1.1 	A bill for an act
1.2 	relating to taxation; distributing proceeds of the occupation taxes to the 
1.3 	Minnesota minerals 21st century fund;amending Minnesota Statutes 2004, 
1.4 	section 298.17.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2004, section 298.17, is amended to read:
1.7 	298.17 OCCUPATION TAXES TO BE APPORTIONED.
1.8 		Subdivision 1.Apportionment under Constitution. All occupation taxes paid by 
1.9 	persons, copartnerships, companies, joint stock companies, corporations, and associations, 
1.10 	however or for whatever purpose organized, engaged in the business of mining or 
1.11 	producing iron ore or other ores, when collected shall be apportioned and distributed in 
1.12 	accordance with the Constitution of the state of Minnesota, article X, section 3, in the 
1.13 	manner following: 90 percent shall be deposited in the state treasury and credited to 
1.14 	the general fund of which four-ninths shall be used for the support of elementary and 
1.15 	secondary schools; and ten percent of the proceeds of the tax imposed by this section 
1.16 	shall be deposited in the state treasury and credited to the general fund for the general 
1.17 	support of the university. 
1.18 		Subd. 2.Apportionment to IRRRB. Of the moneys apportioned to the general 
1.19 	fund by this section, and not used for the support of elementary and secondary schools or 
1.20 	the university, there is annually appropriated and credited to the Iron Range Resources and 
1.21 	Rehabilitation Board account in the special revenue fund an amount equal to that which 
1.22 	would have been generated by a 1.5 cent tax imposed by section  298.24 on each taxable 
1.23 	ton produced in the preceding calendar year, to be expended for the purposes of section  
1.24 	298.22. The money appropriated pursuant to this section shall be used (1) to provide 
2.1 	environmental development grants to local governments located within any county in 
2.2 	region 3 as defined in governor's executive order number 60, issued on June 12, 1970, 
2.3 	which does not contain a municipality qualifying pursuant to section  273.134, paragraph 
2.4 	(b), or (2) to provide economic development loans or grants to businesses located within 
2.5 	any such county, provided that the county board or an advisory group appointed by 
2.6 	the county board to provide recommendations on economic development shall make 
2.7 	recommendations to the Iron Range Resources and Rehabilitation Board regarding the 
2.8 	loans. Payment to the Iron Range Resources and Rehabilitation Board account shall be 
2.9 	made by May 15 annually. 
2.10 	Of the money allocated to Koochiching County, one-third must be paid to the 
2.11 	Koochiching County Economic Development Commission.
2.12 		Subd. 3.Apportionment to Minnesota minerals 21st century fund. The 
2.13 	money apportioned to the general fund by this section that is not used for the support of 
2.14 	elementary and secondary schools or the university, and that is not apportioned under 
2.15 	subdivision 2, is annually appropriated to the Minnesota minerals 21st century fund 
2.16 	created in section 116J.423.

2.17 	EFFECTIVE DATE. This section is effective for taxes paid in 2007 and subsequent 
2.18 	years.