1.1 	A bill for an act
1.2 	relating to financing of state and local government; making changes to individual 
1.3 	income and corporate franchise, property, sales and use, estate, mineral, tobacco, 
1.4 	special, local, and other taxes and tax-related provisions; providing for and 
1.5 	expanding credits; modifying local government aids; modifying exclusions, 
1.6 	exemptions, and levy deadlines; modifying sales and use tax exemptions; 
1.7 	changing sales, use, and excise tax remittances; modifying certain local sales and 
1.8 	use taxes; modifying income tax credits; modifying the payment in lieu of tax 
1.9 	provisions; clarifying estate tax provisions; providing for and modifying certain 
1.10 	local development projects; modifying electric generation machinery valuation; 
1.11 	clarifying tax increment financing rules; modifying property tax interest rates; 
1.12 	modifying valuation and taxation of railroad property; modifying the Sustainable 
1.13 	Forest Incentive Act; modifying Iron Range fiscal disparities program; modifying 
1.14 	certain county levy authority; allocating additional tax reductions for border 
1.15 	cities; modifying the distribution of taconite production and occupation taxes; 
1.16 	modifying and providing provisions for public finance; making conforming, 
1.17 	policy, and technical changes to tax provisions; requiring reports; appropriating 
1.18 	money;amending Minnesota Statutes 2014, sections 13.51, subdivision 2; 
1.19 	16A.152, subdivisions 2, 8; 16D.08, subdivision 2; 69.021, subdivision 5; 
1.20 	126C.01, subdivision 3; 126C.40, subdivision 1; 136A.129, subdivision 3; 
1.21 	138.053; 216B.1621, subdivision 2; 216B.164, subdivision 2a; 216B.2424, 
1.22 	subdivision 5; 270.071, subdivisions 2, 7, 8, by adding a subdivision; 270.072, 
1.23 	subdivisions 2, 3, by adding a subdivision; 270.12, by adding a subdivision; 
1.24 	270.80, subdivisions 1, 2, 3, 4, by adding subdivisions; 270.81, subdivisions 1, 
1.25 	3, by adding a subdivision; 270.82; 270.83, subdivisions 1, 2; 270.84; 270.86; 
1.26 	270.87; 270A.03, subdivision 5; 270B.14, subdivision 1; 270C.03, subdivision 
1.27 	1; 270C.30; 270C.33, subdivisions 5, 8; 270C.34, subdivision 2; 270C.347, 
1.28 	subdivision 1; 270C.35, subdivision 3, by adding a subdivision; 270C.38, 
1.29 	subdivision 1; 270C.445, by adding a subdivision; 270C.446, subdivision 
1.30 	5; 270C.72, subdivision 4; 270C.89, subdivision 1; 271.06, subdivisions 2, 
1.31 	7; 271.08, subdivision 1; 271.21, subdivision 2; 272.02, subdivisions 9, 10; 
1.32 	272.0211, subdivision 1; 272.025, subdivision 1; 272.029, subdivisions 2, 4, 
1.33 	by adding a subdivision; 272.0295, subdivision 4; 272.115, subdivision 2; 
1.34 	273.032; 273.061, subdivision 7; 273.08; 273.121, by adding a subdivision; 
1.35 	273.124, subdivision 13; 273.13, subdivisions 23, 24; 273.1392; 273.1393; 
1.36 	273.33, subdivisions 1, 2; 273.37, subdivision 1; 273.371; 273.372, subdivisions 
1.37 	2, 4, by adding subdivisions; 274.01, subdivision 1; 274.13, subdivision 1; 
1.38 	274.135, subdivision 3; 275.025, subdivisions 1, 3; 275.065, subdivisions 1, 3; 
1.39 	275.066; 275.07, subdivision 1; 275.62, subdivision 2; 276.04, subdivision 2; 
2.1 	276A.06, subdivisions 3, 5; 278.01, subdivision 1; 279.01, subdivision 1; 279.37, 
2.2 	subdivision 2; 282.01, subdivisions 1a, 1d, 4; 282.261, subdivision 2; 287.2205; 
2.3 	289A.02, subdivision 7, as amended; 289A.08, subdivisions 11, 16, by adding 
2.4 	a subdivision; 289A.09, subdivisions 1, 2; 289A.11, subdivision 1; 289A.12, 
2.5 	subdivision 14; 289A.20, subdivision 4; 289A.38, subdivision 6; 289A.50, 
2.6 	subdivision 7; 289A.60, subdivisions 15, 28; 290.01, subdivisions 4a, 7, 19, 
2.7 	as amended, 19b, 19c, 19d, 31, as amended, by adding a subdivision; 290.06, 
2.8 	by adding subdivisions; 290.0671, subdivisions 1, 6a; 290.0672, subdivision 
2.9 	1; 290.0674, subdivisions 1, 2; 290.068, subdivisions 1, 2, 3, 6a, by adding 
2.10 	a subdivision; 290.091, subdivision 3; 290.0921, subdivision 3; 290.0922, 
2.11 	subdivision 2; 290.17, subdivision 4; 290.191, subdivision 5; 290.21, subdivision 
2.12 	4; 290A.03, subdivisions 13, 15, as amended; 290A.04, subdivision 2h; 290A.19; 
2.13 	290B.03, subdivision 1; 290B.04, subdivision 1; 290C.01; 290C.02, subdivisions 
2.14 	1, 3, 6; 290C.03; 290C.04; 290C.05; 290C.055; 290C.07; 290C.08, subdivision 
2.15 	1; 290C.10; 290C.11; 290C.13, subdivisions 3, 6; 291.005, subdivision 1; 
2.16 	291.03, subdivision 10, by adding a subdivision; 291.031; 295.54, subdivision 2; 
2.17 	295.55, subdivision 6; 296A.01, subdivisions 12, 33, 42, by adding subdivisions; 
2.18 	296A.02, by adding a subdivision; 296A.07, subdivisions 1, 4; 296A.08, 
2.19 	subdivision 2; 296A.09, subdivisions 1, 3, 5, 6; 296A.15, subdivisions 1, 4; 
2.20 	296A.17, subdivisions 1, 2, 3; 296A.18, subdivisions 1, 8; 296A.19, subdivision 
2.21 	1; 296A.22, subdivision 9; 296A.26; 297A.62, subdivision 3; 297A.67, 
2.22 	subdivision 7a, by adding subdivisions; 297A.68, subdivisions 5, 35a; 297A.70, 
2.23 	subdivisions 4, 14, by adding a subdivision; 297A.82, subdivision 4a; 297A.994, 
2.24 	subdivision 4; 297D.02; 297E.02, subdivisions 3, 7; 297E.04, subdivision 
2.25 	1; 297E.05, subdivision 4; 297E.06, subdivision 1; 297F.05, subdivision 3; 
2.26 	297F.09, subdivisions 1, 10; 297F.23; 297G.09, subdivisions 1, 9; 297G.22; 
2.27 	297H.04, subdivision 2; 297H.06, subdivision 2; 297I.05, subdivision 2; 297I.10, 
2.28 	subdivisions 1, 3; 297I.30, by adding a subdivision; 297I.60, subdivision 2; 
2.29 	298.01, subdivisions 3b, 4c; 298.17; 298.227; 298.24, subdivision 1, by adding 
2.30 	a subdivision; 298.28, subdivisions 3, 7a; 366.095, subdivision 1; 383B.117, 
2.31 	subdivision 2; 410.32; 412.301; 469.034, subdivision 2; 469.101, subdivision 
2.32 	1; 469.169, by adding a subdivision; 469.174, subdivision 12; 469.175, 
2.33 	subdivision 3; 469.176, subdivision 4c; 469.1761, by adding a subdivision; 
2.34 	469.1763, subdivisions 1, 2, 3; 469.178, subdivision 7; 469.190, subdivisions 
2.35 	1, 7; 469.194, subdivision 1; 469.319, subdivision 5; 469.40, subdivision 
2.36 	11, as amended; 469.43, by adding a subdivision; 469.45, subdivisions 1, 2; 
2.37 	469.47, subdivision 4, as amended; 473H.09; 475.58, subdivision 3b; 475.60, 
2.38 	subdivision 2; 477A.0124, subdivision 4; 477A.013, subdivision 1, by adding a 
2.39 	subdivision; 477A.014, subdivision 1; 477A.015; 477A.017, subdivisions 2, 3; 
2.40 	477A.03, subdivisions 2a, 2b, 2c; 477A.12, subdivisions 1, 2; 477A.13; 477A.15; 
2.41 	477A.19, by adding subdivisions; 477A.20; 524.3-916; 559.202, subdivision 2; 
2.42 	Laws 1980, chapter 511, sections 1, subdivision 2, as amended; 2, as amended; 
2.43 	Laws 1991, chapter 291, article 8, section 27, subdivisions 3, as amended, 4, 
2.44 	as amended, 5, 6; Laws 1996, chapter 471, article 3, section 51; Laws 2001, 
2.45 	First Special Session chapter 5, article 3, section 86; Laws 2006, chapter 257, 
2.46 	section 2, as amended; Laws 2008, chapter 366, article 7, section 20; Laws 2013, 
2.47 	chapter 143, article 8, sections 22, as amended; 23, as amended; Laws 2014, 
2.48 	chapter 308, article 1, section 14, subdivision 2; article 7, section 7; proposing 
2.49 	coding for new law in Minnesota Statutes, chapters 103C; 116J; 270C; 273; 290; 
2.50 	290B; 290C; 293; 383B; 465; 477A; repealing Minnesota Statutes 2014, sections 
2.51 	3.192; 270.81, subdivision 4; 270.83, subdivision 3; 272.02, subdivisions 23, 29, 
2.52 	33, 41, 44, 45, 47, 52, 54, 55, 56, 68, 69, 70, 71, 80, 84, 89, 92, 93, 96, 99; 
2.53 	272.0211; 273.111, subdivision 9a; 275.025, subdivision 4; 281.22; 290C.02, 
2.54 	subdivisions 5, 9; 469.194, subdivisions 2, 4; Minnesota Rules, parts 8092.2000; 
2.55 	8106.0100, subparts 1, 2, 3, 4, 5, 6, 7, 8, 10, 12, 13, 14, 17, 17a, 18, 19, 20, 
2.56 	21; 8106.0300, subparts 1, 3; 8106.0400; 8106.0500; 8106.0600; 8106.0700; 
2.57 	8106.0800; 8106.9900; 8125.1300, subpart 3.
3.1 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

3.2 	ARTICLE 1
3.3 	INCOME, CORPORATE FRANCHISE, AND ESTATE TAXES

3.4 	Section 1. Minnesota Statutes 2014, section 16D.08, subdivision 2, is amended to read:
3.5 		Subd. 2.Powers. (a) In addition to the collection remedies available to private 
3.6 	collection agencies in this state, the commissioner, with legal assistance from the attorney 
3.7 	general, may utilize any statutory authority granted to a referring agency for purposes of 
3.8 	collecting debt owed to that referring agency. The commissioner may also use the tax 
3.9 	collection remedies in sections 270C.03, subdivision 1, clause (8) (9), 270C.31, 270C.32, 
3.10 	270C.52, subdivisions 2 and 3, 270C.63, 270C.65, and 270C.67 to 270C.72. A debtor 
3.11 	may take advantage of any administrative or appeal rights contained in the listed sections. 
3.12 	For administrative and appeal rights for nontax debts, references to administrative 
3.13 	appeals or to the taxpayer rights advocate shall be construed to be references to the case 
3.14 	reviewer, references to Tax Court shall be construed to mean district court, and offers 
3.15 	in compromise shall be submitted to the referring agency. A debtor who qualifies for 
3.16 	cancellation of collection costs under section 16D.11, subdivision 3, clause (1), can apply 
3.17 	to the commissioner for reduction or release of a continuous wage levy, if the debtor 
3.18 	establishes that the debtor needs all or a portion of the wages being levied upon to pay 
3.19 	for essential living expenses, such as food, clothing, shelter, medical care, or expenses 
3.20 	necessary for maintaining employment. The commissioner's determination not to reduce 
3.21 	or release a continuous wage levy is appealable to district court. The word "tax" or "taxes" 
3.22 	when used in the tax collection statutes listed in this subdivision also means debts referred 
3.23 	under this chapter.
3.24 	(b) Before using the tax collection remedies listed in this subdivision, notice and 
3.25 	demand for payment of the amount due must be given to the person liable for the payment 
3.26 	or collection of the debt at least 30 days prior to the use of the remedies. The notice must 
3.27 	be sent to the person's last known address and must include a brief statement that sets forth 
3.28 	in simple and nontechnical terms the amount and source of the debt, the nature of the 
3.29 	available collection remedies, and remedies available to the debtor.

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

3.31 	Sec. 2. Minnesota Statutes 2014, section 136A.129, subdivision 3, is amended to read:
4.1 		Subd. 3.Program components. (a) An intern must be an eligible student who has 
4.2 	been admitted to a major program that is related to the intern experience as determined 
4.3 	by the eligible institution.
4.4 	(b) To participate in the program, an eligible institution must:
4.5 	(1) enter into written agreements with eligible employers to provide internships that 
4.6 	are at least eight weeks long and located in greater Minnesota; and
4.7 	(2) provide academic credit for the successful completion of the internship or ensure 
4.8 	that it fulfills requirements necessary to complete a vocational technical education program.
4.9 	(c) To participate in the program, an eligible employer must enter into a written 
4.10 	agreement with an eligible institution specifying that the intern:
4.11 	(1) would not have been hired without the tax credit described in subdivision 4;
4.12 	(2) did not work for the employer in the same or a similar job prior to entering 
4.13 	the agreement;
4.14 	(3) (2) does not replace an existing employee;
4.15 	(4) (3) has not previously participated in the program;
4.16 	(5) (4) will be employed at a location in greater Minnesota;
4.17 	(6) (5) will be paid at least minimum wage for a minimum of 16 hours per week 
4.18 	for a period of at least eight weeks; and
4.19 	(7) (6) will be supervised and evaluated by the employer.
4.20 	(d) The written agreement between the eligible institution and the eligible employer 
4.21 	must certify a credit amount to the employer, not to exceed $2,000 per intern. The total 
4.22 	dollar amount of credits that an eligible institution certifies to eligible employers in a 
4.23 	calendar year may not exceed the amount of its allocation under subdivision 4.
4.24 	(e) Participating eligible institutions and eligible employers must report annually to 
4.25 	the office. The report must include at least the following:
4.26 	(1) the number of interns hired;
4.27 	(2) the number of hours and weeks worked by interns; and
4.28 	(3) the compensation paid to interns.
4.29 	(f) An internship required to complete an academic program does not qualify for the 
4.30 	greater Minnesota internship program under this section.

4.31 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
4.32 	December 31, 2014.

4.33 	Sec. 3. Minnesota Statutes 2014, section 270C.03, subdivision 1, is amended to read:
4.34 		Subdivision 1.Powers and duties. The commissioner shall have and exercise 
4.35 	the following powers and duties:
5.1 	(1) administer and enforce the assessment and collection of taxes;
5.2 	(2) make determinations, corrections, and assessments with respect to taxes, 
5.3 	including interest, additions to taxes, and assessable penalties;
5.4 	(3) disallow the tax effects of a transaction governed under chapter 290 that does not 
5.5 	have economic substance;
5.6 	(3) (4) use statistical or other sampling techniques consistent with generally accepted 
5.7 	auditing standards in examining returns or records and making assessments;
5.8 	(4) (5) investigate the tax laws of other states and countries, and formulate and 
5.9 	submit to the legislature such legislation as the commissioner may deem expedient 
5.10 	to prevent evasions of state revenue laws and to secure just and equal taxation and 
5.11 	improvement in the system of state revenue laws;
5.12 	(5) (6) consult and confer with the governor upon the subject of taxation, the 
5.13 	administration of the laws in regard thereto, and the progress of the work of the 
5.14 	department, and furnish the governor, from time to time, such assistance and information 
5.15 	as the governor may require relating to tax matters;
5.16 	(6) (7) execute and administer any agreement with the secretary of the treasury or the 
5.17 	Bureau of Alcohol, Tobacco, Firearms and Explosives in the Department of Justice of the 
5.18 	United States or a representative of another state regarding the exchange of information 
5.19 	and administration of the state revenue laws;
5.20 	(7) (8) require town, city, county, and other public officers to report information 
5.21 	as to the collection of taxes received from licenses and other sources, and such other 
5.22 	information as may be needful in the work of the commissioner, in such form as the 
5.23 	commissioner may prescribe;
5.24 	(8) (9) authorize the use of unmarked motor vehicles to conduct seizures or criminal 
5.25 	investigations pursuant to the commissioner's authority;
5.26 	(9) (10) authorize the participation in audits performed by the Multistate Tax 
5.27 	Commission. For the purposes of chapter 270B, the Multistate Tax Commission will be 
5.28 	considered to be a state for the purposes of auditing corporate sales, excise, and income 
5.29 	tax returns;
5.30 	(10) (11) maintain toll-free telephone access for taxpayer assistance for calls from 
5.31 	locations within the state; and
5.32 	(11) (12) exercise other powers and authority and perform other duties required of or 
5.33 	imposed upon the commissioner by law.

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

6.1 	Sec. 4. [270C.331] ECONOMIC SUBSTANCE.
6.2 		Subdivision 1.Economic substance. (a) For the purposes of disallowing the 
6.3 	tax effects of a transaction that does not have substance pursuant to section 270C.03, 
6.4 	subdivision 1, clause (3), a transaction shall be treated as having economic substance 
6.5 	only if:
6.6 	(1) the transaction changes in a meaningful way, apart from tax effects, the taxpayer's 
6.7 	economic position; and
6.8 	(2) the taxpayer has a substantial purpose, apart from tax effects, for entering into 
6.9 	the transaction.
6.10 	(b) In determining whether the requirements of paragraph (a), clauses (1) and (2), 
6.11 	are met, the potential for profit of a transaction shall be taken into account only if the 
6.12 	present value of the reasonable expected pretax profit from the transaction is substantial in 
6.13 	relation to the present value of the expected net tax benefits that would be allowed if the 
6.14 	transaction was respected. Fees and other transaction expenses shall be taken into account 
6.15 	as expenses in determining pretax profit.
6.16 	(c) For the purposes of paragraph (a), clause (2), achieving a financial accounting 
6.17 	benefit shall not be taken into account as a purpose for entering into a transaction if the 
6.18 	origin of such financial accounting benefit is a reduction of federal, state, or local tax.
6.19 		Subd. 2.Apart from tax effects. For purposes of this section, "apart from tax 
6.20 	effects" means without regard to the state and local tax effects arising from the application 
6.21 	of the laws of any state or local unit of government to the form of the transaction, the 
6.22 	federal tax effects, or both.
6.23 		Subd. 3.Transaction. For purposes of this section and section 270C.03, subdivision 
6.24 	1, clause (3), "transaction" includes a series of transactions.
6.25 		Subd. 4.Personal transactions of individuals. In the case of an individual, 
6.26 	subdivision 1 shall only apply to transactions entered into in connection with the trade or 
6.27 	business activity engaged in for the production of income.
6.28 		Subd. 5.Commissioner to issue guidance. (a) The commissioner shall promulgate 
6.29 	guidance on how the provisions of this section will be applied.  The guidance must 
6.30 	include, at a minimum, types of transactions that will not be challenged as not having 
6.31 	economic substance, and types of transactions that would be challenged as not having 
6.32 	economic substance.
6.33 	(b) The commissioner shall promulgate rules setting forth how the requirements 
6.34 	of subdivision 1, paragraphs (a) and (b), would be determined, including definitions of 
6.35 	relevant terms used in this section that the commissioner would apply in determining 
6.36 	whether a transaction has economic substance.
7.1 	(c) The commissioner shall establish and publish a formal departmental procedure 
7.2 	for uniform application of this section.

7.3 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
7.4 	December 31, 2015, except that subdivision 5 is effective the day following final enactment.

7.5 	Sec. 5. Minnesota Statutes 2014, section 289A.02, subdivision 7, as amended by Laws 
7.6 	2015, chapter 1, section 1, is amended to read:
7.7 		Subd. 7.Internal Revenue Code. Unless specifically defined otherwise, "Internal 
7.8 	Revenue Code" means the Internal Revenue Code of 1986, as amended through December 
7.9 	31, 2014 April 1, 2015.

7.10 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
7.11 	December 31, 2014.

7.12 	Sec. 6. Minnesota Statutes 2014, section 290.01, subdivision 4a, is amended to read:
7.13 		Subd. 4a.Financial institution. (a) "Financial institution" means:
7.14 	(1) a holding company any corporation or other business entity registered (i) under 
7.15 	state law as a bank holding company; (ii) under the federal Bank Holding Company Act 
7.16 	of 1956, as amended; or (iii) as a savings and loan holding company under the federal 
7.17 	National Housing Act, as amended;
7.18 	(2) any regulated financial corporation; or a national bank organized and existing 
7.19 	as a national bank association pursuant to the provisions of United States Code, title 
7.20 	12, chapter 2;
7.21 	(3) any other corporation organized under the laws of the United States or organized 
7.22 	under the laws of this state or any other state or country that is carrying on the business of 
7.23 	a financial institution. a savings association or federal savings bank as defined in United 
7.24 	States Code, title 12, section 1813(b)(1);
7.25 	(4) any bank or thrift institution incorporated or organized under the laws of any state;
7.26 	(5) any corporation organized under United States Code, title 12, sections 611 to 631;
7.27 	(6) any agency or branch of a foreign depository as defined under United States 
7.28 	Code, title 12, section 3101;
7.29 	(7) any corporation or other business entity that is more than 50 percent owned, 
7.30 	directly or indirectly, by any person or business entity described in clauses (1) to (6), other 
7.31 	than an insurance company taxable under chapter 297I;
7.32 	(8) a corporation or other business entity that derives more than 50 percent of its 
7.33 	total gross income for financial accounting purposes from finance leases. For the purposes 
8.1 	of this clause, "gross income" is the average from the current tax year and immediately 
8.2 	preceding two years and excludes gross income from incidental or occasional transactions. 
8.3 	For purposes of this clause, "finance lease" means any lease transaction which is the 
8.4 	functional equivalent of an extension of credit, and that transfers substantially all of the 
8.5 	benefits and risks incident to the ownership of property, including any direct financing 
8.6 	lease or leverage lease that meets the criteria of Financial Accounting Standards Board 
8.7 	Statement No. 13, accounting for leases, or any other lease that is accounted for as 
8.8 	financing by a lessor under generally accepted accounting principles; or
8.9 	(9) any other person or business entity, other than an insurance company taxable under 
8.10 	chapter 297I, which derives more than 50 percent of its gross income from activities that an 
8.11 	entity described in clauses (2) to (6), or (8), is authorized to transact. For the purposes of 
8.12 	this clause, gross income does not include income from nonrecurring, extraordinary items.
8.13 	(b) "Holding company" means any corporation registered under the Federal Bank 
8.14 	Holding Company Act of 1956, as amended, or registered as a savings and loan holding 
8.15 	company under the Federal National Housing Act, as amended, or a federal savings 
8.16 	bank holding company. The commissioner is authorized to exclude any person from the 
8.17 	application of paragraph (a), clause (9), if the person proves by clear and convincing 
8.18 	evidence that the person's income-producing activity is not in substantial competition with 
8.19 	any person described in paragraph (a), clauses (2) to (6), or (8).
8.20 	(c) "Regulated financial corporation" means an institution, the deposits or accounts 
8.21 	of which are insured under the Federal Deposit Insurance Act or by the Federal Savings 
8.22 	and Loan Insurance Corporation, any institution which is a member of a Federal Home 
8.23 	Loan Bank, any other bank or thrift institution incorporated or organized under the laws of 
8.24 	any state or any foreign country which is engaged in the business of receiving deposits, 
8.25 	any corporation organized under the provisions of United States Code, title 12, sections 
8.26 	611 to 631 (Edge Act Corporations), and any agency of a foreign depository as defined in 
8.27 	United States Code, title 12, section 3101.
8.28 	(d) "Business of a financial institution" means:
8.29 	(1) the business that any corporation organized under the authority of the United 
8.30 	States or organized under the laws of this state or any other state or country does or has 
8.31 	authority to do which is substantially similar to the business which a corporation may be 
8.32 	created to do under chapters 46 to 55 or any business which a corporation is authorized 
8.33 	to do by those laws; or
8.34 	(2) the business that any corporation organized under the authority of the United 
8.35 	States or organized under the laws of this state or any other state or country does or has 
8.36 	authority to do if the corporation derives more than 50 percent of its gross income from 
9.1 	lending activities (including discounting obligations) in substantial competition with the 
9.2 	businesses described in clause (1). For purposes of this clause, the computation of the gross 
9.3 	income of a corporation does not include income from nonrecurring, extraordinary items.

9.4 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
9.5 	December 31, 2014.

9.6 	Sec. 7. Minnesota Statutes 2014, section 290.01, subdivision 7, is amended to read:
9.7 		Subd. 7.Resident. (a) The term "resident" means any individual domiciled 
9.8 	in Minnesota, except that an individual is not a "resident" for the period of time that 
9.9 	the individual is a "qualified individual" as defined in section 911(d)(1) of the Internal 
9.10 	Revenue Code, if the qualified individual notifies the county within three months of 
9.11 	moving out of the country that homestead status be revoked for the Minnesota residence 
9.12 	of the qualified individual, and the property is not classified as a homestead while the 
9.13 	individual remains a qualified individual.
9.14 	(b) "Resident" also means any individual domiciled outside the state who maintains 
9.15 	a place of abode in the state and spends in the aggregate more than one-half of the tax 
9.16 	year in Minnesota, unless:
9.17 	(1) the individual or the spouse of the individual is in the armed forces of the United 
9.18 	States; or
9.19 	(2) the individual is covered under the reciprocity provisions in section 290.081.
9.20 	For purposes of this subdivision, presence within the state for any part of a calendar 
9.21 	day constitutes a day spent in the state. Individuals shall keep adequate records to 
9.22 	substantiate the days spent outside the state, except that a day spent in Minnesota for the 
9.23 	primary purpose of receiving medical treatment by the taxpayer, or the spouse, child, or 
9.24 	parent of the taxpayer, is not treated as a day spent in Minnesota. "Medical treatment" 
9.25 	means treatment as defined in section 213(d)(1)(A) of the Internal Revenue Code.
9.26 	The term "abode" means a dwelling maintained by an individual, whether or not 
9.27 	owned by the individual and whether or not occupied by the individual, and includes a 
9.28 	dwelling place owned or leased by the individual's spouse.
9.29 	(c) In determining where an individual is domiciled, neither the commissioner nor 
9.30 	any court shall consider:
9.31 	(1) charitable contributions made by an the individual within or without the state in 
9.32 	determining if the individual is domiciled in Minnesota;
9.33 	(2) the location of the individual's attorney, certified public accountant, or financial 
9.34 	advisor; or
10.1 	(3) the place of business of a financial institution at which the individual applies for 
10.2 	any new type of credit or at which the individual opens or maintains any type of account.
10.3 	(d) For purposes of this subdivision, the following terms have the meanings given 
10.4 	them:
10.5 	(1) "financial advisor" means an individual, financial institution, or other firm 
10.6 	engaged in the business of providing services related to trust and estate administration; 
10.7 	financial advice and budgeting; investment selection or allocation; or purchase of life, 
10.8 	disability, long-term care, annuities, or similar insurance products; and includes certified 
10.9 	financial planners, registered investment advisors, securities broker-dealers, associated 
10.10 	persons and representatives of registered investment advisors and securities broker-dealers, 
10.11 	agents licensed to sell life insurance or annuities, and similar regulated products; and
10.12 	(2) "financial institution" means a financial institution as that term is defined in 
10.13 	section 47.015, subdivision 1, a state or nationally chartered credit union, and a registered 
10.14 	broker-dealer under the Securities and Exchange Act of 1934.

10.15 	EFFECTIVE DATE. Changes to paragraph (b) are effective for taxable years 
10.16 	beginning after December 31, 2014. Changes to paragraphs (c) and (d) are effective the day 
10.17 	following final enactment, except that they do not apply to any case for which an appeal, 
10.18 	petition, or complaint has been filed in tax court or district court on or after April 28, 2015.

10.19 	Sec. 8. Minnesota Statutes 2014, section 290.01, subdivision 19, as amended by Laws 
10.20 	2015, chapter 1, section 2, is amended to read:
10.21 		Subd. 19.Net income. The term "net income" means the federal taxable income, 
10.22 	as defined in section 63 of the Internal Revenue Code of 1986, as amended through the 
10.23 	date named in this subdivision, incorporating the federal effective dates of changes to the 
10.24 	Internal Revenue Code and any elections made by the taxpayer in accordance with the 
10.25 	Internal Revenue Code in determining federal taxable income for federal income tax 
10.26 	purposes, and with the modifications provided in subdivisions 19a to 19f.
10.27 	In the case of a regulated investment company or a fund thereof, as defined in section 
10.28 	851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment 
10.29 	company taxable income as defined in section 852(b)(2) of the Internal Revenue Code, 
10.30 	except that:
10.31 	(1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal 
10.32 	Revenue Code does not apply;
10.33 	(2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal 
10.34 	Revenue Code must be applied by allowing a deduction for capital gain dividends and 
11.1 	exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal 
11.2 	Revenue Code; and
11.3 	(3) the deduction for dividends paid must also be applied in the amount of any 
11.4 	undistributed capital gains which the regulated investment company elects to have treated 
11.5 	as provided in section 852(b)(3)(D) of the Internal Revenue Code.
11.6 	The net income of a real estate investment trust as defined and limited by section 
11.7 	856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust 
11.8 	taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
11.9 	The net income of a designated settlement fund as defined in section 468B(d) of 
11.10 	the Internal Revenue Code means the gross income as defined in section 468B(b) of the 
11.11 	Internal Revenue Code.
11.12 	The Internal Revenue Code of 1986, as amended through December 31, 2014 April 
11.13 	1, 2015, shall be in effect for taxable years beginning after December 31, 1996.
11.14 	Except as otherwise provided, references to the Internal Revenue Code in 
11.15 	subdivisions 19 to 19f mean the code in effect for purposes of determining net income for 
11.16 	the applicable year.

11.17 	EFFECTIVE DATE. This section is effective the day following final enactment, 
11.18 	except the changes incorporated by federal changes are effective retroactively at the same 
11.19 	time the changes were effective for federal purposes.

11.20 	Sec. 9. Minnesota Statutes 2014, section 290.01, is amended by adding a subdivision 
11.21 	to read:
11.22 		Subd. 19i.Accelerated recognition of certain installment sale gains. (a) For the 
11.23 	purposes of this subdivision, the following definitions apply:
11.24 	(1) "realized" means realized as defined by section 1001(b) of the Internal Revenue 
11.25 	Code;
11.26 	(2) "installment sale" means any installment sale under section 453 of the Internal 
11.27 	Revenue Code, and any other sale which is reported utilizing a method of accounting 
11.28 	authorized under subchapter E of the Internal Revenue Code, which allows taxpayers to 
11.29 	delay reporting or recognition of a realized gain until a future year; and
11.30 	(3) "allocable amount" means the full amount to be apportioned to Minnesota under 
11.31 	section 290.191, or the full amount to be assigned under section 290.17.
11.32 	(b) In the case of a nonresident individual or a person who becomes a nonresident 
11.33 	individual during the tax year, net income includes the allocable amount realized upon a 
11.34 	sale of the assets of, or the sale of any interest in, an S corporation or partnership which 
11.35 	operated in Minnesota during the taxable year of sale, including any income or gain to be 
12.1 	recognized in future years pursuant to an installment sale method of reporting under the 
12.2 	Internal Revenue Code.
12.3 	(c) An individual who becomes a nonresident of Minnesota in any year after an 
12.4 	installment sale is required to recognize the full amount of any income or gain not 
12.5 	recognized in a prior year on the individual's final Minnesota resident tax return.
12.6 	(d) Notwithstanding paragraphs (b) and (c), taxpayers may elect to defer the 
12.7 	recognition of installment sale gains by making an election under this paragraph. The 
12.8 	election must be filed on a form prescribed by the commissioner and must be filed by 
12.9 	the due date of the individual tax return, including any extension. Electing taxpayers 
12.10 	are required to:
12.11 	(1) file Minnesota tax returns in all subsequent years when gains from the installment 
12.12 	sale are recognized and reported to the Internal Revenue Service;
12.13 	(2) allocate gains to the state of Minnesota as though the gains were incurred in the 
12.14 	year of sale under section 290.191 or 290.17; and
12.15 	(3) include all relevant federal tax documents reporting the installment sale with 
12.16 	subsequent Minnesota tax returns.
12.17 	(e) Income or gain recognized for Minnesota purposes under paragraphs (b) and (c) 
12.18 	and subjected to tax, is excluded from net income in future years.

12.19 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
12.20 	December 31, 2014.

12.21 	Sec. 10. Minnesota Statutes 2014, section 290.01, subdivision 31, as amended by Laws 
12.22 	2015, chapter 1, section 3, is amended to read:
12.23 		Subd. 31.Internal Revenue Code. Unless specifically defined otherwise, "Internal 
12.24 	Revenue Code" means the Internal Revenue Code of 1986, as amended through December 
12.25 	31, 2014 April 1, 2015. Internal Revenue Code also includes any uncodified provision in 
12.26 	federal law that relates to provisions of the Internal Revenue Code that are incorporated 
12.27 	into Minnesota law. When used in this chapter, the reference to "subtitle A, chapter 1, 
12.28 	subchapter N, part 1, of the Internal Revenue Code" is to the Internal Revenue Code as 
12.29 	amended through March 18, 2010.

12.30 	EFFECTIVE DATE. This section is effective the day following final enactment, 
12.31 	except the changes incorporated by federal changes are effective retroactively at the same 
12.32 	time the changes were effective for federal purposes.

13.1 	Sec. 11. Minnesota Statutes 2014, section 290.06, is amended by adding a subdivision 
13.2 	to read:
13.3 		Subd. 37.Refundable film production credit. (a) A taxpayer is allowed a 
13.4 	credit against the taxes due under this chapter equal to 25 percent of film production 
13.5 	and postproduction expenditures made in Minnesota that are directly attributable to film 
13.6 	production in Minnesota.
13.7 	(b) For purposes of this subdivision, "film" has the meaning given in section 116U.26.
13.8 	(c) Expenditures that qualify for the credit under this subdivision must be 
13.9 	"production costs" as that term is defined in section 116U.26 and must be subject to 
13.10 	taxation in Minnesota.
13.11 	(d) If the amount of the credit under this subdivision exceeds the taxpayer's tax 
13.12 	liability under this chapter for the taxable year, the amount of the excess must be refunded 
13.13 	to the taxpayer. The amount necessary to pay the refunds under this subdivision is 
13.14 	appropriated annually from the general fund to the commissioner of revenue.

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

13.17 	Sec. 12. Minnesota Statutes 2014, section 290.0671, subdivision 1, is amended to read:
13.18 		Subdivision 1.Credit allowed. (a) An individual who is a resident of Minnesota is 
13.19 	allowed a credit against the tax imposed by this chapter equal to a percentage of earned 
13.20 	income. To receive a credit, a taxpayer must be eligible for a credit under section 32 of the 
13.21 	Internal Revenue Code.
13.22 	(b) For individuals with no qualifying children, the credit equals 2.10 percent of the 
13.23 	first $6,180 of earned income. The credit is reduced by 2.01 percent of earned income 
13.24 	or adjusted gross income, whichever is greater, in excess of $8,130, but in no case is 
13.25 	the credit less than zero.
13.26 	(c) For individuals with one qualifying child, the credit equals 9.35 percent of the 
13.27 	first $11,120 of earned income. The credit is reduced by 6.02 percent of earned income 
13.28 	or adjusted gross income, whichever is greater, in excess of $21,190, but in no case is 
13.29 	the credit less than zero.
13.30 	(d) For individuals with two or more qualifying children, the credit equals 11 percent 
13.31 	of the first $18,240 of earned income. The credit is reduced by 10.82 percent of earned 
13.32 	income or adjusted gross income, whichever is greater, in excess of $25,130, but in no 
13.33 	case is the credit less than zero.
13.34 	(e) For a nonresident or part-year resident, the credit must be allocated based on the 
13.35 	percentage calculated under section 290.06, subdivision 2c, paragraph (e).
14.1 	(f) For a person who was a resident for the entire tax year and has earned income 
14.2 	not subject to tax under this chapter, including income excluded under section 290.01, 
14.3 	subdivision 19b, clause (9), the credit must be allocated based on the ratio of federal 
14.4 	adjusted gross income reduced by the earned income not subject to tax under this chapter 
14.5 	over federal adjusted gross income. For purposes of this paragraph, the subtractions 
14.6 	for military pay under section 290.01, subdivision 19b, clauses (10) and (11), are not 
14.7 	considered "earned income not subject to tax under this chapter."
14.8 	For the purposes of this paragraph, the exclusion of combat pay under section 112 
14.9 	of the Internal Revenue Code is not considered "earned income not subject to tax under 
14.10 	this chapter."
14.11 	(g) For tax years beginning after December 31, 2007, and before December 31, 
14.12 	2010, and for tax years beginning after December 31, 2017, the $8,130 in paragraph (b), 
14.13 	the $21,190 in paragraph (c), and the $25,130 in paragraph (d), after being adjusted for 
14.14 	inflation under subdivision 7, are each increased by $3,000 for married taxpayers filing joint 
14.15 	returns. For tax years beginning after December 31, 2008, the commissioner shall annually 
14.16 	adjust the $3,000 by the percentage determined pursuant to the provisions of section 1(f) 
14.17 	of the Internal Revenue Code, except that in section 1(f)(3)(B), the word "2007" shall be 
14.18 	substituted for the word "1992." For 2009, the commissioner shall then determine the 
14.19 	percent change from the 12 months ending on August 31, 2007, to the 12 months ending on 
14.20 	August 31, 2008, and in each subsequent year, from the 12 months ending on August 31, 
14.21 	2007, to the 12 months ending on August 31 of the year preceding the taxable year. The 
14.22 	earned income thresholds as adjusted for inflation must be rounded to the nearest $10. If the 
14.23 	amount ends in $5, the amount is rounded up to the nearest $10. The determination of the 
14.24 	commissioner under this subdivision is not a rule under the Administrative Procedure Act.
14.25 	(h)(1) For tax years beginning after December 31, 2012, and before January 1, 2014, 
14.26 	the $5,770 in paragraph (b), the $15,080 in paragraph (c), and the $17,890 in paragraph (d), 
14.27 	after being adjusted for inflation under subdivision 7, are increased by $5,340 for married 
14.28 	taxpayers filing joint returns; and (2) for tax years beginning after December 31, 2013, and 
14.29 	before January 1, 2018, the $8,130 in paragraph (b), the $21,190 in paragraph (c), and the 
14.30 	$25,130 in paragraph (d), after being adjusted for inflation under subdivision 7, are each 
14.31 	increased by $5,000 for married taxpayers filing joint returns. For tax years beginning 
14.32 	after December 31, 2010, and before January 1, 2012, and for tax years beginning after 
14.33 	December 31, 2013, and before January 1, 2018, the commissioner shall annually adjust 
14.34 	the $5,000 by the percentage determined pursuant to the provisions of section 1(f) of 
14.35 	the Internal Revenue Code, except that in section 1(f)(3)(B), the word "2008" shall be 
14.36 	substituted for the word "1992." For 2011, the commissioner shall then determine the 
15.1 	percent change from the 12 months ending on August 31, 2008, to the 12 months ending on 
15.2 	August 31, 2010, and in each subsequent year, from the 12 months ending on August 31, 
15.3 	2008, to the 12 months ending on August 31 of the year preceding the taxable year. The 
15.4 	earned income thresholds as adjusted for inflation must be rounded to the nearest $10. If the 
15.5 	amount ends in $5, the amount is rounded up to the nearest $10. The determination of the 
15.6 	commissioner under this subdivision is not a rule under the Administrative Procedure Act.
15.7 	(i) The commissioner shall construct tables showing the amount of the credit at 
15.8 	various income levels and make them available to taxpayers. The tables shall follow 
15.9 	the schedule contained in this subdivision, except that the commissioner may graduate 
15.10 	the transition between income brackets.

15.11 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
15.12 	December 31, 2014.

15.13 	Sec. 13. Minnesota Statutes 2014, section 290.0671, subdivision 6a, is amended to read:
15.14 		Subd. 6a.TANF appropriation for working family credit expansion. (a) On 
15.15 	an annual basis the commissioner of revenue, with the assistance of the commissioner 
15.16 	of human services, shall calculate the value of the refundable portion of the Minnesota 
15.17 	Working Family Credit provided under this section that qualifies for payment with funds 
15.18 	from the federal Temporary Assistance for Needy Families (TANF) block grant. Of this 
15.19 	total amount, the commissioner of revenue shall estimate the portion entailed by the 
15.20 	expansion of the credit rates provided in Laws 2000, chapter 490, article 4, section 17, 
15.21 	for individuals with qualifying children over the rates provided in Laws 1999, chapter 
15.22 	243, article 2, section 12.
15.23 	(b) An amount sufficient to pay the refunds entailed by the expansion of the credit 
15.24 	rates provided in Laws 2000, chapter 490, article 4, section 17, for individuals with 
15.25 	qualifying children over the rates provided in Laws 1999, chapter 243, article 2, section 
15.26 	12, as estimated in paragraph (a), is appropriated to the commissioner of human services 
15.27 	from the federal Temporary Assistance for Needy Families (TANF) block grant funds, for 
15.28 	transfer to the commissioner of revenue for deposit in the general fund.

15.29 	EFFECTIVE DATE. This section is effective only for transfers in fiscal year 2015.

15.30 	Sec. 14. Minnesota Statutes 2014, section 290.0674, subdivision 1, is amended to read:
15.31 		Subdivision 1.Credit allowed. An individual is allowed a credit against the 
15.32 	tax imposed by this chapter in an amount equal to 75 percent of the amount paid for 
16.1 	education-related expenses for a qualifying child in kindergarten preschool through grade 
16.2 	12. For purposes of this section, "education-related expenses" means:
16.3 	(1) fees or tuition for instruction by an instructor under section 120A.22, subdivision 
16.4 	10, clause (1), (2), (3), (4), or (5), or a member of the Minnesota Music Teachers 
16.5 	Association, and who is not a lineal ancestor or sibling of the dependent for instruction 
16.6 	outside the regular school day or school year, including tutoring, driver's education 
16.7 	offered as part of school curriculum, regardless of whether it is taken from a public or 
16.8 	private entity or summer camps, in grade or age appropriate curricula that supplement 
16.9 	curricula and instruction available during the regular school year, that assists a dependent 
16.10 	to improve knowledge of core curriculum areas or to expand knowledge and skills under 
16.11 	the required academic standards under section 120B.021, subdivision 1, and the elective 
16.12 	standard under section 120B.022, subdivision 1, clause (2), and that do not include the 
16.13 	teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such 
16.14 	tenets, doctrines, or worship;
16.15 	(2) expenses for textbooks, including books and other instructional materials and 
16.16 	equipment purchased or leased for use in preschool, elementary, and secondary schools 
16.17 	in teaching only those subjects legally and commonly taught in public elementary and 
16.18 	secondary schools in this state. "Textbooks" does not include instructional books and 
16.19 	materials used in the teaching of religious tenets, doctrines, or worship, the purpose of 
16.20 	which is to instill such tenets, doctrines, or worship, nor does it include books or materials 
16.21 	for extracurricular activities including sporting events, musical or dramatic events, speech 
16.22 	activities, driver's education, or similar programs;
16.23 	(3) a maximum expense of $200 per family for personal computer hardware, 
16.24 	excluding single purpose processors, and educational software that assists a dependent to 
16.25 	improve knowledge of core curriculum areas or to expand knowledge and skills under 
16.26 	the required academic standards under section 120B.021, subdivision 1, and the elective 
16.27 	standard under section 120B.022, subdivision 1, clause (2), purchased for use in the 
16.28 	taxpayer's home and not used in a trade or business regardless of whether the computer is 
16.29 	required by the dependent's school; and
16.30 	(4) the amount paid to others for transportation of a qualifying child attending an a 
16.31 	preschool, elementary, or secondary school situated in Minnesota, North Dakota, South 
16.32 	Dakota, Iowa, or Wisconsin, wherein a resident of this state may legally fulfill the state's 
16.33 	compulsory attendance laws, which is not operated for profit, and which adheres to the 
16.34 	provisions of the Civil Rights Act of 1964 and chapter 363A.
16.35 	For purposes of this section, "qualifying child" has the meaning given in section 
16.36 	32(c)(3) of the Internal Revenue Code who is at least four years old when the expenses 
17.1 	are incurred. "Preschool" means the Head Start program under section 119A.50 or a 
17.2 	school district prekindergarten program.

17.3 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
17.4 	December 31, 2014.

17.5 	Sec. 15. Minnesota Statutes 2014, section 290.0674, subdivision 2, is amended to read:
17.6 		Subd. 2.Limitations. (a) For claimants with income not greater than $33,500 
17.7 	$45,000, the maximum credit allowed for a family is $1,000 multiplied by the number 
17.8 	of qualifying children in kindergarten preschool through grade 12 in the family. The 
17.9 	maximum credit for families with one qualifying child in kindergarten preschool through 
17.10 	grade 12 is reduced by $1 for each $4 of household income over $33,500 $45,000, and 
17.11 	the maximum credit for families with two or more qualifying children in kindergarten 
17.12 	through grade 12 is reduced by $2 for each $4 of household income over $33,500 $45,000, 
17.13 	but in no case is the credit less than zero.
17.14 	For purposes of this section "income" has the meaning given in section 290.067, 
17.15 	subdivision 2a. In the case of a married claimant, a credit is not allowed unless a joint 
17.16 	income tax return is filed.
17.17 	(b) For a nonresident or part-year resident, the credit determined under subdivision 1 
17.18 	and the maximum credit amount in paragraph (a) must be allocated using the percentage 
17.19 	calculated in section 290.06, subdivision 2c, paragraph (e).

17.20 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
17.21 	December 31, 2014.

17.22 	Sec. 16. Minnesota Statutes 2014, section 290.068, subdivision 1, is amended to read:
17.23 		Subdivision 1.Credit allowed. Subject to the requirements in subdivision 8, a 
17.24 	corporation, partners in a partnership, or shareholders in a corporation treated as an "S" 
17.25 	corporation under section 290.9725 are individual, trust, or estate is allowed a credit 
17.26 	against the tax computed under this chapter for the taxable year equal to:
17.27 	(a) ten percent of the first $2,000,000 of the excess (if any) of
17.28 	(1) the qualified research expenses for the taxable year, over
17.29 	(2) the base amount; and
17.30 	(b) 2.5 percent on all of such excess expenses over $2,000,000.

17.31 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
17.32 	December 31, 2014.

18.1 	Sec. 17. Minnesota Statutes 2014, section 290.068, subdivision 2, is amended to read:
18.2 		Subd. 2.Definitions. For purposes of this section, the following terms have the 
18.3 	meanings given.
18.4 	(a) "Qualified research expenses" means (i) qualified research expenses and basic 
18.5 	research payments as defined in section 41(b) and (e) of the Internal Revenue Code, except 
18.6 	it does not include expenses incurred for qualified research or basic research conducted 
18.7 	outside the state of Minnesota pursuant to section 41(d) and (e) of the Internal Revenue 
18.8 	Code; and (ii) contributions to a nonprofit corporation established and operated pursuant 
18.9 	to the provisions of chapter 317A for the purpose of promoting the establishment and 
18.10 	expansion of business in this state, provided the contributions are invested by the nonprofit 
18.11 	corporation for the purpose of providing funds for small, technologically innovative 
18.12 	enterprises in Minnesota during the early stages of their development.
18.13 	(b) "Qualified research" means qualified research as defined in section 41(d) of the 
18.14 	Internal Revenue Code, except that the term does not include qualified research conducted 
18.15 	outside the state of Minnesota.
18.16 	(c) "Base amount" means base amount as defined in section 41(c) of the Internal 
18.17 	Revenue Code, except that the average annual gross receipts must be calculated using 
18.18 	Minnesota sales or receipts under section 290.191 and the definitions contained in clauses 
18.19 	(a) and (b) shall apply. If there are inadequate records or the records are unavailable to 
18.20 	compute or verify the base percentage, a fixed base percentage of 16 percent must be used.

18.21 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
18.22 	December 31, 2014.

18.23 	Sec. 18. Minnesota Statutes 2014, section 290.068, subdivision 3, is amended to read:
18.24 		Subd. 3.Limitation; carryover. (a) Except as provided in subdivision 6a, 
18.25 	paragraph (b), the credit for a taxable year beginning before January 1, 2010, and after 
18.26 	December 31, 2012, shall not exceed the liability for tax. "Liability for tax" for purposes 
18.27 	of this section means the sum of the tax imposed under section 290.06, subdivisions 1 and 
18.28 	2c, for the taxable year reduced by the sum of the nonrefundable credits allowed under 
18.29 	this chapter, on all of the entities required to be included on the combined report of the 
18.30 	unitary business. If the amount of the credit allowed exceeds the liability for tax of the 
18.31 	taxpayer, but is allowed as a result of the liability for tax of other members of the unitary 
18.32 	group for the taxable year, the taxpayer must allocate the excess as a research credit 
18.33 	to another member of the unitary group.
18.34 	(b) In the case of a corporation which is a partner in a partnership, the credit allowed 
18.35 	for the taxable year shall not exceed the lesser of the amount determined under paragraph 
19.1 	(a) for the taxable year or an amount (separately computed with respect to the corporation's 
19.2 	interest in the trade or business or entity) equal to the amount of tax attributable to that 
19.3 	portion of taxable income which is allocable or apportionable to the corporation's interest 
19.4 	in the trade or business or entity.
19.5 	(c) If the amount of the credit determined under this section for any taxable year 
19.6 	exceeds the limitation under paragraph (a) or (b), including amounts allowed as a refund 
19.7 	under subdivision 6a, paragraph (b), or allocated to other members of the unitary group, 
19.8 	the excess shall be a research credit carryover to each of the 15 succeeding taxable years. 
19.9 	The entire amount of the excess unused credit for the taxable year shall be carried first 
19.10 	to the earliest of the taxable years to which the credit may be carried and then to each 
19.11 	successive year to which the credit may be carried. The amount of the unused credit 
19.12 	which may be added under this clause shall not exceed the taxpayer's liability for tax 
19.13 	less the research credit for the taxable year.

19.14 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
19.15 	December 31, 2014.

19.16 	Sec. 19. Minnesota Statutes 2014, section 290.068, subdivision 6a, is amended to read:
19.17 		Subd. 6a.Credit to be refundable. (a) If the amount of credit allowed in this 
19.18 	section for qualified research expenses incurred in taxable years beginning after December 
19.19 	31, 2009, and before January 1, 2013, exceeds the taxpayer's tax liability under this 
19.20 	chapter, the commissioner shall refund the excess amount. The credit allowed for qualified 
19.21 	research expenses incurred in taxable years beginning after December 31, 2009, and before 
19.22 	January 1, 2013, must be used before any research credit earned under subdivision 3.
19.23 	(b) If the first $15,000 of the credit allowed in this section for qualified research 
19.24 	expenses incurred in taxable years beginning after December 31, 2014, exceeds the 
19.25 	taxpayer's tax liability under this chapter, the commissioner shall refund the excess 
19.26 	amount. The $15,000 limit must be applied at the corporation, partnership, or other entity 
19.27 	level, including sole proprietorships. The credit allowed for qualified research expenses 
19.28 	incurred in taxable years beginning before January 1, 2015, must be used before any 
19.29 	research credit earned under subdivision 3.

19.30 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
19.31 	December 31, 2014.

19.32 	Sec. 20. Minnesota Statutes 2014, section 290.068, is amended by adding a subdivision 
19.33 	to read:
20.1 		Subd. 8.Application and certification requirement for sole proprietors. (a) A 
20.2 	taxpayer who is a sole proprietor claiming a credit under this section must submit an 
20.3 	application to the commissioner for determination that the expenses for which the credit is 
20.4 	claimed are qualified research expenses. The application must be submitted by September 
20.5 	15 of the calendar year following the taxable year in which the qualified research 
20.6 	expenses were incurred.  The application must be in a form and manner prescribed by the 
20.7 	commissioner and must contain information sufficient to verify that the expenses for 
20.8 	which the credit is claimed under this section are qualified research expenses.
20.9 	(b) The commissioner must notify the sole proprietor of the determination of the 
20.10 	application under paragraph (a) no later than 60 days after the application is received.
20.11 	(c) Upon approving an application for credit under paragraph (a), the commissioner 
20.12 	must issue a credit certificate to the sole proprietor that verifies eligibility for the credit 
20.13 	and states the amount of credit and the taxable year to which the credit applies.
20.14 	(d) The sole proprietor must claim the credit under this section in the return for the 
20.15 	taxable year immediately following the taxable year to which the credit applies. The 
20.16 	return must contain a copy of the credit certificate issued under paragraph (c).
20.17 	(e) A credit must not be issued under this section unless the commissioner has 
20.18 	received the certification required under paragraph (c).

20.19 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
20.20 	December 31, 2014.

20.21 	Sec. 21. [290.0693] MINNESOTA COLLEGE SAVINGS PLAN CREDIT.
20.22 		Subdivision 1.Definitions. For purposes of this section, the terms "Minnesota 
20.23 	college savings plan," "account," "nonqualified distribution," and "plan administrator" 
20.24 	have the meanings given them in chapter 136G.
20.25 		Subd. 2.Credit allowed. (a) A credit of up to $500 is allowed against the tax 
20.26 	imposed by this chapter, subject to the limitations in paragraph (b).
20.27 	(b) The credit allowed must be calculated by applying the following rates to the 
20.28 	amount contributed to a Minnesota college savings plan, as established in chapter 136G, 
20.29 	in a taxable year:
20.30 	(1) 200 percent for individual filers and married couples filing a joint return who 
20.31 	have federal adjusted gross income of not more than 150 percent of the federal poverty 
20.32 	guideline for a household size of four;
20.33 	(2) 100 percent for individual filers and married couples filing a joint return who 
20.34 	have federal adjusted gross income over 150 percent, but not more than 200 percent of 
20.35 	the federal poverty guideline for a household size of four;
21.1 	(3) 50 percent for individual filers who have federal adjusted gross income over 
21.2 	200 percent of the federal poverty guideline for a household size of four, but not more 
21.3 	than $80,000; and
21.4 	(4) 50 percent for married couples filing a joint return who have federal adjusted 
21.5 	gross income over 200 percent of the federal poverty guideline for a household size of 
21.6 	four, except that the credit is reduced by $1 for every $160 over $80,000 in federal 
21.7 	adjusted gross income.
21.8 	(c) For a nonresident or a part-year resident, the credit under this subdivision 
21.9 	must be allocated based on the percentage calculated under section 290.06, subdivision 
21.10 	2c, paragraph (e).
21.11 	(d) The $80,000 in paragraph (b), clauses (3) and (4), used to calculate the credit and 
21.12 	phaseout must be adjusted for inflation. The commissioner shall adjust by the percentage 
21.13 	determined pursuant to the provisions of section 1(f) of the Internal Revenue Code, except 
21.14 	that in section 1(f)(3)(B) the word "2014" shall be substituted for the word "1992." For 
21.15 	2016, the commissioner shall then determine the percent change from the 12 months ending 
21.16 	on August 31, 2014, to the 12 months ending on August 31, 2015, and in each subsequent 
21.17 	year, from the 12 months ending on August 31, 2014, to the 12 months ending on August 
21.18 	31 of the year preceding the taxable year. The earned income thresholds as adjusted for 
21.19 	inflation must be rounded to the nearest $10 amount. If the amount ends in $5, the amount 
21.20 	is rounded up to the nearest $10 amount. The determination of the commissioner under this 
21.21 	subdivision is not a rule under the Administrative Procedure Act including section 14.386.
21.22 		Subd. 3.Credit transfer. (a) The credit allowed under this section must be 
21.23 	calculated after applying all other credits to the taxpayer's tax liability. If the amount of 
21.24 	credit that the taxpayer is eligible to receive under this section exceeds the taxpayer's tax 
21.25 	liability after applying all other credits, the commissioner shall transfer the excess amount 
21.26 	pursuant to the requirements of paragraph (b).
21.27 	(b) The commissioner shall transfer the excess amount calculated under paragraph 
21.28 	(a) to the plan administrator to be deposited to the taxpayer's Minnesota college savings 
21.29 	plan account. If the taxpayer made contributions to more than one account, the credit 
21.30 	amount must be allocated based on the contributions to each account as a percentage 
21.31 	of the total contributions to all accounts.
21.32 		Subd. 4.Verification of contribution amounts. The commissioner of the Office of 
21.33 	Higher Education must provide sufficient information to the commissioner of revenue to 
21.34 	verify the taxpayer's annual contribution amounts to an account.
22.1 		Subd. 5.Recapture of credit. In the case of a nonqualified distribution, the 
22.2 	taxpayer is liable to the commissioner for the lesser of: ten percent of the amount of the 
22.3 	nonqualified distribution, or the sum of credits received under this section for all years.
22.4 		Subd. 6.Appropriation. An amount sufficient to pay the refunds required by this 
22.5 	section is appropriated to the commissioner from the general fund.

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

22.8 	Sec. 22. [290.0694] VETERANS JOBS TAX CREDIT.
22.9 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms 
22.10 	have the meanings given.
22.11 	(b)(1) "Qualified employee" means an employee as defined in section 290.92, 
22.12 	subdivision 1, who meets the following criteria:
22.13 	(i) the employee is a resident of Minnesota on the date of hire;
22.14 	(ii) the employee is paid wages as defined in section 290.92, subdivision 1; and
22.15 	(iii) the employee's wages are attributable to Minnesota under section 290.191, 
22.16 	subdivision 12;
22.17 	(2) "Qualified employee" does not include:
22.18 	(i) any employee who bears any of the relationships to the employer described in 
22.19 	subparagraphs (A) to (G) of section 152(d)(2) of the Internal Revenue Code;
22.20 	(ii) if the employer is a corporation, an employee who owns, directly or indirectly, 
22.21 	more than 50 percent in value of the outstanding stock of the corporation, or if the 
22.22 	employer is an entity other than a corporation, an employee who owns, directly or 
22.23 	indirectly, more than 50 percent of the capital and profits interests in the entity, as 
22.24 	determined with the application of section 267(c) of the Internal Revenue Code; or
22.25 	(iii) if the employer is an estate or trust, any employee who is a fiduciary of the estate 
22.26 	or trust, or is an individual who bears any of the relationships described in subparagraphs 
22.27 	(A) to (G) of section 152(d)(2) of the Internal Revenue Code to a grantor, beneficiary, 
22.28 	or fiduciary of the estate or trust.
22.29 	(c) "Qualified employer" means an employer that hired an unemployed veteran 
22.30 	as a qualified employee.
22.31 	(d) "Unemployed veteran" is a veteran who was unemployed on the date of hire.
22.32 	(e) "Veteran" has the meaning given in section 197.447.
22.33 	(f) "Date of hire" means the day that the qualified employee begins performing 
22.34 	services as an employee of the qualified employer.
23.1 		Subd. 2.Credit for hiring unemployed veterans. A qualified employer who 
23.2 	is required to file a return under section 289A.08, subdivision 1, 2, or 3, and hires an 
23.3 	unemployed veteran as a qualified employee, is allowed a credit against the tax imposed 
23.4 	by this chapter equal to ten percent of the wages paid to the qualified employee during the 
23.5 	taxable year, but the amount of the credit shall not exceed $2,500. The credit is limited 
23.6 	to the liability for tax under this chapter for the taxable year. A qualified employer is 
23.7 	not eligible for the credit if the qualified employer currently employs or has previously 
23.8 	employed the qualified veteran.
23.9 		Subd. 3.Appropriation. An amount sufficient to pay the refunds required by this 
23.10 	section is appropriated to the commissioner from the general fund.
23.11 		Subd. 4.Flow-through entities. Credits granted to a partnership, limited liability 
23.12 	company taxed as a partnership, S corporation, or multiple owners of a business are passed 
23.13 	through to the partners, members, shareholders, or owners, respectively, pro rata to each 
23.14 	partner, member, shareholder, or owner based on their share of the entity's assets or as 
23.15 	specially allocated in their organizational documents, as of the last day of the taxable year.

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

23.18 	Sec. 23. [290.0695] EMPLOYEE CREDIT FOR CERTAIN 
23.19 	EMPLOYER-PROVIDED FITNESS FACILITY EXPENSES.
23.20 		Subdivision 1.Credit allowed. (a) A taxpayer is allowed a credit against the tax 
23.21 	imposed by this chapter, subject to the requirements of this section. The credit shall not 
23.22 	exceed the taxpayer's tax liability. For married taxpayers filing a joint return, the credit is 
23.23 	$60. For all other taxpayers, the credit is $30.
23.24 	(b) The credit is allowed to an employee whose employer either:
23.25 	(1) pays a portion of any fees, dues, or membership expenses on behalf of the 
23.26 	employee to a fitness facility; or
23.27 	(2) reimburses the employee for direct payment of fees, dues, or membership 
23.28 	expenses made by the employee to a fitness facility.
23.29 	(c) The credit under this section is only allowed to individuals who use the fitness 
23.30 	facility for the preservation, maintenance, encouragement, or development of physical 
23.31 	fitness an average of four days per month, but if the fitness facility is used fewer than three 
23.32 	days per month, the credit is not allowed. The commissioner shall prescribe the form and 
23.33 	manner in which eligibility for the credit is determined.
23.34 	(d) For purposes of this section, "fitness facility" means a facility located in the state:
24.1 	(1) that provides instruction in a program of physical exercise; offers facilities for 
24.2 	the preservation, maintenance, encouragement, or development of physical fitness; or is 
24.3 	the site of such a program of a state or local government;
24.4 	(2) that is not a private club owned and operated by its members;
24.5 	(3) that does not offer golf, hunting, sailing, or horseback riding facilities;
24.6 	(4) whose fitness facility is not incidental to its overall function and purpose;
24.7 	(5) that is compliant with antidiscrimination laws under chapter 363A and applicable 
24.8 	federal antidiscrimination laws; and
24.9 	(6) is located off the employer's premises.
24.10 		Subd. 2.Limitation. The credit under this section applies only if the employer's 
24.11 	payment of fees, dues, or membership expenses to a fitness facility is available on 
24.12 	substantially the same terms to each member of a group of employees defined under a 
24.13 	reasonable classification by the employer, but no classification may include only highly 
24.14 	compensated employees, as defined under section 414(q) of the Internal Revenue Code, or 
24.15 	any other group that includes only executives, directors, or other managerial employees. 
24.16 		Subd. 3.Nonresidents and part-year residents; flow-through entities. For a 
24.17 	nonresident or part-year resident, the credit must be allocated based on the percentage 
24.18 	calculated under section 290.06, subdivision 2c, paragraph (e).

24.19 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
24.20 	December 31, 2014.

24.21 	Sec. 24. Minnesota Statutes 2014, section 290.17, subdivision 4, is amended to read:
24.22 		Subd. 4.Unitary business principle. (a) If a trade or business conducted wholly 
24.23 	within this state or partly within and partly without this state is part of a unitary business, 
24.24 	the entire income of the unitary business is subject to apportionment pursuant to section 
24.25 	290.191. Notwithstanding subdivision 2, paragraph (c), none of the income of a unitary 
24.26 	business is considered to be derived from any particular source and none may be allocated 
24.27 	to a particular place except as provided by the applicable apportionment formula. The 
24.28 	provisions of this subdivision do not apply to business income subject to subdivision 5, 
24.29 	income of an insurance company, or income of an investment company determined under 
24.30 	section 290.36.
24.31 	(b) The term "unitary business" means business activities or operations which 
24.32 	result in a flow of value between them. The term may be applied within a single legal 
24.33 	entity or between multiple entities and without regard to whether each entity is a sole 
24.34 	proprietorship, a corporation, a partnership or a trust.
25.1 	(c) Unity is presumed whenever there is unity of ownership, operation, and use, 
25.2 	evidenced by centralized management or executive force, centralized purchasing, 
25.3 	advertising, accounting, or other controlled interaction, but the absence of these 
25.4 	centralized activities will not necessarily evidence a nonunitary business. Unity is also 
25.5 	presumed when business activities or operations are of mutual benefit, dependent upon or 
25.6 	contributory to one another, either individually or as a group.
25.7 	(d) Where a business operation conducted in Minnesota is owned by a business 
25.8 	entity that carries on business activity outside the state different in kind from that 
25.9 	conducted within this state, and the other business is conducted entirely outside the state, it 
25.10 	is presumed that the two business operations are unitary in nature, interrelated, connected, 
25.11 	and interdependent unless it can be shown to the contrary.
25.12 	(e) Unity of ownership does not exist when two or more corporations are involved 
25.13 	unless more than 50 percent of the voting stock of each corporation is directly or indirectly 
25.14 	owned by a common owner or by common owners, either corporate or noncorporate, or 
25.15 	by one or more of the member corporations of the group. For this purpose, the term 
25.16 	"voting stock" shall include membership interests of mutual insurance holding companies 
25.17 	formed under section 66A.40.
25.18 	(f) The net income and apportionment factors under section 290.191 or 290.20 of 
25.19 	foreign corporations and other foreign entities which are part of a unitary business shall 
25.20 	not be included in the net income or the apportionment factors of the unitary business; 
25.21 	except that the income and apportionment factors of a foreign entity, other than an entity 
25.22 	treated as a C corporation for federal income tax purposes, that are included in the federal 
25.23 	taxable income, as defined in section 63 of the Internal Revenue Code as amended through 
25.24 	the date named in section 290.01, subdivision 19, of a domestic corporation, domestic 
25.25 	entity, or individual must be included in determining net income and the factors to be used 
25.26 	in the apportionment of net income pursuant to section 290.191 or 290.20. A foreign 
25.27 	corporation or other foreign entity which is not included on a combined report and which 
25.28 	is required to file a return under this chapter shall file on a separate return basis.
25.29 	(g) For purposes of determining the net income of a unitary business and the factors 
25.30 	to be used in the apportionment of net income pursuant to section 290.191 or 290.20, there 
25.31 	must be included only the income and apportionment factors of domestic corporations 
25.32 	or other domestic entities that are determined to be part of the unitary business pursuant 
25.33 	to this subdivision, notwithstanding that foreign corporations or other foreign entities 
25.34 	might be included in the unitary business; except that the income and apportionment 
25.35 	factors of a foreign entity, other than an entity treated as a C corporation for federal 
25.36 	income tax purposes, that is included in the federal taxable income, as defined in section 
26.1 	63 of the Internal Revenue Code as amended through the date named in section 290.01, 
26.2 	subdivision 19, of a domestic corporation, domestic entity, or individual must be included 
26.3 	in determining net income and the factors to be used in the apportionment of net income 
26.4 	pursuant to section 290.191 or 290.20.
26.5 	(h) Each corporation or other entity, except a sole proprietorship, that is part of a 
26.6 	unitary business must file combined reports as the commissioner determines. On the 
26.7 	reports, all intercompany transactions between entities included pursuant to paragraph 
26.8 	(g) must be eliminated and the entire net income of the unitary business determined in 
26.9 	accordance with this subdivision is apportioned among the entities by using each entity's 
26.10 	Minnesota factors for apportionment purposes in the numerators of the apportionment 
26.11 	formula and the total factors for apportionment purposes of all entities included pursuant 
26.12 	to paragraph (g) in the denominators of the apportionment formula. Except as otherwise 
26.13 	provided by paragraph (f), all sales of the unitary business made within this state pursuant 
26.14 	to section 290.191 or 290.20 must be included on the combined report of a corporation or 
26.15 	other entity that is a member of the unitary business and is subject to the jurisdiction of 
26.16 	this state to impose tax under this chapter.
26.17 	(i) If a corporation has been divested from a unitary business and is included in a 
26.18 	combined report for a fractional part of the common accounting period of the combined 
26.19 	report:
26.20 	(1) its income includable in the combined report is its income incurred for that part 
26.21 	of the year determined by proration or separate accounting; and
26.22 	(2) its sales, property, and payroll included in the apportionment formula must 
26.23 	be prorated or accounted for separately.
26.24 	(j) For purposes of this subdivision, "insurance company" means any company that is:
26.25 	(1) licensed to engage in the business of insurance in Minnesota pursuant to chapter 
26.26 	60A; or
26.27 	(2) domiciled and licensed to engage in the business of insurance in another state 
26.28 	or country that imposes retaliatory taxes, and that does not grant, on a reciprocal basis, 
26.29 	exemption from such retaliatory taxes to insurance companies or their agents domiciled 
26.30 	in Minnesota.
26.31 	(k) For the purposes of this subdivision, "retaliatory taxes" means taxes imposed on 
26.32 	insurance companies organized in another state or country that result from the fact that an 
26.33 	insurance company organized in the taxing jurisdiction and doing business in the other 
26.34 	jurisdiction is subject to taxes, fines, deposits, penalties, licenses, or fees in an amount 
26.35 	exceeding that imposed by the taxing jurisdiction upon an insurance company organized in 
26.36 	the other state or country and doing business to the same extent in the taxing jurisdiction.

27.1 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
27.2 	December 31, 2014.

27.3 	Sec. 25. Minnesota Statutes 2014, section 290.191, subdivision 5, is amended to read:
27.4 		Subd. 5.Determination of sales factor. For purposes of this section, the following 
27.5 	rules apply in determining the sales factor.
27.6 	(a) The sales factor includes all sales, gross earnings, or receipts received in the 
27.7 	ordinary course of the business, except that the following types of income are not included 
27.8 	in the sales factor:
27.9 	(1) interest;
27.10 	(2) dividends;
27.11 	(3) sales of capital assets as defined in section 1221 of the Internal Revenue Code;
27.12 	(4) sales of property used in the trade or business, except sales of leased property of 
27.13 	a type which is regularly sold as well as leased; and
27.14 	(5) sales of debt instruments as defined in section 1275(a)(1) of the Internal Revenue 
27.15 	Code or sales of stock.; and
27.16 	(6) sales of derivatives including, but not limited to, swaps, options, futures, and 
27.17 	forwards.
27.18 	(b) Sales of tangible personal property are made within this state if the property is 
27.19 	received by a purchaser at a point within this state, regardless of the f.o.b. point, other 
27.20 	conditions of the sale, or the ultimate destination of the property.
27.21 	(c) Tangible personal property delivered to a common or contract carrier or foreign 
27.22 	vessel for delivery to a purchaser in another state or nation is a sale in that state or nation, 
27.23 	regardless of f.o.b. point or other conditions of the sale.
27.24 	(d) Notwithstanding paragraphs (b) and (c), when intoxicating liquor, wine, 
27.25 	fermented malt beverages, cigarettes, or tobacco products are sold to a purchaser who is 
27.26 	licensed by a state or political subdivision to resell this property only within the state of 
27.27 	ultimate destination, the sale is made in that state.
27.28 	(e) Sales made by or through a corporation that is qualified as a domestic 
27.29 	international sales corporation under section 992 of the Internal Revenue Code are not 
27.30 	considered to have been made within this state.
27.31 	(f) Sales, rents, royalties, and other income in connection with real property is 
27.32 	attributed to the state in which the property is located.
27.33 	(g) Receipts from the lease or rental of tangible personal property, including finance 
27.34 	leases and true leases, must be attributed to this state if the property is located in this 
27.35 	state and to other states if the property is not located in this state. Receipts from the 
28.1 	lease or rental of moving property including, but not limited to, motor vehicles, rolling 
28.2 	stock, aircraft, vessels, or mobile equipment are included in the numerator of the receipts 
28.3 	factor to the extent that the property is used in this state. The extent of the use of moving 
28.4 	property is determined as follows:
28.5 	(1) A motor vehicle is used wholly in the state in which it is registered.
28.6 	(2) The extent that rolling stock is used in this state is determined by multiplying 
28.7 	the receipts from the lease or rental of the rolling stock by a fraction, the numerator of 
28.8 	which is the miles traveled within this state by the leased or rented rolling stock and the 
28.9 	denominator of which is the total miles traveled by the leased or rented rolling stock.
28.10 	(3) The extent that an aircraft is used in this state is determined by multiplying the 
28.11 	receipts from the lease or rental of the aircraft by a fraction, the numerator of which is 
28.12 	the number of landings of the aircraft in this state and the denominator of which is the 
28.13 	total number of landings of the aircraft.
28.14 	(4) The extent that a vessel, mobile equipment, or other mobile property is used in 
28.15 	the state is determined by multiplying the receipts from the lease or rental of the property 
28.16 	by a fraction, the numerator of which is the number of days during the taxable year the 
28.17 	property was in this state and the denominator of which is the total days in the taxable year.
28.18 	(h) Royalties and other income received for the use of or for the privilege of using 
28.19 	intangible property, including patents, know-how, formulas, designs, processes, patterns, 
28.20 	copyrights, trade names, service names, franchises, licenses, contracts, customer lists, or 
28.21 	similar items, must be attributed to the state in which the property is used by the purchaser. 
28.22 	If the property is used in more than one state, the royalties or other income must be 
28.23 	apportioned to this state pro rata according to the portion of use in this state. If the portion 
28.24 	of use in this state cannot be determined, the royalties or other income must be excluded 
28.25 	from both the numerator and the denominator. Intangible property is used in this state if 
28.26 	the purchaser uses the intangible property or the rights therein in the regular course of its 
28.27 	business operations in this state, regardless of the location of the purchaser's customers.
28.28 	(i) Sales of intangible property are made within the state in which the property is 
28.29 	used by the purchaser. If the property is used in more than one state, the sales must be 
28.30 	apportioned to this state pro rata according to the portion of use in this state. If the 
28.31 	portion of use in this state cannot be determined, the sale must be excluded from both the 
28.32 	numerator and the denominator of the sales factor. Intangible property is used in this 
28.33 	state if the purchaser used the intangible property in the regular course of its business 
28.34 	operations in this state.
28.35 	(j) Receipts from the performance of services must be attributed to the state where 
28.36 	the services are received. For the purposes of this section, receipts from the performance 
29.1 	of services provided to a corporation, partnership, or trust may only be attributed to a 
29.2 	state where it has a fixed place of doing business. If the state where the services are 
29.3 	received is not readily determinable or is a state where the corporation, partnership, or 
29.4 	trust receiving the service does not have a fixed place of doing business, the services 
29.5 	shall be deemed to be received at the location of the office of the customer from which 
29.6 	the services were ordered in the regular course of the customer's trade or business. If the 
29.7 	ordering office cannot be determined, the services shall be deemed to be received at the 
29.8 	office of the customer to which the services are billed. Receipts received as compensation 
29.9 	by a nonresident individual for the performance of services as a member of a board of 
29.10 	directors, or similar body, are attributed to Minnesota based on the ratio of the time spent 
29.11 	in Minnesota providing services as a member of that board divided by the time spent 
29.12 	everywhere providing services as a member of that board.
29.13 	(k) For the purposes of this subdivision and subdivision 6, paragraph (l), receipts 
29.14 	from management, distribution, or administrative services performed by a corporation 
29.15 	or trust for a fund of a corporation or trust regulated under United States Code, title 15, 
29.16 	sections 80a-1 through 80a-64, must be attributed to the state where the shareholder of 
29.17 	the fund resides. Under this paragraph, receipts for services attributed to shareholders are 
29.18 	determined on the basis of the ratio of: (1) the average of the outstanding shares in the 
29.19 	fund owned by shareholders residing within Minnesota at the beginning and end of each 
29.20 	year; and (2) the average of the total number of outstanding shares in the fund at the 
29.21 	beginning and end of each year. Residence of the shareholder, in the case of an individual, 
29.22 	is determined by the mailing address furnished by the shareholder to the fund. Residence 
29.23 	of the shareholder, when the shares are held by an insurance company as a depositor for 
29.24 	the insurance company policyholders, is the mailing address of the policyholders. In 
29.25 	the case of an insurance company holding the shares as a depositor for the insurance 
29.26 	company policyholders, if the mailing address of the policyholders cannot be determined 
29.27 	by the taxpayer, the receipts must be excluded from both the numerator and denominator. 
29.28 	Residence of other shareholders is the mailing address of the shareholder.

29.29 	EFFECTIVE DATE. Paragraph (a) is effective for taxable years beginning after 
29.30 	December 31, 2014. Paragraph (j) is effective the day following final enactment and 
29.31 	applies retroactively to all open taxable years and returns.

29.32 	Sec. 26. Minnesota Statutes 2014, section 290.21, subdivision 4, is amended to read:
29.33 		Subd. 4.Dividends received from another corporation. (a)(1) Eighty percent 
29.34 	of dividends received by a corporation during the taxable year from another corporation, 
29.35 	in which the recipient owns 20 percent or more of the stock, by vote and value, not 
30.1 	including stock described in section 1504(a)(4) of the Internal Revenue Code when the 
30.2 	corporate stock with respect to which dividends are paid does not constitute the stock in 
30.3 	trade of the taxpayer or would not be included in the inventory of the taxpayer, or does not 
30.4 	constitute property held by the taxpayer primarily for sale to customers in the ordinary 
30.5 	course of the taxpayer's trade or business, or when the trade or business of the taxpayer 
30.6 	does not consist principally of the holding of the stocks and the collection of the income 
30.7 	and gains therefrom; and
30.8 	(2)(i) the remaining 20 percent of dividends if the dividends received are the stock in 
30.9 	an affiliated company transferred in an overall plan of reorganization and the dividend 
30.10 	is eliminated in consolidation under Treasury Department Regulation 1.1502-14(a), as 
30.11 	amended through December 31, 1989;
30.12 	(ii) the remaining 20 percent of dividends if the dividends are received from a 
30.13 	corporation which is subject to tax under section 290.36 and which is a member of an 
30.14 	affiliated group of corporations as defined by the Internal Revenue Code and the dividend 
30.15 	is eliminated in consolidation under Treasury Department Regulation 1.1502-14(a), as 
30.16 	amended through December 31, 1989, or is deducted under an election under section 
30.17 	243(b) of the Internal Revenue Code; or
30.18 	(iii) the remaining 20 percent of the dividends if the dividends are received from a 
30.19 	property and casualty insurer as defined under section 60A.60, subdivision 8, which is a 
30.20 	member of an affiliated group of corporations as defined by the Internal Revenue Code 
30.21 	and either: (A) the dividend is eliminated in consolidation under Treasury Regulation 
30.22 	1.1502-14(a), as amended through December 31, 1989; or (B) the dividend is deducted 
30.23 	under an election under section 243(b) of the Internal Revenue Code.
30.24 	(b) Seventy percent of dividends received by a corporation during the taxable year 
30.25 	from another corporation in which the recipient owns less than 20 percent of the stock, 
30.26 	by vote or value, not including stock described in section 1504(a)(4) of the Internal 
30.27 	Revenue Code when the corporate stock with respect to which dividends are paid does not 
30.28 	constitute the stock in trade of the taxpayer, or does not constitute property held by the 
30.29 	taxpayer primarily for sale to customers in the ordinary course of the taxpayer's trade or 
30.30 	business, or when the trade or business of the taxpayer does not consist principally of the 
30.31 	holding of the stocks and the collection of income and gain therefrom.
30.32 	(c) The dividend deduction provided in this subdivision shall be allowed only with 
30.33 	respect to dividends that are included in a corporation's Minnesota taxable net income 
30.34 	for the taxable year.
30.35 	The dividend deduction provided in this subdivision does not apply to a dividend 
30.36 	from a corporation which, for the taxable year of the corporation in which the distribution 
31.1 	is made or for the next preceding taxable year of the corporation, is a corporation exempt 
31.2 	from tax under section 501 of the Internal Revenue Code.
31.3 	The dividend deduction provided in this subdivision does not apply to a dividend 
31.4 	received from a real estate investment trust as defined in section 856 of the Internal 
31.5 	Revenue Code.
31.6 	The dividend deduction provided in this subdivision applies to the amount of 
31.7 	regulated investment company dividends only to the extent determined under section 
31.8 	854(b) of the Internal Revenue Code.
31.9 	The dividend deduction provided in this subdivision shall not be allowed with 
31.10 	respect to any dividend for which a deduction is not allowed under the provisions of 
31.11 	section 246(c) or 246A of the Internal Revenue Code.
31.12 	(d) If dividends received by a corporation that does not have nexus with Minnesota 
31.13 	under the provisions of Public Law 86-272 are included as income on the return of 
31.14 	an affiliated corporation permitted or required to file a combined report under section 
31.15 	290.17, subdivision 4, or 290.34, subdivision 2, then for purposes of this subdivision the 
31.16 	determination as to whether the trade or business of the corporation consists principally 
31.17 	of the holding of stocks and the collection of income and gains therefrom shall be made 
31.18 	with reference to the trade or business of the affiliated corporation having a nexus with 
31.19 	Minnesota.
31.20 	(e) The deduction provided by this subdivision does not apply if the dividends are 
31.21 	paid by a FSC as defined in section 922 of the Internal Revenue Code.
31.22 	(f) If one or more of the members of the unitary group whose income is included on 
31.23 	the combined report received a dividend, the deduction under this subdivision for each 
31.24 	member of the unitary business required to file a return under this chapter is the product 
31.25 	of: (1) 100 percent of the dividends received by members of the group; (2) the percentage 
31.26 	allowed pursuant to paragraph (a) or (b); and (3) the percentage of the taxpayer's business 
31.27 	income apportionable to this state for the taxable year under section 290.191 or 290.20.

31.28 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
31.29 	December 31, 2014.

31.30 	Sec. 27. Minnesota Statutes 2014, section 290A.03, subdivision 15, as amended by 
31.31 	Laws 2015, chapter 1, section 4, is amended to read:
31.32 		Subd. 15.Internal Revenue Code.  "Internal Revenue Code" means the Internal 
31.33 	Revenue Code of 1986, as amended through December 31, 2014 April 1, 2015.

32.1 	EFFECTIVE DATE. This section is effective for property tax refunds based on 
32.2 	property taxes payable after December 31, 2015, and rent paid after December 31, 2014.

32.3 	Sec. 28. Minnesota Statutes 2014, section 291.005, subdivision 1, is amended to read:
32.4 		Subdivision 1.Scope. Unless the context otherwise clearly requires, the following 
32.5 	terms used in this chapter shall have the following meanings:
32.6 	(1) "Commissioner" means the commissioner of revenue or any person to whom the 
32.7 	commissioner has delegated functions under this chapter.
32.8 	(2) "Federal gross estate" means the gross estate of a decedent as required to be valued 
32.9 	and otherwise determined for federal estate tax purposes under the Internal Revenue Code, 
32.10 	increased by the value of any property in which the decedent had a qualifying income 
32.11 	interest for life and for which an election was made under section 291.03, subdivision 1d, 
32.12 	for Minnesota estate tax purposes, but was not made for federal estate tax purposes.
32.13 	(3) "Internal Revenue Code" means the United States Internal Revenue Code of 
32.14 	1986, as amended through March 26, 2014.
32.15 	(4) "Minnesota gross estate" means the federal gross estate of a decedent after 
32.16 	(a) excluding therefrom any property included in the estate which has its situs outside 
32.17 	Minnesota, and (b) including any property omitted from the federal gross estate which 
32.18 	is includable in the estate, has its situs in Minnesota, and was not disclosed to federal 
32.19 	taxing authorities.
32.20 	(5) "Nonresident decedent" means an individual whose domicile at the time of 
32.21 	death was not in Minnesota.
32.22 	(6) "Personal representative" means the executor, administrator or other person 
32.23 	appointed by the court to administer and dispose of the property of the decedent. If there 
32.24 	is no executor, administrator or other person appointed, qualified, and acting within this 
32.25 	state, then any person in actual or constructive possession of any property having a situs in 
32.26 	this state which is included in the federal gross estate of the decedent shall be deemed 
32.27 	to be a personal representative to the extent of the property and the Minnesota estate tax 
32.28 	due with respect to the property.
32.29 	(7) "Resident decedent" means an individual whose domicile at the time of death 
32.30 	was in Minnesota. The provisions of section 290.01, subdivision 7, paragraphs (c) and 
32.31 	(d), apply to determinations of domicile under this chapter.
32.32 	(8) "Situs of property" means, with respect to:
32.33 	(i) real property, the state or country in which it is located;
32.34 	(ii) tangible personal property, the state or country in which it was normally kept 
32.35 	or located at the time of the decedent's death or for a gift of tangible personal property 
33.1 	within three years of death, the state or country in which it was normally kept or located 
33.2 	when the gift was executed;
33.3 	(iii) a qualified work of art, as defined in section 2503(g)(2) of the Internal Revenue 
33.4 	Code, owned by a nonresident decedent and that is normally kept or located in this state 
33.5 	because it is on loan to an organization, qualifying as exempt from taxation under section 
33.6 	501(c)(3) of the Internal Revenue Code, that is located in Minnesota, the situs of the art is 
33.7 	deemed to be outside of Minnesota, notwithstanding the provisions of item (ii); and
33.8 	(iv) intangible personal property, the state or country in which the decedent was 
33.9 	domiciled at death or for a gift of intangible personal property within three years of death, 
33.10 	the state or country in which the decedent was domiciled when the gift was executed.
33.11 	For a nonresident decedent with an ownership interest in a pass-through entity with 
33.12 	assets that include real or tangible personal property, situs of the real or tangible personal 
33.13 	property, including qualified works of art, is determined as if the pass-through entity does 
33.14 	not exist and the real or tangible personal property is personally owned by the decedent. 
33.15 	If the pass-through entity is owned by a person or persons in addition to the decedent, 
33.16 	ownership of the property is attributed to the decedent in proportion to the decedent's 
33.17 	capital ownership share of the pass-through entity.
33.18 	(9) "Pass-through entity" includes the following:
33.19 	(i) an entity electing S corporation status under section 1362 of the Internal Revenue 
33.20 	Code;
33.21 	(ii) an entity taxed as a partnership under subchapter K of the Internal Revenue Code;
33.22 	(iii) a single-member limited liability company or similar entity, regardless of 
33.23 	whether it is taxed as an association or is disregarded for federal income tax purposes 
33.24 	under Code of Federal Regulations, title 26, section 301.7701-3; or
33.25 	(iv) a trust to the extent the property is includible in the decedent's federal gross 
33.26 	estate; but excludes
33.27 	(v) an entity whose ownership interest securities are traded on an exchange regulated 
33.28 	by the Securities and Exchange Commission as a national securities exchange under 
33.29 	section 6 of the Securities Exchange Act, United States Code, title 15, section 78f.

33.30 	EFFECTIVE DATE. This section is effective for estates of decedents dying after 
33.31 	December 31, 2014.

33.32 	Sec. 29. Minnesota Statutes 2014, section 291.03, is amended by adding a subdivision 
33.33 	to read:
33.34 		Subd. 12.Certain dispositions to government entities. Notwithstanding any 
33.35 	provision of this section, no taxpayer shall be disqualified for the subtraction provided 
34.1 	under section 291.016, subdivision 3, nor shall any taxpayer be liable for the recapture tax 
34.2 	provided in subdivision 11, solely because the state, any local government unit, or any 
34.3 	other entity that has the power of eminent domain acquires title or possession of the land 
34.4 	for a public purpose within the three-year holding period.

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

34.7 	Sec. 30. REPORT OF FREE ELECTRONIC FILING FOR INDIVIDUAL 
34.8 	INCOME TAX RETURNS.
 34.9 	(a) By March 16, 2016, the commissioner of revenue must provide a written 
34.10 	report to the chairs and ranking minority members of the legislative committees with 
34.11 	jurisdiction over taxes regarding free electronic filing options for individual income tax 
34.12 	filing, including a vendor-based solution.  The report must include responses from a 
34.13 	commissioner's request for information to consumer-based tax filing software vendors.  
34.14 	The request for information may include, but is not limited to, seeking information on 
34.15 	the following aspects of a free electronic filing solution:
34.16 	(1) costs, on a per return basis, that would be charged to the state of Minnesota to 
34.17 	provide an electronic individual income tax return preparation, submission, and payment 
34.18 	remittance process;
34.19 	(2) vendor capability to provide customer service and issue resolution to taxpayers 
34.20 	using the software;
34.21 	(3) vendor capability to provide and maintain an appropriate link between the 
34.22 	Department of Revenue and the Internal Revenue Service Modernized Electronic Filing 
34.23 	Program;
34.24 	(4) vendor security capabilities to ensure that taxpayer return information is 
34.25 	maintained and protected as required by Minnesota Statutes, chapters 13 and 270B, 
34.26 	Internal Revenue Service Publication 1075, and any other applicable requirements;
34.27 	(5) products for the free filing and submitting of both Minnesota and federal returns 
34.28 	offered to customers and the thresholds for using those products; and
34.29 	(6) add-on products offered to customers and their costs.
34.30 	(b) The report must address the possibility of implementing free electronic filing 
34.31 	while maintaining annual preparation of the income tax sample required under Minnesota 
34.32 	Statutes, section 270C.12, and must include a report on how other states with income tax 
34.33 	samples manage federal data on federal income tax returns.
34.34 	(c) The report required under paragraph (a) must comply with Minnesota Statutes, 
34.35 	sections 3.195 and 3.197. 

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

35.2 	Sec. 31. VETERANS JOBS GRANT.
 35.3 		Subdivision 1.Establishment. The commissioner of revenue shall establish a 
35.4 	program to award a grant to a qualified employer for hiring an unemployed veteran as 
35.5 	a qualified employee.  A qualified employer is eligible for a grant of $2,500 for each 
35.6 	qualified employee hired.
35.7 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have 
35.8 	the meanings given.
35.9 	(b) "Local government" means statutory or home rule charter cities, counties, and 
35.10 	townships; special districts as defined under Minnesota Statutes, section 6.465; any 
35.11 	instrumentality of a statutory or home rule charter city, county, or township as defined in 
35.12 	Minnesota Statutes, section 471.59; and any joint powers board or organization created 
35.13 	under Minnesota Statutes, section 471.59.
35.14 	(c) "Nonprofit organization" means an organization that has a current federal 
35.15 	determination letter stating that the nonprofit organization qualifies as an exempt 
35.16 	organization under section 501(c)(3) of the Internal Revenue Code and is exempt from tax 
35.17 	under section 501(a) of the Internal Revenue Code.
35.18 	(d) "Qualified veteran employee" means any individual performing services within 
35.19 	the state of Minnesota for an employer that is a local government or nonprofit organization; 
35.20 	the performance of which services constitute, establish, and determine the relationship 
35.21 	between the parties as that of employer and employee; and who meets the following criteria:
35.22 	(1) the employee is a resident of Minnesota on the date of hire;
35.23 	(2) the employee is paid wages as defined in Minnesota Statutes, section 290.92, 
35.24 	subdivision 1;
35.25 	(3) the employee's wages are attributable to Minnesota under Minnesota Statutes, 
35.26 	section 290.191, subdivision 12;
35.27 	(4) the employee is employed for a period of at least 6 of the 12 months immediately 
35.28 	following the date of hire; and
35.29 	(5) the employee is an unemployed veteran.
35.30 	(e) "Qualified veteran employee" does not include any employee who, in the 
35.31 	preceding 12 months before the employee's date of hire was, and in the calendar year in 
35.32 	which the grant is paid, is:
35.33 	(1) a member of the board of the nonprofit organization employer that hired the 
35.34 	qualified employee; or
36.1 	(2) an elected or appointed official of the local government that hired the qualified 
36.2 	employee.
36.3 	(f) "Qualified employer" means a local government or nonprofit organization that 
36.4 	hires a qualified employee.
36.5 	(g) "Unemployed veteran" is a veteran who was unemployed on the date of hire.
36.6 	(h) "Veteran" has the meaning given in Minnesota Statutes, section 197.447.
36.7 	(i) "Date of hire" means the day that the qualified veteran employee begins 
36.8 	performing services as an employee of the qualified employer.
36.9 		Subd. 3.Application. The commissioner must develop forms and procedures for 
36.10 	soliciting and reviewing applications for grants under this section.  At a minimum:
36.11 	(1) a local government must include a resolution of its governing body affirming the 
36.12 	number of qualified employees hired in the year for which the grant is applied; and
36.13 	(2) a nonprofit organization must include a resolution of its board affirming the 
36.14 	number of qualified employees hired in the year for which the grant is applied.
36.15 		Subd. 4.Aid payment and calculation. The commissioner of revenue shall remit 
36.16 	grants to qualified employers.  The amount of the grant equals $2,500 multiplied by the 
36.17 	number of qualified veteran employees hired by the qualified employer.  A qualified 
36.18 	employer must not claim a grant for hiring an unemployed veteran as a qualified veteran 
36.19 	employee if the unemployed veteran is currently employed or was previously employed by 
36.20 	the qualified employer. The commissioner of revenue shall pay the aid to the treasurer or 
36.21 	designated treasurer of each qualified employer by July 15 of the calendar year following 
36.22 	the year in which the qualified veteran employee was hired.

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

36.24 	Sec. 32. APPROPRIATION.
 36.25 	$175,000 in fiscal year 2016 is appropriated from the general fund to the 
36.26 	commissioner of revenue for administering the free electronic filing study provided in 
36.27 	this article.

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

36.29 	Sec. 33. APPROPRIATION.
 36.30 	The following amounts are appropriated from the general fund to the commissioner 
36.31 	of revenue to make grants under the veteran jobs grant program provided in this article:
36.32 	(1) $7,600,000 in fiscal year 2016;
36.33 	(2) $7,200,000 in fiscal year 2017; and
37.1 	(3) $6,900,000 in each fiscal year thereafter.

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

37.3 	ARTICLE 2
37.4 	PROPERTY TAX

37.5 	Section 1. [103C.333] COUNTY LEVY AUTHORITY.
37.6 	Notwithstanding any other law to the contrary, a county levying a tax under section 
37.7 	103C.331 shall not include any taxes levied under those authorities in the levy certified 
37.8 	under section 275.07, subdivision 1, paragraph (a). A county levying under section 
37.9 	103C.331 shall separately certify that amount, and the auditor shall extend that levy as a 
37.10 	special taxing district levy under sections 275.066 and 275.07, subdivision 1, paragraph (b).

37.11 	EFFECTIVE DATE. This section is effective for certifications made in 2015 and 
37.12 	thereafter.

37.13 	Sec. 2. Minnesota Statutes 2014, section 126C.01, subdivision 3, is amended to read:
37.14 		Subd. 3.Referendum market value. "Referendum market value" means the market 
37.15 	value of all taxable property, excluding property classified as class 2, or 4c(4), or 4c(12) 
37.16 	under section 273.13. The portion of class 2a property consisting of the house, garage, and 
37.17 	surrounding one acre of land of an agricultural homestead is included in referendum market 
37.18 	value. For the purposes of this subdivision, in the case of class 1a, 1b, or 2a property, 
37.19 	"market value" means the value prior to the exclusion under section 273.13, subdivision 
37.20 	35. In the case of class 4c(12) property, "market value" means the market value exceeding 
37.21 	$300,000 for taxes payable in 2016 and thereafter. Any class of property, or any portion of 
37.22 	a class of property, that is included in the definition of referendum market value and that has 
37.23 	a classification rate of less than one percent under section 273.13 shall have a referendum 
37.24 	market value equal to its market value times its classification rate, multiplied by 100.

37.25 	EFFECTIVE DATE. This section is effective for taxes payable in 2016 and 
37.26 	thereafter.

37.27 	Sec. 3. Minnesota Statutes 2014, section 138.053, is amended to read:
37.28 	138.053 COUNTY HISTORICAL SOCIETY; TAX LEVY; CITIES OR 
37.29 	TOWNS.
37.30 	The governing body of any home rule charter or statutory city or town may annually 
37.31 	appropriate from its general fund an amount not to exceed 0.02418 percent of estimated 
38.1 	market value, derived from ad valorem taxes on property or other revenues, to be paid to 
38.2 	the historical society of its respective city, town, or county to be used for the promotion of 
38.3 	historical work and to aid in defraying the expenses of carrying on the historical work in the 
38.4 	county. No city or town may appropriate any funds for the benefit of any historical society 
38.5 	unless the society is affiliated with and approved by the Minnesota Historical Society.

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

38.7 	Sec. 4. Minnesota Statutes 2014, section 273.13, subdivision 23, is amended to read:
38.8 		Subd. 23.Class 2. (a) An agricultural homestead consists of class 2a agricultural 
38.9 	land that is homesteaded, along with any class 2b rural vacant land that is contiguous to 
38.10 	the class 2a land under the same ownership. The market value of the house and garage 
38.11 	and immediately surrounding one acre of land has the same classification rates as class 
38.12 	1a or 1b property under subdivision 22. The value of the remaining land including 
38.13 	improvements up to the first tier valuation limit of agricultural homestead property has a 
38.14 	classification rate of 0.5 percent of market value. The remaining property over the first tier 
38.15 	has a classification rate of one percent of market value. For purposes of this subdivision, 
38.16 	the "first tier valuation limit of agricultural homestead property" and "first tier" means 
38.17 	the limit certified under section 273.11, subdivision 23.
38.18 	(b) Class 2a agricultural land consists of parcels of property, or portions thereof, that 
38.19 	are agricultural land and buildings. Class 2a property has a classification rate of one percent 
38.20 	of market value, unless it is part of an agricultural homestead under paragraph (a). Class 
38.21 	2a property must also include any property that would otherwise be classified as 2b, but is 
38.22 	interspersed with class 2a property, including but not limited to sloughs, wooded wind 
38.23 	shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback requirement, 
38.24 	and other similar land that is impractical for the assessor to value separately from the rest of 
38.25 	the property or that is unlikely to be able to be sold separately from the rest of the property.
38.26 	An assessor may classify the part of a parcel described in this subdivision that is used 
38.27 	for agricultural purposes as class 2a and the remainder in the class appropriate to its use.
38.28 	(c) Class 2b rural vacant land consists of parcels of property, or portions thereof, 
38.29 	that are unplatted real estate, rural in character and not used for agricultural purposes, 
38.30 	including land used for growing trees for timber, lumber, and wood and wood products, 
38.31 	that is not improved with a structure. The presence of a minor, ancillary nonresidential 
38.32 	structure as defined by the commissioner of revenue does not disqualify the property from 
38.33 	classification under this paragraph. Any parcel of 20 acres or more improved with a 
38.34 	structure that is not a minor, ancillary nonresidential structure must be split-classified, and 
38.35 	ten acres must be assigned to the split parcel containing the structure. Class 2b property 
39.1 	has a classification rate of one percent of market value unless it is part of an agricultural 
39.2 	homestead under paragraph (a), or qualifies as class 2c under paragraph (d).
39.3 	(d) Class 2c managed forest land consists of no less than 20 and no more than 
39.4 	1,920 acres statewide per taxpayer that is being managed under a forest management 
39.5 	plan that meets the requirements of chapter 290C, but is not enrolled in the sustainable 
39.6 	forest resource management incentive program. It has a classification rate of .65 percent, 
39.7 	provided that the owner of the property must apply to the assessor in order for the 
39.8 	property to initially qualify for the reduced rate and provide the information required 
39.9 	by the assessor to verify that the property qualifies for the reduced rate. If the assessor 
39.10 	receives the application and information before May 1 in an assessment year, the property 
39.11 	qualifies beginning with that assessment year. If the assessor receives the application 
39.12 	and information after April 30 in an assessment year, the property may not qualify until 
39.13 	the next assessment year. The commissioner of natural resources must concur that the 
39.14 	land is qualified. The commissioner of natural resources shall annually provide county 
39.15 	assessors verification information on a timely basis. The presence of a minor, ancillary 
39.16 	nonresidential structure as defined by the commissioner of revenue does not disqualify the 
39.17 	property from classification under this paragraph.
39.18 	(e) Agricultural land as used in this section means:
39.19 	(1) contiguous acreage of ten acres or more, used during the preceding year for 
39.20 	agricultural purposes; or
39.21 	(2) contiguous acreage used during the preceding year for an intensive livestock or 
39.22 	poultry confinement operation, provided that land used only for pasturing or grazing 
39.23 	does not qualify under this clause.
39.24 	"Agricultural purposes" as used in this section means the raising, cultivation, drying, 
39.25 	or storage of agricultural products for sale, or the storage of machinery or equipment used 
39.26 	in support of agricultural production by the same farm entity. For a property to be classified 
39.27 	as agricultural based only on the drying or storage of agricultural products, the products 
39.28 	being dried or stored must have been produced by the same farm entity as the entity 
39.29 	operating the drying or storage facility. "Agricultural purposes" also includes enrollment 
39.30 	in the Reinvest in Minnesota program under sections 103F.501 to 103F.535or the federal 
39.31 	Conservation Reserve Program as contained in Public Law 99-198 or a similar state or 
39.32 	federal conservation program, excluding the federal Conservation Reserve Program, if 
39.33 	the property was classified as agricultural (i) under this subdivision for taxes payable in 
39.34 	2003 because of its enrollment in a qualifying program and the land remains enrolled or 
39.35 	(ii) in the year prior to its enrollment. Enrollment in the federal Conservation Reserve 
39.36 	Program, as contained in Public Law 98-198, shall be considered an agricultural purpose 
40.1 	under this section. Agricultural classification shall not be based upon the market value of 
40.2 	any residential structures on the parcel or contiguous parcels under the same ownership.
40.3 	"Contiguous acreage," for purposes of this paragraph, means all of, or a contiguous 
40.4 	portion of, a tax parcel as described in section 272.193, or all of, or a contiguous portion 
40.5 	of, a set of contiguous tax parcels under that section that are owned by the same person.
40.6 	(f) Agricultural land under this section also includes:
40.7 	(1) contiguous acreage that is less than ten acres in size and exclusively used in the 
40.8 	preceding year for raising or cultivating agricultural products; or
40.9 	(2) contiguous acreage that contains a residence and is less than 11 acres in size, if 
40.10 	the contiguous acreage exclusive of the house, garage, and surrounding one acre of land 
40.11 	was used in the preceding year for one or more of the following three uses:
40.12 	(i) for an intensive grain drying or storage operation, or for intensive machinery or 
40.13 	equipment storage activities used to support agricultural activities on other parcels of 
40.14 	property operated by the same farming entity;
40.15 	(ii) as a nursery, provided that only those acres used intensively to produce nursery 
40.16 	stock are considered agricultural land; or
40.17 	(iii) for intensive market farming; for purposes of this paragraph, "market farming" 
40.18 	means the cultivation of one or more fruits or vegetables or production of animal or other 
40.19 	agricultural products for sale to local markets by the farmer or an organization with which 
40.20 	the farmer is affiliated.
40.21 	"Contiguous acreage," for purposes of this paragraph, means all of a tax parcel as 
40.22 	described in section 272.193, or all of a set of contiguous tax parcels under that section 
40.23 	that are owned by the same person.
40.24 	(g) Land shall be classified as agricultural even if all or a portion of the agricultural 
40.25 	use of that property is the leasing to, or use by another person for agricultural purposes.
40.26 	Classification under this subdivision is not determinative for qualifying under 
40.27 	section 273.111.
40.28 	(h) The property classification under this section supersedes, for property tax 
40.29 	purposes only, any locally administered agricultural policies or land use restrictions that 
40.30 	define minimum or maximum farm acreage.
40.31 	(i) The term "agricultural products" as used in this subdivision includes production 
40.32 	for sale of:
40.33 	(1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing 
40.34 	animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, 
40.35 	bees, and apiary products by the owner;
41.1 	(2) fish bred for sale and consumption if the fish breeding occurs on land zoned 
41.2 	for agricultural use;
41.3 	(3) the commercial boarding of horses, which may include related horse training and 
41.4 	riding instruction, if the boarding is done on property that is also used for raising pasture 
41.5 	to graze horses or raising or cultivating other agricultural products as defined in clause (1);
41.6 	(4) property which is owned and operated by nonprofit organizations used for 
41.7 	equestrian activities, excluding racing;
41.8 	(5) game birds and waterfowl bred and raised (i) on a game farm licensed under 
41.9 	section 97A.105, provided that the annual licensing report to the Department of Natural 
41.10 	Resources, which must be submitted annually by March 30 to the assessor, indicates 
41.11 	that at least 500 birds were raised or used for breeding stock on the property during the 
41.12 	preceding year and that the owner provides a copy of the owner's most recent schedule F; 
41.13 	or (ii) for use on a shooting preserve licensed under section 97A.115;
41.14 	(6) insects primarily bred to be used as food for animals;
41.15 	(7) trees, grown for sale as a crop, including short rotation woody crops, and not 
41.16 	sold for timber, lumber, wood, or wood products; and
41.17 	(8) maple syrup taken from trees grown by a person licensed by the Minnesota 
41.18 	Department of Agriculture under chapter 28A as a food processor.
41.19 	(j) If a parcel used for agricultural purposes is also used for commercial or industrial 
41.20 	purposes, including but not limited to:
41.21 	(1) wholesale and retail sales;
41.22 	(2) processing of raw agricultural products or other goods;
41.23 	(3) warehousing or storage of processed goods; and
41.24 	(4) office facilities for the support of the activities enumerated in clauses (1), (2), 
41.25 	and (3),
41.26 	the assessor shall classify the part of the parcel used for agricultural purposes as class 
41.27 	1b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its 
41.28 	use. The grading, sorting, and packaging of raw agricultural products for first sale is 
41.29 	considered an agricultural purpose. A greenhouse or other building where horticultural 
41.30 	or nursery products are grown that is also used for the conduct of retail sales must be 
41.31 	classified as agricultural if it is primarily used for the growing of horticultural or nursery 
41.32 	products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of 
41.33 	those products. Use of a greenhouse or building only for the display of already grown 
41.34 	horticultural or nursery products does not qualify as an agricultural purpose.
41.35 	(k) The assessor shall determine and list separately on the records the market value 
41.36 	of the homestead dwelling and the one acre of land on which that dwelling is located. If 
42.1 	any farm buildings or structures are located on this homesteaded acre of land, their market 
42.2 	value shall not be included in this separate determination.
42.3 	(l) Class 2d airport landing area consists of a landing area or public access area of a 
42.4 	privately owned public use airport. It has a classification rate of one percent of market 
42.5 	value. To qualify for classification under this paragraph, a privately owned public use 
42.6 	airport must be licensed as a public airport under section 360.018. For purposes of 
42.7 	this paragraph, "landing area" means that part of a privately owned public use airport 
42.8 	properly cleared, regularly maintained, and made available to the public for use by aircraft 
42.9 	and includes runways, taxiways, aprons, and sites upon which are situated landing or 
42.10 	navigational aids. A landing area also includes land underlying both the primary surface 
42.11 	and the approach surfaces that comply with all of the following:
42.12 	(i) the land is properly cleared and regularly maintained for the primary purposes of 
42.13 	the landing, taking off, and taxiing of aircraft; but that portion of the land that contains 
42.14 	facilities for servicing, repair, or maintenance of aircraft is not included as a landing area;
42.15 	(ii) the land is part of the airport property; and
42.16 	(iii) the land is not used for commercial or residential purposes.
42.17 	The land contained in a landing area under this paragraph must be described and certified 
42.18 	by the commissioner of transportation. The certification is effective until it is modified, 
42.19 	or until the airport or landing area no longer meets the requirements of this paragraph. 
42.20 	For purposes of this paragraph, "public access area" means property used as an aircraft 
42.21 	parking ramp, apron, or storage hangar, or an arrival and departure building in connection 
42.22 	with the airport.
42.23 	(m) Class 2e consists of land with a commercial aggregate deposit that is not actively 
42.24 	being mined and is not otherwise classified as class 2a or 2b, provided that the land is not 
42.25 	located in a county that has elected to opt-out of the aggregate preservation program as 
42.26 	provided in section 273.1115, subdivision 6. It has a classification rate of one percent of 
42.27 	market value. To qualify for classification under this paragraph, the property must be at 
42.28 	least ten contiguous acres in size and the owner of the property must record with the 
42.29 	county recorder of the county in which the property is located an affidavit containing:
42.30 	(1) a legal description of the property;
42.31 	(2) a disclosure that the property contains a commercial aggregate deposit that is not 
42.32 	actively being mined but is present on the entire parcel enrolled;
42.33 	(3) documentation that the conditional use under the county or local zoning 
42.34 	ordinance of this property is for mining; and
42.35 	(4) documentation that a permit has been issued by the local unit of government 
42.36 	or the mining activity is allowed under local ordinance. The disclosure must include a 
43.1 	statement from a registered professional geologist, engineer, or soil scientist delineating 
43.2 	the deposit and certifying that it is a commercial aggregate deposit.
43.3 	For purposes of this section and section 273.1115, "commercial aggregate deposit" 
43.4 	means a deposit that will yield crushed stone or sand and gravel that is suitable for use 
43.5 	as a construction aggregate; and "actively mined" means the removal of top soil and 
43.6 	overburden in preparation for excavation or excavation of a commercial deposit.
43.7 	(n) When any portion of the property under this subdivision or subdivision 22 begins 
43.8 	to be actively mined, the owner must file a supplemental affidavit within 60 days from 
43.9 	the day any aggregate is removed stating the number of acres of the property that is 
43.10 	actively being mined. The acres actively being mined must be (1) valued and classified 
43.11 	under subdivision 24 in the next subsequent assessment year, and (2) removed from the 
43.12 	aggregate resource preservation property tax program under section 273.1115, if the 
43.13 	land was enrolled in that program. Copies of the original affidavit and all supplemental 
43.14 	affidavits must be filed with the county assessor, the local zoning administrator, and the 
43.15 	Department of Natural Resources, Division of Land and Minerals. A supplemental 
43.16 	affidavit must be filed each time a subsequent portion of the property is actively mined, 
43.17 	provided that the minimum acreage change is five acres, even if the actual mining activity 
43.18 	constitutes less than five acres.
43.19 	(o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are 
43.20 	not rules and are exempt from the rulemaking provisions of chapter 14, and the provisions 
43.21 	in section 14.386 concerning exempt rules do not apply.

43.22 	EFFECTIVE DATE. This section is effective beginning with assessment year 2016.

43.23 	Sec. 5. Minnesota Statutes 2014, section 273.13, subdivision 24, is amended to read:
43.24 		Subd. 24.Class 3.  Commercial and industrial property and utility real and personal 
43.25 	property is class 3a.
43.26 	(1) Except as otherwise provided, each parcel of commercial, industrial, or utility 
43.27 	real property has a classification rate of 1.5 1.55 percent of the first tier of market value, 
43.28 	and 2.0 2.1 percent of the remaining market value. In the case of contiguous parcels of 
43.29 	property owned by the same person or entity, only the value equal to the first-tier value of 
43.30 	the contiguous parcels qualifies for the reduced classification rate, except that contiguous 
43.31 	parcels owned by the same person or entity shall be eligible for the first-tier value 
43.32 	classification rate on each separate business operated by the owner of the property, provided 
43.33 	the business is housed in a separate structure. For the purposes of this subdivision, the first 
43.34 	tier means the first $150,000 of market value. Real property owned in fee by a utility for 
43.35 	transmission line right-of-way shall be classified at the classification rate for the higher tier.
44.1 	For purposes of this subdivision, parcels are considered to be contiguous even if 
44.2 	they are separated from each other by a road, street, waterway, or other similar intervening 
44.3 	type of property. Connections between parcels that consist of power lines or pipelines do 
44.4 	not cause the parcels to be contiguous. Property owners who have contiguous parcels of 
44.5 	property that constitute separate businesses that may qualify for the first-tier classification 
44.6 	rate shall notify the assessor by July 1, for treatment beginning in the following taxes 
44.7 	payable year.
44.8 	(2) All personal property that is: (i) part of an electric generation, transmission, or 
44.9 	distribution system; or (ii) part of a pipeline system transporting or distributing water, gas, 
44.10 	crude oil, or petroleum products; and (iii) not described in clause (3), and all railroad 
44.11 	operating property has a classification rate as provided under clause (1) for the first tier 
44.12 	of market value and the remaining market value. In the case of multiple parcels in one 
44.13 	county that are owned by one person or entity, only one first tier amount is eligible for the 
44.14 	reduced rate.
44.15 	(3) The entire market value of personal property that is: (i) tools, implements, and 
44.16 	machinery of an electric generation, transmission, or distribution system; (ii) tools, 
44.17 	implements, and machinery of a pipeline system transporting or distributing water, gas, 
44.18 	crude oil, or petroleum products; or (iii) the mains and pipes used in the distribution of 
44.19 	steam or hot or chilled water for heating or cooling buildings, has a classification rate as 
44.20 	provided under clause (1) for the remaining market value in excess of the first tier.

44.21 	EFFECTIVE DATE. This section is effective for taxes payable in 2016 and 
44.22 	thereafter.

44.23 	Sec. 6. Minnesota Statutes 2014, section 273.1392, is amended to read:
44.24 	273.1392 PAYMENT; SCHOOL DISTRICTS.
44.25 	The amounts of bovine tuberculosis credit reimbursements under section 273.113; 
44.26 	conservation tax credits under section 273.119; disaster or emergency reimbursement 
44.27 	under sections 273.1231 to 273.1235; homestead and agricultural credits under section 
44.28 	sections273.1384 and 273.88; aids and credits under section 273.1398; enterprise zone 
44.29 	property credit payments under section 469.171; and metropolitan agricultural preserve 
44.30 	reduction under section 473H.10 for school districts, shall be certified to the Department 
44.31 	of Education by the Department of Revenue. The amounts so certified shall be paid 
44.32 	according to section 127A.45, subdivisions 9 and 13.

44.33 	EFFECTIVE DATE. This section is effective for property taxes payable in 2016 
44.34 	and thereafter.

45.1 	Sec. 7. Minnesota Statutes 2014, section 273.1393, is amended to read:
45.2 	273.1393 COMPUTATION OF NET PROPERTY TAXES.
45.3 	Notwithstanding any other provisions to the contrary, "net" property taxes are 
45.4 	determined by subtracting the credits in the order listed from the gross tax:
45.5 	(1) disaster credit as provided in sections 273.1231 to 273.1235;
45.6 	(2) powerline credit as provided in section 273.42;
45.7 	(3) agricultural preserves credit as provided in section 473H.10;
45.8 	(4) enterprise zone credit as provided in section 469.171;
45.9 	(5) disparity reduction credit;
45.10 	(6) conservation tax credit as provided in section 273.119;
45.11 	(7) agricultural credit as provided in section 273.1384;
45.12 	(8) taconite homestead credit as provided in section 273.135;
45.13 	(9) supplemental homestead credit as provided in section 273.1391; and
45.14 	(10) the bovine tuberculosis zone credit, as provided in section 273.113; and
45.15 	(11) the targeted agricultural land credit, as provided in section 273.88.
45.16 	The combination of all property tax credits must not exceed the gross tax amount.

45.17 	EFFECTIVE DATE. This section is effective for property taxes payable in 2016 
45.18 	and thereafter.

45.19 	Sec. 8. [273.88] TARGETED AGRICULTURAL LAND TAX CREDIT.
45.20 		Subdivision 1.Eligibility; amount of credit. (a) Property classified in whole or 
45.21 	in part as class 2a agricultural property under section 273.13, subdivision 23, paragraph 
45.22 	(b), in both the prior year and the current year, is eligible for a property tax credit if the 
45.23 	gross property taxes payable on that portion of the property classified as agricultural 
45.24 	increase by more than eight percent over the property taxes payable in the prior year on the 
45.25 	same property and the amount of that increase is $200 or more. The amount of the credit 
45.26 	shall equal the amount of the increase over the greater of eight percent of the prior year's 
45.27 	property taxes payable or $200. The maximum credit allowed under this section is $2,000.
45.28 	(b) For purposes of this subdivision, "gross property taxes payable" means property 
45.29 	taxes payable excluding special assessments, penalties and interest, and assessed fees upon 
45.30 	the property determined without regard to the credit allowed under this section.
45.31 	(c) Agricultural property shall not be eligible for the credit under this section if: (1) 
45.32 	the property's boundaries have changed in the current payable year; (2) an improvement 
45.33 	was constructed upon the property; (3) valuation increases occurred relating to an 
45.34 	incremental value increase due to a plat law provision or based upon the termination of an 
46.1 	exclusion under section 273.11, subdivision 14a, 14b, or 14c; or (4) in the prior payable 
46.2 	year, the property was enrolled under section 273.111, 273.113, or 273.114, or chapter 
46.3 	473H or 40A, and that enrollment was removed for the current payable year.
46.4 	(d) If the amount of the credit exceeds the total of the net tax capacity-based gross 
46.5 	property taxes on that portion of the property eligible for a credit under subdivision (a), 
46.6 	the credit shall be limited to the net tax capacity-based gross property taxes payable on 
46.7 	that part of the property classified under section 273.13, subdivision 23, paragraph (b).
46.8 		Subd. 2.Credit reimbursement. The county auditor shall determine the tax 
46.9 	reductions allowed under subdivision 1 within the county for each taxes payable year and 
46.10 	certify that amount to the commissioner of revenue as part of the abstracts of tax listings 
46.11 	submitted by the county auditors under section 275.29. Any prior year adjustments 
46.12 	shall also be certified on the abstracts of tax lists. The commissioner shall review the 
46.13 	certifications for accuracy and make changes as necessary, or return the certification to the 
46.14 	county auditor for correction. The credit under this section must be used to proportionately 
46.15 	reduce the net tax capacity-based property tax payable to each local taxing jurisdiction 
46.16 	as provided in section 273.1393.
46.17 		Subd. 3.Payment. (a) The commissioner of revenue shall reimburse each local 
46.18 	taxing jurisdiction, other than school districts, for the tax reductions granted under 
46.19 	subdivision 1 in two equal installments on October 31 and December 26 of the taxes 
46.20 	payable year for which the reductions are granted, including in each payment the prior 
46.21 	year adjustments certified on the abstracts for that taxes payable year. The reimbursements 
46.22 	related to tax increments shall be issued in one installment each year on December 26.
46.23 	(b) The commissioner of revenue shall certify the total of the tax reductions 
46.24 	granted under subdivision 1 for each taxes payable year within each school district 
46.25 	to the commissioner of education, and the commissioner of education shall pay the 
46.26 	reimbursement amounts to each school district as provided in section 273.1392.
46.27 		Subd. 4.Appropriation. An amount sufficient to make the payments required by 
46.28 	this section to taxing jurisdictions other than school districts is annually appropriated 
46.29 	from the general fund to the commissioner of revenue. An amount sufficient to make the 
46.30 	payments required under this section for school districts is annually appropriated from the 
46.31 	general fund to the commissioner of education.

46.32 	EFFECTIVE DATE. This section is effective for property taxes payable in 2016 
46.33 	and thereafter.

46.34 	Sec. 9. Minnesota Statutes 2014, section 275.025, subdivision 1, is amended to read:
47.1 		Subdivision 1.Levy amount. The state general levy is levied against 
47.2 	commercial-industrial property and seasonal residential recreational property, as defined 
47.3 	in this section. The state general levy base amount for commercial-industrial property is 
47.4 	$592,000,000 $767,092,100 for taxes payable in 2002 2016. The state general levy base 
47.5 	amount for seasonal residential recreational property is $34,057,500 for taxes payable in 
47.6 	2016. For taxes payable in subsequent years, the each levy base amount is increased each 
47.7 	year by multiplying the levy base amount for the prior year by the sum of one plus the rate 
47.8 	of increase, if any, in the implicit price deflator for government consumption expenditures 
47.9 	and gross investment for state and local governments prepared by the Bureau of Economic 
47.10 	Analysts of the United States Department of Commerce for the 12-month period ending 
47.11 	March 31 of the year prior to the year the taxes are payable. The tax under this section is 
47.12 	not treated as a local tax rate under section 469.177 and is not the levy of a governmental 
47.13 	unit under chapters 276A and 473F.
47.14 	The commissioner shall increase or decrease the preliminary or final rate for a year 
47.15 	as necessary to account for errors and tax base changes that affected a preliminary or final 
47.16 	rate for either of the two preceding years. Adjustments are allowed to the extent that the 
47.17 	necessary information is available to the commissioner at the time the rates for a year must 
47.18 	be certified, and for the following reasons:
47.19 	(1) an erroneous report of taxable value by a local official;
47.20 	(2) an erroneous calculation by the commissioner; and
47.21 	(3) an increase or decrease in taxable value for commercial-industrial or seasonal 
47.22 	residential recreational property reported on the abstracts of tax lists submitted under 
47.23 	section 275.29 that was not reported on the abstracts of assessment submitted under 
47.24 	section 270C.89 for the same year.
47.25 	The commissioner may, but need not, make adjustments if the total difference in the tax 
47.26 	levied for the year would be less than $100,000.

47.27 	EFFECTIVE DATE. This section is effective for taxes payable in 2016 and 
47.28 	thereafter.

47.29 	Sec. 10. Minnesota Statutes 2014, section 275.025, subdivision 3, is amended to read:
47.30 		Subd. 3.Seasonal residential recreational tax capacity. For the purposes of this 
47.31 	section, "seasonal residential recreational tax capacity" means the tax capacity of tier III of 
47.32 	class 1c under section 273.13, subdivision 22, and all class 4c(1), 4c(3)(ii), and 4c(12) 
47.33 	property under section 273.13, subdivision 25, except that for each noncommercial class 
47.34 	4c(12) property: (i) the first $76,000 of market value of each noncommercial class 4c(12) 
48.1 	property has a tax capacity for this purpose equal to 40 percent of its tax capacity under 
48.2 	section 273.13; and (ii) the market value exceeding $300,000 shall be excluded for taxes 
48.3 	payable in 2016 and thereafter.

48.4 	EFFECTIVE DATE. This section is effective for taxes payable in 2016 and 
48.5 	thereafter.

48.6 	Sec. 11. Minnesota Statutes 2014, section 275.065, subdivision 1, is amended to read:
48.7 		Subdivision 1.Proposed levy. (a) Notwithstanding any law or charter to the 
48.8 	contrary, on or before September 30, each county and each, home rule charter or statutory 
48.9 	city, and special taxing district, excluding the metropolitan council and the metropolitan 
48.10 	mosquito control commission, shall certify to the county auditor the proposed property 
48.11 	tax levy for taxes payable in the following year. The proposed levy certification date for 
48.12 	the metropolitan council shall be as prescribed in sections 473.249 and 473.446. The 
48.13 	proposed levy certification date for the metropolitan mosquito control district shall be 
48.14 	as prescribed in section 473.711.
48.15 	(b) Notwithstanding any law or charter to the contrary, on or before September 15, 
48.16 	each town and each special taxing district shall adopt and certify to the county auditor a 
48.17 	proposed property tax levy for taxes payable in the following year. For towns, the final 
48.18 	certified levy shall also be considered the proposed levy.
48.19 	(c) On or before September 30, each school district that has not mutually agreed 
48.20 	with its home county to extend this date shall certify to the county auditor the proposed 
48.21 	property tax levy for taxes payable in the following year. Each school district that has 
48.22 	agreed with its home county to delay the certification of its proposed property tax levy 
48.23 	must certify its proposed property tax levy for the following year no later than October 
48.24 	7. The school district shall certify the proposed levy as:
48.25 	(1) a specific dollar amount by school district fund, broken down between 
48.26 	voter-approved and non-voter-approved levies and between referendum market value 
48.27 	and tax capacity levies; or
48.28 	(2) the maximum levy limitation certified by the commissioner of education 
48.29 	according to section 126C.48, subdivision 1.
48.30 	(d) If the board of estimate and taxation or any similar board that establishes 
48.31 	maximum tax levies for taxing jurisdictions within a first class city certifies the maximum 
48.32 	property tax levies for funds under its jurisdiction by charter to the county auditor by the 
48.33 	date specified in paragraph (a), the city shall be deemed to have certified its levies for 
48.34 	those taxing jurisdictions.
49.1 	(e) For purposes of this section, "special taxing district" means a special taxing 
49.2 	district as defined in section 275.066. Intermediate school districts that levy a tax 
49.3 	under chapter 124 or 136D, joint powers boards established under sections 123A.44 to 
49.4 	123A.446, and Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are 
49.5 	also special taxing districts for purposes of this section.
49.6 	(f) At the meeting at which a taxing authority, other than a town, adopts its proposed 
49.7 	tax levy under this subdivision, the taxing authority shall announce the time and place 
49.8 	of its subsequent regularly scheduled meetings at which the budget and levy will be 
49.9 	discussed and at which the public will be allowed to speak. The time and place of those 
49.10 	meetings must be included in the proceedings or summary of proceedings published in the 
49.11 	official newspaper of the taxing authority under section 123B.09, 375.12, or 412.191.

49.12 	EFFECTIVE DATE. This section is effective beginning with proposed levy 
49.13 	certifications for taxes payable in 2016.

49.14 	Sec. 12. Minnesota Statutes 2014, section 275.065, subdivision 3, is amended to read:
49.15 		Subd. 3.Notice of proposed property taxes. (a) The county auditor shall prepare 
49.16 	and the county treasurer shall deliver after November 10 and on or before November 24 
49.17 	each year, by first class mail to each taxpayer at the address listed on the county's current 
49.18 	year's assessment roll, a notice of proposed property taxes. Upon written request by 
49.19 	the taxpayer, the treasurer may send the notice in electronic form or by electronic mail 
49.20 	instead of on paper or by ordinary mail.
49.21 	(b) The commissioner of revenue shall prescribe the form of the notice.
49.22 	(c) The notice must inform taxpayers that it contains the amount of property taxes 
49.23 	each taxing authority proposes to collect for taxes payable the following year. In the case of 
49.24 	a town, or in the case of the state general tax, the final tax amount will be its proposed tax. 
49.25 	The notice must clearly state for each city that has a population over 500, county, school 
49.26 	district, regional library authority established under section 134.201, and metropolitan 
49.27 	taxing districts as defined in paragraph (i), the time and place of a meeting for each taxing 
49.28 	authority in which the budget and levy will be discussed and public input allowed, prior to 
49.29 	the final budget and levy determination. The taxing authorities must provide the county 
49.30 	auditor with the information to be included in the notice on or before the time it certifies 
49.31 	its proposed levy under subdivision 1. The public must be allowed to speak at that 
49.32 	meeting, which must occur after November 24 and must not be held before 6:00 p.m. It 
49.33 	must provide a telephone number for the taxing authority that taxpayers may call if they 
49.34 	have questions related to the notice and an address where comments will be received by 
49.35 	mail, except that no notice required under this section shall be interpreted as requiring the 
50.1 	printing of a personal telephone number or address as the contact information for a taxing 
50.2 	authority. If a taxing authority does not maintain public offices where telephone calls can 
50.3 	be received by the authority, the authority may inform the county of the lack of a public 
50.4 	telephone number and the county shall not list a telephone number for that taxing authority.
50.5 	(d) The notice must state for each parcel:
50.6 	(1) the market value of the property as determined under section 273.11, and used 
50.7 	for computing property taxes payable in the following year and for taxes payable in the 
50.8 	current year as each appears in the records of the county assessor on November 1 of the 
50.9 	current year; and, in the case of residential property, whether the property is classified as 
50.10 	homestead or nonhomestead. The notice must clearly inform taxpayers of the years to 
50.11 	which the market values apply and that the values are final values;
50.12 	(2) the items listed below, shown separately by county, city or town, and state 
50.13 	general tax, agricultural homestead credit under section 273.1384, targeted agricultural 
50.14 	land credit under section 273.88, voter approved school levy, other local school levy, and 
50.15 	the sum of the special taxing districts, and as a total of all taxing authorities:
50.16 	(i) the actual tax for taxes payable in the current year; and
50.17 	(ii) the proposed tax amount.
50.18 	If the county levy under clause (2) includes an amount for a lake improvement 
50.19 	district as defined under sections 103B.501 to 103B.581, the amount attributable for that 
50.20 	purpose must be separately stated from the remaining county levy amount.
50.21 	In the case of a town or the state general tax, the final tax shall also be its proposed 
50.22 	tax unless the town changes its levy at a special town meeting under section 365.52. If a 
50.23 	school district has certified under section 126C.17, subdivision 9, that a referendum will 
50.24 	be held in the school district at the November general election, the county auditor must 
50.25 	note next to the school district's proposed amount that a referendum is pending and that, if 
50.26 	approved by the voters, the tax amount may be higher than shown on the notice. In the 
50.27 	case of the city of Minneapolis, the levy for Minneapolis Park and Recreation shall be 
50.28 	listed separately from the remaining amount of the city's levy. In the case of the city of 
50.29 	St. Paul, the levy for the St. Paul Library Agency must be listed separately from the 
50.30 	remaining amount of the city's levy. In the case of Ramsey County, any amount levied 
50.31 	under section 134.07 may be listed separately from the remaining amount of the county's 
50.32 	levy. In the case of a parcel where tax increment or the fiscal disparities areawide tax 
50.33 	under chapter 276A or 473F applies, the proposed tax levy on the captured value or the 
50.34 	proposed tax levy on the tax capacity subject to the areawide tax must each be stated 
50.35 	separately and not included in the sum of the special taxing districts; and
51.1 	(3) the increase or decrease between the total taxes payable in the current year and 
51.2 	the total proposed taxes, expressed as a percentage.
51.3 	For purposes of this section, the amount of the tax on homesteads qualifying under 
51.4 	the senior citizens' property tax deferral program under chapter 290B is the total amount 
51.5 	of property tax before subtraction of the deferred property tax amount.
51.6 	(e) The notice must clearly state that the proposed or final taxes do not include 
51.7 	the following:
51.8 	(1) special assessments;
51.9 	(2) levies approved by the voters after the date the proposed taxes are certified, 
51.10 	including bond referenda and school district levy referenda;
51.11 	(3) a levy limit increase approved by the voters by the first Tuesday after the first 
51.12 	Monday in November of the levy year as provided under section 275.73;
51.13 	(4) amounts necessary to pay cleanup or other costs due to a natural disaster 
51.14 	occurring after the date the proposed taxes are certified;
51.15 	(5) amounts necessary to pay tort judgments against the taxing authority that become 
51.16 	final after the date the proposed taxes are certified; and
51.17 	(6) the contamination tax imposed on properties which received market value 
51.18 	reductions for contamination.
51.19 	(f) Except as provided in subdivision 7, failure of the county auditor to prepare or 
51.20 	the county treasurer to deliver the notice as required in this section does not invalidate the 
51.21 	proposed or final tax levy or the taxes payable pursuant to the tax levy.
51.22 	(g) If the notice the taxpayer receives under this section lists the property as 
51.23 	nonhomestead, and satisfactory documentation is provided to the county assessor by the 
51.24 	applicable deadline, and the property qualifies for the homestead classification in that 
51.25 	assessment year, the assessor shall reclassify the property to homestead for taxes payable 
51.26 	in the following year.
51.27 	(h) In the case of class 4 residential property used as a residence for lease or rental 
51.28 	periods of 30 days or more, the taxpayer must either:
51.29 	(1) mail or deliver a copy of the notice of proposed property taxes to each tenant, 
51.30 	renter, or lessee; or
51.31 	(2) post a copy of the notice in a conspicuous place on the premises of the property.
51.32 	The notice must be mailed or posted by the taxpayer by November 27 or within 
51.33 	three days of receipt of the notice, whichever is later. A taxpayer may notify the county 
51.34 	treasurer of the address of the taxpayer, agent, caretaker, or manager of the premises to 
51.35 	which the notice must be mailed in order to fulfill the requirements of this paragraph.
52.1 	(i) For purposes of this subdivision and subdivision 6, "metropolitan special taxing 
52.2 	districts" means the following taxing districts in the seven-county metropolitan area that 
52.3 	levy a property tax for any of the specified purposes listed below:
52.4 	(1) Metropolitan Council under section 473.132, 473.167, 473.249, 473.325, 
52.5 	473.446, 473.521, 473.547, or 473.834;
52.6 	(2) Metropolitan Airports Commission under section 473.667, 473.671, or 473.672; 
52.7 	and
52.8 	(3) Metropolitan Mosquito Control Commission under section 473.711.
52.9 	For purposes of this section, any levies made by the regional rail authorities in the 
52.10 	county of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington under chapter 
52.11 	398A shall be included with the appropriate county's levy.
52.12 	(j) The governing body of a county, city, or school district may, with the consent 
52.13 	of the county board, include supplemental information with the statement of proposed 
52.14 	property taxes about the impact of state aid increases or decreases on property tax 
52.15 	increases or decreases and on the level of services provided in the affected jurisdiction. 
52.16 	This supplemental information may include information for the following year, the current 
52.17 	year, and for as many consecutive preceding years as deemed appropriate by the governing 
52.18 	body of the county, city, or school district. It may include only information regarding:
52.19 	(1) the impact of inflation as measured by the implicit price deflator for state and 
52.20 	local government purchases;
52.21 	(2) population growth and decline;
52.22 	(3) state or federal government action; and
52.23 	(4) other financial factors that affect the level of property taxation and local services 
52.24 	that the governing body of the county, city, or school district may deem appropriate to 
52.25 	include.
52.26 	The information may be presented using tables, written narrative, and graphic 
52.27 	representations and may contain instruction toward further sources of information or 
52.28 	opportunity for comment.

52.29 	EFFECTIVE DATE. This section is effective for property taxes payable in 2016 
52.30 	and thereafter.

52.31 	Sec. 13. Minnesota Statutes 2014, section 275.066, is amended to read:
52.32 	275.066 SPECIAL TAXING DISTRICTS; DEFINITION.
52.33 	For the purposes of property taxation and property tax state aids, the term "special 
52.34 	taxing districts" includes the following entities:
53.1 	(1) watershed districts under chapter 103D;
53.2 	(2) sanitary districts under sections 442A.01 to 442A.29;
53.3 	(3) regional sanitary sewer districts under sections 115.61 to 115.67;
53.4 	(4) regional public library districts under section 134.201;
53.5 	(5) park districts under chapter 398;
53.6 	(6) regional railroad authorities under chapter 398A;
53.7 	(7) hospital districts under sections 447.31 to 447.38;
53.8 	(8) St. Cloud Metropolitan Transit Commission under sections 458A.01 to 458A.15;
53.9 	(9) Duluth Transit Authority under sections 458A.21 to 458A.37;
53.10 	(10) regional development commissions under sections 462.381 to 462.398;
53.11 	(11) housing and redevelopment authorities under sections 469.001 to 469.047;
53.12 	(12) port authorities under sections 469.048 to 469.068;
53.13 	(13) economic development authorities under sections 469.090 to 469.1081;
53.14 	(14) Metropolitan Council under sections 473.123 to 473.549;
53.15 	(15) Metropolitan Airports Commission under sections 473.601 to 473.679;
53.16 	(16) Metropolitan Mosquito Control Commission under sections 473.701 to 473.716;
53.17 	(17) Morrison County Rural Development Financing Authority under Laws 1982, 
53.18 	chapter 437, section 1;
53.19 	(18) Croft Historical Park District under Laws 1984, chapter 502, article 13, section 6;
53.20 	(19) East Lake County Medical Clinic District under Laws 1989, chapter 211, 
53.21 	sections 1 to 6;
53.22 	(20) Floodwood Area Ambulance District under Laws 1993, chapter 375, article 
53.23 	5, section 39;
53.24 	(21) Middle Mississippi River Watershed Management Organization under sections 
53.25 	103B.211 and 103B.241;
53.26 	(22) emergency medical services special taxing districts under section 144F.01;
53.27 	(23) a county levying under the authority of section 103B.241, 103B.245, or 
53.28 	103B.251, or 103C.331;
53.29 	(24) Southern St. Louis County Special Taxing District; Chris Jensen Nursing Home 
53.30 	under Laws 2003, First Special Session chapter 21, article 4, section 12;
53.31 	(25) an airport authority created under section 360.0426; and
53.32 	(26) any other political subdivision of the state of Minnesota, excluding counties, 
53.33 	school districts, cities, and towns, that has the power to adopt and certify a property tax 
53.34 	levy to the county auditor, as determined by the commissioner of revenue.

53.35 	EFFECTIVE DATE. This section is effective for assessment year 2016.

54.1 	Sec. 14. Minnesota Statutes 2014, section 275.07, subdivision 1, is amended to read:
54.2 		Subdivision 1.Certification of levy. (a) Except as provided under paragraph (b), 
54.3 	the taxes voted by cities, counties, school districts, and special districts shall be certified 
54.4 	by the proper authorities to the county auditor on or before five working days after 
54.5 	December 20 in each year. A town must certify the levy adopted by the town board to 
54.6 	the county auditor by September 15 each year. If the town board modifies the levy at a 
54.7 	special town meeting after September 15, the town board must recertify its levy to the 
54.8 	county auditor on or before five working days after December 20. If a city, town, county, 
54.9 	school district, or special district fails to certify its levy by that date, its levy shall be the 
54.10 	amount levied by it for the preceding year.
54.11 	(b)(i) The taxes voted by counties under sections 103B.241, 103B.245, and 
54.12 	103B.251, and 103C.331 shall be separately certified by the county to the county auditor 
54.13 	on or before five working days after December 20 in each year. The taxes certified 
54.14 	shall not be reduced by the county auditor by the aid received under section 273.1398, 
54.15 	subdivision 3. If a county fails to certify its levy by that date, its levy shall be the amount 
54.16 	levied by it for the preceding year.
54.17 	(ii) For purposes of the proposed property tax notice under section 275.065 and 
54.18 	the property tax statement under section 276.04, for the first year in which the county 
54.19 	implements the provisions of this paragraph, the county auditor shall reduce the county's 
54.20 	levy for the preceding year to reflect any amount levied for water management purposes 
54.21 	under clause (i) included in the county's levy.

54.22 	EFFECTIVE DATE. This section is effective for assessment year 2016.

54.23 	Sec. 15. Minnesota Statutes 2014, section 276.04, subdivision 2, is amended to read:
54.24 		Subd. 2.Contents of tax statements. (a) The treasurer shall provide for the printing 
54.25 	of the tax statements. The commissioner of revenue shall prescribe the form of the property 
54.26 	tax statement and its contents. The tax statement must not state or imply that property tax 
54.27 	credits are paid by the state of Minnesota. The statement must contain a tabulated statement 
54.28 	of the dollar amount due to each taxing authority and the amount of the state tax from the 
54.29 	parcel of real property for which a particular tax statement is prepared. The dollar amounts 
54.30 	attributable to the county, the state tax, the voter approved school tax, the other local school 
54.31 	tax, the township or municipality, and the total of the metropolitan special taxing districts 
54.32 	as defined in section 275.065, subdivision 3, paragraph (i), must be separately stated. 
54.33 	The amounts due all other special taxing districts, if any, may be aggregated except that 
54.34 	any levies made by the regional rail authorities in the county of Anoka, Carver, Dakota, 
54.35 	Hennepin, Ramsey, Scott, or Washington under chapter 398A shall be listed on a separate 
55.1 	line directly under the appropriate county's levy. If the county levy under this paragraph 
55.2 	includes an amount for a lake improvement district as defined under sections 103B.501 
55.3 	to 103B.581, the amount attributable for that purpose must be separately stated from the 
55.4 	remaining county levy amount. In the case of Ramsey County, if the county levy under this 
55.5 	paragraph includes an amount for public library service under section 134.07, the amount 
55.6 	attributable for that purpose may be separated from the remaining county levy amount. 
55.7 	The amount of the tax on homesteads qualifying under the senior citizens' property tax 
55.8 	deferral program under chapter 290B is the total amount of property tax before subtraction 
55.9 	of the deferred property tax amount. The amount of the tax on contamination value 
55.10 	imposed under sections 270.91 to 270.98, if any, must also be separately stated. The dollar 
55.11 	amounts, including the dollar amount of any special assessments, may be rounded to the 
55.12 	nearest even whole dollar. For purposes of this section whole odd-numbered dollars may 
55.13 	be adjusted to the next higher even-numbered dollar. The amount of market value excluded 
55.14 	under section 273.11, subdivision 16, if any, must also be listed on the tax statement.
55.15 	(b) The property tax statements for manufactured homes and sectional structures 
55.16 	taxed as personal property shall contain the same information that is required on the 
55.17 	tax statements for real property.
55.18 	(c) Real and personal property tax statements must contain the following information 
55.19 	in the order given in this paragraph. The information must contain the current year tax 
55.20 	information in the right column with the corresponding information for the previous year 
55.21 	in a column on the left:
55.22 	(1) the property's estimated market value under section 273.11, subdivision 1;
55.23 	(2) the property's homestead market value exclusion under section 273.13, 
55.24 	subdivision 35;
55.25 	(3) the property's taxable market value under section 272.03, subdivision 15;
55.26 	(4) the property's gross tax, before credits;
55.27 	(5) for agricultural properties, the credit under section 273.88;
55.28 	(5) (6) for homestead agricultural properties, the credit under section 273.1384;
55.29 	(6) (7) any credits received under sections 273.119; 273.1234 or 273.1235; 273.135; 
55.30 	273.1391; 273.1398, subdivision 4; 469.171; and 473H.10, except that the amount of 
55.31 	credit received under section 273.135 must be separately stated and identified as "taconite 
55.32 	tax relief"; and
55.33 	(7) (8) the net tax payable in the manner required in paragraph (a).
55.34 	(d) If the county uses envelopes for mailing property tax statements and if the county 
55.35 	agrees, a taxing district may include a notice with the property tax statement notifying 
55.36 	taxpayers when the taxing district will begin its budget deliberations for the current 
56.1 	year, and encouraging taxpayers to attend the hearings. If the county allows notices to 
56.2 	be included in the envelope containing the property tax statement, and if more than 
56.3 	one taxing district relative to a given property decides to include a notice with the tax 
56.4 	statement, the county treasurer or auditor must coordinate the process and may combine 
56.5 	the information on a single announcement.

56.6 	EFFECTIVE DATE. This section is effective for property taxes payable in 2016 
56.7 	and thereafter.

56.8 	Sec. 16. Minnesota Statutes 2014, section 276A.06, subdivision 3, is amended to read:
56.9 		Subd. 3.Apportionment of levy. The county auditor shall apportion the levy of 
56.10 	each governmental unit in the county in the manner prescribed by this subdivision. The 
56.11 	auditor shall:
56.12 	(1) by August 20 of 2014 and each subsequent year, determine the preliminary 
56.13 	areawide portion of the levy for each governmental unit by multiplying the local tax 
56.14 	rate of the governmental unit for the preceding levy year times the distribution value set 
56.15 	forth in subdivision 2, clause (2);
56.16 	(2) by September 5 of each year, adjust the preliminary areawide portion of the 
56.17 	levy for each governmental unit by the adjustment percentage, if any, determined under 
56.18 	subdivision 5, paragraph (b);
56.19 	(2) (3) by September 5 of 2014 and each subsequent year, determine the areawide 
56.20 	portion of the levy for each governmental unit by multiplying the adjusted preliminary 
56.21 	areawide portion of the levy for each governmental unit times a fraction, the numerator of 
56.22 	which is the difference between the sum of the adjusted preliminary areawide levies for all 
56.23 	governmental units in the area minus the school fund allocation and the denominator is the 
56.24 	sum of the adjusted preliminary areawide levy for all governmental units in the area; and
56.25 	(3) (4) by September 5 of 2014 and each subsequent year, determine the local 
56.26 	portion of the current year's levy by subtracting the resulting amount from clause (1) (2) 
56.27 	from the governmental unit's current year's levy.

56.28 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2017.

56.29 	Sec. 17. Minnesota Statutes 2014, section 276A.06, subdivision 5, is amended to read:
56.30 		Subd. 5.Areawide tax rate. (a) On or before August 25, 1997, and of each 
56.31 	subsequent year, the county auditor shall certify to the administrative auditor the 
56.32 	preliminary portion of the levy of each governmental unit determined pursuant to 
56.33 	subdivision 3, clause (1). The administrative auditor shall then determine the areawide 
57.1 	tax rate sufficient to yield an amount equal to the sum of the levies from the preliminary 
57.2 	areawide net tax capacity. 
57.3 	(b) The areawide tax rate may not deviate from the previous year's areawide rate by 
57.4 	more than five percentage points. If the areawide tax rate determined under paragraph 
57.5 	(a) does not fall within that range, the auditor must determine the percentage increase or 
57.6 	reduction to each jurisdiction's distribution levy necessary so that the areawide rate falls 
57.7 	within the range and recalculate the areawide rate accordingly. 
57.8 	(c) On or before September 1, the administrative auditor shall certify the areawide 
57.9 	tax rate to each of the county auditors.

57.10 	EFFECTIVE DATE. This section is effective beginning with taxes payable in 2017.

57.11 	Sec. 18. Minnesota Statutes 2014, section 279.01, subdivision 1, is amended to read:
57.12 		Subdivision 1.Due dates; penalties. (a) Except as provided in subdivisions 3 to 5, 
57.13 	on May 16 or 21 days after the postmark date on the envelope containing the property tax 
57.14 	statement, whichever is later, a penalty accrues and thereafter is charged upon all unpaid 
57.15 	taxes on real estate on the current lists in the hands of the county treasurer. The penalty is 
57.16 	at a rate of two percent on homestead property until May 31 and four percent on June 1. 
57.17 	The penalty on nonhomestead property is at a rate of four percent until May 31 and eight 
57.18 	percent on June 1. This penalty does not accrue until June 1 of each year, or 21 days after 
57.19 	the postmark date on the envelope containing the property tax statements, whichever is 
57.20 	later, on commercial use real property used for seasonal residential recreational purposes 
57.21 	and classified as class 1c or 4c, and on other commercial use real property classified as 
57.22 	class 3a, provided that over 60 percent of the gross income earned by the enterprise on the 
57.23 	class 3a property is earned during the months of May, June, July, and August. In order for 
57.24 	the first half of the tax due on class 3a property to be paid after May 15 and before June 1, 
57.25 	or 21 days after the postmark date on the envelope containing the property tax statement, 
57.26 	whichever is later, without penalty, the owner of the property must attach an affidavit 
57.27 	to the payment attesting to compliance with the income provision of this subdivision. 
57.28 	Thereafter, for both homestead and nonhomestead property, on the first day of each month 
57.29 	beginning July 1, up to and including October 1 following, an additional penalty of one 
57.30 	percent for each month accrues and is charged on all such unpaid taxes provided that if the 
57.31 	due date was extended beyond May 15 as the result of any delay in mailing property tax 
57.32 	statements no additional penalty shall accrue if the tax is paid by the extended due date. If 
57.33 	the tax is not paid by the extended due date, then all penalties that would have accrued if 
57.34 	the due date had been May 15 shall be charged. When the taxes against any tract or lot 
57.35 	exceed $100, one-half thereof may be paid prior to May 16 or 21 days after the postmark 
58.1 	date on the envelope containing the property tax statement, whichever is later; and, if so 
58.2 	paid, no penalty attaches; the remaining one-half may be paid at any time prior to October 
58.3 	16 following, without penalty; but, if not so paid, then a penalty of two percent accrues 
58.4 	thereon for homestead property and a penalty of four percent on nonhomestead property. 
58.5 	Thereafter, for homestead property, on the first day of November an additional penalty of 
58.6 	four percent accrues and on the first day of December following, an additional penalty of 
58.7 	two percent accrues and is charged on all such unpaid taxes. Thereafter, for nonhomestead 
58.8 	property, on the first day of November and December following, an additional penalty of 
58.9 	four percent for each month accrues and is charged on all such unpaid taxes. If one-half of 
58.10 	such taxes are not paid prior to May 16 or 21 days after the postmark date on the envelope 
58.11 	containing the property tax statement, whichever is later, the same may be paid at any time 
58.12 	prior to October 16, with accrued penalties to the date of payment added, and thereupon 
58.13 	no penalty attaches to the remaining one-half until October 16 following.
58.14 	(b) This section applies to payment of personal property taxes assessed against 
58.15 	improvements to leased property, except as provided by section 277.01, subdivision 3.
58.16 	(c) A county may provide by resolution that in the case of a property owner that has 
58.17 	multiple tracts or parcels with aggregate taxes exceeding $100, payments may be made in 
58.18 	installments as provided in this subdivision.
58.19 	(d) The county treasurer may accept payments of more or less than the exact amount 
58.20 	of a tax installment due. Payments must be applied first to the oldest installment that is due 
58.21 	but which has not been fully paid. If the accepted payment is less than the amount due, 
58.22 	payments must be applied first to the penalty accrued for the year or the installment being 
58.23 	paid. Acceptance of partial payment of tax does not constitute a waiver of the minimum 
58.24 	payment required as a condition for filing an appeal under section 278.03 or any other law, 
58.25 	nor does it affect the order of payment of delinquent taxes under section 280.39.
58.26 	(e) No penalty under this section shall accrue if the property tax payment is delivered 
58.27 	by mail to the county treasurer and the envelope containing the payment is postmarked 
58.28 	within two business days of the due date prescribed under this section.

58.29 	EFFECTIVE DATE. This section is effective for property taxes payable in 2016 
58.30 	and thereafter.

58.31 	Sec. 19. Minnesota Statutes 2014, section 279.37, subdivision 2, is amended to read:
58.32 		Subd. 2.Installment payments. (a) The owner of any such parcel, or any person to 
58.33 	whom the right to pay taxes has been given by statute, mortgage, or other agreement, may 
58.34 	make and file with the county auditor of the county in which the parcel is located a written 
58.35 	offer to pay the current taxes each year before they become delinquent, or to contest 
59.1 	the taxes under chapter 278 and agree to confess judgment for the amount provided, as 
59.2 	determined by the county auditor. By filing the offer, the owner waives all irregularities 
59.3 	in connection with the tax proceedings affecting the parcel and any defense or objection 
59.4 	which the owner may have to the proceedings, and also waives the requirements of any 
59.5 	notice of default in the payment of any installment or interest to become due pursuant to 
59.6 	the composite judgment to be so entered. Unless the property is subject to subdivision 1a, 
59.7 	with the offer, the owner shall (i) tender one-tenth of the amount of the delinquent taxes, 
59.8 	costs, penalty, and interest, and (ii) tender all current year taxes and penalty due at the 
59.9 	time the confession of judgment is entered. In the offer, the owner shall agree to pay the 
59.10 	balance in nine equal installments, with interest as provided in section 279.03, payable 
59.11 	annually on installments remaining unpaid from time to time, on or before December 31 
59.12 	of each year following the year in which judgment was confessed.
59.13 	(b) For property which qualifies under section 279.03, subdivision 2, paragraph (b), 
59.14 	each year the commissioner shall set the interest rate for offers made under paragraph (a) 
59.15 	at the greater of five percent or two percent above the prime rate charged by banks during 
59.16 	the six-month period ending on September 30 of that year, rounded to the nearest full 
59.17 	percent, provided that the rate must not exceed the maximum annum rate specified under 
59.18 	section 279.03, subdivision 1a. The rate of interest becomes effective on January 1 of the 
59.19 	immediately succeeding year. The commissioner's determination under this subdivision is 
59.20 	not a rule subject to the Administrative Procedure Act in chapter 14, including section 
59.21 	14.386. If a default occurs in the payments under any confessed judgment entered under 
59.22 	this paragraph, the taxes and penalties due are subject to the interest rate specified in 
59.23 	section 279.03.
59.24 	For the purposes of this subdivision:
59.25 	(1) the term "prime rate charged by banks" means the average predominant prime 
59.26 	rate quoted by commercial banks to large businesses, as determined by the Board of 
59.27 	Governors of the Federal Reserve System; and
59.28 	(2) "default" means the cancellation of the confession of judgment due to 
59.29 	nonpayment of the current year tax or failure to make any installment payment required by 
59.30 	this confessed judgment within 60 days from the date on which payment was due.
59.31 	(c) The interest rate established at the time judgment is confessed is fixed for the 
59.32 	duration of the judgment. By October 15 of each year, the commissioner of revenue must 
59.33 	determine the rate of interest as provided under paragraph (b) and, by November 1 of each 
59.34 	year, must certify the rate to the county auditor.
59.35 	(d) A qualified property owner eligible to enter into a second confession of judgment 
59.36 	may do so at the interest rate provided in paragraph (b).
60.1 	(e) Repurchase agreements or contracts for repurchase for properties being 
60.2 	repurchased under section 282.261 are not eligible to receive the interest rate under 
60.3 	paragraph (b).
60.4 	(f) (e) The offer must be substantially as follows:
60.5 	"To the court administrator of the district court of ........... county, I, ....................., 
60.6 	am the owner of the following described parcel of real estate located in .................... 
60.7 	county, Minnesota:
60.8 	.............................. Upon that real estate there are delinquent taxes for the year ........., and 
60.9 	prior years, as follows: (here insert year of delinquency and the total amount of delinquent 
60.10 	taxes, costs, interest, and penalty). By signing this document I offer to confess judgment 
60.11 	in the sum of $...... and waive all irregularities in the tax proceedings affecting these 
60.12 	taxes and any defense or objection which I may have to them, and direct judgment to be 
60.13 	entered for the amount stated above, minus the sum of $............, to be paid with this 
60.14 	document, which is one-tenth or one-fifth of the amount of the taxes, costs, penalty, and 
60.15 	interest stated above. I agree to pay the balance of the judgment in nine or four equal, 
60.16 	annual installments, with interest as provided in section 279.03, payable annually, on the 
60.17 	installments remaining unpaid. I agree to pay the installments and interest on or before 
60.18 	December 31 of each year following the year in which this judgment is confessed and 
60.19 	current taxes each year before they become delinquent, or within 30 days after the entry of 
60.20 	final judgment in proceedings to contest the taxes under chapter 278.
60.21 	Dated .............., ......."

60.22 	EFFECTIVE DATE. This section is effective for sales and repurchases occurring 
60.23 	after June 30, 2015.

60.24 	Sec. 20. Minnesota Statutes 2014, section 282.01, subdivision 4, is amended to read:
60.25 		Subd. 4.Sale: method, requirements, effects. The sale authorized under 
60.26 	subdivision 3 must be conducted by the county auditor at the county seat of the county in 
60.27 	which the parcels lie, except that in St. Louis and Koochiching Counties, the sale may 
60.28 	be conducted in any county facility within the county. The sale must not be for less than 
60.29 	the appraised value except as provided in subdivision 7a. The parcels must be sold for 
60.30 	cash only, unless the county board of the county has adopted a resolution providing for 
60.31 	their sale on terms, in which event the resolution controls with respect to the sale. When 
60.32 	the sale is made on terms other than for cash only (1) a payment of at least ten percent 
60.33 	of the purchase price must be made at the time of purchase, and the balance must be 
60.34 	paid in no more than ten equal annual installments, or (2) the payments must be made 
61.1 	in accordance with county board policy, but in no event may the board require more 
61.2 	than 12 installments annually, and the contract term must not be for more than ten years. 
61.3 	Standing timber or timber products must not be removed from these lands until an amount 
61.4 	equal to the appraised value of all standing timber or timber products on the lands at the 
61.5 	time of purchase has been paid by the purchaser. If a parcel of land bearing standing 
61.6 	timber or timber products is sold at public auction for more than the appraised value, the 
61.7 	amount bid in excess of the appraised value must be allocated between the land and the 
61.8 	timber in proportion to their respective appraised values. In that case, standing timber or 
61.9 	timber products must not be removed from the land until the amount of the excess bid 
61.10 	allocated to timber or timber products has been paid in addition to the appraised value of 
61.11 	the land. The purchaser is entitled to immediate possession, subject to the provisions of 
61.12 	any existing valid lease made in behalf of the state.
61.13 	For sales occurring on or after July 1, 1982, the unpaid balance of the purchase price 
61.14 	is subject to interest at the rate determined pursuant to section 549.09. The unpaid balance 
61.15 	of the purchase price for sales occurring after December 31, 1990, is subject to interest 
61.16 	at the same rate as installment payments on confession of judgment for delinquent taxes 
61.17 	determined in section 279.03, subdivision 1a 279.37, subdivision 2, paragraph (b). The 
61.18 	interest rate is subject to change each year on the unpaid balance in the manner provided 
61.19 	for rate changes in section 549.09 or 279.03, subdivision 1a, whichever, is applicable. 
61.20 	Interest on the unpaid contract balance on sales occurring before July 1, 1982, is payable 
61.21 	at the rate applicable to the sale at the time that the sale occurred.

61.22 	EFFECTIVE DATE. This section is effective for sales occurring after June 30, 2015.

61.23 	Sec. 21. Minnesota Statutes 2014, section 282.261, subdivision 2, is amended to read:
61.24 		Subd. 2.Interest rate. The unpaid balance on any repurchase contract approved 
61.25 	by the county board is subject to interest at the same rate as installment payments on 
61.26 	confession of judgment for delinquent taxes determined in section 279.03, subdivision 1a 
61.27 	279.37, subdivision 2, paragraph (b). The interest rate is subject to change each year on the 
61.28 	unpaid balance in the manner provided for rate changes in section 279.03, subdivision 1a.

61.29 	EFFECTIVE DATE. This section is effective for repurchases occurring after June 
61.30 	30, 2015.

61.31 	Sec. 22. Minnesota Statutes 2014, section 290A.03, subdivision 13, is amended to read:
61.32 		Subd. 13.Property taxes payable. "Property taxes payable" means the property tax 
61.33 	exclusive of special assessments, penalties, and interest payable on a claimant's homestead 
62.1 	after deductions made under sections 273.135, 273.1384, 273.1391, 273.42, subdivision 2, 
62.2 	and any other state paid property tax credits in any calendar year, and after any refund 
62.3 	claimed and allowable under section 290A.04, subdivision 2h, that is first payable in 
62.4 	the year that the property tax is payable. In the case of a claimant who makes ground 
62.5 	lease payments, "property taxes payable" includes the amount of the payments directly 
62.6 	attributable to the property taxes assessed against the parcel on which the house is located. 
62.7 	No apportionment or reduction of the "property taxes payable" shall be required for the 
62.8 	use of a portion of the claimant's homestead for a business purpose if the claimant does not 
62.9 	deduct any business depreciation expenses for the use of a portion of the homestead, or 
62.10 	elects to deduct expenses under section 280A of the Internal Revenue Code for a business 
62.11 	operated in a home, in the determination of federal adjusted gross income. For homesteads 
62.12 	which are manufactured homes as defined in section 273.125, subdivision 8, and for 
62.13 	homesteads which are park trailers taxed as manufactured homes under section 168.012, 
62.14 	subdivision 9, "property taxes payable" shall also include 17 percent of the gross rent paid 
62.15 	in the preceding year for the site on which the homestead is located. When a homestead 
62.16 	is owned by two or more persons as joint tenants or tenants in common, such tenants 
62.17 	shall determine between them which tenant may claim the property taxes payable on the 
62.18 	homestead. If they are unable to agree, the matter shall be referred to the commissioner of 
62.19 	revenue whose decision shall be final. Property taxes are considered payable in the year 
62.20 	prescribed by law for payment of the taxes.
62.21 	In the case of a claim relating to "property taxes payable," the claimant must have 
62.22 	owned and occupied the homestead on January 2 of the year in which the tax is payable 
62.23 	and (i) the property must have been classified as homestead property pursuant to section 
62.24 	273.124, on or before December 15 of the assessment year to which the "property taxes 
62.25 	payable" relate; or (ii) the claimant must provide documentation from the local assessor 
62.26 	that application for homestead classification has been made on or before December 15 
62.27 	of the year in which the "property taxes payable" were payable and that the assessor has 
62.28 	approved the application.

62.29 	EFFECTIVE DATE. This section is effective for refunds based on rent paid after 
62.30 	December 31, 2013, and property taxes payable after December 31, 2014.

62.31 	Sec. 23. Minnesota Statutes 2014, section 290A.04, subdivision 2h, is amended to read:
62.32 		Subd. 2h.Additional refund. (a) If the gross property taxes payable on a homestead 
62.33 	increase more than 12 ten percent over the property taxes payable in the prior year on the 
62.34 	same property that is owned and occupied by the same owner on January 2 of both years, 
62.35 	and the amount of that increase is $100 or more, a claimant who is a homeowner shall 
63.1 	be allowed an additional refund equal to 60 percent of the amount of the increase over 
63.2 	the greater of 12 ten percent of the prior year's property taxes payable or $100. This 
63.3 	subdivision shall not apply to any increase in the gross property taxes payable attributable 
63.4 	to improvements made to the homestead after the assessment date for the prior year's 
63.5 	taxes. This subdivision shall not apply to any increase in the gross property taxes payable 
63.6 	attributable to the termination of valuation exclusions under section 273.11, subdivision 16.
63.7 	The maximum refund allowed under this subdivision is $1,000.
63.8 	(b) For purposes of this subdivision "gross property taxes payable" means property 
63.9 	taxes payable determined without regard to the refund allowed under this subdivision.
63.10 	(c) In addition to the other proofs required by this chapter, each claimant under this 
63.11 	subdivision shall file with the property tax refund return a copy of the property tax statement 
63.12 	for taxes payable in the preceding year or other documents required by the commissioner.
63.13 	(d) Upon request, the appropriate county official shall make available the names and 
63.14 	addresses of the property taxpayers who may be eligible for the additional property tax 
63.15 	refund under this section. The information shall be provided on a magnetic computer 
63.16 	disk. The county may recover its costs by charging the person requesting the information 
63.17 	the reasonable cost for preparing the data. The information may not be used for any 
63.18 	purpose other than for notifying the homeowner of potential eligibility and assisting the 
63.19 	homeowner, without charge, in preparing a refund claim.

63.20 	EFFECTIVE DATE. This section is effective for refund claims based on taxes 
63.21 	payable in 2016 and thereafter.

63.22 	Sec. 24. Minnesota Statutes 2014, section 290B.03, subdivision 1, is amended to read:
63.23 		Subdivision 1.Program qualifications. The qualifications for the senior citizens' 
63.24 	property tax deferral program are as follows:
63.25 	(1) the property must be owned and occupied as a homestead by a person 65 years of 
63.26 	age or older. In the case of a married couple, at least one of the spouses must be at least 65 
63.27 	years old at the time the first property tax deferral is granted, regardless of whether the 
63.28 	property is titled in the name of one spouse or both spouses, or titled in another way that 
63.29 	permits the property to have homestead status, and the other spouse must be at least 62 
63.30 	years of age;
63.31 	(2) the total household income of the qualifying homeowners, as defined in section 
63.32 	290A.03, subdivision 5, for the calendar year preceding the year of the initial application 
63.33 	may not exceed $60,000;
64.1 	(3) the homestead must have been owned and occupied as the homestead of at least 
64.2 	one of the qualifying homeowners for at least 15 five years prior to the year the initial 
64.3 	application is filed;
64.4 	(4) there are no state or federal tax liens or judgment liens on the homesteaded 
64.5 	property;
64.6 	(5) there are no mortgages or other liens on the property that secure future advances, 
64.7 	except for those subject to credit limits that result in compliance with clause (6); and
64.8 	(6) the total unpaid balances of debts secured by mortgages and other liens on the 
64.9 	property, including unpaid and delinquent special assessments and interest and any 
64.10 	delinquent property taxes, penalties, and interest, but not including property taxes payable 
64.11 	during the year, does not exceed 75 percent of the assessor's estimated market value for 
64.12 	the year.

64.13 	EFFECTIVE DATE. This section is effective for applications for deferral of taxes 
64.14 	payable in 2016 and thereafter.

64.15 	Sec. 25. Minnesota Statutes 2014, section 290B.04, subdivision 1, is amended to read:
64.16 		Subdivision 1.Initial application. (a) A taxpayer meeting the program 
64.17 	qualifications under section 290B.03 may apply to the commissioner of revenue for the 
64.18 	deferral of taxes. Applications are due on or before July November 1 for deferral of any 
64.19 	of the following year's property taxes. A taxpayer may apply in the year in which the 
64.20 	taxpayer becomes 65 years old, provided that no deferral of property taxes will be made 
64.21 	until the calendar year after the taxpayer becomes 65 years old. The application, which 
64.22 	shall be prescribed by the commissioner of revenue, shall include the following items and 
64.23 	any other information which the commissioner deems necessary:
64.24 	(1) the name, address, and Social Security number of the owner or owners;
64.25 	(2) a copy of the property tax statement for the current payable year for the 
64.26 	homesteaded property;
64.27 	(3) the initial year of ownership and occupancy as a homestead;
64.28 	(4) the owner's household income for the previous calendar year; and
64.29 	(5) information on any mortgage loans or other amounts secured by mortgages or 
64.30 	other liens against the property, for which purpose the commissioner may require the 
64.31 	applicant to provide a copy of the mortgage note, the mortgage, or a statement of the 
64.32 	balance owing on the mortgage loan provided by the mortgage holder. The commissioner 
64.33 	may require the appropriate documents in connection with obtaining and confirming 
64.34 	information on unpaid amounts secured by other liens.
65.1 	The application must state that program participation is voluntary. The application 
65.2 	must also state that the deferred amount depends directly on the applicant's household 
65.3 	income, and that program participation includes authorization for the annual deferred 
65.4 	amount, the cumulative deferral and interest that appear on each year's notice prepared by 
65.5 	the county under subdivision 6, is public data.
65.6 	The application must state that program participants may claim the property tax 
65.7 	refund based on the full amount of property taxes eligible for the refund, including any 
65.8 	deferred amounts. The application must also state that property tax refunds will be used to 
65.9 	offset any deferral and interest under this program, and that any other amounts subject to 
65.10 	revenue recapture under section 270A.03, subdivision 7, will also be used to offset any 
65.11 	deferral and interest under this program.
65.12 	(b) As part of the initial application process, the commissioner may require the 
65.13 	applicant to obtain at the applicant's own cost and submit:
65.14 	(1) if the property is registered property under chapter 508 or 508A, a copy of the 
65.15 	original certificate of title in the possession of the county registrar of titles (sometimes 
65.16 	referred to as "condition of register"); or
65.17 	(2) if the property is abstract property, a report prepared by a licensed abstracter 
65.18 	showing the last deed and any unsatisfied mortgages, liens, judgments, and state and 
65.19 	federal tax lien notices which were recorded on or after the date of that last deed with 
65.20 	respect to the property or to the applicant.
65.21 	The certificate or report under clauses (1) and (2) need not include references to 
65.22 	any documents filed or recorded more than 40 years prior to the date of the certification 
65.23 	or report. The certification or report must be as of a date not more than 30 days prior 
65.24 	to submission of the application.
65.25 	The commissioner may also require the county recorder or county registrar of the 
65.26 	county where the property is located to provide copies of recorded documents related to 
65.27 	the applicant or the property, for which the recorder or registrar shall not charge a fee. The 
65.28 	commissioner may use any information available to determine or verify eligibility under 
65.29 	this section. The household income from the application is private data on individuals as 
65.30 	defined in section 13.02, subdivision 12.

65.31 	EFFECTIVE DATE. This section is effective for applications for deferral of taxes 
65.32 	payable in 2016 and thereafter.

65.33 	Sec. 26. Minnesota Statutes 2014, section 469.194, subdivision 1, is amended to read:
65.34 		Subdivision 1.Authority; aggregate limit. (a) The governing body of a 
65.35 	municipality the city of Worthington may, by resolution, issue obligations under chapter 
66.1 	475 to acquire land or interests in land for, and to design, engineer, and construct pipeline 
66.2 	and other facilities and infrastructure necessary to complete the Lewis and Clark Regional 
66.3 	Water System Project.
66.4 	(b) The maximum amount of bonds that may be issued under this section is limited to 
66.5 	an aggregate a principal amount of $45,000,000 $50,000,000, plus any costs of issuance and 
66.6 	amounts to be deposited into a debt service or reserve account. The Lewis and Clark Joint 
66.7 	Powers Board shall allocate the limit among the municipalities designated in subdivision 2.

66.8 	EFFECTIVE DATE. This section is effective the day following final enactment 
66.9 	without local approval under the provisions of Minnesota Statutes, section 645.023.

66.10 	Sec. 27. Minnesota Statutes 2014, section 473H.09, is amended to read:
66.11 	473H.09 EARLY TERMINATION.
66.12 		Subdivision 1.Public emergency. Termination of an agricultural preserve earlier 
66.13 	than a date derived through application of section 473H.08 may be permitted only in the 
66.14 	event of a public emergency upon petition from the owner or authority to the governor. 
66.15 	The determination of a public emergency shall be by the governor through executive order 
66.16 	pursuant to sections 4.035 and 12.01 to 12.46. The executive order shall identify the 
66.17 	preserve, the reasons requiring the action and the date of termination.
66.18 		Subd. 2.Death of owner. (a) Within 180 days of the death of an owner, an owner's 
66.19 	spouse, or other qualifying person, the surviving owner may elect to terminate the 
66.20 	agricultural preserve and the covenant allowing the land to be enrolled as an agricultural 
66.21 	preserve by notifying the authority on a form provided by the commissioner of agriculture. 
66.22 	Termination of a covenant under this subdivision must be executed and acknowledged in 
66.23 	the manner required by law to execute and acknowledge a deed.
66.24 	(b) For purposes of this subdivision, the following definitions apply:
66.25 	(1) "qualifying person" includes a partner, shareholder, trustee for a trust that the 
66.26 	decedent was the settlor or a beneficiary of, or member of an entity permitted to own 
66.27 	agricultural land and engage in farming under section 500.24 that owned the agricultural 
66.28 	preserve; and 
66.29 	(2) "surviving owner" includes the executor of the estate of the decedent, trustee for a 
66.30 	trust that the decedent was the settlor or a beneficiary of, or an entity permitted to own farm 
66.31 	land under section 500.24 of which the decedent was a partner, shareholder, or member.
66.32 	(c) When an agricultural preserve is terminated under this subdivision, the property 
66.33 	is subject to additional taxes in an amount equal to 50 percent of the taxes actually 
66.34 	levied against the property for the current taxes payable year. The additional taxes are 
67.1 	extended against the property on the tax list for taxes payable in the current year. The 
67.2 	additional taxes must be distributed among the jurisdictions levying taxes on the property 
67.3 	in proportion to the current year's taxes.

67.4 	EFFECTIVE DATE. This section is effective July 1, 2015.

67.5 	Sec. 28. Laws 1996, chapter 471, article 3, section 51, is amended to read:
67.6 	Sec. 51. RECREATION LEVY FOR SAWYER BY CARLTON COUNTY.
 67.7 		Subdivision 1.Levy authorized. Notwithstanding other law to the contrary, the 
67.8 	Carlton county board of commissioners may levy in and for the unorganized township of 
67.9 	Sawyer an amount up to $1,500$2,000 annually for recreational purposes, beginning with 
67.10 	taxes payable in 1997 and ending with taxes payable in 2006.
67.11 		Subd. 2.Effective date. This section is effective June 1, 1996, without local 
67.12 	approval applies to taxes payable in 2015 and thereafter, and is effective the day after the 
67.13 	Carlton County Board of Commissioners and its chief clerical officer timely complete 
67.14 	their compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

67.15 	Sec. 29. BOARD OF APPEALS AND EQUALIZATION IN-PERSON 
67.16 	TRAINING.
 67.17 	Notwithstanding any other law to the contrary, the commissioner of revenue, in 
67.18 	consultation with the Minnesota Association of Townships, shall offer not less than 12 
67.19 	in-person board of appeals and equalization course trainings in 2015 and in 2016.

67.20 	EFFECTIVE DATE. This section is effective June 1, 2015.

67.21 	Sec. 30. OPTIONAL CANCELLATION OF TAX FORFEITURE FOR CERTAIN 
67.22 	BUILDINGS; ST. LOUIS COUNTY.
 67.23 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms 
67.24 	have the meanings given.
67.25 	(b) "Building PIN" means a parcel identification number that is assigned to a 
67.26 	building and does not include the land upon which the building is located; and
67.27 	(c) "Land PIN" means a parcel identification number that is assigned to land upon 
67.28 	which a building associated with a building PIN is located.
67.29 		Subd. 2.Optional cancellation of tax forfeiture for buildings with building PINs.
 67.30 	Notwithstanding any law to the contrary, if any building associated with a building PIN 
67.31 	and located in St. Louis County forfeits or has forfeited to the state of Minnesota before, 
67.32 	on, or after the date of enactment of this section because of nonpayment of delinquent 
68.1 	property taxes, special assessments, penalties, interest, or costs, the county auditor of St. 
68.2 	Louis County may, with approval from the county board and the commissioner of revenue:
68.3 	(1) cancel the certificate of forfeiture and set aside the forfeiture without reinstating 
68.4 	the unpaid property taxes, special assessments, penalties, interest, or costs; and
68.5 	(2) combine the building PIN with its associated land PIN. When this occurs, the 
68.6 	land PIN is the only surviving parcel identification number, and includes both the building 
68.7 	and the land upon which the building is located.
68.8 		Subd. 3.Cancellation of tax forfeiture; taxation through date of cancellation.
 68.9 	Notwithstanding any law to the contrary, if the county auditor of St. Louis County cancels 
68.10 	a certificate of forfeiture and sets aside a forfeiture in accordance with subdivision 2, 
68.11 	the affected building is not subject to taxation from the date of forfeiture through the 
68.12 	date of cancellation.
68.13 		Subd. 4.Appropriation. $1,000,000 in fiscal year 2016 only is appropriated from 
68.14 	the general fund to the commissioner of revenue for a grant to St. Louis County that shall 
68.15 	be paid on July 1, 2015. The county may only use the grant to remove any building, 
68.16 	upon the request of the landowner, after the county has complied with the provisions of 
68.17 	subdivision 2.

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

68.19 	Sec. 31. STUDY AND REPORT OF PRODUCTION BASED VALUATION OF 
68.20 	AGRICULTURAL LAND.
 68.21 	(a) The commissioner of agriculture and the commissioner of revenue shall conduct 
68.22 	a study and prepare a report on the possibility of valuing agricultural land in the state for 
68.23 	property tax purposes based on the value of agricultural commodities produced minus the 
68.24 	cost of agricultural production.
68.25 	(b) The study must, to the extent practicable under the appropriation and the time 
68.26 	available:
68.27 	(1) assess the availability and accuracy of data sources necessary to determine the 
68.28 	productivity of agricultural land, the prices of agricultural commodities, and the costs of 
68.29 	production, for all agricultural land across the state;
68.30 	(2) analyze the potential impacts on other types of properties and on local 
68.31 	governments if the state were to adopt a system valuing agricultural land based on 
68.32 	production value, including the impacts of any changes in state aids;
68.33 	(3) identify types of agricultural properties that are not directly used in agricultural 
68.34 	production, and propose approaches for valuing those properties within a production 
68.35 	value based system;
69.1 	(4) assign values to agricultural land based on the best currently available data, and 
69.2 	compare the resulting values to valuations currently used for property tax purposes; to the 
69.3 	extent possible, analyze what that relationship would be in years other than the study year;
69.4 	(5) analyze the potential volatility of land values under a production value based 
69.5 	system and propose approaches for reducing the effects of agricultural land value volatility 
69.6 	on other types of properties;
69.7 	(6) analyze the potential tax shifts between different types of agricultural properties 
69.8 	under a production value based system;
69.9 	(7) analyze and make recommendations for how a production value based system 
69.10 	would be administered in terms of the role of the Department of Revenue, county and 
69.11 	local assessors, and other agencies; 
69.12 	(8) analyze how appeals of assessments by property owners would be handled 
69.13 	under a production value based system;
69.14 	(9) analyze how a production value based system would affect the green acres and 
69.15 	metropolitan agricultural preserves programs;
69.16 	(10) identify other states that have adopted production based valuation systems and 
69.17 	describe how they have been implemented, with special emphasis upon neighboring 
69.18 	states; and
69.19 	(11) identify possible alternative methods of valuing agricultural land in addition to 
69.20 	market value and production based agricultural land valuation. 
69.21 	(c) The commissioners must seek input from the dean of the University of 
69.22 	Minnesota College of Food, Agricultural, and Natural Resource Sciences in the design 
69.23 	and implementation of the study.
69.24 	(d) The commissioners must request the involvement and participation of 
69.25 	stakeholders including groups representing assessors and groups representing agricultural 
69.26 	property owners.
69.27 	(e) The commissioners shall report the findings of the study to the committees of the 
69.28 	house of representatives and senate having jurisdiction over taxes by February 1, 2017, 
69.29 	and file the report as required by Minnesota Statutes, section 3.195.
69.30 	(f) $200,000 in fiscal year 2016 is appropriated from the general fund to the 
69.31 	commissioner of revenue for purposes of preparing the report under this section. This is a 
69.32 	onetime appropriation and is not added to the base.

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

69.34 	Sec. 32. TOWN OF TOFTE; MUNICIPAL HOUSING.
 70.1 	(a) Notwithstanding the provisions of Laws 1988, chapter 516, and Laws 1988, 
70.2 	chapter 719, article 19, section 27, the town of Tofte may own and operate within its 
70.3 	boundary up to 12 units of housing for individuals over 55 years of age or families with 
70.4 	one member of the household that is over 55 year of age.
70.5 	(b) The town of Tofte shall have the powers of a city under Minnesota Statutes, 
70.6 	chapter 462C, and the powers of an authority under Minnesota Statutes, sections 469.001 
70.7 	to 469.047, with respect to this section. Upon the approval of the town board, the town of 
70.8 	Tofte may levy the tax described in Minnesota Statutes, section 469.033, subdivision 6.
70.9 	(c) Nothing in this section shall limit the power of the Cook County/Grand Marais 
70.10 	Joint Economic Development Authority to exercise jurisdiction within the town of Tofte. 
70.11 	The authority to undertake new projects under this section shall expire on June 30, 2016.

70.12 	EFFECTIVE DATE. This section is effective the day after compliance by 
70.13 	the governing body of the town of Tofte with Minnesota Statutes, section 645.021, 
70.14 	subdivisions 2 and 3.

70.15 	Sec. 33. APPROPRIATION.
 70.16 	$1,130,000 in fiscal year 2016 only is appropriated from the general fund to the 
70.17 	commissioner of revenue for a grant to Hennepin County. Of this amount, $880,000 must 
70.18 	be used for the North Branch Library EMERGE Career and Technology Center, and 
70.19 	$250,000 must be used for the Cedar Riverside Opportunity Center.

70.20 	Sec. 34.  REPEALER.
 70.21 	(a) Minnesota Statutes 2014, section 272.02, subdivision 23, is repealed.
70.22 	(b) Minnesota Statutes 2014, section 275.025, subdivision 4, is repealed.
70.23 	(c) Minnesota Statutes 2014, section 469.194, subdivisions 2 and 4, are repealed.

70.24 	EFFECTIVE DATE. Paragraph (a) is effective for taxes payable in 2015. 
70.25 	Paragraph (b) is effective for taxes payable in 2016 and thereafter. Paragraph (c) is 
70.26 	effective the day following final enactment.

70.27 	ARTICLE 3
70.28 	LOCAL DEVELOPMENT

70.29 	Section 1. Minnesota Statutes 2014, section 469.1763, subdivision 1, is amended to read:
70.30 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms 
70.31 	have the meanings given.
71.1 	(b) "Activities" means acquisition of property, clearing of land, site preparation, soils 
71.2 	correction, removal of hazardous waste or pollution, installation of utilities, construction 
71.3 	of public or private improvements, and other similar activities, but only to the extent that 
71.4 	tax increment revenues may be spent for such purposes under other law.
71.5 	(c) "Third party" means an entity other than (1) the person receiving the benefit 
71.6 	of assistance financed with tax increments, or (2) the municipality or the development 
71.7 	authority or other person substantially under the control of the municipality.
71.8 	(d) "Revenues derived from tax increments paid by properties in the district" means 
71.9 	only tax increment as defined in section 469.174, subdivision 25, clause (1), and does 
71.10 	not include tax increment as defined in section 469.174, subdivision 25, clauses (2), 
71.11 	(3), and (4) to (5).

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

71.13 	Sec. 2. Minnesota Statutes 2014, section 469.1763, subdivision 2, is amended to read:
71.14 		Subd. 2.Expenditures outside district. (a) For each tax increment financing 
71.15 	district, an amount equal to at least 75 percent of the total revenue derived from tax 
71.16 	increments paid by properties in the district must be expended on activities in the district 
71.17 	or to pay bonds, to the extent that the proceeds of the bonds were used to finance activities 
71.18 	in the district or to pay, or secure payment of, debt service on credit enhanced bonds. 
71.19 	For districts, other than redevelopment districts for which the request for certification 
71.20 	was made after June 30, 1995, the in-district percentage for purposes of the preceding 
71.21 	sentence is 80 percent. Not more than 25 percent of the total revenue derived from tax 
71.22 	increments paid by properties in the district may be expended, through a development fund 
71.23 	or otherwise, on activities outside of the district but within the defined geographic area of 
71.24 	the project except to pay, or secure payment of, debt service on credit enhanced bonds. 
71.25 	For districts, other than redevelopment districts for which the request for certification was 
71.26 	made after June 30, 1995, the pooling percentage for purposes of the preceding sentence is 
71.27 	20 percent. The revenue revenues derived from tax increments for paid by properties in 
71.28 	the district that are expended on costs under section 469.176, subdivision 4h, paragraph 
71.29 	(b), may be deducted first before calculating the percentages that must be expended within 
71.30 	and without the district.
71.31 	(b) In the case of a housing district, a housing project, as defined in section 469.174, 
71.32 	subdivision 11, is an activity in the district.
71.33 	(c) All administrative expenses are for activities outside of the district, except that 
71.34 	if the only expenses for activities outside of the district under this subdivision are for 
72.1 	the purposes described in paragraph (d), administrative expenses will be considered as 
72.2 	expenditures for activities in the district.
72.3 	(d) The authority may elect, in the tax increment financing plan for the district, 
72.4 	to increase by up to ten percentage points the permitted amount of expenditures for 
72.5 	activities located outside the geographic area of the district under paragraph (a). As 
72.6 	permitted by section 469.176, subdivision 4k, the expenditures, including the permitted 
72.7 	expenditures under paragraph (a), need not be made within the geographic area of the 
72.8 	project. Expenditures that meet the requirements of this paragraph are legally permitted 
72.9 	expenditures of the district, notwithstanding section 469.176, subdivisions 4b, 4c, and 4j. 
72.10 	To qualify for the increase under this paragraph, the expenditures must:
72.11 	(1) be used exclusively to assist housing that meets the requirement for a qualified 
72.12 	low-income building, as that term is used in section 42 of the Internal Revenue Code; and
72.13 	(2) not exceed the qualified basis of the housing, as defined under section 42(c) of 
72.14 	the Internal Revenue Code, less the amount of any credit allowed under section 42 of 
72.15 	the Internal Revenue Code; and
72.16 	(3) be used to:
72.17 	(i) acquire and prepare the site of the housing;
72.18 	(ii) acquire, construct, or rehabilitate the housing; or
72.19 	(iii) make public improvements directly related to the housing; or
72.20 	(4) be used to develop housing:
72.21 	(i) if the market value of the housing does not exceed the lesser of:
72.22 	(A) 150 percent of the average market value of single-family homes in that 
72.23 	municipality; or
72.24 	(B) $200,000 for municipalities located in the metropolitan area, as defined in 
72.25 	section 473.121, or $125,000 for all other municipalities; and
72.26 	(ii) if the expenditures are used to pay the cost of site acquisition, relocation, 
72.27 	demolition of existing structures, site preparation, and pollution abatement on one or 
72.28 	more parcels, if the parcel contains a residence containing one to four family dwelling 
72.29 	units that has been vacant for six or more months and is in foreclosure as defined in 
72.30 	section 325N.10, subdivision 7, but without regard to whether the residence is the owner's 
72.31 	principal residence, and only after the redemption period has expired.
72.32 	(e) For a district created within a biotechnology and health sciences industry zone 
72.33 	as defined in Minnesota Statutes 2012, section 469.330, subdivision 6, or for an existing 
72.34 	district located within such a zone, tax increment derived from such a district may be 
72.35 	expended outside of the district but within the zone only for expenditures required for the 
72.36 	construction of public infrastructure necessary to support the activities of the zone, land 
73.1 	acquisition, and other redevelopment costs as defined in section 469.176, subdivision 4j. 
73.2 	These expenditures are considered as expenditures for activities within the district. The 
73.3 	authority provided by this paragraph expires for expenditures made after the later of (1) 
73.4 	December 31, 2015, or (2) the end of the five-year period beginning on the date the district 
73.5 	was certified, provided that date was before January 1, 2016.
73.6 	(f) The authority under paragraph (d), clause (4), expires on December 31, 2016. 
73.7 	Increments may continue to be expended under this authority after that date, if they are 
73.8 	used to pay bonds or binding contracts that would qualify under subdivision 3, paragraph 
73.9 	(a), if December 31, 2016, is considered to be the last date of the five-year period after 
73.10 	certification under that provision.

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

73.12 	Sec. 3. Minnesota Statutes 2014, section 469.1763, subdivision 3, is amended to read:
73.13 		Subd. 3.Five-year rule. (a) Revenues derived from tax increments paid by 
73.14 	properties in the district are considered to have been expended on an activity within the 
73.15 	district under subdivision 2 only if one of the following occurs:
73.16 	(1) before or within five years after certification of the district, the revenues are 
73.17 	actually paid to a third party with respect to the activity;
73.18 	(2) bonds, the proceeds of which must be used to finance the activity, are issued and 
73.19 	sold to a third party before or within five years after certification, the revenues are spent 
73.20 	to repay the bonds, and the proceeds of the bonds either are, on the date of issuance, 
73.21 	reasonably expected to be spent before the end of the later of (i) the five-year period, or 
73.22 	(ii) a reasonable temporary period within the meaning of the use of that term under section 
73.23 	148(c)(1) of the Internal Revenue Code, or are deposited in a reasonably required reserve 
73.24 	or replacement fund;
73.25 	(3) binding contracts with a third party are entered into for performance of the 
73.26 	activity before or within five years after certification of the district and the revenues are 
73.27 	spent under the contractual obligation;
73.28 	(4) costs with respect to the activity are paid before or within five years after 
73.29 	certification of the district and the revenues are spent to reimburse a party for payment 
73.30 	of the costs, including interest on unreimbursed costs; or
73.31 	(5) expenditures are made for housing purposes as permitted by subdivision 2, 
73.32 	paragraphs (b) and (d), or for public infrastructure purposes within a zone as permitted 
73.33 	by subdivision 2, paragraph (e).
73.34 	(b) For purposes of this subdivision, bonds include subsequent refunding bonds if 
73.35 	the original refunded bonds meet the requirements of paragraph (a), clause (2).
74.1 	(c) For a redevelopment district or a renewal and renovation district certified after 
74.2 	June 30, 2003, and before April 20, 2009, the five-year periods described in paragraph (a) 
74.3 	are extended to ten years after certification of the district. For a redevelopment district 
74.4 	certified after April 20, 2009, and before June 30, 2012, the five-year periods described in 
74.5 	paragraph (a) are extended to eight years after certification of the district. This extension is 
74.6 	provided primarily to accommodate delays in development activities due to unanticipated 
74.7 	economic circumstances.

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

74.9 	Sec. 4. Minnesota Statutes 2014, section 469.178, subdivision 7, is amended to read:
74.10 		Subd. 7.Interfund loans. (a) The authority or municipality may advance or loan 
74.11 	money to finance expenditures under section 469.176, subdivision 4, from its general fund 
74.12 	or any other fund under which it has legal authority to do so.
74.13 	(b) Not later than 60 days after money is transferred, advanced, or spent, whichever 
74.14 	is earliest, the loan or advance must be authorized, by resolution of the governing body or 
74.15 	of the authority, whichever has jurisdiction over the fund from which the advance or loan 
74.16 	is authorized, before money is transferred, advanced, or spent, whichever is earliest.
74.17 	(c) The resolution may generally grant to the municipality or the authority the power 
74.18 	to make interfund loans under one or more tax increment financing plans or for one or 
74.19 	more districts. The resolution may be adopted before or after the adoption of the tax 
74.20 	increment financing plan or the creation of the tax increment financing district from which 
74.21 	the advance or loan is to be repaid.
74.22 	(d)  The terms and conditions for repayment of the loan must be provided in 
74.23 	writing and. The written terms and conditions may be in any form, but must include, at 
74.24 	a minimum, the principal amount, the interest rate, and maximum term. Written terms 
74.25 	may be modified or amended in writing by the municipality or the authority before the 
74.26 	latest decertification of the tax increment financing district from which the interfund loan 
74.27 	will be paid. The maximum rate of interest permitted to be charged is limited to the 
74.28 	greater of the rates specified under section 270C.40 or 549.09 as of the date the loan or 
74.29 	advance is authorized, unless the written agreement states that the maximum interest rate 
74.30 	will fluctuate as the interest rates specified under section 270C.40 or 549.09 are from time 
74.31 	to time adjusted. Loans or advances may be structured as draw-down or line-of-credit 
74.32 	obligations of the lending fund.
74.33 	(e) The authority shall report in the annual report submitted pursuant to section 
74.34 	469.175, subdivision 6:
74.35 	(1) the amount of any interfund loan or advance made in a calendar year; and
75.1 	(2) any amendment of an interfund loan or advance made in a calendar year.

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

75.4 	Sec. 5. CITY OF COON RAPIDS; TAX INCREMENT FINANCING.
 75.5 	Notwithstanding the provisions of Minnesota Statutes, section 469.176, subdivision 
75.6 	1b, or any other law to the contrary, the city of Coon Rapids may collect tax increment 
75.7 	from District 6-1 Port Riverwalk through December 31, 2038.

75.8 	EFFECTIVE DATE. This section is effective upon compliance by the governing 
75.9 	bodies of the city of Coon Rapids, Anoka County, and Independent School District No. 
75.10 	11 with the requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 
75.11 	645.021, subdivision 3.

75.12 	Sec. 6. CITY OF COTTAGE GROVE; TAX INCREMENT FINANCING.
 75.13 	The requirement of Minnesota Statutes, section 469.1763, subdivision 3, that 
75.14 	activities must be undertaken within a five-year period from the date of certification of a 
75.15 	tax increment financing district, are considered to be met for Tax Increment Financing 
75.16 	District No. 1-12 (Gateway North), administered by the Cottage Grove Economic 
75.17 	Development Authority, if the activities are undertaken prior to January 1, 2017.

75.18 	EFFECTIVE DATE. This section is effective upon compliance by the chief clerical 
75.19 	officer of the governing body of the city of Cottage Grove with the requirements of 
75.20 	Minnesota Statutes, section 645.021, subdivisions 2 and 3.

75.21 	Sec. 7. CITY OF RICHFIELD; EXTENSION OF DISTRICT.
 75.22 	Notwithstanding Minnesota Statutes, section 469.176, subdivision 1b, or any other 
75.23 	law to the contrary, the city of Richfield and the Housing and Redevelopment Authority in 
75.24 	and for the city of Richfield may elect to extend the duration limit of the redevelopment 
75.25 	tax increment financing district known as the Cedar Avenue Tax Increment Financing 
75.26 	District established by Laws 2005, chapter 152, article 2, section 25, by ten years.

75.27 	EFFECTIVE DATE. This section is effective upon compliance by the city 
75.28 	of Richfield, Hennepin County, and Independent School District No. 280 with the 
75.29 	requirements of Minnesota Statutes, sections 469.1782, subdivision 2, and 645.021, 
75.30 	subdivisions 2 and 3.

76.1 	Sec. 8. CITY OF ST. PAUL; TIF AUTHORITY.
 76.2 		Subdivision 1.Establishment. Under the special rules in subdivision 2, the 
76.3 	housing and redevelopment authority of the city of St. Paul may establish one or 
76.4 	more redevelopment tax increment financing districts located wholly within the area 
76.5 	of the former Ford Motor Company plant properties, consisting of two tax parcels, 
76.6 	17-28-23-31-0001 and 17-28-23-13-0002, and adjacent roads and rights-of-way.
76.7 		Subd. 2.Special rules. (a) If the authority establishes any tax increment district 
76.8 	under this section, the following special rules apply:
76.9 	(1) the districts are deemed to meet all the requirements of Minnesota Statutes, 
76.10 	section 469.174, subdivision 10; 
76.11 	(2) any expenditure for, or payment of bonds issued to finance, activities within the 
76.12 	area described in subdivision 1 is not subject to the restrictions under Minnesota Statutes, 
76.13 	section 469.1763, for any district established under this section, except that expenditures 
76.14 	for activities outside the area defined in subdivision 1 are subject to the percentage limits 
76.15 	under Minnesota Statutes, section 469.1763, subdivision 2, paragraph (a); and
76.16 	(3) Minnesota Statutes, section 469.176, subdivision 4j, does not apply.
76.17 	(b) Except as otherwise provided in paragraph (a), the provisions of Minnesota 
76.18 	Statutes, sections 469.174 to 469.1794, apply to districts established under this section.
76.19 		Subd. 3.Expiration. The authority to request certification of districts under this 
76.20 	section expires June 30, 2020, unless the city has requested certification of at least one 
76.21 	district by that date. The authority to request certification of any district under this section 
76.22 	expires June 30, 2030.

76.23 	EFFECTIVE DATE. This section is effective upon approval by the governing 
76.24 	body of the city of St. Paul and compliance with the requirements of Minnesota Statutes, 
76.25 	section 645.021.

76.26 	ARTICLE 4
76.27 	SALES AND USE TAXES

76.28 	Section 1. Minnesota Statutes 2014, section 289A.20, subdivision 4, is amended to read:
76.29 		Subd. 4.Sales and use tax. (a) The taxes imposed by chapter 297A are due and 
76.30 	payable to the commissioner monthly on or before the 20th day of the month following the 
76.31 	month in which the taxable event occurred, or following another reporting period as the 
76.32 	commissioner prescribes or as allowed under section 289A.18, subdivision 4, paragraph 
76.33 	(f) or (g), except that use taxes due on an annual use tax return as provided under section 
76.34 	289A.11, subdivision 1, are payable by April 15 following the close of the calendar year.
77.1 	(b) A vendor having a liability of $250,000 or more during a fiscal year ending June 
77.2 	30 must remit the June liability for the next year in the following manner:
77.3 	(1) Two business days before June 30 of the year, the vendor must remit 81.4 80 
77.4 	percent of the estimated June liability to the commissioner.
77.5 	(2) On or before August 20 of the year, the vendor must pay any additional amount 
77.6 	of tax not remitted in June.
77.7 	(c) A vendor having a liability of:
77.8 	(1) $10,000 or more, but less than $250,000 during a fiscal year ending June 30, 
77.9 	2013, and fiscal years thereafter, must remit by electronic means all liabilities on returns 
77.10 	due for periods beginning in all subsequent calendar years on or before the 20th day of 
77.11 	the month following the month in which the taxable event occurred, or on or before the 
77.12 	20th day of the month following the month in which the sale is reported under section 
77.13 	289A.18, subdivision 4; or
77.14 	(2) $250,000 or more, during a fiscal year ending June 30, 2013, and fiscal years 
77.15 	thereafter, must remit by electronic means all liabilities in the manner provided in 
77.16 	paragraph (a) on returns due for periods beginning in the subsequent calendar year, except 
77.17 	for 81.4 80 percent of the estimated June liability, which is due two business days before 
77.18 	June 30. The remaining amount of the June liability is due on August 20.
77.19 	(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's 
77.20 	religious beliefs from paying electronically shall be allowed to remit the payment by mail. 
77.21 	The filer must notify the commissioner of revenue of the intent to pay by mail before 
77.22 	doing so on a form prescribed by the commissioner. No extra fee may be charged to a 
77.23 	person making payment by mail under this paragraph. The payment must be postmarked 
77.24 	at least two business days before the due date for making the payment in order to be 
77.25 	considered paid on a timely basis.

77.26 	EFFECTIVE DATE. This section is effective for taxes due and payable after 
77.27 	July 1, 2015.

77.28 	Sec. 2. Minnesota Statutes 2014, section 289A.60, subdivision 15, is amended to read:
77.29 		Subd. 15.Accelerated payment of June sales tax liability; penalty for 
77.30 	underpayment. For payments made after December 31, 2013, if a vendor is required by 
77.31 	law to submit an estimation of June sales tax liabilities and 81.4 80 percent payment by a 
77.32 	certain date, the vendor shall pay a penalty equal to ten percent of the amount of actual 
77.33 	June liability required to be paid in June less the amount remitted in June. The penalty 
77.34 	must not be imposed, however, if the amount remitted in June equals the lesser of 81.4 
78.1 	80 percent of the preceding May's liability or 81.4 80 percent of the average monthly 
78.2 	liability for the previous calendar year.

78.3 	EFFECTIVE DATE. This section is effective for taxes due and payable after 
78.4 	July 1, 2015.

78.5 	Sec. 3. Minnesota Statutes 2014, section 297A.62, subdivision 3, is amended to read:
78.6 		Subd. 3.Manufactured housing and park trailers; modular housing. (a) For 
78.7 	retail sales of manufactured homes as defined in section 327.31, subdivision 6, for 
78.8 	residential uses, the sales tax under subdivisions 1 and 1a is imposed on 65 percent of the 
78.9 	dealer's cost of the manufactured home. For retail sales of new or used park trailers, as 
78.10 	defined in section 168.002, subdivision 23, the sales tax under subdivisions 1 and 1a is 
78.11 	imposed on 65 percent of the sales price of the park trailer.
78.12 	(b) For retail sales of a modular home, as defined in section 297A.668, subdivision 
78.13 	8, paragraph (b), for residential use, the sales tax under subdivisions 1 and 1a is imposed 
78.14 	on 65 percent of the dealer's cost of the modular home.

78.15 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
78.16 	June 30, 2015.

78.17 	Sec. 4. Minnesota Statutes 2014, section 297A.67, subdivision 7a, is amended to read:
78.18 		Subd. 7a.Accessories and supplies. Accessories and supplies required for the 
78.19 	effective use of durable medical equipment for home use only or purchased in a transaction 
78.20 	covered by Medicare or, Medicaid, or other health insurance plan, that are not already 
78.21 	exempt under subdivision 7, are exempt. Accessories and supplies for the effective use 
78.22 	of a prosthetic device, that are not already exempt under subdivision 7, are exempt. 
78.23 	For purposes of this subdivision "durable medical equipment," "prosthetic device," 
78.24 	"Medicare," and "Medicaid" have the definitions given in subdivision 7., and "other health 
78.25 	insurance plan" means a health plan defined in section 62A.011, subdivision 3, or 62V.02, 
78.26 	subdivision 4, or a qualified health plan defined in section 62A.011, subdivision 7.

78.27 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
78.28 	made after April 1, 2009. Any vendor who paid sales or use tax on accessories and 
78.29 	supplies purchased in a transaction covered by a health insurance plan defined in 
78.30 	Minnesota Statutes, section 62A.011, subdivision 3, or 62V.02, subdivision 4, or a 
78.31 	qualified health plan defined in Minnesota Statutes, section 62A.011, subdivision 7, that 
78.32 	are not already exempt under Minnesota Statutes, section 297A.67, subdivision 7, and 
78.33 	that were sold after April 1, 2009, and before July 1, 2015, may apply for a refund of the 
79.1 	sales or use tax paid in the manner provided in Minnesota Statutes, section 289A.50, 
79.2 	subdivision 1, but only if the vendor did not collect and remit sales tax on the accessories 
79.3 	and supplies for which a refund is claimed. Interest on the refund shall be paid at the rate 
79.4 	in Minnesota Statutes, section 270C.405, from 90 days after the refund claim is filed with 
79.5 	the commissioner of revenue. The amount to make the refunds is annually appropriated 
79.6 	to the commissioner of revenue from the general fund. Refunds must not be filed until 
79.7 	after June 30, 2015. Notwithstanding limitations on claims for refunds under Minnesota 
79.8 	Statutes, section 289A.40, claims may be filed with the commissioner until June 30, 2016.

79.9 	Sec. 5. Minnesota Statutes 2014, section 297A.67, is amended by adding a subdivision 
79.10 	to read:
79.11 		Subd. 34.Precious metal bullion. (a) Sales of precious metal bullion by registered 
79.12 	dealers under section 80G.02 that are required to be reported under Internal Revenue 
79.13 	Service revenue procedure 92-103 are exempt. For purposes of this subdivision, "precious 
79.14 	metal bullion" means bullion that would qualify for the exception for certain coins and 
79.15 	bullion under section 408(m)(3) of the Internal Revenue Code of 1986 as amended 
79.16 	through December 31, 2014. "Precious metal bullion" does not include jewelry, certified 
79.17 	or graded coins, numismatic coins, or works of art.
79.18 	(b) The intent of this subdivision is to afford the sale of precious metal bullion 
79.19 	similar treatment as afforded the sale of stock, bullion exchange traded funds, bonds, 
79.20 	and other investment instruments.

79.21 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
79.22 	June 30, 2015.

79.23 	Sec. 6. Minnesota Statutes 2014, section 297A.67, is amended by adding a subdivision 
79.24 	to read:
79.25 		Subd. 35.Car seats. The sale of an infant or child car seat, including a booster seat, 
79.26 	that meets the requirements of a child passenger restraint system under motor vehicle 
79.27 	safety standards established by the United States Department of Transportation is exempt.

79.28 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
79.29 	June 30, 2015.

79.30 	Sec. 7. Minnesota Statutes 2014, section 297A.68, subdivision 5, is amended to read:
80.1 		Subd. 5.Capital equipment. (a) Capital equipment is exempt. The tax must be 
80.2 	imposed and collected as if the rate under section 297A.62, subdivision 1, applied, and 
80.3 	then refunded in the manner provided in section 297A.75.
80.4 	"Capital equipment" means machinery and equipment purchased or leased, and used 
80.5 	in this state by the purchaser or lessee primarily for manufacturing, fabricating, mining, 
80.6 	or refining tangible personal property to be sold ultimately at retail if the machinery and 
80.7 	equipment are essential to the integrated production process of manufacturing, fabricating, 
80.8 	mining, or refining. Capital equipment also includes machinery and equipment 
80.9 	used primarily to electronically transmit results retrieved by a customer of an online 
80.10 	computerized data retrieval system.
80.11 	(b) Capital equipment includes, but is not limited to:
80.12 	(1) machinery and equipment used to operate, control, or regulate the production 
80.13 	equipment;
80.14 	(2) machinery and equipment used for research and development, design, quality 
80.15 	control, and testing activities;
80.16 	(3) environmental control devices that are used to maintain conditions such as 
80.17 	temperature, humidity, light, or air pressure when those conditions are essential to and are 
80.18 	part of the production process;
80.19 	(4) materials and supplies used to construct and install machinery or equipment;
80.20 	(5) repair and replacement parts, including accessories, whether purchased as spare 
80.21 	parts, repair parts, or as upgrades or modifications to machinery or equipment;
80.22 	(6) materials used for foundations that support machinery or equipment;
80.23 	(7) materials used to construct and install special purpose buildings used in the 
80.24 	production process;
80.25 	(8) ready-mixed concrete equipment in which the ready-mixed concrete is mixed 
80.26 	as part of the delivery process regardless if mounted on a chassis, repair parts for 
80.27 	ready-mixed concrete trucks, and leases of ready-mixed concrete trucks; and
80.28 	(9) machinery or equipment used for research, development, design, or production 
80.29 	of computer software.
80.30 	(c) Capital equipment does not include the following:
80.31 	(1) motor vehicles taxed under chapter 297B;
80.32 	(2) machinery or equipment used to receive or store raw materials;
80.33 	(3) building materials, except for materials included in paragraph (b), clauses (6) 
80.34 	and (7);
80.35 	(4) machinery or equipment used for nonproduction purposes, including, but not 
80.36 	limited to, the following: plant security, fire prevention, first aid, and hospital stations; 
81.1 	support operations or administration; pollution control; and plant cleaning, disposal of 
81.2 	scrap and waste, plant communications, space heating, cooling, lighting, or safety;
81.3 	(5) farm machinery and aquaculture production equipment as defined by section 
81.4 	297A.61, subdivisions 12 and 13;
81.5 	(6) machinery or equipment purchased and installed by a contractor as part of an 
81.6 	improvement to real property;
81.7 	(7) machinery and equipment used by restaurants in the furnishing, preparing, or 
81.8 	serving of prepared foods as defined in section 297A.61, subdivision 31;
81.9 	(8) machinery and equipment used to furnish the services listed in section 297A.61, 
81.10 	subdivision 3, paragraph (g), clause (6), items (i) to (vi) and (viii);
81.11 	(9) machinery or equipment used in the transportation, transmission, or distribution 
81.12 	of petroleum, liquefied gas, natural gas, water, or steam, in, by, or through pipes, lines, 
81.13 	tanks, mains, or other means of transporting those products. This clause does not apply to 
81.14 	machinery or equipment used to blend petroleum or biodiesel fuel as defined in section 
81.15 	239.77; or
81.16 	(10) any other item that is not essential to the integrated process of manufacturing, 
81.17 	fabricating, mining, or refining.
81.18 	(d) For purposes of this subdivision:
81.19 	(1) "Equipment" means independent devices or tools separate from machinery but 
81.20 	essential to an integrated production process, including computers and computer software, 
81.21 	used in operating, controlling, or regulating machinery and equipment; and any subunit or 
81.22 	assembly comprising a component of any machinery or accessory or attachment parts of 
81.23 	machinery, such as tools, dies, jigs, patterns, and molds.
81.24 	(2) "Fabricating" means to make, build, create, produce, or assemble components or 
81.25 	property to work in a new or different manner.
81.26 	(3) "Integrated production process" means a process or series of operations through 
81.27 	which tangible personal property is manufactured, fabricated, mined, or refined. For 
81.28 	purposes of this clause, (i) manufacturing begins with the removal of raw materials 
81.29 	from inventory and ends when the last process prior to loading for shipment has been 
81.30 	completed; (ii) fabricating begins with the removal from storage or inventory of the 
81.31 	property to be assembled, processed, altered, or modified and ends with the creation 
81.32 	or production of the new or changed product; (iii) mining begins with the removal of 
81.33 	overburden from the site of the ores, minerals, stone, peat deposit, or surface materials and 
81.34 	ends when the last process before stockpiling is completed; and (iv) refining begins with 
81.35 	the removal from inventory or storage of a natural resource and ends with the conversion 
81.36 	of the item to its completed form.
82.1 	(4) "Machinery" means mechanical, electronic, or electrical devices, including 
82.2 	computers and computer software, that are purchased or constructed to be used for the 
82.3 	activities set forth in paragraph (a), beginning with the removal of raw materials from 
82.4 	inventory through completion of the product, including packaging of the product.
82.5 	(5) "Machinery and equipment used for pollution control" means machinery and 
82.6 	equipment used solely to eliminate, prevent, or reduce pollution resulting from an activity 
82.7 	described in paragraph (a).
82.8 	(6) "Manufacturing" means an operation or series of operations where raw materials 
82.9 	are changed in form, composition, or condition by machinery and equipment and which 
82.10 	results in the production of a new article of tangible personal property. For purposes of 
82.11 	this subdivision, "manufacturing" includes the generation of electricity or steam to be 
82.12 	sold at retail.
82.13 	(7) "Mining" means the extraction of minerals, ores, stone, or peat.
82.14 	(8) "Online data retrieval system" means a system whose cumulation of information 
82.15 	is equally available and accessible to all its customers.
82.16 	(9) "Primarily" means machinery and equipment used 50 percent or more of the time 
82.17 	in an activity described in paragraph (a).
82.18 	(10) "Refining" means the process of converting a natural resource to an intermediate 
82.19 	or finished product, including the treatment of water to be sold at retail.
82.20 	(11) This subdivision does not apply to telecommunications equipment as provided 
82.21 	in subdivision 35a, and does not apply to wire, cable, fiber,or poles, or conduit for 
82.22 	telecommunications services.

82.23 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
82.24 	June 30, 2015.

82.25 	Sec. 8. Minnesota Statutes 2014, section 297A.68, subdivision 35a, is amended to read:
82.26 		Subd. 35a.Telecommunications or pay television services machinery and 
82.27 	equipment. (a) Telecommunications or pay television services machinery and equipment 
82.28 	purchased or leased for use directly by a telecommunications or pay television services 
82.29 	provider primarily in the provision of telecommunications or pay television services 
82.30 	that are ultimately to be sold at retail are exempt, regardless of whether purchased by 
82.31 	the owner, a contractor, or a subcontractor.
82.32 	(b) For purposes of this subdivision, "telecommunications or pay television 
82.33 	machinery and equipment" includes, but is not limited to:
82.34 	(1) machinery, equipment, and fixtures utilized in receiving, initiating, 
82.35 	amplifying, processing, transmitting, retransmitting, recording, switching, or monitoring 
83.1 	telecommunications or pay television services, such as computers, transformers, amplifiers, 
83.2 	routers, bridges, repeaters, multiplexers, and other items performing comparable functions;
83.3 	(2) machinery, equipment, and fixtures used in the transportation of 
83.4 	telecommunications or pay television services, such as radio transmitters and receivers, 
83.5 	satellite equipment, microwave equipment, and other transporting media, but not wire, 
83.6 	cable, including fiber, poles, or and conduit, but not including wire, cable, or poles;
83.7 	(3) ancillary machinery, equipment, and fixtures that regulate, control, protect, or 
83.8 	enable the machinery in clauses (1) and (2) to accomplish its intended function, such as 
83.9 	auxiliary power supply, test equipment, towers, heating, ventilating, and air conditioning 
83.10 	equipment necessary to the operation of the telecommunications or pay television 
83.11 	equipment; and software necessary to the operation of the telecommunications or pay 
83.12 	television equipment; and
83.13 	(4) repair and replacement parts, including accessories, whether purchased as spare 
83.14 	parts, repair parts, or as upgrades or modifications to qualified machinery or equipment.

83.15 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
83.16 	June 30, 2015.

83.17 	Sec. 9. Minnesota Statutes 2014, section 297A.70, subdivision 4, is amended to read:
83.18 		Subd. 4.Sales to nonprofit groups. (a) All sales, except those listed in paragraph 
83.19 	(b) (c), to the following "nonprofit organizations" are exempt if the item purchased is 
83.20 	used in the performance of their exempt function. The exemptions under this paragraph 
83.21 	do not apply to:
83.22 	(1) a corporation, society, association, foundation, or institution organized and 
83.23 	operated exclusively for charitable, religious, or educational purposes if the item 
83.24 	purchased is used in the performance of charitable, religious, or educational functions; 
83.25 	and veterans groups under subdivision 5;
83.26 	(2) any senior citizen group or association of groups that: hospitals, outpatient 
83.27 	surgical centers, and critical access dental providers under subdivision 7, paragraphs (a) 
83.28 	to (c), (e), and (f);
83.29 	(i) in general limits membership to persons who are either age 55 or older, or 
83.30 	physically disabled;
83.31 	(ii) is organized and operated exclusively for pleasure, recreation, and other 
83.32 	nonprofit purposes, not including housing, no part of the net earnings of which inures to 
83.33 	the benefit of any private shareholders; and
83.34 	(iii) is an exempt organization under section 501(c) of the Internal Revenue Code.
83.35 	(3) products and services under subdivision 7, paragraph (d); 
84.1 	(4) nursing homes and boarding care homes under subdivision 18; or
84.2 	(5) a nonprofit organization authorized under section 465.717.
84.3 	(b) For purposes of this subdivision, charitable purpose includes the maintenance of 
84.4 	a cemetery owned by a religious organization. "nonprofit organization" means:
84.5 	(1) an organization that has a current federal determination letter stating that the 
84.6 	nonprofit organization qualifies as an exempt organization under section 501(c)(3) of the 
84.7 	Internal Revenue Code and has obtained a Minnesota tax identification number from the 
84.8 	Department of Revenue under section 297A.83; or
84.9 	(2) any senior citizen group or association of groups that:
84.10 	(i) in general, limits membership to persons who are either age 55 or older or 
84.11 	physically disabled;
84.12 	(ii) is organized and operated exclusively for pleasure, recreation, and other 
84.13 	nonprofit purposes, not including housing, no part of the net earnings of which inures to 
84.14 	the benefit of any private shareholders; and
84.15 	(iii) is an exempt organization under section 501(c) of the Internal Revenue Code.
84.16 	(b) (c) This exemption does not apply to the following sales:
84.17 	(1) building, construction, or reconstruction materials purchased by a contractor 
84.18 	or a subcontractor as a part of a lump-sum contract or similar type of contract with a 
84.19 	guaranteed maximum price covering both labor and materials for use in the construction, 
84.20 	alteration, or repair of a building or facility;
84.21 	(2) construction materials purchased by tax-exempt entities or their contractors to 
84.22 	be used in constructing buildings or facilities that will not be used principally by the 
84.23 	tax-exempt entities;
84.24 	(3) lodging as defined under section 297A.61, subdivision 3, paragraph (g), clause 
84.25 	(2), and prepared food, candy, soft drinks, and alcoholic beverages as defined in section 
84.26 	297A.67, subdivision 2, except wine purchased by an established religious organization 
84.27 	for sacramental purposes or as allowed under subdivision 9a; and
84.28 	(4) leasing of a motor vehicle as defined in section 297B.01, subdivision 11, except 
84.29 	as provided in paragraph (c) (d).
84.30 	(c) (d) This exemption applies to the leasing of a motor vehicle as defined in section 
84.31 	297B.01, subdivision 11, only if the vehicle is:
84.32 	(1) a truck, as defined in section 168.002, a bus, as defined in section 168.002, or a 
84.33 	passenger automobile, as defined in section 168.002, if the automobile is designed and 
84.34 	used for carrying more than nine persons including the driver; and
85.1 	(2) intended to be used primarily to transport tangible personal property or 
85.2 	individuals, other than employees, to whom the organization provides service in 
85.3 	performing its charitable, religious, or educational purpose.
85.4 	(d) (e) A limited liability company also qualifies for exemption under this 
85.5 	subdivision if (1) it consists of a sole member that would qualify for the exemption, and 
85.6 	(2) the items purchased qualify for the exemption.

85.7 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
85.8 	June 30, 2015.

85.9 	Sec. 10. Minnesota Statutes 2014, section 297A.70, subdivision 14, is amended to read:
85.10 		Subd. 14.Fund-raising events sponsored by nonprofit groups. (a) Sales of 
85.11 	tangible personal property or services at, and admission charges for fund-raising events 
85.12 	sponsored by, a nonprofit organization are exempt if:
85.13 	(1) all gross receipts are recorded as such, in accordance with generally accepted 
85.14 	accounting practices, on the books of the nonprofit organization; and
85.15 	(2) the entire proceeds, less the necessary expenses for the event, will be used solely 
85.16 	and exclusively for charitable, religious, or educational purposes. Exempt sales include 
85.17 	the sale of prepared food, candy, and soft drinks at the fund-raising event.
85.18 	(b) This exemption is limited in the following manner:
85.19 	(1) it does not apply to admission charges for events involving bingo or other 
85.20 	gambling activities or to charges for use of amusement devices involving bingo or other 
85.21 	gambling activities;
85.22 	(2) all gross receipts are taxable if the profits are not used solely and exclusively for 
85.23 	charitable, religious, or educational purposes;
85.24 	(3) it does not apply unless the organization keeps a separate accounting record, 
85.25 	including receipts and disbursements from each fund-raising event that documents all 
85.26 	deductions from gross receipts with receipts and other records;
85.27 	(4) it does not apply to any sale made by or in the name of a nonprofit corporation as 
85.28 	the active or passive agent of a person that is not a nonprofit corporation;
85.29 	(5) all gross receipts are taxable if fund-raising events exceed 24 days per year;
85.30 	(6) it does not apply to fund-raising events conducted on premises leased for more 
85.31 	than five ten days but less than 30 days; and
85.32 	(7) it does not apply if the risk of the event is not borne by the nonprofit organization 
85.33 	and the benefit to the nonprofit organization is less than the total amount of the state and 
85.34 	local tax revenues forgone by this exemption.
86.1 	(c) For purposes of this subdivision, a "nonprofit organization" means any unit of 
86.2 	government, corporation, society, association, foundation, or institution organized and 
86.3 	operated for charitable, religious, educational, civic, fraternal, and senior citizens' or 
86.4 	veterans' purposes, no part of the net earnings of which inures to the benefit of a private 
86.5 	individual.
86.6 	(d) For purposes of this subdivision, "fund-raising events" means activities of 
86.7 	limited duration, not regularly carried out in the normal course of business, that attract 
86.8 	patrons for community, social, and entertainment purposes, such as auctions, bake sales, 
86.9 	ice cream socials, block parties, carnivals, competitions, concerts, concession stands, 
86.10 	craft sales, bazaars, dinners, dances, door-to-door sales of merchandise, fairs, fashion 
86.11 	shows, festivals, galas, special event workshops, sporting activities such as marathons and 
86.12 	tournaments, and similar events. Fund-raising events do not include the operation of a 
86.13 	regular place of business in which services are provided or sales are made during regular 
86.14 	hours such as bookstores, thrift stores, gift shops, restaurants, ongoing Internet sales, 
86.15 	regularly scheduled classes, or other activities carried out in the normal course of business.

86.16 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
86.17 	June 30, 2015.

86.18 	Sec. 11. Minnesota Statutes 2014, section 297A.70, is amended by adding a 
86.19 	subdivision to read:
86.20 		Subd. 20.Animal shelters. Sales of animals by a nonprofit animal shelter are 
86.21 	exempt. For purposes of this subdivision, the term "nonprofit animal shelter" means 
86.22 	a nonprofit organization that is exempt under section 297A.70, subdivision 4, and is 
86.23 	engaged in the business of rescuing, sheltering, and finding homes for unwanted animals.

86.24 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
86.25 	June 30, 2015.

86.26 	Sec. 12. Minnesota Statutes 2014, section 297F.05, subdivision 3, is amended to read:
86.27 		Subd. 3.Rates; tobacco products. (a) Except as provided in paragraphs (b) and (c) 
86.28 	and subdivision 3a, a tax is imposed upon all tobacco products in this state and upon any 
86.29 	person engaged in business as a distributor, at the rate of 95 percent of the wholesale sales 
86.30 	price of the tobacco products. The tax is imposed at the time the distributor:
86.31 	(1) brings, or causes to be brought, into this state from outside the state tobacco 
86.32 	products for sale;
87.1 	(2) makes, manufactures, or fabricates tobacco products in this state for sale in 
87.2 	this state; or
87.3 	(3) ships or transports tobacco products to retailers in this state, to be sold by those 
87.4 	retailers.
87.5 	(b) Notwithstanding paragraph (a), A minimum tax equal to the greater of the tax 
87.6 	imposed under paragraph (a) or a minimum tax equal to the rate imposed on a pack of 
87.7 	20 cigarettes weighing not more than three pounds per thousand, as established under 
87.8 	subdivision 1, is imposed on each container of moist snuff weighing not more than 1.2 
87.9 	ounces.  When more than one container subject to tax under this clause is packaged 
87.10 	together, each container is subject to the minimum tax.
87.11 	(c) Except as provided in paragraph (b), a tax equal to the greater of the tax imposed 
87.12 	under paragraph (a) or a minimum tax equal to the rate imposed on a pack of 20 cigarettes 
87.13 	weighing not more than three pounds per thousand, as established under subdivision 1, 
87.14 	times the number of ounces of moist snuff in the container, divided by 1.2, is imposed on 
87.15 	each container of moist snuff weighing more than 1.2 ounces.
87.16 	For purposes of this subdivision, a "container" means the smallest a consumer-size can, 
87.17 	package, or other container that is marketed or packaged by the manufacturer, distributor, 
87.18 	or retailer for separate sale to a retail purchaser. When more than one container is 
87.19 	packaged together, each container is subject to tax.

87.20 	EFFECTIVE DATE. This section is effective July 1, 2015.

87.21 	Sec. 13. Minnesota Statutes 2014, section 297F.09, subdivision 10, is amended to read:
87.22 		Subd. 10.Accelerated tax payment; cigarette or tobacco products distributor.
 87.23 	A cigarette or tobacco products distributor having a liability of $250,000 or more during a 
87.24 	fiscal year ending June 30, shall remit the June liability for the next year in the following 
87.25 	manner:
87.26 	(a) Two business days before June 30 of the year, the distributor shall remit the 
87.27 	actual May liability and 81.4 80 percent of the estimated June liability to the commissioner 
87.28 	and file the return in the form and manner prescribed by the commissioner.
87.29 	(b) On or before August 18 of the year, the distributor shall submit a return showing 
87.30 	the actual June liability and pay any additional amount of tax not remitted in June. A 
87.31 	penalty is imposed equal to ten percent of the amount of June liability required to be paid 
87.32 	in June, less the amount remitted in June. However, the penalty is not imposed if the 
87.33 	amount remitted in June equals the lesser of:
87.34 	(1) 81.4 80 percent of the actual June liability; or
88.1 	(2) 81.4 80 percent of the preceding May liability.

88.2 	EFFECTIVE DATE. This section is effective for taxes due and payable after 
88.3 	July 1, 2015.

88.4 	Sec. 14. Minnesota Statutes 2014, section 297G.09, subdivision 9, is amended to read:
88.5 		Subd. 9.Accelerated tax payment; penalty. A person liable for tax under this 
88.6 	chapter having a liability of $250,000 or more during a fiscal year ending June 30, shall 
88.7 	remit the June liability for the next year in the following manner:
88.8 	(a) Two business days before June 30 of the year, the taxpayer shall remit the actual 
88.9 	May liability and 81.4 80 percent of the estimated June liability to the commissioner and 
88.10 	file the return in the form and manner prescribed by the commissioner.
88.11 	(b) On or before August 18 of the year, the taxpayer shall submit a return showing 
88.12 	the actual June liability and pay any additional amount of tax not remitted in June. A 
88.13 	penalty is imposed equal to ten percent of the amount of June liability required to be paid 
88.14 	in June less the amount remitted in June. However, the penalty is not imposed if the 
88.15 	amount remitted in June equals the lesser of:
88.16 	(1) 81.4 80 percent of the actual June liability; or
88.17 	(2) 81.4 80 percent of the preceding May liability.

88.18 	EFFECTIVE DATE. This section is effective for taxes due and payable after 
88.19 	July 1, 2015.

88.20 	Sec. 15. Minnesota Statutes 2014, section 297H.04, subdivision 2, is amended to read:
88.21 		Subd. 2.Rate. (a) Commercial generators that generate nonmixed municipal 
88.22 	solid waste shall pay a solid waste management tax of 60 cents per noncompacted 
88.23 	cubic yard of periodic waste collection capacity purchased by the generator, based on 
88.24 	the size of the container for the nonmixed municipal solid waste, the actual volume, 
88.25 	or the weight-to-volume conversion schedule in paragraph (c). However, the tax must 
88.26 	be calculated by the waste management service provider using the same method for 
88.27 	calculating the waste management service fee so that both are calculated according to 
88.28 	container capacity, actual volume, or weight.
88.29 	(b) Notwithstanding section 297H.02, a residential generator that generates 
88.30 	nonmixed municipal solid waste shall pay a solid waste management tax in the same 
88.31 	manner as provided in paragraph (a).
88.32 	(c) The weight-to-volume conversion schedule for:
89.1 	(1) construction debris as defined in section 115A.03, subdivision 7, is one ton 
89.2 	equals 3.33 cubic yards, or $2 per ton equal to 60 cents per cubic yard. The commissioner 
89.3 	of revenue, after consultation with the commissioner of the Pollution Control Agency, 
89.4 	shall determine and may publish by notice a conversion schedule for construction debris;
89.5 	(2) industrial waste as defined in section 115A.03, subdivision 13a, is equal to 
89.6 	60 cents per cubic yard. The commissioner of revenue after consultation with the 
89.7 	commissioner of the Pollution Control Agency, shall determine, and may publish by 
89.8 	notice, a conversion schedule for various industrial wastes; and
89.9 	(3) infectious waste as defined in section 116.76, subdivision 12, and pathological 
89.10 	waste as defined in section 116.76, subdivision 14, is 150 pounds equals one cubic yard, or 
89.11 	60 cents per 150 pounds.

89.12 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
89.13 	June 30, 2015.

89.14 	Sec. 16. Minnesota Statutes 2014, section 469.190, subdivision 1, is amended to read:
89.15 		Subdivision 1.Authorization. Notwithstanding section 477A.016 or any other law, 
89.16 	a statutory or home rule charter city may by ordinance, and a town may by the affirmative 
89.17 	vote of the electors at the annual town meeting, or at a special town meeting, impose a 
89.18 	tax of up to three percent on the gross receipts from the furnishing for consideration of 
89.19 	lodging at a hotel, motel, rooming house, tourist court, or resort, other than the renting or 
89.20 	leasing of it for a continuous period of 30 days or more. A statutory or home rule charter 
89.21 	city may by ordinance impose the tax authorized under this subdivision on the camping 
89.22 	site receipts of a municipal campground. Regardless of whether the tax is collected locally 
89.23 	or by the state, a tax imposed under this subdivision or under a special law applies to 
89.24 	the entire consideration paid to obtain access to lodging, including ancillary or related 
89.25 	services, such as services provided by accommodation intermediaries as defined in section 
89.26 	297A.61, and similar services.

89.27 	EFFECTIVE DATE. This section is effective the day following final enactment. In 
89.28 	enacting this section, the legislature confirms that Minnesota Statutes, section 469.190, its 
89.29 	predecessor provisions, and any special laws authorizing political subdivisions to impose 
89.30 	lodging taxes, were and are intended to apply to the entire consideration paid to obtain 
89.31 	access to lodging, including ancillary or related services, such as services provided by 
89.32 	accommodation intermediaries as defined in Minnesota Statutes, section 297A.61, and 
89.33 	similar services. The provisions of this section must not be interpreted to imply a narrower 
90.1 	construction of the tax base under lodging tax provisions of Minnesota law prior to the 
90.2 	enactment of this section.

90.3 	Sec. 17. Minnesota Statutes 2014, section 469.190, subdivision 7, is amended to read:
90.4 		Subd. 7.Collection. (a) The statutory or home rule charter city may agree with the 
90.5 	commissioner of revenue that a tax imposed pursuant to this section shall be collected 
90.6 	by the commissioner together with the tax imposed by chapter 297A, and subject to the 
90.7 	same interest, penalties, and other rules and that its proceeds, less the cost of collection, 
90.8 	shall be remitted to the city.
90.9 	(b) If a tax under this section or under a special law is not collected by the 
90.10 	commissioner of revenue, the local government imposing the tax may by ordinance limit 
90.11 	the required filing and remittance of the tax by an accommodation intermediary, as 
90.12 	defined in section 297A.61, subdivision 47, to once in every calendar year. The local 
90.13 	government must inform the accommodation intermediary of the date when the return 
90.14 	or remittance is due and the dates must coincide with one of the monthly dates for filing 
90.15 	and remitting state sales tax under chapter 297A. The local government must also provide 
90.16 	accommodation intermediaries electronically with geographic and zip code information 
90.17 	necessary to correctly collect the tax.

90.18 	EFFECTIVE DATE. This section is effective the day after final enactment.

90.19 	Sec. 18. Laws 1980, chapter 511, section 1, subdivision 2, as amended by Laws 1991, 
90.20 	chapter 291, article 8, section 22, Laws 1998, chapter 389, article 8, section 25, Laws 
90.21 	2003, First Special Session chapter 21, article 8, section 11, Laws 2008, chapter 154, 
90.22 	article 5, section 2, and Laws 2014, chapter 308, article 3, section 21, is amended to read:
90.23 		Subd. 2. (a) Notwithstanding Minnesota Statutes, section 477A.016, or any other 
90.24 	law, ordinance, or city charter provision to the contrary, the city of Duluth may, by 
90.25 	ordinance, impose an additional sales tax of up to one and three-quarter percent on sales 
90.26 	transactions which are described in Minnesota Statutes 2000, section 297A.01, subdivision 
90.27 	3, clause (c). The imposition of this tax shall not be subject to voter referendum under 
90.28 	either state law or city charter provisions. When the city council determines that the taxes 
90.29 	imposed under this paragraph at a rate of three-quarters of one percent and other sources 
90.30 	of revenue produce revenue sufficient to pay debt service on bonds in the principal amount 
90.31 	of $40,285,000 plus issuance and discount costs, issued for capital improvements at the 
90.32 	Duluth Entertainment and Convention Center, which include a new arena, the rate of tax 
90.33 	under this subdivision must be reduced by three-quarters of one percent.
91.1 	(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, 
91.2 	section 477A.016, or any other law, ordinance, or city charter provision to the contrary, 
91.3 	the city of Duluth may, by ordinance, impose an additional sales tax of up to one-half of 
91.4 	one percent on sales transactions which are described in Minnesota Statutes 2000, section 
91.5 	297A.01, subdivision 3, clause (c). This tax expires when the city council determines 
91.6 	that the tax imposed under this paragraph, along with the tax imposed under section 
91.7 	22, paragraph (b), has produced revenues sufficient to pay the debt service on bonds 
91.8 	in a principal amount of no more than $18,000,000, plus issuance and discount costs, 
91.9 	to finance capital improvements to public facilities to support tourism and recreational 
91.10 	activities in that portion of the city west of 34th 14th Avenue West and the area south of 
91.11 	and including Skyline Parkway.
91.12 	(c) The city of Duluth may sell and issue up to $18,000,000 in general obligation 
91.13 	bonds under Minnesota Statutes, chapter 475, plus an additional amount to pay for the 
91.14 	costs of issuance and any premiums. The proceeds may be used to finance capital 
91.15 	improvements to public facilities that support tourism and recreational activities in the 
91.16 	portion of the city west of 34th 14th Avenue West and the area south of and including 
91.17 	Skyline Parkway, as described in paragraph (b). The issuance of the bonds is subject to the 
91.18 	provisions of Minnesota Statutes, chapter 475, except no election shall be required unless 
91.19 	required by the city charter. The bonds shall not be included in computing net debt. The 
91.20 	revenues from the taxes that the city of Duluth may impose under paragraph (b) and under 
91.21 	section 22, paragraph (b), may be pledged to pay principal of and interest on such bonds.

91.22 	EFFECTIVE DATE. This section is effective the day after the governing body of 
91.23 	the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 
91.24 	645.021, subdivisions 2 and 3.

91.25 	Sec. 19. Laws 1980, chapter 511, section 2, as amended by Laws 1998, chapter 389, 
91.26 	article 8, section 26, Laws 2003, First Special Session chapter 21, article 8, section 12, and 
91.27 	Laws 2014, chapter 308, article 3, section 22, is amended to read:
91.28 	Sec. 22. CITY OF DULUTH; TAX ON RECEIPTS BY HOTELS AND 
91.29 	MOTELS.
 91.30 	(a) Notwithstanding Minnesota Statutes, section 477A.016, or any other law, or 
91.31 	ordinance, or city charter provision to the contrary, the city of Duluth may, by ordinance, 
91.32 	impose an additional tax of one percent upon the gross receipts from the sale of lodging 
91.33 	for periods of less than 30 days in hotels and motels located in the city. The tax shall be 
91.34 	collected in the same manner as the tax set forth in the Duluth city charter, section 54(d), 
92.1 	paragraph one. The imposition of this tax shall not be subject to voter referendum under 
92.2 	either state law or city charter provisions.
92.3 	(b) In addition to the tax in paragraph (a) and notwithstanding Minnesota Statutes, 
92.4 	section 477A.016, or any other law, ordinance, or city charter provision to the contrary, 
92.5 	the city of Duluth may, by ordinance, impose an additional sales tax of up to one-half 
92.6 	of one percent on the gross receipts from the sale of lodging for periods of less than 
92.7 	30 days in hotels and motels located in the city. This tax expires when the city council 
92.8 	first determines that the tax imposed under this paragraph, along with the tax imposed 
92.9 	under section 21, paragraph (b), has produced revenues sufficient to pay the debt 
92.10 	service on bonds in a principal amount of no more than $18,000,000, plus issuance and 
92.11 	discount costs, to finance capital improvements to public facilities to support tourism and 
92.12 	recreational activities in that portion of the city west of 34th 14th Avenue West and the 
92.13 	area south of and including Skyline Parkway.

92.14 	EFFECTIVE DATE. This section is effective the day after the governing body of 
92.15 	the city of Duluth and its chief clerical officer comply with Minnesota Statutes, section 
92.16 	645.021, subdivisions 2 and 3.

92.17 	Sec. 20. Laws 1991, chapter 291, article 8, section 27, subdivision 3, as amended by 
92.18 	Laws 1998, chapter 389, article 8, section 28, Laws 2008, chapter 366, article 7, section 9, 
92.19 	and Laws 2009, chapter 88, article 4, section 14, is amended to read:
92.20 		Subd. 3. Use of revenues. (a) Revenues received from taxes authorized by 
92.21 	subdivisions 1 and 2 shall be used by the city to pay the cost of collecting the tax and to 
92.22 	pay all or a portion of the expenses of constructing and improving facilities as part of an 
92.23 	urban revitalization project in downtown Mankato known as Riverfront 2000. Authorized 
92.24 	expenses include, but are not limited to, acquiring property and paying relocation expenses 
92.25 	related to the development of Riverfront 2000 and related facilities, and securing or paying 
92.26 	debt service on bonds or other obligations issued to finance the construction of Riverfront 
92.27 	2000 and related facilities. For purposes of this section, "Riverfront 2000 and related 
92.28 	facilities" means a civic-convention center, an arena, a riverfront park, a technology center 
92.29 	and related educational facilities, and all publicly owned real or personal property that 
92.30 	the governing body of the city determines will be necessary to facilitate the use of these 
92.31 	facilities, including but not limited to parking, skyways, pedestrian bridges, lighting, and 
92.32 	landscaping. It also includes the performing arts theatre and the Southern Minnesota 
92.33 	Women's Hockey Exposition Center, for use by Minnesota State University, Mankato.
93.1 	(b) Notwithstanding Minnesota Statutes, section 297A.99, subdivision 3, and subject 
93.2 	to voter approval at a special or general election held on or before December 31, 2018, the 
93.3 	city may by ordinance also use revenues from taxes authorized under subdivisions 1 and 2:
93.4 	(1) up to a maximum of $29,000,000, plus associated bond costs, to pay all or a 
93.5 	portion of the expenses of the following capital projects:
93.6 	(i) improvements to regional recreational facilities including existing hockey and 
93.7 	curling rinks, a baseball park, youth athletic fields and facilities, and the municipal 
93.8 	swimming pool including improvements to make the pool compliant with the Americans 
93.9 	with Disabilities Act; 
93.10 	(ii) improvements to flood control and the levee system;
93.11 	(iii) water quality improvement projects in Blue Earth and Nicollet Counties; 
93.12 	(iv) expansion of the regional transit building and related multimodal transit 
93.13 	improvements;
93.14 	(v) regional public safety and emergency communications improvements and 
93.15 	equipment; and
93.16 	(vi) matching funds for improvements to publicly owned regional facilities including 
93.17 	a historic museum, supportive housing, and a senior center; and
93.18 	(2) up to a maximum of $25,000,000, plus associated bond costs, to pay all or a 
93.19 	portion of the costs of constructing the following new regional athletic facilities: ice 
93.20 	sheets, swimming and aquatic facility, multi-use sports bubble, indoor field house, or 
93.21 	indoor tennis courts. 
93.22 	(c) The additional uses of revenues authorized in paragraph (b) must be presented to 
93.23 	voters in one ballot question. The election must be held on the same date as the election to 
93.24 	extend the North Mankato local option sales tax authorized under section 25 of this article.

93.25 	EFFECTIVE DATE. This section is effective the day after the governing body of 
93.26 	the city of Mankato and its chief clerical officer timely complete their compliance with 
93.27 	Minnesota Statutes, section 645.021, subdivisions 2 and 3.

93.28 	Sec. 21. Laws 1991, chapter 291, article 8, section 27, subdivision 4, as amended by 
93.29 	Laws 2005, First Special Session chapter 3, article 5, section 25, and Laws 2008, chapter 
93.30 	366, article 7, section 10, is amended to read:
93.31 		Subd. 4. Expiration of taxing authority and expenditure limitation. The 
93.32 	authority granted by subdivisions 1 and 2 to the city to impose a sales tax and an excise tax 
93.33 	shall expire on at the later of when revenues are sufficient to pay off the bonds, including 
93.34 	interest and all other associated bond costs authorized under subdivision 5, or  December 
93.35 	31, 2022, unless the additional uses under subdivision 3, paragraph (b), are authorized. If 
94.1 	the additional uses allowed in subdivision 3, paragraph (b), are authorized, the taxes expire 
94.2 	at the later of when revenues are sufficient to pay off the bonds, including interest and all 
94.3 	other associated bond costs authorized under subdivision 5, or December 31, 2038. Upon 
94.4 	expiration of the taxes, any remaining fund balance of revenues derived from the taxes 
94.5 	shall be disbursed to the general fund of the city. The taxes imposed under subdivisions 1 
94.6 	and 2 may expire at an earlier time if the city so determines by ordinance. 

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

94.9 	Sec. 22. Laws 1991, chapter 291, article 8, section 27, subdivision 5, is amended to read:
94.10 		Subd. 5.Bonds. (a) The city of Mankato may issue general obligation bonds of the 
94.11 	city in an amount not to exceed $25,000,000 for Riverfront 2000 and related facilities, 
94.12 	without election under Minnesota Statutes, chapter 475, on the question of issuance of the 
94.13 	bonds or a tax to pay them. The debt represented by bonds issued for Riverfront 2000 
94.14 	and related facilities shall not be included in computing any debt limitations applicable 
94.15 	to the city of Mankato, and the levy of taxes required by section 475.61 to pay principal 
94.16 	of and interest on the bonds shall not be subject to any levy limitation or be included in 
94.17 	computing or applying any levy limitation applicable to the city.
94.18 	(b) The city of Mankato, subject to voter approval at the election required under 
94.19 	subdivision 3, paragraph (b), may issue general obligation bonds of the city in an amount 
94.20 	not to exceed $29,000,000 for the projects listed under subdivision 3, paragraph (b), 
94.21 	clause (1), and not to exceed $25,000,000 for the projects listed under subdivision 3, 
94.22 	paragraph (b), clause (2), without election under Minnesota Statutes, chapter 475, on the 
94.23 	question of issuance of the bonds or a tax to pay them. The debt represented by bonds 
94.24 	under this paragraph shall not be included in computing any debt limitations applicable 
94.25 	to the city of Mankato, and the levy of taxes required by Minnesota Statutes, section 
94.26 	475.61, to pay principal of and interest on the bonds, and shall not be subject to any levy 
94.27 	limitation or be included in computing or applying any levy limitation applicable to the 
94.28 	city. The city may use tax revenue in excess of one year's principal interest reserve for 
94.29 	intended annual bond payments to pay all or a portion of the cost of capital improvements 
94.30 	authorized in subdivision 3.
94.31 	(c) Notwithstanding the maximum bond limits in this subdivision, the city may use 
94.32 	tax revenue in excess of any and all annual principal and interest payment obligations for 
94.33 	capital replacement associated with the uses authorized in subdivision 3.

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

95.3 	Sec. 23. Laws 1991, chapter 291, article 8, section 27, subdivision 6, is amended to read:
95.4 		Subd. 6.Reverse referendum; authorization of extensions. (a) If the Mankato city 
95.5 	council intends to exercise the authority provided by this section, it shall pass a resolution 
95.6 	stating the fact before July 1, 1991. The resolution must be published for two successive 
95.7 	weeks in the official newspaper of the city or, if there is no official newspaper, in a 
95.8 	newspaper of general circulation in the city, together with a notice fixing a date for a public 
95.9 	hearing on the matter. The hearing must be held at least two weeks but not more than four 
95.10 	weeks after the first publication of the resolution. Following the public hearing, the city 
95.11 	may determine to take no further action or adopt a resolution confirming its intention to 
95.12 	exercise the authority. That resolution must also be published in the official newspaper of 
95.13 	the city or, if there is no official newspaper, in a newspaper of general circulation in the 
95.14 	city. If within 30 days after publication of the resolution a petition signed by voters equal 
95.15 	in number to ten percent of the votes cast in the city in the last general election requesting 
95.16 	a vote on the proposed resolution is filed with the county auditor, the resolution is not 
95.17 	effective until it has been submitted to the voters at a general or special election and a 
95.18 	majority of votes cast on the question of approving the resolution are in the affirmative. The 
95.19 	commissioner of revenue shall prepare a suggested form of question to be presented at the 
95.20 	election. The referendum must be held at a special or general election before December 1, 
95.21 	1991. This subdivision applies notwithstanding any city charter provision to the contrary.
95.22 	(b) If the Mankato city council wishes to extend the taxes authorized under 
95.23 	subdivisions 1 and 2 to fund any of the projects listed in subdivision 3, paragraph (b) or 
95.24 	(c), the city must pass a resolution extending the taxes before July 1, 2015. The tax may 
95.25 	not be imposed unless approved by the voters.

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

95.28 	Sec. 24. Laws 2006, chapter 257, section 2, the effective date, as amended by Laws 
95.29 	2011, First Special Session chapter 7, article 3, section 17, is amended to read:

95.30 	EFFECTIVE DATE. This section is effective for sales and purchases after June 30, 
95.31 	2006, and before July 1, 2015.

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

96.1 	Sec. 25. Laws 2008, chapter 366, article 7, section 20, is amended to read:
96.2 	Sec. 20. CITY OF NORTH MANKATO; TAXES AUTHORIZED.
 96.3 		Subdivision 1.Sales and use tax authorized. Notwithstanding Minnesota Statutes, 
96.4 	section 477A.016, or any other provision of law, ordinance, or city charter, pursuant to 
96.5 	the approval of the voters on November 7, 2006, the city of North Mankato may impose 
96.6 	by ordinance a sales and use tax of one-half of one percent for the purposes specified 
96.7 	in subdivision 2. The provisions of Minnesota Statutes, section 297A.99, govern the 
96.8 	imposition, administration, collection, and enforcement of the taxes authorized under 
96.9 	this subdivision. 
96.10 		Subd. 2.Use of revenues. (a) Revenues received from the tax authorized by 
96.11 	subdivision 1 must be used to pay all or part of the capital costs of the following projects: 
96.12 	(1) the local share of the Trunk Highway 14/County State-Aid Highway 41 
96.13 	interchange project; 
96.14 	(2) development of regional parks and hiking and biking trails;
96.15 	(3) expansion of the North Mankato Taylor Library;
96.16 	(4) riverfront redevelopment; and
96.17 	(5) lake improvement projects.
96.18 	The total amount of revenues from the tax in subdivision 1 that may be used to fund 
96.19 	these projects is $6,000,000 plus any associated bond costs.
96.20 	(b) If the city extends the tax as authorized under subdivision 2a, paragraph (a), the 
96.21 	total amount that may be used to fund these projects is increased by $9,000,000, plus 
96.22 	associated bond costs, including interest on the bonds, minus any revenues used for the 
96.23 	purposes listed in paragraph (c).
96.24 	(c) Revenues raised from the tax imposed under subdivision 1 may also be used to 
96.25 	fund all or a portion of the costs of constructing new regional athletic facilities: ice sheets, 
96.26 	swimming and aquatic facility, multi-use sports bubble, indoor field house, or indoor 
96.27 	tennis courts if those facilities are constructed within the corporate boundaries of the city 
96.28 	of North Mankato. The tax may only be used for this purpose if authorized by the voters 
96.29 	as provided for in subdivision 2a, paragraph (b).
96.30 		Subd. 2a.Authorization to extend the tax. (a) Notwithstanding section 297A.99, 
96.31 	subdivision 3, if the North Mankato city council intends to extend the tax authorized under 
96.32 	subdivision 1 to cover an additional $9,000,000 in bonds, plus associated bond costs, 
96.33 	including interest on the bonds, to fund the projects in subdivision 2, paragraph (a), the 
96.34 	city must pass a resolution extending the tax before July 1, 2015. The resolution is not 
96.35 	effective until it has been submitted to the voters at a general or special election and a 
96.36 	majority of votes cast on the question of approving the resolution are in the affirmative. 
97.1 	The referendum must be held at a special or general election before December 1, 2018, 
97.2 	and must be held on the same date as the referendum required under section 20. This 
97.3 	subdivision applies notwithstanding any city charter provision to the contrary.
97.4 	(b) Notwithstanding section 297A.99, subdivision 3, and subject to voter approval 
97.5 	at a special or general election held on or before December 1, 2018, the city may use up 
97.6 	to $5,000,000, plus associated bond costs of the additional sales tax revenue allowed to 
97.7 	be raised under paragraph (a), to pay all or a portion of the costs of constructing the new 
97.8 	regional athletic facilities listed in subdivision 2, paragraph (c). The referendum required 
97.9 	under this paragraph must be held on the same date as the referendum required under 
97.10 	paragraph (a). The uses of revenues authorized in this paragraph and paragraph (a) must 
97.11 	be presented to voters in one ballot question. The election must be held on the same date 
97.12 	as the election to extend the Mankato local option sales tax authorized under section 20.
97.13 		Subd. 3.Bonds. (a) The city of North Mankato, pursuant to the approval of the 
97.14 	voters at the November 7, 2006 referendum authorizing the imposition of the taxes in 
97.15 	this section, may issue bonds under Minnesota Statutes, chapter 475, to pay capital and 
97.16 	administrative expenses for the projects described in subdivision 2, paragraph (a), in an 
97.17 	amount that does not exceed $6,000,000. A separate election to approve the bonds under 
97.18 	Minnesota Statutes, section 475.58, is not required.
97.19 	(b) The city of North Mankato, subject to voter approval under subdivision 2a, 
97.20 	paragraph (a), allowing for additional revenue to be spent for the projects in subdivision 2, 
97.21 	paragraph (a), may issue additional bonds under Minnesota Statutes, chapter 475, to pay 
97.22 	capital and administrative expenses for those projects in an amount that does not exceed 
97.23 	$9,000,000, plus associated bond costs, including interest on the bonds. If approved by 
97.24 	voters as required under subdivision 2a, paragraph (b), up to $5,000,000 of the bonds, plus 
97.25 	associated bond costs, may be used to pay capital and administrative costs for the projects 
97.26 	listed in subdivision 2, paragraph (b), instead. A separate election to approve the bonds 
97.27 	under Minnesota Statutes, section 475.58, is not required.
97.28 	(b) (c) The debt represented by the bonds is not included in computing any debt 
97.29 	limitation applicable to the city, and any levy of taxes under Minnesota Statutes, section 
97.30 	475.61, to pay principal and interest on the bonds is not subject to any levy limitation.
97.31 	(d) Notwithstanding the maximum bond limits set forth above, the city may use tax 
97.32 	revenue in excess of any and all annual principal and interest payment obligations for 
97.33 	capital replacement associated with the uses authorized in subdivision 2.
97.34 		Subd. 4.Termination of taxes. The tax imposed under subdivision 1 expires when 
97.35 	the city council determines that the amount of revenues received from the taxes to pay for 
97.36 	the projects under subdivision 2, paragraph (a), first equals or exceeds $6,000,000 plus the 
98.1 	additional amount needed to pay the costs related to issuance of bonds under subdivision 
98.2 	3, including interest on the bonds, unless the tax is extended as allowed in this section. 
98.3 	If the tax is extended as allowed under subdivision 2a, paragraphs (a) and (b), the tax 
98.4 	expires December 31, 2038. Any funds remaining after completion of the projects and 
98.5 	retirement or redemption of the bonds shall be placed in a capital facilities and equipment 
98.6 	replacement fund of the city. The tax imposed under subdivision 1 may expire at an earlier 
98.7 	time if the city so determines by ordinance. 

98.8 	EFFECTIVE DATE. This section is effective the day after the governing body of 
98.9 	the city of North Mankato and its chief clerical officer timely complete their compliance 
98.10 	with Minnesota Statutes, section 645.021, subdivisions 2 and 3.

98.11 	Sec. 26. Laws 2013, chapter 143, article 8, section 22, the effective date, as amended 
98.12 	by Laws 2014, chapter 308, article 3, section 30, is amended to read:

98.13 	EFFECTIVE DATE. Subdivision 7, paragraph (c), clause (2), is effective for sales 
98.14 	and purchases made after June 30, 2013. The provisions of subdivision 7, paragraph (b), 
98.15 	and paragraph (c), clause (8), are effective retroactively for sales and purchases made 
98.16 	after April 1, 2009. Any vendor who paid sales or use tax on items now exempt under 
98.17 	subdivision 7, paragraph (b), and paragraph (c), clause (8), that were sold after April 1, 
98.18 	2009, and before July 1, 2013, may apply for a refund of the sales or use tax paid in the 
98.19 	manner provided in Minnesota Statutes, section 289A.50, subdivision 1, but only if the 
98.20 	vendor did not collect and remit sales tax on the items for which a refund is claimed. 
98.21 	Interest on the refund shall be paid at the rate in Minnesota Statutes, section 270C.405, 
98.22 	from 90 days after the refund claim is filed with the commissioner of revenue. The amount 
98.23 	to make the refunds is annually appropriated to the commissioner of revenue from the 
98.24 	general fund. Notwithstanding limitations on claims for refunds under Minnesota Statutes, 
98.25 	section 289A.40, claims may be filed with the commissioner until June 30, 2015 2016.

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

98.27 	Sec. 27. Laws 2013, chapter 143, article 8, section 23, the effective date, as amended 
98.28 	by Laws 2014, chapter 308, article 3, section 31, is amended to read:

98.29 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
98.30 	June 30, 2013, except that the provision regarding accessories and supplies purchased 
98.31 	in a transaction covered by Medicare or Medicaid that are not already exempt under 
98.32 	Minnesota Statutes, section 297A.67, subdivision 7, and the provision defining "Medicare" 
99.1 	and "Medicaid" are effective retroactively for sales and purchases made after April 1, 
99.2 	2009. Any vendor who paid sales or use tax on accessories and supplies purchased in a 
99.3 	transaction covered by Medicare or Medicaid that are not already exempt under Minnesota 
99.4 	Statutes, section 297A.67, subdivision 7, and that were sold after April 1, 2009, and before 
99.5 	July 1, 2013, may apply for a refund of the sales or use tax paid in the manner provided in 
99.6 	Minnesota Statutes, section 289A.50, subdivision 1, but only if the vendor did not collect 
99.7 	and remit sales tax on the accessories and supplies for which a refund is claimed. Interest 
99.8 	on the refund shall be paid at the rate in Minnesota Statutes, section 270C.405, from 90 
99.9 	days after the refund claim is filed with the commissioner of revenue. The amount to make 
99.10 	the refunds is annually appropriated to the commissioner of revenue from the general 
99.11 	fund. Notwithstanding limitations on claims for refunds under Minnesota Statutes, section 
99.12 	289A.40, claims may be filed with the commissioner until June 30, 2015 2016.

99.13 	EFFECTIVE DATE. This section is effective retroactively for sales and purchases 
99.14 	made after April 1, 2009.

99.15 	Sec. 28. Laws 2014, chapter 308, article 7, section 7, is amended to read:
99.16 	Sec. 7. CITY OF LUVERNE LOCAL SALES TAX.
 99.17 	(a) Notwithstanding Minnesota Statutes, sections 297A.99, 297A.993, and 
99.18 	477A.016, or any other contrary provision of law, ordinance, or city charter, the city of 
99.19 	Luverne may, by ordinance, impose a sales and use tax of up to one-half of one percent for 
99.20 	the purposes specified in paragraph (b), if approved by the voters at a general election held 
99.21 	prior to December 31, 2020. Except as otherwise provided in this section, the provisions 
99.22 	of Minnesota Statutes, section 297A.99, subdivisions 4 to 13, govern the imposition, 
99.23 	administration, collection, and enforcement of the tax authorized under this paragraph.
99.24 	(b) The proceeds of any tax imposed under paragraph (a), less refunds and costs of 
99.25 	collection, must be first used by the city to pay debt service on bonds issuedthe city's 
99.26 	local share under Minnesota Statutes, section 469.194477A.20, to fund the Lewis and 
99.27 	Clark Regional Water System project. Revenues collected in any calendar year in excess 
99.28 	of the city obligation to pay for debt service on bonds issuedthe city's local share under 
99.29 	Minnesota Statutes, section 469.194477A.20, may be retained by the city and used for 
99.30 	funding other capital projects within the city.
99.31 	(c) A tax imposed under paragraph (a) expires when the city's share of bondslocal 
99.32 	share issued under Minnesota Statutes, section 469.194477A.20, to fund the Lewis and 
99.33 	Clark Regional Water System Project has been made, or at an earlier time if approved 
99.34 	by the city council. The tax must not terminate before the city council determines that 
99.35 	revenues from this tax and any other revenue source the city dedicates are sufficient to 
100.1 	pay the citycity's local share of debtservice on bonds issued under Minnesota Statutes, 
100.2 	section 469.194477A.20.

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

100.4 	Sec. 29. CITY OF MARSHALL; VALIDATION OF PRIOR ACT.
 100.5 	(a) Notwithstanding the time limits in Minnesota Statutes, section 645.021, the city 
100.6 	of Marshall may approve Laws 2011, First Special Session chapter 7, article 4, section 14, 
100.7 	and file its approval with the secretary of state by June 15, 2013.  If approved as authorized 
100.8 	under this paragraph, actions undertaken by the city pursuant to the approval of the voters 
100.9 	on November 6, 2012, and otherwise in accordance with Laws 2011, First Special Session 
100.10 	chapter 7, article 4, section 14, are validated.
100.11 	(b) Notwithstanding the time limit on the imposition of tax under Laws 2011, First 
100.12 	Special Session chapter 7, article 4, section 14, and subject to local approval under 
100.13 	paragraph (a), the city of Marshall may impose the tax on or before July 1, 2013.

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

100.15 	ARTICLE 5
100.16 	PROPERTY TAX AIDS AND CREDITS

100.17 	Section 1. Minnesota Statutes 2014, section 477A.0124, subdivision 4, is amended to 
100.18 	read:
100.19 		Subd. 4.County tax-base equalization aid. (a) For 2006 and subsequent years, 
100.20 	the money appropriated to county tax-base equalization aid each calendar year, after the 
100.21 	payment under paragraph (f), shall be apportioned among the counties according to each 
100.22 	county's tax-base equalization aid factor.
100.23 	(b) A county's tax-base equalization aid factor is equal to the amount by which (i) 
100.24 	$185 $330 times the county's population, exceeds (ii) 9.45 12 percent of the county's 
100.25 	net tax capacity.
100.26 	(c) In the case of a county with a population less than 10,000, the factor determined 
100.27 	in paragraph (b) shall be multiplied by a factor of three.
100.28 	(d) In the case of a county with a population greater than or equal to 10,000, but less 
100.29 	than 12,500, the factor determined in paragraph (b) shall be multiplied by a factor of two.
100.30 	(e) In the case of a county with a population greater than or equal to 12,500 but less 
100.31 	than 16,500, the factor determined in paragraph (b) shall be multiplied by a factor of 1.25.
100.32 	(e) (f) In the case of a county with a population greater than 500,000, the factor 
100.33 	determined in paragraph (b) shall be multiplied by a factor of 0.25.
101.1 	(g) For distributions in 2016, the allocation to a county under paragraphs (a) to (f) 
101.2 	shall not be less than 95 percent of the sum of the tax base equalization aid in 2014 plus 
101.3 	any supplemental program aid that was distributed to the county under Laws 2014, chapter 
101.4 	308, article 1, section 13. For distributions in 2017 and subsequent years, the allocation 
101.5 	to a county under paragraphs (a) to (f) shall not be less than 95 percent of the tax base 
101.6 	equalization aid of the county in the prior year.
101.7 	(h) Beginning with aid payable in 2017, the amount under paragraph (b), item (i), 
101.8 	shall be increased by the ratio of the statewide net tax capacity per capita to the statewide 
101.9 	net tax capacity per capita in the 2014 assessment year provided that in no case shall the 
101.10 	ratio be less than one or the ratio in the prior year, whichever is greater. The amount shall 
101.11 	be rounded to the nearest $10. The statewide taxable market value per capita shall be 
101.12 	calculated using the most recent population available for the relevant assessment year at 
101.13 	the time of the calculation of the aid by the commissioner under section 477A.014.
101.14 	(f) (i) Before the money appropriated to county base equalization aid is apportioned 
101.15 	among the counties as provided in paragraph (a), an amount up to $73,259 is allocated 
101.16 	annually to Anoka County and up to $59,664 is annually allocated to Washington County 
101.17 	for the county to pay postretirement costs of health insurance premiums for court 
101.18 	employees. The allocation under this paragraph is in addition to the allocations under 
101.19 	paragraphs (a) to (e) (h).

101.20 	EFFECTIVE DATE. This section is effective for aids payable in 2016 and thereafter.

101.21 	Sec. 2. [477A.0126] REIMBURSEMENT OF COUNTY AND TRIBES FOR 
101.22 	CERTAIN OUT-OF-HOME PLACEMENT.
101.23 		Subdivision 1.Definition. When used in this section, "out-of-home placement" 
101.24 	means 24-hour substitute care for an Indian child as defined by section 260C.007, 
101.25 	subdivision 21, placed under the Indian Child Welfare Act (ICWA) and chapter 260C, 
101.26 	away from the child's parent or guardian and for whom the county social services agency 
101.27 	or county correctional agency has been assigned responsibility for the child's placement 
101.28 	and care, which includes placement in foster care under section 260C.007, subdivision 
101.29 	18, and a correctional facility pursuant to a court order.
101.30 		Subd. 2.Determination of nonfederal share of costs. (a) By January 1, 2016, each 
101.31 	county shall report the following information to the commissioners of human services and 
101.32 	corrections: (1) the separate amounts paid out of its social service agency and its corrections 
101.33 	budget for out-of-home placement of children under the ICWA in calendar years 2012, 
101.34 	2013, and 2014; and (2) the number of case days associated with the expenditures from 
101.35 	each budget. By March 15, 2016, the commissioner of human services, in consultation with 
102.1 	the commissioner of corrections, shall certify to the commissioner of revenue and to the 
102.2 	legislative committees responsible for local government aids and out-of-home placement 
102.3 	funding, whether the data reported under this subdivision accurately reflects total 
102.4 	expenditures by counties for out-of-home placement costs of children under the ICWA.
102.5 	(b) By January 1, 2018, and each January 1 thereafter, each county shall report to the 
102.6 	commissioners of human services and corrections the separate amounts paid out of its 
102.7 	social service agency and its corrections budget for out-of-home placement of children 
102.8 	under the ICWA in the calendar years two years before the current calendar year along 
102.9 	with the number of case days associated with the expenditures from each budget.
102.10 	(c) Until the commissioner of human services develops another mechanism for 
102.11 	collecting and verifying data on out-of-home placements of children under the ICWA, and 
102.12 	the legislature authorizes the use of that data, the data collected under this subdivision 
102.13 	must be used to calculate payments under subdivision 3. The commissioner of human 
102.14 	services shall certify the information to the commissioner of revenue by July 1 of the year 
102.15 	prior to the aid payment.
102.16 		Subd. 3.Aid payments to counties. For aids payable in calendar year 2017 and 
102.17 	thereafter, the commissioner of revenue shall reimburse each county for 100 percent of 
102.18 	the nonfederal share of the cost of out-of-home placement of children under the ICWA 
102.19 	provided the commissioner of human services, in consultation with the commissioner 
102.20 	of corrections, certifies to the commissioner of revenue that accurate data is available 
102.21 	to make the aid determination under this section. The amount of reimbursement is the 
102.22 	county's average nonfederal share of the cost for out-of-home placement of children 
102.23 	under the ICWA for the most recent three calendar years for which data is available. 
102.24 	The commissioner shall pay the aid under the schedule used for local government aid 
102.25 	payments under section 477A.015.
102.26 		Subd. 4.Aid payments to tribes. (a) By January 1, 2016, and each year 
102.27 	thereafter, each tribe must certify to the commissioner of revenue the amount of federal 
102.28 	reimbursement received by the tribe for out-of-home placement of children under the 
102.29 	ICWA for the immediately preceding three calendar years.
102.30 	(b) The amount of reimbursement to the tribe shall be the greater of: (1) five 
102.31 	percent of the average reimbursement amount received from the federal government for 
102.32 	out-of-home placement costs for the most recent three calendar years; or (2) $200,000. 
102.33 	The commissioner shall pay the aid under this section under the schedule used for local 
102.34 	government aid payments under section 477A.015.
102.35 		Subd. 5.Appropriation. An amount sufficient to pay aid under this section is 
102.36 	annually appropriated to the commissioner of revenue from the general fund.

103.1 	EFFECTIVE DATE. This section is effective beginning with aids payable in 2017.

103.2 	Sec. 3. Minnesota Statutes 2014, section 477A.013, subdivision 1, is amended to read:
103.3 		Subdivision 1.Towns and unorganized territories. In 2014 2016 and thereafter, 
103.4 	each town and the total area of any unorganized territory within a county is eligible for 
103.5 	a distribution under this subdivision equal to the product of (i) its agricultural property 
103.6 	factor, (ii) its town area factor, (iii) its population factor, and (iv) 0.0045. As used in this 
103.7 	subdivision, the following terms have the meanings given them:
103.8 	(1) "agricultural property factor" means the ratio of the adjusted net tax capacity of 
103.9 	agricultural property located in a town, or unorganized territory divided by the adjusted 
103.10 	net tax capacity of all other property located in the town or unorganized territory. The 
103.11 	agricultural property factor cannot exceed eight;
103.12 	(2) "agricultural property" means property classified under section 273.13, as 
103.13 	homestead and nonhomestead agricultural property, rural vacant land, and noncommercial 
103.14 	seasonal recreational property;
103.15 	(3) "town area factor" means the most recent estimate of total acreage, not to exceed 
103.16 	50,000 acres, located in the case of a township, or 75,000 acres in the case of unorganized 
103.17 	territory, available as of July 1 in the aid calculation year, estimated or established by:
103.18 	(i) the United States Bureau of the Census;
103.19 	(ii) the State Land Management Information Center Minnesota Geospatial 
103.20 	Information Office; or
103.21 	(iii) the secretary of state; and
103.22 	(4) "population factor" means the square root of the towns' town's or unorganized 
103.23 	territory's population.
103.24 	If the sum of the aids payable to all towns and unorganized territories under this 
103.25 	subdivision exceeds or is less than the limit under section 477A.03, subdivision 2c, 
103.26 	the distribution to each town and unorganized territory must be reduced or increased 
103.27 	proportionately so that the total amount of aids distributed under this section does not 
103.28 	exceed the limit in section 477A.03, subdivision 2c.

103.29 	EFFECTIVE DATE. This section is effective for aids payable in 2016 and thereafter.

103.30 	Sec. 4. Minnesota Statutes 2014, section 477A.014, subdivision 1, is amended to read:
103.31 		Subdivision 1.Calculations and payments. (a) The commissioner of revenue shall 
103.32 	make all necessary calculations and make payments pursuant to sections 477A.013 and 
103.33 	477A.03 directly to the affected taxing authorities annually. In addition, the commissioner 
103.34 	shall notify the authorities of their aid amounts, as well as the computational factors used 
104.1 	in making the calculations for their authority, and those statewide total figures that are 
104.2 	pertinent, before August 1 of the year preceding the aid distribution year. In the case of 
104.3 	unorganized territory, the commissioner shall notify the affected county government of 
104.4 	the aid amount for any unorganized territory within the county and make payments of aid 
104.5 	payable based on unorganized territory to the county government. The aid received by the 
104.6 	county government must be spent in and for the unorganized territory.
104.7 	(b) For the purposes of this subdivision, aid is determined for a city or, town, 
104.8 	or unorganized territory based on its city or, town, or unorganized territory status as 
104.9 	of June 30 of the year preceding the aid distribution year. If the effective date for a 
104.10 	municipal incorporation, consolidation, annexation, detachment, dissolution, or township 
104.11 	organization is on or before June 30 of the year preceding the aid distribution year, such 
104.12 	change in boundaries or form of government shall be recognized for aid determinations for 
104.13 	the aid distribution year. If the effective date for a municipal incorporation, consolidation, 
104.14 	annexation, detachment, dissolution, or township organization is after June 30 of the year 
104.15 	preceding the aid distribution year, such change in boundaries or form of government shall 
104.16 	not be recognized for aid determinations until the following year.
104.17 	(c) Changes in boundaries or form of government will only be recognized for the 
104.18 	purposes of this subdivision, to the extent that: (1) changes in market values are included 
104.19 	in market values reported by assessors to the commissioner, and changes in population 
104.20 	and household size are included in their respective certifications to the commissioner as 
104.21 	referenced in section 477A.011, or (2) an annexation information report as provided in 
104.22 	paragraph (d) is received by the commissioner on or before July 15 of the aid calculation 
104.23 	year. Revisions to estimates or data for use in recognizing changes in boundaries or form 
104.24 	of government are not effective for purposes of this subdivision unless received by the 
104.25 	commissioner on or before July 15 of the aid calculation year. Clerical errors in the 
104.26 	certification or use of estimates and data established as of July 15 in the aid calculation 
104.27 	year are subject to correction within the time periods allowed under subdivision 3.
104.28 	(d) In the case of an annexation, an annexation information report may be completed 
104.29 	by the annexing jurisdiction and submitted to the commissioner for purposes of this 
104.30 	subdivision if the net tax capacity of annexed area for the assessment year preceding the 
104.31 	effective date of the annexation exceeds five percent of the city's net tax capacity for the 
104.32 	same year. The form and contents of the annexation information report shall be prescribed 
104.33 	by the commissioner. The commissioner shall change the net tax capacity, the population, 
104.34 	the population decline, the commercial industrial percentage, and the transformed 
104.35 	population for the annexing jurisdiction only if the annexation information report provides 
104.36 	data the commissioner determines to be reliable for all of these factors used to compute city 
105.1 	revenue need for the annexing jurisdiction. The commissioner shall adjust the pre-1940 
105.2 	housing percentage and household size only if the entire area of an existing city or, town, 
105.3 	or unorganized territory is annexed or consolidated and only if reliable data is available 
105.4 	for all of these factors used to compute city revenue need for the annexing jurisdiction.

105.5 	EFFECTIVE DATE. This section is effective for aids payable in 2016 and thereafter.

105.6 	Sec. 5. Minnesota Statutes 2014, section 477A.015, is amended to read:
105.7 	477A.015 PAYMENT DATES.
105.8 	The commissioner of revenue shall make the payments of local government aid to 
105.9 	affected taxing authorities in two four installments on March 15, July 20 and December 26 
105.10 	15, September 15, and November 15 annually.
105.11 	When the commissioner of public safety determines that a local government has 
105.12 	suffered financial hardship due to a natural disaster, the commissioner of public safety 
105.13 	shall notify the commissioner of revenue, who shall make payments of aids under sections 
105.14 	477A.011 to 477A.014, which are otherwise due on December 26 November 15, as soon 
105.15 	as is practical after the determination is made but not before July 20.
105.16 	The commissioner may pay all or part of the payments of aids under sections 
105.17 	477A.011 to 477A.014, which are due on December 26 November 15 at any time after 
105.18 	August 15 if a local government requests such payment as being necessary for meeting its 
105.19 	cash flow needs. For aids payable in 2013 only, a city that is located in an area deemed a 
105.20 	disaster area during the month of April 2013, as defined in section 12A.02, subdivision 5, 
105.21 	shall receive its December 26, 2013 payment with its July 20, 2013 payment.

105.22 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 
105.23 	2016 and thereafter.

105.24 	Sec. 6. Minnesota Statutes 2014, section 477A.017, subdivision 2, is amended to read:
105.25 		Subd. 2.State auditor's duties. The state auditor shall prescribe uniform financial 
105.26 	accounting and reporting standards in conformity with national standards to be applicable 
105.27 	to cities and towns of more than 2,500 population and uniform reporting standards to be 
105.28 	applicable to cities and towns of less than 2,500 population.

105.29 	EFFECTIVE DATE. This section applies to reporting of financial information for 
105.30 	years ending on or after December 31, 2015.

105.31 	Sec. 7. Minnesota Statutes 2014, section 477A.017, subdivision 3, is amended to read:
106.1 		Subd. 3.Conformity. Other law to the contrary notwithstanding, in order to receive 
106.2 	distributions under sections 477A.011 to 477A.03, counties and,  cities, and towns must 
106.3 	conform to the standards set in subdivision 2 in making all financial reports required to be 
106.4 	made to the state auditor after June 30, 1984.

106.5 	EFFECTIVE DATE. This section applies to reporting of financial information for 
106.6 	years ending on or after December 31, 2015.

106.7 	Sec. 8. Minnesota Statutes 2014, section 477A.03, subdivision 2a, is amended to read:
106.8 		Subd. 2a.Cities. For aids payable in 2014, the total aid paid under section 
106.9 	477A.013, subdivision 9, is $507,598,012. The total aid paid under section 477A.013, 
106.10 	subdivision 9, is $516,898,012 for aids payable in 2015. For aids payable in 2016 and 
106.11 	thereafter, the total aid paid under section 477A.013, subdivision 9, is $519,398,012 
106.12 	$540,940,079. For aids payable in 2017 and thereafter, the total aid paid under section 
106.13 	477A.013, subdivision 9, is $564,982,145.

106.14 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 
106.15 	2016 and thereafter.

106.16 	Sec. 9. Minnesota Statutes 2014, section 477A.03, subdivision 2b, is amended to read:
106.17 		Subd. 2b.Counties. (a) For aids payable in 2014 and thereafter through 2016, 
106.18 	the total aid payable under section 477A.0124, subdivision 3, is $100,795,000. For 
106.19 	aids payable in 2017 and thereafter, the total aid payable under section 477A.0124, 
106.20 	subdivision 3, is $102,895,000. Each calendar year, $500,000 of this appropriation shall 
106.21 	be retained by the commissioner of revenue to make reimbursements to the commissioner 
106.22 	of management and budget for payments made under section 611.27. The reimbursements 
106.23 	shall be to defray the additional costs associated with court-ordered counsel under section 
106.24 	611.27. Any retained amounts not used for reimbursement in a year shall be included in 
106.25 	the next distribution of county need aid that is certified to the county auditors for the 
106.26 	purpose of property tax reduction for the next taxes payable year.
106.27 	(b) For aids payable in 2014 and thereafter through 2016, the total aid under section 
106.28 	477A.0124, subdivision 4, is $104,909,575 $129,909,575. For aids payable in 2017 and 
106.29 	thereafter, the total aid payable under section 477A.0124, subdivision 4, is $132,509,575. 
106.30 	The commissioner of revenue shall transfer to the commissioner of management and 
106.31 	budget $207,000 annually for the cost of preparation of local impact notes as required by 
106.32 	section 3.987, and other local government activities. The commissioner of revenue shall 
106.33 	transfer to the commissioner of education $7,000 annually for the cost of preparation of 
107.1 	local impact notes for school districts as required by section 3.987. The commissioner of 
107.2 	revenue shall deduct the amounts transferred under this paragraph from the appropriation 
107.3 	under this paragraph. The amounts transferred are appropriated to the commissioner of 
107.4 	management and budget and the commissioner of education respectively.

107.5 	EFFECTIVE DATE. This section is effective for aids payable in 2016 and thereafter.

107.6 	Sec. 10. Minnesota Statutes 2014, section 477A.03, subdivision 2c, is amended to read:
107.7 		Subd. 2c.Towns and unorganized territories. For aids payable in 2014 2016 
107.8 	and thereafter, the total aids paid under section 477A.013, subdivision 1, is limited to 
107.9 	$10,000,000 $12,000,000. For aids payable in 2015 and thereafter, the total aids paid 
107.10 	under section 477A.013, subdivision 1, is limited to the amount certified to be paid in 
107.11 	the previous year.

107.12 	EFFECTIVE DATE. This section is effective for aids payable in 2016 and thereafter.

107.13 	Sec. 11. Minnesota Statutes 2014, section 477A.12, subdivision 1, is amended to read:
107.14 		Subdivision 1.Types of land; payments.  The following amounts are annually 
107.15 	appropriated to the commissioner of natural resources from the general fund for transfer 
107.16 	to the commissioner of revenue. The commissioner of revenue shall pay the transferred 
107.17 	funds to counties as required by sections 477A.11 to 477A.14. The amounts, based on the 
107.18 	acreage as of July 1 of each year prior to the payment year, are:
107.19 	(1) $5.133 multiplied by (i) the total number of acres of acquired natural resources 
107.20 	land or, at the county's option three-fourths of one percent of the appraised value of all 
107.21 	acquired natural resources land in the county, whichever is greater; and (ii) the total 
107.22 	number of acres in the county that were purchased by a federally recognized Indian tribe 
107.23 	with funding provided under section 97A.056;
107.24 	(2) $5.133, multiplied by the total number of acres of transportation wetland or, at 
107.25 	the county's option, three-fourths of one percent of the appraised value of all transportation 
107.26 	wetland in the county, whichever is greater;
107.27 	(3) $5.133, multiplied by the total number of acres of wildlife management land, or, 
107.28 	at the county's option, three-fourths of one percent of the appraised value of all wildlife 
107.29 	management land in the county, whichever is greater;
107.30 	(4) 50 percent of the dollar amount as determined under clause (1), multiplied by 
107.31 	the number of acres of military refuge land in the county;
107.32 	(5) $1.50 $2, multiplied by the number of acres of county-administered other natural 
107.33 	resources land in the county;
108.1 	(6) $5.133, multiplied by the total number of acres of land utilization project land 
108.2 	in the county;
108.3 	(7) $1.50 $2, multiplied by the number of acres of commissioner-administered other 
108.4 	natural resources land in the county; and
108.5 	(8) without regard to acreage, and notwithstanding the rules adopted under section 
108.6 	84A.55, $300,000 for local assessments under section 84A.55, subdivision 9, that shall be 
108.7 	divided and distributed to the counties containing state-owned lands within a conservation 
108.8 	area in proportion to each county's percentage of the total annual ditch assessments.; and
108.9 	(9) without regard to acreage, and notwithstanding the rules adopted under section 
108.10 	84A.55, $300,000 for past unpaid local assessments under section 84A.55, subdivision 9, 
108.11 	shall be distributed to the counties containing state-owned lands within a conservation 
108.12 	area in proportion to each county's percentage of the total past unpaid ditch assessments. 
108.13 	The payments shall be made for aids payable in calendar years 2015 through 2024. The 
108.14 	payments made to counties under this paragraph shall be considered the final payment 
108.15 	for this purpose.
108.16 	The commissioner of natural resources shall certify the number of acres and appraised 
108.17 	values for wildlife management lands under clause (3) for calendar year 2013 to the 
108.18 	commissioner of revenue by June 15, 2014. The commissioner of revenue shall make the 
108.19 	payment for any positive difference in the 2013 payment under clause (3) by June 30, 2014.

108.20 	EFFECTIVE DATE. Changes to clause (1) are effective for aids payable in 
108.21 	calendar year 2017 and thereafter. Changes to clauses (5), (7), and (9) are effective for 
108.22 	aids payable in calendar year 2015 and thereafter.

108.23 	Sec. 12. Minnesota Statutes 2014, section 477A.12, subdivision 2, is amended to read:
108.24 		Subd. 2.Procedure. (a) Each county auditor shall certify to the Department of 
108.25 	Natural Resources during July of each year prior to the payment year the number of acres 
108.26 	of county-administered other natural resources land within the county. The Department of 
108.27 	Natural resources may, in addition to the certification of acreage, require descriptive lists 
108.28 	of land so certified. The commissioner of natural resources shall determine and certify to 
108.29 	the commissioner of revenue by March 1 of the payment year:
108.30 	(1) the number of acres and most recent appraised value of acquired natural 
108.31 	resources land, wildlife management land, and military refuge land within each county;
108.32 	(2) the number of acres of commissioner-administered natural resources land within 
108.33 	each county;
109.1 	(3) the number of acres of county-administered other natural resources land within 
109.2 	each county, based on the reports filed by each county auditor with the commissioner 
109.3 	of natural resources; and
109.4 	(4) the number of acres of land utilization project land within each county; and
109.5 	(5) the number of acres within each county purchased by a federally recognized 
109.6 	Indian tribe with funding provided under section 97A.056.
109.7 	(b) The commissioner of transportation shall determine and certify to the 
109.8 	commissioner of revenue by March 1 of the payment year the number of acres of 
109.9 	transportation wetland and the appraised value of the land, but only if it exceeds 500 
109.10 	acres in a county.
109.11 	(c) Each auditor of a county that contains state-owned lands within a conservation 
109.12 	area shall determine and certify to the commissioner of natural resources by May 31 of 
109.13 	the payment year, the county's ditch assessments for state-owned lands subject to section 
109.14 	84A.55, subdivision 9. A joint certification for two or more counties may be submitted to 
109.15 	the commissioner of natural resources through the Consolidated Conservation Counties 
109.16 	Joint Powers Board. The commissioner of natural resources shall certify the ditch 
109.17 	assessments to the commissioner of revenue by June 15 of the payment year. The 
109.18 	commissioner of natural resources shall certify the ditch assessments under this paragraph 
109.19 	for payment year 2013 by June 15, 2014. The commissioner of revenue shall make the 
109.20 	payment for 2013 by June 30, 2014.
109.21 	(d) The commissioner of revenue shall determine the distributions provided for in this 
109.22 	section using: (1) the number of acres and appraised values certified by the commissioner 
109.23 	of natural resources and the commissioner of transportation by March 1 of the payment 
109.24 	year; and (2) ditch assessments under paragraph (c), by July 15 of the payment year.

109.25 	EFFECTIVE DATE. This section is effective for certifications made in 2016 and 
109.26 	thereafter.

109.27 	Sec. 13. Minnesota Statutes 2014, section 477A.13, is amended to read:
109.28 	477A.13 TIME OF PAYMENT, DEDUCTIONS.
109.29 	Payments to the counties of the amounts determined under section 477A.12 must 
109.30 	be made by the commissioner of revenue from the general fund at the time provided in 
109.31 	section 477A.015 for the first second installment of local government aid.

109.32 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 
109.33 	2016 and thereafter.

110.1 	Sec. 14. Minnesota Statutes 2014, section 477A.15, is amended to read:
110.2 	477A.15 TACONITE AID REIMBURSEMENT.
110.3 	Any school district in which is located property which had been entitled to a reduction 
110.4 	of tax pursuant to Minnesota Statutes 1978, section 273.135, subdivision 2, clause (c), 
110.5 	shall receive in 1981 and subsequent years an amount equal to the amount it received in 
110.6 	1980 pursuant to Minnesota Statutes 1978, section 298.28, subdivision 1, clause (3)(b). 
110.7 	Payments shall be made pursuant to this section and section 126C.48, subdivision 8, 
110.8 	paragraph (5), by the commissioner of revenue to the taxing jurisdictions on the date in 
110.9 	each calendar year when the first second installment is paid under section 477A.015.

110.10 	EFFECTIVE DATE. This section is effective for payments made in calendar 
110.11 	year 2016 and thereafter.

110.12 	Sec. 15. Minnesota Statutes 2014, section 477A.20, is amended to read:
110.13 	477A.20 DEBT SERVICE AID; LEWIS AND CLARK JOINT POWERS 
110.14 	BOARDCITY OF WORTHINGTON.
110.15 	(a) The Lewis and Clark Joint Powers Board The city of Worthington is eligible to 
110.16 	receive an aid distribution under this section equal to (1) the principal and interest payable 
110.17 	in the succeeding calendar year for bonds issued under section 469.194 minus the sum of 
110.18 	(2) the combined adjusted net tax capacity of Rock County and Nobles County for the 
110.19 	assessment year prior to the aid payable year multiplied by 1.5 percent and (3) 50 percent 
110.20 	of any federal aid received to fund the project in the calendar year the total local share. For 
110.21 	purposes of this section, the "total local share" is as follows: the city of Worthington shall 
110.22 	pay $300,000, the city of Luverne shall pay $100,000, Rock County shall pay $50,000, and 
110.23 	Nobles County shall pay $50,000. Each municipality other than the city of Worthington 
110.24 	shall pay the amount indicated to the city of Worthington by July 1 of the year following 
110.25 	the year in which the bonds were issued and in each year thereafter until all principal 
110.26 	and interest has been paid. If a jurisdiction fails to pay the amount as indicated, the aid 
110.27 	reductions for that municipality under section 477A.21 shall be made. The commissioner 
110.28 	of revenue shall add the amount of any aid reduction to the aid distribution under this 
110.29 	section. The Board city of Worthington shall certify to the commissioner of revenue any 
110.30 	federal aid allocated to the project for the calendar year and the principal and interest due 
110.31 	in the succeeding calendar year by June 1 of the aid payable year. The commissioner of 
110.32 	revenue shall calculate the aid payable under this section and certify the amount payable 
110.33 	before July 1 of the aid distribution year. The commissioner shall pay the aid under this 
110.34 	section to the board city of Worthington at the times specified for payments of local 
111.1 	government aid in section 477A.015. An amount sufficient to pay the state aid authorized 
111.2 	under this section is annually appropriated to the commissioner from the general fund.
111.3 	(b) The board must allocate the aid to the municipalities issuing bonds under section 
111.4 	469.194 in proportion to their principal and interest payments.
111.5 	(c) If the deduction under paragraph (a), clause (3), eliminates the aid payment 
111.6 	under this section in a calendar year, then the excess of the deduction must be carried 
111.7 	over and used to reduce the principal and interest in the succeeding year or years used to 
111.8 	calculate aid under paragraph (a).
111.9 	(d) If federal grants and aid received for the project, not deducted under paragraph 
111.10 	(a), clause (3), exceed the total debt service payments for bonds issued under section 
111.11 	469.194, other than payments made with state aid under this section, the joint powers 
111.12 	board must repay any excess to the commissioner of revenue for deposit in the general 
111.13 	fund. The repayment may not exceed the sum of state aid payments under this section and 
111.14 	any other grants made by the state for the project.
111.15 	(e) (b) This section expires at the earlier of January 1, 2039, or when the bonds 
111.16 	authorized under section 469.194 have been paid or defeased.

111.17 	EFFECTIVE DATE. This section is effective for aids payable in 2016 and thereafter.

111.18 	Sec. 16. [477A.21] AID REDUCTIONS.
111.19 	If a municipality fails to pay the amount indicated in section 477A.20, paragraph (a), 
111.20 	the following aid reduction for that municipality must be made for that year:
111.21 	(1) for the city of Luverne, the aid payable under section 477A.013, subdivision 
111.22 	9, shall be reduced by $100,000;
111.23 	(2) for Rock County, the aid payable under section 477A.0124, subdivision 3, shall 
111.24 	be reduced by $50,000; and
111.25 	(3) for Nobles County, the aid payable under section 477A.0124, subdivision 3, shall 
111.26 	be reduced by $50,000.
111.27 	The amount of the aid reductions under this section shall cancel to the general fund.

111.28 	EFFECTIVE DATE. This section is effective for aids payable in 2016 and thereafter.

111.29 	Sec. 17. Laws 2001, First Special Session chapter 5, article 3, section 86, is amended 
111.30 	to read:
111.31 	Sec. 86. RED RIVER WATERSHED MANAGEMENT BOARD; PAYMENT 
111.32 	IN LIEU OF TAXES.
 112.1 	(a) The Red River watershed management board may spend money from its general 
112.2 	fund to compensate counties and townships for lost tax revenue from land that becomes 
112.3 	tax exempt after it is acquired by the board or a member watershed district for flood 
112.4 	damage reduction project. The amount that may be paid under this section to a county 
112.5 	or township must not exceed the tax that was payable to that taxing jurisdiction on the 
112.6 	land in the last taxes payable year before the land became exempt due to the acquisition, 
112.7 	not to exceed $4 $5.133 per acre, multiplied by 20. This total amount may be paid in one 
112.8 	payment, or in equal annual installments over a period that does not exceed 20 years. A 
112.9 	member watershed district of the Red River management board may spend money from its 
112.10 	construction fund for the purposes described in this section.
112.11 	(b) For the purposes of this section, "Red River watershed management board" 
112.12 	refers to the board established by Laws 1976, chapter 162, section 1, as amended by Laws 
112.13 	1982, chapter 474, section 1, Laws 1983, chapter 338, section 1, Laws 1989 First Special 
112.14 	Session chapter 1, article 5, section 45, Laws 1991, chapter 167, section 1, and Laws 
112.15 	1998, chapter 389, article 3, section 29.

112.16 	EFFECTIVE DATE. This section is effective for aids payable in calendar year 
112.17 	2015 and thereafter.

112.18 	Sec. 18. 2013 CITY AID PENALTY FORGIVENESS; CITY OF OSLO.
 112.19 	Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the city of 
112.20 	Oslo shall receive the portion of its aid payment for calendar year 2013 under Minnesota 
112.21 	Statutes, section 477A.013, that was withheld under Minnesota Statutes, section 
112.22 	477A.017, subdivision 3, provided that the state auditor certifies to the commissioner 
112.23 	of revenue that it received audited financial statements from the city for calendar year 
112.24 	2012 by December 31, 2013. The commissioner of revenue shall make a payment of 
112.25 	$37,473.50 with the first payment of aids under Minnesota Statutes, section 477A.015. 
112.26 	$37,473.50 is appropriated from the general fund to the commissioner of revenue in fiscal 
112.27 	year 2016 to make this payment.

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

112.29 	Sec. 19. 2014 AID PENALTY FORGIVENESS.
 112.30 	(a) Notwithstanding Minnesota Statutes, section 477A.017, subdivision 3, the cities 
112.31 	of Dundee, Jeffers, and Woodstock shall receive all of its calendar year 2014 aid payment 
112.32 	that was withheld under Minnesota Statutes, section 477A.017, subdivision 3, provided 
112.33 	that the state auditor certifies to the commissioner of revenue that the city complied with 
113.1 	all reporting requirements under Minnesota Statutes, section 477A.017, subdivision 3, for 
113.2 	calendar years 2013 and 2014 by June 1, 2015.
113.3 	(b) The commissioner of revenue shall make payment to each city no later than June 
113.4 	30, 2015. Up to $101,570 of the fiscal year 2015 appropriation for local government aid is 
113.5 	available for the payment under this section.

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

113.7 	ARTICLE 6
113.8 	WORKFORCE HOUSING

113.9 	Section 1. [116J.549] WORKFORCE HOUSING TAX CREDIT.
113.10 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms 
113.11 	have the meanings given.
113.12 	(b) "City" means a statutory or home rule charter city.
113.13 	(c) "Eligible project area" means an area that meets the following criteria:
113.14 	(1) a census block with a population density over 200 persons per square mile 
113.15 	according to the most recent United States census data available;
113.16 	(2) located in a city with a population greater than 1,500;
113.17 	(3) having a median number of full-time jobs of at least 500 for the last five years;
113.18 	(4) the average vacancy rate for rental housing located in the municipality and in 
113.19 	any statutory or home rule charter city located within 15 miles or less of the boundaries 
113.20 	of the municipality has been four percent or less for at least the immediately preceding 
113.21 	two-year period; 
113.22 	(5) located in an area served by a joint county-city economic development authority 
113.23 	or located in an area outside the following counties: Anoka, Benton, Carver, Chisago, 
113.24 	Dakota, Hennepin, Isanti, Olmsted, Ramsey, Scott, Sherburne, Stearns, Washington, 
113.25 	and Wright; and
113.26 	(6) fewer than four market rate residential rental units per 1,000 residents were 
113.27 	constructed in the city in the last ten years without government financing, grants, or other 
113.28 	subsidies, other than subsidies under this section or section 469.175, subdivision 3.
113.29 	(d) "Joint county-city economic development authority" means an economic 
113.30 	development authority, formed under Laws 1988, chapter 516, section 1, as a joint 
113.31 	partnership between a city and county and excluding those established by the county only.
113.32 	(e) "Market rate residential rental properties" means properties that are rented at 
113.33 	market value and excludes: (1) properties constructed with financial assistance requiring 
113.34 	the property to be occupied by residents that meet income limits under federal or state 
114.1 	law of initial occupancy; and (2) properties constructed with federal, state, or local flood 
114.2 	recovery assistance, regardless of whether that assistance imposed income limits as a 
114.3 	condition of receiving assistance.
114.4 	(f) "Officer" means a person elected or appointed by the board of directors to 
114.5 	manage the daily operations of a business.
114.6 	(g) "Principal" means a person having authority to act on behalf of a business.
114.7 	(h) "Qualified investment" means a cash investment or the fair market value 
114.8 	equivalent for common stock, land, a partnership or membership interest, preferred 
114.9 	stock, debt with mandatory conversion to equity, or an equivalent ownership interest as 
114.10 	determined by the commissioner that is made in a qualified workforce housing project.
114.11 	(i) "Qualified project investor" means an investor who has been certified by the 
114.12 	commissioner under subdivision 2.
114.13 	(j) "Qualifying workforce housing project" means a project:
114.14 	(1) for market rate residential rental properties with a minimum of three dwelling 
114.15 	units;
114.16 	(2) with a cost per unit of no more than $150,000 and no less than $75,000;
114.17 	(3) located in an eligible project area;
114.18 	(4) that has more than 50 percent nonstate funding proposed to fund the project; and
114.19 	(5) that has been designated by the commissioner as a qualifying workforce housing 
114.20 	project.
114.21 		Subd. 2.Qualified project investor tax credits. (a) A credit of up to $1,000,000 is 
114.22 	allowed against the tax imposed under chapter 290 for a taxpayer that makes a qualified 
114.23 	investment in a qualified workforce housing project equal to 33 percent of the amount of 
114.24 	the qualified investment. 
114.25 	(b) The credit under this subdivision is allowed in the taxable year that the qualified 
114.26 	workforce housing project has housing units that are certified for occupancy by the 
114.27 	Department of Labor and Industry or a city inspector.
114.28 	(c) The commissioner must not allocate more than $5,000,000 in credits to qualified 
114.29 	project investors for taxable years beginning after December 31, 2015, and before January 
114.30 	1, 2017, and must not allocate more than $7,000,000 in credits to qualified project 
114.31 	investors for taxable years beginning after December 31, 2016, and before January 1, 
114.32 	2022. The commissioner must not allocate more than 33 percent of qualified project 
114.33 	investor tax credits to the same qualified workforce housing project.
114.34 	(d) Applications for tax credits for a taxable year must be made available by 
114.35 	the commissioner by November 1 of the prior calendar year. The commissioner must 
114.36 	make every effort to provide applications and relevant data to applicants in a simple, 
115.1 	concise manner using plain language. Tax credits must be allocated to qualified project 
115.2 	investors in the order that the tax credit request applications are filed, except where 
115.3 	the commissioner determines the investment is circumventing the spirit of the law or 
115.4 	where little or no local economic growth would occur as a result of the investment. The 
115.5 	commissioner must approve or reject a tax credit request application within 15 days of 
115.6 	receiving the application. The investment specified in the application must be made within 
115.7 	60 days of the allocation of the credit. If the investment is not made within 60 days, the 
115.8 	credit allocation is canceled. A qualified project investor who fails to invest as specified in 
115.9 	the application must notify the commissioner immediately and no later than five business 
115.10 	days after the expiration of the 60-day investment period. The commissioner may require 
115.11 	an application fee for the applications submitted under this subdivision.
115.12 	(e) All tax credit request applications filed with the department on the same day 
115.13 	must be treated as having been filed contemporaneously. If two or more qualified project 
115.14 	investors file tax credit request applications on the same day, and the aggregate amount of 
115.15 	credit allocation claims exceeds the aggregate limit of credits under this section or the lesser 
115.16 	amount of credits that remain unallocated on that day, then the credits must be allocated 
115.17 	among the qualified project investors who filed on that day on a pro rata basis with respect 
115.18 	to the amounts claimed. The pro rata allocation for any one qualified project investor is the 
115.19 	product obtained by multiplying a fraction, the numerator of which is the amount of the 
115.20 	credit allocation claim filed on behalf of a qualified project investor and the denominator 
115.21 	of which is the total of all credit allocation claims filed on behalf of all applicants on that 
115.22 	day, by the amount of credits that remain unallocated on that day for the taxable year.
115.23 	(f) If a credit allocation has been granted to the qualified project investor and the 
115.24 	qualified project investor has made the investment specified in the application as required 
115.25 	under paragraph (d), the commissioner must issue a credit certificate to the taxpayer 
115.26 	designated in the application. The credit certificate must state the amount of the credit. 
115.27 	The commissioner must notify the commissioner of revenue of credit certificates issued 
115.28 	under this subdivision.
115.29 	(g) The commissioner of revenue shall prescribe the manner in which the credit 
115.30 	may be issued or claimed.
115.31 		Subd. 3.Transfer and revocation of credits. (a) A tax credit under this section 
115.32 	is not transferable to any other taxpayer. Credits passed through to partners, members, 
115.33 	shareholders, or owners are not considered transfers for purposes of this subdivision.
115.34 	(b) If the commissioner discovers that a qualified project investor did not meet the 
115.35 	eligibility requirements for the tax credits under this section after the credits have been 
115.36 	allocated, the commissioner may determine that credit allocated is revoked and must be 
116.1 	repaid by the investor. The commissioner must notify the commissioner of revenue of 
116.2 	every credit revoked and subject to full or partial repayment under this section.
116.3 		Subd. 4.Reporting. Beginning in 2017, the commissioner must annually report 
116.4 	by March 15 to the chairs and ranking minority members of the committees in the senate 
116.5 	and house of representatives with jurisdiction over taxes and economic development, in 
116.6 	compliance with sections 3.195 and 3.197, on tax credits issued under this section. The 
116.7 	report must include:
116.8 	(1) information about the availability of workforce housing in greater Minnesota;
116.9 	(2) information from employers and communities in greater Minnesota about 
116.10 	whether or not workforce housing needs are being met;
116.11 	(3) which projects have been funded by the workforce housing tax credit and 
116.12 	whether previously funded projects have created economic growth;
116.13 	(4) any suggested legislation to accelerate construction of workforce housing;
116.14 	(5) the number and amount of tax credits issued and the identity of the recipients;
116.15 	(6) the number and amount of tax credits revoked under subdivision 3;
116.16 	(7) the location, total cost of, and expected rent to be received as a result of 
116.17 	qualifying workforce housing projects funded under this section; and
116.18 	(8) any other relevant information needed to evaluate the effect of the workforce 
116.19 	housing tax credits.

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

116.22 	Sec. 2. Minnesota Statutes 2014, section 290.06, is amended by adding a subdivision 
116.23 	to read:
116.24 		Subd. 38.Workforce housing tax credit. (a) A taxpayer is allowed a credit against 
116.25 	the tax under this chapter equal to the amount certified by the commissioner of employment 
116.26 	and economic development under section 116J.549 to the  taxpayer for the taxable year.
116.27 	(b) Credits allowed to a partnership, limited liability company taxed as a partnership, 
116.28 	corporation, or multiple owners of property are passed through to the partners, members, 
116.29 	shareholders, or owners, respectively, pro rata to each partner, member, shareholder, or 
116.30 	owner based on that person's share of the entity's income for the taxable year.
116.31 	(c) If the amount of the credit that the taxpayer is eligible to receive under this 
116.32 	subdivision exceeds the liability for tax under this chapter, the commissioner shall 
116.33 	refund the excess to the taxpayer. For purposes of this subdivision, "liability for tax" 
116.34 	means the tax imposed under this chapter for the taxable year reduced by the sum of the 
116.35 	nonrefundable credits allowed under this chapter.

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

117.3 	Sec. 3. Minnesota Statutes 2014, section 469.174, subdivision 12, is amended to read:
117.4 		Subd. 12.Economic development district. "Economic development district" 
117.5 	means a type of tax increment financing district which consists of any project, or portions 
117.6 	of a project, which the authority finds to be in the public interest because:
117.7 	(1) it will discourage commerce, industry, or manufacturing from moving their 
117.8 	operations to another state or municipality; or
117.9 	(2) it will result in increased employment in the state; or
117.10 	(3) it will result in preservation and enhancement of the tax base of the state; or
117.11 	(4) it satisfies the requirements of a workforce housing project under section 
117.12 	469.176, subdivision 4c, paragraph (d).

117.13 	EFFECTIVE DATE. This section is effective for districts for which the request for 
117.14 	certification is made after June 30, 2015.

117.15 	Sec. 4. Minnesota Statutes 2014, section 469.175, subdivision 3, is amended to read:
117.16 		Subd. 3.Municipality approval. (a) A county auditor shall not certify the original 
117.17 	net tax capacity of a tax increment financing district until the tax increment financing plan 
117.18 	proposed for that district has been approved by the municipality in which the district 
117.19 	is located. If an authority that proposes to establish a tax increment financing district 
117.20 	and the municipality are not the same, the authority shall apply to the municipality in 
117.21 	which the district is proposed to be located and shall obtain the approval of its tax 
117.22 	increment financing plan by the municipality before the authority may use tax increment 
117.23 	financing. The municipality shall approve the tax increment financing plan only after a 
117.24 	public hearing thereon after published notice in a newspaper of general circulation in the 
117.25 	municipality at least once not less than ten days nor more than 30 days prior to the date 
117.26 	of the hearing. The published notice must include a map of the area of the district from 
117.27 	which increments may be collected and, if the project area includes additional area, a map 
117.28 	of the project area in which the increments may be expended. The hearing may be held 
117.29 	before or after the approval or creation of the project or it may be held in conjunction with 
117.30 	a hearing to approve the project.
117.31 	(b) Before or at the time of approval of the tax increment financing plan, the 
117.32 	municipality shall make the following findings, and shall set forth in writing the reasons 
117.33 	and supporting facts for each determination:
118.1 	(1) that the proposed tax increment financing district is a redevelopment district, a 
118.2 	renewal or renovation district, a housing district, a soils condition district, or an economic 
118.3 	development district; if the proposed district is a redevelopment district or a renewal or 
118.4 	renovation district, the reasons and supporting facts for the determination that the district 
118.5 	meets the criteria of section 469.174, subdivision 10, paragraph (a), clauses (1) and (2), or 
118.6 	subdivision 10a, must be documented in writing and retained and made available to the 
118.7 	public by the authority until the district has been terminated;
118.8 	(2) that, in the opinion of the municipality:
118.9 	(i) the proposed development or redevelopment would not reasonably be expected to 
118.10 	occur solely through private investment within the reasonably foreseeable future; and
118.11 	(ii) the increased market value of the site that could reasonably be expected to occur 
118.12 	without the use of tax increment financing would be less than the increase in the market 
118.13 	value estimated to result from the proposed development after subtracting the present 
118.14 	value of the projected tax increments for the maximum duration of the district permitted 
118.15 	by the plan. The requirements of this item do not apply if the district is a housing district;
118.16 	(3) that the tax increment financing plan conforms to the general plan for the 
118.17 	development or redevelopment of the municipality as a whole;
118.18 	(4) that the tax increment financing plan will afford maximum opportunity, 
118.19 	consistent with the sound needs of the municipality as a whole, for the development or 
118.20 	redevelopment of the project by private enterprise;
118.21 	(5) that the municipality elects the method of tax increment computation set forth in 
118.22 	section 469.177, subdivision 3, paragraph (b), if applicable.
118.23 	(c) When the municipality and the authority are not the same, the municipality shall 
118.24 	approve or disapprove the tax increment financing plan within 60 days of submission by the 
118.25 	authority. When the municipality and the authority are not the same, the municipality may 
118.26 	not amend or modify a tax increment financing plan except as proposed by the authority 
118.27 	pursuant to subdivision 4. Once approved, the determination of the authority to undertake 
118.28 	the project through the use of tax increment financing and the resolution of the governing 
118.29 	body shall be conclusive of the findings therein and of the public need for the financing.
118.30 	(d) For a district that is subject to the requirements of paragraph (b), clause (2), 
118.31 	item (ii), the municipality's statement of reasons and supporting facts must include all of 
118.32 	the following:
118.33 	(1) an estimate of the amount by which the market value of the site will increase 
118.34 	without the use of tax increment financing;
118.35 	(2) an estimate of the increase in the market value that will result from the 
118.36 	development or redevelopment to be assisted with tax increment financing; and
119.1 	(3) the present value of the projected tax increments for the maximum duration of 
119.2 	the district permitted by the tax increment financing plan.
119.3 	(e) For purposes of this subdivision, "site" means the parcels on which the 
119.4 	development or redevelopment to be assisted with tax increment financing will be located.
119.5 	(f) Before or at the time of approval of the tax increment financing plan for a district 
119.6 	to be used to fund a workforce housing project under section 469.176, subdivision 4c, 
119.7 	paragraph (d), the municipality shall make the following findings and shall set forth in 
119.8 	writing the reasons and supporting facts for each determination:
119.9 	(1) the city has a population greater than 1,500;
119.10 	(2) having a median number of full-time jobs of at least 500 for the last five years;
119.11 	(3) located in a census block with a population density over 200 persons per square 
119.12 	mile, according to the most recent United States census data available;
119.13 	(4) located in an area served by a joint county-city economic development authority 
119.14 	or outside the following counties: Anoka, Benton, Carver, Chisago, Dakota, Hennepin, 
119.15 	Isanti, Olmsted, Ramsey, Scott, Sherburne, Stearns, Washington, and Wright;
119.16 	(5) the average vacancy rate for rental housing located in the municipality, and in 
119.17 	any statutory or home rule charter city located within 15 miles or less of the boundaries 
119.18 	of the municipality, has been four percent or less for at least the immediately preceding 
119.19 	two-year period;
119.20 	(6) at least one business located in the municipality, or within 15 miles of the 
119.21 	municipality, that employs a minimum of 20 full-time equivalent employees in aggregate 
119.22 	has provided a written statement to the municipality indicating that the lack of available 
119.23 	rental housing has impeded their ability to recruit and hire employees; 
119.24 	(7) fewer than four market rate residential rental units per 1,000 residents were 
119.25 	constructed in the city in the last ten years without government financing, grants, or other 
119.26 	subsidies, other than subsidies under this section; and
119.27 	(8) the municipality and the development authority intend to use increments from 
119.28 	the district for the development of market rate residential rental properties and includes 
119.29 	new modular homes or new manufactured homes, new manufactured homes on leased 
119.30 	land, or in a manufacturer's home park to serve employees or businesses located in the 
119.31 	municipality or surrounding area.
119.32 	For purposes of this section: (1) "joint county-city economic development authority" 
119.33 	means an economic development authority, formed under Laws 1988, chapter 516, section 
119.34 	1, as a joint partnership between a city and county and excluding those established by the 
119.35 	county only; and (2) "market rate residential rental properties" means properties that are 
119.36 	rented at market value and excludes: (i) properties constructed with financial assistance 
120.1 	requiring the property to be occupied by residents that meet income limits under federal or 
120.2 	state law of initial occupancy; and (ii) properties constructed with federal, state, or local 
120.3 	flood recovery assistance, regardless of whether that assistance imposed income limits as a 
120.4 	condition of receiving assistance.
120.5 	The authority to request certification of districts under this section expires June 
120.6 	30, 2020.

120.7 	EFFECTIVE DATE. This section is effective for districts for which the request for 
120.8 	certification is made after June 30, 2015.

120.9 	Sec. 5. Minnesota Statutes 2014, section 469.176, subdivision 4c, is amended to read:
120.10 		Subd. 4c.Economic development districts. (a) Revenue derived from tax increment 
120.11 	from an economic development district may not be used to provide improvements, loans, 
120.12 	subsidies, grants, interest rate subsidies, or assistance in any form to developments 
120.13 	consisting of buildings and ancillary facilities, if more than 15 percent of the buildings and 
120.14 	facilities (determined on the basis of square footage) are used for a purpose other than:
120.15 	(1) the manufacturing or production of tangible personal property, including 
120.16 	processing resulting in the change in condition of the property;
120.17 	(2) warehousing, storage, and distribution of tangible personal property, excluding 
120.18 	retail sales;
120.19 	(3) research and development related to the activities listed in clause (1) or (2);
120.20 	(4) telemarketing if that activity is the exclusive use of the property;
120.21 	(5) tourism facilities; or
120.22 	(6) space necessary for and related to the activities listed in clauses (1) to (5); or
120.23 	(7) a workforce housing project that satisfies the requirements of paragraph (d).
120.24 	(b) Notwithstanding the provisions of this subdivision, revenues derived from tax 
120.25 	increment from an economic development district may be used to provide improvements, 
120.26 	loans, subsidies, grants, interest rate subsidies, or assistance in any form for up to 15,000 
120.27 	square feet of any separately owned commercial facility located within the municipal 
120.28 	jurisdiction of a small city, if the revenues derived from increments are spent only to 
120.29 	assist the facility directly or for administrative expenses, the assistance is necessary to 
120.30 	develop the facility, and all of the increments, except those for administrative expenses, 
120.31 	are spent only for activities within the district.
120.32 	(c) A city is a small city for purposes of this subdivision if the city was a small city 
120.33 	in the year in which the request for certification was made and applies for the rest of 
120.34 	the duration of the district, regardless of whether the city qualifies or ceases to qualify 
120.35 	as a small city.
121.1 	(d) A project qualifies as a workforce housing project under this subdivision if 
121.2 	increments from the district are used exclusively to assist in the acquisition of property; 
121.3 	construction of improvements; and provision of loans or subsidies, grants, interest 
121.4 	rate subsidies, public infrastructure, and related financing costs for rental housing 
121.5 	developments in the municipality, and if the governing body of the municipality made the 
121.6 	findings for the project required by section 469.175, subdivision 3, paragraph (f).

121.7 	EFFECTIVE DATE. This section is effective for districts for which the request for 
121.8 	certification is made after June 30, 2015.

121.9 	Sec. 6. Minnesota Statutes 2014, section 469.1761, is amended by adding a subdivision 
121.10 	to read:
121.11 		Subd. 5.Income limits; Minnesota Housing Finance Agency challenge program.
 121.12 	For a project receiving a loan or grant from the Minnesota Housing Finance Agency 
121.13 	challenge program under section 462A.33, the income limits under section 462A.33 are 
121.14 	substituted for the applicable income limits under subdivision 2 or 3 for the project.

121.15 	EFFECTIVE DATE. This section is effective for districts for which the request for 
121.16 	certification is made after June 30, 2015.

121.17 	ARTICLE 7
121.18 	MINERALS

121.19 	Section 1. Minnesota Statutes 2014, section 298.17, is amended to read:
121.20 	298.17 OCCUPATION TAXES TO BE APPORTIONED.
121.21 	(a) All occupation taxes paid by persons, copartnerships, companies, joint stock 
121.22 	companies, corporations, and associations, however or for whatever purpose organized, 
121.23 	engaged in the business of mining or producing iron ore or other ores, when collected 
121.24 	shall be apportioned and distributed in accordance with the Constitution of the state of 
121.25 	Minnesota, article X, section 3, in the manner following: 90 percent shall be deposited 
121.26 	in the state treasury and credited to the general fund of which four-ninths shall be used 
121.27 	for the support of elementary and secondary schools; and ten percent of the proceeds of 
121.28 	the tax imposed by this section shall be deposited in the state treasury and credited to the 
121.29 	general fund for the general support of the university.
121.30 	(b) Of the money apportioned to the general fund by this section: (1) there 
121.31 	is annually appropriated and credited to the mining environmental and regulatory 
121.32 	account in the special revenue fund an amount equal to the greater of $1,500,000 or 
122.1 	that which would have been generated by a 2-1/2 cent tax imposed by section 298.24
122.2 	on each taxable ton produced in the preceding calendar year. Money in the mining 
122.3 	environmental and regulatory account is appropriated annually to the commissioner of 
122.4 	natural resources to fund agency staff to work on environmental issues and provide 
122.5 	regulatory services for ferrous and nonferrous mining operations in this state. Payment to 
122.6 	the mining environmental and regulatory account shall be made by on July 1 annually. 
122.7 	The commissioner of natural resources shall execute an interagency agreement with 
122.8 	the Pollution Control Agency to assist with the provision of environmental regulatory 
122.9 	services such as monitoring and permitting required for ferrous and nonferrous mining 
122.10 	operations; (2) there is annually appropriated and credited to the Iron Range Resources and 
122.11 	Rehabilitation Board account in the special revenue fund an amount equal to that which 
122.12 	would have been generated by a 1.5 cent tax imposed by section 298.24 on each taxable 
122.13 	ton produced in the preceding calendar year, to be expended for the purposes of section 
122.14 	298.22; and (3) there is annually appropriated and credited to the Iron Range Resources 
122.15 	and Rehabilitation Board account in the special revenue fund for transfer to the Iron Range 
122.16 	school consolidation and cooperatively operated school account under section 298.28, 
122.17 	subdivision 7a, an amount equal to that which would have been generated by a six cent tax 
122.18 	imposed by section 298.24 on each taxable ton produced in the preceding calendar year. 
122.19 	Payment to the Iron Range Resources and Rehabilitation Board account shall be made by 
122.20 	May 15 on July 1 annually; and (4) there is annually appropriated and credited to the Iron 
122.21 	Range Resources and Rehabilitation Board account in the special revenue fund for transfer 
122.22 	to the energy efficiency and mining protection account under section 298.227, paragraph 
122.23 	(d), an amount equal to that which would have been generated by a 15 cent tax imposed 
122.24 	by section 298.24 on each taxable ton produced in the preceding year. Payment to the Iron 
122.25 	Range Resources and Rehabilitation Board account shall be made on July 1 annually.
122.26 	(c) The money appropriated pursuant to paragraph (b), clause (2), shall be used (i) 
122.27 	to provide environmental development grants to local governments located within any 
122.28 	county in region 3 as defined in governor's executive order number 60, issued on June 
122.29 	12, 1970, which does not contain a municipality qualifying pursuant to section 273.134, 
122.30 	paragraph (b), or (ii) to provide economic development loans or grants to businesses 
122.31 	located within any such county, provided that the county board or an advisory group 
122.32 	appointed by the county board to provide recommendations on economic development 
122.33 	shall make recommendations to the Iron Range Resources and Rehabilitation Board 
122.34 	regarding the loans. Payment to the Iron Range Resources and Rehabilitation Board 
122.35 	account shall be made by May 15 on July 1 annually.
123.1 	(d) Of the money allocated to Koochiching County, one-third must be paid to the 
123.2 	Koochiching County Economic Development Commission.

123.3 	EFFECTIVE DATE. This section is effective beginning with the 2015 production 
123.4 	year.

123.5 	Sec. 2. Minnesota Statutes 2014, section 298.227, is amended to read:
123.6 	298.227 TACONITE ECONOMIC DEVELOPMENT FUND.
123.7 	(a) An amount equal to that distributed pursuant to each taconite producer's taxable 
123.8 	production and qualifying sales under section 298.28, subdivision 9a, shall be held by 
123.9 	the Iron Range Resources and Rehabilitation Board in a separate taconite economic 
123.10 	development fund for each taconite and direct reduced ore producer. Money from the 
123.11 	fund for each producer shall be released by the commissioner after review by a joint 
123.12 	committee consisting of an equal number of representatives of the salaried employees and 
123.13 	the nonsalaried production and maintenance employees of that producer. The District 11 
123.14 	director of the United States Steelworkers of America, on advice of each local employee 
123.15 	president, shall select the employee members. In nonorganized operations, the employee 
123.16 	committee shall be elected by the nonsalaried production and maintenance employees. 
123.17 	The review must be completed no later than six months after the producer presents a 
123.18 	proposal for expenditure of the funds to the committee. The funds held pursuant to this 
123.19 	section may be released only for workforce development and associated public facility 
123.20 	improvement, or for acquisition of plant and stationary mining equipment and facilities 
123.21 	for the producer or for research and development in Minnesota on new mining, or 
123.22 	taconite, iron, or steel production technology, but only if the producer provides a matching 
123.23 	expenditure equal to the amount of the distribution to be used for the same purpose 
123.24 	beginning with distributions in 2014. Effective for proposals for expenditures of money 
123.25 	from the fund beginning May 26, 2007, the commissioner may not release the funds 
123.26 	before the next scheduled meeting of the board. If a proposed expenditure is not approved 
123.27 	by the board, the funds must be deposited in the Taconite Environmental Protection Fund 
123.28 	under sections 298.222 to 298.225. If a producer uses money which has been released 
123.29 	from the fund prior to May 26, 2007 to procure haulage trucks, mobile equipment, or 
123.30 	mining shovels, and the producer removes the piece of equipment from the taconite tax 
123.31 	relief area defined in section 273.134 within ten years from the date of receipt of the 
123.32 	money from the fund, a portion of the money granted from the fund must be repaid to 
123.33 	the taconite economic development fund. The portion of the money to be repaid is 100 
123.34 	percent of the grant if the equipment is removed from the taconite tax relief area within 12 
124.1 	months after receipt of the money from the fund, declining by ten percent for each of the 
124.2 	subsequent nine years during which the equipment remains within the taconite tax relief 
124.3 	area. If a taconite production facility is sold after operations at the facility had ceased, any 
124.4 	money remaining in the fund for the former producer may be released to the purchaser of 
124.5 	the facility on the terms otherwise applicable to the former producer under this section. If 
124.6 	a producer fails to provide matching funds for a proposed expenditure within six months 
124.7 	after the commissioner approves release of the funds, the funds are available for release to 
124.8 	another producer in proportion to the distribution provided and under the conditions of 
124.9 	this section. Any portion of the fund which is not released by the commissioner within 
124.10 	one year of its deposit in the fund shall be divided between the taconite environmental 
124.11 	protection fund created in section 298.223 and the Douglas J. Johnson economic protection 
124.12 	trust fund created in section 298.292 for placement in their respective special accounts. 
124.13 	Two-thirds of the unreleased funds shall be distributed to the taconite environmental 
124.14 	protection fund and one-third to the Douglas J. Johnson economic protection trust fund.
124.15 	(b)(i) Notwithstanding the requirements of paragraph (a), setting the amount of 
124.16 	distributions and the review process, an amount equal to ten cents per taxable ton of 
124.17 	production in 2007, for distribution in 2008 only, that would otherwise be distributed 
124.18 	under paragraph (a), may be used for a loan or grant for the cost of providing for a 
124.19 	value-added wood product facility located in the taconite tax relief area and in a county 
124.20 	that contains a city of the first class. This amount must be deducted from the distribution 
124.21 	under paragraph (a) for which a matching expenditure by the producer is not required. The 
124.22 	granting of the loan or grant is subject to approval by the board. If the money is provided 
124.23 	as a loan, interest must be payable on the loan at the rate prescribed in section 298.2213, 
124.24 	subdivision 3. (ii) Repayments of the loan and interest, if any, must be deposited in the 
124.25 	taconite environment protection fund under sections 298.222 to 298.225. If a loan or 
124.26 	grant is not made under this paragraph by July 1, 2012, the amount that had been made 
124.27 	available for the loan under this paragraph must be transferred to the taconite environment 
124.28 	protection fund under sections 298.222 to 298.225. (iii) Money distributed in 2008 to the 
124.29 	fund established under this section that exceeds ten cents per ton is available to qualifying 
124.30 	producers under paragraph (a) on a pro rata basis.
124.31 	(c) Repayment or transfer of money to the taconite environmental protection fund 
124.32 	under paragraph (b), item (ii), must be allocated by the Iron Range Resources and 
124.33 	Rehabilitation Board for public works projects in house legislative districts in the same 
124.34 	proportion as taxable tonnage of production in 2007 in each house legislative district, for 
124.35 	distribution in 2008, bears to total taxable tonnage of production in 2007, for distribution 
124.36 	in 2008. Notwithstanding any other law to the contrary, expenditures under this paragraph 
125.1 	do not require approval by the governor. For purposes of this paragraph, "house legislative 
125.2 	districts" means the legislative districts in existence on May 15, 2009.
125.3 	(d) An amount equal to that determined under section 298.17, paragraph (b), 
125.4 	clause (4), shall be held by the Iron Range Resources and Rehabilitation Board in a 
125.5 	separate energy efficiency and mining protection account within the taconite economic 
125.6 	development fund that is hereby created for taconite and direct reduced ore producers. 
125.7 	Funds from the account shall be released annually by the Iron Range Resources and 
125.8 	Rehabilitation Board to each producer in direct proportion to the amount of the tax paid by 
125.9 	that producer in the preceding year under section 298.01, as compared to the total amount 
125.10 	of tax paid under section 298.01 in the preceding year by all producers, provided that a 
125.11 	producer shall not be eligible for a distribution in amount greater than the amount of the 
125.12 	tax paid in the preceding year. No expenditure under this section shall be paid unless 
125.13 	approved by seven members of the Iron Range Resources and Rehabilitation Board.
125.14 	Notwithstanding any other law to the contrary, any amount allocated to the energy 
125.15 	efficiency and mining protection account does not cancel nor is eligible for transfer to 
125.16 	another account or fund.

125.17 	EFFECTIVE DATE. This section is effective beginning with the 2015 production 
125.18 	year.

125.19 	Sec. 3. Minnesota Statutes 2014, section 298.24, subdivision 1, is amended to read:
125.20 		Subdivision 1.Imposed; calculation. (a) For concentrate produced in 2013, there is 
125.21 	imposed upon taconite and iron sulphides, and upon the mining and quarrying thereof, 
125.22 	and upon the production of iron ore concentrate therefrom, and upon the concentrate so 
125.23 	produced, a tax of $2.56 per gross ton of merchantable iron ore concentrate produced 
125.24 	therefrom. The tax is also imposed upon other iron-bearing material.
125.25 	(b) For concentrates produced in 2014 and subsequent years, the tax rate shall be 
125.26 	equal to the preceding year's tax rate plus an amount equal to the preceding year's tax rate 
125.27 	multiplied by the percentage increase in the implicit price deflator from the fourth quarter 
125.28 	of the second preceding year to the fourth quarter of the preceding year. "Implicit price 
125.29 	deflator" means the implicit price deflator for the gross domestic product prepared by the 
125.30 	Bureau of Economic Analysis of the United States Department of Commerce.
125.31 	(c) An additional tax is imposed equal to three cents per gross ton of merchantable 
125.32 	iron ore concentrate for each one percent that the iron content of the product exceeds 72 
125.33 	percent, when dried at 212 degrees Fahrenheit.
125.34 	(d) The tax on taconite and iron sulphides shall be imposed on the average of the 
125.35 	production for the current year and the previous two years. The rate of the tax imposed 
126.1 	will be the current year's tax rate. This clause shall not apply in the case of the closing 
126.2 	of a taconite facility if the property taxes on the facility would be higher if this clause 
126.3 	and section 298.25 were not applicable. The tax on other iron-bearing material shall be 
126.4 	imposed on the current year production.
126.5 	(e) If the tax or any part of the tax imposed by this subdivision is held to be 
126.6 	unconstitutional, a tax of $2.56 per gross ton of merchantable iron ore concentrate 
126.7 	produced shall be imposed.
126.8 	(f) Consistent with the intent of this subdivision to impose a tax based upon the 
126.9 	weight of merchantable iron ore concentrate, the commissioner of revenue may indirectly 
126.10 	determine the weight of merchantable iron ore concentrate included in fluxed pellets by 
126.11 	subtracting the weight of the limestone, dolomite, or olivine derivatives or other basic 
126.12 	flux additives included in the pellets from the weight of the pellets. For purposes of this 
126.13 	paragraph, "fluxed pellets" are pellets produced in a process in which limestone, dolomite, 
126.14 	olivine, or other basic flux additives are combined with merchantable iron ore concentrate. 
126.15 	No subtraction from the weight of the pellets shall be allowed for binders, mineral and 
126.16 	chemical additives other than basic flux additives, or moisture.
126.17 	(g)(1) Notwithstanding any other provision of this subdivision, for the first two years 
126.18 	of a plant's commercial production of direct reduced ore from ore mined in this state, no 
126.19 	tax is imposed under this section. As used in this paragraph, "commercial production" is 
126.20 	production of more than 50,000 tons of direct reduced ore in the current year or in any prior 
126.21 	year, "noncommercial production" is production of 50,000 tons or less of direct reduced ore 
126.22 	in any year, and "direct reduced ore" is ore that results in a product that has an iron content 
126.23 	of at least 75 percent. For the third year of a plant's commercial production of direct 
126.24 	reduced ore, the rate to be applied to direct reduced ore is 25 percent of the rate otherwise 
126.25 	determined under this subdivision. For the fourth commercial production year, the rate is 
126.26 	50 percent of the rate otherwise determined under this subdivision; for the fifth commercial 
126.27 	production year, the rate is 75 percent of the rate otherwise determined under this 
126.28 	subdivision; and for all subsequent commercial production years, the full rate is imposed.
126.29 	(2) Subject to clause (1), production of direct reduced ore in this state is subject to 
126.30 	the tax imposed by this section, but if that production is not produced by a producer of 
126.31 	taconite, iron sulfides, or other iron-bearing material, the production of taconite, iron 
126.32 	sulfides, or other iron-bearing material, that is consumed in the production of direct 
126.33 	reduced iron in this state is not subject to the tax imposed by this section on taconite, 
126.34 	iron sulfides, or other iron-bearing material.
126.35 	(3) Notwithstanding any other provision of this subdivision, no tax is imposed 
126.36 	on direct reduced ore under this section during the facility's noncommercial production 
127.1 	of direct reduced ore. The taconite or iron sulphides consumed in the noncommercial 
127.2 	production of direct reduced ore is subject to the tax imposed by this section on taconite 
127.3 	and iron sulphides. Three-year average production of direct reduced ore does not 
127.4 	include production of direct reduced ore in any noncommercial year. Three-year average 
127.5 	production for a direct reduced ore facility that has noncommercial production is the 
127.6 	average of the commercial production of direct reduced ore for the current year and the 
127.7 	previous two commercial years.
127.8 	(4) This paragraph applies only to plants for which all environmental permits have 
127.9 	been obtained and construction has begun before July 1, 2008 2020.

127.10 	EFFECTIVE DATE. This section is effective for taxes based on concentrate 
127.11 	produced in 2015 and thereafter.

127.12 	Sec. 4. Minnesota Statutes 2014, section 298.24, is amended by adding a subdivision 
127.13 	to read:
127.14 		Subd. 5.TEDF; deposits redirected. (a) For concentrates produced by a plant 
127.15 	subject to a reimbursement agreement dated September 9, 2008, by and among Itasca 
127.16 	County, Essar Global Limited, and Minnesota Steel Industries LLC, the provisions of 
127.17 	sections 298.227 and 298.28, subdivision 9a, do not apply to the plant's production.
127.18 	(b) All amounts not deposited in the taconite economic development fund as a 
127.19 	result of paragraph (a) must be deposited in the Douglas J. Johnson economic protection 
127.20 	trust fund created under section 298.292.
127.21 	(c) The provisions of this subdivision expire upon certification by the commissioner 
127.22 	of employment and economic development that all requirements of the reimbursement 
127.23 	agreement, as specified in paragraph (a), are satisfied.

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

127.25 	Sec. 5. Minnesota Statutes 2014, section 298.28, subdivision 3, is amended to read:
127.26 		Subd. 3.Cities; towns. (a) 12.5 cents per taxable ton, less any amount distributed 
127.27 	under subdivision 8, and paragraph (b), must be allocated to the taconite municipal aid 
127.28 	account to be distributed as provided in section 298.282.
127.29 	(b) An amount must be allocated to towns or cities that is annually certified by 
127.30 	the county auditor of a county containing a taconite tax relief area as defined in section 
127.31 	273.134, paragraph (b), within which there is (1) an organized township if, as of January 
127.32 	2, 1982, more than 75 percent of the assessed valuation of the township consists of iron 
128.1 	ore or (2) a city if, as of January 2, 1980, more than 75 percent of the assessed valuation 
128.2 	of the city consists of iron ore.
128.3 	(c) The amount allocated under paragraph (b) will be the portion of a township's or 
128.4 	city's certified levy equal to the proportion of (1) the difference between 50 percent of 
128.5 	January 2, 1982, assessed value in the case of a township and 50 percent of the January 2, 
128.6 	1980, assessed value in the case of a city and its current assessed value to (2) the sum of 
128.7 	its current assessed value plus the difference determined in (1), provided that the amount 
128.8 	distributed shall not exceed $55 per capita in the case of a township or $75 per capita in 
128.9 	the case of a city. For purposes of this limitation, population will be determined according 
128.10 	to the 1980 decennial census conducted by the United States Bureau of the Census. If the 
128.11 	current assessed value of the township exceeds 50 percent of the township's January 2, 
128.12 	1982, assessed value, or if the current assessed value of the city exceeds 50 percent of the 
128.13 	city's January 2, 1980, assessed value, this paragraph shall not apply. For purposes of this 
128.14 	paragraph, "assessed value," when used in reference to years other than 1980 or 1982, 
128.15 	means the appropriate net tax capacities multiplied by 10.2.
128.16 	(d) In addition to other distributions under this subdivision, three cents per taxable 
128.17 	ton for distributions in 2009 must be allocated for distribution to (1) towns that are entirely 
128.18 	located within the taconite tax relief area defined in section 273.134, paragraph (b); and 
128.19 	(2) the following unorganized territories located in St. Louis County: 56-17; 58-22; 59-16; 
128.20 	59-21; 60-18; and 60-19. For distribution in 2010 through 2014 and for distribution in 
128.21 	2018 and subsequent years, the three-cent amount must be annually increased in the 
128.22 	same proportion as the increase in the implicit price deflator as provided in section 
128.23 	298.24, subdivision 1. The amount available under this paragraph will be to towns shall 
128.24 	be distributed to eligible towns on a per capita basis, provided that no town may receive 
128.25 	more than $50,000 in any year under this paragraph. Any amount of the distribution that 
128.26 	exceeds the $50,000 limitation for a town under this paragraph must be redistributed on 
128.27 	a per capita basis among the other eligible towns, to whose distributions do not exceed 
128.28 	$50,000. The amount available to unorganized territories in St. Louis County may be held 
128.29 	by the county and combined for public infrastructure projects.

128.30 	EFFECTIVE DATE. This section is effective beginning with the 2015 production 
128.31 	year.

128.32 	Sec. 6. Minnesota Statutes 2014, section 298.28, subdivision 7a, is amended to read:
128.33 		Subd. 7a.Iron Range school consolidation and cooperatively operated school 
128.34 	account. The following amounts must be allocated to the Iron Range Resources and 
129.1 	Rehabilitation Board to be deposited in the Iron Range school consolidation and 
129.2 	cooperatively operated school account that is hereby created:
129.3 	(1)(i) for distributions in 2015 through 2023, ten cents per taxable ton of the tax 
129.4 	imposed under section 298.24; and (ii) for distributions beginning in 2024, five cents per 
129.5 	taxable ton of the tax imposed under section 298.24;
129.6 	(2) the amount as determined under section 298.17, paragraph (b), clause (3);
129.7 	(3)(i) for distributions in 2015, an amount equal to two-thirds of the increased tax 
129.8 	proceeds attributable to the increase in the implicit price deflator as provided in section 
129.9 	298.24, subdivision 1, with the remaining one-third to be distributed to the Douglas J. 
129.10 	Johnson economic protection trust fund;
129.11 	(ii) for distributions in 2016, an amount equal to two-thirds of the sum of the 
129.12 	increased tax proceeds attributable to the increase in the implicit price deflator as provided 
129.13 	in section 298.24, subdivision 1, for distribution years 2015 and 2016, with the remaining 
129.14 	one-third to be distributed to the Douglas J. Johnson economic protection trust fund; and
129.15 	(iii) for distributions in 2017 and thereafter, an amount equal to two-thirds of the 
129.16 	sum of the increased tax proceeds attributable to the increase in the implicit price deflator 
129.17 	as provided in section 298.24, subdivision 1, for distribution years 2015, 2016, and 
129.18 	2017, with the remaining one-third to be distributed to the Douglas J. Johnson economic 
129.19 	protection trust fund; and
129.20 	(4) any other amount as provided by law.
129.21 	Expenditures from this account shall be made only to provide disbursements to 
129.22 	assist school districts with the payment of bonds that were issued for qualified school 
129.23 	projects, or for any other school disbursement as approved by the Iron Range Resources 
129.24 	and Rehabilitation Board. For purposes of this section, "qualified school projects" means 
129.25 	school projects within the taconite assistance area as defined in section 273.1341, that were 
129.26 	(1) approved, by referendum, after April 3, 2006; and (2) approved by the commissioner 
129.27 	of education pursuant to section 123B.71.
129.28 	Beginning in fiscal year 2019, the disbursement to school districts for payments for 
129.29 	bonds issued under section 123A.482, subdivision 9, must be increased each year to 
129.30 	offset any reduction in debt service equalization aid that the school district qualifies for in 
129.31 	that year, under section 123B.53, subdivision 6, compared with the amount the school 
129.32 	district qualified for in fiscal year 2018.
129.33 	No expenditure under this section shall be made unless approved by seven members 
129.34 	of the Iron Range Resources and Rehabilitation Board.

129.35 	EFFECTIVE DATE. This section is effective for distributions beginning in 2016 
129.36 	and thereafter.

130.1 	ARTICLE 8
130.2 	ELECTRIC GENERATION MACHINERY

130.3 	Section 1. Minnesota Statutes 2014, section 216B.1621, subdivision 2, is amended to 
130.4 	read:
130.5 		Subd. 2.Commission approval. (a) The commission shall approve an agreement 
130.6 	under this section upon finding that:
130.7 	(1) the proposed electric service power generation facility could reasonably be 
130.8 	expected to qualify for a market value exclusion under section 272.0211;
130.9 	(2) (1) the public utility has a contractual option to purchase electric power from 
130.10 	the proposed facility; and
130.11 	(3) (2) the public utility can use the output from the proposed facility to meet its 
130.12 	future need for power as demonstrated in the most recent resource plan filed with and 
130.13 	approved by the commission under section 216B.2422.
130.14 	(b) Sections 216B.03, 216B.05, 216B.06, 216B.07, 216B.16, 216B.162, and 
130.15 	216B.23 do not apply to an agreement under this section.

130.16 	EFFECTIVE DATE. This section is effective beginning with assessment year 
130.17 	2016 and thereafter.

130.18 	Sec. 2. Minnesota Statutes 2014, section 216B.164, subdivision 2a, is amended to read:
130.19 		Subd. 2a.Definitions. (a) For the purposes of this section, the following terms 
130.20 	have the meanings given them.
130.21 	(b) "Aggregated meter" means a meter located on the premises of a customer's 
130.22 	owned or leased property that is contiguous with property containing the customer's 
130.23 	designated meter.
130.24 	(c) "Capacity" means the number of megawatts alternating current (AC) at the point 
130.25 	of interconnection between a distributed generation facility and a utility's electric system.
130.26 	(d) "Cogeneration" means a combined process whereby electrical and useful thermal 
130.27 	energy are produced simultaneously.
130.28 	(e) "Contiguous property" means property owned or leased by the customer sharing 
130.29 	a common border, without regard to interruptions in contiguity caused by easements, 
130.30 	public thoroughfares, transportation rights-of-way, or utility rights-of-way.
130.31 	(f) "Customer" means the person who is named on the utility electric bill for the 
130.32 	premises.
130.33 	(g) "Designated meter" means a meter that is physically attached to the customer's 
130.34 	facility that the customer-generator designates as the first meter to which net metered 
131.1 	credits are to be applied as the primary meter for billing purposes when the customer is 
131.2 	serviced by more than one meter.
131.3 	(h) "Distributed generation" means a facility that:
131.4 	(1) has a capacity of ten megawatts or less;
131.5 	(2) is interconnected with a utility's distribution system, over which the commission 
131.6 	has jurisdiction; and
131.7 	(3) generates electricity from natural gas, renewable fuel, or a similarly clean fuel, 
131.8 	and may include waste heat, cogeneration, or fuel cell technology.
131.9 	(i) "High-efficiency distributed generation" means a distributed energy facility that 
131.10 	has a minimum efficiency of 40 percent, as calculated under Minnesota Statutes 2014, 
131.11 	section 272.0211, subdivision 1.
131.12 	(j) "Net metered facility" means an electric generation facility constructed for the 
131.13 	purpose of offsetting energy use through the use of renewable energy or high-efficiency 
131.14 	distributed generation sources.
131.15 	(k) "Renewable energy" has the meaning given in section 216B.2411, subdivision 2.
131.16 	(l) "Standby charge" means a charge imposed by an electric utility upon a distributed 
131.17 	generation facility for the recovery of costs for the provision of standby services, as 
131.18 	provided for in a utility's tariffs approved by the commission, necessary to make electricity 
131.19 	service available to the distributed generation facility.

131.20 	EFFECTIVE DATE. This section is effective beginning with assessment year 
131.21 	2016 and thereafter.

131.22 	Sec. 3. Minnesota Statutes 2014, section 216B.2424, subdivision 5, is amended to read:
131.23 		Subd. 5.Mandate. (a) A public utility, as defined in section 216B.02, subdivision 4, 
131.24 	that operates a nuclear-powered electric generating plant within this state must construct 
131.25 	and operate, purchase, or contract to construct and operate (1) by December 31, 1998, 
131.26 	50 megawatts of electric energy installed capacity generated by farm-grown closed-loop 
131.27 	biomass scheduled to be operational by December 31, 2001; and (2) by December 31, 
131.28 	1998, an additional 75 megawatts of installed capacity so generated scheduled to be 
131.29 	operational by December 31, 2002.
131.30 	(b) Of the 125 megawatts of biomass electricity installed capacity required under 
131.31 	this subdivision, no more than 55 megawatts of this capacity may be provided by a facility 
131.32 	that uses poultry litter as its primary fuel source and any such facility:
131.33 	(1) need not use biomass that complies with the definition in subdivision 1;
131.34 	(2) must enter into a contract with the public utility for such capacity, that has an 
131.35 	average purchase price per megawatt hour over the life of the contract that is equal to or 
132.1 	less than the average purchase price per megawatt hour over the life of the contract in 
132.2 	contracts approved by the Public Utilities Commission before April 1, 2000, to satisfy 
132.3 	the mandate of this section, and file that contract with the Public Utilities Commission 
132.4 	prior to September 1, 2000; and
132.5 	(3) must schedule such capacity to be operational by December 31, 2002.
132.6 	(c) Of the total 125 megawatts of biomass electric energy installed capacity required 
132.7 	under this section, no more than 75 megawatts may be provided by a single project.
132.8 	(d) Of the 75 megawatts of biomass electric energy installed capacity required under 
132.9 	paragraph (a), clause (2), no more than 33 megawatts of this capacity may be provided by 
132.10 	a St. Paul district heating and cooling system cogeneration facility utilizing waste wood 
132.11 	as a primary fuel source. The St. Paul district heating and cooling system cogeneration 
132.12 	facility need not use biomass that complies with the definition in subdivision 1.
132.13 	(e) The public utility must accept and consider on an equal basis with other biomass 
132.14 	proposals:
132.15 	(1) a proposal to satisfy the requirements of this section that includes a project that 
132.16 	exceeds the megawatt capacity requirements of either paragraph (a), clause (1) or (2), and 
132.17 	that proposes to sell the excess capacity to the public utility or to other purchasers; and
132.18 	(2) a proposal for a new facility to satisfy more than ten but not more than 20 
132.19 	megawatts of the electrical generation requirements by a small business-sponsored 
132.20 	independent power producer facility to be located within the northern quarter of the state, 
132.21 	which means the area located north of Constitutional Route No. 8 as described in section 
132.22 	161.114, subdivision 2, and that utilizes biomass residue wood, sawdust, bark, chipped 
132.23 	wood, or brush to generate electricity. A facility described in this clause is not required 
132.24 	to utilize biomass complying with the definition in subdivision 1, but must be under 
132.25 	construction by December 31, 2005.
132.26 	(f) If a public utility files a contract with the commission for electric energy installed 
132.27 	capacity that uses poultry litter as its primary fuel source, the commission must do a 
132.28 	preliminary review of the contract to determine if it meets the purchase price criteria 
132.29 	provided in paragraph (b), clause (2). The commission shall perform its review and advise 
132.30 	the parties of its determination within 30 days of filing of such a contract by a public 
132.31 	utility. A public utility may submit by September 1, 2000, a revised contract to address the 
132.32 	commission's preliminary determination.
132.33 	(g) The commission shall finally approve, modify, or disapprove no later than July 
132.34 	1, 2001, all contracts submitted by a public utility as of September 1, 2000, to meet the 
132.35 	mandate set forth in this subdivision.
133.1 	(h) If a public utility subject to this section exercises an option to increase the 
133.2 	generating capacity of a project in a contract approved by the commission prior to April 
133.3 	25, 2000, to satisfy the mandate in this subdivision, the public utility must notify the 
133.4 	commission by September 1, 2000, that it has exercised the option and include in the 
133.5 	notice the amount of additional megawatts to be generated under the option exercised. 
133.6 	Any review by the commission of the project after exercise of such an option shall be 
133.7 	based on the same criteria used to review the existing contract.
133.8 	(i) A facility specified in this subdivision qualifies for exemption from property 
133.9 	taxation under section 272.02, subdivision 45.

133.10 	EFFECTIVE DATE. This section is effective beginning with assessment year 
133.11 	2016 and thereafter.

133.12 	Sec. 4. Minnesota Statutes 2014, section 272.02, subdivision 9, is amended to read:
133.13 		Subd. 9.Personal property; exceptions. Except for the taxable personal property 
133.14 	enumerated below, all personal property and the property described in section 272.03, 
133.15 	subdivision 1, paragraphs (c) and (d), shall be exempt.
133.16 	The following personal property shall be taxable:
133.17 	(a) personal property which is part of an electric generating, transmission, or 
133.18 	distribution system or a pipeline system transporting or distributing water, gas, crude 
133.19 	oil, or petroleum products or mains and pipes used in the distribution of steam or hot or 
133.20 	chilled water for heating or cooling buildings and structures;
133.21 	(b) railroad docks and wharves which are part of the operating property of a railroad 
133.22 	company as defined in section 270.80;
133.23 	(c) personal property defined in section 272.03, subdivision 2, clause (3);
133.24 	(d) leasehold or other personal property interests which are taxed pursuant to section 
133.25 	272.01, subdivision 2; 273.124, subdivision 7; or 273.19, subdivision 1; or any other law 
133.26 	providing the property is taxable as if the lessee or user were the fee owner;
133.27 	(e) manufactured homes and sectional structures, including storage sheds, decks, 
133.28 	and similar removable improvements constructed on the site of a manufactured home, 
133.29 	sectional structure, park trailer or travel trailer as provided in section 273.125, subdivision 
133.30 	8, paragraph (f); and
133.31 	(f) flight property as defined in section 270.071.

133.32 	EFFECTIVE DATE. This section is effective beginning with assessment year 
133.33 	2016 and thereafter.

134.1 	Sec. 5. Minnesota Statutes 2014, section 272.02, subdivision 10, is amended to read:
134.2 		Subd. 10.Personal property used for pollution control. Personal property used 
134.3 	primarily for the abatement and control of air, water, or land pollution is exempt to the 
134.4 	extent that it is so used, and real property is exempt if it is used primarily for abatement 
134.5 	and control of air, water, or land pollution as part of an agricultural operation, as a part 
134.6 	of a centralized treatment and recovery facility operating under a permit issued by the 
134.7 	Minnesota Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota 
134.8 	Rules, parts 7001.0500 to 7001.0730, and 7045.0020 to 7045.1260, as a wastewater 
134.9 	treatment facility and for the treatment, recovery, and stabilization of metals, oils, 
134.10 	chemicals, water, sludges, or inorganic materials from hazardous industrial wastes, or as 
134.11 	part of an electric generation system. For purposes of this subdivision, personal property 
134.12 	includes ponderous machinery and equipment used in a business or production activity 
134.13 	that at common law is considered real property. The real or personal property of an 
134.14 	electric generation system is not eligible for an exemption under this section.
134.15 	Any taxpayer requesting exemption of all or a portion of any real property or any 
134.16 	equipment or device, or part thereof, operated primarily for the control or abatement of 
134.17 	air, water, or land pollution shall file an application with the commissioner of revenue. 
134.18 	The commissioner shall develop an electronic means to notify interested parties when 
134.19 	electric power generation facilities have filed an application. The Minnesota Pollution 
134.20 	Control Agency shall upon request of the commissioner furnish information and advice to 
134.21 	the commissioner.
134.22 	The information and advice furnished by the Minnesota Pollution Control 
134.23 	Agency must include statements as to whether the equipment, device, or real property 
134.24 	meets a standard, rule, criteria, guideline, policy, or order of the Minnesota Pollution 
134.25 	Control Agency, and whether the equipment, device, or real property is installed or 
134.26 	operated in accordance with it. On determining that property qualifies for exemption, 
134.27 	the commissioner shall issue an order exempting the property from taxation. The 
134.28 	commissioner shall develop an electronic means to notify interested parties when 
134.29 	the commissioner has issued an order exempting property from taxation under this 
134.30 	subdivision. The equipment, device, or real property shall continue to be exempt from 
134.31 	taxation as long as the order issued by the commissioner remains in effect.

134.32 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
134.33 	thereafter.

134.34 	Sec. 6. [273.129] ELECTRIC GENERATION MACHINERY; VALUATION.
135.1 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms 
135.2 	having the meanings given.
135.3 	(b) "Biomass generating system" means any device used to produce energy by the 
135.4 	direct combustion of carbon-based organisms.
135.5 	(c) "Coal generating system" means any device whose primary purpose is the 
135.6 	production of electricity derived by the direct combustion of coal to produce steam.
135.7 	(d) "Electric generation machinery" means all personal property of an electric 
135.8 	generation system, excluding solar energy generating systems and wind energy conversion 
135.9 	systems, used for the purpose of generating electricity.
135.10 	(e) "Generation capacity" means the generation rate per megawatt as follows:
135.11 	(1) $0 for hydroelectric generating systems;
135.12 	(2) $5,000 for machinery used to generate electricity from biomass, natural gas, or 
135.13 	nuclear fuel generation systems; and
135.14 	(3) $10,000 for machinery used to generate electricity from a coal or oil generation 
135.15 	system or any other fossil fuel.
135.16 	(f) "Generation rate" means the rate per kilowatt hour as follows:
135.17 	(1) $.05 for hydroelectric generating systems;
135.18 	(2) $.0525 for machinery used to generate electricity from biomass, natural gas, or 
135.19 	nuclear fuel generation systems; and
135.20 	(3) $.055 for machinery used to generate electricity from a coal or oil generation 
135.21 	system or any other fossil fuel.
135.22 	(g) "Hydroelectric generating system" means any device whose primary purpose is 
135.23 	the production of electricity derived from flowing water.
135.24 	(h) "Nameplate capacity" means the maximum rated output of a generator, prime 
135.25 	mover, or other electric power production equipment under specific conditions designated 
135.26 	by the manufacturer.
135.27 	(i) "Natural gas generating system" means any device whose primary purpose is the 
135.28 	production of electricity derived from natural gas.
135.29 	(j) "Nuclear fuel generating system" means any device whose primary purpose is 
135.30 	the production of electricity generated by the use of the thermal energy released from the 
135.31 	fission of nuclear fuel in a reactor.
135.32 	(k) "Oil generating system" means any device whose primary purpose is the 
135.33 	production of electricity derived by direct combustion of oil to produce steam.
135.34 	(l) "Primary fuel source" means the fuel source that is dominantly used by a facility 
135.35 	in the production of electricity.
136.1 	(m) "Spent fuel" means fuel that has been irradiated in a nuclear reactor to the point 
136.2 	where it is no longer useful in sustaining a nuclear reaction.
136.3 	(n) "Spent fuel tax base" means $150,000,000 per facility plus $100,000 per ton of 
136.4 	spent fuel of a nuclear generating facility.
136.5 		Subd. 2.Rates; adjustment. The generation and capacity rates as provided in 
136.6 	subdivision 1, paragraphs (e) and (f), shall be increased annually by an amount equal to the 
136.7 	percentage change in the retail price of electricity for the residential sector in Minnesota 
136.8 	for the prior year as reported by the U.S. Energy Information Administration.
136.9 		Subd. 3.Electric generation tax base. (a) The commissioner shall annually 
136.10 	calculate the electric generation tax base under this section. An electric generating system 
136.11 	with a capacity of one megawatt or less as determined under subdivision 4 shall be 
136.12 	exempt from the provisions of this section. The commissioner shall calculate the electric 
136.13 	generation tax base using the applicable capacity and generation rate based on the electric 
136.14 	generation system's primary fuel source.
136.15 	(b) The electric generation tax base for property described in subdivision 1 is equal 
136.16 	to the sum of: (1) its nameplate capacity multiplied by its generation capacity rate; (2) 
136.17 	the average of its electric energy production as reported to the commissioner of revenue 
136.18 	for the immediately preceding five years, multiplied by its generation rate; and (3) its 
136.19 	spent fuel tax base. For electric generating systems that have been operational for less 
136.20 	than the immediately preceding five years, the average of its electric energy production 
136.21 	shall be the average of its electric energy production for the time period since the facility 
136.22 	commenced operation.
136.23 	(c) For purposes of a levy based on market value, the electric generation tax base 
136.24 	shall become part of the jurisdiction's market value tax base. For all levies based on net 
136.25 	tax capacity, the electric generation tax base multiplied by two percent shall be added 
136.26 	to the jurisdiction's net tax capacity base.
136.27 		Subd. 4.Electric generating systems; size. The total capacity of an electric 
136.28 	generating system, pursuant to this section, shall be determined by combining all 
136.29 	generators of each fuel type within each facility, based on the information reported to the 
136.30 	commissioner of revenue as required under subdivision 5.
136.31 		Subd. 5.Generating systems; reports. An owner of an electric generating system 
136.32 	shall file a report with the commissioner of revenue annually on or before February 1 
136.33 	detailing: (1) the amount of electricity that was produced by each generator in the previous 
136.34 	calendar year as reported to the U.S. Energy Information Administration; and (2) the 
136.35 	location, length, and capacity of all transmission and distribution lines. The commissioner 
136.36 	shall prescribe the form of the report. The report must contain the information required by 
137.1 	the commissioner to determine the electric generation tax base. If an owner of an electric 
137.2 	generating system fails to file the report by the due date, the commissioner of revenue 
137.3 	shall determine the electric generation tax base based upon the nameplate capacity of the 
137.4 	system multiplied by a capacity factor of 100 percent.

137.5 	EFFECTIVE DATE. This section is effective for assessment year 2016.

137.6 	Sec. 7. Minnesota Statutes 2014, section 273.13, subdivision 24, is amended to read:
137.7 		Subd. 24.Class 3.  Commercial and industrial property and utility real and personal 
137.8 	property is class 3a.
137.9 	(1) Except as otherwise provided, each parcel of commercial, industrial, or utility 
137.10 	real property has a classification rate of 1.5 percent of the first tier of market value, and 2.0 
137.11 	percent of the remaining market value. In the case of contiguous parcels of property owned 
137.12 	by the same person or entity, only the value equal to the first-tier value of the contiguous 
137.13 	parcels qualifies for the reduced classification rate, except that contiguous parcels owned 
137.14 	by the same person or entity shall be eligible for the first-tier value classification rate on 
137.15 	each separate business operated by the owner of the property, provided the business is 
137.16 	housed in a separate structure. For the purposes of this subdivision, the first tier means the 
137.17 	first $150,000 of market value. Real property owned in fee by a utility for transmission 
137.18 	line right-of-way shall be classified at the classification rate for the higher tier.
137.19 	For purposes of this subdivision, parcels are considered to be contiguous even if 
137.20 	they are separated from each other by a road, street, waterway, or other similar intervening 
137.21 	type of property. Connections between parcels that consist of power lines or pipelines do 
137.22 	not cause the parcels to be contiguous. Property owners who have contiguous parcels of 
137.23 	property that constitute separate businesses that may qualify for the first-tier classification 
137.24 	rate shall notify the assessor by July 1, for treatment beginning in the following taxes 
137.25 	payable year.
137.26 	(2) All personal property that is: (i) part of an electric generation, transmission, or 
137.27 	distribution system; or (ii) part of a pipeline system transporting or distributing water, gas, 
137.28 	crude oil, or petroleum products; and (iii) not described in clause (3), and all railroad 
137.29 	operating property has a classification rate as provided under clause (1) for the first tier 
137.30 	of market value and the remaining market value. In the case of multiple parcels in one 
137.31 	county that are owned by one person or entity, only one first tier amount is eligible for the 
137.32 	reduced rate.
137.33 	(3) The entire market value of personal property that is: (i) tools, and  implements, 
137.34 	and machinery of an electric generation, transmission, or distribution system; (ii) tools, 
137.35 	implements, and machinery of a pipeline system transporting or distributing water, gas, 
138.1 	crude oil, or petroleum products; or (iii) the mains and pipes used in the distribution of 
138.2 	steam or hot or chilled water for heating or cooling buildings, has a classification rate as 
138.3 	provided under clause (1) for the remaining market value in excess of the first tier.

138.4 	EFFECTIVE DATE. This section is effective beginning with assessment year 2016.

138.5 	Sec. 8. Minnesota Statutes 2014, section 273.37, subdivision 1, is amended to read:
138.6 		Subdivision 1.Listing and assessment where situated. (a) Personal property of 
138.7 	electric light and power companies, and other individuals and partnerships supplying 
138.8 	electric light and power, having a fixed situs outside of the corporate limits of cities shall 
138.9 	be listed and assessed in the district where situated, except as otherwise provided.
138.10 	(b) Notwithstanding any other law to the contrary, the nonoperating property, and 
138.11 	operating real property of electric light and power companies that is part of an electric 
138.12 	generation system, shall be listed and assessed by the local or county assessor.

138.13 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
138.14 	thereafter.

138.15 	Sec. 9. [477A.21] ELECTRIC GENERATION PROPERTY TRANSITION AID.
138.16 		Subdivision 1.Definitions. For the purposes of this section, "local unit" means a 
138.17 	home rule charter or statutory city, county, or a town.
138.18 		Subd. 2.Aid eligibility; payment. For aids payable in 2017 and thereafter, 
138.19 	transition aid under this section for an eligible local unit equals: (1) the net tax capacity of 
138.20 	all personal property of all electric generating systems as determined for assessment year 
138.21 	2015 multiplied by the 2015 local tax rate; minus (2) the net tax capacity in the current 
138.22 	year of all electric generating systems as determined under section 273.129, multiplied by 
138.23 	the current local tax rate. Aid to a local unit shall cease beginning in the year following 
138.24 	the year in which the aid equals zero. Once a local unit becomes ineligible for aid under 
138.25 	this section, it may not subsequently become eligible.
138.26 	The commissioner of revenue shall compute the amount of transition aid payable to 
138.27 	each local unit under this section. On or before August 1 of each year, the commissioner 
138.28 	shall certify the amount of transition aid computed for aids payable in the following year 
138.29 	for each recipient local unit. The commissioner shall pay transition aid to local units 
138.30 	annually at the time provided for the second installment of local government aid under 
138.31 	section 477A.015.
138.32 	The commissioner of revenue may require counties to provide any data that the 
138.33 	commissioner deems necessary to administer this section.
139.1 		Subd. 3.Appropriation. An amount sufficient to pay transition aid under this 
139.2 	section is annually appropriated to the commissioner of revenue from the general fund.

139.3 	EFFECTIVE DATE. This section is effective beginning with aids payable in 2017.

139.4 	Sec. 10.  REPEALER.
 139.5 	Minnesota Statutes 2014, sections 272.02, subdivisions 29, 33, 41, 44, 45, 47, 52, 
139.6 	54, 55, 56, 68, 69, 70, 71, 80, 84, 89, 92, 93, 96, and 99; 272.0211, are repealed.

139.7 	EFFECTIVE DATE. This section is effective beginning with assessment year 
139.8 	2016 and thereafter.

139.9 	ARTICLE 9
139.10 	RAILROAD RECODIFICATION

139.11 	Section 1. Minnesota Statutes 2014, section 270.80, subdivision 1, is amended to read:
139.12 		Subdivision 1.Applicability. The following words and phrases when used 
139.13 	in sections 270.80 273.3712 to 270.87 273.3719, unless the context clearly indicates 
139.14 	otherwise, have the meanings ascribed to them in this section.

139.15 	EFFECTIVE DATE. This section is effective for assessment year 2015 and 
139.16 	thereafter.

139.17 	Sec. 2. Minnesota Statutes 2014, section 270.80, subdivision 2, is amended to read:
139.18 		Subd. 2.Railroad company. "Railroad company" means:
139.19 	(1) any company which as a common carrier operates a railroad or a line or lines of 
139.20 	railway railroad situated within or partly within Minnesota; or
139.21 	(2) any company owning or operating, other than as a common carrier, a railway 
139.22 	principally used for transportation of taconite concentrates from the plant at which the 
139.23 	taconite concentrates are produced in shipping form to a point of consumption or port 
139.24 	for shipment beyond the state; or
139.25 	(3) any company that produces concentrates from taconite and transports that 
139.26 	taconite in the course of the concentrating process and before the concentrating process is 
139.27 	completed to a concentrating plant located within the state over a railroad that is not a 
139.28 	common carrier and shall does not use a common carrier or taconite railroad company as 
139.29 	defined in clause (2) for the movement of the concentrate to a point of consumption or 
139.30 	port for shipment beyond the state.

140.1 	EFFECTIVE DATE. This section is effective for assessment year 2015 and 
140.2 	thereafter.

140.3 	Sec. 3. Minnesota Statutes 2014, section 270.80, subdivision 3, is amended to read:
140.4 		Subd. 3.Operating property. "Operating property" means all property owned 
140.5 	or used by a railroad company in the performance of railroad transportation services, 
140.6 	including without limitation franchises, rights-of-way, bridges, trestles, shops, docks, 
140.7 	wharves, buildings and structures, but not limited to, road, locomotives, freight cars, 
140.8 	and improvements on leased property. Operating property is listed and assessed by the 
140.9 	commissioner where the property is located.

140.10 	EFFECTIVE DATE. This section is effective for assessment year 2015 and 
140.11 	thereafter.

140.12 	Sec. 4. Minnesota Statutes 2014, section 270.80, subdivision 4, is amended to read:
140.13 		Subd. 4.Nonoperating property. "Nonoperating property" means and includes all 
140.14 	property other than property defined in subdivision 3. Nonoperating property shall include 
140.15 	includes real property which that is leased or rented or available for lease or rent to any 
140.16 	person which that is not a railroad company. Vacant land shall be presumed to be available 
140.17 	for lease or rent if it has not been used as operating property for a period of one year 
140.18 	immediately preceding the valuation date. Nonoperating property also includes land which 
140.19 	that is not necessary and integral to the performance of railroad transportation services 
140.20 	and which that is not used on a regular and continual basis in the performance of these 
140.21 	services. Nonoperating property also includes that portion of a general corporation office 
140.22 	building and its proportionate share of land which that is not used for railway railroad 
140.23 	operation or purpose. Nonoperating property is assessed by the local or county assessor.

140.24 	EFFECTIVE DATE. This section is effective for assessment year 2015 and 
140.25 	thereafter.

140.26 	Sec. 5. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision 
140.27 	to read:
140.28 		Subd. 6.Company. "Company" means any corporation, limited liability company, 
140.29 	association, partnership, trust, estate, fiduciary, public or private organization of any kind, 
140.30 	or any other legal entity.

140.31 	EFFECTIVE DATE. This section is effective for assessment year 2015 and 
140.32 	thereafter.

141.1 	Sec. 6. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision 
141.2 	to read:
141.3 		Subd. 7.Unit value. "Unit value" means the value of the whole integrated system 
141.4 	of a railroad company operating as a going concern without regard to the value of its 
141.5 	component parts.

141.6 	EFFECTIVE DATE. This section is effective for assessment year 2015 and 
141.7 	thereafter.

141.8 	Sec. 7. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision 
141.9 	to read:
141.10 		Subd. 8.Book depreciation. "Book depreciation" means the accumulated 
141.11 	depreciation shown by a railroad company on its books or allowed to the company by 
141.12 	the Surface Transportation Board.

141.13 	EFFECTIVE DATE. This section is effective for assessment year 2015 and 
141.14 	thereafter.

141.15 	Sec. 8. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision 
141.16 	to read:
141.17 		Subd. 9.Equalization. "Equalization" means the adjustment of the estimated value 
141.18 	of railroad operating property to the apparent sales ratio of commercial and industrial 
141.19 	property.

141.20 	EFFECTIVE DATE. This section is effective for assessment year 2015 and 
141.21 	thereafter.

141.22 	Sec. 9. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision 
141.23 	to read:
141.24 		Subd. 10.Exempt property. "Exempt property" means property which is 
141.25 	nontaxable for ad valorem tax purposes under Minnesota Statutes, including personal 
141.26 	property exempt from taxation under chapter 272.

141.27 	EFFECTIVE DATE. This section is effective for assessment year 2015 and 
141.28 	thereafter.

141.29 	Sec. 10. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision 
141.30 	to read:
142.1 		Subd. 11.Original cost. "Original cost" means the amount paid for an asset by the 
142.2 	current owner as recorded on the railroad's books or allowed by the Surface Transportation 
142.3 	Board.

142.4 	EFFECTIVE DATE. This section is effective for assessment year 2015 and 
142.5 	thereafter.

142.6 	Sec. 11. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision 
142.7 	to read:
142.8 		Subd. 12.System. "System" means the total property, real and personal, of a 
142.9 	railroad, that is used in its railroad operations.

142.10 	EFFECTIVE DATE. This section is effective for assessment year 2015 and 
142.11 	thereafter.

142.12 	Sec. 12. Minnesota Statutes 2014, section 270.80, is amended by adding a subdivision 
142.13 	to read:
142.14 		Subd. 14.Minnesota allocated value. "Minnesota allocated value" means the value 
142.15 	of a railroad company's operating property that is assigned to Minnesota for tax purposes.

142.16 	EFFECTIVE DATE. This section is effective for assessment year 2015 and 
142.17 	thereafter.

142.18 	Sec. 13. Minnesota Statutes 2014, section 270.81, subdivision 1, is amended to read:
142.19 		Subdivision 1.Valuation of operating property. The operating property of every 
142.20 	railroad company doing business in Minnesota shall be valued by the commissioner in the 
142.21 	manner prescribed by sections 270.80 273.3712 to 270.87 273.3719.

142.22 	EFFECTIVE DATE. This section is effective for assessment year 2015 and 
142.23 	thereafter.

142.24 	Sec. 14. Minnesota Statutes 2014, section 270.81, subdivision 3, is amended to read:
142.25 		Subd. 3.Determination of type of property. (a) The commissioner shall have has 
142.26 	exclusive primary jurisdiction to determine what whether railroad property is operating 
142.27 	property and what is or nonoperating property. In making such the determination, the 
142.28 	commissioner shall may solicit information and opinions from outside the department 
142.29 	and afford all interested persons an opportunity to submit data or views on the subject 
142.30 	in writing or orally.
143.1 	(b) Local and county assessors may submit written requests to the commissioner, 
143.2 	asking for a determination of the nature of specific whether property owned by a 
143.3 	railroad and located within their assessing jurisdiction is operating or nonoperating. Any 
143.4 	determination made by the commissioner may be appealed by the assessor to the Tax Court 
143.5 	pursuant to chapter 271. The requests must be submitted by April 1 of the assessing year. 
143.6 	The commissioner must send the assessor a written determination by May 1. Assessors may 
143.7 	appeal determinations made by the commissioner to the Tax Court pursuant to chapter 271.

143.8 	EFFECTIVE DATE. This section is effective for assessment year 2015 and 
143.9 	thereafter.

143.10 	Sec. 15. Minnesota Statutes 2014, section 270.81, is amended by adding a subdivision 
143.11 	to read:
143.12 		Subd. 6.Deduction for nonoperating and exempt property. Property that was part 
143.13 	of the system, but is nonoperating property, or that is exempt from ad valorem taxation, is 
143.14 	excluded from the Minnesota allocated value under section 273.3718, subdivision 1a. Only 
143.15 	qualifying property located in Minnesota may be deducted from the Minnesota allocated 
143.16 	value. The commissioner must deduct the market value of the property to be excluded. This 
143.17 	must be calculated by multiplying the book value of the property by the market-to-book 
143.18 	ratio of the unit. The company has the burden of proof to establish that property should 
143.19 	be excluded from the Minnesota allocated value. The railroad company must submit 
143.20 	schedules of exempt or nonoperating property as the commissioner may require. The 
143.21 	remaining amount after this deduction is the Minnesota apportionable market value.

143.22 	EFFECTIVE DATE. This section is effective for assessment year 2015 and 
143.23 	thereafter.

143.24 	Sec. 16. Minnesota Statutes 2014, section 270.82, is amended to read:
143.25 	270.82 REPORTS OF RAILROAD COMPANIES.
143.26 		Subdivision 1.Annual report required. Before March 31, every railroad company 
143.27 	doing business in Minnesota shall annually must file with the commissioner on or before 
143.28 	March 31 a an annual report under oath setting forth the information prescribed by the 
143.29 	commissioner to enable the commissioner to make the valuation and equalization required 
143.30 	by sections 270.80 273.3712 to 270.87. 273.3719. The commissioner shall prescribe the 
143.31 	content, format, and manner of the report pursuant to section 270C.30. If a report is made 
143.32 	by electronic means, the taxpayer's signature is defined pursuant to section 270C.304, 
143.33 	except that a "law administered by the commissioner" includes the property tax laws.
144.1 		Subd. 2.Extension of time. If the commissioner for good determines that there is 
144.2 	reasonable cause, the commissioner may extend the time for filing the report required by 
144.3 	subdivision 1 for up to 15 days the time for filing the report required by subdivision 1.
144.4 		Subd. 3.Amended reports. A railroad company may file an amended report to 
144.5 	correct or add information to the original report. Amended reports must be filed with 
144.6 	the commissioner by April 30.
144.7 		Subd. 4.Failure to file reports. (a) The commissioner may make the valuation 
144.8 	provided for by sections 273.3712 to 237.3719, according to the commissioner's best 
144.9 	judgment based on available information, if any railroad company does not:
144.10 	(1) make the report required by this section;
144.11 	(2) permit an inspection and examination of its property, records, books, accounts, 
144.12 	or other papers when requested by the commissioner; or
144.13 	(3) appear before the commissioner or a person appointed under section 273.3715, 
144.14 	when required to do so.
144.15 	(b) If the commissioner makes the valuation pursuant to paragraph (a), the 
144.16 	commissioner's valuation is final. Notwithstanding any other law to the contrary, 
144.17 	the commissioner's valuation made pursuant to this subdivision is not appealable 
144.18 	administratively.

144.19 	EFFECTIVE DATE. This section is effective for assessment year 2015 and 
144.20 	thereafter.

144.21 	Sec. 17. Minnesota Statutes 2014, section 270.83, subdivision 1, is amended to read:
144.22 		Subdivision 1.Powers of commissioner. The commissioner shall have has the 
144.23 	power to examine or cause to be examined any books, papers, records, or memoranda 
144.24 	relevant to the determination of the valuation of operating property as herein provided. 
144.25 	The commissioner shall have the further power to may require the attendance of any 
144.26 	person having knowledge or information in the premises concerning the valuation of the 
144.27 	operating property, to compel the production of books, papers, records, or memoranda by 
144.28 	persons so required to attend, to take testimony on matters material to such determination 
144.29 	determine the valuation of operating property, and administer oaths or affirmations.

144.30 	EFFECTIVE DATE. This section is effective for assessment year 2015 and 
144.31 	thereafter.

144.32 	Sec. 18. Minnesota Statutes 2014, section 270.83, subdivision 2, is amended to read:
145.1 		Subd. 2.Appointment of persons; subpoenas. For the purpose of making such 
145.2 	examinations, The commissioner may appoint such persons as the commissioner may 
145.3 	deem deems necessary to make the examinations described in subdivision 1. Such 
145.4 	persons shall have the rights and powers of the examining of Persons appointed may 
145.5 	examine books, papers, records or memoranda, and of subpoenaing subpoena witnesses, 
145.6 	administering administer oaths and affirmations, and taking of take testimony, which are 
145.7 	conferred upon the commissioner hereby. The court administrator of any court of record, 
145.8 	upon demand of any such person appointed, shall issue a subpoena for the attendance of 
145.9 	any witness or the production of any books, papers, records, or memoranda before such 
145.10 	person. The commissioner may also issue subpoenas for the appearance of witnesses 
145.11 	before the commissioner or before such persons. Disobedience of subpoenas so issued 
145.12 	shall be punished by the district court of the district in which the subpoena is issued for a 
145.13 	contempt of the district court. Failure to comply with a subpoena shall be punished in the 
145.14 	same manner as contempt of the district court.

145.15 	EFFECTIVE DATE. This section is effective for assessment year 2015 and 
145.16 	thereafter.

145.17 	Sec. 19. Minnesota Statutes 2014, section 270.84, is amended to read:
145.18 	270.84 ANNUAL VALUATION OF OPERATING PROPERTY.
145.19 		Subdivision 1.Annual valuation; rules. (a) Before July 1, the commissioner 
145.20 	shall annually between March 31 and May 31 make a determination of must determine 
145.21 	the fair market value of the operating property of every railroad company doing business 
145.22 	in this state as of January 2 of the year in which the valuation is made. In making 
145.23 	this determination, The commissioner shall must employ generally accepted appraisal 
145.24 	principles and practices which may include the unit method of determining value., and 
145.25 	approaches approved by the Western States Association of Tax Administrators, National 
145.26 	Conference of Unit Valuation States, and the International Association of Assessing 
145.27 	Officers.
145.28 	(b) The unit value of railroad property is the reconciled value considering the cost, 
145.29 	income, and market approaches under subdivisions 1a, 1b, and 1c. Each approach must 
145.30 	be weighted in accordance with the reliability of the information and the commissioner's 
145.31 	judgment.
145.32 		Subd. 1a.Cost approach. (a) The commissioner may use the cost approach, 
145.33 	including but not limited to original cost less book depreciation and replacement cost 
145.34 	less depreciation.
146.1 	(b) Book depreciation is allowed as a deduction from an original cost model. Book 
146.2 	depreciation is assumed to include all forms of appraisal depreciation.
146.3 	(c) Explicitly calculated appraisal depreciation, including physical, functional, and 
146.4 	external obsolescence, is allowed as a deduction from the replacement cost model.
146.5 		Subd. 1b.Income approach. (a) The commissioner may use the income approach, 
146.6 	including but not limited to direct capitalization models and yield capitalization models.
146.7 	(b) The yield rate is calculated using market data on selected comparable companies 
146.8 	in the band of investment method.
146.9 	(1) Discounted cash flows is a yield capitalization model that calculates the present 
146.10 	value of explicit cash flow forecasts capitalized using the yield rate, plus reversion to 
146.11 	stable growth yield capitalization after the period of explicit forecasts.
146.12 	(2) Stable growth yield capitalization is a yield capitalization model that calculates 
146.13 	the present value of anticipated future cash flows, capitalized using the yield rate and 
146.14 	considering growth.
146.15 	(c) Direct capitalization is the expected net operating income for the following year, 
146.16 	divided by the direct capitalization rate. The direct capitalization rate is calculated by 
146.17 	using direct market observations from comparable sales or using market earning-to-price 
146.18 	information in the band of investment method.
146.19 		Subd. 1c.Market approach. The commissioner may use the market approach, 
146.20 	including but not limited to a sales comparison model, a stock and debt model, or other 
146.21 	market models that are available and reliable.
146.22 		Subd. 2.Notice. The commissioner, after determining the fair market value of the 
146.23 	operating property of each railroad company, shall give notice to must notify the railroad 
146.24 	company of the valuation by first class mail, overnight delivery, or messenger service.

146.25 	EFFECTIVE DATE. This section is effective for assessment year 2015 and 
146.26 	thereafter.

146.27 	Sec. 20. Minnesota Statutes 2014, section 270.86, is amended to read:
146.28 	270.86 APPORTIONMENT AND EQUALIZATION OF VALUATION.
146.29 		Subdivision 1.Apportionment of value. Upon determining After allocating to 
146.30 	Minnesota the fair market value of the operating property of each railroad company, the 
146.31 	commissioner shall must apportion such the value to the respective counties and to the 
146.32 	taxing districts therein in conformity with fair and reasonable rules and standards to be 
146.33 	established by the commissioner pursuant to notice and hearing, except as provided in 
146.34 	section 270.81. In establishing such rules and standards the commissioner may consider 
147.1 	(a) the physical situs of all station houses, depots, docks, wharves, and other buildings and 
147.2 	structures with an original cost in excess of $10,000; (b) the proportion that the length and 
147.3 	type of all the tracks used by the railroad in such county and taxing district bears to the 
147.4 	length and type of all the track used in the state; and (c) other facts as will result in a fair 
147.5 	and equitable apportionment of value the operating parcels in Minnesota.
147.6 	The apportioned market value of each company's operating parcel in Minnesota is 
147.7 	the current original cost of each parcel as of the last assessment date plus original cost 
147.8 	of new construction minus the original cost of property retired since the last assessment 
147.9 	date. The total Minnesota apportionable market value of the railroad is divided by the 
147.10 	total current original cost of the railroad in Minnesota to determine a percentage. The 
147.11 	resulting percentage is multiplied by the current original cost of each parcel to determine 
147.12 	the apportioned market value of each parcel.
147.13 		Subd. 1a.Allocation of value. (a) After the market value of operating property has 
147.14 	been estimated, the portion of value that is attributable to Minnesota must be determined 
147.15 	by calculating an allocation percentage using factors relevant to the industry segment of 
147.16 	the railroad company. The allocation percentage must be multiplied by the value of the 
147.17 	operating property to determine the Minnesota allocated value.
147.18 	(b) The Minnesota allocated value is determined by averaging the following factors:
147.19 	(1) miles of railroad track operated in Minnesota divided by miles of railroad track 
147.20 	operated in all states;
147.21 	(2) ton miles of revenue freight transported in Minnesota divided by ton miles of 
147.22 	revenue freight transported in all states;
147.23 	(3) gross revenues from transportation operations within Minnesota divided by gross 
147.24 	revenues from transportation operations in all states; and
147.25 	(4) cost of railroad property in Minnesota divided by cost of railroad property in 
147.26 	all states.
147.27 	(c) Each of the available factors must be weighted equally.
147.28 		Subd. 2.Equalized valuation. After making the apportionment provided in 
147.29 	subdivision 1, the commissioner shall must determine the equalized valuation of the 
147.30 	operating property in each county by applying to the apportioned value an estimated 
147.31 	current year median sales ratio for all commercial and industrial property in that county. 
147.32 	If the commissioner decides determines that there are insufficient sales to determine a 
147.33 	median commercial-industrial sales ratio, an estimated current year countywide median 
147.34 	sales ratio for all property shall must be applied to the apportioned value. No equalization 
147.35 	shall Equalization must not be made to the market value of the operating property if the 
148.1 	median sales ratio determined pursuant to this subdivision is within five at least 90 but less 
148.2 	than 105 percent of the assessment ratio of the railroad operating property.

148.3 	EFFECTIVE DATE. This section is effective for assessment year 2015 and 
148.4 	thereafter.

148.5 	Sec. 21. Minnesota Statutes 2014, section 270.87, is amended to read:
148.6 	270.87 CERTIFICATION TO COUNTY ASSESSORS.
148.7 	After making an annual determination of the equalized fair market value of the 
148.8 	operating property of each company in each of the respective counties, and in the taxing 
148.9 	districts therein, The commissioner shall must certify the equalized fair market value of 
148.10 	the operating property to the county assessor on or before June 30 August 1. The equalized 
148.11 	fair market value of the operating property of the railroad company in the county and the 
148.12 	taxing districts therein is the value on which taxes must be levied and collected in the 
148.13 	same manner as on the commercial and industrial property of such county and the taxing 
148.14 	districts therein in the counties and taxing districts. If the commissioner determines that 
148.15 	the equalized fair market value certified on or before June 30 August 1 is in error, the 
148.16 	commissioner may issue a corrected certification on or before August 31 October 1. The 
148.17 	commissioner may correct errors that are merely clerical in nature until December 31.

148.18 	EFFECTIVE DATE. This section is effective for assessment year 2015 and 
148.19 	thereafter.

148.20 	Sec. 22. Minnesota Statutes 2014, section 272.02, subdivision 9, is amended to read:
148.21 		Subd. 9.Personal property; exceptions. Except for the taxable personal property 
148.22 	enumerated below, all personal property and the property described in section 272.03, 
148.23 	subdivision 1, paragraphs (c) and (d), shall be exempt.
148.24 	The following personal property shall be taxable:
148.25 	(a) personal property which is part of an electric generating, transmission, or 
148.26 	distribution system or a pipeline system transporting or distributing water, gas, crude 
148.27 	oil, or petroleum products or mains and pipes used in the distribution of steam or hot or 
148.28 	chilled water for heating or cooling buildings and structures;
148.29 	(b) railroad docks and wharves which are part of thepersonal property that is part of 
148.30 	the operating property of a railroad company as defined in section 270.80 273.3712;
148.31 	(c) personal property defined in section 272.03, subdivision 2, clause (3);
149.1 	(d) leasehold or other personal property interests which are taxed pursuant to section 
149.2 	272.01, subdivision 2; 273.124, subdivision 7; or 273.19, subdivision 1; or any other law 
149.3 	providing the property is taxable as if the lessee or user were the fee owner;
149.4 	(e) manufactured homes and sectional structures, including storage sheds, decks, 
149.5 	and similar removable improvements constructed on the site of a manufactured home, 
149.6 	sectional structure, park trailer or travel trailer as provided in section 273.125, subdivision 
149.7 	8, paragraph (f); and
149.8 	(f) flight property as defined in section 270.071.

149.9 	EFFECTIVE DATE. This section is effective for assessment year 2015 and 
149.10 	thereafter.

149.11 	Sec. 23. SEVERABILITY.
 149.12 	If any part of this article is found to be invalid because it is in conflict with a 
149.13 	provision of the Minnesota Constitution or for any other reason, all other provisions 
149.14 	of this act shall remain valid and any rights, remedies, and privileges that have been 
149.15 	otherwise accrued by this act, shall remain in effect and may be proceeded with and 
149.16 	concluded under the provisions of this act.

149.17 	Sec. 24. REVISOR'S INSTRUCTION.
 149.18 	The revisor of statutes shall renumber the provisions of Minnesota Statutes listed 
149.19 	in column A to the references listed in column B. The revisor shall also make necessary 
149.20 	cross-reference changes in Minnesota Statutes and Minnesota Rules consistent with 
149.21 	renumbering.

149.22		Column A
	Column B
	
149.23		270.80
	273.3712
	
149.24		270.81
	273.3713
	
149.25		270.82
	273.3714
	
149.26		270.83
	273.3715
	
149.27		270.84
	273.3716
	
149.28		270.85
	273.3717
	
149.29		270.86
	273.3718
	
149.30		270.87
	273.3719

149.31 	EFFECTIVE DATE. This section is effective for assessment year 2015 and 
149.32 	thereafter.

149.33 	Sec. 25.  REPEALER.
 150.1 	Minnesota Statutes 2014, sections 270.81, subdivision 4; and 270.83, subdivision 3, 
150.2 	and Minnesota Rules, parts 8106.0100, subparts 1, 2, 3, 4, 5, 6, 7, 8, 10, 12, 13, 14, 17, 
150.3 	17a, 18, 19, 20, and 21; 8106.0300, subparts 1 and 3; 8106.0400; 8106.0500; 8106.0600; 
150.4 	8106.0700; 8106.0800; and 8106.9900, are repealed.

150.5 	EFFECTIVE DATE. This section is effective for assessment year 2015 and 
150.6 	thereafter.

150.7 	ARTICLE 10
150.8 	PUBLIC FINANCE

150.9 	Section 1. Minnesota Statutes 2014, section 126C.40, subdivision 1, is amended to read:
150.10 		Subdivision 1.To lease building or land. (a) When an independent or a special 
150.11 	school district or a group of independent or special school districts finds it economically 
150.12 	advantageous to rent or lease a building or land for any instructional purposes or for school 
150.13 	storage or furniture repair, and it determines that the operating capital revenue authorized 
150.14 	under section 126C.10, subdivision 13, is insufficient for this purpose, it may apply to seek 
150.15 	permission from the commissioner for permission to make an additional capital expenditure 
150.16 	levy for this purpose. An application for permission to levy under this subdivision must 
150.17 	contain financial justification for the proposed levy, the terms and conditions of the 
150.18 	proposed lease, and a description of the space to be leased and its proposed use.
150.19 	(b) In granting permission to levy under this subdivision, the commissioner may 
150.20 	consider the financial justification for the proposed levy, the terms and conditions 
150.21 	of the proposed lease, and a description of the space to be leased and its proposed 
150.22 	use. Additional information shall be provided for consideration upon request of the 
150.23 	commissioner. The criteria for approval of applications granting permission to levy under 
150.24 	this subdivision must include: the reasonableness of the price, the appropriateness of the 
150.25 	space to the proposed activity, the feasibility of transporting pupils to the leased building 
150.26 	or land, conformity of the lease to the laws and rules of the state of Minnesota, and the 
150.27 	appropriateness of the proposed lease to the space needs and the financial condition of the 
150.28 	district. The commissioner must not authorize a levy under this subdivision in an amount 
150.29 	greater than the cost to the district of renting or leasing a building or land for approved 
150.30 	purposes. The proceeds of this levy must not be used for custodial or other maintenance 
150.31 	services. A district may not levy under this subdivision for the purpose of leasing or 
150.32 	renting a district-owned building or site to itself.
150.33 	(c) For agreements finalized after July 1, 1997, a district may not levy under this 
150.34 	subdivision for the purpose of leasing: (1) a newly constructed building used primarily 
151.1 	for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed 
151.2 	building addition or additions used primarily for regular kindergarten, elementary, or 
151.3 	secondary instruction that contains more than 20 percent of the square footage of the 
151.4 	previously existing building.
151.5 	(d) Notwithstanding paragraph (b), a district may levy under this subdivision for the 
151.6 	purpose of leasing or renting a district-owned building or site to itself only if the amount 
151.7 	is needed by the district to make payments required by a lease purchase agreement, 
151.8 	installment purchase agreement, or other deferred payments agreement authorized by law, 
151.9 	and the levy meets the requirements of paragraph (c). A levy authorized for a district by 
151.10 	the commissioner under this paragraph may be in the amount needed by the district to 
151.11 	make payments required by a lease purchase agreement, installment purchase agreement, 
151.12 	or other deferred payments agreement authorized by law, provided that any agreement 
151.13 	include a provision giving the school districts the right to terminate the agreement 
151.14 	annually without penalty.
151.15 	(e) The total levy under this subdivision for a district for any year must not exceed 
151.16 	$212 times the adjusted pupil units for the fiscal year to which the levy is attributable.
151.17 	(f) For agreements for which a review and comment have been submitted to the 
151.18 	Department of Education after April 1, 1998, the term "instructional purpose" as used in 
151.19 	this subdivision excludes expenditures on stadiums.
151.20 	(g) The commissioner of education may authorize a school district to exceed the 
151.21 	limit in paragraph (e) if the school district petitions the commissioner for approval. The 
151.22 	commissioner shall grant approval to a school district to exceed the limit in paragraph (e) 
151.23 	for not more than five years if the district meets the following criteria:
151.24 	(1) the school district has been experiencing pupil enrollment growth in the 
151.25 	preceding five years;
151.26 	(2) the purpose of the increased levy is in the long-term public interest;
151.27 	(3) the purpose of the increased levy promotes colocation of government services; and
151.28 	(4) the purpose of the increased levy is in the long-term interest of the district by 
151.29 	avoiding over construction of school facilities.
151.30 	(h) A school district that is a member of an intermediate school district may include 
151.31 	in its authority under this section the costs associated with leases of administrative and 
151.32 	classroom space for intermediate school district programs. This authority must not exceed 
151.33 	$65 times the adjusted pupil units of the member districts. This authority is in addition to 
151.34 	any other authority authorized under this section.
151.35 	(i) In addition to the allowable capital levies in paragraph (a), for taxes payable in 
151.36 	2012 to 2023, a district that is a member of the "Technology and Information Education 
152.1 	Systems" data processing joint board, that finds it economically advantageous to enter into 
152.2 	a lease agreement to finance improvements to a building and land for a group of school 
152.3 	districts or special school districts for staff development purposes, may levy for its portion 
152.4 	of lease costs attributed to the district within the total levy limit in paragraph (e). The total 
152.5 	levy authority under this paragraph shall not exceed $632,000.
152.6 	(j) Notwithstanding paragraph (a), a district may levy under this subdivision for the 
152.7 	purpose of leasing administrative space if the district can demonstrate to the satisfaction of 
152.8 	the commissioner that the lease cost for the administrative space is no greater than the 
152.9 	lease cost for instructional space that the district would otherwise lease. The commissioner 
152.10 	must deny this levy authority unless the district passes a resolution stating its intent to 
152.11 	lease instructional space under this section if the commissioner does not grant authority 
152.12 	under this paragraph. The resolution must also certify that the lease cost for administrative 
152.13 	space under this paragraph is no greater than the lease cost for the district's proposed 
152.14 	instructional lease.

152.15 	Sec. 2. Minnesota Statutes 2014, section 366.095, subdivision 1, is amended to read:
152.16 		Subdivision 1.Certificates of indebtedness. The town board may issue certificates 
152.17 	of indebtedness within the debt limits for a town purpose otherwise authorized by law. 
152.18 	The certificates shall be payable in not more than ten years and be issued on the terms and 
152.19 	in the manner as the board may determine, provided that notes issued for projects that 
152.20 	eliminate R-22, as such projects are defined in section 240A.09, paragraph (b), clause (2), 
152.21 	shall be payable in not more than 20 years. If the amount of the certificates to be issued 
152.22 	exceeds 0.25 percent of the estimated market value of the town, they shall not be issued 
152.23 	for at least ten days after publication in a newspaper of general circulation in the town of 
152.24 	the board's resolution determining to issue them. If within that time, a petition asking for 
152.25 	an election on the proposition signed by voters equal to ten percent of the number of voters 
152.26 	at the last regular town election is filed with the clerk, the certificates shall not be issued 
152.27 	until their issuance has been approved by a majority of the votes cast on the question at 
152.28 	a regular or special election. A tax levy shall be made to pay the principal and interest 
152.29 	on the certificates as in the case of bonds.

152.30 	Sec. 3. Minnesota Statutes 2014, section 383B.117, subdivision 2, is amended to read:
152.31 		Subd. 2.Equipment acquisition; capital notes. The board may, by resolution and 
152.32 	without public referendum, issue capital notes within existing debt limits for the purpose 
152.33 	of purchasing ambulance and other medical equipment, road construction or maintenance 
152.34 	equipment, public safety equipment and other capital equipment having an expected 
153.1 	useful life at least equal to the term of the notes issued. The notes shall be payable 
153.2 	in not more than ten years and shall be issued on terms and in a manner as the board 
153.3 	determines, provided that notes issued for projects that eliminate R-22, as such projects 
153.4 	are defined in section 240A.09, paragraph (b), clause (2), shall be payable in not more 
153.5 	than 20 years. The total principal amount of the notes issued for any fiscal year shall not 
153.6 	exceed one percent of the total annual budget for that year and shall be issued solely for 
153.7 	the purchases authorized in this subdivision. A tax levy shall be made for the payment 
153.8 	of the principal and interest on such notes as in the case of bonds. For purposes of this 
153.9 	subdivision, "equipment" includes computer hardware and software, whether bundled with 
153.10 	machinery or equipment or unbundled. For purposes of this subdivision, the term "medical 
153.11 	equipment" includes computer hardware and software and other intellectual property for 
153.12 	use in medical diagnosis, medical procedures, research, record keeping, billing, and other 
153.13 	hospital applications, together with application development services and training related 
153.14 	to the use of the computer hardware and software and other intellectual property, all 
153.15 	without regard to their useful life. For purposes of determining the amount of capital notes 
153.16 	which the county may issue in any year, the budget of the county and Hennepin Healthcare 
153.17 	System, Inc. shall be combined and the notes issuable under this subdivision shall be in 
153.18 	addition to obligations issuable under section 373.01, subdivision 3.

153.19 	Sec. 4. Minnesota Statutes 2014, section 410.32, is amended to read:
153.20 	410.32 CITIES MAY ISSUE CAPITAL NOTES FOR CAPITAL EQUIPMENT.
153.21 	(a) Notwithstanding any contrary provision of other law or charter, a home rule 
153.22 	charter city may, by resolution and without public referendum, issue capital notes subject 
153.23 	to the city debt limit to purchase capital equipment.
153.24 	(b) For purposes of this section, "capital equipment" means:
153.25 	(1) public safety equipment, ambulance and other medical equipment, road 
153.26 	construction and maintenance equipment, and other capital equipment; and
153.27 	(2) computer hardware and software, whether bundled with machinery or equipment 
153.28 	or unbundled, together with application development services and training related to the 
153.29 	use of the computer hardware and software.
153.30 	(c) The equipment or software must have an expected useful life at least as long 
153.31 	as the term of the notes.
153.32 	(d) The notes shall be payable in not more than ten years and be issued on terms and 
153.33 	in the manner the city determines, provided that notes issued for projects that eliminate 
153.34 	R-22, as such projects are defined in section 240A.09, paragraph (b), clause (2), shall be 
153.35 	payable in not more than 20 years. The total principal amount of the capital notes issued 
154.1 	in a fiscal year shall not exceed 0.03 percent of the estimated market value of taxable 
154.2 	property in the city for that year.
154.3 	(e) A tax levy shall be made for the payment of the principal and interest on the 
154.4 	notes, in accordance with section 475.61, as in the case of bonds.
154.5 	(f) Notes issued under this section shall require an affirmative vote of two-thirds of 
154.6 	the governing body of the city.
154.7 	(g) Notwithstanding a contrary provision of other law or charter, a home rule charter 
154.8 	city may also issue capital notes subject to its debt limit in the manner and subject to the 
154.9 	limitations applicable to statutory cities pursuant to section 412.301.

154.10 	Sec. 5. Minnesota Statutes 2014, section 412.301, is amended to read:
154.11 	412.301 FINANCING PURCHASE OF CERTAIN EQUIPMENT.
154.12 	(a) The council may issue certificates of indebtedness or capital notes subject to the 
154.13 	city debt limits to purchase capital equipment.
154.14 	(b) For purposes of this section, "capital equipment" means:
154.15 	(1) public safety equipment, ambulance and other medical equipment, road 
154.16 	construction and maintenance equipment, and other capital equipment; and
154.17 	(2) computer hardware and software, whether bundled with machinery or equipment 
154.18 	or unbundled, together with application development services and training related to the 
154.19 	use of the computer hardware or software.
154.20 	(c) The equipment or software must have an expected useful life at least as long as 
154.21 	the terms of the certificates or notes.
154.22 	(d) Such certificates or notes shall be payable in not more than ten years and shall 
154.23 	be issued on such terms and in such manner as the council may determine, provided, 
154.24 	however, that notes issued for projects that eliminate R-22, as such projects are defined in 
154.25 	section 240A.09, paragraph (b), clause (2), shall be payable in not more than 20 years.
154.26 	(e) If the amount of the certificates or notes to be issued to finance any such purchase 
154.27 	exceeds 0.25 percent of the estimated market value of taxable property in the city, they 
154.28 	shall not be issued for at least ten days after publication in the official newspaper of 
154.29 	a council resolution determining to issue them; and if before the end of that time, a 
154.30 	petition asking for an election on the proposition signed by voters equal to ten percent 
154.31 	of the number of voters at the last regular municipal election is filed with the clerk, such 
154.32 	certificates or notes shall not be issued until the proposition of their issuance has been 
154.33 	approved by a majority of the votes cast on the question at a regular or special election.
154.34 	(f) A tax levy shall be made for the payment of the principal and interest on such 
154.35 	certificates or notes, in accordance with section 475.61, as in the case of bonds.

155.1 	Sec. 6. Minnesota Statutes 2014, section 469.034, subdivision 2, is amended to read:
155.2 		Subd. 2.General obligation revenue bonds. (a) An authority may pledge the 
155.3 	general obligation of the general jurisdiction governmental unit as additional security for 
155.4 	bonds payable from income or revenues of the project or the authority. The authority 
155.5 	must find that the pledged revenues will equal or exceed 110 percent of the principal and 
155.6 	interest due on the bonds for each year. The proceeds of the bonds must be used for a 
155.7 	qualified housing development project or projects. The obligations must be issued and 
155.8 	sold in the manner and following the procedures provided by chapter 475, except the 
155.9 	obligations are not subject to approval by the electors, and the maturities may extend to 
155.10 	not more than 35 years for obligations sold to finance housing for the elderly and 40 years 
155.11 	for other obligations issued under this subdivision. The authority is the municipality for 
155.12 	purposes of chapter 475.
155.13 	(b) The principal amount of the issue must be approved by the governing body of 
155.14 	the general jurisdiction governmental unit whose general obligation is pledged. Public 
155.15 	hearings must be held on issuance of the obligations by both the authority and the general 
155.16 	jurisdiction governmental unit. The hearings must be held at least 15 days, but not more 
155.17 	than 120 days, before the sale of the obligations.
155.18 	(c) The maximum amount of general obligation bonds that may be issued and 
155.19 	outstanding under this section equals the greater of (1) one-half of one percent of the 
155.20 	estimated market value of the general jurisdiction governmental unit whose general 
155.21 	obligation is pledged, or (2) $3,000,000 $5,000,000. In the case of county or multicounty 
155.22 	general obligation bonds, the outstanding general obligation bonds of all cities in the 
155.23 	county or counties issued under this subdivision must be added in calculating the limit 
155.24 	under clause (1).
155.25 	(d) "General jurisdiction governmental unit" means the city in which the housing 
155.26 	development project is located. In the case of a county or multicounty authority, the 
155.27 	county or counties may act as the general jurisdiction governmental unit. In the case of 
155.28 	a multicounty authority, the pledge of the general obligation is a pledge of a tax on the 
155.29 	taxable property in each of the counties.
155.30 	(e) "Qualified housing development project" means a housing development project 
155.31 	providing housing either for the elderly or for individuals and families with incomes not 
155.32 	greater than 80 percent of the median family income as estimated by the United States 
155.33 	Department of Housing and Urban Development for the standard metropolitan statistical 
155.34 	area or the nonmetropolitan county in which the project is located. The project must be 
155.35 	owned for the term of the bonds either by the authority or by a limited partnership or other 
155.36 	entity in which the authority or another entity under the sole control of the authority is 
156.1 	the sole general partner and the partnership or other entity must receive (1) an allocation 
156.2 	from the Department of Management and Budget or an entitlement issuer of tax-exempt 
156.3 	bonding authority for the project and a preliminary determination by the Minnesota 
156.4 	Housing Finance Agency or the applicable suballocator of tax credits that the project 
156.5 	will qualify for four percent low-income housing tax credits or (2) a reservation of nine 
156.6 	percent low-income housing tax credits from the Minnesota Housing Finance Agency or a 
156.7 	suballocator of tax credits for the project. A qualified housing development project may 
156.8 	admit nonelderly individuals and families with higher incomes if:
156.9 	(1) three years have passed since initial occupancy;
156.10 	(2) the authority finds the project is experiencing unanticipated vacancies resulting in 
156.11 	insufficient revenues, because of changes in population or other unforeseen circumstances 
156.12 	that occurred after the initial finding of adequate revenues; and
156.13 	(3) the authority finds a tax levy or payment from general assets of the general 
156.14 	jurisdiction governmental unit will be necessary to pay debt service on the bonds if higher 
156.15 	income individuals or families are not admitted.
156.16 	(f) The authority may issue bonds to refund bonds issued under this subdivision in 
156.17 	accordance with section 475.67. The finding of the adequacy of pledged revenues required 
156.18 	by paragraph (a) and the public hearing required by paragraph (b) shall not apply to the 
156.19 	issuance of refunding bonds. This paragraph applies to refunding bonds issued on and 
156.20 	after July 1, 1992.

156.21 	Sec. 7. Minnesota Statutes 2014, section 469.101, subdivision 1, is amended to read:
156.22 		Subdivision 1.Establishment. An economic development authority may create 
156.23 	and define the boundaries of economic development districts at any place or places within 
156.24 	the city, except that the district boundaries must be contiguous, and may use the powers 
156.25 	granted in sections 469.090 to 469.108 to carry out its purposes. First the authority must 
156.26 	hold a public hearing on the matter. At least ten days before the hearing, the authority 
156.27 	shall publish notice of the hearing in a daily newspaper of general circulation in the city. 
156.28 	Also, the authority shall find that an economic development district is proper and desirable 
156.29 	to establish and develop within the city.

156.30 	Sec. 8. Minnesota Statutes 2014, section 475.58, subdivision 3b, is amended to read:
156.31 		Subd. 3b.Street reconstruction and bituminous overlays. (a) A municipality may, 
156.32 	without regard to the election requirement under subdivision 1, issue and sell obligations 
156.33 	for street reconstruction or bituminous overlays, if the following conditions are met:
157.1 	(1) the streets are reconstructed or overlaid under a street reconstruction or overlay 
157.2 	plan that describes the street reconstruction or overlay to be financed, the estimated costs, 
157.3 	and any planned reconstruction or overlay of other streets in the municipality over the next 
157.4 	five years, and the plan and issuance of the obligations has been approved by a vote of 
157.5 	all a majority of the members of the governing body present at the meeting following a 
157.6 	public hearing for which notice has been published in the official newspaper at least ten 
157.7 	days but not more than 28 days prior to the hearing; and
157.8 	(2) if a petition requesting a vote on the issuance is signed by voters equal to 
157.9 	five percent of the votes cast in the last municipal general election and is filed with the 
157.10 	municipal clerk within 30 days of the public hearing, the municipality may issue the bonds 
157.11 	only after obtaining the approval of a majority of the voters voting on the question of the 
157.12 	issuance of the obligations. If the municipality elects not to submit the question to the 
157.13 	voters, the municipality shall not propose the issuance of bonds under this section for the 
157.14 	same purpose and in the same amount for a period of 365 days from the date of receipt 
157.15 	of the petition. If the question of issuing the bonds is submitted and not approved by the 
157.16 	voters, the provisions of section 475.58, subdivision 1a, shall apply.
157.17 	(b) Obligations issued under this subdivision are subject to the debt limit of the 
157.18 	municipality and are not excluded from net debt under section 475.51, subdivision 4.
157.19 	(c) For purposes of this subdivision, street reconstruction and bituminous overlays 
157.20 	includes utility replacement and relocation and other activities incidental to the street 
157.21 	reconstruction, turn lanes and other improvements having a substantial public safety 
157.22 	function, realignments, other modifications to intersect with state and county roads, and 
157.23 	the local share of state and county road projects. For purposes of this subdivision, "street 
157.24 	reconstruction" includes expenditures for street reconstruction that have been incurred 
157.25 	by a municipality before approval of a street reconstruction plan, if such expenditures 
157.26 	are included in a street reconstruction plan approved on or before the date of the public 
157.27 	hearing under paragraph (a), clause (1), regarding issuance of bonds for such expenditures.
157.28 	(d) Except in the case of turn lanes, safety improvements, realignments, intersection 
157.29 	modifications, and the local share of state and county road projects, street reconstruction 
157.30 	and bituminous overlays does not include the portion of project cost allocable to widening 
157.31 	a street or adding curbs and gutters where none previously existed.

157.32 	Sec. 9. Minnesota Statutes 2014, section 475.60, subdivision 2, is amended to read:
157.33 		Subd. 2.Requirements waived. The requirements as to public sale shall not 
157.34 	apply to:
158.1 	(1) obligations issued under the provisions of a home rule charter or of a law 
158.2 	specifically authorizing a different method of sale, or authorizing them to be issued in such 
158.3 	manner or on such terms and conditions as the governing body may determine;
158.4 	(2) obligations sold by an issuer in an amount not exceeding the total sum of 
158.5 	$1,200,000 in any 12-month period;
158.6 	(3) obligations issued by a governing body other than a school board in anticipation 
158.7 	of the collection of taxes or other revenues appropriated for expenditure in a single year, if 
158.8 	sold in accordance with the most favorable of two or more proposals solicited privately;
158.9 	(4) obligations sold to any board, department, or agency of the United States of 
158.10 	America or of the state of Minnesota, in accordance with rules or regulations promulgated 
158.11 	by such board, department, or agency;
158.12 	(5) obligations issued to fund pension and retirement fund liabilities under section 
158.13 	475.52, subdivision 6, obligations issued with tender options under section 475.54, 
158.14 	subdivision 5a, crossover refunding obligations referred to in section 475.67, subdivision 
158.15 	13, and any issue of obligations comprised in whole or in part of obligations bearing 
158.16 	interest at a rate or rates which vary periodically referred to in section 475.56;
158.17 	(6) obligations to be issued for a purpose, in a manner, and upon terms and 
158.18 	conditions authorized by law, if the governing body of the municipality, on the advice of 
158.19 	bond counsel or special tax counsel, determines that interest on the obligations cannot be 
158.20 	represented to be excluded from gross income for purposes of federal income taxation;
158.21 	(7) obligations issued in the form of an installment purchase contract, lease purchase 
158.22 	agreement, or other similar agreement;
158.23 	(8) obligations sold under a bond reinvestment program; and
158.24 	(9) if the municipality has retained an independent financial municipal advisor, 
158.25 	obligations which the governing body determines shall be sold by private negotiation.

158.26 	ARTICLE 11
158.27 	SUSTAINABLE FOREST INCENTIVE ACT MODIFICATIONS

158.28 	Section 1. Minnesota Statutes 2014, section 290C.01, is amended to read:
158.29 	290C.01 PURPOSE.
158.30 	It is the policy of this state to promote sustainable forest resource management on 
158.31 	the state's public and private lands. Recognizing that The state's private forests comprise 
158.32 	approximately one-half of the state forest land resources, that healthy and robust forest 
158.33 	land provides significant benefits to the state of Minnesota, and that ad. These forests 
158.34 	play a critical role in protecting water quality and soil resources, and provide extensive 
159.1 	wildlife habitat, diverse recreational experiences, and significant forest products that 
159.2 	support the state's economy. Ad valorem property taxes represent a significant annual 
159.3 	cost that can discourage long-term forest management investments. In order to foster 
159.4 	silviculture investments and retain these forests for their economic and ecological benefits, 
159.5 	this chapter, hereafter referred to as the "Sustainable Forest Incentive Act," is enacted 
159.6 	to encourage the state's private forest landowners to make a long-term commitment to 
159.7 	sustainable forest management.

159.8 	Sec. 2. Minnesota Statutes 2014, section 290C.02, subdivision 1, is amended to read:
159.9 		Subdivision 1.Application. When used in sections 290C.01 to 290C.11 290C.13, 
159.10 	the terms in this section have the meanings given them.

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

159.12 	Sec. 3. Minnesota Statutes 2014, section 290C.02, subdivision 3, is amended to read:
159.13 		Subd. 3.Claimant. (a) "Claimant" means:
159.14 	(1) a person, as that term is defined in section 290.01, subdivision 2, who owns 
159.15 	forest land in Minnesota and files an application authorized by the Sustainable Forest 
159.16 	Incentive Act;
159.17 	(2) a purchaser or grantee if property enrolled in the program was sold or transferred 
159.18 	after the original application was filed and prior to the annual incentive payment being 
159.19 	made; or
159.20 	(3) an owner of land previously covered by an auxiliary forest contract that 
159.21 	automatically qualifies for inclusion in the Sustainable Forest Incentive Act program 
159.22 	pursuant to section 88.49, subdivision 9a, or 88.491, subdivision 2. 
159.23 	The purchaser or grantee must notify the commissioner in writing of the sale or 
159.24 	transfer of the property. Owners of land that qualifies for inclusion pursuant to section 
159.25 	88.49, subdivision 9a, or 88.491, subdivision 2, must notify the commissioner in writing 
159.26 	of the expiration of the auxiliary forest contract or land trade with a governmental unit 
159.27 	and submit an application to the commissioner by August 15 July 1 in order to be eligible 
159.28 	to receive a payment by October 1 of that same year. For purposes of section 290C.11, 
159.29 	claimant also includes any person bound by the covenant required in section 290C.04.
159.30 	(b) No more than one claimant is entitled to a payment under this chapter with 
159.31 	respect to any tract, parcel, or piece of land enrolled under this chapter that has been 
159.32 	assigned the same parcel identification number. When enrolled forest land is owned by 
159.33 	two or more persons, the owners must determine between them which person is eligible to 
159.34 	claim the payments provided under sections 290C.01 to 290C.11. In the case of property 
160.1 	sold or transferred, the former owner and the purchaser or grantee must determine between 
160.2 	them which person is eligible to claim the payments provided under sections 290C.01 to 
160.3 	290C.11. The owners, transferees, or grantees must notify the commissioner in writing 
160.4 	which person is eligible to claim the payments.

160.5 	EFFECTIVE DATE. This section is effective for certifications and applications 
160.6 	due in 2016 and thereafter.

160.7 	Sec. 4. Minnesota Statutes 2014, section 290C.02, subdivision 6, is amended to read:
160.8 		Subd. 6.Forest land. "Forest land" means land containing a minimum of 20 
160.9 	contiguous acres for which the owner has implemented a forest management plan that was 
160.10 	prepared or updated within the past ten years by an approved plan writer. For purposes of 
160.11 	this subdivision, acres are considered to be contiguous even if they are separated by a road, 
160.12 	waterway, railroad track, or other similar intervening property. At least 50 percent of the 
160.13 	contiguous acreage must meet the definition of forest land in section 88.01, subdivision 
160.14 	7. For the purposes of sections 290C.01 to 290C.11, forest land does not include (i) 
160.15 	land used for residential or agricultural purposes, (ii) land enrolled in the reinvest in 
160.16 	Minnesota program, a state or federal conservation reserve or easement reserve program 
160.17 	under sections 103F.501 to 103F.531, the Minnesota agricultural property tax law under 
160.18 	section 273.111, or land subject to agricultural land preservation controls or restrictions 
160.19 	as defined in section 40A.02 or under the Metropolitan Agricultural Preserves Act under 
160.20 	chapter 473H, (iii) land exceeding 60,000 acres that is subject to a single conservation 
160.21 	easement funded under section 97A.056 or a comparable permanent easement conveyed 
160.22 	to a governmental or nonprofit entity; (iv) any land that becomes subject to a conservation 
160.23 	easement funded under section 97A.056 or a comparable permanent easement conveyed 
160.24 	to a governmental or nonprofit entity after May 30, 2013; or (v) (iv) land improved with a 
160.25 	structure, pavement, sewer, campsite, or any road, other than a township road, used for 
160.26 	purposes not prescribed in the forest management plan.

160.27 	EFFECTIVE DATE. This section is effective for applications made in 2016 and 
160.28 	thereafter. 

160.29 	Sec. 5. Minnesota Statutes 2014, section 290C.03, is amended to read:
160.30 	290C.03 ELIGIBILITY REQUIREMENTS.
160.31 	(a) Land may be enrolled in the sustainable forest incentive program under this 
160.32 	chapter if all of the following conditions are met:
161.1 	(1) the land consists of at least 20 contiguous acres and at least 50 percent of the 
161.2 	land must meet the definition of forest land in section 88.01, subdivision 7, during the 
161.3 	enrollment;
161.4 	(2) a forest management plan for the land must be prepared by an approved plan 
161.5 	writer and implemented during the period in which the land is enrolled;
161.6 	(3) timber harvesting and forest management guidelines must be used in conjunction 
161.7 	with any timber harvesting or forest management activities conducted on the land during 
161.8 	the period in which the land is enrolled;
161.9 	(4) the land must be enrolled for a minimum of eight years;
161.10 	(5) there are no delinquent property taxes on the land; and
161.11 	(6) claimants enrolling more than 1,920 acres or enrolling any land that is subject 
161.12 	to a conservation easement funded under section 97A.056, or a comparable permanent 
161.13 	easement conveyed to a governmental or nonprofit entity in the sustainable forest incentive 
161.14 	program must allow year-round, nonmotorized access to fish and wildlife resources and 
161.15 	motorized access on established and maintained roads and trails, unless the road or trail is 
161.16 	temporarily closed for safety, natural resource, or road damage reasons on enrolled land 
161.17 	except within one-fourth mile of a permanent dwelling or during periods of high fire 
161.18 	hazard as determined by the commissioner of natural resources;
161.19 	(7) the claimant has registered with the forest management plan under clause (2) 
161.20 	with the commissioner of natural resources, who has determined that the land meets 
161.21 	qualifications for enrollment; and
161.22 	(8) the land is not classified as class 2c managed forest land.
161.23 	(b) Claimants required to allow access under paragraph (a), clause (6), do not by 
161.24 	that action:
161.25 	(1) extend any assurance that the land is safe for any purpose;
161.26 	(2) confer upon the person the legal status of an invitee or licensee to whom a duty 
161.27 	of care is owed; or
161.28 	(3) assume responsibility for or incur liability for any injury to the person or property 
161.29 	caused by an act or omission of the person.
161.30 	(c) The commissioner of natural resources shall annually provide county assessors 
161.31 	verification information regarding plan registration under paragraph (a), clause (7), on 
161.32 	a timely basis.
161.33 	(d) A minimum of three acres must be excluded from enrolled land when the land is 
161.34 	improved with a structure that is not a minor, ancillary, nonresidential structure.
161.35 	(e) If land does not meet the definition of forest land in section 290C.02, subdivision 
161.36 	6, because the land is: (1) enrolled in the reinvest in Minnesota program; (2) enrolled in 
162.1 	a state or federal conservation reserve or easement program under sections 103F.501 to 
162.2 	103F.531; (3) subject to the Minnesota agricultural property tax under section 273.111; or 
162.3 	(4) subject to agricultural land preservation controls or restrictions as defined in section 
162.4 	40A.02, or the Metropolitan Agricultural Preserves Act under chapter 473H, the entire tax 
162.5 	parcel that contains the land is not eligible to be enrolled in the program.

162.6 	EFFECTIVE DATE. This section is effective for certifications and applications 
162.7 	due in 2016 and thereafter.

162.8 	Sec. 6. Minnesota Statutes 2014, section 290C.04, is amended to read:
162.9 	290C.04 APPLICATIONS.
162.10 	(a) A landowner may apply to enroll forest land for the sustainable forest incentive 
162.11 	program under this chapter. The claimant must complete, sign, and submit an application 
162.12 	to the commissioner by September 30 in order for the land to become eligible beginning 
162.13 	in the next year. The application shall be on a form prescribed by the commissioner 
162.14 	commissioners of revenue and natural resources and must include the information the 
162.15 	commissioner deems necessary. At a minimum, the application must show the following 
162.16 	information for the land and the claimant: (i) the claimant's Social Security number or 
162.17 	state or federal business tax registration number and date of birth, (ii) the claimant's 
162.18 	address, (iii) the claimant's signature, (iv) the county's parcel identification numbers for 
162.19 	the tax parcels that completely contain the claimant's forest land that is sought to be 
162.20 	enrolled, (v) the number of acres eligible for enrollment in the program, (vi) the approved 
162.21 	plan writer's signature and identification number, and (vii) proof, in a form specified by the 
162.22 	commissioner, that the claimant has executed and acknowledged in the manner required 
162.23 	by law for a deed, and recorded, a covenant that the land is not and shall not be developed 
162.24 	in a manner inconsistent with the requirements and conditions of this chapter, and (viii) a 
162.25 	registration number for the forest management plan, issued by the commissioner of natural 
162.26 	resources. The covenant shall state in writing that the covenant is binding on the claimant 
162.27 	and the claimant's successor or assignee, and that it runs with the land for a period of not 
162.28 	less than eight years unless the claimant requests termination of the covenant after a 
162.29 	reduction in payments due to changes in the payment formula under section 290C.07. The 
162.30 	commissioner shall specify the form of the covenant and provide copies upon request. 
162.31 	The covenant must include a legal description that encompasses all the forest land that the 
162.32 	claimant wishes to enroll under this section or the certificate of title number for that land if 
162.33 	it is registered land. The commissioner of natural resources shall record the area eligible 
163.1 	for enrollment into the Sustainable Forest Incentive Act as electronic geospatial data, as 
163.2 	defined in section 16E.30, subdivision 10.
163.3 	(b) The commissioner shall provide a copy of the application filed by the claimant 
163.4 	and all supporting materials to the commissioner of natural resources within 15 days of 
163.5 	receipt or by September 1, whichever is sooner. The commissioner of natural resources 
163.6 	must notify the commissioner whether the applicant qualifies for enrollment within 30 
163.7 	days of receipt, and if the applicant qualifies for enrollment, the commissioner of natural 
163.8 	resources shall specify the number of qualifying acres per tax parcel.
163.9 	(b) In all cases, (c) The commissioner shall notify the claimant within 90 days after 
163.10 	receipt of a completed application that either the land has or has not been approved for 
163.11 	enrollment. A claimant whose application is denied may appeal the denial as provided 
163.12 	in section 290C.13.
163.13 	(c) (d) Within 90 days after the denial of an application, or within 90 days after the 
163.14 	final resolution of any appeal related to the denial, the commissioner shall execute and 
163.15 	acknowledge a document releasing the land from the covenant required under this chapter. 
163.16 	The document must be mailed to the claimant and is entitled to be recorded.
163.17 	(d) (e) The Social Security numbers collected from individuals under this section are 
163.18 	private data as provided in section 13.355. The federal business tax registration number 
163.19 	and date of birth data collected under this section are also private data on individuals or 
163.20 	nonpublic data, as defined in section 13.02, subdivisions 9 and 12, but may be shared 
163.21 	with county assessors for purposes of tax administration and with county treasurers for 
163.22 	purposes of the revenue recapture under chapter 270A.

163.23 	EFFECTIVE DATE. This section is effective for certifications and applications 
163.24 	due in 2016 and thereafter.

163.25 	Sec. 7. Minnesota Statutes 2014, section 290C.05, is amended to read:
163.26 	290C.05 ANNUAL CERTIFICATION AND MONITORING.
163.27 	(a) On or before July 1 May 15 of each year, beginning with the year after the 
163.28 	original claimant has received an approved application, the commissioner shall send each 
163.29 	claimant enrolled under the sustainable forest incentive program a certification form. For 
163.30 	purposes of this section, the original claimant is the person that filed the first application 
163.31 	under section 290C.04 to enroll the land in the program current property owner on record, 
163.32 	or the person designated by the owners in the case of multiple ownership. The claimant 
163.33 	must sign and return the certification, attesting to the commissioner by July 1 of that 
163.34 	same year, and (1) attest that the requirements and conditions for continued enrollment 
164.1 	in the program are currently being met, and must return the signed certification form to 
164.2 	the commissioner by August 15 of that same year (2) provide a report in the form and 
164.3 	manner determined by the commissioner of natural resources describing the management 
164.4 	practices that have been carried out on the enrolled property during the prior year. If the 
164.5 	claimant does not return an annual certification form by the due date, the provisions 
164.6 	in section 290C.11 apply. The commissioner of natural resources will verify that the 
164.7 	claimant meets program requirements.
164.8 	(b) The commissioner must provide the certification form and annual report described 
164.9 	in paragraph (a), clause (2), to the commissioner of natural resources by August 1.
164.10 	(c) The commissioner of natural resources must conduct annual monitoring 
164.11 	of a subset of claimants, excluding land also enrolled in a conservation easement 
164.12 	program. Claimants will be selected for monitoring based on reported violations, annual 
164.13 	certification, and random selections. Monitoring will be conducted on ten percent of 
164.14 	claimants as of July 1 of each year. Monitoring may include, but is not limited to, a site 
164.15 	visit by a department of natural resources or a contracted forester. The commissioner of 
164.16 	natural resources will develop a monitoring form to record the monitoring data.

164.17 	EFFECTIVE DATE. Paragraphs (a) and (b) are effective for certifications and 
164.18 	applications due in 2016 and thereafter. Paragraph (c) is effective July 1, 2018.

164.19 	Sec. 8. Minnesota Statutes 2014, section 290C.055, is amended to read:
164.20 	290C.055 LENGTH OF COVENANT.
164.21 	(a) The covenant remains in effect for a minimum of eight years Claimants enrolling 
164.22 	any land that is subject to a conservation easement funded under section 97A.056 or a 
164.23 	comparable permanent easement conveyed to a governmental or nonprofit entity must 
164.24 	enroll their land under a covenant with a minimum duration of eight years. All other 
164.25 	claimants may choose to enroll their land under a covenant with a minimum duration of 
164.26 	eight, 20, or 50 years. If land is removed the claimant requests removal from the program 
164.27 	before it has been enrolled for four years half the number of years of the covenant's 
164.28 	duration, the covenant remains in effect for eight years the entire duration of the covenant 
164.29 	from the date recorded.
164.30 	(b) If land that has been enrolled for four years half the number of years of the 
164.31 	covenant's minimum duration or more is removed from the program for any reason, there 
164.32 	is a waiting period before the covenant terminates. The covenant terminates on January 1 
164.33 	of the fifth, 11th, or 26th calendar year for the eight-, 20-, or 50-year minimum covenant, 
164.34 	respectively, that begins after the date that:
165.1 	(1) the commissioner receives notification from the claimant that the claimant wishes 
165.2 	to remove the land from the program under section 290C.10; or
165.3 	(2) the date that the land is removed from the program under section 290C.11.
165.4 	(c) Notwithstanding the other provisions of this section, the covenant is terminated:
165.5 	(1) at the same time that the land is removed from the program due to acquisition of 
165.6 	title or possession for a public purpose under section 290C.10; or
165.7 	(2) at the request of the claimant after a reduction in payments due to changes in the 
165.8 	payment formula under section 290C.07.

165.9 	EFFECTIVE DATE. This section is effective for certifications and applications in 
165.10 	2016 and thereafter.

165.11 	Sec. 9. Minnesota Statutes 2014, section 290C.07, is amended to read:
165.12 	290C.07 CALCULATION OF INCENTIVE PAYMENT. 
165.13 	An approved claimant under the sustainable forest incentive program is eligible to 
165.14 	receive an annual payment for each acre of enrolled land. The payment shall equal $7 
165.15 	per acre for each acre enrolled in the sustainable forest incentive program a percentage of 
165.16 	the property tax that would be paid on the land determined by using the previous year's 
165.17 	statewide average total tax rate for all taxes levied within townships or unorganized 
165.18 	territories, the estimated market value per acre as calculated in section 290C.06, and 
165.19 	a class rate of one percent as follows: (1) for claimants enrolling land that is subject 
165.20 	to a conservation easement funded under section 97A.056 or a comparable permanent 
165.21 	easement conveyed to a governmental or nonprofit entity before May 31, 2013, under an 
165.22 	eight-year covenant, 25 percent; (2) for claimants enrolling land that is not subject to 
165.23 	a conservation easement under an eight-year covenant, 65 percent; (3) for claimants 
165.24 	enrolling land that is not subject to a conservation easement  under a 20-year covenant, 90 
165.25 	percent; and (4) for claimants enrolling land that is not subject to a conservation easement 
165.26 	under a 50-year covenant, 115 percent. The calculated payment shall not be less than the 
165.27 	payment received in 2016 and shall not increase or decrease by more than ten percent 
165.28 	relative to the payment received for the previous year.

165.29 	EFFECTIVE DATE. This section is effective for calculations made in 2016 and 
165.30 	thereafter. 

165.31 	Sec. 10. Minnesota Statutes 2014, section 290C.08, subdivision 1, is amended to read:
165.32 		Subdivision 1.Annual payment. An incentive payment for each acre of enrolled 
165.33 	land will be made annually to each claimant in the amount determined under section 
166.1 	290C.07. By September 15 of each year, the commissioner of natural resources will 
166.2 	certify to the commissioner the eligibility of each claimant to receive a payment. The 
166.3 	incentive payment shall be paid by the commissioner on or before October 1 each year 
166.4 	based on the certifications due August 15 July 1 of that year. Interest at the annual rate 
166.5 	determined under section 270C.40 shall be included with any incentive payment not 
166.6 	paid by the later of October 1 of the year the certification was due, or 45 days after the 
166.7 	completed certification was returned or filed if the commissioner accepts a certification 
166.8 	filed after August 15 July 1 of the taxes payable year as the resolution of an appeal.

166.9 	EFFECTIVE DATE. This section is effective for certifications and applications 
166.10 	due in 2016 and thereafter.

166.11 	Sec. 11. Minnesota Statutes 2014, section 290C.10, is amended to read:
166.12 	290C.10 WITHDRAWAL PROCEDURES.
166.13 	An approved claimant (a) The current owner of land enrolled under the sustainable 
166.14 	forest incentive program for a minimum of four years half the number of years of the 
166.15 	covenant's minimum duration may notify the commissioner of the intent to terminate 
166.16 	enrollment. Within 90 days of receipt of notice to terminate enrollment, the commissioner 
166.17 	shall inform the claimant in writing, acknowledging receipt of this notice and indicating 
166.18 	the effective date of termination from the sustainable forest incentive program. 
166.19 	Termination of enrollment in the sustainable forest incentive program occurs on January 1 
166.20 	of the fifth, 11th, or 26th calendar year for the eight-, 20-, or 50-year respective minimum 
166.21 	covenant that begins after receipt by the commissioner of the termination notice. After the 
166.22 	commissioner issues an effective date of termination, a claimant wishing to continue the 
166.23 	land's enrollment in the sustainable forest incentive program beyond the termination date 
166.24 	must apply for enrollment as prescribed in section 290C.04. A claimant who withdraws 
166.25 	a parcel of land from this program may not reenroll the parcel for a period of three 
166.26 	years. Within 90 days after the termination date, the commissioner shall execute and 
166.27 	acknowledge a document releasing the land from the covenant required under this chapter. 
166.28 	The document must be mailed to the claimant and is entitled to be recorded.
166.29 	(b) Notwithstanding paragraph (a), on request of the claimant,  the commissioner may 
166.30 	allow early withdrawal from the Sustainable Forest Incentive Act without penalty when the 
166.31 	state of Minnesota, any local government unit, or any other entity which has the power of 
166.32 	eminent domain acquires title or possession to the land for a public purpose notwithstanding 
166.33 	the provisions of this section. In the case of such an eligible acquisition under this 
167.1 	paragraph, the commissioner shall execute and acknowledge a document releasing the 
167.2 	land acquired by the state, local government unit, or other entity from the covenant.
167.3 	(c) Notwithstanding paragraph (a), on request of the claimant, the commissioner 
167.4 	shall allow early withdrawal from the Sustainable Forest Incentive Act without penalty 
167.5 	when the government or nonprofit entity acquires a permanent conservation easement 
167.6 	on the enrolled property and the conservation easement is at least as restrictive as the 
167.7 	covenant required under section 290C.04. The commissioner of natural resources must 
167.8 	notify the commissioner of lands acquired under this paragraph that are eligible for 
167.9 	withdrawal. In the case of an eligible easement acquisition under this paragraph, the 
167.10 	commissioner shall execute and acknowledge a document releasing the land subject to 
167.11 	the easement from the covenant.
167.12 	(d) Notwithstanding paragraph (a), on request of the claimant, the commissioner 
167.13 	shall allow early withdrawal from the Sustainable Forest Incentive Act without penalty for 
167.14 	land that is subject to fee or easement acquisition or lease to the state of Minnesota or a 
167.15 	political subdivision of the state for the public purpose of a paved trail. The commissioner 
167.16 	of natural resources must notify the commissioner of lands acquired under this paragraph 
167.17 	that are eligible for withdrawal. In the case of an eligible fee or easement acquisition or 
167.18 	lease under this paragraph, the commissioner shall execute and acknowledge a document 
167.19 	releasing the land subject to fee or easement acquisition or lease by the state or political 
167.20 	subdivision of the state.
167.21 	(e) All other enrolled land must remain in the program.

167.22 	EFFECTIVE DATE. Paragraphs (c) and (d) are effective the day following final 
167.23 	enactment. Paragraphs (a), (b), and (e) are effective for notifications made in 2016 and 
167.24 	thereafter.

167.25 	Sec. 12. [290C.101] TRANSFER OF OWNERSHIP.
167.26 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms 
167.27 	have the meanings provided.
167.28 	(b) "New owner" means a prospective purchaser or grantee.
167.29 	(c) "Owner" means a grantor or seller.
167.30 		Subd. 2.Notification to commissioner. (a) An owner must notify the commissioner 
167.31 	if the owner transfers any or all of the owner's land enrolled in the sustainable forest 
167.32 	incentive program to one or more new owners within 60 days of the transfer of title to the 
167.33 	property. The notification must include the legal descriptions of the transferred property, 
167.34 	the tax parcel numbers, and the name and address of the new owner. If transfer of ownership 
167.35 	is a result of the death of the claimant, the provisions of section 290C.12 shall apply.
168.1 	(b) Upon notification, the commissioner shall inform the new owner of the 
168.2 	restrictions of the covenant required by section 290C.04 and the withdrawal procedures 
168.3 	under section 290C.10. In order for the new owner to receive payments pursuant to this 
168.4 	chapter, the new owner must file an application and register a new forest management plan 
168.5 	with the commissioner of natural resources within two years from the date the title of the 
168.6 	property was transferred to remain eligible.
168.7 		Subd. 3.Termination of enrollment. The commissioner will terminate enrollment 
168.8 	according to the procedure in section 290C.10 for failure of the new owner to register a 
168.9 	forest management plan within the time period in subdivision 2, paragraph (b).

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

168.11 	Sec. 13. Minnesota Statutes 2014, section 290C.11, is amended to read:
168.12 	290C.11 PENALTIES FOR REMOVAL.
168.13 	(a) If the commissioner determines that land enrolled in the sustainable forest 
168.14 	incentive program is in violation of the conditions for enrollment as specified in section 
168.15 	290C.03, or upon notification by the commissioner of natural resources that land enrolled 
168.16 	is in violation of the conditions for enrollment, the commissioner shall notify the claimant 
168.17 	current owner of the land of the intent to remove all the tax parcel of the enrolled land 
168.18 	where the violation has occurred from the sustainable forest incentive program. The 
168.19 	penalties described under paragraph (c) shall apply. The claimant current owner has 60 
168.20 	days to appeal this determination under the provisions of section 290C.13.
168.21 	(b) If the commissioner determines the land is to be removed from the sustainable 
168.22 	forest incentive program due to the construction or addition of an improvement to the 
168.23 	property, the claimant owner of the tax parcel that is in violation is liable for payment 
168.24 	to the commissioner in the amount equal to : (1) the payments received issued related to 
168.25 	the enrolled tax parcel under this chapter for the previous four-year period in the case of 
168.26 	an eight-year minimum covenant, ten-year period in the case of a 20-year minimum 
168.27 	covenant, and 25-year period in the case of a 50-year minimum covenant, plus interest; 
168.28 	and (2) 25 percent of the estimated market value of the property as reclassified under 
168.29 	section 273.13 due to the structure being on the tax parcel, as determined by the assessor.
168.30 	(c) If the commissioner of natural resources determines that the land is used for 
168.31 	purposes other than forestry purposes, the commissioner of natural resources shall notify 
168.32 	the commissioner of revenue, who shall notify the current owner of the tax parcel that is in 
168.33 	violation that the current owner is liable to the commissioner in an amount equal to: (1) 30 
168.34 	percent of the estimated market value as property reclassified under section 273.13, due to 
169.1 	the change in use, as determined by the assessor; and (2) the payments issued related to 
169.2 	the enrolled tax parcel under this chapter for the previous four-year period in the case of 
169.3 	an eight-year covenant, ten-year period in the case of a 20-year covenant, and 25-year 
169.4 	period in the case of a 50-year covenant, plus interest.
169.5 	(d) The claimant has 90 days to satisfy the payment for removal of land from the 
169.6 	sustainable forest incentive program under this section. If the penalty is not paid within 
169.7 	the 90-day period under this paragraph, the commissioner shall certify the amount to the 
169.8 	county auditor for collection as a part of the general ad valorem real property taxes on the 
169.9 	land in the following taxes payable year.

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

169.11 	Sec. 14. Minnesota Statutes 2014, section 290C.13, subdivision 6, is amended to read:
169.12 		Subd. 6.Determination of appeal. On the basis of applicable law and available 
169.13 	information, the commissioner shall determine the validity, if any, in whole or in part, 
169.14 	of the appeal and notify the claimant of the decision. This notice must be in writing 
169.15 	and contain the basis for the determination. The commissioner shall consult with the 
169.16 	commissioner of natural resources when an appeal relates to the use of the property for 
169.17 	forestry or nonforestry purposes and for appeals related to forest management plans.

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

169.19 	Sec. 15. SUSTAINABLE FOREST INCENTIVE ACT; TRANSITION 
169.20 	PROVISION.
 169.21 	(a) For lands enrolled in the Sustainable Forest Incentive Act on May 15, 2015, the 
169.22 	owner of enrolled lands may elect through May 15, 2017, and without penalty, to change 
169.23 	the length of a covenant, if eligible, under Minnesota Statutes, section 290C.055. The 
169.24 	owner of enrolled land must provide notice to the Department of Revenue of its intent to 
169.25 	change the length of its covenant.
169.26 	(b) For lands enrolled in the Sustainable Forest Incentive Act on May 15, 2015, the 
169.27 	owner of enrolled land must comply with the changes made in the act by certifications due 
169.28 	in 2017, as required under Minnesota Statutes, section 290C.05.

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

169.30 	Sec. 16.  REPEALER.
 169.31 	Minnesota Statutes 2014, sections 290C.02, subdivisions 5 and 9, are repealed.

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

170.2 	ARTICLE 12
170.3 	MISCELLANEOUS

170.4 	Section 1. Minnesota Statutes 2014, section 16A.152, subdivision 2, is amended to read:
170.5 		Subd. 2.Additional revenues; priority. (a) If on the basis of a forecast of general 
170.6 	fund revenues and expenditures, the commissioner of management and budget determines 
170.7 	that there will be a positive unrestricted budgetary general fund balance at the close of 
170.8 	the biennium, the commissioner of management and budget must allocate money to the 
170.9 	following accounts and purposes in priority order:
170.10 	(1) the cash flow account established in subdivision 1 until that account reaches 
170.11 	$350,000,000;
170.12 	(2) the budget reserve account established in subdivision 1a until that account 
170.13 	reaches $810,992,000 $994,339,000;
170.14 	(3) the amount necessary to increase the aid payment schedule for school district 
170.15 	aids and credits payments in section 127A.45 to not more than 90 percent rounded to the 
170.16 	nearest tenth of a percent without exceeding the amount available and with any remaining 
170.17 	funds deposited in the budget reserve; and
170.18 	(4) the amount necessary to restore all or a portion of the net aid reductions under 
170.19 	section 127A.441 and to reduce the property tax revenue recognition shift under section 
170.20 	123B.75, subdivision 5, by the same amount.
170.21 	(b) The amounts necessary to meet the requirements of this section are appropriated 
170.22 	from the general fund within two weeks after the forecast is released or, in the case of 
170.23 	transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations 
170.24 	schedules otherwise established in statute.
170.25 	(c) The commissioner of management and budget shall certify the total dollar 
170.26 	amount of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of 
170.27 	education. The commissioner of education shall increase the aid payment percentage and 
170.28 	reduce the property tax shift percentage by these amounts and apply those reductions to 
170.29 	the current fiscal year and thereafter.

170.30 	EFFECTIVE DATE. This section is effective July 1, 2015.

170.31 	Sec. 2. Minnesota Statutes 2014, section 16A.152, subdivision 8, is amended to read:
170.32 		Subd. 8.Report on budget reserve percentage. (a) The commissioner of 
170.33 	management and budget shall develop and annually review a methodology for evaluating 
171.1 	the adequacy of the budget reserve based on the volatility of Minnesota's general fund 
171.2 	tax structure. The review must take into consideration relevant statistical and economic 
171.3 	literature. After completing the review, the commissioner may revise the methodology 
171.4 	if necessary. The commissioner must use the methodology to annually estimate the 
171.5 	percentage of the current biennium's general fund nondedicated revenues recommended 
171.6 	as a budget reserve.
171.7 	(b) By January 15 August 31 of each year, the commissioner shall report the 
171.8 	percentage of the current biennium's general fund nondedicated revenue that is 
171.9 	recommended as a budget reserve to the chairs and ranking minority members of the 
171.10 	legislative committees with jurisdiction over the Department of Management and Budget 
171.11 	senate committee on finance, the house of representatives committee on ways and means, 
171.12 	and the senate and house of representatives committees on taxes. The report must also 
171.13 	specify:
171.14 	(1) whether the commissioner revised the recommendation as a result of significant 
171.15 	changes in the mix of general fund taxes or the base of one or more general fund taxes;
171.16 	(2) whether the commissioner revised the recommendation as a result of a revision 
171.17 	to the methodology; and
171.18 	(3) any additional appropriate information.

171.19 	EFFECTIVE DATE. This section is effective July 1, 2015.

171.20 	Sec. 3. Minnesota Statutes 2014, section 271.08, subdivision 1, is amended to read:
171.21 		Subdivision 1.Written order. The Tax Court, except in Small Claims Division, 
171.22 	shall determine every appeal by written order containing findings of fact and the decision 
171.23 	of the tax court. A memorandum of the grounds of the decision shall be appended. Notice 
171.24 	of the entry of the order and of the substance of the decision shall be mailed to all parties. 
171.25 	A motion for rehearing, which includes a motion for amended findings of fact, conclusions 
171.26 	of law, or a new trial, must be served by the moving party within 15 30 days after mailing 
171.27 	of the notice by the court as specified in this subdivision, and the motion must be heard 
171.28 	within 30 60 days thereafter, unless the time for hearing is extended by the court within 
171.29 	the 30-day 60-day period for good cause shown.

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

171.31 	Sec. 4. Minnesota Statutes 2014, section 271.21, subdivision 2, is amended to read:
171.32 		Subd. 2.Jurisdiction. At the election of the taxpayer, the Small Claims Division 
171.33 	shall have jurisdiction only in the following matters:
172.1 	(a) cases involving valuation, assessment, or taxation of real or personal property, if:
172.2 	(i) the issue is a denial of a current year application for the homestead classification 
172.3 	for the taxpayer's property;
172.4 	(ii) only one parcel is included in the petition, the entire parcel is classified as 
172.5 	homestead class 1a or 1b under section 273.13, and the parcel contains no more than 
172.6 	one dwelling unit;
172.7 	(iii) the entire property is classified as agricultural homestead class 2a or 1b under 
172.8 	section 273.13; or
172.9 	(iv) the assessor's estimated market value of the property included in the petition 
172.10 	is less than $300,000; or
172.11 	(b) any case not involving valuation, assessment, or taxation of real and personal 
172.12 	property in which the amount in controversy does not exceed $5,000 $15,000, including 
172.13 	penalty and interest.

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

172.15 	Sec. 5. Minnesota Statutes 2014, section 296A.01, subdivision 12, is amended to read:
172.16 		Subd. 12.Compressed natural gas or CNG. "Compressed natural gas" or "CNG" 
172.17 	means natural gas, primarily methane, condensed under high pressure and stored in 
172.18 	specially designed storage tanks at between 2,000 and 3,600 pounds per square inch. 
172.19 	For purposes of this chapter, the energy content of CNG is considered to be 1,000 900 
172.20 	BTUs per cubic foot.

172.21 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
172.22 	June 30, 2015.

172.23 	Sec. 6. Minnesota Statutes 2014, section 296A.01, is amended by adding a subdivision 
172.24 	to read:
172.25 		Subd. 13a.Dealer of gasoline used as a substitute for aviation gasoline. "Dealer 
172.26 	of gasoline used as a substitute for aviation gasoline" means any person who sells gasoline 
172.27 	on the premises of an airport as defined under section 360.013, subdivision 39, to be 
172.28 	dispensed directly into the fuel tank of an aircraft.

172.29 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
172.30 	June 30, 2015.

172.31 	Sec. 7. Minnesota Statutes 2014, section 296A.07, subdivision 4, is amended to read:
173.1 		Subd. 4.Exemptions. The provisions of subdivision 1 do not apply to gasoline or 
173.2 	denatured ethanol purchased by:
173.3 	(1) a transit system or transit provider receiving financial assistance or 
173.4 	reimbursement under section 174.24, 256B.0625, subdivision 17, or 473.384;
173.5 	(2) providers of transportation to recipients of medical assistance home and 
173.6 	community-based services waivers enrolled in day programs, including adult day care, 
173.7 	family adult day care, day treatment and habilitation, prevocational services, and 
173.8 	structured day services;
173.9 	(3) an ambulance service licensed under chapter 144E;
173.10 	(4) providers of medical or dental services by a federally qualified health center, 
173.11 	as defined under title 19 of the Social Security Act, as amended by Section 4161 of the 
173.12 	Omnibus Budget Reconciliation Act of 1990, with a motor vehicle used exclusively as a 
173.13 	mobile medical unit; or
173.14 	(5) a licensed distributor to be delivered to a terminal for use in blending; or
173.15 	(6) a dealer of gasoline used as a substitute for aviation gasoline.

173.16 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
173.17 	June 30, 2015.

173.18 	Sec. 8. Minnesota Statutes 2014, section 296A.08, subdivision 2, is amended to read:
173.19 		Subd. 2.Rate of tax. The special fuel excise tax is imposed at the following rates:
173.20 	(a) Liquefied petroleum gas or propane is taxed at the rate of 18.75 cents per gallon.
173.21 	(b) Liquefied natural gas is taxed at the rate of 15 cents per gallon.
173.22 	(c) Compressed natural gas is taxed at the rate of $2.174 $1.974 per thousand cubic 
173.23 	feet; or 25 cents per gasoline equivalent. For purposes of this paragraph, "gasoline 
173.24 	equivalent," as defined by the National Conference on Weights and Measures, is 5.66 
173.25 	pounds of natural gas or 126.67 cubic feet.
173.26 	(d) All other special fuel is taxed at the same rate as the gasoline excise tax as 
173.27 	specified in section 296A.07, subdivision 2. The tax is payable in the form and manner 
173.28 	prescribed by the commissioner.

173.29 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
173.30 	June 30, 2015.

173.31 	Sec. 9. Minnesota Statutes 2014, section 296A.09, subdivision 1, is amended to read:
173.32 		Subdivision 1.Gasoline tax imposed. Subject to any refunds or credits there is 
173.33 	imposed an excise tax, at the rate of five cents per gallon on all aviation gasoline received, 
174.1 	sold, stored, or withdrawn from storage in this state and on all gasoline used as a substitute 
174.2 	for aviation gasoline. Aviation gasoline is defined in section 296A.01, subdivision 7.

174.3 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
174.4 	June 30, 2015.

174.5 	Sec. 10. Minnesota Statutes 2014, section 296A.09, subdivision 3, is amended to read:
174.6 		Subd. 3.Exception to tax for aviation use. The provisions of subdivisions 1 and 2 
174.7 	do not apply to gasoline used as a substitute for aviation gasoline, aviation gasoline or 
174.8 	special fuel purchased and placed in the fuel tanks of an aircraft outside the state, even 
174.9 	though the gasoline may be consumed within this state.

174.10 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
174.11 	June 30, 2015.

174.12 	Sec. 11. Minnesota Statutes 2014, section 296A.09, subdivision 5, is amended to read:
174.13 		Subd. 5.Tax not on consumption. The taxes imposed by subdivisions 1 and 2 are 
174.14 	expressly declared not to be a tax upon consumption of gasoline used as a substitute for 
174.15 	aviation gasoline, aviation gasoline or special fuel by an aircraft.

174.16 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
174.17 	June 30, 2015.

174.18 	Sec. 12. Minnesota Statutes 2014, section 296A.09, subdivision 6, is amended to read:
174.19 		Subd. 6.Exemptions. The provisions of subdivisions 1 and 2 do not apply to 
174.20 	gasoline used as a substitute for aviation gasoline, aviation gasoline or jet fuel purchased 
174.21 	by an ambulance service licensed under chapter 144E.

174.22 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
174.23 	June 30, 2015.

174.24 	Sec. 13. Minnesota Statutes 2014, section 296A.15, subdivision 1, is amended to read:
174.25 		Subdivision 1.Monthly gasoline report; shrinkage allowance. (a) Except 
174.26 	as provided in paragraph (e), on or before the 23rd day of each month, every person 
174.27 	who is required to pay a gasoline tax shall file with the commissioner a report, in the 
174.28 	form and manner prescribed by the commissioner, showing the number of gallons of 
174.29 	petroleum products received by the reporter during the preceding calendar month, and 
174.30 	other information the commissioner may require. A written report is deemed to have 
175.1 	been filed as required in this subdivision if postmarked on or before the 23rd day of the 
175.2 	month in which the tax is payable.
175.3 	(b) The number of gallons of gasoline must be reported in United States standard 
175.4 	liquid gallons, 231 cubic inches, except that the commissioner may upon written 
175.5 	application and for cause shown permit the distributor to report the number of gallons of 
175.6 	gasoline as corrected to a temperature of 60-degrees Fahrenheit. If the application is 
175.7 	granted, all gasoline covered in the application and allowed by the commissioner must 
175.8 	continue to be reported by the distributor on the adjusted basis for a period of one year 
175.9 	from the date of the granting of the application. The number of gallons of petroleum 
175.10 	products other than gasoline must be reported as originally invoiced. Each report must 
175.11 	show separately the number of gallons of aviation gasoline received by the reporter during 
175.12 	each calendar month and the number of gallons of gasoline sold to a dealer of gasoline 
175.13 	used as a substitute for aviation fuel during each calendar month.
175.14 	(c) Each report must also include the amount of gasoline tax on gasoline received by 
175.15 	the reporter during the preceding month. In computing the tax a deduction of 2.5 percent 
175.16 	of the quantity of gasoline received by a distributor shall be made for evaporation and loss. 
175.17 	At the time of reporting, the reporter shall submit satisfactory evidence that one-third of 
175.18 	the 2.5 percent deduction has been credited or paid to dealers on quantities sold to them.
175.19 	(d) Each report shall contain a confession of judgment for the amount of the tax 
175.20 	shown due to the extent not timely paid.
175.21 	(e) Under certain circumstances and with the approval of the commissioner, 
175.22 	taxpayers may be allowed to file reports annually.

175.23 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
175.24 	June 30, 2015.

175.25 	Sec. 14. Minnesota Statutes 2014, section 296A.15, subdivision 4, is amended to read:
175.26 		Subd. 4.Failure to use or sell for intended purpose; report required. (a) Any 
175.27 	person who buys gasoline from a dealer of gasoline used as a substitute for aviation 
175.28 	gasoline, or buys aviation gasoline or special fuel for aircraft use and who has paid the 
175.29 	excise taxes due directly or indirectly through the amount of the tax being included in the 
175.30 	price, or otherwise, and uses said gasoline or special fuel in motor vehicles or knowingly 
175.31 	sells it to any person for use in motor vehicles shall, on or before the 23rd day of the month 
175.32 	following that in which such gasoline or special fuel was so used or sold, report the fact of 
175.33 	the use or sale to the commissioner in the form and manner prescribed by the commissioner.
175.34 	(b) Any person who buys gasoline other than aviation gasoline and who has paid the 
175.35 	motor vehicle gasoline excise tax directly or indirectly through the amount of the tax being 
176.1 	included in the price of the gasoline, or otherwise, who knowingly sells such gasoline to any 
176.2 	person to be used for the purpose of producing or generating power for propelling aircraft, 
176.3 	or who receives, stores, or withdraws from storage gasoline to be used for that purpose, 
176.4 	shall, on or before the 23rd day of the month following that in which such gasoline was so 
176.5 	sold, stored, or withdrawn from storage, report the fact of the sale, storage, or withdrawal 
176.6 	from storage to the commissioner in the form and manner prescribed by the commissioner.

176.7 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
176.8 	June 30, 2015.

176.9 	Sec. 15. Minnesota Statutes 2014, section 296A.17, subdivision 1, is amended to read:
176.10 		Subdivision 1.Aviation refund requirements. Any person claiming to be entitled 
176.11 	to any refund or credit provided for in subdivision 3 shall receive the refund or credit 
176.12 	upon filing with the commissioner a claim in such form and manner prescribed by the 
176.13 	commissioner. The claim shall set forth, among other things, the total number of gallons 
176.14 	of gasoline used as a substitute for aviation gasoline, aviation gasoline or special fuel 
176.15 	for aircraft use upon which the claimant has directly or indirectly paid the excise tax 
176.16 	provided for in this chapter, during the calendar year, which has been received, stored, or 
176.17 	withdrawn from storage by the claimant in this state and not sold or otherwise disposed of 
176.18 	to others. All claims for refunds under this subdivision shall be made on or before April 
176.19 	30 following the end of the calendar year for which the refund is claimed.

176.20 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
176.21 	June 30, 2015.

176.22 	Sec. 16. Minnesota Statutes 2014, section 296A.17, subdivision 2, is amended to read:
176.23 		Subd. 2.Claim for refund; aviation tax. (a) Any person who buys gasoline used 
176.24 	as a substitute for aviation gasoline, aviation gasoline or special fuel for aircraft use and 
176.25 	who has paid the excise taxes directly or indirectly through the amount of the tax being 
176.26 	included in the price, or otherwise, who does not use it in motor vehicles or receive, sell, 
176.27 	store, or withdraw it from storage for the purpose of producing or generating power for 
176.28 	propelling aircraft, shall be reimbursed and repaid the amount of the tax paid upon filing 
176.29 	with the commissioner a claim in the form and manner prescribed by the commissioner. 
176.30 	The claim shall state the total amount of the gasoline used as a substitute for aviation 
176.31 	gasoline, aviation gasoline or special fuel for aircraft use purchased and used by the 
176.32 	applicant, and shall state when and for what purpose it was used. On being satisfied that 
176.33 	the claimant is entitled to payment, the commissioner shall approve the claim and transmit 
177.1 	it to the commissioner of management and budget. The postmark on the envelope in 
177.2 	which a written claim is mailed determines the date of filing.
177.3 	(b) If a claim contains an error in preparation in computation or preparation, the 
177.4 	commissioner is authorized to adjust the claim in accordance with the evidence shown on 
177.5 	the claim or other information available to the commissioner.
177.6 	(c) An applicant who files a claim that is false or fraudulent, is subject to the 
177.7 	penalties provided in section 296A.23 for knowingly and willfully making a false claim.

177.8 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
177.9 	June 30, 2015.

177.10 	Sec. 17. Minnesota Statutes 2014, section 296A.17, subdivision 3, is amended to read:
177.11 		Subd. 3.Refund on graduated basis. Any person who has directly or indirectly 
177.12 	paid the excise tax on gasoline used as a substitute for aviation gasoline, aviation gasoline 
177.13 	or special fuel for aircraft use provided for by this chapter and either paid the airflight 
177.14 	property tax under section 270.072or is an aerial applicator with a category B, general 
177.15 	aerial license, under section 18B.33, shall, as to all such gasoline used as a substitute for 
177.16 	aviation gasoline, aviation gasoline and special fuel received, stored, or withdrawn from 
177.17 	storage by the person in this state in any calendar year and not sold or otherwise disposed 
177.18 	of to others, or intended for sale or other disposition to others, on which such tax has been 
177.19 	so paid, be entitled to the following graduated reductions in such tax for that calendar 
177.20 	year, to be obtained by means of the following refunds:
177.21 	(1) on each gallon of suchgasoline used as a substitute for aviation gasoline, aviation 
177.22 	gasoline or special fuel up to 50,000 gallons, all but five cents per gallon;
177.23 	(2) on each gallon of suchgasoline used as a substitute for aviation gasoline, aviation 
177.24 	gasoline or special fuel above 50,000 gallons and not more than 150,000 gallons, all 
177.25 	but two cents per gallon;
177.26 	(3) on each gallon of suchgasoline used as a substitute for aviation gasoline, aviation 
177.27 	gasoline or special fuel above 150,000 gallons and not more than 200,000 gallons, all 
177.28 	but one cent per gallon;
177.29 	(4) on each gallon of suchgasoline used as a substitute for aviation gasoline, aviation 
177.30 	gasoline or special fuel above 200,000, all but one-half cent per gallon.

177.31 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
177.32 	June 30, 2015.

177.33 	Sec. 18. Minnesota Statutes 2014, section 296A.18, subdivision 1, is amended to read:
178.1 		Subdivision 1.Intent; gasoline use. All gasoline received in this state and all 
178.2 	gasoline produced in or brought into this state except aviation gasoline, gasoline sold to a 
178.3 	dealer of gasoline used as a substitute for aviation gasoline, and marine gasoline shall be 
178.4 	determined to be intended for use in motor vehicles in this state.

178.5 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
178.6 	June 30, 2015.

178.7 	Sec. 19. Minnesota Statutes 2014, section 296A.18, subdivision 8, is amended to read:
178.8 		Subd. 8.Airports. The revenues derived from the excise taxes on gasoline used 
178.9 	as a substitute for aviation gasoline, aviation gasoline and on special fuel received, sold, 
178.10 	stored, or withdrawn from storage as substitutes for aviation gasoline, shall be paid into 
178.11 	the state treasury and credited to the state airports fund. There is hereby appropriated such 
178.12 	sums as are needed to carry out the provisions of this subdivision.

178.13 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
178.14 	June 30, 2015.

178.15 	Sec. 20. Minnesota Statutes 2014, section 296A.19, subdivision 1, is amended to read:
178.16 		Subdivision 1.Retention. All distributors, dealers, special fuel dealers, bulk 
178.17 	purchasers, dealers of gasoline used as a substitute for aviation gasoline, and all users of 
178.18 	special fuel shall keep a true and accurate record of all purchases, transfers, sales, and use 
178.19 	of petroleum products and special fuel, including copies of all sales tickets issued, in a form 
178.20 	and manner approved by the commissioner, and shall retain all such records for 3-1/2 years.

178.21 	EFFECTIVE DATE. This section is effective for sales and purchases made after 
178.22 	June 30, 2015.

178.23 	Sec. 21. Minnesota Statutes 2014, section 297A.994, subdivision 4, is amended to read:
178.24 		Subd. 4.General fund allocations. The commissioner must retain and deposit to 
178.25 	the general fund the following amounts, as required by subdivision 3, clause (3):
178.26 	(1) for state bond debt service support beginning in calendar year 2021, and for each 
178.27 	calendar year thereafter through calendar year 2046, periodic amounts so that not later than 
178.28 	December 31, 2046, an aggregate amount equal to a present value of $150,000,000 has been 
178.29 	deposited in the general fund. To determine aggregate present value, the commissioner 
178.30 	must consult with the commissioner of management and budget regarding the present value 
178.31 	dates, discount rate or rates, and schedules of annual amounts. The present value date or 
178.32 	dates must be based on the date or dates bonds are sold under section 16A.965, or the date 
179.1 	or dates other state funds, if any, are deposited into the construction fund. The discount rate 
179.2 	or rates must be based on the true interest cost of the bonds issued under section 16A.965, 
179.3 	or an equivalent 30-year bond index, as determined by the commissioner of management 
179.4 	and budget. The schedule of annual amounts must be certified to the commissioner by the 
179.5 	commissioner of management and budget and the finance officer of the city;
179.6 	(2) for the capital improvement reserve appropriation to the Minnesota Sports 
179.7 	Facilities Authority beginning in calendar year 2021, and for each calendar year thereafter 
179.8 	through calendar year 2046, an aggregate annual amount equal to the amount paid by the 
179.9 	state for this purpose in that calendar year under section 473J.13, subdivision 4;
179.10 	(3) for the operating expense appropriation to the Minnesota Sports Facilities 
179.11 	Authority beginning in calendar year 2021, and for each calendar year thereafter through 
179.12 	calendar year 2046, an aggregate annual amount equal to the amount paid by the state for 
179.13 	this purpose in that calendar year under section 473J.13, subdivision 2;
179.14 	(4) for recapture of state advances for capital improvements and operating expenses 
179.15 	for calendar years 2016 through 2020 beginning in calendar year 2021, and for each 
179.16 	calendar year thereafter until all amounts under this clause have been paid, proportionate 
179.17 	amounts periodically until an aggregate amount equal to the present value of all amounts 
179.18 	paid by the state have been deposited in the general fund. To determine the present 
179.19 	value of the amounts paid by the state to the authority and the present value of amounts 
179.20 	deposited to the general fund under this clause, the commissioner shall consult with the 
179.21 	commissioner of management and budget regarding the present value dates, discount rate 
179.22 	or rates, and schedule of annual amounts. The present value dates must be based on 
179.23 	the dates state funds are paid to the authority, or the dates the commissioner of revenue 
179.24 	deposits taxes for purposes of this clause to the general fund. The discount rates must be 
179.25 	based on the reasonably equivalent cost of state funds as determined by the commissioner 
179.26 	of management and budget. The schedule of annual amounts must be revised to reflect 
179.27 	amounts paid under section 473J.13, subdivision 2, paragraph (b), for 2016 to 2020, 
179.28 	and subdivision 4, paragraph (c), for 2016 to 2020, and taxes deposited to the general 
179.29 	fund from time to time under this clause, and the schedule and revised schedules must 
179.30 	be certified to the commissioner by the commissioner of management and budget and 
179.31 	the finance officer of the city, and are transferred as accrued from the general fund for 
179.32 	repayment of advances made by the state to the authority; and
179.33 	(5) to capture increases in taxes imposed under the special law, for the benefit of 
179.34 	the Minnesota Sports Facilities Authority, beginning in calendar year 2013 and for each 
179.35 	calendar year thereafter through 2046, there shall be deposited to the general fund in 
179.36 	proportionate periodic payments in the following year, an amount equal to the following:
180.1 	(i) 50 percent of the difference, if any, by which the amount of the net annual taxes 
180.2 	for the previous year exceeds the sum of the net actual taxes in calendar year 2011 plus 
180.3 	$1,000,000, inflated at two percent per year since 2011, minus
180.4 	(ii) 25 percent of the difference, if any, by which the amount of the net annual taxes 
180.5 	for the preceding year exceeds the sum of the net actual taxes in calendar year 2011 plus 
180.6 	$3,000,000, inflated at two percent per year since 2011; and
180.7 	(iii) of the amounts determined under items (i) and (ii), a total of $2,700,000 shall 
180.8 	be used to offset taxes paid by the NFL and its employees in connection with a world 
180.9 	championship football game sponsored by the NFL played at the stadium.

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

180.11 	Sec. 22. [383B.83] LIMITS ON RAILROAD CONDEMNATION POWERS 
180.12 	OVER CERTAIN GOVERNMENTAL PROPERTY INTERESTS.
180.13 	Notwithstanding anything to the contrary in chapter 117, sections 222.26, 222.27, 
180.14 	and 222.36, or any other law, the powers of a foreign or domestic railroad corporation or a 
180.15 	railroad company or a railroad interest acting as a public service corporation or a common 
180.16 	carrier do not include the power to exercise eminent domain over a property interest of 
180.17 	Hennepin County, the Hennepin County Housing and Redevelopment Authority, or the 
180.18 	Hennepin County Regional Railroad Authority if the governmental power, by resolution 
180.19 	of its governing board, determines based on specific findings that the public safety or 
180.20 	access of first responders would be substantially and adversely affected by the exercise. 

180.21 	EFFECTIVE DATE. This section is effective retroactively from March 2, 2015, 
180.22 	and applies to any eminent domain action to acquire any property interest of any of the 
180.23 	named entities.

180.24 	Sec. 23. [465.95] BROADBAND SERVICE PUBLIC-PRIVATE PARTNERSHIPS.
180.25 		Subdivision 1.Local authority; broadband service. (a) A local unit of government 
180.26 	may finance, acquire, and construct broadband equipment.
180.27 	(b) Local units of government and broadband joint powers boards, authorized under 
180.28 	subdivision 3, are authorized to partner or contract with a private provider or cooperative 
180.29 	to finance, acquire and construct the broadband equipment. For purposes of this section, a 
180.30 	"local unit of government" means a statutory city, a home rule charter city, or county.
180.31 		Subd. 2.Local authority; broadband infrastructure bonding. (a) Each local 
180.32 	unit of government may authorize the issuance of general obligation bonds to provide 
180.33 	funds for the acquisition or betterment of its broadband infrastructure, or for refunding 
181.1 	any outstanding bonds issued for that purpose. Bonds may only be issued by the local 
181.2 	unit upon obtaining the approval of a majority of the electors voting on the question of 
181.3 	issuing the obligations.
181.4 	(b) The proceeds of the bonds may also be used, in part, to establish a reserve as 
181.5 	further security for the payment of the principal and interest of the bonds when due.
181.6 	(c) The local unit of government may pledge its full faith, credit, and taxing powers, 
181.7 	or the proceeds of any designated tax levies, or the gross or net revenues or charges to 
181.8 	be derived from any broadband service operated for the local unit of government, or any 
181.9 	combination thereof. Taxes levied for the payment of the bonds and interest shall not reduce 
181.10 	the amounts of other taxes which the local unit of government is authorized by law to levy.
181.11 	(d) Bonds issued under this section may be sold at public or private sale upon the terms 
181.12 	and conditions the local unit of government determines. Except as otherwise provided, the 
181.13 	bonds shall be issued and sold in accordance with the provisions of chapter 475.
181.14 		Subd. 3.Broadband joint powers board. (a) A local unit of government may enter 
181.15 	into an agreement under section 471.59 with other local units of government to finance, 
181.16 	acquire, and construct broadband equipment in the territory within the jurisdiction of all 
181.17 	participating local units of government.
181.18 	(b) An agreement entered into under this section may provide that:
181.19 	(1) each local unit of government shall issue bonds to pay their respective shares of 
181.20 	the cost of the broadband projects;
181.21 	(2) one of the local units of government shall issue bonds to pay the full costs of the 
181.22 	project and the other participating local units of government shall levy the tax authorized 
181.23 	under this subdivision and pledge the collections of the tax to the local unit of government 
181.24 	that issues the bonds; or
181.25 	(3) the joint powers board shall issue revenue bonds to pay the full costs of the 
181.26 	project and the participating local units of government shall levy the tax authorized 
181.27 	under this subdivision and pledge the collections of the tax to the joint powers entity for 
181.28 	payment of the revenue bonds.
181.29 	Bonds may only be issued by the local unit under this subdivision upon obtaining 
181.30 	the approval of a majority of the electors voting on the question of issuing the obligations.
181.31 		Subd. 4.Exemption. Section 237.19 does not apply to broadband activities under 
181.32 	this section.
181.33 		Subd. 5.Applicability. Subdivisions 2 and 3 apply only when a local unit of 
181.34 	government partners or enters into an agreement with a private provider or cooperative to 
181.35 	operate and maintain broadband service and equipment.
182.1 		Subd. 6.Additional authority. This section is in addition to and does not limit 
182.2 	any other authority of a local unit of government to engage in the activities authorized 
182.3 	by this section.

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

182.5 	Sec. 24. Minnesota Statutes 2014, section 469.169, is amended by adding a subdivision 
182.6 	to read:
182.7 		Subd. 20.Additional border city allocations; 2015. In addition to the tax 
182.8 	reductions authorized in subdivisions 12 to 19, the commissioner shall allocate $2,000,000 
182.9 	for tax reductions to border city enterprise zones in cities located on the western border of 
182.10 	the state. The commissioner shall allocate this amount among cities on a per capita basis. 
182.11 	Allocations made under this subdivision may be used for tax reductions under sections 
182.12 	469.171, 469.1732, and 469.1734, or for other offsets of taxes imposed on or remitted 
182.13 	by businesses located in the enterprise zone, but only if the municipality determines 
182.14 	that the granting of the tax reduction or offset is necessary to retain a business within 
182.15 	or attract a business to the zone.

182.16 	EFFECTIVE DATE. This section is effective July 1, 2015.

182.17 	Sec. 25. Minnesota Statutes 2014, section 469.40, subdivision 11, as amended by Laws 
182.18 	2015, chapter 1, section 6, is amended to read:
182.19 		Subd. 11.Public infrastructure project. (a) "Public infrastructure project" means 
182.20 	a project financed in part or in whole with public money in order to support the medical 
182.21 	business entity's development plans, as identified in the DMCC development plan. A 
182.22 	public infrastructure project may:
182.23 	(1) acquire real property and other assets associated with the real property;
182.24 	(2) demolish, repair, or rehabilitate buildings;
182.25 	(3) remediate land and buildings as required to prepare the property for acquisition 
182.26 	or development;
182.27 	(4) install, construct, or reconstruct elements of public infrastructure required to 
182.28 	support the overall development of the destination medical center development district 
182.29 	including, but not limited to, streets, roadways, utilities systems and related facilities, 
182.30 	utility relocations and replacements, network and communication systems, streetscape 
182.31 	improvements, drainage systems, sewer and water systems, subgrade structures and 
182.32 	associated improvements, landscaping, faÃ§ade construction and restoration, wayfinding 
182.33 	and signage, and other components of community infrastructure;
183.1 	(5) acquire, construct or reconstruct, and equip parking facilities and other facilities 
183.2 	to encourage intermodal transportation and public transit;
183.3 	(6) install, construct or reconstruct, furnish, and equip parks, cultural, and 
183.4 	recreational facilities, facilities to promote tourism and hospitality, conferencing and 
183.5 	conventions, and broadcast and related multimedia infrastructure;
183.6 	(7) make related site improvements including, without limitation, excavation, 
183.7 	earth retention, soil stabilization and correction, and site improvements to support the 
183.8 	destination medical center development district;
183.9 	(8) prepare land for private development and to sell or lease land;
183.10 	(9) provide costs of relocation benefits to occupants of acquired properties; and
183.11 	(10) construct and equip all or a portion of one or more suitable structures on land 
183.12 	owned by the city for sale or lease to private development; provided, however, that the 
183.13 	portion of any structure directly financed by the city as a public infrastructure project must 
183.14 	not be sold or leased to a medical business entity.
183.15 	(b) A public infrastructure project is not a business subsidy under section 116J.993.
183.16 	(c) Public infrastructure project includes the planning, preparation, and modification 
183.17 	of the development plan under section 469.43, and.  The cost of that planning, preparation, 
183.18 	and any modification is a capital cost of the public infrastructure project.

183.19 	EFFECTIVE DATE. This section is effective the day after the governing body of 
183.20 	the city of Rochester and its chief clerical officer comply with Minnesota Statutes, section 
183.21 	645.021, subdivisions 2 and 3, and applies retroactively to the original effective dates of 
183.22 	the laws that are amended.

183.23 	Sec. 26. Minnesota Statutes 2014, section 469.43, is amended by adding a subdivision 
183.24 	to read:
183.25 		Subd. 6a.Restriction on city funds to support nonprofit economic development 
183.26 	agency. The nonprofit economic development agency shall not require the city to pay 
183.27 	any amounts to the nonprofit economic development agency that are unrelated to public 
183.28 	infrastructure project costs.

183.29 	EFFECTIVE DATE. This section is effective the day after the governing body of 
183.30 	the city of Rochester and its chief clerical officer comply with Minnesota Statutes, section 
183.31 	645.021, subdivisions 2 and 3, and applies retroactively from June 22, 2013.

183.32 	Sec. 27. Minnesota Statutes 2014, section 469.45, subdivision 1, is amended to read:
184.1 		Subdivision 1.Rochester, other local taxes authorized. (a) Notwithstanding 
184.2 	section 477A.016 or any other contrary provision of law, ordinance, or city charter, and in 
184.3 	addition to any taxes the city may impose on these transactions under another statute or 
184.4 	law, the city of Rochester may, by ordinance, impose at a rate or rates, determined by the 
184.5 	city, any of the following taxes:
184.6 	(1) a tax on the gross receipts from the furnishing for consideration of lodging and 
184.7 	related services as defined in section 297A.61, subdivision 3, paragraph (g), clause (2); the 
184.8 	city may choose to impose a differential tax based on the number of rooms in the facility;
184.9 	(2) a tax on the gross receipts of food and beverages sold primarily for consumption 
184.10 	on the premises by restaurants and places of refreshment that occur in the city of 
184.11 	Rochester; the city may elect to impose the tax in a defined district of the city; and
184.12 	(3) a tax on the admission receipts to entertainment and recreational facilities, as 
184.13 	defined by ordinance, in the city of Rochester.
184.14 	(b) The provisions of section 297A.99, subdivisions 4 to 13, govern the 
184.15 	administration, collection, and enforcement of any tax imposed by the city under 
184.16 	paragraph (a).
184.17 	(c) The proceeds of any taxes imposed under this subdivision, less refunds and 
184.18 	costs of collection, must be used by the city only to meet its share of obligations for 
184.19 	public infrastructure projects contained in the development plan and approved by the 
184.20 	corporation, including any associated financing costs or to pay any other costs qualifying 
184.21 	as a local matching contribution under section 469.47, subdivision 4. Any tax imposed 
184.22 	under paragraph (a) expires at the earlier of December 31, 2049, or when the city council 
184.23 	determines that sufficient funds have been raised from the tax plus all other local funding 
184.24 	sources authorized in Laws 2013, chapter 143, article 10, to meet the city obligation for 
184.25 	financing public infrastructure projects contained in the development plan and approved 
184.26 	by the corporation, including any associated financing costs.

184.27 	EFFECTIVE DATE. This section is effective the day after the governing body of 
184.28 	the city of Rochester and its chief clerical officer comply with Minnesota Statutes, section 
184.29 	645.021, subdivisions 2 and 3, and applies retroactively to the original effective dates of 
184.30 	the laws that are amended.

184.31 	Sec. 28. Minnesota Statutes 2014, section 469.45, subdivision 2, is amended to read:
184.32 		Subd. 2.General sales tax authority. The city may elect to extend the existing 
184.33 	local sales and use tax under Laws 2013, chapter 143, article 10, section 13, or to impose 
184.34 	an additional rate of up to one quarter of one percent tax on sales and use under Laws 
184.35 	2013, chapter 143, article 10, section 11. The proceeds of any extended or additional taxes 
185.1 	imposed under this subdivision, less refunds and costs of collection, must be used by the 
185.2 	city only to meet its share of obligations for public infrastructure projects contained in the 
185.3 	development plan and approved by the corporation, including all financing costs. Revenues 
185.4 	collected in any year to meet the obligations must be used for payment of obligations or 
185.5 	expenses for public infrastructure projects approved by the corporation or of any other 
185.6 	costs qualifying as a local matching contribution under section 469.47, subdivision 4.

185.7 	EFFECTIVE DATE. This section is effective the day after the governing body of 
185.8 	the city of Rochester and its chief clerical officer comply with Minnesota Statutes, section 
185.9 	645.021, subdivisions 2 and 3, and applies retroactively to the original effective dates of 
185.10 	the laws that are amended.

185.11 	Sec. 29. Minnesota Statutes 2014, section 469.47, subdivision 4, as amended by Laws 
185.12 	2015, chapter 1, section 10, is amended to read:
185.13 		Subd. 4.General aid; local matching contribution. In order to qualify for general 
185.14 	state infrastructure aid, the city must enter a written agreement with the commissioner that 
185.15 	requires the city to make a qualifying local matching contribution to pay for $128,000,000 
185.16 	of the cost of public infrastructure projects approved by the corporation, including 
185.17 	financing costs, using funds other than state aid received under this section. Through June 
185.18 	30, 2020, the $128,000,000 required local matching contribution is reduced by one-half of 
185.19 	the any amounts the city pays for operating and administrative costs out of funds other 
185.20 	than state aid received under this section for the support, administration, or operations of 
185.21 	the corporation and the economic development agency up to a maximum amount agreed 
185.22 	to by the board and the city. These amounts include any costs the city incurs in providing 
185.23 	services, goods, or other support to the corporation or agency. Beginning on July 1, 
185.24 	2020, the required local matching contribution is reduced by one-half of the amounts 
185.25 	the city pays for support, operating, and administrative costs of the corporation up to a 
185.26 	maximum amount agreed to by the board and the city. The agreement must provide for the 
185.27 	manner, timing, and amounts of the city contributions, including the city's commitment 
185.28 	for each year. Notwithstanding any law to the contrary, the agreement may provide that 
185.29 	the city contributions for public infrastructure project principal costs may be made over a 
185.30 	20-year period at a rate not greater than $1 from the city for each $2.55 from the state. 
185.31 	The local match contribution may be provided by the city from any source identified in 
185.32 	section 469.45 and any other local tax proceeds or other funds from the city and may 
185.33 	include providing funds to prepare the development plan, to assist developers undertaking 
185.34 	projects in accordance with the development plan, or by the city directly undertaking 
185.35 	public infrastructure projects in accordance with the development plan, provided the 
186.1 	projects have been approved by the corporation. City contributions that are in excess of 
186.2 	this ratio carry forward and are credited toward subsequent years. The commissioner and 
186.3 	city may agree to amend the agreement at any time in light of new information or other 
186.4 	appropriate factors. The city may enter into arrangements with the county to pay for or 
186.5 	otherwise meet the local matching contribution requirement. Any public infrastructure 
186.6 	project within the area that will be in the destination medical center development district 
186.7 	whose implementation is started or funded by the city after June 22, 2013, but before the 
186.8 	development plan is adopted, as provided by section 469.43, subdivision 1, will be included 
186.9 	for the purposes of determining the amount the city has contributed as required by this 
186.10 	section and the agreement with the commissioner, subject to approval by the corporation.

186.11 	EFFECTIVE DATE. This section is effective the day after the governing body of 
186.12 	the city of Rochester and its chief clerical officer comply with Minnesota Statutes, section 
186.13 	645.021, subdivisions 2 and 3, and applies retroactively to the original effective dates of 
186.14 	the laws that are amended.

186.15 	Sec. 30. Minnesota Statutes 2014, section 524.3-916, is amended to read:
186.16 	524.3-916 APPORTIONMENT OF ESTATE TAXES AND 
186.17 	GENERATION-SKIPPING TAX.
186.18 	(a) For purposes of this section:
186.19 	(1) "estate" means the gross estate of a decedent as determined for the purpose of 
186.20 	federal estate tax or the estate tax payable to this state;
186.21 	(2) "decedent's generation-skipping transfers" means all generation-skipping transfers 
186.22 	as determined for purposes of the federal generation-skipping tax which occur by reason 
186.23 	of the decedent's death which relate to property which is included in the decedent's estate;
186.24 	(3) "person" means any individual, partnership, association, joint stock company, 
186.25 	corporation, limited liability company, government, political subdivision, governmental 
186.26 	agency, or local governmental agency;
186.27 	(4) "person interested in the estate" means any person entitled to receive, or who has 
186.28 	received, from a decedent or by reason of the death of a decedent any property or interest 
186.29 	therein included in the decedent's estate. It includes a personal representative, guardian, 
186.30 	conservator, trustee, and custodian;
186.31 	(5) "state" means any state, territory, or possession of the United States, the District 
186.32 	of Columbia, and the Commonwealth of Puerto Rico;
187.1 	(6) "estate tax" means the federal estate tax and the state estate tax determined by the 
187.2 	commissioner of revenue pursuant to chapter 291 and interest and penalties imposed in 
187.3 	addition to the tax;
187.4 	(7) "decedent's generation-skipping tax" means the federal generation-skipping 
187.5 	tax imposed on the decedent's generation-skipping transfers and interest and penalties 
187.6 	imposed in addition to the tax;
187.7 	(8) "fiduciary" means personal representative or trustee.
187.8 	(b) Unless the will or other governing instrument otherwise provides: Any tax 
187.9 	occasioned by a decedent's death shall be apportioned as set forth in clauses (1) to (4).
187.10 	(1) the Estate tax taxes shall be apportioned among all persons interested in the 
187.11 	estate. The apportionment is to be made in the proportion that the value of the interest of 
187.12 	each person interested in the estate bears to the total value of the interests of all persons 
187.13 	interested in the estate. The values used in determining the tax are to shall be used for 
187.14 	that purpose; and in apportioning the tax.
187.15 	(2) Notwithstanding the general rule set forth in clause (1), if property is included in 
187.16 	the decedent's gross estate pursuant to section 2044 of the Internal Revenue Code of 1986, 
187.17 	as amended, or any similar provision of any state estate tax law, the difference between the 
187.18 	total estate tax payable by the decedent's estate and the amount of estate tax that would 
187.19 	have been payable by the decedent's estate if the property had not been included in the 
187.20 	decedent's gross estate shall be apportioned ratably among the holders of interests in the 
187.21 	property. The values used in determining the tax shall be used in apportioning the tax. The 
187.22 	balance of the tax, if any, shall be apportioned as provided in clause (1).
187.23 	(3) The decedent's generation-skipping tax shall be apportioned as provided by 
187.24 	federal law. To the extent not provided by federal law, the decedent's generation-skipping 
187.25 	tax shall be apportioned among all persons receiving the decedent's generation-skipping 
187.26 	transfers whose tax apportionment is not provided by federal law in the proportion that the 
187.27 	value of the transfer to each person bears to the total value of all such transfers.
187.28 	(4) If the decedent's will or other written instrument directs a method of 
187.29 	apportionment of estate tax or of the decedent's generation-skipping tax different from 
187.30 	the method methods described in this section, the method described in the will or other 
187.31 	written instrument controls shall control; provided, however, that:
187.32 	(i) unless the decedent's will or other written instrument specifically indicates an 
187.33 	intent to waive any right of recovery under section 2207A of the Internal Revenue Code of 
187.34 	1986, as amended, estate taxes on property described in clause (2) must be apportioned 
187.35 	under the method described in this section to property included in the decedent's estate 
187.36 	under section 2044 of the Internal Revenue Code of 1986, as amended clause (2); and
188.1 	(ii) unless the decedent's will or other written instrument specifically indicates an 
188.2 	intent to waive any right of recovery under section 2207B of the Internal Revenue Code of 
188.3 	1986, as amended, estate taxes must be apportioned under the method described in this 
188.4 	section to on property included in the decedent's estate under section 2036 of the Internal 
188.5 	Revenue Code of 1986, as amended, must be apportioned under the method described 
188.6 	in clause (1).
188.7 	(c)(1) The court in which venue lies for the administration of the estate of a decedent, 
188.8 	on petition for the purpose may determine the apportionment of the estate tax or of the 
188.9 	decedent's generation-skipping tax.
188.10 	(2) If the court finds that it is inequitable to apportion interest and penalties in 
188.11 	the manner provided in subsection (b), because of special circumstances, it may direct 
188.12 	apportionment thereof in the manner it finds equitable.
188.13 	(3) If the court finds that the assessment of penalties and interest assessed in relation 
188.14 	to the estate tax or the decedent's generation-skipping tax is due to delay caused by the 
188.15 	negligence of the fiduciary, the court may charge the fiduciary with the amount of the 
188.16 	assessed penalties and interest.
188.17 	(4) In any action to recover from any person interested in the estate the amount of 
188.18 	the estate tax or of the decedent's generation-skipping tax apportioned to the person in 
188.19 	accordance with this section the determination of the court in respect thereto shall be 
188.20 	prima facie correct.
188.21 	(d)(1) The personal representative or other person in possession of the property 
188.22 	of the decedent required to pay the estate tax or the decedent's generation-skipping tax 
188.23 	may withhold from any property distributable to any person interested in the estate, 
188.24 	upon its distribution, the amount of any taxes attributable to the person's interest. If the 
188.25 	property in possession of the personal representative or other person required to pay any 
188.26 	taxes and distributable to any person interested in the estate is insufficient to satisfy the 
188.27 	proportionate amount of the taxes determined to be due from the person, the personal 
188.28 	representative or other person required to pay any taxes may recover the deficiency from 
188.29 	the person interested in the estate. If the property is not in the possession of the personal 
188.30 	representative or the other person required to pay any taxes, the personal representative or 
188.31 	the other person required to pay any taxes may recover from any person interested in the 
188.32 	estate the amount of any taxes apportioned to the person in accordance with this section.
188.33 	(2) If property held by the personal representative or other person in possession 
188.34 	of the property of the decedent required to pay the estate tax or the decedent's 
188.35 	generation-skipping tax is distributed prior to final apportionment of the estate tax or 
188.36 	the decedent's generation-skipping tax, the distributee shall provide a bond or other 
189.1 	security for the apportionment liability in the form and amount prescribed by the personal 
189.2 	representative or other person, as the case may be.
189.3 	(e)(1) In making an apportionment, allowances shall be made for any exemptions 
189.4 	granted, any classification made of persons interested in the estate and for any deductions 
189.5 	and credits allowed by the law imposing the tax.
189.6 	(2) Any exemption or deduction allowed by reason of the relationship of any person 
189.7 	to the decedent, by reason of the purposes of the gift, or by allocation to the gift (either 
189.8 	by election by the fiduciary or by operation of federal law), inures to the benefit of the 
189.9 	person bearing such relationship or receiving the gift; but if an interest is subject to a prior 
189.10 	present interest which is not allowable as a deduction, the tax apportionable against the 
189.11 	present interest shall be paid from principal.
189.12 	(3) Any deduction for property previously taxed and any credit for gift taxes or 
189.13 	death taxes of a foreign country paid by the decedent or the decedent's estate inures to the 
189.14 	proportionate benefit of all persons liable to apportionment.
189.15 	(4) Any credit for inheritance, succession or estate taxes or taxes in the nature 
189.16 	thereof applicable to property or interests includable in the estate, inures to the benefit of 
189.17 	the persons or interests chargeable with the payment thereof to the extent proportionately 
189.18 	that the credit reduces the tax.
189.19 	(5) To the extent that property passing to or in trust for a surviving spouse or any 
189.20 	charitable, public or similar gift or devise is not an allowable deduction for purposes of 
189.21 	the estate tax solely by reason of an estate tax imposed upon and deductible from the 
189.22 	property, the property is not included in the computation provided for in subsection (b)(1) 
189.23 	hereof, and to that extent no apportionment is made against the property. The sentence 
189.24 	immediately preceding does not apply to any case if the result would be to deprive the 
189.25 	estate of a deduction otherwise allowable under section 2053(d) of the Internal Revenue 
189.26 	Code of 1986, as amended, of the United States, relating to deduction for state death taxes 
189.27 	on transfers for public, charitable, or religious uses.
189.28 	(f) No interest in income and no estate for years or for life or other temporary interest 
189.29 	in any property or fund is subject to apportionment as between the temporary interest 
189.30 	and the remainder. The estate tax on the temporary interest and the estate tax, if any, on 
189.31 	the remainder is chargeable against the corpus of the property or funds subject to the 
189.32 	temporary interest and remainder. The decedent's generation-skipping tax is chargeable 
189.33 	against the property which constitutes the decedent's generation-skipping transfer.
189.34 	(g) Neither the personal representative nor other person required to pay the tax is 
189.35 	under any duty to institute any action to recover from any person interested in the estate 
189.36 	the amount of the estate tax or of the decedent's generation-skipping tax apportioned to the 
190.1 	person until the final determination of the tax. A personal representative or other person 
190.2 	required to pay the estate tax or decedent's generation-skipping tax who institutes the 
190.3 	action within a reasonable time after final determination of the tax is not subject to any 
190.4 	liability or surcharge because any portion of the tax apportioned to any person interested 
190.5 	in the estate was collectible at a time following the death of the decedent but thereafter 
190.6 	became uncollectible. If the personal representative or other person required to pay the 
190.7 	estate tax or decedent's generation-skipping tax cannot collect from any person interested 
190.8 	in the estate the amount of the tax apportioned to the person, the amount not recoverable 
190.9 	shall be equitably apportioned among the other persons interested in the estate who are 
190.10 	subject to apportionment of the tax involved.
190.11 	(h) A personal representative acting in another state or a person required to pay the 
190.12 	estate tax or decedent's generation-skipping tax domiciled in another state may institute an 
190.13 	action in the courts of this state and may recover a proportionate amount of the federal 
190.14 	estate tax, of an estate tax payable to another state or of a death duty due by a decedent's 
190.15 	estate to another state, or of the decedent's generation-skipping tax, from a person 
190.16 	interested in the estate who is either domiciled in this state or who owns property in this 
190.17 	state subject to attachment or execution. For the purposes of the action the determination 
190.18 	of apportionment by the court having jurisdiction of the administration of the decedent's 
190.19 	estate in the other state is prima facie correct.

190.20 	Sec. 31. ADMINISTRATIVE APPROPRIATIONS.
 190.21 	(a) $300,000 in fiscal year 2017 is appropriated from the general fund to the 
190.22 	commissioner of natural resources for administering this act. The funding base for this 
190.23 	appropriation in fiscal year 2018 and thereafter is $200,000.
190.24 	(b) $1,000,000 in fiscal year 2016 and $700,000 in fiscal year 2017 are appropriated 
190.25 	from the general fund to the commissioner of revenue for administering this act. The 
190.26 	funding base for this appropriation in fiscal year 2018 and thereafter is $600,000.

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

190.28 	Sec. 32.  REPEALER.
 190.29 	(a) Minnesota Statutes 2014, section 3.192, is repealed.
190.30 	(b) Minnesota Rules, part 8125.1300, subpart 3, is repealed.

190.31 	EFFECTIVE DATE. Paragraph (a) is effective retroactively from January 1, 2014. 
190.32 	Paragraph (b) is effective the day following final enactment.

191.1 	ARTICLE 13
191.2 	DEPARTMENT POLICY AND TECHNICAL PROVISIONS - INCOME, 
191.3 	CORPORATE FRANCHISE, AND ESTATE TAXES

191.4 	Section 1. Minnesota Statutes 2014, section 289A.08, subdivision 11, is amended to 
191.5 	read:
191.6 		Subd. 11.Information included in income tax return. (a) The return must state:
191.7 	(1) the name of the taxpayer, or taxpayers, if the return is a joint return, and the 
191.8 	address of the taxpayer in the same name or names and same address as the taxpayer has 
191.9 	used in making the taxpayer's income tax return to the United States;
191.10 	(2) the date or dates of birth of the taxpayer or taxpayers;
191.11 	(3) the Social Security number of the taxpayer, or taxpayers, if a Social Security 
191.12 	number has been issued by the United States with respect to the taxpayers; and
191.13 	(4) the amount of the taxable income of the taxpayer as it appears on the federal 
191.14 	return for the taxable year to which the Minnesota state return applies.
191.15 	(b) The taxpayer must attach to the taxpayer's Minnesota state income tax return 
191.16 	a copy of the federal income tax return that the taxpayer has filed or is about to file for 
191.17 	the period, unless the taxpayer is eligible to telefile the federal return and does file the 
191.18 	Minnesota return by telefiling.

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

191.20 	Sec. 2. Minnesota Statutes 2014, section 289A.08, subdivision 16, is amended to read:
191.21 		Subd. 16.Tax refund or return preparers; electronic filing; paper filing fee 
191.22 	imposed. (a) A "tax refund or return preparer," as defined in section 289A.60, subdivision 
191.23 	13, paragraph (f), who is a tax return preparer for purposes of section 6011(e) of the 
191.24 	Internal Revenue Code, and who reasonably expects to prepare more than ten Minnesota 
191.25 	individual income, corporate franchise, S corporation, partnership, or fiduciary income tax 
191.26 	returns for the prior calendar year must file all Minnesota individual income, corporate 
191.27 	franchise, S corporation, partnership, or fiduciary income tax returns prepared for that 
191.28 	calendar year by electronic means.
191.29 	(b) Paragraph (a) does not apply to a return if the taxpayer has indicated on the return 
191.30 	that the taxpayer did not want the return filed by electronic means.
191.31 	(c) For each return that is not filed electronically by a tax refund or return preparer 
191.32 	under this subdivision, including returns filed under paragraph (b), a paper filing fee 
191.33 	of $5 is imposed upon the preparer. The fee is collected from the preparer in the same 
192.1 	manner as income tax. The fee does not apply to returns that the commissioner requires 
192.2 	to be filed in paper form.

192.3 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
192.4 	December 31, 2014.

192.5 	Sec. 3. Minnesota Statutes 2014, section 289A.09, subdivision 2, is amended to read:
192.6 		Subd. 2.Withholding statement. (a) A person required to deduct and withhold 
192.7 	from an employee a tax under section 290.92, subdivision 2a or 3, or 290.923, subdivision 
192.8 	2, or who would have been required to deduct and withhold a tax under section 290.92, 
192.9 	subdivision 2a or 3, or persons required to withhold tax under section 290.923, subdivision 
192.10 	2, determined without regard to section 290.92, subdivision 19, if the employee or payee 
192.11 	had claimed no more than one withholding exemption, or who paid wages or made 
192.12 	payments not subject to withholding under section 290.92, subdivision 2a or 3, or 290.923, 
192.13 	subdivision 2, to an employee or person receiving royalty payments in excess of $600, 
192.14 	or who has entered into a voluntary withholding agreement with a payee under section 
192.15 	290.92, subdivision 20, must give every employee or person receiving royalty payments in 
192.16 	respect to the remuneration paid by the person to the employee or person receiving royalty 
192.17 	payments during the calendar year, on or before January 31 of the succeeding year, or, if 
192.18 	employment is terminated before the close of the calendar year, within 30 days after the 
192.19 	date of receipt of a written request from the employee if the 30-day period ends before 
192.20 	January 31, a written statement showing the following:
192.21 	(1) name of the person;
192.22 	(2) the name of the employee or payee and the employee's or payee's Social Security 
192.23 	account number;
192.24 	(3) the total amount of wages as that term is defined in section 290.92, subdivision 
192.25 	1, paragraph (1); the total amount of remuneration subject to withholding under section 
192.26 	290.92, subdivision 20; the amount of sick pay as required under section 6051(f) of the 
192.27 	Internal Revenue Code; and the amount of royalties subject to withholding under section 
192.28 	290.923, subdivision 2; and
192.29 	(4) the total amount deducted and withheld as tax under section 290.92, subdivision 
192.30 	2a or 3, or 290.923, subdivision 2.
192.31 	(b) The statement required to be furnished by paragraph (a) with respect to any 
192.32 	remuneration must be furnished at those times, must contain the information required, and 
192.33 	must be in the form the commissioner prescribes.
193.1 	(c) The commissioner may prescribe rules providing for reasonable extensions of 
193.2 	time, not in excess of 30 days, to employers or payers required to give the statements to 
193.3 	their employees or payees under this subdivision.
193.4 	(d) A duplicate of any statement made under this subdivision and in accordance 
193.5 	with rules prescribed by the commissioner, along with a reconciliation in the form the 
193.6 	commissioner prescribes of the statements for the calendar year, including a reconciliation 
193.7 	of the quarterly returns required to be filed under subdivision 1, must be filed with the 
193.8 	commissioner on or before February 28 of the year after the payments were made.
193.9 	(e) If an employer cancels the employer's Minnesota withholding account number 
193.10 	required by section 290.92, subdivision 24, the information required by paragraph (d), 
193.11 	must be filed with the commissioner within 30 days of the end of the quarter in which 
193.12 	the employer cancels its account number.
193.13 	(f) The employer must submit the statements required to be sent to the commissioner 
193.14 	in the same manner required to satisfy the federal reporting requirements of section 
193.15 	6011(e) of the Internal Revenue Code and the regulations issued under it. An employer 
193.16 	must submit statements to the commissioner required by this section by electronic means 
193.17 	if the employer is required to send more than 25 statements to the commissioner, even 
193.18 	though the employer is not required to submit the returns federally by electronic means. 
193.19 	For statements issued for wages paid in 2011 and after, the threshold is ten. All statements 
193.20 	issued for withholding required under section 290.92 are aggregated for purposes of 
193.21 	determining whether the electronic submission threshold is met. The commissioner shall 
193.22 	prescribe the content, format, and manner of the statement pursuant to section 270C.30.
193.23 	(g) A "third-party bulk filer" as defined in section 290.92, subdivision 30, paragraph 
193.24 	(a), clause (2), must submit the returns required by this subdivision and subdivision 1, 
193.25 	paragraph (a), with the commissioner by electronic means.

193.26 	EFFECTIVE DATE. This section is effective for statements required to be sent to 
193.27 	the commissioner after December 31, 2015.

193.28 	Sec. 4. Minnesota Statutes 2014, section 289A.12, subdivision 14, is amended to read:
193.29 		Subd. 14.Regulated investment companies; Reporting exempt interest and 
193.30 	exempt-interest dividends. (a) A regulated investment company paying $10 or more in 
193.31 	exempt-interest dividends to an individual who is a resident of Minnesota, or any person 
193.32 	receiving $10 or more of exempt interest or exempt-interest dividends and paying as 
193.33 	nominee to an individual who is a resident of Minnesota, must make a return indicating 
193.34 	the amount of the exempt interest or exempt-interest dividends, the name, address, and 
193.35 	Social Security number of the recipient, and any other information that the commissioner 
194.1 	specifies. The return must be provided to the shareholder recipient by February 15 of the 
194.2 	year following the year of the payment. The return provided to the shareholder recipient 
194.3 	must include a clear statement, in the form prescribed by the commissioner, that the 
194.4 	exempt interest or exempt-interest dividends must be included in the computation of 
194.5 	Minnesota taxable income. By June 1 of each year, the regulated investment company 
194.6 	payor must file a copy of the return with the commissioner.
194.7 	(b) For purposes of this subdivision, the following definitions apply.
194.8 	(1) "Exempt-interest dividends" mean exempt-interest dividends as defined in 
194.9 	section 852(b)(5) of the Internal Revenue Code, but does not include the portion of 
194.10 	exempt-interest dividends that are not required to be added to federal taxable income 
194.11 	under section 290.01, subdivision 19a, clause (1)(ii).
194.12 	(2) "Regulated investment company" means regulated investment company as 
194.13 	defined in section 851(a) of the Internal Revenue Code or a fund of the regulated 
194.14 	investment company as defined in section 851(g) of the Internal Revenue Code.
194.15 	(3) "Exempt interest" means income on obligations of any state other than 
194.16 	Minnesota, or a political or governmental subdivision, municipality, or governmental 
194.17 	agency or instrumentality of any state other than Minnesota, and exempt from federal 
194.18 	income taxes under the Internal Revenue Code or any other federal statute.

194.19 	EFFECTIVE DATE. This section is effective for reports required to be filed after 
194.20 	December 31, 2015.

194.21 	Sec. 5. Minnesota Statutes 2014, section 289A.60, subdivision 28, is amended to read:
194.22 		Subd. 28.Preparer identification number. Any Minnesota individual income tax 
194.23 	return or claim for refund prepared by a "tax refund or return preparer" as defined in 
194.24 	subdivision 13, paragraph (f), shall bear the identification number the preparer is required 
194.25 	to use federally under section 6109(a)(4) of the Internal Revenue Code. A tax refund or 
194.26 	return preparer who prepares a Minnesota tax return for an individual income tax return, 
194.27 	corporation, S corporation, partnership, fiduciary, or claim for refund and fails to include 
194.28 	the required number on the return or claim is subject to a penalty of $50 for each failure.

194.29 	EFFECTIVE DATE. This section is effective for taxable years beginning after 
194.30 	December 31, 2014.

194.31 	Sec. 6. Minnesota Statutes 2014, section 290.01, subdivision 19b, is amended to read:
194.32 		Subd. 19b.Subtractions from federal taxable income. For individuals, estates, 
194.33 	and trusts, there shall be subtracted from federal taxable income:
195.1 	(1) net interest income on obligations of any authority, commission, or 
195.2 	instrumentality of the United States to the extent includable in taxable income for federal 
195.3 	income tax purposes but exempt from state income tax under the laws of the United States;
195.4 	(2) if included in federal taxable income, the amount of any overpayment of income 
195.5 	tax to Minnesota or to any other state, for any previous taxable year, whether the amount 
195.6 	is received as a refund or as a credit to another taxable year's income tax liability;
195.7 	(3) the amount paid to others, less the amount used to claim the credit allowed under 
195.8 	section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten 
195.9 	to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and 
195.10 	transportation of each qualifying child in attending an elementary or secondary school 
195.11 	situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a 
195.12 	resident of this state may legally fulfill the state's compulsory attendance laws, which 
195.13 	is not operated for profit, and which adheres to the provisions of the Civil Rights Act 
195.14 	of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or 
195.15 	tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause, 
195.16 	"textbooks" includes books and other instructional materials and equipment purchased 
195.17 	or leased for use in elementary and secondary schools in teaching only those subjects 
195.18 	legally and commonly taught in public elementary and secondary schools in this state. 
195.19 	Equipment expenses qualifying for deduction includes expenses as defined and limited in 
195.20 	section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional 
195.21 	books and materials used in the teaching of religious tenets, doctrines, or worship, the 
195.22 	purpose of which is to instill such tenets, doctrines, or worship, nor does it include books 
195.23 	or materials for, or transportation to, extracurricular activities including sporting events, 
195.24 	musical or dramatic events, speech activities, driver's education, or similar programs. No 
195.25 	deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or 
195.26 	the qualifying child's vehicle to provide such transportation for a qualifying child. For 
195.27 	purposes of the subtraction provided by this clause, "qualifying child" has the meaning 
195.28 	given in section 32(c)(3) of the Internal Revenue Code;
195.29 	(4) income as provided under section 290.0802;
195.30 	(5) to the extent included in federal adjusted gross income, income realized on 
195.31 	disposition of property exempt from tax under section 290.491;
195.32 	(6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E) 
195.33 	of the Internal Revenue Code in determining federal taxable income by an individual 
195.34 	who does not itemize deductions for federal income tax purposes for the taxable year, an 
195.35 	amount equal to 50 percent of the excess of charitable contributions over $500 allowable 
196.1 	as a deduction for the taxable year under section 170(a) of the Internal Revenue Code, 
196.2 	under the provisions of Public Law 109-1 and Public Law 111-126;
196.3 	(7) for individuals who are allowed a federal foreign tax credit for taxes that do not 
196.4 	qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover 
196.5 	of subnational foreign taxes for the taxable year, but not to exceed the total subnational 
196.6 	foreign taxes reported in claiming the foreign tax credit. For purposes of this clause, 
196.7 	"federal foreign tax credit" means the credit allowed under section 27 of the Internal 
196.8 	Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed 
196.9 	under section 904(c) of the Internal Revenue Code minus national level foreign taxes to 
196.10 	the extent they exceed the federal foreign tax credit;
196.11 	(8) in each of the five tax years immediately following the tax year in which an 
196.12 	addition is required under subdivision 19a, clause (7), or 19c, clause (12) (11), in the case of 
196.13 	a shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the 
196.14 	delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount 
196.15 	of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c, 
196.16 	clause (12) (11), in the case of a shareholder of an S corporation, minus the positive value 
196.17 	of any net operating loss under section 172 of the Internal Revenue Code generated for the 
196.18 	tax year of the addition. The resulting delayed depreciation cannot be less than zero;
196.19 	(9) job opportunity building zone income as provided under section 469.316;
196.20 	(10) to the extent included in federal taxable income, the amount of compensation 
196.21 	paid to members of the Minnesota National Guard or other reserve components of the 
196.22 	United States military for active service, including compensation for services performed 
196.23 	under the Active Guard Reserve (AGR) program. For purposes of this clause, "active 
196.24 	service" means (i) state active service as defined in section 190.05, subdivision 5a, clause 
196.25 	(1); or (ii) federally funded state active service as defined in section 190.05, subdivision 
196.26 	5b, and "active service" includes service performed in accordance with section 190.08, 
196.27 	subdivision 3;
196.28 	(11) to the extent included in federal taxable income, the amount of compensation 
196.29 	paid to Minnesota residents who are members of the armed forces of the United States 
196.30 	or United Nations for active duty performed under United States Code, title 10; or the 
196.31 	authority of the United Nations;
196.32 	(12) an amount, not to exceed $10,000, equal to qualified expenses related to a 
196.33 	qualified donor's donation, while living, of one or more of the qualified donor's organs 
196.34 	to another person for human organ transplantation. For purposes of this clause, "organ" 
196.35 	means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow; 
196.36 	"human organ transplantation" means the medical procedure by which transfer of a human 
197.1 	organ is made from the body of one person to the body of another person; "qualified 
197.2 	expenses" means unreimbursed expenses for both the individual and the qualified donor 
197.3 	for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses 
197.4 	may be subtracted under this clause only once; and "qualified donor" means the individual 
197.5 	or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An 
197.6 	individual may claim the subtraction in this clause for each instance of organ donation for 
197.7 	transplantation during the taxable year in which the qualified expenses occur;
197.8 	(13) in each of the five tax years immediately following the tax year in which an 
197.9 	addition is required under subdivision 19a, clause (8), or 19c, clause (13) (12), in the case 
197.10 	of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth of 
197.11 	the addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (13) 
197.12 	(12), in the case of a shareholder of a corporation that is an S corporation, minus the 
197.13 	positive value of any net operating loss under section 172 of the Internal Revenue Code 
197.14 	generated for the tax year of the addition. If the net operating loss exceeds the addition for 
197.15 	the tax year, a subtraction is not allowed under this clause;
197.16 	(14) to the extent included in the federal taxable income of a nonresident of 
197.17 	Minnesota, compensation paid to a service member as defined in United States Code, title 
197.18 	10, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief 
197.19 	Act, Public Law 108-189, section 101(2);
197.20 	(15) to the extent included in federal taxable income, the amount of national service 
197.21 	educational awards received from the National Service Trust under United States Code, 
197.22 	title 42, sections 12601 to 12604, for service in an approved Americorps National Service 
197.23 	program;
197.24 	(16) to the extent included in federal taxable income, discharge of indebtedness 
197.25 	income resulting from reacquisition of business indebtedness included in federal taxable 
197.26 	income under section 108(i) of the Internal Revenue Code. This subtraction applies only 
197.27 	to the extent that the income was included in net income in a prior year as a result of the 
197.28 	addition under subdivision 19a, clause (13);
197.29 	(17) the amount of the net operating loss allowed under section 290.095, subdivision 
197.30 	11, paragraph (c);
197.31 	(18) the amount of expenses not allowed for federal income tax purposes due 
197.32 	to claiming the railroad track maintenance credit under section 45G(a) of the Internal 
197.33 	Revenue Code;
197.34 	(19) the amount of the limitation on itemized deductions under section 68(b) of the 
197.35 	Internal Revenue Code;
198.1 	(20) the amount of the phaseout of personal exemptions under section 151(d) of 
198.2 	the Internal Revenue Code; and
198.3 	(21) to the extent included in federal taxable income, the amount of qualified 
198.4 	transportation fringe benefits described in section 132(f)(1)(A) and (B) of the Internal 
198.5 	Revenue Code. The subtraction is limited to the lesser of the amount of qualified 
198.6 	transportation fringe benefits received in excess of the limitations under section 
198.7 	132(f)(2)(A) of the Internal Revenue Code for the year or the difference between the 
198.8 	maximum qualified parking benefits excludable under section 132(f)(2)(B) of the Internal 
198.9 	Revenue Code minus the amount of transit benefits excludable under section 132(f)(2)(A) 
198.10 	of the Internal Revenue Code.

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

198.12 	Sec. 7. Minnesota Statutes 2014, section 290.01, subdivision 19c, is amended to read:
198.13 		Subd. 19c.Corporations; additions to federal taxable income. For corporations, 
198.14 	there shall be added to federal taxable income:
198.15 	(1) the amount of any deduction taken for federal income tax purposes for income, 
198.16 	excise, or franchise taxes based on net income or related minimum taxes, including but not 
198.17 	limited to the tax imposed under section 290.0922, paid by the corporation to Minnesota, 
198.18 	another state, a political subdivision of another state, the District of Columbia, or any 
198.19 	foreign country or possession of the United States;
198.20 	(2) interest not subject to federal tax upon obligations of: the United States, its 
198.21 	possessions, its agencies, or its instrumentalities; the state of Minnesota or any other 
198.22 	state, any of its political or governmental subdivisions, any of its municipalities, or any 
198.23 	of its governmental agencies or instrumentalities; the District of Columbia; or Indian 
198.24 	tribal governments;
198.25 	(3) exempt-interest dividends received as defined in section 852(b)(5) of the Internal 
198.26 	Revenue Code;
198.27 	(4) the amount of any net operating loss deduction taken for federal income tax 
198.28 	purposes under section 172 or 832(c)(10) of the Internal Revenue Code or operations loss 
198.29 	deduction under section 810 of the Internal Revenue Code;
198.30 	(5) the amount of any special deductions taken for federal income tax purposes 
198.31 	under sections 241 to 247 and 965 of the Internal Revenue Code;
198.32 	(6) losses from the business of mining, as defined in section 290.05, subdivision 1, 
198.33 	clause (a), that are not subject to Minnesota income tax;
198.34 	(7) the amount of any capital losses deducted for federal income tax purposes under 
198.35 	sections 1211 and 1212 of the Internal Revenue Code;
199.1 	(8) the amount of percentage depletion deducted under sections 611 through 614 and 
199.2 	291 of the Internal Revenue Code;
199.3 	(9) for certified pollution control facilities placed in service in a taxable year 
199.4 	beginning before December 31, 1986, and for which amortization deductions were elected 
199.5 	under section 169 of the Internal Revenue Code of 1954, as amended through December 
199.6 	31, 1985, the amount of the amortization deduction allowed in computing federal taxable 
199.7 	income for those facilities;
199.8 	(10) (9) the amount of a partner's pro rata share of net income which does not flow 
199.9 	through to the partner because the partnership elected to pay the tax on the income under 
199.10 	section 6242(a)(2) of the Internal Revenue Code;
199.11 	(11) (10) any increase in subpart F income, as defined in section 952(a) of the 
199.12 	Internal Revenue Code, for the taxable year when subpart F income is calculated without 
199.13 	regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;
199.14 	(12) (11) 80 percent of the depreciation deduction allowed under section 
199.15 	168(k)(1)(A) and (k)(4)(A) of the Internal Revenue Code. For purposes of this clause, if 
199.16 	the taxpayer has an activity that in the taxable year generates a deduction for depreciation 
199.17 	under section 168(k)(1)(A) and (k)(4)(A) and the activity generates a loss for the taxable 
199.18 	year that the taxpayer is not allowed to claim for the taxable year, "the depreciation 
199.19 	allowed under section 168(k)(1)(A) and (k)(4)(A)" for the taxable year is limited to excess 
199.20 	of the depreciation claimed by the activity under section 168(k)(1)(A) and (k)(4)(A) 
199.21 	over the amount of the loss from the activity that is not allowed in the taxable year. In 
199.22 	succeeding taxable years when the losses not allowed in the taxable year are allowed, the 
199.23 	depreciation under section 168(k)(1)(A) and (k)(4)(A) is allowed;
199.24 	(13) (12) 80 percent of the amount by which the deduction allowed by section 179 of 
199.25 	the Internal Revenue Code exceeds the deduction allowable by section 179 of the Internal 
199.26 	Revenue Code of 1986, as amended through December 31, 2003;
199.27 	(14) (13) to the extent deducted in computing federal taxable income, the amount of 
199.28 	the deduction allowable under section 199 of the Internal Revenue Code;
199.29 	(15) (14) the amount of expenses disallowed under section 290.10, subdivision 2; and
199.30 	(16) (15) discharge of indebtedness income resulting from reacquisition of business 
199.31 	indebtedness and deferred under section 108(i) of the Internal Revenue Code.

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

199.33 	Sec. 8. Minnesota Statutes 2014, section 290.01, subdivision 19d, is amended to read:
200.1 		Subd. 19d.Corporations; modifications decreasing federal taxable income. For 
200.2 	corporations, there shall be subtracted from federal taxable income after the increases 
200.3 	provided in subdivision 19c:
200.4 	(1) the amount of foreign dividend gross-up added to gross income for federal 
200.5 	income tax purposes under section 78 of the Internal Revenue Code;
200.6 	(2) the amount of salary expense not allowed for federal income tax purposes due to 
200.7 	claiming the work opportunity credit under section 51 of the Internal Revenue Code;
200.8 	(3) any dividend (not including any distribution in liquidation) paid within the 
200.9 	taxable year by a national or state bank to the United States, or to any instrumentality of 
200.10 	the United States exempt from federal income taxes, on the preferred stock of the bank 
200.11 	owned by the United States or the instrumentality;
200.12 	(4) the deduction for capital losses pursuant to sections 1211 and 1212 of the 
200.13 	Internal Revenue Code, except that:
200.14 	(i) for capital losses incurred in taxable years beginning after December 31, 1986, 
200.15 	capital loss carrybacks shall not be allowed;
200.16 	(ii) for capital losses incurred in taxable years beginning after December 31, 1986, 
200.17 	a capital loss carryover to each of the 15 taxable years succeeding the loss year shall be 
200.18 	allowed;
200.19 	(iii) for capital losses incurred in taxable years beginning before January 1, 1987, a 
200.20 	capital loss carryback to each of the three taxable years preceding the loss year, subject to 
200.21 	the provisions of Minnesota Statutes 1986, section 290.16, shall be allowed; and
200.22 	(iv) for capital losses incurred in taxable years beginning before January 1, 1987, 
200.23 	a capital loss carryover to each of the five taxable years succeeding the loss year to the 
200.24 	extent such loss was not used in a prior taxable year and subject to the provisions of 
200.25 	Minnesota Statutes 1986, section 290.16, shall be allowed;
200.26 	(5) an amount for interest and expenses relating to income not taxable for federal 
200.27 	income tax purposes, if (i) the income is taxable under this chapter and (ii) the interest and 
200.28 	expenses were disallowed as deductions under the provisions of section 171(a)(2), 265 or 
200.29 	291 of the Internal Revenue Code in computing federal taxable income;
200.30 	(6) in the case of mines, oil and gas wells, other natural deposits, and timber for 
200.31 	which percentage depletion was disallowed pursuant to subdivision 19c, clause (8), a 
200.32 	reasonable allowance for depletion based on actual cost. In the case of leases the deduction 
200.33 	must be apportioned between the lessor and lessee in accordance with rules prescribed 
200.34 	by the commissioner. In the case of property held in trust, the allowable deduction must 
200.35 	be apportioned between the income beneficiaries and the trustee in accordance with the 
201.1 	pertinent provisions of the trust, or if there is no provision in the instrument, on the basis 
201.2 	of the trust's income allocable to each;
201.3 	(7) for certified pollution control facilities placed in service in a taxable year 
201.4 	beginning before December 31, 1986, and for which amortization deductions were elected 
201.5 	under section 169 of the Internal Revenue Code of 1954, as amended through December 
201.6 	31, 1985, an amount equal to the allowance for depreciation under Minnesota Statutes 
201.7 	1986, section 290.09, subdivision 7;
201.8 	(8) (7) amounts included in federal taxable income that are due to refunds of 
201.9 	income, excise, or franchise taxes based on net income or related minimum taxes paid 
201.10 	by the corporation to Minnesota, another state, a political subdivision of another state, 
201.11 	the District of Columbia, or a foreign country or possession of the United States to the 
201.12 	extent that the taxes were added to federal taxable income under subdivision 19c, clause 
201.13 	(1), in a prior taxable year;
201.14 	(9) (8) income or gains from the business of mining as defined in section 290.05, 
201.15 	subdivision 1, clause (a), that are not subject to Minnesota franchise tax;
201.16 	(10) (9) the amount of disability access expenditures in the taxable year which are not 
201.17 	allowed to be deducted or capitalized under section 44(d)(7) of the Internal Revenue Code;
201.18 	(11) (10) the amount of qualified research expenses not allowed for federal income 
201.19 	tax purposes under section 280C(c) of the Internal Revenue Code, but only to the extent 
201.20 	that the amount exceeds the amount of the credit allowed under section 290.068;
201.21 	(12) (11) the amount of salary expenses not allowed for federal income tax purposes 
201.22 	due to claiming the Indian employment credit under section 45A(a) of the Internal 
201.23 	Revenue Code;
201.24 	(13) (12) any decrease in subpart F income, as defined in section 952(a) of the 
201.25 	Internal Revenue Code, for the taxable year when subpart F income is calculated without 
201.26 	regard to the provisions of Division C, title III, section 303(b) of Public Law 110-343;
201.27 	(14) (13) in each of the five tax years immediately following the tax year in which an 
201.28 	addition is required under subdivision 19c, clause (12) (11), an amount equal to one-fifth 
201.29 	of the delayed depreciation. For purposes of this clause, "delayed depreciation" means the 
201.30 	amount of the addition made by the taxpayer under subdivision 19c, clause (12) (11). The 
201.31 	resulting delayed depreciation cannot be less than zero;
201.32 	(15) (14) in each of the five tax years immediately following the tax year in which an 
201.33 	addition is required under subdivision 19c, clause (13) (12), an amount equal to one-fifth 
201.34 	of the amount of the addition;
201.35 	(16) (15) to the extent included in federal taxable income, discharge of indebtedness 
201.36 	income resulting from reacquisition of business indebtedness included in federal taxable 
202.1 	income under section 108(i) of the Internal Revenue Code. This subtraction applies only 
202.2 	to the extent that the income was included in net income in a prior year as a result of the 
202.3 	addition under subdivision 19c, clause (16) (15); and
202.4 	(17) (16) the amount of expenses not allowed for federal income tax purposes due 
202.5 	to claiming the railroad track maintenance credit under section 45G(a) of the Internal 
202.6 	Revenue Code.

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

202.8 	Sec. 9. Minnesota Statutes 2014, section 290.0672, subdivision 1, is amended to read:
202.9 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms 
202.10 	have the meanings given.
202.11 	(b) "Long-term care insurance" means a policy that:
202.12 	(1) qualifies for a deduction under section 213 of the Internal Revenue Code, 
202.13 	disregarding the 7.5 percent adjusted gross income test; or meets the requirements 
202.14 	given in section 62A.46; or provides similar coverage issued under the laws of another 
202.15 	jurisdiction; and
202.16 	(2) has a lifetime long-term care benefit limit of not less than $100,000; and
202.17 	(3) has been offered in compliance with the inflation protection requirements of 
202.18 	section 62S.23.
202.19 	(c) "Qualified beneficiary" means the taxpayer or the taxpayer's spouse.
202.20 	(d) "Premiums deducted in determining federal taxable income" means the lesser of 
202.21 	(1) long-term care insurance premiums that qualify as deductions under section 213 of 
202.22 	the Internal Revenue Code; and (2) the total amount deductible for medical care under 
202.23 	section 213 of the Internal Revenue Code.

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

202.26 	Sec. 10. Minnesota Statutes 2014, section 290.091, subdivision 3, is amended to read:
202.27 		Subd. 3.Exemption amount. (a) For purposes of computing the alternative 
202.28 	minimum tax, the exemption amount is, for taxable years beginning after December 31, 
202.29 	2005, $60,000 for married couples filing joint returns, $30,000 for married individuals 
202.30 	filing separate returns, estates, and trusts, and $45,000 for unmarried individuals.
202.31 	(b) The exemption amount determined under this subdivision is subject to the phase 
202.32 	out under section 55(d)(3) of the Internal Revenue Code, except that alternative minimum 
203.1 	taxable income as determined under this section must be substituted in the computation of 
203.2 	the phase out.
203.3 	(c) For taxable years beginning after December 31, 2006, the exemption amount 
203.4 	under paragraph (a), clause (2), must be adjusted for inflation. The commissioner shall 
203.5 	adjust the exemption amount by the percentage determined pursuant to the provisions of 
203.6 	section 1(f) of the Internal Revenue Code, except that in section 1(f)(3)(B) the word "2005" 
203.7 	shall be substituted for the word "1992." For 2007, the commissioner shall then determine 
203.8 	the percent change from the 12 months ending on August 31, 2005, to the 12 months 
203.9 	ending on August 31, 2006, and in each subsequent year, from the 12 months ending on 
203.10 	August 31, 2005, to the 12 months ending on August 31 of the year preceding the taxable 
203.11 	year. The exemption amount as adjusted must be rounded to the nearest $10. If the amount 
203.12 	ends in $5, it must be rounded up to the nearest $10 amount. The determination of the 
203.13 	commissioner under this subdivision is not a rule under the Administrative Procedure Act.

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

203.15 	Sec. 11. Minnesota Statutes 2014, section 290.0921, subdivision 3, is amended to read:
203.16 		Subd. 3.Alternative minimum taxable income. "Alternative minimum taxable 
203.17 	income" is Minnesota net income as defined in section 290.01, subdivision 19, and 
203.18 	includes the adjustments and tax preference items in sections 56, 57, 58, and 59(d), (e), 
203.19 	(f), and (h) of the Internal Revenue Code. If a corporation files a separate company 
203.20 	Minnesota tax return, the minimum tax must be computed on a separate company basis. 
203.21 	If a corporation is part of a tax group filing a unitary return, the minimum tax must be 
203.22 	computed on a unitary basis. The following adjustments must be made.
203.23 	(1) The portion of the depreciation deduction allowed for federal income tax 
203.24 	purposes under section 168(k) of the Internal Revenue Code that is required as an addition 
203.25 	under section 290.01, subdivision 19c, clause (12) (11), is disallowed in determining 
203.26 	alternative minimum taxable income.
203.27 	(2) The subtraction for depreciation allowed under section 290.01, subdivision 
203.28 	19d, clause (14) (13), is allowed as a depreciation deduction in determining alternative 
203.29 	minimum taxable income.
203.30 	(3) The alternative tax net operating loss deduction under sections 56(a)(4) and 56(d) 
203.31 	of the Internal Revenue Code does not apply.
203.32 	(4) The special rule for certain dividends under section 56(g)(4)(C)(ii) of the Internal 
203.33 	Revenue Code does not apply.
203.34 	(5) The tax preference for depletion under section 57(a)(1) of the Internal Revenue 
203.35 	Code does not apply.
204.1 	(6) The tax preference for tax exempt interest under section 57(a)(5) of the Internal 
204.2 	Revenue Code does not apply.
204.3 	(7) The tax preference for charitable contributions of appreciated property under 
204.4 	section 57(a)(6) of the Internal Revenue Code does not apply.
204.5 	(8) For purposes of calculating the adjustment for adjusted current earnings in 
204.6 	section 56(g) of the Internal Revenue Code, the term "alternative minimum taxable 
204.7 	income" as it is used in section 56(g) of the Internal Revenue Code, means alternative 
204.8 	minimum taxable income as defined in this subdivision, determined without regard to the 
204.9 	adjustment for adjusted current earnings in section 56(g) of the Internal Revenue Code.
204.10 	(9) For purposes of determining the amount of adjusted current earnings under 
204.11 	section 56(g)(3) of the Internal Revenue Code, no adjustment shall be made under section 
204.12 	56(g)(4) of the Internal Revenue Code with respect to (i) the amount of foreign dividend 
204.13 	gross-up subtracted as provided in section 290.01, subdivision 19d, clause (1), or (ii) the 
204.14 	amount of refunds of income, excise, or franchise taxes subtracted as provided in section 
204.15 	290.01, subdivision 19d, clause (8) (7).
204.16 	(10) Alternative minimum taxable income excludes the income from operating in a 
204.17 	job opportunity building zone as provided under section 469.317.
204.18 	Items of tax preference must not be reduced below zero as a result of the 
204.19 	modifications in this subdivision.

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

204.21 	Sec. 12. Minnesota Statutes 2014, section 290A.19, is amended to read:
204.22 	290A.19 OWNER OR MANAGING AGENT TO FURNISH RENT 
204.23 	CERTIFICATE.
204.24 	(a) The owner or managing agent of any property for which rent is paid for 
204.25 	occupancy as a homestead must furnish a certificate of rent paid to a person who is a 
204.26 	renter on December 31, in the form prescribed by the commissioner. If the renter moves 
204.27 	before December 31, the owner or managing agent may give the certificate to the renter 
204.28 	at the time of moving, or mail the certificate to the forwarding address if an address has 
204.29 	been provided by the renter. The certificate must be made available to the renter before 
204.30 	February 1 of the year following the year in which the rent was paid. The owner or 
204.31 	managing agent must retain a duplicate of each certificate or an equivalent record showing 
204.32 	the same information for a period of three years. The duplicate or other record must be 
204.33 	made available to the commissioner upon request.
205.1 	(b) The commissioner may require the owner or managing agent, through a 
205.2 	simple process, to furnish to the commissioner on or before March 1 a copy of each 
205.3 	certificate of rent paid furnished to a renter for rent paid in the prior year, in the content, 
205.4 	format, and manner prescribed by the commissioner pursuant to section 270C.30. Prior 
205.5 	to implementation, the commissioner, after consulting with representatives of owners 
205.6 	or managing agents, shall develop an implementation and administration plan for the 
205.7 	requirements of this paragraph that attempts to minimize financial burdens, administration 
205.8 	and compliance costs, and takes into consideration existing systems of owners and 
205.9 	managing agents.
205.10 	(c) For the purposes of this section, "owner" includes a park owner as defined under 
205.11 	section 327C.01, subdivision 6, and "property" includes a lot as defined under section 
205.12 	327C.01, subdivision 3.

205.13 	EFFECTIVE DATE. This section is effective for certificates of rent paid for rent 
205.14 	paid after December 31, 2014.

205.15 	Sec. 13. Minnesota Statutes 2014, section 291.03, subdivision 10, is amended to read:
205.16 		Subd. 10.Qualified farm property. Property satisfying all of the following 
205.17 	requirements is qualified farm property:
205.18 	(1) The value of the property was included in the federal adjusted taxable estate.
205.19 	(2) The property consists of agricultural land and is owned by a person or entity that 
205.20 	is either not subject to or is in compliance with section 500.24.
205.21 	(3) For property taxes payable in the taxable year of the decedent's death, the 
205.22 	property is classified as class 2a property under section 273.13, subdivision 23, and is 
205.23 	classified as agricultural homestead, agricultural relative homestead, or special agricultural 
205.24 	homestead under section 273.124.
205.25 	(4) The decedent continuously owned the property, including property the decedent 
205.26 	is deemed to own under sections 2036, 2037, and 2038 of the Internal Revenue Code, for 
205.27 	the three-year period ending on the date of death of the decedent either by ownership of 
205.28 	the agricultural land or pursuant to holding an interest in an entity that is not subject to 
205.29 	or is in compliance with section 500.24.
205.30 	(5) The property is classified for property tax purposes as class 2a property under 
205.31 	section 273.13, subdivision 23, for three years following the date of death of the decedent. 
205.32 	No property shall cease to be qualified farm property solely because a residence existing 
205.33 	at the time of the decedent's death is reclassified as class 4bb property under section 
205.34 	273.13, subdivision 25, during the three-year period. No property shall cease to be 
205.35 	qualified farm property solely because a portion consisting of no more than one-fifth is 
206.1 	reclassified as 2b property under section 273.13, subdivision 23, during the three-year 
206.2 	period, so long as the qualified heir has not substantially altered the reclassified property 
206.3 	during the holding period.
206.4 	(6) The estate and the qualified heir elect to treat the property as qualified farm 
206.5 	property and agree, in a form prescribed by the commissioner, to pay the recapture tax 
206.6 	under subdivision 11, if applicable.

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

206.9 	Sec. 14. Minnesota Statutes 2014, section 291.031, is amended to read:
206.10 	291.031 CREDIT.
206.11 	(a) The estate of a nonresident decedent that is subject to tax under this chapter on 
206.12 	the value of Minnesota situs property held in a pass-through entity is allowed a credit 
206.13 	against the tax due under section 291.03 equal to the lesser of:
206.14 	(1) the amount of estate or inheritance tax paid to another state that is attributable to 
206.15 	the Minnesota situs property held in the pass-through entity; or
206.16 	(2) the amount of tax paid under this section due under section 291.03 attributable to 
206.17 	the Minnesota situs property held in the pass-through entity.
206.18 	(b) The amount of tax attributable to the Minnesota situs property held in the 
206.19 	pass-through entity must be determined by the increase in the estate or inheritance tax that 
206.20 	results from including the market value of the property in the estate or treating the value 
206.21 	as a taxable inheritance to the recipient of the property.

206.22 	EFFECTIVE DATE. This section is effective retroactively for estates of decedents 
206.23 	dying after December 31, 2013.

206.24 	Sec. 15.  REPEALER.
 206.25 	Minnesota Rules, part 8092.2000, is repealed.

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

206.27 	ARTICLE 14
206.28 	DEPARTMENT POLICY AND TECHNICAL PROVISIONS - 
206.29 	SPECIAL TAXES AND SALES TAXES

206.30 	Section 1. Minnesota Statutes 2014, section 69.021, subdivision 5, is amended to read:
207.1 		Subd. 5.Calculation of state aid. (a) The amount of fire state aid available for 
207.2 	apportionment, before the addition of the minimum fire state aid allocation amount under 
207.3 	subdivision 7, is equal to 107 percent of the amount of premium taxes paid to the state 
207.4 	upon the fire, lightning, sprinkler leakage, and extended coverage premiums reported to 
207.5 	the commissioner by insurers on the Minnesota Firetown Premium Report. This amount 
207.6 	must be reduced by the amount required to pay the state auditor's costs and expenses of 
207.7 	the audits or exams of the firefighters relief associations.
207.8 	The total amount for apportionment in respect to fire state aid must not be less than 
207.9 	two percent of the premiums reported to the commissioner by insurers on the Minnesota 
207.10 	Firetown Premium Report after subtracting the following amounts:
207.11 	(1) the amount required to pay the state auditor's costs and expenses of the audits or 
207.12 	exams of the firefighters relief associations; and
207.13 	(2) one percent of the premiums reported by town and farmers' township mutual 
207.14 	insurance companies and mutual property and casualty companies with total assets of 
207.15 	$5,000,000 or less.
207.16 	(b) The total amount for apportionment as police state aid is equal to 104 percent 
207.17 	of the amount of premium taxes paid to the state on the premiums reported to the 
207.18 	commissioner by insurers on the Minnesota Aid to Police Premium Report. The total 
207.19 	amount for apportionment in respect to the police state aid program must not be less than 
207.20 	two percent of the amount of premiums reported to the commissioner by insurers on the 
207.21 	Minnesota Aid to Police Premium Report.
207.22 	(c) The commissioner shall calculate the percentage of increase or decrease reflected 
207.23 	in the apportionment over or under the previous year's available state aid using the same 
207.24 	premiums as a basis for comparison.
207.25 	(d) In addition to the amount for apportionment of police state aid under paragraph 
207.26 	(b), each year $100,000 must be apportioned for police state aid. An amount sufficient to 
207.27 	pay this increase is annually appropriated from the general fund.

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

207.29 	Sec. 2. Minnesota Statutes 2014, section 289A.38, subdivision 6, is amended to read:
207.30 		Subd. 6.Omission in excess of 25 percent. Additional taxes may be assessed 
207.31 	within 6-1/2 years after the due date of the return or the date the return was filed, 
207.32 	whichever is later, if:
207.33 	(1) the taxpayer omits from gross income an amount properly includable in it that is 
207.34 	in excess of 25 percent of the amount of gross income stated in the return;
208.1 	(2) the taxpayer omits from a sales, use, or withholding tax return, or a return for a 
208.2 	tax imposed under section 295.52, an amount of taxes in excess of 25 percent of the 
208.3 	taxes reported in the return; or
208.4 	(3) the taxpayer omits from the gross estate assets in excess of 25 percent of the 
208.5 	gross estate reported in the return.

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

208.7 	Sec. 3. Minnesota Statutes 2014, section 290.0922, subdivision 2, is amended to read:
208.8 		Subd. 2.Exemptions. The following entities are exempt from the tax imposed 
208.9 	by this section:
208.10 	(1) corporations exempt from tax under section 290.05;
208.11 	(2) real estate investment trusts;
208.12 	(3) regulated investment companies or a fund thereof; and
208.13 	(4) entities having a valid election in effect under section 860D(b) of the Internal 
208.14 	Revenue Code;
208.15 	(5) town and farmers' township mutual insurance companies;
208.16 	(6) cooperatives organized under chapter 308A or 308B that provide housing 
208.17 	exclusively to persons age 55 and over and are classified as homesteads under section 
208.18 	273.124, subdivision 3; and
208.19 	(7) a qualified business as defined under section 469.310, subdivision 11, if for the 
208.20 	taxable year all of its property is located in a job opportunity building zone designated 
208.21 	under section 469.314 and all of its payroll is a job opportunity building zone payroll 
208.22 	under section 469.310.
208.23 	Entities not specifically exempted by this subdivision are subject to tax under this 
208.24 	section, notwithstanding section 290.05.

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

208.26 	Sec. 4. Minnesota Statutes 2014, section 295.54, subdivision 2, is amended to read:
208.27 		Subd. 2.Pharmacy refund. A pharmacy may claim an annual refund against 
208.28 	the total amount of tax, if any, the pharmacy owes during that calendar year under 
208.29 	section 295.52, subdivision 4. The refund shall equal the amount paid by the pharmacy 
208.30 	to a wholesale drug distributor subject to tax under section 295.52, subdivision 3, for 
208.31 	legend drugs delivered by the pharmacy outside of Minnesota, multiplied by the tax 
208.32 	percentage specified in section 295.52, subdivision 3. If the amount of the refund exceeds 
208.33 	the tax liability of the pharmacy under section 295.52, subdivision 4, the commissioner 
209.1 	shall provide the pharmacy with a refund equal to the excess amount. Each qualifying 
209.2 	pharmacy must apply for the refund on the annual return as provided under section 
209.3 	295.55, subdivision 5 prescribed by the commissioner, on or before March 15 of the year 
209.4 	following the calendar year the legend drugs were delivered outside Minnesota. The 
209.5 	refund must be claimed within 18 months from the date the drugs were delivered outside 
209.6 	of Minnesota shall not be allowed if the initial claim for refund is filed more than one year 
209.7 	after the original due date of the return. Interest on refunds paid under this subdivision 
209.8 	will begin to accrue 60 days after the date a claim for refund is filed. For purposes of this 
209.9 	subdivision, the date a claim is filed is the due date of the return if a return is due or the 
209.10 	date of the actual claim for refund, whichever is later.

209.11 	EFFECTIVE DATE. This section is effective for qualifying legend drugs delivered 
209.12 	outside Minnesota after December 31, 2014.

209.13 	Sec. 5. Minnesota Statutes 2014, section 296A.01, is amended by adding a subdivision 
209.14 	to read:
209.15 		Subd. 9a.Bulk storage or bulk storage facility. "Bulk storage" or "bulk storage 
209.16 	facility" means a single property, or contiguous or adjacent properties used for a common 
209.17 	purpose and owned or operated by the same person, on or in which are located one or more 
209.18 	stationary tanks that are used singularly or in combination for the storage or containment 
209.19 	of more than 1,100 gallons of petroleum.

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

209.21 	Sec. 6. Minnesota Statutes 2014, section 296A.01, subdivision 33, is amended to read:
209.22 		Subd. 33.Motor fuel. "Motor fuel" means a liquid or gaseous form of fuel, 
209.23 	regardless of its composition or properties, used to propel a motor vehicle.

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

209.25 	Sec. 7. Minnesota Statutes 2014, section 296A.01, subdivision 42, is amended to read:
209.26 		Subd. 42.Petroleum products. "Petroleum products" means all of the products 
209.27 	defined in subdivisions 2, 7, 8, 8a, 8b, 10, 14, 16, 19, 20, 22 to 26, 28, 32, and 35.

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

209.29 	Sec. 8. Minnesota Statutes 2014, section 296A.07, subdivision 1, is amended to read:
210.1 		Subdivision 1.Tax imposed. There is imposed an excise tax on gasoline, gasoline 
210.2 	blended with ethanol, and agricultural alcohol gasoline used in producing and generating 
210.3 	power for propelling motor vehicles used on the public highways of this state. The tax 
210.4 	is imposed on the first licensed distributor who received the product in Minnesota. For 
210.5 	purposes of this section, gasoline is defined in section 296A.01, subdivisions 8b, 10, 18, 
210.6 	20, 23, 24, 25, 32, and 34. The tax is payable at the time and in the form and manner 
210.7 	prescribed by the commissioner. The tax is payable at the rates specified in subdivision 3, 
210.8 	subject to the exceptions and reductions specified in section 296A.17.

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

210.10 	Sec. 9. Minnesota Statutes 2014, section 297A.82, subdivision 4a, is amended to read:
210.11 		Subd. 4a.Deposit in state airports fund. Tax revenue, including interest and 
210.12 	penalties, collected from the sale or purchase of an aircraft taxable under this chapter must 
210.13 	be deposited in the state airports fund established in section 360.017. For purposes of this 
210.14 	subdivision, "revenue" does not include the revenue, including interest and penalties, 
210.15 	generated by the sales tax imposed under section 297A.62, subdivision 1a, which must be 
210.16 	deposited as provided under the Minnesota Constitution, article XI, section 15.

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

210.18 	Sec. 10. Minnesota Statutes 2014, section 297E.02, subdivision 7, is amended to read:
210.19 		Subd. 7.Untaxed gambling product. (a) In addition to penalties or criminal 
210.20 	sanctions imposed by this chapter, a person, organization, or business entity possessing or 
210.21 	selling a pull-tab, electronic pull-tab game, or tipboard upon which the tax imposed by 
210.22 	this chapter has not been paid is liable for a tax of six percent of the ideal gross of each 
210.23 	pull-tab, electronic pull-tab game, or tipboard. The tax on a partial deal must be assessed 
210.24 	as if it were a full deal.
210.25 	(b) In addition to penalties and criminal sanctions imposed by this chapter, a person 
210.26 	(1) not licensed by the board who conducts bingo, linked bingo, electronic linked bingo, 
210.27 	raffles, or paddlewheel games, or (2) who conducts gambling prohibited under sections 
210.28 	609.75 to 609.763, other than activities subject to tax under section 297E.03, is liable for a 
210.29 	tax of six percent of the gross receipts from that activity.
210.30 	(c) The tax must may be assessed by the commissioner. An assessment must be 
210.31 	considered a jeopardy assessment or jeopardy collection as provided in section 270C.36. 
210.32 	The commissioner shall assess the tax based on personal knowledge or information 
210.33 	available to the commissioner. The commissioner shall mail to the taxpayer at the 
211.1 	taxpayer's last known address, or serve in person, a written notice of the amount of tax, 
211.2 	demand its immediate payment, and, if payment is not immediately made, collect the tax 
211.3 	by any method described in chapter 270C, except that the commissioner need not await the 
211.4 	expiration of the times specified in chapter 270C. The tax assessed by the commissioner 
211.5 	is presumed to be valid and correctly determined and assessed. The burden is upon the 
211.6 	taxpayer to show its incorrectness or invalidity. The tax imposed under this subdivision 
211.7 	does not apply to gambling that is exempt from taxation under subdivision 2.
211.8 	(d) A person, organization, or business entity conducting gambling activity under 
211.9 	this subdivision must file monthly tax returns with the commissioner, in the form required 
211.10 	by the commissioner. The returns must be filed on or before the 20th day of the month 
211.11 	following the month in which the gambling activity occurred. The tax imposed by this 
211.12 	section is due and payable at the time when the returns are required to be filed.
211.13 	(e) Notwithstanding any law to the contrary, neither the commissioner nor a public 
211.14 	employee may reveal facts contained in a tax return filed with the commissioner of 
211.15 	revenue as required by this subdivision, nor can any information contained in the report or 
211.16 	return be used against the tax obligor in any criminal proceeding, unless independently 
211.17 	obtained, except in connection with a proceeding involving taxes due under this section, 
211.18 	or as provided in section 270C.055, subdivision 1. However, this paragraph does not 
211.19 	prohibit the commissioner from publishing statistics that do not disclose the identity of 
211.20 	tax obligors or the contents of particular returns or reports. Any person violating this 
211.21 	paragraph is guilty of a gross misdemeanor.

211.22 	EFFECTIVE DATE. This section is effective for games played or purchased after 
211.23 	June 30, 2015.

211.24 	Sec. 11. Minnesota Statutes 2014, section 297H.06, subdivision 2, is amended to read:
211.25 		Subd. 2.Materials. The tax is not imposed upon charges to generators of mixed 
211.26 	municipal solid waste or upon the volume of nonmixed municipal solid waste for waste 
211.27 	management services to manage the following materials:
211.28 	(1) mixed municipal solid waste and nonmixed municipal solid waste generated 
211.29 	outside of Minnesota;
211.30 	(2) recyclable materials that are separated for recycling by the generator, collected 
211.31 	separately from other waste, and recycled, to the extent the price of the service for 
211.32 	handling recyclable material is separately itemized on a bill to the generator;
211.33 	(3) recyclable nonmixed municipal solid waste that is separated for recycling by 
211.34 	the generator, collected separately from other waste, delivered to a waste facility for the 
211.35 	purpose of recycling, and recycled;
212.1 	(4) industrial waste, when it is transported to a facility owned and operated by 
212.2 	the same person that generated it;
212.3 	(5) mixed municipal solid waste from a recycling facility that separates or processes 
212.4 	recyclable materials and reduces the volume of the waste by at least 85 percent, provided 
212.5 	that the exempted waste is managed separately from other waste;
212.6 	(6) recyclable materials that are separated from mixed municipal solid waste by the 
212.7 	generator, collected and delivered to a waste facility that recycles at least 85 percent of its 
212.8 	waste, and are collected with mixed municipal solid waste that is segregated in leakproof 
212.9 	bags, provided that the mixed municipal solid waste does not exceed five percent of the 
212.10 	total weight of the materials delivered to the facility and is ultimately delivered to a waste 
212.11 	facility identified as a preferred waste management facility in county solid waste plans 
212.12 	under section 115A.46;
212.13 	(7) source-separated compostable waste materials, if the waste is materials are 
212.14 	delivered to a facility exempted as described in this clause. To initially qualify for an 
212.15 	exemption, a facility must apply for an exemption in its application for a new or amended 
212.16 	solid waste permit to the Pollution Control Agency. The first time a facility applies to the 
212.17 	agency it must certify in its application that it will comply with the criteria in items (i) to (v) 
212.18 	and the commissioner of the agency shall so certify to the commissioner of revenue who 
212.19 	must grant the exemption. The facility must annually apply to the agency for certification 
212.20 	to renew its exemption for the following year. The application must be filed according to 
212.21 	the procedures of, and contain the information required by, the agency. The commissioner 
212.22 	of revenue shall grant the exemption if the commissioner of the Pollution Control Agency 
212.23 	finds and certifies to the commissioner of revenue that based on an evaluation of the 
212.24 	composition of incoming waste and residuals and the quality and use of the product:
212.25 	(i) generators separate materials at the source;
212.26 	(ii) the separation is performed in a manner appropriate to the technology specific 
212.27 	to the facility that:
212.28 	(A) maximizes the quality of the product;
212.29 	(B) minimizes the toxicity and quantity of residuals rejects; and
212.30 	(C) provides an opportunity for significant improvement in the environmental 
212.31 	efficiency of the operation;
212.32 	(iii) the operator of the facility educates generators, in coordination with each county 
212.33 	using the facility, about separating the waste to maximize the quality of the waste stream 
212.34 	for technology specific to the facility;
212.35 	(iv) process residuals rejects do not exceed 15 percent of the weight of the total 
212.36 	material delivered to the facility; and
213.1 	(v) the final product is accepted for use;
213.2 	(8) waste and waste by-products for which the tax has been paid; and
213.3 	(9) daily cover for landfills that has been approved in writing by the Minnesota 
213.4 	Pollution Control Agency.

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

213.6 	Sec. 12. Minnesota Statutes 2014, section 297I.05, subdivision 2, is amended to read:
213.7 		Subd. 2.Town and farmers' Township mutual insurance. A tax is imposed on 
213.8 	town and farmers' township mutual insurance companies. The rate of tax is equal to one 
213.9 	percent of gross premiums less return premiums on all direct business received by the 
213.10 	insurer or agents of the insurer in Minnesota, in cash or otherwise, during the year.

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

213.12 	Sec. 13. Minnesota Statutes 2014, section 297I.10, subdivision 1, is amended to read:
213.13 		Subdivision 1.Cities of the first class. (a) The commissioner shall order and direct 
213.14 	a surcharge to be collected of two percent of the fire, lightning, and sprinkler leakage gross 
213.15 	premiums, less return premiums, on all direct business received by any licensed foreign or 
213.16 	domestic fire insurance company on property in a city of the first class, or by its agents for 
213.17 	it, in cash or otherwise.
213.18 	(b) By July 31 and December 31 of each year, the commissioner of management 
213.19 	and budget shall pay to each city of the first class a warrant for an amount equal to the 
213.20 	total amount of the surcharge on the premiums collected within that city since the previous 
213.21 	payment.
213.22 	(c) The treasurer of the city shall place the money received under this subdivision 
213.23 	in a special account or fund to defray all or a portion of the employer contribution 
213.24 	requirement of public employees police and fire plan coverage for city firefighters.

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

213.26 	Sec. 14. Minnesota Statutes 2014, section 297I.10, subdivision 3, is amended to read:
213.27 		Subd. 3.Appropriation. The amount necessary to make the payments required 
213.28 	under this section is appropriated to the commissioner of management and budget from 
213.29 	the general fund.

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

214.1 	Sec. 15. Minnesota Statutes 2014, section 298.01, subdivision 3b, is amended to read:
214.2 		Subd. 3b.Deductions. (a) For purposes of determining taxable income under 
214.3 	subdivision 3, the deductions from gross income include only those expenses necessary 
214.4 	to convert raw ores to marketable quality. Such expenses include costs associated with 
214.5 	refinement but do not include expenses such as transportation, stockpiling, marketing, or 
214.6 	marine insurance that are incurred after marketable ores are produced, unless the expenses 
214.7 	are included in gross income. The allowable deductions from a mine or plant that mines 
214.8 	and produces more than one mineral, metal, or energy resource must be determined 
214.9 	separately for the purposes of computing the deduction in section 290.01, subdivision 19c, 
214.10 	clause (8). These deductions may be combined on one occupation tax return to arrive at 
214.11 	the deduction from gross income for all production.
214.12 	(b) The provisions of section 290.01, subdivisions 19c, clauses (6) and (8), and 19d, 
214.13 	clauses (6) and (9) (8), are not used to determine taxable income.

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

214.15 	Sec. 16. Minnesota Statutes 2014, section 298.01, subdivision 4c, is amended to read:
214.16 		Subd. 4c.Special deductions; net operating loss. (a) For purposes of determining 
214.17 	taxable income under subdivision 4, the provisions of section 290.01, subdivisions 19c, 
214.18 	clauses (6) and (8), and 19d, clauses (6) and (9) (8), are not used to determine taxable 
214.19 	income.
214.20 	(b) The amount of net operating loss incurred in a taxable year beginning before 
214.21 	January 1, 1990, that may be carried over to a taxable year beginning after December 31, 
214.22 	1989, is the amount of net operating loss carryover determined in the calculation of the 
214.23 	hypothetical corporate franchise tax under Minnesota Statutes 1988, sections 298.40 
214.24 	and 298.402.

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

214.26 	ARTICLE 15
214.27 	DEPARTMENT OF REVENUE TECHNICAL AND POLICY - 
214.28 	PROPERTY TAX PROVISIONS

214.29 	Section 1. Minnesota Statutes 2014, section 13.51, subdivision 2, is amended to read:
214.30 		Subd. 2.Income property assessment data. The following data collected by 
214.31 	political subdivisions and the state from individuals or business entities concerning 
214.32 	income properties are classified as private or nonpublic data pursuant to section 13.02, 
214.33 	subdivisions 9 and 12:
215.1 	(a) detailed income and expense figures;
215.2 	(b) average vacancy factors;
215.3 	(c) verified net rentable areas or net usable areas, whichever is appropriate;
215.4 	(d) anticipated income and expenses;
215.5 	(e) projected vacancy factors; and
215.6 	(f) lease information.

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

215.8 	Sec. 2. Minnesota Statutes 2014, section 270.071, subdivision 2, is amended to read:
215.9 		Subd. 2.Air commerce. (a) "Air commerce" means the transportation by aircraft 
215.10 	of persons or property for hire in interstate, intrastate, or international transportation 
215.11 	on regularly scheduled flights or on intermittent or irregularly timed flights by airline 
215.12 	companies and includes transportation by any airline company making three or more 
215.13 	flights in or out of Minnesota, or within Minnesota, during a calendar year.
215.14 	(b) "Air commerce" includes but is not limited to an intermittent or irregularly timed 
215.15 	flight, a flight arranged at the convenience of an airline and the person contracting for the 
215.16 	transportation, or a charter flight. It includes any airline company making three or more 
215.17 	flights in or out of Minnesota during a calendar year.
215.18 	(c) "Air commerce" does not include casual transportation for hire by aircraft 
215.19 	commonly owned and used for private air flight purposes if the person furnishing the 
215.20 	transportation does not hold out to be engaged regularly in transportation for hire.

215.21 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
215.22 	thereafter.

215.23 	Sec. 3. Minnesota Statutes 2014, section 270.071, subdivision 7, is amended to read:
215.24 		Subd. 7.Flight property. "Flight property" means all aircraft and flight equipment 
215.25 	used in connection therewith, including spare flight equipment. Flight property also 
215.26 	includes computers and computer software used in operating, controlling, or regulating 
215.27 	aircraft and flight equipment. Flight property does not include aircraft with a maximum 
215.28 	takeoff weight of less than 30,000 pounds.

215.29 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
215.30 	thereafter.

215.31 	Sec. 4. Minnesota Statutes 2014, section 270.071, subdivision 8, is amended to read:
216.1 		Subd. 8.Person. "Person" means any an individual, corporation, firm, 
216.2 	copartnership, company, or association, and includes any guardian, trustee, executor, 
216.3 	administrator, receiver, conservator, or any person acting in any fiduciary capacity therefor 
216.4 	trust, estate, fiduciary, partnership, company, corporation, limited liability company, 
216.5 	association, governmental unit or agency, public or private organization of any kind, 
216.6 	or other legal entity.

216.7 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
216.8 	thereafter.

216.9 	Sec. 5. Minnesota Statutes 2014, section 270.071, is amended by adding a subdivision 
216.10 	to read:
216.11 		Subd. 10.Intermittent or irregularly timed flights. "Intermittently or irregularly 
216.12 	timed flights" means any flight in which the departure time, departure location, and arrival 
216.13 	location are specifically negotiated with the customer or the customer's representative, 
216.14 	including but not limited to charter flights.

216.15 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
216.16 	thereafter.

216.17 	Sec. 6. Minnesota Statutes 2014, section 270.072, subdivision 2, is amended to read:
216.18 		Subd. 2.Assessment of flight property.  Flight property that is owned by, or is 
216.19 	leased, loaned, or otherwise made available to an airline company operating in Minnesota 
216.20 	shall be assessed and appraised annually by the commissioner with reference to its value 
216.21 	on January 2 of the assessment year in the manner prescribed by sections 270.071 to 
216.22 	270.079. Aircraft with a gross weight of less than 30,000 pounds and used on intermittent 
216.23 	or irregularly timed flights shall be excluded from the provisions of sections 270.071 to 
216.24 	270.079.

216.25 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
216.26 	thereafter.

216.27 	Sec. 7. Minnesota Statutes 2014, section 270.072, subdivision 3, is amended to read:
216.28 		Subd. 3.Report by airline company. (a) Each year, on or before July 1, every 
216.29 	airline company engaged in air commerce in this state shall file with the commissioner a 
216.30 	report under oath setting forth specifically the information prescribed by the commissioner 
216.31 	to enable the commissioner to make the assessment required in sections 270.071 to 
216.32 	270.079, unless the commissioner determines that the airline company or person should be 
217.1 	excluded from is exempt from filing because its activities do not constitute air commerce 
217.2 	as defined herein.
217.3 	(b) The commissioner shall prescribe the content, format, and manner of the report 
217.4 	pursuant to section 270C.30, except that a "law administered by the commissioner" 
217.5 	includes the property tax laws. If a report is made by electronic means, the taxpayer's 
217.6 	signature is defined pursuant to section 270C.304, except that a "law administered by the 
217.7 	commissioner" includes the property tax laws.

217.8 	EFFECTIVE DATE. The amendment to paragraph (a) is effective for reports 
217.9 	filed in 2016 and thereafter. The amendment adding paragraph (b) is effective the day 
217.10 	following final enactment.

217.11 	Sec. 8. Minnesota Statutes 2014, section 270.072, is amended by adding a subdivision 
217.12 	to read:
217.13 		Subd. 3a.Commissioner filed reports. If an airline company fails to file a report 
217.14 	required by subdivision 3, the commissioner may, from information in the commissioner's 
217.15 	possession or obtainable by the commissioner, make and file a report for the airline 
217.16 	company, or may issue a notice of net tax capacity and tax under section 270.075, 
217.17 	subdivision 2.

217.18 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
217.19 	thereafter.

217.20 	Sec. 9. Minnesota Statutes 2014, section 270.12, is amended by adding a subdivision 
217.21 	to read:
217.22 		Subd. 6.Reassessment orders. If the State Board of Equalization determines that a 
217.23 	considerable amount of property has been undervalued or overvalued compared to like 
217.24 	property such that the assessment is grossly unfair or inequitable, the State Board of 
217.25 	Equalization may, pursuant to its responsibilities under subdivisions 2 and 3, issue orders 
217.26 	to the county assessor to reassess all or any part of a parcel in a county.

217.27 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
217.28 	thereafter.

217.29 	Sec. 10. Minnesota Statutes 2014, section 270.82, subdivision 1, is amended to read:
217.30 		Subdivision 1.Annual report required. Every railroad company doing business 
217.31 	in Minnesota shall annually file with the commissioner on or before March 31 a report 
217.32 	under oath setting forth the information prescribed by the commissioner to enable the 
218.1 	commissioner to make the valuation and equalization required by sections 270.80 to 
218.2 	270.87. The commissioner shall prescribe the content, format, and manner of the report 
218.3 	pursuant to section 270C.30, except that a "law administered by the commissioner" 
218.4 	includes the property tax laws. If a report is made by electronic means, the taxpayer's 
218.5 	signature is defined pursuant to section 270C.304, except that a "law administered by the 
218.6 	commissioner" includes the property tax laws.

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

218.8 	Sec. 11. Minnesota Statutes 2014, section 270C.89, subdivision 1, is amended to read:
218.9 		Subdivision 1.Initial report. Each county assessor shall file by April 1 with the 
218.10 	commissioner a copy of the abstract that will be acted upon by the local and county 
218.11 	boards of review. The abstract must list the real and personal property in the county 
218.12 	itemized by assessment districts. The assessor of each county in the state shall file with 
218.13 	the commissioner, within ten working days following final action of the local board of 
218.14 	review or equalization and within five days following final action of the county board of 
218.15 	equalization, any changes made by the local or county board. The information must be 
218.16 	filed in the manner prescribed by the commissioner. It must be accompanied by a printed 
218.17 	or typewritten copy of the proceedings of the appropriate board.

218.18 	EFFECTIVE DATE. This section is effective for county boards of appeal and 
218.19 	equalization meetings held in 2016 and thereafter.

218.20 	Sec. 12. Minnesota Statutes 2014, section 272.02, subdivision 9, is amended to read:
218.21 		Subd. 9.Personal property; exceptions. Except for the taxable personal property 
218.22 	enumerated below, all personal property and the property described in section 272.03, 
218.23 	subdivision 1, paragraphs (c) and (d), shall be exempt.
218.24 	The following personal property shall be taxable:
218.25 	(a) personal property which is part of (i) an electric generating, transmission, or 
218.26 	distribution system or; (ii) a pipeline system transporting or distributing water, gas, crude 
218.27 	oil, or petroleum products; or (iii) mains and pipes used in the distribution of steam or hot 
218.28 	or chilled water for heating or cooling buildings and structures;
218.29 	(b) railroad docks and wharves which are part of the operating property of a railroad 
218.30 	company as defined in section 270.80;
218.31 	(c) personal property defined in section 272.03, subdivision 2, clause (3);
219.1 	(d) leasehold or other personal property interests which are taxed pursuant to section 
219.2 	272.01, subdivision 2; 273.124, subdivision 7; or 273.19, subdivision 1; or any other law 
219.3 	providing the property is taxable as if the lessee or user were the fee owner;
219.4 	(e) manufactured homes and sectional structures, including storage sheds, decks, 
219.5 	and similar removable improvements constructed on the site of a manufactured home, 
219.6 	sectional structure, park trailer or travel trailer as provided in section 273.125, subdivision 
219.7 	8, paragraph (f); and
219.8 	(f) flight property as defined in section 270.071.

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

219.10 	Sec. 13. Minnesota Statutes 2014, section 272.029, subdivision 2, is amended to read:
219.11 		Subd. 2.Definitions. (a) For the purposes of this section, the term:
219.12 	(1) "wind energy conversion system" has the meaning given in section 216C.06, 
219.13 	subdivision 19, and also includes a substation that is used and owned by one or more 
219.14 	wind energy conversion facilities;
219.15 	(2) "large scale wind energy conversion system" means a wind energy conversion 
219.16 	system of more than 12 megawatts, as measured by the nameplate capacity of the system 
219.17 	or as combined with other systems as provided in paragraph (b);
219.18 	(3) "medium scale wind energy conversion system" means a wind energy conversion 
219.19 	system of over two and not more than 12 megawatts, as measured by the nameplate 
219.20 	capacity of the system or as combined with other systems as provided in paragraph (b); and
219.21 	(4) "small scale wind energy conversion system" means a wind energy conversion 
219.22 	system of two megawatts and under, as measured by the nameplate capacity of the system 
219.23 	or as combined with other systems as provided in paragraph (b).
219.24 	(b) For systems installed and contracted for after January 1, 2002, the total size of a 
219.25 	wind energy conversion system under this subdivision shall be determined according to 
219.26 	this paragraph. Unless the systems are interconnected with different distribution systems, 
219.27 	the nameplate capacity of one wind energy conversion system shall be combined with the 
219.28 	nameplate capacity of any other wind energy conversion system that is:
219.29 	(1) located within five miles of the wind energy conversion system;
219.30 	(2) constructed within the same calendar year 12-month period as the wind energy 
219.31 	conversion system; and
219.32 	(3) under common ownership.
219.33 	In the case of a dispute, the commissioner of commerce shall determine the total size 
219.34 	of the system, and shall draw all reasonable inferences in favor of combining the systems.
220.1 	(c) In making a determination under paragraph (b), the commissioner of commerce 
220.2 	may determine that two wind energy conversion systems are under common ownership 
220.3 	when the underlying ownership structure contains similar persons or entities, even if the 
220.4 	ownership shares differ between the two systems. Wind energy conversion systems are 
220.5 	not under common ownership solely because the same person or entity provided equity 
220.6 	financing for the systems.

220.7 	EFFECTIVE DATE. This section is effective for reports filed in 2016 and thereafter.

220.8 	Sec. 14. Minnesota Statutes 2014, section 272.029, subdivision 4, is amended to read:
220.9 		Subd. 4.Reports. (a) An owner of a wind energy conversion system subject to tax 
220.10 	under subdivision 3 shall file a report with the commissioner of revenue annually on 
220.11 	or before February 1 January 15 detailing the amount of electricity in kilowatt-hours 
220.12 	that was produced by the wind energy conversion system for the previous calendar year. 
220.13 	The commissioner shall prescribe the form of the report. The report must contain the 
220.14 	information required by the commissioner to determine the tax due to each county under 
220.15 	this section for the current year. If an owner of a wind energy conversion system subject 
220.16 	to taxation under this section fails to file the report by the due date, the commissioner 
220.17 	of revenue shall determine the tax based upon the nameplate capacity of the system 
220.18 	multiplied by a capacity factor of 60 percent.
220.19 	(b) On or before February 28, the commissioner of revenue shall notify the owner of 
220.20 	the wind energy conversion systems of the tax due to each county for the current year and 
220.21 	shall certify to the county auditor of each county in which the systems are located the tax 
220.22 	due from each owner for the current year.

220.23 	EFFECTIVE DATE. This section is effective for reports filed in 2016 and thereafter.

220.24 	Sec. 15. Minnesota Statutes 2014, section 272.029, is amended by adding a subdivision 
220.25 	to read:
220.26 		Subd. 8.Extension. The commissioner may, for good cause, extend the time for 
220.27 	filing the report required by subdivision 4. The extension must not exceed 15 days.

220.28 	EFFECTIVE DATE. This section is effective for reports filed in 2016 and thereafter.

220.29 	Sec. 16. Minnesota Statutes 2014, section 273.032, is amended to read:
220.30 	273.032 MARKET VALUE DEFINITION.
221.1 	(a) Unless otherwise provided, for the purpose of determining any property tax 
221.2 	levy limitation based on market value or any limit on net debt, the issuance of bonds, 
221.3 	certificates of indebtedness, or capital notes based on market value, any qualification to 
221.4 	receive state aid based on market value, or any state aid amount based on market value, 
221.5 	the terms "market value," "estimated market value," and "market valuation," whether 
221.6 	equalized or unequalized, mean the estimated market value of taxable property within the 
221.7 	local unit of government before any of the following or similar adjustments for:
221.8 	(1) the market value exclusions under:
221.9 	(i) section 273.11, subdivisions 14a and 14c (vacant platted land);
221.10 	(ii) section 273.11, subdivision 16 (certain improvements to homestead property);
221.11 	(iii) section 273.11, subdivisions 19 and 20 (certain improvements to business 
221.12 	properties);
221.13 	(iv) section 273.11, subdivision 21 (homestead property damaged by mold);
221.14 	(v) section 273.11, subdivision 22 (qualifying lead hazardous reduction projects);
221.15 	(vi) (v) section 273.13, subdivision 34 (homestead of a disabled veteran or family 
221.16 	caregiver); or
221.17 	(vii) (vi) section 273.13, subdivision 35 (homestead market value exclusion); or
221.18 	(2) the deferment of value under:
221.19 	(i) the Minnesota Agricultural Property Tax Law, section 273.111;
221.20 	(ii) the Aggregate Resource Preservation Law, section 273.1115;
221.21 	(iii) the Minnesota Open Space Property Tax Law, section 273.112;
221.22 	(iv) the rural preserves property tax program, section 273.114; or
221.23 	(v) the Metropolitan Agricultural Preserves Act, section 473H.10; or
221.24 	(3) the adjustments to tax capacity for:
221.25 	(i) tax increment financing under sections 469.174 to 469.1794;
221.26 	(ii) fiscal disparities under chapter 276A or 473F; or
221.27 	(iii) powerline credit under section 273.425.
221.28 	(b) Estimated market value under paragraph (a) also includes the market value 
221.29 	of tax-exempt property if the applicable law specifically provides that the limitation, 
221.30 	qualification, or aid calculation includes tax-exempt property.
221.31 	(c) Unless otherwise provided, "market value," "estimated market value," and 
221.32 	"market valuation" for purposes of property tax levy limitations and calculation of state 
221.33 	aid, refer to the estimated market value for the previous assessment year and for purposes 
221.34 	of limits on net debt, the issuance of bonds, certificates of indebtedness, or capital notes 
221.35 	refer to the estimated market value as last finally equalized.
222.1 	(d) For purposes of a provision of a home rule charter or of any special law that is not 
222.2 	codified in the statutes and that imposes a levy limitation based on market value or any limit 
222.3 	on debt, the issuance of bonds, certificates of indebtedness, or capital notes based on market 
222.4 	value, the terms "market value," "taxable market value," and "market valuation," whether 
222.5 	equalized or unequalized, mean "estimated market value" as defined in paragraph (a).

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

222.7 	Sec. 17. Minnesota Statutes 2014, section 273.061, subdivision 7, is amended to read:
222.8 		Subd. 7.Division of duties between local and county assessor. The duty of the 
222.9 	duly appointed local assessor shall be to view and appraise the value of all property as 
222.10 	provided by law, but all the book work shall be done by the county assessor, or the 
222.11 	assessor's assistants, and the value of all property subject to assessment and taxation shall 
222.12 	be determined by the county assessor, except as otherwise hereinafter provided. If directed 
222.13 	by the county assessor, the local assessor shall must perform the duties enumerated in 
222.14 	subdivision 8, clause (16), and must enter construction and valuation data into the records 
222.15 	in the manner prescribed by the county auditor.

222.16 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
222.17 	thereafter.

222.18 	Sec. 18. Minnesota Statutes 2014, section 273.08, is amended to read:
222.19 	273.08 ASSESSOR'S DUTIES.
222.20 	The assessor shall actually view, and determine the market value of each tract or lot 
222.21 	of real property listed for taxation, including the value of all improvements and structures 
222.22 	thereon, at maximum intervals of five years and shall enter the value opposite each 
222.23 	description. When directed by the county assessor, local assessors must enter construction 
222.24 	and valuation data into the records in the manner prescribed by the county assessor.

222.25 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
222.26 	thereafter.

222.27 	Sec. 19. Minnesota Statutes 2014, section 273.121, is amended by adding a subdivision 
222.28 	to read:
222.29 		Subd. 3.Compliance. A county assessor, or a city assessor having the powers 
222.30 	of a county assessor, who does not comply with the timely notice requirement under 
222.31 	subdivision 1 must:
223.1 	(1) mail an additional valuation notice to each person who was not provided timely 
223.2 	notice; and
223.3 	(2) convene a supplemental local board of appeal and equalization or local review 
223.4 	session no sooner than ten days after sending the additional notices required by clause (1).

223.5 	EFFECTIVE DATE. This section is effective for valuation notices sent in 2016 
223.6 	and thereafter.

223.7 	Sec. 20. Minnesota Statutes 2014, section 273.33, subdivision 1, is amended to read:
223.8 		Subdivision 1.Listing and assessment in county. The personal property of express, 
223.9 	stage and transportation companies, and of pipeline companies engaged in the business 
223.10 	of transporting natural gas, gasoline, crude oil, or other petroleum products, except as 
223.11 	otherwise provided by law, shall be listed and assessed in the county, town or district 
223.12 	where the same is usually kept.

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

223.14 	Sec. 21. Minnesota Statutes 2014, section 273.33, subdivision 2, is amended to read:
223.15 		Subd. 2.Listing and assessment by commissioner. The personal property, 
223.16 	consisting of the pipeline system of mains, pipes, and equipment attached thereto, of 
223.17 	pipeline companies and others engaged in the operations or business of transporting 
223.18 	natural gas, gasoline, crude oil, or other petroleum products by pipelines, shall be listed 
223.19 	with and assessed by the commissioner of revenue and the values provided to the 
223.20 	city or county assessor by order. This subdivision shall not apply to the assessment of 
223.21 	the products transported through the pipelines nor to the lines of local commercial gas 
223.22 	companies engaged primarily in the business of distributing gas products to consumers at 
223.23 	retail nor to pipelines used by the owner thereof to supply natural gas or other petroleum 
223.24 	products exclusively for such owner's own consumption and not for resale to others. If 
223.25 	more than 85 percent of the natural gas or other petroleum products actually transported 
223.26 	over the pipeline is used for the owner's own consumption and not for resale to others, 
223.27 	then this subdivision shall not apply; provided, however, that in that event, the pipeline 
223.28 	shall be assessed in proportion to the percentage of gas products actually transported over 
223.29 	such pipeline that is not used for the owner's own consumption. On or before August 1, 
223.30 	the commissioner shall certify to the auditor of each county, the amount of such personal 
223.31 	property assessment against each company in each district in which such property is 
223.32 	located. If the commissioner determines that the amount of personal property assessment 
223.33 	certified on or before August 1 is in error, the commissioner may issue a corrected 
224.1 	certification on or before October 1. The commissioner may correct errors that are merely 
224.2 	clerical in nature until December 31.

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

224.4 	Sec. 22. Minnesota Statutes 2014, section 273.371, is amended to read:
224.5 	273.371 REPORTS OF UTILITY COMPANIES.
224.6 		Subdivision 1.Report required. Every electric light, power, gas, water, express, 
224.7 	stage, and transportation company, and pipeline company doing business in Minnesota 
224.8 	shall annually file with the commissioner on or before March 31 a report under oath setting 
224.9 	forth the information prescribed by the commissioner to enable the commissioner to make 
224.10 	valuations, recommended valuations, and equalization required under sections 273.33, 
224.11 	273.35, 273.36, 273.37, and 273.3711. If all the required information is not available on 
224.12 	March 31, the company or pipeline shall file the information that is available on or before 
224.13 	March 31, and the balance of the information as soon as it becomes available.
224.14 		Subd. 2.Extension. The commissioner for good cause may extend the time for 
224.15 	filing the report required by subdivision 1. The extension may must not exceed 15 days.
224.16 		Subd. 3.Reports filed by the commissioner. If a company fails to file a report 
224.17 	required by subdivision 1, the commissioner may, from information in the commissioner's 
224.18 	possession or obtainable by the commissioner, make and file a report for the company, or 
224.19 	make the valuations, recommended valuations, and equalizations required under sections 
224.20 	273.33, 273.35 to 273.37, and 273.3711.

224.21 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
224.22 	thereafter.

224.23 	Sec. 23. Minnesota Statutes 2014, section 273.372, subdivision 2, is amended to read:
224.24 		Subd. 2.Contents and filing of petition. (a) In all appeals to court that are required 
224.25 	to be brought against the commissioner under this section, the petition initiating the appeal 
224.26 	must be served on the commissioner and must be filed with the Tax Court in Ramsey 
224.27 	County, as provided in paragraph (b) or (c).
224.28 	(b) If the appeal to court is from an order of the commissioner, it must be brought 
224.29 	under chapter 271 and filed within the time period prescribed in section 271.06, 
224.30 	subdivision 2, except that when the provisions of this section conflict with chapter 
224.31 	271 or 278, this section prevails. In addition, the petition must include all the parcels 
224.32 	encompassed by that order which the petitioner claims have been partially, unfairly, 
224.33 	or unequally assessed, assessed at a valuation greater than their real or actual value, 
225.1 	misclassified, or are exempt. For this purpose, an order of the commissioner is either (1) a 
225.2 	certification or notice of value by the commissioner for property described in subdivision 
225.3 	1, or (2) the final determination by the commissioner of either an administrative appeal 
225.4 	conference or informal administrative appeal described in subdivision 4.
225.5 	(c) If the appeal is from the tax that results from implementation of the 
225.6 	commissioner's order, certification, or recommendation, it must be brought under 
225.7 	chapter 278, and the provisions in that chapter apply, except that service shall be on the 
225.8 	commissioner only and not on the local officials specified in section 278.01, subdivision 1, 
225.9 	and if any other provision of this section conflicts with chapter 278, this section prevails. 
225.10 	In addition, the petition must include either all the utility parcels or all the railroad parcels 
225.11 	in the state in which the petitioner claims an interest and which the petitioner claims have 
225.12 	been partially, unfairly, or unequally assessed, assessed at a valuation greater than their 
225.13 	real or actual value, misclassified, or are exempt.

225.14 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
225.15 	thereafter.

225.16 	Sec. 24. Minnesota Statutes 2014, section 273.372, subdivision 4, is amended to read:
225.17 		Subd. 4.Administrative appeals. (a) Companies that submit the reports under 
225.18 	section 270.82 or 273.371 by the date specified in that section, or by the date specified 
225.19 	by the commissioner in an extension, may appeal administratively to the commissioner 
225.20 	prior to bringing an action in court.
225.21 	(b) Companies that must submit reports under section 270.82 must submit file a 
225.22 	written request to for an appeal with the commissioner for a conference within ten 30 
225.23 	days after the notice date of the commissioner's valuation certification or other notice 
225.24 	to the company, or by June 15, whichever is earlier. For purposes of this section, the 
225.25 	term "notice date" means the date of the valuation certification, commissioner's order, 
225.26 	recommendation, or other notice.
225.27 	(c) Companies that submit reports under section 273.371 must submit a written 
225.28 	request to the commissioner for a conference within ten days after the date of the 
225.29 	commissioner's valuation certification or notice to the company, or by July 1, whichever 
225.30 	is earlier. The appeal need not be in any particular form but must contain the following 
225.31 	information:
225.32 	(1) name and address of the company;
225.33 	(2) the date;
225.34 	(3) its Minnesota identification number;
225.35 	(4) the assessment year or period involved;
226.1 	(5) the findings in the valuation that the company disputes;
226.2 	(6) a summary statement specifying its reasons for disputing each item; and
226.3 	(7) the signature of the company's duly authorized agent or representative.
226.4 	(d) When requested in writing and within the time allowed for filing an 
226.5 	administrative appeal, the commissioner may extend the time for filing an appeal for a 
226.6 	period of not more than 15 days from the expiration of the time for filing the appeal.
226.7 	(d) (e) The commissioner shall conduct the conference either in person or by 
226.8 	telephone upon the commissioner's entire files and records and such further information as 
226.9 	may be offered. The conference must be held no later than 20 days after the date of the 
226.10 	commissioner's valuation certification or notice to the company, or by the date specified 
226.11 	by the commissioner in an extension request for an appeal. Within 60 30 days after the 
226.12 	conference the commissioner shall make a final determination of the matter and shall 
226.13 	notify the company promptly of the determination. The conference is not a contested 
226.14 	case hearing subject to chapter 14.
226.15 	(e) In addition to the opportunity for a conference under paragraph (a), the 
226.16 	commissioner shall also provide the railroad and utility companies the opportunity to 
226.17 	discuss any questions or concerns relating to the values established by the commissioner 
226.18 	through certification or notice in a less formal manner. This does not change or modify 
226.19 	the deadline for requesting a conference under paragraph (a), the deadline in section 
226.20 	271.06 for appealing an order of the commissioner, or the deadline in section 278.01 for 
226.21 	appealing property taxes in court.

226.22 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
226.23 	thereafter.

226.24 	Sec. 25. Minnesota Statutes 2014, section 273.372, is amended by adding a subdivision 
226.25 	to read:
226.26 		Subd. 5.Agreement determining valuation. When it appears to be in the best 
226.27 	interest of the state, the commissioner may settle any matter under consideration regarding 
226.28 	an appeal filed under this section. The agreement must be in writing and signed by 
226.29 	the commissioner and the company or the company's authorized representative. The 
226.30 	agreement is final and conclusive, and except upon a showing of fraud, malfeasance, 
226.31 	or misrepresentation of a material fact, the case may not be reopened as to the matters 
226.32 	agreed upon.

226.33 	EFFECTIVE DATE. This section is effective for assessment year 2016 and 
226.34 	thereafter.

227.1 	Sec. 26. Minnesota Statutes 2014, section 273.372, is amended by adding a subdivision 
227.2 	to read:
227.3 		Subd. 6.Dismissal of administrative appeal. If a taxpayer files an administrative 
227.4 	appeal from an order of the commissioner and also files an appeal to the tax court for 
227.5 	that same order of the commissioner, the administrative appeal is dismissed and the 
227.6 	commissioner is no longer required to make the determination of appeal under subdivision 
227.7 	4.

227.8 	EFFECTIVE DATE. This section is effective beginning with assessment year 2015.

227.9 	Sec. 27. Minnesota Statutes 2014, section 274.01, subdivision 1, is amended to read:
227.10 		Subdivision 1.Ordinary board; meetings, deadlines, grievances. (a) The town 
227.11 	board of a town, or the council or other governing body of a city, is the local board 
227.12 	of appeal and equalization except (1) in cities whose charters provide for a board of 
227.13 	equalization or (2) in any city or town that has transferred its local board of review power 
227.14 	and duties to the county board as provided in subdivision 3. The county assessor shall 
227.15 	fix a day and time when the board or the local board of equalization shall meet in the 
227.16 	assessment districts of the county. Notwithstanding any law or city charter to the contrary, 
227.17 	a city board of equalization shall be referred to as a local board of appeal and equalization. 
227.18 	On or before February 15 of each year the assessor shall give written notice of the time 
227.19 	to the city or town clerk. Notwithstanding the provisions of any charter to the contrary, 
227.20 	the meetings must be held between April 1 and May 31 each year. The clerk shall give 
227.21 	published and posted notice of the meeting at least ten days before the date of the meeting.
227.22 	The board shall meet either at a central location within the county or at the office of 
227.23 	the clerk to review the assessment and classification of property in the town or city. No 
227.24 	changes in valuation or classification which are intended to correct errors in judgment by 
227.25 	the county assessor may be made by the county assessor after the board has adjourned 
227.26 	in those cities or towns that hold a local board of review; however, corrections of errors 
227.27 	that are merely clerical in nature or changes that extend homestead treatment to property 
227.28 	are permitted after adjournment until the tax extension date for that assessment year. The 
227.29 	changes must be fully documented and maintained in the assessor's office and must be 
227.30 	available for review by any person. A copy of the changes made during this period in 
227.31 	those cities or towns that hold a local board of review must be sent to the county board no 
227.32 	later than December 31 of the assessment year.
227.33 	(b) The board shall determine whether the taxable property in the town or city has 
227.34 	been properly placed on the list and properly valued by the assessor. If real or personal 
227.35 	property has been omitted, the board shall place it on the list with its market value, and 
228.1 	correct the assessment so that each tract or lot of real property, and each article, parcel, 
228.2 	or class of personal property, is entered on the assessment list at its market value. No 
228.3 	assessment of the property of any person may be raised unless the person has been 
228.4 	duly notified of the intent of the board to do so. On application of any person feeling 
228.5 	aggrieved, the board shall review the assessment or classification, or both, and correct 
228.6 	it as appears just. The board may not make an individual market value adjustment or 
228.7 	classification change that would benefit the property if the owner or other person having 
228.8 	control over the property has refused the assessor access to inspect the property and the 
228.9 	interior of any buildings or structures as provided in section 273.20. A board member 
228.10 	shall not participate in any actions of the board which result in market value adjustments 
228.11 	or classification changes to property owned by the board member, the spouse, parent, 
228.12 	stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, aunt, nephew, 
228.13 	or niece of a board member, or property in which a board member has a financial interest. 
228.14 	The relationship may be by blood or marriage.
228.15 	(c) A local board may reduce assessments upon petition of the taxpayer but the total 
228.16 	reductions must not reduce the aggregate assessment made by the county assessor by more 
228.17 	than one percent. If the total reductions would lower the aggregate assessments made by 
228.18 	the county assessor by more than one percent, none of the adjustments may be made. The 
228.19 	assessor shall correct any clerical errors or double assessments discovered by the board 
228.20 	without regard to the one percent limitation.
228.21 	(d) A local board does not have authority to grant an exemption or to order property 
228.22 	removed from the tax rolls.
228.23 	(e) A majority of the members may act at the meeting, and adjourn from day to day 
228.24 	until they finish hearing the cases presented. The assessor shall attend and take part in 
228.25 	the proceedings, but must not vote. The county assessor, or an assistant delegated by the 
228.26 	county assessor shall attend the meetings. The board shall list separately all omitted 
228.27 	property added to the list by the board and all items of property increased or decreased, 
228.28 	with the market value of each item of property, added or changed by the board. The 
228.29 	county assessor shall enter all changes made by the board.
228.30 	(f) Except as provided in subdivision 3, if a person fails to appear in person, by 
228.31 	counsel, or by written communication before the board after being duly notified of the 
228.32 	board's intent to raise the assessment of the property, or if a person feeling aggrieved by an 
228.33 	assessment or classification fails to apply for a review of the assessment or classification, 
228.34 	the person may not appear before the county board of appeal and equalization for a review. 
228.35 	This paragraph does not apply if an assessment was made after the local board meeting, as 
229.1 	provided in section 273.01, or if the person can establish not having received notice of 
229.2 	market value at least five days before the local board meeting.
229.3 	(g) The local board must complete its work and adjourn within 20 days from the 
229.4 	time of convening stated in the notice of the clerk, unless a longer period is approved by 
229.5 	the commissioner of revenue. No action taken after that date is valid. All complaints 
229.6 	about an assessment or classification made after the meeting of the board must be heard 
229.7 	and determined by the county board of equalization. A nonresident may, at any time, 
229.8 	before the meeting of the board file written objections to an assessment or classification 
229.9 	with the county assessor. The objections must be presented to the board at its meeting by 
229.10 	the county assessor for its consideration.

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

229.12 	Sec. 28. Minnesota Statutes 2014, section 274.13, subdivision 1, is amended to read:
229.13 		Subdivision 1.Members; meetings; rules for equalizing assessments. The county 
229.14 	commissioners, or a majority of them, with the county auditor, or, if the auditor cannot be 
229.15 	present, the deputy county auditor, or, if there is no deputy, the court administrator of the 
229.16 	district court, shall form a board for the equalization of the assessment of the property 
229.17 	of the county, including the property of all cities whose charters provide for a board of 
229.18 	equalization. This board shall be referred to as the county board of appeal and equalization. 
229.19 	The board shall meet annually, on the date specified in section 274.14, at the office of the 
229.20 	auditor. Each member shall take an oath to fairly and impartially perform duties as a 
229.21 	member. Members shall not participate in any actions of the board which result in market 
229.22 	value adjustments or classification changes to property owned by the board member, the 
229.23 	spouse, parent, stepparent, child, stepchild, grandparent, grandchild, brother, sister, uncle, 
229.24 	aunt, nephew, or niece of a board member, or property in which a board member has a 
229.25 	financial interest. The relationship may be by blood or marriage. The board shall examine 
229.26 	and compare the returns of the assessment of property of the towns or districts, and 
229.27 	equalize them so that each tract or lot of real property and each article or class of personal 
229.28 	property is entered on the assessment list at its market value, subject to the following rules:
229.29 	(1) The board shall raise the valuation of each tract or lot of real property which 
229.30 	in its opinion is returned below its market value to the sum believed to be its market 
229.31 	value. The board must first give notice of intention to raise the valuation to the person in 
229.32 	whose name it is assessed, if the person is a resident of the county. The notice must fix 
229.33 	a time and place for a hearing.
229.34 	(2) The board shall reduce the valuation of each tract or lot which in its opinion is 
229.35 	returned above its market value to the sum believed to be its market value.
230.1 	(3) The board shall raise the valuation of each class of personal property which 
230.2 	in its opinion is returned below its market value to the sum believed to be its market 
230.3 	value. It shall raise the aggregate value of the personal property of individuals, firms, or 
230.4 	corporations, when it believes that the aggregate valuation, as returned, is less than the 
230.5 	market value of the taxable personal property possessed by the individuals, firms, or 
230.6 	corporations, to the sum it believes to be the market value. The board must first give notice 
230.7 	to the persons of intention to do so. The notice must set a time and place for a hearing.
230.8 	(4) The board shall reduce the valuation of each class of personal property that 
230.9 	is returned above its market value to the sum it believes to be its market value. Upon 
230.10 	complaint of a party aggrieved, the board shall reduce the aggregate valuation of the 
230.11 	individual's personal property, or of any class of personal property for which the individual 
230.12 	is assessed, which in its opinion has been assessed at too large a sum, to the sum it believes 
230.13 	was the market value of the individual's personal property of that class.
230.14 	(5) The board must not reduce the aggregate value of all the property of its county, as 
230.15 	submitted to the county board of equalization, with the additions made by the auditor under 
230.16 	this chapter, by more than one percent of its whole valuation. The board may raise the 
230.17 	aggregate valuation of real property, and of each class of personal property, of the county, 
230.18 	or of any town or district of the county, when it believes it is below the market value of the 
230.19 	property, or class of property, to the aggregate amount it believes to be its market value.
230.20 	(6) The board shall change the classification of any property which in its opinion 
230.21 	is not properly classified.
230.22 	(7) The board does not have the authority to grant an exemption or to order property 
230.23 	removed from the tax rolls.
230.24 	(8) The board may not make an individual market value adjustment or classification 
230.25 	change that would benefit property if the owner or other person having control over the 
230.26 	property has refused the assessor access to inspect the property and the interior of any 
230.27 	buildings or structures as provided in section 273.20.

230.28 	EFFECTIVE DATE. This section is effective for county board of appeal and 
230.29 	equalization meetings in 2016 and thereafter.

230.30 	Sec. 29. Minnesota Statutes 2014, section 274.135, subdivision 3, is amended to read:
230.31 		Subd. 3.Proof of compliance; transfer of duties. (a) Any county that conducts 
230.32 	county boards of appeal and equalization meetings must provide proof to the commissioner 
230.33 	by December 1, 2009, and each year thereafter, February 1  that it is in compliance with the 
230.34 	requirements of subdivision 2. Beginning in 2009, This notice must also verify that there 
230.35 	was a quorum of voting members at each meeting of the board of appeal and equalization 
231.1 	in the current previous year. A county that does not comply with these requirements is 
231.2 	deemed to have transferred its board of appeal and equalization powers to the special 
231.3 	board of equalization appointed pursuant to section 274.13, subdivision 2, beginning 
231.4 	with the following year's assessment and continuing unless the powers are reinstated 
231.5 	under paragraph (c). A county that does not comply with the requirements of subdivision 
231.6 	2 and has not appointed a special board of equalization shall appoint a special board of 
231.7 	equalization before the following year's assessment.
231.8 	(b) The county shall notify the taxpayers when the board of appeal and equalization 
231.9 	for a county has been transferred to the special board of equalization under this subdivision 
231.10 	and, prior to the meeting time of the special board of equalization, the county shall make 
231.11 	available to those taxpayers a procedure for a review of the assessments, including, but 
231.12 	not limited to, open book meetings. This alternate review process must take place in 
231.13 	April and May.
231.14 	(c) A county board whose powers are transferred to the special board of equalization 
231.15 	under this subdivision may be reinstated by resolution of the county board and upon proof 
231.16 	of compliance with the requirements of subdivision 2. The resolution and proofs must 
231.17 	be provided to the commissioner by December February 1 in order to be effective for 
231.18 	the following current year's assessment.
231.19 	(d) If a person who was entitled to appeal to the county board of appeal and 
231.20 	equalization or to the county special board of equalization is not able to do so in a 
231.21 	particular year because the county board or special board did not meet the quorum and 
231.22 	training requirements in this section and section 274.13, or because the special board 
231.23 	was not appointed, that person may instead appeal to the commissioner of revenue, 
231.24 	provided that the appeal is received by the commissioner prior to August 1. The appeal 
231.25 	is not subject to either chapter 14 or section 270C.92. The commissioner must issue 
231.26 	an appropriate order to the county assessor in response to each timely appeal, either 
231.27 	upholding or changing the valuation or classification of the property. Prior to October 1 of 
231.28 	each year, the commissioner must charge and bill the county where the property is located 
231.29 	$500 for each tax parcel covered by an order issued under this paragraph in that year. 
231.30 	Amounts received by the commissioner under this paragraph must be deposited in the 
231.31 	state's general fund. If payment of a billed amount is not received by the commissioner 
231.32 	before December 1 of the year when billed, the commissioner must deduct that unpaid 
231.33 	amount from any state aid the commissioner would otherwise pay to the county under 
231.34 	chapter 477A in the next year. Late payments may either be returned to the county 
231.35 	uncashed and undeposited or may be accepted. If a late payment is accepted, the state aid 
231.36 	paid to the county under chapter 477A must be adjusted within 12 months to eliminate any 
232.1 	reduction that occurred because the payment was late. Amounts needed to make these 
232.2 	adjustments are included in the appropriation under section 477A.03, subdivision 2.

232.3 	EFFECTIVE DATE. This section is effective for county boards of appeal and 
232.4 	equalization meetings held in 2016 and thereafter.

232.5 	Sec. 30. Minnesota Statutes 2014, section 275.065, subdivision 1, is amended to read:
232.6 		Subdivision 1.Proposed levy. (a) Notwithstanding any law or charter to the 
232.7 	contrary, on or before September 30, each county and each home rule charter or statutory 
232.8 	city shall certify to the county auditor the proposed property tax levy for taxes payable in 
232.9 	the following year.
232.10 	(b) Notwithstanding any law or charter to the contrary, on or before September 15, 
232.11 	each town and each special taxing district shall adopt and certify to the county auditor a 
232.12 	proposed property tax levy for taxes payable in the following year. For towns, the final 
232.13 	certified levy shall also be considered the proposed levy.
232.14 	(c) On or before September 30, each school district that has not mutually agreed 
232.15 	with its home county to extend this date shall certify to the county auditor the proposed 
232.16 	property tax levy for taxes payable in the following year. Each school district that has 
232.17 	agreed with its home county to delay the certification of its proposed property tax levy 
232.18 	must certify its proposed property tax levy for the following year no later than October 
232.19 	7. The school district shall certify the proposed levy as:
232.20 	(1) a specific dollar amount by school district fund, broken down between 
232.21 	voter-approved and non-voter-approved levies and between referendum market value 
232.22 	and tax capacity levies; or
232.23 	(2) the maximum levy limitation certified by the commissioner of education 
232.24 	according to section 126C.48, subdivision 1.
232.25 	(d) If the board of estimate and taxation or any similar board that establishes 
232.26 	maximum tax levies for taxing jurisdictions within a first class city certifies the maximum 
232.27 	property tax levies for funds under its jurisdiction by charter to the county auditor by the 
232.28 	date specified in paragraph (a), the city shall be deemed to have certified its levies for 
232.29 	those taxing jurisdictions.
232.30 	(e) For purposes of this section, "special taxing district" means a special taxing 
232.31 	district as defined in section 275.066. Intermediate school districts that levy a tax 
232.32 	under chapter 124 or 136D, joint powers boards established under sections 123A.44 to 
232.33 	123A.446, and Common School Districts No. 323, Franconia, and No. 815, Prinsburg, are 
232.34 	also special taxing districts for purposes of this section.
233.1 	(f) At the meeting at which a taxing authority, other than a town, adopts its proposed 
233.2 	tax levy under this subdivision, the taxing authority shall announce the time and place 
233.3 	of its any subsequent regularly scheduled meetings at which the budget and levy will be 
233.4 	discussed and at which the public will be allowed to speak. The time and place of those 
233.5 	meetings must be included in the proceedings or summary of proceedings published in the 
233.6 	official newspaper of the taxing authority under section 123B.09, 375.12, or 412.191.

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

233.8 	Sec. 31. Minnesota Statutes 2014, section 275.62, subdivision 2, is amended to read:
233.9 		Subd. 2.Local governments required to report. For purposes of this section, 
233.10 	"local governmental unit" means a county, home rule charter or statutory city with a 
233.11 	population greater than 2,500, a town with a population greater than 5,000, or a home rule 
233.12 	charter or statutory city or town that receives a distribution from the taconite municipal aid 
233.13 	account in the levy year.

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

233.15 	Sec. 32. Minnesota Statutes 2014, section 278.01, subdivision 1, is amended to read:
233.16 		Subdivision 1.Determination of validity. (a) Any person having personal property, 
233.17 	or any estate, right, title, or interest in or lien upon any parcel of land, who claims that 
233.18 	such property has been partially, unfairly, or unequally assessed in comparison with other 
233.19 	property in the (1) city, or (2) county, or (3) in the case of a county containing a city of the 
233.20 	first class, the portion of the county excluding the first class city, or that the parcel has 
233.21 	been assessed at a valuation greater than its real or actual value, or that the tax levied 
233.22 	against the same is illegal, in whole or in part, or has been paid, or that the property is 
233.23 	exempt from the tax so levied, may have the validity of the claim, defense, or objection 
233.24 	determined by the district court of the county in which the tax is levied or by the Tax 
233.25 	Court by serving one copy of a petition for such determination upon the county auditor, 
233.26 	one copy on the county attorney, one copy on the county treasurer, and three copies on the 
233.27 	county assessor. The county assessor shall immediately forward one copy of the petition 
233.28 	to the appropriate governmental authority in a home rule charter or statutory city or town 
233.29 	in which the property is located if that city or town employs its own certified assessor. 
233.30 	A copy of the petition shall also be forwarded by the assessor to the school board of the 
233.31 	school district in which the property is located.
233.32 	(b) In counties where the office of county treasurer has been combined with the 
233.33 	office of county auditor, the county may elect to require the petitioner to serve the number 
234.1 	of copies as determined by the county. The county assessor shall immediately forward one 
234.2 	copy of the petition to the appropriate governmental authority in a home rule charter or 
234.3 	statutory city or town in which the property is located if that city or town employs its own 
234.4 	certified assessor. A list of petitioned properties, including the name of the petitioner, the 
234.5 	identification number of the property, and the estimated market value, shall be sent on 
234.6 	or before the first day of July by the county auditor/treasurer to the school board of the 
234.7 	school district in which the property is located.
234.8 	(c) For all counties, the petitioner must file the copies with proof of service, in the 
234.9 	office of the court administrator of the district court on or before April 30 of the year in 
234.10 	which the tax becomes payable. A petition for determination under this section may be 
234.11 	transferred by the district court to the Tax Court. An appeal may also be taken to the Tax 
234.12 	Court under chapter 271 at any time following receipt of the valuation notice that county 
234.13 	assessors or city assessors having the powers of a county assessor are required by section 
234.14 	273.121 to send to persons whose property is to be included on the assessment roll that 
234.15 	year, but prior to May 1 of the year in which the taxes are payable.

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

234.17 	Sec. 33. Minnesota Statutes 2014, section 282.01, subdivision 1a, is amended to read:
234.18 		Subd. 1a.Conveyance to public entities. (a) Upon written request from a state 
234.19 	agency or a governmental subdivision of the state, a parcel of unsold tax-forfeited land 
234.20 	must be withheld from sale or lease to others for a maximum of six months. The request 
234.21 	must be submitted to the county auditor. Upon receipt, the county auditor must withhold 
234.22 	the parcel from sale or lease to any other party for six months, and must confirm the 
234.23 	starting date of the six-month withholding period to the requesting agency or subdivision. 
234.24 	If the request is from a governmental subdivision of the state, the governmental 
234.25 	subdivision must pay the maintenance costs incurred by the county during the period the 
234.26 	parcel is withheld. The county board may approve a sale or conveyance to the requesting 
234.27 	party during the withholding period. A conveyance of the property to the requesting 
234.28 	party terminates the withholding period.
234.29 	A governmental subdivision of the state must not make, and a county auditor must 
234.30 	not act upon, a second request to withhold a parcel from sale or lease within 18 months 
234.31 	of a previous request for that parcel. A county may reject a request made under this 
234.32 	paragraph if the request is made more than 30 days after the county has given notice to the 
234.33 	requesting state agency or governmental subdivision of the state that the county intends to 
234.34 	sell or otherwise dispose of the property.
235.1 	(b) Nonconservation tax-forfeited lands may be sold by the county board, for 
235.2 	their market value as determined by the county board, to an organized or incorporated 
235.3 	governmental subdivision of the state for any public purpose for which the subdivision is 
235.4 	authorized to acquire property. When the term "market value" is used in this section, it 
235.5 	means an estimate of the full and actual market value of the parcel as determined by the 
235.6 	county board, but in making this determination, the board and the persons employed by or 
235.7 	under contract with the board in order to perform, conduct, or assist in the determination, 
235.8 	are exempt from the licensure requirements of chapter 82B.
235.9 	(c) Nonconservation tax-forfeited lands may be released from the trust in favor of 
235.10 	the taxing districts on application to sold by the county board by, for their market value as 
235.11 	determined by the county board, to a state agency for an authorized use at not less than 
235.12 	their market value as determined by the county board any public purpose for which the 
235.13 	agency is authorized to acquire property.
235.14 	(d) Nonconservation tax-forfeited lands may be sold by the county board to an 
235.15 	organized or incorporated governmental subdivision of the state or state agency for less 
235.16 	than their market value if:
235.17 	(1) the county board determines that a sale at a reduced price is in the public interest 
235.18 	because a reduced price is necessary to provide an incentive to correct the blighted 
235.19 	conditions that make the lands undesirable in the open market, or the reduced price will 
235.20 	lead to the development of affordable housing; and
235.21 	(2) the governmental subdivision or state agency has documented its specific plans 
235.22 	for correcting the blighted conditions or developing affordable housing, and the specific 
235.23 	law or laws that empower it to acquire real property in furtherance of the plans.
235.24 	If the sale under this paragraph is to a governmental subdivision of the state, the 
235.25 	commissioner of revenue must convey the property on behalf of the state by quitclaim 
235.26 	deed. If the sale under this paragraph is to a state agency, the property is released from 
235.27 	the trust in favor of the taxing districts and the commissioner of revenue must issue a 
235.28 	conveyance document that releases the property from the trust in favor of the taxing 
235.29 	districts convey the property on behalf of the state by quitclaim deed to the agency.
235.30 	(e) Nonconservation tax-forfeited land held in trust in favor of the taxing districts 
235.31 	may be conveyed by the commissioner of revenue in the name of the state to a 
235.32 	governmental subdivision for an authorized public use, if an application is submitted to the 
235.33 	commissioner which includes a statement of facts as to the use to be made of the tract and 
235.34 	the favorable recommendation of the county board. For the purposes of this paragraph, 
235.35 	"authorized public use" means a use that allows an indefinite segment of the public to 
236.1 	physically use and enjoy the property in numbers appropriate to its size and use, or is for a 
236.2 	public service facility. Authorized public uses as defined in this paragraph are limited to:
236.3 	(1) a road, or right-of-way for a road;
236.4 	(2) a park that is both available to, and accessible by, the public that contains 
236.5 	improvements such as campgrounds, playgrounds, athletic fields, trails, or shelters;
236.6 	(3) trails for walking, bicycling, snowmobiling, or other recreational purposes, along 
236.7 	with a reasonable amount of surrounding land maintained in its natural state;
236.8 	(4) transit facilities for buses, light rail transit, commuter rail or passenger rail, 
236.9 	including transit ways, park-and-ride lots, transit stations, maintenance and garage 
236.10 	facilities, and other facilities related to a public transit system;
236.11 	(5) public beaches or boat launches;
236.12 	(6) public parking;
236.13 	(7) civic recreation or conference facilities; and
236.14 	(8) public service facilities such as fire halls, police stations, lift stations, water 
236.15 	towers, sanitation facilities, water treatment facilities, and administrative offices.
236.16 	No monetary compensation or consideration is required for the conveyance, except as 
236.17 	provided in subdivision 1g, but the conveyance is subject to the conditions provided in 
236.18 	law, including, but not limited to, the reversion provisions of subdivisions 1c and 1d.
236.19 	(f) The commissioner of revenue shall convey a parcel of nonconservation 
236.20 	tax-forfeited land to a local governmental subdivision of the state by quitclaim deed 
236.21 	on behalf of the state upon the favorable recommendation of the county board if the 
236.22 	governmental subdivision has certified to the board that prior to forfeiture the subdivision 
236.23 	was entitled to the parcel under a written development agreement or instrument, but 
236.24 	the conveyance failed to occur prior to forfeiture. No compensation or consideration is 
236.25 	required for, and no conditions attach to, the conveyance.
236.26 	(g) The commissioner of revenue shall convey a parcel of nonconservation 
236.27 	tax-forfeited land to the association of a common interest community by quitclaim deed 
236.28 	upon the favorable recommendation of the county board if the association certifies to the 
236.29 	board that prior to forfeiture the association was entitled to the parcel under a written 
236.30 	agreement, but the conveyance failed to occur prior to forfeiture. No compensation or 
236.31 	consideration is required for, and no conditions attach to, the conveyance.
236.32 	(h) Conservation tax-forfeited land may be sold to a governmental subdivision of 
236.33 	the state for less than its market value for either: (1) creation or preservation of wetlands; 
236.34 	(2) drainage or storage of storm water under a storm water management plan; or (3) 
236.35 	preservation, or restoration and preservation, of the land in its natural state. The deed must 
236.36 	contain a restrictive covenant limiting the use of the land to one of these purposes for 
237.1 	30 years or until the property is reconveyed back to the state in trust. At any time, the 
237.2 	governmental subdivision may reconvey the property to the state in trust for the taxing 
237.3 	districts. The deed of reconveyance is subject to approval by the commissioner of revenue. 
237.4 	No part of a purchase price determined under this paragraph shall be refunded upon a 
237.5 	reconveyance, but the amount paid for a conveyance under this paragraph may be taken 
237.6 	into account by the county board when setting the terms of a future sale of the same 
237.7 	property to the same governmental subdivision under paragraph (b) or (d). If the lands 
237.8 	are unplatted and located outside of an incorporated municipality and the commissioner 
237.9 	of natural resources determines there is a mineral use potential, the sale is subject to the 
237.10 	approval of the commissioner of natural resources.
237.11 	(i) A park and recreation board in a city of the first class is a governmental 
237.12 	subdivision for the purposes of this section.
237.13 	(j) Tax-forfeited land held in trust in favor of the taxing districts may be conveyed 
237.14 	by the commissioner of revenue in the name of the state to a governmental subdivision for 
237.15 	a school forest under section 89.41. An application that includes a statement of facts as 
237.16 	to the use to be made of the tract and the favorable recommendation of the county board 
237.17 	and the commissioner of natural resources must be submitted to the commissioner of 
237.18 	revenue. No monetary compensation or consideration is required for the conveyance, but 
237.19 	the conveyance is subject to the conditional use and reversion provisions of subdivisions 
237.20 	1c and 1d, paragraph (e). At any time, the governmental subdivision may reconvey the 
237.21 	property back to the state in trust for the taxing districts. The deed of reconveyance is 
237.22 	subject to approval by the commissioner of revenue.

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

237.24 	Sec. 34. Minnesota Statutes 2014, section 282.01, subdivision 1d, is amended to read:
237.25 		Subd. 1d.Reverter for failure to use; conveyance to state. (a) After three years 
237.26 	from the date of any conveyance of tax-forfeited land to a governmental subdivision for 
237.27 	an authorized public use as provided in this section, regardless of when the deed for the 
237.28 	authorized public use was executed, if the governmental subdivision has failed to put the 
237.29 	land to that use, or abandons that use, the governing body of the subdivision must: (1) 
237.30 	with the approval of the county board, purchase the property for an authorized public 
237.31 	purpose at the present market value as determined by the county board, or (2) authorize 
237.32 	the proper officers to convey the land, or the part of the land not required for an authorized 
237.33 	public use, to the state of Minnesota in trust for the taxing districts. If the governing body 
237.34 	purchases the property under clause (1), the commissioner of revenue shall, upon proper 
237.35 	application submitted by the county auditor and upon the reconveyance of the land subject 
238.1 	to the conditional use deed to the state, convey the property on behalf of the state by 
238.2 	quitclaim deed to the subdivision free of a use restriction and the possibility of reversion 
238.3 	or defeasement. If the governing body decides to reconvey the property to the state under 
238.4 	this clause, the officers shall execute a deed of conveyance immediately. The conveyance 
238.5 	is subject to the approval of the commissioner and its form must be approved by the 
238.6 	attorney general. For 15 years from the date of the conveyance, there is no failure to put 
238.7 	the land to the authorized public use and no abandonment of that use if a formal plan of 
238.8 	the governmental subdivision, including, but not limited to, a comprehensive plan or land 
238.9 	use plan, shows an intended future use of the land for the authorized public use.
238.10 	(b) Property held by a governmental subdivision of the state under a conditional use 
238.11 	deed executed under this section by the commissioner of revenue on or after January 1, 
238.12 	2007, may be acquired by that governmental subdivision after 15 years from the date 
238.13 	of the conveyance if the commissioner determines upon written application from the 
238.14 	subdivision that the subdivision has in fact put the property to the authorized public use for 
238.15 	which it was conveyed, and the subdivision has made a finding that it has no current plans 
238.16 	to change the use of the lands. Prior to conveying the property, the commissioner shall 
238.17 	inquire whether the county board where the land is located objects to a conveyance of the 
238.18 	property to the subdivision without conditions and without further act by or obligation 
238.19 	of the subdivision. If the county does not object within 60 days, and the commissioner 
238.20 	makes a favorable determination, the commissioner shall issue a quitclaim deed on behalf 
238.21 	of the state unconditionally conveying the property to the governmental subdivision. For 
238.22 	purposes of this paragraph, demonstration of an intended future use for the authorized 
238.23 	public use in a formal plan of the governmental subdivision does not constitute use for 
238.24 	that authorized public use.
238.25 	(c) Property held by a governmental subdivision of the state under a conditional use 
238.26 	deed executed under this section by the commissioner of revenue before January 1, 2007, 
238.27 	is released from the use restriction and possibility of reversion on January 1, 2022, if the 
238.28 	county board records a resolution describing the land and citing this paragraph. The 
238.29 	county board may authorize the county treasurer to deduct the amount of the recording 
238.30 	fees from future settlements of property taxes to the subdivision.
238.31 	(d) Except for tax-forfeited land conveyed to establish a school forest under section 
238.32 	89.41, property conveyed under a conditional use deed executed under this section by 
238.33 	the commissioner of revenue, regardless of when the deed for the authorized public use 
238.34 	was executed, is released from the use restriction and reverter, and any use restriction or 
238.35 	reverter for which no declaration of reversion has been recorded with the county recorder 
238.36 	or registrar of titles, as appropriate, is nullified on the later of: (1) January 1, 2015; (2) 30 
239.1 	years from the date the deed was acknowledged; or (3) final resolution of an appeal to 
239.2 	district court under subdivision 1e, if a lis pendens related to the appeal is recorded in the 
239.3 	office of the county recorder or registrar of titles, as appropriate, prior to January 1, 2015.
239.4 	(e) Notwithstanding paragraphs (a) to (d), tax-forfeited land conveyed to establish a 
239.5 	school forest under section 89.41 is subject to a perpetual conditional use deed and reverter. 
239.6 	The property reverts to the state in trust for the taxing districts by operation of law if the 
239.7 	commissioner of natural resources determines and reports to the commissioner of revenue 
239.8 	under section 89.41, subdivision 3, that the governmental subdivision has failed to use the 
239.9 	land for school forest purposes for three consecutive years. The commissioner of revenue 
239.10 	shall record a declaration of reversion for land that has reverted under this paragraph.

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

239.12 	Sec. 35. Minnesota Statutes 2014, section 477A.013, is amended by adding a 
239.13 	subdivision to read:
239.14 		Subd. 14.Communication by electronic mail. Prior to receiving aid pursuant to 
239.15 	this section, a city must register an official electronic mail address with the commissioner, 
239.16 	which the commissioner may use as an exclusive means to communicate with the city. 

239.17 	EFFECTIVE DATE. This section is effective for aids payable in 2016 and thereafter.

239.18 	Sec. 36. Minnesota Statutes 2014, section 477A.19, is amended by adding a 
239.19 	subdivision to read:
239.20 		Subd. 3a.Certification. On or before June 1 of each year, the commissioner of 
239.21 	natural resources shall certify to the commissioner of revenue the number of watercraft 
239.22 	launches and the number of watercraft trailer parking spaces in each county.

239.23 	EFFECTIVE DATE. This section is effective for transition aid payable in 2016 
239.24 	and thereafter.

239.25 	Sec. 37. Minnesota Statutes 2014, section 477A.19, is amended by adding a 
239.26 	subdivision to read:
239.27 		Subd. 3b.Certification. On or before June 1 of each year, the commissioner of 
239.28 	natural resources shall certify to the commissioner of revenue the counties that complied 
239.29 	with the requirements of subdivision 3 the prior year and are eligible to receive aid 
239.30 	under this section.

240.1 	EFFECTIVE DATE. This section is effective for transition aid payable in 2016 
240.2 	and thereafter.

240.3 	Sec. 38. Minnesota Statutes 2014, section 559.202, subdivision 2, is amended to read:
240.4 		Subd. 2.Exception. This section does not apply to sales made under chapter 282 or 
240.5 	if the purchaser is represented throughout the transaction by either:
240.6 	(1) a person licensed to practice law in this state; or
240.7 	(2) a person licensed as a real estate broker or salesperson under chapter 82, 
240.8 	provided that the representation does not create a dual agency, as that term is defined 
240.9 	in section 82.55, subdivision 6.

240.10 	EFFECTIVE DATE. This section is effective for sales of tax-forfeited land 
240.11 	occurring after the day following final enactment.

240.12 	Sec. 39. Laws 2014, chapter 308, article 1, section 14, subdivision 2, is amended to read:
240.13 		Subd. 2.Payment of supplemental credit. (a) The commissioner must pay 
240.14 	supplemental credit amounts to each qualifying taxpayer by October 15, 2014.
240.15 	(b) If the commissioner cannot locate the qualifying taxpayer by October 15, 2016, 
240.16 	or if a qualifying taxpayer to whom a warrant was issued does not cash that warrant within 
240.17 	two years from the date the warrant was issued, the right to the credit shall lapse and the 
240.18 	warrant shall be deposited in the general fund.

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

240.20 	Sec. 40.  REPEALER. 
 240.21 	Minnesota Statutes 2014, sections 273.111, subdivision 9a; and 281.22, are repealed.

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

240.23 	ARTICLE 16
240.24 	DEPARTMENT POLICY AND TECHNICAL PROVISIONS - MISCELLANEOUS

240.25 	Section 1. Minnesota Statutes 2014, section 270.82, subdivision 1, is amended to read:
240.26 		Subdivision 1.Annual report required. Every railroad company doing business 
240.27 	in Minnesota shall annually file with the commissioner on or before March 31 a report 
240.28 	under oath setting forth the information prescribed by the commissioner to enable the 
240.29 	commissioner to make the valuation and equalization required by sections 270.80 to 
240.30 	270.87. The commissioner shall prescribe the content, format, and manner of the report 
241.1 	pursuant to section 270C.30, except that a "law administered by the commissioner" 
241.2 	includes the property tax laws. If a report is made by electronic means, the taxpayer's 
241.3 	signature is defined pursuant to section 270C.304, except that a "law administered by the 
241.4 	commissioner" includes the property tax laws.

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

241.6 	Sec. 2. Minnesota Statutes 2014, section 270A.03, subdivision 5, is amended to read:
241.7 		Subd. 5.Debt. (a) "Debt" means a legal obligation of a natural person to pay a fixed 
241.8 	and certain amount of money, which equals or exceeds $25 and which is due and payable 
241.9 	to a claimant agency. The term includes criminal fines imposed under section 609.10 or 
241.10 	609.125, fines imposed for petty misdemeanors as defined in section 609.02, subdivision 
241.11 	4a, and restitution. A debt may arise under a contractual or statutory obligation, a court 
241.12 	order, or other legal obligation, but need not have been reduced to judgment.
241.13 	A debt includes any legal obligation of a current recipient of assistance which is 
241.14 	based on overpayment of an assistance grant where that payment is based on a client 
241.15 	waiver or an administrative or judicial finding of an intentional program violation; 
241.16 	or where the debt is owed to a program wherein the debtor is not a client at the time 
241.17 	notification is provided to initiate recovery under this chapter and the debtor is not a 
241.18 	current recipient of food support, transitional child care, or transitional medical assistance.
241.19 	(b) A debt does not include any legal obligation to pay a claimant agency for medical 
241.20 	care, including hospitalization if the income of the debtor at the time when the medical 
241.21 	care was rendered does not exceed the following amount:
241.22 	(1) for an unmarried debtor, an income of $8,800 $12,360 or less;
241.23 	(2) for a debtor with one dependent, an income of $11,270 $15,830 or less;
241.24 	(3) for a debtor with two dependents, an income of $13,330 $18,730 or less;
241.25 	(4) for a debtor with three dependents, an income of $15,120 $21,240 or less;
241.26 	(5) for a debtor with four dependents, an income of $15,950 $22,410 or less; and
241.27 	(6) for a debtor with five or more dependents, an income of $16,630 $23,360 or less.
241.28 	For purposes of this paragraph, "debtor" means the individual whose income, 
241.29 	together with the income of the individual's spouse if domiciled in the same household, 
241.30 	brings the individual within the income provisions of this paragraph. For purposes of this 
241.31 	paragraph, a spouse domiciled in the same household shall be considered a dependent.
241.32 	(c) The commissioner shall adjust the income amounts in paragraph (b) by the 
241.33 	percentage determined pursuant to the provisions of section 1(f) of the Internal Revenue 
241.34 	Code, except that in section 1(f)(3)(B) the word "1999 2013" shall be substituted for 
241.35 	the word "1992." For 2001 2015, the commissioner shall then determine the percent 
242.1 	change from the 12 months ending on August 31, 1999 2013, to the 12 months ending on 
242.2 	August 31, 2000 2014, and in each subsequent year, from the 12 months ending on August 
242.3 	31, 1999 2013, to the 12 months ending on August 31 of the year preceding the taxable 
242.4 	year. The determination of the commissioner pursuant to this subdivision shall not be 
242.5 	considered a "rule" and shall not be subject to the Administrative Procedure Act contained 
242.6 	in chapter 14. The income amount as adjusted must be rounded to the nearest $10 amount. 
242.7 	If the amount ends in $5, the amount is rounded up to the nearest $10 amount.
242.8 	(d) Debt also includes an agreement to pay a MinnesotaCare premium, regardless of 
242.9 	the dollar amount of the premium authorized under section 256L.15, subdivision 1a.

242.10 	EFFECTIVE DATE. The section is effective retroactively for debts incurred after 
242.11 	December 31, 2013.

242.12 	Sec. 3. Minnesota Statutes 2014, section 270B.14, subdivision 1, is amended to read:
242.13 		Subdivision 1.Disclosure to commissioner of human services. (a) On the request 
242.14 	of the commissioner of human services, the commissioner shall disclose return information 
242.15 	regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A, to 
242.16 	the extent provided in paragraph (b) and for the purposes set forth in paragraph (c).
242.17 	(b) Data that may be disclosed are limited to data relating to the identity, 
242.18 	whereabouts, employment, income, and property of a person owing or alleged to be owing 
242.19 	an obligation of child support.
242.20 	(c) The commissioner of human services may request data only for the purposes of 
242.21 	carrying out the child support enforcement program and to assist in the location of parents 
242.22 	who have, or appear to have, deserted their children. Data received may be used only 
242.23 	as set forth in section 256.978.
242.24 	(d) The commissioner shall provide the records and information necessary to 
242.25 	administer the supplemental housing allowance to the commissioner of human services.
242.26 	(e) At the request of the commissioner of human services, the commissioner of 
242.27 	revenue shall electronically match the Social Security numbers and names of participants 
242.28 	in the telephone assistance plan operated under sections 237.69 to 237.71, with those of 
242.29 	property tax refund filers, and determine whether each participant's household income is 
242.30 	within the eligibility standards for the telephone assistance plan.
242.31 	(f) The commissioner may provide records and information collected under sections 
242.32 	295.50 to 295.59 to the commissioner of human services for purposes of the Medicaid 
242.33 	Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law 
242.34 	102-234. Upon the written agreement by the United States Department of Health and 
242.35 	Human Services to maintain the confidentiality of the data, the commissioner may provide 
243.1 	records and information collected under sections 295.50 to 295.59 to the Centers for 
243.2 	Medicare and Medicaid Services section of the United States Department of Health and 
243.3 	Human Services for purposes of meeting federal reporting requirements.
243.4 	(g) The commissioner may provide records and information to the commissioner of 
243.5 	human services as necessary to administer the early refund of refundable tax credits.
243.6 	(h) The commissioner may disclose information to the commissioner of human 
243.7 	services as necessary to verify income for welfare income verification for eligibility and 
243.8 	premium payment under the MinnesotaCare program, under section 256L.05, subdivision 
243.9 	2, as well as the medical assistance program under section 256B.
243.10 	(i) The commissioner may disclose information to the commissioner of human 
243.11 	services necessary to verify whether applicants or recipients for the Minnesota family 
243.12 	investment program, general assistance, food support, Minnesota supplemental aid 
243.13 	program, and child care assistance have claimed refundable tax credits under chapter 290 
243.14 	and the property tax refund under chapter 290A, and the amounts of the credits.
243.15 	(j) The commissioner may disclose information to the commissioner of human 
243.16 	services necessary to verify income for purposes of calculating parental contribution 
243.17 	amounts under section 252.27, subdivision 2a.

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

243.19 	Sec. 4. Minnesota Statutes 2014, section 270C.30, is amended to read:
243.20 	270C.30 RETURNS AND OTHER DOCUMENTS; FORMAT; FURNISHING.
243.21 	Except as otherwise provided by law, the commissioner shall prescribe the content 
243.22 	and, format, and manner of all returns and other forms required to be filed under a law 
243.23 	administered by the commissioner, and may furnish them subject to charge on application.

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

243.25 	Sec. 5. Minnesota Statutes 2014, section 270C.33, subdivision 5, is amended to read:
243.26 		Subd. 5.Prohibition against collection during appeal period of an order. No 
243.27 	collection action can be taken on an order of assessment, or any other order imposing a 
243.28 	liability, including the filing of liens under section 270C.63, and no late payment penalties 
243.29 	may be imposed when a return has been filed for the tax type and period upon which the 
243.30 	order is based, during the appeal period of an order. The appeal period of an order ends: 
243.31 	(1) 60 days after the order has been mailed to the taxpayer notice date designated by the 
243.32 	commissioner on the order; (2) if an administrative appeal is filed under section 270C.35, 
243.33 	60 days after the notice date designated by the commissioner on the written determination 
244.1 	of the administrative appeal; (3) if an appeal to Tax Court is filed under chapter 271, when 
244.2 	the decision of the Tax Court is made; or (4) if an appeal to Tax Court is filed and the 
244.3 	appeal is based upon a constitutional challenge to the tax, 60 days after final determination 
244.4 	of the appeal. This subdivision does not apply to a jeopardy assessment under section 
244.5 	270C.36, or a jeopardy collection under section 270C.36.

244.6 	EFFECTIVE DATE. This section is effective for orders dated after September 
244.7 	30, 2015.

244.8 	Sec. 6. Minnesota Statutes 2014, section 270C.33, subdivision 8, is amended to read:
244.9 		Subd. 8.Sufficiency of notice. An assessment of tax made by the commissioner, 
244.10 	sent postage prepaid by United States mail to the taxpayer at the taxpayer's last known 
244.11 	address, or sent by electronic mail to the taxpayer's last known electronic mailing address 
244.12 	as provided for in section 325L.08, is sufficient even if the taxpayer is deceased or is 
244.13 	under a legal disability, or, in the case of a corporation, has terminated its existence, unless 
244.14 	the commissioner has been provided with a new address by a party authorized to receive 
244.15 	notices of assessment. Notice of an assessment is sufficient if it is sent on or before the 
244.16 	notice date designated by the commissioner on the assessment.

244.17 	EFFECTIVE DATE. This section is effective for assessments dated after 
244.18 	September 30, 2015.

244.19 	Sec. 7. Minnesota Statutes 2014, section 270C.34, subdivision 2, is amended to read:
244.20 		Subd. 2.Procedure. (a) A request for abatement of penalty under subdivision 1 or 
244.21 	section 289A.60, subdivision 4, or a request for abatement of interest or additional tax 
244.22 	charge, must be filed with the commissioner within 60 days of the notice date of the notice 
244.23 	was mailed to the taxpayer's last known address, stating that a penalty has been imposed 
244.24 	or additional tax charge. For purposes of this section, the term "notice date" means the 
244.25 	notice date designated by the commissioner on the order or other notice that a penalty or 
244.26 	additional tax charge has been imposed.
244.27 	(b) If the commissioner issues an order denying a request for abatement of penalty, 
244.28 	interest, or additional tax charge, the taxpayer may file an administrative appeal as 
244.29 	provided in section 270C.35 or appeal to Tax Court as provided in section 271.06.
244.30 	(c) If the commissioner does not issue an order on the abatement request within 
244.31 	60 days from the date the request is received, the taxpayer may appeal to Tax Court as 
244.32 	provided in section 271.06.

245.1 	EFFECTIVE DATE. This section is effective for orders and notices dated after 
245.2 	September 30, 2015.

245.3 	Sec. 8. Minnesota Statutes 2014, section 270C.347, subdivision 1, is amended to read:
245.4 		Subdivision 1.Checks and warrants, authority to reissue. Notwithstanding any 
245.5 	other provision of law, the commissioner may, based on a showing of reasonable cause, 
245.6 	reissue an uncashed rebate, supplemental agricultural credit, or property tax refund warrant 
245.7 	or check that has lapsed under any provision of law relating to rebates or under section 
245.8 	290A.18, subdivision 2. The authority to reissue warrants or checks under this subdivision 
245.9 	is limited to five years after the date of issuance of the original warrant or check.

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

245.11 	Sec. 9. Minnesota Statutes 2014, section 270C.35, subdivision 3, is amended to read:
245.12 		Subd. 3.Notice date. For purposes of this section, the term "notice date" means the 
245.13 	date of designated by the commissioner on the order adjusting the tax or order denying a 
245.14 	request for abatement, or, in the case of a denied refund, the notice date of designated by 
245.15 	the commissioner on the notice of denial.

245.16 	EFFECTIVE DATE. This section is effective for orders and notices dated after 
245.17 	September 30, 2015.

245.18 	Sec. 10. Minnesota Statutes 2014, section 270C.35, is amended by adding a 
245.19 	subdivision to read:
245.20 		Subd. 11.Dismissal of administrative appeal. If a taxpayer files an administrative 
245.21 	appeal for an order of the commissioner and also files an appeal to the Tax Court for 
245.22 	that same order of the commissioner, the administrative appeal is dismissed and the 
245.23 	commissioner is no longer required to make a determination of appeal under subdivision 6.

245.24 	EFFECTIVE DATE. This section is effective for all administrative appeals filed 
245.25 	after June 30, 2015.

245.26 	Sec. 11. Minnesota Statutes 2014, section 270C.38, subdivision 1, is amended to read:
245.27 		Subdivision 1.Sufficient notice. (a) If no method of notification of a written 
245.28 	determination or action of the commissioner is otherwise specifically provided for by 
245.29 	law, notice of the determination or action sent postage prepaid by United States mail to 
245.30 	the taxpayer or other person affected by the determination or action at the taxpayer's 
245.31 	or person's last known address, is sufficient. If the taxpayer or person being notified is 
246.1 	deceased or is under a legal disability, or, in the case of a corporation being notified that 
246.2 	has terminated its existence, notice to the last known address of the taxpayer, person, or 
246.3 	corporation is sufficient, unless the department has been provided with a new address by a 
246.4 	party authorized to receive notices from the commissioner.
246.5 	(b) If a taxpayer or other person agrees to accept notification by electronic means, 
246.6 	notice of a determination or action of the commissioner sent by electronic mail to the 
246.7 	taxpayer's or person's last known electronic mailing address as provided for in section 
246.8 	325L.08 is sufficient.
246.9 	(c) Notice of a determination or action of the commissioner is sufficient if it is sent 
246.10 	on or before the notice date designated by the commissioner on the notice.

246.11 	EFFECTIVE DATE. This section is effective for notices dated after September 
246.12 	30, 2015.

246.13 	Sec. 12. Minnesota Statutes 2014, section 270C.445, is amended by adding a 
246.14 	subdivision to read:
246.15 		Subd. 9.Enforcement; limitations. (a) Notwithstanding any other law, the 
246.16 	imposition of a penalty or any other action against a tax return preparer authorized by 
246.17 	subdivision 6 with respect to a return may be taken by the commissioner within the period 
246.18 	provided by section 289A.38 to assess tax on that return.
246.19 	(b) Imposition of a penalty or other action against a tax return preparer authorized 
246.20 	by subdivision 6 other than with respect to a return must be taken by the commissioner 
246.21 	within five years of the violation of statute.

246.22 	EFFECTIVE DATE. This section is effective for tax preparation services provided 
246.23 	after the day following final enactment.

246.24 	Sec. 13. Minnesota Statutes 2014, section 270C.446, subdivision 5, is amended to read:
246.25 		Subd. 5.Removal from list. The commissioner shall remove the name of a tax 
246.26 	preparer from the list of tax preparers published under this section:
246.27 	(1) when the commissioner determines that the name was included on the list in error;
246.28 	(2) within 90 days three years after the preparer has demonstrated to the commissioner 
246.29 	that the preparer fully paid all fines or penalties imposed, served any suspension, satisfied 
246.30 	any sentence imposed, successfully completed any probationary period imposed, and 
246.31 	successfully completed any remedial actions required by the commissioner, the State 
246.32 	Board of Accountancy, or the Lawyers Board of Professional Responsibility; or
246.33 	(3) when the commissioner has been notified that the tax preparer is deceased.

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

247.2 	Sec. 14. Minnesota Statutes 2014, section 270C.72, subdivision 4, is amended to read:
247.3 		Subd. 4.Licensing authority; duties. All licensing authorities must require 
247.4 	the applicant to provide the applicant's Social Security number or individual taxpayer 
247.5 	identification number and Minnesota business identification number, as applicable, on 
247.6 	all license applications. Upon request of the commissioner, the licensing authority 
247.7 	must provide the commissioner with a list of all applicants, including the name, 
247.8 	address, business name and address, and Social Security number, or individual taxpayer 
247.9 	identification number and business identification number, as applicable, of each applicant. 
247.10 	The commissioner may request from a licensing authority a list of the applicants no more 
247.11 	than once each calendar year.

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

247.13 	Sec. 15. Minnesota Statutes 2014, section 271.06, subdivision 2, is amended to read:
247.14 		Subd. 2.Time; notice; intervention. Except as otherwise provided by law, within 
247.15 	60 days after the notice of the making and filing date of an order of the commissioner of 
247.16 	revenue, the appellant, or the appellant's attorney, shall serve a notice of appeal upon 
247.17 	the commissioner and file the original, with proof of such service, with the Tax Court 
247.18 	administrator or with the court administrator of district court acting as court administrator 
247.19 	of the Tax Court; provided, that the Tax Court, for cause shown, may by written order 
247.20 	extend the time for appealing for an additional period not exceeding 30 days. For purposes 
247.21 	of this section, the term "notice date" means the notice date designated by the commissioner 
247.22 	on the order. The notice of appeal shall be in the form prescribed by the Tax Court. Within 
247.23 	five days after receipt, the commissioner shall transmit a copy of the notice of appeal to 
247.24 	the attorney general. The attorney general shall represent the commissioner, if requested, 
247.25 	upon all such appeals except in cases where the attorney general has appealed in behalf of 
247.26 	the state, or in other cases where the attorney general deems it against the interests of the 
247.27 	state to represent the commissioner, in which event the attorney general may intervene or 
247.28 	be substituted as an appellant in behalf of the state at any stage of the proceedings.
247.29 	Upon a final determination of any other matter over which the court is granted 
247.30 	jurisdiction under section 271.01, subdivision 5, the taxpayer or the taxpayer's attorney 
247.31 	shall file a petition or notice of appeal as provided by law with the court administrator of 
247.32 	district court, acting in the capacity of court administrator of the Tax Court, with proof of 
247.33 	service of the petition or notice of appeal as required by law and within the time required 
247.34 	by law. As used in this subdivision, "final determination" includes a notice of assessment 
248.1 	and equalization for the year in question received from the local assessor, an order of the 
248.2 	local board of equalization, or an order of a county board of equalization.
248.3 	The Tax Court shall prescribe a filing system so that the notice of appeal or petition 
248.4 	filed with the district court administrator acting as court administrator of the Tax Court is 
248.5 	forwarded to the Tax Court administrator. In the case of an appeal or a petition concerning 
248.6 	property valuation for which the assessor, a local board of equalization, a county board of 
248.7 	equalization or the commissioner of revenue has issued an order, the officer issuing the 
248.8 	order shall be notified of the filing of the appeal. The notice of appeal or petition shall be 
248.9 	in the form prescribed by the Tax Court.

248.10 	EFFECTIVE DATE. This section is effective for orders dated after September 
248.11 	30, 2015.

248.12 	Sec. 16. Minnesota Statutes 2014, section 271.06, subdivision 7, is amended to read:
248.13 		Subd. 7.Rules. Except as provided in section 278.05, subdivision 6, the Rules 
248.14 	of Evidence and Civil Procedure for the district court of Minnesota shall govern the 
248.15 	procedures in the Tax Court, where practicable. The Rules of Civil Procedure do not apply 
248.16 	to alter the 60-day period of time to file a notice of appeal provided in subdivision 2. The 
248.17 	Tax Court may adopt rules under chapter 14. The rules in effect on January 1, 1989, 
248.18 	apply until superseded.

248.19 	EFFECTIVE DATE. This section is effective for orders dated after September 
248.20 	30, 2015.

248.21 	Sec. 17. Minnesota Statutes 2014, section 272.02, subdivision 10, is amended to read:
248.22 		Subd. 10.Personal property used for pollution control. Personal property used 
248.23 	primarily for the abatement and control of air, water, or land pollution is exempt to the 
248.24 	extent that it is so used, and real property is exempt if it is used primarily for abatement 
248.25 	and control of air, water, or land pollution as part of an agricultural operation, as a part 
248.26 	of a centralized treatment and recovery facility operating under a permit issued by the 
248.27 	Minnesota Pollution Control Agency pursuant to chapters 115 and 116 and Minnesota 
248.28 	Rules, parts 7001.0500 to 7001.0730, and 7045.0020 to 7045.1260, as a wastewater 
248.29 	treatment facility and for the treatment, recovery, and stabilization of metals, oils, 
248.30 	chemicals, water, sludges, or inorganic materials from hazardous industrial wastes, or as 
248.31 	part of an electric generation system. For purposes of this subdivision, personal property 
248.32 	includes ponderous machinery and equipment used in a business or production activity 
248.33 	that at common law is considered real property.
249.1 	Any taxpayer requesting exemption of all or a portion of any real property or any 
249.2 	equipment or device, or part thereof, operated primarily for the control or abatement of air, 
249.3 	water, or land pollution shall file an application with the commissioner of revenue. The 
249.4 	commissioner shall develop an electronic means to notify interested parties when electric 
249.5 	power generation facilities have filed an application. The commissioner shall prescribe 
249.6 	the content, format, and manner of the application pursuant to section 270C.30, except 
249.7 	that a "law administered by the commissioner" includes the property tax laws, and if an 
249.8 	application is made by electronic means, the taxpayer's signature is defined pursuant to 
249.9 	section 270C.304, except that a "law administered by the commissioner" includes the 
249.10 	property tax laws. The Minnesota Pollution Control Agency shall upon request of the 
249.11 	commissioner furnish information and advice to the commissioner.
249.12 	The information and advice furnished by the Minnesota Pollution Control 
249.13 	Agency must include statements as to whether the equipment, device, or real property 
249.14 	meets a standard, rule, criteria, guideline, policy, or order of the Minnesota Pollution 
249.15 	Control Agency, and whether the equipment, device, or real property is installed or 
249.16 	operated in accordance with it. On determining that property qualifies for exemption, 
249.17 	the commissioner shall issue an order exempting the property from taxation. The 
249.18 	commissioner shall develop an electronic means to notify interested parties when 
249.19 	the commissioner has issued an order exempting property from taxation under this 
249.20 	subdivision. The equipment, device, or real property shall continue to be exempt from 
249.21 	taxation as long as the order issued by the commissioner remains in effect.

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

249.23 	Sec. 18. Minnesota Statutes 2014, section 272.0211, subdivision 1, is amended to read:
249.24 		Subdivision 1.Efficiency determination and certification. An owner or operator 
249.25 	of a new or existing electric power generation facility, excluding wind energy conversion 
249.26 	systems, may apply to the commissioner of revenue for a market value exclusion on the 
249.27 	property as provided for in this section. This exclusion shall apply only to the market 
249.28 	value of the equipment of the facility, and shall not apply to the structures and the land 
249.29 	upon which the facility is located. The commissioner of revenue shall prescribe the forms 
249.30 	content, format, manner, and procedures for this application pursuant to section 270C.30, 
249.31 	except that a "law administered by the commissioner" includes the property tax laws. If 
249.32 	an application is made by electronic means, the taxpayer's signature is defined pursuant 
249.33 	to section 270C.304, except that a "law administered by the commissioner" includes the 
249.34 	property tax laws. Upon receiving the application, the commissioner of revenue shall: (1) 
249.35 	request the commissioner of commerce to make a determination of the efficiency of the 
250.1 	applicant's electric power generation facility; and (2) shall develop an electronic means to 
250.2 	notify interested parties when electric power generation facilities have filed an application. 
250.3 	The commissioner of commerce shall calculate efficiency as the ratio of useful energy 
250.4 	outputs to energy inputs, expressed as a percentage, based on the performance of the 
250.5 	facility's equipment during normal full load operation. The commissioner must include in 
250.6 	this formula the energy used in any on-site preparation of materials necessary to convert 
250.7 	the materials into the fuel used to generate electricity, such as a process to gasify petroleum 
250.8 	coke. The commissioner shall use the Higher Heating Value (HHV) for all substances in 
250.9 	the commissioner's efficiency calculations, except for wood for fuel in a biomass-eligible 
250.10 	project under section 216B.2424; for these instances, the commissioner shall adjust the 
250.11 	heating value to allow for energy consumed for evaporation of the moisture in the wood. 
250.12 	The applicant shall provide the commissioner of commerce with whatever information the 
250.13 	commissioner deems necessary to make the determination. Within 30 days of the receipt 
250.14 	of the necessary information, the commissioner of commerce shall certify the findings of 
250.15 	the efficiency determination to the commissioner of revenue and to the applicant. The 
250.16 	commissioner of commerce shall determine the efficiency of the facility and certify the 
250.17 	findings of that determination to the commissioner of revenue every two years thereafter 
250.18 	from the date of the original certification.

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

250.20 	Sec. 19. Minnesota Statutes 2014, section 272.025, subdivision 1, is amended to read:
250.21 		Subdivision 1.Statement of exemption. (a) Except in the case of property owned 
250.22 	by the state of Minnesota or any political subdivision thereof, and property exempt from 
250.23 	taxation under section 272.02, subdivisions 9, 10, 13, 15, 18, 20, and 22 to 25, and at 
250.24 	the times provided in subdivision 3, a taxpayer claiming an exemption from taxation 
250.25 	on property described in section 272.02, subdivisions 2 to 33, must file a statement of 
250.26 	exemption with the assessor of the assessment district in which the property is located.
250.27 	(b) A taxpayer claiming an exemption from taxation on property described in section 
250.28 	272.02, subdivision 10, must file a statement of exemption with the commissioner of 
250.29 	revenue, on or before February 15 of each year for which the taxpayer claims an exemption.
250.30 	(c) In case of sickness, absence or other disability or for good cause, the assessor 
250.31 	or the commissioner may extend the time for filing the statement of exemption for a 
250.32 	period not to exceed 60 days.
250.33 	(d) The commissioner of revenue shall prescribe the form and contents content, 
250.34 	format, and manner of the statement of exemption pursuant to section 270C.30, except 
250.35 	that a "law administered by the commissioner" includes the property tax laws.
251.1 	(e) If a statement is made by electronic means, the taxpayer's signature is defined 
251.2 	pursuant to section 270C.304, except that a "law administered by the commissioner" 
251.3 	includes the property tax laws.

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

251.5 	Sec. 20. Minnesota Statutes 2014, section 272.029, subdivision 4, is amended to read:
251.6 		Subd. 4.Reports. (a) An owner of a wind energy conversion system subject to tax 
251.7 	under subdivision 3 shall file a report with the commissioner of revenue annually on or 
251.8 	before February 1 detailing the amount of electricity in kilowatt-hours that was produced 
251.9 	by the wind energy conversion system for the previous calendar year. The commissioner 
251.10 	shall prescribe the form content, format, and manner of the report pursuant to section 
251.11 	270C.30, except that a "law administered by the commissioner" includes the property tax 
251.12 	laws. The report must contain the information required by the commissioner to determine 
251.13 	the tax due to each county under this section for the current year. If an owner of a wind 
251.14 	energy conversion system subject to taxation under this section fails to file the report 
251.15 	by the due date, the commissioner of revenue shall determine the tax based upon the 
251.16 	nameplate capacity of the system multiplied by a capacity factor of 60 percent.
251.17 	(b) If a report is made by electronic means, the taxpayer's signature is defined 
251.18 	pursuant to section 270C.304, except that a "law administered by the commissioner" 
251.19 	includes the property tax laws.
251.20 	(b) (c) On or before February 28, the commissioner of revenue shall notify the owner 
251.21 	of the wind energy conversion systems of the tax due to each county for the current year 
251.22 	and shall certify to the county auditor of each county in which the systems are located the 
251.23 	tax due from each owner for the current year.

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

251.25 	Sec. 21. Minnesota Statutes 2014, section 272.0295, subdivision 4, is amended to read:
251.26 		Subd. 4.Reports. An owner of a solar energy generating system subject to tax 
251.27 	under this section shall file a report with the commissioner of revenue annually on or 
251.28 	before January 15 detailing the amount of electricity in megawatt-hours that was produced 
251.29 	by the system in the previous calendar year. The commissioner shall prescribe the form 
251.30 	content, format, and manner of the report pursuant to section 270C.30. The report must 
251.31 	contain the information required by the commissioner to determine the tax due to each 
251.32 	county under this section for the current year. If an owner of a solar energy generating 
251.33 	system subject to taxation under this section fails to file the report by the due date, the 
252.1 	commissioner of revenue shall determine the tax based upon the nameplate capacity of 
252.2 	the system multiplied by a capacity factor of 30 percent.

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

252.4 	Sec. 22. Minnesota Statutes 2014, section 272.115, subdivision 2, is amended to read:
252.5 		Subd. 2.Form; information required. The certificate of value shall require 
252.6 	such facts and information as may be determined by the commissioner to be reasonably 
252.7 	necessary in the administration of the state education aid formulas. The form 
252.8 	commissioner shall prescribe the content, format, and manner of the certificate of value 
252.9 	shall be prescribed by the Department of Revenue which shall provide an adequate 
252.10 	supply of forms to each county auditor pursuant to section 270C.30, except that a "law 
252.11 	administered by the commissioner" includes the property tax laws.

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

252.13 	Sec. 23. Minnesota Statutes 2014, section 273.124, subdivision 13, is amended to read:
252.14 		Subd. 13.Homestead application. (a) A person who meets the homestead 
252.15 	requirements under subdivision 1 must file a homestead application with the county 
252.16 	assessor to initially obtain homestead classification.
252.17 	(b) The format and contents of a uniform homestead application shall be prescribed 
252.18 	by the commissioner of revenue. The commissioner shall prescribe the content, format, 
252.19 	and manner of the homestead application required to be filed under this chapter pursuant 
252.20 	to section 270C.30. The application must clearly inform the taxpayer that this application 
252.21 	must be signed by all owners who occupy the property or by the qualifying relative and 
252.22 	returned to the county assessor in order for the property to receive homestead treatment.
252.23 	(c) Every property owner applying for homestead classification must furnish to the 
252.24 	county assessor the Social Security number of each occupant who is listed as an owner 
252.25 	of the property on the deed of record, the name and address of each owner who does not 
252.26 	occupy the property, and the name and Social Security number of each owner's spouse who 
252.27 	occupies the property. The application must be signed by each owner who occupies the 
252.28 	property and by each owner's spouse who occupies the property, or, in the case of property 
252.29 	that qualifies as a homestead under subdivision 1, paragraph (c), by the qualifying relative.
252.30 	If a property owner occupies a homestead, the property owner's spouse may not 
252.31 	claim another property as a homestead unless the property owner and the property owner's 
252.32 	spouse file with the assessor an affidavit or other proof required by the assessor stating that 
252.33 	the property qualifies as a homestead under subdivision 1, paragraph (e).
253.1 	Owners or spouses occupying residences owned by their spouses and previously 
253.2 	occupied with the other spouse, either of whom fail to include the other spouse's name 
253.3 	and Social Security number on the homestead application or provide the affidavits or 
253.4 	other proof requested, will be deemed to have elected to receive only partial homestead 
253.5 	treatment of their residence. The remainder of the residence will be classified as 
253.6 	nonhomestead residential. When an owner or spouse's name and Social Security number 
253.7 	appear on homestead applications for two separate residences and only one application is 
253.8 	signed, the owner or spouse will be deemed to have elected to homestead the residence for 
253.9 	which the application was signed.
253.10 	(d) If residential real estate is occupied and used for purposes of a homestead by a 
253.11 	relative of the owner and qualifies for a homestead under subdivision 1, paragraph (c), in 
253.12 	order for the property to receive homestead status, a homestead application must be filed 
253.13 	with the assessor. The Social Security number of each relative and spouse of a relative 
253.14 	occupying the property shall be required on the homestead application filed under this 
253.15 	subdivision. If a different relative of the owner subsequently occupies the property, the 
253.16 	owner of the property must notify the assessor within 30 days of the change in occupancy. 
253.17 	The Social Security number of a relative or relative's spouse occupying the property 
253.18 	is private data on individuals as defined by section 13.02, subdivision 12, but may be 
253.19 	disclosed to the commissioner of revenue, or, for the purposes of proceeding under the 
253.20 	Revenue Recapture Act to recover personal property taxes owing, to the county treasurer.
253.21 	(e) The homestead application shall also notify the property owners that if the 
253.22 	property is granted homestead status for any assessment year, that same property shall 
253.23 	remain classified as homestead until the property is sold or transferred to another person, 
253.24 	or the owners, the spouse of the owner, or the relatives no longer use the property as their 
253.25 	homestead. Upon the sale or transfer of the homestead property, a certificate of value must 
253.26 	be timely filed with the county auditor as provided under section 272.115. Failure to 
253.27 	notify the assessor within 30 days that the property has been sold, transferred, or that the 
253.28 	owner, the spouse of the owner, or the relative is no longer occupying the property as a 
253.29 	homestead, shall result in the penalty provided under this subdivision and the property 
253.30 	will lose its current homestead status.
253.31 	(f) If a homestead application has not been filed with the county by December 15, 
253.32 	the assessor shall classify the property as nonhomestead for the current assessment year 
253.33 	for taxes payable in the following year, provided that the owner may be entitled to receive 
253.34 	the homestead classification by proper application under section 375.192.

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

254.1 	Sec. 24. Minnesota Statutes 2014, section 273.371, subdivision 1, is amended to read:
254.2 		Subdivision 1.Report required. Every electric light, power, gas, water, express, 
254.3 	stage, and transportation company and pipeline doing business in Minnesota shall 
254.4 	annually file with the commissioner on or before March 31 a report under oath setting 
254.5 	forth the information prescribed by the commissioner to enable the commissioner to 
254.6 	make valuations, recommended valuations, and equalization required under sections 
254.7 	273.33, 273.35, 273.36, 273.37, and 273.3711. The commissioner shall prescribe the 
254.8 	content, format, and manner of the report pursuant to section 270C.30, except that 
254.9 	a "law administered by the commissioner" includes the property tax laws. If all the 
254.10 	required information is not available on March 31, the company or pipeline shall file the 
254.11 	information that is available on or before March 31, and the balance of the information 
254.12 	as soon as it becomes available. If a report is made by electronic means, the taxpayer's 
254.13 	signature is defined pursuant to section 270C.304, except that a "law administered by the 
254.14 	commissioner" includes the property tax laws.

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

254.16 	Sec. 25. Minnesota Statutes 2014, section 287.2205, is amended to read:
254.17 	287.2205 TAX-FORFEITED LAND.
254.18 	Before a state deed for tax-forfeited land may be issued, the deed tax must be paid 
254.19 	by the purchaser of tax-forfeited land whether the purchase is the result of a public 
254.20 	auction or private sale or a repurchase of tax-forfeited land. State agencies and local 
254.21 	units of government that acquire tax-forfeited land by purchase or any other means are 
254.22 	subject to this section. The deed tax is $1.65 for a conveyance of tax-forfeited lands to a 
254.23 	governmental subdivision for an authorized public use under section 282.01, subdivision 
254.24 	1a, for a school forest under section 282.01, subdivision 1a, or for redevelopment purposes 
254.25 	under section 282.01, subdivision 1b.

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

254.27 	Sec. 26. Minnesota Statutes 2014, section 289A.08, is amended by adding a 
254.28 	subdivision to read:
254.29 		Subd. 17.Format. The commissioner shall prescribe the content, format, and 
254.30 	manner of the returns and other documents pursuant to section 270C.30. This does not 
254.31 	authorize the commissioner to require individual income taxpayers to file individual 
254.32 	income tax returns electronically.

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

255.2 	Sec. 27. Minnesota Statutes 2014, section 289A.09, subdivision 1, is amended to read:
255.3 		Subdivision 1.Returns. (a) An employer who is required to deduct and withhold tax 
255.4 	under section 290.92, subdivision 2a or 3, and a person required to deduct and withhold 
255.5 	tax under section 290.923, subdivision 2, must file a return with the commissioner for each 
255.6 	quarterly period unless otherwise prescribed by the commissioner.
255.7 	(b) A person or corporation required to make deposits under section 290.9201, 
255.8 	subdivision 8, must file an entertainer withholding tax return with the commissioner.
255.9 	(c) A person required to withhold an amount under section 290.9705, subdivision 1, 
255.10 	must file a return.
255.11 	(d) A partnership required to deduct and withhold tax under section 290.92, 
255.12 	subdivision 4b, must file a return.
255.13 	(e) An S corporation required to deduct and withhold tax under section 290.92, 
255.14 	subdivision 4c, must also file a return.
255.15 	(f) Returns must be filed in the form and manner, and contain the information 
255.16 	prescribed by the commissioner The commissioner shall prescribe the content, format, 
255.17 	and manner of the returns pursuant to section 270C.30. Every return for taxes withheld 
255.18 	must be signed by the employer, entertainment entity, contract payor, partnership, or S 
255.19 	corporation, or a designee.

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

255.21 	Sec. 28. Minnesota Statutes 2014, section 289A.11, subdivision 1, is amended to read:
255.22 		Subdivision 1.Return required. (a) Except as provided in section 289A.18, 
255.23 	subdivision 4, for the month in which taxes imposed by chapter 297A are payable, or for 
255.24 	which a return is due, a return for the preceding reporting period must be filed with the 
255.25 	commissioner in the form and manner the commissioner prescribes. The commissioner 
255.26 	shall prescribe the content, format, and manner of the returns pursuant to section 270C.30. 
255.27 	A person making sales at retail at two or more places of business may file a consolidated 
255.28 	return subject to rules prescribed by the commissioner. In computing the dollar amount of 
255.29 	items on the return, the amounts are rounded off to the nearest whole dollar, disregarding 
255.30 	amounts less than 50 cents and increasing amounts of 50 cents to 99 cents to the next 
255.31 	highest dollar.
255.32 	(b) Notwithstanding this subdivision, a person who is not required to hold a sales tax 
255.33 	permit under chapter 297A and who makes annual purchases, for use in a trade or business, 
255.34 	of less than $18,500, or a person who is not required to hold a sales tax permit and who 
256.1 	makes purchases for personal use, that are subject to the use tax imposed by section 
256.2 	297A.63, may file an annual use tax return on a form prescribed by the commissioner. 
256.3 	The commissioner shall prescribe the content, format, and manner of the return pursuant 
256.4 	to section 270C.30. If a person who qualifies for an annual use tax reporting period is 
256.5 	required to obtain a sales tax permit or makes use tax purchases, for use in a trade or 
256.6 	business, in excess of $18,500 during the calendar year, the reporting period must be 
256.7 	considered ended at the end of the month in which the permit is applied for or the purchase 
256.8 	in excess of $18,500 is made and a return must be filed for the preceding reporting period.
256.9 	(c) Notwithstanding paragraph paragraphs (a) and (b), a person prohibited by the 
256.10 	person's religious beliefs from using electronics shall be allowed to file by mail, without 
256.11 	any additional fees. The filer must notify the commissioner of revenue of the intent to file 
256.12 	by mail on a form prescribed by the commissioner. A return filed under this paragraph 
256.13 	must be postmarked no later than the day the return is due in order to be considered filed 
256.14 	on a timely basis.

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

256.16 	Sec. 29. Minnesota Statutes 2014, section 289A.50, subdivision 7, is amended to read:
256.17 		Subd. 7.Remedies. (a) If the taxpayer is notified by the commissioner that the 
256.18 	refund claim is denied in whole or in part, the taxpayer may:
256.19 	(1) file an administrative appeal as provided in section 270C.35, or an appeal 
256.20 	with the Tax Court, within 60 days after issuance the notice date of the commissioner's 
256.21 	notice of denial; or
256.22 	(2) file an action in the district court to recover the refund.
256.23 	(b) An action in the district court on a denied claim for refund must be brought 
256.24 	within 18 months of the notice date of the denial of the claim by the commissioner. For 
256.25 	the purposes of this section, "notice date" is defined in section 270C.35, subdivision 3.
256.26 	(c) No action in the district court or the Tax Court shall be brought within six months 
256.27 	of the filing of the refund claim unless the commissioner denies the claim within that period.
256.28 	(d) If a taxpayer files a claim for refund and the commissioner has not issued a denial 
256.29 	of the claim, the taxpayer may bring an action in the district court or the Tax Court at any 
256.30 	time after the expiration of six months from the time the claim was filed.
256.31 	(e) The commissioner and the taxpayer may agree to extend the period for bringing 
256.32 	an action in the district court.
256.33 	(f) An action for refund of tax by the taxpayer must be brought in the district court 
256.34 	of the district in which lies the county of the taxpayer's residence or principal place of 
257.1 	business. In the case of an estate or trust, the action must be brought at the principal place 
257.2 	of its administration. Any action may be brought in the district court for Ramsey County.

257.3 	EFFECTIVE DATE. This section is effective for claims for refund denied after 
257.4 	September 30, 2015.

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

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

257.9 	Sec. 31. Minnesota Statutes 2014, section 290C.13, subdivision 3, is amended to read:
257.10 		Subd. 3.Notice date. For purposes of this section, the term "notice date" means the 
257.11 	notice date designated by the commissioner on the order or notice of the determination 
257.12 	removing enrolled land or the notice date of designated by the commissioner on the notice 
257.13 	denying an application to enroll land or denying part or all of an incentive payment.

257.14 	EFFECTIVE DATE. This section is effective for orders and notices dated after 
257.15 	September 30, 2015.

257.16 	Sec. 32. [293.15] FORMS. 
257.17 	The commissioner shall prescribe the content, format, and manner of all forms and 
257.18 	other documents required to be filed under this chapter pursuant to section 270C.30.

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

257.20 	Sec. 33. Minnesota Statutes 2014, section 295.55, subdivision 6, is amended to read:
257.21 		Subd. 6.Form of returns. The estimated payments and annual return must contain 
257.22 	the information and be in the form prescribed by the commissioner. The commissioner 
257.23 	shall prescribe the content, format, and manner of the estimated payment forms and annual 
257.24 	return pursuant to section 270C.30.

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

257.26 	Sec. 34. Minnesota Statutes 2014, section 296A.02, is amended by adding a 
257.27 	subdivision to read:
258.1 		Subd. 5.Forms.  The commissioner shall prescribe the content, format, and manner 
258.2 	of all forms and other documents required to be filed under this chapter pursuant to section 
258.3 	270C.30.

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

258.5 	Sec. 35. Minnesota Statutes 2014, section 296A.22, subdivision 9, is amended to read:
258.6 		Subd. 9.Abatement of penalty. (a) The commissioner may by written order 
258.7 	abate any penalty imposed under this section, if in the commissioner's opinion there is 
258.8 	reasonable cause to do so.
258.9 	(b) A request for abatement of penalty must be filed with the commissioner within 
258.10 	60 days of the notice date of the notice stating that a penalty has been imposed was mailed 
258.11 	to the taxpayer's last known address. For purposes of this section, the term "notice date" 
258.12 	means the notice date designated by the commissioner on the order or other notice that a 
258.13 	penalty has been imposed.
258.14 	(c) If the commissioner issues an order denying a request for abatement of penalty, 
258.15 	the taxpayer may file an administrative appeal as provided in section 270C.35 or appeal to 
258.16 	Tax Court as provided in section 271.06. If the commissioner does not issue an order on 
258.17 	the abatement request within 60 days from the date the request is received, the taxpayer 
258.18 	may appeal to Tax Court as provided in section 271.06.

258.19 	EFFECTIVE DATE. This section is effective for orders and notices dated after 
258.20 	September 30, 2015.

258.21 	Sec. 36. Minnesota Statutes 2014, section 296A.26, is amended to read:
258.22 	296A.26 JUDICIAL REVIEW; APPEAL TO TAX COURT.
258.23 	In lieu of an administrative appeal under section 270C.35, any person aggrieved by 
258.24 	an order of the commissioner fixing a tax, penalty, or interest under this chapter may, within 
258.25 	60 days from the notice date of the notice of the order, appeal to the Tax Court in the manner 
258.26 	provided under section 271.06. For purposes of this section, the term "notice date" means 
258.27 	the notice date designated by the commissioner on the order fixing a tax, penalty, or interest.

258.28 	EFFECTIVE DATE. This section is effective for orders dated after September 
258.29 	30, 2015.

258.30 	Sec. 37. Minnesota Statutes 2014, section 297D.02, is amended to read:
258.31 	297D.02 ADMINISTRATION.
259.1 	The commissioner of revenue shall administer this chapter. The commissioner shall 
259.2 	prescribe the content, format, and manner of all forms and other documents required to be 
259.3 	filed under this chapter pursuant to section 270C.30. Payments required by this chapter 
259.4 	must be made to the commissioner on the form provided by the commissioner. Tax obligors 
259.5 	are not required to give their name, address, Social Security number, or other identifying 
259.6 	information on the form. The commissioner shall collect all taxes under this chapter.

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

259.8 	Sec. 38. Minnesota Statutes 2014, section 297E.02, subdivision 3, is amended to read:
259.9 		Subd. 3.Collection; disposition. (a) Taxes imposed by this section are due 
259.10 	and payable to the commissioner when the gambling tax return is required to be filed. 
259.11 	Distributors must file their monthly sales figures with the commissioner on a form 
259.12 	prescribed by the commissioner. Returns covering the taxes imposed under this section 
259.13 	must be filed with the commissioner on or before the 20th day of the month following the 
259.14 	close of the previous calendar month. The commissioner may require that the returns be 
259.15 	filed via magnetic media or electronic data transfer. The commissioner shall prescribe the 
259.16 	content, format, and manner of returns or other documents pursuant to section 270C.30. 
259.17 	The proceeds, along with the revenue received from all license fees and other fees under 
259.18 	sections 349.11 to 349.191, 349.211, and 349.213, must be paid to the commissioner of 
259.19 	management and budget for deposit in the general fund.
259.20 	(b) The sales tax imposed by chapter 297A on the sale of pull-tabs and tipboards by 
259.21 	the distributor is imposed on the retail sales price. The retail sale of pull-tabs or tipboards 
259.22 	by the organization is exempt from taxes imposed by chapter 297A and is exempt from all 
259.23 	local taxes and license fees except a fee authorized under section 349.16, subdivision 8.
259.24 	(c) One-half of one percent of the revenue deposited in the general fund under 
259.25 	paragraph (a), is appropriated to the commissioner of human services for the compulsive 
259.26 	gambling treatment program established under section 245.98. One-half of one percent 
259.27 	of the revenue deposited in the general fund under paragraph (a), is appropriated to 
259.28 	the commissioner of human services for a grant to the state affiliate recognized by 
259.29 	the National Council on Problem Gambling to increase public awareness of problem 
259.30 	gambling, education and training for individuals and organizations providing effective 
259.31 	treatment services to problem gamblers and their families, and research relating to 
259.32 	problem gambling. Money appropriated by this paragraph must supplement and must not 
259.33 	replace existing state funding for these programs.

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

260.1 	Sec. 39. Minnesota Statutes 2014, section 297E.04, subdivision 1, is amended to read:
260.2 		Subdivision 1.Reports of sales. A manufacturer who sells gambling product for 
260.3 	use or resale in this state, or for receipt by a person or entity in this state, shall file with the 
260.4 	commissioner, on a form prescribed by the commissioner, a report of gambling product 
260.5 	sold to any person in the state, including the established governing body of an Indian tribe 
260.6 	recognized by the United States Department of the Interior. The report must be filed 
260.7 	monthly on or before the 20th day of the month succeeding the month in which the sale 
260.8 	was made. The commissioner may require that the report be submitted via magnetic 
260.9 	media or electronic data transfer. The commissioner shall prescribe the content, format, 
260.10 	and manner of returns or other documents pursuant to section 270C.30. The commissioner 
260.11 	may inspect the premises, books, records, and inventory of a manufacturer without notice 
260.12 	during the normal business hours of the manufacturer. A person violating this section is 
260.13 	guilty of a misdemeanor.

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

260.15 	Sec. 40. Minnesota Statutes 2014, section 297E.05, subdivision 4, is amended to read:
260.16 		Subd. 4.Reports. A distributor shall report monthly to the commissioner, on a form 
260.17 	the commissioner prescribes, its sales of each type of gambling product. This report must 
260.18 	be filed monthly on or before the 20th day of the month succeeding the month in which 
260.19 	the sale was made. The commissioner may require that a distributor submit the monthly 
260.20 	report and invoices required in this subdivision via magnetic media or electronic data 
260.21 	transfer. The commissioner shall prescribe the content, format, and manner of returns or 
260.22 	other documents pursuant to section 270C.30.

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

260.24 	Sec. 41. Minnesota Statutes 2014, section 297E.06, subdivision 1, is amended to read:
260.25 		Subdivision 1.Reports. An organization must file with the commissioner, on a form 
260.26 	prescribed by the commissioner, a report showing all gambling activity conducted by that 
260.27 	organization for each month. Gambling activity includes all gross receipts, prizes, all 
260.28 	gambling taxes owed or paid to the commissioner, all gambling expenses, and all lawful 
260.29 	purpose and board-approved expenditures. The report must be filed with the commissioner 
260.30 	on or before the 20th day of the month following the month in which the gambling activity 
260.31 	takes place. The commissioner may require that the reports be filed via magnetic media or 
260.32 	electronic data transfer. The commissioner shall prescribe the content, format, and manner 
260.33 	of returns or other documents pursuant to section 270C.30.

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

261.2 	Sec. 42. Minnesota Statutes 2014, section 297F.09, subdivision 1, is amended to read:
261.3 		Subdivision 1.Monthly return; cigarette distributor. On or before the 18th day 
261.4 	of each calendar month, a distributor with a place of business in this state shall file a 
261.5 	return with the commissioner showing the quantity of cigarettes manufactured or brought 
261.6 	in from outside the state or purchased during the preceding calendar month and the 
261.7 	quantity of cigarettes sold or otherwise disposed of in this state and outside this state 
261.8 	during that month. A licensed distributor outside this state shall in like manner file a 
261.9 	return showing the quantity of cigarettes shipped or transported into this state during the 
261.10 	preceding calendar month. Returns must be made in the form and manner prescribed by 
261.11 	The commissioner  shall prescribe the content, format, and manner of returns pursuant to 
261.12 	section 270C.30, and the returns must contain any other information required by the 
261.13 	commissioner. The return must be accompanied by a remittance for the full unpaid tax 
261.14 	liability shown by it. For distributors subject to the accelerated tax payment requirements 
261.15 	in subdivision 10, the return for the May liability is due two business days before June 30th 
261.16 	of the year and the return for the June liability is due on or before August 18th of the year.

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

261.18 	Sec. 43. Minnesota Statutes 2014, section 297F.23, is amended to read:
261.19 	297F.23 JUDICIAL REVIEW.
261.20 	In lieu of an administrative appeal under section 270C.35, a person aggrieved by an 
261.21 	order of the commissioner fixing a tax, penalty, or interest under this chapter may, within 60 
261.22 	days from the notice date of the notice of the order, appeal to the Tax Court in the manner 
261.23 	provided under section 271.06. For purposes of this section, the term "notice date" means 
261.24 	the notice date designated by the commissioner on the order fixing a tax, penalty, or interest.

261.25 	EFFECTIVE DATE. This section is effective for orders dated after September 
261.26 	30, 2015.

261.27 	Sec. 44. Minnesota Statutes 2014, section 297G.09, subdivision 1, is amended to read:
261.28 		Subdivision 1.Monthly returns; manufacturers, wholesalers, brewers, or 
261.29 	importers. On or before the 18th day of each calendar month following the month in 
261.30 	which a licensed manufacturer or wholesaler first sells wine and distilled spirits within 
261.31 	the state, or a brewer or importer first sells or imports fermented malt beverages, or a 
261.32 	wholesaler knowingly acquires title to or possession of untaxed fermented malt beverages, 
262.1 	the licensed manufacturer, wholesaler, brewer, or importer liable for the excise tax must 
262.2 	file a return with the commissioner, and in addition must keep records and render reports 
262.3 	as required by the commissioner. Returns must be made in a form and manner prescribed 
262.4 	by the commissioner, and  The commissioner shall prescribe the content, format, and 
262.5 	manner of returns pursuant to section 270C.30. The returns must contain any other 
262.6 	information required by the commissioner. Returns must be accompanied by a remittance 
262.7 	for the full unpaid tax liability. Returns must be filed regardless of whether a tax is due.

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

262.9 	Sec. 45. Minnesota Statutes 2014, section 297G.22, is amended to read:
262.10 	297G.22 JUDICIAL REVIEW.
262.11 	In lieu of an administrative appeal under this chapter, a person aggrieved by an order 
262.12 	of the commissioner fixing a tax, penalty, or interest under this chapter may, within 60 days 
262.13 	from the date of the notice date of the order, appeal to the Tax Court in the manner provided 
262.14 	under section 271.06. For purposes of this section, the term "notice date" means the notice 
262.15 	date designated by the commissioner on the order fixing a tax, penalty, or interest.

262.16 	EFFECTIVE DATE. This section is effective for orders dated after September 
262.17 	30, 2015.

262.18 	Sec. 46. Minnesota Statutes 2014, section 297I.30, is amended by adding a subdivision 
262.19 	to read:
262.20 		Subd. 11.Format.  The commissioner shall prescribe the content, format, and 
262.21 	manner of returns or other documents pursuant to section 270C.30.

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

262.23 	Sec. 47. Minnesota Statutes 2014, section 297I.60, subdivision 2, is amended to read:
262.24 		Subd. 2.Remedies. (a) If the taxpayer is notified that the refund claim is denied in 
262.25 	whole or in part, the taxpayer may contest the denial by:
262.26 	(1) filing an administrative appeal with the commissioner under section 270C.35;
262.27 	(2) filing an appeal in Tax Court within 60 days of the notice date of the notice of 
262.28 	denial; or
262.29 	(3) filing an action in the district court to recover the refund.
262.30 	(b) An action in the district court must be brought within 18 months following of the 
262.31 	notice date of the notice of denial. For purposes of this section, "notice date" is defined in 
263.1 	section 270C.35, subdivision 3. An action for refund of tax or surcharge must be brought 
263.2 	in the district court of the district in which lies the taxpayer's principal place of business or 
263.3 	in the District Court for Ramsey County. If a taxpayer files a claim for refund and the 
263.4 	commissioner has not issued a denial of the claim, the taxpayer may bring an action in 
263.5 	the district court or the Tax Court at any time after the expiration of six months from the 
263.6 	time the claim was filed.

263.7 	EFFECTIVE DATE. This section is effective for claims for refund denied after 
263.8 	September 30, 2015.

263.9 	Sec. 48. Minnesota Statutes 2014, section 469.319, subdivision 5, is amended to read:
263.10 		Subd. 5.Waiver authority. (a) The commissioner may waive all or part of a 
263.11 	repayment required under subdivision 1, if the commissioner, in consultation with 
263.12 	the commissioner of employment and economic development and appropriate officials 
263.13 	from the local government units in which the qualified business is located, determines 
263.14 	that requiring repayment of the tax is not in the best interest of the state or the local 
263.15 	government units and the business ceased operating as a result of circumstances beyond 
263.16 	its control including, but not limited to:
263.17 	(1) a natural disaster;
263.18 	(2) unforeseen industry trends; or
263.19 	(3) loss of a major supplier or customer.
263.20 	(b)(1) The commissioner shall waive repayment required under subdivision 1a if 
263.21 	the commissioner has waived repayment by the operating business under subdivision 1, 
263.22 	unless the person that received benefits without having to operate a business in the zone 
263.23 	was a contributing factor in the qualified business becoming subject to repayment under 
263.24 	subdivision 1;
263.25 	(2) the commissioner shall waive the repayment required under subdivision 1a, even 
263.26 	if the repayment has not been waived for the operating business if:
263.27 	(i) the person that received benefits without having to operate a business in the zone 
263.28 	and the business that operated in the zone are not related parties as defined in section 
263.29 	267(b) of the Internal Revenue Code of 1986, as amended through December 31, 2007; and
263.30 	(ii) actions of the person were not a contributing factor in the qualified business 
263.31 	becoming subject to repayment under subdivision 1.
263.32 	(c) Requests for waiver must be made no later than 60 days after the earlier of the 
263.33 	notice date of an order issued under subdivision 4, paragraph (d), or the date of a tax 
263.34 	statement issued under subdivision 4, paragraph (c). For purposes of this section, the term 
263.35 	"notice date" means the notice date designated by the commissioner on the order.

264.1 	EFFECTIVE DATE. This section is effective for orders of the commissioner of 
264.2 	revenue dated after September 30, 2015.