <br />
         		<a id="pl.141.22"></a><var>141.22</var>spending by the local government due to a state or federal transportation project or other <br />
         		<a id="pl.141.23"></a><var>141.23</var>state or federal capital project. This authority may only be used if the project is not a <br />
         		<a id="pl.141.24"></a><var>141.24</var>local government initiative;<br />
         		<a id="pl.141.25"></a><var>141.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(14) to pay for court administration costs as required under section 
         <statute_ref>273.1398, <br />
            		<a id="pl.141.26"></a><var>141.26</var>subdivision 4b
         </statute_ref>, less the (i) county's share of transferred fines and fees collected by the <br />
         		<a id="pl.141.27"></a><var>141.27</var>district courts in the county for calendar year 2001 and (ii) the aid amount certified to be <br />
         		<a id="pl.141.28"></a><var>141.28</var>paid to the county in 2004 under section 
         <statute_ref>273.1398, subdivision 4c</statute_ref>; however, for taxes <br />
         		<a id="pl.141.29"></a><var>141.29</var>levied to pay for these costs in the year in which the court financing is transferred to the <br />
         		<a id="pl.141.30"></a><var>141.30</var>state, the amount under this clause is limited to the amount of aid the county is certified to <br />
         		<a id="pl.141.31"></a><var>141.31</var>receive under section 
         <statute_ref>273.1398, subdivision 4a</statute_ref>;<br />
         		<a id="pl.141.32"></a><var>141.32</var>&nbsp;&nbsp;&nbsp;&nbsp;(15) (14) to fund a firefighters relief association as required under Laws 2013, <br />
         		<a id="pl.141.33"></a><var>141.33</var>chapter 111, article 5, sections 31 to 42, to the extent that the required amount exceeds the <br />
         		<a id="pl.141.34"></a><var>141.34</var>amount levied for this purpose in 2001;<br />
         		<a id="pl.141.35"></a><var>141.35</var>&nbsp;&nbsp;&nbsp;&nbsp;(16) (15) for purposes of a storm sewer improvement district under section 
         <statute_ref>444.20</statute_ref>;<br />
         		<a id="pl.142.1"></a><var>142.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(17) (16) to pay for the maintenance and support of a city or county society for <br />
         		<a id="pl.142.2"></a><var>142.2</var>the prevention of cruelty to animals under section 
         <statute_ref>343.11</statute_ref>, but not to exceed in any year <br />
         		<a id="pl.142.3"></a><var>142.3</var>$4,800 or the sum of $1 per capita based on the county's or city's population as of the most <br />
         		<a id="pl.142.4"></a><var>142.4</var>recent federal census, whichever is greater. If the city or county uses this special levy, any <br />
         		<a id="pl.142.5"></a><var>142.5</var>amount levied by the city or county in the previous levy year for the purposes specified <br />
         		<a id="pl.142.6"></a><var>142.6</var>in this clause and included in the city's or county's previous year's levy limit computed <br />
         		<a id="pl.142.7"></a><var>142.7</var>under section 
         <statute_ref>275.71</statute_ref>, must be deducted from the levy limit base under section 
         <statute_ref>275.71, <br />
            		<a id="pl.142.8"></a><var>142.8</var>subdivision 2
         </statute_ref>, in determining the city's or county's current year levy limit;<br />
         		<a id="pl.142.9"></a><var>142.9</var>&nbsp;&nbsp;&nbsp;&nbsp;(18) (17) for counties, to pay for the increase in their share of health and human <br />
         		<a id="pl.142.10"></a><var>142.10</var>service costs caused by reductions in federal health and human services grants effective <br />
         		<a id="pl.142.11"></a><var>142.11</var>after September 30, 2007;<br />
         		<a id="pl.142.12"></a><var>142.12</var>&nbsp;&nbsp;&nbsp;&nbsp;(19) (18) for a city, for the costs reasonably and necessarily incurred for securing, <br />
         		<a id="pl.142.13"></a><var>142.13</var>maintaining, or demolishing foreclosed or abandoned residential properties, as allowed by <br />
         		<a id="pl.142.14"></a><var>142.14</var>the commissioner of revenue under section 
         <statute_ref>275.74, subdivision 2</statute_ref>. A city must have either <br />
         		<a id="pl.142.15"></a><var>142.15</var>(i) a foreclosure rate of at least 1.4 percent in 2007, or (ii) a foreclosure rate in 2007 in <br />
         		<a id="pl.142.16"></a><var>142.16</var>the city or in a zip code area of the city that is at least 50 percent higher than the average <br />
         		<a id="pl.142.17"></a><var>142.17</var>foreclosure rate in the metropolitan area, as defined in section 
         <statute_ref>473.121</statute_ref>, subdivision 2, <br />
         		<a id="pl.142.18"></a><var>142.18</var>to use this special levy. For purposes of this paragraph, "foreclosure rate" means the <br />
         		<a id="pl.142.19"></a><var>142.19</var>number of foreclosures, as indicated by sheriff sales records, divided by the number of <br />
         		<a id="pl.142.20"></a><var>142.20</var>households in the city in 2007;<br />
         		<a id="pl.142.21"></a><var>142.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(20) for a city, for the unreimbursed costs of redeployed traffic-control agents and <br />
         		<a id="pl.142.22"></a><var>142.22</var>lost traffic citation revenue due to the collapse of the Interstate 35W bridge, as certified <br />
         		<a id="pl.142.23"></a><var>142.23</var>to the Federal Highway Administration;<br />
         		<a id="pl.142.24"></a><var>142.24</var>&nbsp;&nbsp;&nbsp;&nbsp;(21) (19) to pay costs attributable to wages and benefits for sheriff, police, and fire <br />
         		<a id="pl.142.25"></a><var>142.25</var>personnel. If a local governmental unit did not use this special levy in the previous year its <br />
         		<a id="pl.142.26"></a><var>142.26</var>levy limit base under section 
         <statute_ref>275.71</statute_ref> shall be reduced by the amount equal to the amount it <br />
         		<a id="pl.142.27"></a><var>142.27</var>levied for the purposes specified in this clause in the previous year;<br />
         		<a id="pl.142.28"></a><var>142.28</var>&nbsp;&nbsp;&nbsp;&nbsp;(22) (20) an amount equal to any reductions in the certified aids or credit <br />
         		<a id="pl.142.29"></a><var>142.29</var>reimbursements payable under sections 
         <statute_ref>477A.011</statute_ref> to 
         <statute_ref>477A.014</statute_ref>, and section 
         <statute_ref>273.1384</statute_ref>, <br />
         		<a id="pl.142.30"></a><var>142.30</var>due to unallotment under section 
         <statute_ref>16A.152</statute_ref> or reductions under another provision of law. <br />
         		<a id="pl.142.31"></a><var>142.31</var>The amount of the levy allowed under this clause for each year is limited to the amount <br />
         		<a id="pl.142.32"></a><var>142.32</var>unallotted or reduced from the aids and credit reimbursements certified for payment in the <br />
         		<a id="pl.142.33"></a><var>142.33</var>year following the calendar year in which the tax levy is certified unless the unallotment <br />
         		<a id="pl.142.34"></a><var>142.34</var>or reduction amount is not known by September 1 of the levy certification year, and <br />
         		<a id="pl.142.35"></a><var>142.35</var>the local government has not adjusted its levy under section 
         <statute_ref>275.065, subdivision 6</statute_ref>, or <br />
         		
         <statute_ref><a id="pl.143.1"></a><var>143.1</var>275.07, subdivision 6
         </statute_ref>, in which case that unallotment or reduction amount may be levied <br />
         		<a id="pl.143.2"></a><var>143.2</var>in the following year;<br />
         		<a id="pl.143.3"></a><var>143.3</var>(23) (21) to pay for the difference between one-half of the costs of confining sex <br />
         		<a id="pl.143.4"></a><var>143.4</var>offenders undergoing the civil commitment process and any state payments for this <br />
         		<a id="pl.143.5"></a><var>143.5</var>purpose pursuant to section 
         <statute_ref>253D.12</statute_ref>;<br />
         		<a id="pl.143.6"></a><var>143.6</var>(24) (22) for a county to pay the costs of the first year of maintaining and operating <br />
         		<a id="pl.143.7"></a><var>143.7</var>a new facility or new expansion, either of which contains courts, corrections, dispatch, <br />
         		<a id="pl.143.8"></a><var>143.8</var>criminal investigation labs, or other public safety facilities and for which all or a portion <br />
         		<a id="pl.143.9"></a><var>143.9</var>of the funding for the site acquisition, building design, site preparation, construction, and <br />
         		<a id="pl.143.10"></a><var>143.10</var>related equipment was issued or authorized prior to the imposition of levy limits in 2008. <br />
         		<a id="pl.143.11"></a><var>143.11</var>The levy limit base shall then be increased by an amount equal to the new facility's first <br />
         		<a id="pl.143.12"></a><var>143.12</var>full year's operating costs as described in this clause; and<br />
         		<a id="pl.143.13"></a><var>143.13</var>(25) (23) for the estimated amount of reduction to market value credit reimbursements <br />
         		<a id="pl.143.14"></a><var>143.14</var>under section 
         <statute_ref>273.1384</statute_ref> for credits payable in the year in which the levy is payable.<br />
         		<a id="pl.143.15"></a><var>143.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.37.0"></a><a id="pl.143.16"></a><var>143.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 37. Minnesota Statutes 2012, section 275.74, subdivision 2, is amended to read:<br />
         		<a id="pl.143.17"></a><var>143.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Authorization for special levies.</b> (a) A local governmental unit may <br />
         		<a id="pl.143.18"></a><var>143.18</var>request authorization to levy for unreimbursed costs for natural disasters under section <br />
         		
         <statute_ref><a id="pl.143.19"></a><var>143.19</var>275.70, subdivision 5
         </statute_ref>, clause (7). The local governmental unit shall submit a request to <br />
         		<a id="pl.143.20"></a><var>143.20</var>levy under section 
         <statute_ref>275.70, subdivision 5</statute_ref>, clause (7), to the commissioner of revenue by <br />
         		<a id="pl.143.21"></a><var>143.21</var>September 30 of the levy year and the request must include information documenting the <br />
         		<a id="pl.143.22"></a><var>143.22</var>estimated unreimbursed costs. The commissioner of revenue may grant levy authority, <br />
         		<a id="pl.143.23"></a><var>143.23</var>up to the amount requested based on the documentation submitted. All decisions of the <br />
         		<a id="pl.143.24"></a><var>143.24</var>commissioner are final.<br />
         		<a id="pl.143.25"></a><var>143.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) A city may request authorization to levy for reasonable and necessary costs for <br />
         		<a id="pl.143.26"></a><var>143.26</var>securing, maintaining, or demolishing foreclosed or abandoned residential properties under <br />
         		<a id="pl.143.27"></a><var>143.27</var>section 
         <statute_ref>275.70, subdivision 5</statute_ref>, clause (19) (18). The local governmental unit shall submit a <br />
         		<a id="pl.143.28"></a><var>143.28</var>request to levy under section 
         <statute_ref>275.70, subdivision 5</statute_ref>, clause (19) (18), to the commissioner <br />
         		<a id="pl.143.29"></a><var>143.29</var>of revenue by September 30 of the levy year and the request must include information <br />
         		<a id="pl.143.30"></a><var>143.30</var>documenting the estimated costs. For taxes payable in 2009, the amount may include <br />
         		<a id="pl.143.31"></a><var>143.31</var>unanticipated costs incurred above the amount budgeted for these purposes in 2008. Costs <br />
         		<a id="pl.143.32"></a><var>143.32</var>of securing foreclosed or abandoned residential properties include payment for police and <br />
         		<a id="pl.143.33"></a><var>143.33</var>fire department services. The commissioner of revenue may grant levy authority, up to the <br />
         		<a id="pl.143.34"></a><var>143.34</var>lesser of (1) the amount requested based on the documentation submitted, or (2) $3,000 <br />
         		<a id="pl.144.1"></a><var>144.1</var>multiplied by the number of foreclosed residential properties, as defined by sheriff sales <br />
         		<a id="pl.144.2"></a><var>144.2</var>records, in calendar year 2007. All decisions of the commissioner are final.<br />
         		<a id="pl.144.3"></a><var>144.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.38.0"></a><a id="pl.144.4"></a><var>144.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 38. Minnesota Statutes 2012, section 275.75, is amended to read:<br />
         		<a id="pl.144.5"></a><var>144.5</var><b>275.75 CHARTER EXEMPTION FOR AID LOSS.</b><br />
         		<a id="pl.144.6"></a><var>144.6</var>Notwithstanding any other provision of a municipal charter that limits ad valorem <br />
         		<a id="pl.144.7"></a><var>144.7</var>taxes to a lesser amount, or that would require voter approval for any increase, the <br />
         		<a id="pl.144.8"></a><var>144.8</var>governing body of a municipality may by resolution increase its levy in any year by an <br />
         		<a id="pl.144.9"></a><var>144.9</var>amount equal to its special levies under section 
         <statute_ref>275.70, subdivision 5</statute_ref>, clauses (22) and <br />
         		<a id="pl.144.10"></a><var>144.10</var>(25) (20) and (23).<br />
         		<a id="pl.144.11"></a><var>144.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.39.0"></a><a id="pl.144.12"></a><var>144.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 39. Minnesota Statutes 2012, section 279.03, subdivision 1, is amended to read:<br />
         		<a id="pl.144.13"></a><var>144.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Rate</b><b> Interest calculation</b><b>.</b> The rate of interest on delinquent <br />
         		<a id="pl.144.14"></a><var>144.14</var>property taxes levied in 1979 and prior years is fixed at six percent per year until January <br />
         		<a id="pl.144.15"></a><var>144.15</var>1, 1983. Thereafter Interest is payable at the rate determined pursuant to section 
         <statute_ref>549.09</statute_ref>. <br />
         		<a id="pl.144.16"></a><var>144.16</var>The rate of interest on delinquent property taxes levied in 1980 and subsequent years is <br />
         		<a id="pl.144.17"></a><var>144.17</var>the rate determined pursuant to section 
         <statute_ref>549.09</statute_ref>. All provisions of law except section <br />
         		<a id="pl.144.18"></a><var>144.18</var><statute_ref>549.09</statute_ref> providing for the calculation of interest at any different rate on delinquent taxes in <br />
         		<a id="pl.144.19"></a><var>144.19</var>any notice or proceeding in connection with the payment, collection, sale, or assignment <br />
         		<a id="pl.144.20"></a><var>144.20</var>of delinquent taxes, or redemption from such sale or assignment are hereby amended <br />
         		<a id="pl.144.21"></a><var>144.21</var>to correspond herewith. Section 
         <statute_ref>549.09</statute_ref> shall continue in force applies with respect to <br />
         		<a id="pl.144.22"></a><var>144.22</var>judgments arising out of petitions for review filed pursuant to chapter 278 irrespective of <br />
         		<a id="pl.144.23"></a><var>144.23</var>the levy year.<br />
         		<a id="pl.144.24"></a><var>144.24</var>For property taxes levied in 1980 and prior years, interest is to be calculated at <br />
         		<a id="pl.144.25"></a><var>144.25</var>simple interest from the second Monday in May following the year in which the taxes <br />
         		<a id="pl.144.26"></a><var>144.26</var>become due until the time that the taxes and penalties are paid, computed on the amount <br />
         		<a id="pl.144.27"></a><var>144.27</var>of unpaid taxes, penalties and costs. For property taxes levied in 1981 and subsequent <br />
         		<a id="pl.144.28"></a><var>144.28</var>years, Interest shall commence on the first day of January following the year in which the <br />
         		<a id="pl.144.29"></a><var>144.29</var>taxes become due, but the county treasurer need not calculate interest on unpaid taxes and <br />
         		<a id="pl.144.30"></a><var>144.30</var>penalties on the tax list returned to the county auditor pursuant to section 
         <statute_ref>279.01</statute_ref>.<br />
         		<a id="pl.144.31"></a><var>144.31</var>If interest is payable for a portion of a year, the interest is calculated only for the <br />
         		<a id="pl.144.32"></a><var>144.32</var>months that the taxes or penalties remain unpaid, and for this purpose a portion of a month <br />
         		<a id="pl.144.33"></a><var>144.33</var>is deemed to be a whole month.<br />
         		<a id="pl.145.1"></a><var>145.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.40.0"></a><a id="pl.145.2"></a><var>145.2</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 40. Minnesota Statutes 2012, section 279.03, subdivision 1a, is amended to read:<br />
         		<a id="pl.145.3"></a><var>145.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 1a. <b>Rate </b><b>after December 31, 1990</b><b>.</b> (a) Except as provided in paragraph (b), <br />
         		<a id="pl.145.4"></a><var>145.4</var>interest on delinquent property taxes, penalties, and costs unpaid on or after January 1, <br />
         		<a id="pl.145.5"></a><var>145.5</var>1991, shall be is payable at the per annum rate determined in section 
         <statute_ref>270C.40, subdivision <br />
            		<a id="pl.145.6"></a><var>145.6</var>5
         </statute_ref>. If the rate so determined is less than ten percent, the rate of interest shall be is ten <br />
         		<a id="pl.145.7"></a><var>145.7</var>percent. The maximum per annum rate shall be is 14 percent if the rate specified under <br />
         		<a id="pl.145.8"></a><var>145.8</var>section 
         <statute_ref>270C.40, subdivision 5</statute_ref>, exceeds 14 percent. The rate shall be is subject to change <br />
         		<a id="pl.145.9"></a><var>145.9</var>on January 1 of each year.<br />
         		<a id="pl.145.10"></a><var>145.10</var>(b) If a person is the owner of one or more parcels of property on which taxes are <br />
         		<a id="pl.145.11"></a><var>145.11</var>delinquent, and the delinquent taxes are more than 25 percent of the prior year's school <br />
         		<a id="pl.145.12"></a><var>145.12</var>district levy, interest on the delinquent property taxes, penalties, and costs unpaid after <br />
         		<a id="pl.145.13"></a><var>145.13</var>January 1, 1992, shall be is payable at twice the rate determined under paragraph (a) for <br />
         		<a id="pl.145.14"></a><var>145.14</var>the year.<br />
         		<a id="pl.145.15"></a><var>145.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.41.0"></a><a id="pl.145.16"></a><var>145.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 41. Minnesota Statutes 2012, section 279.16, is amended to read:<br />
         		<a id="pl.145.17"></a><var>145.17</var><b>279.16 JUDGMENT WHEN NO ANSWER; FORM; ENTRY.</b><br />
         		<a id="pl.145.18"></a><var>145.18</var>Upon the expiration of 20 days from the later of the filing of the affidavit of <br />
         		<a id="pl.145.19"></a><var>145.19</var>publication or the filing of the affidavit of mailing pursuant to section 
         <statute_ref>279.131</statute_ref>, the <br />
         		<a id="pl.145.20"></a><var>145.20</var>court administrator shall enter judgment against each and every such parcel as to which <br />
         		<a id="pl.145.21"></a><var>145.21</var>no answer has been filed, which judgment shall include all such parcels, and shall be <br />
         		<a id="pl.145.22"></a><var>145.22</var>substantially in the following form:<br />
         		
         <table>
            <col width="50px"></col>
            <col width="15"></col>
            <col width="5"></col>
            <col width="35"></col>
            <col width="10"></col>
            <tr>
               <td><a id="pl.145.23"></a><var>145.23</var><br />
                  		
               </td>
               <td>State of Minnesota<br />
                  		
               </td>
               <td>)<br />
                  		
               </td>
               <td align="right">District Court,<br />
                  		
               </td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.145.24"></a><var>145.24</var><br />
                  		
               </td>
               <td></td>
               <td>) ss.<br />
                  		
               </td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.145.25"></a><var>145.25</var><br />
                  		
               </td>
               <td>County of <br />
                  		<span>
                     							.....
                     						</span></td>
               <td>)<br />
                  		
               </td>
               <td align="right">.............. Judicial District.<br />
                  		
               </td>
               <td></td>
            </tr>
         </table><a id="pl.145.26"></a><var>145.26</var>In the matter of the proceedings to enforce payment of the taxes on real estate <br />
         		<a id="pl.145.27"></a><var>145.27</var>remaining delinquent on the first Monday in January, ......., for the county of ...................., <br />
         		<a id="pl.145.28"></a><var>145.28</var>state of Minnesota.<br />
         		<a id="pl.145.29"></a><var>145.29</var>A list of taxes on real property, delinquent on the first Monday in January, ......., for <br />
         		<a id="pl.145.30"></a><var>145.30</var>said county of ................., having been duly filed in the office of the court administrator of <br />
         		<a id="pl.145.31"></a><var>145.31</var>this court, and the notice and list required by law having been duly published and mailed <br />
         		<a id="pl.145.32"></a><var>145.32</var>as required by law, and more than 20 days having elapsed since the last publication of the <br />
         		<a id="pl.145.33"></a><var>145.33</var>notice and list, and no answer having been filed by any person, company, or corporation <br />
         		<a id="pl.146.1"></a><var>146.1</var>to the taxes upon any of the parcels of land hereinafter described, it is hereby adjudged <br />
         		<a id="pl.146.2"></a><var>146.2</var>that each parcel of land hereinafter described is liable for taxes, penalties, and costs to the <br />
         		<a id="pl.146.3"></a><var>146.3</var>amount set opposite the same, as follows:<br />
         		
         <table>
            <col width="50px"></col>
            <col width="25"></col>
            <col width="20"></col>
            <col width="20"></col>
            <tr>
               <td><a id="pl.146.4"></a><var>146.4</var><br />
                  		
               </td>
               <td align="center">Description.<br />
                  		
               </td>
               <td align="center">Parcel Number.<br />
                  		
               </td>
               <td align="center">Amount.<br />
                  		
               </td>
            </tr>
         </table><a id="pl.146.5"></a><var>146.5</var>The amount of taxes, penalties, and cost to which, as hereinbefore stated, each of <br />
         		<a id="pl.146.6"></a><var>146.6</var>such parcels of land is liable, is hereby declared a lien upon such parcel of land as against <br />
         		<a id="pl.146.7"></a><var>146.7</var>the estate, right, title, interest, claim, or lien, of whatever nature, in law or equity, of every <br />
         		<a id="pl.146.8"></a><var>146.8</var>person, company, or corporation; and it is adjudged that, unless the amount to which <br />
         		<a id="pl.146.9"></a><var>146.9</var>each of such parcels is liable be paid, each of such parcels be sold, as provided by law, <br />
         		<a id="pl.146.10"></a><var>146.10</var>to satisfy the amount to which it is liable.<br />
         		
         <table>
            <col width="50px"></col>
            <col width="21px"></col>
            <col width="30"></col>
            <col width="30"></col>
            <tr>
               <td><a id="pl.146.11"></a><var>146.11</var><br />
                  		
               </td>
               <td></td>
               <td>Dated this ............. day of ..............., .......<br />
                  		
               </td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.146.12"></a><var>146.12</var><br />
                  		<a id="pl.146.13"></a><var>146.13</var><br />
                  		<a id="pl.146.14"></a><var>146.14</var><br />
                  		
               </td>
               <td></td>
               <td><span>
                     							.....
                     						</span><br />
                  		Court Administrator of the District Court,<br />
                  		County of <br />
                  		<span>
                     							.....
                     						</span></td>
               <td></td>
            </tr>
         </table><a id="pl.146.15"></a><var>146.15</var>The judgment shall be entered by the court administrator in a book to be kept by <br />
         		<a id="pl.146.16"></a><var>146.16</var>the court administrator, to be called the real estate tax judgment book, and signed by the <br />
         		<a id="pl.146.17"></a><var>146.17</var>court administrator. The judgment shall be written out on the left-hand pages of the book, <br />
         		<a id="pl.146.18"></a><var>146.18</var>leaving the right-hand pages blank for the entries in this chapter hereinafter provided; and<br />
         		<a id="pl.146.19"></a><var>146.19</var> The same presumption in favor of the regularity and validity of the judgment shall be <br />
         		<a id="pl.146.20"></a><var>146.20</var>deemed to exist as in respect to judgments in civil actions in such court, except where taxes <br />
         		<a id="pl.146.21"></a><var>146.21</var>have been paid before the entry of judgment, or where the land is exempt from taxation, in <br />
         		<a id="pl.146.22"></a><var>146.22</var>which cases the judgment shall be prima facie evidence only of its regularity and validity.<br />
         		<a id="pl.146.23"></a><var>146.23</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.42.0"></a><a id="pl.146.24"></a><var>146.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 42. Minnesota Statutes 2012, section 279.23, is amended to read:<br />
         		<a id="pl.146.25"></a><var>146.25</var><b>279.23 COPY OF JUDGMENT TO COUNTY AUDITOR.</b><br />
         		<a id="pl.146.26"></a><var>146.26</var>When any real estate tax judgment is entered, the court administrator shall forthwith<br />
         		<a id="pl.146.27"></a><var>146.27</var> deliver to the county auditor, in a book to be provided by the auditor, a certified copy of <br />
         		<a id="pl.146.28"></a><var>146.28</var>such judgment, which shall be written on the left-hand pages of the book, leaving the <br />
         		<a id="pl.146.29"></a><var>146.29</var>right-hand pages blank.<br />
         		<a id="pl.146.30"></a><var>146.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.43.0"></a><a id="pl.146.31"></a><var>146.31</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 43. Minnesota Statutes 2012, section 279.25, is amended to read:<br />
         		<a id="pl.146.32"></a><var>146.32</var><b>279.25 PAYMENT BEFORE JUDGMENT.</b><br />
         		<a id="pl.147.1"></a><var>147.1</var>Before sale any person may pay the amount adjudged against any parcel of land. <br />
         		<a id="pl.147.2"></a><var>147.2</var>If payment is made before entry of judgment, and the delinquent list has been filed with <br />
         		<a id="pl.147.3"></a><var>147.3</var>the court administrator, the county auditor shall immediately certify such payment to the <br />
         		<a id="pl.147.4"></a><var>147.4</var>court administrator, who shall note the same on such delinquent list; and all proceedings <br />
         		<a id="pl.147.5"></a><var>147.5</var>pending against such parcel shall thereupon be discontinued. If payment is made after <br />
         		<a id="pl.147.6"></a><var>147.6</var>judgment is entered and before sale, the auditor shall certify such payment to the clerk, <br />
         		<a id="pl.147.7"></a><var>147.7</var>who, upon production of such certificate and the payment of a fee of ten cents, shall enter <br />
         		<a id="pl.147.8"></a><var>147.8</var>on the right-hand page of the real estate tax judgment book, and opposite the description <br />
         		<a id="pl.147.9"></a><var>147.9</var>of such parcel, satisfaction of the judgment against the same. The auditor shall make <br />
         		<a id="pl.147.10"></a><var>147.10</var>proper records of all payments made under this section.<br />
         		<a id="pl.147.11"></a><var>147.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.44.0"></a><a id="pl.147.12"></a><var>147.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 44. Minnesota Statutes 2013 Supplement, section 279.37, subdivision 2, is <br />
         		<a id="pl.147.13"></a><var>147.13</var>amended to read:<br />
         		<a id="pl.147.14"></a><var>147.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Installment payments.</b> The owner of any such parcel, or any person to <br />
         		<a id="pl.147.15"></a><var>147.15</var>whom the right to pay taxes has been given by statute, mortgage, or other agreement, may <br />
         		<a id="pl.147.16"></a><var>147.16</var>make and file with the county auditor of the county in which the parcel is located a written <br />
         		<a id="pl.147.17"></a><var>147.17</var>offer to pay the current taxes each year before they become delinquent, or to contest the <br />
         		<a id="pl.147.18"></a><var>147.18</var>taxes under Minnesota Statutes 1941, sections 
         <statute_ref>278.01</statute_ref> to 
         <statute_ref>278.13</statute_ref> chapter 278, and agree <br />
         		<a id="pl.147.19"></a><var>147.19</var>to confess judgment for the amount provided, as determined by the county auditor. By <br />
         		<a id="pl.147.20"></a><var>147.20</var>filing the offer, the owner waives all irregularities in connection with the tax proceedings <br />
         		<a id="pl.147.21"></a><var>147.21</var>affecting the parcel and any defense or objection which the owner may have to the <br />
         		<a id="pl.147.22"></a><var>147.22</var>proceedings, and also waives the requirements of any notice of default in the payment of <br />
         		<a id="pl.147.23"></a><var>147.23</var>any installment or interest to become due pursuant to the composite judgment to be so <br />
         		<a id="pl.147.24"></a><var>147.24</var>entered. Unless the property is subject to subdivision 1a, with the offer, the owner shall (i) <br />
         		<a id="pl.147.25"></a><var>147.25</var>tender one-tenth of the amount of the delinquent taxes, costs, penalty, and interest, and <br />
         		<a id="pl.147.26"></a><var>147.26</var>(ii) tender all current year taxes and penalty due at the time the confession of judgment is <br />
         		<a id="pl.147.27"></a><var>147.27</var>entered. In the offer, the owner shall agree to pay the balance in nine equal installments, <br />
         		<a id="pl.147.28"></a><var>147.28</var>with interest as provided in section 
         <statute_ref>279.03</statute_ref>, payable annually on installments remaining <br />
         		<a id="pl.147.29"></a><var>147.29</var>unpaid from time to time, on or before December 31 of each year following the year in <br />
         		<a id="pl.147.30"></a><var>147.30</var>which judgment was confessed. The offer must be substantially as follows:<br />
         		<a id="pl.147.31"></a><var>147.31</var>"To the court administrator of the district court of ........... county, I, ....................., <br />
         		<a id="pl.147.32"></a><var>147.32</var>am the owner of the following described parcel of real estate located in .................... <br />
         		<a id="pl.147.33"></a><var>147.33</var>county, Minnesota:<br />
         		<a id="pl.147.34"></a><var>147.34</var>.............................. Upon that real estate there are delinquent taxes for the year ........., and <br />
         		<a id="pl.147.35"></a><var>147.35</var>prior years, as follows: (here insert year of delinquency and the total amount of delinquent <br />
         		<a id="pl.148.1"></a><var>148.1</var>taxes, costs, interest, and penalty). By signing this document I offer to confess judgment in <br />
         		<a id="pl.148.2"></a><var>148.2</var>the sum of $...... and waive all irregularities in the tax proceedings affecting these taxes and <br />
         		<a id="pl.148.3"></a><var>148.3</var>any defense or objection which I may have to them, and direct judgment to be entered for <br />
         		<a id="pl.148.4"></a><var>148.4</var>the amount stated above, minus the sum of $............, to be paid with this document, which <br />
         		<a id="pl.148.5"></a><var>148.5</var>is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and interest stated above. <br />
         		<a id="pl.148.6"></a><var>148.6</var>I agree to pay the balance of the judgment in nine or four equal, annual installments, with <br />
         		<a id="pl.148.7"></a><var>148.7</var>interest as provided in section 
         <statute_ref>279.03</statute_ref>, payable annually, on the installments remaining <br />
         		<a id="pl.148.8"></a><var>148.8</var>unpaid. I agree to pay the installments and interest on or before December 31 of each year <br />
         		<a id="pl.148.9"></a><var>148.9</var>following the year in which this judgment is confessed and current taxes each year before <br />
         		<a id="pl.148.10"></a><var>148.10</var>they become delinquent, or within 30 days after the entry of final judgment in proceedings <br />
         		<a id="pl.148.11"></a><var>148.11</var>to contest the taxes under Minnesota Statutes, sections 
         <statute_ref>278.01</statute_ref> to 
         <statute_ref>278.13</statute_ref> chapter 278.<br />
         		<a id="pl.148.12"></a><var>148.12</var>Dated .............., ......."<br />
         		<a id="pl.148.13"></a><var>148.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.45.0"></a><a id="pl.148.14"></a><var>148.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 45. Minnesota Statutes 2012, section 280.001, is amended to read:<br />
         		<a id="pl.148.15"></a><var>148.15</var><b>280.001 PUBLIC SALES, AUDITOR'S CERTIFICATES ABOLISHED.</b><br />
         		<a id="pl.148.16"></a><var>148.16</var>Effective the second Monday in May 1974, and each year thereafter, No parcel of <br />
         		<a id="pl.148.17"></a><var>148.17</var>land against which judgment has been entered and remains unsatisfied for the taxes of <br />
         		<a id="pl.148.18"></a><var>148.18</var>the preceding year or years may be sold at public vendue as provided in sections 
         <statute_ref>280.01</statute_ref> <br />
         		<a id="pl.148.19"></a><var>148.19</var>and 
         <statute_ref>280.02</statute_ref> by the county auditor but shall be treated in the same manner and regarded in <br />
         		<a id="pl.148.20"></a><var>148.20</var>all respects as land bid in for the state by the auditor in the manner provided in section <br />
         		
         <statute_ref><a id="pl.148.21"></a><var>148.21</var>280.02
         </statute_ref>. No notice of sale required by section 
         <statute_ref>280.01</statute_ref> shall be published or posted in 1974 <br />
         		<a id="pl.148.22"></a><var>148.22</var>and in years thereafter, and no auditor's certificate authorized by section 
         <statute_ref>280.03</statute_ref> shall be <br />
         		<a id="pl.148.23"></a><var>148.23</var>issued on the second Monday in May 1974, or thereafter.<br />
         		<a id="pl.148.24"></a><var>148.24</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.46.0"></a><a id="pl.148.25"></a><var>148.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 46. Minnesota Statutes 2012, section 280.03, is amended to read:<br />
         		<a id="pl.148.26"></a><var>148.26</var><b>280.03 CERTIFICATE OF SALE.</b><br />
         		<a id="pl.148.27"></a><var>148.27</var>The county auditor shall execute to the purchaser of each parcel a certificate which <br />
         		<a id="pl.148.28"></a><var>148.28</var>may be substantially in the following form:<br />
         		<a id="pl.148.29"></a><var>148.29</var>"I, .........., auditor of the county of .........., state of Minnesota, do hereby certify that <br />
         		<a id="pl.148.30"></a><var>148.30</var>at the sale of lands pursuant to the real estate tax judgment entered in the district court <br />
         		<a id="pl.148.31"></a><var>148.31</var>in the county of .........., on the .......... day of .........., ......., in proceedings to enforce the <br />
         		<a id="pl.148.32"></a><var>148.32</var>payment of taxes delinquent on real estate for the years .........., for the county of .........., <br />
         		<a id="pl.148.33"></a><var>148.33</var>which sale was held at ..............., in said county of ........, on the ........ day of ........, ......., <br />
         		<a id="pl.149.1"></a><var>149.1</var>the following described parcel of land, situate in said county of .........., state of Minnesota: <br />
         		<a id="pl.149.2"></a><var>149.2</var>(insert description), was offered for sale to the bidder who should offer to pay the amount <br />
         		<a id="pl.149.3"></a><var>149.3</var>for which the same was to be sold, at the lowest annual rate of interest on such amount; <br />
         		<a id="pl.149.4"></a><var>149.4</var>and at said sale I did sell the said parcel of land to .......... for the sum of .......... dollars, <br />
         		<a id="pl.149.5"></a><var>149.5</var>with interest at .......... percent per annum on such amount, that being the sum for which the <br />
         		<a id="pl.149.6"></a><var>149.6</var>same was to be sold, and such rate of interest being the lowest rate percent per annum bid <br />
         		<a id="pl.149.7"></a><var>149.7</var>on such sum; and, the sum having been paid, I do therefore, in consideration thereof, and <br />
         		<a id="pl.149.8"></a><var>149.8</var>pursuant to the statute in such case made and provided, convey the said parcel of land, in <br />
         		<a id="pl.149.9"></a><var>149.9</var>fee simple, subject to easements and restrictions of record at the date of the tax judgment <br />
         		<a id="pl.149.10"></a><var>149.10</var>sale, including, but without limitation, permits for telephone, telegraph and electric <br />
         		<a id="pl.149.11"></a><var>149.11</var>power lines either by underground cable or conduit or otherwise, sewer and water lines, <br />
         		<a id="pl.149.12"></a><var>149.12</var>highways, railroads, and pipe lines for gas, liquids, or solids in suspension, to said .........., <br />
         		<a id="pl.149.13"></a><var>149.13</var>and the heirs and assigns of ......., forever, subject to redemption as provided by law.<br />
         		<a id="pl.149.14"></a><var>149.14</var>Witness my hand and official seal this ........ day of ........, ....... .<br />
         		
         <table>
            <col width="50px"></col>
            <col width="30"></col>
            <col width="30"></col>
            <col width="5"></col>
            <tr>
               <td><a id="pl.149.15"></a><var>149.15</var><br />
                  		<a id="pl.149.16"></a><var>149.16</var><br />
                  		
               </td>
               <td></td>
               <td><span>
                     							.....
                     						</span><br />
                  		County Auditor."<br />
                  		
               </td>
               <td></td>
            </tr>
         </table><a id="pl.149.17"></a><var>149.17</var>If the land shall not be redeemed as provided in chapter 281, such certificate shall <br />
         		<a id="pl.149.18"></a><var>149.18</var>pass to the purchaser an estate therein, in fee simple, without any other act or deed <br />
         		<a id="pl.149.19"></a><var>149.19</var>whatever subject to easements and restrictions of record at the date of the tax judgment <br />
         		<a id="pl.149.20"></a><var>149.20</var>sale, including, but without limitation, permits for telephone, telegraph, and electric <br />
         		<a id="pl.149.21"></a><var>149.21</var>power lines either by underground cable or conduit or otherwise, sewer and water lines, <br />
         		<a id="pl.149.22"></a><var>149.22</var>highways, railroads, and pipe lines for gas, liquids, or solids in suspension. Such certificate <br />
         		<a id="pl.149.23"></a><var>149.23</var>may be recorded, after the time for redemption shall have expired, as other deeds of real <br />
         		<a id="pl.149.24"></a><var>149.24</var>estate, and with like effect. If any purchaser at such sale shall purchase more than one <br />
         		<a id="pl.149.25"></a><var>149.25</var>parcel, the auditor shall issue to the purchaser a certificate for each parcel so purchased.<br />
         		<a id="pl.149.26"></a><var>149.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.47.0"></a><a id="pl.149.27"></a><var>149.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 47. Minnesota Statutes 2012, section 280.07, is amended to read:<br />
         		<a id="pl.149.28"></a><var>149.28</var><b>280.07 ENTRIES </b><b>IN JUDGMENT BOOKS</b><b> AFTER SALE.</b><br />
         		<a id="pl.149.29"></a><var>149.29</var>Immediately after such sale the county auditor shall set out in the copy judgment <br />
         		<a id="pl.149.30"></a><var>149.30</var>book record that all parcels were bid in for the state. The county auditor shall thereupon <br />
         		<a id="pl.149.31"></a><var>149.31</var>deliver such book to notify the court administrator, who shall forthwith enter on the <br />
         		<a id="pl.149.32"></a><var>149.32</var>right-hand page of the real estate tax judgment book, opposite the description of each <br />
         		<a id="pl.149.33"></a><var>149.33</var>parcel sold, the words "bid in for the state," and thereupon redeliver the copy judgment <br />
         		<a id="pl.149.34"></a><var>149.34</var>book to the auditor. Upon redemption the auditor shall make a note thereon in the copy <br />
         		<a id="pl.149.35"></a><var>149.35</var>judgment book, opposite the parcel redeemed.<br />
         		<a id="pl.150.1"></a><var>150.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.48.0"></a><a id="pl.150.2"></a><var>150.2</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 48. Minnesota Statutes 2012, section 280.11, is amended to read:<br />
         		<a id="pl.150.3"></a><var>150.3</var><b>280.11 LANDS BID IN FOR STATE.</b><br />
         		<a id="pl.150.4"></a><var>150.4</var>At any time after any parcel of land has been bid in for the state, the same not having <br />
         		<a id="pl.150.5"></a><var>150.5</var>been redeemed, the county auditor shall assign and convey the same, and all the right of <br />
         		<a id="pl.150.6"></a><var>150.6</var>the state therein acquired at such sale, to any person who shall pay the amount for which <br />
         		<a id="pl.150.7"></a><var>150.7</var>the same was bid in, with interest at the rate of 12 percent per annum, and the amount of <br />
         		<a id="pl.150.8"></a><var>150.8</var>all subsequent delinquent taxes, penalties, costs, and interest at such rate upon the same <br />
         		<a id="pl.150.9"></a><var>150.9</var>from the time when such taxes became delinquent. The county auditor shall execute to <br />
         		<a id="pl.150.10"></a><var>150.10</var>such person a certificate for such parcel, which may be substantially in the following form:<br />
         		<a id="pl.150.11"></a><var>150.11</var>"I, .........., auditor of the county of .........., state of Minnesota, do hereby certify that <br />
         		<a id="pl.150.12"></a><var>150.12</var>at the sale of lands pursuant to the real estate tax judgment entered in the district court <br />
         		<a id="pl.150.13"></a><var>150.13</var>in the county of .........., on the .......... day of .........., ......., in proceedings to enforce the <br />
         		<a id="pl.150.14"></a><var>150.14</var>payment of taxes delinquent upon real estate for the years .......... for the county of .........., <br />
         		<a id="pl.150.15"></a><var>150.15</var>which sale was held at .........., in said county of .........., on the .......... day of .........., ......., <br />
         		<a id="pl.150.16"></a><var>150.16</var>the following described parcel of land, situate in said county of .........., state of Minnesota: <br />
         		<a id="pl.150.17"></a><var>150.17</var>(insert description), was duly offered for sale; and, no one bidding upon such offer an <br />
         		<a id="pl.150.18"></a><var>150.18</var>amount equal to that for which the parcel was subject to be sold, the same was then bid in <br />
         		<a id="pl.150.19"></a><var>150.19</var>for the state at such amount, being the sum of .......... dollars; and the same still remaining <br />
         		<a id="pl.150.20"></a><var>150.20</var>unredeemed, and on this day .......... having paid into the treasury of the county the amount <br />
         		<a id="pl.150.21"></a><var>150.21</var>for which the same was so bid in, and all subsequent delinquent taxes, penalties, costs, <br />
         		<a id="pl.150.22"></a><var>150.22</var>and interest, amounting in all to .......... dollars, therefore, in consideration thereof, and <br />
         		<a id="pl.150.23"></a><var>150.23</var>pursuant to the statute in such case made and provided, I do hereby assign and convey this <br />
         		<a id="pl.150.24"></a><var>150.24</var>parcel of land, in fee simple, subject to easements and restrictions of record at the date of <br />
         		<a id="pl.150.25"></a><var>150.25</var>the tax judgment sale, including but without limitation, permits for telephone, telegraph,<br />
         		<a id="pl.150.26"></a><var>150.26</var> and electric power lines either by underground cable or conduit or otherwise, sewer and <br />
         		<a id="pl.150.27"></a><var>150.27</var>water lines, highways, railroads, and pipe lines for gas, liquids, or solids in suspension, <br />
         		<a id="pl.150.28"></a><var>150.28</var>with all the right, title and interest of the state acquired therein at such sale to .........., and <br />
         		<a id="pl.150.29"></a><var>150.29</var>the heirs and assigns of ........, forever, subject to redemption as provided by law.<br />
         		<a id="pl.150.30"></a><var>150.30</var>Witness my hand and official seal this .......... day of .........., .......<br />
         		
         <table>
            <col width="50px"></col>
            <col width="30"></col>
            <col width="30"></col>
            <col width="5"></col>
            <tr>
               <td><a id="pl.150.31"></a><var>150.31</var><br />
                  		<a id="pl.150.32"></a><var>150.32</var><br />
                  		
               </td>
               <td></td>
               <td><span>
                     							.....
                     						</span><br />
                  		County Auditor."<br />
                  		
               </td>
               <td></td>
            </tr>
         </table><a id="pl.150.33"></a><var>150.33</var>If the land shall not be redeemed, as provided in chapter 281, such certificate shall <br />
         		<a id="pl.150.34"></a><var>150.34</var>pass to the purchaser or assignee an estate therein, in fee simple, without any other act <br />
         		<a id="pl.150.35"></a><var>150.35</var>or deed whatever subject to easements and restrictions of record at the date of the tax <br />
         		<a id="pl.151.1"></a><var>151.1</var>judgment sale, including, but without limitation, permits for telephone, telegraph and <br />
         		<a id="pl.151.2"></a><var>151.2</var>electric power lines either by underground cable or conduit or otherwise, sewer and water <br />
         		<a id="pl.151.3"></a><var>151.3</var>lines, highways, railroads, and pipe lines for gas, liquids, or solids in suspension. Such <br />
         		<a id="pl.151.4"></a><var>151.4</var>certificate or conveyance may be recorded, after the time for redemption shall have <br />
         		<a id="pl.151.5"></a><var>151.5</var>expired, as other deeds of real estate, and with like effect. No assignment of the right of <br />
         		<a id="pl.151.6"></a><var>151.6</var>the state shall be given pursuant to this section after January 1, 1972.<br />
         		<a id="pl.151.7"></a><var>151.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.49.0"></a><a id="pl.151.8"></a><var>151.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 49. Minnesota Statutes 2012, section 281.03, is amended to read:<br />
         		<a id="pl.151.9"></a><var>151.9</var><b>281.03 AUDITOR'S CERTIFICATE.</b><br />
         		<a id="pl.151.10"></a><var>151.10</var>The county auditor shall certify to the amount due on such redemption, and, on <br />
         		<a id="pl.151.11"></a><var>151.11</var>payment of the same to the county treasurer, shall make duplicate receipts for the certified <br />
         		<a id="pl.151.12"></a><var>151.12</var>amount, describing the property redeemed, one of which shall be filed with the auditor. <br />
         		<a id="pl.151.13"></a><var>151.13</var>Such receipts shall be governed by the provisions of this chapter regulating the payment <br />
         		<a id="pl.151.14"></a><var>151.14</var>of current taxes and such payment shall have the effect to annul the sale. If the amount <br />
         		<a id="pl.151.15"></a><var>151.15</var>certified by the auditor and received in payment for redemption be less than that required <br />
         		<a id="pl.151.16"></a><var>151.16</var>by law, it shall not invalidate the redemption. On redemption being made, the auditor shall <br />
         		<a id="pl.151.17"></a><var>151.17</var>enter upon the copy of the tax judgment book, opposite the description of record the <br />
         		<a id="pl.151.18"></a><var>151.18</var>parcel as redeemed, the word, "redeemed.".<br />
         		<a id="pl.151.19"></a><var>151.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.50.0"></a><a id="pl.151.20"></a><var>151.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 50. Minnesota Statutes 2013 Supplement, section 281.17, is amended to read:<br />
         		<a id="pl.151.21"></a><var>151.21</var><b>281.17 PERIOD FOR REDEMPTION.</b><br />
         		<a id="pl.151.22"></a><var>151.22</var>Except for properties for which the period of redemption has been limited under <br />
         		<a id="pl.151.23"></a><var>151.23</var>sections 
         <statute_ref>281.173</statute_ref> and 
         <statute_ref>281.174</statute_ref>, the following periods for redemption apply.<br />
         		<a id="pl.151.24"></a><var>151.24</var>The period of redemption for all lands sold to the state at a tax judgment sale shall <br />
         		<a id="pl.151.25"></a><var>151.25</var>be three years from the date of sale to the state of Minnesota.<br />
         		<a id="pl.151.26"></a><var>151.26</var>The period of redemption for homesteaded lands as defined in section 
         <statute_ref>273.13, <br />
            		<a id="pl.151.27"></a><var>151.27</var>subdivision 22
         </statute_ref>, located in a targeted neighborhood as defined in Laws 1987, chapter 386, <br />
         		<a id="pl.151.28"></a><var>151.28</var>article 6, section 4, and sold to the state at a tax judgment sale is three years from the date <br />
         		<a id="pl.151.29"></a><var>151.29</var>of sale. The period of redemption for all lands located in a targeted neighborhood as <br />
         		<a id="pl.151.30"></a><var>151.30</var>defined in Laws 1987, chapter 386, article 6, section 4, except (1) homesteaded lands as <br />
         		<a id="pl.151.31"></a><var>151.31</var>defined in section 
         <statute_ref>273.13, subdivision 22</statute_ref>, and (2) for periods of redemption beginning <br />
         		<a id="pl.151.32"></a><var>151.32</var>after June 30, 1991, but before July 1, 1996, lands located in the Loring Park targeted <br />
         		<a id="pl.152.1"></a><var>152.1</var>neighborhood on which a notice of lis pendens has been served, and sold to the state at a <br />
         		<a id="pl.152.2"></a><var>152.2</var>tax judgment sale is one year from the date of sale.<br />
         		<a id="pl.152.3"></a><var>152.3</var>The period of redemption for all real property constituting a mixed municipal solid <br />
         		<a id="pl.152.4"></a><var>152.4</var>waste disposal facility that is a qualified facility under section 
         <statute_ref>115B.39, subdivision 1</statute_ref>, is <br />
         		<a id="pl.152.5"></a><var>152.5</var>one year from the date of the sale to the state of Minnesota.<br />
         		<a id="pl.152.6"></a><var>152.6</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.51.0"></a><a id="pl.152.7"></a><var>152.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 51. Minnesota Statutes 2012, section 281.327, is amended to read:<br />
         		<a id="pl.152.8"></a><var>152.8</var><b>281.327 CANCELLATION OF CERTIFICATE UPON JUDICIAL ORDER.</b><br />
         		<a id="pl.152.9"></a><var>152.9</var>Upon the petition of any person interested in the land covered by a real estate tax <br />
         		<a id="pl.152.10"></a><var>152.10</var>sale certificate, state assignment certificate, or forfeited tax sale certificate and, upon the <br />
         		<a id="pl.152.11"></a><var>152.11</var>giving of such notice to the holder of such certificate as may be ordered, the district court, <br />
         		<a id="pl.152.12"></a><var>152.12</var>in the proceedings resulting in the judgment upon which a real estate tax judgment sale <br />
         		<a id="pl.152.13"></a><var>152.13</var>certificate, state assignment certificate, or forfeited tax sale certificate is based, may order <br />
         		<a id="pl.152.14"></a><var>152.14</var>the cancellation of a real estate tax judgment sale certificate, state assignment certificate, <br />
         		<a id="pl.152.15"></a><var>152.15</var>or forfeited tax sale certificate upon which notice of expiration of time of redemption <br />
         		<a id="pl.152.16"></a><var>152.16</var>has been issued when the certificate or a deed issued thereon has not been recorded in <br />
         		<a id="pl.152.17"></a><var>152.17</var>the office of the county recorder or filed in that of the registrar of titles, if the land is <br />
         		<a id="pl.152.18"></a><var>152.18</var>registered, within seven years after the date of the issuance of such certificate; the county <br />
         		<a id="pl.152.19"></a><var>152.19</var>auditor, on the filing of the order, shall make an entry in the proper copy real estate tax <br />
         		<a id="pl.152.20"></a><var>152.20</var>judgment book, opposite the description of the land, "canceled by order of court" record <br />
         		<a id="pl.152.21"></a><var>152.21</var>the land as canceled by order of court; and the rights of the holder under the certificate <br />
         		<a id="pl.152.22"></a><var>152.22</var>shall thereupon be terminated of record in the office of the county auditor.<br />
         		<a id="pl.152.23"></a><var>152.23</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.52.0"></a><a id="pl.152.24"></a><var>152.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 52. Minnesota Statutes 2012, section 282.01, subdivision 6, is amended to read:<br />
         		<a id="pl.152.25"></a><var>152.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <b>Duties of commissioner after sale.</b> When any sale has been made by the <br />
         		<a id="pl.152.26"></a><var>152.26</var>county auditor under sections 
         <statute_ref>282.01</statute_ref> to 
         <statute_ref>282.13</statute_ref>, the auditor shall immediately certify to <br />
         		<a id="pl.152.27"></a><var>152.27</var>the commissioner of revenue such information relating to such sale, on such forms as the <br />
         		<a id="pl.152.28"></a><var>152.28</var>commissioner of revenue may prescribe as will enable the commissioner of revenue to <br />
         		<a id="pl.152.29"></a><var>152.29</var>prepare an appropriate deed if the sale is for cash, or keep necessary records if the sale <br />
         		<a id="pl.152.30"></a><var>152.30</var>is on terms; and not later than October 31 of each year the county auditor shall submit <br />
         		<a id="pl.152.31"></a><var>152.31</var>to the commissioner of revenue a statement of all instances wherein any payment of <br />
         		<a id="pl.152.32"></a><var>152.32</var>principal, interest, or current taxes on lands held under certificate, due or to be paid during <br />
         		<a id="pl.152.33"></a><var>152.33</var>the preceding calendar years, are still outstanding at the time such certificate is made. <br />
         		<a id="pl.153.1"></a><var>153.1</var>When such statement shows that a purchaser or the purchaser's assignee is in default, the <br />
         		<a id="pl.153.2"></a><var>153.2</var>commissioner of revenue may instruct the county board of the county in which the land is <br />
         		<a id="pl.153.3"></a><var>153.3</var>located to cancel said certificate of sale in the manner provided by subdivision 5, provided <br />
         		<a id="pl.153.4"></a><var>153.4</var>that upon recommendation of the county board, and where the circumstances are such <br />
         		<a id="pl.153.5"></a><var>153.5</var>that the commissioner of revenue after investigation is satisfied that the purchaser has <br />
         		<a id="pl.153.6"></a><var>153.6</var>made every effort reasonable to make payment of both the annual installment and said <br />
         		<a id="pl.153.7"></a><var>153.7</var>taxes, and that there has been no willful neglect on the part of the purchaser in meeting <br />
         		<a id="pl.153.8"></a><var>153.8</var>these obligations, then the commissioner of revenue may extend the time for the payment <br />
         		<a id="pl.153.9"></a><var>153.9</var>for such period as the commissioner may deem warranted, not to exceed one year. On <br />
         		<a id="pl.153.10"></a><var>153.10</var>payment in full of the purchase price, appropriate conveyance in fee, in such form as may <br />
         		<a id="pl.153.11"></a><var>153.11</var>be prescribed by the attorney general, shall be issued by the commissioner of revenue, <br />
         		<a id="pl.153.12"></a><var>153.12</var>which conveyance must be recorded by the county and shall have the force and effect of <br />
         		<a id="pl.153.13"></a><var>153.13</var>a patent from the state subject to easements and restrictions of record at the date of the <br />
         		<a id="pl.153.14"></a><var>153.14</var>tax judgment sale, including, but without limitation, permits for telephone, telegraph, and <br />
         		<a id="pl.153.15"></a><var>153.15</var>electric power lines either by underground cable or conduit or otherwise, sewer and water <br />
         		<a id="pl.153.16"></a><var>153.16</var>lines, highways, railroads, and pipe lines for gas, liquids, or solids in suspension.<br />
         		<a id="pl.153.17"></a><var>153.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.53.0"></a><a id="pl.153.18"></a><var>153.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 53. Minnesota Statutes 2012, section 282.04, subdivision 4, is amended to read:<br />
         		<a id="pl.153.19"></a><var>153.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Easements.</b> The county auditor, when and for such price and on such <br />
         		<a id="pl.153.20"></a><var>153.20</var>terms and for such period as the county board prescribes, may grant easements or permits <br />
         		<a id="pl.153.21"></a><var>153.21</var>on unsold tax-forfeited land for telephone, telegraph, and electric power lines either by <br />
         		<a id="pl.153.22"></a><var>153.22</var>underground cable or conduit or otherwise, sewer and water lines, highways, recreational <br />
         		<a id="pl.153.23"></a><var>153.23</var>trails, railroads, and pipe lines for gas, liquids, or solids in suspension. Any such easement <br />
         		<a id="pl.153.24"></a><var>153.24</var>or permit may be canceled by resolution of the county board after reasonable notice for <br />
         		<a id="pl.153.25"></a><var>153.25</var>any substantial breach of its terms or if at any time its continuance will conflict with <br />
         		<a id="pl.153.26"></a><var>153.26</var>public use of the land, or any part thereof, on which it is granted. Land affected by any <br />
         		<a id="pl.153.27"></a><var>153.27</var>such easement or permit may be sold or leased for mineral or other legal purpose, but sale <br />
         		<a id="pl.153.28"></a><var>153.28</var>or lease shall be subject to the easement or permit, and all rights granted by the easement <br />
         		<a id="pl.153.29"></a><var>153.29</var>or permit shall be excepted from the conveyance or lease of the land and be reserved, <br />
         		<a id="pl.153.30"></a><var>153.30</var>and may be canceled by the county board in the same manner and for the same reasons <br />
         		<a id="pl.153.31"></a><var>153.31</var>as it could have been canceled before sale and in that case the rights granted thereby <br />
         		<a id="pl.153.32"></a><var>153.32</var>shall vest in the state in trust as the land on which it was granted was held before sale or <br />
         		<a id="pl.153.33"></a><var>153.33</var>lease. Any easement or permit granted before passage of Laws 1951, Chapter 203, may <br />
         		<a id="pl.153.34"></a><var>153.34</var>be governed thereby if the holder thereof and county board so agree. Reasonable notice <br />
         		<a id="pl.153.35"></a><var>153.35</var>as used in this subdivision, means a 90-day written notice addressed to the record owner <br />
         		<a id="pl.154.1"></a><var>154.1</var>of the easement at the last known address, and upon cancellation the county board may <br />
         		<a id="pl.154.2"></a><var>154.2</var>grant extensions of time to vacate the premises affected.<br />
         		<a id="pl.154.3"></a><var>154.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.54.0"></a><a id="pl.154.4"></a><var>154.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 54. Minnesota Statutes 2012, section 282.261, subdivision 2, is amended to read:<br />
         		<a id="pl.154.5"></a><var>154.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Interest rate.</b> The unpaid balance on any repurchase contract approved <br />
         		<a id="pl.154.6"></a><var>154.6</var>by the county board on or after July 1, 1982, is subject to interest at the rate determined <br />
         		<a id="pl.154.7"></a><var>154.7</var>pursuant to section 
         <statute_ref>549.09</statute_ref>. Repurchase contracts approved after December 31, 1990, are <br />
         		<a id="pl.154.8"></a><var>154.8</var>subject to interest at the rate determined in section 
         <statute_ref>279.03, subdivision 1a</statute_ref>. The interest <br />
         		<a id="pl.154.9"></a><var>154.9</var>rate is subject to change each year on the unpaid balance in the manner provided for rate <br />
         		<a id="pl.154.10"></a><var>154.10</var>changes in section 
         <statute_ref>549.09</statute_ref> or 
         <statute_ref>279.03, subdivision 1a</statute_ref>, whichever is applicable. Interest on <br />
         		<a id="pl.154.11"></a><var>154.11</var>the unpaid contract balance on repurchases approved before July 1, 1982, is payable at the <br />
         		<a id="pl.154.12"></a><var>154.12</var>rate applicable to the repurchase contract at the time that it was approved.<br />
         		<a id="pl.154.13"></a><var>154.13</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.55.0"></a><a id="pl.154.14"></a><var>154.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 55. Minnesota Statutes 2012, section 282.261, subdivision 4, is amended to read:<br />
         		<a id="pl.154.15"></a><var>154.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Service fee.</b> The county auditor may collect a service fee to cover <br />
         		<a id="pl.154.16"></a><var>154.16</var>administrative costs as set by the county board for each repurchase application received <br />
         		<a id="pl.154.17"></a><var>154.17</var>after July 1, 1985. The fee must be paid at the time of application and must be credited to <br />
         		<a id="pl.154.18"></a><var>154.18</var>the county general revenue fund.<br />
         		<a id="pl.154.19"></a><var>154.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.56.0"></a><a id="pl.154.20"></a><var>154.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 56. Minnesota Statutes 2012, section 282.261, subdivision 5, is amended to read:<br />
         		<a id="pl.154.21"></a><var>154.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>County may impose conditions of repurchase.</b> The county auditor, after <br />
         		<a id="pl.154.22"></a><var>154.22</var>receiving county board approval, may impose conditions on repurchase of tax-forfeited <br />
         		<a id="pl.154.23"></a><var>154.23</var>lands limiting the use of the parcel subject to the repurchase, including, but not limited to, <br />
         		<a id="pl.154.24"></a><var>154.24</var>environmental remediation action plan restrictions or covenants, or easements for lines or <br />
         		<a id="pl.154.25"></a><var>154.25</var>equipment for telephone, telegraph, electric power, or telecommunications.<br />
         		<a id="pl.154.26"></a><var>154.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.57.0"></a><a id="pl.154.27"></a><var>154.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 57. Minnesota Statutes 2012, section 282.322, is amended to read:<br />
         		<a id="pl.154.28"></a><var>154.28</var><b>282.322 FORFEITED LANDS LIST.</b><br />
         		<a id="pl.154.29"></a><var>154.29</var>The county board of any county may at any time after the passage of Laws 1945, <br />
         		<a id="pl.154.30"></a><var>154.30</var>chapter 296, file a list of forfeited lands with the county auditor, if the board is of the <br />
         		<a id="pl.155.1"></a><var>155.1</var>opinion that such lands may be acquired by the state or any municipal subdivision thereof <br />
         		<a id="pl.155.2"></a><var>155.2</var>for public purposes. Upon the filing of such list the county auditor shall withhold said <br />
         		<a id="pl.155.3"></a><var>155.3</var>lands from repurchase. If no proceeding shall be started to acquire such lands by the <br />
         		<a id="pl.155.4"></a><var>155.4</var>state or some municipal subdivision thereof within one year after the filing of such list <br />
         		<a id="pl.155.5"></a><var>155.5</var>the county board shall withdraw said list and thereafter the owner shall have one year in <br />
         		<a id="pl.155.6"></a><var>155.6</var>which to repurchase as otherwise provided in Laws 1945, chapter 296.<br />
         		<a id="pl.155.7"></a><var>155.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.58.0"></a><a id="pl.155.8"></a><var>155.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 58. Minnesota Statutes 2012, section 287.30, is amended to read:<br />
         		<a id="pl.155.9"></a><var>155.9</var><b>287.30 COUNTY TREASURER; DUTIES.</b><br />
         		<a id="pl.155.10"></a><var>155.10</var>The care of documentary stamps entrusted to county treasurers and the duties imposed <br />
         		<a id="pl.155.11"></a><var>155.11</var>upon county treasurers by this chapter are within the duties of such office and are within <br />
         		<a id="pl.155.12"></a><var>155.12</var>the coverage of any official bond delivered to the state, conditioned that any such officer <br />
         		<a id="pl.155.13"></a><var>155.13</var>shall faithfully execute the duties of office. The county board may by resolution require <br />
         		<a id="pl.155.14"></a><var>155.14</var>the county auditor to perform any duty imposed on the county treasurer under this chapter.<br />
         		<a id="pl.155.15"></a><var>155.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.59.0"></a><a id="pl.155.16"></a><var>155.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 59. Minnesota Statutes 2012, section 289A.25, subdivision 1, is amended to read:<br />
         		<a id="pl.155.17"></a><var>155.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Requirements to pay.</b> An individual, trust, S corporation, or <br />
         		<a id="pl.155.18"></a><var>155.18</var>partnership must, when prescribed in subdivision 3, paragraph (b), make payments of <br />
         		<a id="pl.155.19"></a><var>155.19</var>estimated tax. For individuals, the term "estimated tax" means the amount the taxpayer <br />
         		<a id="pl.155.20"></a><var>155.20</var>estimates is the sum of the taxes imposed by chapter 290 for the taxable year. For trusts, <br />
         		<a id="pl.155.21"></a><var>155.21</var>S corporations, and partnerships, the term estimated tax means the amount the taxpayer <br />
         		<a id="pl.155.22"></a><var>155.22</var>estimates is the sum of the taxes for the taxable year imposed by chapter 290 and the <br />
         		<a id="pl.155.23"></a><var>155.23</var>composite income tax imposed by section 
         <statute_ref>289A.08, subdivision 7</statute_ref>. If the individual is an <br />
         		<a id="pl.155.24"></a><var>155.24</var>infant or incompetent person, the payments must be made by the individual's guardian. If <br />
         		<a id="pl.155.25"></a><var>155.25</var>joint payments on estimated tax are made but a joint return is not made for the taxable <br />
         		<a id="pl.155.26"></a><var>155.26</var>year, the estimated tax for that year may be treated as the estimated tax of either the <br />
         		<a id="pl.155.27"></a><var>155.27</var>husband or the wife or may be divided between them.<br />
         		<a id="pl.155.28"></a><var>155.28</var>Notwithstanding the provisions of this section, no payments of estimated tax are <br />
         		<a id="pl.155.29"></a><var>155.29</var>required if the estimated tax, as defined in this subdivision, less the credits allowed against <br />
         		<a id="pl.155.30"></a><var>155.30</var>the tax, is less than $500.<br />
         		<a id="pl.155.31"></a><var>155.31</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.60.0"></a><a id="pl.156.1"></a><var>156.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 60. Minnesota Statutes 2012, section 290.01, subdivision 5, is amended to read:<br />
         		<a id="pl.156.2"></a><var>156.2</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Domestic corporation.</b> The term "domestic" when applied to a corporation <br />
         		<a id="pl.156.3"></a><var>156.3</var>means a corporation:<br />
         		<a id="pl.156.4"></a><var>156.4</var>(1) created or organized in the United States, or under the laws of the United <br />
         		<a id="pl.156.5"></a><var>156.5</var>States or of any state, the District of Columbia, or any political subdivision of any of <br />
         		<a id="pl.156.6"></a><var>156.6</var>the foregoing but not including the Commonwealth of Puerto Rico, or any possession <br />
         		<a id="pl.156.7"></a><var>156.7</var>of the United States; or<br />
         		<a id="pl.156.8"></a><var>156.8</var>(2) which qualifies as a DISC, as defined in section 992(a) of the Internal Revenue <br />
         		<a id="pl.156.9"></a><var>156.9</var>Code; or.<br />
         		<a id="pl.156.10"></a><var>156.10</var>(3) which qualifies as a FSC, as defined in section 922 of the Internal Revenue Code.<br />
         		<a id="pl.156.11"></a><var>156.11</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.156.12"></a><var>156.12</var>December 31, 2013.<br />
         		<br />
         		<a id="bill.9.61.0"></a><a id="pl.156.13"></a><var>156.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 61. Minnesota Statutes 2013 Supplement, section 290.01, subdivision 19d, <br />
         		<a id="pl.156.14"></a><var>156.14</var>is amended to read:<br />
         		<a id="pl.156.15"></a><var>156.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 19d. <b>Corporations; modifications decreasing federal taxable income.</b> For <br />
         		<a id="pl.156.16"></a><var>156.16</var>corporations, there shall be subtracted from federal taxable income after the increases <br />
         		<a id="pl.156.17"></a><var>156.17</var>provided in subdivision 19c:<br />
         		<a id="pl.156.18"></a><var>156.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) the amount of foreign dividend gross-up added to gross income for federal <br />
         		<a id="pl.156.19"></a><var>156.19</var>income tax purposes under section 78 of the Internal Revenue Code;<br />
         		<a id="pl.156.20"></a><var>156.20</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) the amount of salary expense not allowed for federal income tax purposes due to <br />
         		<a id="pl.156.21"></a><var>156.21</var>claiming the work opportunity credit under section 51 of the Internal Revenue Code;<br />
         		<a id="pl.156.22"></a><var>156.22</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) any dividend (not including any distribution in liquidation) paid within the <br />
         		<a id="pl.156.23"></a><var>156.23</var>taxable year by a national or state bank to the United States, or to any instrumentality of <br />
         		<a id="pl.156.24"></a><var>156.24</var>the United States exempt from federal income taxes, on the preferred stock of the bank <br />
         		<a id="pl.156.25"></a><var>156.25</var>owned by the United States or the instrumentality;<br />
         		<a id="pl.156.26"></a><var>156.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) amounts disallowed for intangible drilling costs due to differences between <br />
         		<a id="pl.156.27"></a><var>156.27</var>this chapter and the Internal Revenue Code in taxable years beginning before January <br />
         		<a id="pl.156.28"></a><var>156.28</var>1, 1987, as follows:<br />
         		<a id="pl.156.29"></a><var>156.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) to the extent the disallowed costs are represented by physical property, an amount <br />
         		<a id="pl.156.30"></a><var>156.30</var>equal to the allowance for depreciation under Minnesota Statutes 1986, section 
         <statute_ref>290.09, <br />
            		<a id="pl.156.31"></a><var>156.31</var>subdivision 7
         </statute_ref>, subject to the modifications contained in subdivision 19e; and<br />
         		<a id="pl.156.32"></a><var>156.32</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) to the extent the disallowed costs are not represented by physical property, an <br />
         		<a id="pl.156.33"></a><var>156.33</var>amount equal to the allowance for cost depletion under Minnesota Statutes 1986, section <br />
         		<a id="pl.156.34"></a><var>156.34</var><statute_ref>290.09, subdivision 8</statute_ref>;<br />
         		<a id="pl.157.1"></a><var>157.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) (4) the deduction for capital losses pursuant to sections 1211 and 1212 of the <br />
         		<a id="pl.157.2"></a><var>157.2</var>Internal Revenue Code, except that:<br />
         		<a id="pl.157.3"></a><var>157.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) for capital losses incurred in taxable years beginning after December 31, 1986, <br />
         		<a id="pl.157.4"></a><var>157.4</var>capital loss carrybacks shall not be allowed;<br />
         		<a id="pl.157.5"></a><var>157.5</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) for capital losses incurred in taxable years beginning after December 31, 1986, <br />
         		<a id="pl.157.6"></a><var>157.6</var>a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be <br />
         		<a id="pl.157.7"></a><var>157.7</var>allowed;<br />
         		<a id="pl.157.8"></a><var>157.8</var>&nbsp;&nbsp;&nbsp;&nbsp;(iii) for capital losses incurred in taxable years beginning before January 1, 1987, a <br />
         		<a id="pl.157.9"></a><var>157.9</var>capital loss carryback to each of the three taxable years preceding the loss year, subject to <br />
         		<a id="pl.157.10"></a><var>157.10</var>the provisions of Minnesota Statutes 1986, section 
         <statute_ref>290.16</statute_ref>, shall be allowed; and<br />
         		<a id="pl.157.11"></a><var>157.11</var>&nbsp;&nbsp;&nbsp;&nbsp;(iv) for capital losses incurred in taxable years beginning before January 1, 1987, <br />
         		<a id="pl.157.12"></a><var>157.12</var>a capital loss carryover to each of the five taxable years succeeding the loss year to the <br />
         		<a id="pl.157.13"></a><var>157.13</var>extent such loss was not used in a prior taxable year and subject to the provisions of <br />
         		<a id="pl.157.14"></a><var>157.14</var>Minnesota Statutes 1986, section 
         <statute_ref>290.16</statute_ref>, shall be allowed;<br />
         		<a id="pl.157.15"></a><var>157.15</var>&nbsp;&nbsp;&nbsp;&nbsp;(6) (5) an amount for interest and expenses relating to income not taxable for federal <br />
         		<a id="pl.157.16"></a><var>157.16</var>income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and <br />
         		<a id="pl.157.17"></a><var>157.17</var>expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or <br />
         		<a id="pl.157.18"></a><var>157.18</var>291 of the Internal Revenue Code in computing federal taxable income;<br />
         		<a id="pl.157.19"></a><var>157.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(7) (6) in the case of mines, oil and gas wells, other natural deposits, and timber for <br />
         		<a id="pl.157.20"></a><var>157.20</var>which percentage depletion was disallowed pursuant to subdivision 19c, clause (8), a <br />
         		<a id="pl.157.21"></a><var>157.21</var>reasonable allowance for depletion based on actual cost. In the case of leases the deduction <br />
         		<a id="pl.157.22"></a><var>157.22</var>must be apportioned between the lessor and lessee in accordance with rules prescribed <br />
         		<a id="pl.157.23"></a><var>157.23</var>by the commissioner. In the case of property held in trust, the allowable deduction must <br />
         		<a id="pl.157.24"></a><var>157.24</var>be apportioned between the income beneficiaries and the trustee in accordance with the <br />
         		<a id="pl.157.25"></a><var>157.25</var>pertinent provisions of the trust, or if there is no provision in the instrument, on the basis <br />
         		<a id="pl.157.26"></a><var>157.26</var>of the trust's income allocable to each;<br />
         		<a id="pl.157.27"></a><var>157.27</var>&nbsp;&nbsp;&nbsp;&nbsp;(8) (7) for certified pollution control facilities placed in service in a taxable year <br />
         		<a id="pl.157.28"></a><var>157.28</var>beginning before December 31, 1986, and for which amortization deductions were elected <br />
         		<a id="pl.157.29"></a><var>157.29</var>under section 169 of the Internal Revenue Code of 1954, as amended through December <br />
         		<a id="pl.157.30"></a><var>157.30</var>31, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes <br />
         		<a id="pl.157.31"></a><var>157.31</var>1986, section 
         <statute_ref>290.09, subdivision 7</statute_ref>;<br />
         		<a id="pl.157.32"></a><var>157.32</var>&nbsp;&nbsp;&nbsp;&nbsp;(9) (8) amounts included in federal taxable income that are due to refunds of <br />
         		<a id="pl.157.33"></a><var>157.33</var>income, excise, or franchise taxes based on net income or related minimum taxes paid <br />
         		<a id="pl.157.34"></a><var>157.34</var>by the corporation to Minnesota, another state, a political subdivision of another state, <br />
         		<a id="pl.157.35"></a><var>157.35</var>the District of Columbia, or a foreign country or possession of the United States to the <br />
         		<a id="pl.158.1"></a><var>158.1</var>extent that the taxes were added to federal taxable income under subdivision 19c, clause <br />
         		<a id="pl.158.2"></a><var>158.2</var>(1), in a prior taxable year;<br />
         		<a id="pl.158.3"></a><var>158.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(10) (9) income or gains from the business of mining as defined in section 
         <statute_ref>290.05, <br />
            		<a id="pl.158.4"></a><var>158.4</var>subdivision 1
         </statute_ref>, clause (a), that are not subject to Minnesota franchise tax;<br />
         		<a id="pl.158.5"></a><var>158.5</var>&nbsp;&nbsp;&nbsp;&nbsp;(11) (10) the amount of disability access expenditures in the taxable year which are not <br />
         		<a id="pl.158.6"></a><var>158.6</var>allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code;<br />
         		<a id="pl.158.7"></a><var>158.7</var>&nbsp;&nbsp;&nbsp;&nbsp;(12) (11) the amount of qualified research expenses not allowed for federal income <br />
         		<a id="pl.158.8"></a><var>158.8</var>tax purposes under section 280C(c) of the Internal Revenue Code, but only to the extent <br />
         		<a id="pl.158.9"></a><var>158.9</var>that the amount exceeds the amount of the credit allowed under section 
         <statute_ref>290.068</statute_ref>;<br />
         		<a id="pl.158.10"></a><var>158.10</var>&nbsp;&nbsp;&nbsp;&nbsp;(13) (12) the amount of salary expenses not allowed for federal income tax purposes <br />
         		<a id="pl.158.11"></a><var>158.11</var>due to claiming the Indian employment credit under section 45A(a) of the Internal <br />
         		<a id="pl.158.12"></a><var>158.12</var>Revenue Code;<br />
         		<a id="pl.158.13"></a><var>158.13</var>&nbsp;&nbsp;&nbsp;&nbsp;(14) (13) any decrease in subpart F income, as defined in section 952(a) of the <br />
         		<a id="pl.158.14"></a><var>158.14</var>Internal Revenue Code, for the taxable year when subpart F income is calculated without <br />
         		<a id="pl.158.15"></a><var>158.15</var>regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;<br />
         		<a id="pl.158.16"></a><var>158.16</var>&nbsp;&nbsp;&nbsp;&nbsp;(15) (14) in each of the five tax years immediately following the tax year in which <br />
         		<a id="pl.158.17"></a><var>158.17</var>an addition is required under subdivision 19c, clause (12), an amount equal to one-fifth <br />
         		<a id="pl.158.18"></a><var>158.18</var>of the delayed depreciation. For purposes of this clause, "delayed depreciation" means <br />
         		<a id="pl.158.19"></a><var>158.19</var>the amount of the addition made by the taxpayer under subdivision 19c, clause (12). The <br />
         		<a id="pl.158.20"></a><var>158.20</var>resulting delayed depreciation cannot be less than zero;<br />
         		<a id="pl.158.21"></a><var>158.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(16) (15) in each of the five tax years immediately following the tax year in which an <br />
         		<a id="pl.158.22"></a><var>158.22</var>addition is required under subdivision 19c, clause (13), an amount equal to one-fifth of the <br />
         		<a id="pl.158.23"></a><var>158.23</var>amount of the addition;<br />
         		<a id="pl.158.24"></a><var>158.24</var>(17) (16) to the extent included in federal taxable income, discharge of indebtedness <br />
         		<a id="pl.158.25"></a><var>158.25</var>income resulting from reacquisition of business indebtedness included in federal taxable <br />
         		<a id="pl.158.26"></a><var>158.26</var>income under section 108(i) of the Internal Revenue Code. This subtraction applies only <br />
         		<a id="pl.158.27"></a><var>158.27</var>to the extent that the income was included in net income in a prior year as a result of the <br />
         		<a id="pl.158.28"></a><var>158.28</var>addition under subdivision 19c, clause (16); and<br />
         		<a id="pl.158.29"></a><var>158.29</var>(18) (17) the amount of expenses not allowed for federal income tax purposes due <br />
         		<a id="pl.158.30"></a><var>158.30</var>to claiming the railroad track maintenance credit under section 45G(a) of the Internal <br />
         		<a id="pl.158.31"></a><var>158.31</var>Revenue Code.<br />
         		<a id="pl.158.32"></a><var>158.32</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.158.33"></a><var>158.33</var>December 31, 2013.<br />
         		<br />
         		<a id="bill.9.62.0"></a><a id="pl.158.34"></a><var>158.34</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 62. Minnesota Statutes 2012, section 290.01, subdivision 19f, is amended to read:<br />
         		<a id="pl.159.1"></a><var>159.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 19f. <b>Basis modifications affecting gain or loss on disposition of property.</b><br />
         		 <a id="pl.159.2"></a><var>159.2</var>(a) For individuals, estates, and trusts, the basis of property is its adjusted basis for federal <br />
         		<a id="pl.159.3"></a><var>159.3</var>income tax purposes except as set forth in paragraphs (e) and (f), (g), and (m). For <br />
         		<a id="pl.159.4"></a><var>159.4</var>corporations, the basis of property is its adjusted basis for federal income tax purposes, <br />
         		<a id="pl.159.5"></a><var>159.5</var>without regard to the time when the property became subject to tax under this chapter or to <br />
         		<a id="pl.159.6"></a><var>159.6</var>whether out-of-state losses or items of tax preference with respect to the property were not <br />
         		<a id="pl.159.7"></a><var>159.7</var>deductible under this chapter, except that the modifications to the basis for federal income <br />
         		<a id="pl.159.8"></a><var>159.8</var>tax purposes set forth in paragraphs (b) to (j) (i) are allowed to corporations, and the <br />
         		<a id="pl.159.9"></a><var>159.9</var>resulting modifications to federal taxable income must be made in the year in which gain <br />
         		<a id="pl.159.10"></a><var>159.10</var>or loss on the sale or other disposition of property is recognized.<br />
         		<a id="pl.159.11"></a><var>159.11</var>(b) The basis of property shall not be reduced to reflect federal investment tax credit.<br />
         		<a id="pl.159.12"></a><var>159.12</var>(c) The basis of property subject to the accelerated cost recovery system under <br />
         		<a id="pl.159.13"></a><var>159.13</var>section 168 of the Internal Revenue Code shall be modified to reflect the modifications in <br />
         		<a id="pl.159.14"></a><var>159.14</var>depreciation with respect to the property provided for in subdivision 19e. For certified <br />
         		<a id="pl.159.15"></a><var>159.15</var>pollution control facilities for which amortization deductions were elected under section <br />
         		<a id="pl.159.16"></a><var>159.16</var>169 of the Internal Revenue Code of 1954, the basis of the property must be increased by <br />
         		<a id="pl.159.17"></a><var>159.17</var>the amount of the amortization deduction not previously allowed under this chapter.<br />
         		<a id="pl.159.18"></a><var>159.18</var>(d) For property acquired before January 1, 1933, the basis for computing a gain is <br />
         		<a id="pl.159.19"></a><var>159.19</var>the fair market value of the property as of that date. The basis for determining a loss is <br />
         		<a id="pl.159.20"></a><var>159.20</var>the cost of the property to the taxpayer less any depreciation, amortization, or depletion, <br />
         		<a id="pl.159.21"></a><var>159.21</var>actually sustained before that date. If the adjusted cost exceeds the fair market value of the <br />
         		<a id="pl.159.22"></a><var>159.22</var>property, then the basis is the adjusted cost regardless of whether there is a gain or loss.<br />
         		<a id="pl.159.23"></a><var>159.23</var>(e) (d) The basis is reduced by the allowance for amortization of bond premium if <br />
         		<a id="pl.159.24"></a><var>159.24</var>an election to amortize was made pursuant to Minnesota Statutes 1986, section 290.09, <br />
         		<a id="pl.159.25"></a><var>159.25</var>subdivision 13, and the allowance could have been deducted by the taxpayer under this <br />
         		<a id="pl.159.26"></a><var>159.26</var>chapter during the period of the taxpayer's ownership of the property.<br />
         		<a id="pl.159.27"></a><var>159.27</var>(f) (e) For assets placed in service before January 1, 1987, corporations, partnerships, <br />
         		<a id="pl.159.28"></a><var>159.28</var>or individuals engaged in the business of mining ores other than iron ore or taconite <br />
         		<a id="pl.159.29"></a><var>159.29</var>concentrates subject to the occupation tax under chapter 298 must use the occupation <br />
         		<a id="pl.159.30"></a><var>159.30</var>tax basis of property used in that business.<br />
         		<a id="pl.159.31"></a><var>159.31</var>(g) (f) For assets placed in service before January 1, 1990, corporations, partnerships, <br />
         		<a id="pl.159.32"></a><var>159.32</var>or individuals engaged in the business of mining iron ore or taconite concentrates subject <br />
         		<a id="pl.159.33"></a><var>159.33</var>to the occupation tax under chapter 298 must use the occupation tax basis of property <br />
         		<a id="pl.159.34"></a><var>159.34</var>used in that business.<br />
         		<a id="pl.160.1"></a><var>160.1</var>(h) (g) In applying the provisions of sections 301(c)(3)(B), 312(f) and (g), and <br />
         		<a id="pl.160.2"></a><var>160.2</var>316(a)(1) of the Internal Revenue Code, the dates December 31, 1932, and January 1, <br />
         		<a id="pl.160.3"></a><var>160.3</var>1933, shall be substituted for February 28, 1913, and March 1, 1913, respectively.<br />
         		<a id="pl.160.4"></a><var>160.4</var>(i) (h) In applying the provisions of section 362(a) and (c) of the Internal Revenue <br />
         		<a id="pl.160.5"></a><var>160.5</var>Code, the date December 31, 1956, shall be substituted for June 22, 1954.<br />
         		<a id="pl.160.6"></a><var>160.6</var>(j) (i) The basis of property shall be increased by the amount of intangible drilling <br />
         		<a id="pl.160.7"></a><var>160.7</var>costs not previously allowed due to differences between this chapter and the Internal <br />
         		<a id="pl.160.8"></a><var>160.8</var>Revenue Code.<br />
         		<a id="pl.160.9"></a><var>160.9</var>(k) (j) The adjusted basis of any corporate partner's interest in a partnership is <br />
         		<a id="pl.160.10"></a><var>160.10</var>the same as the adjusted basis for federal income tax purposes modified as required to <br />
         		<a id="pl.160.11"></a><var>160.11</var>reflect the basis modifications set forth in paragraphs (b) to (j) (i). The adjusted basis <br />
         		<a id="pl.160.12"></a><var>160.12</var>of a partnership in which the partner is an individual, estate, or trust is the same as the <br />
         		<a id="pl.160.13"></a><var>160.13</var>adjusted basis for federal income tax purposes modified as required to reflect the basis <br />
         		<a id="pl.160.14"></a><var>160.14</var>modifications set forth in paragraphs (e) and (f) and (g).<br />
         		<a id="pl.160.15"></a><var>160.15</var>(l) (k) The modifications contained in paragraphs (b) to (j) (i) also apply to the basis <br />
         		<a id="pl.160.16"></a><var>160.16</var>of property that is determined by reference to the basis of the same property in the hands <br />
         		<a id="pl.160.17"></a><var>160.17</var>of a different taxpayer or by reference to the basis of different property.<br />
         		<a id="pl.160.18"></a><var>160.18</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.160.19"></a><var>160.19</var>December 31, 2013.<br />
         		<br />
         		<a id="bill.9.63.0"></a><a id="pl.160.20"></a><var>160.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 63. Minnesota Statutes 2012, section 290.01, subdivision 29, is amended to read:<br />
         		<a id="pl.160.21"></a><var>160.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 29. <b>Taxable income.</b> The term "taxable income" means:<br />
         		<a id="pl.160.22"></a><var>160.22</var>(1) for individuals, estates, and trusts, the same as taxable net income;<br />
         		<a id="pl.160.23"></a><var>160.23</var>(2) for corporations, the taxable net income less<br />
         		<a id="pl.160.24"></a><var>160.24</var>(i) the net operating loss deduction under section 
         <statute_ref>290.095</statute_ref>;<br />
         		<a id="pl.160.25"></a><var>160.25</var>(ii) the dividends received deduction under section 
         <statute_ref>290.21, subdivision 4</statute_ref>; and<br />
         		<a id="pl.160.26"></a><var>160.26</var>(iii) the exemption for operating in a job opportunity building zone under section <br />
         		
         <statute_ref><a id="pl.160.27"></a><var>160.27</var>469.317
         </statute_ref>; and.<br />
         		<a id="pl.160.28"></a><var>160.28</var>(iv) the exemption for operating in a biotechnology and health sciences industry <br />
         		<a id="pl.160.29"></a><var>160.29</var>zone under section 
         <statute_ref>469.337</statute_ref>.<br />
         		<a id="pl.160.30"></a><var>160.30</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.160.31"></a><var>160.31</var>December 31, 2013.<br />
         		<br />
         		<a id="bill.9.64.0"></a><a id="pl.160.32"></a><var>160.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 64. Minnesota Statutes 2012, section 290.015, subdivision 1, is amended to read:<br />
         		<a id="pl.161.1"></a><var>161.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>General rule.</b> (a) Except as provided in subdivision 3, a person <br />
         		<a id="pl.161.2"></a><var>161.2</var>that conducts a trade or business that has a place of business in this state, regularly has <br />
         		<a id="pl.161.3"></a><var>161.3</var>employees or independent contractors conducting business activities on its behalf in this <br />
         		<a id="pl.161.4"></a><var>161.4</var>state, or owns or leases real property that is located in this state or tangible personal <br />
         		<a id="pl.161.5"></a><var>161.5</var>property, including but not limited to mobile property, that is present in this state is subject <br />
         		<a id="pl.161.6"></a><var>161.6</var>to the taxes imposed by this chapter.<br />
         		<a id="pl.161.7"></a><var>161.7</var>(b) Except as provided in subdivision 3, a person that conducts a trade or business <br />
         		<a id="pl.161.8"></a><var>161.8</var>not described in paragraph (a) is subject to the taxes imposed by this chapter if the trade <br />
         		<a id="pl.161.9"></a><var>161.9</var>or business obtains or regularly solicits business from within this state, without regard <br />
         		<a id="pl.161.10"></a><var>161.10</var>to physical presence in this state.<br />
         		<a id="pl.161.11"></a><var>161.11</var>(c) For purposes of paragraph (b), business from within this state includes, but is <br />
         		<a id="pl.161.12"></a><var>161.12</var>not limited to:<br />
         		<a id="pl.161.13"></a><var>161.13</var>(1) sales of products or services of any kind or nature to customers in this state who <br />
         		<a id="pl.161.14"></a><var>161.14</var>receive the product or service in this state;<br />
         		<a id="pl.161.15"></a><var>161.15</var>(2) sales of services which are performed from outside this state but the services <br />
         		<a id="pl.161.16"></a><var>161.16</var>are received in this state;<br />
         		<a id="pl.161.17"></a><var>161.17</var>(3) transactions with customers in this state that involve intangible property and <br />
         		<a id="pl.161.18"></a><var>161.18</var>result in receipts attributed to this state as provided in section 
         <statute_ref>290.191, subdivision 5</statute_ref> or 6;<br />
         		<a id="pl.161.19"></a><var>161.19</var>(4) leases of tangible personal property that is located in this state as defined in <br />
         		<a id="pl.161.20"></a><var>161.20</var>section 
         <statute_ref>290.191, subdivision 5</statute_ref>, paragraph (g), or 6, paragraph (e); and<br />
         		<a id="pl.161.21"></a><var>161.21</var>(5) sales and leases of real property located in this state.<br />
         		<a id="pl.161.22"></a><var>161.22</var>(d) For purposes of paragraph (b), solicitation includes, but is not limited to:<br />
         		<a id="pl.161.23"></a><var>161.23</var>(1) the distribution, by mail or otherwise, without regard to the state from which such <br />
         		<a id="pl.161.24"></a><var>161.24</var>distribution originated or in which the materials were prepared, of catalogs, periodicals, <br />
         		<a id="pl.161.25"></a><var>161.25</var>advertising flyers, or other written solicitations of business to customers in this state;<br />
         		<a id="pl.161.26"></a><var>161.26</var>(2) display of advertisements on billboards or other outdoor advertising in this state;<br />
         		<a id="pl.161.27"></a><var>161.27</var>(3) advertisements in newspapers published in this state;<br />
         		<a id="pl.161.28"></a><var>161.28</var>(4) advertisements in trade journals or other periodicals, the circulation of which is <br />
         		<a id="pl.161.29"></a><var>161.29</var>primarily within this state;<br />
         		<a id="pl.161.30"></a><var>161.30</var>(5) advertisements in a Minnesota edition of a national or regional publication or a <br />
         		<a id="pl.161.31"></a><var>161.31</var>limited regional edition of which this state is included of a broader regional or national <br />
         		<a id="pl.161.32"></a><var>161.32</var>publication which are not placed in other geographically defined editions of the same issue <br />
         		<a id="pl.161.33"></a><var>161.33</var>of the same publication;<br />
         		<a id="pl.161.34"></a><var>161.34</var>(6) advertisements in regional or national publications in an edition which is not <br />
         		<a id="pl.161.35"></a><var>161.35</var>by its contents geographically targeted to Minnesota, but which is sold over the counter <br />
         		<a id="pl.161.36"></a><var>161.36</var>in Minnesota or by subscription to Minnesota residents;<br />
         		<a id="pl.162.1"></a><var>162.1</var>(7) advertisements broadcast on a radio or television station located in Minnesota; or<br />
         		<a id="pl.162.2"></a><var>162.2</var>(8) any other solicitation by telegraph, telephone, computer database, cable, optic, <br />
         		<a id="pl.162.3"></a><var>162.3</var>microwave, or other communication system.<br />
         		<a id="pl.162.4"></a><var>162.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.65.0"></a><a id="pl.162.5"></a><var>162.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 65. Minnesota Statutes 2012, section 290.07, subdivision 1, is amended to read:<br />
         		<a id="pl.162.6"></a><var>162.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Annual accounting period.</b> Net income and taxable net income <br />
         		<a id="pl.162.7"></a><var>162.7</var>shall be computed upon the basis of the taxpayer's annual accounting period. If a taxpayer <br />
         		<a id="pl.162.8"></a><var>162.8</var>has no annual accounting period, or has one other than a fiscal year, as heretofore defined,<br />
         		<a id="pl.162.9"></a><var>162.9</var> the net income and taxable net income shall be computed on the basis of the calendar year. <br />
         		<a id="pl.162.10"></a><var>162.10</var>Taxpayers shall employ the same accounting period on which they report, or would be <br />
         		<a id="pl.162.11"></a><var>162.11</var>required to report, their net income under the Internal Revenue Code. The commissioner <br />
         		<a id="pl.162.12"></a><var>162.12</var>shall provide by rule for the determination of the accounting period for taxpayers who file <br />
         		<a id="pl.162.13"></a><var>162.13</var>a combined report under section 
         <statute_ref>290.17, subdivision 4</statute_ref>, when members of the group use <br />
         		<a id="pl.162.14"></a><var>162.14</var>different accounting periods for federal income tax purposes. Unless the taxpayer changes <br />
         		<a id="pl.162.15"></a><var>162.15</var>its accounting period for federal purposes, the due date of the return is not changed.<br />
         		<a id="pl.162.16"></a><var>162.16</var>&nbsp;&nbsp;&nbsp;&nbsp;A taxpayer may change accounting periods only with the consent of the <br />
         		<a id="pl.162.17"></a><var>162.17</var>commissioner. In case of any such change, the taxpayer shall pay a tax for the period <br />
         		<a id="pl.162.18"></a><var>162.18</var>not included in either the taxpayer's former or newly adopted taxable year, computed as <br />
         		<a id="pl.162.19"></a><var>162.19</var>provided in section 
         <statute_ref>290.32</statute_ref>.<br />
         		<a id="pl.162.20"></a><var>162.20</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.162.21"></a><var>162.21</var>December 31, 2013.<br />
         		<br />
         		<a id="bill.9.66.0"></a><a id="pl.162.22"></a><var>162.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 66. Minnesota Statutes 2012, section 290.07, subdivision 2, is amended to read:<br />
         		<a id="pl.162.23"></a><var>162.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Accounting methods.</b> Except as specifically provided to the contrary by <br />
         		<a id="pl.162.24"></a><var>162.24</var>this chapter, net income and taxable net income shall be computed in accordance with <br />
         		<a id="pl.162.25"></a><var>162.25</var>the method of accounting regularly employed in keeping the taxpayer's books. If no such <br />
         		<a id="pl.162.26"></a><var>162.26</var>accounting system has been regularly employed, or if that employed does not clearly or <br />
         		<a id="pl.162.27"></a><var>162.27</var>fairly reflect income or the income taxable under this chapter, the computation shall be <br />
         		<a id="pl.162.28"></a><var>162.28</var>made in accordance with such method as in the opinion of the commissioner does clearly <br />
         		<a id="pl.162.29"></a><var>162.29</var>and fairly reflect income and the income taxable under this chapter.<br />
         		<a id="pl.162.30"></a><var>162.30</var>Except as otherwise expressly provided in this chapter, a taxpayer who changes the <br />
         		<a id="pl.162.31"></a><var>162.31</var>method of accounting for regularly computing the taxpayer's income in keeping books <br />
         		<a id="pl.162.32"></a><var>162.32</var>shall, before computing net income and taxable net income under the new method, secure <br />
         		<a id="pl.162.33"></a><var>162.33</var>the consent of the commissioner.<br />
         		<a id="pl.163.1"></a><var>163.1</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.163.2"></a><var>163.2</var>December 31, 2013.<br />
         		<br />
         		<a id="bill.9.67.0"></a><a id="pl.163.3"></a><var>163.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 67. Minnesota Statutes 2013 Supplement, section 290.0921, subdivision 3, <br />
         		<a id="pl.163.4"></a><var>163.4</var>is amended to read:<br />
         		<a id="pl.163.5"></a><var>163.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Alternative minimum taxable income.</b> "Alternative minimum taxable <br />
         		<a id="pl.163.6"></a><var>163.6</var>income" is Minnesota net income as defined in section 
         <statute_ref>290.01, subdivision 19</statute_ref>, and <br />
         		<a id="pl.163.7"></a><var>163.7</var>includes the adjustments and tax preference items in sections 56, 57, 58, and 59(d), (e), <br />
         		<a id="pl.163.8"></a><var>163.8</var>(f), and (h) of the Internal Revenue Code. If a corporation files a separate company <br />
         		<a id="pl.163.9"></a><var>163.9</var>Minnesota tax return, the minimum tax must be computed on a separate company basis. <br />
         		<a id="pl.163.10"></a><var>163.10</var>If a corporation is part of a tax group filing a unitary return, the minimum tax must be <br />
         		<a id="pl.163.11"></a><var>163.11</var>computed on a unitary basis. The following adjustments must be made.<br />
         		<a id="pl.163.12"></a><var>163.12</var>(1) For purposes of the depreciation adjustments under section 56(a)(1) and <br />
         		<a id="pl.163.13"></a><var>163.13</var>56(g)(4)(A) of the Internal Revenue Code, the basis for depreciable property placed in <br />
         		<a id="pl.163.14"></a><var>163.14</var>service in a taxable year beginning before January 1, 1990, is the adjusted basis for federal <br />
         		<a id="pl.163.15"></a><var>163.15</var>income tax purposes, including any modification made in a taxable year under section <br />
         		<a id="pl.163.16"></a><var>163.16</var><statute_ref>290.01, subdivision 19e</statute_ref>, or Minnesota Statutes 1986, section 
         <statute_ref>290.09, subdivision 7</statute_ref>, <br />
         		<a id="pl.163.17"></a><var>163.17</var>paragraph (c).<br />
         		<a id="pl.163.18"></a><var>163.18</var>For taxable years beginning after December 31, 2000, the amount of any remaining <br />
         		<a id="pl.163.19"></a><var>163.19</var>modification made under section 
         <statute_ref>290.01, subdivision 19e</statute_ref>, or Minnesota Statutes 1986, <br />
         		<a id="pl.163.20"></a><var>163.20</var>section 
         <statute_ref>290.09, subdivision 7</statute_ref>, paragraph (c), not previously deducted is a depreciation <br />
         		<a id="pl.163.21"></a><var>163.21</var>allowance in the first taxable year after December 31, 2000.<br />
         		<a id="pl.163.22"></a><var>163.22</var>(2) (1) The portion of the depreciation deduction allowed for federal income tax <br />
         		<a id="pl.163.23"></a><var>163.23</var>purposes under section 168(k) of the Internal Revenue Code that is required as an <br />
         		<a id="pl.163.24"></a><var>163.24</var>addition under section 
         <statute_ref>290.01, subdivision 19c</statute_ref>, clause (12), is disallowed in determining <br />
         		<a id="pl.163.25"></a><var>163.25</var>alternative minimum taxable income.<br />
         		<a id="pl.163.26"></a><var>163.26</var>(3) (2) The subtraction for depreciation allowed under section 
         <statute_ref>290.01, subdivision <br />
            		<a id="pl.163.27"></a><var>163.27</var>19d
         </statute_ref>, clause (15) (14), is allowed as a depreciation deduction in determining alternative <br />
         		<a id="pl.163.28"></a><var>163.28</var>minimum taxable income.<br />
         		<a id="pl.163.29"></a><var>163.29</var>(4) (3) The alternative tax net operating loss deduction under sections 56(a)(4) and <br />
         		<a id="pl.163.30"></a><var>163.30</var>56(d) of the Internal Revenue Code does not apply.<br />
         		<a id="pl.163.31"></a><var>163.31</var>(5) (4) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the <br />
         		<a id="pl.163.32"></a><var>163.32</var>Internal Revenue Code does not apply.<br />
         		<a id="pl.163.33"></a><var>163.33</var>(6) (5) The tax preference for depletion under section 57(a)(1) of the Internal <br />
         		<a id="pl.163.34"></a><var>163.34</var>Revenue Code does not apply.<br />
         		<a id="pl.164.1"></a><var>164.1</var>(7) The tax preference for intangible drilling costs under section 57(a)(2) of the <br />
         		<a id="pl.164.2"></a><var>164.2</var>Internal Revenue Code must be calculated without regard to subparagraph (E) and the <br />
         		<a id="pl.164.3"></a><var>164.3</var>subtraction under section 
         <statute_ref>290.01, subdivision 19d</statute_ref>, clause (4).<br />
         		<a id="pl.164.4"></a><var>164.4</var>(8) (6) The tax preference for tax exempt interest under section 57(a)(5) of the <br />
         		<a id="pl.164.5"></a><var>164.5</var>Internal Revenue Code does not apply.<br />
         		<a id="pl.164.6"></a><var>164.6</var>(9) (7) The tax preference for charitable contributions of appreciated property under <br />
         		<a id="pl.164.7"></a><var>164.7</var>section 57(a)(6) of the Internal Revenue Code does not apply.<br />
         		<a id="pl.164.8"></a><var>164.8</var>(10) For purposes of calculating the tax preference for accelerated depreciation or <br />
         		<a id="pl.164.9"></a><var>164.9</var>amortization on certain property placed in service before January 1, 1987, under section <br />
         		<a id="pl.164.10"></a><var>164.10</var>57(a)(7) of the Internal Revenue Code, the deduction allowable for the taxable year is the <br />
         		<a id="pl.164.11"></a><var>164.11</var>deduction allowed under section 
         <statute_ref>290.01, subdivision 19e</statute_ref>.<br />
         		<a id="pl.164.12"></a><var>164.12</var>For taxable years beginning after December 31, 2000, the amount of any remaining <br />
         		<a id="pl.164.13"></a><var>164.13</var>modification made under section 
         <statute_ref>290.01, subdivision 19e</statute_ref>, not previously deducted is a <br />
         		<a id="pl.164.14"></a><var>164.14</var>depreciation or amortization allowance in the first taxable year after December 31, 2004.<br />
         		<a id="pl.164.15"></a><var>164.15</var>(11) (8) For purposes of calculating the adjustment for adjusted current earnings <br />
         		<a id="pl.164.16"></a><var>164.16</var>in section 56(g) of the Internal Revenue Code, the term "alternative minimum taxable <br />
         		<a id="pl.164.17"></a><var>164.17</var>income" as it is used in section 56(g) of the Internal Revenue Code, means alternative <br />
         		<a id="pl.164.18"></a><var>164.18</var>minimum taxable income as defined in this subdivision, determined without regard to the <br />
         		<a id="pl.164.19"></a><var>164.19</var>adjustment for adjusted current earnings in section 56(g) of the Internal Revenue Code.<br />
         		<a id="pl.164.20"></a><var>164.20</var>(12) (9) For purposes of determining the amount of adjusted current earnings under <br />
         		<a id="pl.164.21"></a><var>164.21</var>section 56(g)(3) of the Internal Revenue Code, no adjustment shall be made under section <br />
         		<a id="pl.164.22"></a><var>164.22</var>56(g)(4) of the Internal Revenue Code with respect to (i) the amount of foreign dividend <br />
         		<a id="pl.164.23"></a><var>164.23</var>gross-up subtracted as provided in section 
         <statute_ref>290.01, subdivision 19d</statute_ref>, clause (1), or (ii) the <br />
         		<a id="pl.164.24"></a><var>164.24</var>amount of refunds of income, excise, or franchise taxes subtracted as provided in section <br />
         		
         <statute_ref><a id="pl.164.25"></a><var>164.25</var>290.01, subdivision 19d
         </statute_ref>, clause (9).<br />
         		<a id="pl.164.26"></a><var>164.26</var>(13) (10) Alternative minimum taxable income excludes the income from operating <br />
         		<a id="pl.164.27"></a><var>164.27</var>in a job opportunity building zone as provided under section 
         <statute_ref>469.317</statute_ref>.<br />
         		<a id="pl.164.28"></a><var>164.28</var>(14) Alternative minimum taxable income excludes the income from operating in a <br />
         		<a id="pl.164.29"></a><var>164.29</var>biotechnology and health sciences industry zone as provided under section 
         <statute_ref>469.337</statute_ref>.<br />
         		<a id="pl.164.30"></a><var>164.30</var>Items of tax preference must not be reduced below zero as a result of the <br />
         		<a id="pl.164.31"></a><var>164.31</var>modifications in this subdivision.<br />
         		<a id="pl.164.32"></a><var>164.32</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.164.33"></a><var>164.33</var>December 31, 2013.<br />
         		<br />
         		<a id="bill.9.68.0"></a><a id="pl.164.34"></a><var>164.34</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 68. Minnesota Statutes 2012, section 290.0922, subdivision 3, is amended to read:<br />
         		<a id="pl.165.1"></a><var>165.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Definitions.</b> (a) "Minnesota sales or receipts" means the total sales <br />
         		<a id="pl.165.2"></a><var>165.2</var>apportioned to Minnesota pursuant to section 
         <statute_ref>290.191, subdivision 5</statute_ref>, the total receipts <br />
         		<a id="pl.165.3"></a><var>165.3</var>attributed to Minnesota pursuant to section 
         <statute_ref>290.191</statute_ref>, subdivisions 6 to 8, and/or the <br />
         		<a id="pl.165.4"></a><var>165.4</var>total sales or receipts apportioned or attributed to Minnesota pursuant to any other <br />
         		<a id="pl.165.5"></a><var>165.5</var>apportionment formula applicable to the taxpayer.<br />
         		<a id="pl.165.6"></a><var>165.6</var>(b) "Minnesota property" means total Minnesota tangible property as provided in <br />
         		<a id="pl.165.7"></a><var>165.7</var>section 
         <statute_ref>290.191</statute_ref>, subdivisions 9 to 11, any other tangible property located in Minnesota, <br />
         		<a id="pl.165.8"></a><var>165.8</var>but does not include: (1) the property of a qualified business as defined under section <br />
         		
         <statute_ref><a id="pl.165.9"></a><var>165.9</var>469.310, subdivision 11
         </statute_ref>, that is located in a job opportunity building zone designated <br />
         		<a id="pl.165.10"></a><var>165.10</var>under section 
         <statute_ref>469.314 </statute_ref>and (2) property of a qualified business located in a biotechnology <br />
         		<a id="pl.165.11"></a><var>165.11</var>and health sciences industry zone designated under section 
         <statute_ref>469.334</statute_ref>. Intangible property <br />
         		<a id="pl.165.12"></a><var>165.12</var>shall not be included in Minnesota property for purposes of this section. Taxpayers who <br />
         		<a id="pl.165.13"></a><var>165.13</var>do not utilize tangible property to apportion income shall nevertheless include Minnesota <br />
         		<a id="pl.165.14"></a><var>165.14</var>property for purposes of this section. On a return for a short taxable year, the amount of <br />
         		<a id="pl.165.15"></a><var>165.15</var>Minnesota property owned, as determined under section 
         <statute_ref>290.191</statute_ref>, shall be included in <br />
         		<a id="pl.165.16"></a><var>165.16</var>Minnesota property based on a fraction in which the numerator is the number of days in <br />
         		<a id="pl.165.17"></a><var>165.17</var>the short taxable year and the denominator is 365.<br />
         		<a id="pl.165.18"></a><var>165.18</var>(c) "Minnesota payrolls" means total Minnesota payrolls as provided in section <br />
         		
         <statute_ref><a id="pl.165.19"></a><var>165.19</var>290.191, subdivision 12
         </statute_ref>, but does not include: (1) the job opportunity building zone payroll <br />
         		<a id="pl.165.20"></a><var>165.20</var>under section 
         <statute_ref>469.310, subdivision 8</statute_ref>, of a qualified business as defined under section <br />
         		
         <statute_ref><a id="pl.165.21"></a><var>165.21</var>469.310, subdivision 11
         </statute_ref>, and (2) biotechnology and health sciences industry zone payrolls <br />
         		<a id="pl.165.22"></a><var>165.22</var>under section 
         <statute_ref>469.330, subdivision 8</statute_ref>. Taxpayers who do not utilize payrolls to apportion <br />
         		<a id="pl.165.23"></a><var>165.23</var>income shall nevertheless include Minnesota payrolls for purposes of this section.<br />
         		<a id="pl.165.24"></a><var>165.24</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.165.25"></a><var>165.25</var>December 31, 2013.<br />
         		<br />
         		<a id="bill.9.69.0"></a><a id="pl.165.26"></a><var>165.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 69. Minnesota Statutes 2012, section 290.095, subdivision 3, is amended to read:<br />
         		<a id="pl.165.27"></a><var>165.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Carryover.</b> (a) A net operating loss incurred in a during the taxable year: <br />
         		<a id="pl.165.28"></a><var>165.28</var>(i) beginning after December 31, 1986, shall be a net operating loss carryover to each of <br />
         		<a id="pl.165.29"></a><var>165.29</var>the 15 taxable years following the taxable year of such loss; (ii) beginning before January <br />
         		<a id="pl.165.30"></a><var>165.30</var>1, 1987, shall be a net operating loss carryover to each of the five taxable years following <br />
         		<a id="pl.165.31"></a><var>165.31</var>the taxable year of such loss subject to the provisions of Minnesota Statutes 1986, section <br />
         		<a id="pl.165.32"></a><var>165.32</var><statute_ref>290.095</statute_ref>; and (iii) beginning before January 1, 1987, shall be a net operating loss carryback <br />
         		<a id="pl.165.33"></a><var>165.33</var>to each of the three taxable years preceding the loss year subject to the provisions of <br />
         		<a id="pl.165.34"></a><var>165.34</var>Minnesota Statutes 1986, section 
         <statute_ref>290.095</statute_ref>.<br />
         		<a id="pl.166.1"></a><var>166.1</var>(b) The entire amount of the net operating loss for any taxable year shall be carried to <br />
         		<a id="pl.166.2"></a><var>166.2</var>the earliest of the taxable years to which such loss may be carried. The portion of such loss <br />
         		<a id="pl.166.3"></a><var>166.3</var>which shall be carried to each of the other taxable years shall be the excess, if any, of the <br />
         		<a id="pl.166.4"></a><var>166.4</var>amount of such loss over the sum of the taxable net income, adjusted by the modifications <br />
         		<a id="pl.166.5"></a><var>166.5</var>specified in subdivision 4, for each of the taxable years to which such loss may be carried.<br />
         		<a id="pl.166.6"></a><var>166.6</var>(c) Where a corporation apportions its income under the provisions of section <br />
         		
         <statute_ref><a id="pl.166.7"></a><var>166.7</var>290.191
         </statute_ref>, the net operating loss deduction incurred in any taxable year shall be allowed <br />
         		<a id="pl.166.8"></a><var>166.8</var>to the extent of the apportionment ratio of the loss year.<br />
         		<a id="pl.166.9"></a><var>166.9</var>(d) The provisions of sections 381, 382, and 384 of the Internal Revenue Code apply <br />
         		<a id="pl.166.10"></a><var>166.10</var>to carryovers in certain corporate acquisitions and special limitations on net operating loss <br />
         		<a id="pl.166.11"></a><var>166.11</var>carryovers. The limitation amount determined under section 382 shall be applied to net <br />
         		<a id="pl.166.12"></a><var>166.12</var>income, before apportionment, in each post change year to which a loss is carried.<br />
         		<a id="pl.166.13"></a><var>166.13</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.166.14"></a><var>166.14</var>December 31, 2013.<br />
         		<br />
         		<a id="bill.9.70.0"></a><a id="pl.166.15"></a><var>166.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 70. Minnesota Statutes 2012, section 290.9728, subdivision 2, is amended to read:<br />
         		<a id="pl.166.16"></a><var>166.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Taxable income.</b> For purposes of this section, taxable income means <br />
         		<a id="pl.166.17"></a><var>166.17</var>the lesser of:<br />
         		<a id="pl.166.18"></a><var>166.18</var>(1) the amount of the net capital gain of the S corporation for the taxable year, as <br />
         		<a id="pl.166.19"></a><var>166.19</var>determined under sections 1222 and 1374 of the Internal Revenue Code, and subject to the <br />
         		<a id="pl.166.20"></a><var>166.20</var>modifications provided in section 
         <statute_ref>290.01</statute_ref>, subdivisions 19e and subdivision 19f, in excess <br />
         		<a id="pl.166.21"></a><var>166.21</var>of $25,000 that is allocable to this state under section 
         <statute_ref>290.17</statute_ref>, 
         <statute_ref>290.191</statute_ref>, or 
         <statute_ref>290.20</statute_ref>; or<br />
         		<a id="pl.166.22"></a><var>166.22</var>(2) the amount of the S corporation's federal taxable income, subject to the <br />
         		<a id="pl.166.23"></a><var>166.23</var>provisions of section 
         <statute_ref>290.01</statute_ref>, subdivisions 19c to 19f, that is allocable to this state under <br />
         		<a id="pl.166.24"></a><var>166.24</var>section 
         <statute_ref>290.17</statute_ref>, 
         <statute_ref>290.191</statute_ref>, or 
         <statute_ref>290.20</statute_ref>.<br />
         		<a id="pl.166.25"></a><var>166.25</var><b>EFFECTIVE DATE.</b>This section is effective for taxable years beginning after <br />
         		<a id="pl.166.26"></a><var>166.26</var>December 31, 2013.<br />
         		<br />
         		<a id="bill.9.71.0"></a><a id="pl.166.27"></a><var>166.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 71. Minnesota Statutes 2013 Supplement, section 297A.61, subdivision 3, as <br />
         		<a id="pl.166.28"></a><var>166.28</var>amended by Laws 2014, chapter 150, article 2, section 1, is amended to read:<br />
         		<a id="pl.166.29"></a><var>166.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Sale and purchase.</b> (a) "Sale" and "purchase" include, but are not limited <br />
         		<a id="pl.166.30"></a><var>166.30</var>to, each of the transactions listed in this subdivision. In applying the provisions of this <br />
         		<a id="pl.166.31"></a><var>166.31</var>chapter, the terms "tangible personal property" and "retail sale" include the taxable <br />
         		<a id="pl.166.32"></a><var>166.32</var>services listed in paragraph (g), clause (6), items (i) to (vi) and (viii), and the provision <br />
         		<a id="pl.166.33"></a><var>166.33</var>of these taxable services, unless specifically provided otherwise. Services performed by <br />
         		<a id="pl.167.1"></a><var>167.1</var>an employee for an employer are not taxable. Services performed by a partnership or <br />
         		<a id="pl.167.2"></a><var>167.2</var>association for another partnership or association are not taxable if one of the entities owns <br />
         		<a id="pl.167.3"></a><var>167.3</var>or controls more than 80 percent of the voting power of the equity interest in the other <br />
         		<a id="pl.167.4"></a><var>167.4</var>entity. Services performed between members of an affiliated group of corporations are not <br />
         		<a id="pl.167.5"></a><var>167.5</var>taxable. For purposes of the preceding sentence, "affiliated group of corporations" means <br />
         		<a id="pl.167.6"></a><var>167.6</var>those entities that would be classified as members of an affiliated group as defined under <br />
         		<a id="pl.167.7"></a><var>167.7</var>United States Code, title 26, section 1504, disregarding the exclusions in section 1504(b).<br />
         		<a id="pl.167.8"></a><var>167.8</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) Sale and purchase include:<br />
         		<a id="pl.167.9"></a><var>167.9</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) any transfer of title or possession, or both, of tangible personal property, whether <br />
         		<a id="pl.167.10"></a><var>167.10</var>absolutely or conditionally, for a consideration in money or by exchange or barter; and<br />
         		<a id="pl.167.11"></a><var>167.11</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) the leasing of or the granting of a license to use or consume, for a consideration <br />
         		<a id="pl.167.12"></a><var>167.12</var>in money or by exchange or barter, tangible personal property, other than a manufactured <br />
         		<a id="pl.167.13"></a><var>167.13</var>home used for residential purposes for a continuous period of 30 days or more.<br />
         		<a id="pl.167.14"></a><var>167.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) Sale and purchase include the production, fabrication, printing, or processing of <br />
         		<a id="pl.167.15"></a><var>167.15</var>tangible personal property for a consideration for consumers who furnish either directly or <br />
         		<a id="pl.167.16"></a><var>167.16</var>indirectly the materials used in the production, fabrication, printing, or processing.<br />
         		<a id="pl.167.17"></a><var>167.17</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) Sale and purchase include the preparing for a consideration of food. <br />
         		<a id="pl.167.18"></a><var>167.18</var>Notwithstanding section 
         <statute_ref>297A.67, subdivision 2</statute_ref>, taxable food includes, but is not limited <br />
         		<a id="pl.167.19"></a><var>167.19</var>to, the following:<br />
         		<a id="pl.167.20"></a><var>167.20</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) prepared food sold by the retailer;<br />
         		<a id="pl.167.21"></a><var>167.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) soft drinks;<br />
         		<a id="pl.167.22"></a><var>167.22</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) candy;<br />
         		<a id="pl.167.23"></a><var>167.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) dietary supplements; and<br />
         		<a id="pl.167.24"></a><var>167.24</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) all food sold through vending machines.<br />
         		<a id="pl.167.25"></a><var>167.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(e) A sale and a purchase includes the furnishing for a consideration of electricity, <br />
         		<a id="pl.167.26"></a><var>167.26</var>gas, water, or steam for use or consumption within this state.<br />
         		<a id="pl.167.27"></a><var>167.27</var>&nbsp;&nbsp;&nbsp;&nbsp;(f) A sale and a purchase includes the transfer for a consideration of prewritten <br />
         		<a id="pl.167.28"></a><var>167.28</var>computer software whether delivered electronically, by load and leave, or otherwise.<br />
         		<a id="pl.167.29"></a><var>167.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(g) A sale and a purchase includes the furnishing for a consideration of the following <br />
         		<a id="pl.167.30"></a><var>167.30</var>services:<br />
         		<a id="pl.167.31"></a><var>167.31</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) the privilege of admission to places of amusement, recreational areas, or athletic <br />
         		<a id="pl.167.32"></a><var>167.32</var>events, and the making available of amusement devices, tanning facilities, reducing <br />
         		<a id="pl.167.33"></a><var>167.33</var>salons, steam baths, Turkish baths, health clubs, and spas or athletic facilities;<br />
         		<a id="pl.167.34"></a><var>167.34</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) lodging and related services by a hotel, rooming house, resort, campground, <br />
         		<a id="pl.167.35"></a><var>167.35</var>motel, or trailer camp, including furnishing the guest of the facility with access to <br />
         		<a id="pl.167.36"></a><var>167.36</var>telecommunication services, and the granting of any similar license to use real property in <br />
         		<a id="pl.168.1"></a><var>168.1</var>a specific facility, other than the renting or leasing of it for a continuous period of 30 days <br />
         		<a id="pl.168.2"></a><var>168.2</var>or more under an enforceable written agreement that may not be terminated without prior <br />
         		<a id="pl.168.3"></a><var>168.3</var>notice and including accommodations intermediary services provided in connection with <br />
         		<a id="pl.168.4"></a><var>168.4</var>other services provided under this clause;<br />
         		<a id="pl.168.5"></a><var>168.5</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) nonresidential parking services, whether on a contractual, hourly, or other <br />
         		<a id="pl.168.6"></a><var>168.6</var>periodic basis, except for parking at a meter;<br />
         		<a id="pl.168.7"></a><var>168.7</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) the granting of membership in a club, association, or other organization if:<br />
         		<a id="pl.168.8"></a><var>168.8</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) the club, association, or other organization makes available for the use of its <br />
         		<a id="pl.168.9"></a><var>168.9</var>members sports and athletic facilities, without regard to whether a separate charge is <br />
         		<a id="pl.168.10"></a><var>168.10</var>assessed for use of the facilities; and<br />
         		<a id="pl.168.11"></a><var>168.11</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) use of the sports and athletic facility is not made available to the general public <br />
         		<a id="pl.168.12"></a><var>168.12</var>on the same basis as it is made available to members.<br />
         		<a id="pl.168.13"></a><var>168.13</var>Granting of membership means both onetime initiation fees and periodic membership <br />
         		<a id="pl.168.14"></a><var>168.14</var>dues. Sports and athletic facilities include golf courses; tennis, racquetball, handball, and <br />
         		<a id="pl.168.15"></a><var>168.15</var>squash courts; basketball and volleyball facilities; running tracks; exercise equipment; <br />
         		<a id="pl.168.16"></a><var>168.16</var>swimming pools; and other similar athletic or sports facilities;<br />
         		<a id="pl.168.17"></a><var>168.17</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) delivery of aggregate materials by a third party, excluding delivery of aggregate <br />
         		<a id="pl.168.18"></a><var>168.18</var>material used in road construction; and delivery of concrete block by a third party if the <br />
         		<a id="pl.168.19"></a><var>168.19</var>delivery would be subject to the sales tax if provided by the seller of the concrete block. <br />
         		<a id="pl.168.20"></a><var>168.20</var>For purposes of this clause, "road construction" means construction of:<br />
         		<a id="pl.168.21"></a><var>168.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) public roads;<br />
         		<a id="pl.168.22"></a><var>168.22</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) cartways; and<br />
         		<a id="pl.168.23"></a><var>168.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(iii) private roads in townships located outside of the seven-county metropolitan area <br />
         		<a id="pl.168.24"></a><var>168.24</var>up to the point of the emergency response location sign; and<br />
         		<a id="pl.168.25"></a><var>168.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(6) services as provided in this clause:<br />
         		<a id="pl.168.26"></a><var>168.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) laundry and dry cleaning services including cleaning, pressing, repairing, altering, <br />
         		<a id="pl.168.27"></a><var>168.27</var>and storing clothes, linen services and supply, cleaning and blocking hats, and carpet, <br />
         		<a id="pl.168.28"></a><var>168.28</var>drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not <br />
         		<a id="pl.168.29"></a><var>168.29</var>include services provided by coin operated facilities operated by the customer;<br />
         		<a id="pl.168.30"></a><var>168.30</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) motor vehicle washing, waxing, and cleaning services, including services <br />
         		<a id="pl.168.31"></a><var>168.31</var>provided by coin operated facilities operated by the customer, and rustproofing, <br />
         		<a id="pl.168.32"></a><var>168.32</var>undercoating, and towing of motor vehicles;<br />
         		<a id="pl.168.33"></a><var>168.33</var>&nbsp;&nbsp;&nbsp;&nbsp;(iii) building and residential cleaning, maintenance, and disinfecting services and <br />
         		<a id="pl.168.34"></a><var>168.34</var>pest control and exterminating services;<br />
         		<a id="pl.168.35"></a><var>168.35</var>&nbsp;&nbsp;&nbsp;&nbsp;(iv) detective, security, burglar, fire alarm, and armored car services; but not <br />
         		<a id="pl.168.36"></a><var>168.36</var>including services performed within the jurisdiction they serve by off-duty licensed peace <br />
         		<a id="pl.169.1"></a><var>169.1</var>officers as defined in section 
         <statute_ref>626.84, subdivision 1</statute_ref>, or services provided by a nonprofit <br />
         		<a id="pl.169.2"></a><var>169.2</var>organization or any organization at the direction of a county for monitoring and electronic <br />
         		<a id="pl.169.3"></a><var>169.3</var>surveillance of persons placed on in-home detention pursuant to court order or under the <br />
         		<a id="pl.169.4"></a><var>169.4</var>direction of the Minnesota Department of Corrections;<br />
         		<a id="pl.169.5"></a><var>169.5</var>&nbsp;&nbsp;&nbsp;&nbsp;(v) pet grooming services;<br />
         		<a id="pl.169.6"></a><var>169.6</var>&nbsp;&nbsp;&nbsp;&nbsp;(vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting <br />
         		<a id="pl.169.7"></a><var>169.7</var>and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor <br />
         		<a id="pl.169.8"></a><var>169.8</var>plant care; tree, bush, shrub, and stump removal, except when performed as part of a land <br />
         		<a id="pl.169.9"></a><var>169.9</var>clearing contract as defined in section 
         <statute_ref>297A.68, subdivision 40</statute_ref>; and tree trimming for <br />
         		<a id="pl.169.10"></a><var>169.10</var>public utility lines. Services performed under a construction contract for the installation of <br />
         		<a id="pl.169.11"></a><var>169.11</var>shrubbery, plants, sod, trees, bushes, and similar items are not taxable;<br />
         		<a id="pl.169.12"></a><var>169.12</var>&nbsp;&nbsp;&nbsp;&nbsp;(vii) massages, except when provided by a licensed health care facility or <br />
         		<a id="pl.169.13"></a><var>169.13</var>professional or upon written referral from a licensed health care facility or professional for <br />
         		<a id="pl.169.14"></a><var>169.14</var>treatment of illness, injury, or disease; and<br />
         		<a id="pl.169.15"></a><var>169.15</var>&nbsp;&nbsp;&nbsp;&nbsp;(viii) the furnishing of lodging, board, and care services for animals in kennels and <br />
         		<a id="pl.169.16"></a><var>169.16</var>other similar arrangements, but excluding veterinary and horse boarding services.<br />
         		<a id="pl.169.17"></a><var>169.17</var>&nbsp;&nbsp;&nbsp;&nbsp;(h) A sale and a purchase includes the furnishing for a consideration of tangible <br />
         		<a id="pl.169.18"></a><var>169.18</var>personal property or taxable services by the United States or any of its agencies or <br />
         		<a id="pl.169.19"></a><var>169.19</var>instrumentalities, or the state of Minnesota, its agencies, instrumentalities, or political <br />
         		<a id="pl.169.20"></a><var>169.20</var>subdivisions.<br />
         		<a id="pl.169.21"></a><var>169.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) A sale and a purchase includes the furnishing for a consideration of <br />
         		<a id="pl.169.22"></a><var>169.22</var>telecommunications services, ancillary services associated with telecommunication <br />
         		<a id="pl.169.23"></a><var>169.23</var>services, and pay television services. Telecommunication services include, but are <br />
         		<a id="pl.169.24"></a><var>169.24</var>not limited to, the following services, as defined in section 
         <statute_ref>297A.669</statute_ref>: air-to-ground <br />
         		<a id="pl.169.25"></a><var>169.25</var>radiotelephone service, mobile telecommunication service, postpaid calling service, <br />
         		<a id="pl.169.26"></a><var>169.26</var>prepaid calling service, prepaid wireless calling service, and private communication <br />
         		<a id="pl.169.27"></a><var>169.27</var>services. The services in this paragraph are taxed to the extent allowed under federal law.<br />
         		<a id="pl.169.28"></a><var>169.28</var>&nbsp;&nbsp;&nbsp;&nbsp;(j) A sale and a purchase includes the furnishing for a consideration of installation if <br />
         		<a id="pl.169.29"></a><var>169.29</var>the installation charges would be subject to the sales tax if the installation were provided <br />
         		<a id="pl.169.30"></a><var>169.30</var>by the seller of the item being installed.<br />
         		<a id="pl.169.31"></a><var>169.31</var>&nbsp;&nbsp;&nbsp;&nbsp;(k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer <br />
         		<a id="pl.169.32"></a><var>169.32</var>to a customer when (1) the vehicle is rented by the customer for a consideration, or (2) <br />
         		<a id="pl.169.33"></a><var>169.33</var>the motor vehicle dealer is reimbursed pursuant to a service contract as defined in section <br />
         		
         <statute_ref><a id="pl.169.34"></a><var>169.34</var>59B.02, subdivision
         </statute_ref> 11.<br />
         		<a id="pl.169.35"></a><var>169.35</var>&nbsp;&nbsp;&nbsp;&nbsp;(l) A sale and a purchase includes furnishing for a consideration of specified digital <br />
         		<a id="pl.169.36"></a><var>169.36</var>products or other digital products or granting the right for a consideration to use specified <br />
         		<a id="pl.170.1"></a><var>170.1</var>digital products or other digital products on a temporary or permanent basis and regardless <br />
         		<a id="pl.170.2"></a><var>170.2</var>of whether the purchaser is required to make continued payments for such right. Wherever <br />
         		<a id="pl.170.3"></a><var>170.3</var>the term "tangible personal property" is used in this chapter, other than in subdivisions 10 <br />
         		<a id="pl.170.4"></a><var>170.4</var>and 38, the provisions also apply to specified digital products, or other digital products, <br />
         		<a id="pl.170.5"></a><var>170.5</var>unless specifically provided otherwise or the context indicates otherwise.<br />
         		<a id="pl.170.6"></a><var>170.6</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.72.0"></a><a id="pl.170.7"></a><var>170.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 72. Minnesota Statutes 2012, section 297A.70, subdivision 10, is amended to read:<br />
         		<a id="pl.170.8"></a><var>170.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 10. <b>Nonprofit tickets or admissions.</b> (a) Tickets or admissions to an event <br />
         		<a id="pl.170.9"></a><var>170.9</var>are exempt if all the gross receipts are recorded as such, in accordance with generally <br />
         		<a id="pl.170.10"></a><var>170.10</var>accepted accounting principles, on the books of one or more organizations whose primary <br />
         		<a id="pl.170.11"></a><var>170.11</var>mission is to provide an opportunity for citizens of the state to participate in the creation, <br />
         		<a id="pl.170.12"></a><var>170.12</var>performance, or appreciation of the arts, and provided that each organization is:<br />
         		<a id="pl.170.13"></a><var>170.13</var>(1) an organization described in section 501(c)(3) of the Internal Revenue Code <br />
         		<a id="pl.170.14"></a><var>170.14</var>in which voluntary contributions make up at least the following five percent of the <br />
         		<a id="pl.170.15"></a><var>170.15</var>organization's annual revenue in its most recently completed 12-month fiscal year, or in <br />
         		<a id="pl.170.16"></a><var>170.16</var>the current year if the organization has not completed a 12-month fiscal year:;<br />
         		<a id="pl.170.17"></a><var>170.17</var>(i) for sales made after July 31, 2001, and before July 1, 2002, for the organization's <br />
         		<a id="pl.170.18"></a><var>170.18</var>fiscal year completed in calendar year 2000, three percent;<br />
         		<a id="pl.170.19"></a><var>170.19</var>(ii) for sales made on or after July 1, 2002, and on or before June 30, 2003, for the <br />
         		<a id="pl.170.20"></a><var>170.20</var>organization's fiscal year completed in calendar year 2001, three percent;<br />
         		<a id="pl.170.21"></a><var>170.21</var>(iii) for sales made on or after July 1, 2003, and on or before June 30, 2004, for the <br />
         		<a id="pl.170.22"></a><var>170.22</var>organization's fiscal year completed in calendar year 2002, four percent; and<br />
         		<a id="pl.170.23"></a><var>170.23</var>(iv) for sales made in each 12-month period, beginning on July 1, 2004, and each <br />
         		<a id="pl.170.24"></a><var>170.24</var>subsequent year, for the organization's fiscal year completed in the preceding calendar <br />
         		<a id="pl.170.25"></a><var>170.25</var>year, five percent;<br />
         		<a id="pl.170.26"></a><var>170.26</var>(2) a municipal board that promotes cultural and arts activities; or<br />
         		<a id="pl.170.27"></a><var>170.27</var>(3) the University of Minnesota, a state college and university, or a private nonprofit <br />
         		<a id="pl.170.28"></a><var>170.28</var>college or university provided that the event is held at a facility owned by the educational <br />
         		<a id="pl.170.29"></a><var>170.29</var>institution holding the event.<br />
         		<a id="pl.170.30"></a><var>170.30</var>The exemption only applies if the entire proceeds, after reasonable expenses, are used <br />
         		<a id="pl.170.31"></a><var>170.31</var>solely to provide opportunities for citizens of the state to participate in the creation, <br />
         		<a id="pl.170.32"></a><var>170.32</var>performance, or appreciation of the arts.<br />
         		<a id="pl.170.33"></a><var>170.33</var>(b) Tickets or admissions to the premises of the Minnesota Zoological Garden are <br />
         		<a id="pl.170.34"></a><var>170.34</var>exempt, provided that the exemption under this paragraph does not apply to tickets or <br />
         		<a id="pl.170.35"></a><var>170.35</var>admissions to performances or events held on the premises unless the performance or <br />
         		<a id="pl.171.1"></a><var>171.1</var>event is sponsored and conducted exclusively by the Minnesota Zoological Board or <br />
         		<a id="pl.171.2"></a><var>171.2</var>employees of the Minnesota Zoological Garden.<br />
         		<a id="pl.171.3"></a><var>171.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.73.0"></a><a id="pl.171.4"></a><var>171.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 73. Minnesota Statutes 2013 Supplement, section 297A.75, subdivision 1, is <br />
         		<a id="pl.171.5"></a><var>171.5</var>amended to read:<br />
         		<a id="pl.171.6"></a><var>171.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Tax collected.</b> The tax on the gross receipts from the sale of the <br />
         		<a id="pl.171.7"></a><var>171.7</var>following exempt items must be imposed and collected as if the sale were taxable and the <br />
         		<a id="pl.171.8"></a><var>171.8</var>rate under section 
         <statute_ref>297A.62, subdivision 1</statute_ref>, applied. The exempt items include:<br />
         		<a id="pl.171.9"></a><var>171.9</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) building materials for an agricultural processing facility exempt under section <br />
         		
         <statute_ref><a id="pl.171.10"></a><var>171.10</var>297A.71, subdivision 13
         </statute_ref>;<br />
         		<a id="pl.171.11"></a><var>171.11</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) building materials for mineral production facilities exempt under section <br />
         		
         <statute_ref><a id="pl.171.12"></a><var>171.12</var>297A.71, subdivision 14
         </statute_ref>;<br />
         		<a id="pl.171.13"></a><var>171.13</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) building materials for correctional facilities under section 
         <statute_ref>297A.71, subdivision 3</statute_ref>;<br />
         		<a id="pl.171.14"></a><var>171.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) building materials used in a residence for disabled veterans exempt under section <br />
         		
         <statute_ref><a id="pl.171.15"></a><var>171.15</var>297A.71, subdivision 11
         </statute_ref>;<br />
         		<a id="pl.171.16"></a><var>171.16</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) elevators and building materials exempt under section 
         <statute_ref>297A.71, subdivision 12</statute_ref>;<br />
         		<a id="pl.171.17"></a><var>171.17</var>&nbsp;&nbsp;&nbsp;&nbsp;(6) building materials for the Long Lake Conservation Center exempt under section <br />
         		<a id="pl.171.18"></a><var>171.18</var><statute_ref>297A.71, subdivision 17</statute_ref>;<br />
         		<a id="pl.171.19"></a><var>171.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(7) (6) materials and supplies for qualified low-income housing under section <br />
         		
         <statute_ref><a id="pl.171.20"></a><var>171.20</var>297A.71, subdivision 23
         </statute_ref>;<br />
         		<a id="pl.171.21"></a><var>171.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(8) (7) materials, supplies, and equipment for municipal electric utility facilities <br />
         		<a id="pl.171.22"></a><var>171.22</var>under section 
         <statute_ref>297A.71, subdivision 35</statute_ref>;<br />
         		<a id="pl.171.23"></a><var>171.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(9) (8) equipment and materials used for the generation, transmission, and <br />
         		<a id="pl.171.24"></a><var>171.24</var>distribution of electrical energy and an aerial camera package exempt under section <br />
         		
         <statute_ref><a id="pl.171.25"></a><var>171.25</var>297A.68
         </statute_ref>, subdivision 37;<br />
         		<a id="pl.171.26"></a><var>171.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(10) (9) commuter rail vehicle and repair parts under section 
         <statute_ref>297A.70</statute_ref>, subdivision <br />
         		<a id="pl.171.27"></a><var>171.27</var>3, paragraph (a), clause (10);<br />
         		<a id="pl.171.28"></a><var>171.28</var>&nbsp;&nbsp;&nbsp;&nbsp;(11) (10) materials, supplies, and equipment for construction or improvement of <br />
         		<a id="pl.171.29"></a><var>171.29</var>projects and facilities under section 
         <statute_ref>297A.71, subdivision 40</statute_ref>;<br />
         		<a id="pl.171.30"></a><var>171.30</var>(12) materials, supplies, and equipment for construction or improvement of a meat <br />
         		<a id="pl.171.31"></a><var>171.31</var>processing facility exempt under section 
         <statute_ref>297A.71, subdivision 41</statute_ref>;<br />
         		<a id="pl.171.32"></a><var>171.32</var>(13) (11) materials, supplies, and equipment for construction, improvement, or <br />
         		<a id="pl.171.33"></a><var>171.33</var>expansion of:<br />
         		<a id="pl.171.34"></a><var>171.34</var>(i) an aerospace defense manufacturing facility exempt under section 
         <statute_ref>297A.71, <br />
            		<a id="pl.171.35"></a><var>171.35</var>subdivision 42
         </statute_ref>;<br />
         		<a id="pl.172.1"></a><var>172.1</var>(ii) a biopharmaceutical manufacturing facility exempt under section 
         <statute_ref>297A.71, <br />
            		<a id="pl.172.2"></a><var>172.2</var>subdivision 45
         </statute_ref>;<br />
         		<a id="pl.172.3"></a><var>172.3</var>(iii) a research and development facility exempt under section 
         <statute_ref>297A.71, subdivision <br />
            		<a id="pl.172.4"></a><var>172.4</var>46
         </statute_ref>; and<br />
         		<a id="pl.172.5"></a><var>172.5</var>(iv) an industrial measurement manufacturing and controls facility exempt under <br />
         		<a id="pl.172.6"></a><var>172.6</var>section 
         <statute_ref>297A.71, subdivision 47</statute_ref>;<br />
         		<a id="pl.172.7"></a><var>172.7</var>(14) (12) enterprise information technology equipment and computer software for <br />
         		<a id="pl.172.8"></a><var>172.8</var>use in a qualified data center exempt under section 
         <statute_ref>297A.68, subdivision 42</statute_ref>;<br />
         		<a id="pl.172.9"></a><var>172.9</var>(15) (13) materials, supplies, and equipment for qualifying capital projects under <br />
         		<a id="pl.172.10"></a><var>172.10</var>section 
         <statute_ref>297A.71, subdivision 44</statute_ref>;<br />
         		<a id="pl.172.11"></a><var>172.11</var>(16) (14) items purchased for use in providing critical access dental services exempt <br />
         		<a id="pl.172.12"></a><var>172.12</var>under section 
         <statute_ref>297A.70, subdivision 7</statute_ref>, paragraph (c); and<br />
         		<a id="pl.172.13"></a><var>172.13</var>(17) (15) items and services purchased under a business subsidy agreement for use or <br />
         		<a id="pl.172.14"></a><var>172.14</var>consumption primarily in greater Minnesota exempt under section 
         <statute_ref>297A.68, subdivision 44</statute_ref>.<br />
         		<a id="pl.172.15"></a><var>172.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.74.0"></a><a id="pl.172.16"></a><var>172.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 74. Minnesota Statutes 2013 Supplement, section 297A.75, subdivision 2, is <br />
         		<a id="pl.172.17"></a><var>172.17</var>amended to read:<br />
         		<a id="pl.172.18"></a><var>172.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Refund; eligible persons.</b> Upon application on forms prescribed by the <br />
         		<a id="pl.172.19"></a><var>172.19</var>commissioner, a refund equal to the tax paid on the gross receipts of the exempt items <br />
         		<a id="pl.172.20"></a><var>172.20</var>must be paid to the applicant. Only the following persons may apply for the refund:<br />
         		<a id="pl.172.21"></a><var>172.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) for subdivision 1, clauses (1), (2), and (16) (14), the applicant must be the <br />
         		<a id="pl.172.22"></a><var>172.22</var>purchaser;<br />
         		<a id="pl.172.23"></a><var>172.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) for subdivision 1, clauses clause (3) and (6), the applicant must be the <br />
         		<a id="pl.172.24"></a><var>172.24</var>governmental subdivision;<br />
         		<a id="pl.172.25"></a><var>172.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) for subdivision 1, clause (4), the applicant must be the recipient of the benefits <br />
         		<a id="pl.172.26"></a><var>172.26</var>provided in United States Code, title 38, chapter 21;<br />
         		<a id="pl.172.27"></a><var>172.27</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) for subdivision 1, clause (5), the applicant must be the owner of the homestead <br />
         		<a id="pl.172.28"></a><var>172.28</var>property;<br />
         		<a id="pl.172.29"></a><var>172.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) for subdivision 1, clause (7) (6), the owner of the qualified low-income housing <br />
         		<a id="pl.172.30"></a><var>172.30</var>project;<br />
         		<a id="pl.172.31"></a><var>172.31</var>&nbsp;&nbsp;&nbsp;&nbsp;(6) for subdivision 1, clause (8) (7), the applicant must be a municipal electric utility <br />
         		<a id="pl.172.32"></a><var>172.32</var>or a joint venture of municipal electric utilities;<br />
         		<a id="pl.172.33"></a><var>172.33</var>&nbsp;&nbsp;&nbsp;&nbsp;(7) for subdivision 1, clauses (9), (12), (13), (14) (8), (11), (12), and (17) (15), <br />
         		<a id="pl.172.34"></a><var>172.34</var>the owner of the qualifying business; and<br />
         		<a id="pl.173.1"></a><var>173.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(8) for subdivision 1, clauses (9), (10), (11), and (15) (13), the applicant must be the <br />
         		<a id="pl.173.2"></a><var>173.2</var>governmental entity that owns or contracts for the project or facility.<br />
         		<a id="pl.173.3"></a><var>173.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.75.0"></a><a id="pl.173.4"></a><var>173.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 75. Minnesota Statutes 2013 Supplement, section 297A.75, subdivision 3, is <br />
         		<a id="pl.173.5"></a><var>173.5</var>amended to read:<br />
         		<a id="pl.173.6"></a><var>173.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Application.</b> (a) The application must include sufficient information <br />
         		<a id="pl.173.7"></a><var>173.7</var>to permit the commissioner to verify the tax paid. If the tax was paid by a contractor, <br />
         		<a id="pl.173.8"></a><var>173.8</var>subcontractor, or builder, under subdivision 1, clauses (3) to (15) (13), or (17) (15), the <br />
         		<a id="pl.173.9"></a><var>173.9</var>contractor, subcontractor, or builder must furnish to the refund applicant a statement <br />
         		<a id="pl.173.10"></a><var>173.10</var>including the cost of the exempt items and the taxes paid on the items unless otherwise <br />
         		<a id="pl.173.11"></a><var>173.11</var>specifically provided by this subdivision. The provisions of sections 
         <statute_ref>289A.40</statute_ref> and <br />
         		
         <statute_ref><a id="pl.173.12"></a><var>173.12</var>289A.50
         </statute_ref> apply to refunds under this section.<br />
         		<a id="pl.173.13"></a><var>173.13</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) An applicant may not file more than two applications per calendar year for <br />
         		<a id="pl.173.14"></a><var>173.14</var>refunds for taxes paid on capital equipment exempt under section 
         <statute_ref>297A.68, subdivision 5</statute_ref>.<br />
         		<a id="pl.173.15"></a><var>173.15</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) Total refunds for purchases of items in section 
         <statute_ref>297A.71, subdivision 40</statute_ref>, must not <br />
         		<a id="pl.173.16"></a><var>173.16</var>exceed $5,000,000 in fiscal years 2010 and 2011. Applications for refunds for purchases <br />
         		<a id="pl.173.17"></a><var>173.17</var>of items in sections 
         <statute_ref>297A.70, subdivision 3</statute_ref>, paragraph (a), clause (11), and 
         <statute_ref>297A.71</statute_ref>, <br />
         		<a id="pl.173.18"></a><var>173.18</var>subdivision 40, must not be filed until after June 30, 2009.<br />
         		<a id="pl.173.19"></a><var>173.19</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.76.0"></a><a id="pl.173.20"></a><var>173.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 76. Minnesota Statutes 2012, section 297A.94, is amended to read:<br />
         		<a id="pl.173.21"></a><var>173.21</var><b>297A.94 DEPOSIT OF REVENUES.</b><br />
         		<a id="pl.173.22"></a><var>173.22</var>(a) Except as provided in this section, the commissioner shall deposit the revenues, <br />
         		<a id="pl.173.23"></a><var>173.23</var>including interest and penalties, derived from the taxes imposed by this chapter in the state <br />
         		<a id="pl.173.24"></a><var>173.24</var>treasury and credit them to the general fund.<br />
         		<a id="pl.173.25"></a><var>173.25</var>(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic <br />
         		<a id="pl.173.26"></a><var>173.26</var>account in the special revenue fund if:<br />
         		<a id="pl.173.27"></a><var>173.27</var>(1) the taxes are derived from sales and use of property and services purchased for <br />
         		<a id="pl.173.28"></a><var>173.28</var>the construction and operation of an agricultural resource project; and<br />
         		<a id="pl.173.29"></a><var>173.29</var>(2) the purchase was made on or after the date on which a conditional commitment <br />
         		<a id="pl.173.30"></a><var>173.30</var>was made for a loan guaranty for the project under section 
         <statute_ref>41A.04, subdivision 3</statute_ref>.<br />
         		<a id="pl.173.31"></a><var>173.31</var>The commissioner of management and budget shall certify to the commissioner the date <br />
         		<a id="pl.173.32"></a><var>173.32</var>on which the project received the conditional commitment. The amount deposited in <br />
         		<a id="pl.173.33"></a><var>173.33</var>the loan guaranty account must be reduced by any refunds and by the costs incurred by <br />
         		<a id="pl.174.1"></a><var>174.1</var>the Department of Revenue to administer and enforce the assessment and collection of <br />
         		<a id="pl.174.2"></a><var>174.2</var>the taxes.<br />
         		<a id="pl.174.3"></a><var>174.3</var>(c) The commissioner shall deposit the revenues, including interest and penalties, <br />
         		<a id="pl.174.4"></a><var>174.4</var>derived from the taxes imposed on sales and purchases included in section 
         <statute_ref>297A.61, <br />
            		<a id="pl.174.5"></a><var>174.5</var>subdivision 3
         </statute_ref>, paragraph (g), clauses (1) and (4), in the state treasury, and credit them <br />
         		<a id="pl.174.6"></a><var>174.6</var>as follows:<br />
         		<a id="pl.174.7"></a><var>174.7</var>(1) first to the general obligation special tax bond debt service account in each fiscal <br />
         		<a id="pl.174.8"></a><var>174.8</var>year the amount required by section 
         <statute_ref>16A.661, subdivision 3</statute_ref>, paragraph (b); and<br />
         		<a id="pl.174.9"></a><var>174.9</var>(2) after the requirements of clause (1) have been met, the balance to the general fund.<br />
         		<a id="pl.174.10"></a><var>174.10</var>(d) The commissioner shall deposit the revenues, including interest and penalties, <br />
         		<a id="pl.174.11"></a><var>174.11</var>collected under section 
         <statute_ref>297A.64, subdivision 5</statute_ref>, in the state treasury and credit them to the <br />
         		<a id="pl.174.12"></a><var>174.12</var>general fund. By July 15 of each year the commissioner shall transfer to the highway user <br />
         		<a id="pl.174.13"></a><var>174.13</var>tax distribution fund an amount equal to the excess fees collected under section 
         <statute_ref>297A.64, <br />
            		<a id="pl.174.14"></a><var>174.14</var>subdivision 5
         </statute_ref>, for the previous calendar year.<br />
         		<a id="pl.174.15"></a><var>174.15</var>(e) For fiscal year 2001, 97 percent; for fiscal years 2002 and 2003, 87 percent; and <br />
         		<a id="pl.174.16"></a><var>174.16</var>For fiscal year 2004 and thereafter, 
         <statute_ref>72.43</statute_ref> percent of the revenues, including interest and <br />
         		<a id="pl.174.17"></a><var>174.17</var>penalties, transmitted to the commissioner under section 
         <statute_ref>297A.65</statute_ref>, must be deposited by <br />
         		<a id="pl.174.18"></a><var>174.18</var>the commissioner in the state treasury as follows:<br />
         		<a id="pl.174.19"></a><var>174.19</var>(1) 50 percent of the receipts must be deposited in the heritage enhancement account <br />
         		<a id="pl.174.20"></a><var>174.20</var>in the game and fish fund, and may be spent only on activities that improve, enhance, or <br />
         		<a id="pl.174.21"></a><var>174.21</var>protect fish and wildlife resources, including conservation, restoration, and enhancement <br />
         		<a id="pl.174.22"></a><var>174.22</var>of land, water, and other natural resources of the state;<br />
         		<a id="pl.174.23"></a><var>174.23</var>(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and <br />
         		<a id="pl.174.24"></a><var>174.24</var>may be spent only for state parks and trails;<br />
         		<a id="pl.174.25"></a><var>174.25</var>(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and <br />
         		<a id="pl.174.26"></a><var>174.26</var>may be spent only on metropolitan park and trail grants;<br />
         		<a id="pl.174.27"></a><var>174.27</var>(4) three percent of the receipts must be deposited in the natural resources fund, and <br />
         		<a id="pl.174.28"></a><var>174.28</var>may be spent only on local trail grants; and<br />
         		<a id="pl.174.29"></a><var>174.29</var>(5) two percent of the receipts must be deposited in the natural resources fund, <br />
         		<a id="pl.174.30"></a><var>174.30</var>and may be spent only for the Minnesota Zoological Garden, the Como Park Zoo and <br />
         		<a id="pl.174.31"></a><var>174.31</var>Conservatory, and the Duluth Zoo.<br />
         		<a id="pl.174.32"></a><var>174.32</var>(f) The revenue dedicated under paragraph (e) may not be used as a substitute <br />
         		<a id="pl.174.33"></a><var>174.33</var>for traditional sources of funding for the purposes specified, but the dedicated revenue <br />
         		<a id="pl.174.34"></a><var>174.34</var>shall supplement traditional sources of funding for those purposes. Land acquired with <br />
         		<a id="pl.174.35"></a><var>174.35</var>money deposited in the game and fish fund under paragraph (e) must be open to public <br />
         		<a id="pl.174.36"></a><var>174.36</var>hunting and fishing during the open season, except that in aquatic management areas or <br />
         		<a id="pl.175.1"></a><var>175.1</var>on lands where angling easements have been acquired, fishing may be prohibited during <br />
         		<a id="pl.175.2"></a><var>175.2</var>certain times of the year and hunting may be prohibited. At least 87 percent of the money <br />
         		<a id="pl.175.3"></a><var>175.3</var>deposited in the game and fish fund for improvement, enhancement, or protection of fish <br />
         		<a id="pl.175.4"></a><var>175.4</var>and wildlife resources under paragraph (e) must be allocated for field operations.<br />
         		<a id="pl.175.5"></a><var>175.5</var>(g) The revenues deposited under paragraphs (a) to (f) do not include the revenues, <br />
         		<a id="pl.175.6"></a><var>175.6</var>including interest and penalties, generated by the sales tax imposed under section <br />
         		
         <statute_ref><a id="pl.175.7"></a><var>175.7</var>297A.62, subdivision 1a
         </statute_ref>, which must be deposited as provided under the Minnesota <br />
         		<a id="pl.175.8"></a><var>175.8</var>Constitution, article XI, section 15.<br />
         		<a id="pl.175.9"></a><var>175.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.77.0"></a><a id="pl.175.10"></a><var>175.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 77. Minnesota Statutes 2012, section 297B.09, is amended to read:<br />
         		<a id="pl.175.11"></a><var>175.11</var><b>297B.09 ALLOCATION OF REVENUE.</b><br />
         		<a id="pl.175.12"></a><var>175.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Deposit of revenues.</b> (a) Money collected and received under this <br />
         		<a id="pl.175.13"></a><var>175.13</var>chapter must be deposited as provided in this subdivision.<br />
         		<a id="pl.175.14"></a><var>175.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) From July 1, 2007, through June 30, 2008, 38.25 percent of the money collected <br />
         		<a id="pl.175.15"></a><var>175.15</var>and received must be deposited in the highway user tax distribution fund, 24 percent must <br />
         		<a id="pl.175.16"></a><var>175.16</var>be deposited in the metropolitan area transit account under section 
         <statute_ref>16A.88</statute_ref>, and 1.5 percent <br />
         		<a id="pl.175.17"></a><var>175.17</var>must be deposited in the greater Minnesota transit account under section 
         <statute_ref>16A.88</statute_ref>. The <br />
         		<a id="pl.175.18"></a><var>175.18</var>remaining money must be deposited in the general fund.<br />
         		<a id="pl.175.19"></a><var>175.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) From July 1, 2008, through June 30, 2009, 44.25 percent of the money collected <br />
         		<a id="pl.175.20"></a><var>175.20</var>and received must be deposited in the highway user tax distribution fund, 27.75 percent <br />
         		<a id="pl.175.21"></a><var>175.21</var>must be deposited in the metropolitan area transit account under section 
         <statute_ref>16A.88</statute_ref>, 1.75 <br />
         		<a id="pl.175.22"></a><var>175.22</var>percent must be deposited in the greater Minnesota transit account under section 
         <statute_ref>16A.88</statute_ref>, <br />
         		<a id="pl.175.23"></a><var>175.23</var>and the remaining money must be deposited in the general fund.<br />
         		<a id="pl.175.24"></a><var>175.24</var>(d) From July 1, 2009, through June 30, 2010, 47.5 percent of the money collected <br />
         		<a id="pl.175.25"></a><var>175.25</var>and received must be deposited in the highway user tax distribution fund, 30 percent <br />
         		<a id="pl.175.26"></a><var>175.26</var>must be deposited in the metropolitan area transit account under section 
         <statute_ref>16A.88</statute_ref>, 3.5 <br />
         		<a id="pl.175.27"></a><var>175.27</var>percent must be deposited in the greater Minnesota transit account under section 
         <statute_ref>16A.88</statute_ref>, <br />
         		<a id="pl.175.28"></a><var>175.28</var>and 16.25 percent must be deposited in the general fund. The remaining amount must <br />
         		<a id="pl.175.29"></a><var>175.29</var>be deposited as follows:<br />
         		<a id="pl.175.30"></a><var>175.30</var>(1) 1.5 percent in the metropolitan area transit account, except that any amount in <br />
         		<a id="pl.175.31"></a><var>175.31</var>excess of $6,000,000 must be deposited in the highway user tax distribution fund; and<br />
         		<a id="pl.175.32"></a><var>175.32</var>(2) 1.25 percent in the greater Minnesota transit account, except that any amount in <br />
         		<a id="pl.175.33"></a><var>175.33</var>excess of $5,000,000 must be deposited in the highway user tax distribution fund.<br />
         		<a id="pl.176.1"></a><var>176.1</var>(e) From July 1, 2010, through June 30, 2011, 54.5 percent of the money collected <br />
         		<a id="pl.176.2"></a><var>176.2</var>and received must be deposited in the highway user tax distribution fund, 33.75 percent <br />
         		<a id="pl.176.3"></a><var>176.3</var>must be deposited in the metropolitan area transit account under section 
         <statute_ref>16A.88</statute_ref>, 
         <statute_ref>3.75 <br />
            		<a id="pl.176.4"></a><var>176.4</var></statute_ref>percent must be deposited in the greater Minnesota transit account under section 
         <statute_ref>16A.88</statute_ref>, <br />
         		<a id="pl.176.5"></a><var>176.5</var>and 6.25 percent must be deposited in the general fund. The remaining amount must <br />
         		<a id="pl.176.6"></a><var>176.6</var>be deposited as follows:<br />
         		<a id="pl.176.7"></a><var>176.7</var>(1) 1.5 percent in the metropolitan area transit account, except that any amount in <br />
         		<a id="pl.176.8"></a><var>176.8</var>excess of $6,750,000 must be deposited in the highway user tax distribution fund; and<br />
         		<a id="pl.176.9"></a><var>176.9</var>(2) 0.25 percent in the greater Minnesota transit account, except that any amount in <br />
         		<a id="pl.176.10"></a><var>176.10</var>excess of $1,250,000 must be deposited in the highway user tax distribution fund.<br />
         		<a id="pl.176.11"></a><var>176.11</var>&nbsp;&nbsp;&nbsp;&nbsp;(f) On and after July 1, 2011, (b) 60 percent of the money collected and received <br />
         		<a id="pl.176.12"></a><var>176.12</var>must be deposited in the highway user tax distribution fund, 36 percent must be deposited <br />
         		<a id="pl.176.13"></a><var>176.13</var>in the metropolitan area transit account under section 
         <statute_ref>16A.88</statute_ref>, and four percent must be <br />
         		<a id="pl.176.14"></a><var>176.14</var>deposited in the greater Minnesota transit account under section 
         <statute_ref>16A.88</statute_ref>.<br />
         		<a id="pl.176.15"></a><var>176.15</var>(g) (c) It is the intent of the legislature that the allocations under paragraph (f) (b)<br />
         		<a id="pl.176.16"></a><var>176.16</var> remain unchanged for fiscal year 2012 and all subsequent fiscal years.<br />
         		<a id="pl.176.17"></a><var>176.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.78.0"></a><a id="pl.176.18"></a><var>176.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 78. Minnesota Statutes 2012, section 297F.03, subdivision 2, is amended to read:<br />
         		<a id="pl.176.19"></a><var>176.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Form of application.</b> Every application for a cigarette or tobacco products <br />
         		<a id="pl.176.20"></a><var>176.20</var>license shall be made on a form prescribed by the commissioner and shall state the name <br />
         		<a id="pl.176.21"></a><var>176.21</var>and address of the applicant; if the applicant is a firm, partnership, or association, the name <br />
         		<a id="pl.176.22"></a><var>176.22</var>and address of each of its members; if the applicant is a corporation, the name and address <br />
         		<a id="pl.176.23"></a><var>176.23</var>of each of its officers; the address of its principal place of business; the place where the <br />
         		<a id="pl.176.24"></a><var>176.24</var>business to be licensed is to be conducted; and any other information the commissioner <br />
         		<a id="pl.176.25"></a><var>176.25</var>may require for the administration of this chapter.<br />
         		<a id="pl.176.26"></a><var>176.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.79.0"></a><a id="pl.176.27"></a><var>176.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 79. Minnesota Statutes 2012, section 297H.06, subdivision 2, is amended to read:<br />
         		<a id="pl.176.28"></a><var>176.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Materials.</b> The tax is not imposed upon charges to generators of mixed <br />
         		<a id="pl.176.29"></a><var>176.29</var>municipal solid waste or upon the volume of nonmixed municipal solid waste for waste <br />
         		<a id="pl.176.30"></a><var>176.30</var>management services to manage the following materials:<br />
         		<a id="pl.176.31"></a><var>176.31</var>(1) mixed municipal solid waste and nonmixed municipal solid waste generated <br />
         		<a id="pl.176.32"></a><var>176.32</var>outside of Minnesota;<br />
         		<a id="pl.177.1"></a><var>177.1</var>(2) recyclable materials that are separated for recycling by the generator, collected <br />
         		<a id="pl.177.2"></a><var>177.2</var>separately from other waste, and recycled, to the extent the price of the service for <br />
         		<a id="pl.177.3"></a><var>177.3</var>handling recyclable material is separately itemized;<br />
         		<a id="pl.177.4"></a><var>177.4</var>(3) recyclable nonmixed municipal solid waste that is separated for recycling by <br />
         		<a id="pl.177.5"></a><var>177.5</var>the generator, collected separately from other waste, delivered to a waste facility for the <br />
         		<a id="pl.177.6"></a><var>177.6</var>purpose of recycling, and recycled;<br />
         		<a id="pl.177.7"></a><var>177.7</var>(4) industrial waste, when it is transported to a facility owned and operated by <br />
         		<a id="pl.177.8"></a><var>177.8</var>the same person that generated it;<br />
         		<a id="pl.177.9"></a><var>177.9</var>(5) mixed municipal solid waste from a recycling facility that separates or processes <br />
         		<a id="pl.177.10"></a><var>177.10</var>recyclable materials and reduces the volume of the waste by at least 85 percent, provided <br />
         		<a id="pl.177.11"></a><var>177.11</var>that the exempted waste is managed separately from other waste;<br />
         		<a id="pl.177.12"></a><var>177.12</var>(6) recyclable materials that are separated from mixed municipal solid waste by the <br />
         		<a id="pl.177.13"></a><var>177.13</var>generator, collected and delivered to a waste facility that recycles at least 85 percent of its <br />
         		<a id="pl.177.14"></a><var>177.14</var>waste, and are collected with mixed municipal solid waste that is segregated in leakproof <br />
         		<a id="pl.177.15"></a><var>177.15</var>bags, provided that the mixed municipal solid waste does not exceed five percent of the <br />
         		<a id="pl.177.16"></a><var>177.16</var>total weight of the materials delivered to the facility and is ultimately delivered to a waste <br />
         		<a id="pl.177.17"></a><var>177.17</var>facility identified as a preferred waste management facility in county solid waste plans <br />
         		<a id="pl.177.18"></a><var>177.18</var>under section 
         <statute_ref>115A.46</statute_ref>;<br />
         		<a id="pl.177.19"></a><var>177.19</var>(7) source-separated compostable waste, if the waste is delivered to a facility <br />
         		<a id="pl.177.20"></a><var>177.20</var>exempted as described in this clause. To initially qualify for an exemption, a facility must <br />
         		<a id="pl.177.21"></a><var>177.21</var>apply for an exemption in its application for a new or amended solid waste permit to the <br />
         		<a id="pl.177.22"></a><var>177.22</var>Pollution Control Agency. The first time a facility applies to the agency it must certify in <br />
         		<a id="pl.177.23"></a><var>177.23</var>its application that it will comply with the criteria in items (i) to (v) and the commissioner <br />
         		<a id="pl.177.24"></a><var>177.24</var>of the agency shall so certify to the commissioner of revenue who must grant the <br />
         		<a id="pl.177.25"></a><var>177.25</var>exemption. For each subsequent calendar year, by October 1 of the preceding year, The <br />
         		<a id="pl.177.26"></a><var>177.26</var>facility must annually apply to the agency for certification to renew its exemption for the <br />
         		<a id="pl.177.27"></a><var>177.27</var>following year. The application must be filed according to the procedures of, and contain <br />
         		<a id="pl.177.28"></a><var>177.28</var>the information required by, the agency. The commissioner of revenue shall grant the <br />
         		<a id="pl.177.29"></a><var>177.29</var>exemption if the commissioner of the Pollution Control Agency finds and certifies to the <br />
         		<a id="pl.177.30"></a><var>177.30</var>commissioner of revenue that based on an evaluation of the composition of incoming <br />
         		<a id="pl.177.31"></a><var>177.31</var>waste and residuals and the quality and use of the product:<br />
         		<a id="pl.177.32"></a><var>177.32</var>(i) generators separate materials at the source;<br />
         		<a id="pl.177.33"></a><var>177.33</var>(ii) the separation is performed in a manner appropriate to the technology specific <br />
         		<a id="pl.177.34"></a><var>177.34</var>to the facility that:<br />
         		<a id="pl.177.35"></a><var>177.35</var>(A) maximizes the quality of the product;<br />
         		<a id="pl.177.36"></a><var>177.36</var>(B) minimizes the toxicity and quantity of residuals; and<br />
         		<a id="pl.178.1"></a><var>178.1</var>(C) provides an opportunity for significant improvement in the environmental <br />
         		<a id="pl.178.2"></a><var>178.2</var>efficiency of the operation;<br />
         		<a id="pl.178.3"></a><var>178.3</var>(iii) the operator of the facility educates generators, in coordination with each county <br />
         		<a id="pl.178.4"></a><var>178.4</var>using the facility, about separating the waste to maximize the quality of the waste stream <br />
         		<a id="pl.178.5"></a><var>178.5</var>for technology specific to the facility;<br />
         		<a id="pl.178.6"></a><var>178.6</var>(iv) process residuals do not exceed 15 percent of the weight of the total material <br />
         		<a id="pl.178.7"></a><var>178.7</var>delivered to the facility; and<br />
         		<a id="pl.178.8"></a><var>178.8</var>(v) the final product is accepted for use;<br />
         		<a id="pl.178.9"></a><var>178.9</var>(8) waste and waste by-products for which the tax has been paid; and<br />
         		<a id="pl.178.10"></a><var>178.10</var>(9) daily cover for landfills that has been approved in writing by the Minnesota <br />
         		<a id="pl.178.11"></a><var>178.11</var>Pollution Control Agency.<br />
         		<br />
         		<a id="bill.9.80.0"></a><a id="pl.178.12"></a><var>178.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 80. Minnesota Statutes 2012, section 297I.05, subdivision 14, is amended to read:<br />
         		<a id="pl.178.13"></a><var>178.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 14. <b>Life insurance.</b> A tax is imposed on life insurance. The rate of tax equals <br />
         		<a id="pl.178.14"></a><var>178.14</var>a percentage 1.5 percent of gross premiums less return premiums on all direct business <br />
         		<a id="pl.178.15"></a><var>178.15</var>received by the insurer or agents of the insurer in Minnesota for life insurance, in cash or <br />
         		<a id="pl.178.16"></a><var>178.16</var>otherwise, during the year. For premiums received after December 31, 2005, but before <br />
         		<a id="pl.178.17"></a><var>178.17</var>January 1, 2007, the rate of tax is 1.875 percent. For premiums received after December <br />
         		<a id="pl.178.18"></a><var>178.18</var>31, 2006, but before January 1, 2008, the rate of tax is 1.75 percent. For premiums <br />
         		<a id="pl.178.19"></a><var>178.19</var>received after December 31, 2007, but before January 1, 2009, the rate of tax is 1.625 <br />
         		<a id="pl.178.20"></a><var>178.20</var>percent. For premiums received after December 31, 2008, the rate of tax is 1.5 percent.<br />
         		<a id="pl.178.21"></a><var>178.21</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.81.0"></a><a id="pl.178.22"></a><var>178.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 81. Minnesota Statutes 2012, section 298.75, subdivision 1, is amended to read:<br />
         		<a id="pl.178.23"></a><var>178.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Definitions.</b> Except as may otherwise be provided, the following <br />
         		<a id="pl.178.24"></a><var>178.24</var>words, when used in this section, shall have the meanings herein ascribed to them.<br />
         		<a id="pl.178.25"></a><var>178.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(a) "Aggregate material" means:<br />
         		<a id="pl.178.26"></a><var>178.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) nonmetallic natural mineral aggregate including, but not limited to sand, silica <br />
         		<a id="pl.178.27"></a><var>178.27</var>sand, gravel, crushed rock, limestone, granite, and borrow, but only if the borrow is <br />
         		<a id="pl.178.28"></a><var>178.28</var>transported on a public road, street, or highway, provided that nonmetallic aggregate <br />
         		<a id="pl.178.29"></a><var>178.29</var>material does not include dimension stone and dimension granite; and<br />
         		<a id="pl.178.30"></a><var>178.30</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) taconite tailings, crushed rock, and architectural or dimension stone and dimension <br />
         		<a id="pl.178.31"></a><var>178.31</var>granite removed from a taconite mine or the site of a previously operated taconite mine.<br />
         		<a id="pl.178.32"></a><var>178.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Aggregate material must be measured or weighed after it has been extracted from <br />
         		<a id="pl.178.33"></a><var>178.33</var>the pit, quarry, or deposit.<br />
         		<a id="pl.179.1"></a><var>179.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) "Person" means any individual, firm, partnership, corporation, organization, <br />
         		<a id="pl.179.2"></a><var>179.2</var>trustee, association, or other entity.<br />
         		<a id="pl.179.3"></a><var>179.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) "Operator" means any person engaged in the business of removing aggregate <br />
         		<a id="pl.179.4"></a><var>179.4</var>material from the surface or subsurface of the soil, for the purpose of sale, either directly <br />
         		<a id="pl.179.5"></a><var>179.5</var>or indirectly, through the use of the aggregate material in a marketable product or service.<br />
         		<a id="pl.179.6"></a><var>179.6</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) "Extraction site" means a pit, quarry, or deposit containing aggregate material <br />
         		<a id="pl.179.7"></a><var>179.7</var>and any contiguous property to the pit, quarry, or deposit which is used by the operator for <br />
         		<a id="pl.179.8"></a><var>179.8</var>stockpiling the aggregate material.<br />
         		<a id="pl.179.9"></a><var>179.9</var>&nbsp;&nbsp;&nbsp;&nbsp;(e) "Importer" means any person who buys aggregate material excavated from a <br />
         		<a id="pl.179.10"></a><var>179.10</var>county not listed in paragraph (f) or another state site on which the tax under this section is <br />
         		<a id="pl.179.11"></a><var>179.11</var>not imposed and causes the aggregate material to be imported into a county in this state <br />
         		<a id="pl.179.12"></a><var>179.12</var>which imposes a tax on aggregate material.<br />
         		<a id="pl.179.13"></a><var>179.13</var>&nbsp;&nbsp;&nbsp;&nbsp;(f) "County" means the counties of Pope, Stearns, Benton, Sherburne, Carver, Scott, <br />
         		<a id="pl.179.14"></a><var>179.14</var>Dakota, Le Sueur, Kittson, Marshall, Pennington, Red Lake, Polk, Norman, Mahnomen, <br />
         		<a id="pl.179.15"></a><var>179.15</var>Clay, Becker, Carlton, St. Louis, Rock, Murray, Wilkin, Big Stone, Sibley, Hennepin, <br />
         		<a id="pl.179.16"></a><var>179.16</var>Washington, Chisago, and Ramsey. County also means a county imposing the tax under <br />
         		<a id="pl.179.17"></a><var>179.17</var>this section on December 31, 2014, or any other county whose board has voted after a <br />
         		<a id="pl.179.18"></a><var>179.18</var>public hearing to impose the tax under this section and has notified the commissioner of <br />
         		<a id="pl.179.19"></a><var>179.19</var>revenue of the imposition of the tax.<br />
         		<a id="pl.179.20"></a><var>179.20</var>&nbsp;&nbsp;&nbsp;&nbsp;(g) "Borrow" means granular borrow, consisting of durable particles of gravel and <br />
         		<a id="pl.179.21"></a><var>179.21</var>sand, crushed quarry or mine rock, crushed gravel or stone, or any combination thereof, <br />
         		<a id="pl.179.22"></a><var>179.22</var>the ratio of the portion passing the (#200) sieve divided by the portion passing the (1 inch) <br />
         		<a id="pl.179.23"></a><var>179.23</var>sieve may not exceed 20 percent by mass.<br />
         		<a id="pl.179.24"></a><var>179.24</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2015.<br />
         		<br />
         		<a id="bill.9.82.0"></a><a id="pl.179.25"></a><var>179.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 82. Minnesota Statutes 2012, section 412.131, is amended to read:<br />
         		<a id="pl.179.26"></a><var>179.26</var><b>412.131 ASSESSOR; DUTIES, COMPENSATION.</b><br />
         		<a id="pl.179.27"></a><var>179.27</var>The city assessor, if there is one, shall assess and return as provided by law all <br />
         		<a id="pl.179.28"></a><var>179.28</var>property taxable within the city, if a separate assessment district, and the assessor of the <br />
         		<a id="pl.179.29"></a><var>179.29</var>town within which the city lies shall not include in the return any property taxable in the <br />
         		<a id="pl.179.30"></a><var>179.30</var>city. Any assessor may appoint a deputy assessor as provided in section 
         <statute_ref>273.06</statute_ref>. The <br />
         		<a id="pl.179.31"></a><var>179.31</var>assessor may be compensated on a full-time or part-time basis at the option of the council <br />
         		<a id="pl.179.32"></a><var>179.32</var>but the compensation shall be not less than $100 in any one year, if fixed on an annual <br />
         		<a id="pl.179.33"></a><var>179.33</var>basis, or not more than $20 per day, if fixed on a per diem basis. If the compensation is <br />
         		<a id="pl.179.34"></a><var>179.34</var>not fixed by the council the assessor shall be entitled to compensation at the rate of $20 <br />
         		<a id="pl.180.1"></a><var>180.1</var>per day for each days service necessarily rendered, and mileage at the rate paid other city <br />
         		<a id="pl.180.2"></a><var>180.2</var>officers for each mile necessarily traveled in going to and returning from the county seat of <br />
         		<a id="pl.180.3"></a><var>180.3</var>the county to attend any meeting of the assessors of the county legally called by the county <br />
         		<a id="pl.180.4"></a><var>180.4</var>auditor, and also for each mile necessarily traveled in making the return of assessment <br />
         		<a id="pl.180.5"></a><var>180.5</var>to the proper county officer and in attending sectional meetings called by the county <br />
         		<a id="pl.180.6"></a><var>180.6</var>assessor, except when mileage is paid by the county. In addition to other compensation, <br />
         		<a id="pl.180.7"></a><var>180.7</var>the council may allow the assessor mileage at the same rate per mile as paid other city <br />
         		<a id="pl.180.8"></a><var>180.8</var>officers for each mile necessarily traveled in assessment work.<br />
         		<a id="pl.180.9"></a><var>180.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.83.0"></a><a id="pl.180.10"></a><var>180.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 83. Minnesota Statutes 2013 Supplement, section 423A.022, subdivision 3, <br />
         		<a id="pl.180.11"></a><var>180.11</var>is amended to read:<br />
         		<a id="pl.180.12"></a><var>180.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Reporting; definitions.</b> (a) On or before September 1, annually, the <br />
         		<a id="pl.180.13"></a><var>180.13</var>executive director of the Public Employees Retirement Association shall report to the <br />
         		<a id="pl.180.14"></a><var>180.14</var>commissioner of revenue the following:<br />
         		<a id="pl.180.15"></a><var>180.15</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) the municipalities which employ firefighters with retirement coverage by the <br />
         		<a id="pl.180.16"></a><var>180.16</var>public employees police and fire retirement plan;<br />
         		<a id="pl.180.17"></a><var>180.17</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) the number of firefighters with public employees police and fire retirement plan <br />
         		<a id="pl.180.18"></a><var>180.18</var>coverage employed by each municipality;<br />
         		<a id="pl.180.19"></a><var>180.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) (2) the fire departments covered by the voluntary statewide lump-sum volunteer <br />
         		<a id="pl.180.20"></a><var>180.20</var>firefighter retirement plan; and<br />
         		<a id="pl.180.21"></a><var>180.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) (3) any other information requested by the commissioner to administer the police <br />
         		<a id="pl.180.22"></a><var>180.22</var>and firefighter retirement supplemental state aid program.<br />
         		<a id="pl.180.23"></a><var>180.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) For this subdivision, (i) the number of firefighters employed by a municipality <br />
         		<a id="pl.180.24"></a><var>180.24</var>who have public employees police and fire retirement plan coverage means the number <br />
         		<a id="pl.180.25"></a><var>180.25</var>of firefighters with public employees police and fire retirement plan coverage that were <br />
         		<a id="pl.180.26"></a><var>180.26</var>employed by the municipality for not less than 30 hours per week for a minimum of six <br />
         		<a id="pl.180.27"></a><var>180.27</var>months prior to December 31 preceding the date of the payment under this section and, if <br />
         		<a id="pl.180.28"></a><var>180.28</var>the person was employed for less than the full year, prorated to the number of full months <br />
         		<a id="pl.180.29"></a><var>180.29</var>employed; and (ii) the number of active police officers certified for police state aid receipt <br />
         		<a id="pl.180.30"></a><var>180.30</var>under section 
         <statute_ref>69.011, subdivisions 2</statute_ref> and 2b, means, for each municipality, the number of <br />
         		<a id="pl.180.31"></a><var>180.31</var>police officers meeting the definition of peace officer in section 
         <statute_ref>69.011, subdivision 1</statute_ref>, <br />
         		<a id="pl.180.32"></a><var>180.32</var>counted as provided and limited by section 
         <statute_ref>69.011, subdivisions 2</statute_ref> and 2b.<br />
         		<a id="pl.180.33"></a><var>180.33</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.84.0"></a><a id="pl.181.1"></a><var>181.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 84. Minnesota Statutes 2013 Supplement, section 465.04, is amended to read:<br />
         		<a id="pl.181.2"></a><var>181.2</var><b>465.04 ACCEPTANCE OF GIFTS.</b><br />
         		<a id="pl.181.3"></a><var>181.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Cities A city of the second, third, or fourth class, having at any time an estimated <br />
         		<a id="pl.181.4"></a><var>181.4</var>market value of not more than $41,000,000, as officially equalized by the commissioner <br />
         		<a id="pl.181.5"></a><var>181.5</var>of revenue, either operating under a home rule charter or under the laws of this state, in <br />
         		<a id="pl.181.6"></a><var>181.6</var>addition to all other powers possessed by them, hereby are authorized and empowered to<br />
         		<a id="pl.181.7"></a><var>181.7</var> may receive and accept gifts and donations for the use and benefit of such cities and the <br />
         		<a id="pl.181.8"></a><var>181.8</var>city and its inhabitants thereof upon terms and conditions to be approved by the governing <br />
         		<a id="pl.181.9"></a><var>181.9</var>bodies body of such cities; and such cities are authorized to comply with and perform such<br />
         		<a id="pl.181.10"></a><var>181.10</var> the city. The terms and conditions, which may include payment to the donor or donors of <br />
         		<a id="pl.181.11"></a><var>181.11</var>interest on the value of the gift at not exceeding five percent per annum payable annually or <br />
         		<a id="pl.181.12"></a><var>181.12</var>semiannually, during the remainder of the natural life or lives of such the donor or donors.<br />
         		<br />
         		<a id="bill.9.85.0"></a><a id="pl.181.13"></a><var>181.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 85. Minnesota Statutes 2012, section 469.176, subdivision 1b, is amended to read:<br />
         		<a id="pl.181.14"></a><var>181.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 1b. <b>Duration limits; terms.</b> (a) No tax increment shall in any event be <br />
         		<a id="pl.181.15"></a><var>181.15</var>paid to the authority:<br />
         		<a id="pl.181.16"></a><var>181.16</var>(1) after 15 years after receipt by the authority of the first increment for a renewal <br />
         		<a id="pl.181.17"></a><var>181.17</var>and renovation district;<br />
         		<a id="pl.181.18"></a><var>181.18</var>(2) after 20 years after receipt by the authority of the first increment for a soils <br />
         		<a id="pl.181.19"></a><var>181.19</var>condition district;<br />
         		<a id="pl.181.20"></a><var>181.20</var>(3) after eight years after receipt by the authority of the first increment for an <br />
         		<a id="pl.181.21"></a><var>181.21</var>economic development district;<br />
         		<a id="pl.181.22"></a><var>181.22</var>(4) for a housing district, a compact development district, or a redevelopment <br />
         		<a id="pl.181.23"></a><var>181.23</var>district, after 25 years from the date of receipt by the authority of the first increment.<br />
         		<a id="pl.181.24"></a><var>181.24</var>(b) For purposes of determining a duration limit under this subdivision or subdivision <br />
         		<a id="pl.181.25"></a><var>181.25</var>1e that is based on the receipt of an increment, any increments from taxes payable in the year <br />
         		<a id="pl.181.26"></a><var>181.26</var>in which the district terminates shall be paid to the authority. This paragraph does not affect <br />
         		<a id="pl.181.27"></a><var>181.27</var>a duration limit calculated from the date of approval of the tax increment financing plan or <br />
         		<a id="pl.181.28"></a><var>181.28</var>based on the recovery of costs or to a duration limit under subdivision 1c. This paragraph <br />
         		<a id="pl.181.29"></a><var>181.29</var>does not supersede the restrictions on payment of delinquent taxes in subdivision 1f.<br />
         		<a id="pl.181.30"></a><var>181.30</var>(c) An action by the authority to waive or decline to accept an increment has no <br />
         		<a id="pl.181.31"></a><var>181.31</var>effect for purposes of computing a duration limit based on the receipt of increment under <br />
         		<a id="pl.181.32"></a><var>181.32</var>this subdivision or any other provision of law. The authority is deemed to have received an <br />
         		<a id="pl.181.33"></a><var>181.33</var>increment for any year in which it waived or declined to accept an increment, regardless <br />
         		<a id="pl.181.34"></a><var>181.34</var>of whether the increment was paid to the authority.<br />
         		<a id="pl.182.1"></a><var>182.1</var>(d) Receipt by a hazardous substance subdistrict of an increment as a result of a <br />
         		<a id="pl.182.2"></a><var>182.2</var>reduction in original net tax capacity under section 
         <statute_ref>469.174, subdivision 7</statute_ref>, paragraph <br />
         		<a id="pl.182.3"></a><var>182.3</var>(b), does not constitute receipt of increment by the overlying district for the purpose of <br />
         		<a id="pl.182.4"></a><var>182.4</var>calculating the duration limit under this section.<br />
         		<a id="pl.182.5"></a><var>182.5</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.86.0"></a><a id="pl.182.6"></a><var>182.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 86. Minnesota Statutes 2012, section 469.176, subdivision 3, is amended to read:<br />
         		<a id="pl.182.7"></a><var>182.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Limitation on administrative expenses.</b> (a) For districts for which <br />
         		<a id="pl.182.8"></a><var>182.8</var>certification was requested before August 1, 1979, or after June 30, 1982 and before<br />
         		<a id="pl.182.9"></a><var>182.9</var> August 1, 2001, no tax increment shall be used to pay any administrative expenses for <br />
         		<a id="pl.182.10"></a><var>182.10</var>a project which exceed ten percent of the total estimated tax increment expenditures <br />
         		<a id="pl.182.11"></a><var>182.11</var>authorized by the tax increment financing plan or the total tax increment expenditures <br />
         		<a id="pl.182.12"></a><var>182.12</var>for the project, whichever is less.<br />
         		<a id="pl.182.13"></a><var>182.13</var>(b) For districts for which certification was requested after July 31, 1979, and before <br />
         		<a id="pl.182.14"></a><var>182.14</var>July 1, 1982, no tax increment shall be used to pay administrative expenses, as defined in <br />
         		<a id="pl.182.15"></a><var>182.15</var>Minnesota Statutes 1980, section 
         <statute_ref>273.73</statute_ref>, for a district which exceeds five percent of the <br />
         		<a id="pl.182.16"></a><var>182.16</var>total tax increment expenditures authorized by the tax increment financing plan or the total <br />
         		<a id="pl.182.17"></a><var>182.17</var>estimated tax increment expenditures for the district, whichever is less.<br />
         		<a id="pl.182.18"></a><var>182.18</var>(c) (b) For districts for which certification was requested after July 31, 2001, no tax <br />
         		<a id="pl.182.19"></a><var>182.19</var>increment may be used to pay any administrative expenses for a project which exceed <br />
         		<a id="pl.182.20"></a><var>182.20</var>ten percent of total estimated tax increment expenditures authorized by the tax increment <br />
         		<a id="pl.182.21"></a><var>182.21</var>financing plan or the total tax increments, as defined in section 
         <statute_ref>469.174, subdivision 25</statute_ref>, <br />
         		<a id="pl.182.22"></a><var>182.22</var>clause (1), from the district, whichever is less.<br />
         		<a id="pl.182.23"></a><var>182.23</var>(d) (c) Increments used to pay the county's administrative expenses under <br />
         		<a id="pl.182.24"></a><var>182.24</var>subdivision 4h are not subject to the percentage limits in this subdivision.<br />
         		<a id="pl.182.25"></a><var>182.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.87.0"></a><a id="pl.182.26"></a><var>182.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 87. Minnesota Statutes 2013 Supplement, section 469.1763, subdivision 2, <br />
         		<a id="pl.182.27"></a><var>182.27</var>is amended to read:<br />
         		<a id="pl.182.28"></a><var>182.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Expenditures outside district.</b> (a) For each tax increment financing <br />
         		<a id="pl.182.29"></a><var>182.29</var>district, an amount equal to at least 75 percent of the total revenue derived from tax <br />
         		<a id="pl.182.30"></a><var>182.30</var>increments paid by properties in the district must be expended on activities in the district <br />
         		<a id="pl.182.31"></a><var>182.31</var>or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities <br />
         		<a id="pl.182.32"></a><var>182.32</var>in the district or to pay, or secure payment of, debt service on credit enhanced bonds. <br />
         		<a id="pl.182.33"></a><var>182.33</var>For districts, other than redevelopment districts for which the request for certification <br />
         		<a id="pl.183.1"></a><var>183.1</var>was made after June 30, 1995, the in-district percentage for purposes of the preceding <br />
         		<a id="pl.183.2"></a><var>183.2</var>sentence is 80 percent. Not more than 25 percent of the total revenue derived from tax <br />
         		<a id="pl.183.3"></a><var>183.3</var>increments paid by properties in the district may be expended, through a development fund <br />
         		<a id="pl.183.4"></a><var>183.4</var>or otherwise, on activities outside of the district but within the defined geographic area of <br />
         		<a id="pl.183.5"></a><var>183.5</var>the project except to pay, or secure payment of, debt service on credit enhanced bonds. <br />
         		<a id="pl.183.6"></a><var>183.6</var>For districts, other than redevelopment districts for which the request for certification was <br />
         		<a id="pl.183.7"></a><var>183.7</var>made after June 30, 1995, the pooling percentage for purposes of the preceding sentence is <br />
         		<a id="pl.183.8"></a><var>183.8</var>20 percent. The revenue derived from tax increments for the district that are expended on <br />
         		<a id="pl.183.9"></a><var>183.9</var>costs under section 
         <statute_ref>469.176, subdivision 4h</statute_ref>, paragraph (b), may be deducted first before <br />
         		<a id="pl.183.10"></a><var>183.10</var>calculating the percentages that must be expended within and without the district.<br />
         		<a id="pl.183.11"></a><var>183.11</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) In the case of a housing district, a housing project, as defined in section 
         <statute_ref>469.174, <br />
            		<a id="pl.183.12"></a><var>183.12</var>subdivision 11
         </statute_ref>, is an activity in the district.<br />
         		<a id="pl.183.13"></a><var>183.13</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) All administrative expenses are for activities outside of the district, except that <br />
         		<a id="pl.183.14"></a><var>183.14</var>if the only expenses for activities outside of the district under this subdivision are for <br />
         		<a id="pl.183.15"></a><var>183.15</var>the purposes described in paragraph (d), administrative expenses will be considered as <br />
         		<a id="pl.183.16"></a><var>183.16</var>expenditures for activities in the district.<br />
         		<a id="pl.183.17"></a><var>183.17</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) The authority may elect, in the tax increment financing plan for the district, <br />
         		<a id="pl.183.18"></a><var>183.18</var>to increase by up to ten percentage points the permitted amount of expenditures for <br />
         		<a id="pl.183.19"></a><var>183.19</var>activities located outside the geographic area of the district under paragraph (a). As <br />
         		<a id="pl.183.20"></a><var>183.20</var>permitted by section 
         <statute_ref>469.176, subdivision 4k</statute_ref>, the expenditures, including the permitted <br />
         		<a id="pl.183.21"></a><var>183.21</var>expenditures under paragraph (a), need not be made within the geographic area of the <br />
         		<a id="pl.183.22"></a><var>183.22</var>project. Expenditures that meet the requirements of this paragraph are legally permitted <br />
         		<a id="pl.183.23"></a><var>183.23</var>expenditures of the district, notwithstanding section 
         <statute_ref>469.176, subdivisions 4b, 4c, and 4j</statute_ref>. <br />
         		<a id="pl.183.24"></a><var>183.24</var>To qualify for the increase under this paragraph, the expenditures must:<br />
         		<a id="pl.183.25"></a><var>183.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) be used exclusively to assist housing that meets the requirement for a qualified <br />
         		<a id="pl.183.26"></a><var>183.26</var>low-income building, as that term is used in section 42 of the Internal Revenue Code; and<br />
         		<a id="pl.183.27"></a><var>183.27</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) not exceed the qualified basis of the housing, as defined under section 42(c) of <br />
         		<a id="pl.183.28"></a><var>183.28</var>the Internal Revenue Code, less the amount of any credit allowed under section 42 of <br />
         		<a id="pl.183.29"></a><var>183.29</var>the Internal Revenue Code; and<br />
         		<a id="pl.183.30"></a><var>183.30</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) be used to:<br />
         		<a id="pl.183.31"></a><var>183.31</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) acquire and prepare the site of the housing;<br />
         		<a id="pl.183.32"></a><var>183.32</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) acquire, construct, or rehabilitate the housing; or<br />
         		<a id="pl.183.33"></a><var>183.33</var>&nbsp;&nbsp;&nbsp;&nbsp;(iii) make public improvements directly related to the housing; or<br />
         		<a id="pl.183.34"></a><var>183.34</var>(4) be used to develop housing:<br />
         		<a id="pl.183.35"></a><var>183.35</var>(i) if the market value of the housing does not exceed the lesser of:<br />
         		<a id="pl.184.1"></a><var>184.1</var>(A) 150 percent of the average market value of single-family homes in that <br />
         		<a id="pl.184.2"></a><var>184.2</var>municipality; or<br />
         		<a id="pl.184.3"></a><var>184.3</var>(B) $200,000 for municipalities located in the metropolitan area, as defined in <br />
         		<a id="pl.184.4"></a><var>184.4</var>section 
         <statute_ref>473.121</statute_ref>, or $125,000 for all other municipalities; and<br />
         		<a id="pl.184.5"></a><var>184.5</var>(ii) if the expenditures are used to pay the cost of site acquisition, relocation, <br />
         		<a id="pl.184.6"></a><var>184.6</var>demolition of existing structures, site preparation, and pollution abatement on one or <br />
         		<a id="pl.184.7"></a><var>184.7</var>more parcels, if the parcel contains a residence containing one to four family dwelling <br />
         		<a id="pl.184.8"></a><var>184.8</var>units that has been vacant for six or more months and is in foreclosure as defined in <br />
         		<a id="pl.184.9"></a><var>184.9</var>section 
         <statute_ref>325N.10, subdivision 7</statute_ref>, but without regard to whether the residence is the owner's <br />
         		<a id="pl.184.10"></a><var>184.10</var>principal residence, and only after the redemption period has expired.<br />
         		<a id="pl.184.11"></a><var>184.11</var>&nbsp;&nbsp;&nbsp;&nbsp;(e) For a district created within a biotechnology and health sciences industry zone <br />
         		<a id="pl.184.12"></a><var>184.12</var>as defined in section 
         <statute_ref>469.330, subdivision 6</statute_ref>, or for an existing district located within <br />
         		<a id="pl.184.13"></a><var>184.13</var>such a zone, tax increment derived from such a district may be expended outside of the <br />
         		<a id="pl.184.14"></a><var>184.14</var>district but within the zone only for expenditures required for the construction of public <br />
         		<a id="pl.184.15"></a><var>184.15</var>infrastructure necessary to support the activities of the zone, land acquisition, and other <br />
         		<a id="pl.184.16"></a><var>184.16</var>redevelopment costs as defined in section 
         <statute_ref>469.176, subdivision 4j</statute_ref>. These expenditures are <br />
         		<a id="pl.184.17"></a><var>184.17</var>considered as expenditures for activities within the district. The authority provided by <br />
         		<a id="pl.184.18"></a><var>184.18</var>this paragraph expires for expenditures made after the later of (1) December 31, 2015, <br />
         		<a id="pl.184.19"></a><var>184.19</var>or (2) the end of the five-year period beginning on the date the district was certified, <br />
         		<a id="pl.184.20"></a><var>184.20</var>provided that date was before January 1, 2016.<br />
         		<a id="pl.184.21"></a><var>184.21</var>(f) The authority under paragraph (d), clause (4), expires on December 31, 2016. <br />
         		<a id="pl.184.22"></a><var>184.22</var>Increments may continue to be expended under this authority after that date, if they are <br />
         		<a id="pl.184.23"></a><var>184.23</var>used to pay bonds or binding contracts that would qualify under subdivision 3, paragraph <br />
         		<a id="pl.184.24"></a><var>184.24</var>(a), if December 31, 2016, is considered to be the last date of the five-year period after <br />
         		<a id="pl.184.25"></a><var>184.25</var>certification under that provision.<br />
         		<a id="pl.184.26"></a><var>184.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br />
         		<a id="pl.184.27"></a><var>184.27</var>and applies to all districts, regardless of when the request for certification was made.<br />
         		<br />
         		<a id="bill.9.88.0"></a><a id="pl.184.28"></a><var>184.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 88. Minnesota Statutes 2012, section 473.665, subdivision 5, is amended to read:<br />
         		<a id="pl.184.29"></a><var>184.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Tax levy; surplus; reduction.</b> The corporation, upon issuing any bonds <br />
         		<a id="pl.184.30"></a><var>184.30</var>under the provisions of this section, shall, before the issuance thereof, levy for each year, <br />
         		<a id="pl.184.31"></a><var>184.31</var>until the principal and interest are paid in full, a direct annual tax on all the taxable property <br />
         		<a id="pl.184.32"></a><var>184.32</var>of the cities in and for which the corporation has been created in an amount not less than <br />
         		<a id="pl.184.33"></a><var>184.33</var>five percent in excess of the sum required to pay the principal and interest thereof, when <br />
         		<a id="pl.184.34"></a><var>184.34</var>and as such principal and interest matures. After any of such bonds have been delivered to <br />
         		<a id="pl.184.35"></a><var>184.35</var>purchasers, such tax shall be irrepealable until all such indebtedness is paid, and after the <br />
         		<a id="pl.185.1"></a><var>185.1</var>issuance of such bonds no further action of the corporation shall be necessary to authorize <br />
         		<a id="pl.185.2"></a><var>185.2</var>the extensions, assessments, and collection of such tax. The secretary of the corporation <br />
         		<a id="pl.185.3"></a><var>185.3</var>shall forthwith furnish a certified copy of such levy to the county auditor or county <br />
         		<a id="pl.185.4"></a><var>185.4</var>auditors of the county or counties in which the cities in and for which the corporation has <br />
         		<a id="pl.185.5"></a><var>185.5</var>been created are located, together with full information regarding the bonds for which the <br />
         		<a id="pl.185.6"></a><var>185.6</var>tax is levied, and such county auditor or such county auditors, as the case may be, shall <br />
         		<a id="pl.185.7"></a><var>185.7</var>enter the same in the register provided for in section 
         <statute_ref>475.62</statute_ref>, or a similar register, and shall <br />
         		<a id="pl.185.8"></a><var>185.8</var>extend and assess the tax so levied. If both cities are located wholly within one county, the <br />
         		<a id="pl.185.9"></a><var>185.9</var>county auditor thereof shall annually extend and assess the amount of the tax so levied. If <br />
         		<a id="pl.185.10"></a><var>185.10</var>the cities are located in different counties, the county auditor of each such county shall <br />
         		<a id="pl.185.11"></a><var>185.11</var>annually extend and assess such portion of the tax levied as the net tax capacity of the <br />
         		<a id="pl.185.12"></a><var>185.12</var>taxable property, not including moneys and credits, located wholly within the city in such <br />
         		<a id="pl.185.13"></a><var>185.13</var>county bears to the total net tax capacity of the taxable property, not including moneys and <br />
         		<a id="pl.185.14"></a><var>185.14</var>credits, within both cities. Any surplus resulting from the excess levy herein provided <br />
         		<a id="pl.185.15"></a><var>185.15</var>for shall be transferred to a sinking fund after the principal and interest for which the tax <br />
         		<a id="pl.185.16"></a><var>185.16</var>was levied and collected has been paid; provided, that the corporation may, on or before <br />
         		<a id="pl.185.17"></a><var>185.17</var>October 15 in any year, by appropriate action, cause its secretary to certify to the county <br />
         		<a id="pl.185.18"></a><var>185.18</var>auditor, or auditors, the amount on hand and available in its treasury from earnings, or <br />
         		<a id="pl.185.19"></a><var>185.19</var>otherwise, including the amount in the sinking fund, which it will use to pay principal or <br />
         		<a id="pl.185.20"></a><var>185.20</var>interest or both on each specified issue of its bonds, and the county auditor or auditors <br />
         		<a id="pl.185.21"></a><var>185.21</var>shall reduce the levy for that year, herein provided for by that amount. The amount of <br />
         		<a id="pl.185.22"></a><var>185.22</var>funds so certified shall be set aside by the corporation, and be used for no other purpose <br />
         		<a id="pl.185.23"></a><var>185.23</var>than for the payment of the principal and interest of the bonds. All taxes hereunder shall <br />
         		<a id="pl.185.24"></a><var>185.24</var>be collected and remitted to the corporation by the county treasurer or county treasurers, <br />
         		<a id="pl.185.25"></a><var>185.25</var>in accordance with the provisions of law governing the collection of other taxes, and shall <br />
         		<a id="pl.185.26"></a><var>185.26</var>be used solely for the payment of the bonds where due.<br />
         		<a id="pl.185.27"></a><var>185.27</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.89.0"></a><a id="pl.185.28"></a><var>185.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 89. Minnesota Statutes 2012, section 477A.0124, subdivision 5, is amended to <br />
         		<a id="pl.185.29"></a><var>185.29</var>read:<br />
         		<a id="pl.185.30"></a><var>185.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>County transition aid.</b> (a) For 2009 and each year thereafter, A county is <br />
         		<a id="pl.185.31"></a><var>185.31</var>eligible to receive the transition aid it received in 2007.<br />
         		<a id="pl.185.32"></a><var>185.32</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) In 2009 only, a county with (1) a 2006 population less than 30,000, and (2) <br />
         		<a id="pl.185.33"></a><var>185.33</var>an average Part I crimes per capita greater than 3.9 percent based on factors used in <br />
         		<a id="pl.185.34"></a><var>185.34</var>determining county program aid payable in 2008, shall receive $100,000.<br />
         		<a id="pl.186.1"></a><var>186.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.90.0"></a><a id="pl.186.2"></a><var>186.2</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 90. Minnesota Statutes 2012, section 477A.014, subdivision 1, is amended to read:<br />
         		<a id="pl.186.3"></a><var>186.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Calculations and payments.</b> (a) The commissioner of revenue shall <br />
         		<a id="pl.186.4"></a><var>186.4</var>make all necessary calculations and make payments pursuant to sections 
         <statute_ref>477A.013</statute_ref> and <br />
         		
         <statute_ref><a id="pl.186.5"></a><var>186.5</var>477A.03
         </statute_ref> directly to the affected taxing authorities annually. In addition, the commissioner <br />
         		<a id="pl.186.6"></a><var>186.6</var>shall notify the authorities of their aid amounts, as well as the computational factors used <br />
         		<a id="pl.186.7"></a><var>186.7</var>in making the calculations for their authority, and those statewide total figures that are <br />
         		<a id="pl.186.8"></a><var>186.8</var>pertinent, before August 1 of the year preceding the aid distribution year.<br />
         		<a id="pl.186.9"></a><var>186.9</var>(b) For the purposes of this subdivision, aid is determined for a city or town based <br />
         		<a id="pl.186.10"></a><var>186.10</var>on its city or town status as of June 30 of the year preceding the aid distribution year. If <br />
         		<a id="pl.186.11"></a><var>186.11</var>the effective date for a municipal incorporation, consolidation, annexation, detachment, <br />
         		<a id="pl.186.12"></a><var>186.12</var>dissolution, or township organization is on or before June 30 of the year preceding <br />
         		<a id="pl.186.13"></a><var>186.13</var>the aid distribution year, such change in boundaries or form of government shall be <br />
         		<a id="pl.186.14"></a><var>186.14</var>recognized for aid determinations for the aid distribution year. If the effective date for a <br />
         		<a id="pl.186.15"></a><var>186.15</var>municipal incorporation, consolidation, annexation, detachment, dissolution, or township <br />
         		<a id="pl.186.16"></a><var>186.16</var>organization is after June 30 of the year preceding the aid distribution year, such change in <br />
         		<a id="pl.186.17"></a><var>186.17</var>boundaries or form of government shall not be recognized for aid determinations until <br />
         		<a id="pl.186.18"></a><var>186.18</var>the following year.<br />
         		<a id="pl.186.19"></a><var>186.19</var>(c) Changes in boundaries or form of government will only be recognized for the <br />
         		<a id="pl.186.20"></a><var>186.20</var>purposes of this subdivision, to the extent that: (1) changes in market values are included <br />
         		<a id="pl.186.21"></a><var>186.21</var>in market values reported by assessors to the commissioner, and changes in population,<br />
         		<a id="pl.186.22"></a><var>186.22</var> and household size, and the road accidents factor are included in their respective <br />
         		<a id="pl.186.23"></a><var>186.23</var>certifications to the commissioner as referenced in section 
         <statute_ref>477A.011</statute_ref>, or (2) an annexation <br />
         		<a id="pl.186.24"></a><var>186.24</var>information report as provided in paragraph (d) is received by the commissioner on <br />
         		<a id="pl.186.25"></a><var>186.25</var>or before July 15 of the aid calculation year. Revisions to estimates or data for use in <br />
         		<a id="pl.186.26"></a><var>186.26</var>recognizing changes in boundaries or form of government are not effective for purposes <br />
         		<a id="pl.186.27"></a><var>186.27</var>of this subdivision unless received by the commissioner on or before July 15 of the aid <br />
         		<a id="pl.186.28"></a><var>186.28</var>calculation year. Clerical errors in the certification or use of estimates and data established <br />
         		<a id="pl.186.29"></a><var>186.29</var>as of July 15 in the aid calculation year are subject to correction within the time periods <br />
         		<a id="pl.186.30"></a><var>186.30</var>allowed under subdivision 3.<br />
         		<a id="pl.186.31"></a><var>186.31</var>(d) In the case of an annexation, an annexation information report may be completed <br />
         		<a id="pl.186.32"></a><var>186.32</var>by the annexing jurisdiction and submitted to the commissioner for purposes of this <br />
         		<a id="pl.186.33"></a><var>186.33</var>subdivision if the net tax capacity of annexed area for the assessment year preceding the <br />
         		<a id="pl.186.34"></a><var>186.34</var>effective date of the annexation exceeds five percent of the city's net tax capacity for the <br />
         		<a id="pl.186.35"></a><var>186.35</var>same year. The form and contents of the annexation information report shall be prescribed <br />
         		<a id="pl.187.1"></a><var>187.1</var>by the commissioner. The commissioner shall change the net tax capacity, the population, <br />
         		<a id="pl.187.2"></a><var>187.2</var>the population decline, the commercial industrial percentage, and the transformed <br />
         		<a id="pl.187.3"></a><var>187.3</var>population for the annexing jurisdiction only if the annexation information report provides <br />
         		<a id="pl.187.4"></a><var>187.4</var>data the commissioner determines to be reliable for all of these factors used to compute city <br />
         		<a id="pl.187.5"></a><var>187.5</var>revenue need for the annexing jurisdiction. The commissioner shall adjust the pre-1940 <br />
         		<a id="pl.187.6"></a><var>187.6</var>housing percentage, the road accidents factor, and household size only if the entire area of <br />
         		<a id="pl.187.7"></a><var>187.7</var>an existing city or town is annexed or consolidated and only if reliable data is available for <br />
         		<a id="pl.187.8"></a><var>187.8</var>all of these factors used to compute city revenue need for the annexing jurisdiction.<br />
         		<a id="pl.187.9"></a><var>187.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.91.0"></a><a id="pl.187.10"></a><var>187.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 91. Minnesota Statutes 2012, section 611.27, subdivision 13, is amended to read:<br />
         		<a id="pl.187.11"></a><var>187.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 13. <b>Public defense services; correctional facility inmates.</b> All billings <br />
         		<a id="pl.187.12"></a><var>187.12</var>for services rendered and ordered under subdivision 7 shall require the approval of the <br />
         		<a id="pl.187.13"></a><var>187.13</var>chief district public defender before being forwarded on a monthly basis to the state <br />
         		<a id="pl.187.14"></a><var>187.14</var>public defender. In cases where adequate representation cannot be provided by the district <br />
         		<a id="pl.187.15"></a><var>187.15</var>public defender and where counsel has been appointed under a court order, the state <br />
         		<a id="pl.187.16"></a><var>187.16</var>public defender shall forward to the commissioner of management and budget all billings <br />
         		<a id="pl.187.17"></a><var>187.17</var>for services rendered under the court order. The commissioner shall pay for services <br />
         		<a id="pl.187.18"></a><var>187.18</var>from county program aid retained by the commissioner of revenue for that purpose under <br />
         		<a id="pl.187.19"></a><var>187.19</var>section 
         <statute_ref>477A.0124, subdivision 1</statute_ref>, clause (4), or 
         <statute_ref>477A.03, subdivision 2b</statute_ref>, paragraph (a).<br />
         		<a id="pl.187.20"></a><var>187.20</var>&nbsp;&nbsp;&nbsp;&nbsp;The costs of appointed counsel and associated services in cases arising from new <br />
         		<a id="pl.187.21"></a><var>187.21</var>criminal charges brought against indigent inmates who are incarcerated in a Minnesota <br />
         		<a id="pl.187.22"></a><var>187.22</var>state correctional facility are the responsibility of the state Board of Public Defense. In <br />
         		<a id="pl.187.23"></a><var>187.23</var>such cases the state public defender may follow the procedures outlined in this section for <br />
         		<a id="pl.187.24"></a><var>187.24</var>obtaining court-ordered counsel.<br />
         		<a id="pl.187.25"></a><var>187.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.92.0"></a><a id="pl.187.26"></a><var>187.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 92. Minnesota Statutes 2012, section 611.27, subdivision 15, is amended to read:<br />
         		<a id="pl.187.27"></a><var>187.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 15. <b>Costs of transcripts.</b> In appeal cases and postconviction cases where <br />
         		<a id="pl.187.28"></a><var>187.28</var>the appellate public defender's office does not have sufficient funds to pay for transcripts <br />
         		<a id="pl.187.29"></a><var>187.29</var>and other necessary expenses because it has spent or committed all of the transcript <br />
         		<a id="pl.187.30"></a><var>187.30</var>funds in its annual budget, the state public defender may forward to the commissioner <br />
         		<a id="pl.187.31"></a><var>187.31</var>of management and budget all billings for transcripts and other necessary expenses. The <br />
         		<a id="pl.187.32"></a><var>187.32</var>commissioner shall pay for these transcripts and other necessary expenses from county <br />
         		<a id="pl.188.1"></a><var>188.1</var>program aid retained by the commissioner of revenue for that purpose under section <br />
         		<a id="pl.188.2"></a><var>188.2</var><statute_ref>477A.0124, subdivision 1</statute_ref>, clause (4), or 
         <statute_ref>477A.03, subdivision 2b</statute_ref>, paragraph (a).<br />
         		<a id="pl.188.3"></a><var>188.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.9.93.0"></a><a id="pl.188.4"></a><var>188.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 93. <b>REVISOR'S INSTRUCTION.</b><br />
         		<a id="pl.188.5"></a><var>188.5</var>The revisor of statutes shall make all necessary cross-reference changes in <br />
         		<a id="pl.188.6"></a><var>188.6</var>Minnesota Statutes and Minnesota Rules consistent with the amendments and repealers in <br />
         		<a id="pl.188.7"></a><var>188.7</var>this article. The revisor can make changes to sentence structure to preserve the meaning of <br />
         		<a id="pl.188.8"></a><var>188.8</var>the text. The revisor shall make other changes in chapter titles; section, subdivision, part, <br />
         		<a id="pl.188.9"></a><var>188.9</var>and subpart headnotes; and in other terminology necessary as a result of the enactment of <br />
         		<a id="pl.188.10"></a><var>188.10</var>this act. The Department of Revenue shall assist in making these corrections.<br />
         		<br />
         		<a id="bill.9.94.0"></a><a id="pl.188.11"></a><var>188.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 94. <b> REPEALER.</b><br />
         		<a id="pl.188.12"></a><var>188.12</var>(a) Minnesota Statutes 2012, sections 273.1398, subdivision 4b; 290.01, subdivision <br />
         		<a id="pl.188.13"></a><var>188.13</var>19e; 290.0674, subdivision 3; 290.191, subdivision 4; and 290.33, and Minnesota Rules, <br />
         		<a id="pl.188.14"></a><var>188.14</var>part 8007.0200, are repealed.<br />
         		<a id="pl.188.15"></a><var>188.15</var>(b) Minnesota Statutes 2012, sections 16D.02, subdivisions 5 and 8; 16D.11, <br />
         		<a id="pl.188.16"></a><var>188.16</var>subdivision 2; 270C.53; 270C.991, subdivision 4; 272.02, subdivisions 1, 1a, 43, 48, 51, <br />
         		<a id="pl.188.17"></a><var>188.17</var>53, 67, 72, and 82; 272.027, subdivision 2; 272.031; 273.015, subdivision 1; 273.03, <br />
         		<a id="pl.188.18"></a><var>188.18</var>subdivision 3; 273.075; 273.13, subdivision 21a; 273.1383; 273.1386; 273.80; 275.77; <br />
         		<a id="pl.188.19"></a><var>188.19</var>279.32; 281.173, subdivision 8; 281.174, subdivision 8; 281.328; 282.10; 282.23; 287.20, <br />
         		<a id="pl.188.20"></a><var>188.20</var>subdivision 4; 287.27, subdivision 2; 290.01, subdivisions 4b and 20e; 295.52, subdivision <br />
         		<a id="pl.188.21"></a><var>188.21</var>7; 297A.666; 297A.71, subdivisions 4, 5, 7, 9, 10, 17, 18, 20, 32, and 41; 297F.08, <br />
         		<a id="pl.188.22"></a><var>188.22</var>subdivision 11; 297H.10, subdivision 2; 469.174, subdivision 10c; 469.175, subdivision <br />
         		<a id="pl.188.23"></a><var>188.23</var>2b; 469.176, subdivision 1i; 469.177, subdivision 10; 477A.0124, subdivisions 1 and 6; <br />
         		<a id="pl.188.24"></a><var>188.24</var>and 505.173, Minnesota Statutes 2013 Supplement, section 273.1103, Laws 1993, chapter <br />
         		<a id="pl.188.25"></a><var>188.25</var>375, article 9, section 47,  and Minnesota Rules, parts 8002.0200, subpart 8; 8100.0800; <br />
         		<a id="pl.188.26"></a><var>188.26</var>and 8130.7500, subpart 7, are repealed.<br />
         		<a id="pl.188.27"></a><var>188.27</var>(c) Minnesota Statutes 2012, section 469.1764, is repealed.<br />
         		<a id="pl.188.28"></a><var>188.28</var>(d) Minnesota Statutes 2012, sections 289A.56, subdivision 7; 297A.68, subdivision <br />
         		<a id="pl.188.29"></a><var>188.29</var>38; 469.330; 469.331; 469.332; 469.333; 469.334; 469.335; 469.336; 469.337; 469.338; <br />
         		<a id="pl.188.30"></a><var>188.30</var>469.339; 469.340, subdivisions 1, 2, 3, and 5; and 469.341, and Minnesota Statutes 2013 <br />
         		<a id="pl.188.31"></a><var>188.31</var>Supplement, section 469.340, subdivision 4, are repealed.<br />
         		<a id="pl.188.32"></a><var>188.32</var>(e) Minnesota Statutes 2012, section 290.06, subdivisions 30 and 31, are repealed.<br />
         		<a id="pl.189.1"></a><var>189.1</var><b>EFFECTIVE DATE.</b>Paragraph (a) is effective for taxable years beginning after <br />
         		<a id="pl.189.2"></a><var>189.2</var>December 31, 2013.<br />
         		<a id="pl.189.3"></a><var>189.3</var>Paragraph (b) is effective the day following final enactment.<br />
         		<a id="pl.189.4"></a><var>189.4</var>Paragraph (c) is effective the day following final enactment and any remaining <br />
         		<a id="pl.189.5"></a><var>189.5</var>unexpended tax increments from a district subject to Minnesota Statutes, section 469.1764, <br />
         		<a id="pl.189.6"></a><var>189.6</var>must be distributed as excess increments to the city, county, and school district under <br />
         		<a id="pl.189.7"></a><var>189.7</var>Minnesota Statutes, section 469.176, subdivision 2, paragraph (c), clause (4), on or before <br />
         		<a id="pl.189.8"></a><var>189.8</var>December 31, 2014.<br />
         		<a id="pl.189.9"></a><var>189.9</var>Paragraph (d) is effective the day following final enactment.<br />
         		<a id="pl.189.10"></a><var>189.10</var>Paragraph (e) is effective for taxable years beginning after December 31, 2013.<br />
         		<br />
         		<a id="bill.10.0.0"></a><div class="xtend_ce"><a id="pl.189.11"></a><var>189.11</var><b>ARTICLE 10</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.189.12"></a><var>189.12</var><b>DEPARTMENT OF REVENUE - TECHNICAL AND POLICY </b><br />
            		<a id="pl.189.13"></a><var>189.13</var><b>PROPERTY TAX PROVISIONS</b><br />
            		
         </div><br />
         		<a id="bill.10.1.0"></a><a id="pl.189.14"></a><var>189.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. Minnesota Statutes 2012, section 270.87, is amended to read:<br />
         		<a id="pl.189.15"></a><var>189.15</var><b>270.87 CERTIFICATION TO COUNTY ASSESSORS.</b><br />
         		<a id="pl.189.16"></a><var>189.16</var>After making an annual determination of the equalized fair market value of the <br />
         		<a id="pl.189.17"></a><var>189.17</var>operating property of each company in each of the respective counties, and in the taxing <br />
         		<a id="pl.189.18"></a><var>189.18</var>districts therein, the commissioner shall certify the equalized fair market value to the <br />
         		<a id="pl.189.19"></a><var>189.19</var>county assessor on or before June 30. The equalized fair market value of the operating <br />
         		<a id="pl.189.20"></a><var>189.20</var>property of the railroad company in the county and the taxing districts therein is the value <br />
         		<a id="pl.189.21"></a><var>189.21</var>on which taxes must be levied and collected in the same manner as on the commercial and <br />
         		<a id="pl.189.22"></a><var>189.22</var>industrial property of such county and the taxing districts therein. If the commissioner <br />
         		<a id="pl.189.23"></a><var>189.23</var>determines that the equalized fair market value certified on or before June 30 is in error, <br />
         		<a id="pl.189.24"></a><var>189.24</var>the commissioner may issue a corrected certification on or before August 31. The <br />
         		<a id="pl.189.25"></a><var>189.25</var>commissioner may correct errors that are merely clerical in nature until December 31.<br />
         		<a id="pl.189.26"></a><var>189.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.10.2.0"></a><a id="pl.189.27"></a><var>189.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. Minnesota Statutes 2012, section 272.029, subdivision 4a, is amended to read:<br />
         		<a id="pl.189.28"></a><var>189.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4a. <b>Correction of errors.</b> If the commissioner of revenue determines that <br />
         		<a id="pl.189.29"></a><var>189.29</var>the amount of production tax has been erroneously calculated, the commissioner may <br />
         		<a id="pl.189.30"></a><var>189.30</var>correct the error. The commissioner must notify the owner of the wind energy conversion <br />
         		<a id="pl.189.31"></a><var>189.31</var>system of the correction and the amount of tax due to each county and must certify the <br />
         		<a id="pl.189.32"></a><var>189.32</var>correction to the county auditor of each county in which the system is located on or before <br />
         		<a id="pl.189.33"></a><var>189.33</var>April 1 of the current year. The commissioner may correct errors that are merely clerical <br />
         		<a id="pl.189.34"></a><var>189.34</var>in nature until December 31.<br />
         		<a id="pl.190.1"></a><var>190.1</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.10.3.0"></a><a id="pl.190.2"></a><var>190.2</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. Minnesota Statutes 2012, section 273.01, is amended to read:<br />
         		<a id="pl.190.3"></a><var>190.3</var><b>273.01 LISTING AND ASSESSMENT, TIME.</b><br />
         		<a id="pl.190.4"></a><var>190.4</var>All real property subject to taxation shall be listed and at least one-fifth of the parcels <br />
         		<a id="pl.190.5"></a><var>190.5</var>listed shall be appraised each year with reference to their value on January 2 preceding the <br />
         		<a id="pl.190.6"></a><var>190.6</var>assessment so that each parcel shall be reappraised at maximum intervals of five years. All <br />
         		<a id="pl.190.7"></a><var>190.7</var>real property becoming taxable in any year shall be listed with reference to its value on <br />
         		<a id="pl.190.8"></a><var>190.8</var>January 2 of that year. Except as provided in this section and section 
         <statute_ref>274.01, subdivision <br />
            		<a id="pl.190.9"></a><var>190.9</var>1
         </statute_ref>, all real property assessments shall be completed two weeks prior to the date scheduled <br />
         		<a id="pl.190.10"></a><var>190.10</var>for the local board of review or equalization. No changes in valuation or classification <br />
         		<a id="pl.190.11"></a><var>190.11</var>which are intended to correct errors in judgment by the county assessor may be made by <br />
         		<a id="pl.190.12"></a><var>190.12</var>the county assessor after the board of review or the county board of equalization has <br />
         		<a id="pl.190.13"></a><var>190.13</var>adjourned; however, corrections of errors for real or personal property that are merely <br />
         		<a id="pl.190.14"></a><var>190.14</var>clerical in nature or changes that extend homestead treatment to property are permitted <br />
         		<a id="pl.190.15"></a><var>190.15</var>after adjournment until the tax extension date for that assessment year. Any changes made <br />
         		<a id="pl.190.16"></a><var>190.16</var>by the assessor after adjournment must be fully documented and maintained in a file in the <br />
         		<a id="pl.190.17"></a><var>190.17</var>assessor's office and shall be available for review by any person. A copy of any changes <br />
         		<a id="pl.190.18"></a><var>190.18</var>made during this period shall be sent to the county board no later than December 31 of <br />
         		<a id="pl.190.19"></a><var>190.19</var>the assessment year. In the event a valuation and classification is not placed on any real <br />
         		<a id="pl.190.20"></a><var>190.20</var>property by the dates scheduled for the local board of review or equalization the valuation <br />
         		<a id="pl.190.21"></a><var>190.21</var>and classification determined in the preceding assessment shall be continued in effect and <br />
         		<a id="pl.190.22"></a><var>190.22</var>the provisions of section 
         <statute_ref>273.13</statute_ref> shall, in such case, not be applicable, except with respect <br />
         		<a id="pl.190.23"></a><var>190.23</var>to real estate which has been constructed since the previous assessment. Real property <br />
         		<a id="pl.190.24"></a><var>190.24</var>containing iron ore, the fee to which is owned by the state of Minnesota, shall, if leased by <br />
         		<a id="pl.190.25"></a><var>190.25</var>the state after January 2 in any year, be subject to assessment for that year on the value of <br />
         		<a id="pl.190.26"></a><var>190.26</var>any iron ore removed under said lease prior to January 2 of the following year. Personal <br />
         		<a id="pl.190.27"></a><var>190.27</var>property subject to taxation shall be listed and assessed annually with reference to its value <br />
         		<a id="pl.190.28"></a><var>190.28</var>on January 2; and, if acquired on that day, shall be listed by or for the person acquiring it.<br />
         		<a id="pl.190.29"></a><var>190.29</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.10.4.0"></a><a id="pl.190.30"></a><var>190.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 4. Minnesota Statutes 2013 Supplement, section 273.13, subdivision 25, is <br />
         		<a id="pl.190.31"></a><var>190.31</var>amended to read:<br />
         		<a id="pl.190.32"></a><var>190.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 25. <b>Class 4.</b> (a) Class 4a is residential real estate containing four or more <br />
         		<a id="pl.190.33"></a><var>190.33</var>units and used or held for use by the owner or by the tenants or lessees of the owner <br />
         		<a id="pl.191.1"></a><var>191.1</var>as a residence for rental periods of 30 days or more, excluding property qualifying for <br />
         		<a id="pl.191.2"></a><var>191.2</var>class 4d. Class 4a also includes hospitals licensed under sections 
         <statute_ref>144.50</statute_ref> to 
         <statute_ref>144.56</statute_ref>, other <br />
         		<a id="pl.191.3"></a><var>191.3</var>than hospitals exempt under section 
         <statute_ref>272.02</statute_ref>, and contiguous property used for hospital <br />
         		<a id="pl.191.4"></a><var>191.4</var>purposes, without regard to whether the property has been platted or subdivided. The <br />
         		<a id="pl.191.5"></a><var>191.5</var>market value of class 4a property has a class rate of 1.25 percent.<br />
         		<a id="pl.191.6"></a><var>191.6</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) Class 4b includes:<br />
         		<a id="pl.191.7"></a><var>191.7</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) residential real estate containing less than four units that does not qualify as class <br />
         		<a id="pl.191.8"></a><var>191.8</var>4bb, other than seasonal residential recreational property;<br />
         		<a id="pl.191.9"></a><var>191.9</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) manufactured homes not classified under any other provision;<br />
         		<a id="pl.191.10"></a><var>191.10</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) a dwelling, garage, and surrounding one acre of property on a nonhomestead <br />
         		<a id="pl.191.11"></a><var>191.11</var>farm classified under subdivision 23, paragraph (b) containing two or three units; and<br />
         		<a id="pl.191.12"></a><var>191.12</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) unimproved property that is classified residential as determined under subdivision <br />
         		<a id="pl.191.13"></a><var>191.13</var>33.<br />
         		<a id="pl.191.14"></a><var>191.14</var>&nbsp;&nbsp;&nbsp;&nbsp;The market value of class 4b property has a class rate of 1.25 percent.<br />
         		<a id="pl.191.15"></a><var>191.15</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) Class 4bb includes nonhomestead residential real estate containing one unit, <br />
         		<a id="pl.191.16"></a><var>191.16</var>other than seasonal residential recreational property, and a single family dwelling, garage, <br />
         		<a id="pl.191.17"></a><var>191.17</var>and surrounding one acre of property on a nonhomestead farm classified under subdivision <br />
         		<a id="pl.191.18"></a><var>191.18</var>23, paragraph (b).<br />
         		<a id="pl.191.19"></a><var>191.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Class 4bb property has the same class rates as class 1a property under subdivision 22.<br />
         		<a id="pl.191.20"></a><var>191.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Property that has been classified as seasonal residential recreational property at <br />
         		<a id="pl.191.21"></a><var>191.21</var>any time during which it has been owned by the current owner or spouse of the current <br />
         		<a id="pl.191.22"></a><var>191.22</var>owner does not qualify for class 4bb.<br />
         		<a id="pl.191.23"></a><var>191.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) Class 4c property includes:<br />
         		<a id="pl.191.24"></a><var>191.24</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) except as provided in subdivision 22, paragraph (c), real and personal property <br />
         		<a id="pl.191.25"></a><var>191.25</var>devoted to commercial temporary and seasonal residential occupancy for recreation <br />
         		<a id="pl.191.26"></a><var>191.26</var>purposes, for not more than 250 days in the year preceding the year of assessment. For <br />
         		<a id="pl.191.27"></a><var>191.27</var>purposes of this clause, property is devoted to a commercial purpose on a specific day <br />
         		<a id="pl.191.28"></a><var>191.28</var>if any portion of the property is used for residential occupancy, and a fee is charged for <br />
         		<a id="pl.191.29"></a><var>191.29</var>residential occupancy. Class 4c property under this clause must contain three or more <br />
         		<a id="pl.191.30"></a><var>191.30</var>rental units. A "rental unit" is defined as a cabin, condominium, townhouse, sleeping room, <br />
         		<a id="pl.191.31"></a><var>191.31</var>or individual camping site equipped with water and electrical hookups for recreational <br />
         		<a id="pl.191.32"></a><var>191.32</var>vehicles. A camping pad offered for rent by a property that otherwise qualifies for class <br />
         		<a id="pl.191.33"></a><var>191.33</var>4c under this clause is also class 4c under this clause regardless of the term of the rental <br />
         		<a id="pl.191.34"></a><var>191.34</var>agreement, as long as the use of the camping pad does not exceed 250 days. In order for a <br />
         		<a id="pl.191.35"></a><var>191.35</var>property to be classified under this clause, either (i) the business located on the property <br />
         		<a id="pl.191.36"></a><var>191.36</var>must provide recreational activities, at least 40 percent of the annual gross lodging receipts <br />
         		<a id="pl.192.1"></a><var>192.1</var>related to the property must be from business conducted during 90 consecutive days, <br />
         		<a id="pl.192.2"></a><var>192.2</var>and either (A) at least 60 percent of all paid bookings by lodging guests during the year <br />
         		<a id="pl.192.3"></a><var>192.3</var>must be for periods of at least two consecutive nights; or (B) at least 20 percent of the <br />
         		<a id="pl.192.4"></a><var>192.4</var>annual gross receipts must be from charges for providing recreational activities, or (ii) the <br />
         		<a id="pl.192.5"></a><var>192.5</var>business must contain 20 or fewer rental units, and must be located in a township or a city <br />
         		<a id="pl.192.6"></a><var>192.6</var>with a population of 2,500 or less located outside the metropolitan area, as defined under <br />
         		<a id="pl.192.7"></a><var>192.7</var>section 
         <statute_ref>473.121</statute_ref>, subdivision 2, that contains a portion of a state trail administered by the <br />
         		<a id="pl.192.8"></a><var>192.8</var>Department of Natural Resources. For purposes of item (i)(A), a paid booking of five or <br />
         		<a id="pl.192.9"></a><var>192.9</var>more nights shall be counted as two bookings. Class 4c property also includes commercial <br />
         		<a id="pl.192.10"></a><var>192.10</var>use real property used exclusively for recreational purposes in conjunction with other class <br />
         		<a id="pl.192.11"></a><var>192.11</var>4c property classified under this clause and devoted to temporary and seasonal residential <br />
         		<a id="pl.192.12"></a><var>192.12</var>occupancy for recreational purposes, up to a total of two acres, provided the property is <br />
         		<a id="pl.192.13"></a><var>192.13</var>not devoted to commercial recreational use for more than 250 days in the year preceding <br />
         		<a id="pl.192.14"></a><var>192.14</var>the year of assessment and is located within two miles of the class 4c property with which <br />
         		<a id="pl.192.15"></a><var>192.15</var>it is used. In order for a property to qualify for classification under this clause, the owner <br />
         		<a id="pl.192.16"></a><var>192.16</var>must submit a declaration to the assessor designating the cabins or units occupied for 250 <br />
         		<a id="pl.192.17"></a><var>192.17</var>days or less in the year preceding the year of assessment by January 15 of the assessment <br />
         		<a id="pl.192.18"></a><var>192.18</var>year. Those cabins or units and a proportionate share of the land on which they are located <br />
         		<a id="pl.192.19"></a><var>192.19</var>must be designated class 4c under this clause as otherwise provided. The remainder of the <br />
         		<a id="pl.192.20"></a><var>192.20</var>cabins or units and a proportionate share of the land on which they are located will be <br />
         		<a id="pl.192.21"></a><var>192.21</var>designated as class 3a. The owner of property desiring designation as class 4c property <br />
         		<a id="pl.192.22"></a><var>192.22</var>under this clause must provide guest registers or other records demonstrating that the units <br />
         		<a id="pl.192.23"></a><var>192.23</var>for which class 4c designation is sought were not occupied for more than 250 days in the <br />
         		<a id="pl.192.24"></a><var>192.24</var>year preceding the assessment if so requested. The portion of a property operated as a <br />
         		<a id="pl.192.25"></a><var>192.25</var>(1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) other <br />
         		<a id="pl.192.26"></a><var>192.26</var>nonresidential facility operated on a commercial basis not directly related to temporary and <br />
         		<a id="pl.192.27"></a><var>192.27</var>seasonal residential occupancy for recreation purposes does not qualify for class 4c. For <br />
         		<a id="pl.192.28"></a><var>192.28</var>the purposes of this paragraph, "recreational activities" means renting ice fishing houses, <br />
         		<a id="pl.192.29"></a><var>192.29</var>boats and motors, snowmobiles, downhill or cross-country ski equipment; providing <br />
         		<a id="pl.192.30"></a><var>192.30</var>marina services, launch services, or guide services; or selling bait and fishing tackle;<br />
         		<a id="pl.192.31"></a><var>192.31</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) qualified property used as a golf course if:<br />
         		<a id="pl.192.32"></a><var>192.32</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) it is open to the public on a daily fee basis. It may charge membership fees or <br />
         		<a id="pl.192.33"></a><var>192.33</var>dues, but a membership fee may not be required in order to use the property for golfing, <br />
         		<a id="pl.192.34"></a><var>192.34</var>and its green fees for golfing must be comparable to green fees typically charged by <br />
         		<a id="pl.192.35"></a><var>192.35</var>municipal courses; and<br />
         		<a id="pl.192.36"></a><var>192.36</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) it meets the requirements of section 
         <statute_ref>273.112, subdivision 3</statute_ref>, paragraph (d).<br />
         		<a id="pl.193.1"></a><var>193.1</var>&nbsp;&nbsp;&nbsp;&nbsp;A structure used as a clubhouse, restaurant, or place of refreshment in conjunction <br />
         		<a id="pl.193.2"></a><var>193.2</var>with the golf course is classified as class 3a property;<br />
         		<a id="pl.193.3"></a><var>193.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) real property up to a maximum of three acres of land owned and used by a <br />
         		<a id="pl.193.4"></a><var>193.4</var>nonprofit community service oriented organization and not used for residential purposes <br />
         		<a id="pl.193.5"></a><var>193.5</var>on either a temporary or permanent basis, provided that:<br />
         		<a id="pl.193.6"></a><var>193.6</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) the property is not used for a revenue-producing activity for more than six days <br />
         		<a id="pl.193.7"></a><var>193.7</var>in the calendar year preceding the year of assessment; or<br />
         		<a id="pl.193.8"></a><var>193.8</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) the organization makes annual charitable contributions and donations at least <br />
         		<a id="pl.193.9"></a><var>193.9</var>equal to the property's previous year's property taxes and the property is allowed to be <br />
         		<a id="pl.193.10"></a><var>193.10</var>used for public and community meetings or events for no charge, as appropriate to the <br />
         		<a id="pl.193.11"></a><var>193.11</var>size of the facility.<br />
         		<a id="pl.193.12"></a><var>193.12</var>&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this clause:<br />
         		<a id="pl.193.13"></a><var>193.13</var>&nbsp;&nbsp;&nbsp;&nbsp;(A) "charitable contributions and donations" has the same meaning as lawful <br />
         		<a id="pl.193.14"></a><var>193.14</var>gambling purposes under section 
         <statute_ref>349.12, subdivision 25</statute_ref>, excluding those purposes <br />
         		<a id="pl.193.15"></a><var>193.15</var>relating to the payment of taxes, assessments, fees, auditing costs, and utility payments;<br />
         		<a id="pl.193.16"></a><var>193.16</var>&nbsp;&nbsp;&nbsp;&nbsp;(B) "property taxes" excludes the state general tax;<br />
         		<a id="pl.193.17"></a><var>193.17</var>&nbsp;&nbsp;&nbsp;&nbsp;(C) a "nonprofit community service oriented organization" means any corporation, <br />
         		<a id="pl.193.18"></a><var>193.18</var>society, association, foundation, or institution organized and operated exclusively for <br />
         		<a id="pl.193.19"></a><var>193.19</var>charitable, religious, fraternal, civic, or educational purposes, and which is exempt from <br />
         		<a id="pl.193.20"></a><var>193.20</var>federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal <br />
         		<a id="pl.193.21"></a><var>193.21</var>Revenue Code; and<br />
         		<a id="pl.193.22"></a><var>193.22</var>&nbsp;&nbsp;&nbsp;&nbsp;(D) "revenue-producing activities" shall include but not be limited to property or that <br />
         		<a id="pl.193.23"></a><var>193.23</var>portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt <br />
         		<a id="pl.193.24"></a><var>193.24</var>liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling <br />
         		<a id="pl.193.25"></a><var>193.25</var>alley, a retail store, gambling conducted by organizations licensed under chapter 349, an <br />
         		<a id="pl.193.26"></a><var>193.26</var>insurance business, or office or other space leased or rented to a lessee who conducts a <br />
         		<a id="pl.193.27"></a><var>193.27</var>for-profit enterprise on the premises.<br />
         		<a id="pl.193.28"></a><var>193.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Any portion of the property not qualifying under either item (i) or (ii) is class 3a. <br />
         		<a id="pl.193.29"></a><var>193.29</var>The use of the property for social events open exclusively to members and their guests <br />
         		<a id="pl.193.30"></a><var>193.30</var>for periods of less than 24 hours, when an admission is not charged nor any revenues are <br />
         		<a id="pl.193.31"></a><var>193.31</var>received by the organization shall not be considered a revenue-producing activity.<br />
         		<a id="pl.193.32"></a><var>193.32</var>&nbsp;&nbsp;&nbsp;&nbsp;The organization shall maintain records of its charitable contributions and donations <br />
         		<a id="pl.193.33"></a><var>193.33</var>and of public meetings and events held on the property and make them available upon <br />
         		<a id="pl.193.34"></a><var>193.34</var>request any time to the assessor to ensure eligibility. An organization meeting the <br />
         		<a id="pl.193.35"></a><var>193.35</var>requirement under item (ii) must file an application by May 1 with the assessor for <br />
         		<a id="pl.194.1"></a><var>194.1</var>eligibility for the current year's assessment. The commissioner shall prescribe a uniform <br />
         		<a id="pl.194.2"></a><var>194.2</var>application form and instructions;<br />
         		<a id="pl.194.3"></a><var>194.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) postsecondary student housing of not more than one acre of land that is owned by <br />
         		<a id="pl.194.4"></a><var>194.4</var>a nonprofit corporation organized under chapter 317A and is used exclusively by a student <br />
         		<a id="pl.194.5"></a><var>194.5</var>cooperative, sorority, or fraternity for on-campus housing or housing located within two <br />
         		<a id="pl.194.6"></a><var>194.6</var>miles of the border of a college campus;<br />
         		<a id="pl.194.7"></a><var>194.7</var>&nbsp;&nbsp;&nbsp;&nbsp;(5)(i) manufactured home parks as defined in section 
         <statute_ref>327.14, subdivision 3</statute_ref>, <br />
         		<a id="pl.194.8"></a><var>194.8</var>excluding manufactured home parks described in section 
         <statute_ref>273.124, subdivision 3a</statute_ref>, and (ii) <br />
         		<a id="pl.194.9"></a><var>194.9</var>manufactured home parks as defined in section 
         <statute_ref>327.14, subdivision 3</statute_ref>, that are described in <br />
         		<a id="pl.194.10"></a><var>194.10</var>section 
         <statute_ref>273.124, subdivision 3a</statute_ref>;<br />
         		<a id="pl.194.11"></a><var>194.11</var>&nbsp;&nbsp;&nbsp;&nbsp;(6) real property that is actively and exclusively devoted to indoor fitness, health, <br />
         		<a id="pl.194.12"></a><var>194.12</var>social, recreational, and related uses, is owned and operated by a not-for-profit corporation, <br />
         		<a id="pl.194.13"></a><var>194.13</var>and is located within the metropolitan area as defined in section 
         <statute_ref>473.121, subdivision 2</statute_ref>;<br />
         		<a id="pl.194.14"></a><var>194.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(7) a leased or privately owned noncommercial aircraft storage hangar not exempt <br />
         		<a id="pl.194.15"></a><var>194.15</var>under section 
         <statute_ref>272.01, subdivision 2</statute_ref>, and the land on which it is located, provided that:<br />
         		<a id="pl.194.16"></a><var>194.16</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) the land is on an airport owned or operated by a city, town, county, Metropolitan <br />
         		<a id="pl.194.17"></a><var>194.17</var>Airports Commission, or group thereof; and<br />
         		<a id="pl.194.18"></a><var>194.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) the land lease, or any ordinance or signed agreement restricting the use of the <br />
         		<a id="pl.194.19"></a><var>194.19</var>leased premise, prohibits commercial activity performed at the hangar.<br />
         		<a id="pl.194.20"></a><var>194.20</var>&nbsp;&nbsp;&nbsp;&nbsp;If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must <br />
         		<a id="pl.194.21"></a><var>194.21</var>be filed by the new owner with the assessor of the county where the property is located <br />
         		<a id="pl.194.22"></a><var>194.22</var>within 60 days of the sale;<br />
         		<a id="pl.194.23"></a><var>194.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(8) a privately owned noncommercial aircraft storage hangar not exempt under <br />
         		<a id="pl.194.24"></a><var>194.24</var>section 
         <statute_ref>272.01, subdivision 2</statute_ref>, and the land on which it is located, provided that:<br />
         		<a id="pl.194.25"></a><var>194.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) the land abuts a public airport; and<br />
         		<a id="pl.194.26"></a><var>194.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) the owner of the aircraft storage hangar provides the assessor with a signed <br />
         		<a id="pl.194.27"></a><var>194.27</var>agreement restricting the use of the premises, prohibiting commercial use or activity <br />
         		<a id="pl.194.28"></a><var>194.28</var>performed at the hangar; and<br />
         		<a id="pl.194.29"></a><var>194.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(9) residential real estate, a portion of which is used by the owner for homestead <br />
         		<a id="pl.194.30"></a><var>194.30</var>purposes, and that is also a place of lodging, if all of the following criteria are met:<br />
         		<a id="pl.194.31"></a><var>194.31</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) rooms are provided for rent to transient guests that generally stay for periods <br />
         		<a id="pl.194.32"></a><var>194.32</var>of 14 or fewer days;<br />
         		<a id="pl.194.33"></a><var>194.33</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) meals are provided to persons who rent rooms, the cost of which is incorporated <br />
         		<a id="pl.194.34"></a><var>194.34</var>in the basic room rate;<br />
         		<a id="pl.194.35"></a><var>194.35</var>&nbsp;&nbsp;&nbsp;&nbsp;(iii) meals are not provided to the general public except for special events on fewer <br />
         		<a id="pl.194.36"></a><var>194.36</var>than seven days in the calendar year preceding the year of the assessment; and<br />
         		<a id="pl.195.1"></a><var>195.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(iv) the owner is the operator of the property.<br />
         		<a id="pl.195.2"></a><var>195.2</var>&nbsp;&nbsp;&nbsp;&nbsp;The market value subject to the 4c classification under this clause is limited to <br />
         		<a id="pl.195.3"></a><var>195.3</var>five rental units. Any rental units on the property in excess of five, must be valued and <br />
         		<a id="pl.195.4"></a><var>195.4</var>assessed as class 3a. The portion of the property used for purposes of a homestead by the <br />
         		<a id="pl.195.5"></a><var>195.5</var>owner must be classified as class 1a property under subdivision 22;<br />
         		<a id="pl.195.6"></a><var>195.6</var>&nbsp;&nbsp;&nbsp;&nbsp;(10) real property up to a maximum of three acres and operated as a restaurant <br />
         		<a id="pl.195.7"></a><var>195.7</var>as defined under section 
         <statute_ref>157.15, subdivision 12</statute_ref>, provided it: (A) is located on a lake <br />
         		<a id="pl.195.8"></a><var>195.8</var>as defined under section 
         <statute_ref>103G.005, subdivision 15</statute_ref>, paragraph (a), clause (3); and (B) <br />
         		<a id="pl.195.9"></a><var>195.9</var>is either devoted to commercial purposes for not more than 250 consecutive days, or <br />
         		<a id="pl.195.10"></a><var>195.10</var>receives at least 60 percent of its annual gross receipts from business conducted during <br />
         		<a id="pl.195.11"></a><var>195.11</var>four consecutive months. Gross receipts from the sale of alcoholic beverages must be <br />
         		<a id="pl.195.12"></a><var>195.12</var>included in determining the property's qualification under subitem (B). The property's <br />
         		<a id="pl.195.13"></a><var>195.13</var>primary business must be as a restaurant and not as a bar. Gross receipts from gift shop <br />
         		<a id="pl.195.14"></a><var>195.14</var>sales located on the premises must be excluded. Owners of real property desiring 4c <br />
         		<a id="pl.195.15"></a><var>195.15</var>classification under this clause must submit an annual declaration to the assessor by <br />
         		<a id="pl.195.16"></a><var>195.16</var>February 1 of the current assessment year, based on the property's relevant information for <br />
         		<a id="pl.195.17"></a><var>195.17</var>the preceding assessment year;<br />
         		<a id="pl.195.18"></a><var>195.18</var>(11) lakeshore and riparian property and adjacent land, not to exceed six acres, used <br />
         		<a id="pl.195.19"></a><var>195.19</var>as a marina, as defined in section 
         <statute_ref>86A.20, subdivision 5</statute_ref>, which is made accessible to <br />
         		<a id="pl.195.20"></a><var>195.20</var>the public and devoted to recreational use for marina services. The marina owner must <br />
         		<a id="pl.195.21"></a><var>195.21</var>annually provide evidence to the assessor that it provides services, including lake or river <br />
         		<a id="pl.195.22"></a><var>195.22</var>access to the public by means of an access ramp or other facility that is either located on <br />
         		<a id="pl.195.23"></a><var>195.23</var>the property of the marina or at a publicly owned site that abuts the property of the marina. <br />
         		<a id="pl.195.24"></a><var>195.24</var>No more than 800 feet of lakeshore may be included in this classification. Buildings used <br />
         		<a id="pl.195.25"></a><var>195.25</var>in conjunction with a marina for marina services, including but not limited to buildings <br />
         		<a id="pl.195.26"></a><var>195.26</var>used to provide food and beverage services, fuel, boat repairs, or the sale of bait or fishing <br />
         		<a id="pl.195.27"></a><var>195.27</var>tackle, are classified as class 3a property; and<br />
         		<a id="pl.195.28"></a><var>195.28</var>(12) real and personal property devoted to noncommercial temporary and seasonal <br />
         		<a id="pl.195.29"></a><var>195.29</var>residential occupancy for recreation purposes.<br />
         		<a id="pl.195.30"></a><var>195.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Class 4c property has a class rate of 1.5 percent of market value, except that (i) each <br />
         		<a id="pl.195.31"></a><var>195.31</var>parcel of noncommercial seasonal residential recreational property under clause (12) <br />
         		<a id="pl.195.32"></a><var>195.32</var>has the same class rates as class 4bb property, (ii) manufactured home parks assessed <br />
         		<a id="pl.195.33"></a><var>195.33</var>under clause (5), item (i), have the same class rate as class 4b property, and the market <br />
         		<a id="pl.195.34"></a><var>195.34</var>value of manufactured home parks assessed under clause (5), item (ii), has the same class <br />
         		<a id="pl.195.35"></a><var>195.35</var>rate as class 4d property has a classification rate of 0.75 percent if more than 50 percent <br />
         		<a id="pl.195.36"></a><var>195.36</var>of the lots in the park are occupied by shareholders in the cooperative corporation or <br />
         		<a id="pl.196.1"></a><var>196.1</var>association and a class rate of one percent if 50 percent or less of the lots are so occupied, <br />
         		<a id="pl.196.2"></a><var>196.2</var>(iii) commercial-use seasonal residential recreational property and marina recreational <br />
         		<a id="pl.196.3"></a><var>196.3</var>land as described in clause (11), has a class rate of one percent for the first $500,000 of <br />
         		<a id="pl.196.4"></a><var>196.4</var>market value, and 1.25 percent for the remaining market value, (iv) the market value of <br />
         		<a id="pl.196.5"></a><var>196.5</var>property described in clause (4) has a class rate of one percent, (v) the market value of <br />
         		<a id="pl.196.6"></a><var>196.6</var>property described in clauses (2), (6), and (10) has a class rate of 1.25 percent, and (vi) <br />
         		<a id="pl.196.7"></a><var>196.7</var>that portion of the market value of property in clause (9) qualifying for class 4c property <br />
         		<a id="pl.196.8"></a><var>196.8</var>has a class rate of 1.25 percent.<br />
         		<a id="pl.196.9"></a><var>196.9</var>&nbsp;&nbsp;&nbsp;&nbsp;(e) Class 4d property is qualifying low-income rental housing certified to the assessor <br />
         		<a id="pl.196.10"></a><var>196.10</var>by the Housing Finance Agency under section 
         <statute_ref>273.128, subdivision 3</statute_ref>. If only a portion <br />
         		<a id="pl.196.11"></a><var>196.11</var>of the units in the building qualify as low-income rental housing units as certified under <br />
         		<a id="pl.196.12"></a><var>196.12</var>section 
         <statute_ref>273.128, subdivision 3</statute_ref>, only the proportion of qualifying units to the total number <br />
         		<a id="pl.196.13"></a><var>196.13</var>of units in the building qualify for class 4d. The remaining portion of the building shall be <br />
         		<a id="pl.196.14"></a><var>196.14</var>classified by the assessor based upon its use. Class 4d also includes the same proportion of <br />
         		<a id="pl.196.15"></a><var>196.15</var>land as the qualifying low-income rental housing units are to the total units in the building. <br />
         		<a id="pl.196.16"></a><var>196.16</var>For all properties qualifying as class 4d, the market value determined by the assessor must <br />
         		<a id="pl.196.17"></a><var>196.17</var>be based on the normal approach to value using normal unrestricted rents.<br />
         		<a id="pl.196.18"></a><var>196.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(f) The first tier of market value of class 4d property has a class rate of 0.75 percent. <br />
         		<a id="pl.196.19"></a><var>196.19</var>The remaining value of class 4d property has a class rate of 0.25 percent. For the purposes <br />
         		<a id="pl.196.20"></a><var>196.20</var>of this paragraph, the "first tier of market value of class 4d property" means the market <br />
         		<a id="pl.196.21"></a><var>196.21</var>value of each housing unit up to the first tier limit. For the purposes of this paragraph, all <br />
         		<a id="pl.196.22"></a><var>196.22</var>class 4d property value must be assigned to individual housing units. The first tier limit is <br />
         		<a id="pl.196.23"></a><var>196.23</var>$100,000 for assessment year 2014. For subsequent years, the limit is adjusted each year <br />
         		<a id="pl.196.24"></a><var>196.24</var>by the average statewide change in estimated market value of property classified as class 4a <br />
         		<a id="pl.196.25"></a><var>196.25</var>and 4d under this section for the previous assessment year, excluding valuation change due <br />
         		<a id="pl.196.26"></a><var>196.26</var>to new construction, rounded to the nearest $1,000, provided, however, that the limit may <br />
         		<a id="pl.196.27"></a><var>196.27</var>never be less than $100,000. Beginning with assessment year 2015, the commissioner of <br />
         		<a id="pl.196.28"></a><var>196.28</var>revenue must certify the limit for each assessment year by November 1 of the previous year.<br />
         		<a id="pl.196.29"></a><var>196.29</var><b>EFFECTIVE DATE.</b>This section is effective beginning with assessment year 2014.<br />
         		<br />
         		<a id="bill.10.5.0"></a><a id="pl.196.30"></a><var>196.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 5. Minnesota Statutes 2013 Supplement, section 273.1325, subdivision 1, is <br />
         		<a id="pl.196.31"></a><var>196.31</var>amended to read:<br />
         		<a id="pl.196.32"></a><var>196.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Computation.</b> The Department of Revenue must annually conduct <br />
         		<a id="pl.196.33"></a><var>196.33</var>an assessment/sales ratio study of the taxable property in each county, city, town, and <br />
         		<a id="pl.196.34"></a><var>196.34</var>school district in accordance with the procedures in subdivisions 2 and 3. Based upon the <br />
         		<a id="pl.196.35"></a><var>196.35</var>results of this assessment/sales ratio study, the Department of Revenue must determine <br />
         		<a id="pl.197.1"></a><var>197.1</var>an equalized net tax capacity for the various classes of taxable property in each taxing <br />
         		<a id="pl.197.2"></a><var>197.2</var>district, the aggregate of which is designated as the adjusted net tax capacity. The adjusted <br />
         		<a id="pl.197.3"></a><var>197.3</var>net tax capacity must be reduced by the captured tax capacity of tax increment districts <br />
         		<a id="pl.197.4"></a><var>197.4</var>under section 
         <statute_ref>469.177, subdivision 2</statute_ref>, fiscal disparities contribution tax capacities under <br />
         		<a id="pl.197.5"></a><var>197.5</var>sections 
         <statute_ref>276A.06</statute_ref> and 
         <statute_ref>473F.08</statute_ref>, and the tax capacity of transmission lines required to be <br />
         		<a id="pl.197.6"></a><var>197.6</var>subtracted from the local tax base under section 
         <statute_ref>273.425</statute_ref>; and increased by fiscal disparities <br />
         		<a id="pl.197.7"></a><var>197.7</var>distribution tax capacities under sections 
         <statute_ref>276A.06</statute_ref> and 
         <statute_ref>473F.08</statute_ref>. The adjusted net tax <br />
         		<a id="pl.197.8"></a><var>197.8</var>capacities shall be determined using the net tax capacity percentages in effect for the <br />
         		<a id="pl.197.9"></a><var>197.9</var>assessment year following the assessment year of the study. The Department of Revenue <br />
         		<a id="pl.197.10"></a><var>197.10</var>must make whatever estimates are necessary to account for changes in the classification <br />
         		<a id="pl.197.11"></a><var>197.11</var>system. The Department of Revenue may incur the expense necessary to make the <br />
         		<a id="pl.197.12"></a><var>197.12</var>determinations. The commissioner of revenue may reimburse any county or governmental <br />
         		<a id="pl.197.13"></a><var>197.13</var>official for requested services performed in ascertaining the adjusted net tax capacity. On <br />
         		<a id="pl.197.14"></a><var>197.14</var>or before March 15 annually, the Department of Revenue shall file with the chair of the <br />
         		<a id="pl.197.15"></a><var>197.15</var>Tax Committee of the house of representatives and the chair of the Committee on Taxes <br />
         		<a id="pl.197.16"></a><var>197.16</var>and Tax laws of the senate a report of adjusted net tax capacities for school districts. <br />
         		<a id="pl.197.17"></a><var>197.17</var>On or before June 15 30 annually, the Department of Revenue shall file its final report <br />
         		<a id="pl.197.18"></a><var>197.18</var>on the adjusted net tax capacities for school districts established by the previous year's <br />
         		<a id="pl.197.19"></a><var>197.19</var>assessments and the current year's net tax capacity percentages with the commissioner of <br />
         		<a id="pl.197.20"></a><var>197.20</var>education and each county auditor for those school districts for which the auditor has the <br />
         		<a id="pl.197.21"></a><var>197.21</var>responsibility for determination of local tax rates. A copy of the report so filed shall be <br />
         		<a id="pl.197.22"></a><var>197.22</var>mailed to the clerk of each school district involved and to the county assessor or supervisor <br />
         		<a id="pl.197.23"></a><var>197.23</var>of assessments of the county or counties in which each school district is located.<br />
         		<a id="pl.197.24"></a><var>197.24</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2014.<br />
         		<br />
         		<a id="bill.10.6.0"></a><a id="pl.197.25"></a><var>197.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 6. Minnesota Statutes 2012, section 273.33, subdivision 2, is amended to read:<br />
         		<a id="pl.197.26"></a><var>197.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Listing and assessment by commissioner.</b> The personal property, <br />
         		<a id="pl.197.27"></a><var>197.27</var>consisting of the pipeline system of mains, pipes, and equipment attached thereto, of <br />
         		<a id="pl.197.28"></a><var>197.28</var>pipeline companies and others engaged in the operations or business of transporting natural <br />
         		<a id="pl.197.29"></a><var>197.29</var>gas, gasoline, crude oil, or other petroleum products by pipelines, shall be listed with and <br />
         		<a id="pl.197.30"></a><var>197.30</var>assessed by the commissioner of revenue and the values provided to the city or county <br />
         		<a id="pl.197.31"></a><var>197.31</var>assessor by order. This subdivision shall not apply to the assessment of the products <br />
         		<a id="pl.197.32"></a><var>197.32</var>transported through the pipelines nor to the lines of local commercial gas companies <br />
         		<a id="pl.197.33"></a><var>197.33</var>engaged primarily in the business of distributing gas to consumers at retail nor to pipelines <br />
         		<a id="pl.197.34"></a><var>197.34</var>used by the owner thereof to supply natural gas or other petroleum products exclusively <br />
         		<a id="pl.197.35"></a><var>197.35</var>for such owner's own consumption and not for resale to others. If more than 85 percent <br />
         		<a id="pl.198.1"></a><var>198.1</var>of the natural gas or other petroleum products actually transported over the pipeline is <br />
         		<a id="pl.198.2"></a><var>198.2</var>used for the owner's own consumption and not for resale to others, then this subdivision <br />
         		<a id="pl.198.3"></a><var>198.3</var>shall not apply; provided, however, that in that event, the pipeline shall be assessed in <br />
         		<a id="pl.198.4"></a><var>198.4</var>proportion to the percentage of gas actually transported over such pipeline that is not used <br />
         		<a id="pl.198.5"></a><var>198.5</var>for the owner's own consumption. On or before August 1, the commissioner shall certify <br />
         		<a id="pl.198.6"></a><var>198.6</var>to the auditor of each county, the amount of such personal property assessment against <br />
         		<a id="pl.198.7"></a><var>198.7</var>each company in each district in which such property is located. If the commissioner <br />
         		<a id="pl.198.8"></a><var>198.8</var>determines that the amount of personal property assessment certified on or before August <br />
         		<a id="pl.198.9"></a><var>198.9</var>1 is in error, the commissioner may issue a corrected certification on or before October 1.<br />
         		<a id="pl.198.10"></a><var>198.10</var> The commissioner may correct errors that are merely clerical in nature until December 31.<br />
         		<a id="pl.198.11"></a><var>198.11</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.10.7.0"></a><a id="pl.198.12"></a><var>198.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 7. Minnesota Statutes 2012, section 273.37, subdivision 2, is amended to read:<br />
         		<a id="pl.198.13"></a><var>198.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Listing and assessment by commissioner.</b> Transmission lines of less <br />
         		<a id="pl.198.14"></a><var>198.14</var>than 69 kv, transmission lines of 69 kv and above located in an unorganized township, <br />
         		<a id="pl.198.15"></a><var>198.15</var>and distribution lines, and equipment attached thereto, having a fixed situs outside the <br />
         		<a id="pl.198.16"></a><var>198.16</var>corporate limits of cities except distribution lines taxed as provided in sections 
         <statute_ref>273.40 <br />
            		
         </statute_ref><a id="pl.198.17"></a><var>198.17</var>and 
         <statute_ref>273.41</statute_ref>, shall be listed with and assessed by the commissioner of revenue in the <br />
         		<a id="pl.198.18"></a><var>198.18</var>county where situated and the values provided to the city or county assessor by order. <br />
         		<a id="pl.198.19"></a><var>198.19</var>The commissioner shall assess such property at the percentage of market value fixed by <br />
         		<a id="pl.198.20"></a><var>198.20</var>law; and, on or before August 1, shall certify to the auditor of each county in which <br />
         		<a id="pl.198.21"></a><var>198.21</var>such property is located the amount of the assessment made against each company and <br />
         		<a id="pl.198.22"></a><var>198.22</var>person owning such property. If the commissioner determines that the amount of the <br />
         		<a id="pl.198.23"></a><var>198.23</var>assessment certified on or before August 1 is in error, the commissioner may issue a <br />
         		<a id="pl.198.24"></a><var>198.24</var>corrected certification on or before October 1. The commissioner may correct errors that <br />
         		<a id="pl.198.25"></a><var>198.25</var>are merely clerical in nature until December 31.<br />
         		<a id="pl.198.26"></a><var>198.26</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.10.8.0"></a><a id="pl.198.27"></a><var>198.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 8. Minnesota Statutes 2012, section 273.3711, is amended to read:<br />
         		<a id="pl.198.28"></a><var>198.28</var><b>273.3711 RECOMMENDED AND ORDERED VALUES.</b><br />
         		<a id="pl.198.29"></a><var>198.29</var>&nbsp;&nbsp;&nbsp;&nbsp;For purposes of sections 
         <statute_ref>273.33</statute_ref>, 
         <statute_ref>273.35</statute_ref>, 
         <statute_ref>273.36</statute_ref>, 
         <statute_ref>273.37</statute_ref>, 
         <statute_ref>273.371</statute_ref>, and 
         <statute_ref>273.372</statute_ref>, <br />
         		<a id="pl.198.30"></a><var>198.30</var>all values not required to be listed and assessed by the commissioner of revenue are <br />
         		<a id="pl.198.31"></a><var>198.31</var>recommended values. If the commissioner provides recommended values, the values must <br />
         		<a id="pl.198.32"></a><var>198.32</var>be certified to the auditor of each county in which the property is located on or before <br />
         		<a id="pl.198.33"></a><var>198.33</var>August 1. If the commissioner determines that the certified recommended value is in <br />
         		<a id="pl.199.1"></a><var>199.1</var>error the commissioner may issue a corrected certification on or before October 1. The <br />
         		<a id="pl.199.2"></a><var>199.2</var>commissioner may correct errors that are merely clerical in nature until December 31.<br />
         		<a id="pl.199.3"></a><var>199.3</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.10.9.0"></a><a id="pl.199.4"></a><var>199.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 9. Minnesota Statutes 2012, section 274.01, subdivision 1, is amended to read:<br />
         		<a id="pl.199.5"></a><var>199.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Ordinary board; meetings, deadlines, grievances.</b> (a) The town <br />
         		<a id="pl.199.6"></a><var>199.6</var>board of a town, or the council or other governing body of a city, is the board of appeal <br />
         		<a id="pl.199.7"></a><var>199.7</var>and equalization except (1) in cities whose charters provide for a board of equalization or <br />
         		<a id="pl.199.8"></a><var>199.8</var>(2) in any city or town that has transferred its local board of review power and duties to <br />
         		<a id="pl.199.9"></a><var>199.9</var>the county board as provided in subdivision 3. The county assessor shall fix a day and <br />
         		<a id="pl.199.10"></a><var>199.10</var>time when the board or the board of equalization shall meet in the assessment districts <br />
         		<a id="pl.199.11"></a><var>199.11</var>of the county. Notwithstanding any law or city charter to the contrary, a city board of <br />
         		<a id="pl.199.12"></a><var>199.12</var>equalization shall be referred to as a board of appeal and equalization. On or before <br />
         		<a id="pl.199.13"></a><var>199.13</var>February 15 of each year the assessor shall give written notice of the time to the city or <br />
         		<a id="pl.199.14"></a><var>199.14</var>town clerk. Notwithstanding the provisions of any charter to the contrary, the meetings <br />
         		<a id="pl.199.15"></a><var>199.15</var>must be held between April 1 and May 31 each year. The clerk shall give published and <br />
         		<a id="pl.199.16"></a><var>199.16</var>posted notice of the meeting at least ten days before the date of the meeting.<br />
         		<a id="pl.199.17"></a><var>199.17</var>&nbsp;&nbsp;&nbsp;&nbsp;The board shall meet either at a central location within the county or at the office of <br />
         		<a id="pl.199.18"></a><var>199.18</var>the clerk to review the assessment and classification of property in the town or city. No <br />
         		<a id="pl.199.19"></a><var>199.19</var>changes in valuation or classification which are intended to correct errors in judgment by <br />
         		<a id="pl.199.20"></a><var>199.20</var>the county assessor may be made by the county assessor after the board has adjourned <br />
         		<a id="pl.199.21"></a><var>199.21</var>in those cities or towns that hold a local board of review; however, corrections of errors <br />
         		<a id="pl.199.22"></a><var>199.22</var>that are merely clerical in nature or changes that extend homestead treatment to property <br />
         		<a id="pl.199.23"></a><var>199.23</var>are permitted after adjournment until the tax extension date for that assessment year. The <br />
         		<a id="pl.199.24"></a><var>199.24</var>changes must be fully documented and maintained in the assessor's office and must be <br />
         		<a id="pl.199.25"></a><var>199.25</var>available for review by any person. A copy of the changes made during this period in <br />
         		<a id="pl.199.26"></a><var>199.26</var>those cities or towns that hold a local board of review must be sent to the county board no <br />
         		<a id="pl.199.27"></a><var>199.27</var>later than December 31 of the assessment year.<br />
         		<a id="pl.199.28"></a><var>199.28</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) The board shall determine whether the taxable property in the town or city has <br />
         		<a id="pl.199.29"></a><var>199.29</var>been properly placed on the list and properly valued by the assessor. If real or personal <br />
         		<a id="pl.199.30"></a><var>199.30</var>property has been omitted, the board shall place it on the list with its market value, and <br />
         		<a id="pl.199.31"></a><var>199.31</var>correct the assessment so that each tract or lot of real property, and each article, parcel, <br />
         		<a id="pl.199.32"></a><var>199.32</var>or class of personal property, is entered on the assessment list at its market value. No <br />
         		<a id="pl.199.33"></a><var>199.33</var>assessment of the property of any person may be raised unless the person has been <br />
         		<a id="pl.199.34"></a><var>199.34</var>duly notified of the intent of the board to do so. On application of any person feeling <br />
         		<a id="pl.199.35"></a><var>199.35</var>aggrieved, the board shall review the assessment or classification, or both, and correct <br />
         		<a id="pl.200.1"></a><var>200.1</var>it as appears just. The board may not make an individual market value adjustment or <br />
         		<a id="pl.200.2"></a><var>200.2</var>classification change that would benefit the property if the owner or other person having <br />
         		<a id="pl.200.3"></a><var>200.3</var>control over the property has refused the assessor access to inspect the property and the <br />
         		<a id="pl.200.4"></a><var>200.4</var>interior of any buildings or structures as provided in section 
         <statute_ref>273.20</statute_ref>. A board member <br />
         		<a id="pl.200.5"></a><var>200.5</var>shall not participate in any actions of the board which result in market value adjustments <br />
         		<a id="pl.200.6"></a><var>200.6</var>or classification changes to property owned by the board member, the spouse, parent, <br />
         		<a id="pl.200.7"></a><var>200.7</var>stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, nephew, <br />
         		<a id="pl.200.8"></a><var>200.8</var>or niece of a board member, or property in which a board member has a financial interest. <br />
         		<a id="pl.200.9"></a><var>200.9</var>The relationship may be by blood or marriage.<br />
         		<a id="pl.200.10"></a><var>200.10</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) A local board may reduce assessments upon petition of the taxpayer but the total <br />
         		<a id="pl.200.11"></a><var>200.11</var>reductions must not reduce the aggregate assessment made by the county assessor by more <br />
         		<a id="pl.200.12"></a><var>200.12</var>than one percent. If the total reductions would lower the aggregate assessments made by <br />
         		<a id="pl.200.13"></a><var>200.13</var>the county assessor by more than one percent, none of the adjustments may be made. The <br />
         		<a id="pl.200.14"></a><var>200.14</var>assessor shall correct any clerical errors or double assessments discovered by the board <br />
         		<a id="pl.200.15"></a><var>200.15</var>without regard to the one percent limitation.<br />
         		<a id="pl.200.16"></a><var>200.16</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) A local board does not have authority to grant an exemption or to order property <br />
         		<a id="pl.200.17"></a><var>200.17</var>removed from the tax rolls.<br />
         		<a id="pl.200.18"></a><var>200.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(e) A majority of the members may act at the meeting, and adjourn from day to day <br />
         		<a id="pl.200.19"></a><var>200.19</var>until they finish hearing the cases presented. The assessor shall attend, with the assessment <br />
         		<a id="pl.200.20"></a><var>200.20</var>books and papers, and take part in the proceedings, but must not vote. The county assessor, <br />
         		<a id="pl.200.21"></a><var>200.21</var>or an assistant delegated by the county assessor shall attend the meetings. The board shall <br />
         		<a id="pl.200.22"></a><var>200.22</var>list separately, on a form appended to the assessment book, all omitted property added <br />
         		<a id="pl.200.23"></a><var>200.23</var>to the list by the board and all items of property increased or decreased, with the market <br />
         		<a id="pl.200.24"></a><var>200.24</var>value of each item of property, added or changed by the board, placed opposite the item. <br />
         		<a id="pl.200.25"></a><var>200.25</var>The county assessor shall enter all changes made by the board in the assessment book.<br />
         		<a id="pl.200.26"></a><var>200.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(f) Except as provided in subdivision 3, if a person fails to appear in person, by <br />
         		<a id="pl.200.27"></a><var>200.27</var>counsel, or by written communication before the board after being duly notified of the <br />
         		<a id="pl.200.28"></a><var>200.28</var>board's intent to raise the assessment of the property, or if a person feeling aggrieved by an <br />
         		<a id="pl.200.29"></a><var>200.29</var>assessment or classification fails to apply for a review of the assessment or classification, <br />
         		<a id="pl.200.30"></a><var>200.30</var>the person may not appear before the county board of appeal and equalization for a review <br />
         		<a id="pl.200.31"></a><var>200.31</var>of the assessment or classification. This paragraph does not apply if an assessment was <br />
         		<a id="pl.200.32"></a><var>200.32</var>made after the local board meeting, as provided in section 
         <statute_ref>273.01</statute_ref>, or if the person can <br />
         		<a id="pl.200.33"></a><var>200.33</var>establish not having received notice of market value at least five days before the local <br />
         		<a id="pl.200.34"></a><var>200.34</var>board meeting.<br />
         		<a id="pl.200.35"></a><var>200.35</var>&nbsp;&nbsp;&nbsp;&nbsp;(g) The local board must complete its work and adjourn within 20 days from the <br />
         		<a id="pl.200.36"></a><var>200.36</var>time of convening stated in the notice of the clerk, unless a longer period is approved by <br />
         		<a id="pl.201.1"></a><var>201.1</var>the commissioner of revenue. No action taken after that date is valid. All complaints <br />
         		<a id="pl.201.2"></a><var>201.2</var>about an assessment or classification made after the meeting of the board must be heard <br />
         		<a id="pl.201.3"></a><var>201.3</var>and determined by the county board of equalization. A nonresident may, at any time, <br />
         		<a id="pl.201.4"></a><var>201.4</var>before the meeting of the board file written objections to an assessment or classification <br />
         		<a id="pl.201.5"></a><var>201.5</var>with the county assessor. The objections must be presented to the board at its meeting by <br />
         		<a id="pl.201.6"></a><var>201.6</var>the county assessor for its consideration.<br />
         		<a id="pl.201.7"></a><var>201.7</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.10.10.0"></a><a id="pl.201.8"></a><var>201.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 10. Minnesota Statutes 2012, section 274.014, subdivision 3, is amended to read:<br />
         		<a id="pl.201.9"></a><var>201.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Proof of compliance; transfer of duties.</b> (a) Any city or town that <br />
         		<a id="pl.201.10"></a><var>201.10</var>conducts local boards of appeal and equalization meetings must provide proof to the <br />
         		<a id="pl.201.11"></a><var>201.11</var>county assessor by December 1, 2006, and each year thereafter, February 1 that it is in <br />
         		<a id="pl.201.12"></a><var>201.12</var>compliance with the requirements of subdivision 2. Beginning in 2006, This notice must <br />
         		<a id="pl.201.13"></a><var>201.13</var>also verify that there was a quorum of voting members at each meeting of the board <br />
         		<a id="pl.201.14"></a><var>201.14</var>of appeal and equalization in the current previous year. A city or town that does not <br />
         		<a id="pl.201.15"></a><var>201.15</var>comply with these requirements is deemed to have transferred its board of appeal and <br />
         		<a id="pl.201.16"></a><var>201.16</var>equalization powers to the county beginning with the following current year's assessment <br />
         		<a id="pl.201.17"></a><var>201.17</var>and continuing unless the powers are reinstated under paragraph (c).<br />
         		<a id="pl.201.18"></a><var>201.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) The county shall notify the taxpayers when the board of appeal and equalization <br />
         		<a id="pl.201.19"></a><var>201.19</var>for a city or town has been transferred to the county under this subdivision and, prior to <br />
         		<a id="pl.201.20"></a><var>201.20</var>the meeting time of the county board of equalization, the county shall make available to <br />
         		<a id="pl.201.21"></a><var>201.21</var>those taxpayers a procedure for a review of the assessments, including, but not limited to, <br />
         		<a id="pl.201.22"></a><var>201.22</var>open book meetings. This alternate review process shall take place in April and May.<br />
         		<a id="pl.201.23"></a><var>201.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) A local board whose powers are transferred to the county under this subdivision <br />
         		<a id="pl.201.24"></a><var>201.24</var>may be reinstated by resolution of the governing body of the city or town and upon proof <br />
         		<a id="pl.201.25"></a><var>201.25</var>of compliance with the requirements of subdivision 2. The resolution and proofs must be <br />
         		<a id="pl.201.26"></a><var>201.26</var>provided to the county assessor by December 1 February 1 in order to be effective for <br />
         		<a id="pl.201.27"></a><var>201.27</var>the following year's assessment.<br />
         		<a id="pl.201.28"></a><var>201.28</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) A local board whose powers are transferred to the county under this subdivision <br />
         		<a id="pl.201.29"></a><var>201.29</var>may continue to employ a local assessor and is not deemed to have transferred its powers <br />
         		<a id="pl.201.30"></a><var>201.30</var>to make assessments.<br />
         		<a id="pl.201.31"></a><var>201.31</var><b>EFFECTIVE DATE.</b>This section is effective beginning with local boards of appeal <br />
         		<a id="pl.201.32"></a><var>201.32</var>and equalization meetings held after February 1, 2016.<br />
         		<br />
         		<a id="bill.10.11.0"></a><a id="pl.202.1"></a><var>202.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 11. Minnesota Statutes 2013 Supplement, section 423A.02, subdivision 3, is <br />
         		<a id="pl.202.2"></a><var>202.2</var>amended to read:<br />
         		<a id="pl.202.3"></a><var>202.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Reallocation of amortization state aid.</b> (a) Seventy percent of the <br />
         		<a id="pl.202.4"></a><var>202.4</var>difference between $5,720,000 and the current year amortization aid distributed under <br />
         		<a id="pl.202.5"></a><var>202.5</var>subdivision 1 that is not distributed for any reason to a municipality must be distributed <br />
         		<a id="pl.202.6"></a><var>202.6</var>by the commissioner of revenue according to this paragraph. The commissioner shall <br />
         		<a id="pl.202.7"></a><var>202.7</var>distribute 50 percent of the amounts derived under this paragraph to the Teachers <br />
         		<a id="pl.202.8"></a><var>202.8</var>Retirement Association, ten percent to the Duluth Teachers Retirement Fund Association, <br />
         		<a id="pl.202.9"></a><var>202.9</var>and 40 percent to the St. Paul Teachers Retirement Fund Association to fund the unfunded <br />
         		<a id="pl.202.10"></a><var>202.10</var>actuarial accrued liabilities of the respective funds. These payments must be made on July <br />
         		<a id="pl.202.11"></a><var>202.11</var>15 each fiscal year. If the St. Paul Teachers Retirement Fund Association or the Duluth <br />
         		<a id="pl.202.12"></a><var>202.12</var>Teachers Retirement Fund Association becomes fully funded, the association's eligibility <br />
         		<a id="pl.202.13"></a><var>202.13</var>for its portion of this aid ceases. Amounts remaining in the undistributed balance account <br />
         		<a id="pl.202.14"></a><var>202.14</var>at the end of the biennium if aid eligibility ceases cancel to the general fund.<br />
         		<a id="pl.202.15"></a><var>202.15</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) In order to receive amortization aid under paragraph (a), before June 30 annually <br />
         		<a id="pl.202.16"></a><var>202.16</var>Independent School District No. 625, St. Paul, must make an additional contribution of <br />
         		<a id="pl.202.17"></a><var>202.17</var>$800,000 each year to the St. Paul Teachers Retirement Fund Association.<br />
         		<a id="pl.202.18"></a><var>202.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) Thirty percent of the difference between $5,720,000 and the current year <br />
         		<a id="pl.202.19"></a><var>202.19</var>amortization aid under subdivision 1a 1 that is not distributed for any reason to a <br />
         		<a id="pl.202.20"></a><var>202.20</var>municipality must be distributed under section 
         <statute_ref>69.021, subdivision 7</statute_ref>, paragraph (d), as <br />
         		<a id="pl.202.21"></a><var>202.21</var>additional funding to support a minimum fire state aid amount for volunteer firefighter <br />
         		<a id="pl.202.22"></a><var>202.22</var>relief associations.<br />
         		<a id="pl.202.23"></a><var>202.23</var><b>EFFECTIVE DATE.</b>This section is effective retroactively from June 1, 2013.<br />
         		<br />
         		<a id="bill.10.12.0"></a><a id="pl.202.24"></a><var>202.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 12. <b>REVISOR'S INSTRUCTION.</b><br />
         		<a id="pl.202.25"></a><var>202.25</var>The revisor of statutes shall change the terms "class rate" or "class rates" to <br />
         		<a id="pl.202.26"></a><var>202.26</var>"classification rate" or "classification rates" or similar terms wherever they appear in <br />
         		<a id="pl.202.27"></a><var>202.27</var>Minnesota Statutes when the terms are being used to refer to the calculation of net tax <br />
         		<a id="pl.202.28"></a><var>202.28</var>capacity in the property tax system. The revisor can make changes to sentence structure <br />
         		<a id="pl.202.29"></a><var>202.29</var>to preserve the meaning of the text. The revisor shall make other changes in section and <br />
         		<a id="pl.202.30"></a><var>202.30</var>subdivision headnotes and in other terminology as necessary as a result of the enactment <br />
         		<a id="pl.202.31"></a><var>202.31</var>of this section. The Department of Revenue shall assist in making these corrections.<br />
         		<br />
         		<a id="bill.11.0.0"></a><div class="xtend_ce"><a id="pl.203.1"></a><var>203.1</var><b>ARTICLE 11</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.203.2"></a><var>203.2</var><b>DEPARTMENT OF REVENUE - TECHNICAL AND POLICY INCOME AND </b><br />
            		<a id="pl.203.3"></a><var>203.3</var><b>FRANCHISE, SALES AND USE, AND MISCELLANEOUS TAX PROVISIONS</b><br />
            		
         </div><br />
         		<a id="bill.11.1.0"></a><a id="pl.203.4"></a><var>203.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. Minnesota Statutes 2012, section 270C.34, subdivision 2, is amended to read:<br />
         		<a id="pl.203.5"></a><var>203.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Procedure.</b> (a) A request for abatement of penalty under subdivision 1 or <br />
         		<a id="pl.203.6"></a><var>203.6</var>section 
         <statute_ref>289A.60, subdivision 4</statute_ref>, or a request for abatement of interest or additional tax <br />
         		<a id="pl.203.7"></a><var>203.7</var>charge, must be filed with the commissioner within 60 days of the date the notice was <br />
         		<a id="pl.203.8"></a><var>203.8</var>mailed to the taxpayer's last known address, stating that a penalty has been imposed.<br />
         		<a id="pl.203.9"></a><var>203.9</var>(b) If the commissioner issues an order denying a request for abatement of penalty, <br />
         		<a id="pl.203.10"></a><var>203.10</var>interest, or additional tax charge, the taxpayer may file an administrative appeal as <br />
         		<a id="pl.203.11"></a><var>203.11</var>provided in section 
         <statute_ref>270C.35</statute_ref> or appeal to Tax Court as provided in section 
         <statute_ref>271.06</statute_ref>.<br />
         		<a id="pl.203.12"></a><var>203.12</var>(c) If the commissioner does not issue an order on the abatement request within <br />
         		<a id="pl.203.13"></a><var>203.13</var>60 days from the date the request is received, the taxpayer may appeal to Tax Court as <br />
         		<a id="pl.203.14"></a><var>203.14</var>provided in section 
         <statute_ref>271.06</statute_ref>.<br />
         		<a id="pl.203.15"></a><var>203.15</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.11.2.0"></a><a id="pl.203.16"></a><var>203.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. Minnesota Statutes 2012, section 270C.56, subdivision 3, is amended to read:<br />
         		<a id="pl.203.17"></a><var>203.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Procedure for assessment; claims for refunds.</b> (a) The commissioner <br />
         		<a id="pl.203.18"></a><var>203.18</var>may assess liability for the taxes described in subdivision 1 against a person liable <br />
         		<a id="pl.203.19"></a><var>203.19</var>under this section. The assessment may be based upon information available to the <br />
         		<a id="pl.203.20"></a><var>203.20</var>commissioner. It must be made within the prescribed period of limitations for assessing <br />
         		<a id="pl.203.21"></a><var>203.21</var>the underlying tax, or within one year after the date of an order assessing underlying <br />
         		<a id="pl.203.22"></a><var>203.22</var>tax, or within one year after the date of a final administrative or judicial determination, <br />
         		<a id="pl.203.23"></a><var>203.23</var>whichever period expires later. An order assessing personal liability under this section is <br />
         		<a id="pl.203.24"></a><var>203.24</var>reviewable under section 
         <statute_ref>270C.35</statute_ref> and is appealable to Tax Court.<br />
         		<a id="pl.203.25"></a><var>203.25</var>(b) If the time for appealing the order has expired and a payment is made by or <br />
         		<a id="pl.203.26"></a><var>203.26</var>collected from the person assessed on the order in excess of the amount lawfully due <br />
         		<a id="pl.203.27"></a><var>203.27</var>from that person of any portion of the liability shown on the order, a claim for refund <br />
         		<a id="pl.203.28"></a><var>203.28</var>may be made by that person within 120 days after any payment of the liability if the <br />
         		<a id="pl.203.29"></a><var>203.29</var>payment is within 3-1/2 years after the date the order was issued. Claims for refund under <br />
         		<a id="pl.203.30"></a><var>203.30</var>this paragraph are limited to the amount paid during the 120-day period. Any amounts <br />
         		<a id="pl.203.31"></a><var>203.31</var>collected under paragraph (c) after a claim for refund is filed in order to satisfy the unpaid <br />
         		<a id="pl.203.32"></a><var>203.32</var>balance of the assessment that is the subject of the claim shall be returned if the claim is <br />
         		<a id="pl.203.33"></a><var>203.33</var>allowed. There is no claim for refund available under this paragraph if the assessment has <br />
         		<a id="pl.203.34"></a><var>203.34</var>previously been the subject of an administrative or Tax Court appeal, or a denied claim <br />
         		<a id="pl.204.1"></a><var>204.1</var>for refund. The taxpayer may contest denial of the refund as provided in the procedures <br />
         		<a id="pl.204.2"></a><var>204.2</var>governing claims for refunds under section 
         <statute_ref>289A.50, subdivision 7</statute_ref>.<br />
         		<a id="pl.204.3"></a><var>204.3</var>(c) If a person has been assessed under this section for an amount for a given period <br />
         		<a id="pl.204.4"></a><var>204.4</var>and the time for appeal has expired, regardless of whether an action contesting denial of a <br />
         		<a id="pl.204.5"></a><var>204.5</var>claim for refund has been filed under paragraph (b), or there has been a final determination <br />
         		<a id="pl.204.6"></a><var>204.6</var>that the person is liable, collection action is not stayed pursuant to section 
         <statute_ref>270C.33, <br />
            		<a id="pl.204.7"></a><var>204.7</var>subdivision 5
         </statute_ref>, for that assessment or for subsequent assessments of additional amounts for <br />
         		<a id="pl.204.8"></a><var>204.8</var>the same person for the same period and tax type.<br />
         		<a id="pl.204.9"></a><var>204.9</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.11.3.0"></a><a id="pl.204.10"></a><var>204.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. Minnesota Statutes 2012, section 289A.18, subdivision 2, is amended to read:<br />
         		<a id="pl.204.11"></a><var>204.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Withholding returns, entertainer withholding returns, returns for </b><br />
         		<a id="pl.204.12"></a><var>204.12</var><b>withholding from payments to out-of-state contractors, and withholding returns </b><br />
         		<a id="pl.204.13"></a><var>204.13</var><b>from partnerships and S corporations.</b> (a) Withholding returns for the first, second,<br />
         		<a id="pl.204.14"></a><var>204.14</var> and third quarters are due on or before the last day of the month following the close of <br />
         		<a id="pl.204.15"></a><var>204.15</var>the quarterly period. However, if the return shows timely deposits in full payment of <br />
         		<a id="pl.204.16"></a><var>204.16</var>the taxes due for that period, the returns for the first, second, and third quarters may be <br />
         		<a id="pl.204.17"></a><var>204.17</var>filed on or before the tenth day of the second calendar month following the period. The <br />
         		<a id="pl.204.18"></a><var>204.18</var>return for the fourth quarter must be filed on or before the 28th day of the second calendar <br />
         		<a id="pl.204.19"></a><var>204.19</var>month following the period. An employer, in preparing a quarterly return, may take credit <br />
         		<a id="pl.204.20"></a><var>204.20</var>for deposits previously made for that quarter. Entertainer withholding tax returns are <br />
         		<a id="pl.204.21"></a><var>204.21</var>due within 30 days after each performance. Returns for withholding from payments to <br />
         		<a id="pl.204.22"></a><var>204.22</var>out-of-state contractors are due within 30 days after the payment to the contractor. Returns <br />
         		<a id="pl.204.23"></a><var>204.23</var>for withholding by partnerships are due on or before the due date specified for filing <br />
         		<a id="pl.204.24"></a><var>204.24</var>partnership returns. Returns for withholding by S corporations are due on or before the <br />
         		<a id="pl.204.25"></a><var>204.25</var>due date specified for filing corporate franchise tax returns.<br />
         		<a id="pl.204.26"></a><var>204.26</var>(b) A seasonal employer who provides notice in the form and manner prescribed <br />
         		<a id="pl.204.27"></a><var>204.27</var>by the commissioner before the end of the calendar quarter is not required to file a <br />
         		<a id="pl.204.28"></a><var>204.28</var>withholding tax return for periods of anticipated inactivity unless the employer pays wages <br />
         		<a id="pl.204.29"></a><var>204.29</var>during the period from which tax is withheld. For purposes of this paragraph, a seasonal <br />
         		<a id="pl.204.30"></a><var>204.30</var>employer is an employer that regularly, in the same one or more quarterly periods of each <br />
         		<a id="pl.204.31"></a><var>204.31</var>calendar year, pays no wages to employees.<br />
         		<a id="pl.204.32"></a><var>204.32</var><b>EFFECTIVE DATE.</b>(a) The amendments in paragraph (a) are effective for returns <br />
         		<a id="pl.204.33"></a><var>204.33</var>due after January 1, 2016.<br />
         		<a id="pl.205.1"></a><var>205.1</var>(b) The amendment adding paragraph (b) is effective for wages paid after December <br />
         		<a id="pl.205.2"></a><var>205.2</var>31, 2015.<br />
         		<br />
         		<a id="bill.11.4.0"></a><a id="pl.205.3"></a><var>205.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 4. Minnesota Statutes 2013 Supplement, section 290.191, subdivision 5, is <br />
         		<a id="pl.205.4"></a><var>205.4</var>amended to read:<br />
         		<a id="pl.205.5"></a><var>205.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Determination of sales factor.</b> For purposes of this section, the following <br />
         		<a id="pl.205.6"></a><var>205.6</var>rules apply in determining the sales factor.<br />
         		<a id="pl.205.7"></a><var>205.7</var>&nbsp;&nbsp;&nbsp;&nbsp;(a) The sales factor includes all sales, gross earnings, or receipts received in the <br />
         		<a id="pl.205.8"></a><var>205.8</var>ordinary course of the business, except that the following types of income are not included <br />
         		<a id="pl.205.9"></a><var>205.9</var>in the sales factor:<br />
         		<a id="pl.205.10"></a><var>205.10</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) interest;<br />
         		<a id="pl.205.11"></a><var>205.11</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) dividends;<br />
         		<a id="pl.205.12"></a><var>205.12</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) sales of capital assets as defined in section 1221 of the Internal Revenue Code;<br />
         		<a id="pl.205.13"></a><var>205.13</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) sales of property used in the trade or business, except sales of leased property of <br />
         		<a id="pl.205.14"></a><var>205.14</var>a type which is regularly sold as well as leased; and<br />
         		<a id="pl.205.15"></a><var>205.15</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) sales of debt instruments as defined in section 1275(a)(1) of the Internal Revenue <br />
         		<a id="pl.205.16"></a><var>205.16</var>Code or sales of stock.<br />
         		<a id="pl.205.17"></a><var>205.17</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) Sales of tangible personal property are made within this state if the property is <br />
         		<a id="pl.205.18"></a><var>205.18</var>received by a purchaser at a point within this state, and the taxpayer is taxable in this state,<br />
         		<a id="pl.205.19"></a><var>205.19</var> regardless of the f.o.b. point, other conditions of the sale, or the ultimate destination <br />
         		<a id="pl.205.20"></a><var>205.20</var>of the property.<br />
         		<a id="pl.205.21"></a><var>205.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) Tangible personal property delivered to a common or contract carrier or foreign <br />
         		<a id="pl.205.22"></a><var>205.22</var>vessel for delivery to a purchaser in another state or nation is a sale in that state or nation, <br />
         		<a id="pl.205.23"></a><var>205.23</var>regardless of f.o.b. point or other conditions of the sale.<br />
         		<a id="pl.205.24"></a><var>205.24</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding paragraphs (b) and (c), when intoxicating liquor, wine, <br />
         		<a id="pl.205.25"></a><var>205.25</var>fermented malt beverages, cigarettes, or tobacco products are sold to a purchaser who is <br />
         		<a id="pl.205.26"></a><var>205.26</var>licensed by a state or political subdivision to resell this property only within the state of <br />
         		<a id="pl.205.27"></a><var>205.27</var>ultimate destination, the sale is made in that state.<br />
         		<a id="pl.205.28"></a><var>205.28</var>&nbsp;&nbsp;&nbsp;&nbsp;(e) Sales made by or through a corporation that is qualified as a domestic <br />
         		<a id="pl.205.29"></a><var>205.29</var>international sales corporation under section 992 of the Internal Revenue Code are not <br />
         		<a id="pl.205.30"></a><var>205.30</var>considered to have been made within this state.<br />
         		<a id="pl.205.31"></a><var>205.31</var>&nbsp;&nbsp;&nbsp;&nbsp;(f) Sales, rents, royalties, and other income in connection with real property is <br />
         		<a id="pl.205.32"></a><var>205.32</var>attributed to the state in which the property is located.<br />
         		<a id="pl.205.33"></a><var>205.33</var>&nbsp;&nbsp;&nbsp;&nbsp;(g) Receipts from the lease or rental of tangible personal property, including finance <br />
         		<a id="pl.205.34"></a><var>205.34</var>leases and true leases, must be attributed to this state if the property is located in this <br />
         		<a id="pl.205.35"></a><var>205.35</var>state and to other states if the property is not located in this state. Receipts from the <br />
         		<a id="pl.206.1"></a><var>206.1</var>lease or rental of moving property including, but not limited to, motor vehicles, rolling <br />
         		<a id="pl.206.2"></a><var>206.2</var>stock, aircraft, vessels, or mobile equipment are included in the numerator of the receipts <br />
         		<a id="pl.206.3"></a><var>206.3</var>factor to the extent that the property is used in this state. The extent of the use of moving <br />
         		<a id="pl.206.4"></a><var>206.4</var>property is determined as follows:<br />
         		<a id="pl.206.5"></a><var>206.5</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) A motor vehicle is used wholly in the state in which it is registered.<br />
         		<a id="pl.206.6"></a><var>206.6</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) The extent that rolling stock is used in this state is determined by multiplying <br />
         		<a id="pl.206.7"></a><var>206.7</var>the receipts from the lease or rental of the rolling stock by a fraction, the numerator of <br />
         		<a id="pl.206.8"></a><var>206.8</var>which is the miles traveled within this state by the leased or rented rolling stock and the <br />
         		<a id="pl.206.9"></a><var>206.9</var>denominator of which is the total miles traveled by the leased or rented rolling stock.<br />
         		<a id="pl.206.10"></a><var>206.10</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) The extent that an aircraft is used in this state is determined by multiplying the <br />
         		<a id="pl.206.11"></a><var>206.11</var>receipts from the lease or rental of the aircraft by a fraction, the numerator of which is <br />
         		<a id="pl.206.12"></a><var>206.12</var>the number of landings of the aircraft in this state and the denominator of which is the <br />
         		<a id="pl.206.13"></a><var>206.13</var>total number of landings of the aircraft.<br />
         		<a id="pl.206.14"></a><var>206.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) The extent that a vessel, mobile equipment, or other mobile property is used in <br />
         		<a id="pl.206.15"></a><var>206.15</var>the state is determined by multiplying the receipts from the lease or rental of the property <br />
         		<a id="pl.206.16"></a><var>206.16</var>by a fraction, the numerator of which is the number of days during the taxable year the <br />
         		<a id="pl.206.17"></a><var>206.17</var>property was in this state and the denominator of which is the total days in the taxable year.<br />
         		<a id="pl.206.18"></a><var>206.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(h) Royalties and other income received for the use of or for the privilege of using <br />
         		<a id="pl.206.19"></a><var>206.19</var>intangible property, including patents, know-how, formulas, designs, processes, patterns, <br />
         		<a id="pl.206.20"></a><var>206.20</var>copyrights, trade names, service names, franchises, licenses, contracts, customer lists, or <br />
         		<a id="pl.206.21"></a><var>206.21</var>similar items, must be attributed to the state in which the property is used by the purchaser. <br />
         		<a id="pl.206.22"></a><var>206.22</var>If the property is used in more than one state, the royalties or other income must be <br />
         		<a id="pl.206.23"></a><var>206.23</var>apportioned to this state pro rata according to the portion of use in this state. If the portion <br />
         		<a id="pl.206.24"></a><var>206.24</var>of use in this state cannot be determined, the royalties or other income must be excluded <br />
         		<a id="pl.206.25"></a><var>206.25</var>from both the numerator and the denominator. Intangible property is used in this state if <br />
         		<a id="pl.206.26"></a><var>206.26</var>the purchaser uses the intangible property or the rights therein in the regular course of its <br />
         		<a id="pl.206.27"></a><var>206.27</var>business operations in this state, regardless of the location of the purchaser's customers.<br />
         		<a id="pl.206.28"></a><var>206.28</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) Sales of intangible property are made within the state in which the property is <br />
         		<a id="pl.206.29"></a><var>206.29</var>used by the purchaser. If the property is used in more than one state, the sales must be <br />
         		<a id="pl.206.30"></a><var>206.30</var>apportioned to this state pro rata according to the portion of use in this state. If the <br />
         		<a id="pl.206.31"></a><var>206.31</var>portion of use in this state cannot be determined, the sale must be excluded from both the <br />
         		<a id="pl.206.32"></a><var>206.32</var>numerator and the denominator of the sales factor. Intangible property is used in this <br />
         		<a id="pl.206.33"></a><var>206.33</var>state if the purchaser used the intangible property in the regular course of its business <br />
         		<a id="pl.206.34"></a><var>206.34</var>operations in this state.<br />
         		<a id="pl.206.35"></a><var>206.35</var>&nbsp;&nbsp;&nbsp;&nbsp;(j) Receipts from the performance of services must be attributed to the state where <br />
         		<a id="pl.206.36"></a><var>206.36</var>the services are received. For the purposes of this section, receipts from the performance <br />
         		<a id="pl.207.1"></a><var>207.1</var>of services provided to a corporation, partnership, or trust may only be attributed to a state <br />
         		<a id="pl.207.2"></a><var>207.2</var>where it has a fixed place of doing business. If the state where the services are received is <br />
         		<a id="pl.207.3"></a><var>207.3</var>not readily determinable or is a state where the corporation, partnership, or trust receiving <br />
         		<a id="pl.207.4"></a><var>207.4</var>the service does not have a fixed place of doing business, the services shall be deemed <br />
         		<a id="pl.207.5"></a><var>207.5</var>to be received at the location of the office of the customer from which the services were <br />
         		<a id="pl.207.6"></a><var>207.6</var>ordered in the regular course of the customer's trade or business. If the ordering office <br />
         		<a id="pl.207.7"></a><var>207.7</var>cannot be determined, the services shall be deemed to be received at the office of the <br />
         		<a id="pl.207.8"></a><var>207.8</var>customer to which the services are billed.<br />
         		<a id="pl.207.9"></a><var>207.9</var>&nbsp;&nbsp;&nbsp;&nbsp;(k) For the purposes of this subdivision and subdivision 6, paragraph (l), receipts <br />
         		<a id="pl.207.10"></a><var>207.10</var>from management, distribution, or administrative services performed by a corporation <br />
         		<a id="pl.207.11"></a><var>207.11</var>or trust for a fund of a corporation or trust regulated under United States Code, title 15, <br />
         		<a id="pl.207.12"></a><var>207.12</var>sections 80a-1 through 80a-64, must be attributed to the state where the shareholder of <br />
         		<a id="pl.207.13"></a><var>207.13</var>the fund resides. Under this paragraph, receipts for services attributed to shareholders are <br />
         		<a id="pl.207.14"></a><var>207.14</var>determined on the basis of the ratio of: (1) the average of the outstanding shares in the <br />
         		<a id="pl.207.15"></a><var>207.15</var>fund owned by shareholders residing within Minnesota at the beginning and end of each <br />
         		<a id="pl.207.16"></a><var>207.16</var>year; and (2) the average of the total number of outstanding shares in the fund at the <br />
         		<a id="pl.207.17"></a><var>207.17</var>beginning and end of each year. Residence of the shareholder, in the case of an individual, <br />
         		<a id="pl.207.18"></a><var>207.18</var>is determined by the mailing address furnished by the shareholder to the fund. Residence <br />
         		<a id="pl.207.19"></a><var>207.19</var>of the shareholder, when the shares are held by an insurance company as a depositor for <br />
         		<a id="pl.207.20"></a><var>207.20</var>the insurance company policyholders, is the mailing address of the policyholders. In <br />
         		<a id="pl.207.21"></a><var>207.21</var>the case of an insurance company holding the shares as a depositor for the insurance <br />
         		<a id="pl.207.22"></a><var>207.22</var>company policyholders, if the mailing address of the policyholders cannot be determined <br />
         		<a id="pl.207.23"></a><var>207.23</var>by the taxpayer, the receipts must be excluded from both the numerator and denominator. <br />
         		<a id="pl.207.24"></a><var>207.24</var>Residence of other shareholders is the mailing address of the shareholder.<br />
         		<a id="pl.207.25"></a><var>207.25</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.11.5.0"></a><a id="pl.207.26"></a><var>207.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 5. Minnesota Statutes 2012, section 296A.01, subdivision 16, is amended to read:<br />
         		<a id="pl.207.27"></a><var>207.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 16. <b>Dyed fuel.</b> "Dyed fuel" means diesel motor fuel to which indelible dye <br />
         		<a id="pl.207.28"></a><var>207.28</var>has been added, either before or upon withdrawal at a terminal or refinery rack, and which <br />
         		<a id="pl.207.29"></a><var>207.29</var>may be sold for exempt purposes. The dye may be either dye required to be added per the <br />
         		<a id="pl.207.30"></a><var>207.30</var>EPA or dye that meets other specifications required by the Internal Revenue Service or <br />
         		<a id="pl.207.31"></a><var>207.31</var>the commissioner.<br />
         		<a id="pl.207.32"></a><var>207.32</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br />
         		<br />
         		<a id="bill.11.6.0"></a><a id="pl.208.1"></a><var>208.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 6. Minnesota Statutes 2013 Supplement, section 403.162, subdivision 5, is <br />
         		<a id="pl.208.2"></a><var>208.2</var>amended to read:<br />
         		<a id="pl.208.3"></a><var>208.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Fees deposited.</b> (a) The commissioner of revenue shall, based on <br />
         		<a id="pl.208.4"></a><var>208.4</var>the relative proportion of the prepaid wireless E911 fee and the prepaid wireless <br />
         		<a id="pl.208.5"></a><var>208.5</var>telecommunications access Minnesota fee imposed per retail transaction, divide the fees <br />
         		<a id="pl.208.6"></a><var>208.6</var>collected in corresponding proportions. Within 30 days of receipt of the collected fees, <br />
         		<a id="pl.208.7"></a><var>208.7</var>the commissioner shall:<br />
         		<a id="pl.208.8"></a><var>208.8</var>(1) deposit the proportion of the collected fees attributable to the prepaid wireless <br />
         		<a id="pl.208.9"></a><var>208.9</var>E911 fee in the 911 emergency telecommunications service account in the special revenue <br />
         		<a id="pl.208.10"></a><var>208.10</var>fund; and<br />
         		<a id="pl.208.11"></a><var>208.11</var>(2) deposit the proportion of collected fees attributable to the prepaid wireless <br />
         		<a id="pl.208.12"></a><var>208.12</var>telecommunications access Minnesota fee in the telecommunications access fund <br />
         		<a id="pl.208.13"></a><var>208.13</var>established in section 
         <statute_ref>237.52, subdivision 1</statute_ref>.<br />
         		<a id="pl.208.14"></a><var>208.14</var>(b) The department commissioner of revenue may deduct and retain deposit in a <br />
         		<a id="pl.208.15"></a><var>208.15</var>special revenue account an amount, not to exceed two percent of collected fees,. Money <br />
         		<a id="pl.208.16"></a><var>208.16</var>in the account is annually appropriated to the commissioner of revenue to reimburse its <br />
         		<a id="pl.208.17"></a><var>208.17</var>direct costs of administering the collection and remittance of prepaid wireless E911 fees <br />
         		<a id="pl.208.18"></a><var>208.18</var>and prepaid wireless telecommunications access Minnesota fees.<br />
         		<a id="pl.208.19"></a><var>208.19</var><b>EFFECTIVE DATE.</b>This section is effective retroactively from January 1, 2014.<br />
         		<br />
         		<a id="bill.11.7.0"></a><a id="pl.208.20"></a><var>208.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 7. Laws 2013, chapter 143, article 8, section 3, the effective date, is amended to <br />
         		<a id="pl.208.21"></a><var>208.21</var>read:<br />
         		<a id="pl.208.22"></a><var>208.22</var><b>EFFECTIVE DATE.</b>This section is effective for sales and purchases made after <br />
         		<a id="pl.208.23"></a><var>208.23</var>June 30, 2013, except for paragraph (p), which is effective the day following final <br />
         		<a id="pl.208.24"></a><var>208.24</var>enactment.<br />
         		<a id="pl.208.25"></a><var>208.25</var><b>EFFECTIVE DATE.</b>This section is effective retroactively from the day following <br />
         		<a id="pl.208.26"></a><var>208.26</var>final enactment of Laws 2013, chapter 143, article 8, section 3.<br />
         		<br />
         		<a id="bill.11.8.0"></a><a id="pl.208.27"></a><var>208.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 8. <b> REPEALER.</b><br />
         		<a id="pl.208.28"></a><var>208.28</var>Minnesota Rules, parts 8130.8900, subpart 3; and 8130.9500, subparts 1, 1a, 2, <br />
         		<a id="pl.208.29"></a><var>208.29</var>3, 4, and 5, are repealed.<br />
         		<a id="pl.208.30"></a><var>208.30</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment."<br />
         		<a id="pl.208.31"></a><var>208.31</var>Delete the title and insert:<br />
         		
         <div class="xtend_ce"><a id="pl.208.32"></a><var>208.32</var>"A bill for an act<br />
            		
         </div><a id="pl.209.1"></a><var>209.1</var>relating to financing and operation of state and local government; making changes <br />
         		<a id="pl.209.2"></a><var>209.2</var>to individual income, property, sales and use, excise, estate, mineral, tobacco, <br />
         		<a id="pl.209.3"></a><var>209.3</var>alcohol, special, local, and other taxes and tax-related provisions; providing for <br />
         		<a id="pl.209.4"></a><var>209.4</var>and increasing credits and refunds; modifying local government aids; modifying <br />
         		<a id="pl.209.5"></a><var>209.5</var>property tax exclusions, exemptions, and levy deadlines; imposing a tax on <br />
         		<a id="pl.209.6"></a><var>209.6</var>solar energy production; modifying installment payments; modifying special <br />
         		<a id="pl.209.7"></a><var>209.7</var>service districts; modifying sales, use, and excise tax incentives and exemptions; <br />
         		<a id="pl.209.8"></a><var>209.8</var>changing certain sales, use, and excise tax remittances; modifying and allowing <br />
         		<a id="pl.209.9"></a><var>209.9</var>certain local sales and use taxes; providing for voluntary compliance; modifying <br />
         		<a id="pl.209.10"></a><var>209.10</var>income tax credits and subtractions; clarifying estate tax provisions; modifying <br />
         		<a id="pl.209.11"></a><var>209.11</var>minerals tax provisions; reallocating certain bond payments; providing for <br />
         		<a id="pl.209.12"></a><var>209.12</var>certain local development projects; modifying tax increment finance rules; <br />
         		<a id="pl.209.13"></a><var>209.13</var>authorizing debt service aid and local bonding authority; designating the "Old <br />
         		<a id="pl.209.14"></a><var>209.14</var>Cedar Avenue Bridge"; changing license revocation procedures; modifying <br />
         		<a id="pl.209.15"></a><var>209.15</var>certain county levy authority; removing obsolete, redundant, and unnecessary <br />
         		<a id="pl.209.16"></a><var>209.16</var>laws and administrative rules administered by the Department of Revenue; <br />
         		<a id="pl.209.17"></a><var>209.17</var>making various policy and technical changes; requiring reports; appropriating <br />
         		<a id="pl.209.18"></a><var>209.18</var>money;amending Minnesota Statutes 2012, sections 16D.02, subdivisions 3, <br />
         		<a id="pl.209.19"></a><var>209.19</var>6; 16D.04, subdivisions 3, 4; 16D.07; 16D.11, subdivisions 1, 3, 7; 84A.20, <br />
         		<a id="pl.209.20"></a><var>209.20</var>subdivision 2; 84A.31, subdivision 2; 115B.49, subdivision 4; 116J.8737, <br />
         		<a id="pl.209.21"></a><var>209.21</var>subdivision 5, as amended, by adding a subdivision; 161.14, by adding a <br />
         		<a id="pl.209.22"></a><var>209.22</var>subdivision; 163.06, subdivision 1; 270.11, subdivision 1; 270.12, subdivisions 2, <br />
         		<a id="pl.209.23"></a><var>209.23</var>4; 270.87; 270A.03, subdivision 2; 270B.14, subdivision 3; 270C.085; 270C.34, <br />
         		<a id="pl.209.24"></a><var>209.24</var>subdivision 2; 270C.52, subdivision 2; 270C.56, subdivision 3; 270C.72, <br />
         		<a id="pl.209.25"></a><var>209.25</var>subdivisions 1, 3; 272.01, subdivisions 1, 3; 272.02, subdivisions 10, 24, 93; <br />
         		<a id="pl.209.26"></a><var>209.26</var>272.0211, subdivisions 1, 2, 4; 272.025, subdivision 1; 272.027, subdivision 1; <br />
         		<a id="pl.209.27"></a><var>209.27</var>272.029, subdivisions 4a, 6; 272.03, subdivision 1; 273.01; 273.061, subdivision <br />
         		<a id="pl.209.28"></a><var>209.28</var>6; 273.10; 273.11, subdivision 13; 273.112, subdivision 6a; 273.13, subdivision <br />
         		<a id="pl.209.29"></a><var>209.29</var>34; 273.1384, subdivision 2; 273.18; 273.33, subdivision 2; 273.37, subdivision <br />
         		<a id="pl.209.30"></a><var>209.30</var>2; 273.3711; 274.01, subdivisions 1, 2; 274.014, subdivision 3; 275.065, <br />
         		<a id="pl.209.31"></a><var>209.31</var>subdivision 1; 275.08, subdivisions 1a, 1d; 275.74, subdivision 2; 275.75; <br />
         		<a id="pl.209.32"></a><var>209.32</var>276A.06, subdivisions 3, as amended, 5, as amended; 279.03, subdivisions 1, 1a, <br />
         		<a id="pl.209.33"></a><var>209.33</var>2; 279.16; 279.23; 279.25; 280.001; 280.03; 280.07; 280.11; 281.03; 281.327; <br />
         		<a id="pl.209.34"></a><var>209.34</var>282.01, subdivision 6; 282.04, subdivision 4; 282.261, subdivisions 2, 4, 5; <br />
         		<a id="pl.209.35"></a><var>209.35</var>282.322; 287.30; 289A.02, subdivision 7, as amended; 289A.18, subdivision <br />
         		<a id="pl.209.36"></a><var>209.36</var>2; 289A.25, subdivision 1; 289A.60, subdivision 15; 290.01, subdivisions 5, <br />
         		<a id="pl.209.37"></a><var>209.37</var>19a, as amended, 19f, 29; 290.015, subdivision 1; 290.07, subdivisions 1, 2; <br />
         		<a id="pl.209.38"></a><var>209.38</var>290.081; 290.0922, subdivision 3; 290.095, subdivision 3; 290.9728, subdivision <br />
         		<a id="pl.209.39"></a><var>209.39</var>2; 291.016, subdivision 1, as added; 291.031, as added; 296A.01, subdivision <br />
         		<a id="pl.209.40"></a><var>209.40</var>16; 297A.67, subdivision 13a, by adding a subdivision; 297A.68, by adding <br />
         		<a id="pl.209.41"></a><var>209.41</var>a subdivision; 297A.70, subdivision 10, by adding a subdivision; 297A.94; <br />
         		<a id="pl.209.42"></a><var>209.42</var>297B.09; 297F.03, subdivision 2; 297F.09, subdivision 10; 297G.03, by adding <br />
         		<a id="pl.209.43"></a><var>209.43</var>a subdivision; 297G.09, subdivision 9; 297H.06, subdivision 2; 297I.05, <br />
         		<a id="pl.209.44"></a><var>209.44</var>subdivision 14; 298.28, subdivisions 5, as amended, 7a, as added; 298.75, <br />
         		<a id="pl.209.45"></a><var>209.45</var>subdivisions 1, 2; 383D.41, by adding a subdivision; 383E.21, subdivisions <br />
         		<a id="pl.209.46"></a><var>209.46</var>1, 2; 412.131; 469.176, subdivisions 1b, 3; 469.1763, subdivision 3; 469.177, <br />
         		<a id="pl.209.47"></a><var>209.47</var>subdivision 3; 473.665, subdivision 5; 477A.0124, subdivision 5; 477A.014, <br />
         		<a id="pl.209.48"></a><var>209.48</var>subdivision 1; 611.27, subdivisions 13, 15; Minnesota Statutes 2013 Supplement, <br />
         		<a id="pl.209.49"></a><var>209.49</var>sections 116J.8737, subdivision 2, as amended; 116J.8738, subdivisions 2, 3, <br />
         		<a id="pl.209.50"></a><var>209.50</var>4; 116V.03; 136A.129, subdivisions 1, 3, 5; 144F.01, subdivision 4; 270B.01, <br />
         		<a id="pl.209.51"></a><var>209.51</var>subdivision 8; 270B.03, subdivision 1; 273.13, subdivision 25; 273.1325, <br />
         		<a id="pl.209.52"></a><var>209.52</var>subdivisions 1, 2; 273.1398, subdivisions 3, 4; 275.70, subdivision 5; 279.37, <br />
         		<a id="pl.209.53"></a><var>209.53</var>subdivision 2; 281.17; 289A.20, subdivision 4; 290.01, subdivisions 19, as <br />
         		<a id="pl.209.54"></a><var>209.54</var>amended, 19b, as amended, 19d, 31, as amended; 290.091, subdivision 2, as <br />
         		<a id="pl.209.55"></a><var>209.55</var>amended; 290.0921, subdivision 3; 290.191, subdivision 5; 290A.03, subdivision <br />
         		<a id="pl.209.56"></a><var>209.56</var>15, as amended; 291.005, subdivision 1, as amended; 297A.61, subdivision 3, <br />
         		<a id="pl.209.57"></a><var>209.57</var>as amended; 297A.68, subdivisions 42, 44; 297A.70, subdivisions 2, 13, 14; <br />
         		<a id="pl.209.58"></a><var>209.58</var>297A.75, subdivisions 1, 2, 3; 297F.05, subdivision 1; 298.018, subdivision <br />
         		<a id="pl.210.1"></a><var>210.1</var>1; 298.28, subdivision 10, as amended; 360.531, subdivision 2; 403.162, <br />
         		<a id="pl.210.2"></a><var>210.2</var>subdivision 5; 423A.02, subdivision 3; 423A.022, subdivisions 2, 3; 465.04; <br />
         		<a id="pl.210.3"></a><var>210.3</var>469.1763, subdivision 2; 477A.013, subdivision 8; 477A.03, subdivision 2a; <br />
         		<a id="pl.210.4"></a><var>210.4</var>477A.12, subdivisions 1, 2; 477A.14, subdivision 1; Laws 1980, chapter 511, <br />
         		<a id="pl.210.5"></a><var>210.5</var>sections 1, subdivision 2, as amended; 2, as amended; Laws 1999, chapter 243, <br />
         		<a id="pl.210.6"></a><var>210.6</var>article 14, section 5, subdivision 1; Laws 2005, First Special Session chapter 3, <br />
         		<a id="pl.210.7"></a><var>210.7</var>article 5, sections 38, subdivision 4; 44, subdivisions 3, 5; Laws 2006, chapter <br />
         		<a id="pl.210.8"></a><var>210.8</var>259, article 3, sections 10, subdivisions 3, 4, 5; 11, subdivisions 3, 4, 5; Laws <br />
         		<a id="pl.210.9"></a><var>210.9</var>2008, chapter 366, article 10, section 15; Laws 2013, chapter 143, article 8, <br />
         		<a id="pl.210.10"></a><var>210.10</var>sections 3; 22; 23; 27; 37; article 9, section 23; article 11, section 10; Laws 2014, <br />
         		<a id="pl.210.11"></a><var>210.11</var>chapter 150, article 3, section 4; proposing coding for new law in Minnesota <br />
         		<a id="pl.210.12"></a><var>210.12</var>Statutes, chapters 69; 272; 297G; 383A; 469; 477A; repealing Minnesota Statutes <br />
         		<a id="pl.210.13"></a><var>210.13</var>2012, sections 16D.02, subdivisions 5, 8; 16D.11, subdivision 2; 270C.53; <br />
         		<a id="pl.210.14"></a><var>210.14</var>270C.991, subdivision 4; 272.02, subdivisions 1, 1a, 43, 48, 51, 53, 67, 72, 82; <br />
         		<a id="pl.210.15"></a><var>210.15</var>272.027, subdivision 2; 272.031; 273.015, subdivision 1; 273.03, subdivision 3; <br />
         		<a id="pl.210.16"></a><var>210.16</var>273.075; 273.13, subdivision 21a; 273.1383; 273.1386; 273.1398, subdivision <br />
         		<a id="pl.210.17"></a><var>210.17</var>4b; 273.80; 275.77; 279.32; 281.173, subdivision 8; 281.174, subdivision 8; <br />
         		<a id="pl.210.18"></a><var>210.18</var>281.328; 282.10; 282.23; 287.20, subdivision 4; 287.27, subdivision 2; 289A.56, <br />
         		<a id="pl.210.19"></a><var>210.19</var>subdivision 7; 290.01, subdivisions 4b, 19e, 20e; 290.06, subdivisions 30, 31; <br />
         		<a id="pl.210.20"></a><var>210.20</var>290.0674, subdivision 3; 290.191, subdivision 4; 290.33; 295.52, subdivision <br />
         		<a id="pl.210.21"></a><var>210.21</var>7; 297A.666; 297A.68, subdivision 38; 297A.71, subdivisions 4, 5, 7, 9, 10, <br />
         		<a id="pl.210.22"></a><var>210.22</var>17, 18, 20, 32, 41; 297F.08, subdivision 11; 297H.10, subdivision 2; 469.174, <br />
         		<a id="pl.210.23"></a><var>210.23</var>subdivision 10c; 469.175, subdivision 2b; 469.176, subdivision 1i; 469.1764; <br />
         		<a id="pl.210.24"></a><var>210.24</var>469.177, subdivision 10; 469.330; 469.331; 469.332; 469.333; 469.334; 469.335; <br />
         		<a id="pl.210.25"></a><var>210.25</var>469.336; 469.337; 469.338; 469.339; 469.340, subdivisions 1, 2, 3, 5; 469.341; <br />
         		<a id="pl.210.26"></a><var>210.26</var>477A.0124, subdivisions 1, 6; 505.173; Minnesota Statutes 2013 Supplement, <br />
         		<a id="pl.210.27"></a><var>210.27</var>sections 273.1103; 469.340, subdivision 4; Laws 1993, chapter 375, article 9, <br />
         		<a id="pl.210.28"></a><var>210.28</var>section 47; Minnesota Rules, parts 8002.0200, subpart 8; 8007.0200; 8100.0800; <br />
         		<a id="pl.210.29"></a><var>210.29</var>8130.7500, subpart 7; 8130.8900, subpart 3; 8130.9500, subparts 1, 1a, 2, 3, 4, 5."<br />
         		
         <table>
            <col width="50px"></col>
            <col width="252px"></col>
            <col width="42px"></col>
            <col width="252px"></col>
            <tr>
               <td><a id="pl.211.1"></a><var>211.1</var><br />
                  		
               </td>
               <td colspan="3">We request the adoption of this report and repassage of the bill.<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.211.2"></a><var>211.2</var><br />
                  		
               </td>
               <td>House Conferees:<br />
                  		<span width="2em"></span></td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.211.3"></a><var>211.3</var><br />
                  		
               </td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
               <td></td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.211.4"></a><var>211.4</var><br />
                  		
               </td>
               <td>Ann Lenczewski<br />
                  		
               </td>
               <td></td>
               <td>Jim Davnie<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.211.5"></a><var>211.5</var><br />
                  		
               </td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
               <td></td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.211.6"></a><var>211.6</var><br />
                  		
               </td>
               <td>Greg Davids<br />
                  		
               </td>
               <td></td>
               <td>Paul Torkelson<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.211.7"></a><var>211.7</var><br />
                  		
               </td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.211.8"></a><var>211.8</var><br />
                  		
               </td>
               <td>Linda Slocum<br />
                  		
               </td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.211.9"></a><var>211.9</var><br />
                  		
               </td>
               <td>Senate Conferees:<br />
                  		<span width="2em"></span></td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.211.10"></a><var>211.10</var><br />
                  		
               </td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
               <td></td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.211.11"></a><var>211.11</var><br />
                  		
               </td>
               <td>Rod Skoe<br />
                  		
               </td>
               <td></td>
               <td>Ann H. Rest<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.211.12"></a><var>211.12</var><br />
                  		
               </td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
               <td></td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.211.13"></a><var>211.13</var><br />
                  		
               </td>
               <td>Kari Dziedzic<br />
                  		
               </td>
               <td></td>
               <td>Lyle Koenen<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.211.14"></a><var>211.14</var><br />
                  		
               </td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.211.15"></a><var>211.15</var><br />
                  		
               </td>
               <td>Paul E. Gazelka<br />
                  		
               </td>
               <td></td>
               <td></td>
            </tr>
         </table>
      </div>